March 31st, 2008
Written by Ravi Shenoy
Orders during the month of February 2008 strengthened order-backlogs. Gridstone Research covers 27 Oil and gas equipment and services companies within its current coverage universe of 143 Energy companies. These companies manufacture equipment for use in production or processing of oil and gas or provide services that aid the exploration of oil and gas. The oil and gas producing and processing companies place orders with equipment and services companies willing to provide the equipment\services at the lowest cost. The price discovery is through a long process which considers the financial and technical strengths of the suppliers. Orders once received are added to list of unexecuted orders and reflected as “Order backlog”. read more…
February 14th, 2008
Written by Ravi Shenoy
Anila Prakash contributed to this note.
Drilling companies report in Jan-08 about many deep-water drilling contracts yielding high return on investments
Gridstone Research covers 15 drilling companies within its current coverage universe of 129 oil and gas companies. Some of the drilling companies report deals struck for new rigs and new contracts on old rigs on a regular basis. This note makes an effort to look at the impact of the contracts on the earnings that these drilling companies will report in the future, during the tenure of the contract. read more…
November 30th, 2007
Written by Ravi Shenoy
Upstream oil and gas (E&P) companies in the past have benefited from high crude oil prices. Thus, it would be reasonable to assume that most E&P companies should benefit from the rapid and unprecedented rise in crude oil prices to $100 per barrel in the recent past. However, our analysis of recent reported performance (Sep-07) shows that for a variety of reasons, this is not the case for a number of E&P companies. The average of the monthly price of West Texas Intermediate (WTI) crude at Cushing Oklahoma as reported by the Department of Energy, U.S. (DOE) rose $5.1 per barrel or 7.25% y/y to $75.48 per barrel during the Sep-07 quarter. Despite this, some of the upstream companies have reported lower revenue during the Sep-07 quarter. read more…
