Quick Thoughts

The shale industry kicked off the new year with a continuation of the great migration to the Permian Basin. This morning SM Energy announced the sale of its third party operated assets in the Eagle Ford, including its ownership interest in related midstream assets, for $800 million. In this update we …

Land drilling / pressure pumping hybrids Patterson-UTI and Seventy Seven Energy have agreed to join forces as 2016 draws to a close. Patterson-UTI will purchase Seventy Seven Energy for $1.76bn in an all-stock deal that includes the assumption and repayment of $336mm of net debt. This deal isn’t a bargain, as …

BJ Services returned to the scene as a standalone company late Tuesday as Baker Hughes announced the pressure pumping divestiture they talked about before the GE deal and confirmed during the GE announcement. We break down the deal including observations about value, Goldman Sach’s interesting history with BJ Services, and some …

On Wednesday morning (11/16), Weatherford sold 84.5mm shares at $5.40/share in a registered direct equity offering for $456mm. Last week, Infill Thinking predicted that Weatherford would raise equity capital following the stock’s 33%+ gain on CEO Bernard Duroc-Danner’s departure. The market reacted positively to today’s equity raise, Weatherford’s stock rising another 3% …

Developing November 9, 2016 4pm central. What Happened: On Wednesday afternoon, Weatherford announced the departure of Chairman and CEO Bernard Duroc-Danner, 63, effective immediately. We explore why and what’s next. To read this update you must be a subscriber. (Current members login here.) Subscribers get Exclusive e-mail newsletters High-caliber, data-driven news, analysis and commentary New angles you’ll only find here …

After four days of speculation and head scratching over what kind of deal GE and Baker Hughes might be concocting, the companies announced an extensive partnership Monday morning, essentially a merger of GE O&G with Baker Hughes. The deal is more extensive than we (and many others) originally expected late last week. …

We discuss the breaking news that GE has come forward as a potential partner for Baker Hughes and evaluate the merits and fit of such a partnership. To read this update you must be a subscriber. (Current members login here.) Subscribers get Exclusive mail newsletters High-caliber, data-driven news, analysis and commentary New angles you’ll only find here …

Breaking October 19, 2016 6:30am central. Halliburton released its 3Q16 earnings report, marking the start of earnings season in the oilfield. Relative to the second quarter, Halliburton’s sales in North America grew. This is the first revenue increase in seven quarters. This growth offset a continued decline in international business to keep total …

OPEC’s announcement in Algeria of an agreement to curb production has the press excited about the “the first OPEC production cut in 8 years.” But we’d argue this is just more of the same as no member quotas have been set yet. We explore the details, nuances and implications here. …