Nabors (IL/A): First Take - 3Q2005 results well ahead of expectations - Goldman Sachs - October 24, 2005
NBR 3Q2005 recurring EPS of $1.11 was ahead of our/ consensus estimates of $1.00/ $1.01 highlighted by:
(1) stronger Canadian rig count (+$0.05 positive impact);
(2) stronger US land pricing (+$0.03);
(3) stronger Int'l pricing (+$0.03); and
(4) higher US offshore operating income (+$0.03), partially offset by higher operating costs in US well services (-$0.02 negative impact). Results would have been stronger excluding a $0.03 negative hurricane impact. Key topics for the conference call include:
(1) update on Int'l contract awards,
(2) longer term land rig newbuild sourcing strategy, and
(3) drivers of unit cost increases in US well svcs (+22% seq) and US offshore (-14% seq).
We maintain our IL/A rating, and see 10%+ upside to 2006 estimates on stronger pricing in US land, well services, + Int'l mkts.
CONFERENCE CALL INFORMATION.
Conference call is at 12pm EST with dial in 1-888-694-4676, Code 6579478.
Each of the analysts named below hereby certifies that, with respect to each subject company and its securities for which the analyst is responsible in this report, (1) all of the views expressed in this report accurately reflect his or her personal views about the subject companies and securities, and (2) no part of his or her compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed in this report: Terry Darling and Jerry Revich.
===
Previous Goldman Sachs notes on Nabors:
NABORS (IL/A): Strong 2Q EPS, raising fair value to $80 = 19% upside Goldman Sachs July 28, 2005
Message 21552014
NABORS (IL/A): Raising estimates, looking for stock buy-back Goldman Sachs April 28, 2005
Message 21276739
NABORS (IL/A): Risk-reward attractive into earnings January 27, 2005 Goldman-Sachs
Message 20992967 |
