Marc, CNN faked me out - their weather report for the highs today show the "blue" 20's and 30's temperatures across the midwest and northeast, continuing to the end of their forecast period (Saturday I think). From my perspective here in Costa Rica, anything below 70 is cold.
Merrill's Research Alert:
RESEARCH ALERT -Merrill cuts oil services earnings
March 4, 1999 9:29 AM EST
NEW YORK, March 4 (Reuters) - Merrill Lynch said oil services analyst Kevin Simpson cut his earnings estimates for fiscal years 1999 and 2000 on three oil services companies, citing a general decline in spending by oil exploration companies.
-- Simpson cut BJ Services Co. (NYSE: BJS) fiscal year 1999 earnings per share estimate to $0.35 from $0.60, and reduced his fiscal year 2000 EPS estimate to $0.90 from $1.05. BJ Services share price closed March 3 at 14-3/4 on the New York Stock Exchange.
-- Cut Halliburton Co. (NYSE: HAL) fiscal year 1999 EPS estimate to $1.05 from $1.25, and reduced his fiscal year 2000 EPS estimate to $1.40 from $1.60. Halliburton share price closed March 3 at 30-1/2 on the NYSE.
-- Cut Diamond Offshore Drilling Inc. (NYSE: DO) fiscal year 1999 EPS estimate to $1.45 from $1.50, and reduced his fiscal year 2000 EPS estimate to $1.50 from $1.65. Diamond Offshore share price closed March 3 at 22 on the NYSE.
-- Retains intermediate and long term buy ratings on all three companies.
-- Says: "Oil companies are continuing to sharply reduce their exploration and production spending in response to ultra-low oil prices in the range of $11 to $13 per barrel (West Texas Intermediate) and to recent weakness in U.S. natural gas prices to the $1.60 - $1.75 per mcf range."
-- Says: "It now appears that spending will drop some 30 percent this year, versus our prior expectation of a 25 percent decline. The worst of the hit continues to come in the North American land market, where rig activity is falling to historical lows."
-- Says: "Near-term, there is still a risk of new oil service lows if OPEC does not cut at its March 23 meeting and oil prices break down to new lows. Even so, we think the risk/reward for investors with 12-18 month horizons is very favorable with the share prices at such depressed levels. We would accumulate shares of the better positioned oil services companies with good balance sheets. These would include Halliburton, BJ Services, Baker Hughes Inc. (NYSE: BHI), Cooper Cameron Corp. (NYSE: CAM), Diamond Offshore and Santa Fe International Corp. (NYSE: SDC).
REUTERS |
