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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: SliderOnTheBlack who wrote (63111)	3/27/2000 11:41:00 PM
From: Tomas	Read Replies (1) \| Respond to of 95453

Oilfield-Service Companies Wait for the Boom: Industry Outlook By Terence Flanagan Dallas, March 27 (Bloomberg) -- The biggest companies that provide equipment and services to the oil-drilling industry are still waiting for the boom in oil prices to reach them. Profits are soaring at major oil companies, but they are reluctant to commit to expensive drilling projects. Just 15 months ago, oil prices, now at a nine-year high, were at a 12-year low. Another bust could be only months away. With the big oil companies wary of spending, Halliburton Co., Schlumberger Ltd., and others that count on them for business will see first-quarter earnings plunge. Analysts following Halliburton, the largest oil-service company, say its earnings will fall 28 percent. Profit at No. 2 Schlumberger will drop 25 percent. Big oil companies such as Exxon Mobil Corp. and BP Amoco Plc ``are waiting to see what OPEC is going to do' before increasing spending, said Gary Russell, an oilfield-service analyst at Frost Securities in Dallas. The 11 members of the Organization of Petroleum Exporting Countries have backed a plan to boost crude oil output next month by no more than 2 million barrels a day, or 8.7 percent. Analysts say that's probably not enough to ease oil prices, which have more than doubled on the New York Mercantile Exchange in the past year. While oil prices have soared, the 10 biggest U.S. oil companies will increase their capital spending, which includes expenditures on oil exploration, just 6 percent this year. Oil service companies won't see most of the $2 billion in additional spending until late this year, analysts said. U.S. Market Improved With spending little changed so far this year, the number of drilling rigs in service outside the U.S. fell to 559 in the quarter from 639 a year earlier, according to Baker Hughes Inc.'s weekly tally. It's a different story in the U.S. and Canada, where smaller, independent oil companies are quicker than their bigger international rivals to react to rising crude prices. As a result, service companies that do most of their business in the U.S. will see first-quarter earnings soar. Analysts expect Weatherford International Inc.'s profit to more than triple, while BJ Services Co.'s earnings, which will include a June acquisition, will rise to 30 cents a share from a penny a year earlier. ``The domestic market improves quickly,' said Robin Shoemaker, an oil-service analyst at Bear, Stearns & Co. ``Projects are smaller in budgets and in planning,' so companies can take quick advantage of high oil prices, he said. Apache Corp., Burlington Resources Inc. and Kerr-McGee Corp., three of the biggest U.S. exploration companies, have raised their spending this year by an average of 28 percent. Stock Performance While first-quarter earnings for the overall industry will be mixed, the stocks have outperformed the Standard & Poor's 500 Index on expectations of higher returns. The 15-member Philadelphia Oil Service Sector Index, which includes Halliburton and Schlumberger, has climbed 31 percent this year. That compares with a rise of 4 percent for the Standard & Poor's 500 Index. ``2000 will be a strong year,' said Andrew Szezcila, president of oilfield operations at Baker Hughes. ``The first half will be manageable and the second half will be a wild ride.' Baker Hughes, which is expected to break even in the first quarter, will earn 6 cents a share in the second quarter and 40 cents for the year, according to First Call/Thomson Financial. 1st-Qtr Year-Ago Number of Estimate EPS Analysts Halliburton $0.13 $0.18 25 Schlumberger 0.24 0.32 28 Baker Hughes 0.00 0.13 29 Smith International 0.19 0.14 19 Cooper Cameron 0.22 0.28 22 Weatherford 0.10 0.03 14 BJ Services 0.30 0.01 21 Tidewater 0.24 0.43 18 R&B Falcon -0.22 0.02 24 Diamond Offshore 0.12 0.37 27 Sources: First Call/Thomson Financial for all but Weatherford; IBES International for Weatherford

To: SliderOnTheBlack who wrote (63111)	3/28/2000 8:04:00 AM
From: Big Dog	Read Replies (1) \| Respond to of 95453

From Dain this morning: * In accordance with the recent pre-announcement, we are raising our first- quarter EPS estimate for SII to $0.21 from $0.16. * The company has guided for revenues in excess of $600 million in the first quarter, some 7% greater than our previous estimate. * SII has shown a nice fundamental recovery early in the cycle, but at 46x our 2001 EPS estimate, the stock is the most expensive in the services sector. We maintain our Neutral rating.

To: SliderOnTheBlack who wrote (63111)	3/28/2000 9:08:00 AM
From: BigBull	Read Replies (1) \| Respond to of 95453

Slider: The floor - has been set. I think at this point it is safe to assume that Kuwait and SA are on the same page. These quotes clearly indicate the prices these guys want and that the Clinton administration can live with. Note: it is nowhere near the $18 to $20 range cited by some. I believe SA and Kuwait will defend these prices with great vigor. ------------------------------------------------------------ arabia.com "We`re looking for $23-$25 a barrel for (UK) Brent," said Kuwaiti Oil Minister Sheikh Saud al-Sabah. The benchmark grade was traded 23 cents down at $25.70 on Monday, after reaching $32 three weeks ago. US light crude in New York was at $27.82 a barrel. Worried about high gasoline prices and inflationary pressures, the United States sees room for OPEC eventually to open up the taps by three million barrels daily to replenish depleted inventories. But Washington is understood to be content with the step-by-step approach signalled by OPEC which could put more oil on the market later in the summer if prices do not cool quickly. To that end, the cartel also seems likely to agree to meet again in June to see whether additional volumes are needed. ------------------------------------------------------------ These are serious Big Dog Lagniape numbers. Enjoy the ride.