Thursday, September 26, 2013
Are the Glory Days Over for This Driller?
With the gains in drilling-rig efficiency limiting demand, are the glory days over for Helmerich & Payne (NYSE: HP ) ? According to this WSJ article, the company and the CEO are credited with developing the next-generation drilling rigs used to create the U.S. energy boom.
With oil above $100, one would expect a driller to trade well. The domestic land-drilling market, however, has faced lower drilling-rig demand due to plunging natural gas prices and more importantly the dramatically improved efficiencies gained in the last couple of years. The stock is sitting close to all-time highs. Now investors must analyze whether future natural gas export demand and possible demand from Mexico can offset a weak domestic climate.
Read the full article here.
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