Tuesday, February 18, 2014
C&J Energy Services Inc Expanding Despite a Weak Market
Despite a weak operating environment for domestic oil services, C&J Energy Services (NYSE: CJES ) undertook an aggressive expansion plan for 2013. That strategy culminated in several deals during the fourth quarter and further plans for 2014. The reported financials continue to disappoint due to higher costs for expansion, but the company might be set up to take advantage of suddenly sparse natural gas inventories.
The domestic hydraulic fracturing specialist has spent the last couple of years expanding the business line and, surprisingly, building new equipment. Now with natural gas inventories plunging to five-year lows, C&J Energy is positioned to take advantage of a market where utilization is already firming.
Read the full article here.
Disclosure: Long CJES. Please review the disclaimer page for more details.