Monday, June 2, 2014
This Energy Is Spending 21% More This Year -- Here's Why It Matters
Last week, Basic Energy Services (NYSE: BAS ) announced a $50 million increase in capital spending for 2014 that shot the company's stock up 4% on the day. The news didn't have much of a ripple effect on other smaller oilfield services firms, probably due to the lack of appreciation for the scope of the increase.
Most investors probably missed the company's run from only $12 back in October to the current level of $27. The quickly-changing dynamics in the domestic land-drilling sector have analysts forecasting the company earning $1.14 in 2015 after producing a large loss last year. At the same time, other oilfield services firms aren't seeing the same gains. Superior Energy Services (NYSE: SPN ) is up solidly from February levels, but its stock has gained nowhere near the increases of Basic Energy. Key Energy Services (NYSE: KEG ) has seen its stock price pull back to levels last seen in October.
Read the full article here.
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