A recapitalization has put the company in solid financial health.
It’s proved it can generate shareholder value in even dismal oil market conditions.
It has generally bested all its oilfield services peers in returning cash to shareholders.
The average U.S. tariff rate on China is set to surge.
We think the market's expectations for these firms are much too low.
Our long-term industry assumptions have grown more pessimistic.
Are China and the U.S. headed for a new cold war?
Schlumberger, Weatherford, and TechnipFMC are all trading at at least a 25% discount to fair value.
Higher financial leverage and low pricing on recent asset sales drove our reassessment.
The changes are due chiefly to our revised U.S. land drilling forecasts.
We've reduced our long-term pricing forecasts.
Electric vehicle adoption and a shift toward natural gas in China will help boost Cheniere Energy and Royal Dutch Shell.
The downgrade in official growth statistics is almost a nonevent, but an expanded trade war would have major consequences, says Morningstar's Preston Caldwell.
The combined company--which is a true merger of equals--will have a total market enterprise value nearly on par with industry leader Transocean.
The high-spec nature of its fleet won't insulate the offshore driller from the woes afflicting the broader rig market.
Geopolitical issues and global demand may temporarily be pushing oil prices higher, but we don't see that as sustainable.
Halliburton looks especially overvalued.
Sustainably lower costs to extract U.S. shale oil should keep a lid on prices.
But we think the lowest-cost frac sand provider is attractively valued.
The boost reflects our reconsideration of the North American frac sand market.
Many names appear overvalued, but we remain bullish about HollyFrontier, Tesoro, RSP Permian, Antero, and Range.
The lack of an actual OPEC agreement to cut production and the potency of U.S. shale mean a recovery in oil prices isn't likely to occur until 2018, says Morningstar's Preston Caldwell.
We've accelerated our estimate for oil market clearing due to stronger-than-expected demand and supply disruptions, but we're not budging on our lower-than-consensus long-term price forecast.