Morgan Stanley's Ole Slorer is calling a bottom in the global oil services sector and recommends building or increasing positions in the space. Morgan Stanley said both oil prices and U.S. rig counts are 50% below prior peaks, and based on prior cycles, this has translated into a very favorable risk/reward. The firm's analyst sees attractive risk/reward over the next 3-6 months for oil services stocks, with a 3-1 upside-to-downside ratio. Morgan Stanley's preferred plays for international consolidation are Schlumberger (SLB), Halliburton (HAL), Baker Hughes (BHI), Weatherford (WFT) and Superior Energy (SPN). The firm's preferred plays for company-specific catalysts are Baker Hughes (BHI), Weatherford (WFT), Nabors Industries (NBR)/C&J Energy (CJES), for Frac Stage Secular Growth are Fairmount Santrol (FMSA)/U.S. SIlca (SLCA), C&J Energy, Cano Petroleum (CFW), RPC, Inc. (RES) and Core Laboratories (CLB), and for premium steel at a discount it likes Seadrill (SDRL), Atwood Oceanics (ATW), Pacific Drilling (PACD), Patterson-UTI (PTEN), Precision Drilling (PDS) and Independence Contract Drilling (ICD).

Reports Q1 revenue $377.83M, consensus $390.92M. "Our results reflected a modestly weaker oilfield services activity environment with continued competitive pressures," stated Ben Palmer, RPC's president and CEO. "Our first quarter pressure pumping activity and utilization were below the fourth quarter. Pumping industry capacity remains high, particularly in the Permian, with bidding results and pricing conversations indicating a highly competitive market. We are optimistic that if current oil price momentum holds, our customers would steadily increase activity in the second half of 2024. Looking further out, as large E&P consolidation transactions close and non-core assets are potentially divested, development of this acreage could provide demand tailwinds."

Reports Q1 revenue $528M, consensus $387.19M. CEO Kevin Neveu stated, "Precision had an impressive start to 2024 and we expect to build on this momentum throughout the year. Our Canadian drilling operations, international business, and completion and production services all outperformed during the first quarter and we more than doubled our cash from operations compared to the same period last year. We continued to focus on shareholder returns and repurchased $10 million of common shares in the first quarter. We remain firmly committed to repaying debt between $150 million and $200 million in 2024 and allocating 25% to 35% of our free cash flow to share buybacks..."

Reports Q1 revenue $734M, consensus $728.89M. The first quarter results included a gain, related to mark-to-market treatment of Nabors warrants, of $6M, or 62c per diluted share. Anthony Petrello, Nabors Chairman, CEO and President, commented, "Our first quarter operating results were stronger than we expected, driven by resilient pricing and lower costs in our Lower 48 drilling operations, as well as higher than forecast OEM repair revenue and energy transition revenue in our Rig Technologies segment. Rig count increased in our International segment, driven by rig startups in Saudi Arabia and Algeria, as part of our commitment to deploy seven rigs in these two countries during 2024. We have also received recent awards in Argentina for three more rigs. I believe we are in the midst of the largest opportunity that we've seen in the last decade to strengthen our international business. Pricing in the Lower 48 market remained firm, as utilization of our highest specification rigs stayed strong across several important markets. Average rig count increased compared to the prior quarter, but was slightly below our estimates, mainly reflecting activity reductions in natural gas basins. Results in our Drilling Solutions segment reflected reduced activity in the Lower 48, partially offset by better growth from international markets."

Unusual total active option classes on open include: ImmunityBio (IBRX), Halliburton (HAL), Redfin (RDFN), Nokia (NOK), Matterport (MTTR), General Motors (GM), UPS (UPS), Philip Morris (PM), PepsiCo (PEP), and General Electric (GE).

Reports Q1 revenue $5.8B, consensus $5.67B. "Halliburton delivered solid first quarter results that again demonstrated the power of our strategy and the strength of our execution. Activity in North America recovered from fourth-quarter lows, and our international business delivered its 11th consecutive quarter of year-on-year growth," commented Jeff Miller, Chairman, President and CEO. "Our customers' multi-year activity plans across markets and asset types confirms my confidence in the strength and duration of this upcycle. Halliburton demonstrated its commitment to shareholder returns in the first quarter and repurchased $250 million of common stock - a solid start to the year and a good benchmark for our expectations going forward," concluded Miller.