NexTier Oilfield price target raised to $7 from $6 at Barclays » 05:4710/2510/25/21
Barclays analyst J. David…
Barclays analyst J. David Anderson raised the firm's price target on NexTier Oilfield to $7 from $6 and keeps an Overweight rating on the shares. The "tailwinds" for the U.S. onshore market seem to be strengthening on improved pricing, supported by supply chain and labor pressures, Anderson tells investors in a research note. Most importantly, net pricing is being realized right now and when combined with a 2022 exploration and production spending outlook of up 20%, "it appears we're on the cusp of a breakout," says the analyst.
|Over a month ago|
Citi positive on oilfield services, upgrades Liberty to Buy, RPC to Neutral » 12:3809/1309/13/21
LBRT, RES, BKR, HAL, SLB, NEX, CHX
Citi analyst Scott Gruber…
Citi analyst Scott Gruber upgraded Liberty Oilfield Services (LBRT) to Buy from Neutral with a price target of $13, up from $12. The analyst also upgraded RPC, Inc. (RES) to Neutral from Sell with an unchanged price target of $4. Gruber is taking a more positive stance on oilfield services for a trade over the next six months due to exploration and production companies adding rigs and frac pricing gains around year end. The analyst feels exploration and production companies still offer greater value but he sees "solid revision potential" in oilfield services, particularly in completion levered stocks. He raised his 2022 rig count estimate by 1% to 550 on average with a Q2 peak of 570. Baker Hughes (BKR) is Gruber's top large-cap pick on its multiple expansion potential and he raised Halliburton (HAL) above Schlumberger (SLB) on higher estimate revision potential. The analyst moved NexTier Oilfield (NEX) to his top SMID pick on frac pricing leverage and valuation. ChampionX (CHX) remains his top SMID equipment pick.
Liberty Oilfield Services upgraded to Buy from Neutral at Citi » 12:1709/1309/13/21
Citi analyst Scott Gruber…
Citi analyst Scott Gruber upgraded Liberty Oilfield Services (LBRT) to Buy from Neutral as he is taking a more positive stance toward the oilfield services, or OFS, group, where he sees a trade being likely over the next six months associated with public E&P companies adding rigs and frac pricing gains around year end. He has raised his rig count estimate in 2022 by 1% to 550 on average, with a peak of 570 seen in Q2, Gruber noted. The analyst, who raised his OFS estimates and "lifted his estimates the most for the pure play frac companies," notes that his own view is now 12% above consensus on the frac companies and calls NexTier Oilfield (NEX) his current top small-to-mid cap pick in the space.
NexTier Oilfield to acquire Alamo Pressure Pumping for $268M » 16:5808/0408/04/21
NexTier Oilfield Solutions announced that it has reached an agreement to acquire 100% of the ownership interests of Alamo Pressure Pumping for a transaction valuation of approximately $268M, as further described below. The transaction is expected to be completed by August 31, subject to customary closing conditions and approvals. Alamo, founded in 2017 and headquartered in Midland, Texas, is a leading Permian pressure pumper based on next generation horsepower and active fleets. Acquired assets include 9 hydraulic fracturing fleets comprised of 460,000 horsepower, approximately 92% of which is Tier IV DGB capable. Alamo operates exclusively in the Permian Basin and primarily out of Midland. Alamo achieved $68M of EBITDA in 2020.
NexTier Oilfield reports Q2 adjusted EPS (19c), consensus (15c) » 16:3408/0408/04/21
Reports Q2 revenue…
Reports Q2 revenue $292.1M, consensus $292.58M.
|Over a quarter ago|
NexTier, Corva announce strategic technology partnership » 10:0707/2607/26/21
Corva and NexTier…
Corva and NexTier Oilfield Solutions announced a strategic technology partnership. "Designed to optimize completions, reduce well costs and improve ESG performance by leveraging the combined strengths of their digital oilfield solutions, the partnership provides a single, unified solution to accelerate innovation and optimize every completions operation," the company said. "Real-time data and analytics enable us to manage completions remotely and transition crews out of the red zone, which provides unprecedented power to reduce cost per barrel, minimize risks, and boost efficiencies for our customers," said Robert Drummond, President and CEO of NexTier Oilfield Solutions. "Our NexHub Digital Center had already made great strides in integrating activities and improving data transparency across the full scope of the wellsite. And now, partnering with Corva, we're able to achieve a whole new level of digital optimization." Leveraging Corva's category-leading drilling and completions platforms, the partnership will enable NexTier to integrate new digital products and services, as well as providing Corva with historical data and wellsite expertise. NexTier's software development team is working with Corva to develop the first generation of NexHub apps, which will be available through the Corva App Store.
Seneca Resources, NexTier Oilfield collaborate on emissions testing » 07:1807/1207/12/21
Seneca Resources Company,…
Seneca Resources Company, the exploration and production segment of National Fuel Gas Company (NFG), and NexTier Oilfield Solutions (NEX) announced their intent to pioneer an innovative study evaluating the carbon emissions generated by various types of equipment commonly used for hydraulic fracturing of oil and natural gas wells. The results of this study are expected to provide the industry with a comparative insight on the emissions profile of these technologies, including those utilizing Tier 2 diesel and dynamic gas blending engines, Tier 4 diesel and DGB engines, natural gas-powered turbine engines, and electric frac equipment powered by natural gas-fueled reciprocating engines. This carbon emissions assessment is expected to be the most comprehensive testing of real-time well stimulation operations performed within the industry to date, with independent third-party testing to be performed for each of these technologies during Seneca's field operations. The planned emissions testing will follow EPA-recommended procedures, with the equipment and completions solutions to be operated by NexTier.
NexTier Oilfield falls -9.6% » 12:0006/2806/28/21
NexTier Oilfield is down…
NexTier Oilfield is down -9.6%, or -51c to $4.83.
NexTier Oilfield files automatic common stock offering 16:3405/1305/13/21
NexTier Oilfield expects a sequential revenue growth of at least 25% in the Q2 » 18:3005/0405/04/21
For the Q2 NexTier…
For the Q2 NexTier expects to deploy 20 fleets and operate the equivalent of 18 fully utilized fleets. The combination of this increased activity, some net pricing recovery, and the absence of additional abnormal winter weather impacts experienced in the Q1, is expected to drive sequential revenue growth of at least 25% in the Q2. This revenue growth, combined with better fixed cost absorption and some improved calendar utilization, is expected to result in adjusted EBITDA of between $18M-$22M for the Q2. NexTier continues to expect total capital expenditures for the first half of 2021 of approximately $60M, comprised of maintenance capex across product and service lines, including $3M dollars per fleet per year for Frac, as well as strategic investments in additional dual fuel conversions and the continued development of its new Power Solutions business. For the FY21, based on additional momentum with customers expanding activity beyond the Q2, and assuming a similar economic and commodity price environment, the Company currently expects full year 2021 Adjusted EBITDA to total at least $80M. "Despite the weather-related challenges experienced in the Q1, we anticipate exiting the Q2 with an Adjusted EBITDA annual run-rate above $80M in-line with our expectations as the market begins to recover," stated Mr. Drummond. "Based on current visibility, we anticipate the third quarter Adjusted EBITDA run rate further improving to the point that we plan to achieve double digit Adjusted EBITDA margins by the exit of 2021. As expected, 2021 will be a transitional year for the U.S. oilfield services sector, and we believe NexTier is well positioned with positive momentum as we move into 2022."