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The Zacks Analyst Blog Highlights Baker Hughes, EOG Resources and Matador Resources
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For Immediate Release
Chicago, IL – August 16, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Baker Hughes Company (BKR - Free Report) , EOG Resources (EOG - Free Report) and Matador Resources Co. (MTDR - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
Permian Oil Drilling Rig Count Rises 2nd Week in 5
In its weekly release, Baker Hughes Company stated that the U.S. rig count was lower than the prior-week figure. The rotary rig count, issued by BKR, is usually published in major newspapers and trade publications.
Baker Hughes’ data, issued at the end of every week since 1944, helps energy service providers gauge the overall business environment of the oil and gas industry. The number of active rigs and comparison of the same with the prior-week figure indicates the demand trajectory for the company’s oilfield services from exploration and production companies.
Rig Count Data in Detail
Total U.S. Rig Count Falls: The count of rigs engaged in the exploration and production of oil and natural gas in the United States was 654 for the week ended Aug 11. The figure is lower than the prior week’s count of 659. The figure decreased for five straight weeks. The current national rig count is also lower than the year-ago level of 763.
Onshore rigs in the week ended Aug 11 totaled 632, lower than the prior week's count of 635. In offshore resources, 18 rigs were operating, lower than the prior week’s count of 19.
U.S. Oil Rig Count Flat: Oil rig count was 525 in the week ended Aug 11, in line with the prior-week figure. The current number of oil rigs — far from the peak of 1,609 attained in October 2014 — is down from the year-ago figure of 601.
U.S. Natural Gas Rig Count Declines: Natural gas rig count of 123 is lower than the prior-week figure of 128. The count of rigs exploring the commodity is below the prior-year week’s 160. Per the latest report, the number of natural gas-directed rigs is 92.3% lower than the all-time high of 1,606 recorded in 2008.
Rig Count by Type: The number of vertical drilling rigs totaled 22 units, higher than the prior-week count of 21. The horizontal/directional rig count (encompassing new drilling technology with the ability to drill and extract gas from dense rock formations, also known as shale formations) of 632 is lower than the prior-week level of 638.
Gulf of Mexico (GoM) Rig Count Falls: GoM rig count was 17 units, all oil-directed. The count was lower than the prior-week number of 18.
Rig Count in the Most Prolific Basin
Permian — the most prolific basin in the United States — recorded a weekly oil rig count of 322, higher than the prior week's 320. The number increased in two of the past five weeks.
Outlook
The West Texas Intermediate crude price is trading at more than the $80-per-barrel mark, which is highly favorable for exploration and production activities. Solid oil prices will likely pave the way for rig additions despite a slowdown in drilling activities, as upstream players mainly focus on stockholder returns rather than boosting output.
Investors may keep a close eye on energy stocks like EOG Resources and Matador Resources Co., as the companies are expected to benefit from the current healthy oil price scenario.
EOG Resources is a leading oil and natural gas exploration and production company. It is well-placed to capitalize on the promising business scenario. It has an estimated 11,500 net undrilled premium locations, resulting in a brightened production outlook.
EOG Resources is strongly committed to returning capital to shareholders. Since transitioning to premium drilling, the company has returned a handsome amount of cash to stockholders. With the employment of premium drilling, EOG can reduce its cash operating costs per barrel of oil equivalent, thereby aiding its bottom line.
Matador Resources has a strong presence in the oil-rich core acres of the Wolfcamp and Bone Spring plays in the Delaware Basin. Promising oil price is likely to aid it in increasing production volumes. Matador acquired Advance Energy Partners Holdings, LLC, which comprises several oil and natural gas-producing properties and undeveloped acreage. MTDR expects the acquisition to be accretive to important valuation and financial metrics.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights Baker Hughes, EOG Resources and Matador Resources
For Immediate Release
Chicago, IL – August 16, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Baker Hughes Company (BKR - Free Report) , EOG Resources (EOG - Free Report) and Matador Resources Co. (MTDR - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
Permian Oil Drilling Rig Count Rises 2nd Week in 5
In its weekly release, Baker Hughes Company stated that the U.S. rig count was lower than the prior-week figure. The rotary rig count, issued by BKR, is usually published in major newspapers and trade publications.
Baker Hughes’ data, issued at the end of every week since 1944, helps energy service providers gauge the overall business environment of the oil and gas industry. The number of active rigs and comparison of the same with the prior-week figure indicates the demand trajectory for the company’s oilfield services from exploration and production companies.
Rig Count Data in Detail
Total U.S. Rig Count Falls: The count of rigs engaged in the exploration and production of oil and natural gas in the United States was 654 for the week ended Aug 11. The figure is lower than the prior week’s count of 659. The figure decreased for five straight weeks. The current national rig count is also lower than the year-ago level of 763.
Onshore rigs in the week ended Aug 11 totaled 632, lower than the prior week's count of 635. In offshore resources, 18 rigs were operating, lower than the prior week’s count of 19.
U.S. Oil Rig Count Flat: Oil rig count was 525 in the week ended Aug 11, in line with the prior-week figure. The current number of oil rigs — far from the peak of 1,609 attained in October 2014 — is down from the year-ago figure of 601.
U.S. Natural Gas Rig Count Declines: Natural gas rig count of 123 is lower than the prior-week figure of 128. The count of rigs exploring the commodity is below the prior-year week’s 160. Per the latest report, the number of natural gas-directed rigs is 92.3% lower than the all-time high of 1,606 recorded in 2008.
Rig Count by Type: The number of vertical drilling rigs totaled 22 units, higher than the prior-week count of 21. The horizontal/directional rig count (encompassing new drilling technology with the ability to drill and extract gas from dense rock formations, also known as shale formations) of 632 is lower than the prior-week level of 638.
Gulf of Mexico (GoM) Rig Count Falls: GoM rig count was 17 units, all oil-directed. The count was lower than the prior-week number of 18.
Rig Count in the Most Prolific Basin
Permian — the most prolific basin in the United States — recorded a weekly oil rig count of 322, higher than the prior week's 320. The number increased in two of the past five weeks.
Outlook
The West Texas Intermediate crude price is trading at more than the $80-per-barrel mark, which is highly favorable for exploration and production activities. Solid oil prices will likely pave the way for rig additions despite a slowdown in drilling activities, as upstream players mainly focus on stockholder returns rather than boosting output.
Investors may keep a close eye on energy stocks like EOG Resources and Matador Resources Co., as the companies are expected to benefit from the current healthy oil price scenario.
EOG Resources is a leading oil and natural gas exploration and production company. It is well-placed to capitalize on the promising business scenario. It has an estimated 11,500 net undrilled premium locations, resulting in a brightened production outlook.
EOG Resources is strongly committed to returning capital to shareholders. Since transitioning to premium drilling, the company has returned a handsome amount of cash to stockholders. With the employment of premium drilling, EOG can reduce its cash operating costs per barrel of oil equivalent, thereby aiding its bottom line.
Matador Resources has a strong presence in the oil-rich core acres of the Wolfcamp and Bone Spring plays in the Delaware Basin. Promising oil price is likely to aid it in increasing production volumes. Matador acquired Advance Energy Partners Holdings, LLC, which comprises several oil and natural gas-producing properties and undeveloped acreage. MTDR expects the acquisition to be accretive to important valuation and financial metrics.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.