Back to top

The Zacks Analyst Blog Highlights: Baker Hughes, Viper Energy Partners, Jagged Peak Energy, Legacy Reserves and W&T Offshore

Read MoreHide Full Article

For Immediate Release

Chicago, IL – June 28, 2017 – 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 Inc. (NYSE: Free Report ), Viper Energy Partners LP (NASDAQ: (VNOM - Free Report) Free Report ), Jagged Peak Energy Inc. (NYSE: (JAG - Free Report) Free Report ), Legacy Reserves LP (NASDAQ: Free Report ) and W&T Offshore Inc. (NYSE: (WTI - Free Report) Free Report ).

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free .

Here are highlights from Tuesday’s Analyst Blog:

US Rig Count Up for 23rd Week, Oklahoma Leads the Way

Oil field services firm Baker Hughes Inc. (NYSE: Free Report ) recently reported the rig count for the week ended Jun 23. In the U.S., the total number of rigs increased from the preceding week, primarily owing to a rise in the number of land rigs. This also marks the 23rd consecutive increase in the U.S. weekly rig count after the nation witnessed a drop in the count in the week ended Jan 13.

Investors should know that among all the states in the U.S., Oklahoma witnessed the highest rise in rig count.

Rig Count Increases for North America

Total rig count in North America – the U.S. and Canada – for the week ended Jun 23 was 1111. The reported figure was higher than 1092 a week ago and 497 a year earlier.

Total U.S. Rig: Total number of rigs in the U.S. was 941, higher than 933 recorded in the week ended Jun 16, as well as 421 a year ago.

Of the total U.S. rigs, land rig count stood at 915. The reported figure is higher than 908 rigs recorded in the previous week and 397 a year ago.

The number of U.S. offshore rigs for the week ended Jun 23 was 22. The rig count is in line with the previous week’s count and higher than 21 rigs recorded in the previous year.

U.S. Oil Rig Count: The count was up by 11 from the previous week to 758. The number had skyrocketed to 1,609 in Oct 2014 – the highest since Baker Hughes started reporting oil and natural gas rig counts separately in 1987. The tally was also well above the previous year’s rig count of 330.

U.S. Natural Gas Rig Count: The count went down by 3 from last week to 183. Moreover, the current natural gas rig count is nearly 90% below the high of 1,606 reached in late summer 2008. There were 90 active natural gas rigs in the year-ago period.

Canada Rig Count: In Canada, the total rig count was 170, compared with 159 last week. The count was 76 a year ago.

Reasons for the Upside

In North America, the U.S. and Canada rig counts increased from the prior week and year. Oklahoma, where rig count rose by 5, was mainly responsible for the increase in the U.S. weekly rig count. Rig count in North Dakota and Louisiana increased by 3 and 2, respectively.

Let’s analyze the broader factors.

OPEC and 11 non-OPEC players, including Russia, decided in the Vienna meeting on May 25, to extend the production cut deal until Mar 2018. Thus, it is an ideal time for shale players to increase production at the expense of OPEC, especially because oil is trading way above the historical low level reached last February. No wonder, U.S. shale producers have been gathering to oil patches as they aim to sell the commodity at higher prices.

We should consider President Donald Trump’s exit from Paris Climate accord as a factor encouraging drillers to continue pumping more oil.

Companies Poised to Benefit

Companies belonging to the Oil & Gas-U.S Exploration & Production industry are likely to benefit the most from these developments. Our proprietary model shows that Viper Energy Partners LP (NASDAQ:(VNOM - Free Report) Free Report ), Jagged Peak Energy Inc. (NYSE: (JAG - Free Report) Free Report ), Legacy Reserves LP (NASDAQ: Free Report ) and W&T Offshore Inc. (NYSE: (WTI - Free Report) Free Report ) are among the upstream companies that are worth a bet right now. Viper Energy sports a Zacks Rank #1 (Strong Buy), while Jagged Peak, Legacy Reserves and W&T Offshore carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here .

Viper Energy managed to beat the Zacks Consensus Estimate in each of the prior four quarters, with an average positive earnings surprise of 20.35%.

Jagged Peak Energy is expected to see 295.4% rise in revenues in 2017.

Legacy Reserves had an average positive earnings surprise of 11.84% in the last four quarters. On top of that, the stock will likely see an 85.6% increase in 2017 earnings.

W&T Offshore beat earnings in each of the last four quarters at an average of 69.21%.

Zacks' Hidden Trades

While we share many recommendations and ideas with the public, certain moves are hidden from everyone but selected members of our portfolio services. Would you like to peek behind the curtain today and view them?

Starting now, for the next month, I invite you to follow all Zacks' private buys and sells in real time from value to momentum...from stocks under $10 to ETF to option movers...from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors.

Click here for Zacks' secret trade>>

Strong Stocks that Should Be in the News

Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.

Get the full Report on BHI - FREE

Get the full Report on VNOM - FREE

Get the full Report on JAG - FREE

Get the full Report on LGCY - FREE

Get the full Report on WTI - FREE

Follow us on Twitter:

Join us on Facebook:

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

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 for information about the performance numbers displayed in this press release.

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

Viper Energy Partners LP (VNOM) - free report >>

Jagged Peak Energy Inc. (JAG) - free report >>

W&T Offshore, Inc. (WTI) - free report >>

Published in