Land drilling contractor
Nabors Industries Ltd.
) anticipates its first-quarter 2014 earnings per share (EPS) to
lag the consensus estimates. A severe winter hampered the
company's Completion Services business operations and is expected
to result in the earnings miss. Nabors added that it will face an
earnings shortfall of 7 cents per share owing to its Completion
Nabors' Completion Services segment comprises of pressure pumping
activities. The company carries out majority of its pressure
pumping operations in the Rocky Mountains and Appalachia basins.
Inclement weather has affected the company's pressure pumping
activities in the basins. However, Nabors expects its other
operations to generate earnings at par with the company's
Management believes the weak performance of the company's
pressure pumping business in first-quarter 2014 will not continue
for the remaining of the year due to improving demand.
Barbados-based Nabors conducts oil, gas, and geothermal land
drilling operations and is the largest land-drilling contractor
in the world. It is also one of the largest land well servicing
companies and workover contractors in the U.S. The company offers
a number of ancillary wellsite services, including oilfield
management, engineering, transportation, construction,
maintenance, well logging, and other support services in select
domestic and international markets.
Nabors currently has a Zacks Rank #2 (Buy), implying that it is
expected to outperform the broader U.S. equity market over the
next one to three months.
One can also consider better-ranked stocks in the oil and gas
drilling sector like
Patterson-UTI Energy Inc.
New Source Energy Partners LP
Precision Drilling Corp.
). All the players sport a Zacks Rank #1 (Strong Buy).
NABORS IND (NBR): Free Stock Analysis Report
NEW SOURCE EGY (NSLP): Free Stock Analysis
PRECISION DRILL (PDS): Free Stock Analysis
PATTERSON-UTI (PTEN): Free Stock Analysis
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