The Grapevine – Weatherford Int’l

OIlfield Grapevine

Weatherford International recently reported 1st Quarter 2013 earnings after adjustments that were generally in line with consensus estimates. The following day, the company’s stock price rose more than seven percent. Investors seemed relieved that no additional shoes dropped in the earnings release or conference call. The fact that such rise in stock price occurred on a report of no unexpected bad news says a lot about how Weatherford is currently viewed in the investor community.

Below are our thoughts on what we’ve read and heard from Weatherford recently, both positive and negative, as well as some updated data regarding the company’s customer satisfaction ratings and what they suggest for its new strategic tact: Continue reading “The Grapevine – Weatherford Int’l”

Sizing Up GE + Lufkin Industries – Part 2

M&A

Part 1 of this article discussed background issues at play for the companies in GE Oil & Gas‘ purchase of Lufkin Industries, including the uncharacteristic decline in Lufkin’s customer satisfaction ratings in 2011 and early 2012. It also took a look at the strategic rationale behind the deal.

This second part focuses on what the GE-Lufkin combination prospectively means for customers, with particular attention paid to the perceived cultural fit between the two companies. Continue reading “Sizing Up GE + Lufkin Industries – Part 2”

Sizing Up GE + Lufkin Industries – Part 1

M&A

Despite its relatively small size and narrow focus, Lufkin Industries‘ products are iconic within the petroleum industry. Glance at virtually any photo of a West Texas oilfield, and you’ll likely see at least one gracefully oscillating Lufkin pump jack. The oilfield’s a pretty practical place, but there’s always been something sublime about that particular image.

With its announcement earlier this week that it will purchase Lufkin Industries for $3.3 billion — a rich 38% premium over the previous trading-day’s closing price — GE Oil & Gas obviously sees something inspiring in the shot as well. The industrial giant clearly believes there are strong secular growth prospects in artificial lift applications. Continue reading “Sizing Up GE + Lufkin Industries – Part 1”

Can Weatherford Rise From The Ashes?

Weatherford

With the long-awaited restatement of its financials and resolution of tax issues expected to be completed shortly, Weatherford is looking to put one of the gloomiest chapters in its history behind it. And while the company faces challenges going forward, there’s evidence it could be closer than one might suspect to finding its natural place in the world.

An amalgam of acquired companies that provides everything from contract-drilling services to downhole completion tools, Weatherford has always possessed potential. Even its oilfield competitors acknowledge this. Yet, this potential has continually been arrested by an ongoing string of issues that, in whac-a-mole fashion, never seem to stop popping up. Continue reading “Can Weatherford Rise From The Ashes?”

Availability & Delivery Help Drive Satisfaction in Artificial Lift

Artificial Lift - Feature Image

Advances in the E&P space coming fast these days. And industry suppliers that fail to stand equipped and fleet-of-foot run the risk of falling behind.

Results from EnergyPoint Research’s latest customer satisfaction survey indicate that product availability and efficient delivery are ways suppliers of artificial lift equipment might distinguish themselves going forward. Quality control, engineering and other factors will certainly continue to matter to customers, but so will actually having the desired equipment at the time it’s needed. Continue reading “Availability & Delivery Help Drive Satisfaction in Artificial Lift”

Getting More of What’s Down There

Getting More of What's Down There

No doubt the ability to maximize well potential is crucial to the oil and gas industry’s future. Companies must complete wells damage-free and seek new ways to enhance them in order to stand apart. Continued progress in well-completions is vital to the industry’s ability to develop its reserves.

This post examines the state of customer satisfaction across various completion-related products and services in our surveys. And generally speaking, survey respondents are pleased. In fact, the data show the category’s ratings have outperformed since 2006. Continue reading “Getting More of What’s Down There”