W-H Energy Services
W-H (WHQ) warned back on Oct-11th and was severely beaten with an $18 drop. Their earnings are Tuesday. I think the damage was overdone and we could see an improvement in the outlook. I am suggesting this as a short term trade that could turn into a long term position.
W-H Energy Services, Inc. (W-H) is a diversified oilfield service company that provides products and services used in connection with the drilling and completion of oil and natural gas wells and the production of oil and natural gas. The Company has operations in North America and select areas internationally. The business operations include drilling related products and services, which include logging-while-drilling, measurement-while-drilling, directional drilling, down-hole drilling motors, drilling fluids and rental tools, and completion and workover related products and services, which include cased-hole wireline logging, perforating, tubing conveyed perforating and associated rental equipment, coiled tubing, completion fluids and rental tools. The customers include independent oil and natural gas companies, drilling contractors and other oilfield service companies.
Buy April $65 Call WHQ-DM currently $5.10
SLB $99.58 - Schlumberger
SLB posted earnings that rose +35% but the stock was hammered on worries about slowing gas drilling in North America. American revenue was off -3% from the prior year while other areas were up strongly. SLB shares fell from the prior week's high near $114 to $94.79 after earnings. That triggered our entry at $95. I think this is an excellent entry right at the 100-day average and without any further surprises in service sector earnings SLB should move up from here. No stop until we see what next week brings.
Schlumberger Limited (Schlumberger) is an oilfield service company supplying a range of technology services and solutions to the international petroleum industry. It consists of two business segments: Schlumberger Oilfield Services and WesternGeco. Schlumberger Oilfield Services is an oilfield services company supplying a range of technology services and solutions to the international oil and gas industry. WesternGeco, owned by Schlumberger and Baker Hughes, is an advanced surface seismic company. Schlumberger's products and services include the evaluation and development of oil reservoirs (controlled digging, pumping and testing services), well construction and production consulting, and sale of software programs. The Company also offers storage tank and seismic monitoring services. Schlumberger Limited is headquartered in Paris, France.
Breakdown target: $95.00 hit Oct-22nd
Position: 2009 $100 LEAP Call VWY-AT @ $15.60
CVX $91.65 - Chevron
Another outstanding entry thanks to the Schlumberger earnings. Chevron fell more than $7 over 2 days on the SLB news to a low of $86.72 triggering our entry at $87. This was right on the 100-day average and strong support. No stop today.
Earnings are Nov-2nd
Chevron Corp. (Chevron), manages its investments in subsidiaries and affiliates, and provides administrative, financial, management and technology support to the United States and foreign subsidiaries that engage in fully integrated petroleum operations, chemicals operations, mining operations of coal and other minerals, power generation and energy services. Exploration and production (upstream) operations consist of exploring for, developing and producing crude oil and natural gas, and also marketing natural gas. Refining, marketing and transportation (downstream) operations relate to refining crude oil into finished petroleum products; marketing crude oil and the many products derived from petroleum, and transporting crude oil, natural gas and petroleum products by pipeline, marine vessel, motor equipment and rail car. Chemical operations include the manufacture and marketing of commodity petrochemicals, plastics for industrial uses, and fuel and lubricant oil additives.
Breakdown trigger: $87 hit Oct-22nd
Position: 2009 $100 LEAP Call VCH-AT @ $6.40
OII $78.55 - Oceaneering International
Absolutely no news on OII but the service company collapsed -$18 on the SLB news. Once again, thank you SLB. No stop
Oceaneering International, Inc. is a global oilfield provider of engineered services and products primarily to the offshore oil and gas industry, with a focus on deepwater applications. Through the use of its applied technology capabilities, the Company also serves the defense and aerospace industries. The services and products the Company provides to the oil and gas industry include remotely operated vehicles, mobile offshore production systems, built-to-order specialty hardware, engineering and project management, subsea intervention services, nondestructive testing and inspection, and manned diving. Oceaneering International, Inc s business segments are contained within two businesses: services and products provided to the oil and gas industry (Oil and Gas) and all other services and products (Advanced Technologies). In July 2007, the Company announced the acquisition of Ifokus Engineering AS, a Norwegian designer and manufacturer of specialty sub-sea products.
Breakdown trigger: $72 hit on Oct-22nd
Position: APR $80 Call OII-DP @ $5.40