Zacks.com Analyst Blog features: Baker Hughes Inc. (NYSE: BHI), Transocean Inc. (NYSE: RIG), Diamond Offshore (NYSE: DO), Noble Corp. (NYSE: NE) and Helmerich & Payne (NYSE: HP).
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Here are highlights from Monday’s Analyst Blog:
U.S. Rig Count at 23-Month High
In its weekly release, Houston-based oilfield services company Baker Hughes Inc. (NYSE: BHI) reported a rise in the U.S. rig count (number of rigs searching for oil and gas in the country), primarily reflecting an increase in the land rig count.
The Baker Hughes rig count, issued since 1944, acts as an important yardstick for drilling contractors such as Transocean Inc. (NYSE: RIG), Diamond Offshore (NYSE: DO), Noble Corp. (NYSE: NE) and Helmerich & Payne (NYSE: HP) in gauging the overall business environment of the oil and gas industry.
Weekly Summary
Rigs engaged in exploration and production in the U.S. totaled 1,713 , up by 26 from the previous week’s rig count and representing a 23-month high. The current nation-wide rig count is 96% higher than the 2009 low of 876 (set in the week ended June 12, 2009) and significantly exceeds the prior-year level of 1,141. It rose to a 22-year high in 2008, peaking to 2,031 in the weeks ending August 29 and September 12.
Rigs engaged in land operations climbed by 26 to 1,673, offshore drilling increased by 3 rigs to 23, while inland waters activity dipped by 3 to 17.
Natural Gas Rig Count
The natural gas rig count increased for the second consecutive week to 961 rigs (a gain of 8 from the previous week). The current number of gas-directed rigs is just 31 rigs short of the 18-month high reached during mid-August, rebounding strongly after bottoming out to a 7-year low of 665 on July 17, 2009. Still, the rig count remains 40% below its peak of 1,606 in late summer 2008. In the year-ago period, there were 748 active natural gas rigs.
Oil Rig Count
The oil rig count was up by 18 rigs to 742, the 16th gain in the last 20 weeks. The current tally is considerably higher than the previous year’s rig count of 383. It has recovered nicely from a low of 179 in June 2009, more than quadrupling in number.
Miscellaneous Rig Count
The miscellaneous rig count (primarily drilling for geothermal energy) at 10 remained unchanged from the previous week.
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