April 27 (Reuters) – Superior Energy Services shares
rose as much as 5 percent on Friday, after the oilfield services
company raised its 2012 profit forecast, but smaller peers
Newpark Resources and Key Energy Services fell
after their profit missed estimates on weak natural gas prices.
Superior Energy said it expects to benefit from the ongoing
recovery in deep water Gulf of Mexico activity and seasonal
improvements in demand in the region’s shallow water areas.
The company raised its 2012 profit outlook to $3.30-$3.60
per share, from the $3.20-$3.60 per share it forecast earlier.
“Some had incorrectly anticipated that management may need
to lower its guidance given its exposure to pressure
pumping,” Simmons & Co analysts wrote in a note.
Oilfield service companies have warned of weakness in North
American pressure pumping market due to slow activity in natural
gas basins.
A clutch of producers, including Chesapeake Energy Corp
and Encana Corp, have cut back on natural gas
drilling as prices have fallen to decade-lows of $2.5 per
million British thermal units.
Weak gas prices also affected Newpark Resources’ and Key
Energy’s quarterly profits that missed analysts’ estimates.
“The gas dislocation theme should work itself out over the
next couple quarters … but the near-term outlook clearly takes
a hit with first-quarter results,” analysts at Raymond James
wrote in a note to clients on Newpark Resources.
Key Energy cut its 2012 revenue growth forecast to about 30
percent from the 35 percent it expected earlier.
Key Energy’s shares were trading down 6 percent, while
Newpark Resources’ were down 10 percent on the New York Stock
Exchange.
(Reporting by Vaishnavi Bala in Bangalore; Editing by Sriraj
Kalluvila)
((vaishnavi.bala@thomsonreuters.com within U.S. +1 646 223 8780
outside U.S. +91 80 4135 5800 Reuters
Messaging:vaishnavi.bala.reuters.com@reuters.net)
