Invesco Oil & Gas Services ETF (ARCA: PXJ)

最新ニュース Invesco Oil & Gas Services ETF (ARCA:PXJ)

Invesco Dynamic Oil & Gas Services ETF

PowerShares Dynamic Oil Services

Energy

Other

Industrials

The Fund generally will invest at least 90% of its total assets in securities that comprise the Underlying Index. The underlying Index is composed of common stocks of U.S. companies that provide support activities for oil and gas operations.

Baker Hughes A Ge Co. Class A

Technipfmc Plc

Nov, Inc

Schlumberger Nv.

Weatherford International Plc

Halliburton Co.

Frontline PLC

Golar LNG Limited

Oceaneering International Inc

Invesco Oil and Gas Services ETF

Invesco Oil & Gas Services ETF

Several analysts lowered the price target following Halliburton Company&#8216;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HAL#NYSE">HAL</a>) mixed fourth-quarter results and weak <a href="https://www.benzinga.com/quote/hal/analyst-ratings">guidance reported Wednesday.</a>
Halliburton reported revenue decline of 2.3% year-over-year to $5.610 billion, missing the consensus of $5.63 billion. Adjusted EPS was 70 cents, down from 86 cents a year ago and above <a href="https://www.benzinga.com/news/earnings/25/01/43131221/halliburton-faces-mixed-q4-with-north-american-weakness-but-global-gains-and-cash-flow-bolster-optimism">the consensus of 69 cents</a>.
Stifel analyst Stephen Gengaro lowered the price target from $42 to $37, while maintaining a Buy rating.
The analyst says that Halliburton reported solid results but issued weak guidance for the first quarter and 2025.
Gengaro highlights international revenue headwinds from Mexico and pricing concessions on fully contracted North American frac fleets, which may pressure C&amp;P margins.
Despite these challenges, the company's long-term growth outlook remains strong, driven by its product portfolio, service quality, technology focus, and geographic diversity. Robust free cash flow should continue to support shareholder returns, adds the analyst.
The analyst cut the 2025 EBITDA estimate to $4.665 billion from $5.296 billion and introduced a 2026 EBITDA forecast of $5.330 billion.
Meanwhile, Goldman Sachs analyst Neil Mehta lowered the price target from $36 to $34, while keeping the Buy rating.
The analyst updated estimates following the results to reflect company guidance and a softer activity environment.
In particular, the analyst revised EBITDA estimates by -7% for 2025 and -8% for 2026.
Mehta said management's focus on technology, particularly digital solutions and automation, should reinforce its competitive position and drive margin expansion.
While the analyst anticipates a modest decline in 2025 revenue, strong free cash flow remains a key strength, with an estimated $2.4 billion in FCF (~10% yield) and a 7% total capital return yield.
Read: <a href="https://www.benzinga.com/25/01/43138748/halliburton-misses-q4-revenue-estimates-analyst-doubts-2025-growth-in-middle-east">Halliburton&#8217;s Soft Revenue Lags Estimates, Goldman Sachs Analyst Seeks Clarity On 2025 Activities</a>
Also, Piper Sandler analyst Derek Podhaizer reiterated an Overweight rating and a price target of $36.
The analyst writes that Halliburton shares fell after lowering 2025 expectations, guiding NAM revenue to decline low- to mid-single digits year-over-year and international revenue to remain flat.
Podhaizer expects a meaningful first-quarter of 2025 decline, with EBIT margins contracting over 100bps due to lower U.S. frac pricing.
While consensus estimates must adjust downward, the analyst trims EBITDA estimates by -8% for the first quarter, -2% for FY25, and -4% for FY26, aligning with the view that NAM will bottom before international.
Investors can gain exposure to the stock via VanEck Oil Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OIH#NYSE">OIH</a>) and Invesco Oil &amp; Gas Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PXJ#NYSE">PXJ</a>).
Price Action: HAL shares are down 1.1% at $28.13 at last check Thursday.
Read Next: <a href="https://www.benzinga.com/25/01/43138517/chipmakers-rally-on-ai-stargate-bet-netflix-soar-bitcoin-falters-amid-trumps-crypto-silence-whats-driving-markets-wednesday"></a>
<ul>
<li><a href="https://www.benzinga.com/25/01/43138517/chipmakers-rally-on-ai-stargate-bet-netflix-soar-bitcoin-falters-amid-trumps-crypto-silence-whats-driving-markets-wednesday">Chipmakers Rally On AI Stargate Bet, Netflix Soars, Bitcoin Falters As Trump Keeps Quiet On Crypto: What&#8217;s Driving Markets Wednesday?</a></li>
</ul>
Photo: Shutterstock

Equities

Large Cap

News

Price Target

Halliburton Analysts Trim Forecasts After Softer 2025 Guidance

Golar LNG Limited (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GLNG#NASDAQ">GLNG</a>) shares traded lower in the premarket session on Tuesday but recovered from the loss. The company has acquired Seatrium&#8217;s and Black &amp; Veatch&#8217;s minority stakes in the FLNG Hilli, including 5.45% common units, 10.9% <a target="_blank" href="https://www.benzinga.com/pressreleases/24/12/g42666947/golar-acquires-all-outstanding-minority-interests-in-the-flng-hilli" rel="noreferrer noopener">Series A shares, and 10.9% Series B shares</a>.
The total transaction value is $90.2 million, comprising $59.9 million in equity and $30.3 million as a pro-rata share of the existing FLNG Hilli debt facility.
This acquisition represents approximately 8% of the full FLNG capacity.
Golar&#8217;s increased ownership will take full economic effect starting January 1, 2025.
The FLNG Hilli is contracted to Perenco in Cameroon until July 2026, after which it is planned to relocate to Argentina under a 20-year agreement with Southern Energy, a consortium of leading Argentine natural gas producers.
The Southern Energy contract is contingent on conditions such as obtaining an export license, completing an environmental assessment, and a Final Investment Decision by Southern Energy.
Since commencing operations in 2018, the FLNG Hilli has achieved global-leading uptime, delivering 124 LNG cargoes and offloading over 8.5 million tons of LNG.
Additionally, Golar LNG and Seatrium have resolved outstanding items, including a $7 million payment by Golar to Seatrium for a Hilli Train 3 utilization bonus and historical work on the former Golar Gandria LNGC.
Following these settlements, no further contractual obligations regarding existing assets remain between Golar and Seatrium.
Golar CEO Karl-Fredrik Staubo said, &#8220;Golar is pleased to take full ownership of FLNG&nbsp;Hilli. The increased ownership will give immediate cash flow accretion and is expected to add approximately $0.5bn of Adjusted EBITDA backlog.&#8221;
Investors can gain exposure to the stock via Exchange Traded Concepts Trust Range Global LNG Ecosystem Index ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LNGZ#NYSE">LNGZ</a>) and Invesco Oil &amp; Gas Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PXJ#NYSE">PXJ</a>).
Price Action: GLNG shares are up 0.62% at $42.10 premarket at the last check on Tuesday.
Read Next:
<ul>
<li><a href="https://www.benzinga.com//node/42666701" target="_blank" rel="noreferrer noopener">Nasdaq Gains Around 1% As Tesla, Nvidia Rise Ahead Of Christmas: Greed Index Remains In &#8216;Fear&#8217; Zone</a></li>
</ul>

Commodities

GLNG

LNGZ

Golar LNG Expands FLNG Hilli Stake, Eyes Long-Term Argentina Deal

Goldman Sachs analyst Ati Modak downgraded Weatherford International plc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WFRD#NASDAQ">WFRD</a>) to Neutral and lowered <a href="https://www.benzinga.com/quote/wfrd/analyst-ratings" target="_blank" rel="noreferrer noopener">the target price to $98 from $132</a>.
While WFRD remains a high-quality stock with a solid execution record, the analyst notes the current environment makes international-focused exposure less compelling compared to other energy investment options.
Meanwhile, the analyst anticipates earnings growth driven by increased adoption of Managed Pressure Drilling and innovations like RFID technology, alongside margin expansion even in a flat revenue growth environment.
The analyst estimates a total return potential of 4% for every dollar invested in Weatherford over the next 12 months, comprising a 1% dividend yield, ~1% from share repurchases, and ~2% upside to consensus estimates.
Based on their estimates, the analyst says that WFRD&#8217;s planned ~$500 million debt reduction in 2025 could theoretically add ~$9 per share in implied value.
However, Modak expects the current environment to prioritize incremental improvements in shareholder returns driven by ongoing deleveraging efforts.
The analyst lowered the 2025/2026 EBITDA estimates by -3%/-8%, reflecting adjusted activity expectations and reduced capital returns.
Investors can gain exposure to the stock via Invesco Dorsey Wright Energy Momentum ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PXI#NASDAQ">PXI</a>) and Invesco Dorsey Wright Energy Momentum ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PXJ#NYSE">PXJ</a>).
Price Action: WFRD shares are down 1.99% at $76.49 at the last check Friday.
Read Next:
<ul>
<li><a href="https://www.benzinga.com//node/42487128" target="_blank" rel="noreferrer noopener">Apple&#8217;s 2025 Chip Transition Targets New Wireless Edge, Broadcom To Retain Key Role</a></li>
</ul>
Image via Shutterstock.

Analyst Color

Mid Cap

Downgrades

Analyst Ratings

Trading Ideas

PowerShares Dynamic Energy Sector Portfolio

WFRD

Weatherford Downgraded As Analyst Sees Limited Returns Despite Deleveraging Efforts

Oil prices kicked off the week with a notable rally, driven by OPEC+'s decision to postpone an anticipated production increase ahead of the <a href="https://www.benzinga.com/topic/2024-election">imminent U.S. presidential elections. </a>
The oil cartel and its allies, including Russia, opted to delay plans to ramp up output by another month, citing ongoing market weakness and sluggish demand.
On Monday, West Texas Intermediate (WTI) crude — as closely tracked by the United States Oil Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USO#NYSE">USO</a>) — surged as much as 3% to hit $71.50 per barrel, its highest since Oct. 25, while Brent crude rose 2.7% to reach $75 per barrel.
See Also: <a href="https://www.benzinga.com/news/earnings/24/11/41709016/us-stocks-likely-to-open-in-green-amid-hints-of-tentativeness-on-election-eve-expert-says-brace-for">US Stocks Likely To Open In Green Amid Hints Of Tentativeness On Election Eve: Expert Says Brace For Volatility Ahead Of Fed&#8217;s Rate Decision</a>
These gains effectively erased last week&#8217;s losses, which followed Israel's limited response to Iran — a development that experts said reduced the risk of a broader conflict in the Middle East, providing temporary relief for oil markets.
OPEC+ announced on Sunday that it would maintain its production cut of 2.2 million barrels per day (bpd) through December. 
Originally, the group had planned to increase output by 180,000 bpd in December, but it conditioned this hike on favorable price conditions. 
The next formal meeting of OPEC+ ministers is scheduled for December 1, although the group has the flexibility to convene extraordinary meetings or alter its policies at any time.
<h3 class="wp-block-heading">US Sanctions Policy Could Shape Future Of Oil</h3>
The outcome of the upcoming U.S. presidential election could be crucial for the oil market, particularly with regard to sanctions policies that affect OPEC+ producers like Russia, Iran, and Venezuela. 
&#8220;After plummeting during the first Trump administration, production in Iran and Venezuela has recovered under President Joe Biden, with the focus of sanctions moving to Russia,&#8221; wrote S&amp;P Global. 
Combined, Iran and Venezuela pumped 4.15 million bpd in September, up from 3.2 million bpd in February 2022, according to Platts' OPEC+ Survey by Commodity Insights, as both countries are exempt from quotas under the OPEC+ agreement, allowing them to pump as much as they can. 
Sanctions policy is expected to remain a key factor influencing the global oil supply, particularly amid ongoing geopolitical tensions in Ukraine and the Middle East.
The Biden-Harris administration has imposed extensive sanctions on Russia, aiming to weaken its military capabilities and hinder its economic resources that support the ongoing war in Ukraine. These sanctions, coordinated with allies like the G7 and EU, target key areas, including Russia&#8217;s defense sector, critical supply chains, and financial networks.
However, Jim Burkhard, vice president of research at S&amp;P Global Commodity Insights, suggested that a second Donald Trump administration might be more inclined to <a href="https://www.benzinga.com/news/24/10/41303548/kremlin-critic-warns-russia-could-grow-stronger-if-trump-wins-white-house-will-basically-be-handing">loosen sanctions on Russia</a>. 
Both parties are likely to maintain pressure on Iran given its ongoing conflict with Israel.
<h3 class="wp-block-heading">US Energy ETFs To Watch Amid Rising Oil Prices</h3>
The surge in oil prices could buoy U.S. energy stocks, particularly those tied to exploration, production, and refining. Here are five key U.S. energy ETFs that may see gains as crude prices continue their upward trend:
<ul>
<li>Energy Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>), which had already risen by 1% during premarket trading in New York on Monday</li>
<li>SPDR S&amp;P Oil &amp; Gas Explor. &amp; Product ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOP#NYSE">XOP</a>)</li>
<li>Invesco Oil &amp; Gas Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PXJ#NYSE">PXJ</a>)</li>
<li>VanEck Oil Refiners ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CRAK#NYSE">CRAK</a>)</li>
<li>EA Series Trust Strive U.S. Energy ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DRLL#NYSE">DRLL</a>)</li>
</ul>
Now Read:
<ul>
<li><a href="https://www.benzinga.com/news/earnings/24/11/41709016/us-stocks-likely-to-open-in-green-amid-hints-of-tentativeness-on-election-eve-expert-says-brace-for">US Stocks Likely To Open In Green Amid Hints Of Tentativeness On Election Eve: Expert Says Brace For Volatility Ahead Of Fed&#8217;s Rate Decision</a></li>
</ul>
Image: Shutterstock

Macro Economic Events

Sector ETFs

Politics

Econ #s

Economics

ETFs

CRAK

DRLL

Oil Prices Spike By Over 3% As OPEC+ Delays Production Increases Ahead Of US Elections: 5 Energy ETFs To Watch Monday

Helix Energy Solutions Group, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HLX#NYSE">HLX</a>) shares are<a target="_blank" href="https://www.benzinga.com/movers" rel="noreferrer noopener"> trading relatively flat on Wednesday.</a>
The company has secured a new multi-year agreement with Shell Offshore Inc, a unit of Shell PLC (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SHEL#NYSE">SHEL</a>), starting in 2025, to continue delivering well intervention services in the U.S. Gulf of Mexico.
Scotty Sparks, Helix&#8217;s Executive Vice President and Chief Operating Officer, stated, &#8220;The contract is reflective of improving market conditions and increased demand for Helix&#8217;s assets and services, as we continue executing on our strategy by providing best-in-class and global leading well intervention services.&#8221;
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/news/earnings/24/09/40705415/dollar-tree-q2-earnings-revenue-and-eps-miss-cuts-annual-forecasts-as-customers-feel-macro-pressure" rel="noreferrer noopener">Dollar Tree Q2 Earnings: Revenue And EPS Miss, Cuts Annual Forecasts As Customers Feel Macro Pressure On Spending, Stock Tumbles</a>
Under this contract, Helix will provide an increased minimum number of days annually using the Q5000 riser-based well intervention vessel, Intervention Riser Systems (IRSs), remotely operated vehicles (ROVs), as well as project management and engineering services.
The contract covers fully integrated operations ranging from production enhancement to well plug and abandonment.
Additionally, the operations will include equipment from the Subsea Services Alliance, leveraging the combined strengths of Helix and Schlumberger (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SLB#NYSE">SLB</a>).
According to&nbsp;<a target="_blank" href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw" rel="noreferrer noopener">Benzinga Pro</a>, HLX stock has gained over 4.9% in the past month. Investors can gain exposure to the stock via&nbsp;Invesco Oil &amp; Gas Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PXJ#NYSE">PXJ</a>).
Price Action: HLX shares are trading higher by 0.23% to $10.67 on Wednesday.
Photo via Shutterstock
Read Next:
<ul>
<li><a href="https://www.benzinga.com/news/earnings/24/09/40704141/hormel-foods-fy24-outlook-takes-a-hit-amid-production-disruptions-stock-plummets" target="_blank" rel="noreferrer noopener">Hormel Foods' FY24 Outlook Takes A Hit Amid Production Disruptions, Stock Plummets</a></li>
</ul>

Contracts

Markets

General

SHEL

Helix Energy Secures Multi-Year Deal With Shell Subsidiary For Gulf Of Mexico Operations

Halliburton Company&#8217;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HAL#NYSE">HAL</a>) stock is trading lower on Tuesday<a target="_blank" href="https://www.benzinga.com/premarket" rel="noreferrer noopener"> in the premarket session.</a>
Earlier, in an exchange filing dated August 21, the company said that it became aware that an unauthorized<a target="_blank" href="https://www.benzinga.com/markets/equities/24/08/40511054/halliburtons-north-houston-campus-affected-by-cyberattack-report" rel="noreferrer noopener"> third party gained access to certain of its systems.</a>
Halliburton <a target="_blank" href="https://ir.halliburton.com/static-files/ab23c34e-0577-4843-8da1-43fee4f4de2e" rel="noreferrer noopener">reported</a> today in a filing that the cyber attack has disrupted and restricted access to critical business applications, impacting various operations and corporate functions. The company insists that the incident hasn&#8217;t and isn&#8217;t expected to significantly impact its financial health or operations.
The company suspects that an unauthorized third party gained access to and extracted sensitive information from its systems. Halliburton is currently assessing the extent of the breach and determining the necessary notifications.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/earnings/24/09/40682836/wall-street-poised-for-sharply-lower-start-in-new-week-as-risk-off-sentiment-dominates-vix-spikes-a" rel="noreferrer noopener">Wall Street Poised For Sharply Lower Start As Risk-Off Sentiment Dominates, VIX Spikes: Analysts Fret Over Sluggish September Seasonality</a>
However, it still faces a slew of risks: management distractions, possible lawsuits, shifts in customer behavior, and a likely increase in regulatory scrutiny.
Halliburton said it is actively updating its customers and stakeholders about the incident.
Adhering to its rigorous safety protocols under the Halliburton Management System, it also assesses the impact of the breach on its ongoing operations. the filing added.
According to&nbsp;<a target="_blank" href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw" rel="noreferrer noopener">Benzinga Pro</a>, HAL stock has lost over 23% in the past year. Investors can gain exposure to the stock via iShares U.S. Oil Equipment &amp; Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IEZ#NYSE">IEZ</a>) and Invesco Oil &amp; Gas Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PXJ#NYSE">PXJ</a>).
Price Action: HAL shares are trading lower by 1.74% to $30.55 premarket at last check Tuesday.
Image via Shutterstock
Read Next:
<ul>
<li><a href="https://www.benzinga.com/24/08/40667108/magnificent-7-miss-out-2-cybersecurity-stocks-stand-firm-retailers-lag-in-volatile-august-here-are-t" target="_blank" rel="noreferrer noopener">Magnificent 7 Miss Out, 2 Cybersecurity Stocks Stand Firm, Retailers Lag In Volatile August: Here Are The Top S&amp;P 500 Gainers And Losers</a></li>
</ul>
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Movers

iShares Dow Jones US Oil Equipment & Services Index Fund

Why Is Halliburton Stock Falling Today?

Frontline Plc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FRO#NYSE">FRO</a>) reported second-quarter&nbsp;revenue&nbsp;of&nbsp;$607.5 million, beating the consensus of&nbsp;$382.3 million.
Reported spot <a target="_blank" href="https://ml-eu.globenewswire.com/Resource/Download/4851e311-0b97-4f75-8ea8-7a817814a00e" rel="noreferrer noopener">TCEs</a> for VLCCs, Suezmax tankers, and LR2/Aframax tankers were $49,600 (vs. $64,000 last year), $45,600 (vs. $61,700 last year) and $53,100 (vs. $52,900 prior year) per day.&nbsp;
In the quarter, ballast days totaled 1,043 for VLCCs, 306 for Suezmax tankers, and 147 for LR2/Aframax tankers.
Net operating income for the quarter improved to $255.92 million from $252.98 million a year ago. Adjusted EPS was $0.62 versus $0.94 a year ago, <a href="https://www.benzinga.com/calendars/earnings" target="_blank" rel="noreferrer noopener">missing the consensus of $0.67.</a>
In&nbsp;the second quarter, operating cash flow was&nbsp;$232.68 million&nbsp;compared to&nbsp;$283.14 million a year ago quarter.&nbsp;FRO held cash and cash equivalents of&nbsp;$359.24 million&nbsp;as of June-end.
In the quarter, the company agreed to sell its oldest Suezmax tanker for a net sales price of $48.5 million. After settling existing debt, the transaction is expected to result in approximately $36.5 million in net cash proceeds.
The company secured a $512.1 million sale-and-leaseback commitment to refinance 10 Suezmax tankers, pending final documents. It is expected to generate $101.0 million in Q4 2024, with part allocated to repaying $75.0 million from the $275.0 million Hemen credit facility.
Dividend: The company declared a dividend of&nbsp;$0.62&nbsp;per share for&nbsp;the second quarter, payable on or about September 30, 2024. The record date for the dividend will be September 13, 2023.
Lars H. Barstad, Chief Executive Officer said, &#8220;The second quarter of 2024 was very much in line with first quarter. Markets carried on at the same pace with positive volatility in an increasingly complicated geo-political landscape. Frontline continued optimizing its position by divesting older assets, consolidating our financials and executing on our strategy of efficiently running one of the largest modern fleets in the tanker market to enhance shareholder returns.&#8221;
&#8220;Seasonality has a big effect on tanker markets, and as most of the global population lives in the northern hemisphere, the summer is the soft period. Historically, refinery utilization increases from here, as the world begins to prepare for winter and volatility in the tanker markets resumes.&#8221;
Outlook: Frontline anticipates that spot TCEs for the third quarter of 2024 to be lower than current contracted rates due to ballast days at the end of the quarter.
Looking ahead, the company stated that oil demand is expected to increase in the second half of the year, potentially reaching 104.9 mbpd by December 2024.
Investors can gain exposure to the stock via Invesco Oil &amp; Gas Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PXJ#NYSE">PXJ</a>) and SonicShares Global Shipping ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BOAT#NYSE">BOAT</a>).
Price Action: FRO shares are up 0.21% at $23.37 premarket at the last check Friday.
Read Next:
<ul>
<li><a href="https://www.benzinga.com//node/40645642" target="_blank" rel="noreferrer noopener">Boeing Starliner To Undock From ISS And Return To Earth Without Crew As Early As Sept. 6</a></li>
</ul>
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Earnings

Guidance

BOAT

Frontline Navigates Choppy Waters: Q2 Revenue Soars, But EPS Sinks In Spicy Tanker Market

ChampionX Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CHX#NASDAQ">CHX</a>) shares are trading higher, while Schlumberger Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SLB#NYSE">SLB</a>) shares are down after the Texas-based companies announced <a href="https://www.benzinga.com/pressreleases/24/04/g38042380/slb-announces-agreement-to-acquire-championx-in-an-all-stock-transaction" target="_blank" rel="noreferrer noopener">an all-stock deal</a>.
What Happened: Schlumberger will acquire ChampionX, and the shareholders will receive 0.735 shares of Schlumberger in exchange for each ChampionX share. 
ChampionX shareholders will own approximately 9% of Schlumberger&#8217;s common shares once the deal closes.
Post closure, Schlumberger expects to realize annual pretax synergies of around $400 million within the first three years through revenue growth and cost savings. 
The transaction is projected to close before 2024, subject to shareholder and regulatory approval. 
Shareholder Return: The company disclosed that it will return $7 billion to shareholders&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">over the next two years</a>.&nbsp;
Schlumberger will increase its shareholder returns for 2024 to a target of $3 billion and project returns of $4 billion for 2025.&nbsp;
Olivier Le Peuch, SLB&#8217;s chief executive officer, said, &#8220;Our core strategy remains centered on meeting growing energy demand while accelerating decarbonization and emissions reduction through innovation, scale and digitalization in our core oil and gas business. This acquisition will expand SLB&#8217;s presence in the less cyclical and growing production and recovery space that is closely aligned with our returns-focused, capital-light strategy,&#8221; 
As of Dec. 31, 2023, Schlumberger&#8217;s cash and short-term <a href="https://www.benzinga.com/pressreleases/24/01/b36692786/slb-announces-fourth-quarter-and-full-year-2023-results-and-raises-quarterly-dividend-by-10" target="_blank" rel="noreferrer noopener">investments stood at $3.99 billion</a>.
Investors can gain exposure to ChampionX and Schlumberger via&nbsp;Invesco Oil &amp; Gas Services ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PXJ#NYSE">PXJ</a>),&nbsp;VanEck Oil Services ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OIH#NYSE">OIH</a>), and&nbsp;IShares U.S. Oil Equipment &amp; Services ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IEZ#NYSE">IEZ</a>).
Price Action: CHX shares are up 8.45% at $38.40 and SLB is down 2.68% at $53.74 on the last check Tuesday.

Dividends

Buybacks

ChampionX, Schlumberger Shares Move In Opposite Directions After $8B Deal Announcement

On Friday,&nbsp;ChampionX Corporation&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CHX#NASDAQ">CHX</a>) said it plans to acquire RMSpumptools Limited, a business unit of&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/24/03/g37886469/championx-agrees-to-acquire-rmspumptools-expanding-reach-in-international-offshore-production-tech" rel="noreferrer noopener">the energy division of U.K.-based James Fisher and Sons.</a>
The unit designs and manufactures highly engineered mechanical and electrical solutions for complex artificial lift applications.
As per the agreement terms, the net purchase price totals around £86 million, inclusive of net working capital adjustments, equivalent to approximately $110 million at the current exchange rate, the company said in a press release.
The company expects RMSpumptools to generate around $65 million in 2024 revenues and approximately $18 million in adjusted EBITDA for the same period.
The acquisition will bolster the company&#8217;s foothold in diverse international markets, including the Middle East, Latin America, and global offshore ventures.
&#8220;The acquisition of RMSpumptools is consistent with our capital allocation framework which includes bolt-on technology acquisitions,&#8221; said Sivasankaran &#8220;Soma&#8221; Somasundaram, President and CEO of ChampionX.
&#8220;RMSpumptools&#8217; highly complementary portfolio aligns seamlessly with ChampionX&#8217;s existing Production and Automation Technologies offerings, with minimal product overlap,&#8221; Somasundaram added.
The acquisition will be funded by cash on hand and will not impact ChampionX&#8217;s 2024 return of capital framework, which includes returning at least 60% of 2024 free cash flow to shareholders.
ChampionX held $289 million of&nbsp;<a target="_blank" href="https://www.benzinga.com//node/36942011" rel="noreferrer noopener">cash as of December 31, 2023.</a>&nbsp;The transaction currently is expected to close towards the end of second quarter or beginning of the third quarter of 2024.
CHX stock has gained over 35% in the past year. Investors can gain exposure to the stock via&nbsp;Invesco Oil &amp; Gas Services ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PXJ#NYSE">PXJ</a>) and&nbsp;VanEck Oil Services ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OIH#NYSE">OIH</a>).
Price Action: CHX shares are trading higher by 0.44% to $34.51 on the last checked Friday.
Photo via shutterstock

ChampionX Acquires RMSpumptools, Strengthening Global Presence In Artificial Lift Solutions

The Nasdaq-100 recently hit record highs and the S&amp;P 500 is almost all the way back to its pre-coronavirus slump record.
Some market segments and the <a href="https://www.benzinga.com/etfs/sector-etfs/20/06/16158957/3-soaring-cybersecurity-etfs">related exchange-traded funds</a> are doing even better than those broader benchmarks. At the sector level, technology and health care maintain leadership perches and there are signs of life in some previously lagging sectors.
Those green shoots are important, but some ETFs, <a href="https://www.benzinga.com/trading-ideas/long-ideas/20/05/16124176/leveraged-oil-etn-is-a-robinhood-hit-too">many of which have ties to oil</a>, are getting absolutely drubbed in 2020. The 10 worst-performing non-leveraged ETFs this year are sporting losses ranging from around 44% to just over 72%. Many are a direct play on crude.
Here&#39;s a trio that are getting crushed, but a couple are recently rebounding.
<h3>Invesco Dynamic Oil &amp; Gas Services ETF (PXJ)</h3>
How the Invesco Dynamic Oil &amp; Gas Services ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/pxj#NYSE">PXJ</a>) avoided a reverse split could become the stuff of ETF lore because at its March nadir, the fund traded as low as $1.57. PXJ isn&#39;t out of the reverse split woods quite yet with last Friday&#39;s close of $3.02.
That is to say PXJ has nearly doubled off its March lows and is higher by almost 44% over the past month, but is still saddled with a year-to-date loss of about 46%.
PXJ&#39;s roster includes &ldquo;companies that are engaged in the drilling of oil and gas wells; manufacturing oil and gas field machinery and equipment; or providing services to the oil and gas industry, such as well analysis, platform and pipeline engineering and construction, logistics and transportation services, oil and gas well emergency management and geophysical data acquisition and processing,&rdquo; <a href="https://www.invesco.com/us/financial-products/etfs/product-detail?productId=ETF-PXJ">according to Invesco</a>.
Translation: PXJ needs oil prices and demand to rise for its share price to do the same.
<h3>iShares U.S. Oil Equipment &amp; Services ETF (IEZ)</h3>
Many of the same sentiments that apply to the aforementioned PXJ are applicable to the iShares U.S. Oil Equipment &amp; Services ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/iez#NYSE">IEZ</a>). IEZ, which tracks the Dow Jones U.S. Select Oil Equipment &amp; Services Index, labored in the single digits until last Friday when it jumped almost 11%.
Even with a 52.28% gain over the past month, IEZ is down more than 47% this year. The fate of IEZ largely boils down to Schlumberger (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/slb#NYSE">SLB</a>) and Baker Hughes (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bhi#NYSE">BHI</a>) because those stocks combine for 38.16% of the fund&#39;s roster.
On the bright side for both IEZ and PXJ <a href="https://www.benzinga.com/analyst-ratings/analyst-color/20/05/16127812/analyst-upgrades-oil-services-stocks-predicts-doubling-of-us-rig-activity">is that some analysts</a> view the oil services group as so beaten up that there could be plenty more upside to be had even with the recent rally in the group.
<h3>United States Brent Oil Fund (BNO)</h3>
Not nearly <a href="https://www.benzinga.com/analyst-ratings/analyst-color/20/04/15891645/an-oil-etf-for-the-daring">as controversial or slumping</a> as its stablemate the United States Oil Fund (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/uso#NYSE">USO</a>), the United States Brent Oil Fund (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bno#NYSE">BNO</a>) is still down more than 47% year to date.
The Organization of Petroleum Exporting Countries recently said it will extend output cuts and that should provide some runway for upside for BNO, assuming those cuts are realized and demand perks up.

Long Ideas

Penny Stocks

Short Ideas

Specialty ETFs

3 ETFs Getting Absolutely Crushed This Year

A lot can happen between now and November, but let's be honest: It doesn't take fancy models or indicators to figure out what the result of the presidential election would be if held today. President Obama would win going away and it really doesn't matter who the GOP nominates.

Economic data, including the February jobs number, supports that assertion as does a bullish tenor to the equity markets.

Then there's the matter of common sense. In 2008, President Obama garnered 365 electoral votes compared to 173 for Sen. John McCain (R-AZ). As we learned in high school, 270 are needed to win. Where are the 97 needed for a GOP challenger to win going to come from. Even if that challenger flips Florida, Indiana, North Carolina, Ohio and Virginia back to the Republican column, that's 86 electoral votes based on the 2008 map. Still 11 short.

It's all theoretical until November, but there are some ETFs out there that could signal President Obama is in trouble, so keep an eye on these funds over the coming months. They might just forecast the result of this year's election.

United States Gasoline Fund (NYSE: <a class="ticker" href="/stock/uga#NYSE">UGA</a>)
The United States Gasoline Fund tracks NYMEX-traded unleaded gas futures and this fund has already spent much of this flirting with new 52-week highs. Bullish employment data is obviously good, but consumer spending is important as well and that data point could suffer if gas prices keep ascending. If UGA finds it way into the mid or high $60s over the next 90-120 days, that could mean music to the ears of any GOP challenger.

Global X Auto ETF (NYSE: <a class="ticker" href="/stock/vrom#NYSE">VROM</a>)
Obviously related to UGA in more ways than one, there is the Global X Auto ETF (NYSE: <a class="ticker" href="/stock/vrom#NYSE">VROM</a>). Exclusive of the looming election <a href="http://www.benzinga.com/analyst-ratings/analyst-color/12/03/2409099/time-to-consider-auto-etfs-as-sales-rise-f-gm-vrom">there might just be good reasons</a> to give VROM a look.

The ETF has been a solid performer this year, helped by strong sales numbers from Ford (NYSE: <a class="ticker" href="/stock/f#NYSE">F</a>) and General Motors (NYSE: <a class="ticker" href="/stock/gm#NYSE">GM</a>). If VROM keeps moving higher, that's probably a sign folks are feeling good about the economy. If VROM heads back to its October 2011 low below $11, there might be a new resident at 1600 Pennsylvania Ave. 

iShares Dow Jones US Oil Equipment Index Fund (NYSE: <a class="ticker" href="/stock/iez#NYSE">IEZ</a>)
Is it possible that President Obama could win reelection even as the price of the iShares Dow Jones US Oil Equipment Index Fund moves higher? Some would say "No way. Aren't IEZ's constituents going to spend heavily send Obama packing?" 

The answer to that question is almost certainly "yes," here's why a summer surge in IEZ could be good news for the President: IEZ is high beta. As in a beta of 1.51. If investors are pouring money into this ETF, it's not because they're worried about the outcome of the election. It's because risk on is being further validated and maybe because the election won't be all that close. On a related note, also track the PowerShares Dynamic Oil &amp; Gas Services Portfolio (NYSE: <a class="ticker" href="/stock/pxj#NYSE">PXJ</a>).

iShares MSCI Israel Capped Investable Market Index Fund (NYSE: <a class="ticker" href="/stock/eis#NYSE">EIS</a>)
This one is a bit of a stretch for a couple of reasons. First, EIS doesn't have great volume. Second, the ETF is up over 35% since President Obama took office. Still, Obama's relationship with Israeli Prime Minister Binyamin Netanyahu is frayed. He's failed, as have his predecessors, to control Israel's aggression toward its neighbors just as he's failed to control Arab states' aggression against Israel.

Positive price action in EIS later this year could be a sign the market is forecasting an Obama loss and that he will be replaced by someone that is perceived a more voracious supporter of Israel.

Previews

Events

Global

Intraday Update

iShares MSCI Israel Capped Investable Market Index Fund

VROM

These ETFs Could Forecast 2012 Election Results (IEZ, UGA, VROM)

The number of exchange-traded products with $100 million or more in assets under management is on the rise. In January 2011 a combined 304 ETFs and ETNs had crossed that lofty AUM mark. At the end of January 2012, the number had surged to 514, according to data from the ETF Industry Association.

Believe it or not, it is possible for an ETF or ETN with over $100 million <a href="http://www.benzinga.com/markets/bonds/11/09/1940792/five-etfs-with-over-100m-in-aum-flying-under-the-radar">in AUM to go unnoticed</a>. 

Maybe those are the breaks when the ten largest U.S. ETFs by assets combine for over a third of all ETF and ETN assets. We'll leave that to the critics to decide, but we can tell you that while it's possible for a $100 million AUM ETF to live an incognito existence, it's also possible for much larger funds to go unnoticed. Here are few worth considering.

iShares S&amp;P Global Energy Sector Index Fund (NYSE: <a class="ticker" href="/stock/ixc#NYSE">IXC</a>)
We admit to having <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/02/2341173/5-of-2012s-most-disappointing-etfs">mixed emotions about this ETF</a> but the fact of the matter is IXC doesn't grab a lot of attention. The other irrefutable fact is that this ETF had almost $1.2 billion in AUM as of the close of U.S. markets on February 13, according to data on the iShares Web site.

Market Vectors RVE Hard Assets Producers ETF (NYSE: <a class="ticker" href="/stock/hap#NYSE">HAP</a>)
It's interesting that ETFs heavy on the world's largest energy and materials companies go unnoticed, but as is the case with IXC, that's what has happened with HAP. This Market Vectors offering <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/02/2337407/etfs-for-a-prowling-bhp-billiton">has its uses though</a>. Home to almost $185 million in AUM, HAP is an ideal ETF for taking a temperature check on how on risk on really is.

WisdomTree Emerging Markets Equity Income Fund (NYSE: <a class="ticker" href="/stock/dem#NYSE">DEM</a>)
And the winner of the award for largest multi-country emerging markets ETF that no one talks about is...the WisdomTree Emerging Markets Equity Income Fund. This isn't your standard multi-country EM ETF. China is only the tenth-largest country weight. Russia receives a smaller allocation than Argentina and Czech Republic to name two and India is nowhere to be found. All of that is OK with investors because DEM has over $3.1 billion in AUM and is up almost 11% year-to-date.

iShares High Dividend Equity Fund (NYSE: <a class="ticker" href="/stock/hdv#NYSE">HDV</a>)
The iShares High Dividend Equity Fund won't celebrate its first birthday until late March, but this ETF has soared up the AUM charts in short order. This <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/02/2335968/grandpas-2012-etf-portfolio">ultra conservative play</a> has hauled in almost $1.2 billion in AUM since its March 2011 debut.

PowerShares Dynamic Oil &amp; Gas Services Portfolio (NYSE: <a class="ticker" href="/stock/pxj#NYSE">PXJ</a>)
PXJ certainly has some widely known rivals courtesy of iShares and Market Vectors, but the PowerShares offering <a href="http://www.benzinga.com/trading-ideas/long-ideas/11/09/1928009/rating-the-oil-services-etfs">compares favorably with those funds</a>. While those other ETFs may be bigger and more heavily traded, PXJ has almost $170 million in AUM, so this ETF isn't going anywhere anytime soon. A move above horizontal resistance at $22 could put PXJ in rally mode.

Broad U.S. Equity ETFs

New ETFs

Emerging Market ETFs

Technicals

After-Hours Center

Market Vectors RVE Hard Assets Producers ETF

iShares Trust S&P Global Energy Sector Index Fund

ETFs Walking Softly With Big AUM Hauls

With the prospect of Iran's potentially developing missiles that could reach the U.S., the tension in the Middle East related to Iran is suddenly starting to feel ominously close to home. 
	According to <a href="http://www.csmonitor.com/USA/Foreign-Policy/2012/0202/Is-Iran-trying-to-develop-a-missile-that-could-reach-America">an article published Feb. 2 written by the Christian Science Monitor's Howard LaFranchi</a>, "The missile under construction at an Iranian research-and-development facility, which was damaged by a mysterious explosion in November, was a long-range missile prototype with a range of 6,000 miles -- enough to hit the United States, a senior Israeli official said Thursday in a speech to a defense and security forum." With such weaponry in mind, "The West does not yet realize how much of a threat is posed by Iran". 
	Aside from missiles, Iran is beginning to flex its developing technological muscles in other ways. The <a href="http://hosted.ap.org/dynamic/stories/M/ML_IRAN_SATELLITE?SITE=AP&amp;SECTION=HOME&amp;TEMPLATE=DEFAULT&amp;CTIME=2012-02-03-15-09-33">Associated Press'</a> Nasser Karimi reported on Feb. 3 that "Iran successfully launched a new small satellite into orbit...the latest in the country's ambitious space program that has raised concerns in the West because of its possible military applications." Iranian President Mahmoud Ahmadinejad commented that he was "hopeful this act will send a signal of more friendship among all human beings." 
	That being the case, friendship among all human beings seems to be a far fantasy in light of recent comments from Iran, Israel, and the U.S. as to the prospect of a coming war in the Middle East. According to <a href="http://www.bloomberg.com/news/2012-02-02/israel-defense-chief-barak-says-world-understands-need-to-act-against-iran.html">Bloomberg</a>, a recent report from Washington Post columnist David Ignatius suggests that US Defense Secretary Leon Panetta "believes there is a strong likelihood Israel will strike in April, May, or June." Bloomberg: "Panetta and other US officials have repeatedly warned Israel not to act alone." 
	According to a report from Tehran's <a href="http://www.presstv.ir/detail/224457.html">Press TV </a>on Feb. 2, Ahmadinejad is now calling for a "new world order of justice-seeking nations, to replace the existing Western-dominated liberal status quo." From the article: "The Iranian chief executive stated that the world's dominant powers deliberately bully the smaller nations, who are not in conflict with one another, thereby creating artificial problems between them." Per Ahmadinejad's comments, a possible new world order would need to be "all-inclusive" and not "dominated by any particular single nation." What exactly Ahmadinejad's conception of a new world order entails remains uncertain. 
	Even aside from satellites and calling for a new world order, <a href="http://www.breitbart.com/article.php?id=CNG.0dd2431bccd6950e081eb6d881d32b4a.551&amp;show_article=1">Breitbart reported</a> on Saturday that Iranian naval ships are now docked "in the Saudi port city of Jeddah on a mission to project the Islamic republic's 'power on the open seas'." According to the article, an Iranian naval commander said that Iran's "mission aims to show the power of the Islamic republic of Iran on the open seas and to confront Iranophobia." 
	Perhaps one of the most ominous pieces of news to come out of Iran recently was in <a href="http://www.wnd.com/2012/02/iran-warns-world-of-coming-great-event/">a recent article from conservative-leaning WorldNetDaily</a>. According to WorldNetDaily's Reza Kahlili, Iran's supreme leader Ayatolla Khamenei is warning the world "of a coming great event." Khamenei declared, "In light of the realization of the divine promise by almighty God, the Zionists and the Great Satan (America) will soon be defeated." According to the article, Khamenei has declared "the current century as the century of Islam and promised that human history is on the verge of a great event and that soon the world will realize the power of Allah." 
	Whereas harsh words and saber-rattling is not new in the relationship between Israel &amp; the US and Iran, the latest string of comments come as a heightened form of what some may call "<a href="http://presstv.com/detail/225052.html">psychological warfare</a>". That being the case, <a href="http://today.msnbc.msn.com/id/46254827/ns/today-today_people/#.Ty9H4ch_Fkg">MSNBC reported Sunday</a> that Pres. Obama said during a live interview with TODAY's Matt Lauer that diplomacy remains the "preferred solution" in dealing with Iran and "averting a potential arms race in the Middle East." Obama: "I don't think Israel has made a decision. I think they, like us, think Iran has to stand down their nuclear weapons program. Until they do, I think Israel is going to be very concerned, and we are as well." Obama also commented, "We are going to make sure we work in lock step and work to resolve this, hopefully diplomatically." Nevertheless, Obama reiterated that "we're going to do everything we can to prevent Iran from getting a nuclear weapon and creating an arms race, a nuclear arms race, in a volatile region." 
	In terms of trading, the commodity most likely to be influenced by the saber-rattling of the Middle East is, of course, oil. Interestingly enough, even with the intensified salvos of words on both sides, the current price of West Texas Intermediate (<a class="ticker" href="/stock/wti#">WTI</a>) crude oil <a href="http://www.oil-price.net/">remains below $100 per barrel</a>. In fact, through the course of this latest string of so-called "psychological warfare", the price of WTI crude has declined. In comparison, Brent Crude is currently trading at $114.58 per barrel, and has recently risen in price. If the situation in the Middle East becomes increasingly hostile in the coming weeks to the point of <a href="http://articles.boston.com/2012-01-13/news/30624864_1_three-iranian-speedboats-persian-gulf-ship">taunting and intensified military maneuvers</a> risking a violent military encounter, the price of oil could possibly rise in the near future. Either way, it appears unlikely that this ongoing conflict will go away anytime soon, and as the war drums are getting louder, their resonating sound seems to be getting closer and closer to home.

ACTION ITEMS: Bullish: Traders who believe that oil prices will rise in the near future translating into higher gas prices at home owing to uncertainty in the Middle East might want to consider the following trades: 

<ul><li>Check out PowerShares DB Oil Fund ETF (NYSE: <a class="ticker" href="/stock/dbo#NYSE">DBO</a>), PowerShares Dynamic Oil &amp; Gas Service ETF (NYSE: <a class="ticker" href="/stock/pxj#NYSE">PXJ</a>), iPath S&amp;P GSCI Crude Oil Total Return (NYSE: <a class="ticker" href="/stock/oil#NYSE">OIL</a>), and ProShares Ultra DJ-UBS Crude Oil (NYSE: <a class="ticker" href="/stock/uco#NYSE">UCO</a>).</li></ul>

<ul><li>Traders could also check out companies like Chevron Corporation (NYSE: <a class="ticker" href="/stock/cvx#NYSE">CVX</a>) and Exxon Mobil Corporation (NYSE: <a class="ticker" href="/stock/xom#NYSE">XOM</a>).</li></ul>

Bearish: Traders who believe that oil prices will remain stagnant owing to possible diplomatic options in Iran or countervailing actions taken in the Middle East by other oil-producing nations to deal with a possible Iranian crisis may consider alternate positions: 

<ul><li>Traders could choose to simply sit this one out until things stabilize and a direction becomes clear.</li></ul>

<ul><li>Traders looking for a stable commodity to wait out a possible storm in the Middle East can check out gold and silver in the form of ETFs and physical coins &amp; bars.</li></ul>

Neither Benzinga nor its staff recommend that you buy, sell, or hold any security. We do not offer investment advice, personalized or otherwise. Benzinga recommends that you conduct your own due diligence and consult a certified financial professional for personalized advice about your financial situation.

Topics

iPath Dow Jones-Goldman Sachs Crude Oil Fund

Iran So Far Away: War Drums Beating in the Middle East Are Getting Louder

Here is the ETF Professor's ETF Watch List for Friday November 18, 2011.

The PowerShares Dynamic Oil &amp; Gas Services ETF (NYSE: <a class="ticker" href="/stock/pxj#NYSE">PXJ</a>) could be a buy on the dip candidate.

The Direxion Daily Small Cap Bear 3X Shares (NYSE: <a class="ticker" href="/stock/tza#NYSE">TZA</a>) is definitely worth a look.

The PowerShares DB Crude Oil Double Short ETN (NYSE: <a class="ticker" href="/stock/dto#NYSE">DTO</a>) remains trade-worthy.

Emerging markets plays of the day: ProShares UltraShort MSCI Brazil (NYSE: <a class="ticker" href="/stock/bzq#NYSE">BZQ</a>), Direxion Daily China Bear 3X Shares (NYSE: YANG) and the ProShares UltraShort Emerging Markets (NYSE: <a class="ticker" href="/stock/eev#NYSE">EEV</a>).

Forex play of the day: CurrencyShares Swiss Franc Trust (NYSE: <a class="ticker" href="/stock/fxf#NYSE">FXF</a>).

Bond play of the day: Direxion Daily 20+ Year Treasury Bear 3X (NYSE: <a class="ticker" href="/stock/tmv#NYSE">TMV</a>).

Futures

Currency ETFs

Pre-Market Outlook

PowerShares DB Crude Oil Double Short ETN

ProShares UltraShort MSCI Emerging Markets

Direxion Daily 20+ Year Treasury Bear 3X Shares

ETFs to Watch November 18, 2011

When it comes to U.S. shale plays, most investors are familiar with the Bakken, Eagle Ford and Marcellus shales. Maybe you've been keeping up with the shale bonanza and are now familiar with the Utica Shale. 

That quartet is a good shale starting point, but go west young men and women and you will find what might just be America's next billion-barrel oil field. We're talking about the Niobrara Shale, which is found in the Denver-Julesburg Basin in North Colorado South Wyoming, Nebraska, and Kansas.

For now, it appears most of the oil reserves are in Colorado and Wyoming, but that's not what's important. What is important when it comes to the Niobrara Shale is that there is a good chance there's more than a billion barrels of recoverable oil and natural gas there. 

We know that because on Monday, Anadarko Petroleum (NYSE: <a class="ticker" href="/stock/apc#NYSE">APC</a>) said said lands it controls in Colorado's Wattenberg field may hold more than a billion barrels of recoverable crude and natural gas. Wattenberg is in Niobrara.

These are the ETFs you'll want to get acquainted with to play Niobrara.

iShares Dow Jones US Oil &amp; Gas Exploration &amp; Production Index Fund (NYSE: <a class="ticker" href="/stock/ieo#NYSE">IEO</a>):
If you're talking Niobrara, Anadarko has to be in the conversation. With an allocation of almost 9% to Anadarko, no ETF features more exposure to the second-largest U.S. independent oil and gas producer than IEO. Regardless, the chart shows IEO would be a buy above resistance at $65. Plus, the ETF features exposure to several Niobrara players.

First Trust ISE-Revere Natural Gas Index Fund (NYSE: <a class="ticker" href="/stock/fcg#NYSE">FCG</a>):
A frequent guest on our shale lists, FCG merits consideration here as well for this reason: EOG Resources (NYSE: <a class="ticker" href="/stock/eog#NYSE">EOG</a>), Noble Energy (NSYE: NBL), Anadarko, SM Energy (NYSE: <a class="ticker" href="/stock/sm#NYSE">SM</a>), Quicksilver Resources (NYSE: <a class="ticker" href="/stock/kwk#NYSE">KWK</a>) and Chesapeake Energy (NYSE: <a class="ticker" href="/stock/chk#NYSE">CHK</a>) combine to account for about 17% of FCG's weight. The ETF could be a buy above $20.

PowerShares Dynamic Energy Exploration &amp; Production Portfolio (NYSE: <a class="ticker" href="/stock/pxe#NYSE">PXE</a>):
The PowerShares Dynamic Energy Exploration &amp; Production Portfolio is the only ETF that offers any decent exposure to Bill Barrett (NYSE: <a class="ticker" href="/stock/bbg#NYSE">BBG</a>), an unheralded Niobrara play. SM Energy is also found in this ETF's lineup.

PowerShares Dynamic Oil &amp; Gas Services Portfolio (NYSE: <a class="ticker" href="/stock/pxj#NYSE">PXJ</a>):
Anadarko said it believes it can drill 2,700 in Wattenberg. That's just one company. In other words, Niobrara could see thousands of wells drilled there and the companies that call PXJ home are going to benefit from the Niobrara boom. The ETF is a buy above resistance at $22.

Bull case:
Niobrara meets or exceeds production estimates. Oil prices continue rising and natural gas prices catch a bid as well.

Bear case:
It's hard to see a bear case here. The wild card is Uncle Sam or state governments stifling shale production.

First Trust ISE-Revere Natural Gas Index Fund

iShares Dow Jones US Oil & Gas Exploration & Production Index Fund

PowerShares ETF Trust Dynamic Energy Exploration & Production Port

ETFs For The Niobrara Shale 

Oil futures are down today, no surprise given that traders are back to focusing on Europe's sovereign debt woes. That said, crude's recent run has been nothing short of stellar, especially when considering the curve ball thrown at riskier assets by Europe.

Making a list of stocks or ETFs with which to profit from $100 (or higher) oil isn't all that difficult, but investors might do well to take a look at some options beyond the usual fare. After all, there is simply no guarantee to that an ETF like the Energy Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xle#NYSE">XLE</a>) is a lock to run higher just because oil is at $100 a barrel. 

Consider the following ETFs for more obscure, yet potent ways for exploiting oil's new bull run.

SPDR S&amp;P Russia ETF (NYSE: <a class="ticker" href="/stock/rbl#NYSE">RBL</a>):
We recently took a look at the SPDR S&amp;P Russia ETF, calling it “the other Russia ETF.” That it is. There are two other Russia-specific ETFs on the market focusing on Russian large caps. Including RBL, all three are heavy on energy names. However, RBL is REALLY heavy on energy stocks. Nearly 56% of the fund's weight is devoted to the energy sector.

Keep in mind that since Russia isn't an OPEC member, it will keep pumping oil no matter how high the price gets and China will keep buying Russian crude. Oh yeah, Russia is the world's largest oil producer. Looking at the chart, a move above $32 is needed for RBL to be in break out mode.

Global X Norway ETF (NYSE: <a class="ticker" href="/stock/norw#NYSE">NORW</a>):
For those looking to somewhat escape the volatility of an emerging markets oil-producing country, try developed markets play with the Global X Norway ETF. Energy names, led by Statoil (NYSE: <a class="ticker" href="/stock/sto#NYSE">STO</a>), account for over 39% of the ETF's weight. Something to consider: Statoil announced two major discoveries in the Nordic part of the North Sea this summer, indicating that production there isn't dwindling as fast as some had previously expected.

United States 12 Month Oil Fund (NYSE: <a class="ticker" href="/stock/usl#NYSE">USL</a>):
USL holds a larger basket of futures contracts than the U.S. Oil Fund (NYSE: <a class="ticker" href="/stock/uso#NYSE">USO</a>), so this is a more cost-effective way of accessing the oil futures market. USL has moved up in almost straight-line fashion since October, but if it finds support at $43 in a pullback, that will be a very bullish sign.

PowerShares Dynamic Oil &amp; Gas Services Portfolio (NYSE: <a class="ticker" href="/stock/pxj#NYSE">PXJ</a>):
High oil prices encourage more exploration and production. More exploration and production means increased need for oil services. That's good news for companies like National Oilwell Varco (NYSE: <a class="ticker" href="/stock/nov#NYSE">NOV</a>), Baker Hughes (NYSE: <a class="ticker" href="/stock/bhi#NYSE">BHI</a>), Schlumberger (NYSE: <a class="ticker" href="/stock/slb#NYSE">SLB</a>) and Halliburton (NYSE: <a class="ticker" href="/stock/hal#NYSE">HAL</a>). That quartet represents almost 20% of PXK's weight.

Bull case:
Obviously, oil prices need to remain high by historical standards and demand needs to overcome concerns about those high prices.

Bear case:
Major economies like the U.S. and China sour causing slack demand for oil. If oil prices fell by a startling amount, PXJ would be hurt as E&amp;P firms cut back expenditures though is not a likely scenario.

NORW

4 More ETFs For $100 Oil

Even in a tough market environment where oil and oil equities are not looking nearly as racy as they were just a few months ago, it's fair to say oil services ETFs are still great in their own special way. These are among the most volatile sector ETFs out there. So volatile that it's fair to say oil services ETFs can pack all the punch of a leveraged ETF without those high expense ratios.

The oil services ETF is dominated by four funds: The Oil Services HOLDRS (AMEX: <a class="ticker" href="/stock/oih#AMEX">OIH</a>), the PowerShares Dynamic Oil &amp; Gas Services Portfolio (NYSE: <a class="ticker" href="/stock/pxj#NYSE">PXJ</a>), the iShares Dow Jones U.S. Oil &amp; Equipment Services Index Fund (NYSE: <a class="ticker" href="/stock/iez#NYSE">IEZ</a>) and the SPDR S&amp;P Oil &amp; Gas Equipment &amp; Services ETF (NYSE: <a class="ticker" href="/stock/xes#NYSE">XES</a>).

While it would appear that all of these ETFs are carbon copies of each other, in fact, they are not. In that vein, we decided to apply letter grades to these oil services ETFs. We chose to not let overall performance be a deciding factor because PXJ, IEZ and XES have moved in lockstep with each other year-to-date while OIH has performed slightly worse, probably because it is the only one of the quartet that offers double-digit exposure to Transocean (NYSE: <a class="ticker" href="/stock/rig#NYSE">RIG</a>).

Our four criteria, which were applied on an equal-weight basis, were liquidity, fees, diversity of holdings and potential to perhaps break away and outperform the rest of the quartet in a bull market.

Oil Services HOLDRs:
OIH is tricky because the problem is four stocks, Schlumberger (NYSE: <a class="ticker" href="/stock/slb#NYSE">SLB</a>), Halliburton (NYSE: <a class="ticker" href="/stock/hal#NYSE">HAL</a>), Baker Hughes (NYSE: <a class="ticker" href="/stock/bhi#NYSE">BHI</a>) and Transocean account for over 52% of the ETF's weight. That means it would get low scores for diversity, but that is canceled out by superior liquidity. The Transocean exposure has held OIH's performance back, but that could be helpful if that name comes back into style.

What's tricky here is that OIH is going to become a Market Vectors ETF soon and that could mean positive (or negative) changes. Without knowing what the future holds for OIH, it receives a tepid B-

PowerShares Dynamic Oil &amp; Gas Services Portfolio:
It's hard to knock PXJ on the basis of volume because its average daily turnover is decent. It just falls short when compared to its rivals. The ETF's expense ratio is high by the standards of this group, but we like the fund's exposure to Cameron International (NYSE: <a class="ticker" href="/stock/cam#NYSE">CAM</a>) and National Oilwell Varco (NYSE: <a class="ticker" href="/stock/nov#NYSE">NOV</a>). Grade: B+ 

SPDR S&amp;P Oil &amp; Gas Equipment &amp; Services ETF:
XES is home to about 50 stocks and that's nice, though this ETF goes the opposite way of OIH. Where OIH is excessively weighted to just a few names, XES only allocates 2.4% to its largest holding. That means it would be very tough for this fund to outperform its rivals. The 0.35% expense ratio bests IEZ and PXJ. Grade: B

iShares Dow Jones U.S. Oil &amp; Equipment Services Index Fund:
IEZ's top-10 holdings account for nearly 64% of the ETF's weight and Schlumberger gets 18% on its own, so the ETF fails the diversity test. However, since Schlumberger, Halliburton and NOV account for over a third of the ETF's weight, we also think that this is the one of the quartet that could really break away. Not sure why Transocean isn't in here, but hey, those are the breaks. Grade: A

SPDR S&P Oil & Gas Equipment & Services ETF

Rating The Oil Services ETFs

Those that follow the group know that earnings reports that have trickled in thus far from the major oil services players have been good.Very good, actually, and companies like Schlumberger (NYSE: SLB) and Halliburton (NYSE: HAL), the two largest providers of oilfield services in the world, have been pointing to strength in the North American market.

That means shale and shale means fracking. Those sentiments have been echoed in stellar second-quarter reports from Baker Hughes (NYSE: <a class="ticker" href="/stock/bhi#NYSE">BHI</a>) and National Oilwell Varco (NYSE: <a class="ticker" href="/stock/nov#NYSE">NOV</a>), the world's largest provider of oilfield equipment.

The folks at Standard &amp; Poor's Equity Research have taken note of the positive trends surrounding oil services companies, commenting in a note published today that recently announced results show North America remains the brightest spot for Baker Hughes, Halliburton and Schlumberger. S&amp;P has four-star ratings on that trio. (No rating was issued in the note for NOV.)

S&amp;P is also bullish on two oil services ETFs, the iShares Dow Jones US Oil Equipment &amp; Services Index Fund (NYSE: <a class="ticker" href="/stock/iez#NYSE">IEZ</a>) and the PowerShares Dynamic Oil &amp; Gas Services Portfolio (NYSE: <a class="ticker" href="/stock/pxj#NYSE">PXJ</a>). Both ETFs have more than 80% of their assets parked in oil services names, and “given this emphasis, we believe that ETFs such as IEZ and PXJ merit inclusion in the satellite portion of investors' portfolios for those interested in energy exposure,” S&amp;P analyst Stewart Glickman said in the note.

IEZ garners an “overweight” rating from S&amp;P, the firm's highest overall rating. The 46-stock ETF is heavily devoted to its top-10 holdings as those names account for nearly 65% of the ETF's weight. Schlumberger and Halliburton combine for more than 29% of the ETF's weight. 

Still, S&amp;P notes six of the ETF's top-10 holdings are four-star or “buy” rated by the firm and S&amp;P rates IEZ's cost factors “overweight” as well.

As for IEZ, which Benzinga recently highlighted in our “ETF Showdown” segment, S&amp;P gives that ETF a “market weight” rating, but an “overweight” rating based on performance. Home to 30 stocks, PXJ's top-10 holdings account for less than a third of the ETF's total weight with Halliburton, Schlumberger and Baker Hughes combining for just over 15% of the ETF's weight.

Bottom line: S&amp;P sees both ETFs as benefiting from the “growth prospects accruing to Schlumberger, Halliburton and Baker Hughes.”

S&P Endorses A Pair Of Oil Services ETFs

Another fairly eventful week for summertime trading is in the books and there are looming issues heading into the weekend, but that has been par for the course for almost all of 2011. Chief among those issues is the ability of the Obama administration and congressional leaders to make some headway on extending the U.S. debt ceiling, a problem that needs to be dealt with as Standard &amp; Poor's is threatening a downgrade to the U.S. credit rating.

S&amp;P also notes that it could downgrade a broad swath of insurance firms, mortgage issuers and clearinghouses, among other financial institutions. For good measure, eight European banks failed stress tests. Indeed, financials will be in the spotlight next week and with that, here are next week's ETFs To Watch.

iShares MSCI European Financials Index Fund (NYSE: <a class="ticker" href="/stock/eufn#NYSE">EUFN</a>):
Somehow, someway this thinly-traded ETF found its way to small gain on Friday, but in the past month EUFN is down 6.2%. Names like BNP Paribas, Deutsche Bank (NYSE: <a class="ticker" href="/stock/db#NYSE">DB</a>), Banco Santander (NYSE: <a class="ticker" href="/stock/std#NYSE">STD</a>) and UBS (NYSE: <a class="ticker" href="/stock/ubs#NYSE">UBS</a>) are found among EUFN's top-10 holdings, meaning it should be in play for at least a few more days.

Market Vectors Gaming ETF (NYSE: <a class="ticker" href="/stock/bjk#NYSE">BJK</a>):
Flying under the radar, BJK has actually been one of the better performing sector ETFs in recent weeks and the ETF is sporting a strong chart. Wynn Resorts (Nasdaq: <a class="ticker" href="/stock/wynn#Nasdaq">WYNN</a>) reports earnings Monday after the close and that could be an early-week catalyst for BJK.

Financial Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xlf#NYSE">XLF</a>):
Too many banks and brokerages to list here step into the earnings confessional next week and if you're looking for additional financial services ETFs to trade, we suggest the iShares Dow Jones U.S. Broker-Dealers ETF (NYSE: <a class="ticker" href="/stock/iai#NYSE">IAI</a>) and the ProShares UltraShort Financials (NYSE: <a class="ticker" href="/stock/skf#NYSE">SKF</a>).

PowerShares Dynamic Oil &amp; Gas Portfolio (NYSE: <a class="ticker" href="/stock/pxj#NYSE">PXJ</a>):
Across five different earnings reports scattered throughout next week, nearly 21% of PXJ's weight will be talking earnings and outlook. There are also some technicals at play. Keep an eye on resistance at $25.50 and $26.50. If the latter is taken out, PXJ could see the low 30s by year-end.

iShares Silver Trust (NYSE: <a class="ticker" href="/stock/slv#NYSE">SLV</a>):
We don't want to commit to saying that the silver bulls are back, but after this week, it sure feels like. Any good news on the debt ceiling will pressure the dollar and spark more gains in gold and silver. Above $38, SLV looks attractive for a run to $45 or higher.

iShares MSCI Europe Financials Sector Index Fund

EUFN

iShares Dow Jones US Broker Dealers Index Fund

WYNN

A Look Ahead: Next Week's ETFs To Watch

ETF Showdown: The “Other” Oil Services ETFs

Short-term traders love oil services stocks. This high-beta group can pack quite a punch in either direction when oil prices are trending strongly and it should be noted that the likes of Halliburton (NYSE: <a class="ticker" href="/stock/hal#NYSE">HAL</a>) and National Oilwell Varco (NYSE: <a class="ticker" href="/stock/nov#NYSE">NOV</a>) often sharply outperform integrated oil stocks when oil prices are rising.

So there's a lot to like when it comes to oil services stocks, but when it comes to oil services ETFs, one fund dominates the landscape: The Oil Services HOLDRs (AMEX: <a class="ticker" href="/stock/oih#AMEX">OIH</a>). 

That doesn't mean there isn't competition in this space. Indeed there is and we're going to evaluate two of OIH's unheralded competitors in this week's “ETF Showdown.” 

Weighing in with an expense ratio of 0.35% and assets under management of $487.5 million we have the SPDR S&amp;P Oil &amp; Gas Equipment &amp; Services ETF (NYSE: <a class="ticker" href="/stock/xes#NYSE">XES</a>). In the other corner, we have the PowerShares Dynamic Oil &amp; Gas Services Portfolio (NYSE: <a class="ticker" href="/stock/pxj#NYSE">PXJ</a>), which has an expense ratio of 0.63% and AUM of $243.2 million.

Those are two big differences right there. Other noticeable differences include XES being home to 45 stocks while PXJ has just 30 tenants. In the oil services arena, a narrower focus can be an advantage for investors because the larger companies, the Halliburtons, the National Oilwells and the Schlumbergers (NYSE: <a class="ticker" href="/stock/slb#NYSE">SLB</a>) of the world, are what you really want exposure to.

As an example, those three stocks are PXJ's top-three holdings and account for about 15% of the ETF's weight. By comparison, those three don't even combine for 7% of XES's weight. ETFs that don't throw big weights at just a few stocks have their advantages, but in this case, NOV, Halliburton and Schlumberger are up an average of 63% in the past year. That's not the type of performance you want to be light on.

PXJ and XES do share an interesting similarity: Slight, and emphasis on “slight,” exposure to Transocean (NYSE: <a class="ticker" href="/stock/rig#NYSE">RIG</a>), the world's largest provider of offshore drilling services. 

Given that Transocean is the biggest services provider of any type, it is odd that isn't featured in PXJ's lineup and that it gets a weight of just 2% in XES. Yes, Transocean is easily the most controversial of all oil services names, but stocks that become controversial for reasons outside of the market's doing, and the Gulf of Mexico oil spill qualifies, have a tendency to outperform when the controversy evaporates.

Put another way, if you want some Transocean exposure without owning the shares directly, an ETF is the way to go, but neither PXJ or XES are really going to get the job done.

Declaring a winner isn't easy because PXJ and XES have moved in lockstop with each other year-to-date, but that also means the pair has delivered nearly double the returns of OIH. Even with the higher fees, we slightly prefer PXJ given its larger allocations to best-of-breed oil services names.

Comments

Invesco Oil & Gas Services ETF

ニュース

最新ニュース Invesco Oil & Gas Services ETF (ARCA:PXJ)

ニュース

パートナーシップ

ベンジンガ・グローバル