U.S. rig count outlook cut by Raymond James on low natural gas prices

NOV

06/02/2023 18:41

** Raymond James trims its 2023 U.S. rig count forecast to
750 from 813 on lower natural gas prices; lowers PT of some of
the oilfield services companies
    ** U.S. natural gas futures  NGc1  fell by 40% in January
    ** Mild winter weather, stronger U.S. production growth and
the continued delays in the restart of Freeport LNG have
resulted in 'meaningful implied hike' to summer-ending U.S.
natural gas storage levels, says Raymond James
    ** "We could see shut-ins later this year as storage
approaches full levels," the brokerage says
    ** "Not expecting the oil markets to fully offset the
weakness in the gas markets" - Raymond James
    ** The brokerage lowers PT of the following companies
 Company name                PT cut
 Halliburton Co  HAL.N       $52 from $53
 NexTier Oilfield Solutions  $17 from $19
 Inc  NEX.N                  
 NOV Inc  NOV.N              $29 from $30
 Patterson-UTI Energy Inc    $24 from $28
  PTEN.O                     
 SLB NV  SLB.N               $64 from $65
 (Reporting by Sourasis Bose in Bengaluru)
 ((Sourasis.bose@thomsonreuters.com))