NexTier Oilfield Solutions
The $635 million in first-quarter revenue that NexTier Oilfield Solutions Inc. (NYSE: NEX) posted was a sequential increase of 24.5%. Completion services accounted for $602.6 million of the total. In its note on the company, Stifel again reiterated its belief “that tight pressure pumping supply/demand will drive frac prices higher.” The analysts continued:
In addition, improved industry dynamics strongly supported by Halliburton’s strong capital discipline, industry consolidation …, and we believe the lack of private equity funding [for] new capacity, should limit new capacity additions.
Stifel reiterated its Buy rating and raised the price target from $12 to $14. At a price of around $11.60, the upside potential based on Stifel’s price target is 20.7%.
ProFrac
ProFrac Holding Corp. (NASDAQ: PFHC) came public through an initial public offering last month. Stifel has initiated coverage on the company with a Buy rating and a price target of $24. The analysts cited a tight oil and gas market, rising well completion activity, “disciplined capital spending” throughout the entire completion sector and rising frack prices as reasons for its optimism.
Stifel also noted the high level of insider ownership (65.7%) and the limited free float (39 million Class A shares and 101 million Class B shares outstanding). Billionaire brothers Dan and Farris Wilks own almost 71% of the outstanding Class A shares and 96.4% of the outstanding Class B shares.
The stock has traded at around $14 a share recently, implying an upside of 71.4% to Stifel’s price target.
ProPetro
For its first quarter, ProPetro Holding Corp. (NYSE: PUMP) reported revenue of $282.7 million. That was a year-over-year increase of 75% and a sequential increase of 14.9%. Stifel’s analysts commented:
While supply chain challenges and elevated input costs remain a headwind, we believe strong demand and higher prices will help drive profitability higher in 2022-23. PUMP’s strong execution in the field should also underpin increased profitability.
The stock has a Buy rating. In May, Stifel raised the $16 price target to $19, implying an upside of 36.7% based on a recent price of $13.90 a share.
Originally posted at 24/7 Wall St.
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