Table of Contents
FIGURE 1A: RATINGS, PRICE TARGETS, AND ESTIMATES ..............................4
FIGURE 1B: RATINGS, PRICE TARGETS, AND MULTIPLES ......................5
INVESTMENT THESIS ..................................................................6
Figure 2: ASSETS of MONEY MARKET MUTUAL FUNDS........................8
CYCLE CHARACTERISTICS .............................................................10
COMMODITY PRICES .......................................................15
NORTH AMERICAN ACTIVITY ........................18
LICENSE TO DRILL: USING PERMITS TO GET COMFORT ON NEAR-TERM DRILLING OUTLOOK ..........23
THE WHO, WHAT, AND WHEN OF OFFSHORE 38
SUBSEA EQUIPMENT.......................................41
ONSHORE DRILLING ...............................................................43
VALUATION....................................................................45
SEASONALITY ......................................................45
Initiating ATW at Accumulate and $39 PT .................................48
Initiating BHI at Buy and $55 PT....................................49
Initiating BAS at Buy and $11 PT................................50
Initiating BJS at Neutral and $16 PT................................51
Initiating CAM at Accumulate and $35 PT ...................52
Initiating CLB at Buy and $108 PT ............................................54
Initiating DO at Accumulate and $100 PT..................................55
Initiating ESV at Neutral with $43 PT.............................57
Initiating FTI at Accumulate and $47 PT .............................58
Initiating HAL at Accumulate with $29 PT...............................59
Initiating KEG at Buy and $8 PT...........................................61
Initiating NOV at Neutral and $42 PT.........................................63
Initiating NE at Buy and $48 PT...............................64
Initiating PKD at Buy and $6.50 PT..................................65
Initiating PTEN at Neutral and $14 PT..........................66
Initiating PDE at Neutral and $28 PT...........................................68
Initiating RDC at Neutral and $22 PT .........................................69
Initiating SLB at Accumulate and $71 PT ....................70
Initiating SII at Neutral with $35 PT ...........................71
Initiating RIG at Buy and $110 PT .............................72
Initiating WFT at Buy and $31 PT..........................73
RISK ANALYSIS..............................................................74
SMH CAPITAL DISCLOSURES ..........................................80