In its monthly release, oilfield services provider, Baker Hughes Inc.'s (BHI) worldwide Rotary Rig Count for Dec 2013 was 3,478, up 26 from 3,452 in Nov 2013, and up 88 from 3,390 in Dec 2012.
The Baker Hughes Rotary Rig Counts gives the number of drilling rigs actively exploring for or developing oil or natural gas in the U.S., Canada and international markets. The Baker Hughes’ rotary rig counts, issued since 1944, acts as an important yardstick for drilling contractors like Helmerich & Payne, Inc. (HP), Patterson-UTI Energy Inc. (PTEN) and Pioneer Energy Services Corp. (PES) in gauging the overall business environment of the oil and gas industry. Baker Hughes initiated the monthly international rig count in 1975.
Analysis of Monthly Data
International: Internationally, rigs engaged in exploration and production totaled 1,335 in Dec 2013. This was up 24 from 1,311 counted in Nov 2013, and up 82 from 1,253 counted in Dec 2012. The international offshore rig count for Dec 2013 was 306, down 10 from the 316 counted in Nov 2013, and up 7 from the 299 counted in Dec 2012.
North America: North American rigs engaged in exploration and production totaled 2,143 in Dec 2013. This was up 2 from 2,141 counted in Nov 2013, and up 6 from 2,137 counted in Dec 2012. Rigs engaged in land operations fell by 2 to 2,080 from 2,082 in Nov 2013 and decreased by 5 from 2,085 in Dec 2012. The North American offshore rig count for Dec 2013 was 63, up by 4 from 59 counted in Nov 2013 and up 11 from 52 counted in Dec 2012.
The average U.S. rig count for Dec 2013 was 1,771, up 15 from 1,756 counted in Nov 2013, and down 13 from 1,784 counted in Dec 2012. The average Canadian rig count for Dec 2013 was 372, down 13 from 385 counted in Nov 2013, and up 19 from 353 counted in Dec 2012.
Zacks Rank
As of now both Pioneer Energy Services and Helmerich & Payne hold Zacks Rank #1 (Strong Buy), implying that these are expected to perform above the broader U.S. equity market over the next one to three months. On the other hand, both Baker Hughes and Patterson-UTI Energy currently hold a Zacks Rank #3 (Hold), implying that these are expected to perform in line with the broader U.S. equity market over the same time frame.
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