Stock Focus: Nabors (NBR)
Posted on May 8, 2008 in the Stocks category
.While the price of oil has skyrocketed over the last year, natural gas has not seen such a dramatic growth. That means that there are still opportunities for investors looking to get into energy stocks. One such stock is Nabors (NBR)
Nabors Industries, Ltd. is the largest U.S. land drilling contractor. It conducts oil, gas, and geothermal land drilling operations in the United States, Alaska, Canada, South America, Mexico, the Caribbean, the Middle East, the Far East, Russia, and Africa. As of December 31, 2007, its fleet of rigs consisted of approximately 535 land drilling rigs, approximately 564 domestic and 173 international land workover and well-servicing rigs, 35 offshore platform rigs, 12 jack-up units, and 4 barge rigs, as well as various trucks and fluid hauling vehicles.
Nabors is expected to earn $3.15 this year and nearly $4 next year. Those estimates could be on the conservative side for one simple reason. Every energy company in the U.S. has a new natural gas play in either Pennsylvania or Wyoming.
The combination of drilling technology improvements and high gas prices is going to lead to a significant increase in drilling over the next two to three years. Some analysts think that Nabors could potentially earn $8 a share in profits in 2010 or 2011. With those sorts of earnings numbers, Nabors could be a $60 stock.
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