Cameron International follow-up
- Cameron International (CAM) was acquired this morning by Schlumberger (SLB,) the largest oil and gas equipment services company in the world (as we posted at 06:00am ET), as the slump in oil prices continues.
- Cameron is one of the larger oil and gas equipment service cos in the world and this deal comes after news of the second and third largest players in this space announcing they will combine (Halliburton (HAL) buying Baker Hughes (BHI))
- Another recent deal was Energy Transfer Equity (ETE) offering to buy Williams Cos (WMB). Investors should keep an eye on peers of CAM given continued industry consolidation.
- This list includes: SLB, HAL, BHI, WFT, NOV, TESO, ENSV, RCON, SPN, DWSN, RES, FTK, TS, SYRG, NGS, GLF, FET, WFT, OIS, EXLP, GIFI, CRR, EMES, HCLP, FMSA, SLCA, HLX, CLB, EXH, DRQ, PDS, HOS, TTI, FTI, NR, FES, BAS, ZN, WG
- In this space, one of the things that matters the most is the movement and size of the oil rig count
- This isn't a huge trend, but after dropping 61% between the week of Oct 10, 2014 and June 26, 2015, followed by a few weeks of a choppy trend, the oil rig count has climbed for five consecutive weeks, rising from 638 to 674 oil rigs. Not a huge move, but one that investors will keep watching.