QUOTE AND NEWS
TheStreet.com  Jul 26  Comment 
By Juliette Fairley NEW YORK (MainStreet) -- Celebrities like Paris Hilton and Orlando Bloom in the film Bling Ring aren't the only ones experiencing home invasions and burglaries. Read: Sexy Lingerie Battles for Market The number of...
MarketWatch  Apr 28  Comment 
Crude-oil prices riseand investors react to earnings updates from Royal Dutch Shell, Hess Corp. and others.
MarketWatch  Apr 27  Comment 
Among the companies whose shares are expected to see active trade in Wednesday's session are Comcast, AOL, Sprint Nextel, and Visa.
MarketWatch  Apr 27  Comment 
The Department of Justice said Tuesday it reached a settlement to allow Baker Hughes to buy BJ Services , a $7 billion market cap oil services firm. Regulators will require Baker Hughes and BJ Services to divest two specially equipped vessels...
Market Intelligence Center  Apr 20  Comment 
BJ Services (BJS) appears to be trading at a higher than usual volume today and is now at $22.74, up $1.04 (4.79%) on volume of 6,308,886 shares traded. For the last 30 days BJS has traded 4,064,887 shares on average each day. So far today's...
Market Intelligence Center  Apr 15  Comment 
BJ Services (NYSE: BJS) closed yesterday at $22.39. So far the stock has hit a 52-week low of $10.94 and 52-week high of $23.56. BJ Services stock has been showing support around 21.52 and resistance in the 22.84 range. Technical indicators for...
Wall Street Journal  Apr 12  Comment 
Boots & Coots's stock rose after Halliburton said late Friday it would buy the company in a $232 million deal.
Forbes  Mar 19  Comment 
Prices dip on concerns over emerging market growth, euro weakness. Energy stocks bear the brunt.
MarketWatch  Mar 19  Comment 
Energy stocks drop as crude-oil prices fall on a stronger dollar while Baker Hughes and BJ Services delay shareholder meetings on their merger.
MarketWatch  Mar 19  Comment 
Genzyme, Palm, A.P. Pharma, Lloyds are among companies making notable moves in Friday's stock market.




 

BJ Services Company (NYSE: BJS) provides pressure pumping and other oilfield services to oil and natural gas exploration and production (E&P) companies. BJS makes chemicals and special tools, used to find and extract oil and natural gas. BJS' services include maintaining and repairing customers' wells and using special techniques to boost well output.

Higher oil and natural gas prices lead to more drilling, since E&P companies can drill in areas previously considered too expensive. With crude oil and natural gas prices up 69% and 20%, respectively, in the second quarter of fiscal 2008,[1] drilling activity has increased to ten-year highs in the U.S. and internationally.[2] In both domestic and international markets, BJS competes directly with larger rivals Schlumberger N.V. (SLB) and Halliburton Company (HAL) in pressure pumping and oilfield services.

Business Overview

Business & Financial Metrics[3]

In 2009, BJS generated a net income of $149.9 million on revenues of $4.12 billion. This represents a 75.4% drop in net income and a 23.1% decrease in total revenues from 2008, when the company earned $609.4 million on $5.36 billion in revenues.

Business Segments[4]

BJ Services is organized into two major divisions:

Pressure Pumping (79% of revenue)

This segment's services include cementing (to support the physical structure of oil wells) and stimulation services such as fracturing and acidizing, which help make it easier for oil to flow through the well during pumping.[5] The Pressure Pumping division's clients include both onshore and offshore oil exploration and production (E&P) companies.

Oilfield Services (21% of revenue)

This division produces chemicals and special tools used by E&P companies. It also provides diagnostic tests and maintenance services for companies' oilfields.[6]

IMAGE:BJS-Segments2009.jpg[4]

Trends and Forces

Demand for natural gas from shale beds on the rise

Natural gas reserves located in shale beds have largely been ignored in the past due to the high costs and difficulty of drilling through shale. With the rising price of natural gas, however, these shale reserves have become increasingly viable alternatives. In response to this trend, BJS has developed new technology for fracturing shale wells and improving production. In the Barnett Shale of North Texas, BJS has applied a new technique called simo fracs, in which multiple wells are fractured simultaneously.[7] Additionally, BJS has developed a coiled tubing fracturing system called OptiFrac that boosts natural gas production in multi-zone reservoirs.[8] These technologies have already been implemented in shale reserves in Louisiana and Texas.

Wal-mart is definitely good as plseaing the customer. Even if it does cater to people looking for cheap organic or local food, it's important to consider the fact that (aside from being run by Satan himself) Wal-mart can only have such cheap prices because it places the costs on other people. The Way We Eat: Why Our Food Choices Matter written by Peter Singer and Jim Mason, has a whole chapter on Wal-mart and this very question, here's an excerpt: The positive value of a store with low prices can, however, turn negative if the low prices are achieved by passing costs onto others. In 2004, Wal-Mart's spokesperson Mona Williams told Forbes' that a full-time store employee takes home around $18,000 annually. Some think that this estimate is generous, but assuming that it is accurate, it still means that if they employee is the only income earner in a family of four, the family is living below the poverty line. (pg. 77)Most employees that work there are allowed benefits (the figure is $2,000 in public welfare for the average non-salaried Wal-Mart associate in California). So, the point is, if you're not paying the high costs of food, you're paying the taxes that support the Wal-Mart employees that Wal-Mart won't take care of in the interest of saving money.

Competition

Pressure Pumping

Other, smaller firms are also direct competitors to BJS's pressure pumping division:[9]

Oilfield Services

In the pipeline services business, BJS competes with:[11]

References

  1. BJS Q2 2008 pg. 19
  2. Douglas Westwood:The World Offshore Drilling Spend Forecast 2008-2012
  3. BJS 2009 10-K pg. 22  
  4. 4.0 4.1 BJS 2009 10-K pg. 3  
  5. BJ Services 2007 10-K pg. 5
  6. BJ Services 2007 10-K pg. 6
  7. BJ Services 2007 Annual Report pg. 4
  8. BJ Services 2007 Annual Report pg. 9
  9. BJ Services 2007 10-K pg. 9-10
  10. BJ Services 2007 10-K pg. 9-10
  11. BJ Services 2007 10-K pg. 9-10
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