October 17, 2019 / 6:18 PM / a month ago

CORRECTED-FACTBOX-Oilfield services companies slash 2019 spending by about 20%

 (Corrects values in the last column)
    Oct 17 (Reuters) - Declining oil and gas prices and a sharp drop in North America
drilling activity have forced oilfield services companies to slash their 2019 spending
by about 20%, or $1.7 billion, from a year earlier, a Reuters analysis showed.
    The companies, which provide equipment and services to oil and gas producers, kept
a tight lid on their spending budgets this year as investors pressured their clients
to allocate more cash to dividends and share buybacks, rather than spending to drill
more. 
    The North America rig count RIG-OL-USA-BHI stood at 1,002 as of Oct. 11, 256
fewer than a year earlier, according to a closely-watched report by energy services
firm Baker Hughes Co. Benchmark U.S. oil prices averaged $56.26 a barrel in
September, compared with $65.06 a year earlier, according to the U.S. government data.
 
    This year's decline in oilfield providers' spending is a reversal from last year.
Reuters analysis of capex forecasts by 19 of the top 30 North America oilfield service
companies showed that they spent 15% more in 2018 than 2017.
    Investors and analysts are expected to closely watch for any changes to capital
expenditure numbers for the year and initial indications of 2020 spending plans when
the companies report results in the coming weeks.
    Bellwether Schlumberger NV is set to post third-quarter results on Friday,
while rivals Halliburton and Baker Hughes will report on Oct. 21 and
Oct. 30, respectively.    
    
 RICs    Company                  2019      2018      2017      2019-2018   2018-2017
                                  forecast  reported  reported  percentage  percentage
                                  midpoint  (in mln)  (in mln)  change      change 
                                  (in mln)                                  
 HAL.N   Halliburton                 $1600     $2026     $1373     -21.03%      47.56%
 SLB.N   Schlumberger                $1600     $2160    $2,107     -25.93%       2.52%
 HP.N    Helmerich & Payne^           $490    $466.6    $397.6       5.02%      17.35%
 RIG.N   Transocean                   $440      $184      $497     139.13%     -62.98%
 NBR.N   Nabors                       $400    $458.9    $574.5     -12.84%     -20.12%
 PTEN.O  Patterson-UTI Energy         $400    $641.5    $567.1     -37.65%      13.12%
 NOV.N   National Oilwell Varco*      $350      $244      $192      43.44%      27.08%
 FTI.N   TechnipFMC                   $350    $368.1    $255.7      -4.92%      43.96%
 RES.N   RPC                          $260    $242.6    $117.5       7.17%     106.47%
 CFW.TO  Calfrac Well Services**      $196      $207      $113      -5.31%      83.19%
 LBRT.N  Liberty Oilfield             $175    $258.8    $311.8     -32.38%     -17.00%
 FRAC.N  Keane Group^^                $155    $277.6    $141.3     -44.16%      96.46%
 CJ.N    C&J Energy Services^^        $150    $311.1    $210.2     -51.78%      48.00%
 SLCA.N  US Silica Company            $125    $339.8    $368.5     -63.21%      -7.79%
 CVIA.N  Covia Holdings Corp           $90    $264.1    $108.9     -65.92%     142.52%
 NINE.N  Nine Energy Service           $65     $52.6     $45.2      23.57%      16.37%
 FTSI.N  FTS International           $57.5    $100.5       $64     -42.79%      57.03%
 DNOW.N  NOW Inc                       $20       $11        $4      81.82%     175.00%
 MRC.N   MRC Global                  $17.5       $20       $30     -12.50%     -33.33%
                                                                                      
         TOTAL                      $6,941   $8634.2   $7478.3     -19.61%      15.46%
 
* NOV expects 2019 capex to trend below its $350 million forecast
^ As calculated by Reuters based on Helmerich & Payne's forecast to report capex $5
mln to $15 mln below the lower end of its $500 mln to $530 mln range
** Calfrac numbers converted from C$ to $
^^ C&J Energy Services and Keane Group are in the process of merging

 (Reporting by Taru Jain and Shariq Khan in Bengaluru)
  
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