Tuesday's ETF with Unusual Volume: PXJ
ETF Performance Overview: On Tuesday, the Invesco Oil & Gas Services ETF saw significant trading volume with Schlumberger and Halliburton experiencing slight declines, while Profrac Holding gained 3.2% and Kodiak Gas Services dropped 9.1%.
Market Commentary: The opinions expressed in the article are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
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Analyst Views on PXJ
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Best Performing Oil and Gas Refining and Marketing Stocks Year-to-Date
Rising Oil Prices: Tensions between the U.S. and Venezuela have led to an increase in oil prices, with U.S. crude oil futures rising over 1.5% to above $56/bbl following President Trump's sanctions against Venezuelan oil tankers.
Energy Sector Performance: The energy sector has seen a nearly 2% increase on Wednesday and a 4.3% rise year-to-date, with Neste being the top-performing oil and gas refining company, up over 80% this year.
Top Performing Companies: Notable year-to-date performances in the oil and gas refining sector include Neste Oyj (83.08%), CVR Energy (59.28%), and HF Sinclair (35.86%), among others.
Market Outlook: Analysts suggest that both crude oil and energy stocks are expected to continue rising, while the basic materials sector is projected to outperform in 2026, indicating a mixed outlook for the energy market.
JPMorgan Cuts ProFrac's Earnings Forecast On Lower Reinvestment And Industry Attrition
Analyst Rating and Financial Performance: JP Morgan analyst Arun Jayaram maintained an Underweight rating on ProFrac Holding Corp. (ACDC) with a price target of $7, following the company's fourth-quarter sales of $454.7 million, which fell short of expectations, and a net loss of $105 million compared to a loss of $45.2 million in the previous year.
Future Projections: The analyst expects improvements in profitability as fleet utilization increases, although at a slower pace, and has revised the 2025-26 EBITDA forecasts down to $472 million and $588 million, respectively, while anticipating free cash flow generation of $78 million and $184 million for those years.
Halliburton Analysts Trim Forecasts After Softer 2025 Guidance
Analyst Revisions: Following Halliburton's mixed fourth-quarter results and weak guidance, several analysts lowered their price targets, with Stifel reducing it from $42 to $37 and Goldman Sachs from $36 to $34, while maintaining Buy ratings. Analysts noted challenges such as international revenue headwinds and pricing concessions affecting margins.
Long-term Outlook: Despite the short-term challenges, analysts remain optimistic about Halliburton's long-term growth potential due to its strong product portfolio, service quality, technology focus, and robust free cash flow, which is expected to support shareholder returns.
Golar LNG Expands FLNG Hilli Stake, Eyes Long-Term Argentina Deal
Golar LNG Acquisition: Golar LNG Limited has acquired minority stakes in the FLNG Hilli from Seatrium and Black & Veatch for $90.2 million, increasing its ownership to approximately 8% of the full FLNG capacity, effective January 1, 2025.
Operational Highlights: The FLNG Hilli, which has been operational since 2018, has delivered 124 LNG cargoes and is contracted to Perenco in Cameroon until July 2026, with plans to relocate to Argentina under a 20-year agreement contingent on various conditions.
Invesco Dynamic Oil & Gas Services ETF declares quarterly distribution of $0.2120
Dividend Announcement: Invesco Dynamic Oil & Gas Services ETF (PXJ) will pay a dividend of $0.2120 on December 27, with shareholders of record as of December 23 and an ex-dividend date also on December 23.
Rating Information: Seeking Alpha provides a Quant Rating and a dividend scorecard for the Invesco Dynamic Oil & Gas Services ETF.
Weatherford Downgraded As Analyst Sees Limited Returns Despite Deleveraging Efforts
Analyst Downgrade: Goldman Sachs analyst Ati Modak downgraded Weatherford International plc (WFRD) to Neutral, lowering the target price from $132 to $98 due to less compelling international exposure in the current environment, despite WFRD's solid execution and growth potential from innovations like Managed Pressure Drilling.
Earnings and Shareholder Returns: The analyst projects a total return potential of 4% for WFRD over the next year, with expectations of debt reduction adding value per share; however, EBITDA estimates for 2025/2026 have been lowered by 3%-8%, reflecting adjusted activity expectations.
Best Performing Oil and Gas Refining and Marketing Stocks Year-to-Date
Rising Oil Prices: Tensions between the U.S. and Venezuela have led to an increase in oil prices, with U.S. crude oil futures rising over 1.5% to above $56/bbl following President Trump's sanctions against Venezuelan oil tankers.
Energy Sector Performance: The energy sector has seen a nearly 2% increase on Wednesday and a 4.3% rise year-to-date, with Neste being the top-performing oil and gas refining company, up over 80% this year.
Top Performing Companies: Notable year-to-date performances in the oil and gas refining sector include Neste Oyj (83.08%), CVR Energy (59.28%), and HF Sinclair (35.86%), among others.
Market Outlook: Analysts suggest that both crude oil and energy stocks are expected to continue rising, while the basic materials sector is projected to outperform in 2026, indicating a mixed outlook for the energy market.
JPMorgan Cuts ProFrac's Earnings Forecast On Lower Reinvestment And Industry Attrition
Analyst Rating and Financial Performance: JP Morgan analyst Arun Jayaram maintained an Underweight rating on ProFrac Holding Corp. (ACDC) with a price target of $7, following the company's fourth-quarter sales of $454.7 million, which fell short of expectations, and a net loss of $105 million compared to a loss of $45.2 million in the previous year.
Future Projections: The analyst expects improvements in profitability as fleet utilization increases, although at a slower pace, and has revised the 2025-26 EBITDA forecasts down to $472 million and $588 million, respectively, while anticipating free cash flow generation of $78 million and $184 million for those years.
Halliburton Analysts Trim Forecasts After Softer 2025 Guidance
Analyst Revisions: Following Halliburton's mixed fourth-quarter results and weak guidance, several analysts lowered their price targets, with Stifel reducing it from $42 to $37 and Goldman Sachs from $36 to $34, while maintaining Buy ratings. Analysts noted challenges such as international revenue headwinds and pricing concessions affecting margins.
Long-term Outlook: Despite the short-term challenges, analysts remain optimistic about Halliburton's long-term growth potential due to its strong product portfolio, service quality, technology focus, and robust free cash flow, which is expected to support shareholder returns.
Golar LNG Expands FLNG Hilli Stake, Eyes Long-Term Argentina Deal
Golar LNG Acquisition: Golar LNG Limited has acquired minority stakes in the FLNG Hilli from Seatrium and Black & Veatch for $90.2 million, increasing its ownership to approximately 8% of the full FLNG capacity, effective January 1, 2025.
Operational Highlights: The FLNG Hilli, which has been operational since 2018, has delivered 124 LNG cargoes and is contracted to Perenco in Cameroon until July 2026, with plans to relocate to Argentina under a 20-year agreement contingent on various conditions.
Invesco Dynamic Oil & Gas Services ETF declares quarterly distribution of $0.2120
Dividend Announcement: Invesco Dynamic Oil & Gas Services ETF (PXJ) will pay a dividend of $0.2120 on December 27, with shareholders of record as of December 23 and an ex-dividend date also on December 23.
Rating Information: Seeking Alpha provides a Quant Rating and a dividend scorecard for the Invesco Dynamic Oil & Gas Services ETF.
Weatherford Downgraded As Analyst Sees Limited Returns Despite Deleveraging Efforts
Analyst Downgrade: Goldman Sachs analyst Ati Modak downgraded Weatherford International plc (WFRD) to Neutral, lowering the target price from $132 to $98 due to less compelling international exposure in the current environment, despite WFRD's solid execution and growth potential from innovations like Managed Pressure Drilling.
Earnings and Shareholder Returns: The analyst projects a total return potential of 4% for WFRD over the next year, with expectations of debt reduction adding value per share; however, EBITDA estimates for 2025/2026 have been lowered by 3%-8%, reflecting adjusted activity expectations.
