February 28, 2020 - 8:04 AM EST
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1 Company Quietly Taking Over a Key Oil Market

The growth in U.S. oil and natural gas production has upended the world's supply-demand balance, and not in a good way. Oil prices have lingered in a relatively low range that's made it difficult for even the largest energy companies to make money. That has a tap-on effect for oil services companies like Helmerich & Payne (NYSE: HP). However, despite the industrywide weakness, this particular company is worth examining more closely.

Oil and natural gas have always been highly cyclical. As commodities, they are prone to boom-and-bust cycles, with lofty prices leading to overexpansion and low prices squashing companies that took on too much leverage during the salad days. That's especially true in the energy services niche of the industry, a group of companies that provide drills and drilling services, among other things, for the energy sector

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Source: Motley Fool (February 28, 2020 - 8:04 AM EST)

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