Pritchard Capital Sees Benefits To Nuts And Bolts Of Oil Industry As Capex Spending Rises (CPX, HAL, WFT, NBR)

Pritchard Capital is out with a research report this morning on the nuts and bolts of the oil industry. It sees benefits to Complete Production Services, Inc. CPX , Halliburton Company HAL , RPC, Inc. RES , and Weatherford International, Ltd. WFT, Nabors Industries, Inc. NBR and Patterson-UTI Energy, Inc. PTEN. On the equipment and fluid handling side, it sees benefits to National Oilwell Varco, Inc NOV, Cameron International, Inc CAM and FMC Technologies, Inc FTI. Pritchard writes in the report, "We see demand above 9 million HHP in 2011. For 2011, assuming frac intensity jumps by 20%, drilling productivity rises by 5%, and holding horizontal rig count flat, we calculate hydraulic horsepower (HHP) demand will increase to 9.2 million to 9.8 million HHP. Thus, we see the market remaining unbalanced until the industry can deploy more than 9 million HHP. We estimate reaching that level of capacity will require industry capex of $3.2 to $3.8 billion over 2010 and 2011, in addition to maintenance capex on the existing industry fleet of over $1 billion annually."