OTCPK:STVMF - Post by User
Post by
quantguyon Dec 05, 2011 9:58am
184 Views
Post# 19291657
National Bank research...
National Bank research...Our continued scan of E&P capital budgets is guiding now towards an ~15% y/y increase in spending with about a third of Canadian capex budgets (in total dollar terms) having released; this is roughly in line with the 17% y/y increase seen a month ago when just under a quarter had released. Despite the increase, service stocks continue to discount a decrease in spending y/y. Our review of historic trading patterns does suggest that service stock price reactions lag both hydrocarbon prices and capex budgets, implying a buying opportunity should investors view >$85 WTI as sustainable beyond the winter drilling season.