BJ Services CompanyBJS

Morningstar Rating

Stock Research and Analysis

by Stephen Ellis

Frozen capital markets and lower commodity prices have caused customers to slash near-term services spending in the United States, which will curb BJ Services' growth prospects during the next few years. Over the long term the company's prospects look Read more

Bulls Say

The company has staked out a strong position in the deep-water segment, an area where we expect considerable growth during the next few years.

The firm has invested in backup capabilities that allow it to bring more machines on site to resolve problems. This allows BJ Services to provide a higher level of service to clients that small independents cannot match.

The firm enjoys strong competitive advantages in key product segments such as fluids, slurry, and coiled tubing because of patent protection. Read more

Bears Say

BJ Services derives the majority of its revenue from the volatile North American market and has limited exposure to the faster-growing international market, compared with Schlumberger and Halliburton.

Weak pressure-pumping demand and pricing in Canada should be a drag on BJ Services' results deep into 2010.

BJ Services derives 2-3 times more revenue from natural gas wells than oil wells. A significant and sustained decline in natural gas prices could hurt the firm's operations. Read more

Strategy

BJ Services focuses on core competencies and builds on a strong service record. The firm has patented key innovations in the fluids, coiled tubing, and slurry fields, which give it a technical edge over Read more

Management

We think BJ Services' corporate governance can be improved. J.W. Stewart is president, CEO, and chairman of the board. He has led BJ Services as CEO since 1990 and has generally allocated capital very effectively over his tenure, consistently delivering Read more

Profile

BJ Services is a leading provider of pressure-pumping and other oil field services. The company's pressure-pumping services include well stimulation, coiled tubing, cementing, Read more

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