|
|
|
ONLINE FEATURES
Book Reviews
BW Video
Columnists
Interactive Gallery
Newsletters
Past Covers
Philanthropy
Podcasts
Special Reports
BLOGS
The Auto Beat
Byte of the Apple
Europe Insight
Eye on Asia
Getting In
Investing Insights
The New Entrepreneur
NEXT: Innovation Tools & Trends
On Media
Technology at Work
The Tech Beat
Traveler's Check
TECHNOLOGY
Product Reviews
Tech Stats
Hands On
AUTOS
Home Page
Auto Reviews
Car Care & Safety
INNOVATION
& DESIGN Home Page Architecture Brand Equity Auto Design Game Room SMALLBIZ Smart Answers Success Stories Today's Tip FINANCE Investing: Europe Annual Reports Bloomberg BW50 SCOREBOARDS Hot Growth Companies: 2008 Mutual Funds Info Tech 100 B-SCHOOLS Undergrad Programs Rankings & Profiles |  |
MARCH 26, 2007
"Tremendous" Demand For Superior Energy Services  Superior Energy Services (SPN
) aims to be everything to oil-and-gas explorers in the Gulf of Mexico, and in most cases it is. One specialized service is "well intervention." It repairs and maintains onshore or offshore wells that are old or have been badly damaged by violent weather like Hurricane Katrina. "Superior can't keep up with the tremendous demand for its repair and recovery services, which will provide strong growth through the end of the decade," says Martin Sass, CEO of MDSass, which manages assets of more than $10 billion and owns a 1.2% stake. Superior also buys wells that the major oil companies abandon, resuscitates them, and keeps them in its own oil-and-gas unit. Sales and earnings have risen since 2001 when it earned 30 cents a share. By 2006 earnings had rocketed to $2.32. Its stock, up from 23 last Sept. 25 to 33.23 on Mar. 14, is selling at a 35%-40% discount to its peers, notes Sass. In the Gulf of Mexico, Superior has 56% of the business, but that figure may decline this year as the company pushes expansion elsewhere, including the Middle East, North Sea, and Venezuela, says Sass. Stewart Glickman of Standard & Poor's (MHP
), who rates Superior a "strong buy," sees profits in 2007 rising to $3.42 a share and to $4.13 in 2008.
Note: Unless otherwise noted, neither the sources cited in Inside Wall Street nor their firms hold positions in the stocks under discussion. Similarly, they have no investment banking or other financial relationships with them.  By Gene G. Marcial Get BusinessWeek directly on your desktop with our RSS feeds.  Add BusinessWeek news to your Web site with our headline feed. Click to buy an e-print or reprint of a BusinessWeek or BusinessWeek Online story or video. To subscribe online to BusinessWeek magazine, please click here. Learn more, go to the BusinessWeekOnline home page  | | |
 Copyright 2007, Bloomberg L.P.Terms of Use | Privacy Notice |
Printer-Friendly Version