Boston, MA 01/30/2014 (wallstreetpr) – Suburban Minerals Corp (OTCMKTS:SUBB) earlier known as Lexington Energy Services Inc, is the US based oil equipment and services major which operates through three subsidiaries – Lexcore, Leccoil and Nitro Gen Technologies Inc. SUBB is essentially a leasing and operations facilitator offering coring units, coiled tubing services as well as nitrogen generation units to well site and similar manufacturing, service equipment.
SUBB reported acquiring rights to Diamond Concession in the Republic of Central Africa ‘costing 300million restricted common shares’ priced at $10.00, valued at $160 million.
Three of the rich oil services companies in the country saw a downgrade. Baker Hughes Inc. (NYSE:BHI), Weatherford International Ltd (NYSE:WFT) as well as Cameron International Corporation (NYSE:CAM) saw lowering of price targets along with downward move for Equal Weight to Over Weight by Morgan and Stanley.
Baker Hughes Inc. (NYSE:BHI) the US based oil equipment and technology player with a global footprint, operating in Canada, Latin America, Europe and Asia Pacific has diversified into chemicals, processes and pipeline services as well.
With major operations in Latin America under siege BHI is also likely to see sharp downward movement according to analysts Credit Suisse. Along with Baker Hughes Inc. (NYSE:BHI), others likely to be affected include Halliburton Company (NYSE:HAL) and Weatherford International Ltd (NYSE:WFT) which has higher stakes in the region. According to analysts Morgan and Stanley, BHI is the most unlikely to perform due to low margin threshold and low return costs.
Cameron International Corporation (NYSE:CAM) was one of the big name oil services which saw downslide after Morgan Stanley posted downgrade for the top players.
CAM on the other hand with the revised sector guidance reported in the subsea as well as infrastructure spending will see stability soon. Additionally, Cameron International Corporation (NYSE:CAM) has sold its compression division to General Electric Company (NYSE:GE) in a deal valued at $550 million to cut back on losses, though CAM had seen sales in the region of $355 million in 2012.
Interestingly, hedge fund activist firm JANA Partners has disclosed investing in CAM, without the actual size of the stake, indicating CAM had more potential than the current ‘remediable’ problems.