Preston Caldwell

It’s proved it can generate shareholder value in even dismal oil market conditions.

It has generally bested all its oilfield services peers in returning cash to shareholders.

The average U.S. tariff rate on China is set to surge.

Our long-term industry assumptions have grown more pessimistic.

Are China and the U.S. headed for a new cold war?

Higher financial leverage and low pricing on recent asset sales drove our reassessment.

The changes are due chiefly to our revised U.S. land drilling forecasts.

We've reduced our long-term pricing forecasts.

The combined company--which is a true merger of equals--will have a total market enterprise value nearly on par with industry leader Transocean.

The high-spec nature of its fleet won't insulate the offshore driller from the woes afflicting the broader rig market.

Halliburton looks especially overvalued.

But we think the lowest-cost frac sand provider is attractively valued.

The boost reflects our reconsideration of the North American frac sand market.