The sector overall is cheap, but oilfield-services stocks are at decade lows.
We see less value in oil stocks than we did earlier this year.
Given our bearish long-term oil outlook we think investors are more likely to find value in the volume-driven areas of the sector, namely midstream and refining.
Rising U.S. production is likely to stall OPEC efforts to normalize global crude stockpiles.
We're trimming our fair value estimate for the wide-moat company following a cut to our near-term cash flow forecast.
We think the deals are still likely to close, although the probability has decreased.
With the Monsanto-Bayer deal added to the mix, the probability that each of the proposed seed and crop chemical tie-ups will be approved has decreased somewhat.