NEW YORK (TheStreet) -- Shares of Nabors Industries (NBR) - Get Report were gaining 4.9% to $12.23 Wednesday after weekly U.S. crude oil data caused oil prices to rise.

WTI crude oil for September delivery was up 2.42% to $49.14 a barrel Wednesday afternoon, and Brent crude oil for September delivery was up 1.09% to $53.88 a barrel.

The U.S. Energy Information Administration said U.S. crude oil stockpiles fell by 4.2 million barrels to 459.68 million in the week ending July 24. Analysts surveyed by Reuters expected stockpiles to decrease by 184,000 barrels in the week.

Crude imports fell by 396,000 barrel a day, with 2.7 million barrels imported in the week. Gasoline inventories fell by 363,000 barrels in the week, compared to analysts' expectations of an increase of 512,000 barrels.

Nabors Industries owns and operates a land-based drilling rig fleet in North America and provides offshore drilling rig servicing. The company is scheduled to announce its second quarter financial results after the market closes on August 4.

TheStreet Ratings team rates NABORS INDUSTRIES LTD as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:

"We rate NABORS INDUSTRIES LTD (NBR) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its increase in net income, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and a generally disappointing performance in the stock itself."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Energy Equipment & Services industry. The net income increased by 144.0% when compared to the same quarter one year prior, rising from $50.67 million to $123.63 million.
  • The debt-to-equity ratio is somewhat low, currently at 0.77, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.38, which illustrates the ability to avoid short-term cash problems.
  • NABORS INDUSTRIES LTD reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, NABORS INDUSTRIES LTD swung to a loss, reporting -$2.35 versus $0.51 in the prior year. This year, the market expects an improvement in earnings (-$0.22 versus -$2.35).
  • Net operating cash flow has decreased to $307.17 million or 30.90% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Energy Equipment & Services industry and the overall market, NABORS INDUSTRIES LTD's return on equity significantly trails that of both the industry average and the S&P 500.
  • You can view the full analysis from the report here: NBR Ratings Report