Oilfield Services & Equipment covers drilling, completions, offshore rigs and vessels, and the equipment used to find and produce oil and gas. MoatScope covers 62 companies here. None has a wide moat; 13 have a narrow moat and 49 none.
How the industry makes money
Service companies earn from producers' drilling and completion budgets, and offshore drillers earn day rates for their rigs. Their revenue therefore follows producers' spending, which follows oil and gas prices.
Where the moats are
Switching costs appear in 12 of the 13 moat-rated companies, where integrated technology and services are woven into customers' operations, and intangible assets in eight.
The narrow-moat group includes SLB, Baker Hughes, TechnipFMC, Halliburton, NOV, Noble and Solaris Energy Infrastructure. Companies without a moat include Tenaris, Transocean and Weatherford.
What wears moats down
When producers cut spending, pricing power disappears quickly, and consolidation among producers gives the largest customers more bargaining power.
What to watch
- Producers' capital budgets.
- Rig counts and offshore day rates.
- International and offshore project activity.
Moat ratings and quality scores on this page update as companies report. Price versus fair value for every company in the industry is in the screener.