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How Much Will the International Rig Count Affect SPN’s Revenues in 4Q16?

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Nov. 20 2020, Updated 4:51 p.m. ET

Revenue from international operations

In 3Q16, Superior Energy Services’ (SPN) revenue share generated outside the US fell to 25% of its total revenues, as compared to 27% in 2Q16. By comparison, Schlumberger’s (SLB) revenues from its international operations by the end of 3Q16 remained unchanged at 76%. (For more on Schlumberger, check out in Market Realist’s Schlumberger before 4Q16: A Pre-Earnings Analysis.)

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International rig count

From September 2016 to November 2016, the international rig count fell 1%. A lower international rig count could hurt Halliburton’s (HAL) revenues and earnings in 4Q16.

Baker Hughes (BHI), which has entered an agreement with GE (GE) to form a partnership, could benefit from increased international exposure. For more details, check out Market Realist’s Can the BHI–GE Partnership Benefit from Global Growth?.

Notably, SPN makes up 0.01% of iShares Dow Jones US ETF (IYY). The energy sector makes up 7.1% of IYY.

In the next part of this series, we’ll discuss Superior Energy Services’ indebtedness.

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