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.)
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.