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Will US Rig Count Affect Schlumberger in 4Q16?

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Nov. 20 2020, Updated 11:42 a.m. ET

US rig count

From September 30, 2016, through December 30, 2016, the US rig count rose ~26.0% to close at 658. A higher US rig count could increase Schlumberger’s (SLB) revenues and earnings in 4Q16.

The price of crude oil has recovered 11.0% since September 30, 2016. Higher crude oil prices have driven a higher US rig count. You can read the latest on crude oil prices and energy stocks in Market Realist’s Energy Stocks: Quantitative Insights for the New Year.

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Revenue by geography

In 3Q16, Schlumberger’s revenue share from North America fell to 24.0% compared to 29.0% in 3Q15. During the same period, the company’s aggregate revenues fell 17.0%.

By comparison, Flotek Industries’ (FTK) 3Q16 revenues fell 16.0% from 3Q15. National Oilwell Varco’s (NOV) revenues fell 50.0%, and Superior Energy Services’ (SPN) revenues fell 46.0% for the same period.

SLB makes up only 0.50% of the iShares Russell 3000 (IWV). The energy sector makes up ~7.0% of IWV.

In the next part, we’ll look at SLB’s revenues from international operations and the international rig count.

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