North American revenue
In the past year, Schlumberger’s (SLB) share of North American revenue has fallen 21%, the most among our set of oilfield equipment and services (or OFS) companies.
In 4Q16, SLB’s North American revenue fell to 25% of its total revenue, compared to 29% in 4Q15. Halliburton’s (HAL) 4Q16 North American revenue fell 16% compared to a year ago. Baker Hughes’s (BHI) North American revenue fell 19% in 4Q16 over 4Q15.
Despite a fall in its revenue, BHI’s North American revenue rose significantly in 4Q16 compared to 4Q15. National Oilwell Varco’s (NOV) geographic revenue breakup isn’t available.
BHI makes up 0.16% of the iShares S&P 500 Value ETF (IVE). The energy sector makes up 11.7% of IVE. Read Market Realist’s Why Did Baker Hughes Miss 4Q16 Earnings Estimates? to learn about what’s happening to BHI.
US rig count
By December 31, 2016, the US rig count had fallen 6% compared to a year ago. Since July 2016, the US rig count has moved upward. From December 31, 2016, to February 10, 2017, the US rig count trend strengthened, rising 13%. A higher rig count could increase OFS companies’ revenues and earnings going forward.
Next, let’s discuss how a change in the international rig count affected these companies’ international revenues.