How the US Rig Count Affected SLB, HAL, and BHI in 1Q17



Revenues from North America

In the past year, Schlumberger’s (SLB) North America revenues declined 14%. In 1Q17, SLB’s revenues from North America totaled 28% of its total revenues. In comparison, Halliburton’s (HAL) 1Q17 revenues from North America increased 24% from 1Q16. Baker Hughes’ (BHI) revenues from North America fell 13% in 1Q17 over 1Q16.

HAL’s North America revenue share increased significantly in 1Q17 over 1Q16. HAL generated ~52% of its total revenues from North America in 1Q17. National Oilwell Varco’s (NOV) geographic revenue breakdown is not available. HAL comprises 0.18 of the iShares S&P 500 Value ETF (IVE). The energy sector makes up 11.1% of IVE. 

Please read Market Realist’s Why Baker Hughes Missed 1Q17 Earnings Estimates to see what’s happening with BHI.

Article continues below advertisement

US rig count

On March 31, 2017, the US rig count increased 83% over the previous year. Since July 2016, the US rig count has moved upward. From March 31, 2017, until April 28, 2017, the US rig count trend has strengthened, increasing 6%. A higher rig count can increase OFS companies’ revenues and earnings going forward.

Next, we’ll discuss how the international rig count affected these companies’ revenues from international geographies.


More From Market Realist