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US Rig Count Impacted SLB, HAL, and NOV in 2017

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Schlumberger’s revenues

Schlumberger (SLB), Halliburton (HAL), and National Oilwell Varco (NOV) are three of the four OFS (oilfield equipment and services) companies that we’re discussing in this series. They saw higher revenues from North America in 2017—compared to 2016. Baker Hughes’s, a GE company’s (BHGE), geographic revenue breakup isn’t available.

Schlumberger’s North America revenues increased 42% in 2017—compared to 2016. In 2017, Schlumberger’s revenues from North America accounted for 32% of its total revenues.

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Halliburton and National Oilwell Varco

Halliburton’s 2017 revenues from North America increased 71% from a year ago. Halliburton’s North America revenue share increased in 2017—compared to 2016. Halliburton generated ~56% of its total revenues from North America in 2017.

National Oilwell Varco’s 2017 revenues from North America increased 40% from a year ago. National Oilwell Varco generated ~56% of its total revenues from North America in 2017—compared to 43% in 2016. National Oilwell Varco accounts for 0.13% of the iShares S&P 500 Value ETF (IVE). IVE increased 6% in the past year—compared to National Oilwell Varco’s 9% decline during the same period.

US rig count

By the week ending December 29, 2017, the US rig count increased 41%—compared to 2016. From December 29, 2017, to the week ending March 2, 2018, the US rig has increased 5.6%. A higher rig count could boost OFS companies’ revenues and earnings.

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

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