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Top 5 OFS Companies by Expected Revenue Growth in 1Q18

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Apr. 5 2018, Updated 8:28 a.m. ET

OFS companies’ expected revenue growth

In this series, we’ll rank and analyze Wall Street analysts’ top five OFS (oilfield equipment and services) companies. The companies are expected to generate the highest revenue growth in 1Q18. Excludes offshore drillers, the list only includes companies in the OFS industry with a market capitalization higher than $100 million.

On average, Wall Street analysts expect the OFS industry’s revenues, excluding offshore drillers, to shrink 1.3% in 1Q18 compared to 4Q17.

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Oil States International, Tenaris, and Nabors

Wall Street analysts expect Oil States International (OIS) to generate the strongest revenue growth in 1Q18—compared to 4Q17. Sell-side analysts expect Oil States International’s revenue to grow 24.2% in 1Q18—compared to the previous quarter. Through Oil States International’s two operating segments, Well Site Services and Offshore/Manufactured Products, it provides specialty products and services to energy companies.

Wall Street analysts expect Tenaris SA (TS) to generate the second-highest revenue growth in 1Q18—compared to 4Q17. During this period, analysts expect the company’s revenue to grow 10.3%. Tenaris provides seamless and welded steel tubular products and related services to the energy industry. The product offerings also have other industrial applications.

Sell-side analysts expect Nabors Industries (NBR) to increase its revenues 6.5% in 1Q18—compared to 4Q17. Nabors Industries is ranked third on our list of the top five OFS companies by revenue growth. Nabors Industries provides drilling and drilling-related services and technologies for onshore and offshore energy companies.

U.S. Silica Holdings and Flotek Industries

U.S. Silica Holdings (SLCA) and Flotek Industries (FTK) are fourth and fifth on our list of OFS companies with the top revenue growth, according to Wall Street analysts. In 1Q18, analysts expect U.S. Silica Holdings’ revenues to improve 2.3%—compared to 4Q17. Flotek Industries’ revenues are expected to increase 1.2% during this period.

U.S. Silica Holdings, through its Oil & Gas Proppants and Industrial & Specialty Products segments, produces and sells commercial silica. Commercial silica is used as a proppant. Proppants are used in the “refracturing” process in the crude oil and natural gas recovery process in the shale plays. Flotek Industries provides chemistry and services to energy companies. Flotek Industries has two operating segments—Energy Chemistry Technologies as well as Consumer and Industrial Chemistry Technologies.

Next, we’ll discuss Oil States International’s quarterly revenue trend. We’ll also discuss why sell-side analysts expect Oil States International to top the revenue growth chart in 1Q18.

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