The oilfield services industry currently is demonstrating strong fundamentals, above average performance, and solid growth. Most oilfield service companies price-to-book and price-to-sales ratios are at levels not seen in nearly a decade and this trend seems to be growing in segments ranging from contract drilling to seismic services. While this strong performance is well known to most investors, historic trends by themselves are unlikely to help identify superior investment opportunities in oilfield services. Oliver Wyman’s experience suggests that an analysis of business designs and selected market trends can help investors quickly uncover opportunities in oilfield services capable of generating strong returns.
