Oilfield service and equipment providers that focus on deepwater projects hold much appeal for private equity investors. Oil and gas producers’ investments in these projects are relatively insulated from short-term oil price fluctuations, since they deliver long-tailed payouts when they come on line. But identifying the best candidates for these oilfield service and equipment company investments is hardly straightforward, especially when assessing middle-of-the-pack companies that nevertheless may have potential for strong returns. It’s critical to develop a thorough understanding of the business designs of these companies and thereby determine which are best positioned to deliver superior results.
