The oilfield services and equipment industry: Seven key value drivers
The oilfield services and equipment (OFSE) industry provides equipment and services to oil and gas exploration and production (E&P) companies worldwide. Where there are oil and gas reserves, you’ll typically find drilling, completion, and various other oilfield services associated with extracting that oil and gas.
E&P and OFSE have both endured a bumpy ride in recent years. While commodity prices are the most important variable affecting the profitability of E&P companies and their spending on OFSE, there are a number of other factors that should be considered when evaluating an OFSE company.
Business Valuation Resources (BVR) publication recently developed a special report focusing not only on the OFSE industry but oil, gas and alternative energy across the board. Within this special report, What's it worth: Valuing oil, gas and alternative energy assets, RSM’s Steve Sprenger has authored a chapter focused on the OFSE industry. This chapter identifies several key value drivers for the OFSE industry when considering valuation.