--- title: "Drilling & Offshore Services Industry" description: "12 SEC filers are classified under the Standard Industrial Classification codes that describe the drilling & offshore services industry." canonical: https://www.getswoopr.com/stocks/industries/energy/drilling-and-offshore-services/ source: "Swoopr Investment: https://www.getswoopr.com" --- # Drilling & Offshore Services Industry ## Direct Answer 12 SEC filers are classified under the Standard Industrial Classification codes that describe the drilling & offshore services industry, and their latest annual reports show $68.5 billion of combined revenue and a median operating margin of 2.8%. Investors should still evaluate its revenue model, industry-specific KPIs, valuation framework and the risks that can change the group's economics. ## Industry Overview Drilling and offshore service companies rent rigs, vessels and crews to oil and gas producers and provide the services that sustain offshore fields. Revenue is the product of the number of working rigs and vessels and the day rates they earn. The first numbers to compare across companies here are fleet utilization, average day rate and contract backlog. ## Key Industry Metrics - **Fleet utilization**: Share of rigs and vessels working under contract. Rising utilization points to tighter supply and usually precedes rate increases; stacked assets still carry cost. - **Average day rate**: Daily revenue earned per working rig or vessel. Rates follow oil company project approvals and tend to move after utilization, with contracts repricing gradually. - **Contract backlog**: Contracted revenue not yet earned. It shows how much income is already booked; compare backlog rates with current market rates to judge repricing. - **Operating cost per rig or vessel**: Daily crew, maintenance and supply cost per working unit. Fixed cost is large, so changes in cost affect margins as much as rate moves do. - **Net debt**: Borrowings less cash. Heavy fixed assets and cyclical rates mean high net debt can force dilution or restructuring in a downturn; compare it with operating cash flow. ## Primary Macro Drivers - **Oil price and offshore project approvals**: Higher oil prices make offshore fields worth approving, which raises demand for rigs and vessels and lifts utilization and day rate. - **Producer capital budgets**: Oil company spending plans set the number of rigs and vessels hired, so budget increases add to contract backlog and fleet utilization. - **Rig and vessel supply**: Retirements and newbuilds decide how many units compete for work, so tight supply supports day rates and surplus pushes them down. - **Deepwater discoveries**: New finds create wells and facilities to be drilled and serviced, which lengthens backlog for rigs and support vessels. ## Major Risks - **Boom and bust day rates**: Rates can swing widely across the cycle, so revenue and margin follow; watch new contract rates against the fleet average and contract expiries. - **High fixed costs and leverage**: Crews, upkeep and debt service continue when units idle, so weak utilization strains cash; watch operating cost per unit and debt maturities. - **Customer concentration**: A few producers hire much of the fleet, so one contract loss moves backlog; watch the revenue share of the largest customers. - **Safety and environmental incidents**: Accidents or spills bring fines, shutdowns and lost bids; watch incident disclosures, insurance coverage and regulatory actions. ## Industry Characteristics | Characteristic | Profile | | --- | --- | | Cyclicality | Cyclical | | Capital Intensity | High | | Regulatory Intensity | Medium | | Industry Maturity | Mature | | Geographic Importance | Global | ## Drilling & Offshore Services Filers in the SEC Record 12 companies with annual reports in the dataset are classified by the SEC in the Standard Industrial Classification codes 1381, 1389. Their latest fiscal years end in 2025, and together they reported $68.5 billion of revenue. Median revenue growth over the prior year was -3.2%. Median operating margin was 2.8% and median net margin 4.8%. Median total liabilities were 45% of total assets, and 10 of 12 reported a profit in their latest year. | Company | Revenue | Growth | Operating margin | Net margin | Year | | --- | --- | --- | --- | --- | --- | | [Slb Limited](https://www.getswoopr.com/stocks/companies/schlumberger/) | $35.7 billion | -1.6% | n/a | 9.4% | FY 2025 | | [Halliburton Co](https://www.getswoopr.com/stocks/companies/halliburton/) | $22.2 billion | -3.3% | 10.2% | 5.8% | FY 2025 | | [Valaris Ltd](https://www.getswoopr.com/stocks/companies/valaris-limited/) | $2.4 billion | 0.3% | 20.1% | 41.3% | FY 2025 | | [Profrac Holding Corp.](https://www.getswoopr.com/stocks/companies/profrac-holding-corp/) | $1.9 billion | -11.4% | -11.6% | -18.3% | FY 2025 | | [Select Water Solutions, Inc.](https://www.getswoopr.com/stocks/companies/select-water-solutions-inc/) | $1.4 billion | -3.1% | 2.0% | 1.5% | FY 2025 | | [National Energy Services Reunited Corp.](https://www.getswoopr.com/stocks/companies/national-energy-services-reunited-corp/) | $1.3 billion | 1.7% | 7.4% | 3.9% | FY 2025 | | [Propetro Holding Corp.](https://www.getswoopr.com/stocks/companies/propetro-holding-corp/) | $1.3 billion | -12.1% | 0.5% | 0.1% | FY 2025 | | [Highpeak Energy, Inc.](https://www.getswoopr.com/stocks/companies/highpeak-energy-inc/) | $863 million | -22.7% | 17.4% | 2196.4% | FY 2025 | The 8 largest of 12 by revenue. Source: each company's own annual report as filed with the SEC (XBRL data), figures in U.S. dollars. A company's SIC code reflects its main business as the SEC records it, so it can differ from how an index provider or analyst classifies the company, and a diversified group appears under only one code. ## Where to Go Next The Drilling & Offshore Services guide describes how the industry earns money, what to measure and what can go wrong. 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Key performance indicators for the Drilling & Offshore Services industry include: Fleet utilization, Average day rate, Contract backlog, Operating cost per rig or vessel, Net debt. Which matter most depends on the company's model, so compare them across several companies rather than relying on one. How cyclical is the Drilling & Offshore Services industry? The Drilling & Offshore Services industry is cyclical, meaning its revenues and earnings tend to expand during economic expansions and contract during downturns. Investors should monitor leading economic indicators and interest rate trends when evaluating timing. What are the biggest risks in the Drilling & Offshore Services industry? The primary risks for Drilling & Offshore Services companies include: Boom and bust day rates, High fixed costs and leverage, Customer concentration, Safety and environmental incidents. Investors should assess each company's exposure to these factors and its track record of navigating them. **[Swoopr Editorial Team](https://www.getswoopr.com/authors/swoopr-editorial-team/)** Swoopr's editorial team produces independent investment education content reviewed for accuracy and clarity. We do not provide personalized financial advice. See our [editorial policy](https://www.getswoopr.com/legal/editorial-policy/) and [corrections policy](https://www.getswoopr.com/legal/corrections-policy/).