Direct Answer
21 SEC filers are classified under the Standard Industrial Classification codes that describe the oilfield services industry, and their latest annual reports show $112.4 billion of combined revenue and a median operating margin of 3.3%. Investors should still evaluate its revenue model, industry-specific KPIs, valuation framework and the risks that can change the group's economics.
Industry Overview
Oilfield service companies sell the people, equipment and technology that drill and complete wells and keep them producing, from rigs and pressure pumping to wireline and chemicals. They are paid by oil and gas producers, so activity rises and falls with producer budgets. The first numbers to compare across companies here are revenue per active rig or crew, utilization and pricing for services.
Key Industry Metrics
- Revenue per active rig or crew: Sales earned for each working rig or crew. It separates pricing and service intensity from sheer activity, so a rise with a flat rig count points to better pricing.
- Utilization: Share of equipment and crews that are working. High utilization lets providers raise prices; low utilization leads to discounting and idle fixed costs.
- Pricing for services: Rates charged for jobs and crew time. Prices react to the balance of supply and demand and often lag activity on the way up and move faster on the way down.
- Operating margin: Operating profit as a share of revenue. It expands strongly when utilization rises because of high fixed cost and compresses sharply in downturns.
- Backlog or contract coverage: Work contracted ahead of delivery. Many services are sold well by well, so backlog can be limited and short; longer commitments give more visibility.
Primary Macro Drivers
- Producer spending and rig counts: Producers pay for services from budgets, so more rigs and spending raise revenue per crew and utilization.
- Oil and gas prices: Prices determine how profitable new wells are, which drives drilling plans and demand for services with a lag.
- Service capacity supply: Limited equipment and crews support higher pricing for services, while surplus fleets push prices down and lower margin.
- Technology adoption such as longer laterals: Longer wells use more pumping and equipment per well, which increases revenue per job and efficiency gains for providers.
Major Risks
- Cyclical demand swings: Activity falls quickly when producers cut spending, so revenue and operating margin drop; watch rig counts and utilization.
- Oversupply of equipment: Too many fleets chasing less work lowers prices and idle assets still cost money; watch pricing for services and fleet counts.
- Customer concentration: A few producers account for much of revenue, so a budget cut can have a large effect; watch top customer shares of revenue.
- Pricing pressure: Buyers push for discounts when work is scarce, lowering margins; watch price changes and margin trends compared with activity.
Industry Characteristics
| Characteristic | Profile |
|---|---|
| Cyclicality | Cyclical |
| Capital Intensity | Medium |
| Regulatory Intensity | Low |
| Industry Maturity | Mature |
| Geographic Importance | U.S. / Global |
Oilfield Services Filers in the SEC Record
21 companies with annual reports in the dataset are classified by the SEC in the Standard Industrial Classification codes 1381, 1382, 1389, 3533. Their latest fiscal years end in 2025, and together they reported $112.4 billion of revenue. Median revenue growth over the prior year was -3.1%. Median operating margin was 3.3% and median net margin 2.2%. Median total liabilities were 46% of total assets, and 14 of 21 reported a profit in their latest year.
| Company | Revenue | Growth | Operating margin | Net margin | Year |
|---|---|---|---|---|---|
| Slb Limited | $35.7 billion | -1.6% | n/a | 9.4% | FY 2025 |
| Baker Hughes Co | $27.7 billion | -0.3% | n/a | 9.3% | FY 2025 |
| Halliburton Co | $22.2 billion | -3.3% | 10.2% | 5.8% | FY 2025 |
| Nov Inc. | $8.7 billion | -1.4% | 5.6% | 1.7% | FY 2025 |
| Weatherford International Plc | $4.9 billion | -10.8% | 15.4% | 8.8% | FY 2025 |
| Valaris Ltd | $2.4 billion | 0.3% | 20.1% | 41.3% | FY 2025 |
| Profrac Holding Corp. | $1.9 billion | -11.4% | -11.6% | -18.3% | FY 2025 |
| Select Water Solutions, Inc. | $1.4 billion | -3.1% | 2.0% | 1.5% | FY 2025 |
The 8 largest of 21 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 Oilfield Services guide describes how the industry earns money, what to measure and what can go wrong. To see how it compares, read the neighbouring industries in the same sector, then apply the same checks to a specific company.
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Frequently Asked Questions
What are the main KPIs for the Oilfield Services industry?
Key performance indicators for the Oilfield Services industry include: Revenue per active rig or crew, Utilization, Pricing for services, Operating margin, Backlog or contract coverage. Which matter most depends on the company's model, so compare them across several companies rather than relying on one.
How cyclical is the Oilfield Services industry?
The Oilfield 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 Oilfield Services industry?
The primary risks for Oilfield Services companies include: Cyclical demand swings, Oversupply of equipment, Customer concentration, Pricing pressure. Investors should assess each company's exposure to these factors and its track record of navigating them.