If an investor is looking to choose a oil services company, a factor to consider is the locations where the companies receive most of their revenue. In the article below I will look at Schlumberger Limited (NYSE:SLB), Halliburton (NYSE:HAL) and Baker Hughes (NYSE:BHI) revenue base.
The Chart below indicates where Schlumberger receives its revenue.
As you can see from the chart above Schlumberger is very “international”. The company has a equal weighting globally. If you are bullish on global demand for oil services this is a company to consider.
The Chart below indicates where Halliburton receives its revenue.
Halliburton, which earns ~52% of its revenue within North America, is expecting a strong year in 2014. To support this statement Barclay’s is forecasting an increase of more than 7% in E&P spending within the continent this year. As this increase is being driven by the expectation that Natural Gas prices are on the increase, it is becoming more economical for E&P companies to focus on the onshore drilling market.
The Chart below indicates where Baker Hughes receives its revenue.
If you are more bullish on the North American drilling market an investor would want to invest in Halliburton as they are the most weighted within the North American Market.