Energy Valuation Insights Oilfield Services Companies and How To Value Them
Following our post last week in which we covered the latest changes and trends facing oilfield services (OFS) companies, this week we focus on how to value these companies.
Understanding the value of an oilfield services (OFS) company is by its very nature a complex matter. As participants in the greater energy industry, situated between the exploration and production (E&P) companies and midstream companies, the OFS sub-sector is quite broad and includes a wide variety of businesses.
Having a firm grasp on the many similarities and distinctions between these businesses is crucial for performing valuations. The unpredictable cyclicality of the oilfield services industry requires careful consideration of many industry-wide and company-specific factors in developing a reasonable forecast of future operating results.
While consideration of such factors should be part of the analysis in the appraisal of businesses in all industries, the impact of these considerations is magnified in highly cyclical industries such as that served by OFS businesses.
In our whitepaper, Understanding Oilfield Services Companies & How to Value Them, we provide invaluable guidance in regard to these aspects of the OFS industry. Click below to download whitepaper.
