As reported in the first quarter Oilfield Service (OFS) Newsletter, 2017 has been a great year for those servicing the oilfield. OPEC’s decision to reduce output by 1.2MM bo/d in November of 2016 kicked off an energy rebound that has brought a renewed sense of security to those servicing the industry. Rig counts have increased 18 weeks in a row and the price of oil has crested $50 for the first time since 2015. OPEC is expected to announce a decision to keep the production cuts in place in its upcoming meeting on May 25^th, which could drive bullish energy sentiment through the remainder of 2017.

In this Newsletter, we also further discuss how the rebound in energy prices has specifically affected pressure pumpers and land drillers. Utilization rates are near all-time highs, driving consolidation of quality assets and pursuit of capital from public markets. We profile two recent pressure pumper IPOs, Keane Group, and ProPetro, and provide an M&A outlook for the remainder of the year.

View the Q1 2017 Oilfield Services Update

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