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5 Oil Services Buys Beyond the ‘Big Two’

Smart investors aren't stuck with just Halliburton and Schlumberger

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While exploration & production firms get all the public glory for the gushers of oil and natural gas being produced in the U.S., InvestorPlace readers should know that oil services stocks are the ones doing the heavy lifting and drilling.

Most of that drilling, equipment and other well-side tasks are done by oil services heavyweights Halliburton (NYSE:HAL) and Schlumberger (NYSE:SLB). After all, these two are widely considered as the sector’s “best of breed,” have huge cost advantages, and boast plenty of long-term contracts with E&P companies. That’s why the pair often are featured prominently in energy-focused mutual funds or ETFs.

However, there’s more than one way to frack a well — which is especially good news on the heels of Halliburton’s third-quarter earnings failing to wow Wall Street.

With overall U.S. onshore rig counts dropping by 9% this year — the most sustained decline since the recession in 2009 — many of the two heavyweights’ competitors have fallen hard thanks to their smaller sizes or narrower focuses, and their shares can be currently had for relative peanuts. And with America’s natural gas dominance almost assured, investors have the opportunity to pick up some long-term oil services bargains on the cheap.

Here are five beaten-down sector picks outside HAL and SLB:

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