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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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Key Energy Services

Key Energy Services (NYSE:KEG)Trailing P/E: 9.4
2013 P/E: 10.6

After reporting terrible third-quarter earnings, shares of Key Energy Services (NYSE:KEG) plunged more than 12% and continued to drift downwards to rest at the low end of its 52-week range. As the largest onshore, rig-based well-servicing contractor based on the number of rigs owned, it’s no surprise that Key Energy reported terrible numbers.

Yet, while market conditions in the oilfield services sector have weakened in 2012, Key Energy does have some tricks up its sleeve.

First, the continued rapid growth in shale-oil wells will directly benefit Key Energy’s core workover rig division. That’s used primarily to recondition and/or recomplete wells. Second, the firm specializes in maintaining production levels from declining wells. Fracking a well produces a high volume of gas very quickly, which results in quick declines.

All in all, both capabilities will support Key Energy in the future.

Article printed from InvestorPlace Media, http://investorplace.com/2012/10/5-oil-services-buys-beyond-the-big-two/.

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