If you’re going to buy just one oil service stock, though, it should be king of them all: Schlumberger (NYSE:SLB).
The company basically provides every service function a well operator could ever want and need. Its sheer size — 118,000 employees across 85 countries — provides it economies of scale and profit margins that some smaller players only dream of. As such, it makes a great global play on the need for more energy.
That global reach has been the reason why Schlumberger managed to produce better earnings results than more U.S.-focused rival Halliburton (NYSE:HAL). SLB recently reported a big increase in revenues to $11.17 billion, which was considerably more than analysts’ estimates.
There could be more increases on the horizon. Roughly 32% of SLB’s revenues come from North America. With 2013 expected to start with a bang as rig counts are up in both the U.S. and in Canada, SLB will stand to profit even more from its hydraulic fracking offerings.
As of this writing, Aaron Levitt did not hold a position in any of the aforementioned securities.