Oil & Gas Services

Segment notes from the 2025 10-K filings. Halliburton is Completion and Production versus Drilling and Evaluation. Baker Hughes splits Oilfield Services and Equipment from Industrial and Energy Technology, the LNG-turbine and compression franchise. SLB recast divisions after splitting out Digital in 3Q 2025.

Revenue for fiscal 2025. Services sell into everyone else's capital budgets, which makes this segment a leveraged bet on industry activity rather than on the commodity price itself.

Six years of revenue. The 2020 and 2021 trough shows how much harder the downcycle hits services than producers: when drilling budgets are cut, this segment's revenue goes with them.

Operating margin for fiscal 2025. Margins recovered substantially from the depths of the last downcycle as the survivors consolidated and held pricing discipline.

Operating cash flow minus capital expenditure for fiscal 2025. Services capex is lighter than E&P, so FCF tracks the activity cycle more than a multi-year project pipeline.

Industrial production index for drilling oil and gas wells, the single most cyclical series in the sector and the leading indicator for services demand. It remains far below the 2014 peak.

Baker Hughes rotary rigs, onshore versus US waters, republished by EIA. Offshore here is the Gulf of America and Alaska, not international deepwater. The onshore line is the US shale cycle; the offshore line is a much smaller domestic count.

Services revenue is downstream of these two lines. The rig count is the direct demand signal, and the inventory of drilled but uncompleted wells is the buffer that lets producers keep output flat while running fewer rigs. When that buffer is being drawn down, activity looks weaker than production suggests, and the eventual restocking is what a services recovery actually looks like.