Throughout the pandemic, U.S. oil field services companies were severely tested by a number of trends, including demand reduction during lockdowns, dramatically lower rig counts, and severe swings in oil and natural gas prices. Exploration and production companies have become highly disciplined, using increased cash flows to pay down debt and return capital to shareholders rather than ramp up drilling and completion activity.
At Carl Marks Advisors, we understand the challenges facing companies across the E&P, midstream, and oilfield services sectors and what these issues mean for their stakeholders. Our experts, led by our team in Houston, know how to pinpoint critical value drivers, evaluate options, and help make decisions that borrowers, lenders, investors, and other stakeholders face regarding capital expenditure plans and liquidity requirements.
The modest increases in the US rig count, which remains below pre-pandemic levels, is a function of increased capital discipline on the part of US producers and more efficient drilling techniques allowing overall production increases with fewer rigs. Oil Field Service companies that survived the downturn are starting to realize some pricing power as older equipment wears out and labor continues to be a constraining factor for safe operations.
At Carl Marks Advisors, we understand the challenges facing companies across the E&P, midstream, and oilfield services sectors and what these issues mean for their stakeholders. Our experts, led by a team in Houston, know how to pinpoint critical value drivers, evaluate the options, and help make decisions that borrowers, lenders, investors, and other stakeholders face regarding capital expenditure plans and liquidity requirements.
