Our Sequeira OFS Index was down 0.2% month-over-month and down 3.1% year-over-year to the end of July. Over that same period, WTI was down 5.1% month-over-month, but up 37.1% year-over-year – demonstrating the year-over-year dichotomy between OFS stock returns and crude prices. While many of the larger American oilfield service companies beat consensus Q2 earnings expectations, their Canadian counterparties earnings were largely in line or modestly below expectations. The story continues to be strong US activity; however, going forward, expectations are for tempered growth out of the US due to takeaway constraints in the Permian which are not expected to be resolved until 2019.
For more information, download the Sequeira Energy Synopsis from the link below. The appendix includes a sector drill down of the Sequeira Oilfield Services Index.