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Schlumberger, Baker Hughes, And Halliburton Playing The Downturn Playbook

Schlumberger (NYSE:SLB), Halliburton (NYSE:HAL), and Baker Hughes (NYSE:BHI), the big 3 of oil services industry, should be able to weather the current downturn better than the prior cycles. There are a number of reasons why these companies should perform better. Firstly, due to the efficiency improvements and restructuring efforts, these companies are likely to see shallower decremental margins. Secondly, a higher level of North American service providers operating near breakeven create a higher floor on pricing as marginal capacity leaves the market sooner, and lastly mergers and acquisitions particularly HAL/BHI…