The New Metric to View Oil Services

The New Metric to View Oil Services

The following video is from Thursday's Digging for Value, in which host Alison Southwick, Motley Fool analyst Joel South and contributor Tyler Crowe dive deep into the top stories for today's energy sector investors.The twice-weekly show can be viewed on Tuesdays and Thursdays. It can also be found on Twitter, along with our extended coverage of the energy and materials sectors: @TMFEnergy.

In this segment, Joel discusses what he is looking for in Halliburton's earnings, due out next week. Rather than looking at the tried and true oil services metric, rig counts, Joel sees drilling intensity as a much more important factor to watch. Increased drilling efficiencies such as pad drilling means more wells can be drilled per rig, so drilling intensity is a more accurate gauge of how companies like Halliburton and Schlumberger are performing, especially in the North American market. Tune into the video below to see what could be expected in this important metric for the quarter, as well as one more thing to watch in Halliburton's earnings.

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Alison Southwick has no position in any stocks mentioned. Joel South owns shares of Schlumberger. Fool contributor Tyler Crowe has no position in any stocks mentioned. The Motley Fool recommends Halliburton. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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Originally published