Macroeconomic factors, including tariff and trade uncertainties along with increasing OPEC+ production, will lead to high uncertainty throughout 2025 and into 2026, according to a new report by Fitch Ratings. However, issuers with strong balance sheets, clear revenue visibility and a robust customer base will be better positioned to navigate a downturn. The report is a relative credit analysis that compares issuers based on their business and financial characteristics.

The oilfield service sector is experiencing a slowing of activity in 2025, with a decrease in rig counts in both the U.S. and internationally compared to this time last year. Offshore activity has also seen a slowdown with many offshore drillers seeing increased white space and softening spot market.

Although the Global Oil & Gas Sector Outlook has been updated to deteriorating, the majority of issuers in the oilfield services peer group have a Stable Rating Outlook. Most issuers in the group remain between or below leverage sensitivities and Fitch anticipates that issuers will continue focus on shareholder returns as they meet debt reduction goals.
Source: Fitch Ratings