Zacks Industry Outlook Highlights Exxon Mobil, Halliburton, Baker Hughes and Oceaneering International

For Immediate ReleaseChicago, IL – December 23, 2025 – Today, Zacks Equity Research discusses Exxon Mobil Corp. XOM, Halliburton Co. HAL, Baker Hughes BKR and Oceaneering International, Inc. OII.Industry: Oilfield ServicesLink: https://www.zacks.com/commentary/2807251/3-oilfield-services-stocks-set-to-gain-from-solid-industry-prospectsDemand for oilfield services will be strong in the coming days as the upstream businesses of companies like Exxon Mobil Corp. will likely be profitable despite softness in oil prices, thanks to the advancement of drilling technologies. Moreover, the industry's relatively low reliance on debt should enable oilfield service companies to access capital on favorable terms in a volatile business environment, underpinning a promising outlook for the Zacks Oil and Gas- Field Services industry.Oilfield service firms are also helping their customers to cut emissions and costs with the use of smarter technologies. Some key players in the industry that are well poised to gain are Halliburton Co., Baker Hughes and Oceaneering International, Inc..About the IndustryThe Zacks Oil and Gas - Field Services industry comprises companies that primarily engage in providing support services to exploration and production players. These companies help in manufacturing, repairing and maintaining wells, drilling equipment, leasing of drilling rigs, seismic testing and transport and directional solutions, among others. Also, the firms help upstream energy players locate oil and natural gas and drill and evaluate hydrocarbon wells.Hence, oilfield services businesses are positively correlated to expenditures from upstream firms. Furthermore, with countries worldwide investing heavily in liquefied natural gas (LNG) terminals, a few oilfield service companies are extending their reach beyond the hydrocarbon fields and capitalizing on contracts for manufacturing equipment used in LNG facilities to decrease carbon emissions.What's Shaping the Future of the Oilfield Services Industry?Upstream Operations Profitable Despite Low Oil: The price of West Texas Intermediate (WTI) crude is trading below the $60 per barrel mark. Despite the softness of the commodity price, exploration and production activities in prolific shale plays like the Permian Basin are still profitable as the break-even oil price is lower. Thus, a handsome demand for oilfield services will be there from upstream companies as operating costs in the oil and gas resources are low, thanks to the advent of advanced drilling techniques like horizontal drilling and hydraulic fracturing.Low Debt Exposure: Companies belonging to the industry have a significantly lower exposure to debt capital. This is reflected in the fact that the debt-to-capitalization of the industry's composite stock stands at only 32.6%. Thus, by relying on their strong balance sheets, the companies belonging to the industry are well poised to sail through when the business environment turns challenging.Cutting Costs and Emissions Through Smarter Technology: For producing oil at a lower cost with fewer emissions, upstream companies need smarter technologies from oilfield service players. Thus, there has been an increasing demand for electric subsea systems, digital monitoring and remote-control technologies of oilfield service companies, since the employment of these technologies allows oil and gas producers to produce more volumes with fewer environmental risks.Zacks Industry Rank Indicates Bullish OutlookThe Zacks Oil and Gas – Field Services is a 19-stock group within the broader Zacks Oil - Energy sector. The industry currently carries a Zacks Industry Rank #53, which places it in the top 22% of more than 250 Zacks industries.The group's Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates solid near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.Before we present a few stocks that you may consider, let's take a look at the industry's recent stock-market performance and valuation picture.Industry Lags S&P 500 & SectorThe Zacks Oil and Gas – Field Services industry has lagged the Zacks S&P 500 composite and the broader Zacks Oil – Energy sector over the past year.The industry has soared 10.1% over this period against the S&P 500's rise of 18% and the broader sector's 11.3% growth.Industry's Current ValuationSince oil and gas companies are debt-laden, it makes sense to value them based on the EV/EBITDA (Enterprise Value/Earnings before Interest Tax Depreciation and Amortization) ratio. This is because the valuation metric takes into account not just equity but also the level of debt. For capital-intensive companies, EV/EBITDA is a better valuation metric because it is not influenced by changing capital structures and ignores the effect of non-cash expenses.On the basis of the trailing 12-month EV/EBITDA, the industry is currently trading at 7.96X compared with the S&P 500's 18.56X and sector's 5.36X.Over the past five years, the industry has traded as high as 18.18X and as low as 2.01X, with a median of 7.71X.3 Oilfield Services Stocks Well Poised to GainHalliburton is an oilfield service giant and has a strong presence in all stages of the oilfield lifecycle. HAL has higher exposure to the more profitable international market than in North America. Among its key strategic priorities is backing its customers to meet the mounting demand for cleaner and more affordable energy. In return, Halliburton, currently carrying a Zacks Rank #2 (Buy), is deriving handsome cash flows and shareholders' returns.Oceaneering is well known for providing offshore energy companies with robotic solutions, along with engineered services and products. For 2026, OII expects its Aerospace and Defense (ADTech) business to continue contributing to its growth, with activities to pick up in the second and third quarters. Presently, Oceaneering carries a Zacks Rank of 1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.Baker Hughes' Oilfield Services & Equipment business unit is well-positioned to gain as exploration and production activities will continue to be profitable despite softness in oil prices. This signifies that demand for BKR's oilfield services will be favorable. Baker Hughes also has a strong balance sheet, thereby providing the company with ample capacity for growth and acquisitions.Free: Instant Access to Zacks' Market-Crushing StrategiesSince 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.Today you can tap into those powerful strategies – and the high-potential stocks they uncover – free. No strings attached.Get all the details here >>Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch/Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.Media ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.comhttps://www.zacks.comPast performance is no guarantee of future results. 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These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance  for information about the performance numbers displayed in this press release.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Exxon Mobil Corporation (XOM): Free Stock Analysis Report Halliburton Company (HAL): Free Stock Analysis Report Oceaneering International, Inc. (OII): Free Stock Analysis Report Baker Hughes Company (BKR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks