Baker Hughes and Halliburton also have size and liquidity to sustain a downturn. Core Labs (CLB) has solid free cash flow and working capital of about $135 million. Oil States has $36 million of cash on hand; its liquidity took a major hit after it acquired GEODynamics in Q4 2017 for over $500 million. Oil States’s Q3 revenue and EBITDA both declined Q/Q. I believe it could be extremely vulnerable if the oil patch turns down next quarter.
Conclusion
SLB trades at just under 9x trailing EBITDA. The stock is off 30% Y/Y and will likely fall further. Sell SLB.