Industry Overview - The Zacks Oil and Gas - Field Services industry provides support services to exploration and production companies, including well manufacturing, drilling equipment maintenance, and seismic testing [2] - The industry's performance is closely tied to upstream spending, with a shift towards liquefied natural gas (LNG) terminals creating new opportunities for some companies [2] Current Trends - The U.S. Energy Information Administration (EIA) projects a decline in the average price of West Texas Intermediate (WTI) crude oil, forecasting $64.16 per barrel for 2025 and $47.77 per barrel for 2026, which is expected to negatively impact exploration and production activities [3][4] - There is a trend of lower upstream spending as shareholders prefer capital returns over increased production, further reducing demand for oilfield services [4] - The growing demand for renewable energy is likely to diminish the need for traditional oilfield services as the world shifts towards cleaner energy sources [4] Market Performance - The Zacks Oil and Gas - Field Services industry has underperformed compared to the S&P 500 and the broader Zacks Oil - Energy sector, declining by 5.5% over the past year, while the S&P 500 rose by 20.5% and the broader sector grew by 1.8% [7] Valuation Metrics - The industry is currently trading at an EV/EBITDA ratio of 6.68X, significantly lower than the S&P 500's 18.65X and slightly higher than the sector's 5.11X [11] - Over the past five years, the industry's EV/EBITDA has ranged from a low of 1.60X to a high of 12.87X, with a median of 8.11X [11] Investment Opportunities - Archrock Inc (AROC) is recognized for its natural gas compression services and has secured long-term contracts that promise stable cash flows, currently holding a Zacks Rank of 2 (Buy) [14] - Core Laboratories (CLB) provides proprietary services for oil extraction and is focused on maximizing returns to shareholders, also holding a Zacks Rank of 2 [17][18] - TechnipFMC (FTI) is optimistic about increasing its subsea orders by over $10 billion this year, and it also carries a Zacks Rank of 2 [21]