Blog · Coverage and territory · Oil and gas services
How an oilfield services company weights its operator coverage by current activity from public rig and permit data: operators ranked by active rigs or permits per basin, the company's revenue with each, the activity-weighted coverage per basin, and the list of operators drilling most where the company is least, valued at revenue per rig from the operators it serves fully.
An oilfield services company covers forty of the sixty operators in a basin. That sounds like two thirds. The public rig count says those forty run a third of the rigs, and the eight operators running most of the rest have never been called. This guide sets out activity-weighted coverage per basin, revenue per rig from the operators served fully, and the operator list.
Per basin, per service line:
Activity-weighted coverage = active rigs of served operators ÷ active rigs in the basin Revenue per rig norm = revenue from fully-served operators ÷ their active rigs
Per operator:
Expected revenue = active rigs × revenue per rig norm Gap = expected − actual
Account identifiers only, after the mapping.
Σ operators' revenue in the basin = ledger revenue in the basin
An operator in the ledger with no activity record is listed; it is usually a name-mapping gap, and the mapping is the work behind the measure.
| Operators | Active rigs | |
|---|---|---|
| Basin total | 60 | 142 |
| Served (revenue above floor) | 40 | 51 |
| Coverage by count | 67% | |
| Coverage by activity | 36% |
| Operator | Active rigs | Actual revenue | Expected at norm | Gap |
|---|---|---|---|---|
| 2207 | 14 | $0 | $4.2m | $4.2m |
| 4471 | 9 | $600,000 | $2.7m | $2.1m |
| 9034 | 8 | $2.5m | $2.4m | none |
| 1187 | 1 | $0 | $300,000 | $300,000 |
Operator 2207 runs a tenth of the basin's rigs and has never bought from the company. Operator 1187 is the kind of account a count-based list is full of. The activity-weighted list puts 2207 first with a value on it, and the norm behind the value is the company's own revenue from operators like 9034.
Activity moves. An operator adding rigs is adding demand; one dropping rigs is dropping it. The report shows each operator's rig count against the prior quarter, so a gap that is growing ranks above one that is shrinking.
Coverage by operator count. Two thirds covered, a third of the rigs.
Names not mapped. The company's largest operator appears twice with different spellings and the assertion fails. Map once, keep the mapping.
Norm from a benchmark. Revenue per rig from an industry survey does not describe this company's service line. Use the operators it serves fully.
Activity data stale. Rig counts from last year. Carry the date; refresh with the feed.
Mapped once, the activity feed, the ledger and the operator mapping produce weighted coverage per basin, revenue per rig, and the operator list every month. Covirage builds this from the exports as they are. The oil and gas page describes the setup, and the operator name mapping guide covers the mapping this measure depends on.
Public rig counts by operator and basin, state permit filings, or a commercial data feed. Whichever the company uses, the fields needed are operator, basin, active rigs or permits, and date. The operator names are mapped once to the company's account identifiers.
Among operators where the company holds most of the relevant service line, its annual revenue divided by their active rigs, per basin and service line. That is what a rig generates when the company has the work, and it is the norm applied to operators it does not serve.
Active rigs of operators with revenue above a stated floor, divided by all active rigs in the basin. Sixty percent of operators covered can be thirty percent of rigs, or ninety, and the weighted figure is the one that describes the market.