Blog · Board and management reporting · Oil and gas services
The ten sales KPIs an oilfield services or equipment company should run on, each with its formula, the export it comes from and what it tells you: operator wallet share by basin, activity-weighted coverage, service lines per operator, rental fleet utilisation by operator, operator mapping completeness, bid win rate, price realisation against master service agreements, operator concentration, days sales outstanding by operator, and job margin by basin. Also the three measures most companies miss, the figures to drop, the identities, and who owns what.
An oilfield services company sells to operators whose spending follows their rig count, basin by basin, through entities that rarely share a name. The measures that matter weight everything by activity and start with knowing who the operator is.
| # | Measure | Formula | Export | What it tells you |
|---|---|---|---|---|
| 1 | Operator wallet share by basin | Revenue from the operator on the service line ÷ operator's estimated spend on it, from wells × cost per well | Ledger; public well and rig data | Operators where you hold a tenth of the work |
| 2 | Activity-weighted coverage | Activity of operators contacted within cadence ÷ total activity in the basin | CRM; rig and permit data | Whether the reps are where the rigs are |
| 3 | Service lines per operator | Lines with revenue ÷ lines relevant to the operator's programme | Ledger | Single-line relationships |
| 4 | Rental fleet utilisation by operator | Days on rent ÷ days available, by asset class and operator | Rental system | Idle fleet; operators who stopped renting |
| 5 | Operator mapping completeness | Revenue on entities mapped to a parent operator ÷ revenue | Ledger; operator master | Whether roll-ups can be trusted |
| 6 | Bid win rate | Bids won ÷ bids decided, by count and value, by basin and line | Bid log | Where pricing or qualification loses |
| 7 | Price realisation against agreement | Invoiced rate ÷ agreement rate, by line; discounts given in the field | Ledger; agreements file | Rates conceded job by job |
| 8 | Operator concentration | Top five operators' share of revenue and margin, rolled up | Ledger; operator master | Dependence on a few drilling programmes |
| 9 | Days sales outstanding by operator | Receivables ÷ average daily revenue, per operator | Receivables ledger | Operators financing themselves on your invoices |
| 10 | Job margin by basin and line | Revenue − direct job cost, per job, by basin and service line | Job costing | Basins where work is won at a loss |
Every one of these is computed per account, per account manager and basin, and in total, and every one carries an identity that must hold before the table is shown.
Activity-weighted coverage. Call plans follow last year's revenue. Rigs move faster than call plans.
Operator mapping. The largest operators are the ones split across the most ledger entities.
Wallet share by basin. A healthy company-wide share can be 40 percent in one basin and 4 in the next.
An operator runs eleven rigs in the basin, up from five a year ago. At the company's cost per well it will spend about $31 million on the service line this year. Revenue from it is $2.2 million: 7 percent. It appears in the ledger under four entity names, the largest of which is mapped. The last logged visit was four months ago, because on last year's revenue it ranked fourteenth.
Revenue ranking as the call plan. Weight by current activity.
Bids submitted. Win rate by value, by basin.
Fleet size. Utilisation by asset class and operator.
| Table | Must hold |
|---|---|
| Mapping | Ledger entities = mapped to an operator + unmapped |
| Rental | Available days = on rent + idle + in maintenance |
| Bids | Bids = won + lost + no award + open |
| Jobs | Job revenue and cost sum to the ledger |
A table whose identity fails is a table with a row missing or counted twice. It is not shown until it is fixed.
| Measure | Owner | Reviewed |
|---|---|---|
| Activity-weighted coverage | Account managers; basin managers | Weekly |
| Rental utilisation; bid win rate | Basin managers | Monthly |
| Wallet share; service lines; price realisation | Vice president of sales | Quarterly |
| Operator mapping; concentration; days sales outstanding; job margin | Sales operations; finance | Quarterly |
A measure with no owner is a metric, not a KPI; see KPI versus metric versus measure.
Ten measures from the ledger, public activity data and the rental and bid systems. Map the operators, weight by rigs, and read everything by basin. Covirage computes all of them from the exports oilfield services companies already produce, files only, with the definitions stated and the identities checked. See Covirage for oilfield services companies.
Coverage where each operator is weighted by what it is doing now, such as active rigs, permits filed or completions scheduled in the basin, not by what it bought last year. An operator that has doubled its rig count and has not been visited is the largest gap. One that has stopped drilling can be visited less. Public activity data makes this possible weekly.
An operator buys through operating subsidiaries, joint ventures, acquired companies still on old names, and sometimes a drilling contractor. The ledger holds each as a separate customer. Until they are mapped to the parent operator, wallet share, concentration and coverage are all understated for the largest customers.
From activity. Spend on a service line is roughly proportional to wells drilled or completed, at a cost per well the company knows from its own jobs. Wells in the basin times cost per well gives the operator's spend on the line; the company's revenue over that is its share. It is an estimate, and it is far better than none.