research customer satisfaction & investor returns … · stock price returns of publicly traded...

MarketPartners Update v. 1.0

Customer Satisfaction & Investor Returns

Relative

Rating

Relative

Return

+ 1.02 pts + 16.9%

+ .78 pts + 9.9%

- .73 pts - 10.6%

- 1.00 pts - 11.7%

Relative

Rating

Relative

Return

+ .69 pts + 18.9%

+ .60 pts + 17.4%

- .41 pts - 4.2%

- .78 pts - 12.5%

Relative

Rating

Relative

Return

+ .66 pts + 9.9%

+ .40 pts + 0.9%

- .35 pts - 20.3%

- .74 pts - 33.2%

Relative

Rating

Relative

Return

+ .81 pts + 19.6%

+ .44 pts + 1.5%

- .45 pts - 7.3%

- .81 pts - 5.9%

* Returns 24-months after survey end date.

July 2013

The Ties that Bind

ENERGYPOINT

RESEARCH

Satisfied Customers, Investor Rewards

The evidence that customer satisfaction deserves full consideration as a key metric for understanding, managing

and anticipating the stock-price performance of today's global oilfield suppliers continues to mount. In fact,

recently completed analysis indicates the strongest ties yet (statistical significance levels are well over 95%)

between publicly traded oilfield suppliers' customer satisfaction levels as measured in EnergyPoint Research’s

independent surveys and these same companies' subsequent stock-price performances. Based on the slope of

the plotted historical relationship, a 1-point improvement (or advantage) in a company's customer satisfaction

rating has, on average, equated to excess (or enhanced) stock-price returns of 17.8 percentage points over the

following 24 months. In more practical terms, since we conducted our first survey over nine years ago,

companies rating in the top quartiles and top halves of their peer groups have, on average, seen their 24-month

stock-prices outperform those of their peers by 17.4 and 8.6 percentage points, respectively. Equally

noteworthy, companies rating in the bottom quartiles and bottom halves of these same surveys saw their stock-

prices underperform the peer-group mean by 14.2 and 10.6 percentage points. This means that companies in

the top quartiles and top halves of our surveys have seen their 24-month stock-price performance exceed that

of companies in the bottom quartiles and bottom halves by an eye-popping 31.6 and 19.2 percentage points on

average in each survey since 2004. Importantly, we note that positive relationships between EnergyPoint's

ratings and stock-price returns exist in each of the four upstream segments we track.

So, what's going on here? In short, oilfield suppliers

rating well in terms of customer satisfaction tend to

benefit from more loyal customers, higher levels of

positive word-of-mouth and referrals, and stronger

brand names in the marketplace. They are also more

likely to win attractive pricing and contract terms,

including longer-term commitments, from oilfield

customers. On the expense side, highly rated suppliers

enjoy lower customer-acquisition costs resulting from

reduced customer churn and higher referral rates.

Lower costs are additionally derived from more

effective planning, employee training, and strategy

execution due to the enhanced visibility associated

with more stable and committed customer and

employee bases. This virtuous set of factors helps

explain why the seven publicly traded companies that

have historically ranked in the top half of each

applicable EnergyPoint survey - Core Laboratories,

Dril-Quip, Helmerich & Payne, Lufkin Industries, Noble

Corp, Newpark Resources and Rowan Companies -

have, on average, seen their stock prices appreciate

an impressive 451% since our first survey was

conducted in 2004. This compares to an average

return of 185% for the broader Philadelphia Oil

Service Index (OSX) over the same period.

SERVICE SUPPLIERS

Bottom Quartile

Bottom Half

Relative Ratings &

24-Mo Stock-price Returns

Top Quartile

Top Half

LAND DRILLERS

Top Quartile

Relative Rank

Top Half

Bottom Half

Bottom Quartile

Top Quartile

Relative Rank

Relative Rank

OFFSHORE DRILLERS

Top Half

Top Quartile

Top Half

Bottom Half

Bottom Quartile

Since 2004, a single publicly traded company ranking

in the top quartile of our surveys has had a 71.4%

chance of its stock price outperforming the peer-

group mean over the next 24-months. The probability

of outperformance grows to 85.7% for the average

return across all companies within the top quartile (or

top half) of a given survey. To be sure, such results are

immensely compelling. But they are especially

noteworthy given how many industry participants and

observers still view customer satisfaction as too old-

fashioned, or even Pollyannaish, to matter. One can

only assume they'll now reconsider.

A Final Remark

Bottom Half

Bottom Quartile

Relative Rank

PRODUCT SUPPLIERS

- 10.6%

+ 8.6%

- 14.2%

+ 17.4%

Bottom Half

Top Half

Bottom Quartile

Top Quartile

Top vs. Bottom Half Outperformance

+19.2%

Top vs. Bottom Quartile Outperformance

+31.6%

24-Month Stock-price Returns By Relative Customer Satisfaction Rank

Stock-price Outperformance Since 2004 24 Months after Completion of Survey

Percentage of companies ranking in the top quartile whose stock prices outperformed the peer-group mean

Percentage of years in which the average return for all companies in top quartiles outperformed the peer-group mean

Percentage of years in which the average return for all companies in top halves outperformed the peer-group mean

71.4%

85.7%

85.7%

-100%

-75%

-50%

-25%

0%

25%

50%

75%

100%

-1.50 -1.00 -0.50 0.00 0.50 1.00 1.50

Sto

ck-p

rice

Ret

urn

R

elat

ive

to P

eer

Gro

up

Me

an

Total Satisfaction Rating Relative to Peer-group Mean

Annual EPR Customer Satisfaction Ratings vs. 24-Month Stock-price Returns Since 2004

Slope = .1782x Statistical Significance = 99.9%

Copyright 2013 EnergyPoint Research, Inc.

http://www.energypointresearch.com/

http://www.energypointresearch.com/

Supplier Name

Survey

End Date

Survey

Type Ticker

Total Sat

Quartile

Relative Total

Satisfaction

Rating

12-Mo

Relative

Return

24-Mo

Relative

Return

Grey Wolf 1/16/04 Services GW 1 0.69 -5.3% -20.2%

Helmerich & Payne 1/16/04 Services HP 1 0.66 -9.6% 32.2%

Precision Drilling 1/16/04 Services PDS 1 1.07 5.6% 22.0%

Smith International 1/16/04 Services SII 1 0.47 4.1% -38.3%

Transocean 1/16/04 Services RIG 1 0.64 38.7% 71.3%

Grant Prideco 3/18/05 Products GRP 1 0.43 2.3% 2.0%

Lufkin Industries 3/18/05 Products LUFK 1 0.78 64.3% 64.1%

Natco Group 3/18/05 Products NTG 1 0.69 52.8% 67.6%

Smith International 3/18/05 Products SII 1 0.68 -45.8% -40.4%

Core Laboratories 7/5/06 Services CLB 1 0.57 50.5% 73.2%

ENSCO International 7/5/06 Services ESV 1 0.97 22.3% 17.2%

Helmerich & Payne 7/5/06 Services HP 1 0.69 1.2% 85.5%

Noble Drilling 7/5/06 Services NE 1 0.72 13.3% 16.3%

Rowan Companies 7/5/06 Services RDC 1 1.04 -1.9% -26.6%

Newpark Resources 7/5/07 Products NR 1 0.71 -33.2% -21.6%

Smith International 7/5/07 Products SII 1 1.43 12.5% -16.1%

ENSCO 12/31/08 Services ESV 1 0.54 26.1% 21.3%



Newpark Resources 12/31/08 Products NR 1 0.53 -67.2% 4.5%

Precision Drilling 12/31/08 Services PDS 1 0.79 -61.2% -62.7%

Rowan Companies 12/31/08 Services RDC 1 0.73 -24.8% 47.3%

Smith International 12/31/08 Products SII 1 1.11 -73.0% **

ENSCO 12/31/09 Services ESV 1 0.67 35.4% 43.2%

Helmerich & Payne 12/31/09 Services HP 1 1.44 -0.7% 25.7%


Newpark Resources 12/31/09 Products NR 1 0.45 5.6% 61.7%

Noble Drilling 12/31/09 Services NE 1 0.65 -11.9% -3.5%


ENSCO 12/31/10 Services ESV 1 0.78 -9.2% 18.0%

Gardner Denver 12/31/10 Products GDI 1 0.98 11.8% -0.3%


Newpark Resources 12/31/10 Services NR 1 0.45 54.5% 27.6%

Noble Drilling 12/31/10 Services NE 1 0.41 -13.0% 1.6%

Oceaneering 12/31/10 Products OII 1 0.43 26.2% 49.1%

TETRA Technologies 12/31/10 Services TTI 1 1.22 -22.9% -37.4%

ENSCO 12/31/11 Services ESV 1 0.92 29.9% **

Gardner Denver 12/31/11 Products GDI 1 1.10 -10.8% **

Helmerich & Payne 12/31/11 Services HP 1 1.03 -3.5% **

Newpark Resources 12/31/11 Services NR 1 0.58 -17.4% **

Pason Systems 12/31/11 Products PSYTF 1 1.50 42.8% **

Rowan Companies 12/31/11 Services RDC 1 0.46 3.1% **

TETRA Technologies 12/31/11 Services TTI 1 1.31 -18.7% **

FIRST QUARTILE AVERAGE 0.83 5.1% 17.4%

ENERGYPOINT RESEARCH

Stock Price Returns of Publicly Traded U.S.-Listed Oilfield Suppliers

Rated in EnergyPoint Research's Customer Satisfaction Surveys Since 2004

Companies Rating in the 1st Quartile Relative to Peers




Supplier Name

Survey

End Date

Survey

Type Ticker

Total Sat

Quartile

Relative Total

Satisfaction

Rating

12-Mo

Relative

Return

24-Mo

Relative

Return

Baker Hughes 1/16/04 Services BHI 2 0.15 -1.5% -16.3%

BJ Services 1/16/04 Services BJS 2 0.26 -7.1% -16.5%

Noble Drilling 1/16/04 Services NE 2 0.26 10.9% -16.0%

Baker Hughes 3/18/05 Products BHI 2 0.19 -11.5% -38.9%

Dril-Quip 3/18/05 Products DRQ 2 0.07 17.8% 51.5%

FMC Technologies 3/18/05 Products FTI 2 0.15 -20.5% 11.4%

Halliburton 3/18/05 Products HAL 2 0.15 -4.7% -36.1%

Schlumberger 3/18/05 Products SLB 2 0.02 6.9% -1.8%


BJ Services 7/5/06 Services BJS 2 0.41 -42.1% -62.6%

Halliburton 7/5/06 Services HAL 2 0.36 -25.2% -8.4%

Parker Drilling 7/5/06 Services PKD 2 0.28 41.8% -19.3%

Smith International 7/5/06 Services SII 2 0.48 18.0% 39.1%

Superior Energy Services 7/5/06 Services SPN 2 0.28 3.9% 9.7%

Dril-Quip 7/5/07 Products DRQ 2 0.53 -1.7% 20.4%

Halliburton 7/5/07 Products HAL 2 0.44 24.6% 0.6%

Cameron International 12/31/08 Products CAM 2 0.17 22.4% -19.7%


Dril-Quip 12/31/08 Products DRQ 2 0.33 93.9% -3.5%

Halliburton 12/31/08 Services HAL 2 0.13 17.1% 9.0%


Noble Drilling 12/31/08 Services NE 2 0.42 17.8% -6.0%

Smith International 12/31/08 Services SII 2 0.07 -42.6% **

Cameron International 12/31/09 Products CAM 2 0.09 -18.6% -3.5%


Dril-Quip 12/31/09 Products DRQ 2 0.25 -2.4% -7.8%



Precision Drilling 12/31/09 Services PDS 2 0.39 10.8% 19.4%

Pride International 12/31/09 Services PDE 2 0.28 -2.8% **

Rowan Drilling 12/31/09 Services RDC 2 0.40 52.4% 53.4%

Atwood Oceanics 12/31/10 Services ATW 2 0.36 6.2% 22.2%

Basic Energy Services 12/31/10 Services BAS 2 0.25 17.8% -31.8%

Cameron International 12/31/10 Products CAM 2 0.11 -2.7% 11.6%

Dril-Quip 12/31/10 Products DRQ 2 0.33 31.6% 46.1%

Halliburton 12/31/10 Products HAL 2 0.22 15.1% -13.8%


Lufkin Industries 12/31/10 Products LUFK 2 0.25 7.9% -6.8%

Newpark Resources 12/31/10 Products NR 2 0.29 54.5% 27.6%

Precision Drilling 12/31/10 Services PDS 2 0.20 6.6% -13.4%

Unit Drilling 12/31/10 Services UNT 2 0.31 0.3% -2.7%

Atwood Oceanics 12/31/11 Services ATW 2 0.29 15.1% **

Basic Energy Services 12/31/11 Services BAS 2 0.07 -42.1% **

Cameron International 12/31/11 Products CAM 2 0.07 14.8% **

Core Laboratories 12/31/11 Services CLB 2 0.44 -3.1% **

Dril-Quip 12/31/11 Products DRQ 2 0.62 11.0% **

Halliburton 12/31/11 Products HAL 2 0.10 1.6% **

Newpark Resources 12/31/11 Products NR 2 0.31 -17.4% **

Noble Drilling 12/31/11 Services NE 2 0.09 16.9% **

Oceaneering 12/31/11 Products OII 2 0.65 18.1% **

Schlumberger 12/31/11 Services SLB 2 -0.08 3.0% **

Unit Drilling 12/31/11 Services UNT 2 0.62 -2.9% **

SECOND QUARTILE AVERAGE 0.27 6.0% 0.8%

Companies Rating in the 2nd Quartile Relative to Peers




Supplier Name

Survey

End Date

Survey

Type Ticker

Total Sat

Quartile

Relative Total

Satisfaction

Rating

12-Mo

Relative

Return

24-Mo

Relative

Return

Diamond Offshore 1/16/04 Services DO 3 0.08 65.4% 144.7%

GlobalSantaFe 1/16/04 Services GSF 3 0.00 -33.6% -68.2%

Halliburton 1/16/04 Services HAL 3 -0.17 21.6% 31.7%

Parker Drilling 1/16/04 Services PKD 3 0.03 -13.7% 105.1%

Schlumberger 1/16/04 Services SLB 3 -0.14 -10.1% -24.3%

BJ Services 3/18/05 Products BJS 3 -0.10 -36.5% -75.4%

Hydril 3/18/05 Products HYDL 3 -0.09 -41.0% -21.6%

Precision Drilling 3/18/05 Services PDS 3 -0.41 -21.1% -71.0%

Basic Energy Services 7/5/06 Services BAS 3 -0.36 -34.8% -44.1%

Precision Drilling 7/5/06 Services PDS 3 0.24 -34.5% -47.7%

Pride International 7/5/06 Services PDE 3 0.23 3.5% -8.4%

Schlumberger 7/5/06 Services SLB 3 0.22 19.0% 14.3%

Tesco Corp 7/5/06 Services TESO 3 -0.29 28.0% -5.4%

Transocean 7/5/06 Services RIG 3 0.25 15.7% 30.4%

Weatherford Int'l 7/5/06 Services WFT 3 -0.11 -7.0% 28.0%

Baker Hughes 7/5/07 Products BHI 3 0.31 -25.4% -16.4%

BJ Services 7/5/07 Products BJS 3 0.14 -13.9% -10.8%

Cameron International 7/5/07 Products CAM 3 0.39 21.7% 16.4%

Oceaneering 7/5/07 Products OII 3 -0.07 10.7% 25.6%

Schlumberger 7/5/07 Products SLB 3 0.05 -6.5% 4.1%

Weatherford Int'l 7/5/07 Products WFT 3 -0.06 33.2% 7.7%

Baker Hughes 12/31/08 Products BHI 3 0.05 -53.3% 1.9%


BJ Services 12/31/08 Products BJS 3 -0.16 -16.0% **

BJ Services 12/31/08 Services BJS 3 0.06 14.4% **

Oceaneering 12/31/08 Products OII 3 -0.21 19.3% -15.3%

Patterson-UTI 12/31/08 Services PTEN 3 -0.35 -12.6% 13.7%

Pride Int'l 12/31/08 Services PDE 3 -0.09 7.6% 0.7%

Schlumberger 12/31/08 Products SLB 3 -0.30 -25.3% -11.1%

Schlumberger 12/31/08 Services SLB 3 -0.07 5.1% -18.9%

Transocean 12/31/08 Services RIG 3 -0.41 8.0% -25.2%

Weatherford Int'l 12/31/08 Products WFT 3 -0.25 -16.0% -13.8%

Baker Hughes 12/31/09 Products BHI 3 -0.03 3.0% -14.6%

Baker Hughes 12/31/09 Services BHI 3 -0.20 -3.1% -28.3%

Basic Energy Services 12/31/09 Services BAS 3 0.06 39.0% 70.2%

BJ Services 12/31/09 Products BJS 3 -0.55 13.7% 25.0%

Key Energy Services 12/31/09 Services KEG 3 -0.15 1.5% 24.9%

Oceaneering 12/31/09 Products OII 3 -0.29 -14.2% 33.9%


Schlumberger 12/31/09 Services SLB 3 -0.11 -16.1% -43.4%

Unit Drilling 12/31/09 Services UNT 3 -0.11 -13.5% -12.9%


Weatherford Int'l 12/31/09 Services WFT 3 -0.35 -18.8% -69.4%

Baker Hughes 12/31/10 Products BHI 3 -0.11 -13.6% -26.5%

Baker Hughes 12/31/10 Services BHI 3 -0.10 13.6% -26.5%

FMC Technologies 12/31/10 Products FTI 3 -0.46 18.0% -3.2%

Nabors Industries 12/31/10 Services NBR 3 -0.80 -25.5% -37.9%

Rowan Companies 12/31/10 Services RDC 3 -0.06 -12.8% -10.1%


Schlumberger 12/31/10 Services SLB 3 0.06 -17.0% -14.5%

Transocean 12/31/10 Services RIG 3 -0.27 -41.9% -31.4%

Weatherford Int'l 12/31/10 Services WFT 3 -0.10 35.6% -50.8%

Baker Hughes 12/31/11 Products BHI 3 -0.12 -14.9% **

Diamond Offshore 12/31/11 Services DO 3 -0.58 29.6% **

FMC Technologies 12/31/11 Products FTI 3 -0.51 -18.0% **

Halliburton 12/31/11 Services HAL 3 -0.15 1.6% **

Key Energy Services 12/31/11 Services KEG 3 -0.37 -55.1% **

Lufkin Industries 12/31/11 Products LUFK 3 -0.09 -13.6% **

Precision Drilling 12/31/11 Services PDS 3 0.23 -18.8% **

Schlumberger 12/31/11 Products SLB 3 -0.25 3.0% **

Tesco 12/31/11 Products TESO 3 -0.45 -9.9% **

Transocean 12/31/11 Services RIG 3 -0.23 18.2% **

Weatherford Int'l 12/31/11 Products WFT 3 -0.11 -23.6% **

Weatherford Int'l 12/31/11 Services WFT 3 -0.16 -23.6% **

THIRD QUARTILE AVERAGE -0.14 -5.8% -7.2%

Companies Rating in the 3rd Quartile Relative to Peers




Supplier Name

Survey

End Date

Survey

Type Ticker

Total Sat

Quartile

Relative Total

Satisfaction

Rating

12-Mo

Relative

Return

24-Mo

Relative

Return

ENSCO International 1/16/04 Services ESV 4 -1.05 -13.4% -42.3%

Key Energy Services 1/16/04 Services KEG 4 -1.28 -24.9% -93.6%


Patterson-UTI 1/16/04 Services PTEN 4 -0.59 -19.1% -8.1%


Cooper Cameron 3/18/05 Products CAM 4 -0.53 -15.3% 28.7%

Varco 3/18/05 Products NOV 4 -1.50 -44.7% -36.9%


Diamond Offshore 7/5/06 Services DO 4 -0.77 12.2% 25.2%

GlobalSantaFe 7/5/06 Services GSF 4 -0.46 3.6% **

Grey Wolf 7/5/06 Services GW 4 -1.16 -17.9% -25.9%

Key Energy Services 7/5/06 Services KEG 4 -0.53 -0.7% -28.0%



Unit Drilling 7/5/06 Services UNT 4 -1.22 -9.6% -0.9%

FMC Technologies 7/5/07 Products FTI 4 -0.32 52.6% 36.4%

National Oilwell Varco 7/5/07 Products NOV 4 -1.39 34.0% -46.3%

Oil States International 7/5/07 Products OIS 4 -0.53 13.9% -2.0%

Technip-Coflexip 7/5/07 Products TKPPY.PK 4 -0.79 -20.8% 5.2%

Tesco 7/5/07 Products TESO 4 -0.81 -27.3% -34.2%

Basic Energy Services 12/31/08 Services BAS 4 -0.66 -82.8% -95.6%

Diamond Offshore 12/31/08 Services DO 4 -1.17 17.4% -38.1%

FMC Technologies 12/31/08 Products FTI 4 -0.47 61.3% 12.6%

Key Energy Services 12/31/08 Services KEG 4 -0.65 48.2% 72.4%

Nabors Industries 12/31/08 Services NBR 4 -1.13 34.7% 17.1%

National Oilwell Varco 12/31/08 Products NOV 4 -1.14 3.6% 12.9%

Oil States International 12/31/08 Products OIS 4 -0.57 28.7% 22.0%


Unit Drilling 12/31/08 Services UNT 4 -0.60 10.9% -4.9%


Diamond Offshore 12/31/09 Services DO 4 -0.44 -29.1% -17.5%



Oil States International 12/31/09 Products OIS 4 -0.87 23.1% 26.7%

Patterson-UTI 12/31/09 Services PTEN 4 -1.02 19.2% 10.7%

Seadrill 12/31/09 Services SDRL 4 -1.14 -29.1% -43.5%


Transocean 12/31/09 Services RIG 4 -0.45 -17.8% -32.1%

Diamond Offshore 12/31/10 Services DO 4 -0.37 -12.0% 14.1%

Key Energy Services 12/31/10 Services KEG 4 -0.23 18.4% -46.6%

MRC Global 12/31/10 Services MRC 4 -1.10 -25.5% -37.9%



Seadrill 12/31/10 Services SDRL 4 -0.86 8.2% 34.3%

Superior Energy Services 12/31/10 Services SPN 4 -0.50 -18.7% -40.8%


Tesco 12/31/10 Services TESO 4 -1.50 -21.1% -28.9%


Baker Hughes 12/31/11 Services BHI 4 -0.39 -14.9% **

Nabors Industries 12/31/11 Services NBR 4 -0.61 -16.7% **

National Oilwell Varco 12/31/11 Products NOV 4 -0.63 1.2% **

Patterson-UTI 12/31/11 Services PTEN 4 -1.27 -5.6% **

Seadrill 12/31/11 Services SDRL 4 -0.93 24.1% **

Tesco 12/31/11 Services TESO 4 -0.65 -9.9% **

FOURTH QUARTILE AVERAGE -0.82 -5.0% -14.2%

Companies Rating in the 4th Quartile Relative to Peers

GUIDE TO ENERGYPOINT RESEARCH’S

CUSTOMER SATISFACTION RATINGS, GRADES & TRENDS

Customer satisfaction ratings are one of several tools parties can use when evaluating the quality and performance of a company or industry. EnergyPoint Research’s customer satisfaction ratings are opinions about how upstream oil and gas industry customers view the various oilfield suppliers they utilize and depend upon. Unlike other types of opinions, such as those provided by doctors or lawyers, EnergyPoint customer satisfaction ratings are not intended to be a prognosis or recommendation. Instead, they are intended to provide information about the perceived performance and quality of suppliers within the market place, including their trends over time. All satisfaction ratings collected in EnergyPoint’s surveys, unless otherwise noted, are derived from 1-to-10 pt ratings

scales, with 1 indicating a respondent is “Very Dissatisfied” with a supplier and/or its products or services, and 10 indicating they are “Very Satisfied.” For purposes of the firm’s Contract Drillers Quarterly, Oilfield Services Quarterly and Oilfield Products Quarterly publications, EnergyPoint’s opinions regarding suppliers’ customer satisfaction levels are converted to grades ranging from “VERY HIGH” to “VERY LOW.” Unless otherwise noted, all such grades are based on survey results collected within the prior 24 months, a period the firm believes captures customers’ most relevant perspectives toward a supplier. The trends in companies’ satisfaction ratings shown in these same quarterly reports, which are based on the change in ratings observed within the last 12 months, are categorized as either “UP”, “STABLE” or “DOWN”. The section below explains how suppliers’ ratings in EnergyPoint surveys are converted to the grades and trends shown in EnergyPoint’s Customer Satisfaction Quarterly updates:

CONVERSION OF CUSTOMER

SATISFACTION RATINGS TO GRADES

CONVERSION OF CHANGE IN

SATISFACTION RATINGS TO TRENDS

Rating Based on

1-to-10 Point Scale Grade Based on

1-to-10 Point Rating Change in Rating

Over Last 12 Mo’s Trend Based on

Change in Rating

Greater than 8.25 “VERY HIGH” Increase of

0.25 pts or more “UP”

Less than 8.25 and

“HIGH”

Greater than 7.75 Increase or decrease of less

than 0.25 “STEADY”

Less than 7.75 and “AVERAGE”

Greater than 6.75 Decease of

0.25 pts or more “DOWN”

Less than 6.75 and

“LOW”

Greater than 6.25 Less than 6.25 “VERY LOW”

Below is a list of the contract drillers and oilfield suppliers for which EnergyPoint collects and publishes customer satisfaction ratings as of January 1, 2012 (companies in bold are those covered in the firm’s Quarterly updates):

Aker Solutions Gardner Denver Patterson-UTI

Atwood Oceanics GE Oil & Gas Precision Drilling

Baker Hughes Halliburton Rowan Drilling

Basic Energy Services Helmerich & Payne Schlumberger

Cameron International KCA DEUTAG Scientific Drilling

Caterpillar Key Energy Services Seadrill

Champion Technologies LeTourneau Technologies Sumitomo Metals

Core Laboratories Lufkin Industries Tenaris

Davis-Lynch McJunkin Red Man Tesco

Delmar Systems M-I SWACO TETRA Technologies

Derrick Equipment Nabors Industries Transocean

Diamond Offshore National Oilwell Varco U.S. Steel

Dril-Quip Newpark Resources Unit Drilling

ENSCO Noble Drilling V&M Tubes

Expro Oceaneering International Weatherford International

FMC Technologies Oil States International Wilson Supply

Forum Energy Technologies Omron IDM

Frank's Pason Systems

ABOUT ENERGYPOINT RESEARCH

EnergyPoint Research provides independent research regarding the oil and gas industry’s satisfaction with the products and services it purchases and uti-lizes. The firm offers industry professionals and their employers opportunities to provide comprehensive and confidential feedback to suppliers through objective and independent evaluation processes. In return for participating in surveys, respondents and their employers receive complimentary survey resultsin the form of EnergyPoint’s MarketPartners®

Reports and Updates. Through the MarketPartners® Program, EnergyPoint regularly surveys significant cross-

sections of experienced industry participants involved in the selection and utilization of oilfield products and service providers. Survey participants rangefrom managers at some of the world’s largest energy companies to field personnel at independents and regionals. To learn more about EnergyPointResearch and our benchmark surveys, go to www.energypointresearch.com or call the company in Houston, Texas at +1.713.529.9450.

DISCLAIMER

The information, data, commentary and analysis included in this report were collected, compiled and published by Energy Point Research, Inc.

(“EnergyPoint”) with the intent of providing readers with relevant, although not necessarily fully definitive, information as to customers’ satisfaction with

providers of certain products and/or services. EnergyPoint does not maintain or represent that the resulting information, opinions, and conclusions pre-

sented in this or any other EnergyPoint report necessarily reflect the perspectives of all customers and /or the complete market for the products and/or

services covered in such reports. Readers are advised that surveys of the type upon which EnergyPoint’s reports are based (and the resulting data, com-

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