[ihc-hide-content ihc_mb_type="show" ihc_mb_who="10,13,14,16,18,19" ihc_mb_template="1"] By Mark Rossano NOV reported earnings today highlighting the shift in the oilfield service markets. Orders are picking up as OFS companies are assessing their needs to bring back remaining cold stacked equipment and replacing worn components in the field. NOV highlighted “Green shoots” in the Wellbore Technologies sector as the order book started to pick back up. As we now sit at 217-220 frac spreads, the next leg of activation will require either rebuilds, repairs, or new equipment. It will take time, but we agree with NOV’s comments as they saw a strong March. We believe that order book continued to strengthen into April: “As the oilfield goes back to work customers will soon start to worry about non-trivial cash investment required to reactivate rigs and equipment.” Smaller basins: Ardmore, Cherokee, Fort Worth, San Joaquin, San Juan, and Powder River saw their normal seasonal bump as activity accelerated in the regions as winter ended and activity ramped. There is usually a shift higher- this year we had a shift higher at around the same time pushing spreads to a high of 220. We will see a short term pause in new activation as rigs continue to come back to market to help replace the dwindling DUC counts. The Williston has been slow to add back crews as weather and DAPL uncertainties persist. The Eagle Ford and Bakken has seen the biggest drop in DUC counts, and will need more rig activity to help stem the declines. At the current completion count of 12 in the Williston, we can expect crude production to steadily decline until activity ramps in the region. Without more clarity on DAPL, we should get to a point of activations to stem declines- but there will be little appetite to see some growth without DAPL being settled. [/ihc-hide-content]