The oilfield service sector is generally the first to feel the effect when inflation increases, and then the headwind becomes part of the dialogue among EPs and investors. Concerns of cost increases from the EP perspective started during the first 2022 earnings cycle and amped by with each quarter. By year-end, management throughout the industry eyed rising inflation between 10 and 15 on average, with large companies budgeting for the low side in 2023 and small companies— many of them already struggling—staring down a rate closer to 20 in the year ahead, analysts said.
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