Energy – Oil Services & Equipment: First

Ole Slorer is the best in class for a third year in a row. The Morgan Stanley researcher favors companies that provide rigs, production infrastructure and high-technology services to offshore developers. Top picks include Houston-based Schlumberger, which he says has “the most advanced technology portfolio,” and Bermuda’s Seadrill, with its “clear dividend trajectory and accretive transactions.” Onshore, he sees rising demand for high-tech services, premium tubular goods and fracturing horsepower, owing to the growth in unconventional drilling — accompanied by strong pricing momentum for noncommoditized services. Companies likely to benefit from this demand include Switzerland’s Weatherford International, which has an “integrated service offering very well suited for onshore unconventional plays,” he says, and Luxembourg’s Tenaris, which benefits from “higher volumes and realized prices.” Slorer, 48, “is not shy in asking the tough questions of company managements,” applauds one ally. “His tactical recommendations are always intriguing, as he has a good pulse for what drives stocks.”