Oil has more than doubled since hitting the $26 mark back in January 2016. But despite the 100%+ increase in the price of the black gold, many investors continue to be underweight the energy sector. One thing is for sure: If the price continues to stay above the $50 mark, and moves closer to $60, capital expenditures are expected to jump. That could be good news for the oilfield services sector.

In a new research report, Timna Tanners at Merrill Lynch makes the case that based on what participants at the firm’s recent Energy Conference were saying, U.S. 0ilfield services companies seem confident that higher oil prices can lift spending in the coming year. This comes despite what some executives said during earnings calls for exploration and production companies in the fall.

Three top companies remain favorites at Merrill Lynch; all are rated Buy and could be great to own for 2018.

Halliburton

This company is still down almost 30% from highs printed last January, and remains a top large cap oil services pick at Merrill Lynch. Halliburton Company (NYSE: HAL) is one of the world’s largest providers of products and services to the energy industry. The company serves the upstream oil and gas industry throughout the life-cycle of the reservoir — from locating hydrocarbons and managing geological data, to drilling and formation evaluation, well construction and completion, and optimizing production through the life of the field.

Halliburton is the second-largest provider of oil services and the number one pressure pumping services provider worldwide. For investors looking for an oil field services company to add, this is arguably the best, and top analysts feel it will be a huge benefactor as the frac market has tightened significantly, and prices are 20% to 30% off the lows.

The company posted solid third quarter results that topped analysts’ estimates, driven by better pricing and increased activity in North America, its biggest market. Revenue from North America surged 91% to $3.16 billion in the three months ended September 30, due to a solid strengthening of market conditions in the region. Total revenue rose 42% to $5.44 billion. Net profit attributable to Halliburton rose to $365 million, or 42 cents per share, in the quarter, from $6 million, or 1 cent per share, a year earlier.

Halliburton shareholders are paid a 1.75% dividend. The Merrill Lynch price target is $50. The Wall Street consensus is slightly higher at $52.97. The shares closed Tuesday at $41.17.

Nabors Industries

This company provides drilling and rig services and some feel it could be a takeover target. Nabors Industries Ltd (NYSE: NBR) owns and operates the largest land-based drilling rig fleet in the world, and is a leading provider of offshore platform workover and drilling rigs in the U.S. and select international markets. Revenues in 2016 were $2.23 billion.

Nabors markets approximately 400 rigs for land-based drilling operations in the U.S., Canada, and approximately 20 other countries worldwide, and 41 rigs for offshore drilling operations in the U.S. and internationally.

The stock is down 62% year to date, which reflects investor focus on its balance sheet and ability to generate free cash flow and pay down debt. This concern has been exacerbated recently by a softer-than-expected earnings report and focus on 2018 non-cash deferred revenues. While most don’t see a quick fix for the company, the worst surely looks to be over.

Nabors investors are paid a 4.17% dividend, which could be lowered going forward. The Merrill Lynch price target is $8. The Wall Street consensus price objective is at $8.70. Shares closed well below those levels Tuesday at $5.75.

Patterson-UTI Energy

This company could see meaningful business coming from Canada this year. Patterson-UTI Energy, Inc. (NASDAQ: PTEN) is the second-largest land driller in North America and a large pressure pumping provider. Its operations are particularly focused in the Marcellus and in Texas.

Patterson-UTI and its subsidiaries operate land-based drilling rigs in oil and natural gas producing regions of the continental U.S. and western Canada. Universal Pressure Pumping, Inc. and Universal Well Services, Inc. provide pressure pumping services primarily in Texas and the Appalachian region. For the three months ended September 30, the company had an average of 161 drilling rigs operating.

The company remains the fifth largest Pressure Pumper with a 1.5 million HHP frac fleet (currently 83% utilized) with exposure to ancillary rental equipment business through Great Plains Oilfield Rental. The recent acquisition of MS Energy (directional drilling) complements its contract drilling business and provides attractive growth opportunities for investors.

Investors are paid a small 0.4% dividend. The Merrill Lynch price objective is a whopping $32, and that compares with the consensus figure of $24.67. The shares closed Tuesday at $20.08.

Three top companies to buy that offer investors some outstanding upside potential to the Merrill Lynch price targets. All make sense for more aggressive growth accounts looking to add oilfield services exposure.

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