SM Energy vs Patterson-UTI Energy

This page compares SM Energy and Patterson-UTI Energy, examining their business models, financial performance, and market context. It presents neutral information to help readers understand similarities and differences between the two companies, focusing on structure, operations, and industry position. Educational content, not financial advice.

This page compares SM Energy and Patterson-UTI Energy, examining their business models, financial performance, and market context. It presents neutral information to help readers understand similariti...

Comparison Snapshot

Key Financial Metrics

SM

Metric

PTEN

$2.20B

Market Cap

$2.79B

89.12%

Potential Profit

6.41%

Buy

Analyst Rating

Hold

Investment Analysis

SM Energy

SM

Pros

Strong production performance and resilient margins have supported consistent financial results in 2025.
Improved leverage and a robust cash balance reflect disciplined capital management and operational efficiency.
Recent reaffirmation of a $3.0 billion borrowing base signals strong confidence from banking partners.

Considerations

Net income decreased year-on-year in 2024 despite higher revenue, indicating margin pressures.
High beta of 2.30 suggests significant volatility and sensitivity to broader market swings.
Analyst consensus is a 'hold' rating, with limited upside expectations relative to peers.

Patterson-UTI Energy

PTEN

Pros

Largest land rig drilling contractor in the US, with expanded market share following the NexTier merger.
Diversified operations across drilling, completion, and product segments enhance resilience to sector cycles.
Strong presence in key US onshore basins supports long-term demand for its services.

Considerations

Share price remains near 52-week lows, reflecting ongoing sector and company-specific challenges.
Revenue and earnings performance has been volatile, with limited growth visibility in recent quarters.
High exposure to oilfield activity cycles makes results sensitive to commodity price swings.

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About The Companies

SM Energy (SM)

SM Energy Company (ticker: SM) is a US-focused independent oil and gas exploration and production company that develops and produces crude oil, natural gas liquids and natural gas from onshore unconventional reservoirs. With a market capitalisation of roughly $2.37 billion, SM is smaller than major integrated peers and typically more sensitive to oil and gas price cycles and operational execution. Investors commonly monitor production volumes, realised commodity prices, unit operating costs, capital expenditure and balance-sheet metrics to gauge performance. Key risks include commodity price volatility, permitting and regulatory shifts, operational setbacks and the capital-intensive nature of the business. This summary is for general educational purposes only and not personalised investment advice. Values can fall as well as rise; suitability depends on an individual’s circumstances and investors should consult a regulated adviser before acting.

Patterson-UTI Energy (PTEN)

Patterson-UTI Energy Inc. (PTEN) is a US-based oilfield services company specialising in land drilling rigs and associated pressure‑pumping services. Investors should know the business is highly cyclical: revenue and cash flow depend on drilling activity, oil and gas prices, rig utilisation and contract durations. The company operates a sizeable fleet and often requires significant capital expenditure to maintain or upgrade equipment, while balance-sheet strength and leverage can shape resilience during downturns. With a market capitalisation of about US$2.32bn, PTEN may offer exposure to recovery in onshore U.S. activity, but it also faces commodity price risk, competition and operational complexity. Performance can be volatile and past results do not guarantee future returns. This summary is for educational purposes only and is not personal financial advice; investors should assess suitability for their circumstances and consider seeking independent financial advice.

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Which Baskets Do They Appear In?

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Recent US tariff threats against buyers of Russian oil and a major new energy deal with the EU are redirecting global energy demand. This creates a prime opportunity for U.S. energy producers and exporters poised to meet Europe's growing needs.

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