Reviewing Extraction Oil & Gas (OTCMKTS:XOGAQ) and Sable Offshore (NYSE:SOC)

Extraction Oil & Gas (OTCMKTS:XOGAQ) and Sable Offshore (NYSE:SOC) are both small-cap oils/energy companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, analyst recommendations, risk, profitability and earnings.

Volatility and Risk

Extraction Oil & Gas has a beta of 2.1, indicating that its share price is 110% more volatile than the S&P 500. Comparatively, Sable Offshore has a beta of 0.32, indicating that its share price is 68% less volatile than the S&P 500.

Profitability

This table compares Extraction Oil & Gas and Sable Offshore’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Extraction Oil & Gas	-223.86%	-56.20%	-11.52%
Sable Offshore	N/A	-451.70%	-51.62%

Valuation and Earnings

This table compares Extraction Oil & Gas and Sable Offshore”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Extraction Oil & Gas	$906.64 million	0.01	-$1.39 billion	($0.46)	-0.13
Sable Offshore	N/A	N/A	-$32.18 million	N/A	N/A

Sable Offshore has lower revenue, but higher earnings than Extraction Oil & Gas.

Analyst Ratings

This is a breakdown of current ratings and price targets for Extraction Oil & Gas and Sable Offshore, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Extraction Oil & Gas	0	0	0	0	0.00
Sable Offshore	1	0	4	0	2.60

Sable Offshore has a consensus target price of $25.00, indicating a potential upside of 5.75%. Given Sable Offshore’s stronger consensus rating and higher possible upside, analysts plainly believe Sable Offshore is more favorable than Extraction Oil & Gas.

Insider & Institutional Ownership

38.6% of Extraction Oil & Gas shares are owned by institutional investors. Comparatively, 26.2% of Sable Offshore shares are owned by institutional investors. 6.0% of Extraction Oil & Gas shares are owned by insiders. Comparatively, 14.3% of Sable Offshore shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Sable Offshore beats Extraction Oil & Gas on 6 of the 11 factors compared between the two stocks.

About Extraction Oil & Gas

Extraction Oil & Gas, Inc., an independent oil and gas company, focuses on the acquisition, development, and production of oil, natural gas, and natural gas liquid reserves in the Rocky Mountain region, primarily in the Wattenberg Field of the Denver-Julesburg (DJ) Basin of Colorado. The company also engages in the construction and support of midstream assets to gather, process, and produce crude oil and gas. As of December 31, 2019, it had approximately 169,900 net acres of contiguous acreage blocks in the productive areas of the DJ Basin; held approximately 125,500 net acres outside of the Core DJ Basin; had estimated proved reserves of approximately 254.1 MMBoe; and had 1,509 gross producing wells. The company was founded in 2012 and is headquartered in Denver, Colorado. On June 14, 2020, Extraction Oil & Gas, Inc., along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware.

About Sable Offshore

Sable Offshore Corp. engages in the oil and gas exploration and development activities in the United States. The company operates through three platforms located in federal waters offshore California. It owns and operates 16 federal leases across approximately 76,000 acres and subsea pipelines, which transport crude oil, natural gas, and produced water from the platforms to the onshore processing facilities. The company was formerly known as Flame Acquisition Corp. and changed its name to Sable Offshore Corp. in February 2024. Sable Offshore Corp. was incorporated in 2020 and is based in Houston, Texas.