Financial Review: Oasis Midstream Partners (OMP) vs. Patterson-UTI Energy (PTEN)

Oasis Midstream Partners (NYSE: OMP) and Patterson-UTI Energy (NASDAQ:PTEN) are both oils/energy companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, risk, analyst recommendations, earnings, institutional ownership, valuation and dividends.

Analyst Recommendations

This is a summary of current ratings and price targets for Oasis Midstream Partners and Patterson-UTI Energy, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Oasis Midstream Partners 0 2 8 0 2.80
Patterson-UTI Energy 0 4 17 0 2.81

Oasis Midstream Partners currently has a consensus price target of $21.50, suggesting a potential upside of 10.77%. Patterson-UTI Energy has a consensus price target of $26.19, suggesting a potential upside of 13.81%. Given Patterson-UTI Energy’s stronger consensus rating and higher probable upside, analysts clearly believe Patterson-UTI Energy is more favorable than Oasis Midstream Partners.

Profitability

This table compares Oasis Midstream Partners and Patterson-UTI Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Oasis Midstream Partners N/A N/A N/A
Patterson-UTI Energy 1.22% -3.54% -2.37%

Earnings & Valuation

This table compares Oasis Midstream Partners and Patterson-UTI Energy’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Oasis Midstream Partners $182.22 million 2.93 $49.21 million $0.43 45.14
Patterson-UTI Energy $2.36 billion 2.17 $5.91 million ($0.80) -28.76

Oasis Midstream Partners has higher earnings, but lower revenue than Patterson-UTI Energy. Patterson-UTI Energy is trading at a lower price-to-earnings ratio than Oasis Midstream Partners, indicating that it is currently the more affordable of the two stocks.

Dividends

Oasis Midstream Partners pays an annual dividend of $1.57 per share and has a dividend yield of 8.1%. Patterson-UTI Energy pays an annual dividend of $0.08 per share and has a dividend yield of 0.3%. Oasis Midstream Partners pays out 365.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Patterson-UTI Energy pays out -10.0% of its earnings in the form of a dividend.

Institutional and Insider Ownership

24.9% of Oasis Midstream Partners shares are owned by institutional investors. Comparatively, 99.6% of Patterson-UTI Energy shares are owned by institutional investors. 3.7% of Patterson-UTI Energy shares are owned by company 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

Patterson-UTI Energy beats Oasis Midstream Partners on 8 of the 15 factors compared between the two stocks.

About Oasis Midstream Partners

Oasis Midstream Partners LP provides crude oil, natural gas, and water-related midstream services in North America. It is involved in various activities, including natural gas gathering, compression, processing, and gas lift supply; crude oil gathering, stabilization, blending, and storage; gathering, transportation, gathering and disposal of produced and flow back water; freshwater distribution; and supply and distribution of fracwater and flushwater. OMP GP LLC serves as the general partner of the company. Oasis Midstream Partners LP was founded in 2013 and is based in Houston, Texas. The company is a subsidiary of OMS Holdings LLC.

About Patterson-UTI Energy

Patterson-UTI Energy, Inc., through its subsidiaries, provides onshore contract drilling services to oil and natural gas operators in the United States and Canada. It operates through two segments, Contract Drilling and Pressure Pumping. The Contract Drilling segment markets its contract drilling services primarily in Texas, southeastern New Mexico, northern Louisiana, Colorado, Wyoming, North Dakota, western Oklahoma, Pennsylvania, Ohio, West Virginia, and western Canada. As of December 31, 2017, this segment had a drilling fleet of 295 marketable land-based drilling rigs. The Pressure Pumping segment offers pressure pumping services that consist of well stimulation and cementing for the completion of new wells and remedial work on existing wells, as well as hydraulic fracturing, nitrogen, cementing, and acid pumping services in Texas, the Mid-Continent, and the Appalachian region. Patterson-UTI Energy, Inc. also manufactures and sells pipe handling components and related technology to drilling contractors in North America and other markets; and owns and invests in oil and natural gas assets as a non-operating working interest owner located principally in Texas and New Mexico. Patterson-UTI Energy, Inc. was founded in 1978 and is headquartered in Houston, Texas.

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