Extraction Oil & Gas (NASDAQ: XOG) and EQT GP (NYSE:EQGP) are both mid-cap energy companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, risk, valuation, institutional ownership, analyst recommendations and earnings.
This is a summary of current recommendations and price targets for Extraction Oil & Gas and EQT GP, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Extraction Oil & Gas||0||2||11||0||2.85|
Valuation and Earnings
This table compares Extraction Oil & Gas and EQT GP’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||$604.30 million||3.76||-$44.40 million||($0.49)||-26.84|
|EQT GP||$834.10 million||7.33||$261.99 million||$0.98||23.45|
EQT GP has higher revenue and earnings than Extraction Oil & Gas. Extraction Oil & Gas is trading at a lower price-to-earnings ratio than EQT GP, indicating that it is currently the more affordable of the two stocks.
This table compares Extraction Oil & Gas and EQT GP’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Extraction Oil & Gas||-7.35%||1.34%||0.73%|
Insider & Institutional Ownership
87.9% of Extraction Oil & Gas shares are held by institutional investors. Comparatively, 10.0% of EQT GP shares are held by institutional investors. 6.7% of Extraction Oil & Gas shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
EQT GP pays an annual dividend of $0.98 per share and has a dividend yield of 4.3%. Extraction Oil & Gas does not pay a dividend. EQT GP pays out 100.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. EQT GP has increased its dividend for 2 consecutive years.
EQT GP beats Extraction Oil & Gas on 10 of the 16 factors compared between the two stocks.
Extraction Oil & Gas Company Profile
Extraction Oil & Gas, Inc., formerly Extraction Oil & Gas, LLC, is an energy company. It is focused on the acquisition, development and production of oil, natural gas and natural gas liquids (NGL) reserves in the Rocky Mountains, primarily in the Wattenberg Field of the Denver-Julesburg Basin (the DJ Basin) of Colorado. It focuses on the development of the Codell and Niobrara formations. It offers its exploration and production processes in various steps, such as seismic, site preparation, drilling the well, completing the well, monitoring the well and reclaiming the site. The Company utilizes sound walls to mute or redirect noise caused by its operations. The Company uses an electric rig to manage its drilling operations. It uses vapor recovery units to capture emissions from storage facilities. It uses lease automatic custody transfer (LACT) units to collect oil from tanks in a closed-loop system that manages air emissions associated with the oil gathering and transportation process.
EQT GP Company Profile
EQT GP Holdings, LP (EQGP) is a limited partnership company and subsidiary of EQT Gathering Holdings, LLC (EQT Gathering Holdings). The Company was formed to own EQT Corporation’s (EQT’s) partnership interests in EQT Midstream Partners, LP (EQM), a limited partnership formed by EQT to own, operate, acquire and develop midstream assets in the Appalachian Basin. Its segments include Gathering, and Transmission. The Gathering segment primarily includes high pressure gathering lines and the Federal Energy Regulatory Commission (FERC)-regulated low pressure gathering system. The Transmission segment includes EQM’s FERC-regulated interstate pipeline and storage business. EQGP has no independent operations. It has partnership interests in EQM. As of December 31, 2016, EQM provided midstream services to EQT and various third parties across 24 counties in Pennsylvania, West Virginia and Ohio through its two primary assets: the gathering system, and the transmission and storage system.
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