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

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

Institutional and Insider Ownership

26.2% of Sable Offshore shares are held by institutional investors. Comparatively, 38.6% of Extraction Oil & Gas shares are held by institutional investors. 14.3% of Sable Offshore shares are held by company insiders. Comparatively, 6.0% 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 is poised for long-term growth.

Risk & Volatility

Sable Offshore has a beta of 0.3, indicating that its stock price is 70% less volatile than the S&P 500. Comparatively, Extraction Oil & Gas has a beta of 2.1, indicating that its stock price is 110% more volatile than the S&P 500.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sable Offshore	1	0	3	0	2.50
Extraction Oil & Gas	0	0	0	0	N/A

Sable Offshore presently has a consensus target price of $23.75, suggesting a potential upside of 7.37%. Given Sable Offshore’s higher probable upside, analysts clearly believe Sable Offshore is more favorable than Extraction Oil & Gas.

Profitability

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

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

Earnings & Valuation

This table compares Sable Offshore and Extraction Oil & Gas”s top-line revenue, earnings per share and valuation.

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

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

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.

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.