Smart Sand, Inc., an integrated frac sand supply and services company, engages in the excavation, processing, and sale of sands or proppant for use in hydraulic fracturing operations in the oil and gas industry in the United States. It also provides logistics services; and SmartSystems, a wellsite storage solution. The company sells its products primarily to oil and natural gas exploration and production companies, oilfield service companies, and industrial manufacturers. As of December 31, 2022, it had approximately 247 million tons of proven and probable recoverable sand reserves. Smart Sand, Inc. was incorporated in 2011 and is headquartered in Spring, Texas.

Smart Sand, Inc.

For Immediate Release
Chicago, IL – January 21, 2025 – Today, Zacks Equity Research Equity are Baker Hughes Co. BKR, Archrock Inc. AROC and Smart Sand Inc. SND.
Industry: Oilfield Services
Link: https://www.zacks.com/commentary/2398885/3-oilfield-services-stocks-set-to-thrive-despite-industry-challenges
Strict capital management by upstream energy firms is leading to decreased demand for oilfield services, creating a challenging outlook for the Zacks Oil and Gas- Field Services industry. Companies in this sector must navigate the evolving energy transition landscape effectively to succeed. Consequently, falling short of energy transition objectives could negatively impact their cash flow.
Among the companies in the industry that are likely to survive the business challenges are Baker Hughes Co., Archrock Inc. and Smart Sand Inc.
About the Industry
The Zacks Oil and Gas - Field Services industry comprises companies that primarily engage in providing support services to exploration and production players. These companies help in manufacturing, repairing and maintaining wells, drilling equipment, leasing of drilling rigs, seismic testing and transport and directional solutions, among others.
Also, the firms help upstream energy players locate oil and natural gas and drill and evaluate hydrocarbon wells. Hence, oilfield services businesses are positively correlated to expenditures from upstream firms. Furthermore, with countries worldwide investing heavily in liquefied natural gas (LNG) terminals, a few oilfield service companies are extending their reach beyond the hydrocarbon fields and capitalizing on contracts for manufacturing equipment used in LNG facilities to decrease carbon emissions.
3 Trends Defining the Oilfield Services Industry's Future
Highly Volatile Business: The demand for oilfield services is predominantly tied to exploration and production activities. Given the reliance of oil explorers and producers on the volatile commodity pricing landscape, the business of oilfield service companies like SLB and Halliburton Company is susceptible to uncertainty.
Lower Upstream Spending: Although the commodity pricing scenario is favorable for exploration and production operations, there has been a slowdown in drilling activities, which may continue as upstream players are prioritizing stockholder returns rather than boosting output. The reduction in drilling activity indicates lower demand for oilfield services, as companies like SLB and Halliburton, which primarily assist upstream operators in setting up oil and gas wells, are impacted by this shift.
Impacts of Failing Energy Transition Goals on Cashflows: The prosperity of companies within the industry hinges greatly on their adeptness in navigating the evolving energy transition landscape. This encompasses the ability of oilfield service providers to efficiently tackle the decarbonization of oil and gas operations while expanding the adoption of inventive, low-carbon and carbon-neutral technologies. Consequently, falling short of energy transition objectives will affect cash flow.
Zacks Industry Rank Indicates Bearish Outlook
The Zacks Oil and Gas – Field Services is a 22-stock group within the broader Zacks Oil - Energy sector. The industry currently carries a Zacks Industry Rank #212, which places it in the bottom 15% of more than 250 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates gloomy near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Before we present a few stocks that you may consider, let’s take a look at the industry’s recent stock-market performance and valuation picture.
Industry Lags S&P 500 & Sector
The Zacks Oil and Gas – Field Services industry has lagged the Zacks S&P 500 composite and the broader Zacks Oil – Energy sector over the past year.
The industry has soared 11% over this period against the S&P 500’s rise of 28.5% and the broader sector’s 19.4% growth.
Industry's Current Valuation
Since oil and gas companies are debt-laden, it makes sense to value them based on the EV/EBITDA (Enterprise Value/Earnings before Interest Tax Depreciation and Amortization) ratio. This is because the valuation metric takes into account not just equity but also the level of debt. For capital-intensive companies, EV/EBITDA is a better valuation metric because it is not influenced by changing capital structures and ignores the effect of non-cash expenses.
On the basis of the trailing 12-month EV/EBITDA, the industry is currently trading at 7.04X compared with the S&P 500’s 18.59X and sector’s 3.90X.
Over the past five years, the industry has traded as high as 12.73X and as low as 1.01X, with a median of 8.16X.
3 Oilfield Services Stocks Trying to Survive Industry Challenges
Archrock
Archrock's acquisition of Total Operations and Production Services (“TOPS”) brings a young, fully electric compression fleet, in turn significantly expanding ARCH’s capacity and improving margins. By retaining the TOPS management team, Archrock, currently carrying a Zacks Rank #3 (Hold), has gained valuable expertise in managing electric-driven compression fleets, positioning itself as a leader in the shift toward electrified natural gas compression.
Baker Hughes
Baker Hughes, with a Zacks Rank of 3, is poised for growth by leveraging its advanced LNG and energy technologies, as demonstrated by its pivotal role in the Louisiana LNG project and strategic expansion in Namibia. The company’s expertise in cutting-edge equipment and infrastructure positions it to capitalize on the rising global energy demand. Its focus on innovation and localization enhances operational efficiency while supporting sustainable energy solutions.
Smart Sand
Smart Sand, carrying a Zacks Rank #3, is a leading manufacturer of Northern White sand, known for its superior quality and cost-effectiveness, and has a solid business model. The Northern White sand serves as a premium proppant in hydraulic fracturing processes to improve the recovery rates of hydrocarbons in both oil and natural gas wells. You can see the complete list of today’s Zacks #1 Rank(Strong Buy) stocks here.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Zacks Industry Outlook Baker Hughes, Archrock and Smart Sand

Strict capital management by upstream energy firms is leading to decreased demand for oilfield services, creating a challenging outlook for the Zacks Oil and Gas- Field Services industry. Companies in this sector must navigate the evolving energy transition landscape effectively to succeed. Consequently, falling short of energy transition objectives could negatively impact their cash flow.
Among the companies in the industry that are likely to survive the business challenges are Baker Hughes Company BKR, Archrock Inc AROC and Smart Sand Inc. SND.
About the Industry
The Zacks Oil and Gas - Field Services industry comprises companies that primarily engage in providing support services to exploration and production players. These companies help in manufacturing, repairing and maintaining wells, drilling equipment, leasing of drilling rigs, seismic testing and transport and directional solutions, among others. Also, the firms help upstream energy players locate oil and natural gas and drill and evaluate hydrocarbon wells. Hence, oilfield services businesses are positively correlated to expenditures from upstream firms. Furthermore, with countries worldwide investing heavily in liquefied natural gas (LNG) terminals, a few oilfield service companies are extending their reach beyond the hydrocarbon fields and capitalizing on contracts for manufacturing equipment used in LNG facilities to decrease carbon emissions.
3 Trends Defining the Oilfield Services Industry's Future
Highly Volatile Business: The demand for oilfield services is predominantly tied to exploration and production activities. Given the reliance of oil explorers and producers on the volatile commodity pricing landscape, the business of oilfield service companies like SLB and Halliburton Company is susceptible to uncertainty.
Lower Upstream Spending: Although the commodity pricing scenario is favorable for exploration and production operations, there has been a slowdown in drilling activities, which may continue as upstream players are prioritizing stockholder returns rather than boosting output. The reduction in drilling activity indicates lower demand for oilfield services, as companies like SLB and Halliburton, which primarily assist upstream operators in setting up oil and gas wells, are impacted by this shift.
Impacts of Failing Energy Transition Goals on Cashflows: The prosperity of companies within the industry hinges greatly on their adeptness in navigating the evolving energy transition landscape. This encompasses the ability of oilfield service providers to efficiently tackle the decarbonization of oil and gas operations while expanding the adoption of inventive, low-carbon and carbon-neutral technologies. Consequently, falling short of energy transition objectives will affect cash flow.
Zacks Industry Rank Indicates Bearish Outlook
The Zacks Oil and Gas – Field Services is a 22-stock group within the broader Zacks Oil - Energy sector. The industry currently carries a Zacks Industry Rank #212, which places it in the bottom 15% of more than 250 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates gloomy near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Before we present a few stocks that you may consider, let’s take a look at the industry’s recent stock-market performance and valuation picture.
Industry Lags S&P 500 & Sector
The Zacks Oil and Gas – Field Services industry has lagged the Zacks S&P 500 composite and the broader Zacks Oil – Energy sector over the past year.
The industry has soared 11% over this period against the S&P 500’s rise of 28.5% and the broader sector’s 19.4% growth.
One-Year Price Performance
Industry's Current Valuation
Since oil and gas companies are debt-laden, it makes sense to value them based on the EV/EBITDA (Enterprise Value/Earnings before Interest Tax Depreciation and Amortization) ratio. This is because the valuation metric takes into account not just equity but also the level of debt. For capital-intensive companies, EV/EBITDA is a better valuation metric because it is not influenced by changing capital structures and ignores the effect of non-cash expenses.
On the basis of the trailing 12-month EV/EBITDA, the industry is currently trading at 7.04X compared with the S&P 500’s 18.59X and sector’s 3.90X.
Over the past five years, the industry has traded as high as 12.73X and as low as 1.01X, with a median of 8.16X.
Trailing 12-Month Enterprise Value-to EBITDA (EV/EBITDA) Ratio
3 Oilfield Services Stocks Trying to Survive Industry Challenges
Archrock
Archrock's acquisition of Total Operations and Production Services (“TOPS”) brings a young, fully electric compression fleet, in turn significantly expanding ARCH’s capacity and improving margins. By retaining the TOPS management team, Archrock, currently carrying a Zacks Rank #3 (Hold), has gained valuable expertise in managing electric-driven compression fleets, positioning itself as a leader in the shift toward electrified natural gas compression.
Price and Consensus: AROC
Baker Hughes
Baker Hughes, with a Zacks Rank of 3, is poised for growth by leveraging its advanced LNG and energy technologies, as demonstrated by its pivotal role in the Louisiana LNG project and strategic expansion in Namibia. The company’s expertise in cutting-edge equipment and infrastructure positions it to capitalize on the rising global energy demand. Its focus on innovation and localization enhances operational efficiency while supporting sustainable energy solutions.
Price and Consensus: BKR
Smart Sand
Smart Sand, carrying a Zacks Rank #3, is a leading manufacturer of Northern White sand, known for its superior quality and cost-effectiveness, and has a solid business model. The Northern White sand serves as a premium proppant in hydraulic fracturing processes to improve the recovery rates of hydrocarbons in both oil and natural gas wells. You can see the complete list of today’s Zacks #1 Rank(Strong Buy) stocks here.
Price and Consensus: SND
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3 Oilfield Services Stocks Set to Thrive Despite Industry Challenges

Exxon Mobil Corporation XOM is reportedly considering selling its petrol stations in Singapore, a move that could generate around $1 billion, according to a Bloomberg news report. The U.S. oil major operates 59 stations in the country under the Esso brand, as per the company's website.
XOM's Strategy to Reallocate Capital
The reported sale aligns with ExxonMobil's strategy to reallocate capital toward areas with higher growth potential. The divestiture has already attracted interest from industry players and investment funds. However, ExxonMobil has not commented on the report.
ExxonMobil’s Legacy in Singapore
ExxonMobil has operated in Singapore for more than 130 years. In addition to its retail network, the company maintains a refining complex, a lubricant plant, a fuels terminal and an LPG bottling plant in the region. Despite the possible sale of its fuel retail network, ExxonMobil’s integrated operations in Singapore continue to play a significant role in its global supply chain.
If finalized, the sale would mark ExxonMobil's second recent divestiture in Southeast Asia. In July, the company sold its Malaysian oil and gas assets to Petronas, marking its exit from Malaysia's upstream sector, where it was once a dominant producer.
This strategic pivot highlights ExxonMobil's focus on optimizing its portfolio while navigating evolving energy market dynamics.
XOM’s Zacks Rank & Key Picks
ExxonMobil currently carries a Zack Rank #3 (Hold).
Investors interested in the energy sector may look at some better-ranked stocks like Smart Sand, Inc. SND, FuelCell Energy FCEL and Nine Energy Service NINE, each presently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Smart Sand is a low-cost producer of high-quality Northern White frac sand, an ideal proppant for hydraulic fracturing and various industrial applications. The company provides proppant and other logistics services for several companies in the oil and gas industry. With sustained oil and gas market demand, SND is expected to see growing demand for its services, reflecting a positive outlook.
FuelCell Energy is a clean energy company offering low-carbon energy solutions. It produces power using flexible fuel sources such as biogas, natural gas and hydrogen. The company designs fuel cells that generate electricity through an electrochemical process that combines fuel with air, thereby reducing carbon emissions and minimizing the environmental impact of power generation. As such, FCEL is anticipated to play a crucial role in the energy transition by enabling industries and communities to shift from traditional fossil fuels to low-carbon alternatives.
Nine Energy Service provides onshore completion and production services for unconventional oil and gas resource development. The company operates across key prolific basins in the United States, including the Permian, Eagle Ford, MidCon, Barnett, Bakken, Rockies, Marcellus and Utica, as well as throughout Canada. With a sustained demand for oil and gas in the future, the demand for NINE’s services is anticipated to increase, which should position it for growth in the long run.
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ExxonMobil Eyes $1B Deal for Singapore Esso Fuel Stations

Exxon Mobil Corporation XOM, along with partners Hess Corporation and CNOOC Limited, continues to negotiate with the government of Guyana over the terms for developing the shallow-water offshore block S8, per a Reuters report. This followed XOM’s successful bid in a late 2022 auction led by president Irfaan Ali’s administration.
According to the report, an ExxonMobil spokesperson confirmed the ongoing talks via email but did not disclose specific plans for the block, for example whether it would be used for carbon capture and storage (CCS) or traditional oil and gas exploration.
Last month, Guyana’s vice president Bharrat Jagdeo stated that ExxonMobil's consortium withdrew from the auction after a proposed carbon sequestration project failed to gain government support. However, Jagdeo clarified on Thursday that ExxonMobil has since reiterated its interest in the block, hinting at a misunderstanding that might have occurred.
The S8 block is part of a broader push by Guyana to develop its oil and gas resources. The government offered 14 blocks in its latest auction. Eight of these blocks received bids from prominent energy firms, including Petronas, TotalEnergies and CNOOC. Jagdeo expressed optimism about finalizing agreements with other bidders, particularly TotalEnergies, in the near future.
The shallow-water block represents a key opportunity for ExxonMobil and its partners to expand their footprint in Guyana, a rapidly growing oil-producing nation. As the consortium’s talks with the Guyanese government progress, it remains to be seen whether the focus will shift toward CCS projects or remain rooted in traditional hydrocarbon exploration.
ExxonMobil's engagement in the shallow-water block aligns with its broader strategy of leveraging global opportunities for growth. Any favorable outcome from these discussions could strengthen its exploration and production portfolio, benefiting long-term shareholders. However, uncertainties surrounding project specifics and potential government negotiations remain.
XOM’s Zacks Rank & Key Picks
ExxonMobil currently carries a Zack Rank #3 (Hold).
Investors interested in the energy sector may look at some better-ranked stocks like Smart Sand, Inc. SND, FuelCell Energy FCEL and Nine Energy Service NINE, each presently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Smart Sand is a low-cost producer of high-quality Northern White frac sand, an ideal proppant for hydraulic fracturing and various industrial applications. The company provides proppant and other logistics services for several companies in the oil and gas industry. With sustained oil and gas market demand, SND is expected to see growing demand for its services, reflecting a positive outlook.
FuelCell Energy is a clean energy company offering low-carbon energy solutions. It produces power using flexible fuel sources such as biogas, natural gas and hydrogen. The company designs fuel cells that generate electricity through an electrochemical process that combines fuel with air, thereby reducing carbon emissions and minimizing the environmental impact of power generation. As such, FCEL is anticipated to play a crucial role in the energy transition by enabling industries and communities to shift from traditional fossil fuels to low-carbon alternatives.
Nine Energy Service provides onshore completion and production services for unconventional oil and gas resource development. The company operates across key prolific basins in the United States, including the Permian, Eagle Ford, MidCon, Barnett, Bakken, Rockies, Marcellus and Utica, as well as throughout Canada. With a sustained demand for oil and gas in the future, the demand for NINE’s services is anticipated to increase, which should position it for growth in the long run.
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ExxonMobil in Talks for Developing Guyana's Shallow-Water Block S8

Smart Sand (SND) reported break-even quarterly earnings per share versus the Zacks Consensus Estimate of $0.01. This compares to earnings of $0.18 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -100%. A quarter ago, it was expected that this company would post a loss of $0.02 per share when it actually produced earnings of $0.02, delivering a surprise of 200%.
Over the last four quarters, the company has surpassed consensus EPS estimates just once.
Smart Sand, which belongs to the Zacks Oil and Gas - Field Services industry, posted revenues of $63.16 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 5.45%. This compares to year-ago revenues of $76.9 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Smart Sand shares have added about 33.4% since the beginning of the year versus the S&P 500's gain of 25.8%.
What's Next for Smart Sand?
While Smart Sand has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Smart Sand: favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #1 (Strong Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.03 on $62.9 million in revenues for the coming quarter and $0.03 on $286.6 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Oil and Gas - Field Services is currently in the top 35% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Drilling Tools International Corp. (DTI), another stock in the same industry, has yet to report results for the quarter ended September 2024. The results are expected to be released on November 14.
This company is expected to post quarterly earnings of $0.06 per share in its upcoming report, which represents a year-over-year change of -57.1%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Drilling Tools International Corp.'s revenues are expected to be $41.7 million, up 9.3% from the year-ago quarter.
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This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
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Smart Sand (SND) Reports Break-Even Earnings for Q3

Following the planned acquisition of Marathon Oil Corporation MRO in the recent past by ConocoPhillips COP, the former has now announced a major layoff from its Houston facility affecting about 500 employees. The company has filed a Worker Adjustment & Retraining Notification with the Texas Workforce Commission.
The company further indicated that the job status of the affected employees would be notified within a month of the close of the merger. While some of the employees will be retrained for transition roles, most are set to face permanent job losses. Although the scope and duration of transition roles are still being defined, more than half are expected to extend beyond six months.
Details of COP’s $22.5B Acquisition of MRO
ConocoPhillips, in May 2024, announced an accord with Marathon Oil to acquire it in an all-stock transaction valued at $22.5 billion. The deal, expected to close in the fourth quarter of 2024, will add to COP’s extensive unconventional oil portfolio. The acquisition will add a high-quality inventory at a low cost and help the company achieve its financial and operational goals. The deal is expected to become attractive for shareholders as it is anticipated to enhance earnings, cash flows and per-share distributions.
Transition and Synergy
Although the merger is a strategic move for the company to expand its portfolio and streamline its operations, it is challenging for the employees who are about to face layoffs. Both companies share similar values focused on safe operations and long-term shareholder value; therefore, the merger would improve performance and reduce operating costs.
MRO and COP’s Zacks Rank and Key Picks
Houston, TX-based Marathon Oil Corporation is a leading oil and natural gas exploration and production company with operations in the United States and Africa. Currently, MRO has a Zacks Rank #4 (Sell).
Headquartered in Houston, TX, ConocoPhillips is involved in the exploration and production of oil and natural gas. Currently, COP has a Zacks Rank #3 (Hold).
Investors interested in the energy sector might look at some better-ranked stocks like Smart Sand, Inc. SND and Nine Energy Service, Inc. NINE.While Smart Sand currently sports a Zacks Rank #1 (Strong Buy), Nine Energy carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Smart Sand produces northern white raw frac sand for the oil and gas industry. It offers proppant and related logistics services for oil and gas recovery from unconventional wells. SND’s expected EPS (earnings per share) growth rate for the next quarter is 125%, which compares favorably with the industry's growth rate of 13.68%.
Nine Energy Service provides onshore completion and production services for unconventional oil and gas resource development. NINE’s expected EPS growth rate for the next year is 35.77%, which compares favorably with the industry's growth rate of 19.80%.
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This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
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Marathon Oil and ConocoPhillips' $22.5B Deal Sparks Major Layoffs

For Immediate Release
Chicago, IL – October 25, 2024 – Today, Zacks Equity Research discusses Baker Hughes Co. BKR, Archrock Inc AROC, Smart Sand Inc. SND, SLB SLB and Halliburton Co. HAL.
Industry: Oilfield Services
Link: https://www.zacks.com/commentary/2356718/3-oilfield-services-stocks-set-to-escape-industry-weakness
Strict capital discipline among upstream energy companies is reducing demand for oilfield services, casting a bleak outlook for the Zacks Oil and Gas- Field Services industry. The success of companies in this space hinges on their ability to adeptly manage the shifting energy transition landscape. As a result, failing to achieve energy transition goals could have a detrimental effect on cash flow.
Among the companies in the industry that are likely to survive the business challenges are Baker Hughes Co., Archrock Inc and Smart Sand Inc.
About the Industry
The Zacks Oil and Gas - Field Services industry comprises companies that primarily engage in providing support services to exploration and production players. These companies help in manufacturing, repairing and maintaining wells, drilling equipment, leasing of drilling rigs, seismic testing and transport and directional solutions, among others.
Also, the firms help upstream energy players locate oil and natural gas and drill and evaluate hydrocarbon wells. Hence, oilfield services businesses are positively correlated to expenditures from upstream firms.
Furthermore, with countries worldwide investing heavily in liquefied natural gas (LNG) terminals, a few oilfield service companies are extending their reach beyond the hydrocarbon fields and capitalizing on contracts for manufacturing equipment used in LNG facilities to decrease carbon emissions.
3 Trends Defining the Oilfield Services Industry's Future
Highly Volatile Business: The demand for oilfield services is predominantly tied to exploration and production activities. Given the reliance of oil explorers and producers on the volatile commodity pricing landscape, the business of oilfield service companies like SLB and Halliburton Co. is susceptible to uncertainty.
Lower Upstream Spending: Although the commodity pricing scenario is favorable for exploration and production operations, there has been a slowdown in drilling activities, which may continue as upstream players are prioritizing stockholder returns rather than boosting output. The reduction in drilling activity indicates lower demand for oilfield services, as companies like SLB and Halliburton, which primarily assist upstream operators in setting up oil and gas wells, are impacted by this shift.
Impacts of Failing Energy Transition Goals on Cashflows: The prosperity of companies within the industry hinges greatly on their adeptness in navigating the evolving energy transition landscape. This encompasses the ability of oilfield service providers to efficiently tackle the decarbonization of oil and gas operations while expanding the adoption of inventive, low-carbon and carbon-neutral technologies. Consequently, falling short of energy transition objectives will affect cash flow.
Zacks Industry Rank Indicates Bearish Outlook
The Zacks Oil and Gas – Field Services is a 22-stock group within the broader Zacks Oil - Energy sector. The industry currently carries a Zacks Industry Rank #164, which places it in the bottom 34% of more than 250 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates gloomy near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Before we present a few stocks that you may consider, let’s take a look at the industry’s recent stock-market performance and valuation picture.
Industry Lags S&P 500 & Sector
The Zacks Oil and Gas – Field Services industry has lagged the Zacks S&P 500 composite and the broader Zacks Oil – Energy sector over the past year.
The industry has declined 12.5% over this period against the S&P 500’s rise of 40.5% and the broader sector’s 5.8% growth.
Industry's Current Valuation
Since oil and gas companies are debt-laden, it makes sense to value them based on the EV/EBITDA (Enterprise Value/Earnings before Interest Tax Depreciation and Amortization) ratio. This is because the valuation metric takes into account not just equity but also the level of debt. For capital-intensive companies, EV/EBITDA is a better valuation metric because it is not influenced by changing capital structures and ignores the effect of non-cash expenses.
On the basis of the trailing 12-month EV/EBITDA, the industry is currently trading at 6.75X compared with the S&P 500’s 19.33X and sector’s 3.35X.
Over the past five years, the industry has traded as high as 12.73X and as low as 1.01X, with a median of 8.16X.
3 Oilfield Services Stocks Trying to Survive Industry Challenges
Archrock
Archrock's acquisition of Total Operations and Production Services (TOPS) brings a young, fully electric compression fleet, significantly expanding its capacity and improving margins. By retaining the TOPS management team, Archrock has gained valuable expertise in managing electric-driven compression fleets, positioning itself as a leader in the shift toward electrified natural gas compression.
Baker Hughes
Baker Hughes has been experiencing substantial growth in gas infrastructure projects, securing orders in strategic regions such as the Middle East and Latin America. BKR, with a Zacks Rank of 3, also continues to expand its digital and artificial intelligence (AI) offerings, such as its collaboration with Repsol to develop next-generation AI capabilities for upstream production, further improving operational efficiency.
Smart Sand
The company is a leading manufacturer of Northern White sand, known for its superior quality and cost-effectiveness and it has a solid business model. The Northern White sand serves as a premium proppant in hydraulic fracturing processes to improve the recovery rates of hydrocarbons in both oil and natural gas wells. Smart Sand currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rankstocks here.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Zacks Industry Outlook Highlights Baker Hughes, Archrock, Smart Sand, SLB and Halliburton

Smart Sand (SND) came out with quarterly earnings of $0.02 per share, beating the Zacks Consensus Estimate of a loss of $0.02 per share. This compares to earnings of $0.17 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 200%. A quarter ago, it was expected that this company would post earnings of $0.05 per share when it actually produced a loss of $0.01, delivering a surprise of -120%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
Smart Sand, which belongs to the Zacks Oil and Gas - Field Services industry, posted revenues of $73.8 million for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 8.29%. This compares to year-ago revenues of $74.78 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Smart Sand shares have lost about 4.7% since the beginning of the year versus the S&P 500's gain of 12.1%.
What's Next for Smart Sand?
While Smart Sand has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Smart Sand: unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.01 on $69.9 million in revenues for the coming quarter and -$0.02 on $284.25 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Oil and Gas - Field Services is currently in the bottom 11% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the broader Zacks Oils-Energy sector, Canadian Solar (CSIQ), is yet to report results for the quarter ended June 2024. The results are expected to be released on August 22.
This solar wafers manufacturer is expected to post quarterly loss of $0.01 per share in its upcoming report, which represents a year-over-year change of -100.4%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Canadian Solar's revenues are expected to be $1.64 billion, down 30.5% from the year-ago quarter.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Smart Sand (SND) Surpasses Q2 Earnings and Revenue Estimates

Fintel reports that on August 14, 2023, Piper Sandler maintained coverage of Smart Sand (NASDAQ:SND) with a Neutral recommendation.
Analyst Price Forecast Suggests 16.50% Upside
As of August 2, 2023, the average one-year price target for Smart Sand is 2.30. The forecasts range from a low of 2.02 to a high of $2.62. The average price target represents an increase of 16.50% from its latest reported closing price of 1.97.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Smart Sand is 269MM, a decrease of 11.07%. The projected annual non-GAAP EPS is 0.00.
What is the Fund Sentiment?
There are 79 funds or institutions reporting positions in Smart Sand. This is a decrease of 3 owner(s) or 3.66% in the last quarter. Average portfolio weight of all funds dedicated to SND is 0.01%, a decrease of 42.92%. Total shares owned by institutions decreased in the last three months by 36.27% to 8,880K shares. The put/call ratio of SND is 0.09, indicating a bullish outlook.
What are Other Shareholders Doing?
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 860K shares representing 2.09% ownership of the company. No change in the last quarter.
Sprott holds 750K shares representing 1.82% ownership of the company. No change in the last quarter.
Sprott Focus Trust holds 750K shares representing 1.82% ownership of the company. No change in the last quarter.
VEXMX - Vanguard Extended Market Index Fund Investor Shares holds 686K shares representing 1.66% ownership of the company. In it's prior filing, the firm reported owning 336K shares, representing an increase of 50.98%. The firm increased its portfolio allocation in SND by 89.53% over the last quarter.
Bridgeway Capital Management holds 498K shares representing 1.21% ownership of the company. In it's prior filing, the firm reported owning 496K shares, representing an increase of 0.28%. The firm decreased its portfolio allocation in SND by 15.78% over the last quarter.
Smart Sand Background Information
(This description is provided by the company.)
Smart Sand Inc. is a fully integrated frac sand supply and services company, offering complete mine to wellsite proppant logistics, storage and management solutions to its customers. Smart Sand produces low-cost, high quality Northern White frac sand and offer proppant logistics, storage and management solutions to its customers through its in-basin transloading terminal and its SmartSystems wellsite proppant storage capabilities. Smart Sand provide its products and services primarily to oil and natural gas exploration and production companies and oilfield service companies. Smart Sand owns and operate premium frac sand mines and related processing facilities in Wisconsin and Illinois, which have access to three Class I rail lines, allowing us to deliver products substantially anywhere in the United States and Canada.
Additional reading:
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Smart Sand, Inc.

Price history and volume

Shares 360

Investment risk — low

Investment potential — low

Security parameters