We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
FLOC vs. PTEN: Which Oilfield Services Stock Looks Better?
Read MoreHide Full Article
Key Takeaways
FLOC Q1 EBITDA margin hit 40.8% and rental revenues were nearly 60%; PTEN posted $205M adjusted EBITDA.
FLOC bought Valiant in March 2026 to add ESP; PTEN is upgrading fleet to natural gas-powered gear.
FLOC 7x fwd P/B vs PTEN ~1.5x; 2027 EPS 14% for FLOC vs 130% for PTEN.
The oilfield services industry is gaining attention as producers focus on improving drilling efficiency, maximizing output from existing wells and responding to a more constructive energy-price backdrop. Flowco Holdings (FLOC - Free Report) and Patterson-UTI Energy (PTEN - Free Report) both serve this market, but in different ways. Flowco is more focused on production optimization, artificial lift and emissions-management solutions, while Patterson-UTI has broader exposure to drilling, completions and drilling products. Both companies recently reported better-than-expected first-quarter results, but their risk-reward profiles are not identical.
The Case for Flowco
Flowco delivered a strong first quarter of 2026, with revenues of $209.5 million, adjusted EBITDA of $85.5 million and free cash flow of $52.3 million. Its business is tied closely to helping oil and gas producers get more from wells that are already producing. This is important because many producers today are focused on improving returns from existing assets rather than only drilling new wells.
The company’s Production Solutions segment is a key growth driver. In the first quarter, the segment generated $140 million in revenues and $61 million of adjusted segment EBITDA. Flowco benefits from demand for high-pressure gas lift, electric submersible pumps and other artificial-lift technologies that help bring oil and gas to the surface more efficiently. Its acquisition of Valiant Artificial Lift Solutions, completed in March 2026, expanded Flowco into electric submersible pumps, giving it a broader product portfolio across a well’s life cycle.
Flowco also has a strong margin profile. Its first-quarter adjusted EBITDA margin was 40.8%, helped by a rental-heavy model that provides recurring revenues and better visibility. Rental revenues represented nearly 60% of total revenues during the quarter, which makes the company’s cash flows more stable than a purely equipment-sales business.
The Case for Patterson-UTI
Patterson-UTI is a larger and more diversified oilfield services company. It operates in drilling services, completion services and drilling products, giving it broader exposure to any improvement in U.S. land drilling and completions activity. In the first quarter of 2026, PTEN reported total revenues of $1.1 billion and adjusted EBITDA of $205 million. Although it posted a net loss, the loss was narrower than expected.
PTEN’s Drilling Services segment reported $352 million in revenues and $134 million of adjusted gross profit. The company averaged 92 U.S. rigs working during the quarter. Management expects to reactivate rigs as activity improves, with a second-quarter exit rate above the quarterly average. This gives Patterson-UTI good leverage for a rebound in drilling activity.
Its Completion Services business also looks well-positioned. First-quarter revenues were $680 million, and management noted that utilization of active equipment remained high despite winter storm disruptions. PTEN is also focused on upgrading its fleet with natural gas-powered equipment instead of extending the life of older diesel assets. This should help it remain competitive as customers increasingly prefer cleaner and more efficient technologies.
Price Performance
Both stocks have rallied sharply, reflecting investor optimism about the oilfield services space. FLOC has gained nearly 70% over the past six months, while PTEN has surged 118.4%. PTEN’s stronger share-price performance suggests that investors are more aggressively pricing in a recovery in drilling and completions activity. However, such a sharp move also means that expectations are higher for both stocks.
Image Source: Zacks Investment Research
Valuation
Valuation favors Patterson-UTI. On a forward price-to-book basis, FLOC trades at more than 7X, while PTEN trades at about 1.5X. This is a wide gap. Flowco’s premium valuation reflects its higher margins, rental model and growth potential from Valiant. Still, for a layman, PTEN looks cheaper on this measure.
Image Source: Zacks Investment Research
EPS Estimate Revisions
The Zacks Consensus Estimate for PTEN’s earnings points to a 54% decline in 2026, followed by 130% growth in 2027.
Image Source: Zacks Investment Research
For FLOC, the estimate indicates a 34% decline in 2026 and 14% growth in 2027. This means both companies face some near-term earnings pressure, but PTEN is expected to show a much sharper rebound next year. That stronger projected recovery supports the bullish case for Patterson-UTI.
Image Source: Zacks Investment Research
Conclusion
Flowco is a high-quality, specialized oilfield services company with strong margins, recurring rental revenues and added growth potential from the Valiant acquisition. However, Patterson-UTI offers broader exposure to a recovery in drilling and completions, trades at a much lower valuation and has stronger expected earnings growth in 2027. Given these factors, PTEN carries a Zacks Rank #2 (Buy) and therefore looks slightly better at the moment than FLOC, which is a Zacks Rank #3 (Hold) stock.
View the Zacks #1 Rank List
Image: Bigstock
FLOC vs. PTEN: Which Oilfield Services Stock Looks Better?
Key Takeaways
The oilfield services industry is gaining attention as producers focus on improving drilling efficiency, maximizing output from existing wells and responding to a more constructive energy-price backdrop. Flowco Holdings (FLOC - Free Report) and Patterson-UTI Energy (PTEN - Free Report) both serve this market, but in different ways. Flowco is more focused on production optimization, artificial lift and emissions-management solutions, while Patterson-UTI has broader exposure to drilling, completions and drilling products. Both companies recently reported better-than-expected first-quarter results, but their risk-reward profiles are not identical.
The Case for Flowco
Flowco delivered a strong first quarter of 2026, with revenues of $209.5 million, adjusted EBITDA of $85.5 million and free cash flow of $52.3 million. Its business is tied closely to helping oil and gas producers get more from wells that are already producing. This is important because many producers today are focused on improving returns from existing assets rather than only drilling new wells.
The company’s Production Solutions segment is a key growth driver. In the first quarter, the segment generated $140 million in revenues and $61 million of adjusted segment EBITDA. Flowco benefits from demand for high-pressure gas lift, electric submersible pumps and other artificial-lift technologies that help bring oil and gas to the surface more efficiently. Its acquisition of Valiant Artificial Lift Solutions, completed in March 2026, expanded Flowco into electric submersible pumps, giving it a broader product portfolio across a well’s life cycle.
Flowco also has a strong margin profile. Its first-quarter adjusted EBITDA margin was 40.8%, helped by a rental-heavy model that provides recurring revenues and better visibility. Rental revenues represented nearly 60% of total revenues during the quarter, which makes the company’s cash flows more stable than a purely equipment-sales business.
The Case for Patterson-UTI
Patterson-UTI is a larger and more diversified oilfield services company. It operates in drilling services, completion services and drilling products, giving it broader exposure to any improvement in U.S. land drilling and completions activity. In the first quarter of 2026, PTEN reported total revenues of $1.1 billion and adjusted EBITDA of $205 million. Although it posted a net loss, the loss was narrower than expected.
PTEN’s Drilling Services segment reported $352 million in revenues and $134 million of adjusted gross profit. The company averaged 92 U.S. rigs working during the quarter. Management expects to reactivate rigs as activity improves, with a second-quarter exit rate above the quarterly average. This gives Patterson-UTI good leverage for a rebound in drilling activity.
Its Completion Services business also looks well-positioned. First-quarter revenues were $680 million, and management noted that utilization of active equipment remained high despite winter storm disruptions. PTEN is also focused on upgrading its fleet with natural gas-powered equipment instead of extending the life of older diesel assets. This should help it remain competitive as customers increasingly prefer cleaner and more efficient technologies.
Price Performance
Both stocks have rallied sharply, reflecting investor optimism about the oilfield services space. FLOC has gained nearly 70% over the past six months, while PTEN has surged 118.4%. PTEN’s stronger share-price performance suggests that investors are more aggressively pricing in a recovery in drilling and completions activity. However, such a sharp move also means that expectations are higher for both stocks.
Valuation
Valuation favors Patterson-UTI. On a forward price-to-book basis, FLOC trades at more than 7X, while PTEN trades at about 1.5X. This is a wide gap. Flowco’s premium valuation reflects its higher margins, rental model and growth potential from Valiant. Still, for a layman, PTEN looks cheaper on this measure.
EPS Estimate Revisions
The Zacks Consensus Estimate for PTEN’s earnings points to a 54% decline in 2026, followed by 130% growth in 2027.
For FLOC, the estimate indicates a 34% decline in 2026 and 14% growth in 2027. This means both companies face some near-term earnings pressure, but PTEN is expected to show a much sharper rebound next year. That stronger projected recovery supports the bullish case for Patterson-UTI.
Conclusion
Flowco is a high-quality, specialized oilfield services company with strong margins, recurring rental revenues and added growth potential from the Valiant acquisition. However, Patterson-UTI offers broader exposure to a recovery in drilling and completions, trades at a much lower valuation and has stronger expected earnings growth in 2027. Given these factors, PTEN carries a Zacks Rank #2 (Buy) and therefore looks slightly better at the moment than FLOC, which is a Zacks Rank #3 (Hold) stock.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.