Direct Answer
42 SEC filers are classified under the Standard Industrial Classification code that describes the oil & gas exploration & production industry, and their latest annual reports show $133.1 billion of combined revenue and a median operating margin of 8.4%. Investors should still evaluate its revenue model, industry-specific KPIs, valuation framework and the risks that can change the group's economics.
Industry Overview
Oil and gas exploration and production companies find, drill and produce crude oil and natural gas and sell it at market prices. Profit depends on commodity prices, the cost of finding and lifting oil, and how fast wells decline. The first numbers to compare across companies here are production growth, reserve replacement and operating cost per barrel of oil equivalent.
Key Industry Metrics
- Production growth: Change in oil and gas output over time. Growth is only valuable if it earns a return above the cost of drilling; fast growth with weak free cash flow is a caution.
- Reserve replacement: New reserves added relative to volume produced. A ratio above one maintains the resource base, but it matters how much was spent to add the reserves.
- Operating cost per barrel of oil equivalent: Cost of lifting, gathering and taxes per barrel equivalent. Lower costs protect margin when prices drop, but compare using the same definition across companies.
- Free cash flow: Cash left after operating costs and capital spending. It funds dividends, buybacks and debt reduction; check it at lower prices to see how well the model holds.
- Net debt to cash flow: Borrowings less cash relative to annual operating cash flow. Lower ratios leave room to survive price falls; rising ratios mean borrowing is funding drilling.
Primary Macro Drivers
- Oil and gas prices: Revenue is volume times price, so commodity moves flow straight to cash flow and decide how much can be reinvested or returned.
- Drilling and service costs: Rig and service prices set cost to drill each well, so cost inflation raises operating cost per barrel of oil equivalent and cuts free cash flow.
- Well productivity: Better well results raise output for the same spending, lifting production growth and lowering cost per unit.
- Capital discipline and shareholder returns: Choices to hold spending flat and pay out cash limit production growth but lift free cash flow and net debt reduction.
Major Risks
- Commodity price swings: Lower prices cut cash flow and borrowing capacity quickly; watch net debt to cash flow and breakeven prices.
- Rapid well decline requiring reinvestment: Output from new wells falls fast, so spending must continue to hold volumes; watch the reinvestment rate and reserve replacement.
- Hedging losses: Hedges can cap upside or create losses when prices rise, and affect reported results; watch hedged volumes and settlement amounts.
- Regulatory and environmental restrictions: Permit limits, methane rules or drilling bans can delay wells and add cost; watch permit timelines and compliance spending.
Industry Characteristics
| Characteristic | Profile |
|---|---|
| Cyclicality | Cyclical |
| Capital Intensity | High |
| Regulatory Intensity | Medium |
| Industry Maturity | Mature |
| Geographic Importance | U.S. / Global |
Oil & Gas Exploration & Production Filers in the SEC Record
42 companies with annual reports in the dataset are classified by the SEC in the Standard Industrial Classification code 1311. Their latest fiscal years end between 2025 and 2026, and together they reported $133.1 billion of revenue. Median revenue growth over the prior year was 5.4%. Median operating margin was 8.4% and median net margin 8.2%. Median total liabilities were 41% of total assets, and 29 of 42 reported a profit in their latest year.
| Company | Revenue | Growth | Operating margin | Net margin | Year |
|---|---|---|---|---|---|
| Eog Resources Inc | $22.6 billion | -4.5% | 28.2% | 22.0% | FY 2025 |
| Occidental Petroleum Corp | $21.6 billion | -1.9% | n/a | 11.0% | FY 2025 |
| Devon Energy Corp | $17.2 billion | 7.8% | n/a | 15.4% | FY 2025 |
| Diamondback Energy, Inc. | $15.0 billion | 35.8% | 8.4% | 10.3% | FY 2025 |
| Expand Energy Corp | $12.1 billion | 186.3% | 20.4% | 15.0% | FY 2025 |
| Eqt Corp | $8.6 billion | 63.9% | 37.6% | 23.6% | FY 2025 |
| Antero Resources Corp | $5.3 billion | 22.0% | 16.7% | 12.8% | FY 2025 |
| Permian Resources Corp | $5.1 billion | 1.3% | 28.9% | 0.0% | FY 2025 |
The 8 largest of 42 by revenue. Source: each company's own annual report as filed with the SEC (XBRL data), figures in U.S. dollars. A company's SIC code reflects its main business as the SEC records it, so it can differ from how an index provider or analyst classifies the company, and a diversified group appears under only one code.
Where to Go Next
The Oil & Gas Exploration & Production guide describes how the industry earns money, what to measure and what can go wrong. To see how it compares, read the neighbouring industries in the same sector, then apply the same checks to a specific company.
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Frequently Asked Questions
What are the main KPIs for the Oil & Gas Exploration & Production industry?
Key performance indicators for the Oil & Gas Exploration & Production industry include: Production growth, Reserve replacement, Operating cost per barrel of oil equivalent, Free cash flow, Net debt to cash flow. Which matter most depends on the company's model, so compare them across several companies rather than relying on one.
How cyclical is the Oil & Gas Exploration & Production industry?
The Oil & Gas Exploration & Production industry is cyclical, meaning its revenues and earnings tend to expand during economic expansions and contract during downturns. Investors should monitor leading economic indicators and interest rate trends when evaluating timing.
What are the biggest risks in the Oil & Gas Exploration & Production industry?
The primary risks for Oil & Gas Exploration & Production companies include: Commodity price swings, Rapid well decline requiring reinvestment, Hedging losses, Regulatory and environmental restrictions. Investors should assess each company's exposure to these factors and its track record of navigating them.