Written by: Suhaib Shams
Fluctuations in energy costs, with gasoline prices rising by 34% and heating oil increasing by 72%, directly impact corporate profit margins. In this landscape, a group of US energy companies stands out for having a greater ability to capitalize on pricing power resulting from rising oil and natural gas prices.
WhiteHawk Minerals and natural gas expansions
WhiteHawk Minerals, based in Philadelphia, is a company operating in mineral rights interests focused on natural gas across major shale basins in the United States. The company generates approximately $77 million from oil and gas mineral interests, providing direct exposure to royalty revenues.
Increasing demand for natural gas from new power plants linked to data centers and artificial intelligence, including 21 planned facilities near the company's sites in the Appalachian region, is expected to support activity on its lands, which may influence long-term cash flow and royalty streams.
Ranger Energy Services and well services
Ranger Energy Services provides high-specification rig services and production support to oil and gas companies in the United States. Its operations depend closely on activity levels in domestic drilling and well maintenance operations.
The company generates revenues of approximately $395.7 million from high-spec rigs, $152.2 million from processing solutions and auxiliary services, and $58.8 million from Wireline services within the United States. The acquisition of American Well Services has contributed to increasing the company's workover rig fleet by approximately 25% in the Permian Basin, enhancing its ability to support higher utilization levels and a broader customer base.
Select Water Solutions and water infrastructure
Select Water Solutions specializes in water sourcing, treatment, recycling, and disposal, as well as chemicals necessary for continuous oil and gas drilling and production operations in the United States. The company generates approximately $743.8 million from water services, $361.3 million from water infrastructure, and $339.9 million from chemical technologies.
The acquisition of Pilot Water Solutions, which grants the company a recycling capacity of up to 3.8 million barrels per day and 4.8 million barrels per day of permitted disposal capacity, is expected to contribute to the expansion of the water infrastructure sector, so that it will contribute about 70% of the total EBITDA by 2027.
