The oil and gas sector plays an important role in the economy by drilling, extracting, and processing oil and gas. Because 澳洲幸运5官方开奖结果体彩网:operating expenses vary widely with the size of oil and gas companies, comparing average operating expenses might not provide the insight you are looking for as an investor or analyst. Instead, financial professionals typically assess the average ope✨rating expenses by looking at the average operating expense margin, which is expressed as a percentage of operating expenses in the sector's total revenues. 

Oil and Gas Sector

The oil and gas sector consists of fully integrated companies that handle most aspects of oil and gas drilling and marketing. Then there are companies that specialize in areas, such as exploring and p𝕴roduction, and oil well services and equipment. 🌟 

Key integrated oil and gas companies include 🀅the oil majors and big-name companies, such as Chevron and ExxonMobil. There are many exploration and production companies, which tend to focus on finding and drilling for oil. Notable names here include Occidental, Apache Corporation, Devon Energy, Dominion Energy, and EOG Resources. 

澳洲幸运5官方开奖结果体彩网:Oil well equipment and service companies provide support services to exploration and production companies. They generally do not produce oil. Notable companies in this space include Baker Hughes and Halliburton.&nbsꦇp; 

Of all the industries within the oil and gas sector, oil and gas explorౠation and production has the largest number of firms. The integrated gas and oil industry has the lowest number of companies. 

Operating Margin

The operating expenses margin differs widely in the oil and gas sector. Oil and gas production companies have some of the highest margins among all companies in the sector, with an operating margin of 39.38% as of the third quarter of 2024. Oil and gas well services and equipment boast the lowest operating expenses margin of 10.33% as of the second quarter of 2024 (last data available).

The largest determinant of the size of the operating expenses margin is depreciation expense and the ability of oil and gas companies to manage their fixed costs such as selli𒈔ng, general and administrative expenses (SG&A).

Other Margins

On a net margin basis, the integrated oil and gas companies have the best margins. The oil and gas production industry is a close second. Meanwhile, the oil and gas services and equipment have slim margins. Meanwhile, on a gross margin basis, the oil and gas production industry enjoy gross margins of over 50%, as of third quarter of 2024. Integrated oil and gas companies have margins of 47.78%, while service and equipment services companies clock in at 81.52%, as of the second quarter of 2024.