Borr Drilling vs. ProPetro: Which Energy Stock Profits From Higher Prices in 2026?

Choosing between offshore and land-based energy services requires balancing global reach against regional dominance. Borr Drilling (NYSE:BORR) and ProPetro (NYSE:PUMP) represent these two distinct paths for investors eyeing the oilfield services industry.

Borr Drilling operates a premium fleet of shallow-water rigs across international markets, while ProPetro provides essential completion services in the heart of American shale production. Both companies are navigating a shifting energy landscape, making their different financial profiles and geographic exposures critical for investors to understand before deciding which stock is the better buy.

The case for Borr Drilling

Borr Drilling is a leading contractor in the global energy market, specializing in modern jack-up rigs operating in water depths up to 400 feet. The company maintains a global footprint, with recent operations concentrated in high-demand regions such as Saudi Arabia and Mexico. While many offshore drillers operate older equipment, Borr Drilling manages 29 premium rigs, though its major customers are not disclosed in its recent financial filings.

In FY 2025, the company reported revenue of approximately $1.0 billion, representing a 30% increase over the previous year. Net income for the period was roughly $45 million, down from $82 million in 2024.

As of its December 2025 balance sheet, the debt-to-equity ratio is roughly 1.8x. This metric compares total debt to shareholder equity and suggests the company uses a significant amount of leverage to fund its fleet. The current ratio, which measures the ability to pay short-term debts by dividing current assets by liabilities, is approximately 1.9x. Free cash flow, or the cash remaining after covering operating expenses, reached nearly $127.4 million for the year, a swing from prior negative cash flows.

The case for ProPetro Holding

ProPetro Holding Corp provides hydraulic fracturing and completion services primarily to upstream companies in the Permian Basin of West Texas and Southeast New Mexico. Its business strategy is heavily concentrated in this prolific region, allowing for operational efficiency but creating significant customer concentration. Major customers include ExxonMobil (NYSE:XOM) (24.9%), Occidental Petroleum (NYSE:OXY) (13.7%), EOG Resources (NYSE:EOG) (12.1%), and Permian Resources (NYSE:PR) (11.2%). Customer concentration like this adds a layer of risk to the business.

In FY 2025, revenue reached nearly $1.3 billion, down approximately 12% from the prior year. Despite lower revenue, the company achieved a net income of roughly $824,000, a notable recovery from the heavy losses reported in the previous fiscal year. This resulted in a net margin of nearly 0.1%, the percentage of revenue remaining after all operating and non-operating expenses are paid. The narrow margin reflects the highly competitive and capital-intensive nature of the oilfield services sector during periods of fluctuating energy demand.

As of its December 2025 balance sheet, the company maintains a debt-to-equity ratio of approximately 0.3x. This ratio measures total debt relative to shareholders’ equity, and a lower ratio suggests the company is not overly reliant on borrowed funds. The current ratio, which compares short-term assets to short-term liabilities, is roughly 0.2x, indicating a healthy ability to cover immediate obligations. For FY 2025, the company generated free cash flow of approximately $46 million. Free cash flow is the cash remaining from operations after paying for capital expenditures, such as equipment and machinery.

Risk profile comparison

Borr Drilling faces risks inherent to the cyclical nature of the offshore drilling industry, where demand for rigs is tied to global commodity prices. Operating internationally exposes the company to geopolitical instability and varying regulatory environments in regions like the Middle East and Latin America. Additionally, the company must consistently secure high-day-rate contracts for its 29 rigs to service its relatively high debt load. Any prolonged downturn in shallow-water drilling activity could strain its ability to cover these fixed costs.

ProPetro is primarily exposed to geographic concentration, as its operations are almost entirely focused in the Permian Basin. This leaves the company vulnerable to regional pipeline bottlenecks, localized weather events, or regulatory changes in Texas and New Mexico. Furthermore, the company faces significant revenue risk due to the upcoming expiration of a service agreement with an affiliate of ExxonMobil in late 2026. If ProPetro cannot successfully redeploy that equipment at similar rates, its future earnings estimates could be negatively impacted.

Valuation comparison

ProPetro appears significantly cheaper based on its Forward P/E, while both companies share an identical P/S ratio.

Sector benchmark uses the SPDR XLE sector ETF.
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.

Which stock would I buy in 2026?

Borr drilling recently closed a deal that will expand its fleet to 34 rigs, allowing it to better serve the Mexican market. Unfortunately, the company is locked into leases on its existing fleet, which means Borr won’t see the benefit from higher oil prices due ot the Iran war for perhaps a year. That means Borr sales for 2026 are expected to inch up to $1.054 billion, a 3% rise. Worse, the business will swing back to a net loss for the year, probably in the $50 million range, due to delays with some customers and higher operating expenses.

ProPetro is the better choice in 2026. The oilfield services business is improving domestically, thanks to the Iran war and the crude oil price rise it has brought. The company itself is exposed to higher vehicle fuel prices with its own fleet, but it has been aggressively switching to natural gas-powered rigs that are cheaper to operate due to the discounted price of LNG for vehicles.

Overall, business hasn’t been great for ProPetro, with sales and margins decreasing in the first quarter of 2026. Still, while revenue is expected to be flat to slightly decline in 2026 compared to 2025, ProPetro has a promising business in freestanding oil- and gas-powered microgrids, called PROPWR. The growth industry for such freestanding microgrids? AI data centers.

There’s a case in the long run for Borr, Drilling, but ProPetro will show better operating results in 2026.

Brendan Coffey has no position in any of the stocks mentioned. The Motley Fool recommends EOG Resources and Occidental Petroleum. The Motley Fool has a disclosure policy.