We've got a twofer today, folks. Smith International (NYSE:SII) and Southwestern Energy (NYSE:SWN) both reported results on Monday, and the firms essentially tell two sides of the same story.

Smith is an oilfield services player with a market cap about half the size of Weatherford (NYSE:WFT) and Baker Hughes (NYSE:BHI). Despite its smaller size, the firm's still a significant competitor in various areas like drilling fluids, solids control, and drill bits. Last year's acquisition of W-H Energy Services has also enhanced Smith's position in directional drilling and downhole measurement. Just 37% of Smith's oilfield operations revenue came from the U.S. in 2008, so it's a pretty globally diversified player.

Earnings in the first quarter took a hit from a big headcount chop (14% of the North American workforce), but after backing out this charge, operating income still fell by roughly half from the prior quarter. Smith's international business, which only saw a 9% sequential revenue decline, just couldn't save it from a slumping North American market, which accounts for most of the deterioration to date.

You'd hardly suspect Southwestern Energy (NYSE:SWN) of contributing to this energy services squeeze, seeing as it's more than doubled production in the Fayetteville shale since last year. But even this low-cost leader is pulling back, having cut its cap-ex by another $100 million in response to grim natural gas prices. Even with ample hedges in place, Southwestern still realized less than $6 per thousand cubic feet on its gas sales.

On the bright side, the new budget reflects flat spending compared to 2008. That puts Southwestern in pretty limited company, with firms like Devon Energy (NYSE:DVN) planning on spending half of what they did in 2008. BP just dialed back its budget for the second time, and even Buffett-backed ConocoPhillips (NYSE:COP) has pulled back a bit this year.

I don't talk about this company as often as I should, but Southwestern is one of the finest independent producers in this country. The Fayetteville has been a home run for both it and fellow shale dweller Chesapeake Energy (NYSE:CHK) -- whose position here is just half the size of Southwestern's. The firm's also got a decent foothold in the Marcellus shale, which may offer some substantial upside.

Chesapeake Energy is an Inside Value recommendation. Drill into any of our Foolish newsletters free for 30 days.

Fool contributor Toby Shute doesn't have a position in any company mentioned. Check out his CAPS profile or follow his articles using Twitter or RSS. The Motley Fool has a disclosure policy.