E&P - Learnings From Earnings: Oil Edition

Research evidence excerpt

E&P - Learnings From Earnings: Oil Edition

Truist Securities

Equity Research Report May 14, 2026

ENERGY

E&P - Learnings From Earnings: Oil

Edition Gabe Daoud With the 1Q26 earnings cycle in the rearview, we highlight key themes and learnings that

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Gabe.Daoud@truist.com emerged from our E&P coverage. We also summarize updated view points from EIA

and IEA monthly outlooks. Most operators remain reticent on increasing activity given

continued market volatility, though some look to capture price torque. Those who made Frankie DiGiovanna changes to ROC plans appeared punished the most, while those who demonstrated 212-326-3158

Francis.DiGiovanna@truist.com continued efficiency gains were rewarded. On that front, longer laterals, water recycling,

and faster D&C times were pivotal.

Eric Look

212-303-4174 Favorite names post 1Q earnings. Following 1Q results, we reiterate Devon Energy

Eric.Look@truist.com (DVN, Buy), Diamondback Energy (FANG, Buy), Ovintiv (OVV, Buy), and Permian

Resources (PR, Buy) as our favorite names and emerge incrementally positive on

20 Page Document ConocoPhillips (COP, Hold), EOG Resources (EOG, Hold), and Matador Resources

(MTDR, Buy). Recall, we recently upgraded MTDR to Buy from Hold following positive

1Q results as we believe current levels represent an attractive entry for smid-cap

Reasons for this report leverage to the best basin in the L48 with strong inventory depth, a growing base

dividend, and an aligned management team. COP reaffirmed its commitment to return

✓ Earnings Recap 45% of CFO to shareholders that implies an 8% ROC yield and buyback pace that nearly

doubles every quarter from here. EOG shifted activity to put increased focus on liquid

development and added crude export capacity at the gulf, which enables Brent-linked