North American Oil & Gas "Distributed Power Generation Sparks OFS Growth..."

Research evidence excerpt

North American Oil & Gas "Distributed Power Generation Sparks OFS Growth..."

Global Research

19 May 2026ab

North American Oil & Gas Equities

North AmericaDistributed Power Generation Sparks

OFS Growth Opportunity Energy

Josh Silverstein

Analyst

josh.silverstein@ubs.com

Secular Growth Strengthens Near-Term Outlook For OFS +1-212-713 3513

Distributed power generation (DPG) continues building as an OFS sector growth Peyton Dorne

opportunity, highlighted by recent announcements of expanded capacity, new sales Analyst

agreements, and significant capital raising to fund investment. For OFS, DPG offers peyton.dorne@ubs.com

exposure to a less cyclical sector than traditional O&G business lines, enabling more +1-212-713 4359

visible sales and earnings growth, which should command a higher multiple than the Shneur Z. Gershuni, CFA

legacy portion of their business. For investors, the trend provides an opportunity to Analyst

participate in a derivative of the overall AI/data center trade that continues to be a shneur.gershuni@ubs.com

significant broader market driver. LBRT is the OFS in our coverage with the most DPG +1-212-713 3974

weighting. HAL participates in DPG through its VoltaGrid stake. BKR's NovaLT offering William Barber

also has exposure to similar secular demand drivers as DPG. Associate Analyst

william.barber@ubs.com

Key Highlights On Distributed Power Generation Growth In OFS: +1-212-713 5553

Public Company Profiles. We highlight the DPG units across five of the most

active public OFS companies so far in the emerging business: LBRT, SEI, PUMP,

AESI, and KGS. Entry into DPG has been done through M&A or organic

investment, with momentum in contract signings helping spur medium-term

upside to sales/EBITDA expectations. Microgrids were an early sales target for