Hanold's Weekly U.S. E&P Comps & Sentiment

Research evidence excerpt

Hanold's Weekly U.S. E&P Comps & Sentiment

RBC Capital Markets, LLC

Scott Hanold (Analyst)

(512) 708-6354,

scott.hanold@rbccm.com

Samuel Cox (Senior

Associate)

(512) 708-6309,

samuel.cox@rbccm.com

May 22, 2026 Octavian Jordan (AVP)

(212) 618-3012,

octavian.jordan@rbccm.com Hanold's Weekly U.S. E&P Comps & SentimentRESEARCH Weekly Valuation Update: May 21, 2026

Our view: Oil prices continue to be volatile, but trended lower over the last few days as optimism

once again mounts for a negotiated settlement to the Middle East conflict, which could result in the

resumption of commodity flows through the Strait of Hormuz. Front month WTI traded down to $98/

bbl as of this writing. Even with a peaceful resolution to the conflict, the general consensus remains that

oil flows will take months to normalize. For US E&Ps, the most notable headline was around a record-

breaking $4 billion NM Permian federal lease sale, which saw DVN enhance its Delaware position by

400 locations for $2.6 billion acquisition, while MTDR spent $1.1 billion for 141 locations. We believeEQUITY

PR was also active spending ~$150 million to acquire over 6,000 acres adding 50-60 locations. Over the

last week, oil-weighted E&Ps rose 2% with gas-weighted E&Ps flat. Large caps climbed 1%, with SMid

caps flat. The XOP rose 1% with oil (WTI) down 3% and natural gas (HH) 8% higher.

Investor sentiment: Not much changed with generalist investors mostly avoiding energy as expectations

for an Iran resolution builds. Energy specialists (long-only/HF) remain constructive. However, sentiment

around natural gas remains bearish with concerns on Permian pipeline adds. The Federal Lease Sale

drew a significant amounts of inbounds with investors concerned on the record prices paid.