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

June 18, 2026 Octavian Jordan (AVP)

(212) 618-3012,

octavian.jordan@rbccm.com Hanold's Weekly U.S. E&P Comps & SentimentRESEARCH Weekly Valuation Update: June 17, 2026

Our view: WTI front-month traded within a $75-$80/bbl range this week, retreating to early-March

lows as confidence built around the US-Iran MOU signing scheduled for Friday. The objective of the

interim agreement is to reopen the Strait of Hormuz and allow Iranian barrels to return to market,

though markets are watching whether actual shipping normalization delivers on those expectations.

Competing against the geopolitical-driven selloff is a rapidly tightening domestic supply chain, with

seven consecutive weekly crude draws. Despite this, the oversupply narrative re-entered the headlines

as the IEA projects an 8 Mb/d supply surge could outstrip the 2 Mb/d demand growth once HormuzEQUITY

flows fully normalize. Over the last week, oil-weighted E&Ps fell 8%, while gas-weighted E&Ps fell 3%.

Large caps declined 6%, SMid caps 8%. The XOP dropped 7% with WTI plunging 17% and HH flat.

Investor sentiment: Mostly macro oil discussions given the down draft in crude oil prices following to an

apparent Iran conflict resolution. More questions on risks of further downside with questions on needs

for stockpiling and also offline supply resumption. Royalty names are getting more attention given the

limited operating and c capital cost exposure. This week we added VNOM, KRP, and BSM to our comp

tables

Research of interest: 1) We published our latest thoughts on CRC's proposed data center development

(here).