Q2/26 Oilfield Services Preview — The Tides Are (Slowly) Turning

Research evidence excerpt

Q2/26 Oilfield Services Preview — The Tides Are (Slowly) Turning

June 30, 2026 | 05:00 ET~

CDN O&G Services

Q2/26 Oilfield Services Preview — The Tides Are CDN O&G Services

(Slowly) Turning John Gibson, CFA Analyst

johng.gibson@bmo.com (403) 515-1527

Owen Clark, CFA Associate

Bottom Line: owen.clark@bmo.com (368) 338-6483

Ahead of Q2/26 reporting, we are updating estimates for our Canadian Energy Services Legal Entity: BMO Nesbitt Burns Inc.

coverage group. Oil volatility continues to underwrite the narrative of equity price

movements. That said, we believe momentum is shifting in favour of North American What's Inside

activity levels. Specific to Q2, rig counts were robust across Canada, while additions Ahead of Q2/26 reporting, we update estimates

to the lower-48 continue. We are currently anticipating this momentum continues for our Canadian Energy Services coverage group.

into 2027, with rig counts expected to move up another 30-50 by mid-next year. Our Oil volatility continues to underwrite the narrative

favoured names include CES (recently upgraded), EFX, PD, and Trican. PD and TCW kick of equity price movements. That said, we believe

off Q2/26 reporting on July 28. momentum is shifting in favour of North American

activity levels.

Key Points

Our favoured names include CES (recently upgraded),

Canadian Activity Robust. Canadian rig counts averaged 145 rigs in Q2/26, which EFX, PD, and Trican.

represents one of the highest levels over the past decade. Demand for heavy-oil

focussed rigs sits at a very high level, with super-singles effectively sold out. Longer What’s Inside

term, we expect a pick-up in natural gas focussed drilling as LNG-Canada is now

• Activity Level Expectationsoperating at full capacity, with phase 2 potentially sanctioned later this year.