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

July 1, 2026 Octavian Jordan (AVP)

(212) 618-3012,

octavian.jordan@rbccm.com Hanold's Weekly U.S. E&P Comps & SentimentRESEARCH Weekly Valuation Update: July 1, 2026

Our view: US activity remains status quo with Permian rig counts (page 4) only marginally higher YTD,

although there is more activity by privates, which could be transitory if oil prices come under more

pressure. Oil prices continue to retreat and are again sub-$70/bbl as the market digests US-Iran talks in

Qatar that signal potential normalization of Strait of Hormuz shipping. The oversupply narrative remains

the dominant driver, with Russian and Saudi barrels surging to record levels while the UAE boosted crude

exports to a record 3.7 Mb/d in June following its May OPEC departure. DOE data showed commercial

crude drawing 3.8 Mb alongside another 5.5 Mb SPR release, pushing total US inventories to 1984EQUITY

lows. Over the last week, oil-weighted E&Ps fell 3%, while gas-weighted E&Ps increased 2%. Large caps

decreased 4%, SMid caps decreased 2%. The XOP increased 1% with WTI dropping 3% and HH down 1%.

Investor sentiment: A few more generalist inbounds assessing energy valuations but more the focus is

talking through macro dynamics and interest in natural gas equities. The specialists are starting to gear

up for 2Q26 earnings season, which is still a month away. Topically activity changes given commodity

price moves and M&A are what investors appear most interested in. Discussions also seem to be

pointing to investor favorites heading into earnings: EOG, DVN, EQT, PR, CRC.