Oil & Gas Services 2Q26 preview

Research evidence excerpt

Oil & Gas Services 2Q26 preview

RBC Dominion Securities Inc.

Keith Mackey, CFA (Analyst)

(403) 299-6958,

keith.mackey@rbccm.com

Kate Ross, CPA (Associate)

(403) 299-6952,

kate.ross@rbccm.com

RBC Europe Limited

July 5, 2026 Victoria McCulloch, CA

(Analyst)

+44 20 7429 8530, Oil & Gas Services 2Q26 preview victoria.mcculloch@rbccm.comRESEARCH Memorandum of Multiplicity

Our view: 2Q26 reporting for our Oil & Gas Services coverage begins July 14 with AKSO, followed by

HAL and WFRD on July 21. From our recent investor discussions, we sense many expected the US-Iran

MoU to act as a clearing event for the market to warm up to energy names. However, the steep decline

in prompt WTI to sub-$70/bbl has cooled that sentiment. That said, we see strong Q2 and Q3 results for

North American OFS stocks, where we envisage positive estimate revisions. Middle East-focused names

will likely see downside in Q3 guidance, which has led to relative underperformance in many cases. Our

preferred list across our global coverage is: Baker Hughes (BKR), Weatherford (WFRD), TechnipFMC (FTI),EQUITY

Enerflex (EFXT), Patterson-UTI Energy (PTEN), Hunting (HTG), CES Energy Solutions (CEU), and Precision

Drilling (PD). With this update, we have added WFRD and PD, while swapping out SLB.

Key themes heading into results:

• US: Improving outlook with tightening service capacity. Second quarter rig count of 538 (-3% y/y)

was in line with our estimate of 540. The current land rig count 567 has increased by 34 rigs since

the beginning of the year, driven by private company operators. We see another 10-15 rig additions

through the rest of the year, and have increased our FY26 forecast to 560 from 544. Rig pricing has

inched upward from ~$30k/day to ~$32k/day with contractors and operators locking in more term.