Energy Services & Equipment: 2Q26 Preview: Navigating Volatility, Focusing on the Future; Upgrade TS to EW

Research evidence excerpt

Energy Services & Equipment: 2Q26 Preview: Navigating Volatility, Focusing on the Future; Upgrade TS to EW

Idea

July 15, 2026 07:54 AM GMT

Morgan Stanley & Co. LLCMEnergy Services & Equipment | North America Joe Laetsch, CFA

Equity Analyst

2Q26 Preview: Navigating Joe.Laetsch@morganstanley.comDaniel Kutz +1 212 761-8804

Dan.Kutz@morganstanley.com

Volatility, Focusing on the Zackary C Warden

Research Associate

Zackary.Warden@morganstanley.com +1 212 761-4164

Future; Upgrade TS to EW Devin McDermott

Equity Analyst and Commodities Strategist

Devin.McDermott@morganstanley.com +1 212 761-1125

Into 2Q results, we are ~in-line with consensus across our

Energy Services & Equipment

coverage. Expect focus to be on the outlook for global spending North America

(NAm, Int'l, Offshore) and the power opportunity (for some). Industry View In-Line

Constructive near-term on HAL, NBR, TS, & PRM while we're See EBITDA estimates, price target & ratings

tactically cautious on SLB, HP, & NOV. Upgrade TS to EW. changes in Exhibit 16

See inside for

Key Takeaways

• MS Earnings Cheat Sheet & Key Data Points to

WTI fell from ~$100 to ~$70 in 2Q as SoH flows resumed & focus shifted to

Watch

2027 oversupply risks. Renewed Mideast tensions have pushed prices back

• What's Changed?

toward ~$80.

• Stock Performance & Valuation Data

Tactically Constructive: HAL & NBR (in-line or above on 2Q/3Q26 EBITDA, upside • Global Oilfield Services Activity

in 2027), TS (improving industry fundamentals), PRM (severe wildfire activity). • US Wildfire Tracker

Tactically Cautious: SLB (MSe 3Q EBITDA ~4% below consensus), HP (modest

downside to F3Q/4Q EBITDA), and NOV (~7% outperformance vs peers, 2Q ests

in-line).

Beyond 2Q earnings, we generally prefer stocks with exposure to global capex