Investors Left Uninspired in the Near Term, but Long Term Remains Encouraging

Research evidence excerpt

Investors Left Uninspired in the Near Term, but Long Term Remains Encouraging

derwhelmed, driven by maintenance costs in NAM, equipment mobilization, 52-Week High / Low US$43.59 / US$20.17

and US Gulf completion tool installation delays. For 3Q26, a number of moving pieces Shares Out (mil) 839.0

impact the revenue guide, which implies topline declines 2% q/q at the midpoint, driven Market Cap. (mil) US$29,457.3

by Europe/Africa and LatAm growth reversing, full contribution of its chemical business Avg Daily Vol (000) 11,864

sale, and rig moves impacting drilling fluids/testing. However, 3Q26 margins are set to Enterprise Value (mil) $33,342.7

Div (ann) US$0.68 improve with C&P and D&E expanding 150bps and 50bps, respectively at the midpoint

Div Yield 1.94%

driven by improved US Land frac, lift, US Gulf completion tools, software sales, and Fiscal Year End Dec

Middle East activity.

Price Performance - 1 Year

• Positive read-through for US Land frac. Despite the mixed results and guide, HAL USD

messaged a positive tone for its US Land frac business, specifically being a main 45

driver for the expected 150bps C&P margin improvement in 3Q26. HAL expects the 40

improved utilization felt in 2Q26 after absorbing white space will continue into 3Q26, 35

further supporting pricing gains. Importantly, mgmt is maintaining its discipline around

supply, not reactivating idled equipment at current economics, but rather deploying fleets 30

to Int'l unconventional markets to expand operations. The messaging around increasing 25

activity and a "steady march" of pricing improvement, creates a positive read-through 20

for PTEN, LBRT, and PUMP.

Jul-25 Sep-25 Nov-25 Jan-26 Mar-26 May-26 Jul-26

• Continued on page 2. Source: Bloomberg

RISKS TO ACHIEVEMENT OF PT & RECOMMENDATION