2Q26 Earnings at a Glance

Research evidence excerpt

2Q26 Earnings at a Glance

TD Cowen Halliburton

Global Research July 21, 2026

VALUATION METHODOLOGY AND RISKS

Valuation Methodology

Oilfield Services:

We favor Unlevered FCF yield to value companies within our coverage universe by normalizing

across varying capital structures and working capital cycles. The companies with greater

international exposures, stable end markets, larger backlogs, and more modern assets typically

trade at higher yields.

We make investment recommendations on certain early stage, pre-revenue companies based

upon an assessment of their business model, technology, probability of market success,

and the potential market opportunity, balanced by an assessment of applicable risks. Such

companies may not be assigned a price target.

Investment Risks

Primary Oilfield Services Investment Risks Include:

A material change in commodity prices has the potential to change our view on the entire oil

service and drilling sector. A deterioration in the economic climate, increasing non-OPEC oil

production or international political and economic risks could impede the price performance of

the shares.

The strength of the global economy and its impact on the global demand for oil and natural

gas.

Upstream (E&P) budget fluctuations that directly impact demand for oil services, which may be

affected by M&A, commodity prices, or access to capital markets.

Capacity expansions within various product lines in the oilfield services industry that may

create supply overhangs and influence marginal pricing.

Political issues that may lead to higher taxes on the industry or limit access to potential

resource developments, due to geopolitical issues or regulatory changes.

Technology changes that may negatively impact the lifecycle of various products and services.