Weekend Exploration: First Target – Week 1 OFS Earnings Previews

Research evidence excerpt

Weekend Exploration: First Target – Week 1 OFS Earnings Previews

tional update from RRC, with production tracking toward

expectations despite lower oil and gas prices. The key driver remains continued

execution on the company's growth initiatives, including the addition of a second

completion crew and the startup of the Harmon Creek 3 processing plant, which

we see supporting production growth to 2.54Bcfepd in 4Q26 and 2.62Bcfepd in

FY27. We also expect investor focus on commercial opportunities tied to in-basin

gas demand, as RRC remains in discussions with multiple potential end users for

future supply agreements. On the financial side, following Net Debt/EBITDA

declining to 0.5x at the end of 1Q26, we see RRC increasingly positioned to

accelerate shareholder returns. We project $60mm of buybacks during the quarter

and expect continued balance sheet improvement to support a more meaningful

ramp in capital returns through 2027.

OVV. We forecast 2Q26 Adj. EBITDA of $1,306mm vs. Street's $1,309mm. We

forecast total production of 619mboepd, in line with Street and slightly below the

midpoint of the 610-635mboepd guide on royalty impacts. OVV remains a top Oil

E&P pick heading into 2Q results. We look for another robust operational update,

with well performance in both the Midland and Montney continuing to trend

above the 2025 type curve. This is helping hold crude and condensate volumes

near the midpoint of the 200-205mbpd guidance range despite royalty volume

impacts and plant turnaround headwinds. Looking ahead, we see volumes

increasing back toward the 205-208mbpd level in 2H26, with upside to 210mbpd

should Permian production remain near 125mbpd. Beyond operations, we expect

investor focus to remain on capital returns following the Anadarko divestiture. We