North American Oil & Gas: What‘s The Setup For OFS Into 2Q Earnings; HOLT Data Inside

Research evidence excerpt

North American Oil & Gas: What‘s The Setup For OFS Into 2Q Earnings; HOLT Data Inside

Global Research

20 July 2026ab

North American Oil & Gas Equities

North AmericaWhat's The Setup For OFS Into 2Q Earnings;

HOLT Data Inside Energy

Josh Silverstein

Analyst

josh.silverstein@ubs.com

OFS Earnings Begin This Week +1-212-713 3513

2Q26 Oilfield Services earnings season begins this week. After a strong start to 2026, Brendan Munson

the group has pulled back, with the OSX Index down ~6% over the past three months HOLT Sector Specialist

as the Middle East conflict and oil price volatility has challenged equities. We see a brendan.munson@ubs.com

positive setup for the OFS despite near-term Middle East headwinds, as ramping post- +1-212-325 2784

conflict spending is becoming more visible, the rising NAM rig/frac count will lead to Peyton Dorne

improved pricing and utilization rates, and individual secular growth drivers all support Analyst

2027-28 cash flow growth. NESR is our top OFS pick, with Jafurah and additional peyton.dorne@ubs.com

contract wins keying a peer-leading growth rate. +1-212-713 4359

William Barber

Additional Highlights Into 2Q26 OFS Earnings Prints: Associate Analyst

HOLT Analysis. Within we show the proprietary CFROI forecasts from the william.barber@ubs.com

UBS HOLT platform for our OFS coverage. On a Forecast CFROI basis, NESR offers +1-212-713 5553

the group's highest economic returns, driven by its strong sales growth. LBRT's

Forecast CFROI is the lowest, as LPI's ramp isn't yet being reflected in its near-term

financial performance. We see this DPG growth expectation as LBRT's key catalyst,

as we project that LPI's EBITDA rises from FY26's ~$8mm to >$900mm for FY29.

OFS Positioning. In our latest positioning analysis (note), HAL screens as the most