1、 BofA Securities does and seeks to do business with issuers covered in its research reports.As a result,investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report.Investors should consider this report as only a single factor in making the

2、ir investment decision.Refer to important disclosures on page 12 to 15.Analyst Certification on page 11.Price Objective Basis/Risk on page 7.12849095 Oilfield Services 2Q Preview:More of the same Price Objective Change OPEC+is almost done unwinding its“voluntary cuts”.As we noted in our CHOW on Mond

3、ay(see:More OPEC+barrels,lower oil price&falling OFS demand 7 July 2025),the 8 OPEC+countries voluntarily curtailing 2.2 MMbpd of oil production since 2023 have now announced returning 1.9 MMbpd of this production into the market by August.So,there is only 0.55 MMbpd more to unwind(same as August,in

4、cluding 0.3 MMbpd of higher UAE quota),which likely comes in September.Note this 2.5 MMbpd of gross production growth over Apr-Sep 25 is 2.4%of 2025E oil demand.and now OFS is all about“how bad”and for“how long”As we get past peak summer demand,oil markets are staring at a meaningful oil surplus in

5、2H25 and into 2026.This worsening oil S/D outlook is reflecting most clearly in short cycle US Land market,where US Land hz rig count is already down 10%from its Feb 25 recent peak(oil down 14%,gas up 15%).INTL,most notably Saudi Arabia,has also been weaker than expected but still more resilient vs.

6、US.The question now for OFS is where activity(and then pricing)troughs,&when can we reasonably expect activity to recover.We now see global D&C capex-8%/-3%YoY in 2025E/26E In our 1Q Preview(see:Double Trouble 7 April 2025),we said US hz rig count likely falls to 475 if WTI sustainably falls to$60/b