1、North America Equity Research25 July 2025J P M O R G A NOil&Gas Exploration&ProductionArun Jayaram AC(1-212)622-Grant Hynes(1-212)622-Kartikey H Pandey(1-212)622-J.P.Morgan Securities LLCJPM View:This week,PTEN reported a reduction in its U.S.rig count to 97 in 2Q25 from 104 in 1Q25.The company anti

2、cipates maintaining a relatively steady rig count moving forward,with potential stabilization in 4Q25,despite fluctuations across different basins.PTEN highlights an anticipated increase in natural gas activity,driven by the expected demand from new LNG facilities coming online.The company noted ear

3、ly indications from customers about adding more activity in natural gas basins as the physical call for higher U.S.LNG volumes approaches,particularly as we enter 2026.According to Enverus,PTEN has operated 90 rigs on average,of which 32 are operating in the Delaware Basin,16 in the Appalachia Basin

4、,and 11 in the MidCon Basin.Historically,the Enverus data has been slightly lower than actual rig counts reported by the land rig operators given their methodology to measure an active rig.As noted in Figure 1U.S.L a n d R i g C o u n t C h a n g e s b y O p e r a t o r T y p e a n d We l l T y p e

5、R i g Mi x b y We l l T y p e g Mi x b y We l l T y p e ,there were 478 average horizontal rigs operating in the U.S.over the past week,with Private E&Ps operating 208 rigs(43%),Public E&Ps with 190 rigs(40%),and Majors with 80 rigs(17%).Over the past week,we have seen a-2 rig decline in U.S.land ho

6、rizontal activity,driven by a-2 rig decline each in the Delaware Basin and Midland Basin and-1 rig decline each in the Eagle Ford,Haynesville,and Williston,although activity has since bounced back by+1 rig each in the Appalachia Basin,DJ Basin,Mid-Con,and PRB.Among public drilling contractors,notabl