Story
Piper Sandler Upgrades Halliburton, Patterson-UTI on Stronger US Land Drilling Outlook
Piper Sandler upgraded its ratings for oilfield services firms Halliburton (HAL) and Patterson-UTI Energy (PTEN) to Overweight from Neutral on Tuesday. The investment bank argued that despite recent oil price volatility, an improving outlook for U.S. land-based drilling activity creates a favorable entry point for the stocks ahead of second-quarter earnings.
Rationale for the Upgrades
The brokerage anticipates that improving U.S. drilling activity, rising hydraulic fracturing utilization, and firmer pricing will support upcoming earnings revisions. Piper Sandler identified several companies it believes are most likely to deliver "beat-and-raise" financial results for the quarter.
Key companies positioned to outperform, according to the note, include:
- Halliburton
- Patterson-UTI
- Liberty Energy
- ProPetro
For Halliburton specifically, the firm also pointed to its stake in power solutions provider VoltaGrid and recent international contract wins as additional long-term growth drivers.
Market Context and Oil Volatility
AdThe upgrades come as the oilfield services sector navigates what Piper Sandler described as a "feeling of limbo." The market has been shaped by significant oil price swings, with crude surging above $110 a barrel during recent Middle East conflicts before retreating to around $70 following a ceasefire in June.
Renewed geopolitical tensions have since pushed prices back toward the $75 mark. This volatility has made investors cautious about the remainder of 2026, but the firm believes it supports a more constructive long-term outlook for energy security and activity in 2027 and 2028.
Broader Sector View
While bullish on U.S. land-focused names, Piper Sandler expressed more caution on other parts of the sector. The bank highlighted potential risks to 2026 estimates for Weatherford International, stemming from continued disruptions in the Middle East, and for Flowco, due to higher operating costs.
However, the firm maintained a positive long-term view on the offshore services segment. It expects a coming wave of rig upgrades and stronger investment in liquefied natural gas (LNG) to support that sector over the next several years.
Read next
More on Stocks
FTC Orders Walmart, Uber, Delta to Disclose Data on Personalized Pricing
The U.S. Federal Trade Commission is demanding nine major companies, including leading retail, travel, and gig economy firms, to provide information on how they use consumer data for setting individual prices and wages.
Google Launches Gemini 4 Carbon AI Model to Bolster Cybersecurity Capabilities
Alphabet's Google has unveiled Gemini 4 Carbon, its latest AI model specifically designed for advanced cybersecurity tasks like vulnerability detection and secure code generation. The launch escalates competition with rivals OpenAI and Anthropic in the enterprise AI market.
Oracle Shares Surge After Unveiling $225 Billion Revenue Target for 2030
Oracle stock rose sharply after the company presented a long-term financial outlook targeting at least $225 billion in annual revenue by fiscal 2030, driven by its expanding AI infrastructure business.
DOJ Scrutinizes Nvidia's $12.9B Hugging Face Deal Amid Broader Antitrust Probe, Sources Say
The U.S. Department of Justice is reportedly examining Nvidia's planned $12.93 billion acquisition of AI platform Hugging Face as part of a wider, ongoing antitrust investigation into the chipmaker's market conduct.