E&P State of the Business 2Q26: High oil prices realized

We summarize financial and operational performance metrics for the top 36 North American E&Ps to assess the "state of the E&P business" using the most recent quarterly data (2Q26). The sector once again took advantage of unusually higher commodity prices to deleverage and buy back equity. WTI averaged $96/bbl in 2Q26 while HH averaged $3/mcf, a significant uptick in oil from 1Q26 where WTI was at $72/bbl and HH averaged $5/mcf. Such prices contributed to boosting operating cash, where a significant portion was added to cash and used to pay down debt as well as buy back shares. Equity performance also shared in the commodity price increase as weighted performance for the aggregate was 46% YTD with oil price increasing 78% YTD as of 9/18/26. $96/bbl oil drives 67% EBITDA margins and $16/boe of profits (32% profit margins). Discipline continued in the sector;