Citi Research Global Technology, Communications, Real Estate, Energy, and Industrials February 23, 2026 Data Center GAINs (Gen AI Names) Multi-Asset Strong Absorption Supports Solid 2026 and LT Data Center Demand | Equities | | | | | ABS | | --- | --- | --- | --- | --- | --- | | Michael Rollins, CFAAC +1 212 816-3116 | Heath TerryAC +1 212 723-4624 | Caitlyn Walsh caitlyn.walsh@citi.com | | | | | michael.rollins@citi.com | heath.terry@citi.com | | | | | | Siraj Ahmed AC | AC Scott Gruber | Andrew KaplowitzA ...

Liberty Energy Inc. (NYSE:LBRT) is among the 15 Undervalued Momentum Stocks That Are Taking Off. Citi increased its price target on Liberty Energy Inc. (NYSE:LBRT) to $32 from $21, according to a report on February 17. The firm cited two reasons for this revision: first, its confidence that the company will achieve and exceed the 2029 capacity target of 3 gigawatts (GW), driven by strong demand from hyperscale companies. Second, the company’s competitive positioning amid the increasing need to make reside ...

“It seems like the momentum stocks that have got us here still remain in favor with our customers.” This was highlighted by Steve Sosnick, Chief Strategist at Interactive Brokers, in a late December 2025 interview with CNBC. Sosnick said the market environment is marked by continuous retail inflows, while citing data from his firm’s platform. According to this data, in most weeks, the vast majority of the 25 most actively traded stocks on the platform are net buys, meaning more clients are buying than selli ...

Core Insights - Oklo is a pre-revenue company focused on advanced fission technology and nuclear fuel recycling, presenting both significant risks and potential upside for investors [1][3] Company Overview - Oklo is developing advanced fission reactors known as Aurora powerhouses to address the increasing energy demands of data centers and industries such as defense and manufacturing [2][3] - The company currently has a market capitalization of $11 billion and is trading at approximately $63.83 per share, reflecting a significant premium due to investor optimism rather than current revenue [2][4] Partnerships and Agreements - Oklo has established binding agreements with major companies, including Meta Platforms, Siemens Energy, and Liberty Energy, which are expected to convert into revenue once the technology is deployed [3][5] - The company anticipates deploying its first reactors in 2027, contingent upon receiving licensing approval from the U.S. Nuclear Regulatory Commission (NRC) [3][7] Stock Performance and Valuation - The stock has experienced substantial volatility, with a peak increase of over 700% in 2025, ending the year up nearly 240%, indicating that the valuation is driven by optimism rather than fundamentals [4][5] - As of February 19, the stock price has retreated from its 52-week high of $193, currently trading around $65 per share [5] Market Demand and Future Prospects - There is a growing demand for Oklo's reactors, particularly in light of the increasing power needs associated with AI technologies [7] - If Oklo receives the necessary approvals and successfully deploys its reactors by 2027, it could lead to substantial revenue growth and new stock highs [8]

Core Viewpoint - Tamboran Resources Corporation is on track to deliver first gas from the Beetaloo Basin by Q3 2026, supported by steady drilling progress, advancing infrastructure, and strengthened funding [1]. Group 1: Drilling and Stimulation Progress - The Shenandoah South (SS) Pilot Project is central to Tamboran's near-term development, with multiple wells drilled and stimulated [1]. - The company holds a 47.5% working interest in the Northern Pilot Area and completed its first batch drilling program, drilling the SS-4H, SS-5H, and SS-6H wells with 10,000-foot horizontal sections in the Mid Velkerri B shale [3]. - The average spud-to-target depth for the wells was less than 27 days, with the program completed nine days ahead of schedule and under budget, utilizing Baker Hughes anti-vibration drilling technology for improved efficiency [4]. Group 2: Stimulation and Flow Testing - A total of 58 stimulation stages were completed across a 10,009-foot horizontal section in the SS-6H well, using a Liberty Energy frac fleet, with increased stage spacing reducing the total number of stages [6]. - A potential flow issue was identified during clean-out operations in the final 1,374-foot section of the lateral, leading to a 60-day soaking period ahead of a planned 30-day flow test, with IP30 flow results expected in Q2 2026 [7]. Group 3: Infrastructure Development - The Sturt Plateau Compression Facility (SPCF), a joint venture with DWE, was 78% complete by the end of January 2026, remaining on budget and on schedule for commissioning in Q3 2026, subject to weather conditions [9]. - The APA Group completed construction of the Sturt Plateau Pipeline (SPP), which will connect the SPCF to the Amadeus Gas Pipeline, with the SPP passing pressure and hydro testing and expected to be tied in shortly [10]. Group 4: Future Plans - In the Southern Pilot Area, where Tamboran holds a 38.75% working interest, planning is underway for a two-well program targeting plateau production of around 40 million cubic feet per day, with drilling scheduled to begin in Q2 2026 [8].

2Q FY26 Result Presentation Mr. Todd Abbott – Chief Executive Officer North America: February 11, 2026 | Australia: February 12, 2026 ` NYSE: TBN, ASX: TBN For personal use only Disclaimer The information in this presentation includes "forward -looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), which include statements on Tamboran Resources Corporation ...

Core Insights - Magnolia Oil & Gas Corporation (MGY) reported a fourth-quarter 2025 net profit of 37 cents per share, exceeding the Zacks Consensus Estimate of 36 cents, although it decreased from 49 cents in the same quarter last year [1] - The company's total revenues were $318 million, surpassing the Zacks Consensus Estimate of $312 million, but down 2.7% from $327 million in the previous year due to lower oil and natural gas liquids revenues [2] Revenue Breakdown - Revenues from oil amounted to $215.6 million, a 12.5% decrease from $246.5 million in the year-ago quarter, but slightly above the consensus estimate of $215 million [3] - Natural gas revenues increased significantly to $52.9 million from $28.4 million year-over-year, beating the consensus estimate of $49.6 million [3] - Natural gas liquids revenues were $49.1 million, down from $51.7 million in the previous year, but above the consensus estimate of $47.4 million [3] Cash Flow and Dividends - The company generated $208.4 million in net cash from operating activities and achieved a free cash flow of $74.7 million [4] - Magnolia declared a cash dividend of 16.5 cents per share for Class A Common stock and 15 cents per Class B unit, marking a 10% increase in the quarterly dividend rate, resulting in an annualized dividend of 66 cents per share [4] Share Repurchase and Returns - In the fourth quarter, Magnolia repurchased 2.4 million Class A Common shares for $53.4 million and increased its share repurchase authorization by an additional 10 million shares, totaling 12.9 million shares remaining for repurchase [5] - The company returned 110% of free cash flow to shareholders through dividends and buybacks [5] Production and Prices - Average daily total output was 103,799 barrels of oil equivalent per day (boe/d), an 11.5% increase from 93,096 boe/d in the year-ago quarter, exceeding the Zacks Consensus Estimate of 101,173 boe/d [6] - Oil volumes were 40,730 barrels per day (bpd), up 4.9% from the previous year, surpassing the estimate of 40,262 bpd [6] - Natural gas volumes reached 196,618 thousand cubic feet per day (Mcf/d), a 17.7% increase from the previous year, exceeding the estimate of 192,400 Mcf/d [7] - The average realized crude oil price was $57.54 per barrel, a 16.6% decrease from $69.01 in the year-ago period [7] Price Realizations - The average realized natural gas price was $2.92 per Mcf, significantly up from $1.85 year-over-year, beating the estimate of $2.83 [9] - The average realized natural gas liquids price was $17.63 per barrel, down 17.1% from the previous year, missing the estimate of $18 [9] - The average sales price was $33.26 per boe compared to $38.13 a year ago [9] Financial Position - As of December 31, 2025, Magnolia had cash and cash equivalents of $266.8 million and long-term debt of $393.2 million, resulting in a debt-to-capitalization ratio of 16.8% [10] - The company spent $116.5 million on its capital program in the reported quarter, with operating expenses increasing to $223.5 million from $202.5 million in the previous year [10] Guidance - For Q1 2026, Magnolia expects D&C capital spending to be about $125 million, with total production estimated at roughly 102 Mboe/d [11] - For the full year of 2026, total D&C capital spending is estimated to range between $440 million and $480 million, supporting approximately 5% total production growth [12]

Core Insights - NOV Inc. reported fourth-quarter 2025 adjusted earnings of 2 cents per share, missing the Zacks Consensus Estimate of 25 cents, and a significant decrease from 41 cents in the prior year due to underperformance in the Energy Products and Services segment [1][8] Financial Performance - Total revenues for NOV reached $2.3 billion, exceeding the Zacks Consensus Estimate by 4.9%, driven by strong performance in the Energy Equipment segment, although revenues fell 1.3% year-over-year due to a 6% decline in global drilling activity [2][8] - The company repurchased approximately 5.7 million shares for $85 million and paid a dividend of 7.5 cents per share, returning a total of $112 million to shareholders during the quarter [3][8] Segmental Performance - **Energy Products and Services**: Reported revenues of $989 million, beating estimates but down 6.7% from the prior year, with adjusted EBITDA of $140 million, also above estimates but lower than $173 million from the previous year [4] - **Energy Equipment**: Revenues increased 3.6% year-over-year to $1.3 billion, surpassing estimates, with adjusted EBITDA of $180 million, slightly down from $185 million year-over-year but above estimates. The segment secured $532 million in new orders and had a backlog of $4.3 billion [5][6] Balance Sheet and Cash Flow - As of December 31, 2025, NOV had cash and cash equivalents of $1.6 billion and long-term debt of $1.7 billion, with a debt-to-capitalization ratio of 21.1%. The company generated $573 million in operating cash flow and $472 million in free cash flow during the quarter [7][8] Strategic Developments - NOV made significant advancements in technology commercialization and digital capabilities, achieving record deployment of Downhole Broadband Solutions™ and enhancing drilling efficiency through automation and AI-driven systems [8][9] - The company strengthened its offshore presence with major equipment awards and secured various contracts in production and processing, demonstrating innovation in artificial lift and increasing recurring digital revenues [10][8] Outlook - For Q1 2026, NOV projects a 1% to 3% decrease in consolidated revenues year-over-year, with adjusted EBITDA expected between $200 million and $225 million. The Energy Equipment segment is anticipated to see a revenue increase of 3%-5%, while the Energy Products and Services segment is expected to decline by 6%-8% [11][13] - Cost-reduction initiatives are expected to generate over $100 million in annualized savings by the end of 2026, while the company maintains a constructive outlook on bookings with a full-year 2026 book-to-bill ratio expected to be close to 100% [12][14]

Core Insights - Helmerich & Payne, Inc. (HP) reported a first-quarter fiscal 2026 adjusted net loss of 15 cents per share, significantly missing the Zacks Consensus Estimate of adjusted net income of 12 cents, and a sharp decline from the previous year's profit of 71 cents due to weakness in the North America Solutions segment and a non-cash impairment charge of $103 million [1][9] Financial Performance - Operating revenues reached $1 billion, surpassing the Zacks Consensus Estimate of $986 million, with Drilling Services sales increasing by 50.2% year-over-year [2][9] - The company distributed approximately $25 million to shareholders as part of its ongoing dividend program [2] Segment Performance - **North America Solutions**: Operating revenues were $563.9 million, down 5.7% year-over-year, with an operating profit of $36.2 million, significantly lower than the prior year's $152.2 million due to a one-time impairment of $98 million [4] - **International Solutions**: Operating revenues surged 393.4% to $234.3 million, but the operating loss widened to $55.3 million compared to a loss of $14.5 million in the prior year [5] - **Offshore Solutions**: Revenues increased 554.6% to $188.3 million, with an operating profit of $16.4 million, although it missed the estimate of $20.3 million [6] Debt and Financial Position - As of the end of January, HP repaid $260 million of its existing $400 million term loan, expecting to repay the entire loan by the end of the third quarter of fiscal 2026 [3] - The company had $247.2 million in cash and cash equivalents, with long-term debt totaling $2 billion and a debt-to-capitalization ratio of 42.8% [7] Guidance - For the second quarter of fiscal 2026, North America Solutions is projected to deliver direct margins between $205 million and $230 million, while International Solutions is expected to generate direct margins of $12 million to $22 million [8][10]

Core Insights - Patterson-UTI Energy, Inc. (PTEN) reported a narrower adjusted net loss of 2 cents per share for Q4 2025, better than the Zacks Consensus Estimate of an 11-cent loss and an improvement from a 12-cent loss in the same quarter last year [1][9] - Total revenues reached $1.2 billion, exceeding the Zacks Consensus Estimate by 5%, primarily driven by strong performance in the Completion Services segment [2][9] - The board of directors increased the quarterly dividend by 25% to 10 cents per share, payable on March 16, 2026 [3] Segment Performance - **Drilling Services**: Revenues were $360.8 million, down 11.6% year-over-year, missing the estimate of $365 million. Operating income was $43 million, beating the estimate of $37.7 million [4] - **Completion Services**: Revenues increased by 7.8% year-over-year to $701.6 million, surpassing the estimate of $647 million. The operating loss narrowed to $3.6 million from a loss of $50.2 million in the previous year [5] - **Drilling Products**: Revenues decreased by 3.2% year-over-year to $83.8 million, missing the estimate of $85 million. Operating profit was $6.8 million, compared to a loss of $0.2 million in the prior year [6] - **Other Services**: Revenues fell by 71.3% year-over-year to $4.7 million, missing the estimate of $4.8 million [6] Financial Position - Capital expenditures for the quarter were $138.5 million, slightly down from $140.3 million in the prior year. As of December 31, 2025, cash and cash equivalents were $420.6 million, with long-term debt of $1.2 billion and a debt-to-capitalization ratio of 27.5% [8] - Total operating costs and expenses were $1.151 billion, down from $1.1935 billion in Q4 2024 [8] Q1 2026 Outlook - The company expects an average rig count in the low-to-mid 90s for the Drilling Services segment in Q1 2026, with adjusted gross profit anticipated to decline by less than 5% from Q4 2025 [11] - For Completion Services, adjusted gross profit is expected to be around $95 million, while Drilling Products segment's adjusted gross profit is anticipated to improve slightly [12] - Selling, general and administrative (SG&A) expenses are projected to be about $65 million, with total depreciation, depletion, amortization, and impairment expenses expected to be approximately $225 million for the upcoming quarter [13]