Energy Services Cycle Hits Two-Decade High, PUMP Named Top Pick
Barclays projects U.S. fracturing utilization soaring to 80% by mid-2026 with backlog rising 55%, marking the strongest energy services setup in two decades. The bank names PUMP among its three preferred names, citing its leading pressure pumping fleet and potential 30% revenue growth next year.
1. Barclays Sees Strongest Energy Services Cycle in 20 Years
Barclays projects U.S. fracturing utilization will ramp from current 65% to 80% by mid-2026, driven by sustained crude pricing above $80 per barrel and operator cash-flow reinvestment. The bank forecasts a 55% year-over-year growth in service backlog, marking the most robust environment since the early 2000s, and anticipates higher day rates across pressure pumping fleets.
2. PUMP Among Three Best Energy Services Picks
Barclays identifies PUMP as one of its three highest-conviction energy services names, citing its 1,200-hour minimum fleet utilization contracts and low leverage. The firm models 30% revenue growth next year based on incremental pricing power and capacity expansions, projecting adjusted EBITDA margin rising to 28% in 2026.