Completions was the strongest North American category in Q2. Revenue increased 16% sequentially at both Liberty Energy and ProPetro, while Patterson-UTI's Completion Services grew 11%. ProFrac's Stimulation Services was up 6%.
The more important signal is what happened to profitability. Liberty's adjusted EBITDA increased 20%, Patterson-UTI's adjusted gross profit rose 25%, and ProFrac's adjusted EBITDA increased 23%. The combination points to higher utilization, improving pricing, and better absorption of fixed costs.
This is consistent with Liberty's assessment that years of fleet attrition and equipment cannibalization have reduced effective frac supply. Completions is therefore moving first because activity is improving into a tighter service-capacity environment.
Production Services Are Next
Production-oriented services are also showing strong operating leverage. Weatherford's Production & Intervention segment increased revenue 7% sequentially while adjusted EBITDA jumped 30%. NOV's Energy Products & Services revenue increased 9%, with adjusted EBITDA rising 50%.
The common theme is not simply more activity. These businesses are benefiting from better mix, utilization and operating leverage, allowing earnings to grow substantially faster than revenue.
Drilling Remains the Laggard
Drilling and well construction are telling a different story. Weatherford's Drilling & Evaluation revenue declined 9% and Well Construction & Completions fell 2%. SLB also reported a 2% sequential decline in Well Construction, while Halliburton's Drilling & Evaluation revenue increased 5% but operating income declined 4%.
That divergence matters. The Q2 recovery is not yet a broad-based drilling upcycle. It is beginning in completion and production services, where utilization and equipment tightness are producing faster earnings responses.
What Q2 Changes
The OFS cycle is therefore becoming more differentiated. Completions are leading, production services are following, while drilling remains behind. The next stage of the recovery will depend on whether improving completion economics eventually translate into stronger drilling activity and a broader increase in upstream spending.
For now, the Q2 earnings data point to a utilization-led recovery rather than a full-cycle acceleration. Part 2 will look beyond North American completions, focusing on offshore and international activity, while examining how the emerging AI and power opportunity is beginning to create a new growth layer for OFS companies.
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