Question · Q4 2025
Chuck Minervino asked for clarification on the 2026 capital expenditure guidance, considering deferred 2025 spend and the reclassification of wireline cables, and whether there's flexibility to reduce CapEx for increased free cash flow. He also inquired about the sharp sequential decline in rental tool revenue within support services in Q4 2025, asking if it was more acute than historical seasonality and for reasons behind the drop.
Answer
Ben Palmer (President and CEO) described the 2026 CapEx range as 'conservative,' noting it's subject to scrutiny and can be reduced if conditions warrant, as unapproved or undelivered equipment is not committed, emphasizing the focus on free cash flow. Regarding rental tool revenue, Mr. Palmer confirmed the decline was 'more acute,' attributing it to one or two customer-specific slowdowns and impacts in the Rockies, clarifying these were delays, not lost opportunities. Mike Schmidt (CFO) added that the business had a strong Q3, making the Q4 comparison tougher.
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