Colby Sasso

Colby Sasso asked about Expro's observations regarding the increased need for offshore exploration among large operators and which geographical areas might offer upside surprises in the coming years, along with Expro's strategy to capitalize on these trends.

Answer

CEO Mike Jardon confirmed increased discussions around exploration projects, driven by the need to build future production and reserves. He sees this as a significant opportunity for Expro, which provides services across well construction, well flow management, and subsea connectivity for exploration activities. He anticipates more exploration revenue, particularly in 2027, noting the lack of meaningful global exploration since 2012.

Colby Sasso from Daniel Energy Partners asked how the current administration's favorable stance on deals, and recent offshore transactions, might influence Expro's M&A strategy.

Answer

CEO Mike Jardon stated that Expro's M&A targets typically have a global presence, reducing concerns about antitrust influence from the administration. He views recent consolidations in the industry as positive and affirmed Expro's continuous pursuit of M&A to enhance customer relevance and shareholder value, leveraging its offshore and international platform across the well lifecycle. Sasso also inquired about the increasing need for offshore exploration and potential upside regions. Jardon confirmed growing discussions around exploration projects, seeing it as a significant opportunity for Expro's well construction, well flow management, and subsea connectivity services, with more activity expected to translate into revenue in 2027 rather than 2026.

Colby Sasso asked if Bristow sees a focus on more exploratory drilling by larger integrated E&Ps moving forward and its impact on the company. He also questioned the need for new aircraft in the North Sea, given drillers moving rigs out and E&P bearishness on the UK energy industry.

Answer

Chris Bradshaw (CEO) confirmed that deep-water projects are favorably positioned, expecting an increasing share of upstream capital investment into deep-water and offshore projects, which is a solid long-term driver, noting 85% of OES revenue comes from production support. Regarding the North Sea, Chris Bradshaw clarified that new AW189s are for fleet replacements of aging S-92s, not for growth, providing an opportunity for secure, long-term contracts with enhanced profitability, making them value-accretive despite the mature market.

Colby Sasso of Daniel Energy Partners inquired about any impacts from tariffs on component delivery times or R&M costs and asked which regions are expected to drive the most growth for Bristow's energy business in the coming years, noting recent industry focus on West Africa.

Answer

President & CEO Chris Bradshaw stated that Bristow has seen no adverse impact from tariffs to date and is encouraged by recent trade deal announcements that are expected to exclude civil aircraft parts. Regarding growth, he identified Brazil and the U.S. Gulf as constructive markets but highlighted Africa as a top growth area where meeting current and future demand is the primary challenge, necessitating the deployment of additional aircraft.

Colby Sasso of Daniel Energy Partners inquired about Mammoth's three-to-five-year growth strategy, particularly for the rental and accommodation services segments, given its significant cash position. He also asked for a breakdown of sand sales between domestic and Canadian markets and the outlook for each.

Answer

Mark Layton, Chief Financial Officer, explained that near-term capital is focused on the aviation sector, targeting IRRs of 25-35% and a 2-3x multiple on invested capital. Regarding the sand market, Layton stated that while the exact split is not disclosed, the majority of sales have historically been to Western Canada's Montney shale, a trend he expects to continue due to the availability of Tier one acreage.

Colby Sasso from Daniel Energy Partners asked about the potential for further margin expansion in the Water & Flowback segment through automation and what would constitute success for the Permian-based Oasis desalination program.

Answer

CEO Brady Murphy and CFO Elijio V. Serrano confirmed margin upside potential exists, as only 25% of the fleet is automated, CapEx is being prioritized for automation, and the company is growing its higher-margin water treatment business. For the Permian, Murphy defined technical success as achieving a 60% water recovery yield and noted that commercial discussions are already occurring ahead of schedule.

Colby Sasso of Daniel Energy Partners asked about Oceaneering's strategy for growing its ROV business in 2026 and beyond, considering the current lack of new rig contracts, even as near-term asset utilization remains strong.

Answer

President and CEO Roderick Larson stated that a key growth driver and offset to the rig market is the increasing intensity of vessel-based activity, noting that major operators are unlikely to alter long-term deepwater projects due to short-term price fluctuations. SVP and CFO Alan Curtis added that the GDi acquisition is a core part of the strategy to create new, technology-driven demand for ROV inspection services, which in turn can generate follow-on work for the OPG segment and tooling.