David Anderson

David Anderson asked about the Jafurah frack program's ramp-up, the progress towards 500,000 horsepower, and the timeline to achieve a $2 billion annual run rate. He also inquired about supply chain management for Jafurah and the key drivers for NESR to exceed its $2 billion revenue target, specifically mentioning tenders in Saudi Arabia and Kuwait.

Answer

Sherif Foda (Chairman and CEO) explained that Jafurah operations started on time, with fleets ramping up, expecting a steady state by Q2 2026 and clear stage run rates by Q3. He detailed proactive supply chain planning for local resources and partners. Foda also stated the company aims to double its size in a couple of years, driven by $2-$3 billion in regional tenders, primarily outside Saudi Arabia. Stefan Angeli (CFO) did not directly answer these questions.

David Anderson asked about the ramp-up of the Jafurah Frac project, specifically the current horsepower of pressure pumping equipment, the timeline to reach a full steady state and the $2 billion annual run rate, and supply chain concerns. He also inquired about NESR's plans to exceed the $2 billion target, focusing on key growth areas and medium-term outlook.

Answer

Sherif Foda (Chairman and CEO, NESR) explained that operations started on time in November with multiple fleets, anticipating a steady state by Q2, with additional fleets potentially added in Q3/Q4. He assured that supply chain issues were proactively solved through planning and partnerships, allowing for quick mobilization. Regarding growth beyond $2 billion, Foda stated the company aims to double its size in a couple of years, driven by a pipeline of $2 billion-$3 billion in tenders across the region, primarily outside Saudi Arabia, where they expect to win more than their fair share.

David Anderson (Barclays) sought clarification on the incremental EBITDA expected from Jafurah's growth, specifically in relation to the projected $2 billion revenue run rate by the end of 2026.

Answer

CFO Stefan Angeli confirmed that an incremental EBITDA of approximately $100 million for the full year 2026 was 'approximately correct,' suggesting that the total corporate margin for 2026 would be similar to 2025 levels.

David Anderson inquired about NESR's competitive pricing strategy for the Jafurah contract, specifically how the company maintains strong margins despite competitive bids and leverages its local presence. He also sought a development roadmap for Jafurah, including crew deployment, 2026 targets, and monthly well/stage completion rates, and asked for clarification on the incremental EBITDA contribution for 2026.

Answer

CEO Sherif Foda explained that NESR's deep understanding of the project structure from years of involvement with Aramco, local embedding, robust cost control, and an integrated service approach (including site, water, sand, coiled tubing, etc.) enabled competitive pricing. He highlighted the strategic advantage of acquiring equipment during market weakness and confirmed the goal to maintain profitability. Foda detailed plans for immediate contract execution with two fleets, additional equipment arriving by end of November, and a target of 1,000-1,500 stages per month by 2026, emphasizing flexibility with Aramco's aggressive plans. CFO Stefan Angeli confirmed that the estimated $100 million incremental EBITDA for 2026 is approximately correct, with margins expected to align with 2025 levels.

David Anderson inquired about the moving parts in the Q3 and Q4 guidance, the early outlook for MENA in 2026, the status of the Jafora contract awards, and the potential for share buybacks.

Answer

CFO Stefan Angeli confirmed Q3 revenue would be flat with Q2, but Q4 would see an uptick, leading to full-year 2025 revenue exceeding 2024. CEO Sherif Fota added that MENA activity will increase in 2026, driven by Saudi Arabia, Kuwait, and North Africa. Regarding Jafora, Mr. Fota stated the contracts are in evaluation and should be announced in the coming months. On capital returns, Mr. Angeli explained that the company will first complete its debt refinancing and assess CapEx needs before considering buybacks at year-end.

David Anderson from Barclays inquired about Weatherford's outlook for Saudi Arabia in 2026 and 2027, specifically regarding the impact of new rig tenders and current pricing dynamics across product lines.

Answer

Girish Saligram, President and CEO, highlighted Saudi Arabia as Weatherford's largest international country, anticipating a healthy recovery in the second half of 2026 and into 2027 as new rigs come online. He noted Weatherford's underrepresentation and strong opportunity, emphasizing technology development and collaboration with Aramco. Saligram acknowledged pricing competition but expressed confidence in delivering total cost of ownership solutions.

David Anderson of Barclays inquired about Weatherford's outlook for Saudi Arabia, specifically regarding the impact of 40 tendered rigs on 2026 and 2027 performance, and current pricing trends within the region.

Answer

President and CEO Girish Saligram stated that Saudi Arabia, as Weatherford's largest international country, is expected to see a healthy recovery in the second half of 2026, extending into 2027, as new rigs come online. He highlighted Weatherford's underrepresentation in the market as a significant opportunity, driven by technology development in collaboration with Aramco. Regarding pricing, Mr. Saligram noted the competitive environment and Weatherford's strategy to focus on total cost of ownership and value rather than direct discounts.

David Anderson asked about the specific pockets of pricing pressure Weatherford is experiencing, inquiring whether it's more regional or concentrated in certain product lines.

Answer

Girish Saligram, President and CEO, explained that pricing pressure is primarily observed in commodity-type, non-differentiated services, particularly in the Middle East and North America. He noted less pressure on truly differentiated product lines and reaffirmed Weatherford's commitment to margins over chasing market share at unfavorable cash outcomes.

David Anderson asked about the nature of pricing pressure in certain pockets, specifically whether it's regional or concentrated in particular product lines.

Answer

Girish Saligram, President and CEO, explained that pricing pressure is primarily observed in commodity services and non-differentiated activities, particularly in the Middle East and North America. He noted less pressure on truly differentiated product lines and specialty services, emphasizing Weatherford International's commitment to margins over market share at unfavorable cash outcomes.

David Anderson from Barclays inquired about the NovaLT, specifically if the doubling of the three-year data center order target to $3 billion implies expanded NovaLT capacity, whether 2027 deliveries are sold out, and if further capacity expansion is linked to the 1 GW slot reservation.

Answer

CFO Ahmed Moghal confirmed that Baker Hughes is on track to double NovaLT capacity by the first half of 2027, and with these planned additions, NovaLT slots are effectively full through 2028 due to strong, diversified demand, including behind-the-meter power applications. He clarified that the incremental capacity will support the 2 GW of NovaLT orders booked in 2025. Moghal stated that any decision for further capacity expansion beyond the current doubling would be based on a disciplined assessment of medium- to long-term supply and demand fundamentals and clear return thresholds, but the company is prepared to respond quickly if market conditions warrant.

David Anderson from Barclays inquired about the NovaLT capacity expansion, specifically asking if the doubled three-year data center order target to $3 billion implies further capacity increases beyond the previously announced doubling, if Baker Hughes is sold out for 2027 deliveries, and the relation to the 1 GW slot reservation.

Answer

CFO Ahmed Moghal confirmed that Baker Hughes is on track to double NovaLT capacity by the first half of 2027, with all Nova slots effectively full through 2028 due to strong demand, including behind-the-meter power applications. He clarified that this incremental capacity supports the 2 GW of Nova orders booked in 2025, and any further expansion beyond the current doubling would be based on a disciplined assessment of market fundamentals and return thresholds.

David Anderson from Barclays Capital inquired about the diverse power generation opportunities Baker Hughes is pursuing, including data center demand for Nova LT, distributed power in the oil patch (Dynamos order), geothermal solutions, and offshore applications. He sought insights into the size, duration, and other potential end markets for these power generation solutions.

Answer

Chairman and CEO Lorenzo Simonelli highlighted the broad demand growth across power generation, emphasizing that it extends beyond Nova LT for data centers. He detailed the company's equipment offerings, including generators, electric motors, and gas turbines for various markets. Simonelli noted significant orders, such as $800 million in power generation-related orders this quarter, including the Dynamos award for distributed power in U.S. shale basins. He also mentioned booking 1.2 gigawatts of data center power solutions year-to-date, expecting to exceed the $1.5 billion target ahead of schedule. Geothermal power, particularly the Fervo collaboration for organic Rankine cycle plants, was also discussed as a growing opportunity, leveraging both OFSE and IET capabilities. Simonelli concluded that power generation will be a key contributor, expanding the installed base for long-term service revenue.

David Anderson from Barclays Capital inquired about the diverse opportunities Baker Hughes Company is pursuing in power generation, including data centers, distributed power in the oil patch, geothermal, and offshore, seeking insights into the size, duration, and other potential end markets for these solutions.

Answer

Chairman and CEO Lorenzo Simonelli highlighted the broad demand growth for power generation solutions, emphasizing Baker Hughes Company's comprehensive equipment offering, including generators, electric motors, and gas turbines. He noted a significant $800 million in power generation-related orders this quarter, driven by distributed power needs in U.S. shale basins, strong momentum in data centers (1.2 gigawatts year-to-date, $1.5 billion target ahead of schedule), and geothermal projects like Fervo's Cape Station (300 megawatts). Simonelli underscored the integrated solutions leveraging both OFSE and IET capabilities, which expand the installed base and generate long-term service and recurring revenue opportunities.

David Anderson inquired about the 2025 outlook for the Oilfield Services & Equipment (OFSE) segment, asking for a breakdown of how different business components would perform and what was driving the forecast for a slight revenue decline.

Answer

Chairman and CEO Lorenzo Simonelli confirmed a conservative outlook for OFSE in 2025, anticipating a mid-single-digit spending decrease in North America and a flat-to-down international market. He noted softness in Mexico and Saudi Arabia would be partially offset by Brazil and other Middle Eastern regions. Simonelli emphasized that the company's production-weighted portfolio provides resilience against these market trends.

David Anderson asked about the growth opportunity in SLB's production and recovery segment over the next few years, specifically focusing on how OneSubsea, ChampionX, and Artificial Lift contribute to this, citing examples like backlog conversion, potential growth engines in chemicals, and Artificial Lift in the Middle East. He also inquired about SLB's geothermal initiatives, particularly the partnership with Ormat and the confidence in scaling enhanced geothermal to 100+ MW plants, drawing parallels to the early days of shale development.

Answer

CEO Olivier Le Peuch described production recovery as a new strategic chapter for SLB, driven by significant opportunities for value creation through technology, integration, and digital solutions. He highlighted positive customer response to lift solutions, digital production, and chemistry for production assurance and reservoir performance, emphasizing SLB's integrated capabilities. Regarding geothermal, Le Peuch explained the partnership with Ormat aims to combine their respective leaderships to optimize and scale unconventional geothermal, starting with pilot projects to ensure economic viability and safety before broader market offering.

David Anderson asked about the opportunity for Tenaris in the emerging unconventional resource plays in Saudi Arabia (Jafurah) and the UAE (ADNOC), and a follow-up question on where the seamless pipe for these projects is sourced, given Tenaris's lack of seamless production in the Middle East.

Answer

COO Gabriel Podskubka expressed excitement about unconventional opportunities in the Middle East, noting Tenaris's significant share in the seamless unconventional space in Saudi (Jafurah) and participation in UAE's ADNOC plays. He confirmed that for pipelines in Saudi, material is sourced domestically from their Jubail mill. For OCTG, it's a mix of domestically produced ERW welded pipe and seamless pipe sourced from local mills in Saudi, with finishing in their Abu Dhabi facility for UAE projects, and material also brought from main mills in Argentina and Mexico.

David Anderson sought insight into how volumes might progress in the second half of the year if oil prices and tariffs remain stable, and asked if the offshore component of the business is expected to grow into late 2025 and 2026.

Answer

Chairman and CEO Paolo Rocca noted it was too early for a precise prediction but highlighted the resilience of Tenaris's client portfolio, which consists mainly of major operators with long-term programs. Chief Operating Officer Gabriel Podskubka affirmed the offshore market's strength, citing a high backlog and significant project wins like Shell's Bonga project in Nigeria, and expects the segment to remain very resilient through 2025 and into 2026.

David Anderson sought clarification on TechnipFMC's 2026 subsea guidance, including subsea services growth, the impact of shortened cycle times and Subsea 2.0 on backlog conversion, and the expected percentage of Subsea 2.0 in next year's revenue and inbound orders.

Answer

Chair and CEO Douglas Pferdehirt emphasized TechnipFMC's unique visibility for 2026, strong backlog quality, and faster margin growth than revenue. He stated Subsea Services growth aligns with the overall business and that Subsea 2.0 and iEPCI™ accelerate backlog conversion. He projected 40% of capacity on Subsea 2.0 by year-end 2025, with inbound orders exceeding 50% and growing.

David Anderson asked for a breakdown of the 2026 subsea guidance, focusing on the growth of the service component, the acceleration of backlog conversion due to shortened cycle times and Subsea 2.0, and the expected percentage of revenue and inbound from Subsea 2.0 for next year.

Answer

Doug Pferdehirt, Chair and CEO, highlighted TechnipFMC's unique visibility for 2026 guidance, strong backlog quality, and anticipated margin expansion at a faster rate than revenue growth. He indicated subsea services growth would be in line with the overall business. He explained that cycle time reduction through iEPCI and Subsea 2.0 improves backlog conversion and returns. He projected that capacity working on Subsea 2.0 would approach 40% by the end of 2025, with inbound orders for Subsea 2.0 and iEPCI continuing to grow as a percentage of total orders.

David Anderson from Barclays sought clarity on the offshore market outlook, contrasting differing views from drillers and service companies, and asked for more color on tendering activity, particularly regarding project types and the sustainability of the $10 billion annual inbound target.

Answer

CEO Douglas Pferdehirt dismissed concerns of a slowdown, stating that any issues are company-specific, not industry-wide. He affirmed that 2026 activity will be more significant than 2025, with no plateau in sight. He detailed strong tendering across mature markets like the U.S. Gulf of Mexico and Brazil, emerging basins like Suriname and Namibia, and a solid base of brownfield projects, expressing confidence in the multi-year outlook.

David Anderson inquired about the drivers behind Halliburton's stronger-than-expected Q3 margins and the extent to which the announced $100 million quarterly cost reductions impacted the current quarter's numbers. He also asked for clarification on Halliburton's specific contributions to the VoltaGrid partnership, the typical size of projects, and the timeline considering supply chain tightness.

Answer

Eric Carre, Executive Vice President and CFO, explained that approximately half of the Q3 margin beat resulted from earlier-than-expected labor cost savings. He also cited strong operational performance in North America (less whitespace, Gulf of America) and international completion tools and cementing. Jeffrey Miller, Chairman, President, and CEO, confirmed VoltaGrid's strong supply chain position. He emphasized Halliburton's contribution as industrial scale, international execution capabilities, customer relationships, market knowledge, and project management expertise, aligning with VoltaGrid's large-scale project announcements.

David Anderson asked about the drivers behind Halliburton's stronger-than-expected margins in Q3 2025, specifically how much of the $100 million cost reduction was realized, and sought clarification on Halliburton's specific contributions to the VoltaGrid partnership, project sizes, and timeline considerations including supply chain.

Answer

Eric Carre, Executive Vice President and CFO, stated that approximately half of the margin beat came from earlier-than-expected labor cost reductions, complemented by less North America whitespace, strong Gulf of America performance, and international completion tool and cementing business. Jeffrey Miller, Chairman, President, and CEO, highlighted Halliburton's industrial scale, international expertise, project management capabilities, and customer relationships as key contributions to the VoltaGrid partnership, confirming alignment on project size and VoltaGrid's strong supply chain position.

David Anderson asked about the growth outlook for Halliburton's portfolio in Saudi Arabia for the year and questioned the margin progression after a decline in Q1 and weaker guidance for Q2, seeking clarity on the full-year outlook.

Answer

CEO Jeffrey Miller confirmed that Halliburton expects its portfolio in Saudi Arabia to grow in 2025, driven by opportunities like Jafurah and the strength of its growth engines in unconventional, intervention, and artificial lift. CFO Eric Carre addressed margins, explaining the Q2 D&E margin decline was due to specific items like tariffs and mobilization costs, not a new run rate. He projected that second-half 2025 margins would be in the 'same ZIP code' as the second half of 2024.

David Anderson posed a conceptual question on how Ormat intends to capture the current high PPA price environment, given its limited near-term contracting opportunities, asking about levers like M&A, greenfield development, EGS, and the Schlumberger partnership.

Answer

Executive Doron Blachar explained that the main strategies to capture high PPA prices are through new greenfield projects expected to come online from 2028 and the recontracting of existing assets like Blue Mountain. He confirmed a significant increase in exploration activities to support this. He also mentioned the Schlumberger partnership is focused on co-developing projects, which would boost Ormat's product sales and potentially its electricity segment growth.

David Anderson of Barclays asked about the trend of lower content per vehicle in the EV thermal barrier business, its relation to the new GM LFP contract, and posed a strategic question regarding the potential for European market expansion versus the U.S. market.

Answer

CFO Ricardo Rodriguez explained that content per vehicle is expected to decrease with the adoption of prismatic cells, but this allows for better CapEx payback by sharing equipment across OEMs. President and CEO Don Young emphasized that new form factors are additive to an expanding market. Regarding Europe, Rodriguez noted a preference to supply from Mexico to leverage existing investments, while Young highlighted that European OEM partners are dedicated to electrification and will help diversify Aspen's customer base.

David Anderson asked about the drivers behind the exceptionally strong orders in the aftermarket (RSL) business and questioned the potential risks to that segment if economic uncertainty caused customers to delay spending.

Answer

CEO Jillian Evanko attributed the strong RSL orders to broad-based demand in both retrofits/service and spares, with a particularly strong quarter in the Americas and two larger projects in mining and CCUS. Both she and CFO Joseph Brinkman expressed confidence in the segment's resilience, noting that while a retrofit could be delayed, the mission-critical nature of the installed base makes maintenance and spares spending non-discretionary and less cyclical.

David Anderson inquired about the drivers behind the volatility in sales per rig within the Pressure Control segment. He also asked for a historical perspective on the 2018 tariffs, questioning if they drove the revenue-per-rig increase in 2019-2020 and what might be done differently now.

Answer

Chairman and CEO Scott Bender explained that revenue-per-rig volatility is primarily caused by lumpy and unpredictable customer call-offs for production trees. Regarding the 2018 tariffs, Mr. Bender and President Joel Bender clarified that a tariff exclusion, which lasted 12-18 months, had a significant positive impact, rather than the tariffs themselves. Scott Bender reiterated his belief in a low-cost manufacturing source but stressed the current geopolitical risks from China must be addressed.

Asked about North American PCT drivers, the impact of E&P consolidation, and sought clarification on why rig count, not production, was cited as a headwind.

Answer

Executives clarified that U.S. PCT revenue actually grew 6% sequentially and that headwinds were in the PAT and Drilling segments. Long-term North American PCT growth drivers are increasing chemical intensity and Gulf of Mexico activity. E&P consolidation is viewed as a net positive due to strong relationships with IOCs.