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    David Smith • Pickering Energy Partners

    David Smith's questions to Helmerich and Payne Inc (HP) leadership

    David Smith's questions to Helmerich and Payne Inc (HP) leadership • Q3 2025

    Question

    David Smith of Pickering Energy Partners sought clarification on the sharply lower implied Q4 CapEx guidance and asked how the $50-75 million cost savings target relates to the SG&A performance already seen in Q3.

    Answer

    CFO J. Kevin Vann confirmed the low Q4 CapEx figure is correct, as spending was heavily front-loaded in fiscal 2025. On cost savings, he explained that while the Q3 SG&A of $66 million reflects some progress, the full $50 million run-rate savings is targeted to be fully effective at the start of fiscal 2026. He expressed confidence in achieving the $50 million and believes the full $50-75 million range is achievable.

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    David Smith's questions to Helmerich and Payne Inc (HP) leadership • Q2 2025

    Question

    David Smith of Pickering Energy Partners asked for clarification on the implied decrease in SG&A expenses for the second half of the fiscal year and inquired about the expected future run rate, including all contemplated synergies.

    Answer

    SVP and CFO Kevin Vann projected a full-year fiscal 2026 run-rate savings of $50 million to $75 million, primarily from G&A reductions and other permanent cost cuts. He confirmed that this synergy estimate does not include savings from lower costs on suspended rigs.

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    David Smith's questions to Helmerich and Payne Inc (HP) leadership • Q1 2025

    Question

    David Smith asked for details on the drivers behind the KCA Deutag (KCAD) international onshore margin guidance and the reasons for the difference between the forward outlook and KCAD's historical performance in calendar Q3 2024.

    Answer

    SVP and CFO Kevin Vann explained the guidance range reflects general market softness, the partial-quarter impact from the acquisition's closing date, and ongoing cost management for suspended rigs. Vann stated the vast majority of the performance decline from calendar Q3 2024 is due to Saudi rig suspensions, which represent an approximate $80 million negative impact on a full-year run-rate basis.

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    David Smith's questions to Seadrill Ltd (SDRL) leadership

    David Smith's questions to Seadrill Ltd (SDRL) leadership • Q2 2025

    Question

    David Smith from Pickering Energy Partners asked about Seadrill's capital investment strategy for idle assets, specifically whether the company would start the Special Periodic Survey (SPS) for the West Gemini without a contract. He also sought commentary on why operators are locking in long-lead-time contracts despite near-term market softness.

    Answer

    President & CEO Simon Johnson confirmed that Seadrill is reluctant to commit discretionary capital for an SPS without a firm contract in place. Regarding long-lead-time contracts, Mr. Johnson stated that while operators likely see a future advantage, Seadrill is cautious about locking in 'long and low' rates, viewing its near-term market exposure as operating leverage. EVP & CCO Samir Ali added that Seadrill's focus is on minimizing idle time in 2025 while securing strong near-term rates.

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    David Smith's questions to Seadrill Ltd (SDRL) leadership • Q1 2025

    Question

    David Smith inquired about the industry trend towards performance-based contracts, prompted by a competitor's recent deal, and asked if this is pressuring base day rates. He also asked a follow-up question about the stacking and reactivation costs for the West Capella rig.

    Answer

    Grant Creed, an executive, clarified that performance-based contracts are not a new concept for Seadrill and that the company is open to them for the right client and rig, citing the West Vela's high efficiency as a prime example. Regarding the West Capella, executive Simon Johnson explained that the rig is in a dynamic cost ramp-down phase as they still pursue opportunities, so a steady-state stacking cost has not yet been reached and will be updated in the next quarter.

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    David Smith's questions to Seadrill Ltd (SDRL) leadership • Q4 2024

    Question

    David Smith asked for details on the West Tellus's 50 days of downtime in Brazil and sought confirmation and context regarding the $213 million litigation claim from Petrobras related to the historic Seche rig contracts.

    Answer

    President and CEO Simon Johnson confirmed the downtime was due to a stricter interpretation of existing regulations by the Brazilian regulator, not a change in rules. Regarding the litigation, he confirmed the $213 million claim amount, noted that contracts have penalty caps, and stated that Seadrill is in the early stages of evaluating its options and intends to vigorously defend its position.

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    David Smith's questions to Noble Corporation PLC (NE) leadership

    David Smith's questions to Noble Corporation PLC (NE) leadership • Q2 2025

    Question

    David Smith asked why operators are signing long-lead-time contracts despite near-term market softness, and whether aggressive bidding to fill contract gaps could depress overall market pricing.

    Answer

    President and CEO Robert Eifler agreed the dynamic is unusual, attributing it to a strong consensus view of a market upswing in late 2026 and 2027. He acknowledged that drillers will likely offer discounts for short-term 'gap filler' work but believes this is 'noise' that will not affect pricing for longer-term contracts, as the entire industry anticipates future market strength.

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    David Smith's questions to Noble Corporation PLC (NE) leadership • Q1 2025

    Question

    David Smith asked about the new performance-based contracts with Shell and TotalEnergies, questioning if Noble's experience in Guyana informed its willingness to accept rate risk and if such structures are limited to long-duration programs. He also inquired how the CEA index pricing mechanism would account for the variable rate component.

    Answer

    President and CEO Robert Eifler confirmed that these strategic, performance-based contracts are a win-win but only work in select scenarios like long-term development programs. He noted that Noble's extensive internal performance data analysis provided the confidence to enter these agreements. Regarding the CEA index, Eifler explained the mechanism is flexible and designed to incorporate such nuances through a mutually agreed process, similar to how they internally forecast bonus achievement.

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    David Smith's questions to Noble Corporation PLC (NE) leadership • Q4 2024

    Question

    David Smith asked about the reasons for the contracting slowdown in the U.S. Gulf of Mexico and whether the low Q4 SG&A expense is a sustainable run rate.

    Answer

    President and CEO Robert Eifler attributed the U.S. Gulf slowdown to capital discipline among independents, noting this market can ramp down and up quickly. He contrasted this with West Africa, where he sees a more durable rebound in 2026. Regarding SG&A, management confirmed that Q4 is a decent baseline, reflecting the realization of about 50% of the Diamond acquisition synergies, with more to come in 2025.

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    David Smith's questions to Noble Corporation PLC (NE) leadership • Q3 2024

    Question

    David Smith from Pickering Energy Partners asked for an update on the outlook and current operating costs for the idle 'Developer' rig. He also followed up on the 'Globetrotter' rigs, inquiring if there is enough potential demand to keep both units working in 2025 and if they are expected to remain in the Gulf of Mexico.

    Answer

    President and CEO Robert Eifler grouped the 'Developer' with other similar rigs, seeing opportunities beginning in late 2025 and 2026. CFO Richard Barker specified the rig's current operating cost is approximately $100,000 per day. Regarding the Globetrotters, Mr. Barker confirmed there are active conversations for both rigs for work starting after H1 2025, with a higher focus in the U.S. Gulf, but noted the company would act decisively if it becomes a one-rig market.

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    David Smith's questions to Flowco Holdings Inc (FLOC) leadership

    David Smith's questions to Flowco Holdings Inc (FLOC) leadership • Q2 2025

    Question

    David Smith sought confirmation of the Q3 adjusted EBITDA guidance range of $72 million to $76 million and asked for guardrails on the key moving parts. He specifically questioned if rental revenue would be roughly flat sequentially, excluding the contribution from the recent acquisition.

    Answer

    President, CEO & Director Joe Bob Edwards confirmed the Q3 guidance range and clarified that rental revenue will continue to increase, not be flat. He explained the near-term weakness is driven by an anticipated sequential decline in lower-margin product sales (VRU and compressor packages), while downhole component sales are expected to be flat. He reiterated confidence in achieving the previously guided low double-digit year-over-year EBITDA growth for the full year.

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    David Smith's questions to Flowco Holdings Inc (FLOC) leadership • Q1 2025

    Question

    David Smith asked if the expected mix of growth CapEx between business segments remains unchanged for the year and whether this spending outlook is supported by existing client activity, growing market share, or demand from new clients.

    Answer

    CFO Jonathan Byers confirmed that the growth CapEx allocation between segments is relatively unchanged, maintaining roughly a 60-40 split. CEO Joseph Edwards added that the spending is supported by 'a little bit of all of the above,' highlighting that customer conversations, particularly for the fast-growing VRU and HPGL product lines, remain consistent or slightly better than the previous quarter, driven by production focus and specific product advantages.

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    David Smith's questions to Flowco Holdings Inc (FLOC) leadership • Q4 2024

    Question

    David Smith asked about Flowco's perspective on M&A opportunities, given the company's history and current market valuations, and also inquired about the management's comfort level with financial leverage.

    Answer

    CEO Joe Bob Edwards stated that while M&A is part of their strategy, the company will remain highly disciplined, focusing exclusively on 'returns accretive' deals with like-minded, technology-oriented teams. He emphasized that a deal being accretive to earnings does not mean it's accretive to returns. Regarding the balance sheet, Edwards expressed comfort with the current leverage level and availability, stressing a prudent approach and no desire to test the limits of leverage.

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    David Smith's questions to Tidewater Inc (TDW) leadership

    David Smith's questions to Tidewater Inc (TDW) leadership • Q2 2025

    Question

    David Smith of Pickering Energy Partners sought quantification for the Q3 utilization improvement, asked for color on the implied Q3 day rate decline, and requested details on the activity drivers behind the strong implied Q4 margin uplift.

    Answer

    SVP Wes Gotcher projected a utilization improvement of a 'few percentage points' for Q3 and confirmed the implied day rate softness is driven by expected weakness in the North Sea and West Africa, plus the absence of Q2's favorable FX impact. EVP & COO Piers Middleton cited Q4 strength from new subsea and drilling projects in Africa and Australia, while Gotcher added that a 50% reduction in drydock days would boost Q4 utilization by about three percentage points.

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    David Smith's questions to Tidewater Inc (TDW) leadership • Q1 2025

    Question

    David Smith asked for the decision-making framework behind stacking a vessel versus keeping it active. He also confirmed the Q2 guidance and asked if the implied second-half margin improvement was driven by utilization or pricing.

    Answer

    CEO Quintin Kneen explained that the decision to stack is based on economic factors including regional opportunities, high maintenance costs, and potential for sale, particularly for the non-core vessels in question. Executive West Gotcher confirmed the Q2 guidance and stated the second-half margin uplift is primarily driven by better utilization, with some benefit from lower OpEx as dry docks decline.

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    David Smith's questions to Tidewater Inc (TDW) leadership • Q4 2024

    Question

    David Smith of Pickering Energy Partners sought clarification on the 2025 drydock schedule, which seemed high, and inquired about the duration of new contracts and chartering strategy amid a softer market.

    Answer

    CFO Samuel Rubio attributed the 2025 drydock schedule to some project carryovers from 2024 and an increase in engine overhauls. Executive West Gotcher stated the average duration for new Q4 contracts was 12 months, while CCO Piers Middleton added that the strategy remains focused on shorter-term charters to capture expected market improvements in 2026-2027.

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    David Smith's questions to Tidewater Inc (TDW) leadership • Q3 2024

    Question

    David Smith questioned the Q4 guidance, noting that flat revenue despite higher expected utilization implies a lower average day rate. He also asked about factors limiting the ability to move vessels from the weaker North Sea market to other regions.

    Answer

    Executive West Gotcher confirmed the inference, attributing the dynamic to rate pressure in the North Sea and project delays in the Americas and Asia Pacific. CCO Piers Middleton explained that vessel mobility is limited because specific drilling programs in regions like the Mediterranean require vessel specifications, such as large mud capacity, that many North Sea vessels lack.

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    David Smith's questions to Expro Group Holdings NV (XPRO) leadership

    David Smith's questions to Expro Group Holdings NV (XPRO) leadership • Q2 2025

    Question

    David Smith of Pickering Energy Partners asked about the drivers for the impressive Q2 order intake and whether it signals a sustainable trend for 2025. He also inquired about opportunities for improved free cash flow conversion in a potentially flat 2026, focusing on CapEx flexibility, working capital, and reduced one-off charges.

    Answer

    CEO Michael Jardon explained that the strong Q2 orders resulted from a combination of contract renewals, extensions, and favorable timing, supported by a robust ongoing bidding environment. Regarding 2026 free cash flow, both Jardon and CFO Sergio Maiworm highlighted that margin expansion would be driven by new technology adoption, acquisition synergies, and the 'Drive 25' cost-saving initiative. They also confirmed that CapEx is tied to specific projects and can be flexed accordingly, reinforcing a continued focus on margin and free cash flow growth.

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    David Smith's questions to Valley National Bancorp (VLY) leadership

    David Smith's questions to Valley National Bancorp (VLY) leadership • Q2 2025

    Question

    David Smith from Truist Securities asked about the competitive landscape for banking the technology and software sector and how recent developments in the New York mayoral race could impact Valley's rent-regulated multifamily loan portfolio.

    Answer

    Chairman & CEO Ira Robbins explained that the 2022 acquisition of a team with deep Israeli market connections provided the infrastructure to expand its technology banking business domestically. EVP & Chief Credit Officer Mark Saeger addressed the NYC portfolio, stating the $600 million in rent-stabilized loans is granular and was underwritten to in-place cash flows, mitigating risks from future rent increase limitations.

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    David Smith's questions to Helix Energy Solutions Group Inc (HLX) leadership

    David Smith's questions to Helix Energy Solutions Group Inc (HLX) leadership • Q2 2025

    Question

    David Smith from Pickering Energy Partners sought to reconcile the significant quarter-over-quarter decline in Well Intervention segment revenue and profitability, noting that operating days appeared to have increased.

    Answer

    CFO Erik Staffeldt clarified that Q2 results were impacted by a slower start in the shallow water segment and about 20 deferred mobilization days that pushed revenue into Q3. He also noted that the Q4000's Q1 utilization included 45 non-revenue transit days and that its work in Nigeria had a different rate structure with significant pass-throughs, skewing the per-day rate comparison between quarters. COO Scotty Sparks added the deferred mobilization days related to the Q5000, Q4000, and Well Enhancer.

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    David Smith's questions to Helix Energy Solutions Group Inc (HLX) leadership • Q1 2025

    Question

    David Smith questioned the long-term opportunities for the North Sea vessels, including their potential for work in other regions and the associated CapEx. He also asked about the Q4000's return to the U.S. Gulf from Nigeria and whether there is pricing pressure in the U.S. heavy well intervention market.

    Answer

    CEO Owen Kratz explained that redeploying the depth-limited North Sea vessels would require capital upgrades, a decision they are deferring while assessing the 2026 UK market. COO Scotty Sparks stated the Q4000 returned to the Gulf of Mexico for contracted work after its Africa project ended, aligning with their strategy to protect the GOM market. Sparks confirmed they are not currently seeing pricing pressure in the U.S. Gulf, with rates having stabilized.

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    David Smith's questions to Helix Energy Solutions Group Inc (HLX) leadership • Q3 2024

    Question

    David Smith of Pickering Energy Partners sought to clarify Helix's position amid concerns of a softening deepwater market, asking about contract coverage for heavy well intervention vessels in 2025-2026, the drivers behind the large 2025 EBITDA uplift guidance, and interest in the Q4000 in West Africa.

    Answer

    COO Scott Sparks confirmed that the heavy well intervention fleet is almost fully contracted for 2025 at improved rates, with significant commitments already in place for 2026. CFO Erik Staffeldt explained the $60-$100 million EBITDA increase for 2025 is driven by new contracts with approximately 40% higher rates in Brazil and 20% higher rates for the Q5000, with the range reflecting utilization variables. Sparks noted strong follow-on interest for the Q4000 in West Africa, which must be balanced against maintaining market share in the Gulf of Mexico.

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    David Smith's questions to Northern Trust Corp (NTRS) leadership

    David Smith's questions to Northern Trust Corp (NTRS) leadership • Q2 2025

    Question

    David Smith asked for color on the drivers behind the strong deposit growth in the quarter and requested more detail on which segments within asset servicing are showing the strongest growth.

    Answer

    EVP & CFO David Fox attributed the higher deposits to a 'risk-off' environment and some large, concentrated client deposits, noting that levels are beginning to normalize in Q3. Chairman and CEO Michael O'Grady highlighted the 'upmarket of asset owners' as a key area of strength in asset servicing, citing several significant recent client wins.

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    David Smith's questions to Northern Trust Corp (NTRS) leadership • Q1 2025

    Question

    David Smith asked how market volatility impacts new business and client attrition across segments and sought confidence that the company is making necessary growth investments while simultaneously reducing expenses, given that organic flows appear to be lagging peers.

    Answer

    CEO Mike O'Grady stated that while volatility can cause clients to pause decisions, especially on the wealth front, it hasn't had a significant impact yet and can build the pipeline. He affirmed confidence in funding growth, explaining that productivity initiatives create the capacity to invest in key areas like alternatives, family office services, and new ETF launches, which are crucial for driving organic growth.

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    David Smith's questions to Zions Bancorporation NA (ZION) leadership

    David Smith's questions to Zions Bancorporation NA (ZION) leadership • Q2 2025

    Question

    David Smith from Truist Securities asked whether current GAAP equity levels constrain the bank's ability to accelerate loan growth, given the solid credit performance and positive customer sentiment.

    Answer

    CFO Ryan Richards stated that the bank does not feel capital constrained and is oriented towards pursuing organic growth, supported by investments in marketing and hiring revenue producers. President & COO Scott McLean added that intensified client and prospect calling programs are underway to generate more opportunities and compete effectively.

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    David Smith's questions to Webster Financial Corp (WBS) leadership

    David Smith's questions to Webster Financial Corp (WBS) leadership • Q2 2025

    Question

    David Smith of Truist Securities asked if there could be a further benefit to Net Interest Income (NII) from the recovery of interest on non-accrual loans as credit quality improves.

    Answer

    Chairman & CEO John Ciulla acknowledged that a downward trend in non-performers should be a net positive but stated that the company's forecast does not assume a material NII impact from such recoveries. He explained these events are often unpredictable quarter-to-quarter.

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    David Smith's questions to Valaris Ltd (VAL) leadership

    David Smith's questions to Valaris Ltd (VAL) leadership • Q1 2025

    Question

    David Smith of Pickering Energy Partners inquired about the demand for 7th generation drillships within Valaris's tracked floater opportunities and the pricing premium they command over 6th gen rigs. He also asked about the company's perspective on performance-based contract incentives.

    Answer

    President and CEO Anton Dibowitz stated that the overwhelming majority of the 25 tracked opportunities are for drillships, with customers preferring higher-spec 7th gen assets for their efficiency and optionality, especially on long-term projects. CCO Matt Lyne added that features like higher hook load and dual BOPs on 7th gen rigs offer significant cost savings to customers. Regarding performance bonuses, Dibowitz confirmed Valaris is open to such structures, which work best on long-term development programs, but noted they are complex to negotiate and not all customers prefer them.

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    David Smith's questions to Valaris Ltd (VAL) leadership • Q3 2024

    Question

    David Smith inquired about the cost reduction details for warm-stacked rigs, including the timing, magnitude, and potential catch-up costs, and asked about the criteria for deciding to preservation stack a rig.

    Answer

    CEO Anton Dibowitz explained that warm stacking aims to reduce daily costs to the $60,000 range over about 90 days by cutting manning and fuel. He estimated reactivation costs at $5-$10 million. CCO Matt Lyne added specific targets of ~$60k/day for a drillship and ~$50k/day for a semi-submersible. Dibowitz noted that preservation stacking is only considered if there is no line of sight to work for approximately two years, which is not the current outlook given the strong pipeline for 2026.

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    David Smith's questions to Atlas Energy Solutions Inc (AESI) leadership

    David Smith's questions to Atlas Energy Solutions Inc (AESI) leadership • Q4 2024

    Question

    David Smith asked for the company's current contracted volume coverage for the year. He also inquired about customer interest in signing longer-term contracts and how Atlas views the trade-off between securing longer duration versus pricing.

    Answer

    An executive stated that Atlas currently has approximately 22 million tons contracted for 2025 and expects that number to grow. Another executive noted a pull from customers for 100% supply agreements, adding that while longer-term deals may have slightly lower pricing, the trade-off is favorable due to the security of higher volumes.

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    David Smith's questions to Atlas Energy Solutions Inc (AESI) leadership • Q3 2024

    Question

    David Smith asked about the commercial ramp-up cadence for the Dune Express, when it might reach its full run-rate, and how its margin profile might progress during the initial ramp-up period.

    Answer

    CEO John Turner projected the Dune Express would not be fully ramped until mid-2025. Executive Chris Scholla noted strong customer interest and a focus on seamlessly transitioning clients to the new system. CFO Blake McCarthy clarified that there is no introductory pricing; instead, the company is moving toward a single, fully delivered price for its sand and logistics services, with more detailed 2025 margin guidance to come.

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    David Smith's questions to Core Laboratories Inc (CLB) leadership

    David Smith's questions to Core Laboratories Inc (CLB) leadership • Q4 2024

    Question

    David Smith of Pickering Energy Partners questioned whether geopolitical issues were causing an outsized impact on Q1 Reservoir Description margins and asked if the segment's strong 2024 incremental margins could be a good model for 2025.

    Answer

    Executive Lawrence Bruno confirmed that new sanctions announced in January had an immediate and significant negative effect on Q1 profitability and margins for the Reservoir Description segment. However, he agreed that the segment's historical incremental margin of nearly 60%, as seen in 2024, is a good framework for the rest of 2025, assuming revenue growth resumes.

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    David Smith's questions to State Street Corp (STT) leadership

    David Smith's questions to State Street Corp (STT) leadership • Q4 2024

    Question

    David Smith of Truist Securities asked about the current penetration of the Alpha platform, its medium-term targets, and its primary benefits. He also sought an explanation for why the Q4 U.S. deposit beta was lower than the beta experienced during the rate-hiking cycle.

    Answer

    CEO Ron O'Hanley and incoming Interim CFO Mark Keating highlighted that Alpha is a distinctive front-to-back offering that secures longer-term contracts (7+ years) and drives servicing wins, with 35 clients announced and 25 installed. CFO Eric Aboaf addressed the deposit beta question, stating that while betas steepened during the hiking cycle, the current 65% beta for U.S. dollars is in the same 'general zone' and that quarter-to-quarter figures can be affected by client and deposit mix shifts.

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    David Smith's questions to Transocean Ltd (RIG) leadership

    David Smith's questions to Transocean Ltd (RIG) leadership • Q3 2024

    Question

    David Smith of Pickering Energy Partners asked for Transocean's perspective on the decision process for stacking a rig, given its historical leadership in reducing industry capacity. He also inquired about specific metrics needed to begin returning cash to shareholders.

    Answer

    CEO Jeremy Thigpen stated that Transocean constantly evaluates its fleet and will scrap assets with a dim long-term outlook, viewing the current market as an opportune time for the industry to sideline lower-spec rigs. President & COO Keelan Adamson added that this high-grades the entire industry fleet. Regarding shareholder returns, Thigpen clarified that achieving a 3.5x net debt-to-EBITDA ratio is the key, hard-coded metric in their credit facility that must be met before distributions can be considered.

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