Derek Podhaizer • Piper Sandler & Co.

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SVP Trey Adams explained the rig count range is sensitive to commodity price shifts that could affect private E&P activity. CEO John Lindsay clarified that future incremental activity in Saudi Arabia, particularly in gas-focused areas like Jafura, is expected to utilize the legacy KCA fleet rather than H&P's FlexRigs.

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CFO Assi Ginzburg explained that permitting times in Nevada have dramatically shortened from over a year to as little as two months. For Blue Mountain, he projected approximately $4 million in EBITDA for the second half of 2025, with a 10-15% increase by 2027 after planned upgrades. He also noted significant future upside from a PPA renewal post-2029 and its potential for EGS development.

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CFO Assaf Ginzburg attributed the Q4 storage margin fluctuation to the terms of a new tolling agreement and guided to a 15-20% margin for the full year 2025. He noted that while tariffs on Chinese goods would add cost, the impact is mitigated by the significant overall decline in battery prices. CEO Doron Blachar described the SLB partnership as a long-term initiative to co-develop geothermal projects and advance EGS technology.

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President, CEO & Chairman John Schmitz clarified that Peak's fleet is expanding from smaller, portable diesel units to larger natural gas generators for midstream applications. EVP & CFO Christopher George noted that total fleet size is not disclosed and future scale depends on the outcome of the strategic review. Regarding CapEx, George explained that the 20% growth in 2026 is underwritten by existing contracts, with approximately $75-100 million in capital spending planned for the first half of 2026, but new contracts could increase this figure.

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President, CEO & Director Joe Bob Edwards attributed the consistent rental growth to market adoption of HPGL and VRUs displacing legacy technologies like ESPs, a trend he expects will continue to drive higher margins. He clarified that FloQo's primary competitor is the inferior ESP technology in a large market, not other HPGL providers. He also stated the Archrock asset integration is seamless, requiring minimal capital and only three new hires.

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CEO Joseph Edwards stated that there is increased market chatter and encouraging customer conversations pointing toward broader, programmatic adoption of HPGL, driven by tariffs and favorable well characteristics. Regarding shareholder returns, Edwards emphasized that the primary focus is on growing ROCE. He described the new dividend as a defensible first step and noted that while a share buyback is in the 'tool bag,' the company is cautious due to its limited public float.

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CEO Joe Bob Edwards detailed that Flowco's growth strategy for HPGL involves pushing the technology's operating envelope to expand its applications and systematically targeting customers who currently use competing technologies like ESPs. He noted they aim to penetrate roughly 40% of the addressable market. Regarding free cash flow, Edwards declined to provide specific full-year guidance but stated that expectations remain in line with what was laid out during the IPO roadshow.

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President and CEO John Turner and SVP & President of the Power Business Unit Tim Ondrak highlighted that non-oil and gas opportunities in sectors like manufacturing and technology offer longer-term contracts, enhancing cash flow stability. EVP & President of Sand and Logistics Chris Scholla confirmed supply contraction by noting one major competitor's mine has shut down and widespread layoffs are occurring, estimating at least 20% of the market's stated capacity is effectively offline.

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CEO John Turner stated that Atlas does not see near-term market upside, as operators have adopted a 'wait-and-see' attitude. CFO Blake McCarthy added that Q2 guidance is conservative, but logistics margins are improving due to the Dune Express. COO Chris Scholla expressed high confidence in the 22 million tons of allocated volume, noting that 75% is tied to efficient completion methods and over 70% is with large-cap operators, providing stability.

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President of U.S. Operations, Guillermo Moreno, confirmed Tenaris is seeing an upside from gas activity in Appalachia, driven by traditional private clients. He also noted that high imports in H1 2025 increased U.S. OCTG inventories by about one month of consumption to roughly seven months, with a reduction expected to begin in Q3.

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Chairman and CEO Paolo Rocca conceded that achieving a 25% margin in the second half would be difficult in the current environment, but he expects margins to remain within a 20-25% range. He clarified that strong Q1 performance was not due to front-loading, as the Rig Direct model means invoicing occurs upon pipe usage, precisely tracking activity. The strength was driven by a record season in Canada and resilient operations from U.S. clients.

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Luca Zanotti, President of U.S. Operations, addressed the North American market, stating that imports have decreased, inventories are normalizing to just under 6 months, and the supply-demand balance has improved. He noted demand from majors is disciplined, but smaller and gas-focused operators are adding activity. Gabriel Podskubka, Chief Operating Officer, discussed the Middle East, highlighting resilient gas-related drilling across the region while oil-related activity is more uneven. He also noted a major CCS pipeline award in Saudi Arabia.

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President and CEO Kevin Neveu explained that private operators are currently leading the rig additions in U.S. gas basins, which is typical for a market turn. He stated Precision is targeting an increase to 40-45 active U.S. rigs over time, implying 5-7 more gas rigs over the next several quarters, assuming stable oil prices. Regarding the Canadian double rig segment, Neveu described it as oversupplied and fragmented, noting that while consolidation is needed, Precision is unlikely to be the consolidator due to its existing market share.

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CEO Sam Sledge explained that the frac market oversupply is concentrated in older diesel equipment, and ProPetro is choosing to idle fleets rather than accept sub-economic pricing, viewing this as a long-term tailwind. For Pro Power, Sledge noted the company is pleased with its current flexible power generation assets and will remain focused on the strong demand from oil and gas customers initially, while exploring non-oil and gas opportunities long-term.

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CEO Sam Sledge specified that the initial PROPWR order was for turbines (5 MW and up) while the most recent order was for reciprocating engines (3 MW and up). Regarding e-frac maintenance, Sledge described the results as 'phenomenal.' CFO David Schorlemer quantified this, stating they are seeing 30% to 50% lower maintenance CapEx intensity compared to conventional fleets due to the simpler design with fewer moving parts.

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CEO Michael Jardon clarified that MENA remains Expro's most profitable region and the slight quarterly dip was due to project timing, not a fundamental issue. He highlighted robust activity in Saudi unconventional gas and Algerian production optimization. CFO Sergio Maiworm confirmed the plan to repurchase approximately $40 million in stock in 2025, with an accelerated pace in the second half. He added that while share repurchases are currently the preferred method for capital return, the board continuously evaluates all options.

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CEO Ron Gusek explained that he expects an accelerated attrition rate, potentially in the mid-teens, for older Tier 2 diesel equipment due to the challenging economic environment, which will improve supply/demand dynamics. Regarding the sand slurry system, Gusek stated it has applications across the Permian Basin (Midland and Delaware) and potentially in other wet sand basins like the Haynesville, wherever it makes economic sense over the right distances.

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President & CEO William Hendricks explained that Q3 completions activity is steady across basins without significant shifts, attributing the stability to strong customer relationships and the high utilization of their technology-advanced Emerald fleets. Regarding technology, he highlighted the ongoing rollout of the Cortex automation platform for drilling and the Vertex automated frac system, which are designed to improve competitiveness and add revenue streams, rather than focusing on M&A.

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CFO & President Kyle Ramachandran explained the new capacity went to an existing, high-quality midstream customer at attractive pricing, balancing a shorter duration with higher returns. While not providing a specific timeline for the next data center deal, he confirmed advanced dialogues with multiple parties and noted that significant capacity remains available for large-scale projects.

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EVP & CFO Anuj Dhruv detailed the strategy, confirming the company will continue opportunistic debt reduction toward its long-term goal of a 1x gross leverage ratio. He noted that a refinancing of the 2030 notes is attractive, with key objectives being to reduce the overall tower size, manage maturities, lower interest expense, and revise covenants.

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President and CEO Girish Saligram explained it is difficult to quantify the tariff impact yet, but noted the Production & Intervention segment would see the most pronounced effect. He stated the most tangible near-term impact is uncertainty leading to reduced activity. On digital, Saligram believes spending on solutions that deliver clear value, like production optimization, could actually increase.

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CEO Girish Saligram attributed the North America margin improvement to three factors: aggressive cost management, pricing discipline backed by technology and service quality, and market share gains in specific products and basins. For the Europe, Sub-Sahara Africa, and Russia region, Saligram projected a significant ramp-up from Q1 to Q2, driven by committed contract starts, followed by a smaller uptick in Q3 before leveling off for the year.

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Chairman, President & CEO Jeff Miller explained that international artificial lift growth is driven by introducing Summit's technology to new markets, while U.S. softness is tied to activity levels and tariffs. EVP & CFO Eric Carre added that artificial lift is the largest component of their tariff impact. Miller clarified that recent Latin America strength was not driven by Mexico, where he expects continued volatility, and that Kuwait remains a solid long-term growth market despite quarterly fluctuations.

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Chairman, President & CEO Jeff Miller explained that international lift growth is fueled by introducing Summit's technology to new markets, while U.S. softness is tied to activity levels and tariffs. He clarified that Kuwait remains a solid long-term growth market despite quarterly volatility and that recent Latin America strength was not driven by Mexico, which he still views as a market with 'starts and stops'.

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CEO Jeffrey Miller expressed a positive long-term view on gas markets due to structural demand, noting more recent inbounds from gas operators. On the offshore cycle, Miller stated Halliburton is in a much better technical position than ever before, winning integrated work. He emphasized that the company's value proposition of collaboration and creating asset value for customers provides a significant competitive advantage in the high-stakes deepwater environment.

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Chairman and CEO Sherif Foda explained that NESR's strategy is to counter-cyclically invest in CapEx and equipment while others are cutting back. He views recent JVs by competitors as moves to buy access to the Middle East, a position NESR already holds. Instead of JVs, NESR will leverage its established infrastructure and relationships to add services and aggressively gain market share, aiming for a top-three position in its operating segments.

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Stefan Angeli, CFO, stated that for the anticipated 5-10% growth in 2025, CapEx is expected to be around $120 million, similar to 2024, with a projected free cash flow conversion rate of approximately 40% of EBITDA. Sherif Foda, Chairman and CEO, added that NESR operates as an open platform, bringing best-in-class U.S. shale technologies to the MENA region through partnerships. He cited successes with companies like Cactus and Phoenix in the Jafurah project and noted future opportunities in managed pressure drilling and wireline technologies.

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