Donald Crist • Johnson Rice & Company L.L.C.

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CEO Ryan Ezell explained that significant third-party demand exists for the full PWRtek solution, with many customers awaiting its availability, prompting considerations for further CapEx. He highlighted that the custody transfer market is accelerating, with pilot locations converting to revenue, and he believes it will become the largest part of the upstream Data Analytics business. For international chemistry, Ezell sees stable, profitable growth ahead, particularly in the Middle East and Argentina, with a focus on effective cash flow management.

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CEO Ryan Ezell confirmed that the international business should help smooth the historical Q1 seasonality. He detailed that the XSPCT solution provides real-time hydrocarbon quality monitoring for custody transfer, while the new Raman technology measures vapor pressure and flash points in midstream and downstream applications. Regarding the pilot programs, Ezell explained they involve a 45-day monitoring period, after which customers convert to multi-year service contracts, with revenue from the first pilots expected to begin in Q2 2025.

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EVP & CFO Chris George and EVP & COO Michael Skarke projected that the Water Infrastructure segment's growth trajectory in 2026 should be comparable to 2025, supported by the recent large contract wins which will significantly contribute starting in 2026. Founder, Chairman, President & CEO John Schmitz added that during past downturns, E&Ps do tend to focus on optimizing existing assets through activities like recompletions, a trend that benefits Select due to its extensive footprint in mature basins.

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COO Michael Skarke explained that the system is being expanded proactively and still has capacity, with oversized, large-diameter pipes being installed to support multiple customers beyond the initial anchor tenants. He emphasized that the system is designed for growth, driven by increasing completion intensity, and that the company expects to continue investing at a similar pace in 2025 to further expand the network's reach and capabilities, rather than because the current system is constrained.

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Chief Commercial Officer Piers Middleton explained that tender timelines vary significantly by customer and region, from a few months to over a year, but they generally have visibility 2-3 quarters ahead. CEO Quintin Kneen stated his preference is for value-accretive M&A, and a debt refinancing would be a purely economic and opportunistic decision if cash were to build up without suitable acquisition targets.

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CCO Piers Middleton confirmed the Malaysian dispute is resolved and expects activity to resume in H2 2025, which should absorb excess vessel supply and benefit Tidewater's fleet. Regarding the Gulf of America, he noted some recent tender activity but stated it is too early to determine the full impact of the new administration's policies on long-term vessel demand.

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CCO Piers Middleton clarified that project timing is more about the later tender cycle for subsea construction than specific FPSO delays. Executive West Gotcher agreed it was reasonable to see Q3 as a utilization baseline, with improvement expected in 2025. Regarding capital allocation, CEO Quintin Kneen stated a strong preference for share repurchases over early debt repayment, feeling no immediate need to delever.

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FlexSteel CEO Steve Tadlock explained that while it's a growing opportunity in North America, it will likely remain a niche, premium product. He sees a more significant and immediate opportunity in the Middle East, where high H2S content is common, pending qualification testing which could take about 12 months.

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CEO William Hendricks explained that while drilling has historically had longer lead times, the completions business now also benefits from longer-term visibility. He attributed this to working with high-quality E&Ps that operate with long-term development programs, meaning Patterson-UTI typically receives a fair amount of notice before any significant changes to the schedule.

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President and CEO Ben Palmer responded that while a shift to workovers is reasonable in the current environment, it's too early to confirm a trend. He explained that job visibility varies significantly, from months for semi-dedicated frac customers to much shorter for the spot market. Regarding natural gas, he believes a significant activity pickup is 'a little further down the road,' noting the company's downhole tools business is best positioned to capitalize on it quickly when it occurs.

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CFO Michael Schmit attributed the margin pressure to a non-recurring, multi-million dollar increase in insurance costs during the quarter. CEO Ben Palmer addressed pricing, stating that while difficult to predict, RPC is not currently anticipating significant softness and feels good about its current activity levels. Regarding M&A, Palmer confirmed RPC's interest in accretive deals but noted that market volatility makes it difficult to assess trends in bid-ask spreads.

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President and CEO Ben Palmer clarified that the opportunity in California involves coiled tubing for plug and abandonment work, separate from the new frac pod technology designed to replace bridge plugs. Regarding M&A, Palmer noted that bid/ask spreads have compressed as private sellers adjust to public market valuations. For fleet upgrades, he estimated a nine-month timeline for a new Tier 4 DGB fleet and stated that a long-term contract would not be a prerequisite for the investment, as it would be driven by the fleet's natural replacement cycle.

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President and CEO Amanda Brock confirmed that activity from Chevron in the Permian remains strong and is even seeing a slight uptick. Executive Chairman Bill Zartler affirmed that industry consolidation is likely to continue, and Aris will evaluate opportunities, including operator-owned systems, based on strict criteria for asset and contract quality.

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An executive explained that Moser is a platform for significant growth in the power business, which can be expanded organically using Moser's manufacturing capacity. COO Chris Scholla stated that the autonomous trucking partnership with Kodiak is performance-based and that significant margin improvement will occur at a scale of 50-70 trucks. An executive confirmed that labor represents about 70-80% of a truck's operating cost.

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CEO Sam Sledge clarified that while no contracts are signed yet, the opportunity set exceeds the 140 megawatts currently on order. He stressed that the strategy is to secure long-term contracts of 3-5+ years for all equipment before it is delivered, mirroring their successful e-fleet deployment strategy. Sledge highlighted that this approach could lead to a majority of ProPetro's entire asset base being under long-term contracts by 2026, creating significant business stability.

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