Jeffrey LeBlanc • TPH&Co.

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President and CEO John Lindsay acknowledged that there is pressure across the energy value chain and that H&P's guidance reflects expectations of both fewer rigs and some pricing reduction. He emphasized that H&P works closely with customers to deliver value through its differentiated, performance-centric offering. SVP and CFO Kevin Vann added that the sales team is in constant discussion with customers to find mutually beneficial solutions, particularly through performance-based contracts that focus on overall program economics.

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President and CEO John Lindsay responded that increasing well complexity, including more 3- and 4-mile laterals, and the shift to Tier 2 acreage will sustain demand for high-performance, reliable rigs. He noted that super-spec rigs now constitute 76% of the active fleet, up significantly from previous years, which positions H&P's technologically advanced fleet to continue growing share.

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CEO Scott Bender opined that the U.S. lacks sufficient specialized steelmaking capacity, with many forges having shifted to munitions production. He concluded that since there is no substitute for imported steel for their needs, any outcome from the investigation or further tariffs would inevitably be inflationary.

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FlexSteel CEO Steve Tadlock quantified international revenue as being in the 'high-single digits as a percent of spoolable' revenue, noting it has doubled from the previous year. He confirmed it is an active growth area. Chairman and CEO Scott Bender added that the company is doing preliminary work on capacity expansion, believing international business could eventually represent 40% of the Spoolable segment's revenue.

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CFO C. Smith estimated maintenance CapEx at approximately $175 million for drilling and around $200 million for completions. He confirmed that these expenditures are 'very linear with activity' and would trend down accordingly if the market and activity levels were to fall.

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CFO C. Smith explained that older Tier 2 equipment will be retired as it reaches the end of its useful life over the next two to three years. The company will not invest in replenishing this older technology but will replace it with modern, natural gas-burning assets. He did not provide a specific timeline for reaching a 100% natural gas-powered fleet.

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CEO Ron Gusek stated they use a 10% annual attrition rate as a general guideline but can extend equipment life through maintenance. He affirmed that Liberty could pause new pump construction through 2026 and still maintain its deployable fleet comfortably.

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CFO Michael Stock explained that the higher Q4 CapEx was not a pull-forward but a result of delivery timing. He noted that supply chain debottlenecking among delivery partners accelerated the arrival of equipment that was previously scheduled for later. He also mentioned some additional investments in wet sand handling equipment contributed to the increase.

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CEO Sam Sledge described AquaProp as a great acquisition but acknowledged that its growth has been slower than initially expected. He attributed this to significant price drops and volatility in the broader sand market, which created 'noise' and delayed customer decisions. However, Sledge reaffirmed his long-term confidence in the solution's cost-effectiveness and ProPetro's ability to integrate it commercially in the future.

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