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CFO Steven Tholen stated the company aims to maintain over $200 million in liquidity and will use free cash flow to pay down debt, with working capital swings tied to rig activity. President Michael Hollis elaborated that simul-frac is most efficient on larger pads, which are harder to assemble with a low rig count, but they are exploring hybrid options. Hollis also noted that the DUC inventory will decline but that most wells for the year are already drilled, and reaffirmed the company's full-year production guidance remains solid despite expected quarterly fluctuations.

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President Michael Hollis explained that proving up the Middle Spraberry could add approximately 200 locations to the sub-$50 breakeven inventory over the next year. He noted that while current market softness facilitates simul-frac scheduling, the company is working with partners to make these efficiencies sustainable. Hollis clarified the production guidance increase was driven by strong Q1 results and accelerated activity. He also detailed that with major infrastructure spending complete, significant free cash flow is expected for the rest of 2025, which will be used to reduce debt at par under a planned new capital structure.

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President Michael Hollis explained that infrastructure enhancements, such as expanded gas gathering systems, directly support oil production and reduce both CapEx and OpEx by enabling the use of high-line power and recycled water. He noted the system is built to scale from under one rig to over six, providing significant operational flexibility. Chairman and CEO Jack Hightower addressed the capital structure, quantifying that refinancing could save nearly $50 million in annual interest expense, which, combined with improved efficiency, would significantly boost free cash flow for rapid debt reduction.

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President Michael Hollis explained that while log and cutting data provide initial confidence, the ultimate de-risking factor is commercial production, which they have now proven in their extension areas. He attributed the Judith well's strong performance to continuous operational improvements in completion design rather than different geology. Chairman and CEO Jack Hightower added that technological improvements consistently enhance well performance over time. Hollis further detailed their cost advantage, noting their acreage is shallower with lower pressure, reducing drilling time, materials, and fracking horsepower compared to peers. He confirmed the land department continues to actively acquire acreage and increase ownership in existing blocks.

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COO Thor Pruckl stated that any production curtailments during the Gabon rig moves would be minimal and coordinated with planned downtime. CEO George Maxwell added that for CI-705, the team is just beginning to analyze new seismic data to mature prospects across the large block and will take its time to ensure no opportunities are missed before making relinquishment decisions.

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Executive George Maxwell clarified that no significant downtime is planned for the 2025 Gabon drilling program, but scheduled maintenance in July will likely make Q3 the lowest production quarter. He noted a slight production uptick is expected in Q4 from the first new well. For Cote d'Ivoire, Mr. Maxwell confirmed the operator is actively securing a rig and the project remains on schedule to commence drilling in mid-2026.

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CEO George Maxwell detailed the exploration timelines, noting that seismic acquisition in Gabon is likely for Q1 2026, with drilling potentially in late 2026 or early 2027. For Cote d'Ivoire, he explained they would acquire existing seismic data in mid-2024 with interpretation to follow. Regarding capital recovery, Maxwell highlighted that capital spent in Gabon is recovered quickly once wells are on production. For Cote d'Ivoire, the production sharing contract offers a 25% uplift on investment, making it an attractive incentive despite the asset being offline.

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George Maxwell (executive) addressed the questions. For Gabon, he projected a 7-9% decline, noted they are evaluating reserve upside for the year-end report, and confirmed the 2025 drilling program would yield production in the back half of the year. For Cote d'Ivoire, he stated that the operator is actively seeking a rig for the development campaign, with more details expected in early Q1.

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President & CEO Neal Lux highlighted growing defense opportunities, such as submarine rescue vehicles, with revenue coming from both initial sales and long-term service. He confirmed that the 'Unity' remote operating system is a key differentiator. He also stated that margins in growth markets are comparable to or better than leadership markets, with growth expected to be a steady ramp-up rather than 'chunky'.

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President and CEO Neal Lux described the Q1 weakness in the Variperm business as temporary, attributing it to an unfavorable customer and product mix. He confirmed that a shift to higher-pressure gas drilling would accelerate wear on consumables, positively impacting demand. Lux also noted that demand from new energy applications remains strong, with continued bookings for data center coolers and an acceleration in the offshore business, which serves wind, defense, and oil and gas.

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President and CEO Neal Lux highlighted the high-margin Artificial Lift and Downhole segment as a key area for profitable market share growth. He also confirmed the Unity system is currently being tested and delivered, offering significant customer value by reducing personnel on vessels. CFO Lyle Williams added that share repurchases are the focus for capital return because the company believes its stock is significantly undervalued, representing a better investment than other options.

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CEO Neal Lux confirmed the 2025 outlook (U.S. drilling down ~5%) and agreed that the industry's push for efficiency creates market share opportunities for FET's technologies. He noted that a natural gas rebound would be positive, as higher-pressure activity tends to increase consumable turnover. Lux explained the Unity system enables remote ROV operation with potential for automation-driven efficiencies, while the Magna Guard tool acts as a brake to prevent dangerous electrical currents from permanent magnet motors, enhancing safety and encouraging their adoption.

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CEO David Cherechinsky stated that while the company is focused on growth, he is not raising the $70 million synergy target, emphasizing the opportunity lies in cross-selling and leveraging complementary market positions. VP of Digital Strategy & IR Brad Wise highlighted growth from electrification, AI data centers, and LNG. Regarding the strong Q2 margin, Cherechinsky attributed the outperformance primarily to strong growth in the midstream business, which has a higher profit fall-through despite lower gross margins.

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CEO David Cherechinsky explained that while DNOW aims to grow E&P market share, the primary offset to upstream cyclicality is significant growth in the midstream sector, bolstered by the Whitco acquisition, as well as a focus on energy evolution and industrial adjacencies. Executive Brad Wise detailed the expansion in the produced water rental market via the Flex Flow and Trojan acquisitions, serving both operators and water management firms. Wise confirmed that 53% digital revenue is a new high watermark, reflecting successful efforts to improve efficiency for DNOW and its customers.

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Executive Brad Wise detailed that the Trojan acquisition fills a key gap in the water solutions portfolio, as it targets temporary water transfer, a market distinct from Flex Flow's focus on saltwater disposal. He confirmed Trojan's Sable automation platform offers integration opportunities with DNOW's OptiWatch and that DNOW plans to expand Trojan's geographic reach. President and CEO David Cherechinsky clarified that while production volumes are an increasingly important indicator for the growing Process Solutions business, rig counts and completions remain the primary barometers for DNOW's overall revenue.

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President and CEO David Cherechinsky confirmed midstream was about 20% of Q3 revenue and expects it to be a growth area in 2025, outpacing upstream. Executive Brad Wise added that a new administration could expedite permitting and reverse the LNG pause, benefiting midstream activity. Wise also noted that the need for reliable power for data centers and reshoring creates opportunities for DNOW in natural gas and nuclear power generation. Regarding capital returns, Cherechinsky reiterated that the priority remains organic growth, followed by M&A, with share repurchases being the preferred method for returning excess capital over dividends.

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President, CEO & Chairman John Schmitz and EVP & COO Michael Skarke clarified that a Peak separation would be an 'offensive' move to capitalize on its growth opportunity and would not limit infrastructure plans; in fact, it would support the electrification of those projects. On the Bakken, Schmitz explained that solids and liquids management has network potential similar to water infrastructure. Skarke added that the recent Omni transaction was a logical asset swap that strengthened Select's core solids management position in the region.

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EVP & COO Michael Skarke and Founder, Chairman, President & CEO John Schmitz confirmed there is significant upside from greater capacity utilization in their unique Haynesville gathering system and that expansion projects are being considered. Regarding the Northern Delaware, they explained that their large, interconnected pipeline network is specifically designed to mitigate localized activity changes by balancing water across a broad geography, making their cost-saving recycling model even more valuable to customers in any environment.

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EVP of Strategy Mike Lyons confirmed that local demand dwarfs the asset's current size and expansion could come from acquiring more water shares. He noted the partnership came together naturally due to complementary expertise and that there is no initial water court risk as they are leveraging existing state programs. CEO John Schmitz reinforced this by highlighting Select's 15 years of similar experience in the DJ Basin. Regarding the Haynesville, CFO Chris George stated that with over 90% of its business there tied to production, Select is well-positioned to capitalize on any gas market upside.

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COO Michael Skarke confirmed that Select's asset base and water balancing capabilities provide certainty to customers, leading to long-term (10+ year) contracts. CFO Chris George and Skarke elaborated that the strategy is to reinvest cash flow from all segments—not just infrastructure—into expanding the network, which increases utilization, adds inventory via acreage dedications, and enhances the longevity of the business. Regarding regulation, CEO John Schmitz stated that a supportive administration is a "blessing for our customers" but noted that Select's business is more directly impacted by state and local regulations, which are currently positive and focused on beneficial reuse of water.

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Chairman and CEO Sherif Foda detailed that the Roya platform is in an 'extensive testing phase' in Saudi Arabia, Oman, and Kuwait, with a focus on reliability before wider deployment. Regarding NEDA, he explained it's about 'creating a market' for produced water treatment, with ongoing pilots for mineral recovery that could make the economics 'massive.' He confirmed that 'everybody's watching' the pilot and its success would be 'contagious' across the region.

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Chairman and CEO Sherif Foda explained that unconventional services are already a core part of the business mix and that margins are maintained through efficiency gains and technology, similar to the U.S. shale model. He added that new initiatives in water management and mineral extraction could further improve margins. Regarding the ROYA platform, Foda detailed a deliberate and extensive testing process to ensure reliability across different formations, with a target for full commercialization in the second half of 2025.

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CEO David Park explained that the FAST-41 designation primarily de-risks the federal regulatory timeline and boosts confidence among potential customers and financiers. Regarding the royalty rate, Park stated the proposed 2.5% is fair, based on stakeholder consultation, and should serve as a strong precedent for future phases. Executive Salah Gamoudi detailed the capital plan, noting Equinor's sole funding for East Texas will likely end in Q2 or early Q3 2025. For the SWA project, funding will come from project debt, a $225M DOE grant, and a $40M FID payment from Equinor, with near-term liquidity secured by cash on hand and an at-the-market program.

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Paul McKinney, Chairman and CEO, stated the long-term leverage target is comfortably below 1.0x and confirmed any cost savings would go toward debt reduction, not increased activity. Travis T. Thomas, EVP and CFO, and McKinney added that the low-decline Lime Rock assets are expected to be viewed favorably in the ongoing RBL redetermination. They also detailed that share repurchases are permissible if leverage is below 2.0x and the credit facility draw is under 80%, among other standard covenants.

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CEO Paul McKinney explained that the organic growth strategy involves evaluating all potential zones under existing acreage, including applying horizontal technology to areas previously developed vertically to improve capital efficiency. Regarding the balance sheet, McKinney and CFO Travis Thomas stated that while they have sufficient liquidity for the transaction, they believe the low-decline, PDP-heavy nature of the Lime Rock assets should support a higher borrowing base during the next redetermination, though the final decision rests with the banks.

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EVP Alexander Dyes and VP of Operations Shawn Young explained the lower oil mix was due to a third-party plant expansion that increased gas takeaway, not an operational constraint, which also provided a small incremental oil benefit. CEO Paul McKinney does not expect the oil mix to change significantly but will continue to prioritize oily projects. He stated that future capital returns would be a choice between dividends and buybacks based on shareholder value. For M&A, the preference remains for long-life, PDP-heavy assets, ideally bundled with undeveloped inventory.

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Shawn Young, VP of Operations, stated that production benefits from ongoing improvements in artificial lift designs across all assets, with continuous room for enhancement. Paul McKinney, Chairman and CEO, addressed M&A, noting that the conventional nature of target assets reduces competition. Regarding higher-risk drilling, McKinney described it as applying proven technologies to new, promising geological areas on existing acreage to organically grow reserves, a key focus for the expanding geoscience team.

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EVP and CFO Sergio Maiworm declined to comment on specific M&A discussions but affirmed that the strong liquidity position allows them to act on opportunities. He stated that the recent acquisitions have been very successful, providing a strong production base and a robust portfolio of low-breakeven inventory, with Katmai being a prime example of unlocked upside.

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Interim Co-President and CFO Sergio Maiworm stated the West Vela contract currently runs through the Daenerys well, with options to extend. He credited drilling efficiencies to superior operational planning. On capital, he noted successful exploration projects would warrant follow-on appraisal capital. He also mentioned expecting more regular lease sales under the current administration.

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COO J. Bunch clarified the gas interference at Chaveroo affected existing producing wells and was resolved inexpensively, potentially influencing future artificial lift designs but not stimulation. CEO Kelly Loyd stated the primary M&A focus is on immediately accretive PDP assets, with development upside as a secondary benefit. CFO Ryan Stash discussed financing, indicating a preference to maintain leverage below 1x, but would consider using the ATM or equity for large, accretive transactions that enhance free cash flow per share.

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COO J. Bunch stated that for Chaveroo, they plan to use produced water in drilling fluid to control costs and confirmed it's an active market for adding working interest in SCOOP/STACK. He attributed Barnett's improvement to better run times and cost control by the operator. CFO Ryan Stash projected a slight shift towards oil in the commodity mix as Chaveroo wells come online, but noted this could be offset if higher gas prices spur more gas-weighted drilling in SCOOP/STACK.

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CEO Kelly Loyd, COO J. Bunch, and CFO Ryan Stash addressed the questions. They attributed the Delhi LOE decrease to a temporary halt in CO2 purchases, the Chaveroo increase to initial production start-up costs, and the Williston decrease to successful workover programs. Mr. Bunch projected Delhi's LOE would return to around $20/barrel. Mr. Stash provided a fiscal 2025 CapEx forecast of $12.5 million to $14.5 million. For acquisitions, Mr. Stash explained the strategy would involve expanding the credit facility and potentially issuing equity for a highly accretive deal.

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Executive Luke Brandenberg confirmed they are actively looking to expand the Controlled Capital program, with the Bakken and Eagle Ford being compelling areas, though gas-weighted basins are currently challenging. He affirmed that using Granite Ridge's existing acreage as currency to help partners consolidate positions is a key, and already utilized, value-add for their partnership model.

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