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CEO Justin Jacobs responded that while there are new customer opportunities, the dollar amount of inquiries is clearly skewed towards existing customers. He detailed the book life of equipment (15-25 years depending on size) and noted that with proper maintenance, assets can last longer. For challenges, Jacobs highlighted labor, especially in the Permian, and the ongoing opportunity to improve utilization of the small and medium horsepower fleet as key areas of focus.

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CEO Justin Jacobs explained that orders for 2026 are currently being placed as contracts are signed. He noted that conversations for 2026 needs began in Q4 2024, indicating a 12 to 18-month planning and negotiation lead time with major customers. He also stated that the company has not yet started planning for 2027.

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Matthew Wilks, Executive Chairman of ProFrac, confirmed that dialogues for 2026 suggest higher activity levels than the present. He also noted the recent activity increase since late June is broad-based across both gas and oil markets, with a notable increase in gas and a modest recovery in the Permian from the June lows.

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Executive Chairman Matthew Wilks confirmed that customer planning for 2026 indicates an increase over current activity levels. He elaborated that the recent activity rebound since the June lows has been broad-based, occurring across both gas and oil basins, with a notable uptick in gas-related work.

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Executive Chairman Matt Wilks and CEO Ladd Wilks attributed the record performance to their field teams and the asset management program, which standardizes equipment and maintenance procedures for higher efficiency. On seasonality, Matt Wilks noted that while Q4 typically slows down, a stronger gas market may mute the effect this year, adding that the current tariff-related uncertainty is less impactful than the typical Q3-to-Q4 seasonal slowdown.

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Executive Chairman Matt Wilks attributed the record performance to the operations team and the asset management program, which standardizes maintenance and equipment for higher efficiency. CEO Ladd Wilks added that they are in the 'early innings' of the program's benefits. Regarding seasonality, Matt Wilks suggested a stronger gas market may mute the typical Q4 slowdown, noting the current tariff-related uncertainty is less impactful than last year's Q3-to-Q4 slowdown.

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CEO David Grzebinski confirmed that quoting activity is accelerating, with the backlog growing 15-20% in Q2. He estimated that 95% of power generation orders are for non-oil and gas applications, primarily data centers. He also stated that the opportunities are almost entirely domestic, with very little international demand for their power generation solutions.

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President and CEO Kevin Neveu confirmed customers are seeking term contracts and that Precision is balancing day rate optimization with contract duration, targeting terms in the one-to-two-year range. On the well servicing side, Neveu stated there is currently no customer interest in electric workover rigs in Canada due to a significant oversupply of conventional rigs, making new builds unlikely for several years.

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CEO Kevin Neveu clarified the decision was driven by their key Canadian customers selling their North Dakota assets. This left Precision competing with local, lower-cost providers in a price-sensitive market where the company's higher service quality was not sufficiently valued to achieve target returns.

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CEO Kevin Neveu confirmed the dynamic exists in Canada, stating that while larger companies have good access to insurance, the market is shrinking as some insurers exit the oil and gas space. This makes coverage trickier and more expensive for smaller companies, creating a real risk for them and a potential opportunity for scaled players like Precision. He also noted customers audit for proof of insurance on every contract.

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CEO Sam Sledge attributed recent market disruption to irrational pricing by 10-20 competing fleets. He candidly stated that ProPetro's own fleet reduction was a voluntary decision related to a single customer's 'frantic response' to market changes, with ProPetro choosing to protect its margins and equipment rather than work at sub-economic rates.

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CEO Sam Sledge explained that while the Pro Power strategy is initially focused on Permian oil and gas operations, the company sees a clear path to expand into other geographies and industries. Regarding the fleet reduction, Sledge stated it's a combination of some customers reacting to lower oil prices and ProPetro's choice to walk away from sub-economic pricing, underscoring the resilience provided by their contracted, next-generation fleet.

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CEO Sam Sledge stated that he expects the Permian fleet count to remain relatively flat, noting that while the number is stable, the fleets are significantly larger and more efficient than in previous years. CFO David Schorlemer clarified that the $150 million to $200 million in 2025 completions CapEx includes refurbishment of Tier IV DGB equipment, which is a larger expenditure in 2025 compared to 2024, in addition to the fifth e-fleet.

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Clay Williams, Chairman & CEO, discussed the broader trend of electrification in oilfield equipment, noting that converting well service rigs to electric offers significant benefits in control, safety, and predictive maintenance. Jose Bayardo, President & COO, addressed the coiled tubing question, explaining that the industry's push for longer laterals is driving demand for larger tubing and innovative technologies, like NOV's agitator systems, to extend the reach of coiled tubing drill outs.

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CEO Ron Gusek acknowledged the Haynesville is a high-intensity environment but stated that Liberty's next-generation assets have shown a 'real change in asset life.' He attributed this to two factors: the equipment was designed from the ground up for high-rate, high-pressure work, and the company's sophisticated asset monitoring and AI oversight (the 'Hive') allows for predictive maintenance, preventing minor issues from becoming major failures.

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CEO Christopher Wright confirmed that potential E&P startups are not currently baked into the 2025 outlook. CFO Michael Stock acknowledged that a significant pricing recovery is possible, citing the 2021-22 rebound as a historical parallel. He also agreed that a material improvement in 2026 over 2025 is a 'very reasonable assumption' and confirmed that power generation investments would be backed by longer-term contracts than typical frac work.

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EVP & CFO Andrew Smith responded that pushing for better rates is a constant conversation, not a single event, and that the company holds its teams accountable for pricing on new technology investments. President & CEO William Hendricks added that the market for high-end equipment is relatively tight and the company has no intention of reactivating idle Tier 2 diesel fleets, which supports market discipline.

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President & CEO Ben Palmer stated that while the M&A strategy remains opportunistic, current market volatility makes valuations difficult, suggesting a more cautious approach without ruling out possibilities. He noted that a market shakeout could create new opportunities. Regarding the new coiled tubing unit, Mr. Palmer confirmed its performance has been 'very good' and it is staying 'very, very busy,' but the company has not yet considered ordering a second unit, emphasizing a selective and careful approach to capital investments.

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President and CEO Ben Palmer stated that RPC is diligent about preventing its sold assets from re-entering the domestic frac market and rarely purchases used equipment. CFO Michael Schmit explained that CapEx spending is being carefully managed based on market conditions to preserve the balance sheet for potential M&A. Ben Palmer added that M&A strategy is not confined to the Permian, and the company is open to opportunities in other basins, including those with natural gas exposure.

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President and CEO Ben Palmer explained that RPC has the flexibility for both cash and stock deals, though private sellers often prefer cash. He stated that in the current market, the optimal frac fleet size would be lower than the previous 10-11 fleets, with a focus on upgrading to more efficient assets. On M&A opportunities, Palmer described the target landscape as a combination of different types, including PE-backed and other private companies, rather than one single theme.

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Executive Gregory Givens noted that the company sees no significant change in productivity when using spot frac crews, though the ideal setup is a steady program. Executive Brendan McCracken expressed optimism for continued efficiency gains, driven by the company's deep private data sets and operational expertise, even if the pace of improvement moderates.

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President and CEO Neal Lux explained that the Subsea business is benefiting from strong demand in offshore oil and gas, wind, and defense, driven by an aging ROV fleet and adoption of their new Unity software. For stimulation equipment, he clarified that the order increase was a rebound from a lean Q4 and is being driven by faster wear and tear on components like power ends and wireline cables due to higher operational intensity, even with flat completion crew counts.

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President and CEO Neal Lux explained that the new product, [PowerTron], is a heat exchanger for the gas power generation market, adapted from their successful frac industry technology. Regarding completion tools, Lux noted that consumables like wireline cables are being consumed at a steady rate, while he anticipates a potential spike in capital equipment orders in the coming quarters as customers' existing fleets continue to age.

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CEO Neal Lux responded that FET's M&A strategy favors expanding its activity-based consumable sales, similar to the Variperm model, rather than entering the difficult frac capital equipment space. Regarding coiled tubing, Lux confirmed that longer wells are a positive driver, increasing demand for longer, thicker-walled strings. He highlighted FET's proprietary designs and advanced continuous quench and temper manufacturing process, which are key to meeting these demanding applications.

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CFO Chris George responded that the current focus for the municipal venture is an organic resource play rather than broader M&A. On the Haynesville, COO Michael Skarke and CEO John Schmitz explained that Select has the largest disposal and gathering network in the basin, spanning both Texas and Louisiana, and is well-positioned to handle increased activity. They confirmed that the overwhelming majority of their water volume in the region is transported via pipeline, which has significantly reduced truck traffic.

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