Joshua Jayne • Daniel Energy Partners

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President & CEO Neal Lux stated that he believes the market has further to decline, but noted that FET's business is tied more to completion stages than frac fleet counts, which could lead to an earlier bottom for their products. EVP & CFO D. Lyle Williams added that international demand for these products in South America and the Middle East is providing a partial offset to US weakness.

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President & CEO Simon Johnson detailed that eight drillships are MPD-equipped and that Seadrill is a thought leader in the space, viewing it as an integrated operational tool. On share buybacks, Mr. Johnson stated the current focus is on cash conservation amid macro uncertainty, though shareholder returns are a top priority. EVP & CFO Grant Creed added that the repricing of legacy Brazil contracts from Q2 2026 will be a key milestone for cash flow generation, which is important for future capital returns.

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CEO Simon Johnson identified two key priorities for 2025: first, continuously improving safety performance, and second, maintaining a laser-like focus on the cost base. He stressed the importance of being a low-cost, agile, and efficient operator, regardless of the revenue environment.

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CFO Bond Clement identified the outlook for the North American chemistry business as the primary variable in the guidance range. CEO Ryan Ezell addressed strategy, stating that while execution on newly acquired and built assets is a primary focus, the company will continue to selectively look for immediately accretive inorganic opportunities to expand both its chemistry and data analytics businesses.

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CEO Ryan Ezell explained the acquisition was a natural evolution of a long-term partnership with ProFrac, leveraging Flotek's core data technology to enter the growing grid support market and add stable, high-margin revenue. Regarding organizational growth, Ezell stated that increasing free cash flow will fund higher CapEx for building more revenue-generating assets with quick ROIs. CFO J. Clement added that the transaction's structure provides significant 'dry powder' for investment while allowing for rapid debt paydown, maintaining a clear balance sheet.

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CEO Ryan Ezell explained that gas-heavy basins often require more advanced, value-add technologies, which typically improves the product mix and leads to better margins. On the North American outlook, he noted that while oil prices face headwinds, a bullish view on natural gas and Flotek's diversification provide insulation. Ezell attributed the strong external customer growth to the success of Flotek's prescriptive and predictive chemistry management, which delivers significant ROI and improved well performance, resonating with capital-disciplined operators.

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CEO Ryan Ezell attributed the Chemistry segment's strength to sticky transactional business and growth in international markets, which he expects will help Flotek outperform. He anticipates a soft Q4 for the overall market but sees operational intensity increasing in mid-2025. CFO Bond Clement explained that a significant portion of the working capital build is the annually-settled order shortfall penalty receivable from a related party, and that underlying days sales outstanding (DSOs) actually improved by 12% during the quarter.

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EVP & CFO Christopher George expressed confidence in the segment's resilience, citing market share gains from new product development and operational efficiencies from in-basin manufacturing. He believes margins can be sustained and potentially grow. President, CEO & Chairman John Schmitz added that the chemistry business is increasingly vital for supporting complex, high-volume frac operations by improving water transfer efficiency with products like drag-reducing agents, which adds significant value for customers and carries high margins for Select.

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President & CEO Brady Murphy explained that while U.S. land activity is declining, TETRA's automated technology and focus on produced water recycling should help maintain revenue and improve margins. SVP & CFO Elijio Serrano added that the segment is supported by stable contracts in Argentina and offshore rig cooling. Regarding capital returns, Serrano stated that the company will address its strategy in detail at its upcoming Investor Day in September.

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CEO Brady Murphy reported strong customer acceptance for automation, driven by cost savings and safety benefits, noting that current automated equipment is at maximum utilization. For TETRA X, he explained it will initially be marketed as a premium blend with completion fluids for high-temperature wells, targeting a sizable market, but was not yet ready to quantify its financial impact or its potential as a standalone product.

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CEO Mike Jardon highlighted that IOC customers are showing significant interest in iTONG, driven by its HSE benefits of removing personnel from the red zone. He emphasized that Expro is being patient with the rollout to command appropriate pricing that reflects the technology's high value, rather than discounting for faster uptake. The long-term goal is to have the technology on over 75% of the floating rigs where Expro operates.

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COO Scotty Sparks confirmed the Q5000 is in a 'very tight position' for the next 2-3 years and that the Q4000 has significant interest for multi-year contracts from several operators upon its return to the Gulf of Mexico. CEO Owen Kratz explained the shift to a more aggressive buyback plan is driven by the company's strong balance sheet and attractive current share price. He framed the 25% of free cash flow target as a minimum, which could increase if suitable M&A opportunities do not materialize.

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COO Scott Sparks described the Robotics outlook as having the 'best visibility we've ever had,' especially in trenching, with tenders out to 2028-2030 and work contracted through 2027. CEO Owen Kratz outlined growth opportunities across all segments, including adding trenching and robotics capacity and potentially expanding shallow water services to new regions. He noted a need for more well intervention vessels but remains cautious on asset pricing. CFO Erik Staffeldt confirmed maintenance CapEx should remain in the $70-$80 million annual range, excluding growth projects.

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President and CEO Brad Childers stated that lead times are currently in a normal range of 42-44 weeks. Regarding tariffs, he noted it's difficult to predict but mentioned that Archrock and its key vendors source most materials domestically, mitigating immediate impact. He concluded the risk is being monitored but is not considered material at this time.

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Executive Lawrence Bruno identified the Middle East, the South Atlantic margin, Australia, Indonesia, and Norway as key growth areas for 2025, while noting the company has exited operations in Mexico. He also quantified the Q1 weather impact, stating that facility closures in Texas and Louisiana for 2-3 days resulted in an estimated $1 million revenue loss.

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CEO Anton Dibowitz clarified the metric was for all offshore projects but stressed that many key deepwater developments are highly compelling with breakevens in the $20-$40/barrel range. He confirmed that Valaris would use idle periods during warm stacking and ramp-ups to prudently perform value-enhancing upgrades, such as for MPD systems or EHS-E emissions reduction, to improve rig capability and avoid future downtime.

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