Nate Pendleton

Nate Pendleton asked about the near-term revenue implications once ENTRA1 signs a binding PPA with TVA, specifically if it would be comparable to RoPower revenue. He also inquired if the chemical plant study (Slide 7) has opened new commercial doors and if there are other underappreciated applications for NuScale's SMR technology.

Answer

Clayton Scott, Chief Commercial Officer, stated that after the PPA is signed, NuScale expects to generate revenue from COLA and FEED activities, anticipating a larger revenue stream than RoPower due to the greater scale of the projects. He confirmed that other discussions are underway regarding new applications, in concert with ENTRA1, but could not disclose details due to NDA.

Nate Pendleton asked about the near-term revenue implications once ENTRA1 signs a binding PPA with TVA, specifically whether it would be comparable to the revenue seen from the RoPower project. He also asked if the chemical plant study (slide 7) has opened new commercial opportunities for NuScale and if there are other underappreciated applications for their SMR technology.

Answer

Clayton Scott, Chief Commercial Officer, stated that after the PPA is signed, NuScale expects to generate revenue from COLA and FEED activities, anticipating it to be more substantial than RoPower due to the larger plant sizes. He also confirmed that the chemical plant study has led to other discussions in concert with ENTRA1, but these are currently under NDA.

Nate Pendleton asked for a deeper dive into how AI and machine learning are improving Kodiak's financials and how these technologies can be applied to the newly acquired power assets, also seeking high-level details on inbound interest for the DPS acquisition.

Answer

Mickey McKee, President and CEO, explained that AI/ML enables condition-based maintenance, extending maintenance intervals and major maintenance cycles, leading to significant gross margin uplift and flat maintenance CapEx despite fleet growth. He expects similar positive impacts by applying this expertise to the Cat engines in the acquired power assets. Mr. McKee noted inbound calls from data centers and customers recognizing Kodiak's operational expertise in large horsepower equipment. He highlighted DPS's existing multi-year contract experience with a data center, combining their commercial/engineering expertise with Kodiak's operational strength for significant impact.

Nate Pendleton asked for Kodiak Gas Services' view on how the application of AI and machine learning can further improve financials, and how these technologies might be applied to the newly acquired power assets. He also requested high-level details about the inbound interest received since the announcement of the DPS acquisition.

Answer

President and CEO Mickey McKee highlighted that AI and machine learning have already provided significant uplift in gross margins by enabling condition-based maintenance, extending maintenance intervals, and keeping maintenance capital flat despite fleet growth. He expects continued impact as these technologies are rolled out across a larger portion of the fleet. Mr. McKee believes the same metrics and operational expertise can be applied to the DPS power assets, which largely use the same Caterpillar engines. He noted inbound calls from data centers and other customers recognizing Kodiak's operational expertise in the power world, especially given DPS's experience with multi-year data center projects and AI load management.

Nate Pendleton from Texas Capital Bank asked about Talos Energy's investments in state-of-the-art seismic technology and proprietary reprocessing, inquiring about any tangible results from these campaigns. He also questioned if the 10% exploration CapEx target for 2026 is a good long-term run rate and how Talos views its preferred long-term allocation of operated versus non-operated activity.

Answer

Paul Goodfellow, President and CEO of Talos Energy, cited the recent lease sale success as the first tangible result of advanced reprocessing. He also highlighted the use of OBN seismic for Katmai 2 West and the Brutus redevelopment program, emphasizing its critical role in success. Regarding capital allocation, Mr. Goodfellow clarified that the higher non-operated capital in 2026 is due to the Monument project. He emphasized Talos's strength as an operator but is open to non-operated opportunities. He stated there's no fixed exploration target, but 2027 might see slightly higher exploration due to maturing lease sale opportunities, always guided by the capital allocation framework.

Nate Pendleton asked about Talos Energy's investments in state-of-the-art seismic technology and proprietary reprocessing, inquiring about tangible results from these campaigns. He also questioned if the 10% exploration CapEx target is a long-term run rate and the preferred long-term allocation between operated and non-operated activity.

Answer

Paul Goodfellow, President and CEO of Talos Energy, cited the recent lease sale success as a tangible result of advanced seismic reprocessing and highlighted the use of OBN seismic for Katmai West #2 and the Brutus redevelopment. He clarified that 10% exploration CapEx is not a fixed target but expects it to be slightly higher in 2027 due to maturing lease opportunities. He emphasized Talos's strength as an operator but remains open to value-accretive non-operated partnerships.

Nate Pendleton of Texas Capital asked for the key drivers behind the company's improved full-year guidance, despite the Sunspear shut-in, and inquired about specific regulatory policies that could further boost production in the Gulf of America.

Answer

President and CEO Paul Goodfellow attributed the improved guidance to a company-wide culture of efficiency and strong execution, which has led to better-than-planned uptime. On policy, he highlighted frequent lease sales, updated commingling rules, and a more effective process for managing abandonment liabilities as key areas for improvement.

Nate Pendleton asked for details on the units sold by Archrock and the criteria used to determine which assets are considered non-core. He also inquired about the adoption trend of electric motor drive compression, specifically how it's reflected in the 2026 and early 2027 order book.

Answer

Brad Childers, President and Chief Executive Officer, explained that asset sales are part of a disciplined fleet management program, noting a non-strategic sale of high-pressure gas lift units and a sale to a customer who prefers to own horsepower, involving units with an average age of 17 years. He stated that Archrock continuously aims to improve fleet standardization and quality. Regarding electric motor drive compression, Mr. Childers observed that demand is moderating to the 20-30% range of new orders, down from 30% in 2025, primarily due to increased competition for power, but Archrock remains a leader in this segment and expects continued growth.

Nate Pendleton asked for details on the units sold by Archrock and the criteria used by the team to determine which assets are considered non-core. He also inquired about the trend in adoption of electric motor drive compression and its presence in the 2026 and early 2027 order book.

Answer

Brad Childers, President and Chief Executive Officer, explained that asset sales are part of a disciplined fleet management program, with 2025 activity being consistent with the average of previous years. Specific sales included non-strategic high-pressure gas lift units and older horsepower (average age 17 years) to a customer who prefers owning. He noted continued demand for electric motor drive compression, but its share in orders is moderating to the 20%-30% range due to increased competition for power, which acts as a gating item.

Nate Pendleton of Texas Capital questioned the elasticity of demand for horsepower given falling rig counts and asked about the durability of the 2026 order book. He also inquired about competitive dynamics outside the Permian.

Answer

President & CEO D. Bradley Childers affirmed the 2026 order book is robust and durable, with the minimum $250 million CapEx guidance considered a firm floor. SVP & CFO Doug Aron added that historically low stop activity and new gas projects support this view. Childers also explained that while all basins are competitive, Archrock's strong partnerships with key customers provide a stable planning cycle and a preferred provider position, ensuring consistent demand.

Nate Pendleton questioned the elasticity of demand and the durability of the 2026 order book amid falling rig counts. He also asked about the competitive dynamics in basins outside of the Permian.

Answer

President & CEO D. Bradley Childers asserted that the 2026 order book and the minimum CapEx level of $250 million are robust and durable. CFO Doug Aron added that growing natural gas volumes are reflected in historically low stop activity for their equipment. On competition, Mr. Childers explained that Archrock's status as a preferred partner for key customers provides a stable planning cycle and makes them the first call for new horsepower needs, regardless of the basin.

Nate Pendleton of Texas Capital inquired about the elasticity of demand for compression horsepower given the recent drop in rig counts, asking how durable the 2026 order book is against potential customer delays. He also asked about competitive dynamics in basins outside of the Permian.

Answer

President & CEO D. Bradley Childers affirmed that the 2026 order book and the minimum spending level of $250 million are considered robust and durable. SVP & CFO Doug Aron added that growing natural gas volumes are driving historically low stop activity, supporting this view. On competition, Childers explained that Archrock's position as a 'partner of choice' for key customers provides a stable planning cycle and a dependable relationship, mitigating competitive pressures in various basins.

Nate Pendleton inquired about the pricing difference between new and older compression assets and asked how much of Archrock's fleet is still considered non-core for potential divestment.

Answer

President and CEO D. Childers explained that there is little to no pricing difference for units under 10 years old, but older equipment can see differentials due to technology and efficiency. He clarified that the amount of non-core horsepower is now 'very negligible,' as the company has shifted from large-scale transformation to a more surgical, strategic approach to fleet management.

Nate Pendleton from Texas Capital Bank asked for elaboration on potential pathways to accelerate the 2030 timeline for the University of Illinois prototype project and discussed the rationale and feedback received from the Request for Information (RFI) for the LOKI MMR design.

Answer

James Walker, CEO of NANO Nuclear Energy, explained that potential acceleration could come from expedited NRC licensing due to government pressure, but emphasized a conservative 2030 timeline. He also noted the focus on mass manufacturing facilities to expedite business operations post-licensing. Regarding LOKI MMR, he clarified its vision as a scaled-down KRONOS for space power, highlighting the RFI's aim to find partners in the space industry, and confirmed receiving a large number of RFIs, including a recent submission.

Nate Pendleton asked about potential pathways to accelerate the 2030 timeline for the University of Illinois project and the rationale behind the Request for Information (RFI) for the LOKI MMR, including any notable feedback received.

Answer

James Walker, CEO of NANO Nuclear Energy, explained that while NRC expedited timelines could benefit, the company maintains a conservative 2030 target, focusing on mass manufacturing and supply chain de-risking. Regarding LOKI MMR, he clarified it's a scaled-down KRONOS for space power, and the RFI aimed to find partners in the space industry, noting a significant number of responses and a recent submission.

Nate Pendleton from Texas Capital Bank asked how the extended timelines for new compression units impact USA Compression Partners' long-term organic and inorganic horsepower growth strategies. He also inquired if these lead times could influence contract compression pricing in the near term. Additionally, he sought more details on the expansion capital allocated for new telemetry being added to units and what benefits this entails for customers.

Answer

Chris Wauson, SVP and COO, explained that while lead times of 120+ weeks challenge 2027 growth planning, the acquisition of J-W's manufacturing business provides significant optionality for internal growth, with 10,000 hp already contracted for 2027. Clint Green, President and CEO, added that the manufacturing facility's size aligns with their expected growth, offering flexibility. Chris Wauson further detailed that panel upgrades and new telemetry are investments in efficiency, providing dashboards for remote monitoring and enabling better management of field operations with the right parts, potentially leveraging AI in the future.

Nate Pendleton inquired about how the extended new unit timelines are influencing USA Compression's long-term horsepower growth strategy, both organic and inorganic, and whether these timelines could impact contract compression pricing in the near term.

Answer

Chris Wauson, SVP and COO, explained that while lead times exceeding 120 weeks pose challenges for 2027 growth planning, they will not affect 2026. He highlighted that the J-W manufacturing business provides significant optionality, with 10,000 horsepower already contracted for 2027. Clint Green, President and CEO, added that the J-W manufacturing capacity is comparable to their expected growth, allowing them to fund internal growth and maintain flexibility. Pendleton's follow-up question sought more details on the new telemetry being integrated into units as part of expansion CapEx and its benefits for customers. Wauson stated that these panel and unit upgrades aim to drive efficiencies, providing dashboards for remote monitoring without constant onsite presence. Green further elaborated that this technology will improve field operations by enabling technicians to have the correct parts when responding to calls, representing a first step towards incorporating AI.

Nate Pendleton asked about NET Power's unique positioning to capitalize on its new pivot to gas with carbon capture (PCC) given its oxycombustion background, and the specific advantages of partnering with Entropy, including their Glacier project and Entropy 23 solvent, to make post-combustion carbon capture economically competitive.

Answer

CEO Danny Rice explained that NET Power's unique position stems from its deep understanding of both above-ground power and subsurface geology, allowing it to identify optimal sites for PCC projects. He highlighted that NET Power already possesses high-quality sites, originally intended for oxycombustion, which are now ready for accelerated deployment of clean gas technology with Entropy. Rice emphasized Entropy's differentiating operational experience with their solvent technology at the Glacier Gas Plant, which has allowed them to optimize performance, capture efficiency, and degradation rates, making their TRL9 product ideal for rapid deployment in the U.S. power market. He noted the partnership creates a win-win by combining NET Power's site development with Entropy's PCC expertise, with both companies co-investing in project equity.

Nate Pendleton asked about NET Power's unique positioning to leverage the pivot to conventional gas with Post-Combustion Carbon Capture (PCC), given its prior focus on oxycombustion, and why Entropy was chosen as a partner, specifically regarding their solvent technology and its economic competitiveness.

Answer

CEO Danny Rice explained that NET Power's unique position stems from its deep understanding of both power generation and subsurface geology, coupled with existing high-quality, pre-permitted sites (Permian, Northern MISO) originally intended for oxycombustion, which are equally suitable for PCC. This allows for accelerated deployment of clean gas technology years ahead of competitors. He highlighted Entropy's operational experience with their TRL9 solvent technology at the Glacier facility, which has been fine-tuned for optimal capture efficiency, energy separation, and degradation rates, making it a peer-leading solution. The partnership combines NET Power's site development expertise with Entropy's proven PCC technology, with both firms co-investing in project equity.

Nate Pendleton from Texas Capital Bank questioned if any performance or operational trade-offs were made to achieve the value engineering savings. He also asked how the recent 45Q tax credit parity for CO2 utilization impacts Net Power's total addressable market.

Answer

COO Marc Horstman stated that the value engineering efforts followed a 'design to cost' approach that reduced costs without sacrificing the plant's core reliability or performance requirements. President, CEO & Director Danny Rice explained that 45Q parity for EOR is a 'big deal' for Project Permian, making it more economically compelling and helping a first-of-a-kind plant achieve a competitive LCOE right out of the gate.

Nate Pendleton from Texas Capital requested more details on the industrial-scale platform, including its addressable market and royalty structure, and asked about the opportunity in California through the Carbon TerraVault MOU.

Answer

COO Brian Allen described the industrial platform as a new market for smaller, behind-the-meter applications, with CFO Akash Patel clarifying that NET Power acts as a pure licensor with minimal capital outlay. CEO Daniel Rice highlighted the Carbon TerraVault MOU as a synergistic partnership to provide California with new baseload power by co-locating plants with CO2 storage, with specifics to be informed by ongoing engineering studies.

Nate Pendleton inquired about the rationale behind increasing the dividend given strong future growth potential, and how NGS balances capital returns with ongoing growth opportunities.

Answer

Justin Jacobs, CEO, stated that the dividend increase signals a commitment to a continuous and growing dividend for shareholders, without impacting the company's ability to fund significant organic growth. He emphasized that NGS aims for a balanced capital allocation framework, growing at a materially higher rate than public competitors.

Nate Pendleton inquired about the decision to increase the dividend, given the strong growth outlook, and how NGS balances increasing capital returns with future growth opportunities. He also asked how NGS made inroads with Devon Energy and how that relationship developed.

Answer

CEO Justin Jacobs explained that the dividend increase signals a commitment to a continuous and growing dividend, balancing it with growth, and reiterated that the increase will not impact their ability to grow the business from a dollar perspective. Regarding Devon Energy, he attributed the significant expansion of the long-time relationship to NGS's proprietary unit technology, the data capabilities it offers, and a strong reputation for service performance and runtime.

Nate Pendleton from Texas Capital inquired about Berry's ability to sustain its 20% well cost reduction in the Uinta Basin and asked about other long-term opportunities within the California portfolio beyond the current sidetrack program.

Answer

CEO Fernando Araujo stated that there is room for further cost improvements in the Uinta, potentially another 5% or more, through better dual-fuel fleet performance and water management. He also detailed a vast portfolio of opportunities in California, including horizontal drilling in the Monarch formation, development in the Hill property, and workover potential in Round Mountain, all of which offer high rates of return.

Nate Pendleton inquired about the progress of joint venture discussions for future Uinta Basin development in light of recent well results. He also asked about the opportunity for Berry's C&J Well Services division following new P&A legislation in California and the competitive landscape.

Answer

CEO Fernando Araujo stated that while JV discussions are ongoing to potentially accelerate Uinta development, Berry is comfortable proceeding alone and will only agree to a deal that is accretive and doesn't undervalue the asset. President Danielle Hunter addressed the P&A question, noting the new legislation will increase demand, positioning C&J well. However, she believes industry consolidation, which Berry is considering, is needed to materially impact pricing and activity levels.

Nate Pendleton from Texas Capital asked for an update on the Class VI permitting progress for CTV projects and inquired about legislative support for CO2 pipeline development in California.

Answer

EVP Chris Gould confirmed progress on all CTV permits, expecting a draft permit for the A1A2 reservoir this year and noting the EPA is committed to expediting the process. President & CEO Francisco Leon highlighted strong momentum for Assembly Bill 881, which would lift the moratorium on CO2 pipelines and could be in effect by January 2026, unlocking carbon management at scale.

Nate Pendleton from Texas Capital asked for specific milestones regarding the MOU with National Cement and inquired about the strategy for the CO2 transportation component. As a follow-up, he asked about the new CFO's top financial priorities and the rationale for redeeming only half of the 2026 senior notes.

Answer

CEO Francisco Leon described the National Cement deal as a key brownfield partnership and stated CRC is actively working with federal and state bodies to lift the moratorium on CO2 pipelines. CFO Clio Crespy outlined her priorities as maintaining a strong balance sheet, driving cash flow, and disciplined capital allocation. She explained that redeeming only half the 2026 notes was a strategic move to preserve flexibility for growth and shareholder returns, with plans to address the remainder well before maturity.

Nate Pendleton of Texas Capital inquired about potential policy actions from the current administration to incentivize production in the Gulf of America and also asked for the key drivers behind the strong implied production ramp-up expected in the latter half of 2025.

Answer

Founder, Chairman, CEO & President Tracy Krohn discussed potential policy support, including lower royalties and streamlined regulations like changes to the 'idle iron act,' to incentivize Gulf of America production. Executive VP & COO William Williford added that the expected production increase in late 2025 is driven by ongoing low-cost workovers, recompletions, and the continued ramp-up of a recently acquired Cox field.

Nate Pendleton asked about the permitting status for the data center fleet and inquired about operational levers being used to mitigate the expected activity decline in the Logistics Solutions segment.

Answer

CFO & President Kyle Ramachandran clarified that while the customer handles permitting, Solaris provides support; one data center has its Title V air permit, and the second is in process. Chairman & CEO William Zartler addressed the logistics question, stating they are actively managing fixed costs to protect margins without compromising safety or reliability.