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Eric Jacobsen, President of Upstream, explained that the Bedrock deal adds approximately 70 equivalent 10,000-foot laterals and 80 refrac locations, extending inventory by a couple of years. He noted that cost per foot has already decreased 11% to around $560 and expects further structural cost reductions from longer laterals, advanced completion designs, and data analytics, though U-turn wells will remain a small part of the program.

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CEO Christopher Kalnin affirmed the robustness of the 45Q tax credit and strong bipartisan support, highlighting the powerful momentum in CCUS driven by demand for decarbonized power from data centers. President of Upstream Eric Jacobsen added that the project funnel for natural gas processing plants remains strong. Regarding the project exclusions, Mr. Kalnin clarified that the decision was based purely on timing criteria within the deal structure.

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CEO Christopher Kalnin explained that BKV would be comfortable dedicating up to 750 megawatts from one of its two Temple, TX power plants to a PPA to ensure redundancy. He confirmed that discussions with prospective customers are active and that the company is pursuing opportunities for both its existing assets and for constructing new power plants to meet specific customer demands for new generation.

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CEO Chris Kalnin explained that the immediate priority is the upstream business to ensure the company's 'cash engine is humming,' with a long-term vision for power and carbon capture to comprise up to half the business. COO Eric Jacobsen added that capital deployment is systematic, using a gas price of $3.00-$3.25/Mcf as a fulcrum for deciding between maintenance spending and growth, with prices above that range triggering accelerated investment.

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President & CEO Vicki Hollub stated that while shale EOR is economical, the primary constraint is CO2 availability, making DAC crucial. She anticipates a commercial project in the Delaware Basin within 1-2 years. Regarding the second DAC facility, she confirmed the intent to reach a final investment decision (FID), supported by a DOE grant and new technology, with plans to pre-sell the carbon credits.

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Richard Jackson, President of U.S. Onshore, stated that the overall Permian primary/secondary bench mix in 2025 should be similar to 2024 levels. For the CrownRock assets specifically, the 2025 plan is de-risked and focuses heavily on primary benches, which will constitute about 85% of the program, targeting well-understood Wolfcamp A and B zones.

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President & CEO Francisco Leon reiterated that the company's focus is on growing cash flow per share, not production volume for its own sake. He also stated there is 'massive running room' to improve recovery factors, noting other California fields have reached 70-75%, which represents decades of quality inventory and a significant competitive advantage for CRC.

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Francisco Leon (Executive) responded that CRC is 'about to find out' regarding direct underwriting from big tech. He positioned CRC's integrated offering at Elk Hills (power, land, CCS) as a unique, first-mover solution for AI data centers, which allows the company to be selective with partners. He affirmed that capture on gas plants is a natural progression and a major opportunity that the company is actively pursuing.

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President & CEO Clay Gaspar and SVP John Raines clarified that Devon is not resetting its maintenance production level, continuing to target the mid-380s oil rate. They explained the strategy is to translate efficiency gains into lower capital requirements rather than higher production volumes in a well-supplied market, thereby extending the life of their premium inventory.

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Chief Operating Officer Clay Gaspar advised that the Q4 guide for operating costs is a "good starting point" for 2025, as it already accounts for seasonal variations. On completion tech, Gaspar stated that while all options like e-frac are evaluated, Devon's current dual-fuel fleets already achieve significant cost benefits by running on high percentages of natural gas without the need for long-term e-fleet contracts. He expressed confidence in continued innovation from internal teams and partners.

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EVP of Operations Blake Sirgo affirmed the preference for maintaining operational cadence, noting projects are stress-tested to low prices and that lower service costs often accompany price dips. Regarding the Harkey, he explained the fix involved changes to cement and casing design to ensure mechanical isolation, a principle they apply everywhere, tailored to specific field geology.

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Chairman, CEO and President Thomas Jorden explained that the remediation workover campaign will take months, not weeks, so there is no firm timeline yet. Regarding 2026, he stated that the company is being conservative and reacting to potential further weakening, but investment decisions depend more on the reasons for the price level than the number itself.

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Chairman, CEO and President Thomas Jorden responded that allocation is based strictly on return on investment, noting Marcellus dry gas competes well at those prices. SVP of Operations Blake Sirgo stated the goal is to apply the same economies of scale to Lea County as they have in Culberson by optimizing infrastructure, contracts, and power.

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CEO Kaes Van't Hof explained that the DUC balance provides valuable flexibility; if the market is weak, they can slow down, and if strong, they can accelerate quickly. He noted they are comfortable with a balance in the high 100s to 200s. CFO Jere Thompson projected the 2026 cash tax rate to normalize at 18-20% of pre-tax income, following a lower 15-18% rate in 2025 due to one-time benefits from tax law changes.

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Chairman and CEO Travis Stice explained this is a 'natural evolution' of a maturing basin where efficiency gains become smaller. Regarding costs, President Kaes Van’t Hof and COO Daniel Wesson noted that short-term contracts and constant negotiations with partners allow them to capture savings quickly as the service market softens.

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President and CFO Kaes Van't Hof corrected the 'maintenance mode' premise, noting the plan includes modest growth, and emphasized that the company's focus is on macro conditions and free cash flow generation, not a specific price trigger. He stated the $600 per foot cost is a real-time, mark-to-market number that already reflects current service pricing. He expects a flat rig count to keep service costs subdued, which would benefit shareholders.

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CEO Scott Bender affirmed that, all else being equal, it is fair to assume margins will trough in Q2/Q3. He identified three drivers for future improvement: more expansive cost recovery, the migration of manufacturing to the lower-tariff Vietnam facility, and the benefits from organizational rightsizing. Bender stated that the Vietnam facility is expected to be able to take on the full former Chinese load by the summer of 2026.

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Executive Alan Boyd reiterated the Q2 Pressure Control revenue guidance of down low-to-mid single digits. CEO Scott Bender described the Vietnam start-up costs as de minimis, with the facility already funded and operational. Bender also indicated that the company will be 'more fully integrated' in Vietnam than in China, suggesting a shift in component sourcing.

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Flex Steel CEO Steve Tadlock stated that the segment grew market share in 2024, evidenced by record revenue despite a decline in industry activity. He noted that while Q1 is seasonally the weakest quarter, activity is rebounding as expected. Regarding the H2S product, Tadlock confirmed that the qualification process for Middle East markets is underway and is expected to progress within the year, clarifying it is not a multi-year effort.

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Chairman and CEO Scott Bender acknowledged the company has 'too much cash' and is actively pursuing expansion opportunities. He indicated that if a transaction does not occur by the end of the upcoming year (2025), they would increase cash returns to shareholders. On the Middle East, Mr. Bender stated that progress is being made cautiously to ensure a responsible expansion and avoid future impairments, noting the key factor is the strategic decision, not technical testing.

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CEO Ron Gusek projected a mid-single-digit activity reduction and low-single-digit pricing headwinds in Q3, following a very strong Q2. He noted the company is repurposing horsepower for simul-frac work to enhance efficiency. CFO Michael Stock added that normal seasonality should be expected for Q4 but deferred a clearer outlook. Stock also confirmed the OCLO alliance will work with existing customer relationships to accelerate power development for large-load users like AI data centers.

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CEO Ron Gusek confirmed they have the flexibility to adjust fleet deliveries if necessary. Regarding capital allocation, he emphasized that protecting the balance sheet is the top priority amid uncertainty, stating that this would "certainly preclude using debt for buybacks."

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CEO Ron Gusek explained that Liberty's competitive advantage in power will mirror its success in frac services, focusing on a complete solution underpinned by superior technology, engineering, supply chain, and service delivery. CFO Michael Stock highlighted their modular, factory-built design for rapid and cost-effective deployment. They view merchant power as a durable, long-term opportunity driven by persistent grid congestion and instability.

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CFO Michael Stock indicated that 2025 CapEx for the completions business would decline, targeting the addition of 4-5 Digi fleets, representing about a 10% replacement rate. He noted that LPI investment plans would be clarified on the January call but emphasized that the completions business would generate more free cash flow year-over-year. For Q4, Stock anticipates a revenue decline similar to the prior year but with higher decrementals due to pricing dynamics. He projects Q1 2025 activity will recover to a level between Q3 and Q4 2024, with standard incrementals.

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President & CEO William Hendricks stated it was too early to definitively call Q4 but noted that based on customer conversations, he does not anticipate a steep decline for Patterson-UTI, suggesting a potential softening. He added that the drilling rig count has the potential to stabilize in Q4, similar to the prior year, contingent on commodity prices holding steady.

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CEO William Hendricks explained that Q1 activity ramped up faster than anticipated, setting a high baseline for Q2. The guidance reflects this high starting point and includes some conservatism for potential white space later in the quarter. He noted that if oil prices remain in the low $60s, it could cause some market 'softening,' but he does not expect a 'drastic response' from Patterson-UTI's customer base, which is heavily weighted toward large, stable operators with long-term plans.

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CEO William Hendricks stated that while Q4 is an anomaly, he expects Completion activity and profitability to ramp up in H1 2025, targeting margins similar to mid-2024. Regarding the Turnwell JV, Hendricks explained that initial participation is through expertise, and any future capital deployment, such as moving rigs, would be carefully weighed against shareholder return priorities and would not jeopardize them.

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CFO & President Kyle Ramachandran confirmed the outlook implies continued market softness for Logistics but highlighted Solaris's ability to gain share with high-intensity completion designs. Chairman & CEO William Zartler added that oil and gas microgrid customers have strong credit quality and similar contract tenors and pricing, making them an attractive and familiar end market for the company.

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CEO & Chair Douglas Pferdehirt stated that upcoming announcements would likely include details on both Q2 awards and new Q3 awards, with timing dependent on client approvals. He emphasized that operator commitment to greenfield projects remains robust for long-term supply, while brownfield activity is also very strong due to its attractive economics, with the unannounced award bucket approaching $1 billion.

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CEO Douglas Pferdehirt explained that the 'step-outs' relate to the advanced field development strategies of sophisticated clients like Petrobras and could involve new technologies. Regarding manufacturing, he confirmed that the shift to standardized Subsea 2.0 production has significantly increased cadence and efficiency, allowing for higher output with less capital and improving quality by eliminating re-tooling between products.

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CFO Alf Melin explained that while the company is not looking to build a large cash balance, a small net cash position is prudent. He reiterated the commitment to return at least 70% of free cash flow to shareholders in 2025. CEO Douglas Pferdehirt noted that Subsea 2.0 constitutes about one-third of current manufacturing activity and will grow. Alf Melin added that Subsea Services revenue is projected to be around $1.8 billion in 2025.

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Chair and CEO Douglas Pferdehirt explained that the Petrobras project values increased due to scope changes in field infrastructure and layout identified during FEED work. He firmly dismissed the driller 'white space' concern as a company-specific issue, not an industry-wide problem, stating it has not been raised by clients and is not impacting FTI's project FID timing or execution cadence.

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President and CEO Girish Saligram clarified that the anticipated Q4 ramp is based on two factors: expected seasonality from year-end sales, which may be muted by tariffs, and more significantly, several major project start-ups for which the company has strong visibility and orders in hand.

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President and CEO Girish Saligram explained the guidance reduction was driven by a larger-than-expected decline in Mexico, a more prudent view on North America, and slight degradations for other regions. He quantified the divestiture impact at roughly 100-300 bps of revenue reduction. Regarding proceeds, Saligram noted the sale improves cash conversion, with proceeds adding to overall liquidity for capital allocation priorities.

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Executive Girish Saligram outlined four consistent margin levers: targeted pricing in differentiated areas, new technology introduction, fulfillment network optimization, and internal cost efficiencies. He acknowledged that Weatherford likely benefited from strong pricing but does not see it as a risk, citing strong industry-wide discipline and the company's rigorous, value-based approach to pricing, which it will not sacrifice for revenue.

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EVP & CFO Ahmed Moghal attributed the strong margin performance to specific actions within each segment. He explained that OFSE's 90 basis point sequential margin expansion to 18.7% was driven by stronger revenue and cost efficiencies, including streamlining the cost structure and maintaining price discipline. For IET, he noted the 190 basis point year-over-year expansion to nearly 18% was due to record margins in Gas Tech Equipment and strong performance in Cordon Solutions, all underpinned by the company's business system. Chairman & CEO Lorenzo Simonelli added that margin accretion is the primary focus and they aim to continue this progression into 2026.

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EVP & CFO Ahmed Moghal attributed the margin strength to specific actions within each segment. For OFSE, he cited cost structure streamlining and disciplined pricing. For IET, he pointed to record margins in Gas Technology Equipment (GTE), strong performance from Cordon Solutions, and the successful implementation of the company's business system. Chairman & CEO Lorenzo Simonelli affirmed the company's commitment to continued margin progression into 2026.

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CFO Ahmed Moghal explained that Baker Hughes' global footprint naturally limits exposure, with less than 2% of its $14 billion in annual material purchases coming from China into the U.S. He outlined a three-pronged mitigation strategy: leveraging its global manufacturing footprint, utilizing free trade agreements, and enforcing contractual price adjustments. Moghal confirmed the $100-$200 million figure is the net impact after these mitigation efforts are accounted for.

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CFO Nancy Buese expressed high confidence in achieving the 45-50% free cash flow conversion rate in 2025. She identified the primary drivers as continued improvements in working capital efficiency, better cash tax rate management, and the natural benefit from structurally higher operating margins flowing through to cash flow.

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Nancy Buese, CFO, stated that over half of the year-over-year margin improvement came from internal 'self-help' initiatives. She detailed that IET's record 17.9% margin was driven by converting higher-margin backlog, cost efficiencies, and strong productivity. Lorenzo Simonelli, Chairman and CEO, emphasized that the 20% target is a 'milestone, not a destination,' signaling a commitment to continued margin accretion beyond 2026.

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EVP & CFO Eric Carre clarified that D&E margin improvement in Q3 and Q4 is driven by the elimination of prior mobilization costs, stronger directional drilling results, and a material increase in high-margin software sales. Chairman, President & CEO Jeff Miller stated the Zeus buildout has always been demand-driven and will slow if new orders wane, adding that he expects overall CapEx to trend toward the lower end of the guided range.

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EVP & CFO Eric Carre clarified that the Q3 D&E margin improvement is driven by better software sales, stronger directional drilling, and the elimination of Q2's mobilization costs. The Q4 improvement will be a continuation, with a material boost from seasonal software sales. Chairman, President & CEO Jeff Miller stated the Zeus build-out has always been demand-driven and will slow if new contracts are not secured. He expects overall CapEx to trend toward the lower end of the range in 2026.

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CFO Eric Carre noted that CapEx is somewhat self-regulating with revenue and that current spending reflects prior commitments, with adjustments now impacting 2026. CEO Jeffrey Miller added that capital is allocated to growth areas. Regarding VoltaGrid, Miller described the investment as 'optionality' with no predetermined direction, emphasizing that any larger strategic move would require a clear path to a sustainable competitive advantage.

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CEO John Christmann explained the New Mexico sale was an opportunistic transaction driven by a highly competitive process and an attractive price, allowing for debt reduction. CFO Ben Rodgers noted the valuation was in the mid-to-high 5x EBITDA range. President and CFO Steve Riney added that the assets had not competed well for capital. Regarding LOE, Riney acknowledged challenges but stated meaningful savings will come from structural changes, operational optimizations, and commercial negotiations later in the year and beyond.

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COO Jeff Leitzel explained that while Trinidad has been primarily a gas play, they knew of oil potential at Barrel and will continue to explore for both oil and gas opportunities. He attributed the Q1 OpEx beat to lower workover expenses and noted that full-year costs are trending lower due to labor efficiencies and potential fuel savings, with continued focus on optimization.

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Chairman and CEO Ezra Yacob responded that EOG's capital plan is an output of its returns-focused strategy, not a growth target, and pointed to the company's 3-year outlook showing strong results even at $65 oil. He highlighted that strong well performance allows for high cash returns to shareholders. Regarding carbon capture, Yacob stated the focus is on internal projects to leverage the technology developed from its successful pilot, as keeping it in-house provides the most value.

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CEO Jillian Evanko explained that Chart primarily manufactures in China for the local market (industrial gas, power gen) with minimal U.S. imports, and that tariff exemptions have already reduced gross exposure. She expressed confidence in the full-year guidance, citing the strong new-build backlog, the significant aftermarket (RSL) business, tariff mitigation actions like in-region sourcing, and margin strength in the Specialty Products segment.

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CEO Jillian Evanko reaffirmed confidence in the high single-digit to 10% growth target for RSL in 2025, citing strong project visibility and internal growth initiatives. Regarding IPSMR, she stated that while the current model involves an upfront technology fee, the company remains flexible on contract structures with customers, prioritizing positive working capital on all large projects.

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President and COO Jose Bayardo clarified that tariff mitigation primarily involves supply chain adjustments, not significant CapEx. CFO Rodney Reed and CEO Clay Williams addressed M&A, stating that while they are always looking for opportunistic deals, they are pleased with the current portfolio and noted that volatile markets can sometimes make closing transactions more difficult.

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President and CEO Robert Eifler stated that the performance bonuses for both the Shell and TotalEnergies contracts are calculated and collected on a well-by-well basis. He also estimated that the rig upgrades would require a couple of months of downtime for final installation and confirmed that Noble is in active discussions for short-term work to fill the availability gap before the long-term contracts commence.

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CFO Jeremy Knop acknowledged that each power deal is unique and requires a flexible approach. While open to various structures, he expressed a preference for index-plus style deals, similar to those signed with Southeastern utilities. He cautioned that a fixed-price deal that looks good today might become unfavorable over a 20-year term as the marginal cost of gas rises. The key is ensuring any fixed price adequately compensates for the long-term upside asymmetry in gas prices.

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Executive Dave Wilson explained that performance contracts have recently trended toward the higher end of their typical $1,000 to $2,000 per day margin uplift. President and CEO John Lindsay added that these contracts are a 'win-win,' as customers also benefit from faster, lower-cost wells. He expressed confidence in continued adoption across all customer types, including super majors, independents, and private companies.

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CFO Thad Vayda explained that while 2024 inflation was around 5-6%, the 2025 guidance assumes a more moderate 3% on average, noting that most inflation in long-term contracts is passed through to customers. On Namibia, President & COO Keelan Adamson and CEO Jeremy Thigpen detailed that the choice between a drillship and a harsh-environment semi-submersible depends on the specific location and work scope. Drillships offer drilling efficiency, while semis provide better station-keeping in extreme weather, making them potentially preferable for completion phases.

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CEO Sam Sledge and CFO David Schorlemer explained that maintenance expense is trending down significantly, with e-fleets requiring minimal shop time. Sledge highlighted a 25% to 40% improvement for new fleets and noted that internal optimization has also extended the life of conventional components. While they declined to provide a specific 2025 figure pending budget finalization, they pointed to current financial statements as a good guide and reiterated the strong downward trend in capital intensity.

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