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    Stephen Gengaro

    Managing Director at Stifel Financial Corp.

    Stephen Gengaro is a Managing Director at Stifel Financial Corp., specializing in equity research for oilfield services and equipment within the energy and industrial sectors. He covers a wide array of companies including Generac Holdings, SLB (Schlumberger), Weatherford International PLC, Target Hospitality Corp, and Lucid Group Inc., with more than 744 documented ratings and a price target met ratio of 53%, while delivering an average return per transaction of 1.7% and notable successes such as a 75% gain on Weatherford International. Gengaro launched his analyst career over 20 years ago and joined Stifel in April 2018 after tenures at Loop Capital, Sterne, Agee & Leach/CRT Capital, Jefferies, and Furman Selz/ING Barings/ABN AMRO. He holds an MBA from Boston College and a BA in Economics from The Catholic University of America, and has received Best Analyst honors from Forbes and Marine Money Magazine, along with recognition from StarMine and The Wall Street Journal for earnings accuracy and stock picking.

    Stephen Gengaro's questions to ChargePoint Holdings (CHPT) leadership

    Stephen Gengaro's questions to ChargePoint Holdings (CHPT) leadership •

    Question

    Stephen Gengaro asked when a revenue inflection point might occur based on the 'green shoots' mentioned, and requested quantification of the potential gross margin impact from Asian manufacturing and improved subscription margins.

    Answer

    CEO Rick Wilmer described 'green shoots' as customers expanding deployments and winning back deals from failed competitors but found it hard to predict an exact inflection point. CFO Mansi Khetani noted that benefits from lower-cost Asian manufacturing will be gradual as existing inventory is sold. She highlighted that non-GAAP subscription margins are already above 50% due to support cost optimizations.

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    Stephen Gengaro's questions to ChargePoint Holdings (CHPT) leadership • Q4 2025

    Question

    Stephen Gengaro asked about the strong subscription margins in Q4, questioning if there was a seasonal trend, and also inquired about the potential impact of supply chain and tariff issues.

    Answer

    CFO Mansi Khetani and CEO Rick Wilmer explained that Q4 subscription margins benefit from higher revenue without scaling costs, and they expect this to continue due to economies of scale, automation, and favorable cloud hosting negotiations. On tariffs, Wilmer stated that due to a diversified manufacturing footprint, including in the U.S., the company does not anticipate a major impact on its supply chain or COGS.

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    Stephen Gengaro's questions to Target Hospitality (TH) leadership

    Stephen Gengaro's questions to Target Hospitality (TH) leadership • Q2 2025

    Question

    Stephen Gengaro of Stifel Financial Corp. asked about the expected duration of data center contracts, questioning if they are long-term or more transient. He also inquired about the sourcing of beds for these projects and the current cost-per-bed for new builds.

    Answer

    President and CEO Brad Archer confirmed that data center contracts are long-term commitments, involving a large workforce in a single location for multiple years. He explained that bed sourcing is a tiered strategy: first utilizing excess capacity, then buying on the open market, and finally building new assets if required by the large project pipeline. While declining to provide a specific cost-per-bed, Archer assured that all capital costs are factored into the contract economics to ensure strong, high-margin returns.

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    Stephen Gengaro's questions to Target Hospitality (TH) leadership • Q1 2025

    Question

    Stephen Gengaro of Stifel inquired about the potential to reactivate idle Government assets in West Texas, seeking details on demand drivers and conversations. He also asked about the financial contribution and long-term upside of the new Workforce Hub contract supporting a lithium project, and later questioned the flexibility of repurposing oil patch assets for new projects like data centers.

    Answer

    President and CEO Brad Archer stated that high-level conversations with the government about the West Texas assets are ongoing, with recent site tours increasing excitement. He noted the government's intent to increase bed capacity and sees the facility as an 'easy button' once funding is secured. CFO and CAO Jason Vlacich detailed the Workforce Hub contract, projecting ~$65 million in construction revenue in 2025 with services revenue continuing through 2027 and potential for future phases. Regarding asset flexibility, both executives confirmed that HFS assets can be and have been repurposed for other segments, like government or data centers, while maintaining their commitment to core energy customers in the Permian Basin.

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    Stephen Gengaro's questions to Target Hospitality (TH) leadership • Q4 2024

    Question

    Stephen Gengaro of Stifel inquired about the potential economics of remarketing the West Texas assets compared to the Dilley contract, the long-term opportunity set for the Lithium Americas project, and the stability of the core HFS business.

    Answer

    CFO Jason Vlacich and CEO James Archer explained that the Dilley contract serves as the best economic proxy for the West Texas assets, with potential upside. They highlighted the multi-phase potential of the Lithium Americas project beyond 2027, comparing the region's potential to the Permian but with more stationary workforces similar to oil sands. For the core HFS business, Mr. Vlacich confirmed its stability is due to the majority of revenue being secured under long-term contracts.

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    Stephen Gengaro's questions to Lucid Group (LCID) leadership

    Stephen Gengaro's questions to Lucid Group (LCID) leadership • Q2 2025

    Question

    Stephen Gengaro of Stifel Financial Corp. asked for an update on Lucid's approach to technology licensing agreements and the development progress of the new, cost-efficient Atlas powertrain.

    Answer

    Interim CEO Marc Winterhoff explained that while licensing discussions with other OEMs are ongoing but slow, the company is also pursuing broader partnerships, citing the Uber/Nuro deal as an example. He confirmed the Atlas powertrain development is on track to achieve high efficiency at a lower cost for the midsize platform.

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    Stephen Gengaro's questions to Lucid Group (LCID) leadership • Q1 2025

    Question

    Stephen Gengaro from Stifel inquired about the qualitative order trends and test drive availability for the Lucid Gravity. He also asked for an update on the Atlas drivetrain's status and, in a follow-up, questioned the expected timeline and key drivers for achieving gross margin breakeven as Gravity production ramps.

    Answer

    Interim CEO Marc Winterhoff confirmed strong order inflow for the Gravity, noting the limited Dream Edition is nearly sold out and test drives are being rolled out to studios. He indicated an announcement on the Atlas drivetrain is forthcoming in the next few months. CFO Taoufiq Boussaid added that while Gravity will help, the Midsize platform is the key lever to absorb fixed costs and reach breakeven due to its scale.

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    Stephen Gengaro's questions to Lucid Group (LCID) leadership • Q4 2024

    Question

    Stephen Gengaro of Stifel asked how the introduction of the Lucid Gravity will affect the gross margin progression in 2025 and what the potential production exit rate for Q4 2025 or overall capacity for 2026 might be.

    Answer

    SVP of Finance Gagan Dhingra stated that Lucid expects a significant gross margin improvement in 2025, comparable to the improvement seen in 2024, driven by increased production scale. Interim CEO Marc Winterhoff declined to provide a 2026 capacity forecast, explaining that the company has flexibility to add shifts and will make decisions based on demand evolution throughout 2025, particularly after opening orders for lower-priced Gravity trims.

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    Stephen Gengaro's questions to Lucid Group (LCID) leadership • Q3 2024

    Question

    Stephen Gengaro questioned the expected impact on gross margin as Lucid Gravity production ramps in 2025. He also asked about the rationale and timing of the recent $1.75 billion capital raise, considering the company's previously stated financial runway.

    Answer

    Interim CFO Gagan Dhingra noted that learnings from the Air are being applied to the Gravity, which is expected to drive scale and improve margins, with specific 2025 guidance to come in Q4. CEO & CTO Peter Rawlinson defended the capital raise as a 'prudent' and 'opportunistic' move to secure the company's financial runway well into 2026, past the Gravity ramp-up. He stressed the importance of not waiting until the last minute and highlighted the PIF's pro-rata investment as a strong vote of confidence.

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    Stephen Gengaro's questions to Atlas Energy Solutions (AESI) leadership

    Stephen Gengaro's questions to Atlas Energy Solutions (AESI) leadership • Q2 2025

    Question

    Stephen Gengaro of Stifel Financial Corp. asked about the primary drivers of Atlas Energy's market share gains in a soft Permian market and inquired about the company's capital allocation priorities between strategic investments and shareholder returns.

    Answer

    President and CEO John Turner attributed market share gains, which have grown from the high 20s to 35%, to Atlas's reputation for reliability, its integrated logistics network including the Dune Express, and superior customer service. CFO Blake McCarthy explained that Atlas's low-cost structure enables it to continue investing in its logistics platform and power business while returning capital to shareholders, a strategic advantage while competitors are forced to cut spending.

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    Stephen Gengaro's questions to EVgo (EVGO) leadership

    Stephen Gengaro's questions to EVgo (EVGO) leadership • Q2 2025

    Question

    Stephen Gengaro from Stifel Financial Corp. asked if EVgo expects to be adjusted EBITDA positive in every quarter of 2026, whether the lower initial productivity of grant-funded chargers will be observable in metrics, and about targeted marketing for the NACS rollout.

    Answer

    CEO Badar Khan declined to give 2026 guidance but affirmed that rising throughput per stall is the primary driver of EBITDA growth. He acknowledged that grant-funded stalls might slightly impact aggregate throughput initially but stressed their exceptional returns on capital. Regarding NACS, Khan emphasized a data-driven marketing approach using AI agents to target Tesla drivers in specific locations, rather than broad, politicized campaigns.

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    Stephen Gengaro's questions to Ameresco (AMRC) leadership

    Stephen Gengaro's questions to Ameresco (AMRC) leadership • Q2 2025

    Question

    Stephen Gengaro sought clarity on the expected deployment of energy assets in the second half of the year, the evolution of project margin profiles in Europe, and whether Ameresco is exploring non-lithium-ion battery storage technologies.

    Answer

    Joshua Baribeau, SVP & Chief Investment Officer, reaffirmed the full-year guidance of placing 100-120 MW of energy assets in service, highlighting a large battery asset and an RNG facility as significant second-half contributors. George Sakellaris, Chairman, CEO & President, explained that European project margins, initially lower to establish a market presence, are now 'considerably higher.' Baribeau also confirmed that Ameresco is in active discussions with vendors for non-lithium battery technologies for future projects with large industrial customers.

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    Stephen Gengaro's questions to Ameresco (AMRC) leadership • Q4 2024

    Question

    Stephen Gengaro inquired about customer conversations since January amid political uncertainty and asked about the potential for lumpiness in the deployment of energy assets in 2025.

    Answer

    CEO George Sakellaris and President of Federal and Utility Infrastructure Nicole Bulgarino confirmed that federal customer activity remains strong, particularly from the Department of Defense, with new RFPs being issued. For energy assets, George Sakellaris noted potential supply chain delays for large transformers and permitting for RNG pipelines, but stated the overall development backlog and financial markets remain very good.

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    Stephen Gengaro's questions to Ameresco (AMRC) leadership • Q3 2024

    Question

    Stephen Gengaro from Stifel requested a breakdown of the moving parts bridging Q3 to the implied Q4 EBITDA guidance. He also asked about the margin profile of the project backlog expected to be converted over the next 12 months.

    Answer

    CFO Mark Chiplock explained that the strong Q4 outlook is driven by high revenue with a better gross margin profile, particularly in the Projects business. He expects underlying project margins to be consistent when normalized for SCE costs, though the mix of lower-margin European projects could slightly pull down the average. He confirmed the margin improvement comment applies more to Projects than the steadier Assets business.

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    Stephen Gengaro's questions to OIL STATES INTERNATIONAL (OIS) leadership

    Stephen Gengaro's questions to OIL STATES INTERNATIONAL (OIS) leadership • Q2 2025

    Question

    Stephen Gengaro of Stifel Financial Corp. inquired about the visibility for offshore order flow into 2026 and beyond, and asked for guidance on a sustainable margin range for the Offshore Products segment.

    Answer

    President & CEO Cindy Taylor confirmed a positive outlook, expecting a book-to-bill ratio above 1.0 for the rest of 2025 with optimism for 2026, driven by long-cycle projects and new technology. Regarding margins for the Offshore Manufactured Products segment, both Taylor and EVP & CFO Lloyd Hajdik suggested modeling a 20-22% range, noting potential for accretion as revenue grows and throughput improves, an increase from historical levels.

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    Stephen Gengaro's questions to OIL STATES INTERNATIONAL (OIS) leadership • Q4 2024

    Question

    Stephen Gengaro inquired about Oil States' capital allocation strategy, specifically asking if the company prioritizes share buybacks over debt reduction with its projected $40-50 million in 2025 free cash flow. He also asked for clarification on the potential revenue opportunity from FPSO projects and questioned what percentage of the current business might be considered for future divestiture due to being lower-margin.

    Answer

    President and CEO Cindy Taylor stated that the company is comfortable with its current debt levels, noting net debt was approximately $45 million in January after some large collections. She confirmed a focus on shareholder returns, primarily through buybacks. Regarding FPSOs, she explained that revenue per project varies but can range from $15 million to $25 million, and the company's guidance already incorporates expected growth from this area. On divestitures, CFO Lloyd Hajdik pointed to the $41 million in revenue from exited operations in 2024, and Cindy Taylor added that a key focus for margin improvement is the Downhole Technologies segment through international expansion and new domestic technology.

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    Stephen Gengaro's questions to OIL STATES INTERNATIONAL (OIS) leadership • Q3 2024

    Question

    Stephen Gengaro inquired whether the company's strategic restructuring was largely complete, asked about the sustainability of high margins in the Offshore/Manufactured Products segment, and sought clarity on whether the 2025 margin targets for other segments depend on improved pricing.

    Answer

    President and CEO Cindy Taylor confirmed that the bulk of the operational restructuring is complete, with the future focus shifting to internal efficiencies like SG&A. Regarding offshore margins, she explained that while quarterly results can vary by product mix, a sustainable range of 19-20% is achievable. She clarified that the 2025 margin improvement targets for the Completion & Production and Downhole segments are based on the new, streamlined business mix and do not rely on future price increases. CFO Lloyd Hajdik added that DD&A is expected to decline in Q4 due to the business exits.

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    Stephen Gengaro's questions to Cactus (WHD) leadership

    Stephen Gengaro's questions to Cactus (WHD) leadership • Q2 2025

    Question

    Stephen Gengaro of Stifel Financial Corp asked for clarification on how Pressure Control margins are guided to be stable in Q3 despite a difficult June due to tariffs. He also inquired about customer sentiment and what catalysts are needed to ramp activity, given that oil prices are relatively high.

    Answer

    CEO Scott Bender explained that Q2 margins were hit by three factors: an unexpected doubling of Section 232 tariffs, a shift to higher-cost U.S. supply chains, and a pause in cost recovery initiatives due to falling oil prices. Regarding customer activity, Bender stated that clients remain focused on capital discipline and are not as responsive to higher crude prices as in the past. He noted that while the gas rig count is rising, it's from a low base and won't offset the softness in oil-directed activity.

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    Stephen Gengaro's questions to Cactus (WHD) leadership • Q1 2025

    Question

    Stephen Gengaro asked about customer loyalty during the current downturn compared to past cycles and inquired about potential M&A opportunities given the company's strong balance sheet.

    Answer

    CEO Scott Bender affirmed that major customers are prioritizing supply chain sustainability and sticking with the company, a dynamic similar to past downturns. Regarding M&A, Bender acknowledged that many private equity-owned assets are available but stated the company's current focus remains on its core industry, while not ruling out another FlexSteel-type opportunity.

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    Stephen Gengaro's questions to Cactus (WHD) leadership • Q4 2024

    Question

    Stephen Gengaro of Stifel asked about the U.S. activity outlook, Cactus's ability to outgrow the market, the manufacturing cost differential between U.S. and China facilities, the potential for price increases to offset tariffs, and international growth prospects for the Pressure Control segment.

    Answer

    Chairman and CEO Scott Bender confirmed expectations to outperform the market by adding new customers, despite trade policy uncertainty. He quantified the Bossier City facility's cost as at least 35% higher than the Far East supply chain and expressed confidence in customer support for tariff-related cost recovery. Regarding international Pressure Control growth, Bender indicated significant progress but declined to provide specific details at this time.

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    Stephen Gengaro's questions to Cactus (WHD) leadership • Q3 2024

    Question

    Stephen Gengaro asked if U.S. customer consolidation has changed customer conversations and the competitive landscape for high-performance products. He also asked if Cactus could achieve modest EBITDA growth in 2025 assuming a flat rig count.

    Answer

    Chairman and CEO Scott Bender responded that he views customer consolidation as a 'net positive' for Cactus. He believes the market is shifting from relationship-based to technical buying, which favors Cactus's offerings and will challenge smaller competitors, ultimately boding well for market share. Regarding 2025, Mr. Bender confirmed with a simple 'Yes' that the company could deliver modest EBITDA growth in a flattish rig count environment.

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    Stephen Gengaro's questions to Eos Energy Enterprises (EOSE) leadership

    Stephen Gengaro's questions to Eos Energy Enterprises (EOSE) leadership • Q2 2025

    Question

    Stephen Gengaro from Stifel Financial Corp. inquired about the bridge to the second-half revenue guidance and how Eos Energy balances order flow visibility with capital-intensive production line expansions.

    Answer

    CEO Joe Mastrangelo explained that Eos Energy has been doubling production quarter-over-quarter for the last nine months and that continuing this trend will place them firmly within their guidance range. He noted that the new subassembly automation will be key to this ramp. Regarding expansion, he stated that ordering Line 2 was a strategic move to demonstrate capacity to large customers, with the ramp timing being flexible to align with incoming orders and capital efficiency.

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    Stephen Gengaro's questions to Eos Energy Enterprises (EOSE) leadership • Q4 2024

    Question

    Stephen Gengaro of Stifel asked for an update on the enclosure supply chain issues from Q3 and why diversifying suppliers hasn't led to a faster revenue ramp in early 2025. He also requested more detail on the composition of the growing order backlog.

    Answer

    CEO Joe Mastrangelo clarified that while the enclosure supply chain is now diversified with multiple suppliers, ramping up new suppliers takes time. He stated the primary constraint on the Q1/Q2 revenue ramp is the timing of subassembly automation, which is needed to increase throughput. Regarding the backlog, Mastrangelo said Eos would not disclose customer concentration but is open to providing more segmentation by use case, such as stand-alone storage, or customer type in the future.

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    Stephen Gengaro's questions to Eos Energy Enterprises (EOSE) leadership • Q3 2024

    Question

    Stephen Gengaro of Stifel asked for clarity on the timing of a major revenue inflection point in 2025 following the supply chain delays and questioned if LOI conversions are contingent on Eos proving its production capabilities.

    Answer

    CEO Joseph Mastrangelo projected a production normalization in December, leading to a higher but relatively flat Q1 2025, with a significant growth ramp beginning in Q2 and continuing through the second half of 2025. This ramp is tied to the automation of subassembly manufacturing. He clarified that LOI conversions depend on normal customer project milestones like financing and interconnection approvals, not on Eos proving its manufacturing capabilities.

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    Stephen Gengaro's questions to ProPetro Holding (PUMP) leadership

    Stephen Gengaro's questions to ProPetro Holding (PUMP) leadership • Q2 2025

    Question

    Stephen Gengaro asked how high-end service providers like ProPetro can capture fair value for the significant efficiency gains they deliver to customers.

    Answer

    CEO Sam Sledge responded that ProPetro is successfully capturing this value through innovative commercial models built into its contracts for next-generation equipment, particularly its Force electric fleets. He noted this success is a key reason the company is considering accelerating its investment in and deployment of more electric equipment.

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    Stephen Gengaro's questions to ProPetro Holding (PUMP) leadership • Q3 2024

    Question

    Stephen Gengaro asked how ProPetro will maintain its competitive differentiation as the market standardizes on electric and dual-fuel assets, and also inquired about the general activity outlook for 2025.

    Answer

    CEO Sam Sledge responded that differentiation will come from superior performance and people, not just equipment. He cited an e-fleet pumping nearly 700 hours in one month as an example of operational excellence that is difficult to replicate. For 2025, he agreed a flat market is a likely starting point but sees opportunities for ProPetro to gain share. CFO David Schorlemer added that ProPetro is now a proven leader in electric frac, which will be a key differentiator going forward.

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    Stephen Gengaro's questions to NOV (NOV) leadership

    Stephen Gengaro's questions to NOV (NOV) leadership • Q2 2025

    Question

    Stephen Gengaro of Stifel Financial Corp. inquired about the key macro indicators management is monitoring to signal a market turnaround and how the current cycle compares to previous ones. He also requested an update on free cash flow generation, the outlook for working capital, and normalized capital expenditure levels.

    Answer

    Clay Williams, Chairman & CEO, explained that customer urgency has diminished due to commodity price pressure and OPEC+ actions, but he anticipates a recovery in 2026 as offshore drillers prepare for new contracts. Rodney Reed, SVP & CFO, addressed the cash flow question, highlighting strong recent performance and guiding for full-year working capital as a percentage of sales to be between 27-29%. This would result in an EBITDA to free cash flow conversion of over 50%.

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    Stephen Gengaro's questions to NOV (NOV) leadership • Q1 2025

    Question

    Stephen Gengaro of Stifel asked about the drivers for the expected Q2 margin improvement in the Energy Products and Services segment and questioned how NOV makes long-term investment decisions to mitigate tariffs amid political uncertainty.

    Answer

    CFO Rodney Reed attributed the expected Q2 margin performance in Energy Products and Services to sales mix shifts. President and COO Jose Bayardo and CEO Clay Williams explained that tariff mitigation strategy relies on being nimble and cautious, leveraging NOV's diverse global manufacturing footprint and experienced supply chain team to maintain flexibility.

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    Stephen Gengaro's questions to NOV (NOV) leadership • Q3 2024

    Question

    Stephen Gengaro of Stifel inquired about the outlook for working capital improvement in 2025 and requested an update on the progress of the recently acquired Artificial Lift business.

    Answer

    SVP and CFO Jose Bayardo detailed the plan to improve working capital efficiency, targeting a reduction from 31.1% of revenue towards 27.5%, driven by better contract terms in the backlog. Chairman, President and CEO Clay Williams added that the Artificial Lift business is progressing well despite some near-term market headwinds and presents future opportunities for digital integration.

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    Stephen Gengaro's questions to Liberty Energy (LBRT) leadership

    Stephen Gengaro's questions to Liberty Energy (LBRT) leadership • Q2 2025

    Question

    Stephen Gengaro of Stifel Financial Corp. asked about the supply chain for Liberty's power generation business, the potential timeline for contracting new assets, and the long-term strategic role of the OCLO partnership with small modular reactors (SMRs).

    Answer

    CEO Ron Gusek stated that Liberty could more than double its 2026 power generation order book due to available supply chain capacity. He clarified that while larger projects target 2027 deployment, smaller sites will begin deploying assets this fall for 2026 generation. Gusek described the OCLO alliance as a long-term partnership, where natural gas provides crucial flexible power to complement nuclear baseload, manage variable loads from data centers, and capitalize on grid pricing opportunities.

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    Stephen Gengaro's questions to Liberty Energy (LBRT) leadership • Q1 2025

    Question

    Stephen Gengaro asked about the current "flight to quality" for high-demand assets, questioning how pricing discussions are holding up compared to past cycles and whether increased equipment longevity could mitigate rising raw material costs for maintenance CapEx.

    Answer

    CEO Ron Gusek stated that pricing has stabilized since the modest resets during the recent RFP season, with new inquiries being accommodated at current rates. CFO Michael Stock added that they do not expect significant changes in maintenance CapEx pricing due to mitigation strategies and confirmed that improved equipment longevity helps offset potential cost pressures.

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    Stephen Gengaro's questions to Liberty Energy (LBRT) leadership • Q4 2024

    Question

    Stephen Gengaro of Stifel inquired about the current state of frac pricing compared to a year ago and how Liberty balances the use of its power generation assets between its own frac operations and external, non-oilfield markets.

    Answer

    CEO Ron Gusek and CFO Michael Stock acknowledged that frac pricing has softened from its mid-2022 peak and feels to be at a cyclical trough, particularly for conventional Tier 2 fleets. However, they noted pricing for next-generation assets like the digi platform remains resilient. They explained that providing power for their own frac fleets is a strategic necessity to ensure service quality and efficiency, and their balanced portfolio of electric and direct-drive fleets provides operational flexibility.

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    Stephen Gengaro's questions to Liberty Energy (LBRT) leadership • Q3 2024

    Question

    Stephen Gengaro inquired about the contract structures for dedicated fleets, asking how pricing rolls over and if material deterioration is expected. He also asked about the end markets for Liberty Power Innovations (LPI) versus the company's SMR investment in Oklo, particularly in serving power demand from data centers.

    Answer

    CFO Michael Stock explained that dedicated fleet contracts vary, with some having annual, semi-annual, or quarterly adjustments, often with caps on price movements. While current rebidding for 2025 is facing pressure, he emphasized the stability of long-term partnerships. Regarding power generation, Stock clarified that Oklo's SMRs target fixed, long-term power needs, whereas LPI's mobile natural gas assets offer flexibility for shorter-term or bridge power solutions, serving different but sometimes overlapping markets.

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    Stephen Gengaro's questions to PATTERSON UTI ENERGY (PTEN) leadership

    Stephen Gengaro's questions to PATTERSON UTI ENERGY (PTEN) leadership • Q2 2025

    Question

    Stephen Gengaro of Stifel Financial Corp. asked for perspective on when the drilling rig count might bottom out. He also inquired about the current pricing dynamics for low-emission, natural gas-burning completion fleets and whether they are maintaining a premium over older assets.

    Answer

    President & CEO William Hendricks expressed hesitation in calling a bottom but suggested the rig count could decline to the mid-90s in Q3 and potentially stabilize in Q4. On completions pricing, he confirmed that the Emerald fleet, which runs on 100% natural gas, continues to command premium pricing and is not being pulled down by competition from lower-tier equipment, justifying continued investment in the technology.

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    Stephen Gengaro's questions to PATTERSON UTI ENERGY (PTEN) leadership • Q1 2025

    Question

    Stephen Gengaro asked about the price difference between rolling legacy drilling contracts and the spot market, the balance between share buybacks and balance sheet strength in a potential downturn, and the rationale for ceasing disclosure of certain drilling metrics.

    Answer

    CEO William Hendricks estimated the pricing adjustment on rolling legacy contracts is 'less than 10%.' CFO C. Smith explained that capital allocation would prioritize balance sheet strength in times of uncertainty but could be more constructive with better visibility. Both executives justified the change in reporting by stating that as the business becomes more integrated, legacy metrics like day rates no longer reflect the full value of their performance-based offering and that the change aligns them with peers.

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    Stephen Gengaro's questions to PATTERSON UTI ENERGY (PTEN) leadership • Q3 2024

    Question

    Stephen Gengaro inquired about the medium-term supply/demand outlook for pressure pumping, the expected attrition rate for older equipment, and the current status of wellsite service integration.

    Answer

    CEO William Hendricks explained that Patterson-UTI is retiring 400,000 horsepower of older Tier 2 equipment and expects the market to tighten in 2025 due to low reinvestment in older assets, natural attrition, and higher horsepower needs per fleet. CFO C. Smith added that high utilization should accelerate attrition. Hendricks also confirmed that the integration of NexTier's services onto legacy Patterson-UTI fleets is a steady, ongoing process with further upside.

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    Stephen Gengaro's questions to Solaris Energy Infrastructure (SEI) leadership

    Stephen Gengaro's questions to Solaris Energy Infrastructure (SEI) leadership • Q2 2025

    Question

    Stephen Gengaro asked for more detail on the 600 megawatts of operating capacity, specifically the mix between owned assets and third-party rentals, and how the EBITDA profile evolves as new owned equipment comes online.

    Answer

    CFO & President Kyle Ramachandran explained that Q2 capacity was supplemented with third-party rentals to meet strong customer demand. He noted that as Solaris's new, higher-margin owned assets are delivered through the second half of the year, these rentals will be phased out, leading to an expansion of EBITDA per megawatt. He reiterated that owned assets target three- to four-year paybacks.

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    Stephen Gengaro's questions to HALLIBURTON (HAL) leadership

    Stephen Gengaro's questions to HALLIBURTON (HAL) leadership • Q2 2025

    Question

    Stephen Gengaro from Stifel Financial Corp. sought to confirm that guidance implies a double-digit revenue decline for the C&P segment in Q4. He also asked about the pricing strategy for U.S. pressure pumping in a soft 2026 market and whether industry-wide fleet attrition is accelerating.

    Answer

    Chairman, President & CEO Jeff Miller confirmed the implied Q4 C&P revenue decline was 'about right.' On pricing, he reiterated that the strategy is based on value creation and that Halliburton will refuse work that does not provide economic returns. He also stated that he does expect industry fleet attrition to accelerate, noting that equipment wears out faster in gas plays, which reinforces their disciplined approach to pricing and deployment.

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    Stephen Gengaro's questions to HALLIBURTON (HAL) leadership • Q2 2025

    Question

    Stephen Gengaro from Stifel Financial Corp. sought confirmation on the implied double-digit Q4 revenue decline for the C&P segment. He also asked about the pricing strategy for U.S. pressure pumping heading into 2026 and whether industry-wide fleet attrition is accelerating.

    Answer

    Chairman, President & CEO Jeff Miller confirmed the Q4 C&P revenue estimate was 'about right' and reiterated a value-based pricing strategy, emphasizing a willingness to decline uneconomic work. He also stated that he expects industry fleet attrition to accelerate in the current market, particularly as higher-pressure gas fracking is harder on equipment, which validates Halliburton's disciplined pricing approach.

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    Stephen Gengaro's questions to HALLIBURTON (HAL) leadership • Q1 2025

    Question

    Stephen Gengaro asked about the current pricing environment in the pressure pumping business and how long-term e-fleet contracts are repriced. He also questioned whether the power generation business via VoltaGrid is a more commoditized service, which would be a departure from Halliburton's strategy.

    Answer

    CEO Jeffrey Miller stated that pressure pumping contracts continue to be extended at prices reflecting the value created, and the business is more resilient due to its strategy of focusing on returns and technology. Regarding VoltaGrid, Miller acknowledged the concern about commoditization and said that before making any larger strategic moves, he must be 'crystal clear' on how a sustainable competitive advantage can be maintained, similar to the approach taken with their differentiated fracturing business.

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    Stephen Gengaro's questions to HALLIBURTON (HAL) leadership • Q4 2024

    Question

    Stephen Gengaro asked about the risk of rising power costs for e-fleets if power generation is diverted from the oilfield, and how this might impact the business. He also inquired about customer preference for dual-fuel versus electric frac fleets, referencing a research report, and how this aligns with Halliburton's asset mix and strategy.

    Answer

    Chairman, President and CEO Jeffrey Miller stated he is not concerned about power availability or price due to the company's strategic relationship with VoltaGrid, which protects them from market tightness. Regarding fleet preference, Miller expressed high confidence in the demand for Halliburton's electric solution, citing continued deliveries scheduled for 2025 and 2026, contract extensions, and the increasing importance of the entire technology platform, including Auto Frac and Sensori.

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    Stephen Gengaro's questions to TENARIS (TS) leadership

    Stephen Gengaro's questions to TENARIS (TS) leadership • Q1 2025

    Question

    Stephen Gengaro inquired about the balance between rising raw material costs and pricing in the U.S. amidst potentially lower activity, and asked about the timing for any potential price reversals to appear in financial results given the Rig Direct model.

    Answer

    Chairman and CEO Paolo Rocca stated that the primary concern is the overall level of economic activity, not raw material costs, which he believes the company can manage due to its global footprint and differentiated products. U.S. President Guillermo Moreno added that due to the inertia in their long-term contract formulas, any market price reductions would likely not impact the P&L until the fourth quarter at the earliest.

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    Stephen Gengaro's questions to TETRA TECHNOLOGIES (TTI) leadership

    Stephen Gengaro's questions to TETRA TECHNOLOGIES (TTI) leadership • Q1 2025

    Question

    Stephen Gengaro of Stifel questioned the sustainability of the company's $50M+ free cash flow target, the key market drivers for its water desalination technology, and whether the margin upside in the Water & Flowback segment is a near-term or long-term expectation.

    Answer

    CFO Elijio V. Serrano expressed confidence in the free cash flow target, supported by disciplined CapEx and working capital management. CEO Brady Murphy identified the primary drivers for desalination as both the physical limitation of disposal well capacity in the Permian and the growing industrial demand for water. Serrano clarified that while they are taking actions to improve Water & Flowback margins, second-half performance will be partially market-dependent.

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    Stephen Gengaro's questions to TETRA TECHNOLOGIES (TTI) leadership • Q4 2024

    Question

    Stephen Gengaro asked if CS Neptune work could become a more consistent contributor rather than episodic, inquired about the company's long-term structure in 2-3 years, and sought clarity on the revenue recognition timing for shipments to Eos.

    Answer

    CEO Brady Murphy affirmed the expectation for CS Neptune projects to occur at a faster, more consistent cadence, citing a recovering pipeline and expansion into new markets. He outlined a future structure where the Industrial Chemicals business becomes a larger portion of the company, alongside a core completion fluids business and a water business that morphs into desalination. CFO Elijio Serrano clarified that revenue from Eos shipments is recognized upon leaving TETRA's facility, with a short lag before use.

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    Stephen Gengaro's questions to TETRA TECHNOLOGIES (TTI) leadership • Q3 2024

    Question

    Stephen Gengaro asked about TETRA's confidence in securing additional CS Neptune deepwater projects in 2025 and the growth outlook for the Water & Flowback business amid flat U.S. activity.

    Answer

    CEO Brady Murphy expressed cautious optimism about the CS Neptune pipeline, noting that while projects are advancing, the timing is dependent on customer drilling schedules. He highlighted that Neptune's unique market position is a key advantage. For the Water & Flowback segment, Murphy stated the 2025 focus is on margin enhancement through automation technology rather than top-line growth, anticipating flattish activity but improved profitability.

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    Stephen Gengaro's questions to Civeo (CVEO) leadership

    Stephen Gengaro's questions to Civeo (CVEO) leadership • Q1 2025

    Question

    Stephen Gengaro of Stifel Financial Corp. asked about the rationale behind the new capital allocation strategy, the benefits of a new Canadian joint venture, potential LNG opportunities, the quarterly cadence of revised guidance, the impact of commodity prices on turnaround activity, and the reasons for the lower 2025 free cash flow guidance compared to historical averages.

    Answer

    CEO Bradley Dodson explained the shift to share repurchases was driven by shareholder feedback and the belief it offers better value than the dividend, which wasn't being recognized by the market. He detailed how the new First Nations JV is critical for bidding on new work in Canada and outlined three key LNG projects Civeo is monitoring. Dodson also confirmed the Q2/Q3 seasonality for EBITDA remains intact. CFO Collin Gerry added that customer turnaround schedules are planned years in advance and are not typically influenced by short-term commodity price fluctuations. Both executives addressed the free cash flow guidance, attributing the 2025 dip to new cash tax status in Australia, the wind-down of major LNG projects, and a one-time deferred tax payment, expressing optimism for a rebound in future years, especially with the pending Australian acquisition.

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    Stephen Gengaro's questions to Civeo (CVEO) leadership • Q4 2024

    Question

    Stephen Gengaro of Stifel asked for clarification on the new asset-light vs. asset-intensive revenue disclosure, the expected seasonality for 2025, the visibility of the Canadian revenue stream, and the company's M&A strategy following the recent Australian acquisition.

    Answer

    President and CEO Bradley Dodson confirmed that the asset-light segment includes all hospitality services, even at owned locations, and is the primary growth area. He affirmed that the historical 60-65% EBITDA seasonality in Q2/Q3 should continue. For Canada, he noted that turnaround activity comprises 25-30% of annual room nights. Regarding M&A, Dodson stated Civeo seeks additive locations in Australia and aims to grow integrated services in both Australia and Canada, with a focus on diversifying the Canadian business geographically and by end market.

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    Stephen Gengaro's questions to Civeo (CVEO) leadership • Q3 2024

    Question

    Stephen Gengaro of Stifel inquired about Civeo's capital allocation strategy, specifically regarding M&A, the visibility of the Canadian business for 2025, and the expected trajectory for Canadian segment margins.

    Answer

    President and CEO Bradley Dodson outlined a multi-faceted growth strategy, including expanding core operations in Western Canada and Australia, geographic expansion into Eastern Canada and the U.S., and growing the Australian integrated services business. For 2025, Dodson expects Canadian billed rooms to be relatively flat, noting that Civeo typically enters the year with 60% of these rooms contracted. Regarding 2025 margins, he suggested a potential upward bias but not a significant one, as the company must first rebuild its top line.

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    Stephen Gengaro's questions to SCHLUMBERGER LIMITED/NV (SLB) leadership

    Stephen Gengaro's questions to SCHLUMBERGER LIMITED/NV (SLB) leadership • Q1 2025

    Question

    Stephen Gengaro inquired about the resilience and margin profile of the Production Systems segment relative to other divisions. He also asked about the company's confidence in its full-year free cash flow generation and its commitment to shareholder returns amid macro uncertainty.

    Answer

    CEO Olivier Le Peuch expressed confidence in the Production Systems division's continued growth, citing its strong technology-driven market position and resilient long-cycle exposure. CFO Stephane Biguet affirmed a high degree of confidence in the company's ability to generate strong free cash flow for the year, noting that in a downturn, lower working capital requirements would provide a natural buffer. He stated that the commitment to return a minimum of $4 billion to shareholders in 2025 is firm and 'not going to change.'

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    Stephen Gengaro's questions to SCHLUMBERGER LIMITED/NV (SLB) leadership • Q4 2024

    Question

    Stephen Gengaro asked for insight into the expected margin profiles of the different business segments in 2025. He also inquired about SLB's perspective on the activity decline in Mexico and the prospects for a future recovery.

    Answer

    CEO Olivier Le Peuch did not provide specific segment margin guidance but noted the mix shift, with growth in Production Systems and Reservoir Performance, would impact overall results. Regarding Mexico, he confirmed activity has declined and stated it is too early to predict a recovery due to political and leadership transitions. He stressed that growth in Argentina and Brazil will help offset the decline in Mexico.

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    Stephen Gengaro's questions to SCHLUMBERGER LIMITED/NV (SLB) leadership • Q3 2024

    Question

    Stephen Gengaro asked about the puts and takes for the fourth quarter relative to normal seasonality and inquired if there has been any change in optimism regarding synergies from the ChampionX acquisition.

    Answer

    CEO Olivier Le Peuch stated that for Q4, positive seasonality from year-end digital and product sales will be partially offset by budget exhaustion in U.S. land, resulting in 'muted' sequential growth. CFO Stephane Biguet added that the ChampionX integration planning has given them 'even more confidence' in the transaction and the previously stated synergy targets, which they are confirming.

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    Stephen Gengaro's questions to RPC (RES) leadership

    Stephen Gengaro's questions to RPC (RES) leadership • Q1 2025

    Question

    Stephen Gengaro of Stifel inquired about the current dynamics in the pressure pumping market, RPC's capital allocation priorities and M&A criteria following the Pintail acquisition, and sought clarification on Pintail's expected quarterly revenue.

    Answer

    President and CEO Ben Palmer described the pressure pumping market as a give-and-take between service companies and customers who are scrambling amidst macro uncertainty. For M&A, he stated RPC prioritizes accretive transactions that add to existing brands, increase exposure to large E&P customers, and generate strong free cash flow. He also clarified that Pintail's quarterly revenue run-rate is approximately $100 million, not $90 million.

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    Stephen Gengaro's questions to RPC (RES) leadership • Q4 2024

    Question

    Stephen Gengaro asked for the financial magnitude of the elevated Q4 insurance costs, the current mix of contract versus spot market work in pressure pumping, and the company's strategic view on investing in electric fleets (e-fleets).

    Answer

    CFO Michael Schmit quantified the insurance impact as a 'few million dollars' due to deductible resets. CEO Ben Palmer explained that while RPC has no long-term firm contracts, the business mix is improving with more 'semi-dedicated' customer agreements providing a multi-month view. Palmer also reiterated that RPC will not invest in e-fleets organically, preferring the flexibility of its Tier 4 dual-fuel assets and will continue to monitor the technology.

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    Stephen Gengaro's questions to RPC (RES) leadership • Q3 2024

    Question

    Stephen Gengaro of Stifel Financial Corp. questioned how RPC balances acquiring commoditized businesses for scale versus differentiated ones in its M&A strategy and asked for the company's outlook on frac pricing for 2025.

    Answer

    President and CEO Ben Palmer responded that the company's primary focus is on acquiring 'very good businesses' with strong cultures, rather than pursuing scale through commoditized assets just for the sake of getting bigger. Regarding 2025 pricing, Palmer stated that RPC is not expecting or counting on a significant improvement and is instead focused on maintaining internal discipline and managing its cost structure prudently.

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    Stephen Gengaro's questions to Core Laboratories Inc. /DE/ (CLB) leadership

    Stephen Gengaro's questions to Core Laboratories Inc. /DE/ (CLB) leadership • Q1 2025

    Question

    Stephen Gengaro asked for clarification on the Production Enhancement segment's Q2 margin guidance, which is projected to decline despite revenue growth, and inquired about the margin outlook for the second half of 2025.

    Answer

    CFO Chris Hill explained the Q2 margin dip is due to a sales mix shift; high-margin diagnostic services, which were strong in Q1 from delayed Gulf of Mexico projects, are expected to normalize, while lower-margin product sales increase. Executive Lawrence Bruno added that Q1's sanction-related headwinds are likely over and that he anticipates margin growth in Q3 and Q4. Chris Hill also noted that cost reduction plans implemented through Q3 should further support margin improvement.

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    Stephen Gengaro's questions to Core Laboratories Inc. /DE/ (CLB) leadership • Q4 2024

    Question

    Stephen Gengaro of Stifel inquired about the competitive and pricing environment for Core Lab's Production Enhancement segment in the U.S. and the primary growth drivers for the international Reservoir Description business in 2025.

    Answer

    Executive Lawrence Bruno explained that the Production Enhancement market is crowded, leading to stable but not optimal pricing, with the company focusing on technology differentiation. For Reservoir Description, Bruno noted that despite Q1 headwinds from seasonality and new sanctions, the full-year outlook remains positive with mid-single-digit growth expected, driven by strong international projects, particularly in the Middle East.

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    Stephen Gengaro's questions to Core Laboratories Inc. /DE/ (CLB) leadership • Q3 2024

    Question

    Stephen Gengaro from Stifel asked for Core Lab's outlook on international growth in 2025 for its Reservoir Description segment and requested an update on the competitive landscape of the U.S. perforating business.

    Answer

    Executive Lawrence Bruno stated that Core Lab expects to perform well, potentially better than peers, in the international market, driven by lucrative, data-intensive offshore projects that benefit the Reservoir Description segment. He described the U.S. perforating market as a 'crowded dog park' but affirmed Core's commitment, noting their diagnostic services benefit from client experimentation. SVP Gwendolyn Schreffler added that U.S. completion activity would see a seasonal Q4 dip before returning to similar year-over-year levels in 2025.

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    Stephen Gengaro's questions to Baker Hughes (BKR) leadership

    Stephen Gengaro's questions to Baker Hughes (BKR) leadership • Q1 2025

    Question

    Stephen Gengaro from Stifel inquired about the scale of the data center market opportunity for Baker Hughes and how potential macroeconomic headwinds might affect the IET segment's order flow for the remainder of 2025.

    Answer

    CEO Lorenzo Simonelli stated that the full-year IET order guidance of $12.5 billion to $14.5 billion remains intact, supported by strong LNG momentum and record Gas Tech Services upgrades. He highlighted data centers as a key industrial growth area, projecting at least $1.5 billion in equipment orders over the next three years. Simonelli emphasized that projects in LNG, gas infrastructure, and data centers are not seeing customer pullbacks.

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    Stephen Gengaro's questions to Baker Hughes (BKR) leadership • Q4 2024

    Question

    Stephen Gengaro asked for a breakdown of the key drivers and moving pieces that will enable Baker Hughes to achieve its 20% margin targets for the OFSE segment this year and the IET segment by 2026.

    Answer

    CFO Nancy Buese outlined the path to 20% margins for both segments. For OFSE, she highlighted self-help initiatives and a resilient, production-weighted portfolio. For IET, she pointed to volume leverage, higher-priced backlog, new digital offerings, and moderating R&D costs. Chairman and CEO Lorenzo Simonelli added that internal simplification and process enhancements are major contributors to these gains.

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    Stephen Gengaro's questions to Baker Hughes (BKR) leadership • Q3 2024

    Question

    Stephen Gengaro of Stifel noted that Gas Technology Services (GTS) revenue has historically outpaced installed base growth and asked how revenue growth will compare to the projected 20% installed base increase through 2030, and what factors would drive this performance.

    Answer

    Lorenzo Simonelli, Chairman and CEO, confirmed that GTS revenue growth is expected to continue outpacing the growth of the installed base. He identified four primary drivers: 1) higher pricing from contractual escalators and market conditions, 2) a favorable mix shift towards LNG, which has higher revenue per unit, 3) the adoption of advanced digital service solutions, and 4) future opportunities for equipment upgrades focused on efficiency and emissions.

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    Stephen Gengaro's questions to PFHC leadership

    Stephen Gengaro's questions to PFHC leadership • Q4 2024

    Question

    Stephen Gengaro of Stifel asked for ProFrac's perspective on the 2025 frac supply-demand balance, including equipment attrition, the magnitude of pricing changes over the past year, and potential risks of rising electricity costs for e-fleets due to competition from other industries like data centers.

    Answer

    Executive Chairman Matthew Wilks stated that high utilization is accelerating equipment attrition, tightening the market for high-spec horsepower. He reiterated ProFrac's focus on long-term partnerships over aggressive short-term price hikes. CFO Austin Harbour added that a natural gas market recovery could make this supply tightness more acute. Regarding electricity costs, CEO Ladd Wilks explained that ProFrac will prioritize supporting its own fleets while allocating resources to the best-return opportunities, using its in-house demand as a proving ground.

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    Stephen Gengaro's questions to PFHC leadership • Q4 2024

    Question

    Stephen Gengaro inquired about ProFrac's perspective on the 2025 frac supply-demand balance, including the attrition rate of older assets. He also asked for a sense of the magnitude of pricing changes over the last 12 months and whether rising power demand from other industries like data centers poses a cost risk for e-frac operations.

    Answer

    Executive Chairman Matt Wilks stated that high utilization is accelerating equipment attrition, tightening the market for high-spec horsepower, but reiterated a strategy focused on long-term partnerships over aggressive pricing. CFO Austin Harbour added that a gas market recovery would make supply even tighter. CEO Ladd Wilks addressed the power cost question, explaining that their vertical integration and in-house demand provide a strategic advantage, and they will allocate capital to the best return opportunities while honoring customer commitments.

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    Stephen Gengaro's questions to PFHC leadership • Q3 2024

    Question

    Stephen Gengaro of Stifel asked for clarification on the active fleet count, the balance between pricing and deployments, and the expected Q4 top-line drop and decremental margins. He also questioned the potential impact of Dune Express on the proppant business and sought more detail on the company's power generation strategy.

    Answer

    Executive Chairman Matt Wilks confirmed the estimated fleet count was not materially off and stated that Q4 seasonality would be consistent with prior years, with the suggested decremental margin being 'in the ballpark.' CEO Ladd Wilks asserted that Dune Express would not have a material impact, seeing upside in their own Alpine proppant business. Regarding power generation, Matt Wilks explained the initial focus is on de-risking the business by serving their own e-fleets and operator customers.

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    Stephen Gengaro's questions to PFHC leadership • Q3 2024

    Question

    Stephen Gengaro asked for clarification on the active fleet count, the balance between pricing and fleet deployments, and the expected Q4 top-line drop and associated decrementals. He also questioned the potential impact of Dune Express on the proppant business and sought more detail on the company's power generation strategy.

    Answer

    Executive Chairman Matthew Wilks acknowledged the analyst's fleet count estimate was not materially off and stated the focus is on keeping current fleets working efficiently, emphasizing that the next fleet deployed will be their best due to a reorganized asset management program. He suggested Q4 seasonality would be consistent with peers. CEO Ladd Wilks asserted that Dune Express would not have a material impact and that the power generation business is currently focused on derisking by satisfying internal e-fleet needs.

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    Stephen Gengaro's questions to PFHC leadership • Q3 2024

    Question

    Stephen Gengaro asked for clarification on the active fleet count, the balance between pricing and deployments, and whether a 10% Q4 revenue decline with 30% decrementals was a reasonable expectation. He also questioned the potential impact of Dune Express on the proppant business and sought more detail on the power generation strategy.

    Answer

    Executive Chairman Matt Wilks indicated the analyst's fleet count estimate was not materially off and confirmed the Q4 outlook was in the 'realm of possible outcomes.' He stressed that industry equipment attrition makes supply tighter than perceived. CEO Ladd Wilks stated Dune Express would not have a material impact on their competitive proppant business. Regarding power generation, Matt Wilks explained the initial focus is de-risking the venture by serving internal e-fleet needs before exploring broader market opportunities.

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    Stephen Gengaro's questions to ProFrac Holding (ACDC) leadership

    Stephen Gengaro's questions to ProFrac Holding (ACDC) leadership • Q4 2024

    Question

    Stephen Gengaro asked for management's perspective on the frac supply and demand balance for 2025, including the rate of attrition for older industry assets. He also sought to understand the magnitude of pricing changes over the past year and questioned if rising power demand from other sectors, like data centers, could increase electricity costs for the oilfield.

    Answer

    Executive Chairman Matt Wilks described the current frac market as 'pretty tight,' noting that high utilization is accelerating the attrition of legacy equipment, which he believes will become a major theme in 2025. He reiterated a focus on long-term partnerships over maximizing short-term pricing. CFO Austin Harbour added that a gas market recovery would make supply even more acute. Regarding power costs, CEO Ladd Wilks characterized it as a 'high-class problem,' stating their vertically integrated model prioritizes supporting their own fleets while they evaluate the best allocation of resources for sustainable, full-cycle returns.

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    Stephen Gengaro's questions to Wallbox (WBX) leadership

    Stephen Gengaro's questions to Wallbox (WBX) leadership • Q4 2024

    Question

    Stephen Gengaro of Stifel asked about the future evolution of Wallbox's product mix in the U.S. market, particularly for fast charging, and the company's projected timeline and revenue requirements to achieve EBITDA and free cash flow breakeven.

    Answer

    CEO Enric Asuncion explained that the U.S. product mix is expected to shift towards fast charging, driven by the Supernova UL launch and upcoming certifications, with a long-term goal of a 50/50 split between fast charging and home/business chargers. Regarding profitability, he stated that while performance depends on the broader EV market, the company's cost-saving measures should allow it to reach EBITDA breakeven at a quarterly revenue level of approximately EUR 40 million to EUR 45 million once the organizational rightsizing is fully implemented.

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    Stephen Gengaro's questions to GENERAC HOLDINGS (GNRC) leadership

    Stephen Gengaro's questions to GENERAC HOLDINGS (GNRC) leadership • Q3 2024

    Question

    Stephen Gengaro of Stifel asked for a breakdown of the drivers behind the company's strong gross margin improvement, specifically the contribution from sales mix versus cost savings and efficiencies.

    Answer

    CFO York Ragen detailed that of the roughly 500 basis point year-over-year gross margin improvement, 40-50% was attributable to favorable sales mix from higher home standby generator shipments. The remaining 50-60% came from improved price-cost dynamics, including lower input and logistics costs and better production efficiencies. He noted that Q3's 40.2% margin was the highest since 2010 and that this level is expected to continue into Q4.

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    Stephen Gengaro's questions to Smart Sand (SND) leadership

    Stephen Gengaro's questions to Smart Sand (SND) leadership • Q2 2024

    Question

    Stephen Gengaro of Stifel Financial Corp. asked for quantification of sustainable cost savings, inquired about current spot market pricing for frac sand versus contracted rates, and questioned the potential impact of a Canadian rail strike.

    Answer

    Chief Financial Officer Lee Beckelman estimated that operational initiatives could reduce production costs by $1 to $2 per ton at high utilization. Chief Operating Officer William Young added that hydro mining mitigates risks from diesel price spikes. On pricing, executives noted a relatively stable environment, particularly in the mid-$20s for Northern White sand. Regarding the potential Canadian rail strike, William Young acknowledged it could affect the growing Canadian market but stated the bulk of the company's volume in the Lower 48 would be unaffected.

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    Stephen Gengaro's questions to Smart Sand (SND) leadership • Q1 2024

    Question

    Stephen Gengaro from Stifel asked for clarification on the components of SmartSystems revenue, the supply/demand and pricing dynamics in the U.S. sand market, whether there is growing interest for Northern White sand in Texas, and the current size and growth outlook for the industrial sand business.

    Answer

    CFO Lee Beckelman confirmed that the SmartSystems revenue line item is purely for the wellsite storage business. COO John Young stated that the Northern White market is in relative supply-demand balance, resulting in stable pricing, but noted potential for price increases as new markets in Canada and Ohio grow. Young also confirmed increased inquiries for Northern White sand from the Permian basin due to well performance concerns, though it remains a small portion of that market. Beckelman concluded that the industrial business is currently about 5% of total volumes, with a goal to grow it to 10% or more over the next 2-3 years.

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    Stephen Gengaro's questions to DMC Global (BOOM) leadership

    Stephen Gengaro's questions to DMC Global (BOOM) leadership • Q3 2023

    Question

    Stephen Gengaro from Stifel inquired about the root causes of recent leadership turnover, questioning the balance between market pressures and internal performance issues. He also sought clarity on the Q4 guidance, asking for a breakdown of expected performance across the DynaEnergetics, Arcadia, and NobelClad segments.

    Answer

    Executive Chairman James O'Leary acknowledged that both market conditions and leadership performance contributed to the changes. He cited the "frac holiday" impacting DynaEnergetics and noted that while the market for Arcadia is challenging, the company's underperformance and the $142 million goodwill write-off reflect on leadership "from the top down." He confirmed that Arcadia is the "wildcard" and a disproportionate driver of the weak Q4 outlook due to high-end residential market softness and factory absorption issues. CEO Michael Kuta added that DynaEnergetics' performance is generally following the market decline.

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