Tom Curran

Tom Curran, a Senior Equity Analyst from Stifel, inquired about H&P's involvement in foreign shale plays by leading U.S. E&Ps (excluding super majors), specifically referencing companies like Continental in Turkey/Argentina or EOG in Bahrain, and the broader strategy beyond Australia.

Answer

President Trey Adams affirmed H&P's long history of working with IOCs in Argentina and confirmed active conversations across the Eastern Hemisphere with both IOCs and super majors. He emphasized the strong interest in transferring U.S. shale unconventional expertise to these geographies and stated that H&P is at the nexus of these discussions, well-positioned to deliver value as programs mature from exploration to firm footing.

Tom Curran with Seaport Research Partners asked about H&P's involvement and strategy in foreign shale plays with leading U.S. E&Ps (excluding majors), specifically referencing companies like Continental and EOG, beyond its existing partnership in Australia.

Answer

President Trey Adams affirmed H&P's long history of working with IOCs in Argentina and its active engagement in conversations with key IOCs and super majors across the Eastern Hemisphere, including at ADIPEC. He emphasized the strong interest in transferring U.S. shale expertise to these geographies and H&P's well-positioned role as a partner as these programs mature from exploration phases.

Tom Curran asked about the deployment timeline for the initial 100 MW capacity in Q4, specifically the 6-month equipment delivery-to-revenue estimate and potential for shortening it. He also inquired about Liberty's view on sodium ion technology for long-duration energy storage, given the Natron situation.

Answer

CFO Michael Stock clarified deployment timelines: generally 6 months for packaged resets to electron generation, and 9 months for larger resets/turbines in power halls, noting that timelines vary by project. CEO Ron Gusek expressed continued appreciation for sodium ion technology's C rating, cycle count, and lifespan, despite Natron's scaling issues. He explained that lithium-based technologies are currently preferred for digiPrime/Digi frac due to weight/size considerations, but Liberty will continue to monitor other technologies for future opportunities.

Tom Curran of Seaport Global Holdings LLC asked which specific completion services and diagnostic tools are most effective in gaining market share and defending pricing. He also inquired about the Altitude X partnership, asking about contract structure and similarities to the legacy PIP microgrid project.

Answer

CEO Ron Gusek explained that for large customers, next-gen technology and software drive efficiency gains, while smaller operators lean heavily on Liberty's engineering and frac design expertise. CFO Michael Stock detailed that the Altitude X project will use the same modular, factory-tested 'LEGO block' approach as the PIP microgrid to reduce cost and time, and confirmed the contract structure will allow for selling excess power into the wholesale market.

Tom Curran of Seaport Research Partners asked for more color on the Energy Industrial segment, specifically the mix between new projects and maintenance for Subsea and LNG, the nature of any demand disappointments, and typical order lead times.

Answer

President and CEO Don Young clarified that Subsea is entirely new project work and its recent slowdown was the primary surprise. LNG is a mix of maintenance and new projects. He detailed lead times, stating Subsea orders are typically delivered within one to two quarters, while LNG projects have longer lead times of two to four quarters.