Core Viewpoint - Mohammed Hadi Al Rasheed and Partners Co. has signed a significant contract with National Energy Services Reunited Corp. (NESR) for the supply of high-quality silica sand, essential for non-conventional gas extraction at the Jafurah field [2][5]. Group 1: Contract Details - The value of the five-year supply agreement exceeds SAR 1.1 billion [3]. - The financial impact of the contract is expected to positively influence the company's revenues starting from Q1 2026 and continuing throughout the contract duration [4]. Group 2: Strategic Alignment - The contract aligns with the company's strategic plan and supports its targeted growth and returns [7]. - NESR has recently secured a five-year project for non-conventional gas extraction services at the Jafurah field, indicating a broader operational context for the contract [5][6]. Group 3: Additional Information - There are no related parties involved in the deal, ensuring a straightforward contractual relationship [8].

Core Insights - The article highlights a landmark collaboration between National Energy Services Reunited Corp. (NESR) and the art community, showcasing how energy, art, and sustainability can intersect to promote environmental stewardship [1] Group 1: Company Initiatives - NESR has become the first oilfield services company to commission original artwork created using desalinated produced water recycled through its sustainability arm, Environmental & Decarbonization Applications (NEDA) [1] - The initiative titled "It Starts with Us" was unveiled during NESR's press night in Dubai, emphasizing the company's commitment to advancing environmental responsibility through innovation and transparency [1]

Company Overview - National Energy Services Reunited Corp. (NESR) is a leading provider of oilfield services with a strong presence in key energy-producing regions [5] - The company offers a comprehensive portfolio of services including hydraulic fracturing, coiled tubing, cementing, drilling, and evaluation services, as well as production assurance chemicals and water management solutions [8] - NESR generates revenue primarily through service contracts and equipment rentals for oil and gas companies operating in the Middle East, North Africa, and Asia Pacific regions [8] Financial Performance - As of September 30, NESR's market capitalization was $1.5 billion, with trailing twelve-month (TTM) revenue of $1.3 billion and net income of $70.2 million [4] - In the third quarter, NESR's net income rose 16.7% sequentially to $17.7 million, while adjusted EBITDA was $64 million with a 21.7% margin [11] - Despite a year-over-year decline in revenue, NESR has maintained profitability and management expects stronger operating cash flow in the fourth quarter as collections improve [11] Investment Insights - GeoSphere Capital Management increased its stake in NESR by 481,228 shares during the third quarter, bringing its total position to nearly 1.5 million shares valued at $15.3 million, making it the fund's largest holding [2][3][10] - NESR shares have appreciated 67% over the past year, significantly outperforming the S&P 500, which increased nearly 13% in the same period [3] - The company has highlighted major contract wins, including the significant Saudi Jafurah integrated frac award, which could enhance its growth profile over the coming years [9]

Core Insights - National Energy Services Reunited Corp. (NESR) has signed a significant unconventional frac contract during the Saudi-US Investment Forum 2025 [1] - The signing event was part of a delegation visit by His Royal Highness to President Trump in Washington D.C. [1] Company Overview - NESR is recognized as an international, industry-leading provider of integrated energy services specifically in the Middle East and North Africa (MENA) region [1]

Financial Data and Key Metrics Changes - Overall third quarter revenue was $295.3 million, down 9.8% sequentially and 12.2% year-over-year [17] - Adjusted EBITDA for Q3 2025 was $64 million, representing a margin of 21.7%, consistent with Q2 2025 levels despite lower revenues [18] - Adjusted EPS for Q3 2025 was $0.16, including adjustments totaling $2.3 million [19] - Gross debt totaled $332.9 million, and net debt was $263.3 million, with a net debt-to-adjusted EBITDA ratio of 0.93 [20] Business Line Data and Key Metrics Changes - Revenue decline was primarily due to the transition between major contracts in Saudi Arabia, partially offset by growth in Kuwait, Qatar, and Iraq [17] - Year-over-year revenue decline was attributed to contract transitions and timing of product sales, with steady growth in Kuwait, Oman, Egypt, Algeria, Iraq, and Libya [18] Market Data and Key Metrics Changes - Positive activity inflection noted in Kuwait and Saudi Arabia, with increased activities across most operational countries [5] - The company is positioned to capitalize on geopolitical relationships and energy demand growth in the Gulf region [8] Company Strategy and Development Direction - The company has secured a multi-billion dollar contract for the Jafurah project, which is a cornerstone achievement for future growth [4] - NESR's countercyclical investment strategy allows it to capitalize on global market weaknesses, positioning the company for operational readiness [5][12] - The focus is on energy addition in all forms, including oil, renewables, and natural gas, aligning with regional AI ambitions [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a $2 billion revenue run rate by the end of 2026, supported by awarded contracts [72] - The outlook for NESR remains favorable, driven by consistent execution on major contracts and strategic investments [25] - Management emphasized the importance of maintaining operational discipline and financial health amid market volatility [24] Other Important Information - The company is in the process of refinancing its debt facility, expected to enhance financial flexibility [24] - NESR is focused on delivering profitable revenue growth, enhancing execution efficiency, and maintaining disciplined debt reduction [25] Q&A Session Summary Question: Can you respond to comments about pricing competitiveness for the Jafurah contract? - Management highlighted their deep understanding of the local ecosystem and cost control measures that allow them to maintain margins [31][32] Question: What is the roadmap for development at Jafurah? - Management indicated readiness to ramp up operations with multiple crews and a target of delivering over 1,000 stages per month [35][36] Question: What is the incremental EBITDA expected from the Jafurah project? - Management confirmed that the incremental EBITDA for 2026 is approximately $100 million, based on a $2 billion run rate [38] Question: Can you provide updates on NEDA projects and water initiatives? - Management stated that several pilot projects are underway, with results expected to be shared in future calls [67][68] Question: What is the confidence level in achieving the $2 billion exit run rate for 2026? - Management expressed a 99% confidence level in achieving the $2 billion run rate, supported by signed contracts and ongoing work [72][73]

Financial Data and Key Metrics Changes - Overall third quarter revenue was $295.3 million, down 9.8% sequentially and 12.2% year-over-year, primarily due to the transition between major contracts in Saudi Arabia [17][18] - Adjusted EBITDA for Q3 2025 was $64 million, representing a margin of 21.7%, consistent with Q2 2025 levels despite lower revenues [18] - Adjusted EPS for Q3 2025 was $0.16, including adjustments for certain charges and credits [19] - Gross debt totaled $332.9 million, and net debt was $263.3 million, with a net debt-to-Adjusted EBITDA ratio of 0.93 [20] Business Line Data and Key Metrics Changes - Revenue decline was partially offset by solid growth in Kuwait, Qatar, and Iraq, with steady growth also noted in Oman, Egypt, Algeria, and Libya [17][18] - The company is positioned as the largest frac company in the Middle East, with the Jafurah tender representing the largest single-service contract in sector history [9][11] Market Data and Key Metrics Changes - The company is experiencing positive activity inflection beyond Jafurah, with growth in Kuwait and the return of additional rigs in Saudi Arabia [5][27] - The geopolitical relationship between the U.S. and Gulf states is strong, positively impacting energy markets and foreign investment [8] Company Strategy and Development Direction - The company is focused on a countercyclical investment strategy, allowing it to capitalize on global weaknesses and position itself for growth [11][12] - NESR aims to maintain operational readiness and efficiency while investing during downturns, contrasting with traditional industry practices [12][14] - The company plans to exit 2025 with a revenue run rate of approximately $2 billion, supported by expanding contract bases and sustained execution momentum [22][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a $2 billion exit run rate for 2026, with a high level of visibility on contract awards and execution [72][73] - The outlook for NESR remains favorable, supported by consistent execution on major contract wins and strategic investments [25][26] Other Important Information - The company is in the process of refinancing its debt facility, expected to enhance financial flexibility [24] - NESR is committed to maintaining disciplined debt reduction and improving working capital efficiency [25] Q&A Session Summary Question: Can you respond to comments about pricing competitiveness for the Jafurah contract? - Management highlighted their deep understanding of the local ecosystem and cost control measures that allowed them to maintain margins while being competitive [31][32] Question: What is the roadmap for development at Jafurah? - Management indicated readiness to ramp up operations with multiple crews and equipment already in place, targeting significant increases in stages delivered [34][35] Question: What is the expected incremental EBITDA from Jafurah? - Management confirmed that the incremental EBITDA for 2026 is approximately $100 million, based on the projected revenue run rate [37][38] Question: Can you provide updates on NEDA projects and water initiatives? - Management stated that several pilot projects are underway, with results expected to be shared in future calls [66][68] Question: What is the confidence level in achieving the $2 billion exit run rate for 2026? - Management expressed a 99% confidence level in achieving the target, with contracts already awarded and work commenced [72][73]

Financial Data and Key Metrics Changes - Overall third quarter revenue was $295.3 million, down 9.8% sequentially and 12.2% year-over-year [16] - Adjusted EBITDA for Q3 2025 was $64 million, representing a margin of 21.7%, consistent with Q2 2025 levels despite lower revenues [17] - Adjusted EPS for Q3 2025 was $0.16, including adjustments totaling $2.3 million [18] - Gross debt totaled $332.9 million, and net debt was $263.3 million, with a net debt-to-adjusted EBITDA ratio of 0.93 [19] Business Line Data and Key Metrics Changes - Revenue decline was primarily due to the transition between major contracts in Saudi Arabia, partially offset by growth in Kuwait, Qatar, and Iraq [16][17] - Growth was noted in Kuwait, Oman, Egypt, Algeria, Iraq, and Libya, indicating a diversified performance across regions [17] Market Data and Key Metrics Changes - The company is experiencing a positive activity inflection in Kuwait and Saudi Arabia, with increased activities across most operational countries [5][6] - The Gulf Cooperation Council (GCC) is positioned as a leader in the AI revolution, which is expected to drive energy demand [6][7] Company Strategy and Development Direction - The company has secured a multi-billion dollar contract for the Jafurah project, which is a cornerstone achievement and part of a broader growth strategy [4][10] - NESR's countercyclical investment strategy allows it to capitalize on global market weaknesses, positioning the company for growth while others are cutting back [12][13] - The company aims to maintain operational readiness and efficiency while investing during downturns, which is expected to yield long-term benefits [14][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a $2 billion revenue run rate by the end of 2026, supported by awarded contracts and operational execution [20][72] - The outlook for 2026 and beyond remains positive, with expectations of continued growth driven by strategic investments and market opportunities [24][73] Other Important Information - The company is in the process of refinancing its debt facility, expected to enhance financial flexibility [23] - NESR is focused on maintaining disciplined debt reduction and improving working capital efficiency [24] Q&A Session Summary Question: Can you explain how NESR was able to price competitively for the Jafurah contract while maintaining margins? - Management highlighted their deep understanding of the local ecosystem and cost control measures that allowed them to maintain profitability [30][31] Question: What is the roadmap for development at Jafurah and expected activity levels? - Management indicated plans to ramp up to 1,500 stages per month by 2026, with flexibility to adjust based on client needs [34][35] Question: What is the expected incremental EBITDA from the Jafurah project? - Management confirmed an approximate incremental EBITDA of $100 million for 2026, based on current margins [38] Question: Can you provide updates on NEDA projects and water initiatives? - Management stated that several pilot projects are underway, with results expected to be shared in future calls [66][68] Question: What is the confidence level in achieving the $2 billion exit run rate for 2026? - Management expressed a 99% confidence level in achieving the $2 billion run rate, supported by signed contracts and ongoing work [72]

Core Insights - National Energy Services Reunited (NESR) reported quarterly earnings of $0.16 per share, exceeding the Zacks Consensus Estimate of $0.15 per share, but down from $0.31 per share a year ago, representing an earnings surprise of +6.67% [1] - The company achieved revenues of $295.32 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.40%, although this is a decline from year-ago revenues of $336.2 million [2] - NESR shares have increased approximately 45.4% year-to-date, significantly outperforming the S&P 500's gain of 16.5% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.25 on revenues of $359.72 million, and for the current fiscal year, it is $0.73 on revenues of $1.28 billion [7] - The estimate revisions trend for NESR was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Oil and Gas - Mechanical and Equipment industry, to which NESR belongs, is currently ranked in the top 10% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Core Insights - National Energy Services Reunited Corp. (NESR) reported a revenue of $295.3 million for the quarter ended September 30, 2025, reflecting a sequential decline of 9.8% and a year-over-year decline of 12.2% [1] - The net income for the same quarter was $17.7 million, which is an increase of 16.7% compared to the previous quarter but a decrease of 14.0% year-over-year [1] - Adjusted EBITDA for the quarter was $64.0 million, down 9.4% sequentially and 20.1% year-over-year [1] - Diluted Earnings per Share (EPS) increased to $0.18, up 15.6% from the previous quarter, but down 18.2% compared to the same quarter last year [1] Financial Performance - Revenue for the three months ended September 30, 2025: $295,315 thousand, down from $327,368 thousand in June 2025 and $336,205 thousand in September 2024 [1] - Net income for the quarter: $17,737 thousand, compared to $15,201 thousand in June 2025 and $20,618 thousand in September 2024 [1] - Adjusted net income (non-GAAP) was $15,434 thousand, a decrease of 23.3% sequentially and 46.6% year-over-year [1] - Adjusted EBITDA (non-GAAP) for the quarter was $63,957 thousand, down from $70,559 thousand in June 2025 and $80,035 thousand in September 2024 [1] - Diluted EPS for the quarter was $0.18, compared to $0.16 in June 2025 and $0.22 in September 2024 [1] - Adjusted Diluted EPS (non-GAAP) was $0.16, down 22.2% sequentially and 48.4% year-over-year [1] Cash Flow - Operating cash flow for the nine months ended September 30, 2025, was $125.7 million [1] - Free cash flow (non-GAAP) for the same period was $25.0 million [1]

Summary of National Energy Services Reunited (NESR) Conference Call Company Overview - **Company**: National Energy Services Reunited (NASDAQ: NESR) - **Founded**: 2017 as a SPAC - **Current Revenue Run Rate**: Approximately $1.3 billion, with a clear path to exceed $2 billion [2][5][160] Industry Insights - **Focus**: Oilfield Services (OFS) in the Middle East and North Africa (MENA) - **Market Position**: NESR is the largest national OFS company in the MENA region, following the big three international companies [5][11] Key Market Dynamics - **Middle East Oil Production**: National oil companies (NOCs) in the region are focused on long-term planning, with a shift towards gas and renewable energy [10][11] - **Growth Projections**: The Middle East is expected to see a year-on-year growth of 7-10% [20][24] - **Kuwait's Capacity**: Kuwait aims for a steady increase to 4 million barrels by 2035-2040, having recently surpassed 200 rigs [13][15] - **UAE's Aspirations**: The UAE is targeting 5 million barrels by 2027 and aims to stop gas imports by 2030 [15][16] Strategic Initiatives - **Local Value Addition**: NESR is positioned as a national champion, benefiting from local perception and compliance with in-country value programs [27][31] - **Investment in R&D**: NESR has established a research and development facility and is investing in local innovation ecosystems, such as the Ahmadi Innovation Valley in Kuwait [34][41] Technology and Service Delivery - **Technology Development**: NESR is focusing on proprietary technology in advanced drilling and decarbonization, with plans to commercialize new tools in the near future [52][53] - **Service Quality**: NESR aims to maintain high service quality, scoring top metrics in various service segments [58][60] Financial Outlook - **Revenue Growth**: NESR anticipates a growth rate of 30-40% year-on-year, significantly outpacing the overall market growth of 5% [102][104] - **Margin Maintenance**: The company aims to maintain profit margins in the range of 20-25% despite competitive pricing pressures [130][136] - **CapEx Plans**: NESR plans to modestly increase capital expenditures to around $120-150 million, leveraging favorable market conditions to acquire equipment at lower costs [151][154] Future Growth Opportunities - **Expansion Plans**: NESR is exploring opportunities in North Africa and Asia, with a focus on maintaining a strong presence in Libya, Algeria, and Egypt [161][162] - **Cash Flow Management**: The company expects to generate significant free cash flow, allowing for flexibility in growth investments or potential dividends in the future [181][186] Conclusion - **Investment Recommendation**: The CEO suggests that NESR remains undervalued and encourages investors to consider purchasing shares [190]