Core Insights - National Energy Services Reunited Corp. (NESR) is set to release its financial results for Q3 2025 on November 13, 2025 [1] - A conference call will be held at 8:00 AM ET on the same day to discuss the financial results [1] Company Overview - NESR is an international provider of integrated energy services [1] - The company operates primarily in the Middle East and North Africa (MENA) region [1]

Group 1: Company Overview - National Energy Services Reunited (NESR) shares increased by 14.3% to close at $14.1, with a notable trading volume compared to typical sessions, and a total gain of 20.3% over the past four weeks [1][2] - NESR is one of the largest oilfield service providers in the Middle East and North Africa (MENA) region, benefiting from increased demand for oilfield services due to rising oil and gas demand [2] Group 2: Market Dynamics - The company is experiencing growth in drilling activity in the MENA region, particularly in Algeria, Libya, the UAE, Oman, and Kuwait, while also expanding into Latin America, specifically Guyana and Brazil [2] - NESR is focusing on securing a robust backlog and building a solid project pipeline to ensure sustained demand for its services and maintain profitability amid rising global oil and gas demand [2] Group 3: Financial Performance Expectations - NESR is expected to report quarterly earnings of $0.15 per share, reflecting a year-over-year decline of 51.6%, with revenues projected at $291.25 million, down 13.4% from the previous year [3] - The consensus EPS estimate for NESR has been revised 25% lower over the last 30 days, indicating a negative trend in earnings estimate revisions, which typically does not lead to price appreciation [4] Group 4: Industry Comparison - NESR is part of the Zacks Oil and Gas - Mechanical and Equipment industry, where USA Compression Partners (USAC) has a Zacks Rank of 2 (Buy) and is expected to report an EPS of $0.22, reflecting a 69.2% increase year-over-year [5][6]

Core Insights - National Energy Services Reunited Corp. (NESR) has secured a contract from Aramco for completion services in Jafurah and other unconventional plays in Saudi Arabia over a five-year term [1] - The contract entails significant mobilization of completion services and a broad scope of work, aligning with the Kingdom's Vision 2030 plan for energy diversification [1] Company Summary - NESR is recognized as an international, industry-leading provider of integrated energy services in the MENA region [1] - The awarded contract is expected to support the next phase of growth in unconventional gas development within the Kingdom [1]

Group 1 - National Energy Services Reunited Corp. (NASDAQ:NESR) is highlighted as a strong investment opportunity, with JPMorgan raising its price target to $19 from $10 while maintaining an Overweight rating [1][3] - The company's full-year 2025 revenue outlook is expected to exceed that of full-year 2024, with an anticipated increase in Q4 revenue [2][3] - In Q2 2025, NESR reported revenue of $327.4 million, reflecting an 8% sequential increase from Q1 2025 and a 0.71% year-over-year increase, with EPS of $0.21 showing a 50% sequential increase [3]

Core Insights - National Energy Services Reunited Corp. (NESR) has announced a collaboration with Kuwait Drilling Company (KDC) to secure a campaign award for integrated drilling services in Jordan valued at approximately $200 million over four years [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] - The collaboration with KDC is part of ongoing efforts to enhance operational efficiency and service delivery across multiple countries [1] Project Details - The campaign involves drilling eighty (80) wells in Jordan, leveraging an innovative business model that focuses on cost-effectiveness and high performance [1] - The partnership aims to combine best-in-class operational practices and techniques to achieve optimal results in well delivery [1]

Group 1 - The price of oil has recently dropped to near its 4-year lows due to a weak outlook for the oil market [1] - OPEC has drastically changed its strategy in April after maintaining deep production cuts in recent years [1]

Summary of National Energy Services Reunited (NESR) Conference Call Company Overview - **Company Name**: National Energy Services Reunited Corp. (Ticker: NESR) - **Industry**: Energy Services, specifically focused on the Middle East - **Market Position**: NESR is the first and only pure play energy services company listed on NASDAQ that provides exposure to the Middle East oil and gas sector, primarily serving national oil companies in the GCC region [4][5][17] Core Business and Services - **Service Offerings**: NESR offers over 20 product and service lines, including production services (70% of revenue) and drilling and evaluation services (30% of revenue) [6][10] - **Key Clients**: Major clients include national oil companies such as Saudi Aramco, which constitutes over half of NESR's business [5][6] - **Geographic Focus**: The company operates in 16 countries, with 75% of revenue derived from Saudi Arabia, UAE, Oman, and Kuwait [4][20][33] Financial Performance - **Revenue Growth**: NESR has grown from a pro forma revenue of $450 million at its founding to approximately $1.3 billion today, with a projected run rate of $2 billion within the next 18 months [10][39] - **Market Growth**: The Middle East oilfield services market has grown at a 5% CAGR, while NESR has outperformed with a 20% annual growth rate [10][23] - **Profitability**: NESR maintains a leading free cash margin of around 10% and has shown strong return on capital employed (ROCE) compared to peers [25][26] Investment Thesis 1. **Market Stability**: The Middle East is characterized by multi-year contracts and low break-even oil prices, providing a stable revenue environment compared to the more cyclical U.S. market [19][20] 2. **Natural Gas Development**: There is a significant push for natural gas production in the region, particularly in Saudi Arabia's Vision 2030, which aims to increase domestic gas production [21][22] 3. **Technological Partnerships**: NESR employs an open technology platform strategy, leveraging partnerships to access innovative technologies without the extensive R&D costs typical of larger peers [13][14][27] Recent Developments and Challenges - **Financial Restatement**: NESR underwent a financial restatement for the years 2018-2020 due to an under accrual of costs, which has since been remediated [34][35] - **Stock Performance**: The stock has been trading at a discount compared to peers, attributed to past financial issues and perceived geopolitical risks, despite strong fundamentals [31][32][36] - **Future Outlook**: The company is positioned for continued growth with a healthy balance sheet and strong cash flow, aiming to balance growth ambitions with returns [26][39] Conclusion - NESR represents a unique investment opportunity in the energy services sector, particularly for those seeking exposure to the Middle East market. The company's strong growth trajectory, stable revenue base, and strategic focus on technology and local partnerships position it well for future success [18][39]

Core Insights - The article emphasizes the importance of value investing as a strategy to identify strong stocks, particularly in various market conditions [2][4][7] Company Analysis - National Energy Services Reunited (NESR) holds a Zacks Rank of 2 (Buy) and has a Value grade of A, indicating it is a strong candidate for value investors [4][7] - NESR's current P/E ratio is 9.31, significantly lower than the industry average of 13.55, suggesting it may be undervalued [4] - The stock's Forward P/E has fluctuated between a high of 9.31 and a low of 4.36 over the past 52 weeks, with a median of 6.18 [4] - NESR's P/S ratio stands at 0.76, compared to the industry's average P/S of 0.8, further indicating potential undervaluation [5] - The P/CF ratio for NESR is 4.48, which is attractive relative to the industry's average P/CF of 6.88, suggesting a solid cash outlook [6] - NESR's P/CF has ranged from a high of 4.48 to a low of 2.39 over the past year, with a median of 3.08 [6] - Overall, NESR's key metrics indicate that it is likely undervalued, making it an impressive value stock at this time [7]

Financial Data and Key Metrics Changes - The overall second quarter revenue was $327.4 million, which was up 8% sequentially and up 0.71% year over year, outpacing the sector [22] - Adjusted EBITDA for Q2 2025 was $70.6 million with margins of 21.6%, up 95 basis points sequentially [22] - Earnings per share adjusted for charges and credits was 21¢ for Q2 2025, up 50% from Q1 2025 [23] - Free cash flow for Q2 2025 was $68.7 million, with cash flow from operations of $98.5 million [25] Business Line Data and Key Metrics Changes - Growth in Saudi Arabia was mainly driven by unconventional activity, along with growth in Egypt and Iraq [22] - Year-over-year growth was observed in Abu Dhabi, Algeria, Iraq, Egypt, and Jordan, partially offset by lower revenue in Saudi Arabia [22] - The company has secured solid new contracts in both Algeria and Libya, spanning three to five years [17] Market Data and Key Metrics Changes - The oil price is expected to remain challenged for the next twelve months, with a 35% decline in US activity this year [8] - The rig count in Kuwait is at an all-time high, making it the second largest country in the Middle East in terms of rig count [14] - North Africa is positioned to provide much-needed gas into the pipeline to meet increasing domestic power demand [18] Company Strategy and Development Direction - The company aims to achieve $2 billion in revenue, leveraging recent contract awards and a robust backlog [5] - A countercyclical investment strategy is being employed to navigate the softening upstream environment [6] - The focus is on building a solid pipeline and securing a robust backlog while maintaining profitable growth and free cash flow generation [19] Management's Comments on Operating Environment and Future Outlook - The management sees MENA as a bright spot despite sustained uncertainty in the global macro environment [7] - The outlook for overall energy demand remains robust, with significant growth expected in oil demand per capita in developing countries [9] - The company expects Q3 2025 revenues and EBITDA to be consistent with Q2 2025 results [26] Other Important Information - The company has successfully remediated its final material weakness in internal controls over financial reporting [28] - The company is currently refinancing its debt facility and anticipates completion within the next three months [29] - The company plans to use excess cash flow exclusively to pay down debt for the remainder of 2025 [30] Q&A Session Summary Question: Can you break apart the guidance for Q3? - The revenue for Q3 is expected to be consistent with Q2, with Q4 anticipated to be higher due to recent tender wins [40][41] Question: What is the outlook for MENA in 2026? - An uptick in MENA is expected in 2026, with countries planning to increase activity [44][49] Question: Any updates on the Jafora contract announcements? - The company is awaiting results from Aramco's evaluation phase for tenders [50] Question: Any consideration for buybacks or returning cash to shareholders? - The company will evaluate excess cash options after completing refinancing and assessing tender results [51] Question: Can you provide insights on the Kuwait contract? - The Kuwait production contracts are expected to be significant, with ongoing tenders [58] Question: What is the status of free cash flow and accounts receivables? - Accounts receivables have increased due to higher revenue, but working capital management has improved [106]

Group 1: Earnings Performance - National Energy Services Reunited (NESR) reported quarterly earnings of $0.21 per share, exceeding the Zacks Consensus Estimate of $0.19 per share, but down from $0.29 per share a year ago, representing an earnings surprise of +10.53% [1] - The company posted revenues of $327.37 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 3.41%, compared to year-ago revenues of $324.97 million [2] - Over the last four quarters, NESR has surpassed consensus EPS estimates just once and topped consensus revenue estimates two times [2] Group 2: Stock Performance and Outlook - NESR shares have declined approximately 18.6% since the beginning of the year, contrasting with the S&P 500's gain of 9% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $0.28 on revenues of $350.11 million, and for the current fiscal year, it is $0.94 on revenues of $1.35 billion [7] Group 3: Industry Context - The Oil and Gas - Mechanical and Equipment industry, to which NESR belongs, is currently ranked in the bottom 29% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - The estimate revisions trend for NESR was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6]