Financial Data and Key Metrics Changes - The company reported quarterly revenues of just over $1 billion, marking the third consecutive quarter above the billion-dollar mark [17] - Total direct operating costs for the fourth quarter were $715 million, down from $735 million in the previous quarter [17] - The net loss for the fourth quarter was $0.58 per diluted share, an improvement from a net loss of $1.64 in the previous quarter [17] - For the full year, the earnings per share were a net loss of $1.66 [18] - Operating cash flow for the fourth quarter was $207 million, totaling $543 million for the full year [19] Business Line Data and Key Metrics Changes - North America Solutions averaged 141 contracted rigs during the fourth quarter, down from the third quarter, but consistent with industry activity [19] - The segment direct margin for North America Solutions was $242 million, above the midpoint of guidance [19] - The International Solutions segment ended the fourth quarter with 61 rigs working, generating approximately $30 million in direct margins [22] - The Offshore Solutions segment generated a direct margin of approximately $35 million during the quarter, above guidance [24] Market Data and Key Metrics Changes - The company anticipates oil prices to remain rangebound between the upper $50s and mid-$60s in the first half of 2026 [7] - The utilization rates of rigs that have been idled for less than 12 months remain strong at over 80% [11] - The company expects the average first quarter operating rig count for the International Solutions segment to be approximately 57-63 rigs [23] Company Strategy and Development Direction - The company aims to optimize its financial position to continue paying down the term loan and generate free cash flow [25] - Capital expenditures for fiscal 2026 are expected to be approximately $280 million-$320 million, with maintenance capital expenditures approaching historically low figures [26] - The company is focused on enhancing its technology offerings, particularly in drilling automation and wellbore quality [27] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the market stabilizing and the expanded footprint offering new opportunities [7] - The company is encouraged by the resilience of its business and the positive long-term prospects for the oil and gas industry [4] - Management expects to see further margin improvement throughout fiscal year 2026, despite some initial costs related to rig reactivations [38] Other Important Information - The company has made significant progress on deleveraging, having paid off $210 million on its term loan [16] - The company operates in six countries and has a blue-chip customer base supported by strong contractual coverage [7] - The company plans to maintain its long-standing base dividend of approximately $100 million in 2026 [28] Q&A Session Summary Question: Potential for more Saudi rigs to come back and international margins normalization - Management indicated that the focus is on the seven reactivations in Saudi Arabia and expects to see further growth and enhancements in the region [36][37] Question: Daily revenue and operating expenses outlook - Management noted that the North America Solutions market is expected to remain consistent as long as commodity prices and demand are intact, with a focus on maintaining low operating expenses [44] Question: Clarification on reactivation expenses - Management confirmed that the reactivation costs are included in the overall capital expenditures, but specific amounts per rig are difficult to quantify [60][62] Question: Maintenance CapEx for U.S. versus international rigs - Management stated that maintenance CapEx for domestic rigs is around $1 million per rig, while for international rigs it ranges from $1.3 million to $1.5 million [65] Question: Progress on unconventional drilling in regions outside the Middle East - Management highlighted ongoing conversations and interest in unconventional drilling in regions like Australia and North Africa, with a focus on transferring U.S. shale expertise [74][81]