Financial Data and Key Metrics Changes - Revenue for 2025 was $183.6 million, a 13% increase compared to 2024, exceeding the high end of guidance [20][21] - Adjusted EBITDA increased by 20% year-over-year to $26.7 million, with an adjusted EBITDA margin of 14.5% [23][20] - Free cash flow after distributions to non-controlling interest totaled $19 million, representing over 70% conversion from adjusted EBITDA [31][12] Business Line Data and Key Metrics Changes - Revenue growth was driven by a 69% increase in the U.S., while Canada saw a 7% decline and international revenue increased by 5% [16][20] - The acquisition of ResMetrics contributed $5.2 million to revenue for the year, enhancing the company's position in the tracer diagnostic space [20][5] - Adjusted gross profit for Q4 was $21.2 million, with an adjusted gross margin of 42%, slightly down from 43% in Q4 2024 [17][21] Market Data and Key Metrics Changes - The U.S. market showed strong performance, while Canada faced headwinds due to lower activity levels [16][20] - The company expects flat to lower overall customer activity in North America for 2026, with potential increases in international markets, particularly in the Middle East [26][27] Company Strategy and Development Direction - The company aims to advance efficient and sustainable energy development, targeting the $10 billion global completions market [6][4] - Core strategies include building market positions, capitalizing on high-margin growth opportunities, and commercializing innovative solutions [8][10] - The integration of ResMetrics is expected to enhance the company's tracer diagnostics platform and expand market reach [13][12] Management's Comments on Operating Environment and Future Outlook - Management anticipates a challenging market environment in 2026, with expectations of revenue growth primarily from U.S. and international markets [26][27] - The company aims to grow revenue in excess of underlying market activity and convert over 50% of adjusted EBITDA to free cash flow [14][29] - Management expressed confidence in the company's ability to utilize deferred tax assets, contributing to improved net income [19][23] Other Important Information - The company maintains a strong balance sheet with a net cash position of approximately $29 million and total liquidity of over $61 million [23][31] - Guidance for Q1 2026 includes expected revenue of $49 million to $53 million, with adjusted gross margin anticipated between 39% and 41% [24][25] Q&A Session Questions and Answers Question: Guidance on revenue weighting towards the back half of the year - Management indicated that seasonality affects revenue, with the majority of earnings and cash flow expected in the second half of the year [37][38] Question: Cross-selling potential in the Middle East with ResMetrics - Management noted that while benefits are seen in North America, international cross-selling will take more time to develop [40][42] Question: Updates on the North Sea pipeline and project opportunities - Management highlighted success in the North Sea, with new customer orders and ongoing projects, indicating a strong product-market fit [46][48]

Exxon Mobil Corp. XOM has reportedly entered into a preliminary, non-binding arrangement with Russia’s Rosneft to explore avenues for recovering billions lost after its withdrawal from Russian operations in 2022.The deal, signed in late August or early September, represents the first tangible framework for Exxon to potentially claw back the $4.6 billion write-down tied to its exit, Reuters reports.The development marks a cautious step toward commercial dialogue between the two energy giants, though further ...