Financial Data and Key Metrics Changes - The company generated quarterly revenues of over $1 billion, marking the third consecutive quarter above the billion-dollar mark [18] - Total direct operating costs for the fourth quarter were $715 million, down from $735 million in the previous quarter [18] - 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 [18] - For the full year, the earnings per share were a net loss of $1.66 [19] - Operating cash flow for the fourth quarter was $207 million, totaling $543 million for the full year [20] Business Line Data and Key Metrics Changes - North America Solutions averaged 141 contracted rigs during the fourth quarter, with a direct margin of $242 million, above the midpoint of guidance [21][22] - The International Solutions segment ended the fourth quarter with 61 rigs working, generating approximately $30 million in direct margins [23] - The Offshore Solutions segment generated a direct margin of approximately $35 million during the quarter, exceeding guidance [25] 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 [9] - The utilization rates of rigs that have been idled for less than 12 months remain strong at over 80% [12] - The average first quarter operating rig count for the International Solutions segment is expected to be approximately 57 to 63 rigs [24] Company Strategy and Development Direction - The company is focused on optimizing its financial position to continue paying down its term loan and generating free cash flow [26] - There is a commitment to nurturing leadership and promoting talent within the organization to prepare for future growth [10] - The company plans to maintain its long-standing base dividend of approximately $100 million in 2026 [30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the market stabilizing and the expanded footprint offering new opportunities [9] - The company is encouraged by the resilience of its business and the positive long-term prospects in the oil and gas industry [5] - Management expects 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 [17] - Capital expenditures for the fourth quarter were $64 million, with full-year 2025 totaling $426 million [19] - The company operates in six countries and has a blue-chip customer base supported by strong contractual coverage [9] Q&A Session Summary Question: International rig count and margins - Management is focused on the phased approach to reactivations in Saudi Arabia and expects to finish by mid-2026, with further growth anticipated in the region [36][38] Question: North America revenue and operating expenses - The North America Solutions market is expected to remain consistent as long as commodity prices and demand are intact, with a focus on longer and more complex wells [44] Question: CapEx guidance and reactivation costs - The $230 million-$250 million CapEx includes all rig reactivation costs, with more capital costs than operating costs impacting margins [62] Question: Maintenance CapEx for U.S. vs. international rigs - Maintenance CapEx is approximately $1 million per domestic rig and $1.3 million-$1.5 million per international rig [70] Question: International activity levels and unconventional drilling - The company is actively engaged in discussions about unconventional drilling in regions like Algeria and Libya, with a positive outlook for future growth [80]