Core Insights - Halliburton has formed a strategic partnership with distributed energy company VoltaGrid to provide efficient and low-emission power solutions for the rapidly growing global data center market [1] - The initial phase of the collaboration will focus on promoting these solutions in the Middle East, addressing the increasing energy demands of data centers while enhancing sustainability and reliability [1] Industry Overview - Data centers, as critical infrastructure supporting cloud computing and artificial intelligence, are driving exponential growth in electricity demand, particularly in the Middle East [1] - Local governments are heavily investing in digital infrastructure, with major projects like the UAE's "Gateway to the Stars" data center, which plans for an initial capacity of 1 gigawatt [1] - The International Energy Agency predicts that global electricity demand from data centers will rise to approximately 945 terawatt-hours by 2030 [1] Company Strategy - Halliburton's entry into distributed power solutions signifies a strategic expansion beyond its traditional oilfield services, aligning with its goal to support global energy transition through technology and collaboration [1] - For VoltaGrid, this partnership will accelerate its international expansion, leveraging Halliburton's global business scale to serve more customers seeking reliable low-carbon energy systems [1]

Financial Data and Key Metrics Changes - Total reported revenue for Q3 2025 was $1.176 billion, with a net loss attributable to common shareholders of $36 million or $0.10 per share, and an adjusted net loss of $21 million [22] - Adjusted EBITDA for the quarter totaled $219 million, with total CapEx of $144 million [22][27] - The company generated $146 million of adjusted free cash flow during the first three quarters of the year [22] Business Line Data and Key Metrics Changes - In the drilling services segment, Q3 revenue was $380 million with an adjusted gross profit of $134 million, and the average operating rig count was 95 rigs [23] - Completion services segment revenue totaled $705 million with an adjusted gross profit of $111 million, showing flat activity on a pump-hour basis compared to Q2 [24] - Drilling products revenue was $86 million with an adjusted gross profit of $36 million, impacted by lower activity in Saudi Arabia [25] Market Data and Key Metrics Changes - U.S. contract drilling saw 8,737 operating days, with activity flat outside the Permian Basin, which experienced a sequential decline in rig count [23][24] - International revenue declined mainly in Saudi Arabia, while revenue outside of Saudi Arabia was strong [19] - The company expects completion services adjusted gross profit to be approximately $85 million in Q4, with less seasonality compared to the previous year [25] Company Strategy and Development Direction - The company is focused on enhancing commercial strategies through service and product line integration and performance-based agreements while lowering costs [5][10] - Investments in technology are prioritized, with expectations for strong returns on incremental investments [10][11] - The company aims to return at least 50% of annual free cash flow to shareholders through dividends and share repurchases [11][30] Management's Comments on Operating Environment and Future Outlook - Management noted that while oil prices have fallen, they remain resilient, and the U.S. shale picture is more constructive than expected [5][6] - The outlook for natural gas appears favorable, with physical demand growth from LNG expected to drive higher drilling and completion activity [8] - Management expressed confidence in maintaining high-demand portions of the fleet while generating meaningful free cash flow [11][30] Other Important Information - The company closed Q3 with $187 million in cash and an undrawn $500 million revolver, with no senior note maturities until 2028 [28] - The company has repurchased 44 million shares since the NextTier merger and Altera acquisition, reducing share count by 9% [23] Q&A Session Summary Question: Completion services pricing trends - Management highlighted that their teams are executing high-end work, which has allowed them to maintain pricing without significant pressure to reduce it [35][37] Question: Fleet renewal programs for 2026 - Management discussed the excitement around 100% natural gas direct-drive systems and indicated a focus on high-end investments while allowing lower-tier equipment to attrition [38][39] Question: Power market opportunities - Management acknowledged their expertise in power generation but noted that entering larger power markets would require careful consideration of capital and returns [44][47] Question: Customer discussions on drilling and completion - Management indicated that customers are seeking to maintain production levels despite a softer commodity environment, leading to requests for more technology and efficiency [56][58] Question: Capital allocation strategy - Management emphasized the importance of maintaining a strong balance sheet while committing to returning capital to shareholders, with a focus on performance driving pricing [76][80]

Financial Data and Key Metrics Changes - Total reported revenue for Q3 2025 was $1.176 billion, with a net loss attributable to common shareholders of $36 million or $0.10 per share, and an adjusted net loss of $21 million [22] - Adjusted EBITDA for the quarter totaled $219 million, with total CapEx of $144 million [22][27] - The company generated $146 million of adjusted free cash flow in the first three quarters of the year, with expectations for strong free cash flow in Q4 [22][29] Business Line Data and Key Metrics Changes - Drilling services segment revenue was $380 million with an adjusted gross profit of $134 million, while completion services segment revenue totaled $705 million with an adjusted gross profit of $111 million [23][24] - The drilling products segment reported revenue of $86 million with an adjusted gross profit of $36 million, impacted by higher bit repair expenses [25][26] - The company expects adjusted gross profit in drilling services to decline approximately 5% in Q4 compared to Q3 [24] Market Data and Key Metrics Changes - U.S. contract drilling saw an average operating rig count of 95 rigs, with activity stabilizing as the company exited Q3 [23][11] - In Canada, revenue showed strong recovery post-spring breakup, while international revenue declined mainly in Saudi Arabia [18] - The company noted that the completions market remains competitive, but operational quality is proving to be a major differentiator [14] Company Strategy and Development Direction - The company is focused on enhancing commercial strategies through service and product line integration, while lowering cost structures [5][6] - Investments in technology are prioritized, with expectations for lower capital expenditures in 2026 compared to 2025 [9][10] - The company aims to return at least 50% of annual free cash flow to shareholders through dividends and share repurchases [10][23] Management's Comments on Operating Environment and Future Outlook - Management highlighted resilience in the business despite challenges, with a constructive outlook for U.S. shale activity [5][6] - The company anticipates that any further activity reductions could negatively impact future U.S. output, affecting global oil supply in 2026 [7] - Management expressed confidence in maintaining strong free cash flow and a solid balance sheet, with expectations for continued capital flexibility [10][33] Other Important Information - The company has repurchased 44 million shares since the NextTier merger and Altera acquisition, reducing share count by 9% [23] - The company closed Q3 with $187 million in cash and an undrawn $500 million revolver, with no senior note maturities until 2028 [28] Q&A Session Summary Question: Completion services pricing trends - Management noted that their teams are executing high-end work, which has allowed them to maintain pricing without significant pressure to reduce it [36] Question: Fleet renewal programs for 2026 - Management discussed the excitement around 100% natural gas direct-drive systems and the strategy of investing at the high end while allowing lower-tier equipment to attrition [37][38] Question: Power market opportunities - Management acknowledged their expertise in power generation but indicated that entering larger power markets would require careful consideration of capital returns [44][46] Question: Macro uncertainty and customer behavior - Management observed that customers are seeking to maintain production levels despite a softer commodity environment, leading to requests for more technology [56] Question: Pricing expectations for completion market - Management indicated that while there may be some movement in pricing, they do not foresee significant headwinds due to steady demand for natural gas-powered equipment [73] Question: Capital allocation strategy - Management emphasized the importance of maintaining a strong balance sheet while committing to returning capital to shareholders, with a focus on performance-driven pricing [75][79]

Core Insights - The company announced a strategic positioning as a "technology service operator" to enhance competitiveness and drive future value growth through technology investment and a revenue-sharing model [1][2] Group 1: Market Performance - In Q3, the company secured new orders amounting to RMB 1,272.9 million, a decrease of 14.4% year-on-year [1] - New orders from the Iraq market were approximately RMB 542.2 million, reflecting an increase of 8.4% compared to the same period last year [1] - New orders from other overseas markets totaled about RMB 160.6 million, showing a significant decline of 54.4% year-on-year [1] - New orders from the Chinese market were approximately RMB 570.1 million, down 10.2% year-on-year [1][2] Group 2: Strategic Developments - The company is focusing on high-quality large project execution in the Chinese market, with successful bids for various services including oil casing inspection and reservoir enhancement [2] - The company is advancing lean operations to achieve value realization, with successful management committee meetings for the Iraq Dufri oilfield development project [2] - The company has entered the South American market for chemical business, indicating a strategy to expand into new markets [2] Group 3: Order Backlog - As of September 30, 2025, the company has an order backlog of approximately RMB 16,372.1 million [2] - The Iraq market accounts for about RMB 7,053.4 million of the backlog, representing 43.1% of the total [2] - The Chinese market holds an order backlog of approximately RMB 7,765.0 million, making up 47.4% of the total [2]

Financial Data and Key Metrics Changes - Core Laboratories Inc. reported third quarter 2025 revenue of $134.5 million, an increase of over 3% compared to Q2 2025 and flat year over year [11] - Operating income for the third quarter was $16.6 million, up from $14.5 million in Q2, yielding an EBIT margin of over 12% [14] - Net income excluding items for the quarter was $10.2 million, an increase of over 15% sequentially but down almost 14% year over year [15] - Earnings per diluted share excluding items was $0.22, up from $0.19 in the prior quarter and down from $0.25 last year [15] Business Line Data and Key Metrics Changes - In the reservoir description segment, revenue was $88.2 million, up over 2% compared to Q2, with operating income of $11.6 million and operating margins of 13% [31] - The production enhancement segment saw revenue of $46.3 million, up 6% compared to Q2, with operating income of $4.9 million and operating margins of 11% [35] Market Data and Key Metrics Changes - Demand for laboratory services related to crude oil and derived products remained steady, with trading patterns improving following sanctions [7] - International service revenue increased by 5% sequentially, while U.S. service revenue remained flat and decreased almost 4% year over year [11] Company Strategy and Development Direction - Core Laboratories Inc. continues to focus on technology investments to solve client problems and capitalize on technical and geographic opportunities [6] - The company aims to maximize free cash flow, return on invested capital, and return excess free cash to shareholders [10] - Core's strategies include introducing new products and services in key geographic markets and maintaining a lean organization [9] Management's Comments on Operating Environment and Future Outlook - Management maintains a constructive outlook despite potential tariff headwinds and market volatility, projecting growth in crude oil demand driven by non-OECD countries [20][21] - The company anticipates that changes in crude oil prices will have a more immediate impact on U.S. onshore drilling and completion activity [23] - Core expects reservoir description revenue to increase sequentially in Q4, while production enhancement revenue may decline slightly [24] Other Important Information - Core repurchased over 462,000 shares of its stock during Q3, representing approximately 1% of outstanding shares and a value of $5 million [8] - The company’s long-term debt was $117 million, with a leverage ratio reduced to 1.1 [17] Q&A Session Summary Question: Opportunities for similar-sized transactions globally - Management discussed the potential for similar tuck-in technology acquisitions, emphasizing the benefits of structuring deals with earnouts to align interests [43][45] Question: Future activity levels in Asia Pacific - Management indicated that clients foresee higher activity levels, particularly in the Middle East and West Africa, with increasing exploration programs in Asia Pacific [47][49]

Financial Data and Key Metrics Changes - Core Laboratories Inc. reported third quarter 2025 revenue of $134.5 million, an increase of over 3% compared to Q2 2025 and flat year over year [11] - Operating income for the quarter was $16.6 million, up from $14.5 million in Q2, yielding an EBIT margin of over 12% [14] - Net income excluding items was $10.2 million, a sequential increase of over 15% but down almost 14% from the same quarter last year [16] Business Line Data and Key Metrics Changes - Reservoir description revenue was $88.2 million, up over 2% compared to Q2, with operating margins at 13% [31] - Production enhancement revenue reached $46.3 million, a 6% increase from Q2, with operating margins improving to 11% from 9% [35] Market Data and Key Metrics Changes - International service revenue was $101.1 million, up 5% sequentially and over 2% year over year, while U.S. service revenue remained flat sequentially and down almost 4% year over year [11] - Product sales were $33.4 million, down slightly from the previous quarter and down 6% year over year, primarily due to lower completion activity in the U.S. onshore market [12] Company Strategy and Development Direction - The company continues to focus on technology investments to solve client problems and capitalize on technical and geographic opportunities [6] - Core Laboratories Inc. aims to maximize free cash flow, return on invested capital, and return excess free cash to shareholders [10] Management's Comments on Operating Environment and Future Outlook - Management maintains a constructive outlook despite potential tariff headwinds and market volatility, projecting growth in crude oil demand driven by non-OECD countries [21][23] - The company anticipates a slight sequential decline in U.S. onshore completion activity but expects growth in international and offshore markets to offset this decline [24] Other Important Information - The company repurchased over 462,000 shares during the third quarter, representing approximately 1% of outstanding shares [8] - Capital expenditures for operations are expected to be in the range of $11 million to $13 million for the full year 2025 [19] Q&A Session Summary Question: Opportunities for similar-sized transactions globally - Management discussed the potential for similar tuck-in technology acquisitions, emphasizing the benefits of structuring deals with earnouts to align interests [39][40] Question: Customer activity outlook in Asia Pacific - Management indicated that customers foresee higher activity levels, particularly in the Middle East and West Africa, with increasing exploration programs in Asia Pacific [43][44]

Financial Data and Key Metrics Changes - Core Laboratories reported third quarter 2025 revenue of $134.5 million, an increase of over 3% compared to Q2 2025 and flat year-over-year [12] - Operating income for the quarter was $16.6 million, up from $14.5 million in Q2, yielding an EBIT margin of over 12% [16] - Net income excluding items was $10.2 million, a sequential increase of over 15% but down almost 14% year-over-year [18] - Earnings per diluted share excluding items was $0.22, up from $0.19 in the prior quarter and down from $0.25 last year [19] Business Line Data and Key Metrics Changes - In the Reservoir Description segment, revenue was $88.2 million, up over 2% compared to Q2, with operating margins at 13% [42] - Production Enhancement revenue for Q3 was $46.3 million, a 6% increase from Q2, with operating margins improving to 11% from 9% [47] Market Data and Key Metrics Changes - International service revenue increased by 5% sequentially, while U.S. service revenue remained flat and down almost 4% year-over-year [12][13] - The company noted ongoing geopolitical conflicts and evolving sanctions affecting demand for laboratory services tied to crude oil [8][27] Company Strategy and Development Direction - Core Laboratories continues to focus on technology investments to solve client problems and capitalize on technical and geographic opportunities [7] - The company aims to maximize free cash flow, return on invested capital, and return excess free cash to shareholders [10] Management Comments on Operating Environment and Future Outlook - Management maintains a constructive outlook despite near-term economic headwinds, with forecasts indicating growth in global crude oil demand [25][35] - The company anticipates steady activity across long-cycle projects, particularly in deepwater regions and emerging markets [28][29] Other Important Information - Core Lab repurchased over 462,000 shares during Q3, representing approximately 1% of outstanding shares [9] - The company expects capital expenditures for operations in 2025 to be in the range of $11 million to $13 million [23] Q&A Session Summary Question: Opportunities for similar-sized transactions globally - Management discussed the structured purchase price of a recent acquisition, emphasizing the potential for similar tuck-in technology acquisitions [53][54] Question: Future activity levels in Asia Pacific - Management indicated expectations of higher activity levels across various regions, particularly in the Middle East and South Atlantic margin, with increasing international investment [60][61]

Core Viewpoint - The company reported a slight increase in total revenue and net profit for the first three quarters of 2025, but faced a decline in Q3 performance due to seasonal fluctuations and external factors [4][5]. Financial Performance - For the first three quarters of 2025, the company achieved total revenue of 33.95 billion yuan, a year-on-year increase of 0.8%, and a net profit attributable to shareholders of 2.85 billion yuan, up 6.1% year-on-year [4]. - In Q3 2025, the company recorded total revenue of 11.35 billion yuan, down 5.7% year-on-year and 9.4% quarter-on-quarter, with a net profit of 1.02 billion yuan, a decrease of 4.5% year-on-year and 17.2% quarter-on-quarter [4][5]. Operational Insights - The company maintained a steady growth in the oilfield service industry, benefiting from policies aimed at increasing reserves and production, despite the international oil price decline [5]. - The company focused on improving operational quality, with a return on equity (ROE) of 20.5% for the first three quarters, a slight decrease of 0.7 percentage points year-on-year, and a cost-to-profit margin of 9.6%, an increase of 0.6 percentage points year-on-year [5]. Cost Management and Transformation - The company implemented cost control measures, achieving a gross profit margin of 16.16%, an increase of 1.55 percentage points year-on-year [6]. - The company is accelerating the transformation of traditional industries towards high-end, intelligent, and green development, launching ten digital management modules and establishing smart factories [6]. Strategic Initiatives - The parent company, China National Offshore Oil Corporation (CNOOC), is actively pursuing a seven-year action plan for oil and gas reserve increases, with production growth targets of 5.9%, 2.6%, and 3.8% for 2025 to 2027 [7]. - The company is enhancing its core capabilities in energy technology services, with significant growth in self-developed equipment and a shift towards value-driven operations [7].

Core Viewpoint - Zhongman Petroleum's stock price has shown a positive trend with an increase of 8.12% year-to-date, indicating a growing interest in the company within the oil and gas sector [2]. Group 1: Stock Performance - As of October 22, Zhongman Petroleum's stock rose by 2.13%, reaching 20.61 CNY per share, with a trading volume of 3.09 billion CNY and a turnover rate of 3.29%, resulting in a total market capitalization of 95.29 billion CNY [1]. - The stock has increased by 3.67% over the last five trading days, 5.48% over the last 20 days, and 7.49% over the last 60 days [2]. Group 2: Financial Performance - For the first half of 2025, Zhongman Petroleum reported a revenue of 1.981 billion CNY, reflecting a year-on-year growth of 3.29%, while the net profit attributable to shareholders was 300 million CNY, showing a decline of 29.81% compared to the previous year [2]. - The company has distributed a total of 979 million CNY in dividends since its A-share listing, with 810 million CNY distributed over the last three years [3]. Group 3: Shareholder Information - As of June 30, 2025, Zhongman Petroleum had 44,300 shareholders, an increase of 32.16% from the previous period, with an average of 10,440 circulating shares per shareholder, a decrease of 24.33% [2]. - Among the top ten circulating shareholders, Dazhong New锐产业混合A holds 6.851 million shares, while Hong Kong Central Clearing Limited has reduced its holdings by 787,200 shares [3].

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company achieved a total revenue of 33.95 billion yuan in the first three quarters of 2025, a year-on-year increase of 0.8%, and a net profit attributable to the parent company of 2.85 billion yuan, up 6.1% year-on-year [4][5] - The company is focusing on cost reduction and efficiency improvement while enhancing its core capabilities, which is expected to drive long-term growth [6][7] - The company is actively responding to the "seven-year action plan" for oil and gas resource increase, which is anticipated to open up long-term growth opportunities [7] Summary by Sections Financial Performance - In Q3 2025, the company reported a total revenue of 11.35 billion yuan, a decrease of 5.7% year-on-year and 9.4% quarter-on-quarter, with a net profit of 1.02 billion yuan, down 4.5% year-on-year and 17.2% quarter-on-quarter [4][5] - The annualized ROE for the first three quarters was 20.5%, a decrease of 0.7 percentage points year-on-year, while the cost-to-profit margin improved to 9.6%, an increase of 0.6 percentage points year-on-year [5] Cost Management and Efficiency - The gross profit margin for the first three quarters was 16.16%, an increase of 1.55 percentage points year-on-year, reflecting the company's commitment to cost control and efficiency enhancement [6] - The company is advancing its traditional industries towards high-end, intelligent, and green transformations, with significant investments in digitalization and smart factory initiatives [6] Industry Outlook - The domestic oilfield service industry is expected to maintain a high level of prosperity due to the ongoing "resource increase" initiatives, which will benefit the company [8] - The company is enhancing its core capabilities through technological innovations and domestic replacements, which are expected to shift its growth from volume-driven to value-driven [7] Profit Forecast and Valuation - The company is projected to achieve net profits of 4.26 billion yuan, 4.70 billion yuan, and 5.22 billion yuan for the years 2025, 2026, and 2027, respectively, with corresponding EPS of 0.42 yuan, 0.46 yuan, and 0.51 yuan [8][10]