RPC (RES) Q1 2025 Earnings Call April 24, 2025 09:00 AM ET Company Participants Michael Schmit - CFO & Corporate SecretaryBen Palmer - CEO, President & DirectorStephen Gengaro - Managing DirectorJohn Daniel - Founder & CEO Conference Call Participants Don Crist - Research Analyst Operator Good morning, and thank you for joining us for RPC, Inc. First Quarter twenty twenty five Earnings Conference Call. Today's call will be hosted by Ben Palmer, President and CEO and Mike Schmidt, Chief Financial Officer. At ...

RPC (RES) Q1 2025 Earnings Call April 24, 2025 09:00 AM ET Company Participants Michael Schmit - CFO & Corporate SecretaryBen Palmer - CEO, President & DirectorStephen Gengaro - Managing DirectorJohn Daniel - Founder & CEO Conference Call Participants Don Crist - Research Analyst Operator Good morning, and thank you for joining us for RPC, Inc. First Quarter twenty twenty five Earnings Conference Call. Today's call will be hosted by Ben Palmer, President and CEO and Mike Schmidt, Chief Financial Officer. At ...

Core Viewpoint - RPC, Inc. reported its first quarter 2025 results, highlighting a stable performance across most service lines and the successful acquisition of Pintail Completions, which is expected to enhance RPC's service offerings in the Permian region [4][6]. Financial Performance - Revenues for Q1 2025 were $332.9 million, a decrease of 1% from Q4 2024, with pressure pumping revenues remaining flat and other service lines combined decreasing by 1% [6][14]. - Net income was $12 million, down 6% sequentially, with diluted EPS at $0.06, reflecting a decrease in net income margin to 3.6% [10][11]. - EBITDA increased by 6% sequentially to $48.9 million, with an EBITDA margin of 14.7%, up 100 basis points from the previous quarter [11][12]. Acquisition Details - The acquisition of Pintail Completions, effective April 1, 2025, is expected to bring significant operational benefits, as Pintail generated over $400 million in revenues in 2024 and is recognized for its strong profitability and customer service [6][12]. Industry Context - The U.S. rig count averaged 588 in Q1 2025, a slight increase of 0.3% from Q4 2024, but down 5.6% year-over-year [5]. - Oil prices averaged $71.93 per barrel, a 1.9% increase from the previous quarter but a 7.1% decrease compared to the same quarter last year [5]. - Natural gas prices saw a significant increase of 70.4% sequentially, averaging $4.14 per Mcf [5]. Cost Management - Cost of revenues decreased by 3% to $243.9 million, contributing to improved operating income, primarily due to reduced fleet and transportation costs [8][10]. - Selling, general and administrative expenses rose to $42.5 million, reflecting increased IT system implementation costs [9][10]. Cash Flow and Capital Allocation - Net cash provided by operating activities was $39.9 million, with free cash flow at $7.6 million for Q1 2025 [13][30]. - The company declared a quarterly cash dividend of $0.04 per share, payable on June 10, 2025 [13].

Company Performance - Oceaneering International (OII) reported quarterly earnings of $0.43 per share, exceeding the Zacks Consensus Estimate of $0.36 per share, and showing a significant increase from $0.14 per share a year ago, representing an earnings surprise of 19.44% [1] - The company posted revenues of $674.52 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.65%, and up from $599.09 million in the same quarter last year [2] - Oceaneering International has surpassed consensus revenue estimates four times over the last four quarters [2] Stock Performance - Oceaneering International shares have declined approximately 33.4% since the beginning of the year, compared to a decline of 10.1% for the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is $0.40 on revenues of $698.49 million, and for the current fiscal year, it is $1.75 on revenues of $2.73 billion [7] Industry Outlook - The Oil and Gas - Field Services industry, to which Oceaneering International belongs, is currently ranked in the top 35% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5]

Company Overview - Drilling Tools International Corp. (DTI) is a global oilfield services company specializing in the design, engineering, manufacturing, and rental of tools for horizontal and directional drilling operations [1][3] - The company has been operational since 1984 and has 16 service and support centers in North America, along with 11 international centers in the EMEA and APAC regions [3] Upcoming Financial Results - DTI plans to report its first quarter financial results for 2025 on May 14, 2025, prior to a live conference call [1] - The conference call will be accessible via phone and webcast, starting at 10:00 a.m. Eastern Time [2] Conference Call Details - Participants can join the call by dialing 1-201-389-0869 or through the webcast link provided [2] - A replay of the call will be available until May 21, 2025, and an archive of the webcast will be accessible for 90 days after the event [2]

Weatherford International (WFRD) Q1 2025 Earnings Call April 23, 2025 08:30 AM ET Company Participants Luke Lemoine - SVP - Corporate Development & IRGirish Saligram - President & CEOAnuj Dhruv - EVP & CFOJ. David Anderson - Managing DirectorScott Gruber - Director - Oilfield Services & Equipment ResearchSean Mitchell - Managing PartnerAtidrip Modak - Vice President - Energy Services & E&Ps Conference Call Participants Saurabh Pant - AnalystJim Rollyson - Director & Equity Research AnalystDouglas Becker - A ...

NOV Inc. (NOV) is set to release first-quarter 2025 results on April 28, 2025. The Zacks Consensus Estimate for earnings is pegged at 25 cents per share and the same for revenues is pinned at $2.10 billion.Let us delve into the factors that are likely to have influenced the oilfield service provider’s performance in the to-be-reported quarter. But first, it is worth taking a look at NOV’s performance in the last reported quarter.Highlights of NOV’s Q4 Earnings & Surprise HistoryIn the last reported quarter, ...

Core Viewpoint - Halliburton has warned of a potential earnings impact in the second quarter due to tariffs and reduced oilfield activity in North America, leading to a decline in its share price by approximately 6% [1][5]. Company Performance - Halliburton's shares fell to $20.62, reflecting a 6% drop after the earnings forecast indicated a 2 to 3 cents per share impact from trade tensions [5]. - The company reported a profit of $204 million, or 24 cents per share, for the three months ending March 31, down from $606 million, or 68 cents per share, in the previous year [12]. - First-quarter revenue was $5.42 billion, surpassing analysts' average estimate of $5.28 billion [12]. - North America revenue decreased by 12% year-over-year to $2.2 billion [7]. Market Conditions - U.S. crude prices are currently below $64 per barrel, with many companies indicating they cannot drill profitably if prices fall below $65, which negatively affects demand for Halliburton's services [2]. - The oilfield service sector is concerned that tariffs on imported steel and parts will disrupt supply chains and increase equipment costs [6]. Future Outlook - Halliburton's CEO noted that customers are evaluating their activity plans, which may lead to higher than normal white space for committed fleets and potential retirement or export of fleets to international markets [3]. - The company forecasts a 1% to 3% increase in revenue for its completion and production division in the second quarter, while drilling and evaluation division revenue is expected to be flat to down 2% [11]. - International revenue is projected to be flat to slightly down year-over-year, primarily due to reduced drilling and project management activity in Mexico [8].

Core Viewpoint - Halliburton reported mixed Q1 2025 results, with revenue exceeding expectations but earnings per share aligning with analyst predictions, indicating both challenges and opportunities ahead [1][2]. Financial Performance - Revenue for Q1 2025 was $5.4 billion (GAAP), exceeding the consensus estimate of $5.273 billion by approximately $144 million, but down 6.9% from $5.8 billion in Q1 2024 [1][6]. - Earnings per share (EPS) was $0.60 (Non-GAAP), matching predictions but down 21.1% from $0.76 in the same quarter last year [2][3]. - Net income for Q1 2025 was $204 million (GAAP), a significant decrease of 66.3% from $606 million in Q1 2024 [3]. Business Overview - Halliburton is a leading oilfield services company providing a range of services to the energy industry, including reservoir management, drilling, and production optimization [4]. - The company is focusing on expanding its technological capabilities, particularly in digital and automation technologies, to improve service delivery and operational efficiency [5]. Segment Performance - The Completion and Production segment saw an 8% year-over-year revenue decline to $3.1 billion, with operating income falling by 23% [7]. - The Drilling and Evaluation segment experienced a 6% drop in revenue and a 12% decrease in operating income, primarily due to reduced drilling services in Mexico and the Middle East [7]. Geographic Performance - North America revenue decreased by 12%, driven by declining stimulation activity in the U.S. and lower tool sales in the Gulf of America [8]. - International markets saw an overall decline of 2%, with notable drops in Latin America, but growth in Europe/Africa and the Middle East/Asia segments [8]. Strategic Outlook - Halliburton remains optimistic about international tender activities, particularly in offshore opportunities extending through 2026 [10]. - The company plans to continue focusing on international market expansion and enhancing technological capabilities [10]. - Management emphasized maintaining a strong capital allocation framework, including ongoing share repurchases and dividend distributions [11].

Financial Data and Key Metrics Changes - Total company revenue for Q1 2025 was $5.4 billion, a decrease of 7% compared to Q1 2024 [28] - Adjusted operating margin was 14.5% [28] - Cash flow from operations was $377 million, and free cash flow was $124 million [7][35] - Reported net income per diluted share was $0.24, while adjusted net income per diluted share was $0.60 [27] Business Line Data and Key Metrics Changes - Completion and Production (C&P) division revenue was $3.1 billion, down 8% year-over-year, with operating income of $531 million, a decrease of 23% [29] - Drilling and Evaluation (D&E) division revenue was $2.3 billion, down 6% year-over-year, with operating income of $352 million, a decrease of 12% [30] - International revenue was $3.2 billion, a decrease of 2% year-over-year, while North America revenue was $2.2 billion, a decrease of 12% year-over-year [6][32] Market Data and Key Metrics Changes - Europe Africa revenue increased by 6% year-over-year to $775 million, driven by improved activity in Norway and Namibia [31] - Middle East Asia revenue also increased by 6% year-over-year to $1.5 billion, attributed to higher activity in Kuwait and Saudi Arabia [32] - Latin America revenue decreased by 19% year-over-year to $896 million, primarily due to lower activity in Mexico [32] Company Strategy and Development Direction - The company emphasizes technology, collaboration, and service quality as core to its competitive advantage [10][14] - Halliburton aims to maximize value in North America while driving growth engines internationally, particularly in unconventional, artificial lift, intervention, and directional drilling [15][19] - The company is focused on maintaining a strong position in the offshore market, leveraging advanced technologies for integrated projects [128][130] Management's Comments on Operating Environment and Future Outlook - Management noted increased uncertainty in the market due to trade dynamics and OPEC production, but remains confident in the fundamental role of oil and gas in global economic growth [8][11] - The outlook for international revenue is expected to be flat to slightly down, with strong tender activity and contract awards providing visibility [12][39] - Management anticipates solid free cash flow generation in 2025, with plans to return at least $1.6 billion to shareholders through buybacks and dividends [25] Other Important Information - The company recognized a pre-tax charge of $356 million related to severance costs and asset impairments [28] - Capital expenditures for Q1 were $302 million, with expectations of approximately 6% of revenue for the full year [35] Q&A Session Summary Question: North American activity outlook amidst commodity price volatility - Management indicated that customers are currently evaluating their activity scenarios, with a focus on production impacts from any potential declines in activity [45][48] Question: Trajectory of operations in Mexico - Management expressed that recovery in Mexico is uncertain, with expectations of a tough environment for the foreseeable future [51][52] Question: Growth prospects in Saudi Arabia - Management expects growth in Saudi Arabia, particularly in the Jafurah area, and highlighted opportunities in unconventional and artificial lift markets [57][58] Question: Margin progression expectations - Management provided guidance for Q2 margins, indicating specific impacts from tariffs and mobilization costs, with expectations for improvement in the second half of the year [60][66] Question: Impact of tariffs on business - Management noted a $0.02 to $0.03 impact per share from tariffs, with ongoing efforts to mitigate these effects through a diversified supply chain [94][96] Question: International spending outlook - Management highlighted solid growth in Norway and Brazil, with expectations for increased activity in Europe and Africa in the second half of the year [75][102]