Core Insights - STEP Energy Services Ltd. reported a consolidated revenue of $227.2 million for Q3 2025, a decrease of 11% from $256.0 million in Q3 2024, but consistent with $228.0 million in Q2 2025 [5][26]. - The company achieved a net income of $6.8 million in Q3 2025, compared to a net loss of $5.5 million in Q3 2024, and an increase from $5.9 million in Q2 2025 [12][5]. - Adjusted EBITDA for Q3 2025 was $45.2 million, representing 20% of revenue, down from $49.4 million (19% of revenue) in Q3 2024 but up from $34.8 million (15% of revenue) in Q2 2025 [11][8]. - Free Cash Flow for Q3 2025 was $23.3 million, lower than $28.4 million in Q3 2024 but higher than $17.3 million in Q2 2025 [13][8]. Financial Review - Consolidated revenue for the nine months ended September 30, 2025, was $762.9 million, down 6% from $807.5 million in the same period of 2024 [26]. - The company reported total operating expenses of $194.6 million for Q3 2025, a decrease from $229.5 million in Q3 2024 [25]. - The net debt decreased to $36.3 million as of September 30, 2025, from $52.7 million at the end of 2024 [13][8]. Operational Review - Fracturing operating days decreased to 345 in Q3 2025 from 360 in Q3 2024, with proppant pumped down to 524,000 tonnes from 594,000 tonnes in the same period [4][10]. - Coiled tubing operating days were 1,260 in Q3 2025, down from 1,340 in Q3 2024 [4][10]. - The company operated six fracturing crews in Q3 2025, down from seven in the same period last year [27]. Market Outlook - The fourth quarter of 2025 is expected to start strong, with high utilization anticipated in the first half before slowing down due to annual capital program wind-downs [20]. - The long-term outlook for oilfield services remains positive, with expected growth in LNG export capacity in North America [23].

Core Insights - DNOW reported $634 million in revenue for Q3 2025, a year-over-year increase of 4.6% and an EPS of $0.26, up from $0.21 a year ago [1] - The revenue fell short of the Zacks Consensus Estimate of $639.2 million by 0.81%, while the EPS exceeded the consensus estimate of $0.24 by 8.33% [1] Revenue Performance - Geographic Revenue in the United States was $527 million, slightly below the average estimate of $527.25 million, reflecting a year-over-year increase of 9.3% [4] - Geographic Revenue from Other International markets was $54 million, below the estimated $56.25 million, representing a year-over-year decline of 8.5% [4] - Geographic Revenue from Canada was reported at $53 million, compared to the average estimate of $55.75 million, indicating a significant year-over-year decrease of 18.5% [4] Stock Performance - DNOW shares have returned -5.9% over the past month, contrasting with a +1% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance relative to the broader market in the near term [3]

Core Viewpoint - SLB has been gaining attention as one of the most searched stocks, with its performance influenced by various fundamental factors [1][2]. Earnings Estimates Revisions - SLB is expected to report earnings of $0.74 per share for the current quarter, reflecting a year-over-year decrease of 19.6% [5]. - The consensus earnings estimate for the current fiscal year is $2.89, indicating a year-over-year decline of 15.3% [5]. - For the next fiscal year, the consensus estimate is $2.95, showing a slight increase of 1.9% compared to the previous year [6]. Revenue Growth Forecast - The consensus sales estimate for SLB in the current quarter is $9.53 billion, representing a year-over-year growth of 2.7% [11]. - The revenue estimates for the current and next fiscal years are $35.53 billion (a decrease of 2.1%) and $37.44 billion (an increase of 5.4%), respectively [11]. Last Reported Results and Surprise History - In the last reported quarter, SLB's revenues were $8.93 billion, down 2.5% year-over-year, with an EPS of $0.69 compared to $0.89 a year ago [12]. - SLB surpassed consensus EPS estimates three times and revenue estimates two times over the last four quarters [13]. Valuation - SLB is graded A on the Zacks Value Style Score, indicating it is trading at a discount compared to its peers [17]. - Valuation multiples such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF) are essential for assessing whether SLB's stock is fairly valued [15][16]. Conclusion - SLB's Zacks Rank 3 suggests it may perform in line with the broader market in the near term, despite the market buzz surrounding it [18].

Core Insights - Coterra Energy Inc. (CTRA) reported third-quarter 2025 adjusted earnings per share of 39 cents, missing the Zacks Consensus Estimate of 41 cents, primarily due to weaker oil and NGL realizations and a 30.1% increase in operating expenses, although the earnings improved from 30 cents in the same quarter last year [1][2] Financial Performance - Operating revenues for Coterra reached $1.8 billion, exceeding the Zacks Consensus Estimate by $60 million, driven by stronger-than-expected oil, NGL, and other revenues, despite a 33.7% decrease from the previous year due to lower contributions from derivative gains [2] - Cash flow from operations increased by 28.6% to $971 million, supporting a free cash flow of $533 million for the quarter [12][10] - The company declared a quarterly cash dividend of 22 cents per share, consistent with the previous quarter, to be paid on November 26, 2025 [3] Production and Pricing - Average daily production rose 17.3% year-over-year to 785 thousand barrels of oil equivalent (Mboe), surpassing the Zacks Consensus Estimate of 781 Mboe [6] - Oil production increased by 50.3% to 166.8 thousand barrels (MBbl) per day, slightly exceeding the consensus estimate, while natural gas production decreased by 7.3% to 2,894.6 million cubic feet (Mmcf) per day, falling short of expectations [7] - The average realized price for crude oil was $64.10 per barrel, a 13.4% decrease from the prior year, while the average realized natural gas price rose to $1.95 per thousand cubic feet [8][9] Costs and Expenses - Total operating expenses increased to $1,347 million from $1,035 million in the prior year, driven by higher costs including a 10.3% rise in depreciation, depletion, and amortization expenses [11] - The average unit cost rose to $19.33 per barrel of oil equivalent from $16.96 the previous year [10] Financial Position - As of September 30, 2025, Coterra had $98 million in cash and cash equivalents, with total liquidity of approximately $2.1 billion and a long-term debt of $4.2 billion, resulting in a debt-to-capitalization ratio of 20% [13] Guidance - Coterra expects 2025 capital expenditures of roughly $2.3 billion and has raised its full-year production outlook to 772-782 Mboepd, with specific fourth-quarter guidance indicating continued operational strength [14][15]

Financial Data and Key Metrics Changes - The company's revenue for Q3 2025 was $240 million, representing a sequential increase of $16 million and a year-over-year increase of 58% [5][12] - Adjusted EBITDA for Q3 was $44 million, a decrease of $3 million sequentially, with an adjusted EBITDA margin of 18%, down from 21% sequentially [12][13] - Free cash flow for Q3 was $37 million, a sequential decrease of $15 million, with a year-to-date free cash flow of $112 million, reflecting a conversion rate of approximately 83% from adjusted EBITDA [16][17] Business Line Data and Key Metrics Changes - North America land business grew approximately 10% sequentially, driven by market share gains in drilling enhancement and well construction portfolios, and the full quarter contribution from Citadel [6][14] - International and offshore revenue grew 4% sequentially, despite softness in key markets like Mexico and Saudi Arabia [7][15] - The subsea services-related revenue in the U.S. offshore market reached a record high in Q3, indicating strong operational execution [7] Market Data and Key Metrics Changes - The company experienced growth in the Latin American market, particularly in Argentina, where sales of dissolvable plug technology increased [9] - In the Middle East, the company participated in the longest well ever drilled, showcasing its technology capabilities [8] - The Asia-Pacific market showed momentum with significant orders for subsea equipment scheduled for delivery in 2026 and 2027 [9] Company Strategy and Development Direction - The company aims to achieve adjusted EBITDA margins of 25% in the long term, with ongoing integration efforts and operational improvements expected to drive margin expansion [11][19] - The successful integration of Citadel is a key strategic initiative, enhancing market share and operational reliability [11][68] - The partnership with OneSubsea is expected to open new market opportunities and enhance competitiveness in the subsea space [10][29] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging market environment but expressed confidence in the company's ability to execute its strategy and drive growth [4][21] - The exit from the Eldridge facility is anticipated to unlock significant margin improvements in 2026 [13][19] - Management expects adjusted EBITDA for Q4 to be between $42 million and $47 million, with revenues projected at $235 million to $245 million [19] Other Important Information - The company has a strong balance sheet with cash and equivalents totaling $163 million and no drawn amounts on its revolving credit facility [18] - Capital expenditures in Q3 were $12 million, representing approximately 5% of revenue, with expectations for CapEx to remain slightly above historical levels through the end of the year [17][18] Q&A Session Summary Question: Inquiry about downhole operational issues - Management confirmed robust improvements have been made to address previous operational issues, with plans to run jobs with the improved tool soon [24][25] Question: Details on the OneSubsea agreement - Management expressed excitement about the OneSubsea partnership, indicating that initial orders may come in late this year or early next year, with revenue recognition expected to begin in 2027 [27][29] Question: Impact of facility consolidations on margins - Management indicated that exiting the Eldridge facility will unlock significant savings and improve margins, with further consolidation efforts expected to enhance operational efficiency [34][35] Question: Market conditions in Saudi Arabia - Management noted positive signs for increased activity in Saudi Arabia, with expectations for a return to growth in the market [40][41] Question: Preference for M&A versus share buybacks - Management indicated a preference for pursuing accretive M&A opportunities while balancing shareholder returns, with a strong pipeline of potential acquisitions under review [41][42] Question: Timing for mid-20% margin target - Management expects to reach low-20s EBITDA margins by mid-next year, with potential for improvement depending on market conditions [45][48] Question: Update on integration with Citadel - Management reported successful integration with Citadel, highlighting the growth of niche technologies and cross-selling opportunities [66][68] Question: Impact of tariffs on business - Management discussed the challenges posed by tariffs but emphasized the company's flexible business model to manage costs effectively [70][72]

Q3 2025 Performance - Revenue reached $240 million, a 7% sequential increase[22] - Adjusted EBITDA stood at $44 million with an Adjusted EBITDA Margin of 18%[28] - Free Cash Flow was $37 million[28] Q4 2025 Guidance - Projected revenue is between $235 million and $245 million[28] - Anticipated Adjusted EBITDA ranges from $42 million to $47 million[28] Strategic Initiatives - Innovex closed the sale of the Eldridge Facility for $90 million[29, 38] with net proceeds of $87 million[31, 38] - The Eldridge Facility sale resulted in an 80% footprint reduction[31] Financial Health & Returns - Historically, only 2-3% of revenue is reinvested into capex[11] - 84% of Adjusted EBITDA was converted into Free Cash Flow in Q3[38] - The company has approximately $90.7 million remaining under its buyback authorization[38] Growth & Market Position - Legacy Innovex has a disciplined revenue growth with a 27% CAGR since inception[18] - On-Time Delivery for subsea operations improved to 76% in Q3 2025 from below 50% in Q3 2024[38]

Core Viewpoint - Michael Burry's hedge fund, Scion Asset Management, has made significant bearish bets on Nvidia and Palantir Technologies, indicating concerns about potential market bubbles driven by AI hype [1][4]. Group 1: Investment Positions - Scion disclosed a put option on Nvidia equivalent to 1 million shares, valued at approximately $186.6 million, and a put option on Palantir equivalent to 5 million shares, worth around $912 million [1]. - The fund held no positions in Nvidia or Palantir in the previous quarter, marking a notable shift in Burry's investment strategy [4]. - Scion's portfolio included call options on Halliburton and Pfizer, along with shares in Lululemon, Bruker, Molina Healthcare, and SLM Corp, reducing its total positions from 15 to 8 by the end of September [5]. Group 2: Market Context - Nvidia has seen a 54% increase in stock price this year, becoming the world's first company to reach a $5 trillion market cap, while Palantir's stock has surged 174% amid rising AI and defense spending [3]. - The recent trades come amid discussions about whether the AI boom has inflated stock valuations, as the S&P 500 and Nasdaq 100 indexes reach record highs [4].

Group 1: Investment Moves by Scion Asset Management - Scion Asset Management, led by billionaire investor Michael Burry, purchased five million put options on Palantir Technologies, Inc. (NASDAQ:PLTR) and one million put options on NVIDIA Corp. (NASDAQ:NVDA) [1] - Burry's bearish position in Palantir has a market value of $912.1 million, while the Nvidia puts are valued at $186.58 million [2] Group 2: Portfolio Adjustments - The updated 13F filing reveals that Scion added 50,000 shares of Lululemon Athletica, Inc. (NASDAQ:LULU), opened a 125,000 share position in Molina Healthcare, Inc. (NYSE:MOH), and a 480,000 share position in SLM Corp. (NASDAQ:SLM) [5] - Additionally, Burry purchased 2.5 million calls on Halliburton Co. (NYSE:HAL) and six million calls on Pfizer, Inc. (NYSE:PFE) [5] Group 3: Closed Positions - Scion Asset Management closed its positions in Estee Lauder Companies, Inc. (NYSE:EL), Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN), MercadoLibre, Inc. (NASDAQ:MELI), and UnitedHealth Group, Inc. (NYSE:UNH) [6] Group 4: Market Commentary - Burry referenced an AI bubble in a post, comparing Cloud segment growth for major tech companies from 2018 to 2022 with the current period [3] - He shared charts illustrating AI deals among Nvidia, OpenAI, Oracle Corp. (NYSE:ORCL), and others, as well as AI capital expenditures matching the tech spending of the 1999-2000 tech bubble [4]

Core Insights - SLB has launched a new AI tool named Tela to automate processes for oilfield service companies, aiming to leverage AI for growth [1][2] - Tela can operate collaboratively with humans or autonomously, making decisions on interpreting well logs, predicting drilling issues, and optimizing equipment performance [2] - The digital sector has significantly contributed to SLB's revenue growth, with an 11% increase in the third quarter compared to the second quarter [3] Group 1 - SLB's new technology, Tela, will be integrated into its existing applications and platforms, featuring a conversational interface for user interaction [1] - Rakesh Jaggi, SLB's president of Digital & Integration, emphasized the importance of digital technology for the company's long-term success [2] - The digital business has been reported as a standalone division, with expectations of double-digit year-on-year sales growth [3]

Core Insights - Jefferies initiated coverage of Chime (CHYM) with a Hold rating and a price target of $17, citing challenges for near-term re-rating due to slowing growth and lack of valuation support until GAAP margins improve [1] - Goldman Sachs initiated coverage of Alliance Laundry (ALH) with a Buy rating and a price target of $32, highlighting the company's strong track record in innovation and quality, which supports above-average growth in the commercial laundry market [1] - BMO Capital initiated coverage of Phoenix Education (PXED) with an Outperform rating and a price target of $45, recognizing the University of Phoenix as a pioneer in the working adult market [1] - Rothschild & Co Redburn initiated coverage of SLB (SLB) with a Buy rating and a price target of $48, identifying catalysts such as earnings upgrades and rising free cash flow that could drive a re-rating [1] - RBC Capital initiated coverage of Revolution Medicines (RVMD) with an Outperform rating and a price target of $77, noting the company's strong positioning in targeting RAS across oncology due to impressive efficacy data and a robust pipeline [1] Company Summaries - **Chime (CHYM)**: Leading U.S. neo-bank with 9 million active members; facing challenges for near-term stock re-rating due to slowing growth and lack of valuation support [1] - **Alliance Laundry (ALH)**: Supported by a strong track record of innovation and quality, positioned for above-average growth in the commercial laundry market [1] - **Phoenix Education (PXED)**: Recognized for its pioneering role in the working adult education market, with an Outperform rating from BMO Capital [1] - **SLB (SLB)**: Identified as having several catalysts for re-rating, including earnings upgrades and increasing free cash flow [1] - **Revolution Medicines (RVMD)**: Positioned well in oncology with a focus on targeting RAS, backed by impressive efficacy data and a strong development pipeline [1]