Core Insights - Halliburton reported revenue of $5.51 billion for the quarter ended June 2025, a year-over-year decline of 5.5%, with EPS of $0.55 compared to $0.80 a year ago [1] - The reported revenue exceeded the Zacks Consensus Estimate of $5.44 billion, resulting in a surprise of +1.35%, while EPS met the consensus estimate [1] Revenue Breakdown - Latin America revenues were $977 million, exceeding the estimated $911.06 million, but reflecting a year-over-year decline of -10.9% [4] - Europe/Africa/CIS revenues reached $820 million, surpassing the estimated $769.7 million, with a year-over-year increase of +8.3% [4] - North America revenues were $2.26 billion, matching the estimate but showing a year-over-year decline of -9% [4] - Middle East/Asia revenues totaled $1.45 billion, slightly below the estimated $1.51 billion, with a year-over-year decline of -2.9% [4] - Drilling and Evaluation revenues were $2.34 billion, exceeding the estimate of $2.27 billion, but reflecting a year-over-year decline of -3.8% [4] - Completion and Production revenues were $3.17 billion, slightly below the estimate of $3.18 billion, with a year-over-year decline of -6.8% [4] Operating Income - Operating income for Completion and Production was $513 million, below the average estimate of $539.22 million [4] - Corporate and other reported an operating loss of $-66 million, better than the estimated loss of $-86.6 million [4] - Operating income for Drilling and Evaluation was $312 million, slightly below the estimate of $313.49 million [4] Stock Performance - Halliburton shares returned +8.6% over the past month, outperforming the Zacks S&P 500 composite's +4.6% change [3] - The stock currently holds a Zacks Rank 5 (Strong Sell), indicating potential underperformance in the near term [3]

Core Insights - Halliburton reported Q2 2025 GAAP revenue of $5.51 billion, exceeding expectations by 1.7%, but showed a 5.5% decline year-over-year [1][2][5] - Adjusted EPS for the quarter was $0.55, aligning with consensus estimates, while net income fell to $472 million, a decrease of 33.4% compared to the previous year [1][2][5] - The company faces margin pressures and a cautious outlook due to subdued demand in the oilfield services market [1][13] Financial Performance - Revenue for Q2 2025 was $5.51 billion, down from $5.83 billion in Q2 2024, reflecting a 5.5% year-over-year decline [2][5] - Operating margin decreased to 13% from 17.7% in the previous year, indicating ongoing profitability challenges [2][5] - Free cash flow dropped to $582 million, a 41.7% decrease from $999 million in Q2 2024 [2] - Net income for the quarter was $472 million, down from $709 million in the previous year, marking a 33.4% decline [2][5] Segment Performance - The Completions & Production segment generated $3.17 billion in revenue, an 8% decrease year-over-year, with operating income down 3% from Q1 2025 [6] - The Drilling & Evaluation segment reported $2.34 billion in revenue, down 3.8% year-over-year, with operating income decreasing 11% compared to Q1 2025 [7] - North America revenue was $2.26 billion, down 9% year-over-year, while Latin America and the Middle East/Asia regions also experienced declines [8][9] Strategic Focus - Halliburton operates in over 70 countries, focusing on oilfield services and products, with core segments in Completions & Production and Drilling & Evaluation [3][4] - The company emphasizes digital transformation, international growth, and sustainability, with capital expenditures targeted at 6% of revenue in 2024 [4] - Halliburton Labs has been expanded to support the transition to sustainable energy [4] Technological Advancements - The company launched EarthStar 3DX for enhanced geological insights and introduced automated drilling technologies in partnership with Nabors Industries [10] - A closed-loop hydraulic fracturing system was developed with Chevron U.S.A to improve well performance [10] Capital Management - Halliburton returned $250 million to shareholders through share repurchases and maintained a quarterly dividend of $0.17 per share [12] - Total capital expenditures for the quarter were $354 million, reflecting the company's commitment to capital discipline [11] Future Outlook - Management has adopted a cautious outlook, anticipating softer demand in the oilfield services sector and highlighting risks related to oil and gas price volatility [13]

Financial Data and Key Metrics Changes - Revenue for the second quarter of 2025 was $1,000 million, a 7% increase from $977 million in the prior quarter [19] - Net income rose to $71 million from $20 million in the previous quarter, while adjusted net income increased to $20 million from $7 million [19] - Adjusted EBITDA for the quarter was $181 million, up 8% from $168 million in the prior quarter [20] - General and administrative expenses decreased to $58 million from $66 million in the previous quarter [20] - The company ended the quarter with a cash balance of $20 million and net debt of $140 million, a decrease of $46 million from the prior quarter [20] Business Line Data and Key Metrics Changes - The company experienced increased activity across nearly all business lines, which helped offset pricing headwinds and softer conditions in the Permian sand markets [18] - The company is planning to reduce its deployed fleet count and reposition horsepower to support expanded demand for simul frac offerings [5][18] Market Data and Key Metrics Changes - The energy sector faced renewed uncertainty due to tariff policies, OPEC production changes, and geopolitical tensions [5] - Completions activity is expected to gradually slow in the second half of 2025, reflecting disciplined capital deployment and contributing to market pricing pressures [15] Company Strategy and Development Direction - The company is focusing on leveraging its full suite of completion products and services to drive increased engagement with customers [5] - Strategic alliances have been formed for power facility development in Pennsylvania and Colorado, addressing barriers faced by commercial and industrial developers [11] - The company is committed to innovation in high-efficiency, low-emission technologies, with advancements in its DigiPrime enhancement and the introduction of a sand slurry system [6][10] Management's Comments on Operating Environment and Future Outlook - Management noted that while the second quarter was strong, a reduction in activity is anticipated due to falling rig counts and pricing headwinds [38][42] - The company expects third-quarter revenue and EBITDA to soften sequentially, with a potential low single-digit pricing headwind [22][43] - Management expressed confidence in the company's ability to navigate market uncertainties and create value through strategic investments [23] Other Important Information - The company announced a $225 million increase in its credit facility to support strategic growth in power generation [21] - Total capital expenditures for 2025 are expected to be approximately $575 million, with a reduction in planned spending due to market conditions [22] Q&A Session Summary Question: Can you talk about the current supply chain for incremental capacity in power generation? - Management indicated that there is incremental capacity available, and they could significantly expand their order book for 2026 if desired [26][27] Question: How do you view the relationship with Aqua regarding long-term power solutions? - Management stated that the partnership provides a bridge for immediate power needs until SMRs can be deployed, with a focus on flexibility and reliability [30][32] Question: What is the outlook for revenue and EBITDA in the third quarter? - Management expects a mid-single-digit reduction in activity and low single-digit pricing headwinds, with more clarity on fourth-quarter expectations to come [38][43] Question: Can you clarify the CapEx reduction and its components? - Management noted that the reduction is approximately split between frac and power generation delays, with no significant concerns about delivery times [66][67] Question: What is the expected timeline for revenue from the Oklo partnership? - Management anticipates revenue from initial power generation to begin in 2027, with nuclear power revenue expected in the early 2030s [108]

Group 1 - The article discusses the investment strategies of Vasily Zyryanov, focusing on identifying underpriced equities with strong upside potential and overappreciated companies with inflated valuations [1] - Zyryanov emphasizes the importance of analyzing Free Cash Flow and Return on Capital in addition to profit and sales analysis to gain deeper insights into investment opportunities [1] - The research covers a wide range of industries, with a particular focus on the energy sector, including oil & gas supermajors, mid-cap, and small-cap exploration & production companies, as well as oilfield services firms [1] Group 2 - The article highlights that while Zyryanov favors underappreciated and misunderstood equities, he also recognizes that some growth stocks may warrant their premium valuations [1] - The primary goal for investors is to investigate whether the market's current opinions on valuations are accurate [1]

Core Viewpoint - NCS Multistage Holdings, Inc. will discuss its second quarter 2025 results in a conference call scheduled for August 1, 2025, at 7:30 a.m. Central Time [1] Company Overview - NCS Multistage Holdings, Inc. is a leading provider of engineered products and support services for optimizing oil and natural gas well construction, completions, and field development strategies [3] - The company primarily serves exploration and production companies for both onshore and offshore wells, focusing on those drilled with horizontal laterals in unconventional and conventional formations [3] - NCS's products and services are utilized across various oil and natural gas basins in North America and selected international markets, including the North Sea, Middle East, Argentina, and China [3] - The company's common stock is traded on the Nasdaq Capital Market under the symbol "NCSM" [3]

Core Viewpoint - Drilling Tools International Corp. (DTI) is set to report its second quarter financial results for 2025 on August 14, 2025, with a live conference call available for stakeholders [1][2]. Company Overview - DTI is a leading oilfield services company based in Houston, Texas, specializing in the manufacturing and rental of downhole drilling tools for horizontal and directional drilling of oil and natural gas wells [3]. - The company has been operational since 1984 and has a network of 15 service and support centers in North America, along with 11 international centers across the EMEA and APAC regions [3].

Financial Data and Key Metrics Changes - Total reported revenue for the quarter was $1,219 million, with a net loss attributable to common shareholders of $49 million or $0.13 per share, which included a $28 million impairment related to drilling operations in Colombia [21] - Adjusted EBITDA for the quarter totaled $231 million, and the company generated $70 million of adjusted free cash flow in the first half of the year [21][22] - The company closed the quarter with $186 million in cash and an undrawn $500 million revolving credit facility, with expectations for free cash flow in the second half of the year to significantly exceed dividends [14][29] Business Line Data and Key Metrics Changes - In the Drilling Services segment, revenue was $404 million with an adjusted gross profit of $149 million, operating an average of 104 rigs [23] - Completion Services segment revenue totaled $719 million with an adjusted gross profit of $100 million, despite some calendar gaps in dedicated fleets [24] - Drilling Products segment revenue was $88 million with an adjusted gross profit of $39 million, showing improvements in both U.S. and international markets [25] Market Data and Key Metrics Changes - The U.S. market saw revenue improve compared to the prior quarter, delivering a record U.S. revenue per industry rig, while international revenue remained steady with increases in key markets like the Middle East [18] - Canadian markets performed well despite seasonal impacts, with significant traction for the Maverick drill bit in the market [19] - The company expects an average rig count in the mid-90s for the third quarter, with potential stabilization in the fourth quarter [24][65] Company Strategy and Development Direction - The company is focused on leveraging its differentiated commercial strategy, operational footprint, and growing technology portfolio to create long-term value for shareholders [11][12] - Investments in digital technology and automation are expected to enhance operational efficiency and customer relationships, positioning the company as a leader in the oilfield services market [12][35] - The strategic vision post-merger includes deeper integration and automation, aiming to deliver value beyond capital equipment [13] Management's Comments on Operating Environment and Future Outlook - Management noted that macroeconomic conditions remain unsettled, with oil prices stabilizing in the mid-sixties, which is encouraging for future drilling activity [7][8] - There are expectations for increased natural gas activity as LNG facilities come online, with a positive long-term outlook for U.S. LNG volumes [10][34] - The company remains optimistic about the future, believing that investments made in technology and digital services will yield significant benefits [35] Other Important Information - The company returned $46 million to shareholders during the quarter, including dividends and share repurchases, and has reduced its share count by 8% since the merger [22] - Capital expenditures for the second quarter were $144 million, with expectations for less than $600 million in total capital expenditures for 2025 [27][28] - The company is exploring ways to best utilize cash to create long-term value for shareholders [29] Q&A Session Summary Question: What is the outlook for completion activity in Q4? - Management indicated that while there may be some moderation in Q4, it is too early to predict a steep decline, and they are encouraged by the current activity levels [41][42] Question: Can you provide more details on the third quarter outlook for completion services? - Management stated that completion activity is expected to remain steady, with no significant commentary on specific basins at this time [50] Question: What are the expectations for gas-directed activity in 2026? - Management anticipates an increase in gas activity next year based on discussions with customers and the demand for LNG volumes [57][58] Question: How is the pricing dynamic for low-emission gas-burning assets? - Management noted that their Emerald fleet, which burns 100% natural gas, is in high demand and continues to command premium pricing [67][68] Question: What is the company's strategy regarding technology investments and potential M&A? - Management emphasized ongoing investments in digital platforms and automation, with potential for future acquisitions to enhance technology offerings [52][53]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $130.2 million, up 5% from Q1 2025 and flat year-over-year [13] - Operating income increased to $14.5 million, up from $11.8 million in Q1 2025, yielding an EBIT margin of over 11% [18] - Net income, excluding items, was $8.8 million, an increase from $6.7 million in the prior quarter but a decrease from $10.4 million in the same quarter last year [19] - Earnings per diluted share, excluding items, was $0.19, up from $0.14 in Q1 2025 and down from $0.22 last year [20] Business Line Data and Key Metrics Changes - Reservoir Description revenue was $86.3 million, up 7% compared to Q1 2025, with operating margins at 13%, up from 10% in Q1 [7][39] - Production Enhancement revenue was $43.9 million, up 3% compared to Q1 2025, with operating margins at 9%, up from 8% in Q1 [9][42] Market Data and Key Metrics Changes - International product sales increased by 25% sequentially, driven by bulk shipments and increased laboratory instrumentation sales [14] - Demand for product sales decreased in the U.S. onshore market but was offset by higher international sales [15] Company Strategy and Development Direction - The company focuses on technology investments to solve client problems and capitalize on technical and geographic opportunities [7] - Core Laboratories aims to maximize free cash flow, return on invested capital, and return excess free cash to shareholders [11] - The company plans to introduce new products and services in key geographic markets while maintaining a lean organization [10] Management's Comments on Operating Environment and Future Outlook - Management maintains a constructive long-term outlook for international upstream activity despite near-term volatility in crude oil prices [28] - The company anticipates that changes in crude oil prices will have a more immediate impact on U.S. onshore activity levels [30] - Core Laboratories expects third-quarter revenue to range from $127.5 million to $134.5 million, with operating income projected between $13.6 million and $16.2 million [32] Other Important Information - The company repurchased over 237,000 shares during Q2 2025, valued at $2.7 million [9] - Core's net debt was reduced by more than $9 million, with a leverage ratio of 1.27, the lowest in eight years [9][22] Q&A Session Summary Question: Additional details on the new proppant design partnered with a West Texas operator - The engagement focused on testing different designs of proppant particle size and sorting, confirming better results with the new design [48] Question: Insights on new product or service offerings, particularly in The Middle East - The company is focused on formation damage testing and has opened an unconventional laboratory in Dammam, Saudi Arabia, to support growing opportunities in unconventional resource development [52][53]

Financial Performance - Total Company revenue increased by 13% to $2.5 billion[11], driven by growth in both Subsea and Surface Technologies segments[11] - Total Company adjusted EBITDA was $509 million, excluding foreign exchange impacts[9, 11] - Free cash flow reached $261 million[9, 11] - Total shareholder distributions amounted to $271 million, including $250 million in share repurchases[11] - The company repaid 200 million euro of maturing debt, reducing gross debt to $696 million[11] Orders and Backlog - Total Company inbound orders were $2.8 billion, with Subsea orders at $2.6 billion, resulting in a book-to-bill ratio of 1.2x[8] - Subsea orders are expected to exceed $10 billion in 2025[8] - Total Company backlog increased sequentially to $16.6 billion, with Subsea backlog growing to $15.8 billion[8] Segment Results - Subsea revenue for Q2 2025 was $2.216 billion, a 14% increase QoQ and 10% increase YoY[10] - Subsea adjusted EBITDA was $483 million, with a margin of 21.8%[10] - Surface Technologies revenue for Q2 2025 was $318 million, a 7% increase QoQ and 1% increase YoY[10] - Surface Technologies adjusted EBITDA was $52 million, with a margin of 16.4%[10] Guidance - The company anticipates full-year 2025 revenue for Subsea to be in the range of $8.4 - $8.8 billion[19] and for Surface Technologies to be in the range of $1.2 - $1.35 billion[16] - The company expects full-year 2025 adjusted EBITDA margin for Subsea to be in the range of 19 - 20%[19] and for Surface Technologies to be in the range of 15 – 16%[16] - The company projects full-year 2025 free cash flow to be in the range of $1.0 - $1.15 billion[19]

Core Insights - RPC, Inc. reported a 26% sequential increase in revenues for Q2 2025, totaling $420.8 million, driven by the acquisition of Pintail Completions, despite challenges in the pressure pumping service line [6][10][12] - The oilfield services market is facing challenges due to lower commodity prices and macroeconomic uncertainties, but RPC's diversified service lines and customer base provided some resilience [5][10] Financial Performance - Revenues for pressure pumping, RPC's largest service line, decreased by 18%, while other service lines, excluding Pintail's wireline, saw increases [6][10] - Net income was reported at $10.1 million, down 16% sequentially, with diluted EPS at $0.05, reflecting a net income margin decrease of 120 basis points to 2.4% [10][12] - Adjusted net income increased by 46% sequentially to $17.5 million, with adjusted diluted EPS at $0.08, and an adjusted net income margin increase of 60 basis points to 4.2% [10][13] Cost and Expenses - Cost of revenues increased by 30% to $317.7 million, primarily due to the addition of Pintail, offset by lower pressure pumping activity [7][10] - Selling, general and administrative expenses decreased to $40.8 million, down from $42.5 million, with a reduction in employment costs contributing to a decrease in SG&A as a percentage of revenues [8][10] Acquisition Impact - The acquisition of Pintail Completions, effective April 1, 2025, contributed $98.9 million in revenues, significantly impacting RPC's financial results [10][12] - Acquisition-related employment costs were approximately $6.6 million during Q2 2025, with total expected costs of $78.6 million to be recognized over 12 quarters [9][10] Industry Context - The average U.S. rig count decreased to 571 in Q2 2025, down 2.9% from Q1 2025 and 5.3% year-over-year [5][10] - Oil prices averaged $64.74 per barrel, a decline of 10% sequentially and 20.8% year-over-year, while natural gas prices fell by 22.7% sequentially to $3.20 per Mcf [5][10] Cash Flow and Capital Allocation - Cash and cash equivalents at the end of Q2 2025 were $162.1 million, with net cash provided by operating activities at $92.9 million and free cash flow at $17.6 million year-to-date [14][15] - The company declared a quarterly cash dividend of $0.04 per share, payable on September 10, 2025 [15]