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]

Core Company Overview - Core Laboratories Inc. reported second quarter 2025 revenue of $130.2 million, reflecting a 5% sequential increase and flat year-over-year performance [8][30] - The company's operating income was $15.3 million, with earnings per diluted share (EPS) of $0.22, while operating income excluding items was $14.5 million, yielding operating margins of 11% [8][30] - Free cash flow for the quarter was $10.4 million, up over 160% sequentially, and the company repurchased 237,632 shares valued at $2.7 million [8][11] Segment Performance - Reservoir Description segment generated revenue of $86.3 million, up 7% sequentially and flat year-over-year, with operating income of $12.2 million [3][30] - Production Enhancement segment reported revenue of $43.9 million, a 3% sequential increase but flat year-over-year, with operating income of $3.1 million [6][30] Strategic Initiatives - Core Lab opened a new Unconventional Core Analysis Laboratory in Dammam, Saudi Arabia, enhancing its service capabilities in the Middle East [4] - The company completed a comprehensive analytical program for a major International Oil Company in the Campos Basin, Brazil, reinforcing its role as a trusted technical partner [5] Financial Health - As of June 30, 2025, Core's net debt was $94.8 million, reduced by $9.1 million during the quarter, with a leverage ratio of 1.27, the lowest in eight years [12][13] - The company renewed its credit agreement, expanding to include a $100 million revolving credit facility and a $50 million delayed draw term loan [13] Market Outlook - Despite geopolitical challenges and softer U.S. land activity, Core maintains a positive long-term outlook for international upstream activity, with forecasts for crude oil demand growth between 0.7 and 1.3 million barrels per day in 2025 [19][20] - The company anticipates that large-scale international oil and gas projects will remain less sensitive to near-term crude oil price volatility [20]

Financial Data and Key Metrics Changes - The company reported adjusted EBITDA margins for Q2 at 21.1%, slightly declining relative to Q1 [9] - Adjusted free cash flow was $79 million in Q2, with a free cash flow conversion rate of 31.1%, up from 26.1% in Q1 [20] - The company has paid four quarterly dividends of $0.25 per share and repurchased approximately $186 million worth of shares over the past four quarters [10] Business Line Data and Key Metrics Changes - North America and Latin America revenues were down sequentially, with North America affected by seasonal spring breakup in Canada and Latin America impacted by Argentina divestitures [7] - The ESSR region saw growth due to project startups in Europe, further amplified by foreign exchange [8] - The company expects a decline in international revenues by low double to mid double digits for 2025, adjusting for Mexico activity declines and Argentina divestitures [17] Market Data and Key Metrics Changes - The overall international market has softened over the past year, with expectations of continued pressure into 2026 [13] - The Kingdom of Saudi Arabia market has softened, with a decline in rig count affecting performance [36] - The company anticipates sluggish activity levels in 2025 and 2026 due to global trade reductions and increased supply [15] Company Strategy and Development Direction - The company is focused on defending margins and maximizing cash generation while adapting to evolving market conditions [29] - A multiyear cost optimization program is in place to achieve sustainable productivity gains through technology and lean processes [31] - The company is exploring M&A opportunities, particularly in well construction and production segments, with a focus on value creation [73] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate market disruptions, citing a strong balance sheet and liquidity of $1.3 billion [30] - The company expects continued market headwinds for at least another twelve months, with a potential recovery in the second half of 2026 [15] - Management remains hopeful for a slight uptick in Q4 but acknowledges the broader slowdown [25] Other Important Information - The company has reduced its headcount by over 1,500 and lowered annualized personnel expenses by more than $125 million since 2024 [16] - Capital expenditures (CapEx) were $54 million in Q2, down from $77 million in Q1, with expectations for further declines [23] - The company has a net leverage ratio of less than 0.5 times and approximately $1 billion in cash and restricted cash [24] Q&A Session Summary Question: Insights on Saudi Arabia's market transition - Management noted a steady decline in rig count and emphasized the importance of technology introduction and strong execution to drive performance [36][38] Question: Clarification on Q4 guidance - Management explained that the Q4 guidance includes expected seasonal sales and project startups, although year-end sales may be muted due to uncertainty [46][47] Question: U.S. Land market challenges - Management acknowledged a steady decline in U.S. Land, primarily driven by tariff impacts, and emphasized a focus on defending margins [52][54] Question: Stability in Mexico's market - Management expressed cautious optimism about stability in Mexico, with expectations for a ramp in activity levels in the second half of the year [63][66] Question: M&A opportunities and balance sheet strategy - Management highlighted a robust pipeline for M&A opportunities, focusing on strategic fits that create value through cash flow accretion [73][75]

Q2'25 Financial Performance - Weatherford's Q2'25 revenue reached $1,204 million, a 1% sequential increase[7] - Adjusted EBITDA* was $254 million, with a margin of 21.1%[7] - Adjusted Free Cash Flow* stood at $79 million, representing a 31.1% conversion on Adjusted EBITDA*[7] - Net income was $136 million, resulting in basic earnings per share of $1.87[11] Segment Performance - Drilling & Evaluation (DRE) revenue was $335 million, a 4% sequential decrease and a 22% year-over-year decrease[66] - Well Construction & Completions (WCC) revenue reached $456 million, a 3% sequential increase but a 10% year-over-year decrease[70] - Production & Intervention (PRI) revenue was $327 million, a 2% sequential decrease and an 11% year-over-year decrease[73] Capital Allocation and Balance Sheet - Weatherford repurchased $27 million of 8.625% Senior Notes due 2030 in Q2'25[8] - Shareholder return in Q2'25 totaled $52 million, including $18 million in dividends and $34 million in share repurchases[10] - The company maintains a strong liquidity position with ~$1 billion in cash and restricted cash[14] - Net leverage* is at 0.49x[11] Outlook - The company projects Q3'25 revenues between $1,165 million and $1,195 million and Adjusted EBITDA* between $245 million and $265 million[84] - For the full year 2025, Weatherford anticipates revenues of $47 billion to $49 billion and Adjusted EBITDA* of $1015 billion to $1060 billion[84]

Halliburton Co., the biggest fracking company, just brushed aside any doubts about whether growth is slowing in the US shale patch https://t.co/tWVLjHiKzQ ...

Core Viewpoint - Weatherford International plc reported its second quarter 2025 financial results, showing a mixed performance with sequential improvements in several metrics but declines year-over-year due to market challenges and geopolitical factors. Financial Performance - Revenues for Q2 2025 were $1,204 million, a 1% increase sequentially but a 14% decrease year-over-year [2] - Operating income was $237 million, up 67% sequentially but down 10% year-over-year [2] - Net income reached $136 million with an 11.3% margin, reflecting a 79% sequential increase and a 9% year-over-year increase [2] - Adjusted EBITDA was $254 million, flat sequentially and down 30% year-over-year, with a margin of 21.1% [2] - Basic and diluted income per share were both $1.87, marking an 81% sequential increase and a 10% year-over-year increase [2] Cash Flow and Capital Expenditures - Cash flows from operating activities were $128 million, down 10% sequentially and 15% year-over-year [3] - Adjusted free cash flow was $79 million, a 20% sequential increase but an 18% year-over-year decrease [3] - Capital expenditures totaled $54 million, down 30% sequentially and 13% year-over-year [3] Operational Insights - The company faced a slowdown in core operating markets due to geopolitical events and supply-demand imbalances, yet managed to deliver results in line with expectations [4] - The sequential performance indicated strong fundamentals and operational efficiency despite market softness [4] - The company emphasized its focus on driving adjusted free cash flow conversion through portfolio optimization and cost efficiencies [5] Segment Performance - Drilling and Evaluation (DRE) segment revenue was $335 million, down 4% sequentially and 22% year-over-year [12] - Well Construction and Completions (WCC) segment revenue was $456 million, up 3% sequentially but down 10% year-over-year [14] - Production and Intervention (PRI) segment revenue was $327 million, down 2% sequentially and 11% year-over-year [18] Geographic Revenue Breakdown - North America revenue was $241 million, down 4% sequentially and year-over-year [21] - International revenue was $963 million, up 2% sequentially but down 16% year-over-year [22] - Latin America revenue decreased by 19% sequentially and 45% year-over-year to $195 million [23] - Middle East/North Africa/Asia revenue increased by 4% sequentially but decreased by 3% year-over-year to $524 million [24] - Europe/Sub-Sahara Africa/Russia revenue increased by 23% sequentially but decreased by 5% year-over-year to $244 million [25] Shareholder Returns - The company returned $52 million to shareholders in Q2 2025, including $18 million in dividends and $34 million in share repurchases [10] - A quarterly cash dividend of $0.25 per share was declared, payable on September 4, 2025 [11]

Core Viewpoint - The market anticipates a year-over-year decline in earnings for Precision Drilling due to lower revenues, with a focus on how actual results compare to estimates [1][3]. Earnings Expectations - Precision Drilling is expected to report a quarterly loss of $0.02 per share, reflecting a significant year-over-year change of -101.9% [3]. - Revenues are projected to be $290.53 million, which is a decrease of 7.4% from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised 16.67% lower in the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate aligns with the Zacks Consensus Estimate, resulting in an Earnings ESP of 0% [12]. Earnings Surprise Prediction - A positive Earnings ESP is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [10]. - Precision Drilling currently holds a Zacks Rank of 3, making it challenging to predict an earnings beat conclusively [12][13]. Historical Performance - In the last reported quarter, Precision Drilling was expected to post earnings of $1.57 per share but delivered $1.53, resulting in a surprise of -2.55% [14]. - Over the past four quarters, the company has beaten consensus EPS estimates two times [15]. Market Reaction - The stock may rise if earnings exceed expectations, while a miss could lead to a decline [2]. - Other factors beyond earnings results can also influence stock movement, making it essential to consider various elements before making investment decisions [16][18].

Halliburton is idling some oilfield equipment in response to deteriorating demand among shale companies https://t.co/5nEhNi71vY ...

Core Insights - Halliburton Company (HAL) reported second-quarter 2025 adjusted net income per share of 55 cents, matching the Zacks Consensus Estimate but down from 80 cents in the same quarter last year, reflecting softer activity in North America offset by international growth [1][9] - Revenues for the quarter were $5.5 billion, a 5.5% decline year over year, but exceeded the Zacks Consensus Estimate by 1.1% [1][9] Regional Performance - North American revenues decreased by 9% year over year to $2.3 billion, falling short of projections by nearly $60 million [2] - International revenues declined by 3% from the previous year to $3.3 billion, but surpassed estimates of $3.1 billion [2] Segment Analysis - The Completion and Production segment reported operating income of $513 million, down from $723 million last year and below the estimate of $537.7 million, attributed to lower stimulation service prices and reduced activity in the Middle East [3] - The Drilling and Evaluation unit's profit fell to $312 million from $403 million year over year, missing the estimate of $316.6 million due to seasonal software sales slowdown and increased startup costs, partially offset by higher global drilling-related services [4] Financial Position - Halliburton's capital expenditure for the second quarter was $354 million, exceeding the projection of $338.2 million [5] - As of June 30, 2025, the company had approximately $2 billion in cash and cash equivalents, with long-term debt of $7.2 billion, resulting in a debt-to-capitalization ratio of 40.4% [5] - The company repurchased $250 million of its stock during the quarter and generated $896 million in cash flow from operations, leading to a free cash flow of $582 million [5] Management Outlook - Management anticipates a softer oilfield services market in the near to medium term, with mixed international activity, and remains committed to shareholder returns [7] - The company aims to outperform peers in North America through scale, technology leadership, and strong service execution [7]