Fiscal 2025 Highlights - Major Drilling Group International Inc. reported total revenue of $727.6 million for fiscal year 2025, an increase of 3% from $706.7 million in the previous year [10][22] - The company achieved a Total Recordable Incident Frequency Rate (TRIFR) of 0.74, the lowest in its 45-year history, reflecting a strong safety culture [6][10] - Capital expenditures for the year totaled $72.5 million, including the acquisition of 7 new drill rigs, bringing the total rig count to 708 [7][10] Q4 2025 Summary - In Q4 2025, Major Drilling generated revenue of $187.5 million, up 12% from $168.0 million in the same quarter last year [10][14] - EBITDA for the quarter was $20.5 million, impacted by startup and mobilization costs [8][10] - Adjusted gross margins decreased to 22.8% from 26.9% in the prior year due to increased costs associated with project ramp-ups [10][18] Acquisition and Market Position - The acquisition of Explomin Perforaciones in November 2024 has strengthened Major Drilling's position in South America, contributing to a 78.5% increase in revenue from South and Central America to $88.0 million in Q4 2025 [10][16] - The company expects a 20% revenue growth in Q1 of fiscal 2026 compared to Q4 2025 levels, driven by increased exploration budgets from senior mining companies [9][10] Financial Performance - Net earnings for the year were $26.0 million, or $0.32 per share, down from $53.1 million, or $0.64 per share, in the previous year [31] - General and administrative costs increased to $78.8 million, primarily due to the addition of the Explomin group and annual wage adjustments [19][27] - The company reported a strong balance sheet with net debt of $3.9 million and total available liquidity of $123 million [8][10]

Core Points - Major Drilling Group International Inc. will release its fourth quarter and fiscal 2025 results on June 11, 2025, after market close [1] - A webcast/conference call to discuss these results is scheduled for June 12, 2025, at 8:00 a.m. Eastern [2] - The company is a leading provider of specialized drilling services primarily for the mining industry, with operations in multiple regions including North America, South America, Australia, Asia, and Africa [5] Company Overview - Major Drilling was established in 1980 and has over 1,000 years of combined experience within its management team [5] - The company offers a complete suite of drilling services, including surface and underground coring, directional drilling, and various mine services [5] Access Information - The webcast will be available in listen-only mode, and a taped rebroadcast will be accessible one hour after the call until July 6, 2025 [3][4] - For those unable to participate live, the webcast will be archived for one year on the Major Drilling website [4]

Group 1 - Boot Barn Holdings, Inc. (BOOT) has been added to the Zacks Rank 5 (Strong Sell) List due to a 7.4% downward revision in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Crescent Capital BDC, Inc. (CCAP) is also on the Zacks Rank 5 (Strong Sell) List, with a 1.9% downward revision in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Helmerich & Payne, Inc. (HP) has seen a significant 30.9% downward revision in the Zacks Consensus Estimate for its current year earnings over the last 60 days, indicating potential challenges in the drilling services and solutions sector [2]

Financial Data and Key Metrics Changes - The company generated quarterly revenues of just over $1 billion, with total direct operating costs at $702 million and general and administrative expenses approximately $81 million for the quarter [16][17]. - Gross capital expenditures for the second quarter were $159 million, aligning with expectations, while cash flow from operations was $56 million, negatively impacted by nonrecurring transaction-related costs and working capital challenges [18][27]. - The company maintains cash and short-term investments of $196 million, with an undrawn credit facility of $950 million, ensuring adequate liquidity for operations and debt repayment [27]. Business Line Data and Key Metrics Changes - In the North America Solutions segment, the average contracted rig count was 149, with revenues of $600 million, unchanged from the first quarter, and a direct margin of approximately $266 million, slightly stronger than the previous quarter [19][20]. - The International Solutions segment ended the quarter with 76 rigs working and a contracted drilling backlog of approximately $4 billion, generating a direct margin of $27 million, significantly impacted by rig suspensions in Saudi Arabia [20][22]. - The Offshore Solutions segment generated $26 million in direct margins, with a current backlog of $2.5 billion, benefiting from the KCAD acquisition [12][20]. Market Data and Key Metrics Changes - The company expects softer oil prices to lower the industry rig count as market volatility overrides potential incremental demand, with over 50% of customers preferring performance-based contracts [8][19]. - The average rig count in the North American Solutions segment is projected to range between 143 and 149 for the third quarter, with a revenue backlog of approximately $700 million [21][22]. Company Strategy and Development Direction - The company aims to execute its international growth strategy following the KCAD acquisition, which has positioned it as a global leader with the largest active rig count in the industry [5][6]. - The focus is on enhancing value and performance for customers and shareholders by prioritizing safety, drilling efficiency, and reliability [13][14]. - The company plans to realign cost structures, secure value-added synergies, and reduce debt on its balance sheet while remaining optimistic about scaling in prolific oil and gas regions [14][27]. Management's Comments on Operating Environment and Future Outlook - Management acknowledges headwinds from OPEC production increases and US tariff initiatives, but remains bullish about the long-term outlook for oil and gas markets, expecting demand to continue increasing [7][8]. - The company is focused on integrating operations and minimizing costs while addressing challenges in Saudi operations, with expectations for improvement in results as integration progresses [11][20]. - Management emphasizes the importance of performance-based contracts and technology solutions in driving efficiency and reliability for customers [9][22]. Other Important Information - The company is capturing synergies post-acquisition and has identified additional cost savings exceeding the original $25 million target by 2026 [26]. - The projected depreciation expense for the full year is around $595 million, with general and administrative expenses expected to be approximately $280 million [25][26]. Q&A Session Summary Question: What is the current state of the Saudi market regarding rig suspensions? - Management indicated uncertainty about the completion of the suspension cycle but noted that historically, rigs have returned to work after suspensions [30][32]. Question: How will the dynamics of rig suspensions and legacy HP rigs affect fiscal Q4? - Management expects a positive inflection in margins for Q4 as legacy HP rigs come online, offsetting the impact of suspensions [34][36]. Question: What is the expected contribution from the eight rigs in Saudi Arabia? - The anticipated contribution is around $25 million annually, with potential for this number to increase due to operational synergies [42][44]. Question: Will there be pressure on day rates in the domestic market due to rig count declines? - Management acknowledged the potential for pricing concessions but emphasized the importance of maintaining margins through performance-based contracts [52][102]. Question: Are there plans to relocate land rigs from Saudi Arabia to other markets? - Management confirmed that relocating rigs to neighboring countries is a possibility if they do not return to work [87][88]. Question: Is there potential for an increase in performance-based contracts? - While the current adoption rate is stable, management is actively pushing for more performance-based contracts as a means to provide value to customers [89][92].

Core Viewpoint - Sunoco LP reported first-quarter 2025 earnings of $1.21 per unit, missing the Zacks Consensus Estimate of $1.69, but showing improvement from $1.06 per unit in the same quarter last year. Total revenues of $5.18 billion also fell short of the estimate of $5.32 billion and decreased from $5.50 billion year-over-year [1][2]. Financial Performance - The year-over-year increase in earnings was attributed to lower total expenses and higher fuel margins, although net income decreased [2]. - Total operating income for the quarter was $296 million, slightly down from $297 million in the prior-year quarter. Net income was reported at $207 million, compared to $230 million in the first quarter of 2024 [6]. - Adjusted distributable cash flow totaled $310 million, up from $176 million year-over-year [7]. Revenue and Expenses - Total cost of sales and operating expenses decreased to $4.88 billion from $5.20 billion a year ago [8]. - The partnership sold 2.1 billion gallons of fuel in the reported quarter, lower than the estimate of 2.3 billion gallons. Motor fuel gross profit per gallon increased to 11.5 cents from 10.9 cents year-over-year [5]. Distribution and Growth - The board declared a distribution of $0.8976 per unit for the first quarter of 2025, an increase from $0.8865 per unit in the previous quarter. The partnership targets a distribution growth rate of at least 5% for 2025 [3]. Segment Performance - Fuel Distribution segment reported adjusted EBITDA of $220 million, slightly up from $218 million in the comparable period of 2024, affected by lower fuel sales and lease profits [4]. - Pipeline Systems reported adjusted EBITDA of $172 million, benefiting from the acquisition of NuStar [4]. - Terminals segment saw adjusted EBITDA rise to $66 million from $24 million year-over-year, primarily due to acquisitions [5]. Balance Sheet and Outlook - As of March 31, 2025, Sunoco had cash and cash equivalents of $172 million and net long-term debt of $7.67 billion [9]. - The company reaffirmed its full-year 2025 Adjusted EBITDA guidance in the range of $1.90-$1.95 billion, with total operating expenses projected between $900 million and $925 million [10].