ProPetro (NYSE:PUMP) FY Conference Summary Company Overview - **Company**: ProPetro Holding Corp. - **Ticker**: PUMP - **Industry**: Oil and Gas Services, specifically hydraulic fracturing and power generation - **Headquarters**: Midland, Texas - **Key Executives**: Matt Augustine (VP of Finance and Investor Relations), Shelby Fietz (Chief Commercial Officer) Key Points Financial Performance - **Q3 Revenue**: $294 million - **Adjusted EBITDA**: $35 million - **Free Cash Flow from Completion Business**: $25 million - **Revenue Mix**: 71% hydraulic fracturing, 18% wireline, 11% cement [6][8][19] Investment Thesis - Built on four pillars: sustainable free cash flow, exposure to the Permian Basin, technology innovation, and a strong balance sheet [4][6] - Over $1 billion invested since 2022 to refresh assets and technology [4] ProPower Business - New business line generating revenue since December 2024, with 220 megawatts contracted [7][13] - Focus on long-term take-or-pay contracts to build sustainable free cash flow [5][12] - Initial contract for 80 megawatts for 10 years with a large E&P operator in the Permian Basin [12] - Anticipated installed capacity of at least 1 gigawatt by 2030, with projected EBITDA of $265 million-$280 million from this business [14][15] Market Position and Strategy - ProPetro is the second leading horsepower provider in the Permian Basin, with a significant market share [35] - Focus on capital efficiency and maintaining a strong balance sheet while investing in growth [21][26] - Emphasis on industrialized operations and technology to reduce operating expenses and emissions [10][20] Industry Dynamics - Current market characterized by high attrition rates among smaller players, leading to consolidation [33][34] - Stable free cash flow generation despite fluctuations in oil prices, with a focus on maintaining operational efficiency [30][31] - Anticipated increase in activity levels as production in the Permian Basin is expected to roll over [32] Challenges and Opportunities - Need for education among customers regarding the efficiency and cost savings of ProPower solutions compared to traditional diesel generators [46][49] - Growing demand for power generation in the Permian Basin and data center sectors, with ProPetro positioned to meet this demand [39][40] - Competitive advantage due to established relationships with suppliers like Caterpillar and existing customer bases [11][18] Future Outlook - ProPetro aims to leverage its strong free cash flow from the completion business to fund growth in the ProPower segment [13][21] - Continued focus on diversifying customer base beyond oil and gas to include data centers and utility-like projects [38][42] - Anticipation of a re-rate in valuation due to improved free cash flow generation and market positioning [25][26] Additional Insights - The company has a history of successful mergers and acquisitions to bolster its service offerings [22] - ProPetro's operational efficiency and technology investments are expected to yield long-term benefits, particularly in a challenging market environment [23][24]

Core Laboratories Overview - Oppenheimer Asset Management Inc. reduced its holdings in Core Laboratories by 9.0%, owning 62,951 shares valued at $725,000 after selling 6,233 shares [2] - Institutional investors and hedge funds own 97.81% of Core Laboratories stock [3] Recent Hedge Fund Activity - Ariel Investments LLC increased its stake by 7.4%, now owning 10,342,025 shares valued at $155,027,000 after acquiring 709,455 shares [3] - Fred Alger Management LLC grew its position by 32.4%, owning 736,853 shares valued at $11,045,000 after purchasing 180,344 shares [3] - Rice Hall James & Associates LLC increased its stake by 71.2%, now owning 193,798 shares valued at $2,905,000 after acquiring 80,595 shares [3] Analyst Ratings and Forecasts - Stifel Nicolaus lowered the price target from $13.00 to $12.00, maintaining a "hold" rating [4] - Weiss Ratings upgraded from "sell (d+)" to "hold (c-)" [4] - Zacks Research upgraded from "strong sell" to "hold" [4] - The consensus rating for Core Laboratories is "Hold" with an average price target of $12.50 [4] Stock Performance and Financial Metrics - Core Laboratories stock opened at $15.95, with a market capitalization of $742.40 million [5] - The company has a debt-to-equity ratio of 0.41, quick ratio of 1.76, and current ratio of 2.37 [5] - The stock has a 52-week low of $9.72 and a high of $21.83 [5] Quarterly Earnings Results - Core Laboratories reported $0.22 EPS, exceeding estimates of $0.19 by $0.03, with revenue of $134.52 million [6] - Revenue increased by 0.1% year-over-year, with a net margin of 6.21% [6] - Guidance for Q4 2025 is set at 0.180-0.22 EPS [6] Dividend Announcement - Core Laboratories declared a quarterly dividend of $0.01 per share, with an annualized dividend of $0.04 and a yield of 0.3% [7] - The dividend payout ratio is currently 5.97% [7] Company Profile - Core Laboratories provides reservoir description and production enhancement services to the oil and gas industry [8] - The company operates through Reservoir Description and Production Enhancement segments [8]

Financial Data and Key Metrics Changes - Expro reported quarterly revenue of $411 million and EBITDA of $94 million, representing a 22.8% margin, with adjusted free cash flow of $46 million, or 11% of revenue, marking the highest recorded by the company to date [4][24] - EBITDA margin increased by approximately 50 basis points from the previous quarter and 270 basis points year-over-year [23] - The company raised its 2025 annual guidance for EBITDA and free cash flow, expecting adjusted EBITDA between $350 million and $360 million and adjusted free cash flow between $110 million and $120 million [25][26] Business Line Data and Key Metrics Changes - North and Latin America (NLA) revenue was $151 million, up $8 million quarter-over-quarter, driven by higher well construction and flow management revenue [27] - Europe and Sub-Saharan Africa (ESA) revenue decreased by $7 million to $126 million, primarily due to lower well flow management and subsea well access revenue [28] - Middle East and North Africa (MENA) revenue was $86 million, slightly lower than Q2, with an EBITDA margin of 35%, down about 100 basis points [28] - Asia-Pacific (APAC) revenue decreased by $8 million to $49 million, with an EBITDA margin of 21%, down about 500 basis points from the prior quarter [29] Market Data and Key Metrics Changes - The company has a $2.3 billion backlog, providing solid revenue visibility and demonstrating a diverse portfolio across regions [6] - Despite a softer commodity price environment, the outlook for Expro's core markets remains constructive, with expected recovery in upstream investments in 2026 and beyond, particularly in offshore projects in Latin America, the Middle East, and West Africa [8][10] Company Strategy and Development Direction - Expro's strategy focuses on maximizing and sustainably generating free cash flow through industry cycles, with a commitment to operational excellence and disciplined capital allocation [20][22] - The company aims to expand its wallet share with existing customers and enhance service offerings while leveraging technology to drive profitability [12][13] - Expro is committed to investing in technology leadership and digital capabilities to deliver innovative solutions and enhance competitive positioning [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in Expro's ability to deliver resilient performance despite softer market conditions, emphasizing a diversified business mix and strong customer relationships [33][35] - The company anticipates continued growth in free cash flow generation in 2026, supported by ongoing cost efficiencies and margin-accretive growth [35] - Management highlighted the cautious sentiment among customers due to geopolitical factors and commodity pricing, which may impact activity levels in the first half of 2026 [51][52] Other Important Information - Expro repurchased around 2 million shares for approximately $25 million, achieving its annual target of $40 million ahead of schedule [5][24] - The company received several industry awards for safety and technology innovation, reinforcing its commitment to operational excellence [15][16] Q&A Session Summary Question: Drivers of margin expansion for 2026 - Management indicated that the full-year effect of the Drive25 initiative, internationalization of recent acquisitions, and rollout of new technologies will contribute to margin expansion [37][38] Question: Offshore activity outlook - Management noted that Asia-Pacific may lag, while West Africa and the Gulf of Mexico are expected to see increased activity in the second half of 2026 [39][40] Question: Share repurchase plans for the rest of the year - Management confirmed that they will continue to evaluate opportunities for share repurchases in line with their capital allocation framework [42][43] Question: Activity levels in 2026 - Management acknowledged potential softness in the first half of 2026 due to customer caution but expects a ramp-up in activity later in the year [48][52] Question: Production solutions services and regions - Management described production solutions as focusing on existing infrastructure and brownfield activities, with strong opportunities in the Middle East and West Africa [60][61] Question: Margin uplift drivers - Management emphasized that margin uplift will depend on geographic and product mix, particularly the contribution from the Middle East [70][72] Question: Scalability of new technologies - Management expressed optimism about the scalability of the remote clamp installation system, expecting increased market uptake in 2026 and 2027 [74][76]

Financial Data and Key Metrics Changes - Expro reported quarterly revenue of $411 million and EBITDA of $94 million, representing a 22.8% margin, with adjusted free cash flow of $46 million, or 11% of revenue, marking the highest in the company's history [4][23][24] - The EBITDA margin increased by approximately 50 basis points from the previous quarter and 270 basis points year-over-year [23] - The company raised its annual guidance for EBITDA and free cash flow for 2025, expecting adjusted EBITDA between $350 million and $360 million and adjusted free cash flow between $110 million and $120 million [25][26] Business Line Data and Key Metrics Changes - North and Latin America (NLA) revenue was $151 million, up $8 million quarter-over-quarter, driven by higher well construction and flow management revenue [26] - Europe and Sub-Saharan Africa (ESA) revenue decreased by $7 million to $126 million, primarily due to lower well flow management and subsea well access revenue [27] - Middle East and North Africa (MENA) revenue was $86 million, slightly lower than Q2, with an EBITDA margin of 35% [28] - Asia-Pacific (APAC) revenue decreased by $8 million to $49 million, with an EBITDA margin of 21%, reflecting decreased activity [29] Market Data and Key Metrics Changes - The company has a $2.3 billion backlog, providing solid revenue visibility and demonstrating a diverse portfolio across regions [5][6] - Despite a softer commodity price environment, the outlook for Expro's core markets remains constructive, with expected recovery in upstream investments in 2026 and beyond, particularly in offshore projects in Latin America, the Middle East, and West Africa [8][10] Company Strategy and Development Direction - Expro's strategy focuses on maximizing free cash flow through operational efficiency, disciplined capital allocation, and targeted acquisitions [19][20] - The company aims to expand its wallet share with existing customers and enhance service offerings, leveraging technology to drive profitability [12][21] - Expro is committed to technology leadership, investing in digitalization and artificial intelligence to deliver innovative solutions [12][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in Expro's ability to deliver resilient performance despite softer market conditions, emphasizing a diversified business mix and strong customer relationships [33][34] - The company anticipates continued growth in free cash flow generation in 2026, supported by ongoing cost efficiencies and margin accretive growth [34] Other Important Information - Expro repurchased around 2 million shares for approximately $25 million, achieving its annual target of $40 million ahead of schedule [5][24] - The company received several industry awards for safety and technology innovation, reinforcing its commitment to operational excellence [14][15] Q&A Session Summary Question: What are the drivers for margin expansion in 2026 despite flat to slightly lower revenue? - Management highlighted the full-year effect of the Drive25 initiative, internationalization of recent acquisitions, and rollout of new technologies as key drivers for margin expansion [36] Question: What regions are expected to see activity increase in the second half of 2026? - Management indicated that West Africa and the Gulf of Mexico are expected to see increased activity, while Asia-Pacific may lag behind [38][39] Question: What does the share repurchase achievement mean for future repurchases? - Management stated that they will continue to evaluate opportunities for share repurchases in line with their capital allocation framework [40][41] Question: What is driving the expected softness in the first half of 2026? - Management noted cautious sentiment among customers due to commodity pricing and geopolitical factors, along with typical seasonal slowdowns in the northern hemisphere [46][48] Question: How will the production solutions business contribute to cash generation? - Management explained that projects transitioning from construction to operational phases will generate predictable cash flows, enhancing free cash flow generation [55][58] Question: What impact will the geographic mix have on margins in 2026? - Management emphasized that the mix of regions, particularly growth in the Middle East, will significantly influence margin expansion [66]

Financial Data and Key Metrics Changes - EXPAREL reported quarterly revenue of $411 million and EBITDA of $94 million, representing a 22.8% margin, which is an increase of about 50 basis points from the previous quarter and 270 basis points year-over-year [6][28] - Adjusted free cash flow reached $46 million, marking the highest quarterly free cash flow in the company's history, which is 11% of revenue [6][29] - The company has raised its annual guidance for EBITDA and free cash flow for 2025, reflecting anticipated performance [7][31] Business Line Data and Key Metrics Changes - North and Latin America (NLA) revenue was $151 million, up $8 million quarter-over-quarter, driven by higher well construction and flow management revenue [34] - Europe and Sub-Saharan Africa (ESA) revenue decreased by $7 million to $126 million, primarily due to lower well flow management and subsea well access revenue [34] - Middle East and North Africa (MENA) revenue was $86 million, slightly lower than Q2, with an EBITDA margin of 35%, down 100 basis points from the prior quarter [34] - Asia Pacific (APAC) revenue decreased by $8 million to $49 million, with an EBITDA margin of 21%, down 500 basis points from the prior quarter [34] Market Data and Key Metrics Changes - The company has a backlog of $2.3 billion, providing solid revenue visibility and demonstrating a diverse portfolio across regions [8] - Despite a softer commodity price environment, the outlook for EXPAREL's core markets remains constructive, with expected recovery in upstream investments in 2026 and beyond [11][12] Company Strategy and Development Direction - The company aims to maximize and sustainably generate free cash flow through industry cycles, focusing on margin expansion and robust free cash flow generation [25][26] - EXPAREL is committed to investing in technology and digital capabilities, ensuring innovation remains at the core of its value proposition [26][27] - The company is pursuing selective, highly accretive mergers and acquisitions to complement existing capabilities and expand market presence [36][37] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver resilient performance despite a softer market backdrop, with expectations for a strong fourth quarter [40][41] - The company anticipates continued growth in free cash flow generation in 2026, supported by a balanced approach to capital allocation [41] Other Important Information - The company repurchased approximately 2 million shares for about $25 million, achieving its annual target of $40 million ahead of schedule [7][30] - EXPAREL received several industry awards for safety and technology, highlighting its commitment to operational excellence [19][20] Q&A Session Summary Question: What are the drivers for margin expansion in 2026 despite flat to slightly lower revenue? - Management indicated that the full-year effect of the Drive 25 initiative, internationalization of recent acquisitions, and rollout of new technologies will contribute to margin expansion [44][45] Question: What regional activity levels are expected in 2026? - Management noted that Asia Pacific is expected to lag, while activity in the Gulf of Mexico, West Africa, and Saudi Arabia is anticipated to improve [48][49] Question: Will share repurchases continue for the rest of the year? - Management confirmed that they will evaluate opportunities to return more capital to shareholders, with the current repurchase plan still having headroom [51][53] Question: What is driving the expected softness in the first half of 2026? - Management attributed the softness to cautious sentiment among customers due to commodity pricing and geopolitical factors, along with typical seasonal effects in the Northern Hemisphere [60][61] Question: How will the mix of regions and products impact margins in 2026? - Management emphasized that the geographic mix and the rollout of new technologies will significantly influence margin expansion [84][86]

Financial Data and Key Metrics Changes - The third quarter earnings per share, excluding charges and credits, was $0.69, representing a decrease of $0.05 sequentially and $0.20 compared to the first quarter of last year [23] - Revenue for the first quarter was $8.9 billion, an increase of $382 million or 4% sequentially [23] - Companywide adjusted EBITDA margin for the third quarter was 23.1%, representing a sequential decrease of 92 basis points [26] Business Line Data and Key Metrics Changes - Digital revenue increased 11% sequentially, driven by a 39% increase in digital operations [8][35] - Reservoir Performance revenue declined 1% sequentially, while Well Construction revenue was flat [36] - Production Systems revenue increased by $542 million or 18% sequentially, reflecting two months of activity from the acquired ChampionX [36] Market Data and Key Metrics Changes - Revenue in North America grew 17% sequentially, driven mainly by the contribution of ChampionX [6] - International Markets revenue rose 1% sequentially, with notable increases in several countries across the Middle East and Asia [5] - The digital business is expected to continue growing at a rate that visibly outperforms global upstream spending [11] Company Strategy and Development Direction - The company is focusing on production recovery solutions to unlock additional barrels at the lowest possible cost, positioning itself as a leader in this space [14] - The integration of ChampionX is expected to enhance the company's production recovery offerings and generate significant synergies [38] - The digital division is now reported as a standalone entity, highlighting its strategic value and growth potential [27] Management's Comments on Operating Environment and Future Outlook - The management expressed confidence in the resilience of the oil and gas markets despite challenging commodity prices and uncertainties [16] - The fundamentals for oil and gas remain constructive, with global inventories at multiyear lows [17] - The company anticipates a sequential step-up in results in the fourth quarter, driven by a full quarter of ChampionX and higher year-end digital sales [21] Other Important Information - The company generated $1.7 billion of cash flow from operations and $1.1 billion of free cash flow during the quarter [38] - Capital investments for the full year are expected to be approximately $2.4 billion [39] - The company repurchased $114 million of its stock during the quarter, totaling $2.4 billion year-to-date [40] Q&A Session Summary Question: How does the company see the production-focused business growing? - The management highlighted the need for reinvestment in production and recovery solutions, emphasizing the importance of technology and innovation in this area [44][46] Question: Can you elaborate on the four segments of the digital business? - The management explained that the growth in the digital business is driven by customer adoption and the expansion of offerings, with expectations for continued growth in annual recurring revenue [47][49] Question: What is the outlook for deepwater markets? - The management expressed confidence in the deepwater market's resilience and anticipated a gradual strengthening of rig activity in the coming years [60][61] Question: How does the company view the addressable market in digital? - The management believes the digital solutions market is unconstrained and will continue to expand as the company leverages its capabilities [96]

Core Viewpoint - Fugro has withdrawn its financial guidance for the full year 2025 due to significant changes in market conditions, particularly in recent weeks [2] Group 1: Financial Guidance - The company no longer anticipates the previously expected 20% revenue growth for 2025, although an improvement in the second half of the year compared to the first half is still expected [2] - Projects have been postponed or descoped, with some being moved to 2026 [3] Group 2: Market Impact - Recent developments are particularly evident in the offshore wind sector, as well as in the oil and gas market [4]

Group 1 - The company Huibo Pu (SZ 002554) held its fifth board meeting on September 15, 2025, to discuss providing guarantees for its wholly-owned subsidiary, Kate Smart Technology Co., Ltd. [1] - For the first half of 2025, Huibo Pu's revenue was entirely derived from services related to oil and gas extraction, accounting for 100.0% of its business activities [1]. - As of the report date, Huibo Pu's market capitalization stood at 4.3 billion yuan [1].

Financial Data and Key Metrics Changes - ProPetro generated total revenue of $326 million, a decrease of 9% compared to the prior quarter [19] - The net loss totaled $7 million, or $0.07 loss per diluted share, compared to net income of $10 million, or $0.09 income per diluted share for the previous year [19] - Adjusted EBITDA totaled $50 million, representing 15% of revenue, and decreased 32% compared to the prior quarter [19] - Free cash flow for the completions business was $26 million, demonstrating sustainable cash generation despite market challenges [20] Business Line Data and Key Metrics Changes - The legacy completions business continues to generate sustainable free cash flow, supported by ongoing cost optimization and targeted capital programs [8] - Utilization across all segments was down due to macro impacts, including lower commodity prices and weather downtime [16] - Capital expenditures incurred were $73 million, with $30 million primarily supporting maintenance in the completions business and $43 million supporting Pro Power orders [20] Market Data and Key Metrics Changes - The Permian frac fleet counts are likely approaching 70, down from approximately 90 to 100 fleets operating at the start of the year [9] - Increased market uncertainty driven by tariffs and rising OPEC plus production has resulted in more idle capacity than anticipated [9] - The company expects to operate an average of 10 to 11 fleets in the third quarter, with the possibility of running fewer fleets in the fourth quarter [17] Company Strategy and Development Direction - ProPetro's strategy focuses on capital discipline and efficiency, emphasizing capital light assets and disciplined investments [8] - The company is transitioning from Tier two diesel equipment to Force electric equipment due to high demand and successful contracts [12] - Pro Power is a new initiative aimed at providing power generation capacity, with a significant contract already secured [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the current market challenges and highlighted the company's strong balance sheet and low debt [10] - The outlook for the second half of the year remains uncertain due to ongoing market volatility, but management believes the company is well-positioned for future opportunities [17][18] - Management anticipates a reduction in activity in the third quarter, particularly with conventional equipment, but remains optimistic about long-term growth [17] Other Important Information - As of June 30, 2025, total cash was $75 million, and total liquidity was $178 million [22] - The company extended its $200 million share repurchase program to December 2026, having repurchased 13 million shares since its inception [22] Q&A Session Summary Question: How much of an overhang do you think this will be on the Permian Basin? - Management indicated that the looseness in the market is likely to persist into 2026, but they are well-positioned to capitalize on future recovery [29] Question: Any thoughts around continuing with the current equipment orders? - Management expressed satisfaction with the flexibility of the current equipment and indicated a focus on oil and gas for now, with exploratory conversations about non-oil and gas opportunities [30][35] Question: How should we think about the trajectory for Q4? - Management noted that while historical trends show a decline, the current market conditions make it difficult to predict, and they are being conservative in their outlook [38][42] Question: Does power demand suggest a disconnect from drilling and completions activity? - Management confirmed that power demand is primarily tied to production and midstream activities, which remain stable despite drilling and completions volatility [45] Question: What is the stability of pricing given long-term contracts? - Management stated that contracts have semi-annual adjustments resulting in low single-digit changes, indicating stable pricing [72]

Financial Data and Key Metrics Changes - The second quarter earnings per share, excluding charges and credits, was $0.74, representing a sequential increase of $0.02 and a year-over-year decrease of $0.11 [22] - Second quarter revenue was $8.5 billion, a 1% sequential increase driven by 2% growth in international markets [22][23] - Adjusted EBITDA margin for the second quarter was 24%, reflecting a sequential increase of 21 basis points [23] Business Line Data and Key Metrics Changes - Production Systems revenue increased by 3% sequentially to $3 billion, driven by strong sales in artificial lift and midstream production systems [25] - Digital and Integration revenue decreased by 1% sequentially to $1 billion, with margins expanding to 32.8% due to greater digital adoption [24][25] - Reservoir Performance revenue declined by 1% sequentially to $1.7 billion, while Well Construction revenue was essentially flat at $3 billion [25] Market Data and Key Metrics Changes - In international markets, revenue grew by 2%, with strong growth in Iraq, UAE, Kuwait, East Asia, China, and Australia [7][8] - North America experienced a revenue decline, primarily due to seasonal factors and a non-repeat of exploration data sales [9][10] - The offshore market saw certain projects delayed, particularly in Sub-Saharan Africa, but maintained a steady backlog [10] Company Strategy and Development Direction - The acquisition of ChampionX is expected to enhance the company's portfolio and capabilities, particularly in production chemicals and natural gas [5][16] - The company aims to integrate ChampionX's strengths to drive innovation and customer value creation across its service offerings [19][30] - The focus is on less cyclical, OpEx-driven market opportunities that are less sensitive to short-term commodity cycles [15][51] Management's Comments on Operating Environment and Future Outlook - The macro environment remains uncertain, particularly with OPEC+ supply releases, but the company anticipates resilience in the market outlook [14][60] - The company expects second half revenue to be between $18.2 billion and $18.8 billion, driven by the contribution from ChampionX and steady revenue in legacy businesses [20][34] - Management expressed confidence in the long-term growth potential of the offshore market and the resilience of international markets [46][62] Other Important Information - The company generated $1.1 billion in cash flow from operations and $622 million in free cash flow during the quarter, reflecting a significant increase compared to the previous quarter [26] - Capital investments for the full year are expected to be approximately $2.4 billion, influenced by the ChampionX acquisition [27] Q&A Session All Questions and Answers Question: Can you provide more detail on the guidance for the second half? - Management indicated that the guidance reflects potential growth in the second half, driven by the combination of Production Systems and ChampionX, offsetting headwinds in selective markets [39][40] Question: Are there concerns about near-term activity in deepwater projects? - Management acknowledged some projects have been delayed but remains optimistic about the pipeline of advantageous projects in the Americas and other regions [45][46] Question: What is the growth outlook for the production business? - Management highlighted three elements driving growth: customer focus on production recovery, the unique combination of offerings from ChampionX, and the integration of digital capabilities [50][51] Question: How do you view capital intensity and free cash flow metrics going forward? - Management anticipates maintaining low capital intensity and aims for a free cash flow margin above 10% of revenue, with positive contributions from ChampionX [54] Question: What insights can you provide regarding the political landscape in Mexico? - Management noted ongoing restructuring efforts in Mexico and expressed readiness to respond to future opportunities, particularly in gas development [88][89]