Financial Data and Key Metrics Changes - The company generated revenues of $165 million and adjusted consolidated EBITDA of $21 million in Q3 2025, with net income totaling $2 million or $0.03 per share, which included charges of $4 million related to U.S. land restructuring efforts [11][12] - Cash flow from operations increased to $31 million, a 105% sequential increase, and free cash flow was $23 million [9][12] - The backlog increased to $399 million, the highest level since June 2015, with robust bookings of $145 million, representing a 29% quarter-over-quarter increase [6][12] Business Line Data and Key Metrics Changes - The offshore manufactured products segment generated revenues of $109 million and adjusted segment EBITDA of $22 million, with an adjusted segment EBITDA margin of 21% [11] - The completion and production services segment generated revenues of $28 million and adjusted segment EBITDA of $8 million, achieving an adjusted segment EBITDA margin of 29% [11] - The downhole technologies segment generated revenues of $29 million but reported an adjusted segment EBITDA loss of $1 million due to higher costs from tariffs and lower international activity levels [12] Market Data and Key Metrics Changes - 75% of consolidated revenues were generated from offshore and international projects, reflecting a strategic shift towards longer cycle, higher margin work [6] - U.S. land completion activity declined significantly, with the average U.S. frac spread count down 11% sequentially due to weaker crude oil prices and OPEC Plus's production cuts [7][12] Company Strategy and Development Direction - The company is focused on growing its offshore and international presence while managing volatility in U.S. land activity and driving cash flow generation [10][16] - The strategy includes leveraging cutting-edge technologies and optimizing operations to enhance performance and safety [9][10] - The company anticipates continued strength in future bookings, with a fourth quarter book-to-bill ratio expected to exceed one time [14] Management's Comments on Operating Environment and Future Outlook - Management noted that while U.S. land-based activity may remain subdued into 2026, offshore and international markets are expected to improve due to a growing emphasis on exploration and offshore development [14][42] - The fourth quarter consolidated revenues are expected to increase by 8% to 13% sequentially, with adjusted EBITDA projected to range from $21 million to $22 million [14][54] Other Important Information - The company received two Energy Workforce and Technology Council Safety Awards, highlighting its commitment to health, safety, and environmental improvements [10] - Ongoing deleveraging efforts are expected to unlock additional equity value for stockholders as the company pays off convertible senior notes at maturity in April 2026 [9] Q&A Session Summary Question: Insights on offshore versus U.S. land spending - Management views the trend towards offshore spending as a secular shift, with greater success in deep water and lower break-even costs driving investments [40][42] Question: Impact of tariffs on downhole technologies - Tariffs have significantly impacted the downhole technologies segment, particularly due to increased costs from imported materials, but the completion and production services segment remains less affected [24][27] Question: Margin impacts from U.S. land restructuring - Management expects to see cleaner margins by the end of the year as restructuring efforts conclude, with anticipated EBITDA margins in the high 20s to low 30s for 2024 [33][34] Question: Backlog realization and military awards - Current backlog realization is slightly elongated due to military awards, but future awards are expected to revert to longer-term trends [36] Question: Strategy for U.S. land business - The company is selectively pursuing product lines in the U.S. land market, focusing on those that generate returns and free cash flow [49][50] Question: Fourth quarter guidance and cash flow expectations - Management confirmed expectations for strong fourth quarter cash flow, projecting over $100 million for the year, with significant free cash flow anticipated [52][54]

Financial Data and Key Metrics Changes - In Q3 2025, the company generated $99 million of adjusted free cash flow with a conversion rate of 36.8% [14][15] - Adjusted EBITDA for Q4 is expected to be between $274 million and $287 million, improving upon prior levels [19] - The net leverage ratio is approximately 0.5 times, with liquidity around $1.6 billion [18] Business Line Data and Key Metrics Changes - North America saw a slight sequential increase due to seasonal recovery in Canada, but U.S. land operations declined [5][6] - Latin America improved revenues by 10% sequentially, primarily driven by Mexico, although revenues are still down approximately 60% year-over-year [6][8] - The MENA and Asia regions posted another quarter of sequential growth, led by the UAE, Qatar, Australia, and Thailand [6][7] Market Data and Key Metrics Changes - The company noted rising pricing pressure in several markets, particularly in commodity services, with the Middle East being the most affected [27] - Customer spending trends for the next year remain uncertain, with expectations of continued softness in the first half of 2026 [11][12] - OPEC Plus is adding supply back to the market, increasing pressure on the global oil supply-demand balance [11] Company Strategy and Development Direction - The company is focused on cost optimization and has reduced headcount by over 2,000, lowering annualized personnel expenses by more than $145 million [12][16] - A multi-year cost optimization program is in place to achieve sustainable productivity gains through technology and lean processes [22] - The company is committed to not chasing market share at the expense of unfavorable cash outcomes, focusing instead on margin expansion [28] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about slight improvements in Mexico and the potential for growth in the MENA-Asia region [6][11] - The overall market remains soft, with expectations of year-on-year comparisons being down in the first half of 2026 [11][12] - The company is confident in its ability to manage through the current cycle and emerge stronger [23] Other Important Information - The company has paid four quarterly dividends of $0.25 per share and repurchased approximately $193 million worth of shares over the past five quarters [8] - A significant contract was awarded in Brazil for $147 million, showcasing the strength of the company's technology [9] - The company is undergoing a full-scale ERP cloud-based implementation expected to enhance operational efficiencies [74] Q&A Session Summary Question: Pricing pressure in certain markets - Management noted pricing pressure primarily in commodity services, particularly in the Middle East, but not as much in differentiated product lines [27][28] Question: Recovery in Saudi Arabia - Management indicated that Saudi Arabia is expected to see a rebound in activity, primarily driven by gas, with oil activity also contributing [33][34] Question: Mexico's payment situation - Management expressed cautious optimism regarding payments from Mexico, noting recent positive developments and a payment received [40][42] Question: DRE margins improvement - Management attributed margin improvements to stabilization in Latin America and increased activity levels, particularly in the Middle East [46][47] Question: Free cash flow guidance - Management indicated that the $100 million free cash flow guidance includes conservatism, with potential for higher outcomes depending on payments from Mexico [51][54] Question: Overall spend levels for 2026 - Management suggested that the first half of 2026 may be soft, with a rebound expected in the second half, particularly in offshore markets [60][62] Question: Cost optimization impact on margins - Management discussed both cyclical and structural aspects of cost optimization, emphasizing the importance of maintaining margins despite market headwinds [66][68] Question: Impact of intelligent completions technology - Management expressed excitement about new technologies, which are expected to improve margins and cash flow conversion [70][71] Question: ERP implementation benefits - Management highlighted that the ERP implementation will rethink business processes and is expected to enhance margins and operational efficiencies [74]

Summary of Smart Sand Inc. Presentation at Lithium Partners Fall 2025 Investor Conference Company Overview - Smart Sand Inc. is a leading provider of Northern White sand in North America, primarily serving the oil and gas market and industrial applications [2][3] - The company has a mining and processing capacity of 10 million tons of high-quality Northern White sand with access to all Class 1 rail lines, enabling efficient shipping to various operating basins in the U.S. [2][3] Key Strengths - **Low-Cost Operating Structure**: Smart Sand operates with a bulk commodity mindset, focusing on efficiency in large quantities, resulting in low processing costs and logistics costs [3][4] - **Logistics Advantage**: The company has invested in high-quality mines and terminals, allowing efficient sand shipment across North America [4][5] - **Natural Gas Demand**: 70% of Smart Sand's sales are directed towards natural gas basins, positioning the company to benefit from the projected growth in natural gas demand due to LNG export capacity and power generation for AI data centers [5][16] Financial Performance - The company sold approximately 2.5 million tons in the first half of the year and expects similar sales in the second half [12] - Smart Sand has maintained a prudent capital structure with low debt levels, allowing it to navigate industry cycles effectively [8][9] Market Dynamics - The demand for natural gas is projected to increase significantly, with LNG capacity expected to double from 15 BCF per day to nearly 30 BCF per day by the end of the decade [16][17] - The company is also expanding its industrial applications segment, which has grown over 80% year-over-year, aiming to increase its contribution to sales from 5% to 10% or more [5][36] Product Offering - Smart Sand produces various sand products for fracking, with a focus on fine mesh sand, which constitutes over 70% of its reserves [6][7] - The company has a long-lived reserve base of over 500 million tons, with a reserve life exceeding 30 years [7] Strategic Initiatives - Smart Sand is focused on expanding its market share in key regions, including the Appalachian basins and the Bakken, while also exploring opportunities in Canada [12][13][28] - The company has invested in terminals to enhance its logistics capabilities, which account for roughly two-thirds of its costs [29][34] Management and Shareholder Alignment - The management team, including founder Chuck Young, holds over 36% of the company, aligning their interests with those of shareholders [9][39] - Smart Sand has returned nearly $20 million to shareholders through buybacks and dividends over the past three years [10] Conclusion - Smart Sand Inc. is well-positioned to capitalize on the growing demand for natural gas and industrial applications, supported by its efficient operations, strong logistics capabilities, and prudent financial management [39][40]

Group 1 - The company, Hailong Holdings (01623.HK), expects to report a net loss of approximately RMB 310 million to RMB 340 million for the six months ending June 30, 2025, compared to a profit of approximately RMB 46.6 million in the same period last year [1] - The shift from profit to loss is primarily attributed to the remeasurement of a vessel classified as held for sale, which incurred losses [1] - Despite the aforementioned losses, the company's business operations remain stable and have not been significantly impacted [1]

Core Viewpoint - Hailong Holdings (01623.HK) has announced a board meeting scheduled for August 29, 2025, to consider and approve the group's interim results for the six months ending June 30, 2025 [1] Summary by Relevant Sections - **Company Announcement** - The board meeting will focus on the approval of the interim financial results for the first half of the fiscal year 2025 [1]

Financial Data and Key Metrics Changes - The company reported a 16% year-over-year revenue growth and an 8% increase compared to the fourth quarter of 2024 [6][12] - Adjusted EBITDA grew nearly 18% year-over-year and remained flat sequentially [7] - Total consolidated revenue for the first quarter was $42.9 million, with tool rental revenue of approximately $34.5 million and product sales revenue of $8.3 million [12] - Adjusted free cash flow for the first quarter was $5.7 million, with net debt of $52.1 million [12][13] - The company recorded a noncash goodwill impairment of approximately $1.9 million, which does not affect day-to-day operations or liquidity [13] Business Line Data and Key Metrics Changes - The Western Hemisphere segment, which includes directional tool rentals and wellbore optimization tools, remained steady [14] - The Eastern Hemisphere segment, which includes deep casing tools and European drilling projects, showed some volatility, but tool rental revenue increased significantly compared to Q1 of 2024 [15] - The decline in product sales was primarily attributed to deep casing tools, which are expected to see increased demand in 2025 as customer-owned inventory depletes [15] Market Data and Key Metrics Changes - Despite a 6% global rig count decline, the company managed to increase revenue, validating its M&A strategy to strengthen its business model [12] - The Eastern Hemisphere accounted for 11% of total revenue in Q1, with expectations for growth as the year progresses [16] Company Strategy and Development Direction - The company is executing a two-phase strategy to manage potential disruptions in order flow due to market volatility [7] - A share buyback authorization of up to $10 million has been approved, reflecting confidence in the stock's value [11] - The company is focused on cost reduction measures, anticipating $6 million in annual savings [18] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about increased volatility and uncertainty in the marketplace due to tariffs and potential recession impacts [7] - The company has adjusted its 2025 revenue guidance to a range of $145 million to $165 million, with adjusted EBITDA expected between $32 million and $42 million [19] - Management remains optimistic about the demand for complex wellbore solutions and believes that their differentiated technology will provide value to clients [22] Other Important Information - The company is maintaining its planned capital expenditures to support growth in its RotoShear product line and international expansion [16] - Maintenance capital expenditures were approximately 10% of total revenue, reflecting a trend of lower investment due to declining rig counts [17] Q&A Session Summary Question: How is the company maintaining free cash flow in a challenging environment? - Management highlighted cost reductions and strategic CapEx management to preserve EBITDA margins [26][29] Question: What is the outlook for the Eastern Hemisphere, particularly in Saudi Arabia? - Management noted flat conditions in the Middle East but mentioned that they are gaining traction in other areas despite rig count softness [30][32] Question: How does the company view the North American market for the back half of the year? - Management anticipates some softness in the U.S. market but noted that Canadian operations may be more resilient [40][42] Question: Can you elaborate on the CapEx program and growth focus? - The focus will be on new technology and tools with growth potential, while sustaining the existing rental fleet [53]