Financial Data and Key Metrics Changes - For Q3 2025, the company reported revenues of $178 million and an EBITDA-equivalent cash flow of $113 million, with a total EBITDA of $473 million over the past 12 months, indicating strong operational stability [3][6] - The net income for the quarter was $8.6 million, translating to $0.07 per share, with total operating expenses reduced to $69 million from $86 million in the previous quarter [16][17] Business Line Data and Key Metrics Changes - The container vessel segment contributed $82 million to adjusted EBITDA, while the car carrier fleet added $23 million, and the tanker segment generated $44 million [14] - Dry bulk contributed $6 million, down from $19 million, due to the divestiture of 13 dry bulk carriers as part of the fleet renewal strategy [14][15] Market Data and Key Metrics Changes - The charter backlog stands at approximately $4 billion, with two-thirds contracted to investment-grade counterparties, providing strong cash flow visibility [6][17] - The overall utilization across the shipping fleet in Q3 was about 98.7%, with adjusted utilization at 99.9% [9] Company Strategy and Development Direction - The company is focused on fleet renewal, having sold five older dry bulk vessels and redelivered eight Cape-sized bulkers, which has improved operational and fuel efficiency [4][8] - Investments in cleaner technology are ongoing, with 11 vessels now capable of operating on LNG fuel, including five newbuildings under construction [4][11] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about securing new employment for the Hercules drilling rig, despite its current idle status [5][19] - The company emphasizes the importance of energy efficiency and emissions reduction to attract and retain high-quality charterers, with ongoing investments in modernizing the fleet [11][12] Other Important Information - The company has returned approximately $2.9 billion to shareholders over 87 consecutive quarters, with a dividend yield of over 10% based on the recent share price [6][17] - The company has about $80 million remaining on a $100 million share buyback program, having repurchased $10 million worth of shares at an average price of $7.98 per share [26] Q&A Session Summary Question: Expectations for Hercules leasing in the new year and impact of Gulf of Mexico lease sale - Management is exploring all opportunities for the Hercules rig, focusing on areas where it has unique capabilities, such as the North Sea and Canadian markets [19][20] Question: Consideration of well intervention opportunities for Hercules - The company is open to any opportunity for the Hercules, including well intervention or exploration drilling, and has made upgrades to the rig for development drilling [22] Question: Outlook for securing long-term work for tankers - It is too early to secure long-term work for vessels rolling off charters, but there is significant value linked to profit-sharing features in existing contracts [23] Question: Update on the $100 million buyback - Approximately $80 million remains on the buyback program, with $10 million repurchased so far this year [26] Question: Impact of Houthi attacks on commercial shipping in the Red Sea - Management is cautious and believes a slow return to normal activity in the Red Sea is likely, with potential reductions in operating expenses if vessels return to the region [28][29] Question: Purchase obligations in charter contracts - The company has transformed its business model to focus on time charters, reducing the prevalence of purchase obligations in contracts [30] Question: Outlook for new transactions outside the container segment - The company is open to opportunities across various maritime segments, focusing on strong counterparties and favorable deal structures [31][32]

Financial Data and Key Metrics Changes - For Q3 2025, the company reported revenues of $178 million and an EBITDA-equivalent cash flow of $113 million, with a total EBITDA of $473 million over the past 12 months, indicating strong operational stability [3][12] - Net income for the quarter was $8.6 million, translating to $0.07 per share, with total operating expenses reduced to $69 million from $86 million in the previous quarter [15][16] Business Line Data and Key Metrics Changes - The container vessel segment contributed $82 million to adjusted EBITDA, while the car carrier fleet generated $23 million, down from $26 million due to scheduled dry docking of SFL Composer [12][14] - The tanker segment produced $44 million, benefiting from long-term charters, while dry bulk contributed $6 million, down from $19 million due to divestitures [12][14] Market Data and Key Metrics Changes - The charter backlog stands at approximately $4 billion, with two-thirds contracted to investment-grade counterparties, providing strong cash flow visibility [5][16] - The overall utilization of the shipping fleet in Q3 was about 98.7%, with adjusted utilization reaching 99.9% when accounting for unscheduled technical issues [8] Company Strategy and Development Direction - The company is focused on fleet renewal, having sold older vessels and invested in cargo handling and fuel efficiency upgrades, with 11 vessels now capable of operating on LNG fuel [4][10] - The strategy includes securing long-term charters with strong counterparties, as evidenced by new five-year charters for three container vessels, adding approximately $225 million to the charter backlog from 2026 onwards [4][5] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about securing new employment for the Hercules drilling rig, despite its current idle status, and is exploring various opportunities for its deployment [5][19] - The company emphasizes the importance of energy efficiency and emissions reduction in attracting and retaining charterers, highlighting ongoing investments in modernizing the fleet [10][11] Other Important Information - The company declared a quarterly dividend of $0.20 per share, marking the 87th consecutive dividend, with a total of approximately $2.9 billion returned to shareholders over the years [5][17] - The financial position remains strong, with approximately $278 million in cash and cash equivalents and $40 million in undrawn credit lines, totaling $320 million in liquidity [15][16] Q&A Session Summary Question: Expectations for Hercules leasing in the new year and impact of Gulf of Mexico lease sale - Management is exploring all opportunities for Hercules, focusing on markets where its unique capabilities are needed, such as the North Sea and Canada, rather than the Gulf of Mexico [19][20] Question: Consideration of well intervention opportunities for Hercules - The company is open to any opportunity for the rig, including well intervention or exploration drilling, and has made upgrades to facilitate development drilling [23] Question: Outlook for securing long-term work for tankers - It is too early to secure long-term work for vessels rolling off charters, but there is significant value linked to profit-sharing features in existing contracts [24] Question: Update on the $100 million buyback implementation - Approximately $80 million remains on the buyback, with $10 million of shares repurchased at an average price of $7.98 per share [27] Question: Impact of potential pause in Houthi attacks on commercial shipping in the Red Sea - Management is cautious and believes it will take time for container ship operators to return to the region, with a focus on safety and risk evaluation [30][32] Question: Purchase obligations in charter contracts - The company has shifted from bareboat charters to time charters, reducing purchase obligations and maintaining upside in residual values [34] Question: Outlook for new transactions outside the container segment - The company is open to opportunities across various maritime sectors, focusing on strong counterparties and structuring deals with favorable return characteristics [35][36]

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q3 was $118 million, down from $142 million in the prior year [4] - Daily operating margins in Canada were $13,007, compared to $12,877 in Q3 2023 [4] - U.S. daily operating margins were $8,700, down from $9,026 in the previous quarter [5] - Net debt to trailing 12-month EBITDA ratio is approximately 1.3 times, with an average cost of debt of 6.6% [10] Business Line Data and Key Metrics Changes - In Canada, drilling activity averaged 63 active rigs, a decrease of 9 rigs from Q3 2023 [4] - U.S. drilling activity averaged 36 rigs, an increase of 3 rigs from the previous quarter [4] - International drilling activity averaged 7 rigs, down from 8 rigs in the prior year [5] - CMP segment adjusted EBITDA was $19.3 million, slightly down from $19.7 million in the prior year [7] Market Data and Key Metrics Changes - International day rates averaged $53,811, an increase of 14% from the prior year [6] - U.S. gas basins saw a nearly 20% increase in rig activity year-to-date [67] Company Strategy and Development Direction - The company increased its 2025 capital budget by $20 million for additional rig upgrades, reflecting a long-term view of energy demand [3] - The strategic focus includes leveraging scale, utilizing technology for rig performance, and maintaining customer focus [15][19][20] - The company aims to allocate between 35% and 45% of free cash flow to share buybacks [8] Management's Comments on Operating Environment and Future Outlook - The management expressed optimism for the fourth quarter, expecting Canadian activity to meet or slightly exceed last year's winter drilling season [9] - U.S. rig counts are expected to remain stable in the upper 30s for Q4 [9] - The company is committed to long-term debt reduction and increasing direct returns to shareholders [12] Other Important Information - The company has repurchased $54 million worth of shares during the first nine months of the year [8] - The leadership transition included the appointment of Carey Ford as President and CEO, with a focus on maintaining operational excellence [2][11] Q&A Session Summary Question: Comments on contract duration visibility for 2026 - Management noted a trend towards longer-term contracts in the Montney and Marcellus regions, with ongoing constructive conversations for future contracts [26][28] Question: Rig upgrades and CapEx expectations for 2026 - Management indicated a commitment to maintaining capital commitments for debt pay down and share repurchases, with expectations for continued rig upgrades driven by customer demand [31][32] Question: Changes in strategy under new leadership - The new CEO emphasized continuity in successful strategies while sharpening focus on supporting field operations and customer performance [37][38] Question: Impact of mobilization costs on margins - Management clarified that mobilization costs in Canada would not be substantial, while U.S. costs have stabilized [39] Question: Performance-based contracts and M&A strategy - Management confirmed no significant changes in M&A strategy, focusing on organic growth opportunities and the potential for more performance-based contracts in the future [44][45] Question: Demand for rig upgrades next year - Management expressed optimism about ongoing demand for rig upgrades, particularly in heavy oil and gas markets [54][70]

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q3 2025 was $118 million, down from $142 million in the prior year [4] - Daily operating margins in Canada increased to $13,007 per day from $12,877 per day in Q3 2023 [4] - U.S. daily operating margins decreased to $8,700 per day from $9,026 per day in the previous quarter [5] - The company reduced its debt by $101 million, achieving its annual debt reduction target [7] Business Line Data and Key Metrics Changes - In Canada, drilling activity averaged 63 active rigs, a decrease of 9 rigs from Q3 2023 [4] - U.S. drilling activity averaged 36 rigs, an increase of 3 rigs from the previous quarter [4] - International drilling activity averaged 7 rigs, down from 8 rigs in the prior year [5] - CMP segment adjusted EBITDA was $19.3 million, slightly down from $19.7 million in the prior year [6] Market Data and Key Metrics Changes - International day rates averaged $53,811 per day, an increase of 14% from the prior year [5] - The U.S. rig count increased from a low of 27 rigs in Q1 to a high of 40 rigs [5] - The company expects Q4 rig counts in Canada to be similar to Q4 2024, averaging 65 rigs [8] Company Strategy and Development Direction - The company increased its 2025 capital budget by $20 million for additional rig upgrades, reflecting a long-term view of energy demand [3] - The strategic focus includes leveraging scale, utilizing technology for rig performance, and maintaining customer focus [14][18][19] - The company aims to achieve a net debt to adjusted EBITDA ratio of less than one times and increase free cash flow allocated to shareholders towards 50% [9] Management's Comments on Operating Environment and Future Outlook - Management expressed a positive outlook for the remainder of the year, dependent on commodity prices [7] - The company anticipates that winter drilling activity in Canada will meet or slightly exceed last year's levels [8] - Management highlighted the importance of customer focus and the successful upgrade program as key drivers for future performance [19] Other Important Information - The company completed a leadership transition with the appointment of new executives, including Carey Ford as CEO [2] - The company has a strong balance sheet with over $400 million in total liquidity [9] Q&A Session Summary Question: Visibility on contract extensions for 2026 - Management noted that longer-term contracts are being seen in the Montney and Marcellus regions, with some short-term contracts in oil basins [25][26] Question: Future rig upgrades and CapEx - Management indicated that while they hope for more upgrades, the focus will remain on debt pay down and shareholder returns [28][29] Question: Changes in strategy under new leadership - The new CEO emphasized continuity in strategy, focusing on supporting field operations and enhancing customer performance [32][34] Question: Performance-based contracts and M&A approach - Management confirmed no significant changes in M&A strategy, with a focus on organic growth through asset utilization and rig upgrades [41][42] Question: Demand for rig upgrades next year - Management is closely working with customers to understand rig requirements and expects continued demand for upgrades [50][52]

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q3 2025 was $118 million, down from CAD 142 million in the prior year [5][6] - Daily operating margins in Canada were $13,007, compared to $12,877 in Q3 2024, while in the U.S., margins were steady at $8,700, down from $9,226 in Q2 2025 [6][12] - The company reduced its debt by CAD 101 million, achieving its annual debt reduction target [11] Business Line Data and Key Metrics Changes - In Canada, drilling activity averaged 63 active rigs, a decrease of nine rigs from Q3 2024 due to deferred customer projects [5][6] - U.S. drilling activity averaged 36 rigs, an increase of three rigs from the previous quarter, reflecting strength in gas-weighted basins [6][7] - Internationally, drilling activity averaged seven rigs, down from eight rigs in the prior year, with day rates averaging $53,811, a 14% increase from the previous year [8] Market Data and Key Metrics Changes - The U.S. natural gas market has seen an increase in rig count from 27 in Q1 to 40 rigs currently, driven by strong field performance [7][8] - The company expects Q4 rig counts in Canada to be similar to Q4 2024, averaging 65 rigs, while U.S. rig counts are expected to remain in the upper 30s [12][13] Company Strategy and Development Direction - The company increased its 2025 capital budget by $20 million to fund five additional contracted rig upgrades, indicating a long-term view of energy demand [3][4] - Precision Drilling aims to leverage its scale, utilize technology for rig performance, and maintain a strong customer focus as key pillars of its strategy [22][28] - The company is committed to long-term debt reduction and increasing direct returns to shareholders, with plans to allocate 35-45% of free cash flow to share buybacks [11][18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing a strong balance sheet and a commitment to capital returns while navigating commodity market challenges [18][30] - The outlook for the remainder of the year remains positive but is dependent on commodity prices, with expectations for winter drilling activity to meet or slightly exceed last year's levels [12][13] Other Important Information - The company has completed a leadership transition, appointing Carrie Ford as CEO, Gene Stahl as COO, and Dustin Honing as CFO [2][16] - Precision Drilling has a strong presence in Canada’s heavy oil and unconventional natural gas markets, which positions it well for future growth [8][9] Q&A Session Summary Question: Visibility on contract extensions for 2026 - Management noted that longer-term contracts are being seen in the Montney and Marcellus regions, with some short-term contracts in oil basins due to volatility [35][36] Question: Future rig upgrades and CapEx - Management indicated that while they hope to see more rig upgrades, the focus will remain on maintaining commitments to debt paydown and shareholder returns [40][42] Question: Changes in strategy under new leadership - The new CEO emphasized continuity in strategy, focusing on supporting field operations and enhancing customer performance [47][49] Question: Performance-based contracts and M&A approach - Management confirmed no significant changes in M&A strategy, with a focus on organic growth through improved asset utilization and performance-based contracts [55][56] Question: Demand for rig upgrades next year - Management expressed optimism about demand for upgrades, particularly in heavy oil and unconventional plays, with ongoing discussions with customers [67][70]

Summary of Key Takeaways from Brazilian Corporates Conference Call Industry Overview - **Investor Trip**: BofA's 12th Brazil investor trip highlighted a stark sectoral divide and a defensive corporate posture among Brazilian corporates, with a focus on deleveraging and liquidity preservation in a challenging environment [1][2][3] - **Corporate Bond Performance**: Brazilian corporate bonds (EBRZ index) have underperformed with a total return of +3.5% YTD compared to LatAm (+8.9%) and EM (+7.5%) [1] Core Themes - **Deleveraging Strategy**: Companies are prioritizing deleveraging due to increased leverage and high local interest rates (15%), leading to postponed investments and accelerated asset sales [3][4] - **Sectoral Divide**: Sectors like Oil & Gas services, protein, and logistics are performing well, while industrial sectors such as steel and petrochemicals face margin compression due to low-cost imports, particularly from China [4][11] Credit Events and Market Sentiment - **Contagion Fears**: Recent credit events at Ambipar and Braskem have heightened investor scrutiny on balance sheets, potentially leading to a broader repricing of risk [2][4] - **Investor Preferences**: There is a growing emphasis on transparent governance and conservative financial policies among investors [2] Sector-Specific Insights - **Pulp & Paper**: The sector is navigating a downturn in pulp prices, with Suzano taking a leadership role through capacity cuts and diversification into consumer tissue [10] - **Metals & Mining**: The steel market is under pressure from Chinese oversupply, impacting CSN and Gerdau, while Vale remains focused on shareholder returns [11] - **Banking**: A bifurcation in credit quality is evident, with Itaú managing risks effectively while Banco do Brasil faces challenges in its agribusiness portfolio [12][51] - **Oil & Gas**: Petrobras is balancing investments with shareholder returns amid volatile Brent prices, while companies like Acelen are experiencing operational momentum [13][26] - **Agribusiness**: Adecoagro is facing significant margin squeezes despite high production volumes, with a focus on strategic acquisitions [19][37] Financial Health and Projections - **Banco do Brasil**: NPLs in agribusiness have reached 3.5%, prompting increased provisions to R$56 billion, with government intervention expected to stabilize the situation [51][52] - **Braskem**: The company is in crisis management mode, facing a prolonged downturn and cash burn estimated at $1 billion for 2025 [55][57] - **Acelen**: The refinery reported a significant reduction in operating costs from over $12/bbl in 2022 to $7.8/bbl in 1H25, with a positive outlook for diesel prices [26][27][33] Strategic Initiatives - **Acelen Renewables**: Plans for a $3 billion refinery project to produce sustainable aviation fuel and hydrotreated vegetable oil are underway [36] - **Adecoagro's Acquisition**: The acquisition of a stake in Profertil is seen as strategically beneficial despite potential near-term credit pressures [39][40] Conclusion - The Brazilian corporate landscape is characterized by a defensive posture, aggressive deleveraging strategies, and a clear sectoral divide influenced by both domestic and global economic factors. Investors are increasingly cautious, focusing on governance and financial health as key determinants for future investments.

Financial Data and Key Metrics Changes - The company reported revenues of $194 million for the quarter, with an EBITDA equivalent cash flow of $112 million [5][24] - The EBITDA equivalent over the last twelve months was $526 million [5] - The net profit for the second quarter was approximately SEK 1.5 million or $0.01 per share, compared to a net loss of approximately SEK 32 million or $0.02 per share in the previous quarter [26] Business Line Data and Key Metrics Changes - The container vessel segment generated approximately $2 million in revenue, while the car carrier fleet generated approximately NOK 26 million, slightly up from the last quarter [21][22] - The tanker fleet's gross charter hire decreased to approximately NOK 41 million from NOK 45 million in the previous quarter due to scheduled dry dockings [22] - The overall utilization across the shipping fleet was 98.1%, with an adjusted utilization of 99.9% [15] Market Data and Key Metrics Changes - The charter backlog currently stands at $4.2 billion, with two-thirds of this backlog from customers with investment-grade ratings [10][29] - The company has a diversified fleet consisting of 60 maritime assets, including 30 containerships, 16 large tankers, and two drilling rigs [12] Company Strategy and Development Direction - The company is focused on strengthening its charter backlog by securing agreements with strong counterparties and investing in cargo handling and fuel efficiency upgrades [6][10] - The company has divested older, less efficient vessels and is committed to fleet renewal and new technology, with 11 vessels now capable of operating on LNG fuel [7][12] - The company aims to enhance its fleet to position itself for organic growth and comply with strict regulatory demands aimed at reducing shipping emissions [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about finding new employment for the idle drilling rig Hercules, despite current market volatility and oil price fluctuations [8][9] - The decision to adjust the dividend to $0.20 per share was made to ensure that distributions are not subsidized by idle assets, particularly the Hercules rig [10][36] - The company has a strong liquidity position, including undrawn credit lines and unencumbered vessels, which will enable continued investment in new assets [11][27] Other Important Information - The company has returned nearly $2.9 billion to shareholders over 86 consecutive quarters [10] - The average age of the vessels sold was about 18 years, reducing the fleet average by about two years [12] Q&A Session Summary Question: What’s the status with the lawsuit with Seadrill? - The company is involved in two lawsuits, with the larger one regarding the redelivery of the Hercules scheduled for 2026, and a guarantee for an adjustment amounting to approximately $45 million to $50 million has been received from Seadrill [30] Question: Can you walk us through your thought process on the decision to lower the dividend? - Management acknowledged disappointment regarding the dividend adjustment, attributing it to the idle status of the Hercules rig and the need to ensure that distributions are not subsidized by non-operational assets [34][36] Question: What are the expected costs for dry docking in the second half of the year? - Management expects dry docking costs to be significantly lower in Q3 and Q4 compared to Q2, with estimates around $3 million to $3.5 million for Q3 and $1 million to $2 million for Q4 [42][44] Question: How is the company viewing opportunities for potential acquisitions? - The company continues to look for acquisition opportunities, although the market has been slower due to general uncertainty. They have significant investment capacity following recent divestitures [46][47] Question: What should be expected for the organic EBITDA contribution from the energy side? - The energy segment is expected to have a negative drag going forward, but the shipping fleet is generating solid contributions and cash flow [50][54]

Company Overview - Helmerich & Payne (H&P) is a premier U S driller with 149 contracted rigs[10] - The company has a strong presence in the Middle East with 65 contracted rigs, including 17 rigs that are temporarily suspended or notified to suspend operations in Saudi Arabia[10] - H&P has an asset-light offshore business with 37 offshore rigs and management contracts[10] - The company is a major provider of rigs in Vaca Muerta, indicating growth market exposure[10] Financial Performance and Strategy - H&P is targeting a 50% direct margin with a focus on NAS Direct margin/day[11] - The company repaid $25 million on its existing $400 million term loan during the second fiscal quarter and expects to repay approximately $175 million in calendar year 2025[11] - H&P anticipates realizing $50-$75 million in synergies and other cost savings[22] - Q2 Fiscal Year 2025 Adjusted EBITDA was $241.5 million, with a diluted EPS of $0.01 and adjusted EPS of $0.02[20] - Net capital expenditures for Q2 Fiscal Year 2025 were $144.8 million[20] Market Position and Outlook - Approximately 50% of North America Solutions segment contracts are performance-based[12] - Total liquidity stands at $1.15 billion, comprising cash and an undrawn credit facility, with a debt reduction goal of $400 million in 2025-2026[22] - The company's backlog is approximately $7.6 billion, supported by large investment-grade customers[22]

Financial Data and Key Metrics Changes - Revenue from operations for Q1 2025 was $736 million, a slight increase of $6 million or 1% from the previous quarter [40] - Total adjusted EBITDA for the quarter was $206.3 million, down from $220.5 million in the fourth quarter, reflecting a decline of $14 million [45][46] - U.S. drilling revenue decreased by $11 million or 4.5% sequentially to $231 million [41] - Average daily rig margins in the Lower 48 came in just under $14,300, down $660 or 4% from the fourth quarter [47] Business Line Data and Key Metrics Changes - The international drilling segment generated revenue of $382 million, an increase of $10.3 million or 3% from the prior quarter, driven by activity increases in key markets [44] - Drilling Solutions revenue increased by $17.2 million or 22.6% to $93.2 million, benefiting from the addition of Parker operations [44][52] - Rig Technologies segment revenue declined by $12 million sequentially to $44.2 million, primarily due to lower capital equipment deliveries in the Middle East [45] Market Data and Key Metrics Changes - The Lower 48 market average quarterly rig count remained stable, with Nabors exiting Q1 with 62 rigs operating [41][39] - The international rig count increased slightly from 84.8 to 85 rigs during the quarter, aided by Parker's contribution [44] - The survey of 14 operators indicated a projected 4% reduction in rig count from the end of Q1 through the end of 2025 [29] Company Strategy and Development Direction - The company is focused on achieving $40 million in cost synergies from the Parker acquisition during 2025 [6][31] - There is a strategic emphasis on international markets, particularly in Saudi Arabia and Kuwait, where new rigs are expected to contribute positively to earnings [19][50] - The company aims to reduce debt and improve free cash flow, with a target of generating free cash in 2025 despite cash consumption [28][54] Management's Comments on Operating Environment and Future Outlook - Management noted that the macro environment is challenging due to OPEC+ output adjustments and high U.S. shale production, but there are signs of recovery in natural gas activity [7][8] - The company expects a slight increase in rig count in Q2, driven by deployments in Saudi Arabia and Kuwait [39] - Management expressed confidence in the company's ability to navigate through short-term disruptions while positioning for future growth [59] Other Important Information - The company suspended operations in Russia due to U.S. sanctions and does not expect to resume activities there [11][38] - The company has made significant progress in capturing planned synergies from the Parker acquisition, with a focus on corporate cost reductions [57][80] Q&A Session Summary Question: Has the company started accruing any debt in the SANAD joint venture? - Management confirmed that there is no current plan to accrue debt in the SANAD joint venture [64] Question: Is Saudi Aramco finished with rig releases, or are more expected this quarter? - Management provided details on rig suspensions and additions, indicating a wait-and-see approach regarding future releases [65][66] Question: Which business segment is most affected by tariffs? - Management indicated that the impact of tariffs is more significant on spare parts and pumps rather than drill pipe, with mitigation strategies in place [72] Question: How does the company view the potential for an IPO of SANAD? - Management acknowledged that an IPO is a potential path for value realization, especially given the attractive valuations in the Middle East [77] Question: What is the expected corporate run rate for the second quarter with Parker's full contribution? - Management indicated that Parker's contribution should be in the mid-40s for the second quarter, with ongoing synergy capture [90]

Core Viewpoint - Halliburton has warned of a potential earnings impact in the second quarter due to tariffs and reduced oilfield activity in North America, leading to a decline in its share price by approximately 6% [1][5]. Company Performance - Halliburton's shares fell to $20.62, reflecting a 6% drop after the earnings forecast indicated a 2 to 3 cents per share impact from trade tensions [5]. - The company reported a profit of $204 million, or 24 cents per share, for the three months ending March 31, down from $606 million, or 68 cents per share, in the previous year [12]. - First-quarter revenue was $5.42 billion, surpassing analysts' average estimate of $5.28 billion [12]. - North America revenue decreased by 12% year-over-year to $2.2 billion [7]. Market Conditions - U.S. crude prices are currently below $64 per barrel, with many companies indicating they cannot drill profitably if prices fall below $65, which negatively affects demand for Halliburton's services [2]. - The oilfield service sector is concerned that tariffs on imported steel and parts will disrupt supply chains and increase equipment costs [6]. Future Outlook - Halliburton's CEO noted that customers are evaluating their activity plans, which may lead to higher than normal white space for committed fleets and potential retirement or export of fleets to international markets [3]. - The company forecasts a 1% to 3% increase in revenue for its completion and production division in the second quarter, while drilling and evaluation division revenue is expected to be flat to down 2% [11]. - International revenue is projected to be flat to slightly down year-over-year, primarily due to reduced drilling and project management activity in Mexico [8].