Financial Data and Key Metrics Changes - Total reported revenue for Q3 2025 was $1,176 million, with a net loss attributable to common shareholders of $36 million or $0.10 per share, and an adjusted net loss of $21 million [23] - Adjusted EBITDA for the quarter totaled $219 million, with total operating expenses of $23 million, including $20 million related to personal injury claims [23] - The company generated $146 million of adjusted free cash flow during the first three quarters of the year [23] Business Line Data and Key Metrics Changes - Drilling Services segment revenue for Q3 was $380 million, with an adjusted gross profit of $134 million; the average operating rig count was 95 rigs [25] - Completion Services segment revenue totaled $705 million with an adjusted gross profit of $111 million, showing flat activity on a pump hour basis compared to Q2 [26] - Drilling Products revenue was $86 million with an adjusted gross profit of $36 million, impacted by lower activity in Saudi Arabia [27] Market Data and Key Metrics Changes - U.S. contract drilling activity stabilized, with recent revenue per day for drilling rigs remaining in the low to mid-$30,000 range [13] - International revenue declined mainly in Saudi Arabia, while revenue outside of Saudi Arabia was strong, with expectations for an increase in Q4 [20] - The company noted a strong recovery in Canadian revenue post-spring breakup, despite total industry activity being slightly below expectations [20] Company Strategy and Development Direction - The company is focused on enhancing commercial strategies through service and product line integration and performance-based agreements while lowering costs [5] - Investments are being made in technologies that are in high demand, with expectations of strong returns on incremental investments [11] - The company aims to maintain high demand portions of its fleet while investing in new technologies and returning at least 50% of annual free cash flow to shareholders [11][12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the unique challenges of the current business environment but expressed confidence in the company's ability to adapt and generate healthy free cash flow [6] - The outlook for natural gas appears favorable, with anticipated growth in LNG demand driving higher drilling and completion activity [8] - Management expects lower capital expenditures in 2026 compared to 2025 while maintaining operational quality and competitive edge [11][12] Other Important Information - The company closed Q3 with $187 million in cash and an undrawn $500 million revolving credit facility, with no senior note maturities until 2028 [30] - The fourth quarter is expected to deliver the strongest free cash flow of the year, enhancing capital flexibility heading into 2026 [12][30] - The company has returned $162 million to shareholders through dividends and share repurchases in 2025 [30] Q&A Session Summary Question: Completion services pricing trends - Management noted that their teams are executing well, with high-end work driving performance and minimizing pressure to reduce pricing [40][41] Question: Fleet renewal programs for 2026 - The company is excited about the 100% natural gas direct drive systems and plans to continue investing in high-end equipment while allowing lower-tier equipment to attrition [42][43] Question: Power market opportunities - Management discussed their expertise in power generation but emphasized a cautious approach to entering larger power markets due to competitive dynamics [48][50] Question: Customer discussions amid macro uncertainty - Customers are seeking to maintain production levels despite a softer commodity environment, leading to requests for more technology and efficiency [62][63] Question: Pricing in the completion market for next year - Management indicated that while there may be some pricing movement, overall demand for natural gas services is strong, which should support pricing stability [81] Question: Capital allocation strategy - The company remains committed to returning at least 50% of free cash flow to shareholders while also investing in technology and maintaining a strong balance sheet [87][88]