Summary of NCS Multistage (NCSM) Conference Call - August 21, 2025 Company Overview - NCS Multistage is an oilfield-focused technology company serving the oilfield services and equipment market, selling directly to major oil and natural gas producers such as Chevron, Conoco, and BP [2][4] - The company competes with larger established firms like Schlumberger and Halliburton, focusing on areas where it can achieve leadership and attractive margins [2] Business Model and Financials - NCS operates with a capital-light business model, outsourcing manufacturing to minimize capital investment and convert EBITDA into free cash flow [3][4] - The company reported a market capitalization and enterprise value just below $85 million, with trailing twelve-month EBITDA of $26 million and free cash flow of $10 million, indicating a low trading multiple and robust free cash flow yield [4] - Revenue grew by 14% or $20 million in 2024, with expectations for continued growth in 2025 despite a challenging market environment [8] Strategic Focus - NCS has three core business strategies: 1. Build on leading market positions, particularly in fracturing systems and Canadian completions [6] 2. Capitalize on offshore and international opportunities, as these markets are growing faster than North America [6] 3. Commercialize innovative solutions to complex customer challenges, enhancing customer value [7] Acquisition of ResMetrix - The strategic acquisition of ResMetrix, a provider of tracer diagnostics technologies, was announced in July 2025 [9][10] - ResMetrix has trailing twelve-month unaudited revenue of over $10 million and an EBITDA margin exceeding 30% [13] - The acquisition aims to create a leading global tracer diagnostics business, enhancing NCS's service offerings and expanding its geographic footprint, particularly in the Middle East [12][10] - NCS plans to integrate ResMetrix carefully, focusing on optimizing chemical usage and realizing economies of scale [12] Market Position and Future Outlook - NCS believes that as the North American exploration and production business matures, oilfield service providers will need to engage in strategic combinations to remain competitive [14] - The company is positioned well for organic growth and complementary acquisitions, with a strong balance sheet and approximately $25 million in cash available for strategic transactions [16] - NCS aims to continue delivering revenue, gross profit, and EBITDA growth with strong incremental margins, focusing on innovative technology for technically demanding applications [15][14] Conclusion - NCS Multistage presents a compelling investment opportunity with a solid growth track record and a focus on expanding its presence in growth markets for unconventional resource development [14]