Financial Data and Key Metrics Changes - In Q2, the company generated revenues of $520 million, a decrease from $600 million in Q1, reflecting market headwinds [18][32] - Adjusted EBITDA for Q2 was $79 million, down from $130 million in Q1, resulting in an adjusted EBITDA margin of 16% compared to 22% in the previous quarter [32][34] - Free cash flow improved to $54 million in Q2 from negative $14 million in Q1, demonstrating operational resilience despite challenging conditions [18][34] Business Line Data and Key Metrics Changes - Stimulation services revenues declined to $432 million in Q2 from $525 million in Q1, with adjusted EBITDA falling to $51 million from $105 million [34] - Proppant production segment revenues increased to $78 million in Q2 from $67 million in Q1, driven by higher delivered sand sales [35] - Manufacturing segment revenues decreased to $56 million in Q2 from $66 million in Q1, with a notable increase in external sales contributing to adjusted EBITDA improvement [36] Market Data and Key Metrics Changes - The company noted a stabilization in active fleet count towards the end of Q2 and into early Q3, with modest improvements in activity levels observed [22] - Increased customer engagement around 2026 planning indicates a potential uptick in activity levels compared to current conditions [43][44] - The company anticipates increased demand in the Haynesville region, positioning itself well with significant proppant production capacity [24][19] Company Strategy and Development Direction - The company emphasizes its vertically integrated manufacturing capabilities and sophisticated asset management platform as key competitive advantages [10][19] - A strategic partnership with Flotek has unlocked value and positioned the company in a multibillion-dollar market for gas quality management [16][40] - The company is focusing on a power generation strategy that targets the data center market, aiming to generate revenues decoupled from the volatility of the completions industry [17][30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about market conditions improving, with signs of increased activity and customer dialogue for 2026 planning [7][19] - The company remains disciplined in capital allocation while preparing for potential tightening in the market in early 2026 [20][50] - Management highlighted the importance of technology leadership and operational flexibility in navigating current market challenges [11][19] Other Important Information - The company reported total liquidity of approximately $108 million at the end of Q2, including $87 million available under the ABL [38] - The company executed transactions expected to provide approximately $90 million in incremental liquidity through 2025, enhancing financial flexibility [39] - The Flotek transaction involved the transfer of mobile gas conditioning units, strengthening the strategic partnership and providing financial benefits [40] Q&A Session Summary Question: Inquiry about increasing customer engagement around 2026 - Management noted a significant increase in engagement regarding 2026 programs, with operators reassessing their activity levels and some already returning to work [43][44] Question: Context on increased activity since late June - Management indicated that the uptick in activity is observed across both gas and oil markets, with a more pronounced increase in gas-directed activities [45][46]