Financial Data and Key Metrics Changes - Revenues decreased by 5% to $426 million compared to Q3 2025 [9] - Adjusted diluted EPS was $0.04 in the fourth quarter, with adjustments totaling $0.06 related to wireline cables and acquisition-related costs [11] - Adjusted EBITDA was $55.1 million, down from $67.8 million, with an adjusted EBITDA margin decreasing by 230 basis points to 12.9% [12] Business Line Data and Key Metrics Changes - Technical services, representing 95% of total revenues, decreased by 4% [9] - Pressure pumping accounted for 27.6% of revenues, while wireline and downhole tools represented 24.1% and 22.4%, respectively [9] - Cudd Pressure Control revenues increased by 1% sequentially, driven by well control activity and a 13% increase in snubbing [6] Market Data and Key Metrics Changes - The Western MidCon region was flat sequentially, while weakness was noted in the International and Rocky Mountain regions [4] - Growth was observed in the Southeast and Northeast regions [3] - The company expects 2026 to trend closely with large Permian operator activity [7] Company Strategy and Development Direction - The company aims to leverage its strong balance sheet and maximize long-term shareholder returns while focusing on less capital-intensive service lines [8] - There is a strategic emphasis on organic growth, investment in new technologies, and M&A within existing markets [14] - The company is exploring diversification into gas storage and other energy sectors [44] Management's Comments on Operating Environment and Future Outlook - Management noted that 2025 was challenging, with year-end oil prices at their lowest since COVID, but recent improvements in oil and gas prices are encouraging [14] - The management team is focused on costs, returns, and maintaining financial flexibility to capitalize on future opportunities [14] - The impact of recent winter storms on operations was acknowledged, with expectations for activity to improve as conditions stabilize [8] Other Important Information - The decision to expense wireline cables instead of capitalizing them was made due to changes in work type and increased activity [10][51] - Capital expenditures for 2025 were $148 million, with expectations for 2026 capital expenditures in the range of $150 million to $180 million [13][70] Q&A Session Summary Question: Impact of weather on Q1 performance - Management acknowledged the uncertainty due to weather impacts but noted geographical diversification [20][21] Question: Competitors moving equipment overseas - Management indicated some competitors are reorganizing, which may reduce competition in certain service lines [23][24] Question: Potential for stock buybacks - Management stated that buybacks are one option being evaluated, but no immediate changes are expected [25] Question: Reactivation of idled fleet - Management emphasized the need for better pricing and steady activity before reactivating the fleet [38][39] Question: M&A strategy and market conditions - Management agreed that the market for traditional oilfield services companies is less competitive, allowing for a patient approach to M&A [40][42] Question: Updated wireline accounting treatment - Management explained the change was due to evolving business needs and aimed to reflect more accurate usage of wireline cables [51][53] Question: Growth potential in Thru Tubing Solutions - Management noted a reduced international presence but sees potential for growth in the Middle East [56][58] Question: Current state of the pressure pumping market - Management reported no dramatic changes yet but is focused on maintaining discipline in pricing and operations [61][62] Question: CapEx outlook for 2026 - Management indicated that CapEx could be adjusted based on market conditions and opportunities [70][72]