Financial Data and Key Metrics Changes - Total revenue for the first quarter of 2025 was $62,500,000, representing a 17% sequential increase from the fourth quarter of 2024 [12] - The net loss for the first quarter was $500,000, or a loss of $0.01 per diluted share, compared to a net loss of $15,500,000, or a loss of $0.32 per diluted share in the previous quarter [19] - Adjusted EBITDA was positive at $2,700,000 in the first quarter, compared to a negative $4,800,000 in the fourth quarter of 2024 [19] Business Line Data and Key Metrics Changes - Well Completions Services generated revenue of $20,900,000 with an average of 1.3 active pressure pumping fleets, up from $15,800,000 with 1.1 active fleets in the previous quarter [14] - The Sands segment sold approximately 189,000 tons of sand at an average price of $21.49 per ton, compared to 129,000 tons at $22.54 per ton in the fourth quarter [16] - Infrastructure Services revenue was $30,700,000 for the first quarter, a 10% sequential increase compared to the fourth quarter [17] Market Data and Key Metrics Changes - The company anticipates increased competition in gas basins due to strong fundamental support for natural gas, which may slightly squeeze margins in the near term [11] - There is uncertainty in the energy market stemming from tariffs, economic conditions, and geopolitical events, which have begun to affect oil prices [10] Company Strategy and Development Direction - The company is evaluating strategic opportunities to add accretive assets while maintaining a strong balance sheet [5] - Following the sale of three subsidiaries, the company will focus on engineering and fiber within the Infrastructure Services segment [17] - The company plans to strategically deploy capital to grow existing businesses that generate the greatest returns [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the team's ability to drive value for shareholders despite market uncertainties [9] - The company expects steady completions activity in 2025, with potential upside into 2026 driven by natural gas demand [14] - Management highlighted the importance of cost management and operational efficiency in navigating market challenges [22] Other Important Information - As of March 31, 2025, the company had unrestricted cash of approximately $56,700,000, with total liquidity of about $79,400,000 [21] - Following recent transactions, the company had unrestricted cash of $135,400,000 and total liquidity of $202,900,000 as of May 2, 2025 [21] Q&A Session Summary Question: Can you discuss the uplift in volumes in the sand business and your outlook for the rest of the year? - Management noted strong demand in Western Canada for sand pricing and expects a stable environment to persist through 2025 [26] Question: What cost actions could be taken if there is potential weakness in the back half of the year? - Management indicated that the biggest lever for cost management would be on staffing and repairs and maintenance, with a history of effectively managing the cost structure [28]

Financial Data and Key Metrics Changes - Revenues decreased by 1% to $333 million in the first quarter compared to the previous quarter [17] - EBITDA increased to $48.9 million from $46.1 million, with EBITDA margin rising by 100 basis points to 14.7% [21] - Diluted EPS remained flat at $0.06 [21] - Operating cash flow was $39.9 million, with free cash flow of $7.6 million after capital expenditures of $32.3 million [21] Business Line Data and Key Metrics Changes - Pressure pumping revenues accounted for 40.1% of total revenues, while downhole tools represented 28.2%, coiled tubing 9.6%, cementing 8.3%, and rental tools 4.6% [17] - Pressure pumping revenues were flat sequentially, while other service lines collectively declined by 1% [6][17] - Rental tools saw a notable gain of approximately 7% [10] Market Data and Key Metrics Changes - The company noted challenges in demand and utilization for Tier two diesel equipment, with a highly competitive pricing environment in the spot and semi-dedicated frac market [7] - The acquisition of Pentel is expected to increase the company's concentration in the Permian Basin to approximately 60% of total revenues [15] Company Strategy and Development Direction - The company aims to bolster less capital-intensive service lines through organic investments and acquisitions to drive growth and reduce volatility [10] - The strategic rationale for the Pentel acquisition includes improving margins, increasing operational scale, and focusing on high cash flow-generating service lines [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about macro uncertainties driven by tariffs and their potential impact on inflation and equipment prices [25] - The company remains confident in its strong balance sheet and liquidity to navigate volatility and capitalize on opportunities [27] Other Important Information - The company has filed an S-3 registration statement with the SEC regarding the Rollins family control group shares, which is viewed as good corporate housekeeping [24] - The management team remains focused on maintaining operational stability and long-term shareholder returns [28] Q&A Session Summary Question: What are the current pricing conversations in the pressure pumping market? - Management indicated that while discussions are similar to prior periods, the current circumstances may impact these discussions due to lower oil prices and customer responses [35][37] Question: What are the capital allocation priorities following the Pentel acquisition? - The focus is on accretive transactions, exposure to larger customers, and service lines with good free cash flow potential [38][39] Question: What is the expected revenue for the Pentel business? - Pentel generated approximately $400 million in revenue in 2024, with each quarter around $100 million [40] Question: Are there shifts in customer activity towards lower CapEx projects? - Management noted it is early to determine any significant shifts but acknowledged that such trends have occurred in prior cycles [45] Question: What is the visibility on job timelines for fracking? - Visibility varies by customer type, with semi-dedicated customers providing several months of visibility, while spot market customers offer much less [46][48] Question: Is the company considering selling any assets? - Management stated they monitor equipment closely and prefer to reallocate assets rather than sell them, ensuring they do not re-enter the competitive market [55][57] Question: What would trigger an acceleration in capital expenditures? - Capital expenditures will be based on market conditions and the need to maintain equipment, with potential for increased spending if accretive opportunities arise [58][60] Question: Is the company focused on consolidating the Permian market or open to other basins? - Management is open to opportunities in various basins, not just the Permian, and is exploring potential acquisitions in natural gas basins as well [62][63]

Financial Data and Key Metrics Changes - Revenues decreased by 1% to $333 million in the first quarter compared to the fourth quarter of 2024 [18] - EBITDA increased to $48.9 million from $46.1 million, with EBITDA margin rising by 100 basis points to 14.7% [22] - Diluted EPS remained flat at $0.06 [22] - Operating cash flow was $39.9 million, with free cash flow of $7.6 million after capital expenditures of $32.3 million [22] Business Line Data and Key Metrics Changes - Pressure pumping revenues accounted for 40.1% of total revenues, while downhole tools represented 28.2%, coiled tubing 9.6%, cementing 8.3%, and rental tools 4.6% [19] - Pressure pumping revenues were flat sequentially, while other service lines collectively declined by 1% [6][18] - Rental tools saw a notable gain of approximately 7% [11] Market Data and Key Metrics Changes - The company noted challenges in demand and utilization for Tier two diesel equipment, with a highly competitive pricing environment in the spot and semi-dedicated frac market [7] - The acquisition of Pentel is expected to increase the company's concentration in the Permian Basin to approximately 60% of total revenues [16] Company Strategy and Development Direction - The company aims to bolster less capital-intensive service lines through organic investments and acquisitions to drive growth and reduce volatility [11] - The strategic rationale for the Pentel acquisition includes improving margins, optimizing assets, and increasing operational scale through M&A [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about macro uncertainties driven by tariffs, which could impact equipment prices and overall industry capital spending [27] - Despite the challenges, the company maintains a strong balance sheet and ample liquidity to navigate volatility and pursue opportunities [28] Other Important Information - The company has filed an S-3 registration statement with the SEC for the Rollins family control group shares, which is viewed as good corporate housekeeping [25] - Steve Lewis has been elected to the Board of Directors, while Gary Rollins and Pam Rollins have retired [29] Q&A Session Summary Question: What are the current pricing conversations in the pressure pumping market? - Management noted that while each cycle is different, customers are responding to lower oil prices, leading to discussions that are somewhat similar to prior periods of market softness [37][38] Question: What are the capital allocation priorities following the Pentel acquisition? - The focus is on accretive transactions, exposure to larger customers, and service lines with good free cash flow potential [39][40] Question: What is the expected revenue contribution from the Pentel business? - Pentel generated approximately $400 million in revenue in 2024, with quarterly revenues around $100 million [41] Question: Are there shifts in customer activity towards lower CapEx projects? - Management indicated it is too early to determine any significant shifts but acknowledged that such trends have occurred in prior cycles [46] Question: What is the visibility on job timelines for fracking? - Visibility varies by customer type, with semi-dedicated customers providing several months of visibility, while spot market customers offer much less [48] Question: Is there an uptick in gas-directed activity? - Management believes any increase in gas-directed activity is likely further down the road, although there are some early signs [51] Question: What are the company's thoughts on older equipment being sold by competitors? - The company has seen opportunities but prefers not to invest in used equipment, focusing instead on reallocating assets within its service lines [58] Question: What would trigger an acceleration in capital expenditures? - Capital expenditures will be based on market conditions and the need to maintain equipment, with potential for increased spending if accretive opportunities arise [60][62] Question: Is the company focused on consolidating the Permian market or open to other basins? - Management is open to opportunities in other basins, not solely focused on the Permian, and is exploring various potential acquisitions [64][65]

Financial Data and Key Metrics Changes - Total revenue for Q4 2024 was $53.2 million, a 33% sequential increase from $40 million in Q3 2024 [21] - Full year 2024 total revenue was $187.9 million, down from $309.5 million in 2023, primarily due to decreased utilization in well completion services [21][22] - Net loss for Q4 2024 was $15.5 million, or a loss of $0.32 per diluted share, while the full year net loss was $207.3 million, or a loss of $4.31 per diluted share [27] - Adjusted EBITDA for Q4 2024 was a negative $4.8 million, improving from a negative $6.4 million in Q3 2024 [28] Business Line Data and Key Metrics Changes - Infrastructure services revenue for Q4 2024 was $27.9 million, slightly up from $26 million in Q3 2024, with full year revenue flat at $110.4 million compared to $110.5 million in 2023 [23] - Well completion services generated $15.8 million in Q4 2024, with an average of 1.1 fleets utilized [25] - Sand division sold 129,000 tons of sand in Q4 2024 at an average price of $22.54 per ton, down from 163,000 tons at $22.89 in Q3 2024 [26] Market Data and Key Metrics Changes - The company noted improved pressure pumping utilization and strong demand across various businesses, including engineering, fiber, and T&D services [10] - There are significant bidding opportunities in the market related to engineering fiber transmission and distribution [14] Company Strategy and Development Direction - The company aims to unlock value for shareholders while maintaining a strong balance sheet and evaluating strategic opportunities for accretive assets [11][12] - Strategic investments are being made to add equipment and crews in response to growing utility demand [15] - The focus for 2025 includes organic growth, particularly in infrastructure services, with potential for acquisitions if beneficial [38] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about demand implications for natural gas driven by LNG export capacity and electricity demand [22] - The company expects steady completions activity in 2025 with potential upside from natural gas demand [17] - Management emphasized disciplined capital stewardship and alignment of spending with customer demand [26] Other Important Information - The company had unrestricted cash of $61 million as of December 31, 2024, with total liquidity remaining strong and debt-free [32] - CapEx for Q4 2024 was approximately $6.1 million, with a budget of $12 million for 2025 focused on growth and maintenance [29] Q&A Session Summary Question: Where is the best growth potential for the infrastructure business? - Management indicated that most growth is currently organic, with increased demand from larger IOUs and potential for co-op involvement [38] Question: Can you provide details on the rental business and its growth drivers? - The rental business primarily serves E&P companies, with opportunities in the construction market and a broad portfolio of assets including helicopters [42] Question: What is the outlook for the sand business in 2025? - Management noted stabilized demand and the ability to expand capacity as key drivers for growth in the sand business [44] Question: Can you break down the CapEx outlook for 2025? - Approximately half of the $12 million CapEx budget is allocated to growing the rental business, with about $5 million for pressure pumping upgrades [46] Question: What are the primary focuses for the company moving forward? - The focus includes rightsizing the company, evaluating existing businesses, and exploring potential acquisitions now that the company has cash available [48]