Financial Data and Key Metrics Changes - Total reported revenue for Q3 2025 was $1.176 billion, with a net loss attributable to common shareholders of $36 million or $0.10 per share, and an adjusted net loss of $21 million [22] - Adjusted EBITDA for the quarter totaled $219 million, with total CapEx of $144 million [22][27] - The company generated $146 million of adjusted free cash flow during the first three quarters of the year [22] Business Line Data and Key Metrics Changes - In the drilling services segment, Q3 revenue was $380 million with an adjusted gross profit of $134 million, and the average operating rig count was 95 rigs [23] - 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 [24] - Drilling products revenue was $86 million with an adjusted gross profit of $36 million, impacted by lower activity in Saudi Arabia [25] Market Data and Key Metrics Changes - U.S. contract drilling saw 8,737 operating days, with activity flat outside the Permian Basin, which experienced a sequential decline in rig count [23][24] - International revenue declined mainly in Saudi Arabia, while revenue outside of Saudi Arabia was strong [19] - The company expects completion services adjusted gross profit to be approximately $85 million in Q4, with less seasonality compared to the previous year [25] 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][10] - Investments in technology are prioritized, with expectations for strong returns on incremental investments [10][11] - The company aims to return at least 50% of annual free cash flow to shareholders through dividends and share repurchases [11][30] Management's Comments on Operating Environment and Future Outlook - Management noted that while oil prices have fallen, they remain resilient, and the U.S. shale picture is more constructive than expected [5][6] - The outlook for natural gas appears favorable, with physical demand growth from LNG expected to drive higher drilling and completion activity [8] - Management expressed confidence in maintaining high-demand portions of the fleet while generating meaningful free cash flow [11][30] Other Important Information - The company closed Q3 with $187 million in cash and an undrawn $500 million revolver, with no senior note maturities until 2028 [28] - The company has repurchased 44 million shares since the NextTier merger and Altera acquisition, reducing share count by 9% [23] Q&A Session Summary Question: Completion services pricing trends - Management highlighted that their teams are executing high-end work, which has allowed them to maintain pricing without significant pressure to reduce it [35][37] Question: Fleet renewal programs for 2026 - Management discussed the excitement around 100% natural gas direct-drive systems and indicated a focus on high-end investments while allowing lower-tier equipment to attrition [38][39] Question: Power market opportunities - Management acknowledged their expertise in power generation but noted that entering larger power markets would require careful consideration of capital and returns [44][47] Question: Customer discussions on drilling and completion - Management indicated that customers are seeking to maintain production levels despite a softer commodity environment, leading to requests for more technology and efficiency [56][58] Question: Capital allocation strategy - Management emphasized the importance of maintaining a strong balance sheet while committing to returning capital to shareholders, with a focus on performance driving pricing [76][80]

Financial Data and Key Metrics Changes - Total reported revenue for Q3 2025 was $1.176 billion, with a net loss attributable to common shareholders of $36 million or $0.10 per share, and an adjusted net loss of $21 million [22] - Adjusted EBITDA for the quarter totaled $219 million, with total CapEx of $144 million [22][27] - The company generated $146 million of adjusted free cash flow in the first three quarters of the year, with expectations for strong free cash flow in Q4 [22][29] Business Line Data and Key Metrics Changes - Drilling services segment revenue was $380 million with an adjusted gross profit of $134 million, while completion services segment revenue totaled $705 million with an adjusted gross profit of $111 million [23][24] - The drilling products segment reported revenue of $86 million with an adjusted gross profit of $36 million, impacted by higher bit repair expenses [25][26] - The company expects adjusted gross profit in drilling services to decline approximately 5% in Q4 compared to Q3 [24] Market Data and Key Metrics Changes - U.S. contract drilling saw an average operating rig count of 95 rigs, with activity stabilizing as the company exited Q3 [23][11] - In Canada, revenue showed strong recovery post-spring breakup, while international revenue declined mainly in Saudi Arabia [18] - The company noted that the completions market remains competitive, but operational quality is proving to be a major differentiator [14] Company Strategy and Development Direction - The company is focused on enhancing commercial strategies through service and product line integration, while lowering cost structures [5][6] - Investments in technology are prioritized, with expectations for lower capital expenditures in 2026 compared to 2025 [9][10] - The company aims to return at least 50% of annual free cash flow to shareholders through dividends and share repurchases [10][23] Management's Comments on Operating Environment and Future Outlook - Management highlighted resilience in the business despite challenges, with a constructive outlook for U.S. shale activity [5][6] - The company anticipates that any further activity reductions could negatively impact future U.S. output, affecting global oil supply in 2026 [7] - Management expressed confidence in maintaining strong free cash flow and a solid balance sheet, with expectations for continued capital flexibility [10][33] Other Important Information - The company has repurchased 44 million shares since the NextTier merger and Altera acquisition, reducing share count by 9% [23] - The company closed Q3 with $187 million in cash and an undrawn $500 million revolver, with no senior note maturities until 2028 [28] Q&A Session Summary Question: Completion services pricing trends - Management noted that their teams are executing high-end work, which has allowed them to maintain pricing without significant pressure to reduce it [36] Question: Fleet renewal programs for 2026 - Management discussed the excitement around 100% natural gas direct-drive systems and the strategy of investing at the high end while allowing lower-tier equipment to attrition [37][38] Question: Power market opportunities - Management acknowledged their expertise in power generation but indicated that entering larger power markets would require careful consideration of capital returns [44][46] Question: Macro uncertainty and customer behavior - Management observed that customers are seeking to maintain production levels despite a softer commodity environment, leading to requests for more technology [56] Question: Pricing expectations for completion market - Management indicated that while there may be some movement in pricing, they do not foresee significant headwinds due to steady demand for natural gas-powered equipment [73] Question: Capital allocation strategy - Management emphasized the importance of maintaining a strong balance sheet while committing to returning capital to shareholders, with a focus on performance-driven pricing [75][79]

Financial Data and Key Metrics Changes - Total reported revenue for Q3 2025 was $1.176 billion, with a net loss attributable to common shareholders of $36 million or $0.10 per share, and an adjusted net loss of $21 million [20] - Adjusted EBITDA for the quarter totaled $219 million, with total CapEx at $144 million [20][26] - The company generated $146 million of adjusted free cash flow during the first three quarters of the year [20] Business Line Data and Key Metrics Changes - In the drilling services segment, Q3 revenue was $380 million with an adjusted gross profit of $134 million, while completion services revenue totaled $705 million with an adjusted gross profit of $111 million [22][23] - The drilling products segment reported revenue of $86 million with an adjusted gross profit of $36 million, impacted by higher bit repair expenses [24][26] Market Data and Key Metrics Changes - The U.S. contract drilling business saw an average operating rig count of 95 rigs, with activity stabilizing as the company exited Q3 [22][23] - In Canada, there was a strong recovery in revenue post-spring breakup, while international revenue declined mainly in Saudi Arabia [17] Company Strategy and Development Direction - The company is focused on enhancing commercial strategies through service and product line integration, performance-based agreements, and lowering cost structures [4][5] - Investments are being made in technologies that are in high demand, with expectations of strong returns [8][9] - The company aims to return at least 50% of annual free cash flow to shareholders through dividends and share repurchases [9][20] Management's Comments on Operating Environment and Future Outlook - Management noted that while oil prices have fallen, they have remained more resilient than expected, with long-term global demand growth continuing [5] - The outlook for natural gas appears favorable, with physical demand growth from LNG starting to come online [6] - The company expects lower capital expenditures in 2026 compared to 2025, while still maintaining high-demand fleet and investing in new technologies [8][9] Other Important Information - The company closed Q3 with $187 million in cash and an undrawn $500 million revolver, indicating strong liquidity [9][26] - The company has repurchased 44 million shares since the NextTier merger and Altera acquisition, reducing share count by 9% [21][22] Q&A Session Summary Question: Completion services pricing trends - Management highlighted that their teams are executing high-end work, which has allowed them to maintain pricing without significant pressure to reduce it [34] Question: Fleet renewal programs for 2026 - The company is excited about the 100% natural gas direct-drive emerald systems and plans to continue investing in high-end equipment while allowing lower-tier equipment to attrition [36] Question: Power market opportunities - Management acknowledged their expertise in power generation but noted that entering larger power markets would require significant capital and may not align with immediate shareholder value [42][45] Question: Completion optimization software - The EOS Completions platform is being rolled out across all fleets, which is expected to improve performance and reliability [46] Question: Customer discussions amid macroeconomic uncertainty - Customers are seeking to maintain production levels despite a softer commodity environment, leading to requests for more technology and efficiency [54] Question: Pricing expectations for 2026 - Management indicated that while there may be some pricing movement, overall demand for natural gas services remains strong, which should support pricing stability [70]