National Energy Services Reunited (NESR) 19 Nov 242024 Q3 Earnings call transcript

Greetings, and welcome to NESR's Third Quarter 2024 Financial Results Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host Blake Gendron, Vice President of Investor Relations. Thank you.

You may begin.

Thank you, Donna. to Quarter welcome Earnings and day, NESR's XXXX Third Call. Good call, Chairman today Angeli, Executive today's on are overall me results and third Chief will quarter our Sherif Officer. On Stefan With performance. and Foda, Chief and comment NESR; Officer Financial we of prepared we questions. remarks, our open-up the After to call will

our be materially to and forward-looking. are These earlier those involve risks Before filings. like participants SEC these therefore some today remind we statements. begin, differ of and today our refer making that that results could projected in you cause uncertainties other our filed from latest I'd the to statements we'll I release earnings matters to

financial comments may include Our today non-GAAP measures. also

in to on most financial on the comparable reconciliations release, details Additional which our the is be website. directly GAAP press found measures can

contact to after us may with the you questions any free feel Finally, additional have. call

on information contact Relations Investor is Our website. available our

Now, I'll over call Sherif. to hand the

and gentlemen, Thanks, participating morning, Blake. in and call. thank Ladies you conference for good this

quarter strong, third year. once again of robust growth first on even following top was half last XXXX, our Our of solid

in extremely prospect years. drilling, the core bright, remains with fourth EBITDA, technology We and revenue, frontier business all-time prevailing on recent overall Combined accretive NESR's fortified NASDAQ, am by to water in fracturing and coming and poised solid both am reach and cash opportunities the balance in in hydraulic new our our direction is activity highs MENA report encouraged execution, particularly and segment. for for And market increasingly extremely quarter decarbonization outperformance, stable, returns. Despite in the I shareholder and in uncertainty, continue both the prudent growth the market new sheet rollout, remains flow. I to outlook that relisting our pleased EPS, market and

first to outlook. discuss quarter on some I sheet balance positioning, Stefan results want Before macro third solid and offer our to thoughts to passing the

positioning overall in generation, and continue push cautious landscape. I'm fuel to expect entire in extremely continued the my to exciting cash sector NESR that with the to expect the growth, gas and Saudi Our proud MENA we our to growth which on they milestone produce we underpinned will leadership NESR's These from our drilling energy growth core, on performance pragmatically areas X frontier we messages prepared and in healthy, as that in delivery balances the as and technologies, macro in such us development. Two, in water sustain outlook technological are now driving of margin the performance and outperform one, business. If alongside an key envelope countries, come. near-term exciting in the remarks, continue reinvest development there areas managing key the expected our recent are, and outperformance remains also really afford both minerals. otherwise organization, NESR NESR market areas years to over strong with and are unconventional of sector opportunity solid broader are to by the focus

sector, energy the upstream certainly sentiment especially energy overall and to has first outlook in The macro. commodity impacted Turning for the services.

cautious is accelerate to Africa of and is there on again particularly plenty overall stable, today Kuwait, appetite of Algeria. will and activity in is further years Libya countries growing to with global recent the that growth couple steadily, believe a than is like upstream growth we even MENA more expected basis. Encouragingly, lead outlook growth ago, places months remain like was While activity X in percentage the next it which for MENA North

softened to landscape growth region capital the For and activity matched opportunities resources NESR, should hardly across cater rapid presence. MENA have equipment we geopolitical significant the stable materialize capital We can from and the scalable easily improves add financially. Overall, market human narrative. for

coming in the gas and and region. energy growth to for of sector We take activities will strategic remain the Case unconventional the the the of it capacity grow very XXXX. contract of specifically ambition good given will secular the the story a long-term importance substantially the where project, which visibility because in nature place, have is by gas Saudi point domestic

to the now portfolio. Turning

in First and continued to outperform business core foremost, our subdued even growth environment. a

tools the field include culmination from Given to Kuwait, countries. Example single than the X in several the we frac leading our technology interval our target leverage The marks of anchor with the technology. We research, driving Saudi other upside platform hand year development next able forward solid run. these success, next Egypt in goals of high-quality direction the size given the market significant. in opportunities it and is from could to expand our the around already have Steerable regional platform gain duplication success, than per of The manufacturing share the across pull more Tier years. new compared a grow commercial testing formations. billion and contracts in This global the to $X peers, drilling joint to signals growth fleet drilled, Tier nearly over within in run viability industrial the in other through carry to announced and drilling multiyear milestone our contracts in the repeatable room Saudi MWD consolidation outperformance core of of unconventional that ROYA technologies. Recently, center ability is X investment, our successful our to which sophistication relative resources. With we our in XX,XXX but and smaller to our enhancement, for in in X a countries first ROYA years dynamic importantly, include more of to complete of and in and reliability service of and Arabia personnel the Steerable, provision reservoirs drilling direction Rotary was spread in LWD growing feet our with as continue the of is different deploy more is Kuwait, expect our direction success in expertise training Oman, share and there segment drilling the potential the this core share revenue team our we and more and our our MWD. performance confidence Oman, It's which Rotary across the

we Another NESR doing are opportunity completely largest through unique involves our our customer. with a defined work real-time at being in new is market collaboration that

circular them aimed Our the outside which circular a economy. In in originally water quarter, oil supplier the spoke solution third NESR the a we we heat desalination Applications, technology fit challenges. or One energy Dutch within called multiple Environmental industry. and announced our such or economy and technology the Dynamic a of economy we & client adapt from before, gas investment industry establishing the circular low Recovery, is multiple is NEDA, chain. Often, of NEDA of is Decarbonization Dyvar chemical value as Vapor MENA specific technology times basket our Salttech found at BV, dairy to and

worked rare efficacy Dyvar the customer for X technical from Over adapt couple water and during process, the specifically produced including the earth water minerals salinity we pilot projects recovering with the our largest this a of of in the in water and The And high reservoir past to native we evaluated area we've to of multi-circularity have the our valuable for that mineral this development is excited produced water-starved MENA strontium are and and scale-up recovery. very are longer-term acquisition Salttech remains while region. model long water. extremely the of signal prospect confidence lithium such a country. Furthermore, to as years, metals successfully medium- desalination cycle, the our in executed

conclude of Our local share on over open the driving in excited Ringing due to for our and Stefan our platform combination and York successful to the know-how, for foundation Expo NASDAQ the our customers operational now, agility, technology trust in further open-mindedness But as our and that tomorrow but strategic is field. I'm I our in serves is initiative hand of updates call the success in detail. extremely the discuss including technological City. time, to innovation, Tech financials New & Bell will

environment to Good Middle afternoon, third Thank morning financial Europe. very NESR the our third you, detail. Despite has of East, exceptional during 'XX first X the worldwide macro our and East, 'XX good pleased headwinds and/or for results Africa, the quarter geopolitical through results the achieved in the in the and North months U.S. audience period. and I'm the go the our Middle Sherif. in to Asia volatile good audience evening quarter in to of

cover First, revenue. let's

quarter X-month year-to-date in third revenue Revenue X.X% the $XXX a overall million, is exceptionally is year-over-year, up period Our activity Gulf $XXX.X with sequentially the which countries. XX.X% XX% million, and up strong for is year-over-year. record

the We growth X quarter year-over-year first in largely through the fourth quarters to growth expect match 'XX. the year-over-year of achieved

of remainder Middle for 'XX into will by growth that North is market view continue the as 'XX, Sherif. the African East, across and Our outlined

is margins a third EBITDA. on Adjusted approximately to 'XX. of exiting is and is to QX XX.X%, also NESR record lower tax around XX.X%, quarter debt. $X We 'XX 'XX on million, expense with basis. 'XX the of XX.X%. Interest be XX.X% of 'XX the The XX turning is Now, effective XXX period with quarter it ETR with million margin expect ending QX $X.X for year-over-year, September, up QX substantially line a $XXX.X XX.X%, a QX with of XX.X%. year-to-date EBITDA sequential Year-to-date adjusted adjusted up margins million, basis flat for rate points to million, for the 'XX EBITDA would and 'XX $XX QX is with QX be should in

of as the reduce for excluding up up abate Earnings cost our credits North follows: audit; third were African is credit EPS. and to EBITDA made $X.XX country. items and and quarter EPS charges for adjusted controls XXXX period, and adjusted for the X current of should overhead; year-over-year. used The which to $X.XX material is share, of XXXX after year-to-date charges expected cost, weaknesses, XXXX, losses, of turning and the restructuring was mainly remediation a which per impacting XXX% principally Now, credits which

liquidity, our to is which very turning that is discuss. to NESR a Now, this proud story

the flow $XX.X very as we cash operations strong, generated during of third quarter 'XX is Our from million.

down quarter period, cash to bank year-to-date company period the the million. collections, and was $XX.X the pay quarter strong For 'XX significant drove million. which used for $XXX.X exceptionally third was debt. DSO $XXX XXXX a is we to million, this it year-to-date best. Free our near third due customer And generated for is principally to The flow

a XX-month a 'XX, third As and X. of fell to strong to the trailing achieved where of results of below end operating significant good flow which stated conversion, debt our the is cash EBITDA milestone target net of our at adjusted result quarter the we X.XX,

end at comparison purposes, the For were the we and 'XX, at end X.XX of 'XX. of X.X at

year last million. 'XX is and XX% nearly XX% year-to-date, expenditures and the of decline XX on levels outlined the the during drilling the Directional $XXX million. months our relatively September is 'XX, driven for on months, top over $XXX 'XX. debt the X net 'XX, the has our capital of full of debt still ROYA gross XX% in flat to CapEx system delivery developments Our which in inventory vicinity improvements growth DSO the Working be first the period. Capital Drilling same strategy process despite minimized revenue XX, levels capital million, expansion remained our a have of the $XXX just is Sherif. of million, of over of supportive have first due XX $XX and resulting in that decrease to Working expect enhanced We Tools, been days efficiency, by in by is of

capital has employed trailing forward. and above XX, resulted only on reaching going XX%, our 'XX, in the this basis on September XX-month improve return of percentage at should All a

Now, some to on housekeeping topics.

overall, upgrades of and X better as procedures our are on X last processes, system. a company forward updated XX implementing latest to the you reshaping ago weeks software back at -- well office were looking company seen, October, the NASDAQ relisted on plus closing spent with we to new As of back our and part ceremony ringing We've tomorrow. as as years bell the the Tuesday X and and we controls, the have years the NASDAQ ERP

control remediation has adjusted Africa expansion, with of back latter results, North weaknesses and support. efficiency, focused outstanding all. In East very overall. The and EBITDA, continued of the positive growth, to of our But to like and debt look during capital the and the delivering that of remediation for continues conclusion to be financial workforce our X We efficiency updated Middle is accommodate NESR our Middle efforts the remains soon, revenue reduction of the efforts. procedures good. during operational we in generate have together to targeting. combined be with company technology the demonstrate office news on revenue favorable, working entire inquiries investigations, third to its quarter been region year-to-date the strengthen flow that growth future of profitable the region cash confident delivering continues 'XX restatement, controls and period, East thank across are processes, behalf NESR the conversion, and 'XX, their shareholders banking have transformed to and Africa years drive their 'XX and This record summary, very are on concluded strong internal able for we would pay very for for internal I goals audit. these execution These have sheet management, performance. On after almost results should directors, which debt and we'll drivers control the to strong for to to continued used continued healthy consortium down The and future balance strong North our execution be growth, stated

Now, Sherif. back call turn I'll the to

Stefan. Thanks,

me by the Let conclude from key highlighting quarter. our takeaways

First, MENA but Not market. meaningful we've I we coming runway ROYA only leave also be further is to our will a expect that for also both the growth and belief to returns business with progress accretive contributor would the achieved core continue outperform our tangible you over and development, expansion, platform years. to in broader there this like

have solutions Cactus, have success will had to to with technologies introduce Phoenix, we and We customer the for with America region, our Scout, similar from continue new partners as others. Beyond to tailored their North

Salttech portfolio, Our and and in mineral several work of years segment some in water follows most being NEDA interesting is piloting company where our done. And of are specifically strategic mineral the successful recovery the our and success. investment

our execution. I business close next their continued future the our the families need more we scale employees, would support. level by couldn't the I for Now their of like the valued customers about excited thanking take to to and to partners and be water NESR. all for and

see all where New building, I forward Looking present and of several operator NASDAQ manager our for we the you flew of executive region your question. the engage many from at that, to our over you. And to pass of the York with technologies have to and to the tomorrow call key Donna? with

coming from first Anderson David Barclays. Today's Instructions] is of [Operator question

to glad forward and I'm to back I'm you formally event. doing great. here look have I tomorrow night's

the of of just Saudi. a maybe if give a onshore is down, I kind of what's could So maybe coming you overview Can focus sort going question us us lot year complicated so of and months? just on how this slowing see you the gas. little kind first going a changing offshore of on just a in what's feel of Saudi overview you in up, It's happened been sort bit. that like year, XX they're of over next give far

David. Thanks, Yes.

maximum million a million sustainable to XX So down the where after Aramco had is put to as by plan only from And the XXX,XXX XX-million-barrel from outlined postponed capacity capacity they there go clearly XX having barrel million. million to by land. leadership offshore to and Saudi they coming from obviously, XX coming and to add be XXX,XXX plan that total X was

So they planned rigs. released the increased

additional they way So almost to XXX,XXX-barrel were jack-ups as decision, releasing plan basically the that started was which planned all are that with XX XX. being very then the which postponed. approximately, is Saudi to people -- the go used And that to reached capacity, offshore Saudi, for high. And they for it. the familiar jack-ups be They after

this and gas, saw plan gas to excess or projects, the place of they have the their on to associated their generation of oil success to lot year. Then they XX% that where power this the renewable Kingdom basically and in move by cetera, of unconventional, started a on that, top XX% with China there is the for release and happen, the when on So And et the earlier obviously of slowdown took rigs whatever. that XXXX.

decided the took release of for responsible more land place. that So to oil and rigs they which is

that's the So X rigs released. over of last place the that And extra that to months. some X took were

the reached if they time look all again, oil And total this was do when which people, but have don't lead demand I Saudi can because at lot needs are keep can again million. Now, XXX. and that not it poised deliver to actually. in of that true a not rig the count an capacity it, it very drill XX for are high saying that oil do it, for increased did right? on the disciplined the happen. skeptical the about need when additional nobody you OPEC+. the And And capacity rigs Saudi, of it's million, XX they And of they again, They and

-- excess that's the released So they why rigs. and

if gas, second project Jafurah and is part, is move keep Now, which the your I the unconventional extremely to they which rigs. unconventional, adding successful, the is

and barrels So million is the And a is associated get as scf, project has XXX that, which XXXX lot as first then of count. the And of then XXXX, basically might get XXXX. some you the is NGLs. actually gas, of rig well, the the not that of a people you delivery touched, on increased being that only lot and XXX,XXX gas know almost you first have

sure make available Royal have diesel, -- which from happens, that need that is million export. know some the if will basically not the So this make power. last don't will this Highness barrel that burning highlighted they it for people the all in place, for additional away again, X which almost crude hot domestically, is that a is which ensure good available. The definitely is to very as His will, then that's not oil and month, this there might an is, take plan move summer again, they does there thing by And this

answered So question, I hope David. I your

have how We've broadly of of seen specific, ramping the does So level. sort now? Do that at You mid and sort from level come to how how kind do months does of activity set broader up Or don't kind Jafurah these levels in rigs you things Saudi? -- it the a of of expect things here? activity look stay but like next off. get keep sort need XX of look speaking, sort to

going be personal it's now down, my of will which to going No, some what being in bit obviously, as Jafurah to a the stable some drill to call for is basically to because is I part. obviously maintenance, think is what extended outside -- be happen, on oil stable put don't are opinion, need you rigs again, they

it just put going You and increasing. keep the on then maintenance to Jafurah is

in I 'XX be in 'XX -- in gas Saudi, in would unconventional. overall because be stable increase drop oil and So activity will by over would 'XX the compensated that say

depends all to it industry, going where service each 'XX. expectation right? So grow 'XX play, for for Now NESR, are over we our

We had. strongly. will continue that positioned we growth believe profile very we And that we are

that poised poised on the and being other project that activity -- the Jafurah, on part are gas the obviously, besides with of we the drilling portfolio. The more we have

not rotary or have. have did now past. We direction not not did steerable have So LWD. MWD, we the in And did We have that drilling. we

because additional for an the It's quite have that's So I us. contract. unique

'XX. So did any much now not becomes can in issue the in deploy deploy 'XX? we how We

'XX additional much be and an 'XX. this of over for will how So us, that,

your And that overall, favor. the the works in so the mix shifting is

time. you for, Can you've give Jafurah? you're doing a Jafurah But on know have a just overview one question on of us today of Jafurah. final field long, what just gosh, than I on quick the just me offshore. kind been obviously had for you more long You

You were ones it. who the unlocked

to tendered, the more where in over are you services field? of of expecting you the And some months? say, kind So be tenders? today next what And expecting the different you're that are see are to X

Sure.

record all it. -- say, a the is it and frac an right? entire the have impressive a XX Saudi days in took field I Arabia. every Saudi wells in you And just my to world-class for while I obviously, I the from it like XX. mean, Jafurah, and it again, it's Board to we and and very They would went to So now outstanding by entire making project -- the actually beat drilling working, U.S. is means. the saw was see XX So it's

in coming you but is big Jafurah Saudi have -- running call is So have you rigs that Jafurah. there. has -- right, have today, you And picture you the which have of X -- the what unconventional they new

the awarded. well that direction in involved, obviously we as cetera. the they the in our And the people rigs. direction, And we the well have mud, in the cementing they in et And have the in drilling being project obviously, -- added in now people involvement drilling, cementing. So right? So which companies on multiple contract you is that is involved, just front, drilling, drilling, got

-- direction So the we have drilling, you have and in suppliers. multiple

now the suppliers big Because And doing drilling direction increase we from like big then X of today, are are a around one in is arena even size. basically have working. the it's both of player. and from us one from of X the players side, -- the to recently the there X one going us obviously we are You between the guys, third Why pilot Jafurah smaller that? And guys fracing dramatically they the and a on of today big of -- is the X. them. And

going for to Once all to to planning year So this XX,XXX obviously, for than are are XX,XXX this basically we know, stages stages the more go per you they is take then people players is place. us. year. there to the that completed. And stages, And X X,XXX, of this that room will way X,XXX go

or Saudi in everything goes the East definitely to Arabia So tendering will tender. Middle happen because

sometime we obviously, should never the process is, be year. always The people And So but happen bidding then participate. say, as will disciplined, market will know. next that approach you

of more Bcf stages is the those be award in by there will And XXXX. poised the again, X project complete the years. So to number for to suppliers, be coming able

this are really, outstanding. is performing And are the rigs wells to the technical So limit. going The of place. drilling at really take the all almost definitely,

from The next BTIG. Gregory is of Lewis question coming

'XX, we're hoping get I the and try blend a rollout the kind sense kind could mix was kind for cross-selling the kind of for, kind in of just versus in revenue and expected sense see that together ROYA of think 'XX of the of to as that we Sherif, of of the of growth MENA any kind you about rollout those outperforming versus growth like opportunities of in in market ROYA? cross-selling to then layering

Sure, I mean, I would say, the market overall year-over-year. in MENA would be plus a single-digit

say, So should 'XX we go, should say, over always double 'XX let's and growth. we that X%, X%

So should at, at whatever platform, that. is is this addition growing Decarbonization the the that double Direction the market we to all be rate. The ROYA segment, Drilling,

key once the equal viability it's So what take direction is drilling can is provider, to sense Middle big the should in believe to to that that's, I have that the gain be proven we commercial to XX able they XX, is we a of we the in something share, the success perform the rigs, of -- we articulate East try have think, because contract. the contracts. And

You have Saudi Kuwait. have to Oman contract to main customer Arabia, countries And the deploy have that today, able technologies. our be of a operation, those with long-term to and in X we

like, and, we very the what are technology steerable deliver way a of prudent it. technical now looking those at rotary need So, that to you if is we on taking

the I I dogleg obviously, the that because always credible. sake, this. My maintain can We to always build what when exists deploy in higher guys severity do can we we of know we big par to customer, we with can than So in be for is want this at today market. be formation. the the

see benefit the customers the us deploying of the tools. So

that of in be or addition waiting on able very and obstacle I With for how no contract, revenue much deploying no have awarded But will which on already in to contract will the deploy. contract be the to to speed to year-on-year. I is have have. thing speed be me of good a success the determine growth or issue

the speak. the customer. a the talk definitely We're third about decarbonization, On XXXX We as of running is pledge. lot COPXX the the element, talking the we about methane is appetite

it big Dhabi. just ADIPEC everybody important very definitely, subject. So We Abu sustainability something wants to in important. The still that monitor. from extremely came is a is It's

the we I a need in in think water resources careful desalination, call starved is no water it, manage think It's We capita. to all of we on I per there I world live place it's be from starvation how our the a -- like, is planet. rain. as actually bottom

for the this So the is well industry to energy water all right. be not disposing produced of

and basically that item as the service. power big be well can pay lithium, renewable get We very it think think we we So solution need that from are of for minerals We which agenda, the on there. that doing think to get that take make the produced can is comes a can that. we find if on economical. We which we water sell and we margin lithium it, from

So exciting things. lot of there a is

is think willing of the for But rich this. to world, sake the do that take being key is repeating and the I on be like sustainability, able that And to to again, should the and scale customer a the front. works project the what Now you ours matters. keep give I The that. obviously, again, risk tests industry climate, some you with

of Okay. a Great. is And ramping OPEC+ Saudi start then to question. debate kind going -- when and again. to going Arabia production have I obviously is did when There's ongoing if the

you're about of to kind is that, as levels XXXX? at XXXX the all Just if maybe does Is we that it's that were that XXXX, activity additive happen non-event? thinking or think that some in a if and how at impact in point of about kind

be the all is Middle East depends. The or above. needs There mean, look, lot I of out mean, a No. there. that I price at it level narrative oil to

happen. notion this just with oil the flood open all tab So to market they're the not is to up going and that going

need continue the their well is oil the with will economic price to to they market growth. pragmatism the they to healthy they ensure that do for -- what So remain need is balanced and

supply. and is on is the our all that forecast demand made all comments that I So based based and on

whatever to the Saudis Now, of their producer that, with another if to will for there eliminated or some reason, production activity go for then of and for others and from have sure is get up drop the make production up the the geopolitics, much higher. come

needs our same, So is cut, OPEC+ oil. which foreseeable future China their then the oil and until remain based comment and the from price the our on an for demand world comes analysis back the more

et Now, happen. the notion that if the activity cetera, think single-digit more U.S. activity the probably that that we market. and that remain 'XX, replace I game, narrative on are the cetera, are price doesn't activity -- and But And taking low the can will somebody gets and and most go you President Russia et yes, to price back the about oil of Trump East will it over oil and depending as has the said, to economy all Middle 'XX is oil If further stronger, and the gas. will of we up. outgrowing really another,

that. core supply country. remember is have off, to chain, part have in employment, the is This not everything industry the this people the main XX of So of business that you

will people protect it. So

from [Operator Sandler. Derek Podhaizer Piper Instructions] The next question of is coming

Sherif, congrats on the relisting.

can activity to and the our to think growth meaningfully margins What your what in it would to for drive comment it does years? over about Just can build-out mean to ability need investment order you your what equipment wanted that to How pricing next of regards And related, in go the new your you for how about base to cycle? couple that region. MENA capacity? service go and in means should Where higher the we back and today? cater CapEx to

far, year I mainly of this spent million got Derek, tools it's another and this I'll As the we've is we've bit here. take the which million, in right? CapEx year $XX ROYA coming Stefan said, so out. first $XX question,

next again say flattish let's year, XX% some higher. -- if $XXX that just next be -- of grow next greater if NEDA were on the on right? our to take, which that, Again, looking sort we're than XX% growth. we But will $XXX be from we year million, would CapEx For to we're ROYA there projects year, any to right? the revenue would give the at CapEx of X% obviously X% was CapEx or that, If million be CapEx right? the And get We growth to anticipating think right?

conversion little it. a Got that maybe flow of free color That's the cash incremental And CapEx. on helpful.

free how of Just overall should flow about cash think generation? view we the the

$XXX million X XX% efficient. for we're done let's best, to probably at conversion. We've flow But the the as working pushing XXs, think last I conversion looking have with probably just of will less say, And down keep years, over XX% down well now, and do year, But capital our be EBITDA. DSO would it high some we'll I flow at keep next to CapEx about it cash Right pushing cash very tough right? free growth, free right? We'll inventory I elaborated.

with companies Got about talk it. the Great. wanted to about deploying those that follow-up I That's U.S. helpful. mentioned, the how partnerships My should in technology North region. Sherif, and question, America shale you we MENA think

MENA next to Just the evolving these would scale You maybe should pointed that time where bring couple over looking where U.S. you're on helpful. what is think Cactus adoption over and is and How the overseas? some we on technology out versus shale Phoenix. more years? products color of And about be

Sure. best-in-class at Saudi, Permian you being if for mean, the is deployed. everything the can for unconventional, in you and I imagine the example, look

exactly started It's we guys, that. to to that's platform, We back So Aramco, in like, said. that bring not with use going said, have because and what I that's journey are are we we you have when and open the we best-in-class. that, XXXX

did to see How that? XX, what moved being the XX to did what XX did the the do shale achieve And U.S. technologies. up teamed in they do what how exactly that's and they pumping X is the and that? And use, leadership we technology obviously right? for X, and to to we we XX managed hours. those has What who going their are looked with stages used from We we and at customer under what, how is

trees. frac our We very my doing in use wellhead and very, is John the and very, different Cactus So good drilling and their Phoenix motors. on our

Aramco solid it or very technology say, a bring customer. vet technology check that TTR they is this trial next technical why and free what transparently. I be the umbrella local the this trial here way we partner. is that do this the better? and with obviously, the is they see we very department. think we say, we is it is it is during we record, and Saudi, again, do present brand what a being and I is used cetera. next the oh, We understand, innovative, test. they a which with And level, check for bring and lot strong This very this will track We say, call we extremely customer it Phoenix. -- is prove there. And we the it, we don't under to And through of of no. going have that so unique have and way people call -- are the you have very, test, the And -- they the obviously, works monobore the good on they go plugs. player, we there level the is to the company Scout We this net, and then and on is will They We us, again, is took the et trials. When best-in-class When Cactus, in do milling see test that the Cal, the what and our to perform technology, that a then we this work

we into to think, go we to with I go faster snubbing the stage. see especially once XX,XXX So should on are we some looking partnership finalizing,

on Managed not unconventional We and with both are Pressure which unconventional. in Drilling, is very working Beyond, MPD, close now

those well pads. that perforation down without operation, frac technology rig of to will Saudi well, today of package, on the speed and do partners up, timing. And rig We the mentioning of level we some have region. what is I that the think, type of size between in are there we that couple the work on operation There only be as are the MENA U.S. some Arabia that is or bringing and at else in as could like But reduce we names. to do in we professional just type wireline, understand, a at to there. looking looking the at looking and We're in their second

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process. supply So Middle And the a the they're challenge going to go East. that is in infrastructure again, through chain

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even et So sand, sand. regional now all local we We sandboxes, use actually use cetera.

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this I the for like to time, to would floor comments. back At Mr. Foda turn over closing

tomorrow. all very lot good their much. families, of to We now our had looking everybody again really people all would all the all appreciate you see our to put. are Thank time forward and a banks, has partners. thank We We that a like all our employees, very shareholders, time we our

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and Ladies gentlemen, this today's event. concludes

lines webcast your your disconnect and time, may at of off the log You enjoy rest the or day. this