National Energy Services Reunited Corp

Greetings. Welcome to Nestor Reports first half 2024 financial results. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to Blake Jenron, Vice President of Investor Relations. Thank you. You may begin.

Thank you, Sherry. Good day and welcome to NESRA's second quarter 2024 earnings call. With me today are Sharif Foda, Chairman and Chief Executive Officer of NES, and Stephan Angeli, Chief Financial Officer. On today's call, we will comment on our second quarter and first half results and overall performance. After our prepared remarks, we will open the call to questions. Before we begin, I'd like to remind our participants that some of the statements we'll be making today are forward-looking. These matters involve risks and uncertainties that could cause our results to differ materially from those projected in these statements. I therefore refer you to our latest earnings release filed earlier today and other SEC filings. Our comments today may also include non-GAAP financial measures. Additional details on reconciliation to the most directly comparable GAAP financial measures can be found in the press release, which is on our website. Finally, feel free to contact us after the call with any additional questions you may have. Our investor relations contact information is available on our website. Now, I'll hand the call over to Sharif.

Thanks, Blake. Ladies and gentlemen, good morning and thank you for participating in this conference call. We are pleased to report continued momentum in the first half of 2024, following a solid 2023 and ahead of further expansion for the foreseeable future. Despite the uncertainty caused by ongoing geopolitical events in the region, As of today, I am pleased to relay that the multi-year outlook remains robust, driven by historically high activity levels and rig counts across the MENA region. Before I hand over the call to Stefan to discuss the financials and progress on our remediation plan, I want to first provide a business overview and an update on our geographic footprint and portfolio positioning. I'm proud of our entire team for successfully managing the business over the past couple of years in close collaboration with our supportive customers to achieve remarkable growth and technology gains as seen in our strong results. Over the past year and a half, we've made progress in the two key areas of our growth strategy, core and frontier. Focusing on our geographical footprint, with the establishment of additional anchor countries outside of our original position of Saudi Arabia and Oman, and also expanding our technological reach in our drilling portfolio and our decarbonization segment, NIDA. Geographically, over the past six quarters, we saw substantial progress and benefits from our recently established anchor countries. We define anchor countries as those in which Nesr has prominent market share in multiple core product and service lines, a foundation from which we can build our share, import technologies, and pull through other segments to broaden our service scope. In addition to Saudi Arabia and Oman, we've grown substantially in Kuwait, UAE, Iraq, Egypt, and Algeria. Having established our vision and core services capability to become a leader in cementing, cold tubing, fracturing and stimulation services, well testing, slick line, cased hole logging, fishing and downhole tools, and tubing running services. In other words, for the majority of those product line, we want to have a top five market share position in anchor countries. This allows us to better leverage our supply chain, infrastructure, improve operating leverage, and grow other segments with plenty of runway in existing service and new technology in each country. In Kuwait, which remains a notable driver of growth in 2024, we continued to integrate and worked diligently to qualify additional segments which laid the groundwork for pivotal, long-term contract awards that make room for additional service and technology introduction over time, such as drilling segments. In UAE, we greatly expanded our footprint organically with key multi-year contract wins in core segments such as cultivating, cementing, and well testing. In Iraq and Algeria, we've achieved strong segment pull-through, capitalizing on working relationships, with both national and multinational IOC in both countries. In Egypt, we've established ourselves as leader in several segments and entered the production chemical industry along with our leadership in cold tubing, case hole logging, testing, slick line, and recent fracturing activity, especially with the success of the first pure play unconventional resource in the country. Our growth strategy begins with our anchor countries and core service lines. And we are all pleased with the progress made on this front and the opportunity to continue with these gains into the future. Speaking of technology and the future, we've also made progress on the second pillar of our growth strategy. In the frontier area of new innovation. In this domain, we've both invested in long-term research and development, and collaborative technology partnership. Since the founding of the company, we've identified the need to invest in the next generation of downhole technologies to compete in the sophisticated, high-end, high-return direction drilling services. We've committed to the investment thesis in the pursuit of a rotary steerable tool and accompanying measurement while drilling and logging while drilling technology. While development of these tools has historically in our sector been a long and painful journey of repeated field testing and reliability improvement, we remain steadfast in our development program and are pleased with the progress that we have achieved thus far. Over the past couple of years, a combination of collaborative engineering, meticulous planning, and continuous improvement have yielded to a total of more than 70,000 feeds. of field testing experience across multiple countries globally. This progress culminated in the official commercial launch of our Roia downhole drilling platform this year in February, and we were thrilled to announce and feature our Roia family of tools at the leading IPTC industry event in Saudi Arabia, followed by the recent Opus in Oman. With the recent award of multiple contracts in the region, we have secured a long-term platform to execute our strategy and commercialization plans. Now let me shift to another key area of new technology development, our recently announced NEDA segment, which encompasses a portfolio of solutions in the area of water, methane, heat, and new energies. NEDA stands for Nesr Environmental and Decarbonization Applications. and translate to Arabic as call to action, reflecting the imperative of the upstream sector to lead in creating more sustainable oil and gas supply with minimal emission and carbon footprint. We originally launched the segment as ESG Impact back in 2021, centered around several early stage investment and partnership in areas such as flare gas, produce water, and heat. Produced water treatment technology and the broader circular water concept are a key focus within NIDA. Given the dual challenge and mean of rising produced wastewater volumes and lack of renewable freshwater resources. In the last 18 months, we successfully completed the second pilot of our zero liquid discharge technology with Aramco. In this application, we can essentially treat high-salinity produced reservoir water for reuse in subsequent stimulation operation, thereby eliminating the consumption of precious fresh water from the aquifer. Our goal is to now scale up this ZLD technology, potentially in combination with other applications for carbon circular economy, ensuring we can deliver with our customers a unique solution to the world. Also in recent quarters, we completed a continuous methane monitor project with a multinational oil and gas provider in the GCC, and we continue to evaluate a full implementation within this customer field and demonstrate those results to other clients in the region. Using CUBE technology's latest monitoring and cloud-based modeling, we know we can detect from 0 to 100 kg per hour greenhouse gases, which is essential to provide the baseline for the COP28 pledge of the top E&P companies of totally eliminating methane by 2030. In order to do that and provide assurance to the world that reported emissions are based on science and re-measurement and not just modeling. As the industry in North America has, by deploying thousands of continuous monitoring sensors, the same approach is applicable to MENA. In Asia, we expanded our CCUS offering with a successful second-phase pilot injection and monitoring project. This is a great example of how NEDA can also adapt existing service capability to new energy opportunities. Overall, our strategy in NEDA is to leverage core competencies and cutting-edge technologies, sometimes outside technology native to non-oil and gas sector, to attack completely new market opportunities. It is worth noting that like with any new solution introduction in our sector, the technology development and sales become very considerable. And we therefore take a long-term view of the growth potential for NEDA. To capitalize on all our technology rollouts, we continue to expand on the high-power understanding of the subsurface. in which we made a substantial investment in our research facility, Nouri. And we continue to invest and bring new partners to the region, similar to our investment approach in Bill Van Gaten, when we brought his unique lab from Houston to Tehran, the heart of Saudi Arabia. This enables full-cycle understanding from subsurface to pipeline, including the decarbonization aspect of every piece of the puzzle. With that, I pass it over to Stefan to discuss the financials in detail.