National Energy Services Reunited Corp

Welcome to NESA reports fourth quarter 2025 financial results conference call. 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 Gendron, Vice President of Vest Relations. Thank you. You may begin.

Thank you, Sherry. Hello and welcome to NSER's fourth quarter 2025 earnings call. With me today are Sharif Foda, Chairman and Chief Executive Officer of NSER, and Stephan Angeli, Chief Financial Officer. On today's call, we will comment on our fourth quarter results and overall performance. After our prepared remarks, we will open up 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 our 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. I'm pleased to report that we ended a tremendous 25 with even stronger than expected results in the fourth quarter. Most importantly, we safely and efficiently kicked off the largest unconventional FRAC program in sector history. effectively managed our costs, and achieved yet another record high for revenue and free cash flow. These results are a testament to our hardworking teams in the field, their dedication and commitment, thanks to our customers for their trust and unwavering support in the entire region. Reaching this stage of company growth was NET's original national champion vision, and we now have our sights set on even much greater heights. On today's call, I'll start with an update on the Middle East macro and activity ties to key megatrends related to global energy, technology, and geopolitics. Alongside the macro, I'll go into necessary specific drivers by country to outline key takeaways from an extremely busy industry conference season to start the year. This will hopefully clarify the ample growth runway that we have beyond our original $2 billion target. First, the macro. As previously discussed, overall we see a baseline of steady activity growth across the MENA region, driven by oil capacity expansion and strategic domestic gas development. Additionally, what changed is the increased appetite of the IOC to enter into various MOU and exploration awards that are unprecedented in some countries like Iraq, Algeria, Libya, Kuwait, and even Syria. Countries like Kuwait continue to lead with robust investment programs, but perhaps the most notable aspect of the current cycle is that every single one of our anchor countries is either growing steadily or is stable at all-time high. Considering the negative consensus view around global growth and commodity prices, these trends are a stark reminder that there is truly a solid floor of activity on which the MENA service sector can continue to build with any upside to the macro or commodity outlook. There is no other region in the world like this one for persistent upstream growth capacity expansion, and strategic gas development. MENA trends are largely decoupled from oil and gas prices, and NESS is taking full advantage of it. Talking about Kuwait in more details, we recently conducted our board meeting following the impressive, successful COGS oil and gas show in Kuwait City. Our goal was to demonstrate our commitment to the highest level in the country show our board firsthand the super cycle that is now entering its second year, in addition to the unique opportunities for Nasser. As you recall, we started in Kuwait from nothing just a few years ago, and it will soon become our second largest country behind Saudi. During COGS, country leadership reiterated their commitment of $8 to $10 billion per year in upstream spending through 2030. to expand oil capacity by an additional 1 million barrels to a total of 4 million barrels per day by 2035. Not only does this lock in continued growth for years to come, but also implies an even higher activity trajectory than previously anticipated. Additionally, for the first time, as publicly announced, His Highness the Prime Minister presided over several agreements and MOUs signing during COGS with IOC, the likes of Total, BP, Shell, and several other international companies. The program encompassed both oil and gas, span land and offshore, and will truly launch an activity renaissance in a country that has already achieved impressive levels of growth over the past year. For NESS, there is a huge upside in Kuwait, with all of our recent in-country investment, high-level engagement with customer leadership, and with a proven track record of operational scale and open technology development. The evolution in natural Kuwait over the coming years will dovetail perfectly with the transformation of the Kuwait energy sector. We previously announced our Ahmadi Innovation Valley, or AIV, initiative, which will give NEST first-ever access to technology development in Kuwait. These projects will supplement and enhance our core services, which are growing on the back of recent contract wins and upcoming tenders, and will also drive new frontier in the areas of decarbonization, water, and critical minerals. Considering all of the plans and partnerships and ambitions announced at COGS, our leadership in AIV could not be more perfectly timed. In Abu Dhabi, activity continues to march above all-time high. As publicly announced in late 2025, ADNOC approved a sweeping $150 billion oil and gas investment plan for the 26-2030 timeframe, which should keep the growth trajectory intact for years to come. North Africa remains a key growth pillar led by a surge of activity in Libya, which headlined its recent summit in Tripoli with dual announcement with ConocoPhillips and Total. This collaboration captured $20 billion in investment over 25 years, an unprecedented commitment not just in terms of magnitude, but also longevity, as country leadership has truly embraced foreign investment into its world-renowned resource base. Additional blockbuster bids from Libya last week are the new exploration block awards to Chevron, Rapsol, Moll, among others. While activity over the past year has already increased political cohesion in Libya and its highly successful bid round provide a roadmap to increase oil capacity from 1.4 million by day-to-day to 1.6 million by year-end and 2 million by 2030. Libya is yet another core Nasser country that is planning over the multi-year horizon. Based on our recent meeting with Libya NOC and country leadership, Nasser will play a key role in this visionary capacity expansion. Elsewhere in the region, we see stable, good activity levels in Algeria, Oman, Iraq, and Egypt. We see some strategic discussion that could supercharge the next story primarily through new contract wins and an improving oil outlook over the medium term. Unsurprisingly, we've been as busy with recent tendering as we've been on the industry conference circuit. And no doubt there is connection between the two. Adding up the budgetary commitment from our four largest GCC countries implies nearly $300 billion in general upstream spending through 2030. While not all of that budget is pure services, it's worth noting that the budget only captured a portion of our anchor countries and does not include the wave of IOC spending that is coming with the shifting geopolitical landscape. Beyond Jafura, there is still a multi-billion denture opportunity for Ness, a result from which could be announced soon. We are very excited and optimistic about Ness' position in these tenders, and our nimble operating model has proven effective in the face of fierce tender competition. This potential award will keep Ness' growth engine running far beyond the timeframe that most investors view our stock or sector. To conclude, and before passing on to Stefan, I'd like to discuss what is the most anticipated topic of this call, which of course is the startup of Jafura FRAC project. As previously discussed, we initiated operation on time in early November and have worked seamlessly with our highly supportive Aramco partners to ramp operation safely and effectively. HSE and service quality remain our top priority in everything we do, and especially in ramping a project with such a massive scale as Jafura. All of our careful organization and planning of supply chain, logistic effort, which go all the way back to our initial frack in 2019, are paying off, and we are delivering stages as planned. Cost control across both recruitment and operation is evident in the fourth quarter results. and there is much more optimization to achieve. Our entire process from securing suppliers, hiring crews, moving material, implementing the best technology from the U.S. shale, maintaining best-in-class uptime, and pumping hours is on plan, even as we triple and aim to quadruple the footprint. Aramco is truly on another leadership level for world-class unconventional development, and we look forward to updating the market on future achievement in the quarters to come. With that, let me pass the call to Stefan to discuss our equally exciting result on the finance front.