National Energy Services Reunited Corp

Greetings. Welcome to Nestor Reports, your first quarter of 2026 financial results conference call. At this time, all participants will be in listen-only mode. The question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero from your telephone keypad. Please note that this conference is being recorded. At this time, I'd like to turn the conference over to Blake Gendron, Vice President of Investor Relations. Thank you. You may now begin.

Thanks, Rob. Hello and welcome to NESR's first quarter 2026 earnings call. With me today are Sharice Bota, Chairman and Chief Executive Officer of NESR, and Stephan Angeli, Chief Financial Officer. On today's call, we will comment on our first 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 reconciliations 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. The world, and particularly the Middle East, has experienced a seismic geopolitical shift over the past several months. I want to start the call by sincerely thanking all our employees and their families not only for delivering fantastic results in the face of unprecedented challenges, but also for their focus on safety, supporting our customers, and outstanding operational readiness. Beyond the strong results, I'm most proud to report that all our team members and their families remain safe, our operations remain unimpacted, and our commitment to our customer remains undeterred during these tough times. We see this as our obligation to stand alongside our customers, ensure their operations are not impacted, delayed, or interrupted. I have two key messages for today's call. First, I want to report on what I personally saw on the ground in the Middle East from the very outset of the conflict to today. While some of the global media is reporting a Middle East paralyzed by conflict and constraint, what I have seen myself is a region that has rallied around a singular focus of resilience and unstoppable operation. Second, I want to zoom out to discuss the differentiated positioning of NEST and the substantial post-conflict opportunity set that I see on the horizon. Energy security, localized capacity, and infrastructure diversity are now resounding themes in the energy sector. To reiterate the key message, we remain uniquely aligned and stand shoulder to shoulder with our customers. We've had zero evacuations. our local workforce has committed to safely ensuring no turndown of any jobs and 100% reliability. We've implemented a 30-60-90 supply chain program to maintain uninterrupted flow of materials and spares. Our crisis management team ramped up its oversight seamlessly and we stand ready with extra capacity to effectively meet the evolving needs across the region. Just as in the COVID pandemic, our counter-cyclical investment strategy is not just a slogan, but it's a commitment to step up in times of crisis. In that spirit, let me relay some key observations from the region since landing in Saudi on March 1st. My goal was to ensure close contact with our customers and employees. And what I came away with was a deeper admiration for the resilience of regional leadership and fleet crews throughout the value chain. From our largest customer in the Gulf, the message was clear. Safety, contingency planning, and operational flexibility. This is not the first time the region has grappled with security and shipping challenges. And that fact was on display in the way our biggest clients have courageously maintained cooperation and adapted supply routes and storage. As can be expected, Saudi Arabia is leading this effort extremely professionally and pragmatically, with an unwavering eye on the future. As stated publicly, they are bringing on three of the largest and lowest cost upstream projects globally, and are pushing ahead with two more megaprojects over the next several years to enhance a diversified crude mix. Exploration continues apace with six new fields and two new Arabian oil reservoirs that add multi-decade visibility to upstream development. The same goes for the natural gas program in the kingdom. If anything, the recent impact on global energy markets has only emboldened Saudi gas development. Likewise, Kuwait has exhibited an exceptional level of resilience, which clearly shows that the growth plan's message in February conference cards are among the most durable in the region. Our recent contract announcement and my discussion over the past several weeks undersow that the tender pipeline remains robust, and that activity today remains closely aligned with capacity expansion decoupled from near-term oil flows. My visit to UAE and Oman were similarly constructive, as land-based activity has been essentially unimpacted, and expansion continues across both oil and gas. This discussion truly punctuated the view that massive infrastructure investment will be needed, and that more local service capacity with proven track record of quality and robust supply chain, will be needed to support this investment program. I just announced Admiral pledged to spend $55 billion on new project over the next two years, again confirming the commitment to massive investment. I had a couple of stops in North Africa, starting with Egypt and Libya and ending with Algeria. The takeaway was unambiguous. North Africa has untapped existing capacity for undisrupted export to Europe. The authorities and the clients recognize that now is the time to enhance their resources and increase the spending to substantially increase the production and use the untapped excess pipeline capacity that already exists to meet urgent global demand. Algeria and Libya are at the forefront of this, and both countries represent colossal frontier for both conventional and unconventional resources. This is why NESS has invested in and deepened our footprint across North Africa. The reshuffling of global supply chain plus the entry of key IOCs has the potential to supercharge the growth outlook in this part of the world. Energy security localized capacity, infrastructure diversity. All three dominated my discussion with customer industry leader since the outbreak of the conflict. Let me sum up in brief why each will contribute to an even stronger multi-year NENA upcycle than previously conceived. Number one, energy security will only accelerate oil capacity expansion with enhanced flexibility across areas of production. Domestic gas is more crucial than ever for growing power needs. Number two, localized capacity. NESRA already plays a central role and we will surely be called upon to expand further leveraging our fully localized workforce, equipment, and resilient supply chain. Number three, infrastructure diversification will ultimately drive and orient the upstream capacity buildup. particularly in the Gulf countries. Now let me turn to net re-differentiated positioning in this macro landscape. Let's describe as the saying, it is better to be lucky than smart. Honestly, our project exposure and activity mix are uniquely favorable given the impact of the conflict in the region. As an example, we have limited exposure to places that have experienced the greatest disruption and force majeure as in the key LNG export hubs in Qatar. Additionally, our offshore exposure to exploration or to some of the suspended rigs are much less than others, and it's not significant in comparison to our entire operation. The bulk of our business is land-based and concentrated in the solid GCC countries that have shown remarkable resilience in keeping the upstream sector active. Jafura is also particularly and uniquely positive for Nest, and I am pleased to report both an acceleration in the overall project and also flawless execution with many more to come in the future. We are extremely proud and honored to be really the trusted partner of our beloved customer. On the supply chain front, we quickly established and executed the 30, 60, 90 days blueprint strategy, which essentially buckets inventory level across all our projects to ensure that we are diversifying supply routes monthly and with an overall eye on operational continuity. This worked for NETS during the COVID pandemic, and this proactive approach is giving our customer confidence in NETS readiness. As I always tell our team, never miss an opportunity to convert crisis into continuous improvement for the future. Like we have on supply chain, secure inventory, step into the void, safely and flawlessly deliver when our clients need us most. Predictably, we've had to absorb extra freight and logistics to ensure our readiness at all times. However, it pays off. The trust we continue to build with our customer is an invaluable asset that will endure well past the current conflict and short-term expenses. With that, let me pass on to Stephan to discuss our solid results and update on our capital allocation plan. Stephan.