Nine Energy Service, Inc.

And welcome to the 9 Energy Service Second Quarter 2025 earnings conference call. At this time, all participants are on a listen-only mode. A brief questionnaire for session will follow the formal presentation. If anyone should require operating assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Heather Schmidt, Senior Vice President of Strategic Development and Investment Relations. Thank you. You may begin.

Thank you. Good morning, everyone. And welcome to the 9 Energy Service earnings conference call to discuss our results for the second quarter of 2025. With me today are Anne Foss, President and Chief Executive Officer and Vice President and Chief Financial Officer. We appreciate your participation. Some of our comments today may include forward-looking statements reflecting 9 views about future events. Forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond our control. These risks and uncertainties can cause factual results to differ materially from our current expectations. We advise listeners to review our earnings release and the risk factors discussed in our filing for the SEC. We undertake no obligation to revise or update publicly any forward-looking statements for any reason. Our comments today also include non-GAAP financial measures. Additional details and a reconciliation to the most directly comparable GAAP financial measures are also included in our second quarter press release and can be found in the investor release and section of our website. I will now turn the call over to Anne. Thank you, Heather. Good morning, everyone. Thank you for joining us today to discuss our second quarter results for 2025. Revenue for the quarter was $147.3 million, which was in the upper range of our original guidance of $138 to $148 million, despite significant rig declines throughout the quarter. We generated a drastic EBITDA of $14.1 million. In April, following the announcement of new tariffs, oil prices declined from an average of approximately $72.81 to an average of approximately $65.62, while also dropping below $60 for the first time in four years. With the decline in commodity prices, increased cost due to tariffs, and uncertainty around the global timing, US activity and capex plans were reduced, resulting in significant rig declines throughout the second quarter. Between March 28 and July 3, 53 rigs came out of the US market, a decline of almost 10% in only three months. The majority of these rigs came out of oil lever basins like the Permian, where nine has historically generated approximately 40% of our total revenue. With these activity declines, we also began to receive pricing pressure across all of our service lines, most notably in the Permian, which negatively impacted revenue and earnings during the second quarter. Natural gas prices remained mostly supportive during the quarter, but declined from a Q1 average of approximately $4.14 to approximately $3.19 in Q2. We have begun to see a more positive sentiment around natural gas lever basins, as well as more consistent, efficient operations, which benefited nine, most specifically in the Northeast. However, overall rig counts in both the Northeast and Hanesville, once again, remained relatively flat in Q2 versus Q1. Natural gas continues to be a potential catalyst for nine, and we remain positive on the medium and long-term outlook for the commodity and natural gas lever region. Although activity declined throughout the quarter, our operational team performed well, and we were able to capitalize on an improving natural gas environment, as well as continuing to grow the international tool business. Despite a very challenging macro backdrop, both our completion tool and modeling business grew revenue this quarter. Completion tool revenue grew by approximately 9%, driven in large part by increased sales in the Northeast and Hanesville, as well as an increase in international tool sales. We have talked about our strategy for growing our international tools market share, and the team has been executing. Our total first-off international tools revenue has increased by approximately 20% when compared to the first half of 2024. This was driven by both increased sales of our multi-cycle barrier valve into the Middle East, as well as an overall increase in our blood sales. This will continue to be a focus for the team, and I am optimistic about the potential opportunities for nine in the international market. Our wireline team increased revenue by approximately 11% in Q2. We have strong market share in the Northeast, and the team has capitalized on an improving market with both traditional pump-down work, as well as increasing our market share on the remedial side. During Q2, we saw revenue declines in both C19 and Coil, driven by activity and pricing declines in the Fernand Basin, where both operations hold meaningful market share. As a reminder, neither of these service lines operate in the Northeast, and therefore did not benefit from any uplift in earnings from the improvement in those basins. I would now like to turn the call over to Guy, who will offer you detailed financial information.

Thank you, Anne. As of June 30, 2025, NINE's cash and cash equivalents were $14.2 million, with $51.3 million of availability under the revolving credit facility, resulting in a total liquidity position of $65.5 million as of June 30, 2025. On June 30, 2025, the company had $49.4 million of borrowings under the revolving credit facility. In July 2025, the company borrowed an additional $13.4 million under its revolving credit facility, part of which was used for funding of fees related to the closing of our new ADL. During Q2, we did not sell any shares under the ATM program. During Q2, revenue totaled $147.3 million, with an adjusted gross profit of $25.8 million. During Q2, we completed 1,061 cementing jobs, a decrease of approximately 15%. The average blended revenue for jobs increased by approximately 7%. Cementing revenue for the quarter was $52.2 million, a decrease of approximately 9%. During Q2, we completed 8,585 wireline stages, an increase of approximately 11%. The average blended revenue for stages was flat. Wireline revenue for the quarter was $33.0 million, an increase of approximately 11%. For completion tools, we completed 30,331 stages, an increase of approximately 4%. Completion tool revenue was $37 million, an increase of approximately 9%. During Q2, our coil tubing days worked, decreased by approximately 23%, with the average blended day rate increasing by approximately 9%. Coil tubing revenue was $25.1 million, a decrease of approximately 16%. During Q2, the company reported general and administrative expense of $13.9 million, depreciation and memorization expense was $8.6 million. The company's tax benefit was approximately $0.3 million year to date. The benefit for 2025 is a result of a $0.5 million discrete tax benefit, recorded during the second quarter of 2025, offset by tax provisions in state and -U.S. jurisdictions. For the second quarter, the company reported net cash provided by operating activities of $10.1 million. The average DSO for Q3 was 55.9 days. CapEx spend during Q2 was $6.1 million, and total CapEx for the first half of 2025 is $10.4 million. Our full year CapEx budget remains unchanged at $15-25 million. I will now turn it back to Anne.