Nine Energy Service, Inc.

Greetings and welcome to the Q3 2025 Nine Energy Service earnings 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, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce Heather Schmidt, Senior Vice President of Strategic Development and Investor Relations. Please go ahead.

Thank you. Good morning, everyone. Welcome to the Nine Minutes Service earnings conference call to discuss our results for the third quarter of 2025. With me today are Anne Fox, President and Chief Executive Officer, and Guy Sirkus, Chief Financial Officer. We appreciate your participation. Some of our comments today may include forward-looking statements reflecting nine 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 actual results to differ materially from our current expectations. We advise listeners to review our earnings release and the risk factors discussed in our filings with 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 third quarter press release and can be found in the investor relations 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 third quarter results for 2025. Revenue for the quarter was $132 million, which was below the range of our original guidance of $135 to $145 million. We generated adjusted EBITDA of $9.6 million. Q3 was a challenging quarter for the market following significant rig declines and subsequent pricing pressure beginning in Q2 in conjunction with the announcement of tariffs and a decline in oil prices. As a reminder, at the end of Q1, the U.S. rig count was 592, and by the end of Q3 had declined to 549 rigs, a decline of 43 rigs, or approximately 7% over two quarters. With activity declines, we have also had significant pricing pressure, most evident in the Permian, where the average rig count has declined by approximately 15% from Q1 to Q3, and the competition is most saturated. Oilfield service providers are making unsolicited bids on work, and customers are also bidding out work outside of the typical bidding season to drive down price. This has led to Nine and other providers either losing market share to lower pricing and or lowering our current pricing to maintain work in conjunction with overall lower activity levels. Activity declines and pricing pressure negatively impacted revenue and earnings across all of our service lines this quarter, and revenue was down sequentially across divisions. In addition to market impacts, our completion tool division had domestic market share losses during the quarter that negatively impacted revenue and earnings. These market share losses were due mostly to customer consolidation and a change in certain of our customers' completion designs, specifically around casing sizes. Our R&D team is working real-time in the design and testing of tools that will address these casing size changes. Our international tools business continues to perform well and remains an important part of our growth strategy. For the first nine months of 2025, compared to the same period in 2024, we have grown international revenue by approximately 19%, driven mostly by increased sales in the UAE, Argentina, and Australia. We still anticipate that our international revenue will increase this year versus last year, despite a tough market backdrop. Natural gas prices remained mostly supportive during the quarter, averaging approximately $3.03 in Q3 versus $3.19 in Q2. While the natural gas outlook remains positive, we faced temporary headwinds in the Northeast starting in Q3 due to droughts in the area. A lack of water is causing completion delays and inefficiencies that are negatively impacting our wireline and completion tool operations in the Northeast region. Before handing it over to Guy, I want to highlight a significant technical and operational accomplishment in our cementing division. The team recently completed a landmark cementing job for a large operator in the Hainesville Basin. This basin is characterized as an extremely challenging operating environment with bottom hole temperatures often exceeding 400 degrees Fahrenheit and bottom hole pressures requiring elevated fluid densities. These conditions necessitate stringent design requirements and precise execution methods. Our cementing team formulated a latex-based cement slurry that maintains stability while being placed in an extremely narrow annulus and mitigated friction pressure concerns due to its reduced viscosity. The end result was an exceptionally capable slurry pumped at increased rates and reduced pumping pressures, all while maintaining full fluid returns during the process. I am extremely proud of this team and how they continue to innovate on technology and execute at the well site. I would now like to turn the call over to Guy to walk through detailed financial information.