Oil States International, Inc.

During this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. Thank you. I'd now like to turn the call over to Ellen Pennington, Vice President of Human Resources and Senior Counsel. Please go ahead.

Thank you, Jordan. Good morning and welcome to Oil State's third quarter 2025 earnings conference call. Our call today will be led by our President and CEO, Cindy Taylor, and Lloyd Hodgic, Oil State's Executive Vice President and Chief Financial Officer. Before we begin, we would like to caution listeners regarding forward-looking statements. To the extent that our remarks today contain information other than historical information, please note that we are relying on the safe harbor protections afforded by federal law. No one should assume that these forward-looking statements remain valid later in the quarter or beyond. Any such remarks should be weighed in the context of the many factors that affect our business, including those risks disclosed in our 2024 Form 10-K, along with other recent SEC filings. This call is being webcast and can be accessed at Oil State's website. A replay of the conference call will be available two hours after the completion of this call and will continue to be available for 12 months. I'll now turn the call over to Cynthia.

Thank you, Ellen. Good morning and thank you for joining our conference call today where we will discuss our third quarter 2025 results and provide our thoughts on market trends in addition to discussing our company-specific strategy and outlook. In a quarter marked by lower crude oil prices, uncertainty about the oil macro and fluctuating U.S. trade policies, U.S. shale-driven activity slowed further, while offshore and international markets demonstrated resilience, benefiting from long-cycle project investments. With this backdrop, the company performed well, finishing the quarter within our guided EBITDA range, but with weaker contributions from our U.S. operations due to completion activity declines experienced during the quarter. Our consolidated results in the third quarter were driven by backlog growth achieved over recent quarters, along with solid execution of existing projects. WellStakes remains well positioned to benefit going forward as oil and gas operators favor capital allocation to offshore projects with higher production, slower decline curves, and lower break-even commodity prices. During the third quarter, 75% of our consolidated revenues were generated from offshore and international projects, a percentage that is up both sequentially and year-over-year. This continued shift in revenue mix reflects our multi-year strategy to grow our offshore and international project-driven content which generally comprises longer cycle, higher margin work. Our offshore manufactured product segment continued to deliver strong performance. Revenues increased 2% sequentially, while adjusted segment EBITDA rose 6% due to product and service mix. Backlog increased to $399 million, again allowing us to achieve our highest level since June 2015. Robust bookings of 145 million, which represents a 29% quarter-over-quarter increase, was boosted by strong military orders yielding a quarterly book-to-bill ratio of 1.3 times. The strength and diversity of our backlog supports our outlook for total company incremental revenue and earnings growth as we move into 2026. U.S. land completion activity declined significantly during the period, with the average U.S. frack spread count down 11% sequentially. These U.S. activity reductions stem from weaker crude oil prices and OPEC Plus's decision to rapidly unwind over 2 million barrels per day of previous production cuts. Our completion and production services and downhole technology segments which represent a smaller portion of our business mix, experienced sequential quarter revenue declines of 6% and 1% respectively, primarily due to the significant industry-wide reduction in U.S. land-based activity. Sustained margin benefits stemming from our U.S. land-based optimization efforts, which were initiated in 2024, and have continued in 2025 have led to year-over-year EBITDA growth in our completion and production services segment despite weaker industry activity levels. During the third quarter, we grew our cash flow from operations to $31 million, an increase of 105% sequentially, and we generated $23 million of free cash flow. Our ongoing deleveraging efforts should unlock additional equity value for our stockholders as we pay off our convertible senior notes after maturity in April of 2026. We are committed to optimizing our operations and making targeted investments in our highest performing businesses while leveraging cutting-edge technologies to drive growth. Our industry-leading managed pressure drilling, or MPD, system exemplifies this commitment to improve operational safety and performance levels. During the quarter, Oil States was honored with two Energy Workforce and Technology Council Safety Awards, including the President's Gold Award for Health, Safety, and Environment Incident Rate Improvement during the 2023 to 2024 period, and the Fail Safe Technology Award for advancing safer MPD operations in collaboration with Seadrill, a global leader in high spec offshore drilling rigs. Along with our safety culture, we remain focused on three core priorities, growing our offshore and international presence, managing volatility inherent in U.S. land activity, and driving meaningful cash flow generation. Lloyd will now review our operating results along with our financial position in more detail.