Oil States International, Inc.

Ladies and gentlemen, thank you for standing by. My name is Colby and I'll be your conference operator today. At this time, I would like to welcome you to the Oil Estates International fourth quarter 2025 earnings call. All lines have been placed on mute to prevent any background noise. And after the speakers remarks, there will be a question and answer session. If you'd like to ask a question at that time, please press star then the number one on your telephone keypad to raise your hand and enter the queue. If you'd like to withdraw your question at any time, Simply press star 1 again. Thank you. I'll now turn the call over to Eileen Pennington, Vice President of Human Resources and Senior Counsel. You may begin.

Thank you, Colby. Good morning and welcome to Oil State's fourth quarter 2025 earnings conference call. Our call today will be led by our President and CEO, Cindy Taylor, and Lloyd Hodrick, 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 the 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 will now turn the call over to Cindy.

Thank you, Ellen. Good morning, and thank you for joining our conference call today where we will discuss our fourth quarter 2025 results, and provide our thoughts on market trends in addition to discussing our company-specific strategy and outlook for 2026. We are pleased to report strong fourth quarter results with adjusted EBITDA exceeding our guidance and quarterly cash flows from operations at historically high levels. We generated $50 million of cash flows from operations which was used to retire an equivalent amount of our outstanding convertible senior notes. Following the repayment, our cash on hand exceeded outstanding debt by $15 million at year end. We continued to progress our multi-year strategy to optimize Oil State's business mix in favor of operations focused in the offshore and international markets. Our consolidated fourth quarter results were driven by backlog conversion, disciplined execution, and improved margins in our completion and production services and downhole technology segments, as both segments are showing positive trends following restructuring. Fourth quarter consolidated revenues increased 8% both sequentially and year over year, with revenue growth tempered by our strategic decisions to exit certain underperforming U.S. land-based operations. These actions have resulted in a shift in our business mix with 77% of our revenues generated from offshore and international markets in the current quarter compared to 72% in the prior year period. Going forward, our sharpened focus on more differentiated product and service lines should provide sustained incremental margins and cash flows to support returns to our stockholders. Our offshore manufactured product segment delivered another standout quarter, with revenues and adjusted segment EBITDA increasing 13% and 12% sequentially. Backlog continued to increase, totaling $435 million, a price level since March 2015, supported by bookings of 160 million yielding a quarterly book-to-bill ratio of 1.3 times. Importantly, backlog growth included a diversified mix of offshore energy, international projects, and military product awards. In contrast, U.S. land activity remained at subdued levels during the fourth quarter. In our completion and production services segment, our recent focus on high-grading technologies and service lines has translated into improved adjusted EBITDA margins and cash flow. In our down-haul technology segment, we are focused on market introductions of our revamped technology domestically, along with international expansion of our full product suite. Despite it being early days into these strategies, we realized improved contributions from our perforating and completion products during the quarter. During 2025, oil states secured multiple new contracts and successfully deployed advanced offshore technologies that reinforce our leadership in high specification offshore and international markets. continued adoption of our managed pressure drilling systems, and the first successful deployment of our low-impact workover package demonstrated meaningful operational improvements for our customers, including reduced non-productive time, enhanced safety, and improved project efficiency. In addition, following quarter end, Oil State's Merlin deep-sea mineral riser system achieved a record deployment in water depth of over 18,000 feet, or three and a half miles below the surface of the water, underscoring our differentiated engineering capabilities and strong positioning in emerging ultra deep water and offshore resource applications. With our extensive portfolio of differentiated technologies, expanding margins, and strong cash generation, we believe we are well positioned to support disciplined capital allocation and to continue returning capital to stockholders. These attributes taken together reflect a company that is more focused, more resilient, and better positioned to generate sustainable returns across industry cycles. Lloyd will now review our operating results along with our financial position in more detail.