Oil States International, Inc.

Hello, everyone. Thank you for joining us and welcome to Oil State's first quarter 2026 earnings call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. I will now hand the conference over to Ellen Pennington, VP of HR. Ellen, please go ahead.

Thank you, Melissa. Good morning and welcome to Oil State's first quarter 2026 earnings conference call. Our call today will be led by our President and CEO, Lloyd Hodgick, and Matt Ottenreth, 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 2025 Form 10-K and Form 10-KA, 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 will now turn the call over to Lloyd.

Thanks, Ellen. Good morning, and thank you for joining our conference call today, where we'll discuss our first quarter 2026 results and provide our thoughts on market trends in addition to discussing our company-specific strategy and outlook for 2026. During the first quarter, the global energy backdrop shift meaningfully due to escalating geopolitical tensions in the Middle East, leading to severe restrictions imposed on maritime vessels transiting through the Strait of Hormuz. These events introduced near-term volatility in commodity markets, leading to elevated supply and logistics challenges and increased costs overall. Longer term, These geopolitical events reinforce the strategic importance of energy security, supply diversification, and long-term offshore and international development. We saw commodity prices strengthen throughout the quarter, with crude oil prices increasing significantly late in the period, reflecting diminishing inventories and a growing supply risk premium. Our global customer base facing market uncertainty delayed existing projects, and awards of new projects. During this volatile period, operators maintained capital discipline, prioritizing free cash flow generation and returns to shareholders over incremental activity. Given the recent drawdown in global inventories, the global oil and gas sector is poised for growth. During the quarter, we generated revenues of $145 million and adjusted EBITDA of $17 million. Sequential decline was attributable to seasonal factors, timing of revenue recognition for our percentage of completion projects, certain Middle East-related delays, and continued softness in U.S. land markets. The current conflict in the Middle East, along with ongoing market uncertainty, contributed to contract award delays, reduced revenues, and increased costs. These disruptions have not changed our strategy or offshore and international growth thesis. The macro drivers actually serve to further strengthen our primary markets as the need increases for energy security, demand for offshore and deepwater developments, LNG, military, and highly engineered technologies. We believe operators stand poised to increase production in other lower-risk global offshore basins. We strive to implement a consistent strategy. Approximately 72% of our first quarter revenues and 74% of our revenues generated over the last 12 months were derived from offshore and international projects. This is an increase from 66% in the first quarter of 2025 and up substantially from a few years ago. This strategic shift in business mix positions the company for sustained and durable higher margin work. We remain focused on cost control, monetization of exited facilities and equipment, and supporting our customers' critical energy infrastructure programs, which play an increasingly important role in creating a more stable and affordable future energy supply. Our offshore manufactured product segment continued to lead the performance of our company, with revenues of $91 million and adjusted segment EBITDA of $19 million, with adjusted segment EBITDA margins of approximately 20%. Backlog remains near a decade-high level, $430 million, supported by bookings of $84 million, yielding a quarterly book-to-bill ratio of 0.9 times. Based on our order visibility, we reiterate our view that our full-year book-to-bill ratio should be one time or greater. In our completion and production services segment, Our continued focus on high-grading technologies and service lines has again resulted in improved adjusted segment EBITDA margins year-over-year. In our downhill technologies segment, we remain focused on market introductions of our upgraded technology domestically, along with international expansion of our full product suite. We are also focused on improving profitability given impacts of higher raw materials and shipping costs. Despite the geopolitical headwinds encountered in certain international markets, revenues remain relatively flat sequentially. The duration of the Middle East conflict may influence the timing of future international expansion for the segment's products. Reinforcing our technology leadership position, we are pleased to receive two 2026 Spotlight on New Technology awards from the SBE Offshore Technology Conference for our geolock geothermal wellhead and our managed pressure drilling, or MPD, drill ahead tool. The geolock geothermal wellhead leverages field proven oil and gas technology to solve the inherent challenges encountered in conventional high temperature geothermal applications. The MPD drill ahead tool complements the operational efficiency of our existing MPD system, saving drilling contractors additional time and money. Both technologies reinforce the strength of our engineering capabilities for developing critical applications to enable our customers to solve complex challenges. With our extensive portfolio of differentiated technologies and a globally diversified footprint across major offshore and international basins, we believe we are well positioned to support our customers' evolving needs. Matt will now review our operating results along with our financial position in more detail.