Oil States International, Inc.

Hello everyone. Thank you for joining us and welcome to the Oil State's 2Q26 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 1 to raise your hand. To withdraw your question, press star 1 again. I will now hand the conference over to Ellen Pennington, Senior Counsel and Vice President of HR. Ellen, please go ahead.

Thank you, Trevor. Good morning and welcome to Oil State's second quarter 2026 earnings conference call. Our call today will be led by our President and CEO, Lloyd Hajdik, and Matt Autenrieth, 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'll now turn the call over to Lloyd.

Lloyd Hajdik Thanks, Ellen, and good morning, everyone. Thank you for joining our conference call today where we will discuss our second quarter 2026 results and provide our thoughts on market trends in addition to discussing our company-specific strategy and outlook for the remainder of the year. As we progress through 2026, our end markets continue to be influenced by a combination of constructive long-term fundamentals and ongoing near-term uncertainty. During the second quarter, commodity prices remained volatile, driven largely by geopolitical developments, supply disruptions and moderated expectations for global economic growth. Conflict in the Middle East region continues to impact our operations and again contributed to certain contract award delays. Notwithstanding these and other award delays, we achieved a book-to-bill ratio of 1.2 times. While these dynamics have tempered near-term revenue conversion in our project-driven businesses, they do not change our long-term offshore and international opportunity set. The need for secure and diversified energy supply continues to drive longer-cycle deepwater investment as well as incremental land-based activity levels. We believe that national oil companies and major operators will refocus on increasing production capacity and making multi-year investments to meet global energy demand once the Middle East disruptions settle down. In the United States, customer activity rose modestly as operators continue to demonstrate capital discipline and prioritize operational efficiency and return of capital to stockholders. During the second quarter, we generated revenues of $157 million and adjusted EBITDA of $19 million, up 8% and 14% sequentially. These increases were driven in large part by growth within our downhole technologies and completion and production services segments, favorable mix, and discipline execution. Our strategy remains focused on higher margin, differentiated products and technologies within the markets we serve. Over 70% of our consolidated revenues generated in the first half of 2026 were driven by offshore and international activity, which is a substantial increase from around 50% in 2023. This strategic shift in business mix has positioned oil states well for sustained growth in future months and years. Our offshore manufactured product segment generated sequential revenue growth with strong segment EBITDA margins. Production Platform and Connector Products, as well as higher service activity provided positive uplift in the quarter. Backlog increased to its highest level in more than a decade, totaling $451 million, supported by bookings of $114 million, and a quarterly book-to-bill ratio of 1.2 times. Based on our bidding, quoting, and order visibility, we reiterate our view that our full-year book-to-bill ratio should be one time or greater. Our completion and production services segment reported sequential revenue and segment EBITDA growth coupled with a strong margin profile, which is the direct result of our efforts to high-grade the portfolio of technologies and service lines within this segment. In our downhole technology segment, revenue and segment EBITDA improved materially, supported by stronger perf rating and completion product sales and favorable product mix. Edwins remain elevated related to charge powder availability and raw material cost increases, which are pressuring margins. Continued pricing discipline and inventory management remain priorities. With our extensive portfolio of differentiated technologies and a diversified footprint across the major global basins, we believe we are well positioned to support our customers' evolving needs. We will continue to invest selectively in technologies that improve performance, Efficiency, and Reliability in Increasingly Complex Operating Environments. Matt now will review our operating results along with our financial position in more detail.