ProPetro Holding Corp.

Hello everyone, thank you for joining us and welcome to the pro petro holding first quarter 2026 conference call. After today's prepared remarks, we will host the 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 Matt Augustine, ProPetro's Vice President of Finance and Investor Relations. Please go ahead.

Thank you, and good morning. We appreciate your participation in today's call. With me are Chief Executive Officer Stan Sledge, Chief Financial Officer Caleb Weatherall, President and Chief Operating Officer Adam Munoz, President of ProPower, Travis Vimmering. This morning, we released our earnings results for the first quarter of 2026. Please note that any comments we make on today's call regarding projections or our expectations for future events are forward-looking statements covered by the Private Securities Litigation Reform Act. Forward-looking statements are subject to several risks and uncertainties, many of which are beyond our control. These risks and uncertainties can cause actual results that differ materially from our current expectations. We advise listeners to review our earnings release and risk factors discussed in our filings with the SEC. Also during today's call, we will reference certain non-GAAP financial measures. Reconciliations of these non-GAAP measures to the most directly comparable GAAP measures are included in our earnings release. Finally, after our prepared remarks, we will hold a question and answer session. With that, I would like to turn the call over to Sam.

Thanks, Matt, and good morning, everyone. The results we generated in the first quarter of 2026 demonstrate the resilience of our business model. Despite weather-related disruptions that significantly impacted revenue and profitability during the quarter, we delivered positive financial results in our completions business, particularly when measured by adjusted EBITDA less incurred capital expenditures. These results highlight the strength of our industrialized model, which is the result of strategic investments, disciplined asset deployment, and rigorous cost management. The strategic actions we implemented throughout 2025 to protect our assets and right-size our cost structure are now delivering measurable benefits. positioning us for success in the current market environment. We'll continue to leverage the industrialized nature of our completions business to drive expansion of ProPower, which we expect to fuel future earnings growth and further strengthen our value proposition. With respect to the broader environment, we're still in the early stages of assessing the global and domestic implications of the Iran war. While uncertainty remains, we're starting to see signs of recovery across the broader North American oilfield services sector, given a strengthening commodity backdrop that is driving early pricing and activity tailwinds across our completions business. Importantly, structural tightening in the completions market continues to intensify, driven by ongoing attrition, particularly among smaller and less disciplined competitors. This trend was already emerging prior to the onset of the Iran War. and has since accelerated with the recent increase in demand for U.S. frac activity. Notably, there was already very little spare frac equipment capacity even before the conflict began, further amplifying current market constraints. These dynamics, combined with ongoing capital investment discipline and pricing discipline, have tempered any plans to expand capacity both within ProPetro and among our close peers in the completion space. Collectively, these factors have created a more constructive supply and demand environment for our business over time.