Oil States International Inc (OIS) 2024 Q2 法說會逐字稿

Thank you for standing by. My name is Eric, and I will be your conference operator today. At this time, I would like to welcome everyone to the Oil States second-quarter 2024 earnings conference call. (Operator Instructions)

謝謝你的支持。我叫艾瑞克，今天我將擔任你們的會議操作員。此時此刻，我歡迎大家參加 Oil States 2024 年第二季財報電話會議。（操作員說明）

Thank you. I would now like to turn the call over to Ellen Pennington, Oil States' Assistant Corporate Secretary. Please go ahead.

謝謝。我現在想將電話轉給石油州助理公司秘書艾倫·彭寧頓 (Ellen Pennington)。請繼續。

Good morning, and welcome to Oil States' second-quarter 2024 Earnings Conference Call. Our call today will be led by our President and CEO, Cindy Taylor, and Lloyd Hajdik, Oil States' Executive Vice President and Chief Financial Officer.

早上好，歡迎參加石油國家 2024 年第二季財報電話會議。我們今天的電話會議將由我們的總裁兼執行長 Cindy Taylor 和 Oil States 執行副總裁兼財務長 Lloyd Hajdik 主持。

Before we begin, we would like to caution listeners regarding forward-looking statements. To the extent that our remarks today contain anything -- contain information other than historical information, please note that we are relying on the safe harbor protections afforded by federal law.

在開始之前，我們想提醒聽眾注意前瞻性陳述。如果我們今天的言論包含任何內容——包含歷史資訊以外的信息，請注意，我們依賴聯邦法律提供的安全港保護。

No one should assume 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 2023 Form 10-K, along with other recent SEC filings. This call is being webcast and can be accessed at Oil States' 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.

任何人都不應認為這些前瞻性陳述在本季稍後或以後仍然有效。任何此類言論都應在影響我們業務的許多因素的背景下進行權衡，包括我們 2023 年 10-K 表格以及最近向 SEC 提交的其他文件中披露的風險。該電話會議正在網路直播，可以在石油州的網站上觀看。電話會議的重播將在電話會議結束兩小時後提供，並將持續 12 個月。

I'll now turn the call over to Cindy.

我現在將把電話轉給辛蒂。

Thank you, Ellen. Good morning, and thank you for joining our conference call today, where we will discuss our second-quarter 2024 results and provide our thoughts on market trends in addition to discussing our company-specific outlook comments.

謝謝你，艾倫。早安，感謝您今天參加我們的電話會議，除了討論我們公司特定的前景評論之外，我們還將在會上討論 2024 年第二季度的業績，並提供我們對市場趨勢的看法。

Our second quarter consolidated revenues and adjusted EBITDA increased 11% and 38% sequentially, driven by increased drilling, subsea and production system demand in key offshore basins, along with the advancement of several significant projects in our offshore, manufactured products segment.

由於主要海上盆地的鑽井、海底和生產系統需求增加，以及我們海上製造產品領域的幾個重要項目的進展，我們第二季度的合併收入和調整後的 EBITDA 分別增長了 11% 和 38%。

On a consolidated basis, our offshore and international revenues were up 18% sequentially, while US land-driven revenues increased 1%. Our results in the current quarter also benefited from continued customer adoption of our newer technologies and strategic optimization of our well site services segment with the exit of certain underperforming US locations. Given these initiatives, our well site services adjusted segment EBITDA increased 30% sequentially in an otherwise declining US land market.

綜合來看，我們的離岸和國際收入較上季成長了 18%，而美國陸上收入成長了 1%。我們本季的業績也得益於客戶持續採用我們的新技術以及我們井場服務部門的策略優化以及退出某些表現不佳的美國地點。鑑於這些舉措，我們的井場服務調整後的部門 EBITDA 在原本下滑的美國土地市場中連續增長了 30%。

During the quarter, our offshore, manufactured products segment revenues increased 17% sequentially totaling $102 million, while adjusted segment EBITDA rose 27%. Bookings totaled $101 million compared to $66 million received in the first quarter of 2024, yielding backlog of $300 million as of June 30 and a quarterly book-to-bill ratio of 1 time.

本季度，我們的離岸製造產品部門營收季增 17%，總計 1.02 億美元，而調整後部門 EBITDA 成長 27%。預訂總額為 1.01 億美元，而 2024 年第一季收到的預訂金額為 6,600 萬美元，截至 6 月 30 日，積壓訂單為 3 億美元，季度預訂出貨比為 1 倍。

Our bookings improvement was partially driven by our newer technology offerings, including orders for our managed pressure drilling systems. Our well site services segment revenues decreased 2% on a sequential quarter basis, given the impact of lower US activity, along with the segment's consolidation and exit over the past six months of four underperforming locations.

我們的預訂量成長部分是由我們更新的技術產品推動的，包括我們的控壓鑽井系統的訂單。考慮到美國活動減少的影響，以及該部門在過去六個月中四個表現不佳的地點的整合和退出，我們的井場服務部門收入環比下降了 2%。

Adjusted segment EBITDA increased 30% from the first quarter of 2024 due to stronger offshore activity in the Gulf of Mexico, along with modest market share gains in the Permian Basin. Our cost reduction initiatives helped yield very strong incremental margins.

由於墨西哥灣離岸活動的加強以及二疊紀盆地市場份額的小幅增長，調整後的部門 EBITDA 較 2024 年第一季增長了 30%。我們的成本削減措施幫助實現了非常強勁的利潤增量。

In our downhole technologies segment, revenues and adjusted segment EBITDA increased 16% and 42%, respectively, from the first quarter of 2024, driven primarily by increased completion product and international purporting sales. We will continue to focus on improving operations and allocating capital to efficiently and safely provide our customers with advanced technologies and services, while enhancing returns, reducing debt and returning cash to our stockholders.

在我們的井下技術部門，收入和調整後部門 EBITDA 較 2024 年第一季分別成長 16% 和 42%，這主要是由於完井產品和國際銷售的增加所致。我們將繼續專注於改善營運和配置資本，以高效、安全地為客戶提供先進的技術和服務，同時提高回報、減少債務並向股東返還現金。

During the quarter, we generated cash flows from operations totaling $10 million, repurchased some of our convertible debt at a discount to par and also made share repurchases. Our gross debt to EBITDA at June 30 was 1.5 times and net was 1.2 times, giving us significant flexibility.

本季度，我們從營運中產生了總計 1000 萬美元的現金流，以低於面值的折扣回購了部分可轉換債務，並進行了股票回購。截至 6 月 30 日，我們的 EBITDA 總債務為 1.5 倍，淨債務為 1.2 倍，這給了我們很大的靈活性。

Lloyd will now review our operational results along with our financial position in more detail.

勞埃德現在將更詳細地審查我們的營運表現以及我們的財務狀況。

Thanks, Cindy. Good morning, everyone.

謝謝，辛蒂。大家早安。

During the second quarter, Oil States generated revenues of $186 million, adjusted consolidated EBITDA of $21 million and net income of $1.3 million or $0.02 per share. Our reported second quarter results included pretax facility consolidation exit charges of $3.5 million, patent defense charges of $1 million and gains of $0.5 million on debt extinguishment.Excluding these net charges and credits, our adjusted net income was $4.4 million or $0.07 per share.

第二季度，Oil States 營收 1.86 億美元，調整後綜合 EBITDA 為 2,100 萬美元，淨利潤為 130 萬美元，即每股 0.02 美元。我們報告的第二季業績包括350 萬美元的稅前融資合併退出費用、100 萬美元的專利辯護費用以及50 萬美元的債務清償收益。 440 萬美元或每股0.07 美元。

Our offshore, manufactured products segment generated revenues of $102 million and adjusted segment EBITDA of $20 million in the second quarter. During the second quarter, charges of $1.5 million were recorded at the segment due to the consolidation of Oil States' Southeast Asian operations. Excluding the facility consolidation charges, adjusted segment EBITDA margin was 20% in the second quarter compared to 18% in the first quarter.

我們的離岸製造產品部門第二季的營收為 1.02 億美元，調整後的部門 EBITDA 為 2,000 萬美元。第二季度，由於 Oil States 東南亞業務的整合，該部門的費用為 150 萬美元。不包括設施合併費用，第二季調整後的部門 EBITDA 利潤率為 20%，而第一季為 18%。

Regarding our facility planning, we have strategically relocated our Southeast Asian manufacturing and service operations from Singapore to Batam, Indonesia, which is expected to produce future manufacturing costs for a number of our global product offerings.

關於我們的設施規劃，我們已策略性地將我們的東南亞製造和服務業務從新加坡遷至印尼巴淡島，預計這將為我們的許多全球產品提供未來的製造成本。

During the second quarter, we sold our facility in Singapore and received net cash proceeds of $10 million. While construction of our long-term Batam facility continues, with completion targeted for the first half of 2025, provisional operations were established in Batam during the quarter allowing us to efficiently execute both our contracted backlog and subsequent orders during the construction phase.

第二季度，我們出售了新加坡的工廠，獲得了 1000 萬美元的淨現金收益。雖然我們的巴淡島長期工廠建設仍在繼續，預計於 2025 年上半年完工，但本季度在巴淡島建立了臨時營運中心，使我們能夠在施工階段高效執行合約積壓訂單和後續訂單。

We own one remaining US facility that was classified as a held for sale asset at June 30. Net proceeds from the sale of this facility, which is expected to close in late 2024, are expected to total approximately $25 million. In our well site services segment, we generated revenues of $46 million and adjusted segment EBITDA of $9 million in the second quarter.

我們擁有一處剩餘的美國設施，截至 6 月 30 日該設施被歸類為持有待售資產。該設施的出售預計將於 2024 年底完成，所得淨收益預計總計約 2,500 萬美元。在我們的井場服務部門，第二季的營收為 4,600 萬美元，調整後的部門 EBITDA 為 900 萬美元。

During the quarter, the segment recognized $2 million in costs associated with the consolidation and exit of underperforming locations. Additionally, the segment recorded charges of $1 million associated with the enforcement of patents related to its proprietary technologies. Excluding these charges, adjusted segment EBITDA margin was 18% in the second quarter compared to 14% in the first quarter.

本季度，該部門確認了與業績不佳地點的整合和退出相關的 200 萬美元成本。此外，該部門還記錄了與執行與其專有技術相關的專利相關的 100 萬美元費用。排除這些費用，第二季調整後的部門 EBITDA 利潤率為 18%，而第一季為 14%。

In our downhole technologies segment, we reported revenues of $38 million and adjusted segment EBITDA of $3 million for the second quarter. Adjusted segment EBITDA margin was 8% in the second quarter compared to 7% in the first quarter.

在我們的井下技術部門，第二季的營收為 3,800 萬美元，調整後的部門 EBITDA 為 300 萬美元。第二季調整後的部門 EBITDA 利潤率為 8%，而第一季為 7%。

And during the second quarter, Oil States generated $10 million in cash flows from operations and received $10 million in proceeds from the facility sale. Cash was used to fund capital expenditures of $6 million, purchased $11.5 million principal amount of our 4.75% convertible senior notes at a discount and buy back $2.4 million of our common stock.

在第二季度，Oil States 透過營運產生了 1000 萬美元的現金流，並從設施出售中獲得了 1000 萬美元的收益。現金用於資助 600 萬美元的資本支出，以折扣價購買了 1,150 萬美元本金的 4.75% 可轉換高級票據，並回購了 240 萬美元的普通股。

Now Cindy will offer some market outlook and concluding comments.

現在Cindy將提供一些市場展望和總結性評論。

Despite some concerns about oil demand in China and the possibility of OPEC+ ceasing voluntary production cuts in 2025, crude oil pricing has remained relatively stable over the first half of the year, generally in the $75 to $85 per barrel price range which has provided our E&P customers a predictable environment for planning and sanctioning major offshore and international projects.

儘管人們對中國的石油需求存在一些擔憂，OPEC+ 可能會在2025 年停止自願減產，但今年上半年原油價格仍保持相對穩定，總體在每桶75 至85 美元的價格範圍內，這為我們的勘探和生產提供了保障。

Stable oil prices and a strong long-term outlook for natural gas and LNG demand supports significant levels of capital investment in offshore field development led by the US, Latin America, Asia, and Africa. Major subsea OEMs continue to experience significant backlog growth as a result of orders for subsea production systems. We expect this trend to positively influence our business and future bookings.

穩定的油價以及強勁的天然氣和液化天然氣需求長期前景支持了以美國、拉丁美洲、亞洲和非洲為首的海上油田開發的大量資本投資。由於海底生產系統的訂單，主要海底原始設備製造商的積壓訂單持續大幅增加。我們預計這一趨勢將對我們的業務和未來的預訂產生積極影響。

Growth trends continue to look favorable, given the level of offshore capital investment, our bidding and quoting activity, new product introductions, along with strong levels of bookings and backlog. Second-quarter US land activity levels have declined despite favorable WTI crude oil prices. Even with lower activity levels and weak natural gas prices, production and inventory levels have remained high, leading to a more challenging land market.

鑑於離岸資本投資水平、我們的招標和報價活動、新產品推出以及強勁的預訂和積壓水平，成長趨勢仍然看好。儘管 WTI 原油價格有利，第二季美國土地活動水準仍有所下降。儘管活動水準較低且天然氣價格疲軟，但產量和庫存水準仍然很高，導致土地市場更具挑戰性。

Given current industry dynamics, we expect US land drilling and completion spending over the balance of 2024 to remain at or near current levels. We expect our well site services and downhole technologies segments to perform in line with market activity indicators, which are weighted to US land activity.

鑑於目前的產業動態，我們預計 2024 年剩餘時間美國陸地鑽探和完井支出將保持在或接近目前水準。我們預計我們的井場服務和井下技術部門的表現將符合市場活動指標，這些指標以美國陸地活動為權重。

The consolidation and exit of underperforming locations and the implementation of additional cost control measures should provide tangible margin benefits in subsequent quarters as assets are redeployed to more favorable operating locations.

隨著資產被重新部署到更有利的營運地點，業績不佳地點的整合和退出以及額外成本控制措施的實施將在隨後幾季帶來切實的利潤收益。

We are benefiting from the continued adoption and deployment of our new technologies, including our proprietary active seat valves within our well site services segment. Within our downhole technologies segment, we expect to see further market penetration with the recent introduction of our new EPIC portfolio of perforating systems.

我們受益於新技術的持續採用和部署，包括我們井場服務領域專有的主動座閥。在我們的井下技術領域，隨著最近推出的新 EPIC 射孔系統產品組合，我們預計會看到進一步的市場滲透。

Considering market dynamics, we are able to confirm our adjusted EBITDA guidance of $85 million to $90 million for 2024. In terms of free cash flow generation, we expect to generate approximately $40 million in free cash flow during 2024, which excludes the planned fourth quarter US facility sale and remains in line with prior guidance, implying a free cash flow yield of 10% or greater.

考慮到市場動態，我們可以確認 2024 年調整後 EBITDA 指引為 8,500 萬至 9,000 萬美元。在自由現金流產生方面，我們預計2024 年將產生約4000 萬美元的自由現金流，其中不包括計劃的第四季度美國設施銷售，並與先前的指導保持一致，這意味著自由現金流收益率為10% 或更高。

We will continue to maintain disciplined capital allocation priorities by judiciously investing in growth CapEx and organic research and development opportunities to drive additional technology differentiation. We will continue to evaluate debt reduction opportunities, share repurchases, and targeted acquisitions.

我們將繼續透過明智地投資於成長資本支出和有機研發機會來維持嚴格的資本配置優先事項，以推動更多的技術差異化。我們將繼續評估債務削減機會、股票回購和有針對性的收購。

Now I would like to offer some concluding comments. We remain focused on optimizing our operations and pursuing profitable activity in support of our global customer base. As market opportunities unfold, both in the US and in international and offshore markets, we will continue to focus on core areas of expertise with the deployment of our recently enhanced equipment and technologies to further differentiate our product and service offerings.

現在我想提出一些結論性意見。我們仍然專注於優化我們的營運並追求獲利活動，以支持我們的全球客戶群。隨著美國以及國際和離岸市場的市場機會不斷湧現，我們將繼續專注於核心專業領域，部署我們最近增強的設備和技術，以進一步使我們的產品和服務脫穎而出。

Our core competencies are well entrenched in the markets we serve, and we continue to bid on potential opportunities supporting our traditional subsea, floating and fixed production systems, drilling and military customers while also bidding to support multiple new customers and projects involved in developments such as deep-sea minerals gathering, fixed and floating offshore wind, carbon capture and storage, geothermal applications, and other renewable and clean tech energy opportunities.

我們的核心競爭力在我們所服務的市場中根深蒂固，我們將繼續競標潛在機會，支持我們的傳統海底、浮式和固定生產系統、鑽井和軍事客戶，同時競標支援多個新客戶和涉及開發的項目，例如深海礦物採集、固定和浮動離岸風電、碳捕獲和儲存、地熱應用以及其他可再生和清潔技術能源機會。

These new energy transition opportunities create strong potential for us to expand our product and service offerings and our revenue base over the longer term. Oil States will continue to conduct safe operations and will remain focused on providing technology leadership in our various product and service offerings with value-added products and services available to meet customer demands globally.

這些新能源轉型機會為我們創造了強大的潛力，可以擴大我們的產品和服務範圍以及長期的收入基礎。石油國家將繼續進行安全運營，並將繼續專注於在我們的各種產品和服務中提供技術領先地位，並提供增值產品和服務，以滿足全球客戶的需求。

That completes our prepared comments. Eric, would you open up the call for questions and answers at this time?

我們準備好的評論就完成了。艾瑞克（Eric），現在可以打開電話進行問答嗎？

(Operator Instructions) Jim Rollyson, Raymond James.

（操作說明）Jim Rollyson、Raymond James。

Cindy, it was obviously great to see a nice sequential rebound in the offshore manufactured products business, which kind of falls in line typically, I guess, with your seasonal factors. But curious with kind of the orders and backlog and as you see that over the back half of the year, how are you thinking about kind of revenue and margin trajectory based on kind of the timing of what's in backlog today, kind of a similar trend to last year or something different?

辛迪，很高興看到離岸製造產品業務連續反彈，我想這通常與季節性因素相符。但對訂單和積壓訂單感到好奇，正如您在今年下半年看到的那樣，您如何根據今天積壓訂單的時間來考慮收入和利潤軌跡，有點類似的趨勢和去年有什麼不同嗎？

Clearly, if you kind of look at the guidance, to some degree, the revenue and trajectory, I'll call it, over the next couple of quarters looks -- I'm going to call it strong, but fairly level given that our bookings to date are at 0.9 times. And so a lot of the momentum we're seeing, I would say, carries into 2025. We -- again, I don't know if we made comments about our bookings outlook, but we still expect our overall book-to-bill to be north of 1, which implies greater than a 1 time book-to-bill for the second half of this year.

顯然，如果你看一下指導，在某種程度上，收入和軌跡，我會稱之為，在接下來的幾個季度看起來 - 我會稱之為強勁，但相當水平，因為我們迄今為止的預訂次數為0.9 次。因此，我想說，我們看到的許多勢頭將延續到 2025 年。再說一次，我不知道我們是否對預訂前景發表了評論，但我們仍然預計我們的整體預訂比帳單比 1 更高，這意味著預訂比帳單比今年下半年 1 倍以上。

And again, I think that sets up very well for 2025. I haven't looked at my individual quarters in terms of revenue generation. But again, embedded in our guidance, a lot of the activity is going to be driven by offshore and international. No surprise there based on the overall macro environment that we're looking at, and that implies strong results for this particular segment.

再說一次，我認為這為 2025 年奠定了良好的基礎。我還沒有從創收方面考慮我個人的季度。但同樣，在我們的指導中，許多活動將由離岸和國際驅動。基於我們正在考慮的整體宏觀環境，這並不奇怪，這意味著這一特定領域的強勁業績。

Perfect. Yes, just looking for confirmation there. So I appreciate that. And on the well site services and downhole technologies, you mentioned similar in the past, your revenues kind of performed in line with activity. But clearly, some of the kind of internal things you're doing on the cost side and managing operations that weren't performing have obviously paid through in margin benefits this quarter.

完美的。是的，只是在那裡尋找確認。所以我很欣賞這一點。在井場服務和井下技術方面，您過去曾提到類似的情況，您的收入與活動一致。但顯然，您在成本方面所做的一些內部工作以及管理未履行職責的營運顯然已在本季度的利潤率效益中得到了回報。

And you mentioned just that growing as you continue to work on those things. Any sense of kind of how you're thinking about magnitude of potential margin expansion in the kind of flattish from here outlook?

你剛才提到，隨著你繼續致力於這些事情，你會不斷成長。在這種平淡的前景中，您如何看待潛在利潤擴張的幅度？

Yeah. So Jim, I'll take that. So when we're looking at well site services with us closing some of these underperforming locations, we could see that the margins overall getting into the low 20% range, EBITDA margins.

是的。那麼吉姆，我會接受的。因此，當我們考慮關閉一些表現不佳的井場服務時，我們可以看到整體利潤率進入了 20% 的低水平，即 EBITDA 利潤率。

Okay. Yeah. No, that's very healthy. And what are you thinking about for downhole technologies because that obviously had an improved quarter as well from a few different things.

好的。是的。不，那是非常健康的。您對井下技術有何看法，因為從一些不同的方面來看，該技術顯然也有一個季度的改善。

Yes. So high single digits, low double digits.

是的。高個位數，低兩位數。

On EBITDA margin.

EBITDA 利潤率。

On EBITDA. Yeah.

關於 EBITDA。是的。

Stephen Gengaro, Stifel.

史蒂芬·根加羅，斯蒂菲爾。

Thanks. Good morning, everybody. So just quickly to clarify, were you guiding -- were you suggesting well site margins in the low 20s in the second half of the year. Is that -- was that your -- I was trying to just make sure I understood that correctly.

謝謝。大家早安。因此，請快速澄清一下，您是否在指導——您是否建議下半年油井利潤率在 20 左右。那是——那是你的嗎——我只是想確保我理解正確。

Yes.

是的。

Yes.

是的。

Okay. Thank you. Great. I guess two things for me. First, Cindy, you've been watching this market a long time like I have, and we've been kind of consistently frustrated by the lack of US activity growth on the land side. And I know there's M&A reasons and the gas market has been soft. But what are you -- do you see anything else there? And maybe how do you think about maybe the catalyst or what needs to happen to get kind of a recovery on the US land side even if it's several quarters out?

好的。謝謝。偉大的。我想對我來說有兩件事。首先，辛迪，你和我一樣一直關注這個市場很長時間，我們一直對美國陸地活動缺乏成長感到沮喪。我知道有併購的原因，天然氣市場一直很疲軟。但你是什麼——你還看到那裡有其他東西嗎？也許您如何看待催化劑或需要發生什麼才能使美國陸地復甦，即使這需要幾個季度的時間？

Yes. Well, first and foremost, embedded in my comments is just the statement. If you look back for the last 15 months, maybe 18 months. Activity on land is down kind of 20%-plus. It's kind of shocking quite frankly. And yet despite that, we're producing record levels.

是的。嗯，首先，我的評論中包含的只是聲明。如果你回顧過去 15 個月，也許是 18 個月。陸域活動下降了 20% 以上。坦白說，這有點令人震驚。儘管如此，我們的生產水準仍創歷史新高。

And the way I look at that, I don't do basin by basin analysis. But certainly, there are a lot of analysts that do that say productivity per foot is flat to down in most of the basins. And so it is my opinion that a lot of this M&A activity is for geared towards the resource play and being able to move from 2-mile laterals to 3.

在我看來，我不會逐一盆地進行分析。但當然，有許多分析師表示，大多數盆地的每英尺生產率持平甚至下降。因此，我認為，許多併購活動都是為了資源的利用以及能夠從 2 英里的橫向延伸到 3 英里。

And when you do that, the real answer is you're just drilling and completing a lot of available footage, and we're benefiting from that. And so this efficiency measure gets a little more elusive when you're talking about productivity per foot versus just extended laterals, it's all good for the operator.

當您這樣做時，真正的答案是您只是鑽探並完成大量可用的素材，我們將從中受益。因此，當您談論每英尺的生產率而不是僅延伸橫向時，這種效率衡量標準變得更加難以捉摸，這對操作員來說都是有好處的。

But again, I think we and everybody else believe that production is going to turn at some point. And the question that -- agile question is when does that happen? But clearly, in my opinion, 2025 kind of spells a different level of overall production as some of these decline curves hit, that's number one.

但我想我們和其他人都相信生產會在某個時候發生轉變。敏捷問題是什麼時候發生？但顯然，在我看來，2025 年整體生產水準會有所不同，因為其中一些下降曲線會出現，這是第一位的。

Number two is just natural gas. They're in anyone that really debates the long-term contribution and benefit from both natural gas and LNG. It will come, and if you get kind of the double trigger, if you will, between natural gas activity and an improved crude oil activity environment, those are clearly the drivers for a service company like us as it relates to US land.

第二是天然氣。他們存在於真正爭論天然氣和液化天然氣的長期貢獻和利益的人身上。它將到​​來，如果你在天然氣活動和改善的原油活動環境之間得到某種雙重觸發，那麼這些顯然是像我們這樣與美國土地相關的服務公司的驅動力。

It's just very hard for me to see how that does not happen in 2025. But all I hear from everybody right now is kind of a muted 2025 US land outlook, and that's because of two things right now, this perception of reduced demand in China, which I mentioned in my notes, coupled with the fact that OPEC+ has voluntary production cut in place that they're telling the market they may reverse late this year, early 2025.

我很難想像 2025 年這種情況不會發生。但我現在從每個人那裡聽到的都是對2025 年美國土地前景持溫和態度，這是因為現在有兩件事，我在筆記中提到的中國需求減少的看法，以及OPEC+ 自願加入這一事實。

So it's always about the macro in this world. And maybe I'm just an optimist because you need to be an optimist in this space, but I see a better 2025 shaping up than maybe the analysts have in their models and what they're thinking. In fact, we had one kind of cut our outlook for 2025, and I just don't see it right now.

所以這總是關於這個世界的宏觀。也許我只是一個樂觀主義者，因為你需要在這個領域成為一個樂觀主義者，但我看到 2025 年的情況會比分析師在他們的模型和他們的想法中所看到的更好。事實上，我們對 2025 年的前景進行了某種削減，但我現在還沒有看到這一點。

Got you. Great. Thanks for the color. And then maybe as a follow-up to that, when you think about rig efficiency and completion efficiency and longer laterals, where does that benefit you guys the most? Which product lines -- yeah, that might be helpful. Just some color on that.

明白你了。偉大的。謝謝你的顏色。然後，也許作為後續行動，當您考慮鑽機效率、完井效率以及更長的支管時，這對您最有利的地方是什麼？哪些產品線 - 是的，這可能會有所幫助。只是一些顏色。

It's across both our well site services and our downhole technologies segments, predominantly because the -- you're really talking again about a US land-driven activity at this point in time. And with our active seat valves, number one, they are more efficient to the operating. They work very well in extended laterals multi-pad type work, and it's cost effective for us to bring those to market just from the efficiency at the well site.

它涉及我們的井場服務和井下技術領域，主要是因為您此時確實再次談論美國陸地驅動的活動。第一，我們的主動座閥可以提高操作效率。它們在擴展側向多墊板類型作業中工作得非常好，僅從井場的效率來看，我們將這些產品推向市場是具有成本效益的。

And then our new suite of downhole technologies, again, the EPIC product line, we have hoped to gain market share even in a flatter market, much less an improving market. That, coupled with international penetration, we believe, helps us turn that segment around.

然後是我們的新井下技術套件，再次是 EPIC 產品線，我們希望即使在平坦的市場中也能獲得市場份額，更不用說在改善的市場中了。我們相信，再加上國際滲透，有助於我們扭轉該細分市場的局面。

Great. No, that's very helpful. And then just maybe one final one for me. I think you mentioned maybe a book-to-bill of over 1 in offshore manufactured products in the back half of the year. Is there -- when we think about the trajectory of growth for that business, should we just really be thinking about offshore deepwater rig activity and then any rigs that get added and how that kind of ultimately morphs into demand for your products? Is it the best proxy we can use for what that growth could look like in '25 and '26?

偉大的。不，這非常有幫助。然後對我來說也許是最後一件事。我想你提到今年下半年離岸製造產品的訂單出貨量可能超過 1。當我們考慮該業務的成長軌跡時，我們是否應該真正考慮海上深水鑽機活動，然後添加任何鑽機，以及這種最終如何轉變為對您產品的需求？這是我們可以用來衡量 25 年和 26 年成長的最佳指標嗎？

Yes. It's kind of near term, long term, and let me explain that a little bit. Rigs go to work in development drilling profiles prove up work that leads into longer-term production infrastructure. Again, you know all of that. It used to be we were not heavily exposed, and we're still weighted to offshore production facility development.

是的。這是近期的、長期的，讓我稍微解釋一下。鑽機在開發鑽井剖面中投入工作，證明了可進入長期生產基礎設施的工作。再說一次，你知道這一切。過去我們的暴露程度並不高，而且我們仍然注重海上生產設施的開發。

My however is with the recent introduction of our new managed pressure drilling technologies, as rigs do go to work, we are seeing incremental demand for particularly MPD equipment. But even deck equipment and other types of riser products that we have.

然而，隨著我們最近推出新的控壓鑽井技術，隨著鑽孔機投入使用，我們看到 MPD 設備的需求不斷增加。但即使是我們擁有的甲板設備和其他類型的立管產品。

So we'll see some -- that's what I call, nearer term because everybody knows rigs are going to work. They're being upgraded. They're getting longer-term contracts. But the great news is the follow-on from that will be increased subsea and production infrastructure development. And again, you've seen other larger companies in the space with some very good bookings that kind of are a precursor to the demand for some of our products and services.

所以我們會看到一些——這就是我所說的近期術語，因為每個人都知道鑽孔機將會發揮作用。他們正在升級。他們正在獲得長期合約。但好消息是隨之而來的將是增加海底和生產基礎設施的開發。再說一遍，您已經看到該領域的其他較大公司有一些非常好的預訂，這是對我們的某些產品和服務的需求的先兆。

(Operator Instructions) John Daniel, Daniel Energy Partners.

（操作員說明）John Daniel，Daniel Energy Partners。

Thank you. Morning, Cindy and Lloyd. Just two for me. You noted in the prepared remarks that you anticipate activity in the, I guess, lower 48 to be at or near current levels. I'm just curious if that's where we stay for the balance of the year and maybe even into Q1. How do you see that changing the competitive landscape and your -- in the areas you serve and how many people don't make it, if you will? Just your thoughts on that.

謝謝。早上好，辛蒂和勞埃德。對我來說只有兩個。您在準備好的發言中指出，您預計 48 美元以下的活動將達到或接近當前水準。我只是好奇我們是否會在今年餘下的時間裡保持這種狀態，甚至可能進入第一季。您如何看待競爭格局的改變以及您所服務領域的競爭格局以及有多少人未能成功（如果您願意的話）？只是你對此的想法。

I'm sorry, you're asking kind of the competitive landscape on US land activity?

抱歉，您是想了解美國陸地活動的競爭格局嗎？

If we stay in this sort of flattish range right now, do you see it changing the competitive landscape at all over the next six to nine months?

如果我們現在保持在這種平穩的範圍內，您認為它會改變未來六到九個月的競爭格局嗎？

Yeah. I'm going to respond to that, and I'll see if Lloyd has any add-on comments. So we get anecdotal comments and evidence of smaller players kind of shutting down local operations, various facilities, trimming headcount, tamping down for the summer. I almost think of those as one-offs that do modestly improve the competitive landscape.

是的。我將對此做出回應，我會看看勞埃德是否有任何附加評論。因此，我們得到了一些軼事評論和證據，表明較小的參與者關閉了當地業務、各種設施、削減了員工人數、為夏季做好了準備。我幾乎認為這些都是一次性的，可以適度改善競爭格局。

But I'll offer you a bigger picture comment that what I've probably not seen as many M&A opportunities in a very long time. And so I think when everybody recognizes how competitive the energy services market is, they're looking for opportunities to either exit or just kind of optimize their operations through M&A. And we see quite a lot. And certainly, on a basin specific level, we're seeing that.

但我會向您提供更宏觀的評論，我可能已經很長一段時間沒有看到如此多的併購機會了。因此，我認為，當每個人都意識到能源服務市場的競爭有多激烈時，他們就會尋找退出的機會，或者只是透過併購來優化其營運。我們看到了很多。當然，在特定流域的層面上，我們也看到了這一點。

But I'd say even importantly, larger service companies are, I'll call it, drinking our customers' Kool-Aid in the sense that they're seeing the market consolidation. They're seeing the need for size and scale from an operating perspective, not to mention from a shareholder perspective.

但我想說，更重要的是，我稱之為大型服務公司，他們正在喝我們客戶的“酷愛飲料”，因為他們看到了市場整合。他們從營運角度看到了對規模和規模的需求，更不用說從股東角度來看了。

And so we have all kinds of inbounds right now from both private and public entities. And so while, yes, I think some of the smaller players fall out just by closing locations, facilities, trimming headcount, I think the bigger picture is going to be the consolidation which it seems like is heating up.

因此，我們現在有來自私人和公共實體的各種入境。因此，是的，我認為一些較小的參與者只是透過關閉地點、設施、削減員工數量而退出，但我認為更大的前景將是似乎正在升溫的整合。

Okay. Thank you for that. The next one is on the new products and technologies that you guys are introducing. Can you just address customer willingness to try new products at this stage and sort of how you see the expected adoption rates playing out over the next year or two -- one to two years?

好的。謝謝你。下一篇是關於你們正在推出的新產品和新技術。您能否談談客戶在現階段嘗試新產品的意願，以及您如何看待未來一兩年（一到兩年）的預期採用率？

Yeah. And again, my comments may not surprise you. There's much greater willingness to trial a one-off technology introduction on US land. And just think about it, the wells are smaller, the AFE costs are smaller. Generally, they're going with proven operators in the first place.

是的。再說一次，我的評論可能不會讓你感到驚訝。人們更願意在美國土地上嘗試一次引進科技。想想看，井越小，AFE 成本就越小。一般來說，他們首先會選擇經過驗證的營運商。

And secondarily, those types of customers are really coming to us and others telling us the enhancements that they need. And so to some degree, these are being developed in conjunction with operator involvement and communication. And so their willingness to trial them is better.

其次，這些類型的客戶確實來到我們這裡，其他人告訴我們他們需要的增強功能。因此，在某種程度上，這些都是與營運商的參與和溝通結合起來開發的。因此他們嘗試的意願也更好。

Now that being said, I'll use my example of downhole technologies, there's a lot of offerings in the market right now. And when activity is down to the degree it has been over the last 15 to 18 months, it is harder to get a partner to trial, new technology. And so it's maybe the uptake is a little bit slower.

話雖這麼說，我將使用我的井下技術範例，目前市場上有許多產品。當活動下降到過去 15 到 18 個月的水平時，就很難讓合作夥伴試用新技術。因此，吸收速度可能會慢一些。

I'll put that in complete contrast to deepwater offshore. And our company has been participating in that space for 80 years, and the barriers to entry are just significant. And it always would stun me if a, I'll call it, a one-off newer company tried to get a product introduced. I think it'd be very, very difficult as opposed to someone that has a deep, long demonstrated operating history in this space. And I'll use a couple of examples.

我將把它與深水近海完全對比。我們公司進入這個領域已經 80 年了，進入障礙非常大。如果一家（我稱之為）一次性的新公司試圖推出一款產品，我總是會感到震驚。我認為，與在這個領域擁有深厚、長期營運歷史的人相比，這將是非常非常困難的。我將舉幾個例子。

Number one is our high-pressure riser systems. We've been putting riser systems in the market for decades. So you're more willing to be able to adapt and advance that technology and get market acceptance. Probably the newer technology I'll talk about is the MPD systems that we've got great acceptance thus far of our products and great interest thus far, but we brought a newer, more advanced, more efficient offering to the market that was already there, again, in conjunction with conversations around customer needs to get there.

第一個是我們的高壓立管系統。幾十年來，我們一直在向市場投放立管系統。因此，您更願意能夠適應和推進該技術並獲得市場認可。我要談論的新技術可能是MPD 系統，到目前為止，我們的產品已經得到了廣泛的認可和極大的興趣，但我們為市場上已經存在的產品帶來了更新、更先進、更有效率的產品再次，結合圍繞客戶需求的對話來實現這一目標。

And I want to say, and oh, by the way, we've been working on this off and on for probably seven years. And so complete difference in terms of market introductions, and we're going to be cautious about bringing any new technology to bear just because the risk of reputation and the risk of failure is great offshore, right? But -- and then I'll take this a step further, as we prove up technologies on US land, then we're going to take those into international markets more efficiently.

我想說，哦，順便說一句，我們已經斷斷續續地為此工作了大約七年。在市場引入方面存在如此完全的差異，我們會對引入任何新技術持謹慎態度，因為離岸聲譽風險和失敗風險很大，對吧？但是——然後我將更進一步，當我們在美國土地上證明技術時，我們將更有效地將這些技術帶入國際市場。

I will now turn the call back over to Cindy Taylor, President and CEO, for closing remarks. Please go ahead.

現在，我將把電話轉回給總裁兼執行長辛蒂泰勒 (Cindy Taylor)，她將發表結束語。請繼續。

You bet. Thank you, Eric, and thanks to all of you for joining our call today. I know it's a very busy portion of the earnings season. We're very glad to report stronger improved results, both this quarter and our outlook, I think, will guide to better days ahead as well. And so hope the rest of the earnings season goes well, and we look forward to catching up with each of you throughout the next several months. Take care.

你打賭。謝謝你，艾瑞克，也謝謝大家今天加入我們的電話會議。我知道這是財報季非常繁忙的部分。我們很高興報告本季的業績取得了更強勁的改善，我認為我們的前景也將指導未來更好的日子。因此，希望財報季的剩餘時間一切順利，我們期待在接下來的幾個月與你們每個人保持聯繫。小心。

Ladies and gentlemen, this concludes today's call. You may now disconnect.

女士們、先生們，今天的電話會議到此結束。您現在可以斷開連線。