Good morning, and thank you for joining us for RPC Inc.'s second quarter 2026 Earnings Conference Call. Today's call will be hosted by Ben Palmer, President and CEO, and Mike Schmidt, Chief Financial Officer. At this time, all participants are in listen-only mode. Following the presentation, we will conduct a question-and-answer session. Instructions will be provided at that time for you to queue up for questions. I would like to advise everyone that this conference call is being recorded. I will now turn the call over to Mr. Schmidt.

Thank you and good morning. Before we begin, I want to remind you that some of the statements that will be made on this call could be forward-looking in nature and reflect a number of known and unknown risks. Please refer to our press release issued today, along with our 10-K and other public filings that outline those risks, all of which can be found on RPC's website at www.rpc.net. In today's earnings release and conference call, we'll be referring to several non-GAAP measures of operating performance and liquidity. We believe these non-GAAP measures allow us to compare performance consistently over various periods. Our press release and our website contain reconciliations of these non-GAAP measures to the most directly comparable GAAP measures. I'll now turn the call over to our President and CEO, Ben Palmer.

Thank you, Mike, and thank you for joining our call this morning. Before turning to our second quarter results, I want to briefly address the CEO succession announcement we made in June. As we announce, I plan to retire as president and CEO and step down from the board by the end of 2026, following 30 years with RPC. The board has initiated a search for my successor, which is expected to conclude before year end, and I will remain in an advisory capacity to support a smooth leadership transition. It's been the privilege of my professional life to spend the past three decades at RPC. Together with our talented team, we've built a diversified platform underpinned by strong brands, a low leverage balance sheet, and a disciplined focus on full cycle returns. I'm committed to working closely with the board to ensure continuity for our employees, customers, and shareholders. And in the meantime, our focus remains on discipline execution, prudent capital allocation, and delivering long-term shareholder value. With that, let's turn to our second quarter results, and I'll provide you with a few operational highlights. While industry activity levels remained relatively subdued, RPC delivered sequential revenue growth and meaningful margin expansion, driven by strong execution, improved job mix, technology adoption, and contributions from targeted investments. Within technical services through tubing solutions, downhole tools revenues increased 10% sequentially. We saw broad-based strength, with our Rocky Mountain region growing more than 20% sequentially. Thru-tubing Solutions is a market leader in downhole completion tools with a portfolio of products supported by proprietary technologies and our patent portfolio. Over the last several years, we have introduced new motor sizes, new motor components, split-string tools, surface tools, and stage isolation products, just to name a few. These products have been well-received and allow us to continue our market leadership. Through Technic Solutions has introduced new sizes of its metal-on-metal power section called Metal Max, along with expanding availability across districts. This has resulted in increased addressable market and improved Metal Max penetration. Metal Max's performance and design characteristics are enabling entry into new markets and applications previously served by traditional power section components. The product reduces the number of trips an operator has to make out of the hole, reducing non-productive time. Our through tubing solutions team completed multiple horseshoe wells in the Permian exceeding 27,000 feet over the last several weeks. In addition to long lateral sections, these wells have added friction and complexities due to the turns. We collaborate with operators to package a solution that will drill out the well in the most efficient and reliable way through tubing solutions unplug technology which replaces traditional drill uh bridge plugs continues to have success during the quarter we had several additional customers trial this product overall our downhole tools business is benefiting from more complex and longer laterals that are well suited for our technology solutions also within technology services cut pressure controls revenues were up 8% sequentially led by coil tubing, snubbing, and well control. Cut pressure control snubbing business was up 14% sequentially. We received the Big Bore snubbing unit during the quarter and began work in early June. The unit has since mobilized to a multi-project job. The Big Bore's design features make it ideally suited for cavern gas storage inspections, which is regulatory driven. This is part of our effort to continue diversifying beyond on well completions. Coil tubing, our largest service line within cut pressure control, was up 6% sequentially. Coil tubing had the strongest growth in Elk City, which serves multiple basins, as well as growth in Pennsylvania and Michigan. We saw increased utilization across all of our larger diameter units with the 2-7-8 unit fully utilized. As part of our multi-year coil tubing strategy, we have accelerated our investments here. We now expect a total of three two and eight sevenths capable units by year end with two coming from real trailer upgrades to previously modernized units and one from the previously delivered trailblazer unit these upgrades provide additional large diameter capabilities to be deployed to the highest return markets while the while the wireline market conditions remain highly competitive we have remained disciplined on pricing and continued to maintain a strong position with key customers. Intel wireline revenues were down 16 percent sequentially. Revenues were impacted by customer activity reductions and lost crews due to aggressive competitor pricing. Cut Energy Services pressure pumping business saw a one percent sequential revenue decrease. Revenues benefited from slightly improved pricing but was also offset by slightly lower pump hours. Job mix impacted revenues as we saw less fuel and M&S costs and revenues, but benefited our profit margins. Our focus remains on continuing to earn an appropriate return on our equipment over a cycle, but without significant activity changes, we do not see meaningful increases in pricing. Currently, we have no plans to reactivate fleets at current levels. However, we are encouraged by easing gas takeaway constraints and the potential for 27 E&P budgets to reflect a more supportive commodity price environment. Carnival prices are more supportive of activity levels. However, the volatility from geopolitical events creates a less certain environment for customer investment decisions. We believe operators are being cautious due to uncertainty around the duration and ultimate levels of commodity prices. We do not expect a significant change in activity near term, but we acknowledge the dynamic nature of the market and are in a position to respond. Our focus is on controllable factors, strong full-cycle returns, and cash flow generation. With that, I'll now have Mike discuss the quarter's financial results.

Thanks, Ben. Our second quarter financial results with sequential comparisons to the first quarter of 2026 are as follows revenues increased one percent to 461 million dollars breaking down our operating segments technical services which represented 95 percent of our total second quarter revenues were up one percent support services which represented 5% of revenues were up 11%. The following is a breakdown of the second quarter revenues for our largest service lines. Pressure pumping, 30.3%. Downhole tools, 25.3%. Wireline, 19.2%. Coil tubing, 8.8%. Cementing, 6.2%. Rental tools, 3.6%. Together, these service lines accounted for 94% of our total revenues. Cost of revenues, excluding depreciation and amortization, was $346 million, compared to $356 million in the prior quarter. This decrease was primarily related to job mix, as we provided lower levels of materials and supplies and fuel for customers during the quarter. SG&A expenses were $52 million, up from $48 million in the prior quarter. SG&A increased due to some incentive comp, higher bad debt expense, and some other consulting expenses. As a percent of revenue, SG&A increased 60 basis points to 11.2%. Depreciation and amortization was $43 million, slightly up from the previous quarter. The effective tax rate was lower compared to the previous quarter, primarily due to smaller impact of the permanent adjustments on increased pre-tax income. Adjusted diluted EPS was $0.08 per share in the second quarter. Adjustments totaled $0.03 per share and related to the acquisition-related employment costs. Adjusted EBITDA was $66 million, up from $53.5 million. Adjusted EBITDA margins increased 250 basis points sequentially to 14.3%. EBITDA margin benefited by modest pricing improvements, better job mix, operational leverage from higher revenues at several locations, and a sales tax refund. Net cash provided by operating activities year-to-date was $75 million, and after CapEx of $71 million, free cash flow was $4 million. Working capital has been impacted by higher revenues and the timing of customer payments. At quarter end, we had approximately $180 million in cash, $30 million notes payable, and no borrowings on our $100 million revolving credit facility, which we amended and extended during the quarter through June 2031. Our regular cash dividend remains unchanged at $0.04 per share. Dividend payments totaled $17.7 million to date. We expect 2026 capital expenditures in the range of $170 to $190 million. We raise the range due to targeted growth investments where we see strong full-cycle returns, particularly in the areas that can further differentiate our service offerings. Given the timing and lead times, some of this spend may ultimately occur in 2027. We will continue to adjust our spend based on project returns and opportunity. I'll now turn it back over to Ben for some closing remarks.

Thank you, Mike. While we remain cautious regarding the pace of broader industry improvement, we believe RPC is well positioned with differentiated technologies, a strong balance sheet, and the financial flexibility to pursue attractive opportunities while continuing to generate cash and deliver strong full cycle returns. I want to thank all of our employees who put in tremendous work to provide high levels of service and value to our customers every day. Thank you for joining us this morning, and at this time, we're happy to address any questions.

We will now begin the 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. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. If you would like to ask a question, please press star 1 to raise your hand. Your first question comes from the line of John Daniel with Daniel Energy Partners. John, your line is open. Please go ahead.

Good morning, guys. Good morning, John.

Ben, first of all, I just want to thank you for the support of your year. I wish you a great retirement, and hopefully you'll come to the mainland for the bar in November.

So, I only really have one question. On the coil tubing units, the upgrades, are they staying in one basin, or do you see the opportunities to take them across the U.S.?

And just your thoughts on where that could go over the next couple of years in terms of need for more of those units. um yeah uh it it yeah it uh we we've done a lot in uh south texas the midcon and the permian that's where our focus has been but but obviously they are mobile and uh you know and and particular customer uh relationships will have a big bearing on on where we send those but uh but i i would see, at this point in time, those particular basins are the ones that we would probably be focused on. We don't see any big shifts at this point in time in that.

And then I think that, I'm going to squeeze one more. Just on the frack side of the business, I know you don't, I don't think you're going to disclose how many fleets you get running a day, but just some thoughts on, do you see opportunities for incremental horsepower deployments?

In terms of increased, I would say no. What we are doing, though, we are supporting the business. We are making selective, call them upgrades or whatever, you know, as equipment, obviously something you manage over time in terms of older units. Are those refurbed or replaced? Obviously, we're upgrading those to the newer technology, obviously leaning more and more into the equipment that is either entirely or the DGB type of equipment. So that's ongoing, that process of doing those upgrades. I would say, again, we're trying to remain disciplined as we have over time. We're not aggressively trying to upgrade. We're trying to be prudent, you know, use what we have that's available that we can generate decent returns with. But we're able to, you know, the business is able to, you know, fund those needs that we're willing to put back into the business.

Okay. Well, thank you very much. And again, congratulations.

Thank you, John. Appreciate that very much.

If you would like to ask a question, please press star one to raise your hand. We have reached the end of the Q&A session. I will now turn the call back to Mr. Ben Palmer for closing remarks.

Okay, thank you, Operator, and thank you for listening in. We appreciate it. Hope you have a good rest of the day and look forward to checking in.

This concludes today's call. A reminder that the conference call will be replayed on www.rpc.net within two hours following the completion of the call. Thank you for attending. You may now disconnect.