Expro Group Holdings (XPRO) JP Morgan Energy, Power and Renewables Conference summary

Macro environment and market positioning

• Strong macro environment with investment shifting internationally, especially offshore, where 70% of activity and 80% of revenue are focused.

• Offshore deepwater projects benefit from improved drilling efficiency, lowering break-even to around $40/barrel.

• Key regions like the Gulf of Mexico, Brazil, and West Africa expected to remain robust.

• Middle East activity remains strong due to long-standing relationships and low lifting costs, with minimal impact from Saudi CapEx adjustments.

• West Africa's deepwater project pipeline is expected to grow, providing multi-year runway for activity.

Business strategy and portfolio

• Organized around four business lines: well construction, well flow management, subsea well access, and well intervention/integrity.

• Focus on technology investment and operational efficiency, including automation and machine learning to reduce personnel needs.

• Strategy emphasizes expanding service offerings and international footprint, leveraging strong customer relationships.

• U.S. land exposure intentionally minimized due to commoditization; focus remains on differentiated technology.

Financial performance and outlook

• 2024 guidance reaffirmed: $1.65 billion revenue and $350 million EBITDA at 21% margin.

• Clear pathway to $2 billion revenue and 25% EBITDA margin by 2025, driven by operational leverage, efficiency, and favorable business mix.

• Margin expansion supported by cost synergies, technology, and increased deepwater activity.

• Strong balance sheet with zero net debt, supporting both M&A and capital return flexibility.