NCS Multistage (NCSM) Sidoti's Year End Virtual Investor Conference summary

Company overview and market positioning

• Focuses on technology-driven oilfield services and equipment, serving major global oil and gas producers.

• Competes with larger, established firms by targeting niche areas for leadership and attractive margins.

• Operates a capital-light model, outsourcing manufacturing to minimize investment and generate free cash flow.

• Maintains a diversified customer base with limited concentration, serving over 200 clients annually.

• Holds a 2% share in a $10 billion global completions market, with $180 million expected revenue in 2024.

Product lines and innovation

• Four main product lines: Fracturing Systems, Repeat Precision, Tracer Diagnostics, and Well Construction.

• Fracturing Systems account for 60% of revenue, with 30% market share in Canada and global leadership claims.

• Repeat Precision expands addressable market with high-performance and dissolvable frac plugs.

• Tracer Diagnostics, enhanced by the ResMetrics acquisition, provides data-driven well optimization.

• Well Construction’s AirLock system supports efficient long-lateral drilling and completion.

Strategic growth and international expansion

• Three core strategies: build on market leadership, capitalize on high-margin international growth, and commercialize innovative solutions.

• International revenue doubled in 2024, rising from 5% to 10% of total revenue, driven by Middle East and North Sea growth.

• Focuses on unconventional completions, offshore, and high-temperature applications for future growth.

• Sees significant opportunity in Argentina’s Vaca Muerta and Middle Eastern unconventional markets.

• Tracer Diagnostics product line helps international clients accelerate learning curves in unconventional development.