Greetings, and welcome to the ProFrac 2Q '25 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Michael Messina, Director of Finance. Thank you, sir. You may begin.

Thank you, operator. Good morning, everyone. Thank you for joining us for ProFrac Holding Corp.'s conference call and webcast to review our results for the second quarter ended June 30, 2025. With me today are Matt Wilks, Executive Chairman; Ladd Wilks, Chief Executive Officer; and Austin Harbour, Chief Financial Officer. Following my remarks, management will provide high-level commentary on the operational and financial highlights of the quarter before opening up the call to your questions. A replay of today's call will be made available by webcast on the company's website at pfholdingscorp.com. More information on how to access the replay is included in the company's earnings release. Please note that information reported on this call speaks only as of today, August 7, 2025. And therefore, you are advised that any time-sensitive information may no longer be accurate at the time of any subsequent replay listening or transcript reading. Also, comments on this call may contain forward-looking statements within the meaning of the United States federal securities laws, including management's expectations of future financial and business performance. These forward-looking statements reflect the current views of ProFrac's management and are not guarantees of future performance. Various risks, uncertainties and contingencies could cause actual results, performance or achievements to differ materially from those expressed in management's forward-looking statements. The listener or reader is encouraged to read ProFrac's Form 10-K and other filings with the Securities and Exchange Commission, which can be found at sec.gov or on the company's Investor Relations website section under the SEC Filings tab to understand those risks, uncertainties and contingencies. The comments today also include certain non-GAAP financial measures as well as other adjusted figures to exclude the contribution of Flotek. Additional details and reconciliations to the most directly comparable, consolidated and GAAP financial measures are included in the quarterly earnings press release, which can be found at sec.gov and on the company's website. And now I would like to turn the call over to ProFrac's Executive Chairman, Mr. Matt Wilks.

Thank you, Michael, and good morning to all. I'll begin with brief remarks, then turn it over to Ladd to elaborate on segment performance and key trends; and Austin will run through our second quarter financials. Q2 performance unfolded largely as anticipated based on the outlook we provided during our May earnings call. As we discussed, the market dynamics that emerged early in the quarter, particularly the sharp decline in commodity prices in early April led operators across our customer base to reassess their near-term completion requirements with several adjusting their activity levels to varying degrees. That said, we are encouraged to see the market -- that market conditions have modestly improved compared to our Q2 exit level. Commodity prices have firmed since early Q2, some crews have gone back to work, and we are having healthy dialogue with our customers around 2026 planning. This aligns with our previous observation that operators who reduced activity maintain the flexibility to quickly resume operations when conditions improve. Importantly, we continue to believe that today's hydraulic fracturing market dynamics create a compelling setup for the future with industry participants exercising capital discipline in response to current economic conditions and uncertainty. We see the potential for meaningful tightening in supply/demand should drilling and completion activity accelerate in response to improved commodity fundamentals in 2026. Turning to our core competitive advantages, the controllable factors that truly set us apart in the marketplace. Our vertically integrated manufacturing capabilities combined with our sophisticated asset management platform represent fundamental differentiators that provide both strategic agility and tangible financial value. Our asset management program is generating exceptional results. The strategic deployment of our 6 fleets under this program delivered our most efficient operational quarter on record in Q1 in terms of fleet efficiency and total maintenance costs. This integrated…

Thanks, Matt, and good morning, everyone. I'll provide a more granular detail on several themes Matt touched on, starting with our operational performance during the quarter. In Stimulation Services, we experienced the market dynamics Matt described with increased white space on the calendar following the early quarter oil price decline and activity levels decreasing in the Q2 end. We responded through our flexible fleet deployment capabilities and implemented cost reduction measures beginning in mid-May, though the full benefit didn't flow through until later in the period due to timing lags. The cost reduction process was impacted by some operational inefficiencies, including extended delays between pads that required us to maintain labor, equipment rentals and other semi-variable costs, limiting our ability to achieve immediate savings. Consistent with Matt's observations regarding the current market, our active fleet count stabilized near the end of the second quarter and into early Q3, and we've seen modest improvement in activity since then. We've been purposely selective in deploying the fleets in this environment with an emphasis on taking advantage of our vertical integrated solutions. Further, we're being prudent with spending and capital allocation amidst the current environment while retaining flexibility to respond to an increased call on activity. As Matt mentioned, activity can rebound just as rapidly as it slowed. We are well positioned to respond and encouraged by conversations we're having regarding 2026. Turning to our Proppant Production segment. We saw volumes decline during the second quarter into June. We anticipate volumes to remain relatively stable in the third quarter from our June run rate, while realized cost savings helping to offset the expected decline in revenues in the third quarter. As we've spoken about in the past, the operating leverage inherent in our proppant business becomes increasingly evident as we drive higher utilization…

Thanks, Ladd. In the second quarter, revenues were $502 million compared to $600 million in the first quarter. We generated $79 million of adjusted EBITDA with an adjusted EBITDA margin of 16% compared to $130 million in the first quarter or 22% of revenue. Importantly, free cash flow was $54 million in the second quarter versus negative $14 million in the first quarter. As mentioned earlier, we took actions to rightsize costs in response to market conditions. However, the timing of the activity slowdown mitigated the full impact of our initiatives until later in the second quarter. Turning to our segments. Stimulation Services revenues declined to $432 million in the second quarter from $525 million in the first quarter, primarily due to a reduced fleet count and increased white space. Adjusted EBITDA fell to $51 million from $105 million in Q1 with margins of 12% versus 20% in the prior quarter. This decline reflects inefficiencies stemming from customers moderating their activity levels as they reassess their operational plans, resulting in a delay in reducing operating costs until later in the quarter. Additionally, this segment incurred approximately $8 million in shortfall expenses related to our supply agreement with Flotek, consistent with the previous quarter. Our Proppant Production segment generated $78 million of revenues in the second quarter, up from $67 million in Q1. The increase was primarily attributable to an increase in delivered sand sales, which more than offset the impact of lower volumes. Approximately 48% of volumes were sold to third-party customers during the second quarter versus 63% in Q1. Adjusted EBITDA for the Proppant Production segment was $15 million for the second quarter versus $18 million in Q1. EBITDA margins came in at 19% in the second quarter versus 27% in Q1, with the decline largely reflecting the lower…

[Operator Instructions] The first question comes from John Daniel with Daniel Energy.

Matt, I was -- the comment about the increasing customer engagement around 2026. I'm sure -- I would assume nothing is set in stone. But I'm just curious, do you feel like the engagement is higher activity than where we are today? Or can you just elaborate a little bit more on what they're asking for?

Yes, definitely. We're seeing a lot more engagement around the 2026 programs for operators. We saw a pretty sharp drop off after Liberation Day. And since then, a lot of the operators that have slowed activity have started coming back, looking at what they need to do to bring some of them back. Some of them have already come back. But as we look at the RFP season and planning for 2026, we're seeing an increase to current activity levels.

Okay. And then just on the increased activity since the late June, early July trough. Can you just give some context whether, is that more gas directed or just folks in oil markets going back to work with the rebound in oil price? Just any color there would be helpful.

Yes. It's really across gas and oil. But it's -- the Permian, not quite as much of an increase as what we're seeing on gas, but there is an uptick from -- especially from the lows that we saw in June.

Thank you. At this time, I would like to turn the call back to Matt Wilks for closing comments.

We're grateful for your time today. While Q2 reflected the market headwinds we discussed on our last call, our vertically-integrated manufacturing capabilities, advanced asset management platform and technology leadership through initiatives such as ProPilot 2.0 continue to differentiate us competitively. Our strategic Flotek partnership has unlocked value and is providing us with exposure to a multibillion-dollar addressable market. And our disciplined capital allocation approach ensures we're well positioned for the supply and demand tightening we expect when activity accelerates. With healthy customer dialogues around 2026 planning, we remain confident in our ability to capitalize on improving conditions. We look forward to speaking with you again when we report our third quarter 2025 results. Thank you.

Thank you. This does conclude today's teleconference. You may disconnect your lines at this time. Thank you for your participation, and have a great day.