All right. Let's get this thing started. Good morning, everybody. My name's Jason Kim. I'm Sowmya Vemulapalli. We are the equity research associates on JP Morgan's Oilfield Services and Equipment team. Today, we have the pleasure of hosting Flowco and its President and CEO, Joe Bob Edwards. We're very honored to have him. Since its IPO a year ago, Flowco has quickly established itself as a pure play leader in production optimization, artificial lift, and emissions management solutions for the North American oil and gas industry. Joe Bob, thanks for joining us. I'll hand it over to Joe Bob for some opening remarks, and we'll proceed with a Q&A fireside chat. Excellent. Thank you. You want me up here? Yes, sir. Good morning, everybody, Thank you for coming. It is great to see some familiar faces, some new faces, It is great to tell you about my favorite subject, our company, Flowco. As Jason said, we IPO'd just over a year ago Are really pleased with our young life as a public company. We have, I think, a very unique story to tell. I am thrilled to share it with you Tell you a little bit more about what makes Flowco unique. I want to leave plenty of time for Q&A. We have got some interesting current events to talk about, some interesting geopolitical current events to address, Tell you a little bit about how the future looks for us. Just to set the stage, Flowco is the only public company that is purely focused in the production phase of the oil and gas industry. Once a well in the United States is drilled, you all know this, it has to be fracked, Then the oil company has to manage that production for, in some cases, up to 20-30 years. Our revenue, our very reason for being, begins when a well gets turned in line. Every well in the U.S. has to have some kind of help in order for it to maximize its production. That type of help is typically referred to as artificial lift. That actually describes what is done. We are helping a well lift its fluid to the surface by providing various techniques to lift the fluid out of the well to the surface That the oil company can then move it to market. The way that we actually go to market is through the various methods of lift, It is best seen really on slide eight. I love to start all my presentations on slide eight. For some reason, it makes sense to flip all the way there. Our business is organized in two segments: Production Solutions (artificial lift), Natural Gas Technologies, which is another form of production optimization. We have several brands that we have acquired over the years, and o ur customers procure their products through these brands, but w e go to market as one Flowco. Within Production Solutions, we have various ways of addressing the early production in the life of the well. There are two main forms of production, high-pressure gas lift and electrical submersible pumps. We have both forms of lift for the early life of the well. Typically, when a well matures, you go through a decline curve, as seen here on slide nine. The appropriate form of lift early in the life of the well needs to be handed over to something else. That typically is conventional gas lift. We also lead the market in that. As a well gets out to years eight, nine, 10, and beyond, we have a late-life solution called plunger lift that is fit for purpose for a large portion of the addressable market in the United States. On the Natural Gas Technologies side, we have a vapor recovery system which leads the market. Vapor recovery, again, is what it sounds like. We help oil companies capture fugitive emissions that are escaping from tank batteries. These emissions have BTU content, so they have economic value. Our vapor recovery systems allow oil companies to capture this production or this lost production and actually monetize it. Yes, it's an environmental solution, but above all else, this is a moneymaker for our clients. Our oil company clients actually deploy this environmental solution to help with their bottom line. All along the way, we have various digital solutions which help oil companies actually manage their production systems remotely. We are well down the path toward autonomous control of some of our systems through advancements in AI. We can talk more about that in the Q&A. We are thrilled with the position that we hold in the market. We have a growth plan that is, I think, very clearly demonstrated. We had very nice growth last year. We're projected to continue to grow this year at what I think is industry-leading rates. That's both organic and inorganic. Our M&A pipeline is full. My commitment to you guys is that we are going to stay true to what we know. We understand the production phase of a well's life inside and out. We understand the adjacent technologies that are required by our clients to help manage that production. We have strategies to round out our product portfolio, both organically and inorganically. I'm excited and honored to lead the company. With that, maybe an appropriate time to maybe pause for some Q&A? Yeah, absolutely. We'll get started. That's a great introduction, Joe Bob. Thank you very much. You mention your company's very uniquely levered to the production phase side of the activity. Let's just take a step back and start with the macro. It is our Natural Resources Conference, after all. Given the first half of 2026 has been marked by significant geopolitical volatility, you have commodity prices going higher. North America's starting to see some early signs of increased short cycle investment. Flowco's levered to production phases. It tends to be more stable. How has the recent Middle East conflict and resulting supply disruptions shaped customer conversations and activity levels in North America for your company? We generate very little revenue from the Middle East. Obviously, it's a big world out there. We'll talk about international expansion for Flowco in a minute. This disruption that is taking place in the Middle East has definitely impacted us in the U.S., and it's net-net a very positive development. No one likes conflict, no one likes the violence that comes with armed conflict. When you think about what emerges on the other side of this conflict, the security that the United States energy complex enjoys is going to be at a premium. The production that the North American shale business in particular has provided to the world stage should have a higher call on it. We're thrilled with, I think, the new normal on the other side of this. There should be a sort of a permanent geopolitical bid in the market for what our clients are selling, which is net good for us. Specifically related to activity, yes, you alluded to it, Jason, our clients are starting to add rigs. They're starting to add frac spreads. These are great early leading indicators for more activity for us. You also nailed it. There's a definite lag. We see really good early green shoots for later this year and into next year. We're gearing up for that with our CapEx programs and with our forecasts that we've put out to the street. Wonderful. We'll get to a little bit of the CapEx plans later on today as well. Flowco delivered a strong 1Q. Just posted some updated thoughts on guidance for the second quarter earlier this week, reflecting already a full quarter of Valiant contribution and continued rental growth. Recognize you're seeing some margin compression in the current environment within a particular subset of your business. As we move into the second half, investors are focused on the sustainability and margins of the cash flows that you have. Can you walk us through some of the main factors driving your updated thoughts on that updated guidance and how this sets up for the second half of the year? Yeah. To be clear, and we will reiterate, the growth story that we are telling, the revenue that we are generating is in line with expectations. The demand for what we do is incredibly solid. If you look on a full-year basis, our growth story leads the industry. We're going to be up somewhere in the 15%-20% range year-over-year, which we're thrilled about. Yes, we are seeing some margin pressure in the short run. We put out some updated guidance for Q2. We think we're going to come in at or slightly below the low end of the range, 100% driven by some cost issues. Really, it's in a couple of big buckets. We've got some increased pressure on lube oil, we are a large consumer of lube oil. We run over 5,000 compressor packages, and they consume lube oil just to run. We've seen definite cost pressure there. We think that's going to persist into Q3. We've also seen some maintenance expenditures that are a little higher than we had forecast. That's a mix of parts and people and timing, candidly. We're digging into both of those as aggressively as we can. We estimate a couple of hundred basis point margin pressure in Q2, which might persist longer into the year. We also suffered from some unfortunate mix shift during the quarter, which we think is not permanent. Yeah, look, again, to reiterate, the outlook for the year is solid. We just think here in Q2, we're going to suffer some things that need our attention, some of which are transitory, some of which we're digging into to make sure they're not structural. That's very helpful. Thank you, Joe Bob. You mentioned some of these are shifting, maintenance CapEx, working capital. What are some of the key puts and takes to think about free cash flow conversion for the rest of the year as working capital normalizes? We are very proud to have a very strong cash flow story. Okay? If you think big picture, even after a healthy dose of growth capital, and for the last several years, we've invested around $100 million a year of growth CapEx. Even after that, we're on a 50% free cash flow conversion from EBITDA to true free cash flow. That speaks to our very appropriately leveraged balance sheet. It speaks to some excellent work by the team on working capital management, and our discipline around capital expenditures. We're a very returns-driven organization. If I may, I'm going to go back to the presentation. Gabby, what slide is the money slide? The end. The end. Oh, thanks. Okay. There we go. Back one. Back one more. We make capital allocation decisions based on this graph. We have a number of very specific products that we invest the vast bulk of our growth capital in. High-pressure gas lift, conventional gas lift, and vapor recovery being the three that we've talked about most substantially since IPO. Most recently, we added a new product line in ESP through our Valiant acquisition. Each one of these areas has a clearly defined growth effort behind it. We allocate capital based on ROCE. Okay, what is it? Return on capital employed. Everybody knows that. Everybody has a different calculation about it, for it. We look at true full-cycle returns on every dollar of incremental capital we deploy. We are thrilled with the result of that capital allocation strategy between these four main areas that leads to industry-leading ROCE and industry-leading growth. Last I checked, any textbook will tell you that's a path to superior equity returns. We're thrilled with this result, and this is the way we make decisions every day. We always love a good call back to our valuation textbooks with the McKinsey book, really appreciate that. I think that's a good segue into some of the business models and the commercial models that Flowco deploys, and I'll hand it off to Sowmya. Definitely. Thank you. Joe Bob, turning to your rental platform, I think we've seen Flowco position its rental platform as a core driver of visibility, especially as rental revenue represented around 60% of total revenue as of the first quarter, and it's increased 9% sequentially, supported by steady demand you're seeing across surface equipment and vapor recovery rentals specifically, plus your newly added ESP offering through the Valiant acquisition. Can you help us understand the main advantages of Flowco's rental model for both customers as well as the company? And how do you see this rental versus sales mix evolving over the rest of the year and going forward? For our customers, they've got a very challenging business model, right? They've got to go find the hydrocarbons, drill for them, frack the wells, and then manage the production. They are really, really good at the subsurface analysis and the technical skills that go into finding and producing oil and gas. What they're not good at, by their own admission, is running surface equipment to help make all that a reality. The business has evolved over the decades into a rental model for things that need to be maintained and moved around. Within our business, we have over 5,000 pieces of surface equipment that every day are helping maximize production on site for an oil and gas company. That's our rental fleet. It's a mixture of high-pressure gas lift, conventional gas lift, and also within our rental line item of revenue on our GAAP financials, we have our vapor recovery business. That's what's growing most aggressively is our investment in each of those three categories. The newly added ESP product line, interestingly, has a little bit of both rental and sales revenue. We respond to our customer's demand and look at maintaining that rental equipment to the best possibility. We win business based on the service quality that we provide, the mechanical uptime of the rental items that we have on site, and we're with them for the life of the well as the wells mature. That's helpful. Flowco has really highlighted continued investment alongside these customers' activity increases in 1Q 2026, and we've seen Flowco report investing $26 million of growth capital specifically, primarily to expand this rental fleet across surface equipment and vapor recovery, right? What is the capital deployment strategy for further rental fleet expansion, and how do you manage lead times and your supply chain? Sorry, I'm going to go back to page eight. If you look at our rental opportunities, it's in the high-pressure gas lift business, the ESP, and conventional gas lift, as we said. The rates of return on those are well north of our cost of capital, okay? Without getting into specifics, without giving away a little bit of what makes us truly unique, we have a really kind of hard and fast 20%-25% minimum ROCE expectation before we deploy $1 of growth capital. Some of our high-returning opportunities are well into the 40s. You compare that to other oil field service companies that don't enjoy the contract cover that we do, don't enjoy just the visibility of the free cash flow stream that we do, and I'd say we're sitting in a pretty good spot. I'd say the vast bulk of our growth capital for this year, and I would expect it to be somewhere in that $80 million-$100 million range for the year, is going to be in those three key areas, with vapor recovery being a number four as well. We constantly look at where to deploy capital. We have a vertically integrated manufacturing model, so we make all of our own stuff, which is, I think, a competitive advantage. We have about a six-month lead time if we want to build new kits. If a customer asks today for any kind of additional rental expansion of size, it'd be about six months. That compares very favorably to some of our brethren in other sectors of the oil field that are competing for engine availability, for instance, from the likes of Caterpillar, and they may be three or four years out, right? With our supply chain, with our vertically integrated model, we can respond much more favorably to customer demand. Great. Turning to Production Solutions specifically, Flowco reported first quarter segment revenue increasing 10% sequentially, adjusted EBITDA rising to $61 million, and this was driven by strong growth in surface equipment and contribution from Valiant, of course. The company has noted Valiant is now reflected within downhole components as Flowco's ESP offering. How has the addition of Valiant's ESP offering changed your approach to production optimization and customer engagement? If you could help us understand the early integration wins of this and how quickly you expect to capture cross-selling opportunities, especially between Valiant and the legacy model that Flowco offered. Yeah, the punchline is it's going great. What did we do, right? We truly took a big step to round out the product portfolio we can offer our clients. We now can go to an oil company and say, "Mr. Customer, we have both of the preferred early forms of artificial lift. In our product portfolio. We want to be a solutions provider to you. We've done the analysis on your expected production from this next pad that you're going to turn in line. We think that this is a high-pressure gas lift application. Mr. Customer, if you disagree with that technical analysis and would like to put an ESP in the well, we've got that too". We can truly be a solutions provider now, which is a big difference from them being just another product vendor. That's where it starts, it doesn't end there because the well will decline and that production technique will stop being the right technique as the well declines. When you get into about year two or three, the first early form of lift needs to be switched out to something else. That's where I think the true revenue synergies from the Valiant acquisition are going to be realized because we lead the market in conventional gas lift and plunger lift. These are the two most widely deployed techniques when a well comes off either high-pressure gas lift or ESP. Again, we can go into that customer preemptively, proactively before the lift solution needs to be switched out and give them a proposal for the well handover. In the North American market, it's very competitive, the customer's not just going to say okay. They're going to make sure that we're offering them a fair price. They're going to make sure that there's not a better mousetrap out there. Nine times out of 10, particularly in this day and age, the customer is going to hit the easy button and say, sounds great. Go ahead and change it over. Apologies. That's okay. That's the real benefit we see from this first strategic acquisition of Valiant. We think that that's going to bear a lot of fruit over the coming years. Just specifically, we did put out some guidance when we bought Valiant. Very pleased to say we are on track to ahead of plan on what we conveyed to the Street. I'm very optimistic about the rest of the year having more opportunities to realize additional revenue synergies there. That's great to hear. I think giving an equal run for its money, you have a very unique offering with Natural Gas Technologies. As part of this segment, for more of our generalist investors in the room, we've seen Flowco emphasize VRUs as both an emissions and economic solution, right? Capturing gas that might otherwise be vented or flared and monetizing it. Across the segment, you've reported consistent revenue and in-line EBITDA. You're only expecting more growth as you go ahead. The company attributed performance to growth in vapor recovery rental revenue and increased natural gas systems. Heading into 2Q and the rest of the year, what are the main drivers of VRU demand? The VRU business is great. If you think about it, when an oil well is produced, the fluid that comes out of the ground goes into a tank battery. The tank battery is there to allow the fluid that comes out of the ground to settle to a point where it can be moved to market. As it settles, as it comes out of the ground at a deep pressured situation into atmospheric pressure and sort of ambient temperature, you'll have certain parts of the hydrocarbon chain turn from liquid to gas. Historically, these would be flared. Right? Everybody has seen on TV or in the movies the big flare stack that is there to get rid of the harmful and dangerous methane emissions. Well, you're burning free cash flow if you're an oil company. What has happened over the years, particularly in the Permian, as wells have become gassier, you have pipeline infrastructure that is built to move gas to market. Right? In the Permian, it's an oil basin, but it has massive amounts of associated gas. The gas infrastructure has now caught up to a point where every new pad that is being designed, in the Permian basin in particular, has a VRU application specified into the design of the pad. We see this continued demand for additional VRUs as more pads in the Permian get built to handle not just the oil production, but now increasingly large amounts of associated gas production. One important point there that we get a lot of questions about from investors is, okay, natural gas pricing is terrible in the Permian. Sometimes it turns negative. Well, yes, that's true. Doesn't your VRU application become uneconomic at low gas prices? The answer to that is no, definitively no. Why is that? We are not just capturing methane. Methane may trade at zero at Waha, but guess what else comes out in the vapor recovery application? You've got butane, pentane, propane, the heavier ends of the natural gas stream that are tied to oil prices. What we like to describe, given the typical composition of gas in the Permian, $2 Henry Hub zero at Waha is $10 equivalent to a customer's bottom line, and that's because of the NGL value that comes out of the VRU application. We don't see an end in sight for the vapor recovery demand. We lead the market there with a roughly 50% market share. We've got some great technology around our systems that make us a premium provider in that space, and I'm thrilled with the outlook there. That's very helpful. Speaking of the Permian, could you elaborate further on the current adoption of VRUs in other basins, including the Permian as well, and what is that runway for adoption going forward? The EPA actually puts a statistic out that, based on public data, the percentage of pads in every basin that have vapor recovery deployed. I'm super proud of the industry and the Permian in particular. The adoption rate, if you look at every pad in the Permian, roughly half the pads have VRU on them. That's been the fastest-growing adopter of VRU is the Permian. Other basins are lagging, not because the systems don't work there. It's because the gas infrastructure hasn't caught up to do anything with the gas after you capture it. Take the Bakken, for instance. You still see large amounts of flaring activity in the Bakken, and that's because there just isn't the gas takeaway capacity to handle the associated gas that comes out of that basin. We are really proud to have led the way in the DJ Basin, which is not one that people talk about much. Colorado has some of the strictest environmental rules in the country. We worked hand-in-hand with government officials in Colorado to make sure that they understood the value of our vapor recovery systems. We are thrilled that the DJ represents our second-largest footprint of vapor recovery. They've invested in the gas takeaway capacity. They've invested in the environmental regulations that drive a lot of the decision-making in that basin in particular. That's an additional tailwind for us. Super helpful color. I'll turn it over to Jason to quickly cover the capital allocation strategies. It looks like Flowco's sort of hitting on different cylinders across the two segments. You have the value and integration. We've touched upon a little bit about growth CapEx, invested $26 million in 1Q for reference, full year outlook of $115 million for the legacy business and $20 million-$25 million for the incremental Valiant CapEx. There's a lot of things going on in terms of deleveraging, growth investments, M&A. How do you think about balancing all of that as well as capital returns potentially going into 2026 and 2027? Our M&A pipeline is robust. We've been very clear with the market that we want to continue to round out the product portfolio, look at adjacent product technology offerings that make sense with what we currently do. What else do our customers rely on for production optimization, and how can we integrate it with what we currently have? We've got a very active dialogue going across a number of potential opportunities inorganically. We balance that with our organic growth story, which is very intact. In fact, it's getting better. Between high-pressure gas lift adoption rates increasing, the ability to deploy additional growth capital in ESP, and the ability to build more conventional gas lift systems as well as vapor recovery systems, I think the ability to continue to invest $100 million-$125 million of growth capital organically is very achievable this year and certainly as we move into a more constructive environment next year. That's exciting. We expect to pay down roughly half of our debt balance by the end of the year, assuming no additional M&A, attractive M&A gets across the line. That'll get us down to around a half a turn of leverage. That's very manageable on a business such as ours with visible levels of free cash flow coming from our rental fleet. Yet we did execute on an opportunistic buyback of our stock tail end of last year and early this year, whenever that got to a range that made sense for us. We are going to continue to commit to an appropriately levered balance sheet and be very good stewards of capital across both organic and inorganic opportunities. May I ask if some of that M&A opportunity or maybe some of the value and synergies that you're looking to get, what are some of the international expansion addressable markets that you're thinking about, or is the immediate near-term focus squarely on North America right now? There's a lot to do in North America, but as you point out, Jason, there's a big world out there, and we are looking to help our customers with international shale development because that's what we feel like we're really good at, is managing production from unconventional resources. Where do we see applicability there? Certainly Argentina, where the Vaca Muerta has gone beyond a science project into a true productive basin. The Middle East is beginning their shale expansion, and we've got very specific strategies across the GCC. One that's not in the unconventional area, but I wouldn't sleep on, is Venezuela. You've got a market there that is different today than it was a year ago. In fact, today, and our expectation moving into next year in particular, it's going to look a lot more like what it did pre-Chavez. The Venezuelan market at one point was a very attractive market for artificial lift technology deployment. We happen to have a lot of Venezuelans on staff. We're very excited about hopefully getting back down there. Closer to home, Canada. The Montney has become economic in a nice way. Some other basins up there are showing promise, so we're hopeful for some Canadian opportunities as well. Hopefully. I don't know if you've been to any World Cup games, but there's some soft football diplomacy that I'm sure you may be up to. Anyways, I digress. I do want to use our remaining time to see if there's any Q&A in the audience for Joe Bob. No? Not everybody at once, now. Yes, please. Thank you. You were talking about initially when customers are looking between ESPs and high-pressure gas lift, do they need to make that decision before the well starts producing? Can they get that wrong, and I guess what's the impact of that? Great question. Typically, in particular in the Permian, which is, by the way, that's about half of our business, as it also is about half of the nation's production. Typically, in the Permian, a company will do what they did last time. Okay, I'm turning a new pad online. It's a couple of miles away from the previous pad. What worked, what didn't work last time? Let's deploy the stuff that did and think about the stuff that didn't. No, we've gotten pretty good at being able to tell in advance what's going to be required on this next location. That's part of our planning process with our customers, is preparing. Are there ever surprises? Sure. Geology's complicated. Stuff goes wrong. You're surprised, sometimes to the upside, sometimes to the downside. Most of the time you know well in advance, we can plan our supply chain well in advance when you need to stock up for the next leg of growth for a customer. We have about a three, six-month visibility in some cases with some of our best customers as to what's going to be required. Wonderful. I think that's all the time.