Expro N : JP Morgan Energy, Power, Renewables & Mining Conference Presentation

Published: 2025-06-24 07:27:09 ET XPRO

Published on 06/24/2025 at 07:27

Energy, Power, and Renewables & Mining Conference

June 24, 2025 | New York, NY NYSE: XPRO

Outlook for Energy Services and Reasons to Own Expro

Outlook Expro Investment Thesis

While concerns related to the immediate and ultimate impacts of tariffs has eased, announced and expected increases OPEC+ oil production (and associated liquids from new gas projects) likely results in a modestly oversupplied oil market into 2026

Lower prices in 2025-2026 (i.e., a near-term supply surplus) may lead to an earlier and lower peak for US shale production (long-term supply deficit)

Confidence remains around 2025 work programs; however, non-committed E&A and new FID approvals may be delayed pending further clarity on project economics

Assuming a Brent range of $55-$65/bbl for 2025-2026 and $75-

$85/bbl thereafter, any pause in the sanctioning new long-cycle development projects should be short-lived and the international and offshore markets to which Expro is most levered should be relatively resilient

IOCs and NOCs generally behaving in a manner consistent with this assumption as demonstrated by orders of long lead time equipment (e.g., subsea x-trees)

More stable commodity prices should drive increased operator investment and activity, particularly in the lower-cost, carbon-advantaged deepwater barrels, with project approvals driving customer capital spending (~70% of Expro revenue) for 3-5 years

Market leading positions in deepwater well construction, subsea well access and well flow management

Organic investments and smart, synergies-focused M&A to increase scale, expand margins, and generate sustainable free cash flow

With resumption of revenue growth, company has a clear path to realizing medium-term financial targets including $2bn of revenue, 25% Adjusted EBITDA margin and 10% free cash flow margin

Strong financial profile provides strategic and financial optionality to accelerate growth and return capital to shareholders

Current valuation implies compelling risk/reward dynamic for investors mare focused on fundamentals than near-term, macro-driven trading catalysts

Unlike the 2014-2015 period, the current period of potential weakness is not coming at the end of a structural bull market for traditional energy. We see the Trump Trade War as more like the shocks of COVID and the [global financial crisis]…In those prior episodes, [energy] sector weakness reversed as soon as the broader macro indicators turned positive. We continue to believe that 2025 will be year five of a structurally better era that we see lasting at least until 2030.

- Veriten (Arjun Murti)

Get to Know XPRO

International

Offshore

$1,720m

Market Capitalization2

Asia Pacific

14%

Middle East North Africa

21%

BY REGION

~60 Countries

North & Latin America

33%

Europe & Sub- Saharan Africa

32%

Well Intervention & Integrity

16%

Subsea Well Access

17%

Well Construction

BY 34%

PRODUCT LINE

Well Management 66%

Well Flow Management

33%

Strong cash flow outlook

Zero net-debt balance sheet

with significant available liquidity

Enterprise Value3

SAFETY & SERVICE QUALITY LEADER

Wall Street Estimates

$337m4

2025E Adjusted EBITDA

Implied EV/2025E EBITDA

2024 customer service, quality, and customer job performance rating

NYSE: XPRO

Headquartered in Houston, Texas

Note: Certain totals may not add due to use of rounded numbers.

Trailing twelve months revenue is based on the trailing twelve months for the quarter ended 3/31/25.

Market capitalization based on approximately 116 million total shares outstanding and an XPRO price per share of ~$9.00. 2

Based on $121 million interest-bearing debt and $178 million cash, including restricted cash as of 3/31/25.

Average 2025 EBITDA estimates from Barclays, Goldman Sachs, JP Morgan, and Wells Fargo.

Investments Focused on Creating Value for Shareholders

LTM Revenue and LTM Adj. EBITDA Margin ($m) Tangible Capital Employed and LTM ROTC1 ($m)

Tangible Captal Employed

21%

15%

Expro Standalone

16% 16%

20% 21%

$1,720

LTM Return on Tangible Captal (ROTC) Expro Standalone

10%

14%

19%

$925

$625

$826

$712

Q1 21Q2 21Q3 21Q4 21Q1 22Q2 22Q3 22Q4 22Q1 23Q2 23Q3 23Q4 23Q1 24Q2 24Q3 24Q4 24Q1 25

Recent Acquisitions Adding product line adjacencies and geo-market scale

Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25

Note: The periods prior to Q4 2021 represents Expro standalone.

1) Return on Tangible Capital (ROTC) is Net Operating Profit After Taxes (NOPAT) divided by average Tangible Capital Employed. Tangible Capital Employed is the sum of net working capital, property plant &

equipment, and investments in joint ventures. 3

Disclaimer

Expro Group Holdings NV published this content on June 24, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on June 24, 2025 at 11:26 UTC.