What National Energy Services Reunited Corp. told the SEC could break it.

Approximately 99% of NESR's revenue in each of 2025, 2024 and 2023 was generated from operations in the Middle East and North Africa, leaving the business highly exposed to regional economic, political and military conditions, including the Israel-Iran conflict.

“During the years ended December 31, 2025, 2024, and 2023, approximately 99%, 99%, and 99%, respectively, of our revenue was generated from operations in the MENA region.”

Most of NESR's customers are national oil companies that dominate the petroleum industry in its countries of operation (with activity concentrated in Saudi Arabia and Kuwait), and all are in the energy industry — making the business more susceptible to regional budgetary and political conditions than diversified peers.

“Our operations and our primary customers are located in the MENA region and all are in the energy industry. Most of our customers are national oil companies (“NOCs”). Given the importance of NOCs, which dominate the petroleum industry in our countries of operation, our business is more susceptible to regional economic, budgetary and political conditions than other, more geographically diversified competitors.”

Operating across MENA (including near Iran), NESR is subject to U.S., UK and EU sanctions and export-control regimes (OFAC SDN lists, trade controls) that restrict dealings with certain persons and jurisdictions and could impose additional compliance costs or penalties.

“Our operations in the Middle East and other countries could require us to incur additional costs in order to comply with U.S., United Kingdom (“UK”) and European Union (“EU”) sanctions-related regulations restricting or prohibiting activities with certain individuals and entities or in certain jurisdictions.”

Demand for NESR's oilfield services depends on oil and natural gas prices, which are highly volatile (Brent ranged $59.93–$83.48 in 2025); a prolonged price reduction could depress exploration, development and production activity and materially hurt results.

“A prolonged reduction in oil and natural gas prices could lead to depressed levels of exploration, development, and production activity and could have a material adverse effect on our business, results of operations and financial condition.”