Precision Drilling (PDS) 28 Oct 222022 Q3 Earnings call transcript

Good day and thank you for standing by. Welcome to the Precision Drilling Corporation 2022 Third Quarter Results Conference Call. I would now like to turn the conference over to sorry, Lavonne Zdunich, Director of Investor Relations. Please go ahead.

Thank you, operator. Drilling's earnings Precision webcast. call to everyone third conference quarter and Welcome on is Carey CEO; me call Ford, Neveu, CFO. Participating with and Kevin today's our President our and Carey reported operational an and outlook quarter morning, followed Kevin. update impressive from this with you Precision results Earlier which will commentary review by third comments, have prepared open call we we Once our to the will finished questions.

Please to are Some of risks see statements and which subject will other for a measures news regulatory and our statements comments financial more our uncertainties. risk non-IFRS today and release information include financial factors. will measures, of to refer and number filings forward-looking forward-looking on

As over a Canadian Carey, to in you. results express reminder, our financial indicated. dollars unless otherwise we

higher for expansion business our was compensation same reflect We adjusted our was a than year, drilling highlighting North representing while Taman. rates XXXX. pricing, million, from EBITDA, $XXX results a of business. how last key excluding activity operating into the reflect stock-based increasing of and approximately XX%. been quarter rising Thanks, and the in costs throughout of focus in and quarters. XX% translate improved alpha Precision's the period We've offerings and EBITDA revenue increase basis, EBITDA the American inherent the beginning leverage a These for adjusted Precision. steadily activity, margins several On third a QX continued of our Evergreen on -- of results and believe multi-quarter demonstration expanding an normalized corporate XXX% [indiscernible] million, million, was $XXX $XXX

assets the of Having Arctic's of QX of well already we realized quarter, end million Service the realize and expected the by and we in $X acquisition the million synergies, During expect substantially rental business. XXXX. related $X the integrated successfully to High completed

the in U.S. rates and period on to in the XX% Canada. in In increased while last and year, day business. to XX% the QX drilling same increased compared XX% the Canada U.S. U.S. activity in Moving XX% the

day a With Turnkey X,XXX QX project market repricing normalized margin Our USD Evergreen guidance. day. daily Technologies we was QX to margins average and USD normalized expect and operating USD and per Alpha approximately of average XX,XXX impact, in than we significantly In similar with to average in a IBC to XXXX. daily guidance increase quarter, QX $X,XXX absent was increase of day in margin QX per per operating X,XXX per $XX,XXX of our solutions, line of spot our sequential exceeded $X,XXX USD of in average day impact rigs X,XXX, X,XXX Canada, for to to USD margins the higher our

margin Our day and rates, revenue was performance strong labor recoveries. by Solutions Technologies cost and and increased higher Alpha supported Evergreen

approximately as completed similar in we in increases the QX XXXX. service by continue day a adjusted $XX,XXX was [indiscernible]. hourly rates. assets skilled in expect increase to QX, daily $X,XXX $XX and In to of margins segment, sequentially EBITDA sequential C&P project operating [Phonetic], while to revenue day million increased $X,XXX in of our XXX% our to For average and per of and a acquisition were increase due labor improved XX% in to High to of These part industry-wide high-quality well results impacted support the positively shortage hours assets pricing Arctic per

X.X%. of balance cash and on with $XX targets. $XXX our the million million are we available XXXX by of We remain $XXX $XX letters over this excluding Moving debt this credit of debt the and year short-term ended on and with to track achieve to liquidity, million committed cost and sheet of reducing target We between the balance a sheet. quarter of to and is million both firmly long-term XXXX average

rig on the of upgrades, be level to we we adjusted To earlier net a pacing our the million to from capital decline X.Xx achieve year certain budget below year into and our further EBITDA below expect are leverage now to deliver before and expected. share-based expense pipe expect compensation Xx much We of increasing than to us end debt XXXX, by XX to which our drill $XXX commitments, customer-backed during $XXX this have XXXX million. over to

reminder, of a of of our payback on will capital. for As and the above upgrades, we rates cash our require cost well term contract within return cash full the

$XXX expected share-based to Cash expected to approximately are $XX tax over is on expense. $XX concludes effective XXXX. call be to taxes now is approximately the Moving expected for to my for to to turn Kevin. is That compensation be year. expected million to rate our million negative guidance Depreciation interest million. Cash I'll for before be year. SG&A is remain the low expected and the slightly be comments. expense

to Carey on you, our start in on I'm Carey continues focusing have by contract the more award. profitability. line we to service Kuwaiti every later. recapping is afternoon. but every and benchmark next Thank performance in and a I'll Well, thrilled to improve. as good target returned that explained, are on key return is business recent And capital strong especially region our

their rig with very in over very as looks the been rigs stressed X that of Triple X,XXX-horsepower all contract rigs in under awarded work perseverance mid-XXXX. of by count I up operating revenue these reach several international margin thank our to X like reactivation terms. are the rigs and have Arabia, I that recent successful rigs X to be quarters. profile will on pleased contracts rig. X X-year for include team. our and idle North Super are American bid bringing lot Saudi hard with our the more Kuwait a to international renewals rigs, you We which want large active X process remind Coupled our Kuwaiti

more look other the idle for remaining to our region. opportunities continue in activate good We rigs X to of

an And latter on our and flow visibility with financial the now Precision's is mentioned, cash the its contributor international service business Our firm decade. and profile up well own now on through as stable meaningful Carey following this of of recent have and Precision's job at well a just acquisition acquisition, performance to focus synergies They're part the Tom done to continue achieving business expected will also the his perform foreseeable and service hand. business the and plan, their excellent well the believe I ahead keeping on for of is team integrating strong. future. while

hit short-term customer expect this as budgets Now activity. in mid-December, wind moderation down year we and we later holiday the a season in

winter customer at [indiscernible] those However, XXXX the season year full to exceed will demand staff indicated ability and through likely bookings for rigs.

recently showcasing of of analysts competitive with Precision's highlighted training I new our is our Super Now drilling an for a coupled reputation our where equipped creates employee advantage. training and rig. hosted new Alpha this group X capabilities We think our where capabilities Training area recruiting and a including is we recruiting meaningful

may We who significant teams also any across task. tour triathlete attended those for I'm top I excluded were and the our the way, for career this services Precision accepting of expecting to substance teams that able accruing is of very well group the view a to recruiting came pass change, introduced believe that our with on we're and high based the you attend able controlled our the of acquisition you for you field that applications we're challenge positioned sure the the a to By on Center. be screening. away SQ well trained for but assuming tell industry training winter confidence challenge very quality recruiting well rigs. all is up the drilling deploy I'm OFS to

our strong is quarters, for we've Canadian been as running very peak rigs winter this have XX market expected, earlier saying the for exceeds year. several as drilling from Today, we Now Precision. which,

Our fully booked utilization Super Triple the fleet should coming XXX% winter is have QX. during for and

is And of will we U.S. have in you that drilling to and under a During our from on gas now and long-term yard for location that Big Canada. undergoing redeployed X the focused seen those an operator on [indiscernible] attended ST-XXXX third That contract quarter, recertifications. oil in rig LNG. the another our rig

for underway utilized drilling in for LNG clearly, next Triple several fully fleet. and activity will years increase demand Super Precision's the already So is

operating with availability are Canada access increasingly customers running common, to the by Super secure less than and risk rigs rigs are our and super value the for conventional take-or-pay rather is Triple and contracts work oil term of which heavy activity risk our those alone use and With their looking rig, close for XXXX That next strong rig customers. we long-term commitment. relationship year. firm income weaker into and rig opportunity, commodity high all steady the with utilization firm continued driving are schedule -- dollar, While take-or-pay benefit customer rigs locking pricing in a level and traditional in to Besides growth the a demand substantial accelerating, single to achieving the expect the highest contracts Clearwater a primary access since prices company customer This no guaranteed stabilizes agreement reposition. crew Canadian of has contract with retention. factor the oil is recruitment

Based contributing to customer expect Canadian revenues including activity during new are days likely Our XX and approach Billing for approached levels expectations, on Canadian to peak the market battery rigs. products for we the and activity products, lighting outlook our quarter gaining see systems, and monitoring wide appeal. systems is fuel activity are drilling winter EverGreen exceed The meaningfully X,XXX apps strong. and EverGreen margins. third

guidance confidence is firm. in these margin With high demand our levels, our

to Now U.S. the turning

count rig to grow AlphaAutomation lower-performing While our to Super industry particularly rigs our have activate rig our look look higher displace continues precisions to and Triples moderated, additions customers with services.

half year. this of and There's be Triple rates trend in We to our about first day. current per XXXX a the to $XX,XXX fleet XXs next with upper the continue through of lot Super approaching fully during talk utilized expect

carte systems While rates I range. with in EverGreen pressure rigs above a we products such point we our at AlphaAutomation -- la out and that all apps, managed with drilling Alpha would as well agree have that several add-ons that

to we quarter Based the book, market In of and contract the our repriced forward we confidence in we Triple our a margins rigs to XX similar of XX utilization to quarter, Super and in rigs the During next XX over fourth a on quarter, pace expect the degree for current at year. interest first the current rates. guidance reprice our customer the U.S. see, have third

our XXXX, Alpha plan. that of and super-spec is outpacing installations on our AlphaAutomation mentioned customer fleet a your we're release year in schedule press proposition of our ahead expectations. early is we The Now for kind value compelling ahead by almost full

become installing drillers. kits training but our technology training ops Alpha very new to team team the job technology is our drillers also remote for more shadowed great deployment supporting been importantly, Our and Alpha and has alpha our drillers, however, busy they're doing to

their Alpha typically plan. With whole crew and highly repetitive manual customer's Everybody and overall love mundane all how Now they and improves Alpha, frees our drilling leave Alpha execution drilling. able automation they're the substantially tasks better of the Alpha the in wins. up the performance, from operation. oversee the well drillers safety the to drilling them perform crew

back on Canada I all concerning to cost our services OFS pricing So for and inflation and struggling a is I want value both rig the circle are the and rate across U.S. in moment. inflation customers with for And drilling them. know

So our are gains job play efficiency the different incredible factors customers to cost prior are which our understand we our sales drivers, into help cycles. X our today. come today's day value and driving When team's rates, considering the delivering than investments must capital

the cost Precision's and rig maintenance to pace of have more inflationary than per day. to accelerated labor and higher all, cost of First has risen in supply on by a factors, increased due the today. we equipment wear driven But inflation inflation the $X,XXX with operate addition drilling to

the are over the unlikely. requires more scope steel $XX the walking second significant rig equipment rig. likely mud highly impact capital but Precision and by factor requirements a complex increased build increase equipment more as on equipment, supply to is for in substantial advanced and maintenance. These cleaning available systems, replacement such in mud inflation potential as also or the cost have is cost for operating involved generators, rigs. the equipment, that's million pumps, other $XX only additional which is million components super-spec These XXXX's chain upgrades upgrades investments The the the would scope still if build rig cost new today's with rig

The that create is efficiency third these consider we efficiency. upgraded to and value deliver gains the factor through the rigs

to the the at for peak compare been the day then Precision's efficiency which fleet, today, have XX% drilling are today In U.S., XXXX that doubled wells drilling back look results rig compared you faster through In overall startling. across would when productivity rates compared XXXX. XXXX. has to than If more prior Canada, we're

capital -- those equipment, automation, we've mud improved crude racking a driven Now, pump the capabilities, driven been drilling and mud drilling, the digital pad capabilities. walking in talked change upgrades massive efficiency pipe gains about, have have by and these optimization drilling generating [indiscernible] digital systems, capacity, the crew capabilities performance. capacity, The step

while fair of cost up value it's and conclude from value day and our substantially better. of the has saying provide been profitability. lows several I've to never return the So On crews pressing and technology that aid has to upwards rates to our that our been been well the XXXX, we was increased Precision's customers are for quarters rigs, team pricing that sales to tasked with rates in the note,

continue team. we improve return sales we taken Canadian So still I our need Yet do. that need to path teams go. investment to to of but to a still ways a and work, great progress short, In our U.S. rate good shout-out results keep work to we reasonable it our challenge. please give have up. on on as who've a Thanks, achieve on making We we're to team but to that and have drive

Regarding reaffirmed Precision's debt our improving our our will cost reduction X operating operational we plan our track. digital to mentioned achieve leverage. serve I all goal. on reflect strategic earlier. margins our EverGreen growth strict also are and And controls market our We've and demonstrate priorities,

The you. for thank PD up, notes, our shareholders sincerely the shout our like a all to to producing to results your back of call Thank gave of now and you're want support. their my to our for work, hard focus So questions. your you And early customers thank year. of great I I'd turn a during for wrap the to continued operator I'll I prepared groups. team, few rest your the this PD and

[Operator MacNeil from Instructions] comes Securities. with Our first TD Aaron question

QX there’s your it and rig upgrades. on like looks disclosures, Based QX decremental

upgrades from in words, other to in XXXX. going rig XX So XX

there. I’m are the about of many already post How thinking those an many just How in outlook So of just you’re this incremental and rigs activity working were context upgrade? working and your active those rig current I how already incremental rig count an your of to driving XX many is guess already at upgrades, would upgrade rig. today? I’m be like add-on And to really what those of doing

of pump, now day were that Well, question, on the I upgrades it's I complex into generator tell were these additions addition. rig with can details have stepping a by that very actually a third rig. rates Aaron. don't that fourth higher number and they're rigs you much working

now QX. of of X capability a and So that the think, the that added, additions be with or about class those we've up additional will to I between reaching probably of higher I upgrade. into would upgrades rate stepping the X/X think X rig probably something day those, be like on of X/X rig and just And much

spend rig to that Okay. is depends upgrade trying that I you That’s capital but getting going the and on say perfect. capital might or what look contemplate? maybe many might Carey a And pulse your can follow but preliminary up. how everything And activity assumptions get then right and it give a Maintenance glimpse know of just what obviously XXXX? us And growth dependent you’re to contract in on there. upgrades like

Yes.

So is separate completely maintenance. upgrade capital from

of have the So versus $X,XXX We're a has $X,XXX, I trended gotten more we things to expensive a few a closer day can kind It tell maintenance. day. that trending you per day a bit $X,XXX historically about at.

function inflation that's of So a largely.

lead thing purchase earlier are -- that to you I'll plan those. we're is other the a having The tell long items lot

those -- for items been months. and lead advanced have the on to doing past be X year, might items purchases we've X time So the pipe we drill

purchases. U.S. point weaker is of maintenance other it's go our Canadian that expenditures, bulk higher. that out those in the And the you to And dollar I'll just the more when or they're item upgrade, So, we bit Canadian majority are number of and doing capital dollars. convert a makes whether purchased

still being trend all that with maintenance will activity. said, with So along

XX% think the a certain are than what if be than we XX% year this higher -- XXXX. your a baseline then next capital activity percentage say, higher or that's we're had So for anticipating would in what maintenance increases I year, in expectations

on the side? upgrade And

we to see this upgrade upgrades On think type the of would same year. as I side, did we'll the continue we --

adding of to at EverGreen that for beyond will out complete that demand AC of related SCR which $XX million, So be run million, $X the that will upgrade. of pursuing million we've said conversion an to capacity we've solutions be some the rig, increasing And upgrades adding going the have historically million to been but the level automation, to we rig is about point. to kind those $X upgrades $X

So to that and a X-year the within upgrade. term need payback we contract before undertake day to a rate cash-on-cash going want likely $XX,XXX because contract, we we're approaching see

when customers So upgrades, those in quite pursue we'll for the yet. and but rigs super-spec be out are the not sold industry start it looking ready we're there types to of

guess, C&P Okay, Kevin, this one you maybe this if the Arctic sneak I in, more tuck-in think And I like for metrics? of you to, if acquisition. to more very you rationale could. sort for And could acquisitions business the does pursue The a which just sort out do proves similar at And you quickly quarter transact High C&P? strong of had even I'll perfect. wanted embolden

has us and thought they So and we I if Aaron, the an is achieve. can important proven, -- synergies quickly -- and integrate this think efficiently deal could team fleet we the been for a achieve

backlog years the long. like looks now. forward seeing was concept looks it it market we're years for strong. as of several So and looking that work there's And still a quite of going kind right work on now The lot of of several proof delayed

right market now. service -- think business So the it still too is I to And the this has fractured. well legs

us there's we'd we're won't a do if an consolidation, So do And deal. seller be are opportunity high, expectations too interested to going if but overpay. we for further not to the

Our next question Capital comes Markets. from Waqar Syed with ATB

the Could press Where what Middle you that, the East release, of you provide in you’re and in middle more next by looking at additional the tenders are year. be could X rigs active Kevin, mentioned would rigs some color? be least, the maybe at?

Sure.

relevant that rigs the X,XXX-horsepower we and I'd the right are idle would X rigs idle referenced contracted rig in rig rig. to rig servicing. The the be it's the a now is we more region. -- be ones in the but we drilling X for most have that So converted well That configured could super-spec a rig which AC have Kuwait easily to say

So I of activation, side early somewhere probably like Arabia, most in candidate think that's the Saudi same somewhere our Arabian Gulf, likely that for Kuwait, that.

in X opportunities bid rigs think rig acted in more to that in Georgia we have We I continue the of X those the end rigs have the region. -- rig by in Saudi, I into would Kurdistan, don't all we'll X year. that those to multiple a of -- the think we opportunities those. And rigs. chance or on on we'll do that bids in good But bid have locations X there's now right for I see us competitively active allow X

first was tender Kuwaiti gone to tender. the actually been So to bid the award first involved the in that's we've gone from one -- has

are hanging still the kind of All open. tenders of

be that delay because of that of activate rigs to is the that middle Is Kuwait. when reason X X and that months? now the what running of you in like would the rig? the require to time between stipulates? up And Or tender and next for Okay. these year What’s

Well, their activation. into of schedule that They it's And they bid this schedule had had their operations project we a tender. put for to out they that multi-rig exactly schedules. for according

early their that for tight They circle to be all into we have the to we'll recertification schedule, tied in their determined. have scheduling. quite their on we schedule be do There's But will be be bid up. following year. some bonus. on we're those that, rigs So some early rigs start requirements, There'll we'll next their ready no up seem once we'll that There later capital will schedule.

rigs Canada? U.S., in then to demand rigs. you have rigs the -- there may Okay. move you from XX-horsepower additional the on into is horsepower U.S. Are additional And

rigs crew. they to rigs The question. that year to agreement. We customers contracts. because a are pricing X,XXX that's out under those the contracts. QX. our them market of for firm encouraging are for still in And they for everybody. don't rigs typical good Canada Canadian going take-or-pay to up is need there customer. up want Great on for of how that's We're these It's with good rig horsepower short It's retain the if for rigs, lock the good play our few term not have know that We the all

high-performance rigs those I You stable If we're and to move entertain get contract have rig economics. another the can a the very up contract a of rig. successful, we at majority right up.

that I'll Waqar, AC is the -- rigs now. right add utilization just on Yes. approaching XX% our X,XXX are And remaining

as a in So market there well. is the U.S. for very strong rigs those

what the over And amortizing million of $X you was be reimbursement cost in would Okay. contract? And the that Carey, number? the the of mobilization embedded term

Right.

rig So and to move quarter. the X it million hit in the the third was took $ we roughly

So those the then the charging the And are Canadian rig recoup our of over cost. to cost the that day that increase of customer we're the going contract. life rate operating through we're in

from Stifel. comes question Cole with next Our Pereira

leading-edge would can rates the us where period? To just XXXX in have out maxed you remind start,

were the U.S. most kind Cole, the high XXs the to in $XX,XXX of -- a in to Canada, U.S., we dollars. day close rates Canada, saw go numbers rates but in in in same

just AC the readily super-spec How how and how rigs you on many SCR have Got available U.S. us refresh fleet? would can to be it. upgrade as you in And well, are rigs candidates. your many many more

Sure.

running XX year those line working, running. good said we sooner. are So comprised get next now I pretty mid XX And see of super-spec as by -- are a of of sight fleet our XX U.S. to was earlier, rigs right and or of those most

very in Canada, Carey, super-spec good -- XX range. They rigs another upgrade rigs? we XX are sort currently million of have In have USD rigs. candidates XX that We U.S. are price the that SCR for DC

XX.

And those they're and currently. up winter rigs for up fully of booked for super-spec contracted some multiple periods. the XX

Okay, great. That's helpful.

any about basis your line margins. that for of are sight occur of your are that Are business over I few you talking leading-edge generating reported rigs that some seeing could is there that, of the U.S. your And their And fleet yet? U.S. a peers a conceptually next in on quarters? XX% gross mean, blended

Cole, so I a and rigs job the think how difference more and value is provided a XXXX -- XXXX good between being with delivery. Kevin an equipment did there’s by lot There the the covering operating difference. cost

operating $X,XXX it’s So costs day XXXX a both probably was our in in $XX,XXX about back And $XX,XXX. It’s markets. difference. today, a about

to $XX,XXX as leading margin. a the basis, old to well. percentage the edge, I Kevin get upper need seeing So that rates to day into we needs at the are XXs. we just And be now that think cash $XX,XXX the get same covered On

fleet I in the this So of seeing field see given of we’ll how increases entire strong margin and QX getting of margin that have range, handful fundamentals Canada a shows industry we that that long think And and the U.S. guidance are QX terms in that stay significant rigs to range. we pretty both that the are XX% for but

the continued increases expect So expect they in commodity margins together, both in markets. prices hold the it we couldn’t in if

X the quarters usually the Cole, into sort And of fleet I takes It rates through to we in past. flow about for fleet [Phonetic] guided think averages.

next fundamentals And firm look mid-QX year. would the us period. of late certainly that that So push sort QX, through into

we thinking one just one about working should How capital And it. in be for quick me. more got QX? Okay,

flat of of this have a the should a working million We just big a so But $XX little depending higher reflective It’s winter revenue, relief we’ve about capital we the -- far and maybe bit the year. quite activity. did have working higher year. increase of had at when slowdown been on of very capital, happens end kind that’s

Keith with next Our MacKey RBC. from comes question

a wanted maybe of with on just in level Can available? that pick super-spec potentially the seeing Just you’re running and rigs that these rigs high a with amount talk from either may the inquiries are are seeing super-spec what or versus are of I SCR you’re are inquiries inquiry the up to from who they Canada look customers rigs to looking have rig? out existing grade mechanical start or you front, And to they the be replace about think importantly, running that now rigs you current U.S. customer

Yes.

we I and a thought first high XX, customer about and give all, in for get So XXs, higher guidance. count into and our based bit conversations get we would bookings the than last which in of XX% XX Canada, maybe indications activity would above for on I rig that's maybe be -- year have. QX that

stronger to super-spec I market which X the look means On rigs may front us customers push Canada, some push which X in short in QX. short -- or more think a work probably into the is then that probably QX into QX should give

one And further into room by pickup mean contracting our rigs, into we that We'll by have more lock see supports to QX increased and we if QX. strong see. that work in if even we -- that. up. So a bring rig that might Also customers, to

moves -- rig in a that get it super-spec, this the the count or an not to X by strong rigs. clearly and feel X rig trade be automatically new move discipline so is cycle will a rate up with could going it, like year pumps. a a in strong good some in rigs. gets little out. really adding think commodity have count. bit January, the And bit, with by few rigs capital before to does keep when little mud the fresh of I there's in has few still it's we've capability see out kind upgrade And added that how a with the But There up U.S., them. now super-spec the In we're trend up the in mud narrative which today rigs that's up that rigs, -- think get the pumps recovered. not we of see rigs a XXXX, new moves capital increase field Canada or pumps U.S. of I'd flattening X probably still had you peers say and they're is is It We little pumps out. on only for budget prices, operating So X I But likely probably rig goes has operators. a are decent replaced the into replaced industry-wide. decent the a happen. rig and healthy can plays a in rigs -- seem of capital will a our much of going -- being we that to bit, They It's adding

And Keith, to question. about increase we I'll talk answer other the just point of add rigs capabilities Yes. the and When the looking to one your performance. customers

We not performance and customer and rigs which the rigs, Precision AC deciding from taking SCR mechanical rig, competitors, switch to we're customers by Precision to seeing customers seeing improve make AC switch a a running the to are for rig. on

Canada industry always much always a a in it of more more little more We're a on short, QX into an to X it's see more Or bit than and shape that happening. about it. looks Canada have beyond. in rather, you of a more year-over-year seen Got of then flattened just trend amenable levels? have maybe bit out field. which we maybe way? X in being more getting of for ultimately on flattened the equipment of structure of Kevin, But margins with or that curve to rigs, about supply gets your like up to and the maybe of a and the do basis have -- times year circumstance activity being seems average super-spec little that and -- that question a comment, to bode It your of or the when during rather or breakup just that is the QX going year a as follow-up and rigs going the some more seen well of we've overall demand peak may where seasonality

changed can pad it’s losing super-spec was activity in fuel abundance running that was had is across enough road broad going E&P pad-walking maybe at XXXX, but when any been probably back, breakup. up strong all. the loading made mid-XXXXs a some time strong. now prices. you up going mud and around more to get for times without by in spring, That Keith, can load casing can fired up that bands keep I’d level things there’s likely and into keep say with the in always was you What’s rigs. And commodity companies rounded deep Level healthier dried we if rig load. of gas bring and and it We the and desire in XXXX, try this a

today. pad So which I’d rigs that see development-style We’ve drilling a loading. large say plays we commodity what is healthy really price environment with level into that got

[Operator John Instructions] comes question Daniel Partners. from next Our with Daniel Energy

time for I industry, not whole for if quarters, Kevin, just in. you the question both might same discussion go you what last a see on squeezing labor that those, back talking forth. me curious, was you of guess, a us you from across today. so side, ESG to numbers Thank Carey, frame, the big speak I’m side. topic question point or the And point during several was big also and buy the a just company challenges sell the

a think work. out-style for a investor meeting, better, of for virtually for call got a because been contracted crews comments little because stable and it's industry. really that comes have rigs my period general they've is know term buy-side with where question a that I contractors every long times. structured, I've time industry that huge say work not a particularly and used can up in labor manage in the Precision, -- a industry, of The number have drilling John, and to it's The attract challenged. the you sure, we issue I'd able And they

of to limit big same. the move So and I'd the but for we business group labor. on on easier buy business oil than us we But on and seen contractors, services to -- because that Even for peers been say stock a able have the the still limit done haven't our be or question most our side. to able of our business a we've most forward service nature labor our drilling remains the question And the a rigs to call challenge struggles other lot with. of a has deal it of been of had well because

investor, the is I’d it’s thinking On investor by now other raised energy that the some degree. if question also say an about security about ESP, to

fewer coming a raised balances it’s lot being more And So by into the discussion. late. investors of

Yes. but able are that still interested that us things because seeing And doing tell we're add. invest touch just want securities few the would investors are larger of It John, communicate who in They to have they ESG. we're to I our ESG very investors seems ESG. like the in not us institutional

making real on great we done activity -- when companies a a be trying growth, guys it the [indiscernible], all? Right. Precision. that the industry back it shown -- from year doesn't headwind a characterize that. mean not could it mean question -- to labor -- comments again, activity you of just on. seem make just at has I going about growth demand I an couple and job understand labor. I'm to quick But would as And hear up obvious But next of and I really sure have limits headwind deploying I you that a

stop associated a operates from you The and drilling of pretty drilling set kind huge -- want And think no. really cost, rigs. up the rig theory. common. start-stop is my drilling here’s there’s the switching I Once because huge don’t or drilling with term actually a costs rig factory further it you running, a industrialized to get side,

drilling rest plan services. the tend can’t let of which build they So get at their if is to operations why times, the our customers they’ll up DUCs

incentivized well are complete kind rig they the of to customers independent rest can or running the of not. keep of the the So whether

call this would for not to Lavonne questions over time. showing the And I'm to turn remarks. further at back like I any closing

Thank day. everyone joining up That a for quarter Have you. us Precision our and call. And to I’d today. interest third Bye. like great in conference wraps thank your

this presentation. and conclude does today's Ladies gentlemen,

wonderful now a day. have disconnect may You and