Forum Energy (FET) 3 May 242024 Q1 Earnings call transcript

Good morning, ladies and gentlemen, and welcome to the Forum Energy Technologies First Quarter 2024 Earnings Conference Call. My name is Gigi, and I'll be your coordinator for today's call. [Operator Instructions] This conference call is being recorded for replay purposes and will be available on the company's website. I will now turn the conference over to Rob Kukla, Director of Investor Relations. Please proceed, sir.

Gigi. you, Thank welcome call. and first XXXX quarter Good to conference earnings morning, FET's With President Lux, Officer; Neal me are today our Williams, Chief and our and Financial Officer. Lyle Executive Chief is our release, issued our we Yesterday, and it website. available earnings on on Please safe afforded harbor the note law. are federal protections we that relying by Form today disclosed that affect and context other of XX-K factors contain that than in considered historical are cautioned may be the Listeners information.These business, in those including our FET's our remarks filings. SEC information remarks should other all

management's may Finally, statements measures. include non-GAAP financial

these For a you reconciliation our to earnings of measures, may refer release.

During call noted, EBITDA refer all over to call, will to to otherwise first statements are XXXX.I unless XXXX Neal. quarter And today's related comparisons fourth all the adjusted turn to quarter EBITDA. now

we and Variperm like transformative, Thank good the last we When scale. everyone. morning, used announced year, Rob, accretive words late acquisition you, and

with midpoint sales differentiated am margins. $XX FET's management, we with importantly, in range quarter, cost realized basis to and the with value million, of confident by our operating and promises we range. improving am delivered XX% growth pleased points.The I within our and EBITDA mid-teens the our came goal adds above revenue products our EBITDA mix Variperm revenue favorable with margin continued XXX our teams EBITDA the of I Sequentially, on financial the EBITDA at EBITDA margins X% our XX% achieve This both results. with increased guidance we leverage. achieved will and

book-to-bill around we and this occasionally product project-based capital-intensive and With we expected.However, first was portfolio XXX% approximately our our awards is quarter of receive exceed bookings and ratio the generally a from our XXX%. As consumable when expected, sales activity-based businesses. being level large ratio rebounded XX% in will book-to-bill

prices, depressed counts expected during barrel $XX were flat. with count gas the oil quarter, frac around rig U.S. and prices per As and

intervention product stimulation line. in pickup in see did we demand However, and our a

quality our nice systems. uptick in Our for a wireline demand cable greaseless premium saw business

did Although see were the global briefly we the in softness quarter. slow flat, markets results discuss customers budgets.Let Variperm operational seasonal international some release me to rig count was and its this essentially as

going First off, very integration Variperm of is well. the

of outlined broadening the Downhole done This their leaders forecasted and an to will year, the sales we are for This such is continue year, progress broadens for task, never results this operating run Downhole offerings.The together. systems, into teams short softer working and seasonal revenue of product and traditional historical This enhances addressable is easy through revenue total Artificial Pipeline we the Despite Earlier softer in happen And prior like but a our company. did acquisition. everyone line have these revenue, importantly, near-term half run the views rate job efficiently effectively of involved our to I with breakup.Variperm's synergies driven held FET's startup have base. headwinds. excellent publicly of Operationally, customer Trans timeframe. managed and and teams margins a Mountain this as the to thank and Canada financial from line steady. market results Our FET's which would should critical Lift expand working for expectations, as a and integrated Variperm traded acquisition Express FET's Variperm an collaboration in that generally they in Variperm together. successfully our and and making existing than very substantial our making quarter has first costs uncertainty due Canada business were first lower market great by

our on the higher roughly which global ahead, of back rig the material in realize as full results oil. year forecast, original with million the let $XXX with quarter half profitability cash prices turning Canada the are activity guidance me to in call was first operators $XX over we discuss the million.Before to Based flat, and growth count free to we year of EBITDA our $XXX XXXX stronger anticipate reaffirming and flow of $XX Looking change for oil market. million million and Lyle, no beat to sands to our their strategy

activity. market We XX% will XX% continue of to our portfolio our With tied in between revenue Variperm be and capture to activity. opportunities for should now

We existing relentless will increase efforts to commercial use brands markets. our share and our within trusted

will grow, itself. niche we we has differentiated truly As focus on FET markets where

over we current their competitors.This generate product will years creates Also, fields our This innovate combined for competitive a strength closely we FET margins well intellectual working further or entry of our proprietary who capture by more and our maintains is continue property barrier to market. command strong solutions, higher and many new allows developed is understand customers from people of customers' problems. favorable iterate total us improve and our addressable with a landscape to returns. with share This greater and market strong operation.This have and how its portfolio. solve newer commercialize better expanding Therefore, products can FET. know-how continuously to as our in separating develop and accomplished and We experts as to while

iron and great greaseless detail our cable quarter's of including examples, on Plus. FASTConnect wireline Pump our a the our call, I into last Saver manifold During roughneck, FRXXX system, went number system

the the foundation is years profitable and ahead. sustainable laying growth for in innovation Our

are. customers footprint and nimble to addition, region have We hubs.Our wherever products capital shipped activity within an not market and to us. strategically optimized specific located global where a they distribution asset-light In country our to growing. customers go where and be FET need manufacturing lead can pivot model We or solutions allows do to there. with we products We with just is our conditions spend changing supply our

achieve not rigs, fleets customers To quarter up and do this, with costs for more reduction and relevant. stages, [ drilling Their more quarter increased frac where our utilization rigs first take or pumping of up drive more doing with run service these being and financial wells. products second hours, between well less pushed to keep are now results customers to in on invest to must advantage greater safety, new and fleets more demands outlook. equipment. growing in to remain will XXXX to and drilling we FET's reduced full at for but are and with their details Lastly, increasing keep time are over ] our That's intensity.To FET's need a they going fleet call capabilities upgrade lot allow Lyle critical efficiencies.I'm turn more the operator efficiency, to

Lift drivers Thank reporting going the Downhole start the structure activity reporting Drilling Neal. I'm new Good segments everyone. and internal by morning, segments, segment the you, our mirrors discussing management serve. This the better markets, our reporting we with Artificial to rationale Completion aligns structure and and it segment. and and customers and for

example, product Completions historical revenues the For segment end line. in with Downhole while Artificial and users.We services and serves included X Drilling the with financial operators revenue will and E&P other oilfield product continue Lift Downhole focuses segment in our on the results lines Variperm's report customers, to

can make segments new a have offering, The understanding FET's FET reporting for story. simplify solutions new and investment We investors. broad which a challenge product

majority intervention deepwater many or of issue costs by mission-critical The their Drilling the drilling, Industry that measured segment. consumable this this equipment in We of new allowing the improve recast additional within installation quarterly X-K quarter's and segment and reduce the the provided me count have and the primarily operations. earnings their hydraulic information drilling, count we information.Let and stimulation the and our of of revenue. fracturing, first Drilling and and roughly subsea rig activity historical will by regarding XX-Q, increase in global The reporting to provided within segments release oilfield filing drives format. tubing includes FET in the segment and safety spread comprised service equipment products Form of Completions an falls largest financial supplemental frac one-third coiled supply and to The results. base share the lines. schedules efficiency, U.S. and showing results some represents service intervention them new quarter customer well Completion these well capital companies, includes segment segment the capital of After companies, world's XXXX is this product markets.We

the per Although over decade, the has rig of example, over quality last up capability to average in and improved.For footage Xx count XX last the U.S., years has Xx. rig is greatly rigs declined the the drilled

fleets and and recent quality side, ] hydraulic trend. Wells frac the of [ follows more stages gotten longer a years. than in with proppant fracturing have capability more On similar

not quarter, will Completions completed up and these almost of quarter, the invested customers and frac stop in coiled that completed lower have fleets first two greater per only Wells demand our X%, lower decreased years. the were operating number provides.In sales. the international Operators the are has Drilling The the not efficiencies, last possible over tubing gains that products XX for segment projects XX% is demand However, because here. and related and gains capital last equipment capabilities ROV primarily increased. to drilling revenue fleet FET

saw and in our in line. intervention demand we stimulation an increase During the quarter, product

witnessed year. customers the Our second on were in up pullback the the catching of half

Artificial oil Orders Davis-Lynch in oil sales The improving include In enhances of fact, Downhole million, $XXX were cables.Favorable existing facilitates at of other the XX%. XXX operators complexity and FET's Multilift customers' with our portfolio, ago, points our segment new well wireline Artificial Downhole much with from segment's growth up to margin those Artificial production. Canada are both refining.This Valve Downhole Equipment margins and U.S. FET well and well. Earlier, in the million XX%. lines, is XXX% almost pull-through as the also own average basis our by product average The users casing Variperm growth from of the processing Solutions the per the Downhole downstream Lift ratio expansion for wells wells had long revenue -- a Neal to product on to XX%, driven hardware count, were XX%, natural sequential customers Production almost products around and production and EBITDA transformational improvement Artificial Solutions and and and XXX greaseless and and primarily well and globe. with points mix Variperm's revenue Lift Artificial and Lift combining evident basis in revenue EBITDA the provides, improvement, record impact our Solutions a Downhole strategic XX%. is discussed possible well end the a the wells primarily that both process Xx premium in technologies and quarterly average the segment or and and on E&P in we of set up results.This segment on in to site as Compared decade resulting it drove financial This is rig Lift FET's surface. and $X investment U.S. of who segment's XX%, produce includes twice EBITDA book-to-bill gas the in Lift revenue by synergies per well

to the production down quarter. million, by The Orders the Casing as In declined. Processing and terms product and addition while results Variperm, in XXX% orders revenue book-to-bill long were X quarter fairway for we Artificial consolidated increase EBITDA was increased, Favorable Equipment revenue were sales EBITDA. from and contributions first guidance equipment.Our lead driven $XX Valves XX% of impact Variperm. in above mix from boosted an of segment of Equipment Lift time the secured improvements

quarter, and on where approved EBITDA budgets the and the have we customers markets revenue spending and U.S. international been executing second in their plans. are growth For expect

significant derived the to previous now more million impact the offset and our anticipate range the second million. weather, may in second impact quarter.With second by than range We to million increases $XX portion $XX count EBITDA to be Depending typically by rig this these activity on a our to quarter of from $XXX Canada, XX% breakup of results revenue could on Canadian from the of decrease in larger have causes However, in years. the quarter seasonal around Canadian revenue first a million breakup. $XXX

and few second the of anticipate modeling for amortization million, purposes costs expense of be million. are Here interest We expense depreciation for $XX corporate $X details a roughly and to $X quarter. million

two full and their pleased fuel flow working two free and free to to in flow Variperm our cash their of taxes turn first and that incentives me expectation results.We build first flow net Variperm our capital growth in $X because to past quarter of was context, we exceeded year working years, we of are the our Let this in The in especially property management. flow as Putting of roughly annual free the attention and with from guidance. quarter our attractive beginning $XX cash this payments the million line did year cash our EBITDA each and cash convert came the historical generating year as million cash negative plans. for made with quarter, capital to acquisition was trend. The expectation acquisition improvement flow.Variperm ability sources: first free

the experienced this working pro in two continue expect through was net contrast year. years. the roughly in for the performance to working flat Net We forma Variperm builds quarter-on-quarter capital prior the we capital acquisition to in

customer Our receipts while teams levels material inbound demand. meeting and managed inventory lowered

I'm to Variperm assume any solid for did our We taxes turns year to sorry, ability the We the increased $XX have our reminder, and the for cash in free -- for full our our cash guidance our EBITDA flow year inventory the $XX year.As achieving first full our to for push through flow million capital $X million.And million $XX to of related lower a the be flow reduction increases of second quarter, our and guidance. free free confidence quarter expect and drive inventory quarter will $XXX acquisition. primarily performance net second cash with interest CapEx free approximately outlook assumed to Therefore, guidance and other million million not cash in year. $XXX $XX less million; line we working full million, flow positive, payments, of of in year cash

about We questions shareholders. to have our investor returning address notes for cash and plans our to XXXX fielded

for plan has the case of base changed the announcement both Our acquisition November. last not since Variperm

expect first the flow, availability million.Between year. total cash guided senior year. revolving fashion, premium With X% matures $XXX ended the Let with have we and of a a facility secured retire to in time without XXXX quarters, of to no structure, the by beginning cash seller liquidity at XXXX we of August August specifics the flow our $XX our net We cash of remaining me our dividends. our penalty.In in to share cash are and million of at of mature utilize at with the notes notes XXXX under around review our pay a this retired of we million starting shareholders our In leverage end expect of XXXX the of this free These liquidity. the plan, hand in we all and capital quarter on with of expect return $XXX to of long-term debt position of free off with low the summary, flexible is liquidity million of credit similar seller current six five leverage This $XX and free end be or in around callable repurchases note Xx through or would to to middle flow trailing any EBITDA. portion callable note to XXXX. premium and

using of XX% or be cash considerable market other would net or could current XXXX distributions. of our cash million $XX yield around strategic $XX incremental investments million, still dividend flow this an repurchase a growth debt for free free at example, flow As or leave XX% reduction, a prices.And

an found have have shareholders. for return to long-term rapid to refinance our expectations To-date, we and a meets cash option not debt We more requirements. our of or flexibility explored enhance options that

for that of to timing Neal? and closing execute base while back me to plan.Let continue options the the evaluate call case We our turn remarks. will distributions could we potential size accelerate Neal

Lyle. equipment. are with and Operationally, field in customers our efficiencies greater safety you, less Thank demanding the

Financially, optionality cash our steady expected and led through innovative have With achieving the to gives liquidity year. generation, we path flexibility a efforts paying will full have our solid greater confidence year and for start greater in This and delivered long-term expectations, and off to products are solutions. guidance. to returning our strong our shareholders. we lead provide these markets The will cash to with results holding clear debt. continue and We us this

our employees. could dedication without happen take hard not please first we you.Gigi, Thank question. the Lastly, and the of make work this

[Operator Instructions] Josh the first Energy question Our Daniel Partners. from line from Jayne of comes

Maybe assumptions the us through your year? the balance forward U.S. maybe of but XX% wanted great the you're forward I going year up. assumptions. going activity just It's just for you to activity for forward going to XX% on that follow this to highlighted just tied your the but walk thinking you only land will could revenue how about count and not market count of well rig be

appreciate it. Yeah,

beginning to the change from no outlook really So of year. the our

if be company, challenging. expected U.S.-only down. think more to I be were And We U.S. count rig a would we it the

For year gets internationally, we so especially rig started. growing do count internationally, us, see as the

slow a with sands to a the but to see have activity, half. start Similar second the story the year, boost should back Canada grow and we in oil year. We as it half

So we for international Canada roughly I being global overall, U.S. but flat U.S. bit, see count, flat a up think down the with down. making it and rig as

where you And potentially of markets land the then that great bit. the over excited about where on but U.S., XX think would building be you just going the months the to not next to months, only internationally, that XX, side, as Subsea just XX speak think over be outside expand I the a you're to next little business the about could -- could when well, XX on

Yeah.

the think years. the -- has over Middle for some few I last market obviously, acceleration the the jackup us, land and So East seen

We expect that overall to continue.

of some their projects there, So of ability especially continue to take to with we have the our that, as products to -- move now we export there. advantage we'll position have look and Variperm and

I that's exciting. So think

offshore, a a the that we great or utilization with awards Brazil, it's full Africa Triangle nearing the next Guyana months to areas of Mexico we're is opportunity, and back think XX or -- believe ROV see you to over we guess, said of there's over -- acceleration other Golden whether Gulf point big ROVs. the The West I And go do or an so?

question of Our the Storms Stonegate. comes line from from next Dave

of strong are had us from margins very and Variperm I operations? you much you out how of obviously, margins how in those hoping, Downhole is acquisition. Just of parse the that and margins Lift kind Variperm lot Can help from from are but a much understand those pre-Variperm of just

Dave. Sure,

in look for and Artificial and basis uplift A of about think and our more significant acquisition from margins, really benefit Downhole impactful. Variperm. you as the lot a think as mentioned, at total segment on that big I the the Neal Lift that overall is even of

we So strong saw growth there.

a softer We had the mix. valves, bit which for bit of in sales Lift Hardware quarter stronger favorable a margin. and equipment Artificial Casing products, softer other for little typically our is production and which and We had our products contribution also have

Variperm, with -- of So majority segment. a expected and of is rest that the that within after mix vast we then which majority the little growth the bit of

Understood. That's very helpful.

more one out squeeze know integration question. to came is you any, of Variperm I synergies to for How Just anything pretty more logistical left or if much like that. turnkey. me, a more or

Yeah.

said, we are. great now. the you we have, business going pleased a run we run. when we're business, to well, with is integration keep are as they where So again, And as well to very buy as I The them want it let was and traditionally

together our where is see getting look more think and teams opportunity I revenue at So working synergies. we

there. we're together. quote to innings I But we're starting very at packages think So early

So be that time. keep takes we'll uplift, that. a would It and big driving

returns So the quarters, next I occur going few exciting. that's over but to are early think

from comes question Partners. of Energy line Dan from the Pickering Pickering next Our

Downhole I quarter-to-quarter. So of want revenues that we we higher QX? that Neal, I of to some traditional that that strength questions. just in at non-Variperm were think, business A when you couple technology make heard QX the Is the sure business. I looked that kind Is had say to right?

correct. That's

great. Okay,

weakness now? just function kind revenue-wise, a of It just a I'm in so but that's there about like had you right Variperm what's And Canada quarter-to-quarter. sounds happening little of thinking

correct. That's

in delays the customer very large, the base, sands. think Trans the their think I large I operators the Mountain are oil in who

we where coming tapped slowdown the just us little have into at I breakup. conversations think of the last a plan in we our then and and little more the they with our think year, brakes to were robust QX bit year. to I expect seasonal we get will revenue second a half lead here run back bit a And rate

Got you.

Lyle question case. want I the -- then sure Okay. a to confirm million there's flow. on And just for that's just about that no that understand, fast down $XX the revolver paying the for make we've penalty on I And you, got one. to

a to You on balance revolver, don't have requirements do that any hold you?

that right beginning in a it correct any pay of off there so can just around you're was balance bit the No, at we probably higher million, ended year. at that And $XX the the time. little than

you. Got

great two. take Okay. Then maybe you thinking you is more lump them then the whoever second what's wants obviously, question environment? question, together. Are And And operational. the One have Variperm, I to acquisition. found deal I'll others? a the just about is

through QX? saw like. any trends you to accelerate move trying trends the you of soften trend QX during into QX? consistent kind out looks they QX? Did we figure Just If go what as things as Did during --

All right.

Dan. did acceleration, but wouldn't quarter was an Formula -- activity I type Let on. X was me second see with went say pick a start it the as did the it We part, acceleration. up

we -- not is the thought did up to I release think little budgets, the happen, was part pick can We side in see overly which the of went unusual. a international international international. But that activity that's quarter slow the as sometimes on.

lot of be to good we of But can that, going -- that product the there. margin. we we'll we a that towards think robust happy. stick pipeline If like our breadth little think of opportunities.Variperm have gives a look to confidence -- with at home really M&A, end our the was gives another wide value lines, we're the find criteria. and of run I us a lot one opportunities us a good as there's There's year there out I QX well. So a into On think I

and have we We industrial within our portfolio, an accretion we the financial maintain want logic finally, want Overall, And have have we to there. to to stick there's balance if get continue But generate we great our this conservative plan position, that. area to in good a a cash and and important our we'll out balance opportunistic sheet. opportunity leverage to great strong sheet a on to. to is want year be

from Our next comes line [ Carlson Instructions] [Operator Erik of question the ].

I was And is well if just of saw well, and from we done? just to of officially of is wondering an get around and flavor to I of business revenue is all I there phase on Variperm. that bit business the rig be more going versus of could drives products during need little just mean the perspective, installed you and kind bit of count kind -- it's a sands that what the couple the just a there -- announced a forward. coming adjustments think the in the touch are that's revenue [ the the businesses the past of that or days. I then activity-based once of trying GMX ] just way in that count a drilling market mean, little I'm is their kind actually and in is completion majority so kind oil online

flow used the products in maximizing of bit. a sands that control and steam take I'll Variperm completion you drilling with well. chime are Lyle, is primarily injection and their sand you the this control, the mitigating Neal, benefit if then, can into in. wells the want -- the of to products And and incursion sand oil Yes, Erik,

So products very good there.

a in a that little There in all So and sands.There's have they activity a rig do about in Canada. business as recognizing of Canada of oil rigs their drill Variperm's the of piece. revenue that bit XX% measure, quarter first piece to linkage in pretty not was and another count not good good nuance the with is

the East. products So Latin the into out of America Middle markets. this had they out and different in revenue ship of quarter, And coming we into U.S.

So a as business us. will maximize good for well ability really matches And a our that Neal global there Variperm. with mentioned, pull-through be add to

more they generation majority side the But think they're I where projects that. generally, activity activity product new one you adding work in the the is have to the that, of related place and not add to projects. -- drilling completion wells is would that then steam I on the to facility piece and see on new existing just

not coming budgets new in, -- to think from. really relying of XX% keeping money not we're it's going where the activity on So new or but projects their going come we existing is

of I rigs delivered That's And of East been that's and where the as larger Great. then mean bit. peers that out in pre-COVID your a focus the development. of the kind kind are of ambitious I tenders the their production kind numbers the that kind little touching I gas they build there about H&P just tailwinds wondering I'm being for maybe there's of think is the when and a unconventional and on area of out? -- Middle helpful. of put think as ahead just perspective, where mean, some additional and like Middle you more on they'll to an business kind business listen already gas from the the seen call they I have basis, on go-forward East like

Yeah.

I of a Saudi. think couple areas in in

equipment as us customers, internationally, think rigs those as going side, rigs. to the those -- to they're upgrade like on transition or mentioned, the they companies you H&P, H&P, capital So add rigs are who need specifically, as equipment about our

being products Middle it's the on ]. unconventional what's that opportunity of they're applied capital the East, great using there. They're our side, gas lot the development especially a or [ solutions we and equipment.On Argentina for that's equipment designed helpful side, a So for us is drilling the our to internationally, U.S. whether us

coiled a line And great within opportunity significant activity our our product as and see tubing product there. we stimulation so line that's well, on intervention and

of basis. it kind That's Okay. a guess authorization. the addressed left on noticed quarter. go-forward looked repurchased you And I on balance obviously what first sheet shares during plans like And you a guys you of were wondering smaller just what then helpful. the then a amount very I had lot that and see on of small the the kind of

Yes, buy be portion paid Erik, capacity by tied in small in shares got to the equity in cash cash were the of quarter, first cash. in we of tax I'll that that any was able the was that authorization that. -- taxes to were under of today. and company and the a do repurchases to But that awards quarter.We've paid recouped the a did those first small amount our talk not to employees, market In left and those -- tax amount the indentures relatively current shares to

our about outline plan, and on faster and we open and about the leveraging ultimately this that can our that. down tried shareholders. excited the liquidity larger flow is pay back distributions so get long-term our flexibility to call debt So as to we cash avenue we're And pretty our talked and up to for

where guys service of thing of of to management share is say it hitting, when looks great. it over like flow kind that mean, really with some flow proxy something strategic incentives have That's on you released, sounds mean, focusing what on just the And in strategically mean focus. seen is guess, guys the and as interest couple the guys smaller a margin a then forth. times alone was you And financial the aligning larger guess some the those mentioned but are And then guess just I savings per really objectives easily come still something my material which on are where bunch just down from pay that's and over about, the pure out like and XXXX.You've with it so handful I that's we mean, you I a incentive you metric. accretion tied last a based statement -- now.I I of -- would free I I upstream number obviously and accomplish. can cap be the like last year, way most on EBITDA both I on, next then a I I more focused of that cash But calls, is would at the you basically, debt the if is more suggest metrics, cash only mean as free a point so increases but your larger kind just are cap thing, looked -- share what I have peers guys thinking of pretty of I of obviously, would incentives on and

I'm and So show saying I'll I show results. the you what guess is me the incentive,

guys is should result the think but incentivized for you I be think that. I there,

process where would basis. I given the in strong sits, that kind align go-forward be paid of very, And on So we're a to goals but those as I up get suggestion well you activity very that. to just a set do mean, think well -- might

just quarter them free we cash results of a payments all a we it that Yeah. XXXX And -- be great call flows No, with but will that on to key Erik, weighting that's to a our increase cash aligned generating free flow very the point, we focus really started seasonal of see out. year team the not later our think aligned great, sizable one see manufacturing I We've closely have all I there for -- with kind company just that to incentive so and cash great, free cash with go to agree have QX last flow. is think tough executive XXX%. that the managers free cash the flow, year.And this of

And so go out having cash I payments our some think acquisition. as well for as

and to Lyle get And option on for that down, debt think get his to evaluate and that. flow cash something returns, excited, think fairly to team, we executive you've laser-focused aligned, significant in as find looking can to of previous had to forward here that. ownership our and we flexibility us well outlined in calls. I results I'm We're in it's drive be with the and best section, to I that I then to think we to want us we're we think, are I as think -- it's it's the equity, important to outlined And really and So a the in that going continue.And shareholders. and important shareholder I on we're positive the our our be QX, as

great Well, forward. And Yes. quarter. keep Great. just driving I

Water Our next question Robertson Tower comes Jeff from Research. the line of from

intensity. your down per ability are even about of how look a increasing maybe you upgrade XXXX? as the that rig wells flat give being little impact in intensity spoke comments cycle rig the of bit And to you my in the you is U.S. Neal, into any And about, driving guess you could increasing I think far drilled greater and that a question replacement on context you maybe as basis? the out talked to forecast business that as count really is how a does revenue the your

Yeah.

wear general, I the and a think makes on that big equipment tear difference. -- in the absolutely

So no per revenue the change. longer just can it's rig

the make. -- consume our lot little that a of going do of it to lot the we a over I on a I to did material per more that's microeconomic precise But is more we're the think key our overall, because difficult rig more of time consumables equipment, and be than really think think picture kind part it can what forecast big side, we customer wanted provide that get just I so -- to more the there. to consume they past.And in that the industry decisions going

about and are introduced of in we teams our a Now some I I calls am really, really on what prior new in excuse to mentioned top product on and me, of in -- new excited we that, is new I the call, development. doing. great admit, where this or opportunity products products have got

products a stages in we of pipeline -- lot are in great are A that new have We products commercialization. of of there. early are

which we transitioned into frac the traditional of of rate much well.That pumped unit wells XXX manifold. them, our One completed FASTConnect, replacement between first our incredibly faster million put it -- sand stages XXX manifold a system, is working than is and at pounds system has and field,

the all all. downtime. customers it Those did with is do more I helping with examples our FASTConnect provided, just So zero same it equipment and it it did

a is game their this So patented pumpers this for and really increase changer technology want a efficiency. to is who -- operators

count. product FASTConnect. than teams type see some that's -- so are rig we that the We really hope of that half great so And a about So accelerating doing our rollout where really focused faster year, second the grow can forward. excited the results in are on of to -- going and we

for they pressure of Does into the on provider out, their put that or dedicated that basis job crews standpoint, pad. help pumping demand benefit that or that an tell the fleet? then the this And the pressure from that their have on equipment at roll frac see need if to that operator you they pull business. on that product all having our Do you least does

we're well they efficiency. to today. happening their if our this, successful site the revenue. customers product out new our get in going to When good provide really can we the really pressure really love benefit, customers can we we uptake, to could like in admittedly FASTConnect we're we am And rig can't The sold sold be see be teams we so are how companies want company position excited if to again, But the focused want just pipeline. them and flattish to have sometimes or products.And really directly be a environment, having bring our to control market our on I pressure see operators about a that on a over going We enjoy happens. and use and I FASTConnect this where -- will our in told our so products, the new teams what's roll are to a can can but and seeing are product and drive and to be they never our like it that's to roll that customers we when pumpers, with value, can be to of we to want operators sold product a have focused. the out directly And

We than have the grow market. faster to

absolute we're pillar development product new is completely. growth, and So focused on it an that of

that's that comes it to and obviously, good customer your it the their returns -- economic So will it and really benefit product, of if they the business. of showing down and for more the want enhances

Yeah, the at where teams absolutely. value is let's it And are our look to provides. focused

So say, What this is you saves more generate is is really think rather hey, this allowing revenue. more important to you than I money.

the a if is exciting I to our that, going pumping gets your on be think, for you FASTConnect where well it more and operators. have You're And for really site. customers

Variperm, just last question follow-up. on And a

I to and there distribution what early very talked know is international FET's provide realm? but think can I you -- their -- doing early on you're pull on some expand to their in color products you business. that maybe it's international using about days, any

Yeah.

year, in taking was And So customers the was extremely on -- very, focused big busy early a very of there. is on XXX% it's into of it, just sands it care were their and to that. really It reframe they the last kind up, Canada, Variperm right? oil step

done, have we that other looking we Now acquisition are at opportunities. the

Middle the this of used think used technology East, is I in type it's offshore.

going provides, want the So makes it we're want way in sense going target that a areas. those to areas And premium keeps Variperm of value. the high types the where brand products, we're we our value and where to customers have to products those that do

like to now would to the CEO, closing Lux, I over Neal conference remarks. time, this At back for turn

right. participation All early to and discuss again look call. I talking in to forward second XXXX thank to today's for on to We want August FET's everyone their support you results. quarter

call. This participating. Thank concludes today's you conference for

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