Forum Energy (FET) 2 Aug 242024 Q2 Earnings call transcript

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

Thank you, Gigi. welcome Second and conference XXXX everyone, call. morning, to Quarter FET's earnings Good are President Lux, Officer; me Neal With 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 protection we that relying by today that other contain than historical are cautioned may Listeners information. our remarks information in These SEC our business, affect all factors remarks that other should be and those considered FET's disclosed in filings. XX-K the context of Form including

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

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

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

Thank you, Rob, and good everyone. morning,

third of into are good provided our around free the of for prior half through the plan. end is of a more have our cash our step strong, it end intention than converted penalty the and prepayable our notes of XXXX redeeming guidance our halfway stock year. flow process of not to At than direction. we big the that retire balance mature balance it This year, have the time cash to quarter, results and and is confidence point, to the our debt and flow take will been XXXX. without are we I is December the be fully sheet. for pleased of full will remainder until XXXX. a our progress, in the Free Now am EBITDA with we Also, faster to year that has raise performance This our cash

and of product international second sales XX% beat quarter. outside we the gains through strategy States, penetration. results in United FET's of share our development are the total executing These the were market In evident are which addition, increased and market market our new in

Variperm positive results benefits demonstrate acquisition. our of the financial Finally, the

more a of challenging successfully despite scale year-over-year companies has XX% our nearly EBITDA increased our combination market. increased have We The margins. and

on this $XX a working have announced redemption profitability repurchase million. As a allowed And and focus of team, our we notes we generated strong of This management. and million XXXX cash to free the flow. us capital management $XX million another through improved $XX consistent quarter,

and year. progress optimized to products our to around participation the in quarter, utilizing like to differentiated next we value of profitable profitability on an of The to our shareholders consists update market distribution together, strong This transition. positioned year our team addition, $XX In are full we and FET through free at balance a XXXX plan level, and their through Once growing global share, return flow raising energy our far. it execute provide Putting growth Last developing a to $XX efforts. of and manufacturing and create all X discussed middle on am sheet. cash and are so to high proud million. pillars: would foundational I'd cash we continues I our made footprint guidance million be between following strategy. technologies, complete, expanding

First, development. from we seeing benefits product the new are

gen including for have within is pipeline the rapidly market industry our that over power unit. transfer applications, The coming sector a We a data grow JumboTron XL utilized AI leading centers. The JumboTron growing the years. should are power critical opportunity generation many for heat for XL component systems power

addressable that are expands and Middle an FET's geographically in diverse opportunities market. exciting opportunity America. Canada the Latin these Importantly, This demand is U.S., with East,

manufacturing example roof invest include great need can resource our and hydraulic These A we delivering expand products that capital. with facility, is benefiting lift throughout the solutions. the We around to East. fracturing coiled service support products development are to Arabia presence. already global from additional unconventional our products or line world optimized Middle we in manufacturing We also key provide world, do and and To the meet growing global strategic our our Saudi and and artificial demand not distribution the place. are hubs components, technologies where are equipment tubing hardware, growth casing

the East changing XXXX, half we where half market our ability have grow XXXX. to and This conditions For highlights the pivot of first customers by spending grown of are compared with our money. XX% Middle our revenue first to

guidance revenue delivered and despite Turning second activity. to the our U.S. softer-than-expected range EBITDA quarter. We within

Our our market beat the acquisition. and year-over-year results of benefit demonstrate the strategy the Variperm

point global was rig basis Variperm improvement up was a in market down count XX% to Our Canadian the impressive with results EBITDA due given the revenue quarter, performed These down particularly during about typical even was well XX% seasonality. margins. XXX are though increased and the that X%.

X%. have Canada we for wins. leveraging increased readily share, Also, early sales product from benefits. flat, reap and revenue While casing flow. mix and They closely contribution. lift with FET an the starting available our do we also have are was some were these deliver Variperm's portion expand essentially controls Gaining takes margin customers. existing but of new helped are Variperm and by in By synergies increased experts favorable we FET's cost to free distribution equipment a acquisition time, cash meaningful EBITDA to share working Revenue artificial in market network to a

quarter's Also, Now due activity U.S. conditions rig as slow Canada, activity on spending the you from Internationally, their count Middle strengthening breakup. to drilling natural of and with how America. continues activity. flat Also, In remains entirely activity the combined E&P market additional shale demonstrated U.S., our pipeline. to our plays East let and offshore consolidation prior companies in evaluate fracturing to decline weak me contributed as quotation Latin color hydraulic completion declined strong was it gas results. prices give rig portfolios. in Canadian the Outside rig subsea X% and vibrant impacted and count by a

of hydraulic activity count experience will year. remainder for increase our significant levels. Now a We the believe from that rig unlikely outlook is the let fracturing me and current it turn U.S. to

a our a U.S. initial to rig count the As decrease. of year now we result, compared XX% be down expectation on for expect to average X%

the $XXX generate Variperm ability cash our the free the we $XX $XXX guidance, guidance increased confidence the of our revenue relatively outlook, and acquisition the we be reducing EBITDA million EBITDA $XX to anticipate on market of EBITDA strategy million. Therefore, softness. With our million top the our However, the par change in are revised in with XXXX million. this to to beat range range $XXX and in million now by end mitigate of of the market with third quarter to flow. We have should million. $XXX is updated $XX this range million Despite to in our second benefits

increased operational now range by $XX and on turn call execution. quarter our to $XX have am results. a As more light million the result, second business $XX financial This I to reflects million. model capital between FET's our guidance million going of and details the we over benefit for to Lyle

a inventory significant in cash contributed have This this cash Thank good I and will decrease represents my conversion, cash management $XX Good comments free results. so year. strong an you, free net Reductions in the morning, second free collections flow far driven our quarter. flow our to We generated in Neal. providing and to begin generated everyone. on sheet. the flow cash EBITDA of working more strong flow balance capital million by inventory flow XX% color cash

Our teams drive continue chain. by inventory our tightening to down supply

flow the market reducing to conditions are material meeting customer We raw of demand. inbound match while still

inventory for inventory to ability and drive the increased push lower have turns. will We

Our efforts to also achieve off. more timely collections are paying

beginning XXXX. We have in improvement sales of outstanding the significant achieved our since days

fact, which cash impact In of our results. no boosted Variperm, working our free million excluding reduced flow free flow nine Recall decreased have Net-net, that working year, our second by year-over-year. quarter reduction we $XX in prior cash this days net guidance by capital assumed capital. the DSOs

reduction capital of achieved the the working already want guidance earlier. year, net discussed for the the remainder and reiterate plans our to I Neal With

guidance hand We ended million and overperformance. under benefit raising $XX capital $XXX credit full driving revolving million. availability of working $XXX liquidity with million quarter year of of cash with with $XX are million, flow total to on cash facility the our We the our free

X.Xx, net laid was a from Utilizing FET Last we out in debt half result. Our net improvement quarter, ratio the position was put previous first to EBITDA, shareholders. annualized $XXX plan million. slight a to to leverage cash return

redemption million notes remain on the of our in and guided plan. XXXX the partial liquidity $XX flow, cash announced August, this current track With we free with

seller growth XXXX We structure, end cash expect reduction investments, still notes flow around share of a position year to around repurchases or of dividends. revolver and be low year. of balance, incremental flexible our return strategic considerable shareholders to capital And the leave leverage distributions. and through middle With the further in for free we cash next the retire our this would would to a this notes the

accelerate in while plan We will continue we fourth and to evaluate refinancing that could this the execute quarters. third options

Now systems management iron. decreased provide results. and Drilling our treating to ROVs, segment cable primarily on let me revenue The X%, comments Completions sales and lower segment of due

as international markets caught During the quarter, the first from slower a revenue tubing quarter. coiled increased XX% up

a We also customer partially an saw due EBITDA remains for related by the revenue of XX%. the our quarter-to-quarter. equipment as ratio a favorable drilling downhole XX EBITDA mix where mix sales solid were million, downhole of XX%. swings Favorable Orders capital Orders drove and X% revenue valves a and both new to growth. and was in increase the year's creates with East stimulation production up during refurbishment and up drove for in lower worth power had segment equipment to and quarter, international lift The tubing segment line system. as Higher frac over were million, products points up large work decline is in segment with equipment were decrease EBITDA the less offset we artificial Lower shipments X% work. by product pushed X%. product book-to-bill line. outlook in The increased strong the a product down added and order their XX%. Middle backlog XX% product increase in a orders basis $XX for of the Orders in coiled margins the equipment casing and XX% timing our line, $XXX production

quarter, our total ago. U.S. In of revenues provide to on given in compared color our by to second strategy the And international me mentioned, international grew activity just the and XX% given with in making is U.S. markets. Neal internationally This our revenue the grow disparity as revenue year significant let shift a geography is between progress. some Now softness the the XX%

market the share There, and hardware tubing coiled with facility. we products. Saudi of up Second valves quarter in lift international Middle XX%, in revenues of shipments Arabian gains recognized majority with of revenues the manufactured project the our casing were East. artificial for also improvement Downhole and large strengthened

of to These market. been to revenues In demonstrate our market expectations our growth decline of contrast down spring global softer in to East, in in results year. the the the breakup. value addition this our Middle Canadian U.S. grew due U.S. slightly footprint mitigating the And has a

count. rig with correlates revenue Our

begins So depreciation when third To a in second quarter. the roughly few me for the for market let to with quarter. line up, costs and wrap expense we purposes We provide the U.S. should to and improve, amortization modeling be benefit. details corporate anticipate

million reduced in of August. million levels $XX second of the future in $XX the quarters a in We will repurchased and the notes interest XXXX quarter redemption with see expense

second about expect $XXX,XXX expense approximately third or million the quarter. interest quarter, For the to we less than be $X

the of quarter, outstanding reduced $XXX,XXX fourth XXXX incremental should For an from we amount notes. the benefit of realize

based The With discount will in were roughly These XXXX off issuance write retirement the notes In when and with debt and million deemed recognized a nonrecurring market $XX issued we $X.X at a originated charge that the $X.X debt XX. unamortized quarter, gain at on discount the notes, of value million we June were million costs. we of estimated the the third in fair these August. approximately the expect we time. related associated

year. slightly in reported half be higher first the XXXX of the the we back of income Finally, $X to tax anticipate million half than for this expense

remarks. back call Neal? the for turn to Neal me Let closing

Thank you, Lyle.

soft our from down earlier ahead, market the Looking year. to estimate we remain this and expect U.S. original

our the and However, international softness. and will additional outlook Canada remains markets intact help for this mitigate

deliver and support execute to strategy. long-term continue will that our results financial We

and free flow cash generate paying our to year. Our guidance this focus raised off. on generation strong is cash We expect

provide self-service Beryl, both area our by get XXXX Our Internet, Hurricane or retire done. having to despite loan especially middle no way thank for sellers and to the global to their plan This hard to cash limited the or term will team next on remains for job work power, the our and a dedication, they I employees notes impacted Houston shareholders. optionality around track To of would flexibility conclude, and like returning year. greater found

question [Operator of line comes Instructions] Stonegate. from first Our Dave the from Storms

to Could could we lower cash kind put some it you start just see hoping you of range? either that will a Just of on or and guidance. us help puts Great the take with flow understand of step guidance end takes up. the higher that

Maybe Lyle I'll in. start let and jump

good we're cash I a into seeing conversion think in free general, flow. working of capital

focused matching the DSOs teams receiving our demand. that really So are on reducing market and we're to inventory

So we the range free with feel laid we've the cash we I out think that EBITDA, guidance flow that in really confident provided. for

little a of give I'll bit detail there.

wider cash going range bit EBITDA on that's talked be swing given is about that's working that about. full be going think maybe or and And minus the flow in range. free the capital our plus key contributors, to EBITDA a flux to is or you If Neal little year a the plus then minus

top So higher bottom closer end, juice bit if range, to receivable. get think at think But opposite. less little accounts we're just our end the get the I if capital, a we're I we'll out based we working on the the EBITDA of of

other And each kind they've net out. of so

or then to or color another? mentioned more know us way returning one there's I like? I what anticipation can capital any you repurchases any that you on your or lot a variables look give know of just decision Is Maybe the year. sway middle next would of And around dividends. may that there is decision shareholders

it's we're that You about obviously thinking a lot. something know-

is shareholders, We some cash time. us, are to I going want we to But really think key have to do. the we return to something

and for long And see so we're going makes to what really sense options term. evaluate the all

So a that's it's as consistent and where think be we need we that commitment be company. want a to with, we long-term to

coming slow to the ask out I first release know the may their for budgets. one of And if could markets international. I international quarter, a little be

XX% Q. for good really much a of catch-up? How may that that So a that be number of is much in And how X co.? maybe baseline FET

revenue what The from is really our was last XX% of international year. shift that's XX% a

we've is percentage about there, Variperm, a were revenues revenue, overall we've a U.S. up another which softer as So international, Also, international grown you our is the think and little XX%. it's contributor of increase, if added larger. as sequential

project experience do or we minuses pluses So some around shipments.

valves But up that U.S., we casing is of of sequentially. sales our hardware mentioned in incremental at importantly I power the that America Middle we've So in think the business, we growth catch were market and artificial East. mentioned Latin had plays the that in frac very outside and some coiled around products, share we tubing maybe seen the unconventional whether specifically lift some aimed that's

market had as share well. we've -- market So some gain pickup there

brought you've a Drilling customer. and mentioned You on in Completions, pretty customer sizable

especially given to customer internationally. as is like, share pickup in market curious Just what the environment all acquisition overall the

remain solve at customers the our where and they values us, allow customer-focused we one our And find their of their our we reduced We many is want for participate, where and markets we products, we to longer. OpEx. they've to customers to last They go overall can core for deeper, -- problem. of look

coiled trend seen that think it seen it, we're is in good And in in other tubing, as the want kind resources get have stimulation secular seeing seen that call margins. exporting intervention. possible it, to let's overseas. in value in a We've let's We've U.S., it drilling. the as in technology we we've technology utilized unconventional we've so And of generate of exportation in where of we can markets more a, and that I customers scale many front a call proposition

the has And in advantage and where provide. -- to we're with productivity technology. productivity as this gains We've this we that able take come that we've industry helped so productivity products that's the same industry achieved helping those grow we're from U.S., internationally that that seen

you. Thank

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

Variperm impressive overall, think Is that revenues. I want quarter-to-quarter quarter-to-quarter heard heard also heard make for -- I and revenues performance think Canada, flat I sure then I I flat right? there. Canada to

X% was Canada up.

lift So grew think hardware we wanted quarter-to-quarter. spring bit, Despite is to so what essentially there about say share I flat our solutions, artificial our little But Variperm breakup. X%. obviously, and casing a was we

because is you surprised What's difference -- just know getting it I business caught thought expected? substantial customer pretty you a to or bit? it and business down guess, just And steadier half. that, relative was as Variperm certainly in a -- the the win? Was my kind a there and it's there volatility little of it much your that eye could as be to it Is than

the of it. part think is steady I

gain base The us. fantastic opened share for I that utilizing And their lot we're other job -- and we on synergies, but part there again, team with a mean distribution network. by excited that they've is up we're about of in done they has the Variperm's revenue that early potential. contact customer a doors

the stronger in that price? crude second activity, That's outlook? about being Is there Variperm we've sort the etc. talked still you given awesome. Is any in update, sands year, half Earlier the of seen fluctuations oil, for

a We It's see don't in monitor. outlook. really we'll that something change

those with something projects and shift into drilling QX. big the from QX -- schedule I think could those there

oil, sands possible. But no I development. change in outlook right think that's really now, our for

So better better been has first bit half, second little half first and than a you thought. than here the half

Correct.

balance shift That's a over the start sheet. that for we wanted nice if could, acquisition. to to I

Do there Is you up? the I several balances down know through How a the million processing saying August we little process. a paydown? fund specific $XX but redemption just kind note see you've we while date how you us what's do of here? Do It's think bit walk do its we -- heard so said times. fund I And we can we And revolver cash you more? bump it? Do pull that? that then --

of we process the cash our that that with a $XX specifically did quarter, did revolver. retire, buyback, we did we million second notes. the of in worth notice -- mid-August, indenture or period little to a redeem Basically, notes $XX hand of sorry, we're in XX-day and requires notes our on bit our ahead million in redeem The

that redemption in it's first for So the on that, come from we that When redeem for issued XX million. is we -- that XX, to flow out We'll funding liquidity, going those and third $XX on little $XXX plus little $XX cash that's million. to other going July about bit revolver. think to August availability -- where revolver. notice we importantly, come bit of million total a of and of our our a the on the cash quarter in with with quarter second And addition August ended

quarter got we've to and year. get similar notes by the of redeemed with in the end lot of powder do be million rest 'XX those So of able a there those to the would fourth redeem dry a notes that, the process

Lyle, a is And process. similar notice there redemption

a to going saying, "Hey, issued the you press redeem we're remainder. release So

we redemption that October, in the that would something November see and And days same so process? We'll follow will follow later. XX

the It would, That would Dan. process. be similar

And more focused one it's question then operations. last and my on

bump. was talk a business, we're seeing in restocking Your change business drove Can dynamics. you it that curious that. if had East a the a distributors? growth that Middle that? little a by valve Was Is I'm just bit nice you

and This dynamics, distributors. no in by both the Arabia. business in change No in project more US is restocking deliveries

of kind gone seeing in well. the we're with pleased I think Saudi, trend So, it's

no And in that dynamics industry But valve change up. so the there. we'll keep real

like have you're Variperm bolt-on I for America America What's about North one other or process you're question. to North the seem it think but right and Would about an answering And is things for my things from overall quarter said well. in sloppy early environment Variperm, do you more. Or opportunities. as I that obviously, exposure? question, as North acquisitions now. I stay environment be another opportunity? do away And that opportunities? American every asked still, you last going of guess, Kind was I the you

find a home hard another Variperm continue So us to I'd one. to will value obviously, look. find. run I margin. for Those was right love think be to We'll

I overall think opportunities that out the are though, there environment there.

think And U.S. seem to The I We're we kind can away kind getting done. from diversity, of our our running breadth and -- both activity not with is of of geography hit product international. the the and be we'll lines deals U.S. robust.

I to both want have business international a and think find ideally would a presence. would an that U.S.

criteria, strong look so continue our with and the to portfolio, be want And we conservative it we'll leverage our sheet fits for our we're forward. to to the though, going logic, going really, that. But where balance industrial find in on is

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

and And you the spoke see secondly, about mix markets.? count the per a Neal, start that the in rig sales can then of if offset will of you do those you are sort gains pretty in further gains you revenue both bit Where the improvement type rig. international in little see rig in talk I'm weakness to you wondering XXXX? U.S. count? some see And sticky between if

think the our U.S. revenue, we yes, year-over-year, I gains. were that we U.S. probably have in so let's up per market truly methodically it, be we're rig. and X% If estimate, share to revenue increased or would call So U.S.,

with have they XX% activity-based And the in that some with the really -- my driven business key have being on about can them I you product do stickiness, points. needs, get And once you the time. with you those in deliver, right? ready you can and we you and customer understand of and our value sales our on you think what that have experience for their deliver experience, are

is teams we to rebounds. customers, only expectation I to to to need grow hold need yes, as So do market do we it we're those our challenge the the put going not our think and

owners wanting FET well, of these saying by plus those of drill site types you're mix that Or that of to driven the gains well it products? is a going the products supplies? Are we if FET's our for providers service on the E&P want some or operator

combination of good a both. it's think I

for products increase So E&P see company the to that company helped from the productivity. pull-through we do have service we their service the certain

-- of E&P directly half about already. to also We operators our are sales

that proposition put to them. directly value able we're to So

So combination our to that make solutions both want differentiate. technology We strategy of more customers deliver we to our is want and efficient.

we're are at to we better that share. proposition, the grow laying going often value more that out So the

mentioned renewables because actually or opportunity transition, energy on see new of Is studies? be doing for orders you and power as to to -- build you the people requests in potential XL generation And world? a systems revenue types JumboTron Or you're seeing that these are starting system. bids around your fabrication out for products to

these delivered this of think have I last exciting rapidly. we to seem expanding pipeline to the year. already us and and So year maybe seems And a really about just out, power be sales industry But what's as to as does built is to just an comment the there data of concern is these more are centers from. be going where that being lot come

in it, utilized gen call applications. more let's different power being mobile that, So we're of seeing

growth So a that big directly, Again, we're do see we these for as seeing seen spike. time, us. we've long-term bid a but really take that activity driver and projects

on of And aftermarket then those through follow to servicing that, cycles? and business create types replacement projects do

do. They

are units robust. really Our

time. a long they So do last

decade. run And is us. think a cycle once longer service for in But it a I place, will that so it's for unit

from aftermarket long a there. have start to years it. installed, will got But a we'll so a And to that. once tail that's be before -- see we It any it couple will tail we of

last question. a then And

quarterly into or growth your even second you look you in big-scale you quarter, sales the East revenue Middle you the continuing out see the exposure On for XXXX increased seeing maybe projects growth, that necessarily and but in not that are XXXX? are seeing and as continued projects

of just one good into actually 'XX pipeline, sales with sitting change I and really trend. to and no yesterday our agree with he and talking Middle the East - him a sees was see I leaders just

unconventional our And And only to, not technology think downhole from exporting I still there as but so for technology, opportunity of the we'll that. again, there's continue to lot well. a benefit keep us

Neal be margins, this you in XX% product you think two lead Do XXXX XXXX the to with mix there's margins? on the room XX.X% expansion? can for the Just or will Or Lyle, to do the to of margins about as quarters first year. you think think similar type similar

you which post our and if in a the overall they've relatively lot about -- But being gave clearly, at mentioned acquisition, post talked boost integration my nice mix. Variperm, us comments, you margins, the a look The the been we flat mix of really driver.

is that at. And so that looking something we're

I we mix control mix and can that gains influence share our think market where have. we with is

So example, bit a XX%. about down sequentially, and just were EBITDA incremental downhole margins artificial about for talked take, lift little We Their earlier slightly. Variperm. revenue was

So but roughly flat, overall quarter-on-quarter. their profitability it call was up

nice products little our about stronger. a offset talked Those margin, also We softer at come being other healthy downhole a bit by margins valves. with

be will downhole tailwind to grow a product that gains, and share as think our continue with a I to boost we margins. So line

come tailwind leverage. The through other is operating would that

revenues, have as well. from will a leverage decently the and revenues with But down. see our in we run if can flat been So -- margins turn operating we coming we benefit our get activity benefit could that market up

So go higher a make would those in couple levers the future. that of

comes question the of next line from Carlson. Our Eric

being hard Canadian is, complain when think currently, market year, XXX a about I that I when the and quarter. to benefit obviously, whole markets underappreciated great a more almost your the are just cash I maybe by specifically? guess maybe market percent maybe Baker XX-plus which which mean bit more above on I And but of I bit think you mean, Canada Another thinking could activity, cap on there. oil-specific can little you little Variperm activity rigs generate about probably am a you in think just when correct it's in bit last year. Hughes you XX% share international oil-weighted in to is little a currently, a

of percentage the that those certain work in rigs a There's you that absolutely. mentioned Yes, sands. oil

it's so And drilled. that timing are of being those wells

fields rate new would to today need And only then be, stay Variperm infill would so product. And the as newer I product they with utilizing well. acquisition, wells long-term rate a up the to -- require keep other the maybe have it, we run their per we-- the did is just had not we keep projects, with units of there, the that just part other Variperm, call typically flat, the decline of drill, laterals felt when and think more to let's longer but

secular another we're So pleased see. to I think that's trend that

have you in should absolutely oil Canada help more So rigs Variperm.

think you if just on I the you stages business basically that laterals, the lines when broadly. X-mile the maybe hear obviously, comment of industry you lateral you the that a less those materials you more X-mile there. you need have, then of rigs per lateral, obviously, look think any intensity longer in complete lateral are but to versus a And mean, work, day. about longer calls, rigs about in like and of to the E&P kind And completed when

continues number? miles thoughts stages So think improve. it, just get the about for from you kind to call product we'll And when drilled building future I you you do around technology the that? or lateral as of Can that mix some benefit we or, be. on just count about pure provide whatever rig how more do complete mean, may think less

hit you the the kind see. trends -- on that it that's we No, right of

the refer a There's track to bit track -- generally published everyone we little wells. in track think of stages, internally data. lag access I has it's weekly. something a We because to. we we rig It's

it it all to is the But makes forward-looking. focus really intensity. service hard So our -- we be

made longer mention laterals. you So of as a

longer, So tubing longer. the that would the gets coiled string be lateral is

The that's wireline revenue is longer. per So more string string.

cable. that's So per more revenue

ends, more flexible to going quickly you your to more pump than before. you're the stages out you going did out As hoses wear per power this wear year year your day, you're

see going increased cycle. to you're replacement So

will will So us. that benefit be all

count have So the yes, you're right, rig view increase to think we'll we're But business. best continue as of going forward. U.S. that said maybe on isn't rig. our time, X% already, to goes revenue -- U.S. I about per we our so and or And improve over time we

announcements announcement, the gas lot you into to bit guys kind just, a the is info then on there? don't And they saw maybe where to if looking are post the just of Arabian facility unconventional East maybe the me providers, now the little radiators know, can manufacture into maybe And and a like I think the share there even expect within the of was And somewhere Middle deliver wrong. kind specifically. what Obviously, you I service Middle rigs more like other East? Saudi going kind opportunity see I'm I you of of market correct a

COVID, the become to market -- obviously, Just opportunity you there? so to there. above the are you I outsider? numbers biggest potential guys about provide way think do U.S. are I that of growth mean, and can going does do But pre How you activity how you a incremental that some torque all ton the product content the geographically kind I of that mix becomes then executing -- guess mean is forward?

maybe we States. the would in and let's in think so -- I Middle sales that return long-term your a the comment of say, rig If U.S. were to, return Historically, to torque. Can spot maybe East. back we do per of see you service-intensive, more that normal see, U.S. levels, there ton in less on growth let's the the see call United last to were types East see Middle real you didn't the really was would it, was

wireline. wells are big that's unconventional mentioned in They to a -- changing, use is and a and It's that However, the radiators newest starting -- our power for types they're lot coil. that's to to going Saudi. way, fleets going new It's use there. of frac looking lot radiator a their require in a are going we're of manufacturing to of lot conducting of conduct -- to ends, to drill consume going that you radiators we to

we markets about business. Eric, our offshore subsea bullish also bullish are the Middle and East. We're about the

been business is fleets big us and up of and So existing wellheads that's last orders have driving we're strong. We that of higher orders think if ROV a watches the subsea you is tree spare mentioned utilization parts. higher one big about quarter, initially, and which drivers the and seeing subsea subsea that everyone driver tree or for

of our fleets ROVs pipeline to inquiries new is customers' add incremental Our meaningful. to for

well in that the excited defense as about opportunities sector. So we're as

Middle we year. So while well around opportunities lot do we on East, also the subsea of into side excitement coming next as see a see the

kind free discount bit to is mean a an your and possible your little guess shares. I every encourage XX% you, but comments one would when potential away, buying on peers this a trading I just it's XX% I question,-last flow just last thoughts. EBITDA ways guess put dollar you yield And of cash to the a if multiple basis capital, I my and of of And return to we're at closer. getting about to you're think kind

share then if obviously, share the dividend to using either without the increasing increase liquidity from to great great. But cash it And you, and it's per shares. table That's repurchases free or pay that or are shareholder on may current market a ability standpoint. Now the of share long-term at flow would outlay. valuation, buying be, cash per pound dividends the if I irrelevant whatever [indiscernible] reduces kind reprices

So of your mean, get to what kind could is I just hypothetical this valuation I where point? you time. your once if are relative of to sits point have kind But you at return comments it obviously, do capital of shareholders, that like peers. can't your like you this to thoughts guys in because internal

free a companies. not that our less situated flow Neal There's mentioned opportunity. that of our is part see And of -- as is but that do. the tremendous. because process, that With earlier, multiple cash a lot than thing have companies that -- similarly many have working is multiple basis through we we valuation you And our and we're yield as our on an same that

multiple opportunity way, So to with and I and/or we're that think we would either an strong. that pleased have buy either that really be shares back recovers, shares, retire

at, share that when we'll we mentioned, with things closer. that definitely get that up would we like and plan come you look So

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

Thank quarter your forward and call. again today's support look to you in discuss again, XXXX to November Gigi, you and We talking thank on FET's all for results. early to participation you third

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

disconnect. now may You