U.S. Silica (SLCA) 28 Jul 232023 Q2 Earnings call transcript

Good morning, and welcome to the U.S. Silica Second Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.

pleasure Investor your Relations my Vice Patricia now of President and is to host, introduce Gil, It Sustainability. Please go ahead, ma'am.

good us Executive and Silica's Chief Executive Thank you Vice call today conference President and morning, and Shinn, like the I'd you, our Bryan to call. for Leading joining Officer. quarter Don today Chief second U.S. Officer; Financial are for XXXX earnings everyone. thank Merril, our

forward-looking standard I today. begin, remind like of risks cautionary statements remarks the would and uncertainties. the which Such are made our we Before predictions other you that regarding certain are events and assumptions, projections current to future based nature statements, be expectations of are some which or to of will about on statements forward-looking subject

uncertainties, undertake discussion you forward-looking to our documents statements. For of encourage the press SEC. and the any not with risks these We release we company's complete do duty on and read to any a update file

supplemental provided we've discussion. in section today's materials Investors website Additionally, accompany to on our the

or a we margin, adjusted and may contribution leverage such public to adjusted to measures the as refer Please ratio of press non-GAAP discussions for of contribution net this net to ratio. segment refer today's release call debt segment net filings and call. debt EBITDA, during full and net net reconciliation today's leverage income our EBITDA On margin

Mr. Bryan now would call like over I Shinn. to CEO, turn our to the

flow extinguish we which in good reported operations our quarter, $XX the and adjusted enabled and to serve. morning, the of differentiated quarter, debt. additional strengthen innovative that million meaningful the us and balance and generated robust Patricia Thanks, provide to In We customers to cash EBITDA markets Silica and an from second U.S. everyone. sheet continued products

three, remain growing plus through increasing at three segment; expanding two, as we substantially later our and on new products; In you advanced elements profitability these to differentiated respect materials markets Pigment. the Industrial recent in existing the with rate; strategy, areas business a bit our high-value focused key in our high-margin GDP walk one, our addressable with overall of growth EverWhite progress will executing our call. base such I a

potential ISP record power and year-over-year in increase a and new QX margin The contribution on reduced our was substantial business of with improved costs evident profitability in and margin sales. dollars product growth, pricing, double-digit

across Oil market. we continued our strong performance and In Gas activity financial segment, the oilfield despite lower delivered U.S. completions

to ability pricing volumes sold match quickly up QX. well cost our increased overall held oilfield margin sequentially profit to and during While market were in with our down, demand, ton our the quarter per

during I'm way that quarter. of executed teams the very the our proud

is While we area delivered safety. many excited particularly employee one that I'm outstanding accomplishments about

a our company the performance delivering ever versus our ever on best Our with impressive board safest lower is rate in across performance previous injury to year track achieve XX% XXXX.

Our nobody commitment teams culture live have a by hurt we're credo belief-based gets to to and today. where accountable that our made dedicated safety a all

as we've On and members eight producers Simon an Governance in the largest the Nominating Bates one and CEO independent two directors and Simon Board governance that's recently serve of cement ready-mix to of USA expanding as Argos and total. U.S. announced concrete will as side the of Compensation member the added serves new Committees. in

of Silica experience carbon to chemicals NYSE-listed brings global Sue our to integrated U.S. extensive CFO the expertise. Simon them welcome preservation look industry their will independent a compound. Sue Audit company Jimmi and forward We Board's Smith benefits leading and complement and wood provider Committee. products, of broad Both member and leadership. the and the as Inc., of Koppers an treated wood of Holdings Sue Jimmi Jimmi serve is

Don? detail. discuss will the like turn CFO, in our to our call Don who to more Merril now financial over I'd results

Thanks, good Bryan morning. and

costs we decreased adjusted As higher-value segment Bryan board. decreased margin products total X% supported with adjusted to reported our to prior XX% in company shift lower quarter to a increases the $XXX.X or ISP $X.X million which coupled to by EBITDA, X% X% strong marginally price mentioned, million decreased decreased across by and Compared was million. overall Total EBITDA $XXX.X $X revenue million. sequentially to to and sold million, contribution $XXX.X tons the

depletion to for with and $XX.X to expenses X% a lower reduced million Administrative sold the the spend employee-related $XX.X quarter. quarter. and sequentially expense General volumes lower in decreased X% costs made adjustment second total of decreased sequentially non-recurring overall in driven coupled QX second quarter to by Depreciation, Selling, due the and million amortization in a quarter the in

effective for items. XXXX rate including was quarter tax discrete June XX, XX.X% the Our ended

outstanding second the past the year to to quarter, the This on million of we balance In debt cash impactful reduction total at over excess total outstanding our $XX extinguish XX%. par. our of used an additional million debt debt brings sheet retired in an $XXX

debt the ahead the net trailing ratio our balance end had was our of marks of times, target year-end schedule. health two to EBITDA significantly of the for adjusted sheet quarter, improving At our X.X second what which XX-month been quarters

decrease prior XX% now decreased operating XX% segment to the results. Volumes million $XXX.X of quarter. XX% for X.X and Gas through total our The of SandBox to tons revenue walk Oil Oil quarter. for by the second million decreased segment the delivered reported will first and when segment quarter, to compared and I Gas the a compared loads

since offset by results was volumes SandBox and $XX.X margin decrease loads basis mentioned and XXXX. stable high the fewer reduced partially on million, a which contribution ton quarter-over-quarter driven decreased XX% sand pricing. per above These proppant not this were lower is mix operational costs Segment a as $XX.XX. by Despite to watermark realized

reported quarter when Specialty compared ISP and increase. segment sequential Products a X% the X% tons. for Our the of totaled $XXX.X Industrial revenues segment X,XXX,XXX prior and to increased million, Volumes

the increased million QX highest a $XX.XX, per on was margin of a XX% since contribution level totaled basis basis, $XX.X XXXX. sequential on Segment and which ton

was increase the due sequential ISP and shift to The results price a increases, products the costs. production of higher-value lower in to the benefit segment for

quarter in up XX% Additionally, was the year-over-year. ISP important is second contribution it note to segment that the margin

flow Turning operations from XXX% the statement, working million we of second in efficient increase to cash meaningful quarter, capital. cash during part delivered net flow of driven by a $XX.X sequential the very

$XX.X million second projects, million capital quarter, improvement free we facility the cash growth the During for in primarily invested resulting $XX quarter. ISP of maintenance flow cost of and for

and as earlier. of equivalents the of extinguishment XX, which XXXX, $XX increase $XXX million sequential fees with of company's loan the a As cash mentioned cash the XX%, includes impact associated million June totaled along

available letters of credit. revolver drawn after facility, for under our end quarter $X had allocating credit $XXX At million the $XXX.X with million

Specialty proppant Looking and segment of relative our diverse forward, high with our contracts the our level Oil sticky in and the in confidence in visibility us Industrial coupled the and customer Gas base remainder for XXXX. gives Products customer of segment

plan cash reduce operating this We our year and fund we to cash net while to free direct debt. needs, flow generation our organically to flow capital continue opportunistically growth expect robust we

growth. Our our to on investment maintain current of times effectively the a leverage around levels maintaining that continue is at facilities capital in net with regards we disciplined X.X of ratio through will year. profitable an our to spending, be will emphasis focusing we expectation on With and operating the remainder

investments to and towards continue supported to accelerate returns. our contracts XXXX, $XX our For and capital growth of the by high-end for may spending forecast $XX year million guidance customer capital full projects we million attractive the of

prior SG&A our the M&A-related year-over-year down took supplier Finally, during still approximately forecasted year. place that full year contract the X% and to XX% due is expense expenses XXXX to to be primarily termination

to The X% forecast have become for depletion spending the amortization to full levels given year at down CapEx higher continues expense fully years in assets prior projected XXXX depreciation, flat depreciated. for and be that

be XX%. rate is forecasted for year to Our effective approximately full estimated tax XXXX the

that, with Bryan. call to the I'll turn And over back

and I'd well like to Gas Don. starting number saw the land, Thanks and commodity with the of overall driven rig of over in that prices completions. our review past some the segment. few the the have Lower during quarter, count the now months trends reduction we Oil

count the approximately been proppant peak. from the logistics sequentially, market has demand sand by in reduced Accordingly, for particularly where XX% last-mile frac and Permian, crew declined the

contracted this Given robust offerings, despite our headwind. heavily QX we and in performed well position

market activity Northeast Transportation pricing SandBox and example, the For sequentially and margins proppant expanded resilient. remained in

to sell deploy to select site more in customers that support on just continue sand and solutions additional our a damp new well customers We to moment.

Regarding pricing, that confirm various can held sources and for sand from and customer we've strong QX well base. noted given SandBox contracts and our our pricing up questions speculation and blue-chip

costs across species We a areas to also with market maintain margins took West supply and which recommend U.S. quarter in New Dunes and Service an of announced Sagebrush certain aligning Fish Lizard by Also the the Texas demand. of as listing decision the swift actions to Mexico. Wildlife our endangered affects our chain

we mines, Texas West future of their locations our specifically low our plan to many began to we and when Crane and XXXX, disruption. Lamesa habitat In properties due surveyed risk chose

conduct and an species on surveys We continue operations our is impact there listing. diligence from to and perform routine properties our believe likelihood endangered minimal to of that due

However, disruption. in we constructed areas DSL classified built West for were believe of as many other that Texas mines in the habitat high-risk

it's Texas. endangered species impact overall As may what listing available uncertain such, the in have future capacity West production sand on the

and Oil has Guardian. team finally, called, well a Gas developed filtration And launched offering and new our site

consumables. costs Guardian unwanted of system up prevents and pump patent-pended from increased maintenance time impurities pumps, decreased and other significantly longevity Our in frac entering and pump resulting debris repair increased

pump stages and recent demonstrated have our XXXX. we pump system. day separate a In currently study We a a per build operating to continue units increase Guardian XX% frac and in increase four intervals, basins throughout between in we'll maintenance deploy and case crews running on XX% units

applications. Industrial sales for was improvements, products segment, by reductions our we growth driven year-over-year new profitability new and high-value and to markets price cost In recorded double-digit of that

efforts and reduction programs, contractor We also natural driven numerous plant spend, reduced operational from improved maintenance greater lower efficiency benefited enhanced by gas cost performance, prices.

for and oil year-over-year contribution XX% fiberglass year-over-year, lower noted. Don total particularly margins building economic to softness, were Nonetheless, products, as markets. grew due Volumes mild industrial

developments balance the will in of the with I key a on then third for and year. our outlook quarter our provide finish of now industrial portfolio summary updates and

our at elements growth to our business which are: strategy three base First, As a I GDP on key are successfully mentioned profitability and the we of continue execute increasing segment outset focused plus the ISP rate. at

such fine filtration and diatomaceous existing and growing as substrates. products substantially earth powders high-value ground silica, fillers Second, differentiated high-purity

as such EverWhite high-value materials applications Armor And with third, solar roofing White expanding and our new and markets reflective Pigment cristobalite, of sales advanced materials. addressable

we progress for made new products imported silica materials. QX and including, successfully across materials, displacing further grain building specialized ground and significant whole fronts these developing applications three In

low Growing investments cristobalite given by manufacturer. the demand market Georgia for strong used a growing further throughput panel throughout this share panels and silica which expansion is Millen, our facility and our location solar maximize prominent efficiencies in at expected iron year, to capturing solar domestic

integration diatomaceous the from from Increasing our ERP implemented aggregate and year-end international system, of business today efficiencies insights with export freight improved data X% our significant our price earth up savings non-contracted increases round clay capturing effective two and announcing cost another that newly X. for range products will from XX% September management back-office by systems, of to transportation

our Pigment new markets. as And EverWhite new the significantly finding launch properties, products addressable could unique our our we last qualify benefits finally, our which since market and of quarter, are into additional increase customers products

to to EBITDA. and outlook a in XX% expected quarter with company increased adjusted guidance XX% turn now today on starting annual Let's reaffirmed business We increase from financial an market last our year-over-year results. update of

course, commodity decision, in and in Numerous and of that customer additional results in productivity factors Industrial the this the of half expected were the during the remainder year. XXXX, cost the of of first considered strong across strengthening the visibility we strong outlook our improvements and segment, reported positive a inherent the contracts energy pricing, markets including unpredictability, company in

remain levels anticipate we'll our and robust the million about ratio continue We of times XXXX. to flow year leverage as to Don earlier, current also cash net we through X.X that free this remainder of of mentioned associated generate $XXX expect around

earnings commodity with Our and Oil proppant constructive the prices and cycle, generating and meaningful to expectations and logistics. for multiyear positioned Gas well demand last-mile cash strong remains current continue energy segment for to strong flow

XX% counts, activity, maintaining discipline in capacity rig decline we of and strong short-term for commitments production quarter current third the sand our are causing frac for contractual some committed Despite continue to softness crew over in land this with have and year. pricing

cost peak since attractively reducing structure. million and annual the through raised and market in Gas responsiveness we Also, maximize have our cost earnings over a flexibility down and fixed for sacrificing in have segment by $XX cycle market. improving segment to this our on our without by floor pandemic Oil the actions upside the earnings the the positioned These of

while operations pricing to running efficiently executing the and preserving continue focus margins on our We now competition. and

to quarter, crew roughly XX% sales count. due third will the in we proppant down be sequentially the For expect reduction that frac volumes

and pricing will mix. that We sales dollars also by relatively margin influenced contribution our stable with believe realized be product basin customer, total

year we track still believe and record are with strong advantaged commitments, the a due We position in and that expect of to offering. finish historically of contractual last-mile strength an the our execution SandBox to efficient two quarters logistics strong

Moving believe due profitability double-digit positioned to serve. year-over-year that segment, and to we in our to and Products are achieve XXXX Industrial Specialty that the diverse end markets we well growth strong we

addition, In investments structural in cost development. we're from and benefits reductions increases realizing product price

weakness. that expect coupled with efforts near-term investments in offset potential these domestic customer to any market We manufacturing

customers maintenance Regarding volumes projects QX, on years after unlike a year-over-year decline high at slightly certain several of basis, demand. may

to to of due improved products ongoing and to on dollars margin improvements increase in basis value year-over-year higher a a However, X% we operational mix efficiencies. pricing, expect beneficial X% contribution

second recap, pricing in implementing to in optimization enterprise. and cash through secure oil and price to efforts and the maintaining quarter, gas we ISP, flow across future continued during the visibility swift efficiency So discipline increases cost

our extinguishment cash of Specialty our the ratio of ahead quarters, We and our of sheet debt. Furthermore, invested meaningful also the the Products year plan company two in segment. strengthened additional net target balance we to growth and achieved Industrial for further generated flow and leverage

strong flow. These are unlock sheet value cash and strategic positioning for transformational to free our the pathways with well growth for the company Silica can successes help improved and create balance U.S. expected future

open questions. for please the operator, lines with And will you that,

gentlemen, and from Please now [Operator ahead. be comes first will conducting question-and-answer a question Stephen go Gengaro Instructions] session. with we Ladies Stifel. Our

Thanks. Good morning, everybody.

Good morning, Stephen.

couple a me. for So,

-- start Just ISP. I with maybe guess

Can next bit over quarters? normal kind little relative You you what's that mentioned of quarter. the talk stickiness just strong the the a of mix of mix about second in to the couple shift seasonality

Stephen. Sure

we some increase what products get year in and as in think newer come our earth continued out silicas the online hopefully the think a look of beyond, to market. of to continue starting seen bit products value some of we've that specialized or diatomaceous ahead we'll in I of So, move and the direction. more is of some a for traction higher and the And our I remainder

pretty where there. I feel headed So good about we're

the mix XQ me, periods just to headwind. Is XQ? the where that more have And a of -- year remind there's and you tend

little that QX mix be mix business be and our we of lighter. given to to We're think And materials. and through. that more seeing entirely XQ trends perhaps QX might accurate come in typically I So, what margin, historical see heavier. not tend we're continuing higher in more higher of advanced is those to a the kind XQ are bit -- the level terms shift of higher

mix of So traditional the I evolving the think be kind how throughout we'll of expectations might year. versus shift

what some the and Okay. there's And there. then kind of mean has done. I Oil been the we've on seen spot Gas softness all front, market

around price When of any that that your committed volumes XX% volume, levers volumes there this sand on around that like can your volumes And customers year, just third lower sticky? you that give activity. have is committed XXXX? the or color the into quarter what are going are mentioned look pretty about your You you us talk

Sure.

are that what the of of pretty today, is are terms I pricing and sticky our there. in locked margins very So, contracts think fixed most we and have in

also good sort have penalty of I minimum of volume about So, that. clauses. our other or feel Most contracts commitments,

good we're I shape So there. think in very

today. have As of mentioned, our contracts those we XX% under long-term capacity we

XXXX. XX%, and come having secure at quite somewhere us to capacity next and want year, customers our XX% to think already we're volumes to frankly, of between I for already contracted we're

as will evolve the just but last seen we that to about general, I around talk most perhaps, seeing I XXXX, kind customers may that not same better of how QX. trends kind customers, the pretty of for the are optimistic than of years to in if starting we've And where the bullish we're things to QX QX, kind also customers back of we'll of the to see think a holidays line zone, last-mile logistics ground would obviously, things they're fairly you the a fresh year. in of half so us kind talk the up we be couple with dead early of wanted pumping used work which resources things and throughout rest prepared say, being XXXX. in running with and to pressure also, the to proppant of hit get budget

more. I one if in And Great. could slip

you manufacture tell little with either rent service themselves? other complementary is out? You compete is it? what that companies products -- companies or can own like, you is Like frac Is it that a bit mentioned, then or is product it about a us and Guardian that something Guardian exactly

interesting prepared of from patents point you objects a So, it's there relatively would point equipment frac stream it's at mentioned, piece the but passing as And through that system we're and think gets really is we a through remarks. all filtration going and finding with that's we to it as think have a preventing clean, things it's happened essentially, it really that very invented, pending kind that something at I of this to that getting pumps. foreign not. be of before I the -- and effective to it a my in what that, would And

We've and fish my out snakes. plastic, basically wood, filtered rocks, is favorite

material things going that hole So And there's up down that through of the well. goes pumps. all end kinds all as ultimately,

approximately for seeing time improvements the what prepared day. pump running, terms where per pump pumping there's in sort we between that there's intervals. maintenance pumped more we're big out additional have a this, pumps stages of of less day, stages this XX% downtime about per and we're aspect because remarks, mentioned to And XX% I so seeing in really

Every this for kind of can the we love more how has faster. come we request it put customers thing. So a out get back, time trial, or

and this think rental grow this over the And next couple point, model. is it years. excited really So, at we're equipment we'll an about I this of

but off still exactly, on and to start we're to value, figuring it's that very working maximize it. out So, how a interesting for

for you the color. Thank Excellent.

Thanks, Stephen.

Thank you.

comes the ahead. Barclays. question Please next go of Podhaizer line Derek Our from with

morning, guys. good Hi,

morning, Good Derek.

the it on dry both is or follow-up sounds pretty wet It quick that interesting. a the Just for system. and sand, wet sand? for Is just Guardian

challenges in wet additional of both. could the It's But, things there. in probably be there's for of that nature and impurities given terms kind of sand,

coming it I start of got sand, wet lot in with what of entree interested as There's like lot of the sand -- kinds bringing the snakes it is lot of found fish, the they issues, But this. kind on use they the and So the there. old think dry all tanks were customers in is that out jobs, a and that there a then what's of a in other it water. And water things. to things

So, of where now, of problem solution have I problem right we're is because that they doing have. a out there. the situations they the kind And great feel of a they're for these like one realizing, work is this what we're industry, the that realizing

it. That's helpful. Got

that dollar color what a or either down talked margin about from Oil being contribution perspective about XX%. you perspective? around, Any for should we So know Gas, ton contribution think guide and per a the margin I volumes profitability

much look really in much when stable is I our it's be good going The and either. as relatively moved QX is I think going be an think think to QX way. to underlying about move think on don't it tend this kind down I pricing of will I Volumes said, basis, move you news So, we XX%. in of didn't pricing hasn't to that,

So, certainly that's news. good

of probably. we've margin job I'm come interesting. friction there'll we decline go but so, couple couple into the a volumes of or there we'll additional the see some down, point out cost really done on on have. happy that good of over more – cost, because it's pretty be cost detail to extra As probably taking a years the either that, last variabilizing But

buy terms grades in the how mix basin always then is the that will and they be what unknown the buy. exactly, volumes the of, then big by And much which is customers,

a card. that's So wild always

cost So a that top we'll could small of see. kind friction be of on volume, that and or minus plus amounts the of

are fees and going trying XXXX. That's shortfall Got see the spot helpful. it. the you Are that's volumes through volumes contracted by you into economic EBITDA your your I'm contracted that support weakening. just between spot some to customers, some hearing interplay just decision. talk the the Can perhaps market we're seeing market out you the to like and targets an your system about on of pricing help forego there based may for that come about gauge, some obviously,

Permian been would kind just So, back market if say, has believe I disciplined. of take step in first, the I a I pretty sand overall particularly the

bit see so there discipline terms where we that. prices And any there pricing. frankly, we are haven't or it's of participated But to some than quarter quite of are Certainly, that great spot out lower little ago. that a in two a were in

to buy today is, our the you we higher thrown prices the Given value much what standpoint is that customers of a are premium market" part "spot around and locations. where if want tons price the logistics some offerings, than of that from from are there of us in have and at spot terms numbers of

command a can price we premium So there.

that. So pretty about I feel good

or And just direction. gotten that in this well than the or that question point. We mile shortfall that it we into Stephen's buying believe environment pretty near end think having large And to earlier any of have to headed anywhere darn like I to in things customers non-performance we're fees are the year an see here could and given discussions with pretty oil supply and price living we response any of that and their supply and contracts could even seems tighten fees that. proppant Customers been other up logistics direction mentioned haven't as kind quickly. by I up last improving more

news good there. So it's all

difficult for conversations have just just think challenged around the on for have Okay. completion they I as given you update contracted give so and I become they can weakening mean us you're around -- me. an as contracting That's at maybe market? to further last that? one just then Can just And you activity or And spot more far your XXXX the been XX% just -- good pressures hear.

between we today we're that consistency XX% going constructive. right who able the to think things really high-capacity quality, we our and be the I customers operations, So that they've having I to Permian those appreciate XX% enough now go out we're XXXX. some extensions fracs lot of ability especially need the the on in to deal like and complete with somewhere sand feel with additional are contract most are the conversations And other been fracs supply and sand coming. particularly customers have simul that we of and the of provide there through of in that a the to to service these

pricing around a from frankly. customers pushback we lot gotten haven't of quite So

cycles some signing to and through the been. that the And I realistic of off days want is for going is that high would already we've they think looking what And the contracts tried price. and sign zone got supplier they're a And and a not fair who's early in be did prices. in past that sand. to we're where that's in we reasonable kind that we offering I the of hold say of all better frac service at contracts unrealistically and are

having about So again good I discussions the that customer today. we're feel

all back. turn it I’ll the Great. color. Appreciate

Thanks, Derek.

you. Thank

of go the from comes Daniel Daniel question ahead. next Please John line Energy with Our Partners.

morning. Good Hey.

Good morning, John.

highlight when the problem the data are to on better way I'm that guys So the you system, internal able perspective? the deploy of, is the use are you ones to, of you Guardian an track which there children, are could that a sand? mines the source And sort mines which marketing curious from

know track don't sand only SandBox system. our those is on from is when times the we we sites. The coming in it's exactly where that So

somewhat also we So products. -- disclose know it I up But be like don't no to us you to information to the mines or think that to But around frequently we something track would go inappropriate competitors' use for frequently that. quality pick anything we as whatever.

It that to would cool know be Fair enough. though. data

Okay.

On the Yes. lizard.

story whole yes. Well, is a another lizard

Yes. scares? a XXXX come expect if has realistically would lizard Look but for interest to into curious perhaps in XXXX of restrictions play? not And -- contracting been lizard I'm lizard you driven -- any the I'm inbound when by expert,

about because felt press XXXX that stated mines the we lizard that to selected Permian in release specifically of sort back low have seen might questions we've about all in of issued early of in on they some fascinating. and there talking on properties a habitation we've And focused thought went kind actually imagine of Texas. we seen we risk our mindset new We we the around lot in our locations that. and this you as this were the we for I areas and were Permian Well it's as customer in of population

So we made thoughtfully choices. very those

areas. competitors mines some folks high-risk there the I some today out that think and started of of up are our operations in habitat of kind running

a as with think, review be place efficient here well forward. And comment always September of service assuming kind decides public lot how window belief these wildlife of our X hearings ends take a legal play that out. and this may all would it XX-day probably there'll of hearings to take might my kind Then take So this requested. is if the maneuverings where we'll And there's time and approximately understanding. that be to of things XX-month some There a now I see we're Realistically, plays in period that out. from held comments. right

I the what Can high risk, percent risk the there ballpark out haven't Okay. is are would areas And can mines you me look be there areas? remind high-risk I in low that remind you to back day used in because nice charts the looked recently. and at

Yes.

as percentage the So few. But head. off of west further I you the it's top in a go have quite bit little a the exact don't my Midland.

past edge there's maps. I've maps than western from least in of lot more out at north of area the set of there, one than south So of the map area is kind one more that the seen some habitat Midland the that in a of

So thing very kind kind -- of always and of is this controversial.

say if that anything survey do to I can disturbing. routinely understand try there's trapping But and try just out at sites and we that our we to may be there

because And and were makes with. the completely risk that been begin zones so have low to sites in far sense they free

Okay. declined as Oil for the us a Gas can QX the were and one the is first? for QX recovery see you greatest the if if where in me about you think rank sort on percentage And expectations QX you of geographies you declines for then coming just And which final could? and

So most declines a I of that you in but more we've of volume, as the might think are than that's different. given XX% from standpoint expect very basins Permian some the volume seen our

So Northeast things actually have we growth the in strong in some quite the and Northeast. saw stayed

like I isolated. basin So somewhat more feel that is

we'll Permian my And than coming To here. that have factor as early me hope the people see faster as is always we bit expected. a a to mid-QX start is get to swing into there perhaps things back

stays price constructive. oil that Assuming

Sure.

somewhere topping constructive. but think with Bank where America of that and I was a less expected about go big out are and obviously still pretty prices Oil XX yesterday that WTI know talking than Brent I piece to

we pass things So faster to than could if understanding perhaps back those, based our come discussions on think I think. activity people with and customers kind see of, some come

you Thank for very all taking my much Okay. questions.

John. Thanks,

you. Thank

for over would the Bryan closing hand further no to I to like now comments. questions, are Shinn there As conference

Thank you operator. much, very

for As other flow deliver we segments remain we that in we our industry-leading further and and balance our market shareholders substantial strengthening capital believe visibility discipline, confident will value our cash sheet business strategy our free and and stakeholders. to commitment look ahead

and safe the Thank well. for stay today on again speaking look call joining forward with we you next and again Everyone quarter. be us to all you

The sir. has conference you, Silica Thank concluded. you participation. Thank of for U.S. now your

now You may disconnect your lines.