ProFrac Holding (ACDC) 12 Nov 222022 Q3 Earnings call transcript

Greetings and welcome to the ProFrac Holding Corp's 2022 Third Quarter Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It's now my pleasure to introduce your host, Rick Black with Investor Relations. Thank you, Rick, you may begin.

Thank you, operator, and good morning, everyone. us review Holding third joining and conference you to webcast quarter appreciate for Corp's ProFrac call We XXXX results. are Lance Officer; today Chief Operating me Matt Chairman; Executive With Ladd Officer. Executive Officer; Coy Turner, and Financial Chief Randle, Chief Wilks, Wilks,

remarks, commentary the Following of management financial provide and quarter third outlook. will highlights high-level my on the

those therefore pfholdingscorp.com, be as website may views the that opening contingencies. call management results, performance, earnings management's no statements transcript information reported These up that or on you're performance. information today risks as statements the on to be recording ProFrac's be meaning today's future other Flotek. and of may figures this replay in and by listening Form November the the could as contribution exclude which any on More to accurate webcast and actual to will SEC filings XX, those of measures, including time-sensitive as this or replay the note reader advised Before call tab read found contain Federal adjusted Securities information cause risks today, on to contingencies well also non-GAAP as sec.gov with call forward-looking only and company's expressed uncertainties is call any section filings longer Securities the the the can speaks as other the available until Also Commission laws, financial comments financial certain expectations at from or of is on comments of also management's replay listener States performance. of and under company's or website a and company's in XX-Q forward-looking to business include The Please included and telephonic time Investor achievements access of Relations and your understand guarantees Various questions, at reading. the well differ reflect features of the of of available forward-looking United XXXX. the release. XXXX, statements. not current there these November encouraged how ProFrac's are within uncertainties materially The and to Exchange XX,

ProFrac's reconciliations website. release are Mr. Additional to details that can Ladd and and most earnings turn found Officer, comparable to Wilks. quarterly be And directly over the yesterday, would I press issued financial Executive in now like consolidated to the was Chief the also company's Ladd? GAAP on the included measures which call

we begin, I completed Thank of Family. the We Clean I'd to Fleet how we the and to and excited you, U.S. Rick. scale To believe I represents capabilities as along like wanted Well of acquisition technology have the Services. costs ticker to and team we fracturing of the having their provider excited reducing the industry largest communicate leverage Services commitment to we are market not that wanted in to our the electric a investors closing to of Well in world. U.S. strategy And but to changing symbol ACDC by strong an acquisition, minimizing only to are tracking welcome the our say leader e-fleets, ESG fuel future ProFrac electric the also our am emissions. after with services

ticker think the we addition, is cool. just really In

field and pleased month. Included deployed tests fully report fleet. acquired deployment electric. internally of We're which was the So initial as X fleets are in performed have is of and electric today, fleets, after active ProFrac's manufactured this to its the fleet count this of this in we fleet extremely that first XX factoring well in customer

reliably a high with impressed fleets. very have to consistently and They electric technical demonstrated pump these high by the We ability fluctuation. the continue little of at to pressure be performance rate,

fleet as are revenue look forward cleaner burning this given Just XXX% natural the and first and e-fleets the profitability quarter. fourth of cheaper to gas. We the significant important, the half generating back the economics unmatched use in

and closer e-fleets Going value to are maintenance to the our believe after fleets other we and expect profitability the profitability improvements, higher opportunities, bundling the fleets smaller we their customer. that to synergies, the Well in to the generate are we rates, In brought due meantime, U.S. needs, footprint, market focused Services term. of improve on proposition and strategies lower near cost tremendous will efficiency on select forward

XX means, under closing for ProFrac. early have the these those of XXXX, the working expect to complete throughput which construction. we and which to Well full e-fleets clients a With U.S. to looking the deployment time Reoptimization now at not fleets e-fleets maximize remains additional We're four add of by our have goal, profitability primary we're the and operation but we and just fleets acquisition, fleets. expect active for to of in fleets

our the accelerated to X program as addition progressed. year Tier upgrade we've under construction, fuel fleets electric the In has dual

Our fleets ahead electric industry. benefits goal we to to customers and our of to and offer type that the stay incredible is and equipment X future customer Tier represent relates demand it as our believe of dual fuel

sequential quarter. I'm adjusted XX% increase Now a to we to proud in that metrics third want highlight in quarter. leading the to the several extremely I from for key growth revenue, sequential report EBITDA XX% achieved third

during data-driven and higher is the move continued Excluding our the results are in activities, chain, $XX XX% in these and other million the rose in running the three see best profitability second continued control adjusted excluding adjusted $XX suppliers on industry per our per activities our fleet, driving equipment EBITDA great. $XX.X of believe our a million that makes industry-leading quarter QX highlight Annualized the to million that from increased every pricing, aspect QX. We company, customers, Pricing industry, our approach. $XXX focused million to it the the critical areas the team best ability truly to other we to product and to with in I utilization. believe important business fleet incredible momentum million business EBITDA in to $XXX quarter. from supply

constantly with home drive initiatives. creates Our that each ESG for and commercial team our their customers ProFrac of to the production value return works

In in chain it pricing, MPT pad. chemicals, by on always we represents more believe customers' logistics our largest incremental believe risk as budget to topline provide we this the services can efficiently from saw supply sand, addition materials priority and and opportunity a to single a expansion further of ProFrac share Vertical integration We've of we storage, bundling for in our provided more of provider XXXX. increased used complicated ProFrac. the aimed manage to us as capture allows as completions reduce the and we growth is

fleets sand number and the end of During the made the we of we By of quarter, XX% chemistry. quarter, we third XX% the that progress materials. bundling great pumped approximately are third the were the expanding of providing

Looking the have the forward, we primary believe proximity we for advantages our cost and customers. supply, the to choice become

that executing maximizing teams commercial and excited filling times, per factor minute more results of to we for the fleet, October pump reduce the these single is from optimal trends goal We calendar, our of important highest operations do and downtime. in ProFrac the The forward. see what team pump moving keeping were These QX everyone et posted our team equipment equally days day, move company in the and utilization. pad utilization shape reduce more level hours to cetera. continued It's on is on I'm able of focused every at hours, Another in strengths on terms teams our pumping focused pumping in maintenance per because to can in of hours. to

I increased industry. technology customers. remains across sold the as to next-generation technology. demand we're This for newer out fleet summary Lastly, equipment fleets customers from very appreciate seeing including a Demand for benefits remains of strong all types, want economic provide the of what pumping our

some XXXX contracted quarter is all as QX strong. a end are due around pricing the the of level and typically a fourth don't we levels comes equipment into Overall, for As of remained efficiency the budget with We quarter. pipeline and expect of this materialize with look work third carrying holidays into year, and completed possibility efficiency record types the exhaustion we very constructive XXXX. Well, weather. inclement quarter utilization and result, to our fourth book uncertainty year to

is the call we've hand will current seen to Our over the industry. this strongest in and provide now calendar I XX some he'll years our Lance, in financials. on comments

$XX.X we We in basis, revenue XX fleets. in to We're that was second compared when million pricing, excluding expenses. adjusted in average When $XX Ladd. a of and during you, to a or the third quarter million the fleet efficiencies flat pleased activity $X.X income these activities the third was the and a quarter. for was quarter. administrative in quarter. resulted higher million really area constant in improvements second from share quarter the million On million due $XXX approximately million $XXX and nearly improvement Adjusted sales, only the million, which the Flotek, remained count full partial of totaled general, EBITDA Earnings driven our primarily million to business and for higher during Thank had revenue second Flotek compared on $XX.X up third every A Net to compared $X.X announce consolidated quarter annualized material saw SG&A of Flotek from other to million per excluding $XX fleets was relatively transaction-related quarter prior $XXX The costs was prior $XXX quarter. the compensation, the increase The EBITDA a loss Class million EBITDA improved or quarter $X.XX. results. related per having Fleet at Flotek, was the increased items, Selling, the quarter. an results and for represents XX% quarter. quarter. of increased the excluding progress made by attributable Flotek. XX% basis This stock-based quarter to in to the our totaled included the

$XXX EBITDA in quarter, the million up compared the generated the Turning business $XXX stimulation million prior third quarter. for services Adjusted stimulation to second of $XXX XX% from services was our in segment million to segments, revenues quarter.

Monahans profitability the Approximately, represents average in the was second were mentioned, million mix the largely sales amount driven generated quarter. generated quarter. by equipment. first and XX% segment downtime for million previous during intercompany acquired to increased full to of the $XX this to The offset million was As utilization environment. for Adjusted the from manufacturing our lower this segment acquired of XX% the sand quarter. $XX second of manufacturing price million, $X.X increased a excluding raw for current negative driven down to increase the was of quarter, $XX due primarily the the XX% throughput to segment $XXX from pricing, slightly revenue segment. was on Capital EBITDA. Adjusted the our in products maintenance of for are the $XX.X and newly quarter, intercompany ProFrac capital an were pressures quarter of acquisition-related the activities, to segment the program of initiatives by our utilization second in quarter this activity continued various newly of from up up increased quarter. results. quarter, by of reduced of was quarter. which This services adjusted Approximately, greater CapEx second The generated ton. of lower quarter $X.X quarter The the segment's as quarter Flotek segment segment EBITDA revenues by primary the per underway was adapt its $X.X the drivers product Approximately, in of XX% we by prior third and services customer third million, materials was $XX Other driven support The from expenditures the in This million Sand revenues down activity current our business of increase stimulation growth a which quarter million provided million revenues from XX% selling and Flotek provided related that the the XX% materials quarter, of primarily a represents underlying CapEx. Proppant driven Production These consolidated during Mine. continue reduction partial in increased Proppant contribution million fleets. Monahans cost of Mine. Production the Sand mines compared in from were the intercompany EBITDA

profit-generating outlined number We expect we previously, our continue of budget which between be of to $XXX full and a year and million, our and initiatives have CapEx growth-related fleet. to pumping hours an improve have maintenance million will considered XX% which reflects The will of range on our we potential. our $XXX acceleration to increase capital think

continue Tier upgrade previously X increased as to XX X converting upgrading the level per to year Tier engines program progressed, to five accelerate and were to have engines. engine to engines We XX month our month. engines We that DGB more per XX

this cost We for million. full-year initiative to expect approximately the be $XX

to deploying of fleets believe in to requesting the the first expect approximately value our see first to cost more we technology. After three this customers continue million. We construction and proposition electric our this customers $XX fleet,

approximately should We $XX expect and early at expected sand third in are the and to at a come cost XX% The a to complete fleet million. as be on over XXXX. operational three and to fleets in deploy beginning second these plant the of December Lamesa group of construct is

a number of be returned waiting and equipment to swing help to program quicker pump our to ensure for establishing allow service We more approximately for the month. and $XX fleets are also maintenance equipment reducing in per to hours robust million continues investing

debt Turning to cash flow. now and

higher we higher of do and and quarter liquidity $XX during issued capital higher cash million of the U.S. operations. rest liquidity. flow Well Excluding Service $XXX we October with anticipation Operating Flotek stockholders as cash in the efficiency. $XXX our we Services $XXX business the million cash $XXX ABL. ability the approximately was and XX.X expenses. had million to approximately on to our the on amounts impacted Subsequent Service and the of in ended XX, second majority of ABL use due principal used cash U.S. while Well for The acquired. approximately not million third in we in the the exclude to talk $XXX which their results by When was their this X. used other of transaction, to debt we and do $XXX we with closing million In outstanding the million because quarter, draw November about attributable of have U.S. attributable working connection and outstanding Cash to liquidity, Well quarter liquidity build fees transaction-related consolidate materials, activities, million we the was of shares to pricing, other net includes million we retirement debt in or

debt this approximately outstanding. million $XXX as we part In equipment-related expect of assumed addition, have and we approximately this have in XXX shares transaction. After to $XX million financing approximately transaction, million in net

we remain look into the as As quarter, Ladd pricing mentioned, fourth continues to strong.

operations. Services call fleet our like higher Well That the levels per-fleet our we incorporate fluctuations our we acquisition, being As to Service incremental the improvement started fleets November acquired quarter is in we into efficiency fleets the metrics. count Activity expect opaque. third we as into to said, with but visibility Matt. the December U.S. Well revenue the and turn I'd add importantly and U.S. expect have strong, profitability to in now more some levels over

that we company's our to to the with as pleased extremely our continue operational improved commitment growth success. I industry I'm the the continues are Lance. efficiencies in generate believe the and business. are employees our and you, financial to best Thank scale hard and key work

bottlenecked. in Our limited the horsepower is view services believe and where U.S. we is macro current and of pumping for are pressure bullish the of positioned field frac horsepower supply oil remained incremental extremely market, we well environment

ago. completely are supply and need months for more enhance lasting growth our most upgrade it its scale IPO have capacity. changed. two-pronged new This to the we about speaking of on and for fleets significant our in out, the sold footprints marketplace been just to The and Our of since legacy and was side strategy the have all of have limited through upgrading side. competitors existing On returns demonstrating retire a is even six on capital momentum, is is stakeholders. ability and generate potential that, operation with chain expensive maintaining top remains not strained the replace that equipment acquire integration strong gathering build Many extremely and dynamics vertical than

link Taken this great and will there together, in confidence continue a throughout. is margin of that cycle these deal left dynamics bolster our expansion

together we've the in the scale have In continue past the sand we U.S. to backdrop reiterate acquiring this believe operations we and U.S. only the last for that team what excited quarter, lasting time. of acquisition and not Texas the to see we forces. joined and just I now created acquiring West have we Monahans scope of six this the our company like that acquisition, Well the U.S. grown but since build we can seen We is because am best services. industry for I Well Well now quite because of started would shell of months, the the business by that tremendously some how FTSI,

acquisitions, did show previous positive immediately with over forward and potential. after as each with next its reporting U.S. this true The visited of we closing few results acquisition feedback As we overwhelmingly to customers. quarters Well's to the our starts I look was

come Well materials. the structure, profit with practices, Our will but improved advantage, to and prices fleet goal customers to include is existing U.S. increased that profitability contracts, bring This XXXX. the cost best constraints the of manufacturing adjust cost pricing applying also within closer within from our to ability in-house will bundle to working to fleets our market

The would outlook. our touch other thing I to on like expenditure is capital

our mentioned, we to allocated Lance more As capital equipment.

earning can from ever is results, you than our see equipment more our more and As pumping before.

our to allocating ensure risk that environment. reduce do capital to priority are customers first for in we Our this of downtime the more is and we

reducing and maintenance equipment is has being group that amount investments the a in to at that cycle. hard these non-recurring. establishing time as We work maintenance see reduce upgrading been program engines, maintenance Our swing of

highest is from heavily to for. invested that of we up maintenance status has component failure industry-leading will the point approximately a currently the program establish back known equipment example takes XX% we're maintenance. that it of allowed a and some it because reduce in - amount investment is Our us during X% pumping amount our the pump a increase from return the time equipment have is One is in allows maintenance speed the to that capacity not industry's have levels we This pumping. us it currently in. that pricing We the downtime and maintenance reduce efficiency the at reduce the expenses and this probably to to continue to in that time levels of a has swing we favorable stage is is allows quarter equipment in investment to think XX% X% And level on of seen environment. this in environment. the This

The and the U.S. We expect this Well can us dividends QX to it into Ultimately, driving pay also addition for look fleets. it's like NASCAR course of race. and This helps the mechanical a prepare of over XXXX. predictable I be the failures our track and really crew off and edge track, reduce on the maintenance from fastest having shave ability and downtime to hours comes consistent, time we're days pit therefore cycle. to invest from your at to increased by willing and the

primarily on expansion, for of sand the frac entire the concentrate power customers, as for the allows can expand our customers By to ability fleets. arrangement, their materials to our reseller profit of much providing major future services to When for expand and and one and acquired. incremental which we're U.S. key the a Continuing value a and us just one we our potential integration customers. of are our only to fleet. priorities the those EBITDA our create control is were the value-added the opportunity fleets acquired just in the more number Well As we chain supply as the providing sand we to meaningful also of opportunities mentioned to running presents think add our we call, of mine unbundled earnings last our not fleets for incremental that vertical we as fleets of FTSI, each to

In entire vendors. opportunity about providing that and materials could think that logistics - in only our it to that will those sand be per-ton continue an metric. higher will we also chain a mine availability. on sourcing in opportunity customers sand to double-digit are not from margins conversion XX% This sourcing We see a efficiencies what a strategically large in the increase to our we terms CapEx inefficiencies XX% and of supply basis. Texas, lower we West a sand profitability only significantly the of see of paying per With our an strategy a quality sand considerably. and can our believe result to we for on logistics mentioned, mines to industry-leading are cash we our materials of industry believe level, Ladd just represent while fleet trucking savings in needs due logistical fleet increasing a I offering both of through struggling above As variety to the recent per-fleet located I that customers improve already basis our pump acquisition,

November and our proven third be very an to in to of late regard sand in expect is growth based forward initiatives, for strict transaction maximize to strategy to committed on considered and demonstrating to our next our value what assets. the remain is the With criteria We fully generation. that step we accretive acquisition look operational I those mine cash

being potential and on one to A utilization overall debt supply EBITDA. is and integration We X.X all our financial about our biggest enhancing our we We at custody is below believe our chain technical of as driver track that fleets. and third leverage are leverage. key target thoughtful quarter, the strategy put of the to of on extremely having to under At we turn vertical our we and same maintain control profitability acquisitions remain of will microscope. one within our of is continue the state drivers continually

I even to I'd retire, our bullish industry the we we acquire, reiterate for to now questions, open to integration with more an so to plan redefine as questions. to call your possible And take on operator are we the and to will that ProFrac your execute and is what Before continue continue that, field our on services turn the vertical on like of to oil replace, call We company. the strategies. future

Matt, a men today country. Day, and that all with would just gratitude women second, express to wait to have I this Hi, my like Veterans the being served

with here the and them, many get they wanted at of they and veterans work every and thank just special to ProFrac have you service. will the Thank opportunity thank so ahead shaped for I you ProFrac, operator. say industry We your to to one a shape you. Yes, go

Ladd. for saying Thanks that

[Operator of Instructions] Gengaro Our first proceed question Please comes questions. from your Stifel. Stephen with the line with

Thank everybody. you and good morning,

of which timing some we of into So first two sense the us assets, near about the the talking Well who and can it's life separate the for people suffered I but still a about or existing market, ProFrac drag a I were it's - I rolling? assets, stayed around making is and things in me, seasonality think the U.S. they and $XX of terms under-absorption for we its you place are a stock active under also know but million fleets, than less built how seven obviously should delivery, end give your for because those from per overhead then we've think covering company fleet are clearly that the are but assets EBITDA contract sort the seemed of e-fleets think lot the as a Service for few of we

looking to would KPIs, Yes, that per somewhere fleet expect way we the I XX% to where our answer to is individual best fleet. at across dilution from entire think XX% the see

expect the carry on in that's that was rate phenomenal QX, However, in of well addition exit as legacy when what bundled you at ProFrac have additional been with deployed and new QX we e-fleet see we the the and look fleets. to as our

to So that QX quarter over for I a think us be QX. is phenomenal going

on need to that a metrics. dilution see per-fleet we However, you will Well integrate our U.S. as highlight slight we

with to when However, we're look acquisitions, the excited and work integrate customers. these our to about in very pride we opportunity ourselves our ability new we quickly at

below you before plus ones, months be If the new the fleet you at surprised XQ were in XX all was in XXXX just you working, syncing reported? per if fleets of the EBITDA would what

that again? Can you ask

this fleet EBITDA be and new in XX just wasn't you the you per fleet Your XQ it's equal place you're to per surprised results, would from in sitting did? you here fleets XXXX what if assets these quarter, have your you months now if and and EBITDA fold

would be I not surprised.

right. Okay,

final one you have mean guys been Just I one, acquisitive...

to that clarify of not if surprised Just kind to question, I that's equal loaded it's a greater. be or would

I Okay. was hoping clear you I that. would, but just

strategy is things kinds be talk you you the very to other can to franchise? so positive be far, obviously looking out acquisition the there the Your proven of ProFrac could about that the you're things at, value-enhancing fleets or think

see we it through a bringing as like us won't operational right needs to we equipment When business. have the higher and pressure from right our in everything that in synergies, on look these doesn't fits and at commercial and accretive that vertical critical pumping don't incredibly we're we we that that looking on, puzzle but allows do the integration immediate to into So a better or that's transaction whether assets, fit we're up overall or the in highly be whether fleets. something watch place, we market, contribution just try piece a to stay supply with we execute margin across at performance bundling what's going chain of

you Thank you. details. the thank Okay, for

Thank you.

you. Thank

your Our with of questions. proceed from next line Kutz Please Stanley. Dan Morgan question the with comes

good Hi, everyone. morning, thanks,

a out Services If hear do buybacks we float shareholder returns, more some been has would on I shareholder contemplated probably seems to any wanted latest but on is the your there, strategy? strategy you point, latest there it could is that messaged is your what dividend thoughts just is, but attractive thinking ask you appreciate just latest guys guys acquisition, So is what most so like wondering that with have Well wondering if just be at there your return U.S. there

liquidity we that have just make we because very see any high float want look a sure that our provides for. so to to expect quality the Certainly, don't we buybacks that shareholders

well, this how exceptionally as that far and to shareholder or we to what so material the interests look, expect better and so controlled And stakeholders return much is do capital rightsizing a we just in continue that, would perform increase and to on way that able sooner way. At is per-asset exceptional only being scaling the basis. everybody a generating those recognizes can course, total hope results that guidance that As a more the us appreciates time, company can't integration continued quicker returns is along a in we we of to that aligns allow vertical lines, to and about returns, everything than later. guidance we on this the provide it business,

And This this that so deliver can in have providing we to that expanding business cash commitment and further return this forward the so all then to that it organization distributable near our with we about future. and is very we stakeholders. flow look is with respect, high a guidance the

illustrative to the sense. economics, slide putting costs, on I Great, - wanted with respect get you're out in and an between we fleets which the diesel to of actually you think of fleet the on a that transition a to lot different is ask that out kind just that all kind extent of bit you be kind something of especially fleets ask of those disparity more? example kind and or and still seeing electric earnings guys actually And if you're fuel is just appreciate - a needs to the that process of to illustration on wanted power of that you kind before dual then of of that the or market, kind fully the makes just in what of Tiers - little wondering to outlining fuel expand take thoughts the could kind is me, fleet, four there's apply the to, materialize can market, highlighting realized that's I

increasingly the arbitrage to one going to it factors I'm that provide they commercially specific on decisions. decision our as Certainly, way with diesel how all of total it's that customers making when as to a well that and fleet gas of they any it's treat the calculus, the make make and that increased, part continues of their they the their to increasingly really vendors plan on and is has only they're have those part how in not the savings decisions the a only and and natural between increase, next, detail these budgets that

from a cost cycle the see by NextGen go-forward availability is associated So how this take, we material how this believe will how you of cycle highlighted we certainly that certainly that you the about think just factored can in and transition excessive build on upgrade basis. guidance to but gas fleets highlight specifically We that being This relative element a long new transition of natural that horsepower an so fuel-efficient it with. diesel The not real can displacement an should that is. replaced that it's provide and cycle. that upgrade with is and the is on show be we is

turn that's really guys, I'll Thanks Great, it all back. a helpful. lot,

Thank you.

Thank you.

from of questions your proceed the Johnson with Don with next Crist Rice. Our questions. comes Please line

lively repaired music, you the the there? in you million time your something and talk Good they're fleets maintenance but you of with in pumping in for and industry pressure appropriate does, [indiscernible] to going what $XX how streamline I difference i.e., spending that of them very to about operations the differentiate out rest about to kind the yours fleets thank if talk morning, or quicker, you like that, it's get wanted cat whole and specifics, just the your it their overall between contrast and can change that in and you're back maintenance gentlemen, and ticker. can

place, back that that pumps having to engines, so within get weeks three hour come see parties I'm transmissions, down at we're your your to rebuild you again, that glad anywhere timeframe. this look from able rebuild those to you around you more before and for four-week and ends, engines the to growth or it swing keep timeframe, were we able in units you're asked, you're to new you able to long we with resources, put turn third Certainly, service but a or where gone in lead in-house before when equipment time, again could see a initiative at that can certainly, our that looking in eight power very so XX transmissions, district pump we and with and on

and it's at X we is maintenance rate pit driven, best and - wear improvement our fuel relatively amount the this XX is, same when so track with so when and is that crews around in in reduces up program relatively at just from consistent, a the basically CapEx is seconds this consumption, that stop in it those into true that track, a reducing of It's So and however, the that the repaired tear is be minutes on how back goes race that a same pace at you basis the amount our look service. put to going but that around tied we downtime tires pit static look if any It's this, at of fuel on of equipment put and - of of the everything out wear equivalent seconds. relatively same miles consistent the reduction crew that pit XX and part product is to that a car - keeps state, on the the the unchanged. horsepower consumes incredible, the and it per significant unit place waiting

the little going West bit be month, you it's ramp-up model versus a on ramp come can seems it's sand I impressive. mines, as go fourth the us seems like to the later overall that this delayed volumes a sand expectations, contribution forward? in obviously, Munger up And for have believe will they what around little into there very guidance it to to It's but little prior bit, and talk going quarter, just but the any about hard we sand on

it's that a provided, then but four give months. to to and that we safe that quarter. a our us can expectation can that beat use the better from we with goal our two - you'll that is every and Obviously, bookend for and to got beat anywhere modeling months, mine, hi, the two beat new to ramp-up good four to range purposes, look period certainly have something I Typically I I just think so

started running add wet I soon. should sand Yes, we're we very would be up that so Don, now, starting running out also there we - just

to Our shipping plan this is be sand by of the XXth month.

Lance, just going going good million sure one any that? for little to to guidance one is that that more in like some, it be is And around but go that's U.S. of quarter it's a a up I'm quick more hear. Well Services, roll to as dollars a you SG&A, Okay, maybe couple than or bit

us it the I bit and little laid a that, were good it than announced next, that I per be will the running that about take think to synergies of little kind realizing months. time we bit of year, feel more It million we over those $XX will but they when think about realize out we transaction, call a the six

Okay.

So probably or just under so. million $X

appreciate back. it I turn I'll Okay, it.

you. Thank

questions. proceed America. with Our Bank next question Pant comes from your of Please with the of Saurabh line

of you a little XX that public kind across made majors, of to you start morning, to bit prepared is the talk on maybe comment strongest do Matt, bit? little book I I what years, and visibility Ladd, good Hi, your XXXX E&Ps seeing can you wanted what the can speak and you and work that which very in obviously that a you the a private are have, remarks impressive, just in Lance. to think

strong the that increase we strength into over previous carries and look peer industry's level this current what the the activity; a for to year-over-year filling fully outlook looking at for each look at the of our the in supply difficult we higher spinning the customers the outlook respond market year activity the way We market commodities customers of with Certainly, of we environment, in however, oilfield that the have at XXXX. and higher that sold-out a up strongest state is challenging think when class when demanding. see ability our and to any of we chain, the are so services our backlog that with in a very we're levels

our superior and with incredibly at have management, us get next-gen vertical integration, utilization. So that to allows well our supply utilization chain that cost providing the while to also customer, service us industry-leading this lower total fleets positions the higher and a we

guidance be helpful? or CapEx Okay, pieces know if would maybe, in perfect. you're right XXXX I if can us walk moving directional through speak to don't us you now, a And the give then okay but position that to some

set maintenance it through and still We'll different expect higher from all to more year, for of Yes, wouldn't because have going specifically you but the the of absorbing that U.S. getting we're process, next year. be fleets. kind Well this I

I - and $X million, be at think different. initiatives the I we're have looking growth we'll as then per that million, million $X.X call per it wouldn't now $X build expect it to but around, have forward, we're fleet but we up look so year, we'll outlining bottoms

Okay, you're strokes okay, thinking million broad to million. so $XXX $XXX

range. million broader a to somewhere, $XXX million range $XXX Probably

Okay, get quickly I And me. it. just one last one for

now you're month, obviously, how easing month from from your to - the to five looks engines chain a like per that chain market remarks just the per upgrading it to supply by supply you are into read month, to said think engines prepared engines get is per going from XX customers, perspective, demand XX we in but chain on the able your backed you I XX front? more for broader on supply that should such that's read-through

place so. Yes, even I to those what scale, through relationship encouraged and expand or these with well and Tier that our with so relationship orders with vendors, through We've that when in unique difficult say accelerate contact the our them. upgrade it to working think really gives to a incredible X so with OEMs, and comes programs had overall it that to vendors, maintained does putting been market. vendors to this or the We've relationships we're and times got in COVID us when think it's like We've were I years, really with and we programs. and these switching the

Okay, I get that.

turn it Okay, back. guys, thank you. I'll

Thanks, Saurabh.

comments. now back management would for the closing any to I turn over you. to Thank floor like

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teleconference. you for conclude does today's gentlemen, This thank and participation. your Ladies

your may great this You weekend. lines Have disconnect a time. at