Flotek Industries (FTK) 21 Mar 232022 Q4 Earnings call transcript

Good morning, and welcome to the Flotek Industries Fourth Quarter and Full-Year 2022 Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded.

I would now like to turn the conference over to Bernie Colson, Senior Vice President of Corporate Development & Sustainability. ahead. go Please

good and We your appreciate Thank morning, participation. you, everyone.

Bond and Joining Officer; call and prepared Officer. remarks participating results first are business the we today today's Ryan Chief call, On Harsha President; concerning Executive the provide Chief quarter in me and will full-year. Financial Interim V. Ezell, and our Clement, for Agadi, the

any Following you have. will answer questions we that,

our which website. the We have full-year for is now available of quarter announcement on released and XXXX, our fourth earnings

In is our replay shortly comments this call for today's addition, be following will events expectations note our on Please future of a today's call are and webcast being or statements. regarding conclusion available that website on make call. projections we the forward-looking

filings subject many advise a and actual control. to beyond discussed our release results earnings risks in press of our our of We review may the release listeners from risks materially are reconciliations on current are call. and can as refer uncertainties, These discuss number expectations. our our and to to SEC. Forward-looking uncertainties cause provided earnings which this statements differ management risk factors Also, please metrics to non-GAAP in with the the

it turn I will to now over Harsha.

and future have member been for August since never happy morning, results. have and the CEO, Board full-year call to and of This conference I joining XXXX be the encouraged today. Flotek. of a is Thank Good I'm present been everyone. about our of you Interim and XXXX as financial discussion here the fourth quarter of outlook my more Directors first

a profitability team place. in Senior for taken decisive has steps Flotek Management company position the new future and growth with to

Chief assumed CEO, guide the Clement learning single Flotek promoted of company. Ryan President Directors to to As was team my the can of since I'm in this Interim I Nierenberg profitability. we January, Ezell Chairman We This the is how Financial and day you Board. enhance December may and we right was XXnd appointed every have role as Board of recall, and Officer day Bond management and In believe David revenue to of grow XXXX. appointed we changes the

that world-class overseen What growth. team I the and Flotek has is top is far so line know

have customer employees, enhancement Going profitability this been forward, of absolute all fourth and And quarter satisfaction, strategy. thank times extremely industry has we the XXXX revenue of safety. customers congratulate for quarter made growth the in grew I role cornerstone XXXX was our and the maintaining service effort of The accomplished suppliers over our quality, XXXX, herculean. high nothing of while short Fourth like and to leading would story. our X

more about drive will that That are share leading and place. the initiatives to being reduction through market shift am inflection where cost said, revenue excited I'm continue for future the point I are we now confident company positive EBITDA that company. adjusted various and growth to in generating we our even an runway will peer approaching

gross just difference in time. materials, scale labor will in quantify freight significant time purchasing a of improved and introducing economies Our later. margins efficiency will scheduling raw those in in make costs, Ryan over

and tremendous and have quantify data Ryan done It line towards gives will [E&S] a our business. Dr. Ezell our to combined a and job reductions place. toward (ph) team bottom strategy analytics seasoned top great in company and pleasure All experienced growth cash growth like SG&A that has In executive in a have in executing line now services resulted top growth. operations transformational SG&A lead sustainable are drive chemistry Bond generation. line to oilfield initiatives us in positive addition, these will me with comfort savings.

up scale there want are as financial as that in working and staff I to margins state CEO perfectly. Interim the execute growing gross to capital, do businesses significant limited pains

to senior recognize and XX% we growing As the resources in over investing in I'm are investing at be the XXXX. highly pains it. XXXX confident correct least will team, up new that revenues

Our SG&A will on adjusted business. Senior outlook sustainable are continued margins tight revenues, increased our this positive combined with gross assisted most The of importantly, with scaling Management, to excited lead very control all on us employees EBITDA. Board, positive

company, work Interim we curve January, in In this to had to very CEO, it culture learning better are of conclusion, position and as addressing are all assume employees. understand on done this company its The be a impressive knew and fronts dedicated. There people I the the is when the I sector the of I and confidently.

ask President, XXXX. Ryan to I Ryan? that, operational our discuss for our Ezell, Dr. With results

you, morning. and good Thank Harsha,

for step data both progressive for another to represents chemistry sustainable quarter expand, chemistry as that Flotek in our collaborative revenue solidifying to analytics solutions is strategy the further growth segments working. data This optimized continue partner choice be of and and

Total to revenues served and revenue marks equating XXX% market company sequentially which to Flotek year-over-year active ramp QX, sequentially highest XX fleet of over an get improvement years. frac fourth sequentially. highlights. our operational to our target U.S. servicing a which brings over total fleets the XX.X% is as the quarterly at and QX, chemistry times our XX Let's increase of increased of X% XX of five to ProFrac four increase the continue contractual added share right grew additional company in fleets. quarter XX% to fleets This over a we We year-over-year. full to in end XX%

customized share growth gaining technologies growth fracturing with transactional we outpaced for market our Our the the fleet further quarter revenue sixth solutions. straight are hydraulic that chemistry chemistry market indicating

grew prior Our year sequentially. the XXX% revenue analytics versus XX% and segment data

field gain gained momentum applications quality from core successful continues of coupled to on monitoring gas the our with analyzers. focus the Verax by traction Our

reduction emissions the shows XX%. research gas greenhouse consumption of of of industry Our in use over diesel that maximizing fuel field and can result by result the

fourth performance outstanding of results dedication year this the want work with and I'm to Most in solid importantly, the for all and achieved these lost milestones quarter employees Flotek with the pleased safety to were and of field growth operations. I the presented their quality. hard the and and time in delivered thank collaboration, above recordable to service incidences contribution zero Flotek

a into like the beneficial the discuss status key ProFrac. to our transitioning quarter, partnership the with few details mutually I'd Now of of for

ProFrac greater. or hydraulic we XX% We downhole our coming will over an was as reminder, expands of fleets, contract X, a our total scope whichever December fracturing quarters. of XX covers their XX full to confident the fleets we achieved As the that their April remain volume contract is and of in fleets with equivalent of fracturing achieve of serve and effective XXXX full and suite XX-years chemistries

life Flotek spirit we extending receive current billed amendment by long-term the ProFrac, nature with our of solutions and the and on of years ProFrac, of focus Thus Flotek's enhance the to beneficial the partnership come. contract. for will period innovative for In for contract services agreement further the coupled entire to for while collaboration allowing service ramp creation executed quarter compensation scope shareholder with to is that one by the the evidence mutually quality value

saying, been be agreement we've industry. for and Flotek the transformational As to proven this is

water, and completion a agreement, E&Ps chemistries, of protecting solution land result air, and greener reduces vertically integrated comprehensive, delivers have people. this a that emissions thereby now As

excess more number create ProFrac in Over contract impact for decade, ProFrac’s recent the of $X any the million million And than this agreement include does of backlog the acquisitions. Flotek, of XXXX for should from $XXX anticipate alone. a revenues revenue including next not we in in the anticipated

our quarters. rest I'll is volumes of also to continue contract stress which to successfully new sales the to to continue the add Allowing us consecutive that we done customers, energy six grow exclusive. not and for customers chemistry

laser and of levels. this this outpacing make We industry activity to focused our and higher margin, are share on steady higher value we add growing business market continue in growing progress portion

the margin we've our approach executed reducing margins, costs part and of In following as actions enhancement. the sustainable spirit multidisciplinary to improving of

while XX% since our reduced to systematically hours covers overtime our end grow First, share. the and market by continuing personnel XXXX, almost we to field additional reduce logistics headcount manufacturing realigned of and We've staff, XX%. revenue XX-hour QX by

production down driving XX%. per plant up Our manufacturing cost our year-on-year, utilization pound XX% is of

support of have all basins, material and February, and our running up of we will which facilities operation. in As freight handling areas in-basin all drive improvements major in for

the and a digitized we dispatch trucking optimization to now and system. terminated route dedicated of also transferred our trucking were have We underutilized they contracts as majority

We improvement of net expect XX% a over in logistics.

We drive materials of and continue improvements. re-tender overall scale our to economies to leverage growing cost

real a of we're JPX improve our improvement costs, generate to supply supply sourcing time data Additionally, integration executed continuous our in agreement exercise for management. not but that portfolio proprietary manufacturing undergoing currently a of it entire sensors will validating security will hydrocarbons. also our vertical our segment our only analytics strategies monitoring also for improve We've capital identifying chemicals possibilities and

as will purpose these are of our current from more finally, an the in place despite take December, we've remains extended to in due second-half million in hydrocarbons we And production. for reductions. of start -- that actions to office outlined supply plan $XX tight that investment QX and of of a total, the In infrastructure fit to seasonal Houston exit sources approximately in And cost market corporate underlying oil deliver and under footprint facility in new strong fundamentals stay expected XXXX. the the gas continue in XXXX, believe to of disruption as to under

projections remained oil discipline, despite demand have increased in E&Ps on focused healthy Additionally, and capital prices XXXX.

being capital footprint and the well well overall to partner for while simply of producers demand our the choice reducing strategy services, industry's discipline production, as collaborative for minimizing and The not solution just our of costs. focus to plays maximizing total solve returns carbon

data report customers achieving Our else analytics being producer well all performance and Flotek, with when chemistry better equal.

water corporate future differentiated our maximize be market I quality, discipline. we're protecting optimistic to to ultimate continue recovery every of on value mission responsibility, about and focused share provide speaking, minimizing growth improving I'm completion, estimated SG&A the Simply and customers. formation that to our our to commitment about excited and maintaining while solutions damage the

Bond call over highlights. key Now, I'll turn to financial provide to the

fourth team market direction great Thanks, of very no data really company chain with be I excited and of Ryan. revenue on essentially about I'm heading. times analytics professionals and chemistry. the the expertise supply and to in morning, it’s Ryan’s an achievements backlog be quarter everyone, with conference now of to echo call our management, deep you cap we're outstanding comments XX current logistics, that first course part Flotek. It's a roughly of Good is the exciting a leverage, at from

on As it Ryan us toward have to year. SG&A will level work EBITDA, team and fee concurrent focus profitability reductions. adjusted at on the profitability my progress and the getting great to focus attacking moving I relates professional line comments this to of made that morning and SG&A positive cost want gross with we his this this bottom achieve ensure margin to company this

profit. Non-cash asset gross of a of gross have accurate metric noticed business. included We revenue the and profit. representation new of press our both the may contract release the amortization believe more adjusted we in You performance a metric called new the provides reduces

to million While a close. getting work Fourth at margin as Again, adjusted a percentage that quarter was the on negative basis, the quarter positive we to we we that do, right reported turning for do, better negative moving in consecutive as XX% This but than to gross were improved are $X.X in Certainly march more metric of sequentially quarter EBITDA of direction. XXXX. revenue. XX% $XXX,XXX. marked cash work sixth EBITDA continue improvement more but toward we're the during adjusted

fees, about the $XXX,XXX improvement to structure not that included company an It's sequentially. XXXX XX% worth half as ABL in that to third quarter fourth were professional highlighting during also quarter it showed pursue. of the which decided non-recurring ultimately related evaluating SG&A declined roughly SG&A

to XXXX related accrual included Third $X.X year-end SG&A a potential bonuses. million quarter performance also

our necessary we to focus restructure profitability. and to reduce that To add protection to retaining create value a resources, this and on to are of shareholder decided employees bonus component achieve key

bonus quarter. result, accrual $X.X fourth a we reversed As performance million the the during

clawback. be a March, plan condition to retention of million to prorated bonuses pay with through XXXX we required of that to a $X.X subject remain recipients or are the company During with end the

believe three quarters organizationally As service condition this expensed is throughout for XXXX. be We the broad evenly than protections. having retention far million focused of bonus result performance a final $X.X with no more narrowly bonus a shareholders the will better of clawback an

SG&A in last increase XXXX, annual ERC million for in a credit. keep $X.X number credit COVID-related a included mind, payroll the to relates versus it XXXX, in year's As

between million in ‘XX XXXX we So tax the $X in and in a these to variance XXXX, credit SG&A I'll the ‘XX discuss increase had versus full-year just SG&A million two further moment. the $X fees related the to in The agreement, which ’XX. accounts nearly bridge plus of combination payroll items non-recurring of for XXXX directly ProFrac

level by to As in In mentioned, reductions the full executed quarter employees it we've staffing costs since numerous XXXX. management connection XX%. relates to the $X.X reductions third dropping Ryan approximately include These these expense time headcount ‘XX headcount quarter, reductions, first expect SG&A, during as with on we separation of million positions.

This $X.X the disclosed, $X.X non-CEO remaining the agreements. previously paid related was cost CEO in that of over evenly next will includes governing former XX-months related amount the million to the the be stipulated separation million as bulk of

costs, separation and headcount Excluding to reductions million. total salary from approximately savings annual are $X benefits expected

have In are at reevaluating been addition we too aggressively to fees to reduce high historically this corporate that staffing, ways pursuing company. professional

ProFrac legal agreement fees, during supply million that earlier, $X there mentioned duplicated year. with be As the accounting primarily banking, professional not XXXX, associated were will nearly and directly this

securing $X you absolute cost only the XX about contract contract, consider basis basis billion in points to of a value. equate fees light an on before While expensive discounting the transactions those when

The XXXX XX% ProFrac contract elimination roughly reduction fees. costs a professional non-recurring just represents the of in

professional of monitoring enhanced future level ensure we require terms engagements professionals forward, approval. have approval moving In processes executive that any and fees implemented of to

are by certain than costs in-house consultant XX% bringing less SG&A year, we working quarter fourth savings. to of wedge fees be and expect By the this reduce roles overhead time realizing we professional revenues. of of including Finally, our to full

on is of level reduce looking generally a accepted basis, SG&A. the to absolute that we endeavor for While to ways relative continue dollars

to moving the Quickly sheet. balance

Texas of the net facility, on during of million. quarter, our closed proceeds noted $X.X the As in resulting we Monahans, sale

in converting to of orders quarter the during terms well execute cash. to continue We

Our million. flows capital. increased about and of end $XX.X of at $X.X cash the course cash the third of of at balance to versus fluctuate will balances year-end quarter working the million Cash ebbs with

capital and increase terms with continue revenues inside pay will with to working added our collections activity of by favorable on As additional we've managing focus timing delivery, to fleets chemistry our we suppliers. the related negotiated our

ABL, have our positive market provide been and as supported to to receivables various efforts augment currently renewed our updates update an attain To our with discussions progresses. our diligence We'll working and inventory this have Initial liquidity. management, capital have and/or we further creditor we're by the process additional through working requests. lenders

we rate next the On carries amortized loan were debt January our the as mentioned will front, of forgiven. of be all, loan release, a during in X% PPP balance notified $XXX,XXX approximately was the interest and but that over The XX-months.

year-end our provided an certain did In in activity. reporting items Unfortunately, associated in identify in yesterday's back has stress regarding placed growth our internal audit on in XXX% the with staff release, some our consequences managing a XX-K. increased from material as year We we of our charged financial with our unintended update had the office weakness operational the of ago business year-end. controls over terms

quickly will shore that remediated. areas this up We We augment processes ensure to are in implementing internal certain to enhanced staff be believe are resources issue and effectively. operating provide our communications our additional controls to

to and we're to in we related in of qualification we working as relates disclosures make the additional ABL. discussed our it As an of XX-K, liquidity the sources going expect to secure terms of just concern

we're throughout steps today's Additionally, profitability. toward as positive call, stated taking

business. sufficient We XXXX financial us capital an achieve expect continuing trend cash flow of opposed to our continue during improving provides We and the losses. adjusted manage with to our with working operate outlook believe as positive to EBITDA cash to to operating combined efforts historical resources

turn With it closing that, comments. I'll for Harsha over to

Flotek. to revenue forward. ProFrac I ramp growth about giving to up I'm front, am conclusion, on earnings been positive anchor our customer optimistic Thank convert encouraged revenue us our so ability and increasing revenue by have into is In the business. the robust backlog going you, Bond. continuing never on I and

demand $XXX transactional is Our million over and and JPX has pipeline business now robust XXXX in beyond.

optimization we detailed Bond. million profitability Ryan which all headcount million; aggressively on Revenue fees $XX of $X $X reduction moving fronts by margins, of are towards of been million; four and Regarding XXXX. chain supply million; professional efficiencies in has of of savings $X

on all of the want thank cost to a in and for beyond. having management employees XXXX I execution fanatically Flotek of and focus

questions or open your now comments. Thank are to you. We

begin Don Please will now Johnson will Instructions] our Crist of go first question [Operator Rice. question-and-answer We from the come session. ahead. And

gentlemen. Good morning,

morning. Good

Good Don? morning,

in I'll done, that all provide on first you commendable, one is I the Maybe get for in supply so in-basin up fleets, It call which color you appreciate you've truly Where everything a Ryan, have are ramped the and as that to the ACDC ProFrac have process? fleets all operations streamline or properly? my do and of far. this had to you work lot operating

contracted you fleets? do when that the you'll XX get think two, number And to

as break it. So I'll apart them those, of, way kind take presented a in you

So we're Basin, Cambridge, in that on the South the in at the mobilization getting in it, delivery way West Texas Northeast, Ohio, the particularly executed points ramping. solid we're Texas, We've and at because look QX Corpus and fully when Christi components. we Texas, Midland. In Permian now focused Kilgore, traction

so accelerate, were little because so fast costs took ramping we QX, have we those with really clean in in a brought extra we're QX, XXXX mobilizations. cost the going happy through we that we to a And that's help how into run and

XX required went completed ahead at well also service that fleets and and cost into the carried the the mobilization December end of additional those brought in play of tanks and QX. We the as to

earlier. we've we're forward. cost leaning taken where XX. mobilization. a limited to the I position that at we up XX we contractual to But the this at So want not a we're point out said think that. burden And past And by and very maybe we're fleets, I XX think position on I good in when on, the and to mid-year, I of grow we there around hope now and little point great all ramped in expect And from we getting look we're be be that to a service

they're will in I much us be ramp up Nothing stops than XX. Don ProFrac just I Ryan position, shy to And more continuing moves more. think as not like one number doing picking phone into to continuing because and up. from for asking does acquire, the

activity stand those that. industry fleets? And of do little we you as in far towards completions remarks. were to a all is are the opportunities the with supplying agree I comments your compression JPX contract relation I were XX concerned, bit we know limited in Where prepared efforts? as And outside your ProFrac know some cetera. Where et traditional exploring in

supply quarters ProFrac it's and doing at way timeframe. units, well. really So operations the XX we agreement of looking And that, the for initial and the the through delivering we'll in we're around that be mid-year other ones three have of XX

start the the even how on JPX can of of their now see fleets. ProFrac to the fuel there's performance and FX You activity site, on their and dual [kits] discussion impacts it a units

expect happy in to So the to units we're there. those terms that's fleets. fracturing some we to with very gas hydraulic of And monitoring as we deploy other continue ongoing field traction have opportunities grow with additional

compressed part is which we targeted but at for year of profitability we to business. of want specific that continue And have is to do trials capital gain operators JPX. sales, the most side like in in there, transitioning in on we out the to and importantly, for the traction XH trials are some I this data look of being us as phenomenal a field we with gas, improvements of for we service revenue that applications us are without backlog what have terms And than targeted more field those point into and that

the have service of will, and if Ryan on And you team I think, already Don, subscription path JPX. on started,

JPX before. going that to you're format time, not see subscription over more into revenue has happened So coming

the in Ryan addition, the traction very pretty So our is And for that effective in this a and already customers begun conducted good. way. has reengineering has lower entry point will efforts also our

of two third Bond. there there that that three I XX% so or think The you truly quarter Is in appreciate you've revenue? do kind quarter you've of fourth before been you've months months When been is that? that that. you One made or for your final that get to one me far or efforts like short commendable. for that G&A

for hitting is get possibly percentage, we're Yes. think obviously terms around certainly but XX of Don, I around big frac midyear going the a probably fleets the revenue sure, going third to quarter sometime there to third the fourth growth quarter. driver that be in of sometime quarter

and the months. you've what few appreciate truly the happens done comments I commendable see I'm what over Thank forward. past excited going all to you.

Thank you, Don.

from Jeff comes Research. Tower Robertson next go The Water of ahead. question Please

oil formations? working much Good of you. chemical gas, Ryan, Flotek you moves of impact to Thank of that in margin on the the some type of if an that provide types fleets does from basins their those have morning. frac crews for suite

gas to That's of tracking impact a basis great closely basins. oil question, because from very we've been the the movements the

do product there is I see change because is run little differential. just revenue per in revenue Haynesville, see take fleet little West say say for wouldn't West basic the in basic more Texas in slight of Texas instance a bit we East the a type I think it average than some system the there's is in massive Texas. slickwater but systems. shift hybrid some out in Typically, -- higher but because a you the a mix, we if profitability, run We the we

as more as much it’s not would revenue about per So se. and it the the margin impact

eliminated both I to trucking of costs so -- to you can think Is maybe contracts. trucking negotiate you your ProFrac and do you with the needs leverage On dedicated there anything -- all savings? could trucking mentioned or

that's these know, a contract You did held due. the that's has to exactly our we standpoint, what -- that from was amendments

their move fleet as led and we've also basis, going we dedicated our now we been to are on were substantial of that a was terminating those logistical optimization, pad-to-pad system on which brought validate movements utilization, to contracts we trucking as helped This lot movements number us that of in a sand terms we've us a callout coordinate we've how similar do. some fleets they but ProFrac of for what stood on how expanded a digitized to the tracking a runs of truck to do trucking on a transfers. So route they to on some in-basin begin vendor of up base, digitized where

then our to and ability for revenue that. also service And doing services generate

all we with synergistically on an now. would for point, efficiency hit movements do working of gain terms then that it and So three of I our for particular optimization service ability transfer say these ProFrac us operational kind pad-to-pad for on in and revenue some we movements of to

on that so all hit And we point. three fronts it from

that it So and integration crews to you're their more hopefully the also servicing well? increases their saves customer more efficient the some costs just make but as for crews Flotek, hopefully and how coordination efficient E&P for

three how stay stays the utilization. reduced what Absolutely. our efficient can the we've of we we really packages, now improve and chemistries, combined even chemistry really the chemistry monitoring through got we've look at and move other started driving of quarters that a service under types further emissions solid we gone And propositions value looking is at that good ways belt the we've

audit? or convert concern you into your looking in note facility plus in scale all mentioned ABL at will which of expected the your cost about that with should you you facility liquidity? savings, Can to Bond, the will talk EBITDA, any presentation enough And language that for you're are going be for? magnitude that satisfy you looking

our I'll able take needed auditors feel the that to as to ABL we're concern Yes, to part that certainly disclose. alleviate get going an they it second first. the relates

regarding what the Jeff, would away satisfy because don't prefer at of are the from in into get discussions having and of sheets, I just to expectations expecting items think that terms. details, are, want stay term I to we diligence some that. our looking I that sort of, heat we’re the the it

on real quick place go to in you And the material weakness, you that, away relatively steps so the have in near-term? that all Okay. just said should cure

some workload and able we're to we're going We very some talking are we so back staff the effectively, that the communication and the going staff. augment implement to office quickly. mean, I other. people some Yes, each of had procedures to think we be breakdowns of tripled where remediate

much. Okay. Thank you very

you. Thank

Swergold next The Please question of Eric from Capital. ahead. comes go Firestorm

Bond a margins companies Two And I can first help Thanks. first really call helpful thing people, all, know little the into not Thanks who yet missing more from the is It Harsha questions, experience on about from this unprofitable is and for of companies this might of there? back Harsha, haven't and today detail you ProFrac this and the you is to be hear welcome second team. the some to around? to with go your amendments to the bringing how profitable. your only rodeo other your chance meet had can turning

Sure.

I think on address the amendment, let me that first.

those into had of I we're it, very they per at them. beyond so giving, gallons week. and to that's officially, we up we recognized cost in the committed gross unlike On appreciation efforts and service increase got past, significant the things difference. ProFrac XXth going that's stepped positive difference here big and kind an I made the a amendment now to recognition also think and one above the of a make that how gallon difference. without of January we So And and closed top the will of are a within running very detail, has margins first and going to millions $X.XX of service And through lot other business. and our savings fact, in

making involved terms more in equity as and of to costs been that singularly ratcheting and experience on positive lot one I as as tight Flotek. think of familiar it training, am the question as holding is are well having focused as public history, with my EBITDA, many well private we work down I at on company is than the and the own key shareholder getting businesses CEO revenue my is through increasing robust into as a sure second

of in to those double as situations past the well. into I we've doing turn and EBITDA have are difficult been efforts, able very all So we come around and triple

through precisely Ryan, think, God also said, a a Now hired very who that here there's me. chopped company, work a been do. lucky now time pain, us of quarter was each and I leading is this the shareholders to but lot walking zero taken wood, as the my Bond from all takes in seeing both very on to And clear. I looking I've But cases of they month put rightly passes. able. going said we've have before has progress. been lot actually to Bond of to few kindly aggressively are Bond, now on Ryan, company. start of to be and day I the weeks I sector, the hope it in get and deserves each President It they're in coming in, as be of extremely got it’s as has at not learning say for we're lot of I so yes, place, coming month, between a company benefits this, will I sides some cards, will was I'm Bond a the been not this Remember, pleased to

I the price. on last am I also stock Eric, fixated think thing, is

of have in ultimate and will term So to price EBITDA positive medium have to itself the setting. automatically me we that's return got take care

will and line price you. on let's focus move let's eventually So to get follow. stock me, the Thank continuing EBITDA, top to the

added level? very and quite ago a on on you ownership? time stock a Can Thanks board about the I Thanks. the also there in you Chairman bought few comment was a you plus comment board can stake ownership company. times know that at Also, year much. the know I has a

be that call more Board of importantly. much up. we're going as and I The closed series committed at but it, We've gone owning to well think very the is stock through, as Sure. buying opening I'll windows, stock, more a executives

So Executives, as our of all up. And opportunity see the as buying good of is should see us Members, it's an you we buy. value, you'll this actually own will and a have some best me, stock demonstration that Board to to time so frankly, so step

As as will open there to you tell, up and we examine strict that can closed guidelines windows, it we pretty are here able know, on be far should as quickly. And SEC shortly. open I

the of have very I my as with, be positive. I public. both So always I well that's company private, worked stocks as that been think also consistent And practice, bought will

call. helpful It's much, gentlemen. very very been a Thanks

much, and continuing to Eric, team Don the strong. as believe and Thank Flotek as support, itself your in very, for you is well very for others very

one I may have question. think we more

a is Research. Robertson go of Jeff follow-up Tower question next The Water ahead. from Please

Thank Ryan. you,

a also as of helping follow-up, supply capacity you business Flotek's delivery in points. look seek out as increasing the those mentioned you delivery points in-basin for Just Is that and third-party are ‘XX? transactional -- out you number all

consolidate materials, buy I overall us off And rail et business in XXX%. locally it is the was comments, impacting that deliver, blend, That mentioned cetera. spurs, allows to my

of And helps from the to so grow JPX including business, aspects it all supporting operations. our

So it's to increased cost serve benefit ability more plus customers.

it? kind benefit you from of a So get double

big a and infrastructure minimize downturns, on improves to now And XXX%. part, at the help because ability revenue the time. our And during costs. reduce thing consolidated this costs growth to that's we grow service facilities in significantly same and this

Thank taking my you for follow-up.

and want minute a patience. all goodbye. belief do is I do growing for gentlemen and their and to your thank take ladies direction. in want is Flotek the you, turning for you Thank that the right investors their and thank employees for the to I And Thank support.

The now and conference disconnect. has may Thank you you for today's presentation attending now concluded.