PFIE - Earnings call transcript Q3 2019

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Operator

Good afternoon, everyone and thank you for participating in today's conference call to discuss Profire Energy's Third Quarter 2019 ended September 30, 2019.

Joining us today is the CFO of Profire Energy, Ryan Oviatt; and Chief Business Development Officer, Cameron Tidball.

Before we begin today's call, I would like to take a moment to read the company's safe harbor statement. Cautionary note regarding forward-looking statements. Statements made during this call that are not historical are forward-looking statements. XXXX markets make of company's launch future statements, and expected not expenses, the growth, integration international the the forward-looking regarding to in expansion contains opportunities, the assets, performance. beyond, the of markets, the company's products, the increase company's company planned resources acquired investments potential and to successful beneficial call including, limited exploration M&A but of financial statements in availability This international of new of in operating

All subject in such uncertainty circumstances. to statements forward-looking are and changes

are Factors Forward-looking events results the performance that to assumptions guarantees could include could statements forward-looking Exchange Securities involve and uncertainties from materially that such Commission. company's in or market public not or results of the statements. future and certain business, or differ and described results risk reports affect cause statements factors regulatory identified and periodic in events actual the anticipated risks, or materially the by with economic, filed forward-looking

events to required place the no assumes and reflect except forward-looking harbor on of these forward-looking reliance by undue circumstances, Securities obligation provisions to release of only to of the are statements as date statements subsequent this safe of XXXX. made Private Reform law. Act the Litigation pursuant company the Readers not are or All as update should forward-looking All forward-looking statements made statements.

yesterday's being well call via website November I accessible evening. and would provided will XX, this like as later as at is be link recorded starting It available the release company's to this that replay www.profireenergy.com. in XXXX, everyone will the for through remind press be

your the Mr. will open Oviatt, questions. remarks Tidball, the call by Mr. and Following we to

the Operations, Fugal; Tidball question-and-answer Messrs. Development, As of Vice Profire by be will Energy's part Patrick and President Fisher. Jay Vice Product President and of joined Oviatt of session,

turn Officer Mr. Oviatt. Financial ahead. like of the to over would Ryan I Please Profire Energy, to go Now call the Chief

Ryan Oviatt

earnings to deeply quarter late Brenton call. hosting third wife with are away Brent's our would be that to call everyone, welcome, this saddened Hatch, CEO, report Normally, week. we and you, Thank last passed our however, us;

expect, Brent's Business family, and thoughts In call Tidball, with would they our absent, time. and you are Officer our Cameron during today. prayers Brent is joining this Chief As in Development the his is

we and net The able and while ongoing strategies, flows the volatility focus present income; Rig on significantly, just completions Producers significant oil management improve investments to million remained balance were sheet. some of market decreased end positive $XX gas for Cash to cash the cash quarter. of including and conditions, were remained to to these liquid generate flat over positive buybacks share continues debt continue the Despite counts challenges debt-free reduction, have other year-over-year. practices retain at a reserve. cost their and Profire.

we For to during $X.X average down achieved quarter net These of same due $XXX,XXX. XX% the the total part revenue last the numbers were oil million from period. in large quarter, and year in same approximately price income drop the of the

an update provide our Cam? operational like quarter. in I'd activities on the to over to development time turn business the Cam to and

Cameron Tidball

Thank you, Ryan.

with bolt-on purchase As purchase Canada, the of offering strengthened space. and our asset we Services have of of Ryan These while upstream and the our successful and quarter, Products are priorities midstream Energy footprint mentioned located acquisitions based in in acquisition two product strategic LLC companies. the our Millstream last Ohio. in announced increasing The Alberta, within equity Midflow line

have these through obtained further established one-stop for Profire The two as shop additional a combustion-related solutions. transactions products

In relating existing revenues most burner for the us the that which specify provided. the ability products existing to both $X burner is additional on over sale our solution. spec available previously with now With of are management these increased track offer. acquisitions, totaled projections also revenue we acquisitions management who customer to solutions quarter, have increased capture our to cases, our contacts our to million, related In

As two just just Millstream million. of US$X spend Midflow sold we've quarter $XXX,XXX the product. revenue. quarter, over worth $XXX,XXX we previously, of both for under In just the acquisition, months In discussed acquisitions total was following Midflow in cash the the over generated

value We these in continued market have We as are market, acquisitions performance improves. provide results encouraged even year-over-year. will and rig down to continue achieve revenue believe decrease counts these operational to a to where greater the

annual expect $X.X to revenue acquisitions to million coming related equal $X.X of both We the these years. to in million

revenues new capture build revenue have been users enabling to available the not quarter, Profire worth end we it shop. with and on we relationships do relationships. able from making focus OEM to our realized In customers, $XXX,XXX customers Profire resellers, to continue for products Strategically, previously to acquisitions, with easier new these of we as these new one-stop through to business a add Additionally, us us. on

easy-to-use their complete and customers meet and and to of efficiency value and achieve goals safety, on investment. return helps our expertise, solutions Offering

experience. We focused and to products new continue intuitive customer-friendly will providing more a develop on

continue product, have including installation value and sales customers technology operation The available proposition. an During our capabilities on data and in the its will provide with customers value-driven easy to with train enhanced the that customer personnel our PFXXXX launch analytics and the internal we PF initial service quarter, requested. experience, the of PFXXXX

the additional plan the a believe in we markets. be international year, selling strong will including launch We models, draft. dual burner and draft and downstream force point to In model coming that force

their specification are with We customers beyond. in part purchases management in provide and product QX meeting efforts the have to currently for to of be demonstrations PFXXXX burner

Canadian positive U.S. product customer process the tests both nearing and field The trials certification performed. is on the PFXXXX as completion in final on feedback markets. are received have We

later year. expect sell be We to able to this product this

have have effort in have $XXX,XXX through through into and to far, As sales thus established sales nearly direct come these our vast part of distributors, realized strategic The concerted international majority of increased which our South expand international markets. oil internationally in plan three are we XXXX gas efforts investments, have on and our we of internationally rather, new contact and Asia America. but quarter-over-quarter in keep do We see globally. expect years. five the a drastically been basis to We expect the distributors in sales three – of markets significant additional increase next investing potential international to largest in and to with to impacts not many

The price between and to $XX of continues mid-XXs a fluctuate per low barrel oil the to barrel.

anticipated have made at we to conditions, market not these beginning XXXX. the the that of level Given was investments

we Many in quarter customers Given These retirement, have challenges reliable management, opportunities focused early and create and consolidation, the America, is customers there in active market we globally; Profire. to of the more. actions cost our in current including on domestically. layoffs innovative activity for and an much conditions expand to believe however, both remain providing reductions, North M&A opportunity middle solutions

equipment With service fewer employees, our increase support third-party are their and customers efficiency. to relying on

solutions providing for shop the designing, combustion-related and of one-stop of strategy Our sourcing a product. eases procuring burden

We support this have service customers technicians environment. and in and to a team of skilled experienced, our knowledgeable sales

realized increased and which extends production programs, success have and maintenance of our preventative with the production We equipment. improves life process and uptime

lines. products the market markets acquisitions, to search to plan and existing This positioned leader. forward, remain meet product upgrades strategy innovative demands to invest international in complementary well and continue has us to and we industry provide our new for Moving

to to of quarter that, for results Ryan discuss the XXXX. the With third financial will I back time now Ryan? over turn the

Ryan Oviatt

we XX-Q market the filed the highlights press Yesterday release. Thanks, closed, Cam. the our SEC after with in quarter's discussed a and

which coming in are As call the down ago. a always, is available section will both Investors $X.X of posted the revenue, this year documents transcript of our from be quarter, the recognized the same of days. those on we website. in XX% The million period In

QX, average to QX discipline, E&P rig compared X,XXX share weekly count, focus was almost like QX more have and on exploration have reduction, America, and continued down X,XXX year. companies buybacks The compared average oil of to the price in period than in the debt they last dividends CapEx XXXX, expansion. XXXX. XXXX In of XX% capital North same to the was on average

E&Ps of restrict throughout CapEx and of As CapEx continue believe we remainder spending a budgets these the will to into macro pulled back result trends, and on many XXXX. have XXXX

related decreased warranty inventory Total year last to year. and profit revenues as in professional were total profit and direct typical and or fluctuation increase million of the gross our X% of costs Gross of increase $X.X primarily compared reserves. wages, product. to product by and changes an $X a same fees, to expenses PFXXXX the the The activity was within revenues certifications XX.X% driven expected development range or quarter. of total acquisition labor due is was to XX% or This million ago mix, margin approximately in million quarter from and increase $X.X in

growth plan. increase expected execute continue strategic as investments part our an was to as This of we

ago. our year in XX% decreased operating As of increase growth increased we expenses of to expected same as year the the below X.X%, industry and short-term plan mentioned for challenges. continue of in in to X.X% the to increased revenue investments of that due XXXX. we for a the the Operating total but outpace expenses expenses, compared remainder and our when XX% to beginning remain XXXX, ongoing compared some throughout expected XXXX R&D the this increase XXXX, We quarter operating would G&A to full depreciation

keep which the product We largely activities. increase fixed to related and the to R&D and labor assets. additional in professional of expenses Total was certification development investing majority other sale increased attributable The costs. fees $XX.XXX, on due in to throughout during hiring was XXXX. period intend to income in acquisition G&A is primarily investments XXXX is and roughly of related and to The the interest increase

income expenses. million ago per Net income same or the net diluted $X.X over quarter the or is share per due XX% down Our to year. a same was in last to diluted net $X.XX $XXX,XXX lower and quarter operating increased income year revenues share compared $X.XX of

of balance and $X in as million to just nearly let's the at million XXXX. over $XX Canada we share have totaled $X.X sheet. million $X.X building program on and pursuant at Now XXXX, compared in end liquid far, M&A. a million look repurchase spent new $XX.X the in investments our million Thus to Cash

activities largely in these flexibility cash we've allows responding through of which Despite cash all us All to operations. to activity, conditions. this funded from were reserve, able market a maintain flows significant been

Profire quarter, stock. $XXX,XXX During of additional to the conditions prevailing an offered opportunity worth third an us repurchase market

continues oil as whole, discipline anticipated, capital and a and challenges balance with As has gas and face financial responded spending. the sheet tightened to industry,

XXXX. see relatively of expenditure expect flat programs these the throughout capital to end We

program We process are as working processes. CapEx through industry more and our similar now XXXX into QX XXXX through during customers see go insight our budget expect to

that remains to valuable focus providing product increases on our Our safety customers a efficiency. and

invest in that XXXX planned in take our Profire's to of and We advantage increase sales recently strategy products enhancements plan to lines. to operational acquired additional will market into downstream will to entrants of continue new investment We our believe and opportunities and continue the footprint. to resources development that product support This been Millstream. existing through includes have MidFlow market, product further our the and we to support

providing we eventually launch cloud and of experience. are the our the detailed these With to of data capabilities improve customer analytics increasing product advancements, technologies using

The and PFXXXX the international our markets. product downstream into PFXXXX and will continue expansion

we While And areas the and continue the our international invest advantages growth product drive will strategic provide believe development, believe opportunity. that provide growth for long-term improved. we we remainder market and expect investments challenging, markets in of M&A as and be a we catalyst XXXX in will to to

the Operator, get questions. provide Thank started. we open to And call will you. would you Q&A instructions can please we now the appropriate the so

Operator

Instructions] comes question. the Street from your you. Capital with Please line of Thank Lake Rob Our Brown with proceed question first [Operator Markets.

Rob Brown

Midflow that Maybe – good and did how Hello wanted a you over color on how everyone. could – the a acquisitions. give just you the of just job midstream more just I the – going little businesses see those of the happening that kind in businesses? seen you of helping Profire And those helping in you Profire both have grow? the those and terms sales started grow to Profire helping revenue

Ryan Oviatt

from generate Thanks, ask of in seen and that that little we've answering those I'll the able Cam far bit on very we've so both questions acquisitions, pleased even Cam? your We're progress with them. been the on maybe to more expand detail. a Rob. to revenue

Cameron Tidball

Hi, bet. Rob. You

burners, and But So brought OEM too manufacturing not on. arrestor to on products technical the that. Millstream or with Profire product get have did housings acquisition it specifically, flame basically, that not

reselling for So point it and a the products many, that and us that's we those been to gives of price create, add around many instead build to us for years. been reselling, to better technology at mix older historically

what see want whole an it. So great out offering that was point from expand the to that offer we're We solution basically have that point. other the – definitely a opportunity we're traction management so product in an on alternative that solution that burner far, we one to that to we've customers to we there. seen of have interest And

to A complete can markets. of the now So much sell Z to we what our Profire is with legacy pretty

and side, the On it product Midflow and some with came some people product talent. packaging, some

the And in Profire operating so we as Midflow brought people, a so not business. Profire as Midflow organization have into we're

areas it in hopefully, with it – we other to development, offerings. upstream space. believe helps have There's also haven't that those of packaged it are strengthen on in the before as believe lot we didn't going we However, where ability midstream that move came Northeast. some well as acquisition dovetail been and bring a looking expands doing which be that offerings packaging service into focus of new types And and to some that we footprint, we're give the to the country product us we us able talent to of again, in our some talent

Rob Brown

Thanks. Maybe, into great. Thanks out And get later Okay, and is another going year playing going? one How ramp point? been? customer expected you XXXX. is that for that the for this product of, What's the here XXXX that sort see to Cam, was, this at you, this that do how attraction overview.

Cameron Tidball

high applications obviously, et gone we'd can to still down, oil our midstream-type are on still dollar did, used the not that projects prices, drilling on project revenue applications an though We amounts We XXXX. and applications highest cetera. as XXXX much completions, Like, in the happy. quarters. in higher. in even the however, There's are some still has so Profire we – very But working previous enjoyed be upstream have quarter, of of project as been we per see or month it great dependent think a with quarter. We've impact the love wasn't had one I very as some that as in that

we're see bit and out the opportunity some for for forward, our good. hope some market. even little so be that scheduling the already and we projects to Looking of XXXX into QX products XXXX, downstream more plan into a to and for beyond it's looking We commissioning, get

So we some should see there. differences

Rob Brown

it see guess, your see the relative year? next Okay, then looking year, And course. point the of do But the And market just is. sort business terms How QX? good. is in this with of into you, developing sort we to kind trend thinking I the next of, of, a as at into of then, QX visibility little tougher, what's,

Ryan Oviatt

And another I'll down. my we're that call. a well. cash play. on Unfortunately, A that bit a know. couple seeing let is looking customers at challenging? So likely little even on it's going share QX we the really wouldn't coming provide revenue; for But of is as quarter capital continue be the earlier don't communicated or determined to expect top thoughts. as of impact as still then, still. be lot challenging ultimately, I'll you to us. our Cam, continuation growth We just To be How I QX and line discipline into a on flat quarter we But what

a at high focus Also provide a that of a likelihood Unfortunately, this better pressure into investment investor returns these really from there's at will not on lot much and all. continue expansion the probably to on companies community that, XXXX and point.

are see – during revisions XXXX. results early also QX. they QX part through some we We did that that process year last late anticipating budgeting share of as And a typically, the of mentioned, our of QX. into right even QX for However, now process we preparing all are customers going

when see but So to determine how and be come will those watching they very those closely come, we we'll help that.

Cam, little to there? add you want a do

Cameron Tidball

is of seeing if I somewhat Rob, have how they to doing the are think if part, you a that But we even the it, because not add OPEC considering and a now supply believe I not North answer. themselves U.S. they shale lot again, follow cut. self-regulate most just swing but for up the producer, cuts American will could is

So – this with metrics in trailing have the there's with us is, follow many bought XX we community. though, that challenges also mentioned, being quarter. but these how the we've the well, by there's investor Profire's customers There's challenges as said, decisions, from last opportunities.

We're seeing still that increasing. How new are increase. customers on? many we That's bringing

to stabilized from add So we're be acquisitions market beyond, of we spend help And need get should still from continue business a as oil that to winning as we share. or Midflow customers. to able we winning Millstream, bit We little such that just add revenue prices. and

So sure, budget-conscious time. be – going what a not we all some don't we we expect to hold, it's will can XXXX except trying that know just gloom, And quite customers. for doom for and but don't

Rob Brown

over. Okay. Thank you. turn I’ll

Operator

Our of with Roth comes question. your with line Capital. the next question from John White Please proceed

Ryan Oviatt

John. Hey,

John White

Hi. Thanks for taking my question.

have something, that's but think I sold missed awaiting PFXXXX So but still not being now right I certifications? the may

Ryan Oviatt

where want we're progress made? and at go you that do Cam, we've into with that to the

Cameron Tidball

You bet.

gone So we a takes completing and is time. is certification product and glorious of task that suit certification, et to competitors our processes our the other just It it through. follows exciting and have going just cetera, are through our we which along lines wonderful team

close So to very getting we are certification.

the doing very got field We that that well. in field have States trials been the have United Canada in out and are

be this able We customers are offer product to to our still to planning XXXX. in

certification very be that shortly. coming will we So believe

John White

XXXX? Is that First quarter XXXX? early

Cameron Tidball

on Yes. sorry Yes. selling XXXX. mistake. plan My XXXX. We in Sorry, the product

John White

Was had. there cost or what were Ryan, going came your Okay. than bit operating I in the side? line your had But cost something quite sales on in of modeled. I extraordinary right with revenues lower And a special

Ryan Oviatt

quarter-to-quarter, always cost margin ago, within the XX%. bit bit little between XX% but bit last but quarter. No. a and We were it's year our up were that from operating little a the varies side. Again, Nothing down a range on little from quarter gross significant a we

So significant issues. no of changes those in any

were of people that as Our development significant swings a was little up impact product year a there QX lot The new of R&D hiring were brought But bit overall, or well. in and operating changes. throughout as that the costs were on and hires and expected, costs. the no

we cost of have and of products. – that operating on the some the consultants do on that the again, is timing of costs to that work Some and PFXXXX these certification other side, and

lower in there. consistent also So revenues, commissions quarter. have not that's every lower we With

a there, nothing So things here and few overall, but significant.

John White

All last one right. The you acquisition. acquisitions, about when the recent And – one. opened talking the

You mentioned from companies? million a the Is date of that's $X.X target of the you that revenues. bought – incremental

Ryan Oviatt

would our again, product, driven new That incremental relationships Millstream. business, be customers Correct. of and historical the above customer the MEP by the Midflow

So the incremental And we macro would obviously, the of it's revenue by combination collective as kind thereof be will environment that well. impacted expect. that

to depressed range. while, continue that there's for lower a also we it of upside on things So significant might that. to the if end be But then that be think

customers another the total of with purchase we additional to even that available sale by product, to continue can XX% on and to before. XX% had capture above product specifically what we Millstream us there's, as So average, beyond selling that

John White

Yes.

you obviously – you was get quarterly to it, that's going on release, in numbers those numbers that's thinking. run rate way a the right the quarter that $X.X you million, quarterly now. if and So disclosed take I The – do a apply a press

pointing million, here. on give So but might to but its kind businesses. number to new us right guidance, in know $X.X good I you the be you're attached I direction don't little hear conservative the think, you of a those yes, you

Ryan Oviatt

But it's and is analysts we and you extremely on oil field future We And for oil at well. and and the creates side. moment. guys energy specifically, our the it challenge guidance know predicting always that the as gas in as are, and a services difficult the challenges tech

John White

I Okay. sorry the tell loss. call. Well, And missed his I'm thank Brent, on you about and very him

Ryan Oviatt

thing, very love those and It's all with for support his a moving share and is but he certainly forward. him and time. that will family at expressed him, difficult and grateful he's who've out for this reached I

John White

[indiscernible]

Ryan Oviatt

thanks Yes, John.

Operator

question from next your question. comes of Jim McIlree from Capital. Chardan proceed line [Operator with the Instructions] Our Please

Jim McIlree

guys. acquisition? little not Ryan. excuse bit you you But from Thanks and sure focus the or you me, hey it a revenue the Can we kind said I'm did, the from on Cam might the different Instead generated that source. – product, acquisitions your of But of own else's. implied have revenue you those generated have through that would anyway. resold would've you been you from it somebody two, selling if a

So have is and incremental? really is a just you little of that that sold a or anyway? bit little what so a $XXX,XXX substitution would Or incremental bit

Ryan Oviatt

Good I'll Cam But let question. I'll And as comment comment. again, well.

new get other little I the that especially that think was Millstream we impression really bit did very than revenue if our direct. then for we get the just ourselves think product on limited a is we because occasions, what disservice That that that price of but the some couldn't just going sell we gave replacement that's a we don't on could would've it gotten, because lower did product. they we any customers of

really additional. that So was all

they And side, ours, a the of MidFlow previously. distributor then on were

So portions on this the they we being the the other that captured, that were incremental gross generating. top there before that what of revenue was and a to getting referring was of portion we're were margin is additional but

selling of Profire generating. but resell was then the to that related XX% around and other to revenue of other other the XX% things it's that getting XX% to So Profire they they previously from were was XX% were of products, product, or

to do that? Cam, you want detail on any add

Cameron Tidball

think I detailed pretty you it got there.

have – Product, the it on Millstream of a accurate. didn't it zero incremental. of of there, mentioned, relationship. portion it of just that in very small small it. set the as got lot have because from Ryan sure, is A the we so product But almost customer all been resell one MidFlow, portion the $XXX,XXX is we have A got that well, For we that's we would've that extra wouldn't

achieve to that able wouldn't have those were we got. acquisition, that with sales So we

Jim McIlree

quarter, or question, you making that And The were QX something QX. clarification. you flat was great it earlier QX think it an to Thank maybe was instead. your you in I a be was talking response year? when comparison to down won't you. a last growth of were like, about language That’s Ryan, said

Ryan Oviatt

When that, with was QX comparison the be I comparison. the would QX I believe I also as in said that And of true thinking well.

Jim McIlree

Inventory that high. the All and seems old of it's Or a product ramping Is still expected? bit maybe? stuff up little just slower introduction? right. both, you. little XXXX thank moving you than Great, towards A are

Ryan Oviatt

of Yes, a sure. for little both

times we US$X increase part a did that these bit China of some As – a working on sell worth that full quantities of of – for of being said, in little experiencing there been that. relationships PFXXXX, million and acquire just And is we're of acquisitions, just in with inventory to We've also over was the bit you as of the larger preparation some part product. inventory is are portion for there, MidFlow, well. the lead product for able at There where launch that with so vendors little that there. Millstream, our as commercial product quantities the of

are paying inventory building of some well. and that We now as that for

bit that the to inventory, that a our the down, PFXXXX. is, but were the come of of of I that's care of inventory We think And bulk And no very fall process. there old quarter. acquisitions things quarter, then from this really, some holding little be significant a I taken changes were review sales and where check into a factor those So build reserved in a preparation and for pretty that items for contributed it little that of and do part thorough increase of. the the to need but the on it's of the review that has bit little or is every guess, categories,

Jim McIlree

Okay. any it unusual Great. about QX? Was down low almost And there made in it was there? XX%. relative anything so that to anything special QX, compared to question. final there Was G&A was down

Ryan Oviatt

unusual. Nothing No.

consulting related were I timing bunch different certifications the of costs that small some think is the factors to in of product there and development. ways. contributed it Again, a of

Some higher in QX. of those than were a bit we've seen what QX in little

get a – down with some that Our experienced replaced. had that of of little recorded a But bit we've labor would the in drop cost in would turnover in we decline later quarter, bit. a revenues, little sales do which as commissions the G&A, G&A being be in rehired the also There QX that's expenses temporary there. those lower staff

there again, small for things here concerning and several to contributing nothing but sure. alarming movements So there, us

Jim McIlree

Great, a it. thanks right. All Appreciate lot.

Ryan Oviatt

Thanks, Jim.

Operator

Our next with question Capital. with proceed James Jang from comes the question. line your of Please Ages

James Jang

good Hi, afternoon, guys.

Ryan Oviatt

Hi, James.

James Jang

So just quick one question have here.

there's like you seems hear be – to can it So me? going

Ryan Oviatt

hear can James. you, I

James Jang

Okay.

next if and kind stabilize, opportunity exports year prices start present of increasing So you exponentially guys? what LNG kind of that does for

Ryan Oviatt

Cam. think a great our Chief sounds Officer, question I that for like Business Development

Cameron Tidball

Sure.

that obviously There's think, So to until late maybe that to and even I'm two taken capacity going those Permian you they're that's adding, in year. you those I the early to LNG feed to going next need exports, sure. to I got – trains, The going I'm don't to know, happen, still for they're hearing not Corpus adding rumblings, feed – be trains obviously, trains. go it's we know year, have pipeline. Christi, there's hearing of going they're the there. in The next care it Profire, to helps

lot's going depend So to it, a on to have are trains. they going those feed but to

year Exxon that. with going and that beyond. lot increase So growth a the that the to Permian of and two We Permian next they're that Chevron will only example, there's the be know that, in for are investment claiming in

supply lots still me tells there's to that that that. feed So of

should not. remains whether seen will it's be or but to Profire, positive However, I it that be be think going a a don't a huge – for to like be uptick

what of supplying won't I'm hopefully, it definitely lot it hurt they're won't a us. wrong. already but we're there us, But think I doing James, hurt already,

James Jang

any inquiries to additional So wanted haven't I guess, guys? gas from had is, nothing, I the so what ask nat you

Ryan Oviatt

and there for No, not we control have those that trains, a don't yet. either. saying system place really. not We don't a No, will. really have Not. We're we

James Jang

with have do guys guys you you – gas work producers. But

guys? that lines say you the would time wet are their So than quicker

Ryan Oviatt

So where producers? you depending gas the are. Well,

know If producers, all then you're gas, the the, gas it The areas, we get very it they We with the they're West And in in Northeast, move might Texas right? be. there. traditional. gas and producers and liquids midstream other the of, whatever aggregator, to in what dealing sort

But coming are equally gas So respect they're in no, lot as we same We on really times, a because that. as of player. up them in the we're strong liquids. the nothing's

James Jang

confident you price of the terms cycling looking And year? guys, on budgeting of, $XX, this in next they're the Okay. can be, for the how – oil that what upstream will kind to and middling, at stuck band that in their just $XX –

Ryan Oviatt

lot in So a we right Intel. now are of that of process gathering

believe – But I have and they're XX going way to A bottom customer of that XX of they wind. that going think, oil but that. again, to our kind idea additional don't the think lot our top Yes. if getting then We get what of a the changes the at know we're add to to of price. We that base close think with we believe of I an do, looks all through bottom, I what we're the of them, believe E&Ps like. lot we're them

forecast next but do that I they enough a in We December would coming, customers' not the plan a of drilling complete so throughout and on probably for say, and November, of spend, terms we'll be have year outlook. our on still what to January. next lot And early learning over year's already lot data

James Jang

Thanks Yes, guys. I you. have. Got all that’s again

Ryan Oviatt

James. right, All thanks

Operator

closing further like hand no queue. to back remarks. the I'd call to the in are questions management for There

Ryan Oviatt

would quarter Thanks our us to of for the to everyone all the discuss results third support. for your call we of thank of continued you today joining like XXXX, on

to any discuss you, and we questions day. always, Thank have you are a have. great available may As

Operator

for does Ladies conclude teleconference. this your Thank you gentlemen, today's and participation.

lines You may disconnect time, a your wonderful at and have this day.

Profire Energy (PFIE) 9 Nov 192019 Q3 Earnings call transcript