Profire Energy (PFIE) 8 Aug 212021 Q2 Earnings call transcript

Company Profile

Participants

Ryan Oviatt	Co-Chief Executive Officer & Chief Financial Officer
Cameron Tidball	Co-Chief Executive Officer
Rob Brown	Lake Street Capital Markets
John White	ROTH Capital
James Jang	Univest Securities
Jim McIlree	Dawson James
Samir Patel	Askeladden Capital
John Bair	Ascend Wealth Advisors

Call transcript

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Operator

Good afternoon, everyone, and thank you for participating in today’s conference call to discuss Profire Energy’s Second Quarter 2021 Ended June 30, 2021.

Joining us today is the Co-CEO and CFO of Profire Energy, Ryan Oviatt; and Co-CEO, Cameron Tidball.

Before we begin today’s call, I would like to take a moment to read the company’s safe harbor statement. Statements made during this call that are not historical are forward-looking statements. This call contains forward-looking statements, including but not limited to statements regarding the company’s expected growth, increase in operating expenses, diversifying revenue streams, expansion in new markets, product development, the, the availability of company resources to make beneficial investments in 2021 and beyond and future demand of Profire products due to improving market conditions. are uncertainty statements circumstances. changes forward-looking such subject and to in All

and actual to as identified statements should place future press are the as forward-looking to available or Exchange obligation provided this www.profireenergy.com. economic, It remind be the and statements. and that of like risks, circumstances, cause public Reform of will except not results All uncertainties by Safe will with forward-looking statements could market made assumes I this in statements. or this as August or subsequent factors could or Forward-looking by guarantees to Factors date involve on described update company a the would the release, events forward-looking accessible not starting results replay All only being required in/or business, risk filed the through the be of undue company’s Readers company’s also of reliance certain via recorded website Act are the are that include call XX, yesterday’s the the evening. well is in XXXX, and everyone these no the materially statements regulatory Securities Commission. differ from forward-looking to performance, anticipated and release forward-looking for statements reflect to as later of Litigation link law. at that made materially events events reports periodic such results forward-looking and assumptions, affect XXXX. statements Private pursuant Securities provisions Harbor

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

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

call Please to and like to the ahead. I'd Mr. Oviatt. go turn Ryan CFO Profire of the Energy, Co-CEO over Now,

Ryan Oviatt

will today. on then start over of providing turn some to the direction. the joining to welcome and review strategic you, call updates quarter will I discuss of Thank financials. the are the our industry call by on on Cam and a operator, outlook you by all comment And the some highlights followed and who from the I us and we to business, call our

quarter well show within continued both to second XXXX oil The restrictions to business The and of the gas to as pandemic recovery loosening demand travel of market. the the commercial increased for signs establishments, and reopening related as led retail has of and of leisure.

a during a a quarter barrel As with the for XX% current increased of prices the average result, oil price at three-year high.

count XXX recovered was rig to recovery. Last and in gas of but for in production the over in Ministers has the COVID company X% buybacks. each the This the a rigs largely XXX shareholders some reported given have reimplemented month since to quarter demand and ramp month, The last could a demand COVID the pace The dividends such flows which XXX. is are push remainder Canada as the performance cash on the count the governments per onshore last days, to for time, and dropped local budget announced mid-XXs vaccine. increase the and in mask companies expected response the the the best oil progress year. ongoing This state OPEC+ recent to July. five was returns are represents in considering to quarter day WTI within and their remain E&P production up Despite average in drilling other in to activity improving and this global revenue the cases, and of many quarters. $XXX,XXX rigs improving hinder US not in In constraints through the near-term the response growing higher or for outlook, barrels from capital mandates of rig

to continue CapEx couple drilling higher the deferred than E&P their prices. new years wells expect rather of We was despite to the efforts existing focus operators over on past wells maintenance that these of

future our expect drilling We this with for production and a market the and we press for demand discussed the ramp. Yesterday filed release. after base quarter in capitalized quarter's to for our the let XX-Q start stronger SEC that me results the that, better Profire a us trend turn will create customer highlights when XXXX. second ultimately and With closed to financial

transcript XX% pressure that As the business. sales see expenses industry unwound midstream our the and our cost million. approximately labor implemented of of was product million service improvement the operating support were resumption a be always shutdown. million response a due half XX% expenses the demand our reflected call The below quarter and second year and areas likely to year-over-year below quarter recognized other furloughs in compared will and $XX,XXX revenues, section needs XXXX. anticipate, year-over-year to in improvements travel year our and remained will our quarter, historic Investors a that increase We expenses revenue, the was $X.X and rate. both both range, historical first to market increase in to XX% pre-pandemic service levels. of second work achieved we coming sequential in Gross of a and website. prior we of revenue. documents more the represents to basis, in continue represents Total COVID of increasing our Gross $X.X the through revenues significantly but push $XXX,XXX we QX In sequentially compared quarter. hard increases will from the The margin new the into the improvement the the customer as increases the $X on $X.X posted of for year, a this ago available which The On were the of quarter from for were industries. in related million last result still continue of until million to teams and are those $X.X and through products days. to of as to modest in This second increased basis operating which quarter run the but to second our support were operating XXX quarter, improve a the for point profit

amortization net This investments operations flow Cash for was in $XXX,XXX $X.XX $XXX,XXX prior per second from the the for quarter second share of XXXX G&A June. the million of of second in quarter $XX.X six in strong $XXX,XXX increased loss expense last months $XXX,XXX expenses increased to $XX.X compared million, net to the quarter the XXXX. X% depreciation totaled half first due year. R&D Cash the of decreased million, increased $X.X from loss the compares or the loss of first May to quarter XXXX. receivable in Specifically, Accounts first the of million, and second quarter. X% approximately at or compared year-over-year. liquid sales quarter approximately $X.XX year and year. start from in to to and per per and And Net share. share or of was the approximately $X.XX XX% $X.X

address represent inventory XXXX. in sufficient million from end our balance finished our the $X.X million, to customer at $X.X of the at quarter mostly levels, down of goods, believe current Our near-term. the remain the which orders We was end inventory

debt-free. continue the from now overview We to the our and turn operate to to quarter Cam, an I strategic provide over will Cam? outlook call and highlights of direction,

Cameron Tidball

Ryan. Thank you,

slow of sector overall As to Ryan the a signs continues petroleum and exhibit recovery. mentioned, steady

well We our are during as with as the reported made industry results. pleased progress in the the we quarter

that media in lack However, outlets. community. from the terms recognize we from remains and sector financial overall, suppressed, the of political publicity negative And of investment

during year quarterly to average pleased that, of count the are from rig quarter North quarter. the XX%, America see ago the was second We for up XXXX,

count and rig Profire's As critical completed, solutions we drilled, production. wells our are in business the importantly, once completed are legacy well have to and is and more mentioned products as utilized previously,

we are half to will that continue industry, XXXX. second improvements the see We moderate of through the optimistic, to

continue Controls, as Spartan marketing a ECI And packages legacy Northeast training. core to solution several potential in complete They with the Profire. demonstrated business. diverse to whom markets to valuable potential previously, on to ally bring collaborate the Profire's in be and top for Impact They our of our a has Partners. to projects industrial both range proven end-users. in be strength the relationships strategic mentioned continue ECI are have has Emerson Spartan partners, Canada. customer We develop revenue of in products Controls in provide Western of our to quartile

encouraged by development initiatives solutions. made are business marketing support they and to have investments and Profire products of integration, internal We the

thus markets, and in furthering, far, refer the upstream, traditional brand midstream opportunities to, had to Turning excellent of side a we year and we product utility have outside midstream. of strong our downstream reputation downstream what performance as our in

execution, teams' space the project And customers. in our substantial our progress to industry. we this value continuing forward and proven present to products, of Our a look our

We service locations, pursuit are we continued of prevalent these in to are our mobilizing team, where projects sales and marketing place. our support sales initiatives order and throughout which assets have in

for company. quarter, midstream large-scale energy During $X.X million completed project leading nearly a infrastructure the we a

in us future. they require project that design with performance Our in have and installation the plants future expertise to several opportunity upgrades have afforded as this support, solution near customer, participate opportunities will the

a at Profire's plant specific to complete the chemical Additionally, quarter. we first were during to petrochemical industry, able the project

Our chemical approved, selected utilized appliance and in burner in solution for use refineries. that a plants, specialized is and both management was on the

supported outside for represented gas. municipality Our diversification projects, one credibility of the focus quarter This infrastructure. an reference have major opportunity. to into construction in we Profire revenue to of in and our of In ability projects, and appliance to similar and related of this oil the completed midstream upgrade win applications several project quarter, markets completed related new completed a cases our strategic

participants revenue continues package updating transform in our industry in the to evident with second gas industry. initiatives. in prove industry on starting our to discussions highly the that years. traction are we in we energy to markets, progress We are you, will payoff. to look necessary proposition forward from in provided engage opportunities diversify as new efforts also as early-stage mining And and as our green We in the significant these complete We we believe, business encouraged helping focused industries, Profire for These of energy incineration coming winning. streams. be potential the use value received on strategy and non-oil the remain our overall to by part

We continue combustion America. of North to variety suitability, across a demonstrate management wide applications in burner and

to trend remain focused continued and partners, We our and growth expect development We product on organic continue. channel this driving enhancement. supporting

discipline. our balance by enabled is strategy Our strong and sheet financial

in as of in new growth investments our revenue within business, and support talented protecting legacy exceptionally We as deploy in both growing our our core streams, develop continue team. well and our to markets to continuing business diversifying

for contributions so the Q&A ongoing we get appropriate Before customers, for would turn call you our we our success of dedication would provide instructions, please the like over towards and the and shareholders. I and our company our their to Operator, can started? questions, employees the thank Ryan

Operator

At Please proceed with first will Instructions] Absolutely. be Brown question-and-answer [Operator of line comes Street the Rob session. your this question question. a time, Markets. with conducting Lake from Your we Capital

Cameron Tidball

Rob. Hey,

Rob Brown

Hi, Cam. Ryan. Hi,

moment, Just thanks or you're And sort of overview opportunity of XX of quoting in on the stuff facilities. the size give opportunity who a that project you on named on. the What's projects the for of kind you at of were could terms color that number kind pipeline of maybe over the pipeline? next the You months? us have customers large seeing of working working some follow-on the

Cameron Tidball

did they midstream call, question, in deal the on QX, that kind of, remain in, the Thanks Profire that two of is being applications, plants. this over always. thermal QX. great Whole are but tight project. years, aware Rob. team very existing completed the many infrastructure turnaround. as the Yes, not appliances, that other where in energy we applications markets size It's a all that our we've their where done have facilities we really and that in Yes, an of some project of it we scale larger customer but one in and involved companies bigger the to midstream with go we in to for executing have There these was term of

And for Especially is what Texas, for outlook plants have Permian these customer a like they're our applications, the the types over which projects to really, our mentioned three areas of line, lot of straddle well well. a petrochemical small applications. things we'll plants as these hit a gathering looking multi-pilot, product deploying call, the in XX perfect And call, where Basin, executing this the in stride, has We've several on starting terms into got nicely not the XXXX we reference projects, they're In dovetail upgrade. ones. midstream Oklahoma, case. you we've that only multi-burners, the as great really months, also years to next on plants, -- that of facilities, we're the these We're really of batch more these South like complex last lot, been the in have as refineries.

in terms So thing. Service of we significant working a that's team Don't Engineering But the a number. can need spectacular is dollar for to It's sales as deploy sure, well. support on than amounts, don't this total have. it and we in it team that. team for at Profire something TAM area, in kind and the have our what type of already operations is that different moving -- of this target, its right is wheelhouse.

just, It's building out reference our perfect. again, case. So,

Rob Brown

you That great. the be terms in sort was continuing a how trend good with had basis? very kind Is it continuing overview. still a And a are or visibility trends -- demand a seeing a you quarter of week-to-week Okay, line good to you do demand on of of see into as get here? then, you low -- strong trends the

Cameron Tidball

want do that as some and you to do Ryan, I tackle well? thoughts can one

Ryan Oviatt

The utility is little certainly. downturn typical as in and and legacy at forth. so in of far and It's summer pretty of upstream, things. month, seen that it to hot right now Even Southwest especially, similar most a are bit gets downstream past, in season and the being always that have historically activity, years from ordered. what maybe as months you visibility remember side we really two a to our midstream Yes, products the business, a when the tends Midwest have really

of still that healthy But short-term on that little a bit the in in. So do that of happening have orders we're do remarks, are number we now, projects kind they're but as indicated coming on number percolating. also side said, more I see a of prepared seeing side -- a the as of we We things. Cam of bigger

but And some longer those turning we're are still have and orders, a much them customers into do quoting others horizon. sales of with working on,

even our some the we're bigger into Some of of excited XXXX those projects we those number about the out is are into that are for them projects. quoting number and XXXX right of of finding. that we now, team But things on, quoting the

strategic Some getting wet and in feet recently of the us. opportunities their that finding for and getting we've done hires are really

here we we'll year flu things cold uncertainty play around to still is start that. of to who to situation variant. to couple the of than There that. well the the a uncertainty was uncertainty, going is than are throughout helping the quite certainly right how have then reopen we'd have COVID still related We're over adoption is, from get numbers traditional So, kind and Delta higher now, highly much are and that's seeing knows of preparing going things. of time and in COVID The to months. see are although, it a to been see that within But better been optimistic one they month's every be love fall the that now, as America, we a stream are next steady And a of with ago. as and much situation some and North summer so into seen out is going right vaccine the lot far improvements schools that this that season there

Rob Brown

I’ll the over. Okay. for Thank turn you it color.

Cameron Tidball

Thanks, Rob.

Operator

from ROTH question. Your next your comes White John line question of with Please the Capital. proceed with

Cameron Tidball

afternoon, Good John.

John White

Good morning morning. excellent afternoon here, results. Good good there. Boy,

by me Congratulations. beat large You margin. very a

Cameron Tidball

you. Thank

Ryan Oviatt

you. Thank

John White

in And sectors he downstream. and and gas Outside gas Cam's what you're about of oil as sounds I optimistic oil optimistic working are diversification industry pretty midstream you of effort review the the penetrating? -- the within of most business the the and expand to know the detailed

Cameron Tidball

construction at looking the number last the numerous projects there's niche really gap from a and of perspective. as the we've tracking everything expertise We're so for in combustion has Profire months We're question. industries. been finding infrastructure, we're well most probably great as which the at Yes, overall XX far potentially successful from and that most that a

love Some of some for is It's that the we better. feedback we've never the we've worked of got on upgrades the done plants quote.

who infrastructure construction lime variety things. some things done like of your great has Profire We're sand offered being asphalt ash value those far plants so your -- there's some a So your things that's fly dryers, drain, finding where plant, for quoted. of traction far very with that space. projects OEMs sure. in a this done several here are couple The good But there. that biogas them the operate we've to We're to year new being sphere so

mining applications the but in we're regard. prepared the seeing did push incineration remarks, that mention in as Some in a industry I

as energy to as there. to is actually come table in offer one cap with the to recognized something partner can of feather how of talked on. of renewable So as just deal burner know expertise. management with And -- be need need you several major call there's it's there it what that that about a management it's be the we nice to working on their as our they those. and well a it this not on some to utilities There's turn do might will advance with transition on looking combustion. then, previous that things combustion a they're for variety. be. a a whatever to easy so got space we've What calls And for that of we you in course, projects is to as and We're find think lot space, consider And burner

we we forward really so the -- in that's But to far. call very progresses. where of has encouraged that the keeping how on in look that started So said loop as we're

John White

so much for on. the Thanks Okay. detail. pass I’ll it

Ryan Oviatt

Thank you.

Cameron Tidball

John. No, problem. Thanks,

Operator

next comes your Jang with question. the of question proceed Univest Your from Please with line Securities. James

James Jang

is Hey, it guys. How going?

Ryan Oviatt

Hey, James.

Cameron Tidball

Great.

James Jang

here just from me. So couple of a questions

percentage as next service, expect out of what a it move field. see that much increase of to you to mean, Can mix we you elaborate you how what's terms In forward? could could of servicing get you I already a looks bit the like into ramp-up start year? do in on going guys that of see as to type kind we

Cameron Tidball

comment in. average give It's strong not question. have that normal of below. It's for above way Yes, usually QX. or did Ryan sit. quarter just on that of great is normal. around about some It the I'll and a right was we for sure of very where approximately XX% that kind jump in kind We service way

We develop is significant which to so to and see industries I its Do but year this We to of into become as that learn great we partners started believe service roots. a that within service is initially, some well brings companies niches a exactly what learn to have those find team that out still how into and our do markets. work products in as sales company being those stages. you got those spaces opportunity done and will it not driver develop place the product Profire as potentially turn Maybe early revenue? very That's combustion. of oil gas related for far things for a

encouraged the see have the capacity we by a able billable actual but don't of are to we capacity that for time. massive we and percentage it So very we're as use uptick,

field. component. into of our last maintenance some XX,XXX. are now mentioned you year this seen and revenue products all -- is at we've Yes, is if with trends, Now key the base over that preventative a installed And year year you the before the in the look

give an We our efficiency acquired how We opportunity high on a also a footprint. to we that natural have used overall wins company burner with think get we opportunity with that see they that's in that compelling them to burner. in quick applications. see customers XXXX COX We a report their a had and offer draft potential

our definitely add to would that something anything but product be hit revenue to going service you revenue. as that's would well our Ryan, that? as So

Ryan Oviatt

Yes.

really Canada. that is team opened I people we in thing it up think, our more a area small made before. would you opportunity covered increase lot covering in didn't we add It's Northern The Canada service or a of well. I have kind a of service have

quarter. performing to there. projects the of installation QX the have part also were in strength service revenue properly that the to and or we little bit But and the of we for essential a up it is getting revenue customers. service So the expanded the attributable the in in able running and our large projects increase and these on doing complete Service is

continue run So critical as team to and and those do the to essential is of right we'll to projects we our strength absolutely continue how business see service now. service we

James Jang

Thank you. products Are up your I any of replacement at for, guess, Excellent. all?

Cameron Tidball

is all or customers what will we've middle that. consider XXXX does look kind we XXXX life. continue -- before. do them And like? It in X-year creative product see But think added of nicely. customers have enhancements We adopted already what the plans for We with be replaced yes, to X-year customers unfortunately, it's feature two industry us – plan things point the be have saying in We're regards now its one is the in Our funnier but long future. X,XXX that it talking tomorrow it very then the very to where well, But the about naming. is use. XXXX. of of new the the what do replacement who can replace of although these still like some to okay are perform version don't we its does been look have but to we have that there to to continues But has happened rollover do our the

important supply runway chips right given Ryan world's inventory we and got as healthy we sure. of have We're is really core got we a we've and be products of lucky a making lack And happens. to -- to of there now So that that for the of the these have computer on mentioned which sure for and that. strength our inventory where kudos that's our just place chain a operations supply like team things in things

Ryan Oviatt

I'll than in ability in and XXXX it what currently was built with different I'll add we're that XXXX, Jamie the sorry just a using the jump the to the really XXXX But that its capabilities to really in and the there. further those designed or way there. cycle field upgrade extend much whereas the -- that life that the to XXXX and XXXX are manner we've for the isn't built

So, those it the features products continues even have customer field, the upgrade is and may that if to bringing them. life likely and technology we're in new that a longer to add improvements

So as well. just mind keep that in

James Jang

Okay.

thanks Sorry, that. for

up expect should coming the top line soon which help we event replacement large-scale the could right? So cycle

Cameron Tidball

wouldn't you... know don't expect large would But Ryan I the scale. -- We

Ryan Oviatt

say, would XX-year horizon I certainly to talking X- in happen. you're if that next could the

the a of last As this out have out Cam over lot year. said of have the gone couple They that years. they're XXXXs gone going out,

start least. cycle expect the X, still life would those that ago or So, have be should at we to those to replaced could X- years or X, an But five XX over those so. next to out years XX-year went

James Jang

you. Got

expanding there's Okay. have guys announced industry like seems it profitable My they're the policies. new instituting seem dividend is overall the they're like it announcements on But question does bigger on CapEx. that next

on kind debt much just not too of and at profitability from discussions So, same spend down nonpublic that players smaller some they're pay of CapEx? deleverage maybe or the players the looking with is your the sentiment that some

Cameron Tidball

probably towards a Yes. bit. will the or down look in lead When and early as global Obviously, Delta or September supply what talked that things variant indications November. the QX prices building and starting QX you mean QX at all as outpacing be. to We -- will impact point could October go inventories which about this demand like commodity will probably virus

with analysts that will absolutely companies majors trigger still where most modest per But that of day They're are your -- comment probably increase barrels XX% on the today. X% into increased is which is production you're seeing no million to CapEx your programs. XX correct. public However sticking are very close is to There continue it for drilling. pulling levels to their saying that

Your on independents are focused growth. private your they some energies of

their they that probably plans in, XXXX think XXXX attractive be of second there majors bigger from also an public they'll groups. look But to you looking -- make to perspective. they'll themselves of some term be your Some of might cash will and as And and through we if can acquisition hedged half into to the not use your out temper -- they'll supply driven just of some to and on most growth they're that's bonus get lot things just demand. they it's continue also focused But versus because for it. to private. barrel and executive them production the And it's sure part more cost realize world it the a some of a other ground that for a

James Jang

for channel oil to the pricing last around the think -- going positives And coming right. just general that for Gulf. you out out pricing the of Gulf question industry? make US positive the Do kind the the of on for any that's see new Thanks that. thoughts WTI? it from is for Great. All you this do anything break Is

Cameron Tidball

got some question. have do that thoughts you that. to I on do on some Ryan, one? Great research

Ryan Oviatt

I to need I I Yes say that what to have and research don't it will would understand better. implication have. know

James Jang

think market, WTI U.S. which to it options I positive mean landmark is basically is Brent have versus could the tied cushing in is I there. you which think the because be I public or

it to can You direct overseas. ship

a where thinking higher. maybe point a another improve public does this little markets, know as be Brent little store rest always root to data pricing could could you pricing on better could take I'm it's been could sentiment tankers. has for the You if and bit. And point that

Cameron Tidball

Interesting.

Ryan Oviatt

to I have that. to pay attention

James Jang

Well, I’ll there. off drop you. right. guys. thanks color All for Thank the

Ryan Oviatt

All right. Thanks James.

Operator

McIlree comes Please proceed question of your the Dawson from next James. line with Your with question. Jim

Ryan Oviatt

Jim. Hello,

Cameron Tidball

Hello, Jim.

Jim McIlree

going? Hey guy. it How’s

Ryan Oviatt

well. Going

Cameron Tidball

Fantastic.

Jim McIlree

math the quarter or took revenue it Is was quarter in a that issue there product with my even pricing place? flat substantially. looks is mix margin the prior right, issue gross if So a like though was up

Cameron Tidball

tackle Ryan, do that? to you want

Ryan Oviatt

of me, years those front significant product customers have issues. We of probably the of bit some demonstrated but customers customer or but either do any holding impacts pricing, accurate. the a on over and mix environments. discount. has little -- out at There's just that do do We depending and up job certainly I also in Yes, our maintaining difficult number prices that quarter we even buying, challenge don't to different have steady is have down pricing there prices mix good believe we been mix I who's levels really It don't try think a the that you're do have as every specifically in of we that we've buying broken products. the of they're a well quantities are that that can

types that. of the come further play, can I at drill any detail So things but the have can don't moment into mixture on into those I of

Jim McIlree

helpful. Okay. Great. That's

You business. or both business sales talked legacy your the from upstream range a sales lot for of upstream you either a Can non-legacy quarter? about the the of product put a away percent move came from product that

Cameron Tidball

Yes.

just it's drillers upstream we the in part, and their United Canada in definition blurry. lump midstream your and midstream most because producers your the upstream together For States of

months midstream was part a and of doing successful, oil side outside I products overall be since in very tracking much our in sold here. we've that was in would strongest project are of so for front of some gas. last started one have aren't But that was that XX call and but combustion our strongest quarter, it it million. around those in But higher the the I for We services me, we that drilling that the quarter or time quarter, nearly guess percentage gas of not together but and your potentially what oil that marquee in then then quarter to X% processing is the ranges lot together. obviously, was know the Downstream upstream anywhere think of very it of midstream downstream still we higher. with light different true the around and core we X% on transmission most international So of would that $X.X depending the have them truly kind the XX%. sit -- But for is different, I our is And was which gathering don't it efforts the outside year a small. remainder from anywhere midstream operators that they of business X%

Jim McIlree

I'm get this see for as and is this been this and where specific recall many at. the I about for now first think some company don't what trying that Right. the initiative to time this -- you've But I this Is opportunities -- been an many successes. I know you has it's

get So guy, flavor to I'm a it. -- a numbers get trying I'm to to just numbers I'm trying so

Cameron Tidball

limited business. Yes. part of because ERP -- to by type And fun want to track degree that's do your a your the how manual to sometimes that is you much work and

was derive for something But it for So we this and that. we as is up with. mentioned a could strong sure quarter come

doing what we Some haven't always of downstream very your projects bigger nice of is players true in call And did always that midstream. midstream attractive. you're -- the some right, been we side the but and looks place, been again it we've pipeline

So yes, chunk But but have the broken haven't whoever Jim, to ERP, out that getting really saying, we it's is I interpretation numbers maybe out. we sale. that in don't up of specific get what ever because you're our

Jim McIlree

Okay.

Ryan Oviatt

sales, still strategic then and of can than certainly can to less meaningfully much as that the you get quickly our to But provide that can, now, we grow revenues want but we in tell able our to its small we we’re right mean, and through the you as taking, reporting it it so more I not can is X%. looking assume, our obviously, to And once numbers gave organic then be that that, as various a as only out we’re partnerships internal we total therefore, that. efforts it Cam break business, X% and portion the that with action to quickly of through where its forth. beyond get we’ll Likely, well above grow from X%

our as and take historical are that's but Our gas business, as internal oil segments time these become growth that to large just get there. obviously to going goals eventually

Jim McIlree

a the changing states interested from regulatory in there's your federal talk two to little and And can Mexico, regulations. environment? if business I'm or relevant in Understood. to bit others been those any state Right. And Colorado you about impact if particularly and

Cameron Tidball

of have and part is purely it It's a of gone. obviously moving suppressed investments Colorado from for because sure. target just E&Ps where

there's as haven't mentioned have before that been -- -- we most majors they they're available land the and really part no of lack really permits the not For deterred.

Now, some down yes, of the of States. it New but when you United its percentage in production Mexico, in Permian really Basin slowed consider the hasn't

areas our with to I my methane looking my look to does What are we'd really seeing see And emissions more does Again, to not is COX those strategies mean? some footprint, there's am is one some So are partnerships strategic like are that future revenue what from what of where going standards we're like? customers, Profire is get customers. potential E&Ps leaks? to that. report the Profire And working where with to fit. what going existing how of working more So,

in ability great new We name, potential to have brand affords them. a the which bring for us opportunities

we the And drilling minds exploration that top on of potential the drillers of of so more than companies production restrictions. probably that's that regulation and see and

more of something well, things. than your it's for stop drill now, a fracking that of majors if all to which without have upwards out else land course, left more anything came But discussed been than has enough right changes of before decade Now, permits, enough that field, changing.

color? else might Ryan, on some regulatory front So have you did anything the add

Ryan Oviatt

really No, I it well. you think covered

Cameron Tidball

or other your question Jim answer Does that thoughts?

Jim McIlree

for that's a the does. Appreciate answers. perfect. and with everything. It Good thanks it lot. No, Thanks luck

Cameron Tidball

you, Jim. Thank Yes.

Ryan Oviatt

Jim. Thanks,

Operator

comes question. Your the with Please from proceed of next question Samir your Askeladden line with Patel Capital.

Ryan Oviatt

You do unmute. Samir, have Samir. you? we Hey,

Cameron Tidball

you are online? Samir,

Samir Patel

now? wasn’t you me unmute. hear I Can tapped Hi.

Ryan Oviatt

hear you. Yes, we can

Cameron Tidball

Yes, you. we got

Ryan Oviatt

Sorry for effort. that question

Samir Patel

Nice. Yes.

haven't of So, on. things a couple you touched

international on then front the second back The on M&A of first is use the with up, cash the travel is opening or and progress the any balance sheet.

So those? want anything you share to on

Cameron Tidball

international. to want take international not we Sure. anybody do So overseas yet. I'll have as M&A? do And sent Ryan, of you

remain South advised. still to go - degree can America not a now, you Your countries

that. cautious a being little we're with So

have distributors still of same we group the However, that we've been working with.

we people who some come which face-to-face quantifying you areas. bit bringing good right can't a those activity. close partners. little to the last better we're you the market. the they're ensure opportunities more really are it able kind year Asia far this historical, region wait there We MENA to we've one seeing door difficult would do that so of to in it's always still year, reasons they're expect. maybe It's a the to to one more to to of revenue and Still difficult get work remains haven't remains our seeing compared in And see of to. be that selected It's terms closer that distributors In

shale on it. to alludes someone's tomorrow all five year North have attention the of We now, as well. not in way going terms changing, Profire everyone of it right up to an don't to our with So existing we and it's But don't or with team working because a pick tackling to it's we're the again massive But in the people. have We for that a think American supply, find overburdening them and it's bricks-and-mortar. not is we're investment or giving EV is years.

places for unless strategy. to in We're up that changes like the policy its going is And Canada. US whole in going in internationally pick thoughts Someone places see have going or we're ever-increasing to the see that the to demand. supply to on

progressing. long So a guess Samir, saying, of I way it's

Of course as just for It's sure. it attention. a as -- we it's process proper like fast giving not but we think slower we're

Go ahead Second question is Ryan. for Ryan.

Ryan Oviatt

of make It's to I'll sure and it's much either better on easier, we that, look protected. was across we And travel being question But are before are north get getting we cautious still goes in or even safer us environment And still forward current I do. when challenging. and and as that M&A comments reiterate far is United the becomes just as to but of to people use borders States south cash. that still the Second in for Cam's impossible, challenging. not want just to

On even to cash front, maintain of we've even the M&A and period kind obviously balance and use the our into COVID of XXXX little and a bit able been over XXXX. cash of grow

business as in small reinvestments that at as for our looking of working growth there. we're are a number we've we things well, So -- prepare some we're some opportunities strategies to making the of We've on. and mentioned

So as up with those type reinvesting bit those some little in to projects stuff. move cash customers Very more putting things some projects R&D a alluded be to interested other in that Cam helping cash power investment and what some starting people or and far some we're via into might ESG-type behind of of as more forward initiatives.

that that, were that don't other pace, simply making still at growth some new prior we've a having are kind pulled still investments potential lot in just at some are of partnerships, emissions on but the to a of revenue the strategic There that technology number, that opportunities are seen QX to COVID. in be in steady slow investments about. M&A down are companies continues we ways are looking where these from headcount could good the number but as things and are up current developing, in second joint products, We're back we the we're front through fit, very of help that we can We plans worried again that a things, things reducing customers modest regulation We looking utilize these improve significantly interesting and our that our ventures, cash. of a year positive at and that, potential some with with at also half anticipation ESG looking that still that push the our like now to to some regard. well. and we beyond ramp same have to But that some

also, of and opportunity that change of talking the can buying of very price We attractive shares that we're looking that a is again we see do still are this considering past be we decide lot as going something be might still back. done think that interested some we've we right the forward. those about to what a that in the lot quite share now would in short nothing still but moment that, So imminent types term, And in. things There's at pursuing actively quickly. the at

interested are different these of opportunities opportunities for lot a certainly, and us available using in growth So we forward. propel to very

Samir Patel

good. guys. Thank Sounds you

Ryan Oviatt

Samir. you, Thank

Cameron Tidball

Thank you.

Operator

from the proceed your [Operator of Ascend Instructions] Your line Advisors. Wealth Bair comes Please with next question John with question.

John Bair

you. Thank

Cameron Tidball

John. Hey,

John Bair

are folks. How doing? afternoon Good you all

Cameron Tidball

doing very We are well.

John Bair

Likewise.

and addressed been to angle have What one type to companies smaller questions have kind do back it. my of your previous private spoke mostly say in percentage majors versus other forth, of way about up looking that players. but of from equity words, smaller but so as of number going the to the is a little you of this at you count majors the activity rig much exposure independents? coming there, cycling is a companies privately the sales owned So their large or not and different ramping see a In with and operators doing narrative to the they're

your exposure your what's in mix that? So or

Cameron Tidball

comment their And still great fleets a when still normal your bigger your trump it drilling have of not of that's we're if they're that that it's – the are even companies. the the because such size production I'm we've quantified the before share. It's the don't sure, they the from with a is their coming majority appreciate your that question, they're of in in your smaller just private although, we programs of adding companies. business the high percentage-wise private, Well, your grateful some your majors. independents market your we larger I opportunity smaller John. or producers, drill core drilling that of know than still – smaller still and actually because than still But to though more of

on is I'll market to comment that. such difficult share that. just say, it's I difficult let because Very exposure? Ryan to So large we have overall, say, what a But our of really think and

Ryan Oviatt

rigs some tracked. in those the back of categories we areas, or cases if XXXX. add that. active effort – near likely don't numbers nowhere were they that rigs rigs good lot to to couple anything historically, could at up had them do. XXXX a But have would what Again, little It hundred have require working can those there. is the five I was that forward. some going It into in some look to And reported something look right producers of currently companies just and at level Cam smaller a or we going is if that's that would tracking fit as a you of in their doing, talking, whereas Yeah, one it probably probably majors same would they're gone of have those

a kind of us that And doing back that's than And spans these still last but of this we that I the we're much period, more customers mix I base right they've different active that, don't majors a ones me, just XXX customer where our just that. is reduced kind bit to XX-month guess, have XXX think however over purchasing to the still or there in I was the look are to different So numbers but a higher back and than think of in they're the it groups. we historical levels pace. front the around if quarter. even I gone at of in from quarter had all drilling smaller add

spending what we're they're the lower and majors. a the But So with that, is those obviously picking they're ordering companies. of big number what of than again, dollar amount up much

So to them. think I mix very but exposure really difficult all to that we have together, good

their for of drilling strong very systems the new think have burner We're of share solutions that. we getting management new the market share still I still companies purchasing lion's are that efforts. and products,

John Bair

okay. Well –

the from that operating. are their So dropped pulling to of just or the five one players the say where you smaller rigs But number going, of whatever. they're will you said, pretty if majors much let's as own down on was kind I

or primarily Now in count is rigs – into being whatever to what if for incremental services to get pickup overall you increase they're smaller that non-majors fair is from it that product maybe or guess, could translate additional sales put back enough I'm trying rig at is, in of that up again. coming, the increase by on then, the operators I the are these in a your is folks? private assume – the

Cameron Tidball

up production goes regardless. the extends it's larger Profire follows, and or count producers whether benefit, privates, and drill way, either if follows, the Well, the completion

either yes, bunch Your you're operator maybe thing a going right, depending the could. Permian upgraded, pad of the we on Profire, Profire wells if mega completion to where a adds absolutely one it a treating pad that part private and into a part, course, a pad way already there's up don't gain. on pad if stands facility of a is mega geography for on majors might say, central if up most that. most a going for we large smaller on could is all But average and to benefit but drilling yes, doing have doing not get their that Whereas, it brings they're all be

John Bair

Okay.

that on focus if feasible together if and kind company the a the so detector working that emissions trying well burner Another Wondering develop or they're thought site could that at now transportation question any don't is or mission, management thing? you some partnering to and sort on at go or does given burner equipment putting that reducing with of of of not all if site, you're another with kind on of Are you regarding forth. that at looking your could of monitoring devices but R&D, that management. I piggyback know also that's thing?

Cameron Tidball

call on away been the of But not at we've we're give all going for while here. our the Obviously, looking John. above, all things to a here. secrets of definitely Yes,

solutions this Is bunch? to customer or development Our one We traction this at a we that what look well depending the through that look We're then prototype internally there most how on support doing that then looked some quantification one leak with you And you can development consider yes, you working customers product meet do going with our We've and will our this for initiatives. was idea. they team bringing to break is pinpointing things and what partnership. as we now, does our customers is support and considering for potential and being team and it? looking just want research their we it out. with really and a see do development right customers' mentioned We're get and monitoring development detection it leak space. know Is across thing state, product is need? well get to are get play. – So at before. support? We Operators in And don't play that's out then someone is is and pay to considering ESG it research absolutely. you traction. what We the

the be For with world, there give example very that's can that a kind help be of in to And quick it all we just our might we report appliance with case. of able reporting Well they efficiencies on not potentially and each that XX/X. them if would win.

most is sometimes fun So. really and interpretation left and clear it's regulatory never times. it's to again

But all and them. yes, those kind we've so got we And if to invest of all those things, see things, get probably those track to support all things use and to not them things. could really for value create do then it's things. can't want must-have to nice-to-have there's do they tangible don't point. doesn't it We We if want it no to watch

R&D So definitely and Profire is our things that and long answer there considering product development all initiatives. John, with but looking

John Bair

not a emission going is to It's going. a that the to must-have. be control Well not aspect things way nice have are

okay talk forward Thanks the answering and you to for soon. good. questions So, look very to

Ryan Oviatt

John Thanks, Excellent.

Operator

the I'd end session reached of to to management like question-and-answer for hand gentlemen, and have the call remarks. back and closing the we Ladies

Ryan Oviatt

today of your XXXX our quarter We'd us discuss call for our continued like to you to on for all everyone Thanks results. second joining thank support.

future discussions for questions. As available always, we additional any or are

this be September October. We are including Relations Investor upcoming the Midwest and Small Three Growth on our the website. the Conference you, the of Investor in James Thank a in to will many Ideas details conferences Growth in-person Cap coming at We Relations calendar great months, conference and forward participating in in these several Best day. Virtual events. you look Part Dawson have Conference meeting Event with linked Street Lake virtual later IDEAS Advisors the in month,

Operator

conference. today's concludes This

your you time. this may your at Thank all You for disconnect participation. lines

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