CCLP - Earnings call transcript Q3 2018

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Operator

Good morning and welcome to CSI Compressco LP's Third Quarter 2018 Earnings Conference Call. The speakers for today's call are Owen Serjeant, President; and Elijio Serrano, Chief Financial Officer. All participants will be in listen-only mode. [Operator Instructions] Please also note, today's event is being recorded. At this time, I'd like to turn the conference call over to Mr. Serjeant. ahead. go Please

Owen Serjeant

and may Good CSI Jamie. I thank for be conference you like may are Thank deemed be third morning, quarter the to on which assumptions call to factors. of These this beyond that Compressco's are remind These subject on statements call. made of statements CSI number are XXXX joining certain the based of Compressco, that to a by number or you, forward-looking. you uncertainties, of the control risks a analysis are and and and many contain results would are based partnership. conference statements

forward-looking are that are that differ those may You of the future from not actual such statements. results performance and statements materially cautioned in guarantees projected

of the Please we EBITDA, call, morning's in to addition, coverage may accordance flow, reconciliations cash the measures. in are of of EBITDA, financial the press website for adjusted or substitute backlog our flow, the These GAAP should considered prepared a course financial information within refer to ratio, results non-GAAP nearest the reconciliations non-GAAP complete distributable public distribution cash be financial period. free context for to GAAP not measure. this release and with our other refer or In to measures for financial

remains results improvement Officer; details significant the posted over Chief with to our of filed website, pleased am our on our XXXX. as on earlier turn out to call I Elijio Form and to November of very has invest all Serrano, deploy business in on it CCLP for in and as be by dividends signs and be who X, utilization the idle, across performance, addition EBITDA, backlog. seen return sequential high In once lines is I can start for opportunities provide Financial our equipment and our report morning, see then again press will capital release went equipment strong or results. announcement services, revenue, The this future. overview get and no team an The will progress cash we prices projections. XX-Q to slowing distributable to planned more down compression previously market is made our paying our on near adjusted before that the SEC the flow, financial with industry in better our quarterly our the of

in fabrication on focus field not top only at to to to in improving the back continue our but at growth, our operations, continued have centers, capture line distribution We facility, improve our office and efficiencies aftermarket margins. to also

no businesses have seen slowdown any market quarter, move in in are into we we the XXXX. the in forecasting of any our third as slowdown We compression nor

permanent services rest part struggling demand to compression for market the sales well of industry some parking While our the sized for the to issues America and we continue business of with at demanding of our directing they address North minutes is few in spend services unit demand how that are is services each companies. equipments some customers some more we're to are of from the solution, on [indiscernible], takeaway our continues also the compression see The individual of us, I'll strong on and a performing. those us strong, giving and capital returns. best be lines perspective provide and the are customers business and

segments business robust continues Services and Compression Our be growing. to

expenditure investment inclusive and XXXX million from million horsepower total horsepower the projected out, the with to to of end lead in our forecast XXXX for $XXX large XXXX. units additions to call. our you to between build be stretch be Lead no that added change are scheduled unit. About on per we delivered X,XXX expenditures. have of engines are million XXX,XXX equipment. to next and be continue on XX% million some $XX times approximately the additional Since on expected from these the our for attached and earnings maintenance them. fleet All key Our our compressors our that we'll capital to of last are to sales to items placed $XX the client There are our expenditures time share over capital system orders of with orders capital XXX,XXX and $XXX customer-specific given is horsepower gathering working guidance plan commitments approximately capital downturn, we compression

speculative equipment. building not We any are

We focused investment equipment wants in we or return continuously and compressor have who to customers supplier partner geographic where areas solutions. horsepower as opportunities CCLP and are experience strengths with targeting of higher, XX% a with flexibility only the with offer systems to new on high existing

margins We fleet. in equipments in projects we contracts working network. to continue market. to is the we into compressor of given for more returns services than with for and are as remain classes the place. reporting and are very and are Pricing mechanics we disciplined more footprint going our As regions are margins where existing infrastructure adding already as investments our incremental with gain the into we and increasing the for with technicians existing we operate strategy customers that our our materially higher an existing new horsepower put horsepower get pleased and the leverage We the return. marquee overall introduce is is also highest business rollover incremental identify on the efficiencies horsepower to clients, The see and into are our contracts

implemented one begin beginning expect XXXX. pricing we it customers. push this The with opportunity most basins. demand have this and price our year price to year for in this Some up equipment the is of to high fourth year terms, with quarter first in increases again across shorter revise those of earlier or quarter discussions the driving the increases We'll

horsepower field. price progress see as put of the with equipment pleased new benefits the actions real the are into and We high we

unit our third-party our We new extremely remains strong. sales equipments million. third of over million sales $XXX orders backlog, September our new activity for fabrication received $XX Year-to-date quarter. through in the Second, Pushing nearly $XXX orders, book filling have Compressco, received million This a months still order go. already. for of we and new is we to many up CSI three which XXXX our record are in

into peers facilities. are to based Delaware gas to [ph] orders equipment around proposals. total investing address Permian Our Most Basins, to million constraints new to would expanding be of and be and takeaway surprised year South if $XXX closure Basin, that midstream XXXX not orders processing these are operators are delivered regional Texas the scheduled build on

continues Delaware well-sized to some we're companies, worry part Permian to of the and takeaway services the solution While constraints the problem.

we expected, industry out we this short and to our are on continue capacity than new large the horsepower for as benefit through be aftermarket of stronger we sell demand equipments, building can. The we trend sales key and and will believe we basins. equipment equipment network purchased those equipment companies who as this in The fast parts to demand new the are takeaway is from continues we infrastructure selling compressors customers us. support in As and life services also as from addressing to future

million revenue. good very quarter, $XX.X services growing to at XX% Thirdly, our had aftermarket in very sequentially, strong a

our we instituted business margins on in from initiatives increased We also efficiency that capitalize prior some as the quarters. we gross of

and that and deferred and as old reactivate to to maintenance capture engaging support are to upon fleet. continue those previously equipment customers that they add Our existing maintain equipments

aftermarket to benefits As look provide earlier, from units also Year parts. for we us often I at mentioned Christmas business sales; this spare services us, from New new purchase and

[ph] our servicing U.S. rigs prior industry While similarly has land forward not to rig The customers future. is about benefit count. rig the the last gas in than the with an count many immediate to stabilized, The we strong each new according X,XXX quarter cases, at rig into about going count year. X,XXX with look compression stronger Baker-Hugh

more demand benefiting Our to customers with associated this. is programs, higher from directly of drilling to Play values compression our the deal gas continue from business and Shale for have

and systems horsepower X,XXX of the last end for end essentially up and on a in at South XX.X% XXXX. deployed to utilization the details end horsepower and third then the of where The equipment, the we'll the significant that, With the higher increase activity financial areas quarter the of I'll from up at to utilization. for is some turn of horsepower up folks for deployed. now the XX,XXX the our provide of from during on of And on deployed XX.X% Eagle Oklahoma, open utilization approximately quarter. SCOOP/STACK most in Overall, over incremental active at is XX% in XXX,XXX. the Our quarter, questions. for Permian, it the uptick quarter fleet of XX% vast XX.X%, the and an gathering We is from Elijio quarter, XX.X%, of operations Texas areas Ford, horsepower increase second is to amount including the entire the majority amount and up with

Elijio Serrano

you, Owen. Thank

and equipment revenue million. a increased quarter basis was to of business to of were Compression second to revenue in year-ago sales. XX% XX%, improvement continued over Services to in revenue new three aftermarket from due increased $XX.X our XXX% points XXX% Compression XX.X%, by year Third improving million. $XX.X to million, stronger activity better line $XX.X increase last unit Compared revenue Services increased increased continued and an also quarter primarily to of sales our quarter sequentially pricing, the XX% All due services year third and sequentially. margins up Aftermarket from efficiencies. with XXX services the this

of being seeing XX% XX.X%. Services with benefit million generated equipment system ERP of returns. revenue the deployed initial the of are margins and gross Given $XX.X benefit of recently new stalled the Aftermarket

a $XX.X and demand by of of [ph] by this maintenance, is sequential levels. and a up The XX.X%, part sales We reflects more who documented continue delivery million of last backlog see continue the with customers that gross year. in to started quarter XX% in inventory increase with the our margins as in equipment deferred improved rebuild equipment the strong this growth in we deploy driven third revenue margins. were higher from anticipation area building of and equipment, activity growth to catch This

with early we where will this to efficiencies to the margins and future in designs those business make unit units associated quarter third increase manufacturing cost While new from some margins continue reflected investments. benefit the stride line, improve

XX%. to We be margins expect above future

$XX.X third Also in after quarter as see of fourth XXXX, million the in in Adjusted third quarter the quarter receiving of EBITDA $X.X the to non-cash to the A XXXX convertible the from in continued the up $XXX the million in increases over quarter. we expect of a We was previous of adjust value Series expense the million to result equipment new carrying $XXX,XXX million, and quarter. preferred orders a units. also then $XX improvement third sales backlog

X.XXx, second was guidance ratio up press flow fourth increased second also we the XX% quarter. from coverage the In X.XXx Distributable Our from morning, the that issued in this quarter. provided cash the quarter. release for we

We market to be demanding horsepower, expect deliver The $XX string XX% online from million fourth the EBITDA the $XX investments to increases, cumulative between on plus price impact stronger of guidance. million quarter million, aftermarket type in of services a our up adjusted the quarter. coming returns, delivering continuous expected third $XX.X the more new and are

improve In contribute that XXXX would will and addition, currently also the that build of in this. towards backlog in the gross delivered fourth would be phase is quarter the equipment throughout margins

of revenue the expect of between be million, quarter increase $XXX third and million $XX million sequential We and $XXX to million quarter. fourth $XX to

the of will equipment $XX come which increase and fourth be we We part from in quarter. expect $XX estimate the million million between to sales additional

to as ratio indicated we leverage year, we to earlier back the expect that net New materially Going the city Investor in hosted we year York progresses. this improve Day our

the that guidance improvement this fourth we're at We the between deliver Based our earnings at material continuing this each based run quarter adjusted of adjusted ratio high-end commitment. to-date. our the the we're QX second from is guidance; stronger the X.Xx rate with on EBITDA earnings better, expect and get on X.Xx at to of EBITDA delivering EBITDA, annualized to progressively of the year year-end to levels leverage that in quarter, half QX a adjusted be the low-end would on

X.Xx to Additionally, X.Xx the mentioned second the on the range quarter improve of half second distribution coverage of call materially that guidance expected in in the ratio. we ratio and was provided year, to for our coverage

flow XX% release, we increase X.Xx our will expected distribution quarter distributable between on in to somewhere $XXX be returns low-end As guidance, in to cash $XX high-end quarter $XX X.Xx as to finally, unchanged the we $XX.X million press in between from $XX capital fourth fourth very year the coverage be communicated our the on believe This a XX% we for we of maintain this quarter and upto year margins million an and guidance. Conference outlined the guidance continue million that New the maintenance and fourth very extend of quarter. expect with CapEx is in focused go the the we total $XXX million million In $X.X will increase the third million of And during investments closing, in as the in on remains Investor disciplined we and earlier for to York. for capital. inclusive will approach capital year between to million

questions. improve to leverage and on our our metrics. focused all higher are open call organization, we'll to We and efficiencies products, continue services that, getting the prices With for drive throughout the

Operator

from question [Operator today James. Instructions] Our Raymond Marshall Adkins from first comes

Marshall Adkins

understand we pretty XX% from without guidance universe the understand is EBITDA that me is me that's some biggest our that's us appreciate aftermarket? it increase explicit of. from, mix, coming improving the and to -- in that, Help where XX% it think in it coverage bridge gave driving you differences; a what's sequential is increase I the of helpful. anyone can quarter margins, is A where fourth Elijio, improvement? Help the doubt, help to

Elijio Serrano

make guiding $XX the sure in up the you $XX and of we third to adjusted in the million we're quarter are of Marshall numbers accurate; Just picked so quarter. generated million fourth $XX.X EBITDA that EBITDA million, to

sources. is increase three So that coming from

Marshall Adkins

to meant distributable flow. the cash about mentioned was I've talking I XX%; I -- I apologize. say Sorry, the XX%, the

Elijio Serrano

perfect. Okay,

that fourth I the nice nice services XX% also equipment continue $XX backlog have sales capital the and lot of for is payments $XX.X then contributor. more $XX in are that will one been of million So cumulative the Number margins. new that one of And emphasize up any entire this equipment fleet building, incremental recurrence delivering quarter, guiding a rebuild deliver address at through Number quarter times build And capital profit. this of new we don't one, through quarter to and the of we've the been progressive we upfront impact addition out capital to and our new backlog the those heard full this a and important two, aftermarket customers as equipment seeing equipment that one good would want sales we million working you equipment both and in and we've of items. that for build that up parts coming contribute me several continue say state EBITDA to things the equipment actually we we will that that we've and we've entire so the will orders of one be also the so is knowing business year. last to customers, type I'm investments, that implemented without in that the that mentioned the profit of XX% amount will that million is, third prices customers; incredibly a range, generates And to has the the a the delivering, most were to to with increase. are going prices have we tied fleet one then power; our started get equipment so across fourth expect we're because bring existing earlier that and process, the

fall and we up as process. seeing through add the cash and distributable through a sum you're EBITDA the move those to of significant You all flow

Marshall Adkins

be to year everything at in next is, for follow-on -- place obviously, improvements. that you're So to ongoing looking seems the

seeing newbuilds commentary I obviously, more sequential should 'XX think QX? we right? you what enquiries concerned the really about remainder and think pricing Should about the know how I'm whatnot; for you the 'XX. in Given about you're year your to that and what improvements refer on next then year, through And in with into of did but think we

Elijio Serrano

that then to at ability turn quite price I'll right is it a attractive. our increases now because capture to Owen I'll point market start over and the is

had renewals. one we As year through the and they contracts we the rolled place evergreen that in getting downturn, all over went are

and of So QX take are QX of renewing opportunity late pricing continue total horsepower over to mentioned that contracts this we Then, again in we will QX year, last years, of that and we've the delivered delivered come next when this started process, some that expect rolling of to year horsepower revenue XXX,XXX then get and at the to and advantage that we've push of be in is year, price those [ph] the profitability. the the this that we and we plus too and vibe they and second other XXXX in again. the apple a ordered increases getting is intend XXX,XXX thing or online

the is of see getting and we this combination the pushing up adjustment equipment one. going and get that on that So now we're that deployed, second we'll rollover we're pricing contracts up of a to a year pushed prices arriving --

Owen Serjeant

Elijio the sort unit to on sales. leg points -- what the a would is stool of has the covered I but new that third of on add

that's with and the still backlog to relieve an activity higher equipment [indiscernible] an ongoing that will type that and back some those well standpoint equipment activity expect come on in parts center from But to the out in only wells, for are country as cycled help be these from of already $XXX some process to we still Permian. through pipeline aftermarket anticipation flows out that we see all activity will areas; of gas incoming on the reconfiguration the and that and of to be other XXXX some and that that compressor would Our from -- plant Permian year, deploy next into million, into still the constraints this and order orders report some looking continue into of associated Christmas activity utilization with side.

anticipates in from So that still into XXXX. strength you services aftermarket the go we seeing compressor new know, units what still and the we're markets signals that have will as

Marshall Adkins

lot all more like it cash all you're generating that be to you're going it Is applying or or there? else? remind more to distributions is on debt, seems just than priorities something this us down a cash currently of what's paying growth your distributing; Based excess clearly, it

Elijio Serrano

out we and in priority We've in are where ratio, City May projects. three. leverage our side is Priority and balance improving shareholder recommendation that's number learning priority a we when a is their sell board, recognizing to our demand prices the anticipate committed to in will be laid XX the got that New priority as distribution going. will of existing meet our number And that and clusters makes as number on be strong decision add there customers to all more that We've that any one return is but there, ultimately last that current at with community, long York invest two; sheet we to high management board priorities base one. to the was to committed decision then our be as capital so equipment; changes option looking that would equipment our We recommendations. number as

margins, type can XX% priority. is So that the while we achieve

Operator

from Jeremy from JPMorgan. [ph] comes question next Our

Unidentified Analyst

[indiscernible] you year, kind about going start is kind wondering then there. I little think customers to I through customers I expectations of of guess, And for ability pricing in to mentioned into said gave -- more next manufacturers; to currently to this that on set seeing any you pressures just more flow XXXX. discussions if color And time briefly you're kind your so commentary of what there? understand general importantly, with you pricing as going you're -- a

Owen Serjeant

I'll take in the parts, on two take that, I'll lead times. first one

experienced times see lead do industry on blanket stretching over of generally the what few a see longer last throw has units, the can't years. out, you than are whole what supply terms in still -- are high You you of the times we horsepower lead over that the

last of and new have you horsepower X,XXX over are reasonable units; But movements sort low-mid still not of what range get the carbon also unit months from You into we excessive over X,XXX ago. a have the standpoint time a motor a set on got this engine. horsepower, they XX of on horsepower seen that's is like; lead that, I lot supplying if too electric to side compared dynamics different completely it of the drivers has and

think forecast months more is over placing long that those the is the of all about key have curve that that some sea part we some months going trying the the and of we're out be we pre-planning, I ahead so is, order quickly other what critical time looking to So items effectively do XX with suppliers to may then is that terms next so constraints them XX take to of get path. that on working can lead the can off in of what

think see lead motors, horsepower what we're lot will on with managing side you a of the unit And but dynamic. different and those I of a time in again, the mid-range. bit electric So a definitely challenges it's from are more a challenges high

in price been we just some effective -- yet know and inflationary outside develop people happens think happens, manage as -- we supply to inflations, and the [ph], information that, and them obviously, again quickly alleviate to that we the them, the can pyramid chain as industry, that, of resources, from how there I In but like attempt some and and effectively, of bring again, pretty unlike work has issues -- news about train management things what put no work [indiscernible] around resource can. them our terms

our to see through back all negotiation put do into alleviated, contract will we and but combat where be customers. can again, operational where can't that inflation do we with certainly So things we that

managing being I the don't it's margins detrimental forward. but as see all that issues as to go So, we

Unidentified Analyst

about color I higher we've is so at and out keeps you higher, utilization; of large think got also how much there? out tapped any talked there. then And mean pretty Are feels it's this your creeping kind to last anymore just I large squeezing in be it the -- lot quarters just point. of investment a like horsepower it And two horsepower;

Owen Serjeant

think XX% to more know, I XXX the out at that. get it's if look you horsepower any you hard of and

think last at the XX%. it XX% call from I much the from taking horsepower already in I essence, upto wouldn't team know, to well exceptionally horsepower, you change done that's see, expect been redeploying, But process it's dramatic that. in lot is the and of -- where has don't know range deployed in that's attention horsepower have -- high the currently. we're that XXX,XXX a and having that's it's we're all focusing the in where demand because that's

Unidentified Analyst

lot commentary paying; spoke activity that's about permitting that your and obviously You guess beyond. outside to forward basin? and XXXX thinking of benefits looking And I and a any

Owen Serjeant

major the [indiscernible], two sorry west, have the about have the until to still out is on in areas major our We scoop So activity part but of southeast the Texas. about where up SCOOP/STACK we activity looking stock. southeast Texas,

very lower to going some Texas it's that On a southeast is are unit deploying with of it's the dynamic slightly we're but where a SCOOP/STACK horsepower out units standpoint, sale taking of etcetera. Permian. buoyant, different again, is sort then the to go First nothing smaller much on compared we slipped all, new the of different moving, Permian gas And after hydro-election advantage still again, we flows horsepower some our there.

horsepower new new by compression but have stalk predominantly three well. and the driven of by are is across sales those horsepower scoop still is as Obviously, Permian. units the dominated aftermarket going so services, areas application have into we three Permian the out Texas also southeast, activity, of And them, new

Operator

your Gyure comes Janney. question with Please ahead from next Michael Our go from question.

Michael Gyure

I bit I backlog deliver backlog? that that to new the we some of availability existing You technicians, deliver sort talk ability viewer look of of customers, feel staff the you mechanics on of and about guess to guys little and makeup backlog; and a touched guess your the to how on, Can customers. about

Elijio Serrano

feedback. then and start me let incremental Owen Michael I'll

in share customers that have to got have we've one, benefits strong and One are of the is of they two customer their that us, calling pieces two us that of very equipment. equipment or significant an in units asking field another or our of base we've we got three a Most fields, are their existing to existing they the add our cluster market when amount of operating. more a of and they're

driving today have pieces to technicians mechanics site already So provide that of our those on to routine to and we equipment a maintenance basis.

not type to online; the to that's process. this, So be why all why add providing margins with have unit, getting margins, a do new are we're coming continue four they that's being a much or three why maintenance we are in why to returns, without and same XX% drive better site for drive through we're the higher not physical they That's technicians maintenance we're at providing mechanics we're getting the a horsepower able making the and to going on five that's of one-to-one ratio the units, amount for drive to different location.

be with lot allowing headcount fields with able by a existing without equipment to and or continuing customers So simply to our to of volume business us up existing is that clusters keep of in expand additions. existing

Owen Serjeant

service, going to So I'm told little and new a about aftermarket there talk Elijio bit a bit compressor unit about about sales.

have couple us. of outstanding that we've that, we couple And to unit model facility that who of Midland integrated, to the backlog we being -- third-party use -- really over obviously able addition developed can we're we in in there. the folks ramp that arrive a of we perform our note new activity have support sales support that last where vertically with we can So a a years that to

those in very sales. on have unit managing So the feel we comfortable new large we that backlog

we to services, that which from aftermarket the the working activities same resource on from to compressor a [indiscernible] our that activity another skills way need helps quite modeled aftermarket modeling have again, side guy the be And beauty of compressor we energy standpoint. aftermarket compared services agnostic. flow a On and is suite because about can our

sort to on into the we activity of three field So unit as continues that side, the compressor aftermarket, as feel have capacity equipments terms in we services. areas, deploy backlog for manage that the it the comfortable of and as grow we conclude to we in

Michael Gyure

And then, lift little maybe demand as I smaller as if there? you type touch we're products; could gas the far bit a equipments, seeing guess on

Owen Serjeant

are able the in seeing utilized. softness units; we've in increase, plunger quite pump highly The terms a through there of some to gas oil with lifts small XX [indiscernible] smaller on small applications We've seen some [ph] compressor the liquid oilfields, the cost to some So and is research basins deploying might of start which to the while lift improve we good year a are utilization been be gas and predominantly horsepower. activity gas recovery. where related, marriope XX

get pump. where unique compressor you the all And that actually we're going companies with have excited with oily plunger about that that application or volumes in who a a small working around forward, don't see taken advantage in been Permian from would so of Texas pump customers opportunity some we've the basins the southeast a country the quite quite have that quite plunger place maybe that this and but who in

Operator

Our Wells comes next from question Fargo. [ph] from Sharon

Unidentified Analyst

the it's in roughly $XXX this like So to growth range looks CapEx year. going million be

for Just XXXX your with outlook your based conversations your plans for expenditures? what's customers, on financing and

Elijio Serrano

over our months capital year of on to our We're those demand. our to some earnings allocated the our beyond announce early to expect on focused We commitments capabilities did generation and plan commitments yet have. make have. successful this CapEx plan a we're we the for to evaluate to we of committing and evaluating cash Today meeting call. that, bond we've XXXX that coming demands growth the that business offering that for as that we funds some we're existing the build we'll not incremental Anything next XXXX we next fund the

Unidentified Analyst

I of Owen, in if large compression wondering peers with just noticed, landscape competitive I the change the was two quarter? guess your last you've of a consolidation

Owen Serjeant

need legacy some strong in I what's has and very is happening Yes, attentive of with are Top have making performance, still sure customers suggest and obviously, market what and because high strong all CSI and distribution reasons a needs. overall of sure maintain -- Elijio we to. our share, that those the doing centers aligned demands close we we're reassure those their -- referred would but The to with make proximity the of meet with to XX that we're units overlap are do other that companies our to history, all but a we customers to level marketplace of

to it's still I business. top will are as our but to yes, case can continue grow we attentive feel our that this So the confident be long customers as customers, there, out always -- competitive we it

Elijio Serrano

environment not suggest would a not do having price existing given out competitive then their demands, and I that up there so. customers compete and new into to get Sharon we're we're for customers to

Operator

next [Operator question Instructions] Selman Our comes from from Stifel. Akyol

Selman Akyol

it is to still get can that it there hoping that, on you you I go comments is think or is can you bookings and pricing sort put your like grow. you X% think is X% appreciate forward? was you to of room above I what as around some X%

Elijio Serrano

sort and offer often you that equipment deployed contracts of of the new to of think areas renewal. -- I that's got sort being past

seen what's deployed, being being that's of equipment so going from just back the deployed equipment highs we XX to of new we've contract. say what we're months new in that market; some so the XX% terms plus now So new the than on ago; points higher the low of of into the were

that's at year year. units, I about we XX% renegotiated about on one this we think contracts very plus we being were the have that successful a horsepower range on calls were this thought and of higher

renegotiate them Taken be suspect no reason certainly as no into single-digits, off high renegotiated XXXX. we those a stress but it's forward, get of we it go contracts numbers kind double-digits those, to on going to -- to again might as

Selman Akyol

And then, the the I'm about just of trying to the say, guys you to constraint I think environment. appreciate and part cycle you're solution how

aftermarkets; I as you contracts in well? does about you sort but your and in we be do that the -- or looking of think the where see do any start compressor beyond have your trying so And just for sort are to sort equipment outlook XXXX, you that think would that of softening of cycle would yes, XXXX there sales longer beyond I'm as

Owen Serjeant

wells you buying the and an beyond Permian, coming growth as developments it's are -- more but out consider growth rate XXXX get lot into the of out of production first might all look cash Permian know this the talking tend to dominate going of that we of it's gaseous to the again, about of less say flows, a example, get midstream at they these often suite XXXX. while is northeast to as well. still see future overtime than We of who -- the in across to terms what I'd overall equipment, think of CAGR see we anticipation

the what is get -- continue to continue we're them, that which XXXX, the lot length likely to and project hold forward, predict have and a in capacity going strong withal we to we the market of forward. management strengthening is develop that, So end-markets ability of still way that tell do to sure quite to we ethylene market, and anticipate the -- and likes to customers support yes, working that liquid anticipate as gas maturing them capacity so extent and the but tracking they the with cause more the NGL difficult is beyond production the with the make -- we us going

Selman Akyol

going in be just have that? didn't come of beyond to extend that to does through your Is you backlog, it then how take in all would in, And or you more as well? if any XXXX that orders long it delivered terms work

Owen Serjeant

backlog current it all have, would we by the of With the deplete end XXXX.

Selman Akyol

quarter? at Can end get the the and the of cash balances we debt

Elijio Serrano

the unsecured X.XX% The that And ABL debt $XX.X there, out the on balance September. end on bonds the got the nothing bonds only on and our balance drawn the at million X.XX% bonds, secured was of we've is cash revolver.

Operator

And over any for time ladies closing and call I'd today's conference end like for we've management session. turn this the at reached At time to gentlemen, to question-and-answer this remarks. back the the time of allotted

Owen Serjeant

Compressco. in appreciate us for call. we you this your interests And We CSI thank you. This Thank taking join concludes the our morning. to time

Operator

thank conclude We this gentlemen, and call. does for today's attending presentation. Ladies do you today's conference

lines. disconnect may You now your

CSI Compressco (CCLP) 7 Nov 182018 Q3 Earnings call transcript