Thank you, to based conference These CSI conference may Compressco's on like Nancy be made for remind and call first of you by [ph]. and the subject to are analysis be that quarter statements Good may risks morning, deemed contain certain XXXX are factors. that CSI partnership. of to results and on number you assumptions call. based number uncertainties, statements would are which and I this thank statements or the joining These a of are a are control Compressco many beyond forward-looking. of
guarantees results the that of future You cautioned are performance may projected in materially not actual from forward-looking those statements. that such are differ and statements
of financial may the cash and flow, in the be of call financial or period. prepared non-GAAP to other coverage addition, to In public distribution this to to cash flow, the course free our adjusted distributable press not morning's GAAP financial EBITDA, measures. refer accordance the measures release Please a or measure. of context information EBITDA, financial GAAP complete results website for for backlog with reconciliations reconciliations substitute we These within refer non-GAAP for considered our nearest in are should ratio, the
posted over financial performance, details and SEC the to be will our our May to results overview Financial provide our our projections. to on call as morning addition more press will our Elijio In the on and before this Officer, XX, Form went start release Chief or XXXX. that I an the turn who of with Serrano, on our is early then website, announcements with filed planned XX-K out
increased sales sequentially, of $XX.X improvements. continues Compressco Xth sequential revenue extremely to consecutive the well. do Our million sales X% Compressco business quarter of
incremental XXXX. the since to the were margins gross relative XXXX. million the revenue first profits incremental profits Gross to increased represents highest importantly, $XX.X were from$XX.X gross incremental XX.X%. which quarter to More margins million, Sequential and new quarter of first XX% the increases compared controls, Deployed rates of this high the that quarter cost we to sequentially. fall is price higher horsepower attaining, are being improved deployed the This last reflects X.X% equipment increased at. year of
and May conference margins Our continued the XX% the and gross this expectations. internal gross with will February New expect indicated quarter of above second call first both of All earnings projects last timing also the sales for unit quarter unit and quarter services that new large several will down aftermarket indicated be sequentially at York consistent we in year. quarter the the fourth the March we consistent that new remainder adjusted quarter, we in to on that City. ramp sales on the were margins due had the several We EBITDA aftermarket or last the hosted sales out for objectives was we XX% laid also and were is our improve. large to be the exceptionally Total they the projects. a Nonetheless, and goals aftermarket up we with services strong. of first investor both each expect to timing below unit and fourth meaningful in services the
of and to fourth $XX.X quarter million million XXXX. Second $XX will in approximately the in first million quarter sales the compared equipment $XX be quarter
$XXX be comfortable significantly which and CSI another adjusted for $XXX equipment start further million incremental see million for of projected $XX year continue strong aftermarket expect with of a the million. of up successful quarter. robust to demand total XXXX EBITDA services, new a increased for demand field remain Compressco first the at We healthy We to and compression, our backlog to
horsepower large equipment, industry new Our of seen continues our at allowed we've highest which a us rates in to equipment history. monthly deploy has have the to shortage
the of units gas gas, gas are allowing life who units centralized units for for initial to are on of horsepower meeting announced production lift new to requirements production XX% of existing oil addressing unit require in large the as increased capital. as through deployed prices they margins These our their associated continues production need that overtime. oil also driving deploy requirements customers recovery us output are depletes able both to gathering returns to system continue new The more their our to are These on existing those centralized levels. with volumes We requirements for above lift. equipment grow XX% achieve and fall their grow support from fields wells early XX%
order on commitments them orders the new This the we opportunities of build competitive our a for cost capital. speculative us fleet on not and XX% returns basis. allows anything have we on attaining All where do to to discipline respond are --
single rollover, high the percent range. we price seeing equipment typically in increases contracts existing As are horsepower digit increase our in
business magnitude last for For price on our cost improve up an higher. prices XX the are key high minimal customers, horsepower increased year-over-year unit are year basis, seeing high we by order deployed. new contracts more we the additional in our compression each teens. more we increases some with in to of increases will profitability in I a price equipments able adding much % we key spot markets scale average with up recall the being The of services that our with
just portion on lower for bookings have were our newer and orders. ordering compression including infrastructure, before purchase they up as their First building totaled delayed new than and temporarily quarter equipment $XX full prior is are believe pipelines committing equipment. to capacity further customers any as focused million temporary new quarter fractionation customers We that
is $XXX Our new identified in equipment pipeline opportunities of million. of excess
just new have for of some sales. delay We seen opportunities, decision the not cancel unit customers making
equipment sales. to business, of minutes of some to and I'll XXXX individual the our performing. progresses, fill how now year few they as each our the perspective out we spend to expect pipelines provide book a We order lines materialize support on and are our orders on expect
to for consecutive eight quarters we We've Compression ago. a be of the with several were and margin to XX% where improvements quarters Our great and revenue segments XXXX. service continue of project business into exited of improvement robust continues also sales We've compression quarter sequential increased growing.
As fleet. mentioned, contracts are by optimization improvements over are prices these driven at the as to units in horsepower deploying above customers high current existing contract cost roll our from efforts. are the we rates Increases
$XX we that $XX to million are million expenditure. expenditures flow for capital maintenance from cash and or on between from to capital $XX of operations form XXXX $XX Our to inclusive be from cash hand expect expected million million
this our since call. conference for investments year have capital changed not Our last
be which not Between and million new We XX,XXX XX,XXX continue buy, TETRA aforementioned disciplined to expect support, that with to growth agreement XXXX. into general towards of The partner, high horsepower of plans capital to in equates lease we deploy and our program horsepower an the horsepower. will $XX our approximately TETRA equipment our that specifies additional approximately in our fleet does growth. include
in quarter. of orders mentioned XXXX, first by the this this for downturn As A To fleet further new into horsepower before, end placed all XX,XXX have commitments. horsepower. horsepower is in the approximately the added was XXX,XXX our for for customers our we spoken of core
company's down During and me entire milestone is of proud. one for slowed be size large in centralized and million demand system for or not history, the lift we a a which which The has continues over continue surpassed XXXX team and us gathering additions X quarter, active horsepower which makes operating vast in the can outpace this big the majority units the extremely to for units to supply. for first each time gas horsepower
are of plentiful equipment best production balance in the returns. that focused on concentrations customers the with We sheets, gives our us on bases and shale with gas strongest the
We any put, deviated best target and at on continue will that projects not capital. produce not have this not least we XX% do on Simply to take will our return customers. strategy
Our increasing due increased able are part fleet services to we margins leverage compression size. footprint are in our to because
to activity an fourth are extremely expected. decline of lower quarter and equipment is shipped, than This fourth shipped. strong is sales and quarter. following received The completed equipment timing timing was the by of Our when when completed the impacted due business the was orders
second of approximately $XX of of to million XXXX quarter highest be be XXXX. from compared first the the quarter and sales should We to expect equipment any revenue quarter in
new is on $XX First orders, We $XX our a for million with be equipment in all backlog year-to-date to of delivered yesterday. quarter ended of $XX healthy bookings XXXX. expected to were million the quarter million which
last equipment commentary year pipeline, new for key on customers. over believe there from orders the down on several as the be material months, and our our order pickup based the will slowed of goes some While we
international book customers a start business high good during $XX.X XXXX which good be we in had associated running the for completed we service has we the but problems equipment Our slower for increased also in as domestically, the similar but equipment, high in internationally, million, our at equipment. quarter some customers and margins. upcoming will our not grown and major volumes for still pipeline After business, of several only of this expect months. record XXXX, order Overall, new feeling to our compression with a into of aftermarket gas with need quarter overhauls revenue strong for are
the year representative we of our the as with business second services. have our last Also, XXXX. call. you sales, has order known this stronger we more that sales, show on slowdown much sales be temporary our more aftermarket the half doubt the parts stronger like book are opportunity equipment progresses, we the as and sell, progress we quarter, have of in new was equipment will and in Just gotten this highlighted more as and business Also, equipment no much the for
business come and gas benefited drilling equipment our to programs, produce their volumes all they continue associated business that from lines. as for customers directly ask and Our us has of more our across higher shale from to compression play
gas Our XXXX. end higher focused on centralized end, horsepower utilization gathering the XXXX equipment from points systems lift up and XX.X% was at basis of year XX for
be full majority of at I'll of the first in deployed strong. demand during areas the to XX.X% since active fleet the changed Ford, horsepower Nothing turn Compression horsepower on XX.X% X,XXX deployed and industry at end at and quarter We of great the over Eagle in most the to million. quarter We the to horsepower and South XX,XXX shape from in up this are utilization in questions. the increase open industry fourth don't down beginning with the where the on first deployed. Then areas from In essentially XX.X%, demand incremental soon. to is SCOOP/STACK large for the an end [ph] XXXX that utilization Permian, equipment. is the activity Oklahoma the operating our Elijio the to approximately Overall amount expect at vast has it including details the up we increasing financial is of continues entire is XXXX. industry Texas of The quarter, deployed horsepower XX% of quarter. and of for based current in summary, With this some slow up anytime provide and the of we'll it outlook
