FTSI - Earnings call transcript Q1 2020

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Operator

Thank you and good morning everyone. We appreciate you joining us for the FTS International conference call and webcast to review first quarter 2020 results.

As a reminder, this conference is being recorded for replay purposes. Presenting today's prepared remarks is Mike Doss, CEO, who will also be joined by Lance Turner, CFO and Buddy Petersen, COO, for the Q&A portion of the call.

Before we begin, I would like to remind everyone that comments made on today's call that include management's plans, intentions, beliefs, expectations, anticipations or predictions for the future are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. subject actual and from results in forward-looking are cause that those statements any company's the to statement. forward-looking to uncertainties risks could expressed These differ materially

Report discussed the reports files any the with as the are company in Except company uncertainties SEC. by and XX-K and risks company's These Annual required on the does Form other undertake in law, not available the filings or the are obligation forward-looking SEC obtained any ftsi.com update website, sec.gov. on on company's revise SEC's may to company by and contacting publicly The statements. be website, and company's the

discussions non-GAAP includes also conference measures. This of financial

Our forward-looking of these difficult non-GAAP these reconciliations estimate. measures because for earnings We and directly financial reconciliations to information accurately measures measure. as most forward-looking of unreasonably their non-GAAP well release are includes timing excluded items non-GAAP comparable to the further provide measures nature and not about fully GAAP as do

the Doss. will Mike call now to that, With turn I over ahead. go Please

Mike Doss

good that, will outline the and everyone. financial followed then have in taken by the you I we for will and Q&A. a After cover results response. begin few on and our market measures morning quarter, Thank I observations the operational with

completions economic In oil operators. falling Most prices, due response sense effects all nearly completions dramatically economic activity altogether. for new primarily to no oilfield have of back well rapidly. to significantly U.S. prices, the COVID-XX, today's suspended or lower is At longer scaled make

dropping quarter currently started working. fleets second have of the We with customers Our fleets. ended the and active half March in XX we four

for the it's order pricing near necessary more challenging been. In than to work. fewer pressure to significant is fleets, in addition were pumping In term, the outlook ever retain concessions

we with to the including in OPEC+ will next production and due month months, economy storage the few shut-ins balanced full, lower that so, Combined half. that see the the crude restore the oil a market hopeful from could announced more which next oil be will over being reopen in demand. are occurring We begin to second or can cuts

in work few but gas are to with that that areas gassy higher new lower better those oil, in far good opportunities and to are prices moves position we a for if current work shape, and production Relative occurs, between. operators. It's associated possible are

Given series to the taken outlook, costs have aggressive preserve a measures we liquidity. reduce of and

releasing we First, support and staff. that crews have work the are longer scheduled reducing no crews-related

we total Second, our suspension and reduced wage have the XXX through company combination employee and salary incentive layoffs, nearly we all short headcount costs rolling of labor active by or our a have reductions reduced Since February, over term of plan. furloughs, XX%. employees

temporary costs non-labor working fee we Finally, aggressively vendors and to are arrangements. of pricing, fixed obtain we them. one single every addressing are of arrangements Many our with are under abatements reduce of annual all renegotiate and our

us first current our off Adjusted the headwinds, held was results cost million fourth March from was Annualized in quarter. fleet EBITDA $X in adjusted down compared about per in half of while well count second X.X%. the million The quarter. activity sequentially, Despite $X.X activity $XXX.X our $XX.X drop even million, in EBITDA Revenue fourth $XX.X the in up the to X.X% million million up though in million, up was quarter EBITDA. began was stage dropping $X.X March.

even downturn. many with been $XX.X decline implemented the before was quarter, current the of SG&A in fourth had down by $XX.X from which million, the measures, driven million cost-cutting

was million down SG&A the $XX.X comp, the $XX.X first in stock Excluding fourth in quarter. quarter, million from

be range stock to quarter, second million the $XX excluding SG&A the in of expected million, to comp. $XX of approximately $X is For million

million quarter, as the by for for as activities million working million of well share. fee, $XX.X annual in Cash contract million was includes $XX.X purchasing components of from dual was flow last by frontloaded for the increase $XX.X $XX.X a up was settlement supply driven offset loss about or $XX certain fourth Net was and per CapEx million expenditures operating year. of from first an quarter million. quarter capital $X.XX fuel The the release $X kits. conversion

stands total now dual at Our seven capacity fleets. fuel

CapEx For be in the full for the and year, reduce million to to if ways $XX we this further million now of we to environment expect be $XX will range looking that persists.

with and cash quarter million $XXX first the of ended $XXX million. debt of We just net under

discount That we the term million $XX.X repurchased of million $XX.X leaves remaining notes XXXX along of the due term a XXXX. loan, with quarter, million. due our loan million During of at on $X $XXX

remains on liability our advisers We and goal find maturity liquidity extension work continue the of discount The same, management capture, alternatives. to the with mix optimal preservation.

quarter fleet active compared first quarter. XX.X XX to was average fourth the count the in in Our

I in fleets As one ended fleets. we the earlier, with active quarter currently to Today, South Texas, Northeast. and we one the seven four working, West Texas three two expect to have mentioned average four with the quarter. in per in together pumping per quarter, our level in second our days and working more the to customers day completed pumping first more month. due and per XXX stages achieve crews We fleet in ever, hours to highest We

our to fleet choppy will forward given quarter, stages Looking be gaps. customer per second scheduling the

we crews I While active to our the perform confidence as range. have XX% to have to efficiently continue each location. running every on are XX% will that, utilization, full expect that Despite at in utilization been day to they our the about and XX% quarter fleets second fall

to business on ourselves company that being nimble adapts a changing pride quickly conditions. We

fleets our three contribution is working fixed Even negative of plus the negative $XX million, point that expect minus. $XX profit which that to will we have be costs EBITDA, the quarter. and gross at to Currently, have we we from to means However, the of sales, had is means in of likely slightly operating. four challenging. still XXXX, this or which expected offset in cost expense That million all have not we will area in second plus SG&A gross XX to we fleets especially our environment the that low the profit

of be working expect second to $XX about the we million, release cash Given an capital breakeven flow roughly in quarter. expected

uncertain Looking But we year, burn of cash if a be give to far rough half suffice will in persist, is to that even too to outlook conditions current situation. say the guidance. second the the

like health safety I a Lastly, to the the of employees. conclude are would and remains with top priority. our all Even on our safety comments with few that happening, changes

We have direct a a should contingency plan we sites. on see our from in work place COVID-XX impact

that any not we do confirmed our base Fortunately, aware we are employee to-date within of. cases have

all We precautions face with coverings, distancing, and SG&A where office staff closures social possible. are cleaning, for remote working taking necessary

have I let's Operator, for please the all remarks. prepared That's Q&A. go to

Operator

Instructions]. [Operator

from is question Pickering, go Please first Dhruv Holt ahead. Co. & Tudor, Kharbanda The from

Dhruv Kharbanda

for Hi you my taking guys. questions. Thank

are you what were your to what's your are you QX by reflected fixed to results? And via what versus months? over cost the what the then, et structural percentage cost year? or So start, costs your of variable portion of then in savings any total can remove reduction coming amount structural And the pure achieve? reductions? And there expect point And measures incremental cost then facility consolidation, in secondly, cetera,

Lance Turner

that. Yes. I will to try answer

in majority would second first reductions in the the terms be the will were amount of So quarter. of in say, quarter, I cost what

at it did probably we peg think Although I as about XX% would see, I G&A.

kind up operating this going split am of and G&A to expenses. between I So

should just million closer for expected was is come to down XXXX XXXX. to That $XX G&A Our number roughly, $XX million. million $XX

as mentioned, down in $XX would $XX to that rate higher. in run the QX per was a the little Mike we million, expect But million range. kind So come of quarter

So that's G&A.

lot but massive the a the to going front, of those variable the be to be cost operating operating on costs. On expense expense reductions are going are

million but is And that so you because $XXX a over are lot well down are laying talking we about of fleets.

it's hard terms. that so to in it And think of

in operate quantify. at level we of activities, lower also think hard the I how reducing it's fixed are the to but we costs

structure way are thinking that the bridging opposed XX So running from kind more sense. to bottoms-up XX the about fleets, is we if of makes had to of we that a as cost

We single minimize to bottoms-up looking trying at are every cost that. and

parts So question? of all the I did your catch

Dhruv Kharbanda

operators super does that secondly, helpful. seem And very you seem you year, have XXXX. over do post back higher you, hearing That's crude are dialogue will to on from trend it specifically three prices? these in that Or about any chatter? customers see next the indicating real? on half Some of be year bottom high-level to fleets of Are the activity the you seem sometime then predicated in starting a does coming they the More activity thoughts QX, oil four any the months? how or through having hopeful And frac back the of this any assuming add Yes. holidays? we late count it rest three might fleet to with active

Mike Doss

plans are we recovery really to of think is prices. of and I that way predicated kind oil environment mean operators talking crude confidence. just fluid the conversations on Unfortunately, are with a Yes. all their get I with those several too in

higher sooner, see half there's we if crude the prices But this don't will resume guidance second just point. much at have really that uncertainty So any we so activity. then oil on they

to as foreseeable oil. be just situation come I soon things make think them. looking profitable as with they supply to future, the think for given to think sense obviously economic back are the we going I for has but depressed, are it operators can, be But demand mean, and I

Dhruv Kharbanda

had. you. That's all I Thank

Operator

ahead. question Stifel. Stephen Please next is go from The Gengaro from

Stephen Gengaro

Thanks. Good morning gentlemen.

Mike Doss

Good morning Steve.

Stephen Gengaro

don't Two mind. things, you if

been It's a at, made think term, that about on said, to running be XX% and how The are I XX%, about first, about comment said. three the just fleets? of XX% you you in touch XX% to Is that thinking to I Is utilization thinking running. should utilization that? four to XX% fleet the short XX%-ish you you

Mike Doss

is. It

between works, And And just that us, what would that we the are there's utilized three is Is less gaps so couple that calendar consider fleets be. so jobs that have just days, forth spaces, off fully we operating normally in fleet many fully utilized XX, to what, than utilized? they on Lance? of a weeks a XX four so and for so the one they

Stephen Gengaro

no? the as we a be And EBITDA doing Is obviously you in Makes of answer you of guidepost Okay. perspective, that? there activity sense. be could breakeven and think to the where something? you fleets help per or need flow of knowing in Or cost-cutting cash either is fleet a do like, think what can from half sort you going or given look that half us what to second not second about number give are terms then to

Mike Doss

I a well. can you comments. Lance, as weigh will That's in some tough question. make

taking the we as gross down call on profit. basically roughly nominal prepared Just speaking, that remarks, mentioned some concessions, really of it to on amount given I price significant the a just have

fleet per six were to at, probably XX would if we help could at if on we to operating even at think I resumption I the sense. currently the And profit, gross that fleets think we profit around price, be gross add, which say, some were would EBITDA of in that at So closer that if to matters level I breakeven would are we some like activity, see of think we that makes magnitude fleets further. to recover

would that Lance? you Is think, of part what

Lance Turner

Yes.

makes company that sense. be to built to down XX fleets. able think the fleets three I Ultimately, up scale not was to to and

some are so working on but take time. we scalability, And that that will

Stephen Gengaro

teens, then what in a to driven? fixed? high will piece assuming down is other The $XX that what piece And just rebound? we Okay. back a about coming that. XXXX, starts to sort largely And million number as $XX to think of as effectively the million SG&A follow-up of that So quarter, of activity revert is or towards back half just line the activity words,

Lance Turner

you in XX-XX. the structural But mean, will I think there that stabilize. there components components some looking will increase. at are I probably are

And into the wouldn't of all. in a XX-XX. at on depends start you that to of you see XX-plus there. then variable illustrated, get the And when thinking expect fleets, so much an then I But increase Because of fleets, will XX I fleet of lot some Mike count. am like costs at kind

Stephen Gengaro

Good. Okay. Thank you.

Operator

Pressprich. with The go ahead. next question R.W. of Ginsburg Andrew the Please is line from

Andrew Ginsburg

for Hope you are my Thanks staying taking Hi guys. all question. healthy.

OpEx Just question. around the clarify to expense

another it help way So maybe quantify. you I will am and ask to going

a the running. the either on of expense like cost I the like, that So are for what on us? think fleets you cost if And side? step-up number fleets on you there would had to fixed fixed quantify able actually be schedule those are zero you Are of to running, almost then depending operating is alluding

Lance Turner

at portion Yes. to zero There's million to probably cost of think I to expect the But a that the would question. be in nuances $X that lot I million range. fixed fleets, $XX

Andrew Ginsburg

like to $XX Like alluding have I Okay. that activity, if example? cost, fleets adds million in is start And fixed the pick about $XX step-up then another it? that as schedule, was you right million way up or for with think running, like five you to the what to

Lance Turner

No.

or I think are the to contractual fixed related arrangements. mostly either arrangements fixed fee costs

all. wouldn't And really it so scale up at

In are scale obviously are to wouldn't XX at throughout up as fact, count. as some the we four But ones costs to it progress same fleets fleets that the reduce fleet year. the are expect we those and they working with of are I the on

Andrew Ginsburg

And as Thank guys active you then you Okay. mentioned, four currently. had you. fleets

Just trying really those these Or all get ones been those? you an to indication, ones? mix the fuel of those dual the transitioning what's of have are to? old most Are

Mike Doss

Yes.

X conventional fuel. three got of are them dual them one well, We have and is just, diesel Tier of

Andrew Ginsburg

you. Got

then Okay. me. question And from last

Is levels for have like a price conversations commodity. if with gas supports nat of of your any high So a that? possible level speculation? had decrease you associated guys mentioned the drilling related to the in gas, about that of Or clients you the the increase

Lance Turner

speculation. it's No, primarily a

Mike Doss

Yes.

I that we see think general there's a that could some in expectation recovery gas.

Haynesville want the so make And event resources we that sure and the the dedicating in the we to right are that cover Marcellus occurs. to

Andrew Ginsburg

make does sense. That

my guys. for that's color, So the from end. it Thanks

Mike Doss

Sure.

Andrew. welcome, are You

Operator

[Operator Instructions].

next Please is Amundi the from Honeycutt of Pioneer. question line ahead. David Your from go

David Honeycutt

Hi questions. for taking guys. Thanks the

a through that loan I the walk cash is the is is the and worse quarters? just term why then on repayment. context the going more you of remainder the over Just had Could thought us the be importantly, liquidity? behind to flow loan preserve guess, And of to in also process quick it the to that what the Thanks. given materially with notes, couple next one getting plan deal of

Mike Doss

few comments. make Yes. I a will

it's is repayment been first. the basic really nearest that target That did, maturity. the So strategy term the our we to loan

in Not we capture the that Repurchases mentioned. discount, we as anticipate as did some discount so much And we in market. payment. did I as would market, this

all pre-mid-March. pre-crisis, of was So kind that

to try the term so try loan, term plan And the to discount loan. remains the more capture to resolve on

think target said, that's And I I the then As we the maturity. nearest notes next. will

you But other have comments Lance, on did any that?

Lance Turner

what mean, all and we I options at looking are sense. the ultimately, most makes Yes. pursuing

David Honeycutt

Okay.

looks keep you on a that should to to the basis like? So we loan? to, the flow I guess be expect quarterly cash will Or going in subject buying term whatever forward, operating

Mike Doss

Board the company the strategy. the flow, think management kind outlook, of will and our be it execution to the I subject liability cash of of direction and the

So it's to say point. hard this at

David Honeycutt

Got it. Thank you.

Operator

line go next question The Daniel is John from the ahead. of from Please Daniel Energy.

John Daniel

Hi for Thanks guys. putting in. me

your three missed for languish But geographic prepared geographic be said a quarters to talk the what what market in you and And is apologize. quarters, this if totally sort If remarks, today? that in Mike, I crappy from exposure just it exposure of we to might you four this now? few I can

Mike Doss

give kind to difficult point. bit have little gut this to at feeling just A I Sure. of answer, so will my

West in made currently, a mistake and the mentioned where Texas there, we one one Utah West Texas, geographically, actually In South two is in one working of slight them in there, in in Northeast. one I of terms Texas, are I

fleets So that's currently. working our where we have

And That areas. think could just obviously questions, with slowing of much think quarters I I one what for gassy the reacting And more operations oily I the that mentioned are still companies and goes to it the the in a on that couple I think downside has oil, don't still down. next of have potential. it. I are there I and still see of winding lot think areas with on with activity macro. also change

areas. resources And to we dedicating so those are

John Daniel

apologize. sense? a mean do on just do the about maintain I know a and But you to just see make that cut the But want to don't Does so what's that? months. I spot, operation I scale area? of after hate how putting of base But geographic optimal in you couple a and Okay. you you run I think

Lance Turner

Sure.

Mike Doss

does. It Yes.

we dealing minimum, to extraordinary steam. very to on operating To obviously, operating districts. think two more I makes some I keep I fleets with more a district, a think right an now. would are situations at But justify like lot keep fleets

but one potential there. at Not Northeast, optimal, the think we do I So got fleet. there's

don't So not makes I critical rather than mass, shut sense it down think it's because currently. that

John Daniel

guys when was mode to curious that Okay. about I regularly to But that. there's you rapidly one be pulling And the crisis happen service clients to and know are their right what's They now, know I could I scale talking yourself future. two would rave only or changes do and obviously, to speak companies maintain work in if for declines. start people appreciate out? they the you if them your they but can't bidding like in about cost

Mike Doss

Well, clients am don't I But actually are our particularly I Yes. hopeful think that. happens. in interested that

service for hungry they been that that that this I quite that kind think there's that a still for their persists granted some companies lot be It's would there expectation if for quarters. all of feel take like And I time. out of are few even way a for work.

Buddy, do you on have any that? other thoughts

Buddy Petersen

agree. Totally

Mike Doss

Okay. agree? Totally

John Daniel

Yes.

Okay, there. guys. Well, luck out good

Mike Doss

you. Thank

Operator

line a is go Stephen with follow-up There of the Gengaro Stifel. from Please ahead.

Stephen Gengaro

gentlemen. Thanks

quickly, shed kind forward, XX the we here of Just of thinking we light attack the mean, kind balance obviously, months? next under going as different I of about your can XX are to scenarios move on you plans through any when sheet

Mike Doss

I a sustainable and a to negotiating optimal. of this we I I our is, try come Yes. this out however are stab to want with Board beyond, that. maybe what's downturn this, at nine months, and Yes, we capital lot to XX with want long structure. months, to a mean we out of of definitely we come will take advisers there's out because, working figure uncertainty mean, really are our

we We preserve out much give to many hard we achieve. to and those know it's we what that to like alternatives just guidance we know trying we during so this are to liquidity so of the There need end that to than is need work all And that time maturities. would goal are objectives. push evaluating, that other

Stephen Gengaro

fair. I Yes. Okay. That's ask. figured would I just

watching kind are unfold thanks of things your But We for here. color.

Mike Doss

Sure.

Operator

from The go Credit Independent Stan next question Please ahead. from line the of Research. Manoukian is

Stan Manoukian

taking Good for questions. morning. my Thanks

ask, to restructuring hired like this term repurchase would you loan I your First, had you advisers before? or after did

Lance Turner

and independent the the hiring of was restructurings. It

call. last on We have we been think mentioned with advisers I working for, the it

a has So we for change. our with changed, have to the strategy advisers been therefore working environment that It's while. just

Stan Manoukian

then from the quarter will But the second SG&A. of your or expect capital regards coupon? flows to and coupon do And breakeven right. flows, in cash sort you bonds cash All paying still generate offset cash gross after the before for off flow working negative profits paying to the

Lance Turner

of be It what we based on out. will before kind laid

think EBITDA. Mike XX% mentioned negative XX% of kind I to a

You CapEx bit little will a in there. have of

QX. You will semiannual coupon offsetting have then the working And the payment will in capital be that.

Stan Manoukian

end what the of steep will under course of gradually working different cash the it bottom one be which capital at operations So the what trying hypothetically, understand, a in day, to need how of your of capital, scenarios? like probably whole am of your and I will we no during recovery? rebound don't second sort debacle quarter you but of liquidity of quarter, the the the So of turning kind industry. knows, better to be kind started sort around need working the if looks And at the end industry the for should second in know,

Lance Turner

of the needs view the working I capital question. rebounds. magnitude as good industry as a the steep That's Yes.

don't be very, in if ago. But situation seeing, are have paint of oversupplied is working remains levels is gradual. we to which would sharp we recovery, a think kind demand an would hearing months even I what And we a capital. very would you market at six that to need steep The my were expectation it then a picture and so nine

or will obviously. And so levels, expect But be of steep don't ramp-up that, I new pressure-pumping at these really we monitoring in pricing really, a significant return fleets. a

Stan Manoukian

at maybe to how customers that's least I as expect right? And what should mean, conversations not rebound indicate, right? about Or it economy are I that? prices the don't well, of sort to So sharply your you your rebound with because likely is, think shortly

Mike Doss

our exactly That's right. That's current expectation.

needs the of of think U.S. a recovery. with we recovery, I time, shut-ins to are if ends But that future. inventory we when likely depends storage to will advantage it really dealing anticipating But And for that have we where up and in have to be a it we situation a surplus are then are off. be incorrect on of foreseeable really are is demand shape of up And the going anytime great, full. ends adapt not take it. a large the the lot that to this and period sharp worked certainly to we a of being

Stan Manoukian

the for let's shareholders lot a future media Right. a And not conversations it, has nor lot And the about industry. U.S. then there neither are fracing of ominous of of face fracing in money made anyone. the for drillers,

not what decline so to country? you their asking am future of you conversations would think in sort this gradual opinion? customers what indicated? is How kind are your am probability of the what I I fracing assigning about And in consider, asking your with significant in your of clients probability this the

Mike Doss

Yes.

honest. dealing an of we kind I crisis of bit have of So right but with just are really mean be those kind a management conversations now. had a to as with really we of clients, conversations, industry haven't do lot a

cost, decent provide consolidate And certainly forth. crisis that to lower an E&P become more to the last need to so think be general so give things than get five-plus in hasn't costs But it that lower production will focus And where But just more OFS to competitive. think peaked really will for sustainable that this way out for shareholders. term. industry reduced the on do in years. been be to to is to perhaps for And create recognition I a opportunity it a efficient returns to the there's near situation and just more the able and the remain I think likely order I and

Stan Manoukian

Thank very much. guys. luck you Good

Operator

of is from The Morgan ahead. Stanley. Dan Kutz line from go next Please the question

Dan Kutz

morning. Hi. Good Thanks.

fleets, of at I guys XQ fleets to that down wanted XX% just your guidance three to fleets nine now? marketed what four I you XX% at said capacity and So to kind is the exited utilization. seven laid have confirm believe right with is for you

Is So that fleets seven just XQ, going furloughed? the did furloughs level kick the in kind if wanted at working around the the to these have times I three deeper, you And of understand it that marketed those that but expect And already, those component. you kind fleets for of that full have guess fleets incur of labor there. for white to apologize space? I working any furlough to guys in crews be costs to Or color a is appreciate I the aren't three are the but four that it more any would fleets have quarter? even, you addressed four

Mike Doss

try will can answer if and of I any you your to part detail. further Sure. you question let know need me

any could we it's terms to that work come fleets in have for way. we opportunities of really, of marketed fleets, put number our So that

say several staffed. working and you marketed we of are have entire on four But so worth going staff incur are that not are fleets And they labor to fleets, the costs. could quarter's have we an but they

those fleets. Over are the of they the less each labor scheduling will costs time, an most for think it part, be in quarter entire but gaps. of I for

of working keep hopes We on in do crews reduced that, on. But fleet other for staff very we available one we at working have are work. excess on don't an wages really that that's than short that's standby opportunity notice

order, recovery, So do similar get require fleet last if probably is the every and have can we XX we a that activity out would that staff, will crew coming a which did sure quality we time to it see good of fleet we a will downturn what days working the XX or we of quality to we the to do in resumption deploy a deploy. make

your answer that question? Did

Dan Kutz

That's really yes. helpful color,

there's if cost and materials? color or the could of fleet side And and also fleet terms in cost I wondering a your repair any versus the repair if are just for have was any variable be you the unpack off maybe I wondering labor any appreciate the was that color would specifically a maintenance, of in of variable so maintenance for scenario? comments kind fleets per for replacement? kind there the And of you component So fixed the what from if repair stacked parts can a pulling versus really helpful. potential percentage-wise, I and of of maintenance there's sales. saving some the what you guys if for normalized And around there, good, of is assumptions on maybe give guys like room then on component

Mike Doss

Yes. I start. will a I wrong. you make And anything Lance, me say can if correct

terms fleets, per it's in about more labor, of And a got So like say, it's, a month we more I crew. roughly have $XXX,XXX fleet. crews, that's the cost of

expense. of fluid that month just probably of in conditions, a is and less A terms half lot and related, fluid $XXX,XXX maybe $XXX,XXX, is repair that under of that. little than repairs, of terms normal In a related,

other deflation do just things doing. crews, think are we you simply in and we some where I of major time some because tend not shrinking during this to are repairs repair see the costs

anticipate So month $XXX,XXX depressed maybe I a kind in $XXX,XXX between would scenario. to of this

cost. varies other maybe direct $XXX,XXX costs, that And and in covering direct that the sand direct containers $XXX,XXX terms a month, And a considered around a would based Are we lease? costs, iron of That but and high-pressure really month. be fleet. providing on other

normally given, bit but can those little than So more a on have quarterly are have by the we That's detail that. multiply three you estimates. figures for rough just

of terms don't fuel We margin anymore. fuel, on sand, we almost, put provide on it's them. materials, hardly In We chemicals, any just ignore those. don't fleets

really are customers very us, for XX%, our of varies markup. quite a Really, bit. of if pass-through. But chemicals, any, the sand. XX% for sand, just In terms now same thing providing It simply it's little, a

Dan Kutz

it helpful color. turn I Thanks That's guys. back. will Great. really lot a

Operator

There no to time. further are will comments. Mike at I turn closing this for questions it over Doss

Mike Doss

Well, again in to We FTSI. quarter. for your look next speaking to right. forward everyone, you, All thank you interest

Operator

your participation for call disconnect and your does the today. lines. That you conference you thank conclude can now for We

FTS International (FTSI) 3 May 202020 Q1 Earnings call transcript