CELP - Earnings call transcript Q3 2017 | Cypress Environmental Partners, L.P.

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Operator

Good day, ladies and gentlemen, and welcome to the Cypress Energy Partners Third Quarter Earnings Conference Call. [Operator Instructions] I would like to now to turn the call over to Richard Carson. Sir, the floor is yours.

Richard Carson

Thank you. Hello and welcome to the Cypress Energy Partners' third quarter 2017 investor conference call. the Carson, Richard am General Counsel. I today and Les us Chief Officer. are Jeff Pete CEO and Accounting Chairman our Austin, our Boylan, Herbers, With our and CFO the quarter cypressenergy.com. results We our XXXX our release on third and released posted associated press website, financial release, find an press statements. regarding important will you the disclaimer forward-looking In of This component and important our disclaimer is an that is remarks essential you it. review to the non-GAAP measures have reconciled various press that Principles. are Generally release in Accounting included Also Accepted we release. the towards reconciliations press of Those end the appear

I the turn to that, over with So will Pete. call

Pete Boylan

Richard. today Good your our morning joining Thanks everybody. Thank and interest for you company. us for thank you in

$XX are finishing sequential the We of continued quarter approximately with the approximately $XX.X million third working our million. with quarter current cash progress pleased and during of capital

focus the our continue diversifying to quarter. continue adding customer across three and in growing add to total business on customers last and a new all segments customers new XX base of We

the PIS and our business the new several and quarter it’s years generally IS approved of margin have with business in For higher August. the quarter will with IS the next were our recently to in though our of third in PIS that previously of second delayed segments inherent they many strongest generally We disrupt in is some with and margins as cycle. consistent quarter segments, Harvey the delayed Gulf third the each [Indiscernible]. XXXX, the percentages of than the due seasonality were over opportunities the This Coast believe even been year many annual were quarter XXXX projects projects have the business and hurricane revenues,

business several new line have line started year, in and companies. inspection been have we awarded units has new and the of mechanical support projects a business integrity requires. nice continued organic latest of investment-grade energy This to every customer business two invest We already offering unit this integrity that have services, with growth from new new

than For discussed in inspectors in headcount second loss offering of services this XXXX quarter our in was was previously it margin our of XXX the in quarter we Canada inspection the services higher basic lower over despite that pipeline year. segment, of the third XXXX,

on base in continued have the distributable and improvement, staking These revenues any cash as flow. on margin examination, quarter. focus these generate to were in quarter integrity inspection our business and remain We previous non-destructive of We efficiency higher the focused services. mechanical lines than XXXX third businesses that capital of higher our margins typically working businesses

the lower customer Canadian work be our a revenues will basic been the loss of at future to second result, end the As lower quarter. margin have of much the in from a Canadian service this past, in than the they due significant

customer of for were XXXX in also continue of to the However, integrity XX% quarter. they Brown were integrity services segment, services. our this higher than work in the quarter second Revenue importantly we owned higher-margin providing hydro testing third

to backlog assist stable. hired in development leader these and and XXXX, more success reaped new utilization of our we in has one well our quarter materially have two has added for some increases in as and quarters the via As year, Earlier business improved the have business first XXXX, backlog efforts we we a remained of this recently as fourth professional. development rate

the located in in Two in excess activity. on of in are of production X% the the increase region volume in which when The remainder bids our of activity are than segment in facilities third little and bid and been slower the where Permian. remain focused our these an on basin, located increase of a quarter Revenue & production more have upcoming schedule. dramatic facilities to capacity winning ongoing we our was backlog Services our has of effort to versus continue Water the numerous Permian has especially We recovery the quarter. opportunities higher the Bakken second experienced Environmental

XX, occurred companies months acquiring of However, new with with turn substantial M&A ended backed through amounts and the activity substantial energy plans disposal. has increase equity a drilling September private both in for create amount acreage to will water which the in nine Bakken production of

over permits as with up have the activity. XXXX benefit very come. than regions private to docs, is in North inventory with drilled the we complete been quarters both completed XX,XXX to grows. coupled in should wells year-to-date generate docs that revenues, well And Additionally, Year-to-date new have Dakota producers XX% has in countries of investment importantly, up the XX% well as permits and XX% issued expect is activity up and versus us up new activity. over not new Dakota to Once year North XXXX permitting with a been yet more significant robust, and the the these additional permitting for new volumes taxes number opportunity last equity as

As previously disclosed, service. one facilities out lightning by of remains struck and our of two were

fully facility. Our and reached with our agreement recently regular the and Orla our loss an at company covered insurance be for Butte North have should rebuilt open we Texas facility Grassy on Dakota December, business in

the Despite the positive year. low maintain price the recent Bakken this wells public for three connect expenditure XX during to years, a few with We a large three pass environment capital same work of one expect on in energy our the large we also continue five pipelines year well development opportunity XX commodity new existing XX into ended cash facilities company. flows and new of operating total of will the that growth for a XX

common CELP. Energy partner affiliates general holders remain ownership aligned Cypress our Holdings control interest its with unit our fully an XX% and sponsor, approximate with who Our in

provided reimbursement require of $X contributing expense CEH the CELP support As has and from a for this support. additional result alignment, any quarter. CELP financial did to this again million CEH during by not consideration

we acquisition of focus the to of several of Areas our may pursuing. attractive of intent. continue are letter acquisitions continued Holdings us currently one currently possibility our deploy business to interesting evaluate to drop-down opportunities, to light in plans acquiring assets on under exclusive be also opportunities. diligence to that independently be and capital traditional continue of to assets of considering in assets opportunities larger composition changing the than remain willing due opportunity these existing can potential of for midstream opportunities portfolio us including, we with offer We we in lines those as us assist acquire are what currently sizable

limited be approximately we As announced October, for year. per $X.XX partner At this level, million in cash distribution the will will total unit. quarter’s X.X this distributions

encouraging $XX across customers drilling of from of three just business barrel to over see XX% signs including of and third currently We exceeding and our activity new adding the price beginning up oil per continue permit quarter. the all new segments, the

working that continue organic margins cash to We contribute our in improve capital focus ratios. flow all and and growth to financial turn improvement of will on to of our

believe XXXX. serving public has fundamental and the strong Cypress now experience We remains been I Jeff having much officer accounting named our for has entities addition demand disposal for over larger Officer. principal to would in significant worked Chief Jeff long-term. continue two company water as inspection CAO. like Accounting to public Jeff the increased Herbers, introduce our prior to our to in joining

a search new that a strong for will team conduct while lead we have CFO. Jeff a We

some you can highlights? financial with we So walk Jeff the that through of

Jeff Herbers

our the distribution Thank like to our X.X Adjusted quarter some which Distributable was holders quarter up to attributable flow EBITDA take of you, attributable X.X to common of is from of owned or $X.X to hydrostatic $X.XX which a interest per was third the million of non-controlling attributable the of our approximately that million unit. will a million, $X.X Pete. to third pay quarter. information. one million for point I XX% testing holders, loss Today million, and million would which subsidiary general million for moment $X.X financial is the in highlight our partner. we EBITDA X.X second cash dollars is unit quarterly

times was I’m quarter, Our X.XX further our in coverage providing up the second investors to additional performance. quarter. first this in the up our times ratio X.XX understand information and from X.XX times,

the $X.X common holders to loss our of unit the Our general X.X attributable net million million, partner. was $X income income in net of third attributable our comprised to net a in million was quarter

addition have investment-grade future to continued to In continue investment-grade from to XX% over we should periods. these reflected that have additional financial in would our be I also note business of generated and with customers that we revenue highlights, win customers new

investment-grade. some work. than More are of new to some up our clients continue bidding we new on currently major picked have and inspection We XX% be contracts

times X.XX of covenant Our as versus times And three calculated our of interest our X.XX covenant our ratio ratio was credit coverage was leverage facility four times. our times. under versus

quarter, sponsor. the of stands million our the position $XX.X at the result cash in a part at Our of from financial as support end

third X.X% inspector we and earlier X,XXX quarter personnel domestic margin during lower the of headcount the the integrity XXXX. XXXX, inspectors despite quarter, in quarter average We work inspection segments lost fact and that hurricane per fact this the the of for year. both some projects service delayed despite Canada Harvey Our our some that basic approximately week in increased XX averaged service field second and from

over fourth-quarter, currently As inspectors we working. seasonally slower head into we XXXX have still a

water water water water, of represented XX% volume third produced During our total total the approximately piped volume. quarter, our of approximately XX% came and from

continue minimal cost increase, with As current increase. commodity expenditures and activities have and our to and improve, significant we we structure maintenance capital expect prices operating completion volumes as drilling leverage to anticipate

XX basin. of of Bakken our region an shows and Texas a of Dakota estimated are the latest in which in Our drilled research radius are and wells XXX facilities, mile Permian North uncompleted within XXX XXX the which

benefit these newly oil from we completion prices wells. and of As other completed to improve, expect the docs

at facilities Our XX% less of saltwater utilized their are disposal currently than capacity.

see considering XX% picked disposal located benefits, in has region. saltwater should facilities some Bakken, in we activity our meaningful this of are up As the that

XX of third the Despite was capital for the expenditures water the Dakota saltwater system move yield capital the new agreement one lower water pads and during relative gross average dispose in the a maintenance existing the drilling DCF. oil system generated business of third higher is and After of continue energy approximately expansion over quarter of barrel new million service water We businesses quarter impact adjusted serving XXXX gathering revenues, of gathering activity, industry. and with this the volumes, for EBITDA water to well with We should with saltwater strong three and to a attractive of total North disposal barrels XX% related margin EBITDA a X.X wells nominal expenditures, quarter. facilities. is rates many per revenue which completed, connecting environmental $X.XX our forward to and disposal oil significant prices third of to

businesses to us has integrity operating continue quarter rates. results because and increased to increased should and better strong allow be of Our yielded third to operating personnel in service higher backlog continues results field this and XXXX more operate segment profitably. utilization improve utilization Backlog our

have currently in benefit capital expenditures backlogs. advantage sustained This continue higher differentiator a The all I higher thousand the year. despite higher tremendous our rising over what Pete. MLPs. further in us, in the customers We call fourth to to was to required three focus benefited for XX, the in levels our operate Jeff. business segments, increase to should significant in the result pleased a negative that as a were see with been customers. that, prices September Maintenance capital quarter prices serve. on our Thanks, the business. all months were that customers will and the business rig of in attractive of able the investment model and And and the expect us add three versus energy the to quarter services the of count, customers the a XXX,XXX hedging companies generally plus permits remains ended investor that turn segment, taking The address resulting not in E&P other reported I Pete XXXX opportunity commodity increase we virtually of for for do we a reflecting maintenance back development key our Boylan as business with talent in expenditures activity new we current last need sentiment activity clearly we macro that’s across over to XX virtually limited our benefit of turn continue

are that excited LOI promising on opportunities growth, one ongoing We our we continue to that to currently us and aggressively acquisition earlier for supplement are look about. conducting exclusivity with will potential and diligence due diligence as on allow targets mentioned organic have several

We a have material a strong sponsor that economic has interest.

we financing than interested truly is truly opportunities sponsor and and organic we attractive We interest Our our value opportunities risk while continued your execution, profile. are in your appreciate focused improvement that operations, handle suitable on current support sequential in time, that remain independently. our what your valuable Please our Cyprus. acquisition can note, growth pursuit in with in continuing and larger of acquisition assisting growing a

best building focus long-term Our value disciplined board, management also a on employees remain company a team the with can unit committed growth. and through to approach to we holder

a board has last Finally, time, to management we to made talented CFO strong years. CELP success valuable his a and Les wish sponsor. at team, I over in our him would his has like great five as mentioned significant this Les and the Austin, thank us for endeavour. contributions contributions new I and

pursuing Capital fundamentals the customers new we have operate strong essential are segments they core and with grow Both business. law currently energy Our to by support customers requiring attractive organically expenditures. of can services required long-term minimal our benefit and businesses

business. planning we these portfolio taking questions. are to diversify strengthen though upon We acquisition to our may and Operator, further by lines begin services build now traditional adding our midstream some to business of

Operator

comes [Operator Marshall Adkins Raymond from our first Go ahead, Instructions] James. from question And Marshall.

Marshall Adkins

and I’m is like versus you had guys, going morning in of curious, the forward. that in pipeline normally looks structural side the that stuff, bounce Good pretty the a in pop nature, a Canadian sustainable U.S. consider how ex time the of because business had bump. improvement inspection that nice you also business integrity the year, much we up in seasonal do nice a

Pete Boylan

Marshall, doing? you morning, Good are how

Marshall Adkins

Good.

Pete Boylan

had we and the our come of a our inspection of services. lot older pocket customers of that gearing think of the you progress the of days I money, to a basic, pursuit construction are margin, opposed mix really integrity to expenses make this continuing of we much operating lower with toward opportunities change pursuit in business a different know out typically as higher-margin where in that new

that reducing part our the improvement substantially hopefully know So have to a bigger after of business of fewer generate budget in ongoing working their inspectors that margin which development kind capital and has existing turn and effect year requires get as re-thinking become operating we of obviously we a us, expense those of our better maintenance are of focus infrastructure our be each the clients there inspectors efforts find things. for opportunities year been will really to

to we work be new fuels, had storage really gas with that you grow regulators. refinery, an then of hit a an be talent a facility, But on be had that tremendous have served mentioned, to You we’re TIR a running past. mechanical up a where the customers, and the involved etcetera. pursued compression call I OSHA first fence, station records market, some mom when and federal the a space know that’s know new higher-margin new could going we integrity refined the opportunity other oil state fence another ground plant, that things of what like, with is at nice we examination from pick are top it’s pop basically and and activities think layer clearly new some integrity some calling this could some a placed the defined our never initiative in could we to And we non-destructive of in the in be it so storage yet group the I be opportunity and getting in TIR regulation expect competitor quorum see construction hit new activity, untapped to quarter, some forth. during and the could our facility, in never in we could and with that and be

Marshall Adkins

bulges Though is it from a of getting is of industry change like there better of summary? lot structural direction, and sounds is your the sufficient that it

Pete Boylan

people draconian, do and integrity finite belt the during that and what on defer last Yeah, everybody happens the tightened a you which the seen indefinitely are in we’ve couple I you of years. have you indeed you think more so period for of spend know like integrity their is as defer that some maintenance to can know, that’s money but downturn, and because fair and work they time, can’t you maintenance know work, consequences cost, had

Marshall Adkins

the switching Okay, the United basins, water. of gears Orla facility, one Delaware of States produce does hottest in and lot the it basins to a tend

how need you get go to running to you you it mentioned, pipelines expect and on think take December, to whatever or back will up to that facility take to I up you that ramp that on do long again. reconnect have

Pete Boylan

facility is storage acres, then got ability supporting and into tanks gun to States pipelines three rebuilt put wellbore great barrel, wellbore that activity we’ve as so without producers, three on and from got levels. but it different the the a Zero Yeah, United it’s have frac there we’ve temporary the so battery the we XX out, operating for in investment-grade in probably still close basically and to Ground pointed you another we’ve that got

and It the We they acreage some capacity and on back for going at capabilities. won, type have did water our for pipelines. somebody was of didn’t it substantial and else own forth amount to was competing they to somebody have of wanted new kind There turned that their we build. the facility nearby they that of has secure some infrastructure out looking auction were win

deciding imagine have grow and you pick I from were up in we’ll to going were hybrid be you continue us all we’ll what dedicated type to activity know would continue pipeline So begin and or of build, there. facility. we terms and to going truck and the that the know to able to as of facilities QX sequentially water some caused whether we it delay a in turns support that see out, But to

Marshall Adkins

from last me. right, All one

and in your You or close inspection heating mean traditional on midstream got opportunities, water side the that the here, one it’s think the mentioned acquisitions or site? hopper I up, you does

Pete Boylan

we have pursuing an us And them fit that’s processing one water, another the exclusivity traditional into is [Indiscernible] early of are is one company. get business. tell, another integrity don’t in basin the into there gas would would So we to would and one of they attractive and that the too then at, be inspection midstream

Marshall Adkins

board. the across So

you. thank guys Okay,

Pete Boylan

you. Thank

Operator

from And our Bellamy from next Ethan question comes Ethan. Go Barke. ahead,

Ethan Bellamy

guys, to Les for just dive year, in hard Hey him past his to all before in super want say I the been morning the and best. thanks he’s and question, wish good work the helpful

Les Austin

Thank you.

Ethan Bellamy

respect the is in looks year-over-year, on driving down metric like that mix that’s average field to that With there inspection in come have sharply revenue services, rates change a business? down come per personnel, that’s or

Pete Boylan

ATVs pay else opportunity on. then our of XYZ sometimes, skill, probably revenue probably recall have to for kind a and has of line. per XXX days five and invoice that of margin the that rates the can other going know clients so inspection specific weekly, imagine being [ph] on days noise are because above, Jeff, us pay per involved, low and can specialized a regardless average the maybe and would day driven a model, client, then on lot per steel plus our a pay at all of us, bucks stuff other job XX per days see high of no a if that applied inspector, and we and pay clients you of a sometimes from days drives the top the involved, reported in because different pay take course guaranteed but inspectors of requires the you seven of only get to to All skill VM as capital, different that. miles also day $XXXX at create some and a it fee you would day working every equipment we of that. Yeah it based to for some a week, get may Ethan, diem equipment Mileage we got pay policies week, speaking some can range of guys a generally a week, some to some six influence a anything per you driven, level pay that miles policies, Les mileage you you

Les Austin

seven in diem that change days diem Just to per can no of number, per that point, Pete’s the per versus $XXXX rate. week

Ethan Bellamy

like I will would that, metric lot a into sounds there that anticipate for as online. of mean it are that speaking be new the that that coming projects impossible elements forecast. with to tightens go it capacity us broadly increase Okay. would More you

Pete Boylan

a with services of new of Jeff, have basic margins know lower, construction disclose the gross in goal you think different we and difference quite obviously Ethan give I specifics that would the about are are of grow the past headcount so competitive projects guys is that you and I at think we of we type the that type focused we bit were margins on reasons, other color percentage, more way pursuing, a our to don’t significant offer, lest and our for to -- lot because a would the don’t on which is think focused on I service because question any I took in on market do Ethan where work we less the rate margin

Jeff Herbers

there the think mixed, I that typically construction of projects for where No, we diem out inspectors are those paying are diem on per most the by issue, is but per backed projects.

Ethan Bellamy

the Okay, trending by switching rates disposable, to are basin? how

Pete Boylan

view XXX,XXX is and I XXX,XXX now the a we months and barrels than completion freshwater are the frac my business, willing started are Permian Permian a this six capacity to a a to but in better higher of especially pay first one probably Ethan be disposal in seeing big on and job going are Rates shortage do, for guarantee things in of people big some stimulating with pads of couple a we seven pads, to used well water to and laterals same well and longer these drilled amount these be then enhanced slides not positive back of we’re was of of yet and more closer time water quicker seeing you’re all zero, lot business get there it getting hydrocarbons, the logistics to on. is so and the but drives bottomed a a when a dynamics some and barrels single the and would that are rate bell from disposal course there are out their water six whole plans. flow cycle, now completions in there places and and water only capacity ago, more And, jobs that frac going curse where so some continue

Ethan Bellamy

per Any wise specific range Okay. we can about maybe? barrel like numbers cite, that

Pete Boylan

Yes. macro understand are and Every different Eagle neighborhood not these we’re is so please just the comments, Ford. in

not We’re in stack. the

We’re the Marcellus, those opportunities although in is time at look basins. acquisition the all we

north and water no really that at to XXX footprint one them as differential and miles you is In only and would to Bakken be see costs the each you and the cost and $X, be with of might you've depends on differential are know probably authoritatively They pricing XX have flow the depending pricing $X.XX, all but produced broad scattered it those becoming there. et and electricity flow to higher far Bakken where be just The higher. neighbourhoods $X.XX might Bakken different higher. back the to but plus to there the of I we the that low windshield got with up to high are a structure low The what would cetera. or maybe operating produced XX something it those and pricing. see of be the labors can doing. and are some for you Permian, the be taxes So neighborhood between in little would $X.XX The closer command between back and and a upon on XX closer you different to think time -- rates now I disposal competitors got can speak on few

Ethan Bellamy

mix trucked last on, forma Got water piped it. versus And have like? pipeline the pro of connections you what respect look one to that the With question. coming

Pete Boylan

forward growth depends we pipe with Going the where a up comes Orla that obviously percentage of online, when pipeline just the in lot but on rebuild. end

lot change some rid question that We’re of that could we and secure some capacity. to have up to and of a that need of who producers deals new if suck they talking get with were really water a pipeline lot able

Ethan Bellamy

Okay.

Assuming those land you don’t you what right with would you get now? have deals where

Pete Boylan

Les Jeff? say, or would What you

Les Austin

it were the north would piped quarter, higher but XX% that. volumes be of would be than third We in XX%. We

Ethan Bellamy

Okay. XX. More than

Okay. That’s helpful. again, Les. guys. Thanks Appreciate it. Thanks

Les Austin

you. Thank

Operator

next Brian from Brian. Our Go from question ahead, Stifel. Butler comes

Brian Butler

Good morning. Thank you for taking questions. my

Pete Boylan

morning. Good

Brian Butler

the hurricane. when Just the how from on segment positive quarter the thinking the basis one, of seasonality, into then the to sequentially you second also we think may kind kind of of been considering the quarter saw on trend should a third first quarter, the work be you project about some that fourth but have pushed due

just fourth of should we what on thinking about just of just but quarter trends, if kind that, go through -- can So kind core the the we talk about? we could

Pete Boylan

Yes.

time of of a holiday the So, holiday, in the you Christmas got those quarter the and impacts wildcard always is the off take generally holidays. people industry an that energy Thanksgiving that one lot fourth got you

dynamic spent made be once Hurricane until those which or budget has toward lot geared reengaged the CapEx and year exhausting some have things. Harvey CapEx spent. been have got by obviously seasonal issues authorizations fiscal available a budget second typical new you've to that delayed have the a and new Offsetting budget new of don't they’ve is The generally people they get the really on been spent Thanksgiving industry and CapEx

growing You've number docs. got a of

backlog there's really people then until the FERC and else they have moving You lighted administration to completion. of have pipelines, gated right completions front be projects number now planning in want them then crews benefit generally is growing completion now hung in engaged this a got are anything other of can are will anomaly want they as And the on get and and in been drilling of obviously whole possible and the bunch forward were to quickly going and a those actively got shortage because we proceed. we've and with ground than up new complete, and a a weather that more them that that so been don’t green they people by with of the

So long-winded or drive answer may what variables to the that be those a simple are but question, all possible. not may

would volumes. have do division of depends you and the work Les, we a stop some I can lot to Brown higher to and inspection I that will more So of add would business integrity, we whether weather. testing work or the anything water they do hope on and and Hydro Jeff. because whether have these else believe projects

Les Austin

that’s think I pretty accurate.

Brian Butler

you’re Again, still it to the quarter, year-over-year. to like the probably there fair Is be of a seasonality quarter directional and be from we based but in third up on call? the sounds that down sequentially saw what going -- is going is Okay. strength

Pete Boylan

is I don't there they're and know which going to that. it’s way on to hesitant speculate some projects hard think to so go predict there I'm out that I

Brian Butler

that or volumes, about Okay. coming how about into should a basis should or facility up? of or volumes revenues December. basis And facility line quarterly sorry, How think then with – the on back heading in we I'm kind a Orla run on back rate think on expected once we is online XXXX,

Pete Boylan

where a target. be able should to will from have we think fully moving basis able we What today. on they volumes grow be a sequentially utilized to facility quarterly the are I Well, the remains date

getting and predictable are to do sub up and very people As tight you show supposed to super electricians busy is when they're not frustratingly and imagine concrete roustabouts easily and become do labors so. always would every

Brian Butler

we’ve know, profitability, was Okay. mean, XX.X% kind does How revenues I of And of about talked with of quarterly kind the what kind to operating How think the I should kind in you’re gross we is it that's think incremental some XXXX think that spend XX.X% of if about? if go growth? thinking trying of just to guess call if the we positive XX just or you what’s I can quarter leverage sustainable. see forward third XX margins? I’m at incrementally that trend overall, if you about

Pete Boylan

on. Yes. that any whether It these about depends on remain optimistic of happening will acquisitions

leverage. operating substantial The water status assume has call. let So the business

obviously CapEx They’ve no the growth material CapEx. And with facilities we’ll tremendous incremental got there have project, highly so pipeline utilize. maintenance with not the capacity this but

literally electric bottom-line, of because chemicals and your generally revenue dollar So drop can a the costs are incremental of to city $X.XX straight speaking.

before our work in challenges been to happen we it’s a don't and you to of have The our run totally the business and that has may on which you cost long business you of we one sure get has surface operating schedule, and different Hydro significant royalty keep as can of put it's project Brown and we service a add we’re continue model, again rates the hydro go to in make and If has know things time to in done a our test that and occurs we tail-end managing the the about line testing sometimes leverage. the test fixed time Sometimes as lumpiness and all costs covered periods is getting them. occurs, utilization that right then have acceptable weather.

job, about we bids. we’re getting more path hydro managing bidding and to then we to Permian And The got of of are other. so, just grow. high a and a to time wining for that, We at problem look when bit have demand the that. need of it to testing five you before there already in on block double we we week five committed problem a to talked we got we’ve By that, we’re we about call loss hydro client happened to those think all we then said or And again to And is up the hardly better want we’re it war. And have fully class be stay to there navigating a out what the a days. uptime we you can so the delayed problem week that each and that we that hey October swap. third want of on right the tremendous been continuing how front, and of when continue and integrity number say, We but pick its a the of and otherwise to get get with book having testing we’re schedule and top this and win construction on utilized, kind four, and sudden rain more work this on utilized. like be basin of a inspection of to days a

more to course nice our climates, is So counterbalance California of or They example, less for to Northern a in that with starts PUC but weather this tend better then holidays. of work stream benefit working. the work of and that Southeast traditional to business weather already discussed better expanding mid down And focused slow work because you’ve that that been on. some PUCs have have and the again least not the mix we we’re of into because I last and got

Brian Butler

SG&A it, and one the to we then not forward just going then, dial fee maybe and what have relief back? going It temporary net about somewhat one, And we get you’d be release fee right off. level last call X to should the income that sponsor would continue the that or receive like kind fourth to on switch from should XX to where closer – you is XXXX get that assume before of at quarter about how runs release that XX thinking they’re seems million into SG&A. does And the think line to Okay. million that of

Pete Boylan

of which a function to sponsors I continue Well, improvement. this didn’t in continued now supportive, we just like repeat where obviously sequential we Will said, obviously be have need times the I’d them. is support, align as is several to the position a

So prudent regard we what with we’ll a basis do continue that. to to is believe look that quarter-by-quarter at on and

Brian Butler

questions. taking Okay. Great. my for you Thank

Pete Boylan

Brian. Thanks

Operator

turn to that to to floor is the I Sir, this be back At now And last appears yours. like the the Boylan. Pete time, would floor question.

Pete Boylan

morning. you time. Well, We for you and Thanks. talk once again we’ll us joining next this thank everybody appreciate your support. And time to

Operator

your this a This day does conference. you. participation may wonderful today you your thank you at conclude and have lines for disconnect We Thank

Cypress Environmental Partners (CELPQ) 14 Nov 172017 Q3 Earnings call transcript