PUMP - Earnings call transcript Q3 2019

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Operator

Good morning and welcome to the ProPetro Holding Corporation’s Third Quarter 2019 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded.

I would now like to turn the conference over to, Sam Sledge, Director of Investor Relations. ahead. go Please

Sam Sledge

morning, call. good Dale appreciate participation management. your as Thanks me everyone. today today's of members With as Officer, is in well and other We Chief Redman; Executive

our afternoon, XXXX, XX, available earnings Yesterday is released announcement the ended which at third website our for on September quarter www.propetroservices.com. we

also posted we our addition, presentation on website that In a summarizes our results.

for Securities covered comments we regarding Reform our expectations call by make projections statements forward-looking Private today's any future on that are note Litigation Please Act. the events or

statements are the risk several listeners actual advise our to discussed factors uncertainties These subject of from which risks filings We the cause many Forward-looking risks to in our and review are results can SEC. control. materially expectations. uncertainties, to our differ beyond with earnings our current and and release

reference included today's non-GAAP these GAAP to Reconciliations during we Also, our call, in non-GAAP earnings measures financial measures. directly of certain the comparable are most measures will release.

our results shareholder XXXX class officers in that preliminary been stages. remains a and in In its early addition filed in named was third directors of its announced to yesterday, that action company certain quarter and releasing have and the September we lawsuit

SEC has the that The by investigation SEC advised also an company company. has opened been the the into

We based will the on in provide appropriate updates on future material as these matters developments.

company's The Audit Committee on Form reports previously the filed has the X-K the in review continued to disclosed with SEC. matters

shareholders' our Audit reported equity, our of cash and that identified review, Importantly have of Board's require any Committee would of statements statements operations, balance in previously the with flows. of connection items to-date or management sheets, statements restatement not

recent not our one the related-party the can of disclosed, However, previously most be details found Committee transaction that which identified was in X-K. Audit

although allow the to hope become believe possible, energy management work and optimizing accounting of as do and become take current even filings independent to in in firm continue XXXX. with to result not we prior our steps public to We will and in business. will soon to and current our taken to as more we end filings we the us ProPetro expect focus closely team have our SEC registered continues our stronger growing Our on a

after prepared to related we our any Finally, and answer will remarks, our questions operations. results

So that, the Dale. I'll to turn with over call

Dale Redman

Sam, and focus Thanks, comprehensive good on morning, you quarter, results as review going joining today's hold as for possible. call last We're and the the to not everyone. recent financial for initiatives but quarter, appreciate our we'll We third we make our operations call. did a of since us

pleased with in During a this operating customer been we've time, in play portfolio, the the United States, by has resource team, our the been by Basin. Permian very premier best-in-class the performance supported impressive which

efficiencies. ways improve Under more team details to quarter. our market in some operations customers, these results. highlights soon, continue with operating find would to I efficient Our challenging third the few to for provide will produced financial share like a but financial conditions outstanding tandem Sam

$X.XX or quarter. second million, the million adjusted quarter. for from X% from of the increase previous diluted the X% per million was increase Total an was revenue of for $XXX.X a compared $XXX.X income quarter was from the XXXX. million, for previous Net $X.XX quarter share, the to $XXX.X EBITDA $XX.X And quarter

utilized. to our earlier, the stay us customers mentioned have of efficiencies continue efficiencies and realize favorable and returns I As allowed our to

at ability pumping crew The hours of record record a while third highlights utilized level. the this quarter record stages percentage also stage a also sand. a to frac effectively team During basis, and of per volumes completed of on zipper number our approximately our perform pumping XX%

site. levels continued in us impressive to of from pads the priority customers our said have As we produce past, well to high these access our positions the throughput large at

turn Sam I'll results to that, in to Sam? it with our go more And over detail. financial over

Sam Sledge

continued in like their Dale. customers our also for team I to field. would our the thank and efforts Thanks,

for our an from to of the was the quarter changes at excluding million generally million mix. specifically of gains second sequential of of revenues. in $XXX.X depreciation Cost in efficiency Looking from results for increase the increase increased third beneficial XXXX, and the million increased XXXX, to of to X%. our amortization third work The increase revenue to proportion XXXX, in primarily $XXX.X services, the quarter, attributable and for quarter the million $XXX.X quarter during second $XXX.X

professional $XXX,XXX advisory was compensation of severance, internal associated quarter third approximately percentage $XX.X flat, bonus general of administrative segment and flat, expense and of revenue and around the third with X.X% revenues, $XX.X pressure relatively in review, XXXX. of was Exclusive million of remained as of $X.X our of to pumping stock-based $XX.X administrative a pressure of of million or the $XX.X XXXX. As million relatively fees, totaling expense services, General second XX%. quarter pumping retention compared and million cost for million and quarter

million for $X.XX share increased million the $X.XX XXXX. diluted second the previous Adjusted the X% to the approximately quarter $XXX.X XXXX third in the the from of share or per totaled $XX.X for XXXX income $XX.X or Net versus EBITDA quarter quarter. of diluted million million third of for per quarter $XXX.X

and spending. with $XXX.X $XXX million and the cash capital ended the of to quarter balance debt turning on third total hand million. Now of We sheet

ProPetro's capital incurred we quarter, initiatives capital. expenditures as of well the $XX maintenance million from During growth as spending on

$XX available liquidity, XX, including ABL. expenditures our cash was XXXX third million of and quarter $XXX.X of Capital million incurred total during the $XX.X as September capacity under were Finally, million. of

This additional growth spent million expects DuraStim through XX, the approximately to its fleets. an XXXX, a September includes on approximately that company agreed As ProPetro first to three total XXXX DuraStim turbine yet spend and $XX.X has initiatives $XXX.X had purchase. not million third on of the

as of maintaining flexibility of capital through be with moving cycles. that and a believe is highest conservative continue always ample capital said, capital stewards provides sector forward. sheet we potential view will to options requirement With at us responsible the our to market We level a liquidity structure we compete all balance that strong a will in and to keep a uses

back it turn over I'll that, Dale. to With

Dale Redman

Thanks, Sam.

I take to provide fleet. opportunity the DuraStim update of deployment Now upcoming our to the like an on would

to not into work equipment well given is to appropriate the to our continue our movement electrically equipment, it opportunity an once alongside our only delivered pump also but that is driven new technology We that partners ensure site. of to innovative adoption the succeed

limits the do of at while these optimize possible our customers. expense To much new our the as the of as having equipment to is site facilities to at possible, much been as still have it avoid we the as this, pushing well fleets on manufacturer's

involved tweak generation multiple all we stroke, automated site. parties until have fine-tune the entire it package, we of And ready We continue to long the well the new from will is to at the and pumps. the believe electricity, way perform to DuraStim

opportunity time, Delaware the alignment drive current our reducing DuraStim making, is own succeed. increasing We, customers, are adjustments, being new initial to and first the initial year. to in DuraStim's to the Basin customers, well which could first deployment will operational technology with our the footprint depend And while fleet our by best down our expectation with for about into of we're on opportunity the to and of end costs Our we along operational in close said, have remain early many this the the our very That currently push final suppliers the same deployment efficiencies. date our excited the give customer at XXXX.

activity the and out for and own Next, our The to in we a as the and adapt give and on focus has we on our Permian. drawdown you in a has profitability The of been sector, XXXX challenge like cost to activity structure us our market I to pushed would customers. are swings acceptable adjust what no to and change a approach our seeing in maintain half from update back returns brief intensify utilization. in doubt

the serve expect that to end and E&P into We the through disciplined XXXX. their remain with very space the year capital of we

with we position fleet see currently and changed, an small are not the for said, a activity Because our expect XXXX, better measure into per way come in field increase ways constantly but looking company. to dynamic we profitability. and this playing has increase expect it do the to in of That to we going

the service, to an us but it operational From the Over one, also while have seen our hard in to this also quality allow shift young volumes. pad reinvesting a our throughout we doing to keep Basin requirement only not development, job we and of provide a to a in Permian with so. years, customers couple return standpoint, quickly past is larger and that make transition laterals longer to fleet performing high discovered

evolving the partners to to the must our jobs that needs we technology second, address frac requirements site to continue And the pull of with of customers. innovative and well new today's work

success the with and will in position will ability chain. in Permian and rely work the on so and We things across the our competitive to customers value past future. has these our to suppliers the been our our believe Basin that cornerstone do the our always, success ability As to remain in

to we Sam? briefly I'll Now, a Sam turn it before over begin session. question-and-answer

Sam Sledge

Dale. Thanks,

to not we other that review, matters. for we shareholder the questions related or able I it would like Before clear litigation, answer related discuss make to are SEC any Q&A, open investigation to up internal or

can possible, on can this all time respect working While and we to those questions quickly we that our your topics direct We at with as request and found be respectfully you therefore operating our business in are current would as to environment. filings resolve SEC disclosures. matters the share details today

it open to like for we'd that, questions. Operator? With up

Operator

you. Thank

first from Daniel session. [Operator We Energy. will Instructions] with Simmons question question-and-answer Our ahead. come go Please now the today begin will John

John Daniel

Dale, of or you. quarter. customer disruptions for as there Have losses customer a process? investigation been Good guys. result Hi, question any the a

Dale Redman

No, of we're sure seasonality, what date for exhaustion, market just the softness to the budget in QX, and is the the the seeing. reason -- here

John Daniel

it's going a the assumption then, of your customers in and last now presume reasonable through process just fleet in profitability normal because And process next fair budgeting Is season where cool. the per Okay, for RFP right see bids? that I one the decline a are lot your is, are year. to we of

Dale Redman

Yes.

early make customers it's our we're everybody's discussions at statement, think those pressure John, on with I this there's reduce and pricing that obviously to in to time. costs. well but And looking

John Daniel

Okay. others turn guys. chime and I'll Thanks back to later. in over

Dale Redman

Thank you, John.

Operator

Incorporated. Stephens from will Please with Moll go next Our come question ahead. Tommy

Tommy Moll

Good questions. thanks for taking my morning and

Dale Redman

Good morning, Tommy

Tommy Moll

So on wanted so And it crew, some unpack to you like QX in hours for drivers if the was could pumping of ask looked record a there. per company I'm efficiencies then, us minute, and seasonally I how keep weak, into which be those forgetting higher, QX will we more to much but more about have pushing room XXXX? go do thinking for to a it

Sam Sledge

take Sam. one. that is I'll this Tommy, Yes.

to do on another hours I we slight You are A mix. It job of guess, pumping had what correct with, improving was an the crew basis. that call increase. lot would per

We what continue wells our Basin customers Permian many the operation four migrated out few from We've pad more to last traditionally pads. to was in over and see years the one-well more add per six-well pad. here a

three to two-well during compared pump higher in So we four-well pads. see opportunity hours us That the a as more more percentage and to quarter, the did gives pads day of just

Tommy Moll

quarter, the you what could be Thank be on following first remarks, think up a back or could to QX And levels little realize more what early up like bit hazard I your a mentioned in exactly that know seems to Sam. Year. we get the it in guess? versus it just you, year New but do may we a bit you may traditionally? delayed next sometime enter Do Dale could acceleration maybe you pick some like, as into the XXXX little look utilization looks like.

Dale Redman

of there. couple Tommy, Yes. a things guess I

little to I a talk early full think XXXX. it's year about

customers that with XXXX completions, about full that's little We we're several XXXX. XXXX. like And continue delay to quite year but has few uptick the going year, that's conditions end of pick seen customers the what look of our going drill early market end delayed here to a really and up but into to of a have the through the that will our the completions in of talking tell

Tommy Moll

That's you. for Thank Okay. all me.

Dale Redman

Thanks, Tommy.

Operator

Pope question come with next Tudor Holt. Pickering from ahead. Our Byron go will Please

Byron Pope

Good morning, guys.

Dale Redman

Byron. Hey,

Byron Pope

I wondering, guys how appreciate how point spent be the step to next be year? the on that help you you DuraStim this capital frame about just DuraStim-related on guys of we fleets color could that through into I outside was thinking might as the if CapEx, at CapEx remaining XXXX.

Sam Sledge

obviously of approximately We want relatively of, could that we're if be I still we fleets. the three to. that. to split that to DuraStim it $XX turbine terms – these power Yeah, early make we the of yet Byron, own I turbine I of $XXX split purchase which be spend capital with I'll of around going now, but be the or million that million were it's remaining we XX-XX talks or fleet take at what be shot will purchase source last And agreed the for we've around previously that think had a we is how $XX of in total XXXX in outlined on was The mean, in that that assuming total fleets. for was wants could remaining million first going purchase. on that third right the close say, we terms third was our to But ourselves, all spend XXXX couple to should in terms to between three if to months up. that, customer customer quoted on what and not best

will don't add So it that Does into leak we that's substantial answer foresee portion now, a that question? number. XXXX. see to going anything of Right we to your

Byron Pope

of Yeah, as it I to too Sam. But that's you think really XXXX. appreciate think on it. base of if level just CapEx that early trying opine I about it's to fine. was And kind a about does,

Sam Sledge

have between think range I on year million a I and I top $X an around mean, per most we you have it's maybe for Sure. little would guided crew. per million that annualized at more to Yeah, there. $X active that, – realistic recently help to being be crew. obviously crews CapEx maintenance the probably $X to million basis out of on next We bit say

be per active $X on would that that to probably So you're assumption the use baseline, trying an if capital crew. make million maintenance that

Byron Pope

free think a helpful. reasonable be receivables. And there'd nice in It that's flow though Okay, you working doesn't guys. QX on for why just a way it? positive front, reason wouldn't seem to then that quarter cash as improvement the any capital be Is about

Sam Sledge

on that's think short focused be have obviously I through liquidity in we'll the king. that we on swings reasonable. like the going but And end can receivables, into year things I of time pretty of mean, Yeah, significant next and and some cash are periods year.

Byron Pope

it. Appreciate Great guys. Thanks.

Sam Sledge

Byron. Thanks,

Operator

Our next Sean Meakim JPMorgan. from question will with ahead. go Please come

Sean Meakim

Thanks. Hey, good morning.

Dale Redman

Sean. morning, Good

Sean Meakim

to XXXX? to if progressing? versus any materialize Could you I'm to there's where also what is to about good trying they're next terms maybe with in And in price but bit position how fourth customers stay into little perspective could budgets, about just year? there – a customers volumes early get need ourselves your in horse-trading quarter the from talk any are Just capital pricing curious, as how that a they help discussions curious, trying ought between within their putting a think you of in be versus

Dale Redman

at level, end to got working Yeah. over doing through pricing we very focused the do costs discussions. year. a can And we're And what Sean, their that's field to continue that's but lot and and that at conversation we'll fluid that our Really be, are the of down. and well of where those the into a customers year we to obviously with just work carrying doing drive on there them our be them execute in to But to they a location us to on lock next continue wanting to discussions. and equipment. need helps we'll make fluid. our those get something And in with return history to and like ability talks efficient them

Sean Christopher

of fair third could little you the not the turbine talk appreciate does? DuraStim Thinking end whether or a determine on market up about any purchasing expectations conditions to cash could bit about fleets, I respect enough, outside with Right. customer to that guess what factors else That's prior that these three fleets, previously? in the that about that. Dale. Anything you I light or paybacks changes those? should thinking the And discussed on of we be we've

Dale Redman

with very of turbine. that that No. that's to two changes plenty between fluid time I a make us. the -- And conversation we've of decision to no would those discussions. again, And got third turban say

Operator

ahead. from will RBC. Our with question go next Hallead Please Kurt come

Kurt Hallead

Hey, good morning.

Dale Redman

Kurt. morning, Good

Kurt Hallead

from hear you Dale. to Good

Dale Redman

Thanks.

Kurt Hallead

color kind are where dynamics market. differentiate some try So out commentary in an appreciate guys respect play And to at just I the wanted of kind back marketplace. come of standpoint the have providing from to the to and operational you around of of been with I competitors the in you some help other vis-à-vis guys the

So may you the reduce some general cost, about find here. about when impacting potentially of to how you talk pricing sense to or give ways and talk from that that you or decremental guys dynamics just may guys margins say, incremental you was I wondering on your how us the can kind if see ability

is I cut at the are initial context And you phase risk. where instance other doing right? opportunity potentially a of of going is margin look like In things decremental could service kind of simple, wanted mitigate usually talk you're a enough. because the And some revenues to an that we that every the XX% just when down, you that company to virtually margin costs fast about kind give decremental can't

Dale Redman

Yes treat we're it's great we've unfairly. And supply can give doing on great to And for it's do chain your to reasons that. also margin. we to way cyclicality for location don't any everything that like partners through to other people customer have you been you that help that your look just good hang to on

are doing the those time. things we're So this at

Sam Sledge

a maybe little add try that I'll Sam. bit on and is more. this Kurt to Yes

margin that probably ProPetro saw of revenue of time trend a XXXX, a improving we year obviously year. think had the decremental end but we that saw we allowed the last job pretty where into to going mix up. I the dip significantly to specifically utilization QX this had was We

fourth I opportunity what year, utilization this be XXXX. down trending revenue we more there's most in the than QX So likely decremental margin think in to hit could quarter where the due with slightly an of saw

we today to said, everything that the and preserve margin Dale as doing of through like can possible. we're Although, year as much the end of

Kurt Hallead

kind on commentary have next of of appreciate in being the little Dale indications of regarding activity terms Right. kind customers the that kind lines cautious And your a I just curious maybe along pace I'm then your of you into you I guess year. given bit very in the of they kind quarter? of of it's plan that when going the year? of Is gradual feel is helpful. at think parts phase-in on do something more start getting Or that course to the would of like you throughout active you the again. a of that the be Any early color

Dale Redman

think telegraphing that's a could to situation it's And gradual. quick are I are you first be and the don't to draw others think some customer-by-customer line and after straight that that a ramp. I Kurt there going

think I that I question. that's So how would answer

Kurt Hallead

more Okay, forward? past can asset that a just loss I like on that's just It that of lower? couple level And over course the fair. probably the you been running Is will at you've bit one that quarters. layer the Do that trend if little looks then X% going revenue about normalize to in on maybe something of disposals. of expect

Sam Sledge

This undoubtedly Sam. elevated is third this year. second Kurt. and been Hi, in quarters It has

in to lot had this a of that think purchased rebuild tried to Pioneer from year. I that early we a had the we previously equipment part was program with that outline due

some refurbishment that rebuild program the and into equipment or legacy have accelerated thrown since We mix.

get the down the sense the of to has renew we're as and components large and due last equipment quarters. more components the I item, that than be it's Therefore, traditional gone say a of fact retiring would would a back them would life I of those say two in line working. and that number earlier to usual that proportion each I increase ends guess, Fluid

look have kind what end things works the to in of finish refurb -- year. year. We of evaluating up few of this of that like of We're next we're on that accelerated kind a toward program would and the

that is minimize as moving to possible number much hopes Our as forward.

Kurt Hallead

that. you. Thank Appreciate Great. Okay.

Operator

come will Please Voie ahead. from Fargo. question next go Our Wells Chris with

Chris Voie

Good morning, guys.

Dale Redman

Good morning, Chris.

Chris Voie

give guiding you to the utilized so Just crewed expect and have XX XQ. and had of crewed XX.X XX curious, that in fleets have XQ fleets to you're in to Can in number you you XQ? you

Sam Sledge

of being in The the crews it's white probably of that. excess down to and will I speak range quarter we the fourth space. mean, We so to XX number that Yeah, utilization of within to in the effective -- XX, due be effectively active utilized that comes wouldn't range. crewed

Chris Voie

Okay.

expect driven fleet revenue terms of versus calendar XQ you on be early XXXX for the XXXX, do the just -- reactivations the rebounds work getting that active crews -- you In in XQ then have thinking about it's for by then? but primarily to more what are prospects do

Sam Sledge

to we'll short the question revenue yes. And pricing answer earlier, and from think increased can from everything doing to is The maximize a Dale standpoint control increased margin I come we that cost be below activity. would like to revenue. spoke

Chris Voie

I just one one basis stage I'd that that line if with And is last guys? consensus Okay. squeeze XQ X% for sound to And then is to about right pretty work. down your like higher? can in or probably is discussions you the in. competitors, XX% per feel a dedicated market on in with Does pricing pricing you much say Do in

Dale Redman

in line, it's Chris. think I

Chris Voie

Okay. Thanks a lot.

Dale Redman

you. Thank

Operator

go come will Stephen Stifel. with Gengaro ahead. Please question from next Our

Stephen Gengaro

Thanks and gentlemen. good morning

Sam Sledge

Hello, Stephen.

Stephen Gengaro

D&A we forward that of here? Any quarters. one The trended as has quick. Two last things Thanks. guide up couple the go for

Dale Redman

mainly it's Stephen. I investigation Yeah, fees guess,

Stephen Gengaro

okay, Oh, the that's depreciation the amortization in and in showing up depreciation, line?

Dale Redman

No. D&A. or D&A G&A?

Stephen Gengaro

D&A, sorry, depreciation.

Dale Redman

just it's base. amortization, expanded asset mainly and the Depreciation

Stephen Gengaro

the the in term? do near we about last something we've you how as we quarters? fleets, that's existing we at in market how about there? EBITDA looking of has the that think similar -- Do at here fleet? -- couple think should the given -- evolved to how fleet we as as contribution per mean, think then And what's to DuraStim are Okay. way about over the the best it look I fold Or the you the think

Dale Redman

as our be collaborate other we savings fleets and stage this what currently experience line to in at determined identify customers. with with think and our with I cost we

Stephen Gengaro

follow-up are to conversations sort -- a it get or two. it last you unfolding as that, for you around And just you just customers the interest? greater trying see of that have Is -- how year sense to sort been evolving? the what's couple And a with seeing over of e-fleets over then the quarters? And of is next how

Dale Redman

Yeah.

going conversations be of a up, fluid that's very think parts situation those -- picking to and to parts Permian are of of in some different I the because the in of basins. conversations mandates

to be bring we'll as to market and ours more we forward then. So look able share to giving color more

Stephen Gengaro

Thank Okay. gentlemen. you,

Dale Redman

Sure.

Operator

come Our next ahead. question with Citi. will from go Scott Please Gruber

Scott Gruber

morning. Good Yes.

Dale Redman

Good morning, Scott.

Scott Gruber

what you as to the be addressed specific Dale technology, you And deployment? test needs ahead continue during DuraStim to there testing? of the have is that learned issue any

Dale Redman

as early mini at there, to Yeah, little important. We're is seeing very not look this software closer and point forward we I sharing next which our yard. the with move couple over think of issues on no the is And having very well it's a any great. look of you major concerns issues. alarming The discuss forward more to to having And weeks site. that in

Scott Gruber

Got it. you or one then of appetite you'll one the kind more around think options DuraStim in mean, question for have options you general I traditional of fleets. just those more? Do e-fleets. last on And exercise for three XXXX guys

Dale Redman

we not June decision conditions year. rush Yeah, a and dictate the that it's next XX to are before of that market make going to

to forward lot a and that. things there's then between So, now of learn look we'll and

Scott Gruber

there assuming pull appetite on would still money, options the do to in economics change are any or your still And economics in just still money? trigger overall the behalf if suggest you it. Got on that want so the to the you're is in the those

Dale Redman

that customer partnering make other our financial for on that that good us is with our to of make side decision Well, the stakeholders. we'll sure a

Scott Gruber

you. giving standpoint back I capital -- at on to Got business shareholders, more any coming cash grow it versus change to from cash giving the that front? I guess or the was of deploying

Dale Redman

think making how to be listening answer I that's at we'll time think would our I decision and shareholders that. the proper I Yes, that and

Scott Gruber

you. Thank there. color the Appreciate

Dale Redman

you. bet. Thank You

Operator

will Howard question from go Vaishnav with next ahead. come Please Our Vebs Weil.

Vebs Vaishnav

Hey.

regarding So, asked conversations can you the you respect about and But those ongoing? not are SEC have I'll bondholders ask investigations, how to NYSE us with XX-Q in talk on that. delays

Sam Sledge

everything to we we're collaborating to in is entities appropriate and our That's there. company we be. standing sure can can doing make everywhere comment Vebs, it all Yes needs good with about the all

Vebs Vaishnav

Okay. quarter number about how should I fourth QX? can right. about could All apologize. profitability? I you us like did, talked be missed, profitability about of we Like the the think the any is you help but in if Did fleets, way Maybe think about I you what speak there

Sam Sledge

I comparison our a make in to just trying did slightly that similar profitability experienced in little bit drawdown earlier crew Yes, mention we quick to a when a utilization. per trend XXXX in

quarter margin quarter that XXXX to in going is over wasn't probably larger of coming it fourth it's So, could we saw quarter down revenue decremental be the when than XXXX. given in that we experience slightly a

Vebs Vaishnav

sense. makes That

Sam Sledge

No. No problem.

Vebs Vaishnav

next minimum cash level us of just you fleet transmission. fleet that engines breakeven? think ends about to for thinking per What's per SG&A three to is the need like help about fluid cash I'm that think replace per that fleet breakeven years we you fleet and whatever be Can and you at two, when the one, about require profitability profitability like over

Sam Sledge

would react Yes, if I we're ends things to we fluid maintenance consistent we the on guess, number that we're to of the a mean of in That through market. sure so business active. can types that EBITDA cash sure not willing But should just level -- like swings we're to to working run I our just minus kind breakeven define flow the things measuring is mentioned. that you basis make absolutely most for those are normalize in stay we appropriate manner to fleet I'm CapEx. simply a

Vebs Vaishnav

All right. That's much. I so needed. all Thanks

Operator

Waqar Our with Capital. next will Syed Please ahead. come from question AltaCorp with go

Waqar Syed

Dale, Thank for you question good for a Sam, congrats, the and taking quarter.

first In said you quarter? of guidance referring quarter, for quarter the third profitability may flattish. Is first fourth regarding that your the be terms to profitability profitability or quarter

Dale Redman

to of We're the point at this between caught our probably best ability gauge. somewhere

Waqar Syed

of cost fluid then could Okay. what third was you ends And quarter? the in let know the us

Sam Sledge

-- off XX% the really an say million to probably maintenance can little Waqar I that quarter, of Yes, of half maintenance annualized And the mean this traditionally we more it million was were our I on with number. you than mean we we the basis. we fluid range spend year, half quarter that in tell CapEx number. that I a top to being $X just pointed end all during capital below the or third were $X can ends of

Waqar Syed

Okay.

good the fluid generally be. would normally be million. loss that indication ends of number? How relatively was in $XX That Or much on the so of was what And quarter-over-quarter fluid ends? of cost that -- a assets disposal could what all flat is around

Sam Sledge

due mentioned below and Well this a and I half voluntary I being item retirement we to talked large that more pieces traditional rebuild program components of some line that of number our sense earlier in that about. guess, of of what equipment

Waqar Syed

Okay, very great. all That's much. you have. Thank I

Sam Sledge

Thanks for call.

Operator

next Curran Riley Tom question ahead. Our will come Please from with go FBR. B.

Tom Curran

Good morning.

Dale Redman

Tom. morning, Good

Tom Curran

you just have whether with Pioneer, where you the active what tell it any exited it averaged into that specific have to could When better that you visibility the to us on comes XQ just XXXX? count demand for and spread quarter

Sam Sledge

quantify to how don't terms activity customer-by-customer specific continue great throughout all next to usually going on we been We early year getting utilization. mean an next so bases year. this Pioneer's we're a in customers. into active year in individual they'll crews partner it's utilization I be and Yes. or of think

Tom Curran

being over see count might Are terms of or in quarter or do of you churn had exploit course have the whose that to signs within have type your jobs the -- able going or of health spread you to active even you you viabilities able do been take already of you there, from already of to poaching customers Are about concerned ramp financial you advantage becoming their opportunity of expect here rivals here? or concern? are the

Dale Redman

what Yes, really make focused We're the focused customers on so care take to we that's trying of that and serving. we're sure needs Tom, their we're we're on. just

Tom Curran

questions. for Thanks taking All right. my

Operator

will Our ahead. Pollans with of America. go next Harry question Please come Bank from

Harry Pollans

you deployed stacked on any kind Or effectively cost talk of your you detail XX your Can about that utilized and effective utilization guys. more XX helping Thanks. Hi, your fleets? fleets? understand total fleets XX Have in to guidance is structure? us

Sam Sledge

take that Yes, Harry, I'll one.

just a fleet level as XX or working a days an we So -- effect set, utilized days in month. XX define effectively quarter to fully in

an cases can there's in will -- many number call active a of excess utilized have our we where said of like crews staffed we crew So earlier, what we crews. effectively

draws and our best So in. is key performance on our this hang in business knowing mainly personnel do strength many to this people when dependent our team to that upon the the of we'll times activity like as totally is

therefore in be number of we quote we that to dinging margins, staffed EBITDA So something or effectively guide probably due utilized that. will to like margins that excess dinging

Harry Pollans

have timing DuraStim more second Thanks. those expect those you about kind beginning line deployment two year? fleets, talked we Should there? two? regard on in so time the on Okay. the One What's the with to of of the

Sam Sledge

the as Yes, they'll throughout be first XXXX. one, Harry. roll better a sense it'll And spread have -- out we we'll much

Harry Pollans

it. Appreciate guys. Thanks it. Got

Sam Sledge

you. Thank

Operator

turn to question-and-answer today's over conclude the remarks. would to for now closing will session. Redman This like any Dale Mr. conference back I

Dale Redman

have great Again, today's of you a season. and and holiday we call Thanksgiving participating all appreciate in

Operator

concludes today's and conference. This you Thank may today's presentation you attending for disconnect. now

ProPetro Holding (PUMP) 14 Nov 192019 Q3 Earnings call transcript