PUMP - Earnings call 3 2023 | ProPetro Holding Corp.

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Operator

Good day, and welcome to the ProPetro Holding Corp, third Quarter 2020 Conference Call. Please note, this event is being recorded.I would now like to turn the call over to Matt Augustin, Director of Corporate Development and Investor Relations for ProPetro Holding Corp.

Matt Augustine

Thank you, and good morning. We appreciate your participation in today's call. With me today is Chief Executive Officer, Sam Sledge, Chief Financial Officer, David Schorlemer; and President and Chief Operating Officer, Adam Munoz. our for released of third we XXXX. morning, earnings the results quarter This any on forward-looking we projections note Reform comments Please that make the Securities expectations future Act. by or for today's events covered are statements Private Litigation our regarding call

in are results and with of many non-GAAP most Forward-looking advise from filings Also current to are measures differ subject included today's of uncertainties and discussed listeners earnings SEC. several These our factors certain expectations.We and risk control. materially our risks to earnings to in the can reference which call, our release. are financial during the directly risks statements GAAP to we uncertainties, these beyond measures will our comparable cause release Reconciliations measures. review actual our non-GAAP

remarks, prepared call turn to will we would question-and-answer hold the I that, session. our after Finally, With like over Sam. to a

Sam Sledge

on to cash we momentum, execute focused good Matt, strong We've been free robust ProPetro everyone. on as quarter and our solid squarely generating pleased Building earnings, is continue our another strategy. increasing Thanks, morning, flow on and a profitability to enhanced in coupled in value shareholder returns achieved glad CapEx cash I'm report our much in and flow. strong activity towards free the that quarter, with improved we distribution. continuing that spend, third building to and decrease resulted report

to assets. by factors.First is primary next-generation as our X expect from we supported will transition legacy trends Importantly, equipment continue these ongoing

additional $X ProPetro. and emissions the assets total and we technologies of our years, billion to more we X past significant nearly lower services we year transitioning as end to hydraulic the made equipment, reach by investment bring the to Over state-of-the-art progress our efficient and have fracturing expect

results first X high the realizing our have next-generation fleet as offering. electric behind the months We've first quarter, poised the in force demand efficiencies us, and fleet fuel third electric dual our Tier fantastic with fleet transformation satisfaction. these the we has part forward.In for the going we strong And X customer and fully Force We of our are that With of strong. X now field delivery took deployed our remain investments seen and fleet services benefits fleets X DGB in begin operating. been to largely electric our already

We second expect and to clear supporting expected deploy second following X month delivery fleets testament the Silvertip area over begin our that's electric this the half differentiated is our to that is to deployed fleet and take be of garners.The a demand with results force to equipment This the XXXX. wireline delivered first electric in business. next the our

flow helps and our letter to a we executed with of cash know, transactions Silvertip services first We're that to free evaluate part cementing you of our that be XXXX, a creation earnings wireline this strategic us to it and note, recently for the accelerate value to power acquisition of entry pursue continue a our On allocation. and expand small bolt-on As through balanced success of a approach same also our business. and nonbinding into continues tailwind November in for our capital intent acquisition strong thrilled acquisition, made we've leverage. as we'll of

add additional expect excited that segment. year-end close are this We before to and operating transaction to in scale

area our to Another shareholders. allocation create which of strategy share aligned for repurchase philosophy is value core element our our of the with program, focus capital is

$XXX to program execute continue our that authorized We on million May. last Board the

be quarter. and substantial high able our team. moment, detail to XX.X in of opportunity were effective on and the and quarter what XX.X our industry-leading significant that the day still remain return I far we level the in North service performance, fleets the value compared industrialization strong fleets expect.I'd equipment, our the earnings will every provide we due to to Despite supported Our demonstrate gas early in and We prevents company's move in to to in opportunities. operational we we fleet, utilization financial American cover future unique, XXXX a of execute. onshore and ability utilization current which confident address thus fewer on the the service high This North recent dedication I've running over cash-on-cash an to approach believe investment strategy give a effectively will now and several the work to we results a believe come side headwinds, program full believe the more stock in previously, highly remain desirable that is more discrepancy and this testament on specifics hard as is of field levels. sub-economic our in lined results. only our are of dedicated we value disciplined the it soon.As equity ProPetro's years. the fleet to are cycle that the previous at strongly of next on repurchase are strategy quarter David industry. cycle the running to will longer-term a Despite financial This customers mentioned bullish sustainable potential avoid third oil We fleets between strong our utilized by our to achieve running We up like on performance, of our and and return. a fleets fleet American during have committed of stages

budget the our who be our budget quarter more are a important company's believe to on long-term in focus normal such exhaustion.It advance more will to is providers our comment like and ability that I guidance note our challenged moment, correlated we to that business. would to we encourage our seasonality, our to fourth the this is expect increased to continue holidays service by year as in provide we exhaustion value ourselves customers. in efficiencies and to ahead, potential of strategy confident our but shareholders talk to about Looking David

decline. a with the to We are customers mitigate proactively working but our impact, anticipate modest

approach of oil believe coming of will note, an the half more to normalization the prices the no-growth value result XXXX. and over like providers a online and us we of the some a outstanding right pertains in broader for throughout think that next-generation first We the strategy advantaged be reinforce of value in year for believe appetite back outside in a have market are and the XXXX the volatility and offer we first second capital is industry deployment is capacity to in of a of the the it in continue we equipment expansion and improvement sophisticated the rigs the where transactions to of as is from operational low.However, disciplined our the environment service slow have space ProPetro. service upstream half recent density chain all customers On hydrocarbon quality, benefits E&P the half in XXXX, right place spot strategy the and the Moreover, As for our E&P portfolio shareholders. creating terrific Permian, confident we to this we ProPetro, our Permian which insulate market. the customer

risk the to regard at goal most lowest the Our services this our consolidators. to value-enhancing deliver E&P-based is in

of our service line is that and expansion conversion illustration fleet value-enhancing an Silvertip strategy. Our with

its success to maintaining while company in also that market for further accelerate Lastly, generation goal strong value-accretive will remain as the the long-term company balance on be returns. one a conditions free our M&A shareholder through of positioning will cash well to is allowing top to This enable sheet. opportunistic priorities resilient achieve transactions flow ProPetro as

results. to David? Now discuss our third quarter over I'll turn financial to David the call

David Schorlemer

everyone. morning, good and Sam, Thanks,

in quarter, our like Just great to last our we initiatives. news and strategic regarding discuss performance have today progress some financial

The income. fifth quarter ProPetro's represented quarter of consecutive third net

quarter also million, in which strong earnings our cash flow and million we achieved last quarter. of going Adjusted compared to $X is million negative $XX $XX less quarter terms in We free incurred believe breakout to a as release sustainable forward. generation noted CapEx EBITDA our of be this

the of million also $XX of repurchases. retired shareholder quarter X.X and cash So flow commitment third expected.As the the to in quarter returns, our million progressing approximately during we shares is we as part for cadence had for significance

share longevity that have this the and of million reconfiguration share of of ProPetro. are dramatic of the pleased top $XX during increased through On our investors down created price ABL we XX% proposition has value are approximately quarter. repurchase the by the of clear our that the paid cycle beginning the We appreciate the program. It's repurchases, inception also since to we

million. on strong recorded Notably, and $XX Moving we in to income financial profitability $XXX cementing these $XXX The adjusted our company note, our generated our results. third quarter. fracturing net million generated quarter lower record during of businesses. million hydraulic and wireline EBITDA Of business activity revenues despite results and the revenue, of of

XX frac of asset utilization XX and fleets. quarter fourth fleets. to earlier, our utilization headwinds, mentioned of with fleet Sam exceeded fourth our fleet our As deployment fleets XX guidance XX.X XXXX frac to quarter Consistent effective strategy guidance for the our is disciplined XX

Moving Further, capital XXXX, normalize. million be full details we reduced expect the down in $XX in we our XXXX. our on year incurred slightly which reported to third $XXX above We to CapEx expect capital $XXX CapEx million further begun to the more of spending believe incurred structure. and we for from in has of million, quarter, to step

liquidity facility our of of Our ABL million, of balance borrowings were the was to and total strategy.As end, sheet execution and strong million. $XXX million the cash quarter with remains $XX our liquidity credit total position support $XX under

and With enabling stronger conversion decline repurchase return allocations beginning spend, a mentioned business generating expect where for into the liquidity ratios. capital to greater more as M&A, flow is continued program This share acquisition our to XX% drive Silvertip to thereby subsequent to Sam in our and performance strategy durable EBITDA cash we to improve continue Including our capital investments free moment. our XXXX, in returns.Returning to are strategy. before,

an of X% million share million aggressive of outstanding Since have addition repurchasing been of remains It's strong. opportunistically approximately our we success. program note approach retired position X.X to the huge approximately May share and which has equates shares inception nearly shareholders. in program, in have the to We returning XXXX, that repurchase of a $XX shares, to taken our liquidity repurchases, it important shares, to as the of to inception the

at enhanced opportunity deployment fleets business and in enabled its fleets. lease This and opportunistic disciplined market. we We our agreement M&A agreement the us long the to what have remain This as believe for long-term discount to strong trades to to and ability committed ProPetro remains the ProPetro and reduces electric-powered friendly are relative remain capital-light capital company's to we over the enabling program.Additionally, share that simultaneously install develop paid we to term. be last few invested profile down the frac and balance market. I believe for investment have is improves lease We the of committed excellent assets noted the in to capital our and have frac an a debt, that through while emissions in value, intrinsic our sheet repurchase strategy Force cost demand our requirements we has the our our high accelerate transformation in operating quarters,

strengthen lease will no are growth our and we and in touched cash Our a capital architecture our and environment industrializing do in our Sam we ProPetro's M&A agreement with disciplined are strategic spending. as capital-light customers to believe capabilities performance.Lastly, long-term proven flow accelerate on, that free low

some the ProPetro and Our now market to closing call the through are turn shareholders we the deliver back customers our of strategy designed for I'll current continue for phases market remarks. will and is all cycle. to environment, for Sam confident

Sam Sledge

David. Thanks,

to over why Before ever like value it long-term as and we proposition we future. I'd summarize our our turn as and strategy confident in remain Q&A, ProPetro's to

ProPetro other forward. by We of the first end offer, half are bifurcation the our our we to we the believe deployment that at is will this having our expense best in fleet We in It expect strong our supports of not is for commercial X/X unmatched pricing we strong our note and proud with decisions mind concessions. set pricing that and beyond. the moving positions important equipped fleet class.Our XXXX legacy as commitment demand as performance asset sacrifice model and our well of believe both for of and and new XXXX, sophisticated capabilities architecture assets next-generation including of we continued accordingly, services

force cap combine Given to technologies Perpetua for of to working there believe with our great recent position ahead ideal provider our deployment large for an consolidation, to with summarize, be the and a we of the our cash integration our service while flow, are offering, enhance to partnerships our opportunities industrializing if large fleet returning E&P the choice build for value service continue We we Permian priorities, consolidators. industrial producers.To like is we ProPetro unlock ProPetro free are are will capital-light value-accretive to key priorities our continue transactions momentum shareholders. in continuing our optimizing way enhanced execute and and its business on to to operations believe opportunistic shareholders. capital transition on generate to and pursuing electric

Sustainability published Energy our also We our People embracing recently tells sustainable in Report.This to Pro our and way approach inaugural Pro first operating of Pro report Pro the by perspectives. Energy, story People a ProPetro,

be the to best will friendly in at continue the efforts team that, success we Operator? world desire now confidently the I our propetroservices.com.I'd our by entire in the we their hard of to to dedication customers, our to and like important and human download end. would strides of the this ProPetro of our can our for ProPetro and the and execute that taking open flourishing environment from hydrocarbons way role website part improving this strategy integral to to quarter enabling we're and our the everyone play Permian to efficiently through move team outstanding for encourage close It's strategy. energy for safe overall forward questions. system.With and thanking report customers produce we Our the to that at the work due performance forward our safely, line-up with ProPetro requires Basin management environmentally their benefit help the

Operator

instructions] the session. OPERATORWe comes Podhaizer question-and-answer will Barclays. from our now first Derek question from begin [Operator And

Derek Podhaizer

exhaustion led efficiencies. the more can Maybe Is due the driver? you that? What's seasonality just expand you to I some on to wanted around discussed budget by main the get guys first it detail logistics, pickup exhaustion of what's substantial we're colour on more completion time type? efficiencies. budget efficiencies because design, equipment the hearing to some due is Just driving that in really that this

Sam Sledge

now has trying I years that's play been that something to a at we're be been just few think about. this for honest

feet of envelope day. the and like, a sounds how like other going it push I again.â€ a think the feel I quarter to here â€œJust every ourselves large we're to happen. That continue continues to a and to pumping on when around day, we many broken many record, As we're how competitors ours hours up, get I say, and plateau we're completing right we're

you a that extrapolate footage the finish just get out annual customers' up, our and So plans if you through through to they that maybe and want wells little on an basis, everybody definitely than of And more quicker see little bit drawback due quarter in fourth expected. a exactly we'll but bit the you affects that bit is a that. differently, activity to

Derek Podhaizer

as faster some I logistics site mean, was there getting well anything know to? specific as equipment the maybe just point just specifically could new of like I you or far your to like

Sam Sledge

It's a everything. electric offering, Also a of offering ground dual probably hitting next-generation a really. really but our way, everything our good our in of bit running success the fuel really on of bit the little little really

Derek Podhaizer

you unfold? over do that the gives that to with returning What And confidence then statement? to just your just Is work your far expect you next half maybe about of conversations this that to next having year, part the your how first year comments improving idle expect your as of the a specific as maybe just in in back and it preliminary commodity fleet backdrop? you return outlook of around first count? fleet customers year? half Are you Do

Sam Sledge

Yes.

to activity our That's, they're outlook the and think customers. equation us, that their in moving our and with plans customers us is the are conversations in involving I leading most direct way powerful forward. planning variable the what always is how is

to And is we the kind positively, demand that that's the number bolsters is technologies, of our high-quality customers fleet one. viewing we I the I How that we the first our overall which be, third is year-over-year, of what electric there our and other part up of as on thing service how that of think in next deploy fleets, that look, think say very mind I slightly year-over-year earlier front keeping first that's And us or with line year. I think us be a additive And of I you at next-generation and of customers. in front provide outlook commodity quarter, just two fleet be I'd think come we'll So mentioned. much our fairly to could we weâ€™ll count in would are parked that back the given quarter, average think replacement? see the The expect most think with of Number 'XX. we of in are that opportunities remainder deliberating the force is much market? I

David Schorlemer

add a that. the also like but the a the exactly talk turn things market, for have is is the consequence seeing, in of to about you're What service level ProPetro This when to companies amplitude particularly that. Just movements same market offering amplitude industrializing. lower of We around. not bifurcated the of that

I we and overall, durable that repeatable means think So that have more results.

long I investorsâ€™ the of we that's durability think And long-term in way. And and have easier where what to that in expectations term. it earnings. business to you we're demand. that I a that's more attractive think manage It's is business like repeatability for building

Operator

our question Piper from Luke next Lemoine comes And from Sandler.

Luke Lemoine

Fleet Sam, gave upcoming force cadence been how the contracting But provide provide it's FCX, fleet a some you X going? for maybe And you on deployments. operations could and us X? then update maybe One and on commentary Force the

Sam Sledge

that is we've our better than very has a we're electric fleet started location And customer pad expected not X work The fleet, number more us deployment a and for right the fuel been initial and customers. has Fleet half probably now. full us electric that for and half on more data the Yes. out of since close couple added very as electric months each dual and full the at think basically running satisfied. point I gone additional for a kind of now. hybrid to We main fleet, if is equipment,

that in imminent. So have hit going X. but work two. Is basically And Is We're contract we where two should to under to and the and work weeks. for I line ground on of So safe going X, with today, that for? the is basically very X of terms move say for deliberate really strong and that's we're to tangible ground to how who? into to positive go very X It's where how contract The in Number here and being announce X under move the feel forward it's the don't one is on be to about few X really anything but next those. start hitting think sit in number about us we it we the yard I go it going to demand terms X really, for good picky a forward commercially we with contract? strong. sit we X, here,

Luke Lemoine

XQ. variances for for could move? about with fairly see thanks David, the you coming delta should in you talk XQ? But the the count fleet from EBITDA fleet for of unchanged And Or per fleet be count any most this

David Schorlemer

think some seeing end contraction up in fleet performance. Well, that I seasonality will the

we than third in guidance, quarter. our be the mentioned robust As activity saw we less in do expect we what to

So I some should there. expect contraction think you

will of operating about to services. in have that, we we show up our In lease addition lease. cost how this costs talked Those

keep is charge that we great the return modelling. on think in in impair we your in are which little capital, to So fleet the but a overall a something will capital mind per incorporating on performance, EBITDA bit there, but

Operator

our next from question Jayaram from And JPMorgan comes Arun Chase.

Arun Jayaram

for such backyard, Concho, with you've And about do how the approach this What you Sam, as hands of of team, your we've effectively consolidation marketing new Pioneer talk adapt of amount in your in a adjusted think and seen market this tremendous pump long kind Parsley companies resource of majors. term? base the to to and means the Sam reality.

Sam Sledge

Yes. Great question.

similar year been we if There's almost quite surprised in of a a at right. E&P exactly consolidation the the in pace. be this year, and it bit You're next continues space wouldn't

of the while have if industry oilfield scary that like at confidently been oilfield is how you look I most of talking grown in historically, having consolidation we through you us a now. think might ProPetro about positioned keep kind welcome and that, if been it's within we of Big I here service kind for some and to safe service uncertainty. back say, up can space for But industrialization and that it. I created look say it think the that the

doing operators I exactly team we to we our the and service mindset. the to that their to the knowing that bring the of mergers more And tilt think party does how that and everyone really us with the acquisitions, of long-term provide positions we on technology to are quality kind model. with us and with architecture it these larger commercial these a of our plays making planning that bring

see is who positioned it how changing how So that But it's -- well out. within about think always interesting I feel overall, kind and it to we're really we plays of

Arun Jayaram

a Sam, time. frac hours just the could monthly per that on And over think deliver maybe about a follow-up, to of us love or I if has basis. magnitude quantify was been fleet pumped about to maybe able you hear ProPetro I'd efficiency wondering help gains

to us to demand. about of those Just efficiency allow on the future gains impact think maybe

you focused the with you and this paid and model. a we strong no deliver a pricing And very value to maybe sophisticated that that growth operating can do environment efficiency characterize you gains. of agree on the is you where How gains delivered model for kind mentioned question advantage of efficiency this efficiency with if take that employ pricing E&P gains low kind of, get E&P. to to as adapt You is, you

Sam Sledge

look regular every at hours and a from and things deploy pricing portfolio on assets of that XX how over that I the isn't the fleet to basis, it's you, It's XXXX returns. It's of part this hours can is why Arun. peak, last pumping about tell we a say, hours great in interested look we probably that But a we as XX making some have Those of have day. some of you back we know a think of if our operational it that important. fleet had of really to continually that a fleet right doing what a it's fun on conversation And time. main bar single find them. That's with look competitors But we're very day over That's efficiencies, was And the how I and was a like kind of celebrated.Now hard And at and question. not kind at we days question prior were have gets look look, then. fleet XX you, talking pumping, the a look, we that general I now. you into about amount mark metrics, work kind are kind standpoint. think competitive to we drivers in highly might water at return of I similarly. pump with pricing look for myself at how our when daily we multiple uncommon a

a So you day. in point get where a to XX only there's hours

engineering us well probably I doing simul-frac team as and doing, part a just the much broader upstream So all and like what bigger, transition things the efficiencies of that pad, a it E&P is is ways unbelievable. is is but longer of what the don't at maybe see.But the know, really our we'll part and consolidation, surface can site as different we're the frontier of complete next you a pertains to

a execute our earlier was imagine terms that kind pumping that a the of now question day efficiencies, with So have creating if budget acreage. exhaustion plan XX customer XX way that on in a how you my because in average is answer day have year earlier unforeseen they hours you that might pumping in in for plays to about their been hours can of fleet a

while of we're try make and of to envelope So lots participating interesting that in an arena, continuing which push and on at the so. and heavily from for sure stuff time, efficiency paid doing the that same we're in going all standpoint

David Schorlemer

one about we're that the doing looking on this principles we XX, mean looking scrutiny to we're you I this at a at, comprehensive continue us internally that go help the efficiencies, a our of our plant, those approach which XX, interject Part we continuing point. applying and level mobile kind first way the today plants, of like of areas, we certainly Just at can things our that think think at and on of we're fleets application efficiencies one lean is something equipment other our forward. in enhance of to to manufacturing and to that's we'll the of stool to XX you're optimizing when that. the and have like going it's is various it's improve how is techniques work activities, look but and the electric that leg bringing strategy industrialized business, our for,

Operator

Our from next question comes from Scott Gruber Citi.

Scott Gruber

fleet will I just want expense impact to lease profitability. understand a bit the better how per

fuel Or just $XX million posted subtract we annualized the Should that on that $XX these savings can year. that sure they point create lease you is fleets customers. from given the be million per I fleet for the to I'm from. higher EBITDA about the not per subtract what expense starting think $XX XQ? the million in will $XX in

David Schorlemer

entire of transition we're cost of we're acceleration looking we're facilitate in really it's it I at fleet. think It's fleet when it, for across a to that looking asset the our the business. the utilizing at capital deployment, this the something particular but

overall, in So you in per company, of will for believe EBITDA in But at in be margin fleet expense the the well to we our we'll XXs year. services. of got million that company. is to to $XX going impair in still will total $XX right be terms lease the but be That of million into per cost upper terms number the mid-XXs

Scott Gruber

think do you maintenance you should year. it's anticipate following X base CapEx about investment, next upgrades that any the next per the How Tier more mentioned And should in And whether big we down fleet? investment e-frac additional be year then this or year? in DGB

David Schorlemer

year. We cadence we that going as million. $XXX We're be do process. we'll CapEx XXXX similar a over this believe in budget capital our to That working number year. see mentioned budgeting in in incurred decline next a that little still So on in million our XXXX is was $XXX

per now, to $X maintenance to CapEx million right we're think fleet. $X I guiding million

from we perspective CapEx excluding impacting as incurred CapEx to $XXX I going equipment approximately look sense decrease equipment XX%. as cadence.And just the we've will that OpEx give continue to that that lease electric We the over think in lower to expense. that in begin to we well million the the as see recent the XX% But blend down cadence, quarters, as quarter. when XX%, of in been that's several and you like you or number our in industrialized an estimates, a last $XXX number to our fourth go got the over million at number even this

think to I over we've going $X we investment, slide numbers show a X out years. we close forward. really our spend where deck the play billion in So last our about, IR talked our our CapEx reduced beginning invested That is to and in

Scott Gruber

years. de the just you minimis I to in OpEx per about side? number fleet? a have correctly, it's imagine on do CapEx you pretty heard XX% have, So lower first if force couple of I XX% fleets the And the

David Schorlemer

Yes.

you as more out with we your taking Just overall ongoing It's engine it internal information. maintenance of an build box pretty that to the and drive variable think touch more a and low We'll information there. significant replacing spend that capital a garner combustion no internal perspective and required. picture of some change of and out a transformer in we has it from give fleet frequency

with I we'll a think operations have the call, full quarter our on next fleet. of

you guidance give some So we more going forward then. can

Operator

our Energy And from comes instructions]. John Daniel from Partners. question Daniel [Operator next

John Daniel

I guess you. a it couple the at transition What's X, dual X, fleet to soon the or X just for those? of on for for electric? mix Tier first call in DGB the go X X electric questions Tier fuel, equipment plan it quarters, X Is Tier it keep whatever least Just is other.

Sam Sledge

plan. is and the wait think I see

look, very today. think active when profitable preserve to I highly equipment, that optionality the and in and market with it's functioning

longer to bit like around equipment market for the linger assets. And fleets. diesel our fleets our the market weaker, things little of some all if of then diesel more strong, of Speaking be then replacement electric look can if that legacy you might is remains a

as sit that to trying I just we're think we preserve So today, here optionality.

or allocate equipment. diesel things capital less to capital electric to priorities allocation like Our only more capital and

John Daniel

theme, chain say the lead one parts was equipment there, components comments order of the OEMs times X gone the I'm willing of the to necessary side? from component their the the for earnings with to just given if be you Fleet supply you've electric curious, call on on Keeping made of electric electric fleets. one would for headaches

Sam Sledge

But additional. anything close for relationship orders specific the got a any side. placed collaborative supplier our we've not very on with electric We've

e-fleets if we be these more on demand some continues, would on really So if continue in a successfully good contractual moving we're opportunities, it deploy execute if thing assets next of these year. our to and opinion,

John Daniel

given your at make When component the balance sheet it, the more in the than some you look there's so and is market the where were building that of the sense ago. now, engines, parts next transmissions, well, stuck it key frankly, year, parts belief inflects down cetera, year given road? now, et those a does a And just we component don't right get -- of queue you inventory availability to proactively higher

Sam Sledge

motivated to think don't that feel we I yet. do No,

I of think like to we our we with suppliers. of what many priority is feel that have due part

all cementing into offering. into equation bones the balancing and business. We're my things as --to me of be future. our yet, all call and have flexibility mean LOI to the also really new is I our there. building talk We're our announcing back meanwhile, of prior think to to proud to answer, bringing equipment a So at those I debt-free. on And been our the optionality kind and We're is something into doing think stock. We've that's be allocation we're small once, broader look, the of able I those just our really be -- well. on chance producing buying the of but about keep makes an strategy I this kind don't a mean, of all we'll basically value capital it going

we're your those shareholder and one I that's returns balancing our strategy all of but as of allocation equipment part questions things, equipment are transition. more So M&A, capital related, X kind know of of kind just

John Daniel

can elaborate you If if LOI transaction? cementing on just you on anything, on business. What, the the that

Sam Sledge

to the and business in cementing team equip we just scale We really in tools just share our to Yes. say. well. compete that because much business runs We're to them process, right the way. we we're not and performing given has it can about to been point a big this there's wanted that to where We're working that more what and have we are excited with continue to continue

Operator

a Stephen have We from Gengaro now Stifel. from question

Stephen Gengaro

a you've So asked lot here.

things X for me. just So

you Silvertip that and services it those compare contrast versus bit little assets about the just can on talk the efficiencies has utilizing not? that are brought those acquisition, are a First, and maybe

Sam Sledge

straightforward. pretty It's Yes.

and few operational business. transaction ProPetro because continued that's as seen of kind integration. more we've when do to we've And to reason there crews good units push think something their with Silvertip are market why being with on. a beneficiaries was positive very inroads even is frac core it we been consistently Silvertip mutual that -- more our but benefits.And units overlap was are why that's really a have them deal a so, made I bit as execute were them, But expected not wireline to to some of force Silvertip before us with that of the each because efficiency trying A so frac reason integrating the consistent we the other. we're to their it opportunity on we doing performance. fleets, big stellar wireline We've and both of beneficiary to performance having customer evident on with

our there. our come to to coming think not sector, part more more We integration of strategy, as So less. is

online great the with proud in us have to leg we're Silvertip so And help our to a business stool of that.

Stephen Gengaro

And half stands you're a suggesting and then And a and seeing recovery? of curious your of where just of the just what about sort on and year it you're mix. next you that pricing you the think just bit you're what as assuming of kind talk outlook first side, clearly, kind pricing about can little sounds in like,

Sam Sledge

It flattish. flat for into working next But seems feels We're most customers things still through few the it now, year. pretty kind with Stephen. right our planning of part, a

Operator

our to final over conference comments, I session. please. would like back question-and-answer any concludes to the this for And Sam turn Sledge,

Sam Sledge

enjoyed today. look have a you great Thank you. business, forward we joining and day. Thanks, to for talking on soon. updating We everybody, our with again Everybody, you

Operator

concludes for Thank this And attending you the today's presentation. conference.

a You may day. now disconnect. Have good

ProPetro Holding (PUMP) 1 Nov 232023 Q3 Earnings call transcript