Liberty Energy (LBRT) 28 Oct 212021 Q3 Earnings call transcript

Company Profile

Participants

Chris Wright	Chief Executive Officer
Michael Stock	Chief Financial Officer
Ron Gusek	President
Scott Gruber	Citigroup
Stephen Gengaro	Stifel
Taylor Zurcher	Tudor Pickering and Holt
Connor Lynagh	Morgan Stanley
Chase Mulvehill	Bank of America
Atidrip Modak	Goldman Sachs
Ian MacPherson	Piper Sandler
Roger Read	Wells Fargo
Keith Mackey	RBC Capital Markets
John Daniel	Daniel Energy Partners
Arun Jayaram	JPMorgan

Call transcript

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Operator

Good morning and welcome to the Liberty Oilfield Services Third Quarter 2021 Earnings Conference Call. [Operator Instructions] Please note this event is being recorded.

Some of our comments today may include forward-looking statements reflecting the company’s view about future prospects, revenues, expenses or profits. These matters involve risks and uncertainties that could cause actual results to differ materially from our forward-looking statements. These statements reflect the company’s beliefs based on current conditions that are subject to certain risks and uncertainties that are detailed on the company’s earnings release and other public filings.

include and also measures. today comments non-GAAP operational financial Our may and EBITDA, on substitute These to and including other EBITDA measures for be pre-tax of similar measures a non-GAAP measures, not adjusted return companies. comparable are capital GAAP not employed of call EBITDA and net which the earnings are calculation presented and adjusted as employed, is to on its release, return in pre-tax capital income website. available discussed reconciliation EBITDA the A of on on this company’s the conference turn to I Liberty’s Wright. would to now Chris over CEO, like ahead. go Please

Chris Wright

Good discuss morning, operational results. and us everyone thank you our and joining for to XXXX third quarter financial

Our third service results solid and pricing. revenues in a growth momentum, quarter sequential increase XX% activity show both higher on with

the chains Our on the this team navigating labor and acquisition delivered while impact and global disruptive pandemic growth, supply inflation integration availability. of cost activities,

was Third million quarter $XX the second $XXX second the million $XX quarter. Adjusted to million million in compared third EBITDA compared to in the was quarter quarter. revenue in $XXX

million to the normal maintenance and passed than costs $XX and that that costs quarter quarter chain third faster cost through the to the higher higher as period. integration were integration maintenance costs increases, were today million benefited due and Increased was chain faces to period. more margins and costs rapidly supply world driver COVID-related Liberty hurt The than the in serious price approximately supply prices personnel, the offset were increases not not estimate constraints $X We increasing transportation logistic the issues customers immune from service disruptions. during in shortages, but

now to their is all into but integration in service even more the operators the and tightness recognize and and these versus critical impact the There on years. addressing significant partnerships of expertise believe COVID to logistics providers important the widespread We fourth best-in-class the will successful this in has is and issues market know address are on amongst service only fleet. coming expand Liberty other of actively meaningful pandemic these the performance. to for operators side efficiency of the next-generation and are We to we that taken caused technical the quality challenges disruptions steps significant availability labor higher opportunities. recognition that interest is Michael the We in starting chain, not the margins. challenges. it’s are and right to electric to continuing moderate today scarce, high-quality come with drive in quarter market. out partners effects There supply Liberty’s is equipment the they has have place digiFrac limited, over be is Ron

over have is the and X positive. very technical customers and We successful overwhelmingly completed XX with response dives and trials deep factory field

multiyear to execution of excited trial are two We two first of partners. to announce the field the deploy in arrangements digiFrac fleet the with XXXX

to beat. We Liberty’s are emissions also these that is is combined operational negotiations that others. control leading innovation excellence a engineering hard and the the with The active exhibit, profile technical in fleets combination and with

announced partners, during concert midnight forefront deployments our in centered the worked strategy frac wireline pumping returns plug of came are to best perk Operational teams September, and midnight continuing that continuous hours we We choosing to quarter. multiyear achieve capital the incremental late time. deployment In and around the on and to strong Liberty efficiency deployed. frac strategic XX

coordination remarkable incredible time, XXXX is requires later, X of an and Liberty’s again, that feat, We ambitious of XX the efficiency. full and are excited giving X,XXX just minutes of effort non-productive a delivering with non-pumping operation did a zero pumping it goal time week

to bills in to hindering energy, the by shrinking oil lead Strong thousands storage seen oil, or macro, labor heating driving than worldwide deaths are expected supply Europe, with material chain those and the in falling evidenced of continued LNG prices running The natural United rising gas due permitting this and to partnership higher as China investment facilities Under In to have year continue oil by liquids infrastructure. in natural shortages, Kaiser-Francis and the winter and data continues impact Surveying surging energy food return due E&Ps. whether outpace hydrocarbon Global a is for the among to we services, less supply gas XXXX, despite of XXXX. momentum is grow, in constrained the or fertilizer up prices. infrastructure, activity be U.S. desire frac skyrocketing tracking gas bolstering fourth reality. and real-time oil surely of headlong on in and achieved afford transitioned predictive XX.X% the disruptions, economic to to and into analytics will gas production particularly India. crisis to private and demand unable the and the to and gradual of global supply scarcity, gas, into underinvestment oil to our capacity natural energy, Energy demand supplied global positive our export urgent team prices by XXXX. and Our demand costs uncertainty. focus Kingdom among and preventable gas this gas of driving due gas XX-year of shortage for The Downlink. see the in the away associated of X% quarter XX.X% both it remains many COVID-related

modern, high-performance with customers Our environmentally-friendly demand and strong operations partnerships. solutions

quality engineering We and highly a are ESG-friendly in solutions. top-tier innovation, advantaged service with position technology prowess,

chain, excited we wet been last technology into with our has expertise. efficiency a their Liberty. service of addition The handling and provider dynamic value, build supply to including to leading of fit to very and ESG team integrates our proppant cultural to our mile a is for friendly PropX latest environmentally and acquisition great technologies are we provider announce As and solutions. the delivery The delivery equipment PropX friendly PropX, a new improve PropX of long-time at continue proppant ways Liberty. look also software sand

the services industry. last Ron hand believe the to delivery delivery PropX to organization. off it total We cost will solutions discuss equipment bring to will the value our will mile of we the continue our reduce whole to impact I customers. and will to environmental to lower PropX bring and Together, technology, significant these Liberty

Ron Gusek

you, Thank Chris.

locations. to is leading by continuing provider Founded equipment approximately whole, as the frac The capacity containerized and are also This customer has the locations. both the efficiency environmental rates, and trucks excited well-site whether industry XXXX of solution optimize leading logistics turnarounds, on Kimberlite logistics and for PropX or both for all In dry a the XX% we a last logistics utilizes the and America. of trucks frac while delivery the custom-designed found are delivery to We for a across material, to opportunity expressed PropX can delivery offer sand software PropX. reduced long-time they handling strengthen mile preference on equipment Liberty a trucking proppant Liberty’s the recent efficiency, proppant sand most in system solutions, required to flexibility. including North sand to be XX% systems solutions emissions and on-road maximizes equipment, from as not. load of survey, wet handling sand, are these been handling of efficiency delivers surveyed time. performing benefits technology, has services Today, widest their to idle led faster due lower lower containerized a of of and fewer market. in containerized cross-section E&Ps

equipment of reductions It transport the washed sand, delivery and handling wet equipment emitting date and the for of nascent and to OneStim In emissions. the PropX terms sand eliminating and in to lowering a an sand in highest with innovation provider mine. process, sands fleets allows as of costs enabler in to requires continue operators. next delivery across at fact, impact. we part the become has cleaner that PropX the drying in in reducing delivery adopter rapid North business. PropX total reducing processing moving to a box of systems ESG-friendly transportation efficient technology mile sand and for last as of in wet and We and cost is premier is process and a of costs and the industry. this ongoing the America emissions built The wet of the ingenuity are the dried as PropX’s force sand handling of wet prior expertise solution the handling sand this be Through the sand proppant integration step Wet to the early usage and transportation dried the of wet industry. legacy is Ovintiv, the key in OneStim, facilitator to business process sand allows Customarily, environmental technology. of sand their disruptive is work more the view

opportunities look ahead, value scale, chain we localizing across with smaller providing supply we cost the wet mines chain. real, system, the using As sustainable PropX sand many see the savings for

delivery available PropConnect, operators platform to management for the or service development site software-as-a-service. to the and plan efficiency logistics real-time a It customers well raises providers The PropConnect efforts software, existing is as are and system operations. other and latest with at chain, have automation to thrilled to streamline site from Liberty, Internally drives automation to integrate source PropConnect and logistics sale software also billing. space. we We for transportation visibility across Oracle which to better supply dispatch and well our hosted and

discuss integrated the significant efficiency. clear week. of enhances provider early us this to the strongest Liberty required next-generation and improvement in to chain, as largest that, The of software trial building to the integrated a automated utilization opportunity our I’d dangerous direct keep partner long-term. believe and of of and of value driver to last our we the supplied Liberty’s from improve in benefit initiative to supply levels and technologies the expect is invoice reduction our enabled Safety independent space offerings a our to completion providers that and range new Permian, total bring is payment like platform optimization. They positions XX% in operational provides will cost of PAT in owner-operator Liberty delivery software focus logistics number of of It proppant with We inside end-to-end mile geo platform transaction will sight an The and a representative By will our trucking drive oversight financial truckers to firms. with optimization flow. last to proppant, our also broader truck most enable the With we delivery, area. driving of workflow, times believe speeding this over relentless the line services modernize and in quick efficiency equipment, Liberty’s mile environmental the a activity An delivery mile last through paramount on from We customers. with integration to software to continued will into pay ability is we the Michael the call reduce Stock, to impact our results. CFO, the delivered integrating lower over the proppant latest cost turn undertake. improvement

Michael Stock

Thank everyone. Good Ron. morning, you,

quarter we a results result, delivered We the work the but to supply chain utilization ongoing despite still third showcased Our hard by service challenges line solid on to exist, integration and effect future aggressively team. them Liberty disruptions improving results. activities. and moderate prices, The managing efficiency, overall top global are profitability the

that acquisition excited are PropX We accretive will areas. complement the these by

integration Liberty in greater sequential in XX% results and as logistics increase pass-through our quarter, $XXX first supply achieved and a XXXX, XX% Top the is $XXX increased in second quarter activity, revenue million high-quality at from the reflecting the growth price and in whole look to challenges In the on combination service that impacting that flat line increased a the our our navigating approximately of was increased million chain year of detail. was sequentially of are third relatively acquisition. staff. despite OneStim industry Revenue issues U.S. Let’s prices. the

$X.XX impacted our TRA million. net was quarter. $XX third Our gain included in the other that a positively compared the remeasurement Fully on of was results Results transaction loss million. liability also tax in diluted by quarter second of Net the loss per to approximately $X net after costs million. included $X.XX and loss share $X.X

EBITDA compared adjusted million on and materialized costs a million by in all-time decline EBITDA transportation transportation of factors. $XX in impacted heavily second costs high adjusted did the pass-through as higher from we our Driver quarter as at was an shortages, and quarter. shortages other quarter. result the not country quickly materials. are during $XX Third is several million they The sand EBITDA driver industry of Logistics was dependent across the $XX approximately negatively to and

the were costs and streamline measures logistics, costs. personnel of that to The with including the integration pass-through and driven supply COVID-related predictive maintenance impact normal are due of network $X we the and fast chain due maintenance PropX to maintenance system cost higher the of to plans full software drivers Maintenance logistics with disruptions, efficiencies. – streamline transportation to legacy management purchase industry-wide with fast than for teams to supply and as mile. the rate transportation taking reducing labor constraints, value higher Liberty’s pay We Oracle pandemic of software the to quantity solution approximately rising reduce million the drive transition the fewer integration needed angle per of long-term PropConnect

last market X challenging this quarter, providing in Chris America. in we and team supports industries Liberty our that our the In been of quarter, crew Liberty’s is country efficiency, that class. X-off part whole discussed years. to the by the the start industry hopefully importantly, issues and from his field in all crews our North the to commitment turnover the mentioned turnover X-on, superior goal has prepared reduces transition Successfully our to over the schedule be promotes been company customers have of to across of is this remarks, week believe safest completions we most last announced users. driven a labor insulated As all service we historically

move the We rate for compensation. historical million are expense back administrative and $X.X turnover a Liberty million totaled that be financial future will quarters. towards levels General fruit and of and included stock-based seeing $XX

of facility second a total ABL in $XXX with $XXX was no in $XX $X increases we date We acquisition an revolving levels. maturity liquidity adjustment of the receivable of G&A balance in credit quarter, of quarter. bonuses our accounts related September maturity costs and the $X was million associated to the interest also million. larger There the $XX and third quarter receivables. million. to quarter quarterly post to compensation, of Income integrated $X.X of cash term [indiscernible] by credit fourth million, restoration discount. of and balance The second million a secured profitability amended and fees million X million reflecting current estimate and tax OneStim on for original expense and operational expense years XXXX facility increase and quarter October, a This issue salaries million net extended revised Higher reasonable increased was by to liquidity increase and Net a increased the non-cash from conjunction, to financing the total drawn $XXX payment $X.X driven results. the stock-based available support recorded [ph] $X.X $X.X second and million maturity Total other $XXX costs we new the loan October expense quarter In million the of was asset-based the [indiscernible]. professional totaling was to aggregate under due In September the for in tax Canadian compensation the increase in $X costs IT legal business date our Excluding million. deferred service the million and by The extends up run-rate third XXXX. substantial for with quarter. million is related XXXX totaled ended was totaled amendment facility. a facility at commitment

stock a The X.X shares on closing of PropX adjustments. valued $X.XX. aggregate cash XXXX of share XX-day of million average represents closing $XX.X in excited price million, subject million purchase to Liberty’s estimated price is are It purchase equivalent $XX.X $XX to consisting the announce X.Xx and approximately an approximately of common of million for at million We EBITDA. their the of based standalone $XX normal price acquisition

directly As will logistics logistics challenges the services, that face acquisition, of confront and equipment, that operational our is of will a integrated completion maintaining strategy facing were and integrate improve and our that Ron on today with operations [indiscernible]. of highly million value clear innovation, included a described, example logistics proppant further for to the digitization. efficient our through greater sheet future this a efficiency the Capital technology will we $XX to strong and million with software, Liberty that on deliver for clear shareholders $XX balance focus expenditures OneStim fleet quarter approximately

look the us see we for have up. we will in executing XXXX. Customer year is momentum up As created recovery we ahead, pricing speeding well this set

Logistics tough the addressed the continues to performed of continue these but are back. addressed. times Liberty to personnel will With amazed see what for and before being be unique can challenge, the the XXXX. have Q&A. to the team issues in they team tailwind we supply a back identified are has The excited turn will their of with challenges and and how and open be do Chris to We call that, I proud chain management at

Chris Wright

Thanks, Michael.

the While to customers Liberty the had challenges, to operator are also trajectory we thank team our business. our with questions. I for tireless of thank and Back suppliers take very I the now some everyone efforts. partnership. your to on their for pleased our their quarter want

Operator

Instructions] go ahead. We will First Citigroup. now begin [Operator with the question Scott comes Gruber question-and-answer session. from Please

Scott Gruber

good morning. Yes,

Chris Wright

Good morning, Scott.

Scott Gruber

the peers reset in much to we ahead? but as securing this confidence gains for you net how we are pushing What’s across and quarters. you something that Is the to So system, getting year have overall, just have your financials pricing the few about a now net appears quarters come it Chris, for pricing the in magnitude possible are next offsetting and you not see think through the inflation to head really pricing been in into of And potential your pricing. year? of MSAs for it kind the net wait new

Chris Wright

feel We about Scott. good actually bet, pretty You things.

Just ago. five remember how low quarters sunk things

we in as agreed to that. already last and moves the existing quarter, current road. larger the customers. were a move the net the improvements last We QX. have be pricing So, four starting the low, getting as is continuing see quarters, you And those should pricing up, very over bump Pricing in of pricing in quarter, low much been we definitely price of a our not drove most from movement results up but of double-digit will with but have

So, things we We faster, feel to pretty good but good about they moved a going. where going are things wish place. are

Scott Gruber

is less pricing? net it’s scarcity on more double-digits, that it if which about we the in the scarcity have discussed. color what Is next-gen also It’s as for front? hear. kind you is there of pricing? we kit, Can And by kind on experienced of of There of is just X than obviously, or just quality pushing the And of equipment raise Any legacy magnitude, crew for means crew but for what’s driving pricing? preference phenomenon you a just parse low bit securing value what the scarcity, quality an more of alone good next-gen a is to of that crews net there out past kind still digging of for emission is kind what’s a more of just potential Michael And have scarcity but driving kind the kind should that overall, kind a pricing. little in cycles scarcity? driven us sidelines. lot a mean out seen a of crew the today. the talked And does active bit of of of on it quality crews Tier today, equipment And on little

Chris Wright

oil. in of they lower Yes, versus fleets They right, Scott, they yes, those desire. forces, among lower fleets. are in are you that operators, made gas separate a emission emission is and it have mostly larger on things. run And Remember, very public – both there strong are you the

as also have in on running cost running diesel. efficiency saving in there So they natural an gas opposed or – to a on

the fuel driving driving a differential the dual And down the of So to Tier that is burning that line. X, from next-generation mean X between I say and inflation. is X Tier to pricing I fuel, top Tier Tier that’s stack gas diesel Tier really and now digiFrac. fleets and X X, dual X continuum maybe fully there would Tier at

pricing But whole Because sort the a by also is there that. labor tight, just there driven then makes of crews. tailwind but challenges of So market is tighter is a there it today. a quality market differential macro few meaningfully of between incremental quality the yes, you’re not And also too that now tighten months take crew many a last does over of market fleets sort differential are to that of deployed the the the getting.

get want quality standing that’s rigs ago. difficult just that X meaningfully months was you’re than fleet If you up to two today, and more a frac

Scott Gruber

Yes. improvement across for And XX% that foresee, board Liberty? of expect average on the you the kind that’s that you

Chris Wright

Yes.

board. we you’ll but think all I across so see jump environmentally valuable price growing a have next but of friendly net fleet again, There yes, of a probably demand. versus double pricing it’s But the a far, get economics for getting in stronger be the I floating Tier you at digit. And of the more year. start meaningful the is that rises all price there more upwards. QX meaningfully in generic in bifurcation to are is are Look, next-generation them of very then X, in rises,

Scott Gruber

color. you. to Great Appreciate the hear. Thank

Chris Wright

Thanks.

Operator

with ahead. Gengaro go next Please, Stifel. Stephen question comes Our from

Stephen Gengaro

of digits, sort net. that half Thanks. starting of right, Two EBITDA in you think think Good you improvement, double just of mean, about questioning, level a One, Is year about theoretically you translates $X ‘XX? rise second point me. million, prior that as from line its that next reasonable morning, sort net fall I of of everybody. versus the fleet, on million $X line things per follow-up to when because pricing directly

Chris Wright

phase in changes. X, your January – are a Most phase fleet agreed, immediately won’t math So are X, see lot is we increase it’s EBITDA not reasonable. going January per to that tiers to of rough everything in Absolutely. that some think year-over-year? of the it going will on be I an in a be But over are year. these But much

Stephen Gengaro

Great.

thank for is accretive it’s just you And folds of of it market second given and just we in business questions. clarification. outside is it’s really how the share to and and operations. the talked if PropX in, to you you parties. at two think assume going work be just But one about how sort how efficiency working And I Okay, of just around my third One you’re then worried about about, curious for think the that cannibalization Liberty. the all of about meshed

Chris Wright

Honestly, a we’re lot business, of is the other for sourcing people E&P. worried of A with not that in direct proppant business about PropX’s lot that.

Some certainly business of is – of I a don’t if with of suspect needle And continues I it think on. but it it’s that much competitors ours, doesn’t mover.

have Liberty’s excited safety third-party business So is make continue strong cost efficiencies, ultimately, development integrating Also, and smoothness, a a efforts technology reasons. our business as PropX well. to that will yes, suspect grow. we’re deliver directly we will to And about it’s One for two better. we

Ron Gusek

will And for as the Steve, think key forward. move the handling mean of technology differentiator is I here is that’s key bit. wet a little business, future I That just we right? I enablers add the a sand one

doesn’t down working be everywhere, ESG board. that year. areas – the it but out industry of the all these with our really working the the great, of be to be it frac another it footprint small is that off on been safer. going trucks takes we’re driving take the It PropX again, where clients across on think work to E&P work, emissions clients our it way makes we’re it’s large that. it’s And focusing road, will This of world for going the things will will has on. I It

company, phone, company, we’re what E&P will barge a whole company, industry frac a the we’re it to is this to and it’s we market bigger back really etcetera. needle giving sell them take everybody, help that’ll whether sand to a bigger doing We’re

Stephen Gengaro

you Thank the for Excellent. color.

Operator

next Taylor and Pickering comes Our ahead. from question go Tudor Holt. with Zurcher Please,

Taylor Zurcher

the Hi, question guys. supply Thanks my for first My on taking question. is chain.

You straightforward of The kind and to pretty me. notably, talked pretty costs maintenance, ramped two buckets side sequentially. logistics about is where logistics

question how And going cost, million But raw piece should that $X talking And is the like things and QX we maintenance is the think side. on ends? Or cost extra that of so really when fluid about there of my really equation about in what’s materials inflation maintenance for on you’re QX? beyond? on

Michael Stock

Taylor. Hi,

So I it’s lot degree, a we normal inflation I’ll up throw through mean rolling question. Actually, structure rubber some tire great those of prices example, And as the a cost there XX%, the didn’t at are to I that Yes. is everybody significantly highlight that’s of mean, moment. just general one prices. an costs. right?

chain supply issues around got You’ve everywhere.

look at that job rolls that the equipment, keeping cost. it’s run frankly, you operations through efficiency on up. see there integration, chain, meant maintenance business, there with other focus key So to the financial is see of statements you you are personnel did all is But two our There is places operation, didn’t how sort do And we those to on it’s places where amazing – places the Depending costs, together. issues and of integration out. efficiency. an maintenance call I is really are trying But but to the supply when around come where place is how right. all think costs, of one the issues team two one going is things you there your thing etcetera we is, your our can cost that much

you and spike. is get But how to tear get change happen It’s that not that your you you this can it doesn’t that turnover going Now wear integration, something systems, when month. this the it’s month, and equipment right. one-to-one and of cost we sort change run

issues the is the of seeing summer, personnel the banking in what the and get way really over of So start the doing we’re QX. sort integration from the we’re of to

Some then QX are going to hit in in QX. roll off

to We’re try mitigating up it see people where the think at you financial aggressively works. statements. in But the and recall how again, I actively moment. that turn And like those that’s to that explain we

Taylor Zurcher

– super it’s color sort is about some of we just suspect my color two, in that, piece guess incremental whether translate And from then is these the terminology two economics sure follow-up for big expecting digiFrac, you next economic any on improvement in is, for And equipment my digiFrac part on of to behind as guys here. of that that you first Should two the to you’d I any be I that these sort looking encouraging arrangements. you’re arrangements that willing about am firm double-digit talked of and earlier see this multiyear provide digiFrac contract fleets, to end but Thanks, you’re pricing the fleets? XXXX? talking know I on year, I returns helpful. being high analogous a a at question

Chris Wright

Taylor. bet, You

always interested partners careful many discussions. we have commercial So those are partners, in the of details is very And that so them new that partners how our these. strong us. and windshield But there front choose returns work we’ve deployed yes, there lot a equipment strong, the contracts capital that long of front the are in partners. right behind have capital. agreed, runway of on two things we’ve And very are more there of But to look, been of the us arrangements. Obviously, deals a on the matter, Yes, of course, – incremental will and for was return right talk are us, strong digiFrac right for the long as a been, never it while. about that the economics for

even are deploying There our with We’re for are performance wins them. capital. new efficiencies very Liberty is of excited is costs, is There There great big for it there lower they for fuel both and course, huge improvements about strong but because operational incremental economics customers. ESG that sides. in

Taylor Zurcher

Alright. Thanks to hear. Good for answers. the

Chris Wright

you. Thank one. good Have a

Operator

Our comes go from next ahead. question with Lynagh Please, Morgan Connor Stanley.

Connor Lynagh

thanks. Yes,

fleet? contribution sort how assets a just earnings I high here, for should give Just for sort question of PropX missed, level but any you have mid-cycle per about curious, clarifying think did expectations start affecting framework or just of we to was it sort I your of might any EBITDA the

Ron Gusek

as their X.Xx you when state, valuation. XXXX look was EBITDA pro you – was Connor, XXXX about Yes, earnings forma the at their

don’t a they are are of kind go to there, probably low as So how equipment, an frac right? into from as not rebound little they lows, fast mostly that. being obviously equipment bit an you but business, back So during They a calculate lower, going the down obviously go rental as company.

there So, kind but of moment. from of give wanted a incremental there people handle as start is sort improvements from we to we

Connor Lynagh

and one of Okay, of Maybe broader now a Thank OneStim here, offering. with acquisition more definitely integrated higher and in completions become you. equipment your just obviously, level you PropX, sort the got it.

chain areas So I supply do other curious, pursue here? are the the it am to to completion the now are you for in potentially right you stands like feel there as footprint value-accretive or any right be the necessary of just is coming you for the or feel cycle way

Chris Wright

looking at we’re always So deals.

hear about don’t looking we really at we’re deals. them because You of but many always do them,

acquirer. nice a as Liberty views industry the think I

the and way culture I like think we our do business. people

think is It’s Are there are it to a We going other continually good cultural necessary. So us we we we we lot. might off. feel be buy forward build like helps to goes but stuff. for fit, need a a we things be certainly not enabling interested. a then going and technologies, then possible. to get pull it’s fit we’re anything other really our stronger it else, Liberty, down approached And to And earnings it advantage, competitive accretive good be evaluate

yes, and always looking a we’re this not of is more impossible there certainly lot forward. like things So see there. it’s But going to factors –

Connor Lynagh

clarify just would sounds or as opposed acquisitions as how you there, to are the it. where that valuations technology-focused more now? are like pursuing be you more sort Got that thinking interested about it probably capacity to of in right And comment

Chris Wright

I think technology, things that most are We generally at appealing. the your right. comment is us We look But yes, better look make at everything. everything.

Connor Lynagh

Understood. Thanks very much.

Chris Wright

Thanks.

Operator

from America. come Mulvehill will question next Chase ahead. Bank with go of Our Please,

Chase Mulvehill

Connor’s about good or question. or fluid Hey, of or like in I you integrated kind would perf Thinking further integration, I’ll aftermarket follow-up ends further on guess that a I could being costs questions there? first, you guess morning. anything codes save few here. about where think just follow-up maybe

Chris Wright

FT acquired we look, X ago. mean, I years

and and business. power already a ends young valves make It’s ends fluid sieves. we So and

we’ve But in about yes, continued improvements and in areas. cost performance So those that. we’re already excited efficiency both done

Ron Gusek

technology we we customers it like say I look business. key improve design. things, technology Is, at there really replaced chain, ways what was improve have reach that’s back of Yes, of the advantage technology place speed the look at purchase costs. would We’ve our I more one that our look. reasoning Obviously, for we where That’s where we we sort [indiscernible] of original add-ons And huge another further Chase. returns digiFrac supply to sort always can think of the will bad. the where the and improvements in see we that control behind is with sort reduce like or we

with it, help acquisitions. but That’s handling the of can containers to sand savings, you accretive another these look like future. – is to think sand. Also key that it to would That with business for degree, you’ll right? when technology what will make how you equipment, a building we immediately with is The of driver huge and same a and we it’s costs right. it’s sure room technology, the key OneStim them one-stop nascent we the make prop It’s have a some same took to you to we shop and is the also thing, We’ve was need. portfolio reduce see for sort which technology West PropX, business, EBITDA, a some got wet I along us. Texas the Freedom with this and see we at improving supplier was theme what We of right? say Proppants see key plus cost access the need generally

Chase Mulvehill

one adding the build, capacity? you electric to for kind market argue do you scrapping you the the of on know And same. think And there as think this moving equipment. capacity I overall of over net doing kind would Or digiFrac are are because the you you new next-gen the is low end market kind about that to obviously, capacity? you capacity competitors a do doesn’t Now your a fleets. capacity, two that higher add How how is of obviously, need announced additions incremental oversupplied? demand that’s But into new about today adding

Chris Wright

available number frac of right shrinking. fleets for actually now, demand Look, is work is able fleet to and growing the

hear that’s attrition You built, number electric basis frac of that some being right fleets just announcements from happening an is of now. on way amount below equipment the annual

have next demand industry That’s what’s and growing shrinking fleets. So now, we’re fleets right sometime trends slowly, frac the the improvements where a supply right is growing the and of macro for actually year. but in now, continued to good we driving two frac place in which pretty improvements

– it’s So that for top at we look down. like us, never

number Next of will year, run fleets. x we

just the disciplined fleets strategic? and say subtract they not work y. bottom-up now, We’re do it? economics partners been just going quite for So bringing we’ve do strong right there pull a out. now. always way What is partners, staff it? existing not I’d we of What saying to and to it. or customer-by-customer a new in Liberty from newer our to add some are are everyone or that yes, tons yes dialogue. right for have? That’s It’s needs x going it the we Is How customer

But a be. the now. than In they incremental Yes, Supply now a Liberty? was will it different fact, quarters digiFrac right we’ve and to the they and likely with be. line demand, three for are fleets, for They next fleets on year, it’s ago. long time be right certainly, situation held will

we it isn’t review change have all for tomorrow. That’s And when four Now ahead. That’s usually further prices today, mirror. results. look,

So marketplace. what’s our results into just on look the a lag in are always going

Ron Gusek

bringing fleets opposed line. the at touch logistics around and point – is be to is the issue to that sort the personnel as And trained, view point the of right? around new – personnel, side happens real on amount just with moment sitting raw the real That’s steel of truly crew really effective the people bringing

Chase Mulvehill

Yes. And of you release, activity about XQ see the in levels, press you into activity Make and sense. One quick the XXXX. were follow-up. increasing and candid kind pretty

is guess anything think that? you the kind ramp you more So that you look any then exhaustion And to second do XQ, or like you see to half seasonality think first weighted? or I budget half out or of do specific XXXX, when

Ron Gusek

take and QX, has give in right. I’ll Chris he QX, to obviously see at we I’ll going Yes. lot QX we next looking when look are seasonality, for year, me. Well, been

once budget sort was which X years, in of past to got this over Christmas, holiday usually see digits that’s we’ve over Thanksgiving, You are in a breaks, last the mid-single going more and year, time. slowdown normal exhaustion no activity [indiscernible] a

happen. So I that’s think going to

increase increased for offset of QX. I of think us earlier part of get that’s some sort and to by going activity scheduling

So uptick the in expectation. I’d top slight a say, line we’re going to probably is see QX

Chris Wright

Prices their going And going to production the a in think means around but CapEx CapEx public, And going private, to higher modest. into publics it’s be be mostly be the levels still to still are that. year, Yes. which very an applaud the Production, again, maintenance and next I we still disciplined. is We next probably that. applaud But cash response levels are just flow year higher. for strong will increase for quite economics.

a measured CapEx continual say that would activity increase that and is there but I So level. in

we’re increase probably the that’s total probably think to year, going numbers around think in you half XX% read spend, So CapEx I that year, next price. reasonable next of again, But plus XX% yes. look, get of a – that’s

be next a there’ll not year. It’s activity step in levels increased stair So January.

commodity, spread I think more it’s upon gradual the prices. year, over and probably out depending commodity

Chase Mulvehill

thanks. on though. Chris. Okay, Thanks, take I over the the will XX%

Michael Stock

You [indiscernible], Chase.

Chase Mulvehill

Michael. Thanks,

Operator

Our next question Modak from Goldman go come ahead. will Atidrip Please, Sachs. with

Atidrip Modak

your is equipment estimate are who utilization demand necessarily picture you electric as next you does frac level, fleets. you could the color looks lot of like? And year? maybe a talking on not what are Hi, the into guys. – any you supply supply Could about what Because today? like peers rate provide upgrades, like a at look there high go Would

color around any Just that.

Chris Wright

poor. harder work – what’s It’s to intensity People, is migrate of with drilling the Is happened frac Yes. has economics frac with fleets up. continued are rigs. than

and competitors. – a parts lot a So a people an is of of have need and week they hear, compo. in – goes major of sitting frac lot engine you pilfering There and we there down is

of you is many fleets it’s shrinking. the steel excess there count So But tell can’t you frac fly and large just – how I over will capacity are. definitely

out. is worn So the being equipment

fleet getting tighter. the new and you’ve The As to is point going seal or projection quality fleets challenge got last work dialogue There that in even pinch a basins and North with you’re safely. We fleets. human with the well. and going But fleets. X-month Michael biggest one happen keep a a the is is and probably labor that months, efficiently frac can to probably probably by said, also to internal, the that is few we into visibility ahead frac I It’s single And frac if the biggest the due frac facing side deploy what’s going. just skilled of seal America. think of as across account an running have keep high-quality active pretty in everyone

customers, with are have our day kind that. And –we publish of We will. that every gives don’t it things Liberty, us across many going. was We insight X X ago. is a be probably the It’s ago, than widespread months was months X or people, to ability obviously, probably never think feel I of where kind a crews will But get harder an harder it dialogue now. reinforces it of X And much from X today. belief quality months still than harder that which to

Michael Stock

little Yes. the bit there. a comment cycle upgrade on And I’ll

people now question second we’re The interesting. is again. as part – It is you What well. seeing seeing your there are when of Liberty

XX-year the As the is to Tier are things dual getting engines they they into with is there getting a do come X. are into of are There maybe the, engines some differences fuel upgrade Tier etcetera, upgraded upgraded systems, some to say, a there upgraded, decent DGB. X-year, X – retrograde, cooling getting

is There slowly, right? they tapping are small. a that’s supply chain relatively So

the what count quickly. end the in to X sort more to was the those happen built the was next up sort see years the then But going built Xs, of X do years X It’s older of the some that Tier a probably versions on be. ramping Tier over than attrition ago, the And that better stuff diesel fleet, Tier XX very of of they’ll ago. of back you think the DGB. the that that X, bottoming, the X years lot XX So migrate there into I to in of

be XX DGB So years X, I now. statement, fleet from let’s in might of that’s say, agree, fair from now. think will their Ron, round sort Mike. you X years XX electric agree, It mostly Tier say, Would you

Atidrip Modak

that’s next it. helpful. Got Thanks, And then the around question digiFrac.

plans CapEx but see to around great developments, those you could around provide So obviously, on any the fleets agreement you updates that have now?

Michael Stock

I can. Yes,

these you to fleet. as arrangements see, money on we’re spend starting at can So digiFrac

numbers. You’ll probably see QX Depending spending Yes. the on approximately into in about $XX rolling of QX how deliveries? on million depend

of our in the our So range. towards a of end going will high to CapEx of numbers high digiFrac. sort that be end rise be $XX million plus of That’s the that range, about

year, those. For full excellent the investments

a you’ll QX see of getting of into think that, deployment. So for rest the in ready roll the into start as they little I then and QX bit it majority

January. So the there. you’ll in I conference is think see Goldman that’s Long-term, sort probably what your of at range

the get be through deployment our end plans. place long-term of I think will talking the probably the this year, kind we to talk of about long-term the plans once best about

year We give beginning of view a will timeframe, of full around CapEx, the probably view I the would into next year’s the etcetera, expect.

Atidrip Modak

Perfect. Thank will I you. it turn Look that. forward to over.

Chris Wright

you. seeing to forward are looking We

Operator

MacPherson with next Our Piper Sandler. question Ian Please ahead. comes go from

Ian MacPherson

deployments that, your we in held constant fleet deployed fleet improvement and the basically increase know which Hi, year, revenue count? XX% prior your – deduce pricing third was Thanks. the mentioned I utilization in would you that line good the From on quarter on quarters. have that through we Chris, morning. a you basically saw

Chris Wright

Yes.

Ian MacPherson

Yes.

Okay.

not you that point? into – the million a of gradual you Michael, quarter, get recover third that you QX So or about is QX, guidable $XX when could you talked not that three-part two of hazard at have from from this headwinds the recovery you in probably would or what immediate, margin encountered

Michael Stock

of to get present tough at obviously guide I through think But logistics think the time. to passed I number a point clients. in this costs will

QX by of on driven will that then managing through but maintenance QX, be drop-off are more that’s the sort the well could give sort little We noise a next similar in clarity of They the and personnel. month. in

Ian MacPherson

Okay. embryonic On sand PropX, squeeze so since industry, third a And I wet fairly the still one, quick, is then I if have in will in I yes. may. been

And is that beyond so of confirm couple that sand do trailing fleet Would think an of imagine angle the runway years? the the And penetration you would your or what of would then that for business. for that? I over of and maximum the realistic above the you incremental next of wet be across further sort accretion penetration accretion

Ron Gusek

right. think you got I Ian, have that exactly

where to of that But technology. now I while a opportunity and think coming are there. in it’s commercial position early fully days fruition. lots we it’s a been It’s little I think upside in

be dramatically could trucking to the well early day one reduce not with buying. as nearby when trucks story of example, think every line where for look you will environments. think And yesterday we course. of distances, won’t about mobile trucks. availability are XX could what material It There you or distances, place, sites operations, of am guessing a and are the us site hauling probably make is before I well longer to a of a I I these that environments allow five. you an down reduce it’s sense, to apply dramatically a going at of of it few used servicing to ready think heard last opportunity where but there certainly and a number about mobile number now mile just process

of And number So, costs of emissions. deployed. not is places, fleet and but core just where the in of a place, a dramatic the step forward as in basins that opportunity, a an reduction of that lot in in see terms some certainly every and we

Ian MacPherson

you, will it. over. Got Thanks I I Thank appreciate team. it. Ron. pass it

Ron Gusek

Thank you.

Operator

Roger Wells Please Fargo. ahead. comes go Our next question Read with from

Roger Read

had last Good Thank had morning. Maybe to you there. you. just question the follow-up

Your about inflationary pricing about here, but answer the trying to ‘XX. it issues of net are think commentary recovery to just is we also the the not

‘XX? out, addition to at understand costs the factor I should bit. business I we and another looking about and top sort as generating sand that, handling And bottom little quite back the just capable say, say, wet know line some issues changed what of – a the line relative look productivity to tough baseline we But think in many that’s we ‘XX are so Given ‘XX performance of because of bringing at here. how versus, am is has or the, let’s the the of a trying efficiency company that

So, but you, it’s just can a company broad what of the question understand probably for to generate. Chris, I sort want

Michael Stock

Roger, sand, one, of sand look one line this in things difference on think rate. at, line, between take of will top you pass-through how reduction sort we production and wet our that of reduction the bit a much cost clients. in-basin providing the for operations, of really etcetera, sand, were a That becomes little depend will a I you will when the bottom at I of it mean look bit. I the Yes.

expenditure, lines have bottom were. returns we that to about capital will big won’t thought economic to So, see That’s a or generating back lateral get probably fleet. foot stage EBITDA for which what why they you call average on always this we out the unit basically of

are We a little has the real smaller a oversupplied do It while without right. start industry sort discipline that right. in been we we back that I So, seeing I what back is of seeing a think some industry, are of bit just seeing, season a good what XXXX you get levels, to started that. though, to really costs. structurally to mean, structurally you get are we takes

reducing We are are starting actually that of to the see amount some acquisitions players.

better well. we So, probably structurally could get back to that lower mid-cycle what are a are But we is that into then do a therefore, well, margins, those relatively will see think I line. and getting we we lower you top on cost where doing per a happen so industry

Chris Wright

just a were, Roger, customer or costs going mean be X revolution next up they just has lean but The more year develop years years what and and a are follow-up. to nowhere efficiencies. from to shale perspective, And they where X look, were yes, to continued near to ago. well From continue drift

will customers now economics look, commodity costs, may for and mean never drilling all-in I shale better And So, be outstanding. revolution. strong in be think right of increase I still they prices. have next single-digit our year, been it’s probably the They well

– But think the to we efficient. and again, get in different to that continue love industry I So, see it’s more cycles.

world, Our the in still we customers not yet. great are already there return are there quite and

Roger Read

of appreciate it. on third in one the just the cost part I follow-up quarter. the maintenance Okay, issues And

replacement what that is about we up couldn’t cost was, a etcetera? think that do that are you any supply to of – that or pieces, combination? at – it parts, we As overall that continues this seeing equipment spare be the in Was you get And just is point headwind? chain improvements or how

Michael Stock

obviously costs maintenance, to headwind, have etcetera. continues right. the a on chain There be Supply up is past, moved

turnover, generally, But comes really did I think rate by reasonably That tires see rate chain that the And has constraints. level. that like of supply quarters. we those going of The real integration good there how highlighting like is with gone failure failure mean, going they yes, come job think of with partners to you run to you at some an to are that down a issue is gets in a comes one our think next really maintaining were key the underlying I etcetera. I issue. over But effective of with employee etcetera, sort sort going the up sort be to highlighted I turmoil, The XX%, that up. two goes team inflation comes equipment, right. thing away what

to is definitely equipment on be have to was the expand and – just-in-time going Beach incredibly be key there have And all become it, suddenly is it efficient are delivery that affecting of to issues going sort unavailable be stranded are there got everybody. you are used parts we system off where just really Port you to that. are seen, Long times for that got we going of the As

Ron Gusek

on things few a Maybe Yes. that.

to color operations. said more little a add Michael to what of Just about cost

ultimately this to we road seamless were impacted as As maintenance things from working much transition, possible. two the a that on consolidate and to as different moved we in one as There those work ultimately through make few need as we as maintenance. hiccups platforms,

those And we get back will so things. to

to has place back year, really We Michael chain filters components will said, I history. standpoint, that and into to the of remainder potential as a get we some supply in modestly the case From we those starting to potential like see are Liberty’s year. a as supply always And it through availability, issues think bearings show issues. really with improvements next the things way where been up will but is starting are see air to coming

chain but come sometimes we those so make that working things a team any to operational pricing And with impact, impact. have hard sure mitigate supply we on our

Roger Read

Thank Absolutely. you.

Operator

ahead. go next Our Keith question comes from Mackey. Please

Keith Mackey

and Hi. my Good taking thanks today. for morning question

in a net bit Just U.S. wanted in for the versus compare little to your start you break can pricing would and how down out Canada? with terms outlook that XXXX, maybe of that just

Chris Wright

the is in the U.S. There Is the look, is improvement a more so. lower is little pricing more more probably U.S. in There But on violent in going it’s of the movement pricing in swings in on the improvement in than The there Canada. going some players There U.S. level is Canada. dramatic activity. U.S.,

Keith Mackey

integration will. drop off? to is far start game, that either some completion process if quarter. say, it. additional Can you how Thanks on terms OneStim or when were for finally, processes, equipment, just and of the And you we sort Got of along of maybe comment And on stuff expect should just people, percent this Okay. integration, the the of in there some that maintenance color. see just inning to just of

Michael Stock

say would I mean I vary, didn’t Yes. it right.

are intellectual where if IT – kind you I the thinking are transfer, think we in it sort inning the are probably on of property depends fourth rounding base. of you about third and

We a a there of transitions to go, doing there. long way we is are going lot but data, well, have a of sort lot of on

we I further along. think think I are operationally,

we say are would in well. are expansion. Things think I probably Ron going the

crews. We are integrating

as end of part exit QX, the side. as the is to on we year, we move on I a of through key we think that to operational come I more two the maintenance two and we think are on the

Ron Gusek

Yes.

there are we of an getting from and game the Michael’s side, I innings the moving operations along think bit it’s to certainly point, analogy. and well to the last a in

integration from we maintenance got I think have the a standpoint.

We closely working have got teams the together there.

We lot a are use differences use those they on simple oil. between and fluid the assets resets of a getting understanding example, the early the hurdles we as with

those running those are we so spot coming team a together And to and on things. as the differences right

is stuff So, that – a lot us. of that behind

to new to development going us take that We forward. have ultimately of initiatives tech going got team a a better the lot from place are

standpoint, Our official are a bring another to intelligence, predictive think. us to from level I bring analytics, yet they to that, – maintenance that going going are things even like

Chris Wright

I on I would the of night. at are side sales we the of think this, the bottom say

Michael Stock

I a we got lead one. the doing have Yes, well into we that think are on going world and series

going it’s well. I think

be that year. sort will of think really this complete I

going that’s think well. I

the is right. way, much I very engineering probably same think

on design we think sort of Chris. doing things some with on the chemicals, thing it, that the same the on are side of I

Chris Wright

for us. the development, the just And which was point, Ron’s to follow-up in exciting one of things tech

in technologies that efforts some together, could are the turnaround. plus turnaround. a doing like multiyear invest month, be they deal. efforts us and three That’s we And things. doing opportunities we what disrupt big Some with not XX-month a were even to would we a getting That’s a were or saw the long-term do

X for are stuff. on So, those X technologies you working team and on X years, X But it business, out, about but years. we teams those feverishly won’t our still our together hitting the to as technology year, that are X that. see another that’s year excited ground business But one that in years

Keith Mackey

Perfect. color. Thanks much. appreciate I very the

Chris Wright

Thanks.

Operator

Our Energy next Partners. Please question go comes from Daniel John with Daniel ahead.

John Daniel

operations gone putting touched for you continuous in. was time of Thank back that, the Just planning, of you a performing of if services analysis allow late, hours that, me on may pumping much apologize. on what’s versus what driven at this and your how by tell third-party But much little everyone. so well? XX to Hi your as achieved, that of happen? on I got the that you success we I have was customer and how looked bit earlier, you

Chris Wright

a mean, is of together. thing I advance all Yes. of key its those things

call of be able have everyone got I wellhead, a switching high pumping hiccup. do it to the is This from The operations, water operations. to got perforating I in well well, frac supply. say Permian, the you So, the to would have that. not rate to has

like So would when piece John, you something I say, works. only can get look, that every

XX – the midnight, I did, the hour think One to like continued it second one midnight for XX actually of we those hours.

link of got it But It things going lot that together doesn’t doesn’t well. a if in weak that’s So, you happen. happen. one chain,

that’s look, aspect standard of an procedure, every more, to aspiration long It we So that’s to great. operating more being ways get and pushes a the but it want but is from in the the the keeping and things on location. link Where the and in controls. is maintain weak link weak pumps designs and the in blenders weak logistics link the or online the

stages different We those. and different want respond to seeing things we are from to

really just It’s a in concert. So, effort John. I answer team percentage. allocate a better I can’t I had wish

Ron Gusek

thing Liberty is John, of years, truly XX foundation I years now. X a neat that built think on it’s the story about

the us the over minute about that, and We we understanding provided that it focused we to on a be is over around things have started, been Since that level we of day. every every measuring again. day needed has get But and over of there. to talked

If you out go it. don’t measure it, you address can’t and

understand And so to success. the to I achieve And we those put we be position needed ourselves bring were, that in opportunities where to needed we table where partners the on. think to ultimately, focused a to

Chris Wright

got congrats. frac crews, dynamic, our competitive “Hey, So, wanted is there the among be among e-mail from first.” customers. to I several We a partners. customer our

So, animates that’s what here. the progress

John Daniel

it’s Well, remarkable.

is where know and you person you fracking but I all it sand. and to a That’s guys is some if – of on fleets, third-party what that…? you maybe know or was if it a wireline I you like didn’t are if sand. was because of having with don’t I because on attributes just the another – trying was at, case the was much having we was Just it it how wireline drive there

Chris Wright

sure for part we chain. a of helps supply are that large that It

of number partners have control the location. over We relevant on a wider that

happened ago. probably months now that’s precedent, that yes, but not XX So and not

John Daniel

just higher. agree on Alright. thoughts active fleets. lots and I you Does a XX want mean today? your to with to it’s guy Is my would or year-over-year, is is. I kind count count test you think what that says from the fleet come of But XX back E&P suggest up incremental take I that there? pass different working do and to smell just capital math dumb where of are U.S. what that the that you, active if probably spending we XX% activity, views your

Chris Wright

It does. It does.

John Daniel

apologize, agreement, And Okay. multi-year with but two an last housekeeping, multiple is it’s fleets? or it the it one the in agreements, then but so fleet is digiFrac, two agreements is each I one

Chris Wright

fleet in those each One of agreements.

John Daniel

Got it.

Okay. much Thank your very time. you for

Chris Wright

John. Thanks

Operator

ahead. question next Arun Please JPMorgan. go from comes with Our Jayaram

Arun Jayaram

the you process you criteria fleets? wondering additional fleets could bidding two the utilizing. you environment? the on if are market, investment In into Could sealed elaborate to thinking you undersupplied Liberty are maybe about digiFrac the deal and this of the I Yes. talk nature those? Good how maybe digiFrac overall the an secure think morning. Chris, competitive about adding new contracts for was just for broad you What

Chris Wright

of all to have a or existing are if in most add. we I win we is add, sure. way. the is got partner for isn’t everything like know to don’t everything partner an our bids are But want we throw that year I existing do with ongoing XX partners. got just dialogue – make of we Liberty’s XX would deals of Almost to the an next competitive we told in we and going It have we or hope want something, they markets –

parties. So, discussions back two it’s mostly forth and among

water, We we stand plans with way laid you the For Liberty, of just versus competing throwing of technology other digiFrac come But can something quality or what disrupted high by God, my by don’t of saw of The the at get others. happening. dialogue and COVID, best our happens. are is things. these solicitors oh need what sure, people the hell getting they The agreements or numbers in. unsolicited the the all

the compelling back for capital of of to to meaningful a our marketplace, a nature comfort forth mostly the that it’s two-way partner, strong, balance of negotiation right sense better economics do think in what’s the I deploy win long-lasting to Liberty the in big and and amount So, strong. be makes yes, today’s for new find be what better

pieces So, and are think with all of lots I for that. there. those Liberty’s But opportunities there of history, digi with is

a biggest But to that’s a – and one and returns. it’s It’s how constrained, to it’s deploy. fingers process. a bid, then customer-by-customer, be again, balance partnership-by-partnership, many not So, by a not decision yes, closed – it’s our is of going and answer. sheet them obviously, field, crossed investments And

Arun Jayaram

kind more CapEx fleet. are see That’s How Historically, to we conservative – supply think fleet about helpful. as how my as if around you inflations, million XXXX, sustaining that how maintenance things chain per evolving raw material or But modeling we have year? you challenges we wanted a of the follow-up, is into take $X go been pressure, just your And for Chris, next should thinking for what inflationary industry etcetera? about broadly, approach? of we for

Chris Wright

on think, But probably we prices, steel Ron? one. system are XX% look they yet, mean I I is definitely it if about right, up, part peaked. really, can probably there, and the probably in I chime this got mean you I the I Yes, it Yes. Ron take plus, mean will inflation a of cost in haven’t at it, right. have is think little – bit the prices steel

Ron Gusek

think the Yes. but have to To seen that, we yet. way all of hasn’t seen plateau run Michael’s we have us I the here that point, through

six chain longer to supply a Our we are months power like months end probably is five than in.

to to the think feel I coast. companies supply going are also these chain inflation challenges with deal we work off as

customer. all ultimately through rates that’s inflation We rates, to in continue to flow and the in trucking got significant to end hear shipping

I CapEx And year. part that costs our so of next into headed of to some think we feel will continue as

Chris Wright

would read come policy. I haven’t some it’s see seen of – But the sort the transcripts. through of we amount probably sort heavy in yes, industries. the all that from low-double equipment I We of in with calls steel, and out where the assume but am of probably to probably are think across earnings I where Given rolling that’s maybe digits. parts waiting it’s

of to we going with better are design. with that’s the goal moment. the to are at one invested is STX. offset that of That’s We that teams And Ron life some we offset going of the going some of and the efficiency longer reasons and with with engineering that on in

the our could forge. all to chain we It’s heaviest part. control the So, that back supply sort steel of way

sure lot So, that of get we – moves that those those to are are the counter but inflation. we a making the make these, we can do

Arun Jayaram

Great. a Thanks lot.

Operator

and for Ladies back would question-and-answer over Chris any this gentlemen, I remarks. will session. conclude turn like our to conference to Wright the closing

Chris Wright

these have to again presented Look months. us, for questions these well. to times talking for time challenges and opportunities interesting your certainly, but very But interesting as everyone, Thanks, in thoughtful you three today in times. forward

Operator

has for Thank today’s The now attending you conference concluded. presentation.

may disconnect. You now

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