Earnings call transcript Q2 2023

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Operator

Good day, and thank you for standing by. Welcome to the Cactus Second Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded.

to Boyd, conference and Director like speaker to Investor now Alan today, of would hand over the your Relations. I Corporate Development

Alan Boyd

us and today's you, good We you Thank morning. call. joining appreciate on

and President. are Will be TS, Scott Vice CEO Operating and Officer. Chairman Executive Chief Our speakers Marsh, President; Counsel Steve us Steven Executive Bender, our today will Tadlock, joining Officer; and our Bender, and General of our Chief FlexSteel; Officer, Joel Also Chief Financial Bender,

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

discussed actual Forward-looking expectations. of to beyond results risks no risk are make materially filings and statements statements. from undertake we which We of factors the number release review as risks are or update we only our in earnings to statements Any today our of are a any and control. advise review uncertainties, SEC. cause and obligation publicly listeners to our our forward-looking subject to differ and current many forward-looking These can date, uncertainties the with today's

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

over With Scott. that, turn the to I'll call

Scott Bender

Alan, Thanks, and good morning to everyone.

in quarter pleased We be performance cash weakening net a despite second plan. landmark. today, the US our are particularly well the internal with to a understandably in ahead position We're proud company's of

by acquisition. generation been enhanced company has has a FlexSteel always strength you further our As and free cash of been flow know, the

records highly and EBITDA. basis, in of differentiated each This of strength segments. set for quarterly both revenue the stand-alone adjusted our On offerings each reflects Cactus and a FlexSteel

FlexSteel Control, through walk recently segment of results which Cactus consisting Spoolable Technologies, format Pressure is we'll legacy and in represents business. introduced which the Today, reporting our

of We of adjusted quarter include, EBITDA total paid revenue highlights million, $XXX margins million, record $XXX dividend cash per million. of second EBITDA $X.XX a from of XX.X%. share, adjusted $XXX operations Some quarterly company of flow

Yesterday, quarterly raised a we acquisition, us repaid And of we approved finance $XXX our once debt of X% the a $X.XX XX, on to have FlexSteel bank in July the that leaving million share. to Board the again announced increase debt. free full dividend

the CFO, I'll now to our will results. turn Tadlock, over call Steve our financial who review

Steve? I'll remarks, for some his the the on opening provide outlook before Following Q&A. near our thoughts lines up term for

Steve Tadlock

Thanks, Scott.

activity primarily million. revenues by Scott $XXX As primarily mentioned, $XXX the QX decline sequentially, in or quarter single was increasing $X.X million XX.X% US to activity with million land which driven were primarily transaction increased revenues allowance despite customer XXX of Pressure due partially Control Operating up for offset the customer. basis doubtful to sequentially, accounts, the by X.X% operating an margins total lower in increase were income increased points progressed. as a expenses, attributable

EBITDA by points, increase with million, allowance. slightly the segment sequentially, $X.X X.X% basis aforementioned or million Adjusted XX by $XX.X decreasing of driven was margins substantially an

we FlexSteel XX. acquisition reminder, on a As the February closed

ownership of quarter the results. first included March full first quarter of only our represent while results quarter second business, the So the

value $XX.X Spoolable inclusive of the $XX.X million associated intangible million of XX, if remeasured and remeasurement $X.X with Technologies XXXX. of outperformance and acquisition. quarterly at operating adjusted, valuation the earn-out this the revenue The revenues were loss forecast. acquisition, of inventory a the This reflects liability expense on million. costs expense will up was associated $XXX.X Operating FlexSteel of loss basis remeasurement of date earn-out the million be our the step necessary, through $X prior with versus million quarter June expense in final amortization hand was and inventory with on of

approximately in an was FlexSteel the and improved EBITDA, $XX.X the due quarter material of all period. X,XXX basis prior March to the that have Adjusted the operating from excludes charges, Note allocated cost of non-cash above depletion in with increase higher to which point leverage. segment XX.X%, no million been levels costs margins corporate

fees On from $XX XX% transaction-related cost from non-cash Spoolable Adjusted stock-based leverage compensation, the during of and step-up to purchase of due first EBITDA in an $X.X higher a of which company adjusted Adjustments $XXX sales. basis, charges second segment. million operating earnout first XXXX million quarter. $X.X included liability EBITDA million the second and quarter million, was $XX.X the margin company XX.X% was related total quarter impacted the the Technologies quarter approximately from total million and increase up million of to the during and $XX.X of accounting-related inventory, FlexSteel in revenues, in EBITDA Technologies expenses for contribution to quarter Spoolable

and approximately the be Depreciation million, million, expected $X which third assets to Spoolable is related our with Pressure intangible the of amortization of quarter during an Technologies. D&A for figure $XX was part expense the quarter $X to during Technologies expense again purchase $XX of inclusive segment third associated Spoolable and is includes amortization Total million is $X expected million which accounting. Control second expense amortization expense which This of million million $X within of as quarter. with intangible associated is booked of

our debt the debt deferred due to $X.X recognized as faster quarter. and at of as per second accelerated remain contributed $X.X approximately which intangibles the expected during and expense expense quarters amortization million. approximately Interest stable for the Intangible million increased sequentially quarter acquisition than expenses paid rate. steady expense amortization next to is fees to several in at quarter was relatively interest Net million amortized a the forecast longer-lived financing $X level interest second these we the expense down

$X of expense We expect quarter. approximately during the interest million third

higher to of the of tax expense earnings related utilized million. first second benefit during and the the quarter. valuation to allowance release Income $XX elimination expected expense quarter Tax increased the a due our was in

Barring A ended Class public further we expect of in the of for percentage, ownership an effective changes XX% and approximately ownership XX% our averaged public XX%. quarter, or quarter second tax QX rate During at company the the XXXX. the

the quarter was tax to and with the driven increased step-up higher $XX the expense was inventory first expense, amortization second remeasurement related the of income performance purchase expense, income during decrease increased million net $XX outstanding versus intangible earn-out FlexSteel. price associated interest higher by of the expense, The in million liability quarter. the GAAP

the estimate $XX look the million applied of be versus and which to earnings rate in prefer adjusted million and tax quarter quarter the respectively, We XX% net quarter. second $XX $X.XX second share, our income quarter. adjusted rate for will that the and per during tax the XXXX. at the We net per for per adjusted income third $X.XX to during pretax XX% Adjusted EPS share, share a generated were income during quarter first

to During million, we of quarter, distributions including will outflow per related September. quarterly quarterly has approximately a of cash in The be the paid the also dividend a of paid dividend second a to which approved X% $X share, per Board in $X.XX resulting members. $X.XX share, increase

$XXX,XXX. net the Additionally, repurchased we the with debt bank quarter, second debt are we of our cash position. million and and our bank the under of $XX in cash quarter approximately A entirety days for in end Class authorization gross $XX once of new quarter outstanding Since repaid of a common a of the million. balance ended approximately the We final X,XXX the of shares stock again

dividend third quarterly to to million which quarter, million, $X ahead related will with XXXX Looking of of make million. expect payment be TRA payment $XX the a an and and XXXX we tax estimated our approximately distribution, along cash $XX

activity reducing Net at full the range is our outlook planned excludes CapEx now occur $X inclusive early supply we're Pressure to to Control in chain year will investments expectations in $XX second but spending Middle growth near-term during investments and of low-cost East, million for CapEx XXXX was in given approximately believe of XXXX. which XXXX, diversification This $XX moderating on the we million levels. lower million quarter

financial covers Scott. That I'll the turn the now and over call review, to

Scott Bender

I'll our segments. quarter now expectations our based touch third the on Thanks, for on reporting Steve.

reported versus the the the of which Control year. the the $XXX declining million rig drilling down quarter During half second the the we to resilient be revenue in decline Pressure business, third our impacts approximately expect to quarter, in activity first remained XX% count in as

Friday, land levels XX% last XX% is from down year-end QX count Hughes of and XXXX down rig levels. As Baker average US from XXXX

outperform decline. Our activity differentiated to continues this business Control Pressure

rig expect will to activity We count that be the flat be the constructive. third fourth might pressured in indications customer commodity in remain continue quarter, prices up suggest quarter if to although

investing to year-to-date commodity committed this through our remain revenue business customers reflective well-capitalized rig in count the of their commitment. declining of larger outperformance cycles is Our and

This as quarter, control, be operating adjusted XX% well inclusive expected million expense in after expenses. compensation segment our expected down are SG&A as of within we've to general our Adjusted guidance corporate and inflationary expenses. in the EBITDA see approximately to margins leverage, for excludes although Control pressure transaction-related pressures. of stock-based of third deflation begun many $X Margins segment costs be XX.X% are EBITDA supply sequentially chain months to lower Pressure the on to

of We begin to materialize the this the and quarter expect third more in to the benefits quarter. fourth in significantly

progressing through of on expect first work the acceptance our region. in XXXX. and Mid-East, structures our are also ownership upon we late the trials, work testing on In evaluation, evaluating continue completion which schedule. we the And We're and to in customer continuing orders

region the early to we now in earlier, investment in XXXX. structure finalize mentioned As expect our

over driven achieved Spoolable of with continued the we product This revenue of the to to share by of share the the Switching highlights market penetration acquisition. quarter, market. Technologies expect be versus relatively and the segment, diversification benefits and second flat of wallet outperformance

cost the and discussed segment Spoolable now As some during us. first Technologies through behind also is higher headwind last that quarter, our working was quarter, inventory

with that in add QX margins guidance the going our cost range Also, inventory of QX, in supply in turnover, associated completed given with will the adjusted million accounting of this from ahead moderating value stock-based approximately expect we plan, levels compensation approximately to or XX% margin have step-up for price chain. forward. slightly this and we segment. record the We have segment now Note that of inventory $X amortization in be volatility excludes EBITDA the high the not of purchase back non-cash in

the earnings a changes. few mentioned Form announced that release, our was with last we As night in X-K filed

from a many and in very has Bruce remain the down that which Chairman served Chairman, current of role responsibilities will of since the the Board continue to of my August continuing Chairman assumed addition founding thankful. role after in has Director XXXX, stepped service. role I've years valuable who the to to for his I'm CEO. Our Rothstein, contribute company's He in as

the of Chairman Joel has assumed my responsibilities President. Given integration role of FlexSteel, supporting my additional as role and the

Officer, Operating oversee to where he continue facilities. including has manufacturing Lead supply our will Joel's the to since independent of Joel technology Bender chain, operations, our production and has introducing Steven our of our branch and President, Chief continue assumed invoicing our will As and oversee role majority role. Board field service Rosenthal, XXXX, managing assumed processes. member the associates Director delivery significant enhancements an Gary and to

infer You these changes. any should from retirement not plans

We the in introducing line customer are of FlexSteel base joint both much the to meetings early internationally. our Cactus’s and by larger and highly efforts innings product early through organizations still the encouraged US in to integrate sales are

Just strives is delivers to highly product expectations. and FlexSteel exceed like Cactus, the customer and superior team a technical, service

emissions increased legacy I'm appropriate. including reduction, appreciate discussed anticipate details and to with Spoolable speed many when with FlexSteel in more safety the total and the XXXX, more services of product, business, learn will of products operations. the Cactus confident will installation, associated which new introducing that, of reduce be efficient the field benefits We as ownership for cost customers

business cash months the to ahead previously, plan. through-cycle yesterday. debt-free flow led us the closed, cash enabled since combined free base evidenced us our balance $XXX and of the of the stated increase confidence announced repurchase share increased the the of inaugural all our of the substantial our as The re-evaluate strong return has dividend to June profile priorities announcement to by our flow and debt of five program well million cash in As in sheet bank repay acquisition

to we continue be with a will discerning invest to as our in Going while for growth believe cash, organic rewarded opportunities remain stock flexibility excess attractive balance we our forward, sheet. maintaining buyers and we strong expect own of having to inorganic the

business Spoolable competitive be will the that advantage activity, for to remain encouraged further remain in-process expect our down expected to decline third by consolidated outperform high-quality strengthen and US stable. will are our year-to-date and diversification to see service discipline the market Pressure low-cost, in from expected investment we We're peers. land industry activities Moreover, customers we quarter While chain that supply both future our in given we Technologies continue is confident our Control the periods.

we over And so with Q&A. to it may that the I'll that, begin operator Operator? turn back

Operator

[Operator Instructions] comes Our Gengaro Stifel. Stephen from of first question

Stephen Gengaro

Thanks, good morning, everybody.

Scott Bender

are How you? morning. Good

Stephen Gengaro

good. thanks. am I am good, I

So know you're you're speak legacy and directly had expected my first seeing I pricing talk we can competitive right, if what we'd love you market XXX question, landscape -- that, share, both a tell sort to little modeled of business when and grow all? I basis And I in the to think of you share about and what you not market perspective the to just from changed to And hear if we're a think business, going about market there too. the about to but that gained points want bit. has mean, share, if you me at

Scott Bender

to I share talk I quarter. share during with market certainly will. not not that and we never market Well, absolutely about have will record pricing. share going as talk I for the you going know, to I set but you directly, about am we're a never

that, sorry At So answered. about least of your got question part you Stephen.

Stephen Gengaro

been position do you several for as -- But of your competition just been landscape? what or as about do and all change years? made any the at strong the think has progress you in Has it's last the competitive there sort just remains think

Scott Bender

Well, guess share made that -- of the I for about record great best the evidence statement quarter. is I that the market

Stephen Gengaro

Okay.

constantly. you ask then there guys the I Okay. line the one you on Thanks. front just wanted And out are other about to

about saying see stabilization the third do you we earlier like and on hopefully, in based what rig you recovery quarter and a that the early based Are seeing on counts -- that you stabilization. mentioned are conversations, a confidence in gives maybe that You XXXX? orders,

Scott Bender

Yeah.

our believe you you this my of closer I you even feeling me that the let But land customers, in XXX question for know. I'm asked earlier. count. a So trough with transparency, to may recall, down XXX From clear, as haven't explicitly. be called now revising though XXX conversations to I US

probably to coming stabilization. begin they latter decline, we'll always feel which see who that we'll quarter, the after suffered I of see the most that's of privates first. to think occur And going in to particularly some the have time respond I and the in like third from part mid terms some activity increases,

Stephen Gengaro

since that, in. I'll slip and one Great mentioned you

like right? progress privates, On with the private side, couple you've last of made fair, quarters. seems and That’s it the

Scott Bender

to historically made not fact have The matter that's have progress used They're to privates the dropped. percent with how XX-or-so of when the of We privates our privates. terribly But consider XX%. is down account for much surprising you about about business.

Stephen Gengaro

Yes, Thank great. color. you. Great

Operator

One next Thank question. you. for our moment

Anderson comes question from next David Our Barclays. of

Scott Bender

Hey, David.

David Anderson

Hey, good Scott. morning,

Scott Bender

doing? you are How

David Anderson

Great.

anything, staying Are to what we follow your there, of me course? the think from if little the of of question the or kind to wondering on anything how steady just just of it saying, incremental let expecting bigger maybe -- Just quarters? Just privates up kind yet. kind gas? 'XX a natural about stay Stephen's incremental bit. and next throughout I'm really larger picture, If just here customers you three comes kind they're about fair thinking they've you're them is kind been about say or two of

Scott Bender

Yeah.

they robust very customer and has So one released their about gassier to thinking have areas, really be without big Delaware names, in activity that maintained probably you're right Permian the mentioning areas. now the clear, rigs in but

represent fair, it to a percentage. a was Now large portion, be that but meaningful didn't

stopped those gas rigs gas So they have had to think either or about drilling rigs stop. about where and

have rig to count. fair that really the not their it's maintained majors say So

end our the we and -- that customers $XX year. don't are believe of I of I remains the do oil terms XXXX. about good visibility see range. that of visibility, I -- none hope budgets pretty in through -- all But time, think have say, all let's the visibility In talking that customers $XX,

increased will from I well activity larger include, And think see I budget players. that think, privates as resets. from the we'll as

up mentioned I say oil, decrease heard has up cash got the all last drop time, flow that shareholder gas as cash something by I who picking flow. and think something's constant, flows believe in me is count You remain for we give given. And pundits cash despite to that and the returns make

we our shouldn't asked, if but… look questions answer that at So I haven't -- you

David Anderson

do. please do, Please

Scott Bender

about position decline cash. is that If rig I not, supports of seen think the that my in we've our related, it's gas, count, or about kind it XX% believe oil cash which XX%

David Anderson

at LNG in natural of know I this about Are back coming get the are gas didn't oil year. this So rigs is into think is you more of be will specific Or later in too know 'XX. happening privates do there? kind XQ? going you build-out kind some in there of talking uptick to more some that I that you And there. the XQ be side point camp sort on

Scott Bender

Yeah, the latter.

David Anderson

Okay.

your made now understand bit Are this that is 'XX You year? talks are just having was they 'XX nobody holding this -- -- a the structure? cost kind is you time are just that talking want 'XX? off about because at to little of they about be I So curious, not the late curious, just about customers would normally surprised you I'm of a comment is talking 'XX. about

Scott Bender

you normally bit. period a that I approach I you're would get budget six a months, the as time in say visibility think that period, when reset visibility January of frame, but you contracts over

have much me what September, again idea a better of and ask think expect. in I I'll So can we

David Anderson

the could If of over shift Spoolable just lot side. I on a Makes sense.

than the guess I normalized you're far So kind kind and originally this It you're of sounds talking going EBITDA you're It kind quarter. were -- quarter. thinking. next the impressive margins margins are in numbers of forward, XXs like of were like bit sounds

what's changed. Just curious

for business had months. four obviously the You've now

is are managing it that on So, something you different? Are outlook seeing the on more changed opportunity terms what's in the it term? -- better? you cost of Is curious longer just Just side? margins

Scott Bender

Well, us it. TS morning. is I'm is with managing managing it this not TS and

Scott TS, comment clear that. is to would maybe So a of I Bender. This like want reflection a about be there? not you to offer

should this first it the second also month, to in Yeah, too think the into a I robust quarter, to The and business. David, I And through owned business a accounting-related et read And FlexSteel had margins because had you we the call, quarter it first last change FlexSteel much is quarter TS. is very David. Cactus on lot of, lot of just for had a think, went reported a cetera. inventory, as adjustments not

So on expectations. the value a competitive business are cylinders. firing all Scott we on got that go-forward phenomenal customer is a the basis, really Business It's towards term, differentiated, guided meaningful very has margin near The advantage. and got XX-plus-percent has proposition.

So a I Scott, little hope that provides overview. of bit anything else? an you

Scott Bender

he's confident saying That TS's that polite margins. maintain he can way of those

David Anderson

XX-plus, all right.

So on know contracts... to you look, me pricing I'm dance and on I don't a talk about this want let talk know little going question about you bit to want details -- I don't here. to

Scott Bender

me about David. it, ask Don't

David Anderson

come repriced as you come not just and I'm answer it to frame your asking curious since there agreements? it. gets down a Spoolable general I'm not order if volume here. and March. ask Is job bit I'm to under but to much -- rule obviously, typically about have I'm is want a steel your job going I'm of customers every asking quarter? this a Does prices this thumb quite question loose this how you products. on because question, sure very to how is

business curious, I'm this of inventory perspective. part that is out. getting expensive speaking, said that from it just You generally that work does how just

Scott Bender

just help a So, TS David, me little bit. let

that is the two questions first The You Is orders. here, how customers have right? place right?

David Anderson

That's correct.

Scott Bender

in Are how place advance they you orders? far asking

David Anderson

there kind of relates it is It's year, more as I'm trying timing and as it. kind down through, of a loosely of you of much does how sort I kind to every just at of once like gets like loose look agreement, it it roll prices much a of with the to correcting frame trying pricing, like understand. you like, guess, like just which plucking they to kind understand have, that as steel

Scott Bender

please. Okay. TS,

And clearly stepping benefit proposition. it Yeah. David, E&P has operators -- costs. just really a FlexSteel proposition based And value competition. safety as They back, differentiated The pretty one of the we supply were big is a on focus had that track got differentiate just safety quality. value failure on got picture, we have we've of the FlexSteel has one and versus chain a the departments. their And and business tight side to not manage tremendous operating result, history business. in through ourselves managing is able field a in is never the the quality, things We've the record.

should wallet up an answer X% mind just The I other right that than or operator of make in keep services products part, just of before X% share question your is less and you of about Spoolable spend.

purchased So it's the -- run sort we so say, All background. it's We do milk that's through and a all to operators length customers. our like David. of as offer services delivery place as order products just products really we now to callouts, milk both services. it deliver well a that a And and run,

within the to that's to time manage three within So that And we five services sometimes days, site products the be get seven in days. are of customer that how all required most we and say business. to

David Anderson

much. Appreciate very it. you Thank

Operator

Thank you. next for One moment call. our

Hallead Our next from Benchmark. of comes question Kurt

Kurt Hallead

good morning. Hey,

Scott Bender

Good How Kurt. morning, are you?

Kurt Hallead

doing? Good, Scott. How Thanks. you are

Scott Bender

great. I’m Thanks.

Kurt Hallead

Awesome.

kind Scott, in Pressure that referenced of lag in Spoolable would the the impact activity. hey, business slowdown you in of release, or Technologies terms the press revenue So, Control

expect that going that of one. Control see the decline you see Pressure was sort quarter? of same it indicated two, of magnitude kind dynamic. do would Spoolable in curious in I So the business of like third the Is question Question to kind lag? that just a of is quarter number And you number that kind

Scott Bender

increasing can if the in of your it's mic. in you, case I still of incorrect. still team of Maybe can In is job Okay. TS, didn't even -- say market have if probably that Spoolables, wallet. what characterize terms in open is jump TS' of you you'll I the terms and their And correctly. penetration you And share

that a So to And drill penetration, that wells share a Is is changes we're their TS and to now in is, wallet and percent impacted. their wells business wells of to position online. and this put they market of extent, be need tell But in to going think you due to look, answered I I has think is feeling right for is wallet is penetration complete to what versus don't and revenue going people question market that it, that our increase fair, The that. compensate lag. for TS?

Right, offered share into I company I'd are the one have a to wallet we just we products just comment. our that continue no Unlike that. customer's just value unique a or in are I to market some the sort Spoolable parts with And just But of add just value the want lever won't to that customers. disagree increasing of the provide multiple of chain. is Kurt, penetration the have offered I’d part a lever you, -- background of you products Scott. at chain, of to that quick

mean pad. the used when Pipe-Under-Pad, under So they're that it's is what constructing I by

movements. But that is that particularly installed value the regard, down the count much and will pretty it rig will revenue much business in pretty also mirror the And then, the further -- bookings chain.

the the when segments. tank that's tank central another takeaway line, battery, the central to then And the tank instance, that's you there battery connect you connect disposal water well battery segment. pad segment. you lines, the another for So And when central the then midstream to to when multiple so are connect

customer of continued is in to they how say what that one share we and going the growing, and last wallet and by here, in it's in the start to been hopefully we we FlexSteel they that these using on us the performing And usually XX continue see then grow grow realized that when to of hopefully, operation. their it's the in well get is of proposition to other value segments, is team our come. the mean is well and to service terms then of when and years will penetration, there And it on, segments begin how years I've continue, performs, is

Kurt Hallead

That's East, the in that. great. Control. of, made for the and kind Pressure follow-up you Scott, you Middle see comment what Fantastic. Appreciate about rollout

sometime late to mince words that I it revenue late beyond? think referenced 'XX you want XXXX any kind think XXXX. but generate you when start is and the Or you opportunity, revenue? I don't incremental real Again, mentioned, you'll of incremental to is

Scott Bender

[indiscernible] means? Tell me what incremental

Kurt Hallead

the How Is revenue in that Middle the about East? just growing really... base

Scott Bender

is and XXXX accelerate 'XX expectation thereafter. end of then that will the see you'll into at Our it and

Kurt Hallead

Okay, got me. you. That’s All right, appreciate that. all for

Operator

Thank question. moment for you. our One next

comes Pant Saurabh of next question Our from of America. Bank

Saurabh Pant

Good morning. good Hi, morning, Scott.

Scott Bender

are How you? morning. Good

Saurabh Pant

to for maybe sticking the Thanks of Good. Spoolable Scott, asking. side and things.

I that, think of that of clarify lag heard that. those but impacted, is you Kurt's but is offset of share heard to yes, wallet I when you wanted Just can kind -- help I Spoolables kind not in on your answer words, to question, think because a think there penetration I

couple and over Spoolable's of So a at quarters? revenues should we realistic think that there's scenario next the might all not fall scenario a that

Scott Bender

Well, know. quarter or a you we know provide as guidance you don't beyond never

Saurabh Pant

Yeah.

Scott Bender

on So guidance only you, really would I the I quarter. offer next like think, to

So I is more think be maintain that this that QX precise, going and levels. that that our can't rig to guidance stands, activity I level but... sorry, I'm despite falling their they're count

Saurabh Pant

production and batteries Yeah. the No, that. and central that production way rig carry tank you Scott, lag, to we think obviously, completions completions, should onwards, the understand the I about right. count just that lags lag, and the how But totally

we Is lag? So nine Is how conceptually, think it that? just it what kind six of than a months? could lag it should about? we Is different Or just about think that months?

Yeah. may? this I is if Saurabh, TS. Scott,

Scott Bender

Sure.

Yeah.

customers little of So sort future, do it's was the on is bit answer look, It's -- incredibly to the it the a you especially raised. a before question, to it hard, take budget think, predicting incredibly disclaimer. impossible different spirit in segments an the spend question of But I'll I'll right? I task. just to the hard accurately, I predict give Saurabh, answer

think seen three we'd I to lag. -- like four-month a we've historically,

the with Pipe-Under-Pad cross We're products, penetration having we're meetings sell different in of And but in that customers we segment. we're see with to -- where types see having Cactus beginning the line penetration pipe we're capabilities And as customers. well. multiple with increased beginning to more Cactus

time, be historically, so may a shorter about months. It may little historically longer where but be little four this to It it's this a that's it's been time. been. And three

Saurabh Pant

right, that's price is cost quick Spoolables, working, But help it's follow-up give leverage, then at product of steel can in it's helpful. like terms steel, the your Anything a costs? a on things variable operating very of value-based should No, all know can lines. you Okay. And those big you I about you don't we think pricing. cost, fixed but along a side in cost, how

Steve Tadlock

Saurabh, is percent to like of that. Steve. We're as keep any We're Yes. a anything -- We'd kind into not it the providing material reason. to guidance for ourselves cost this competitive or like

Saurabh Pant

the for I’ll thanks it answers. turn guys, Okay back.

Operator

Alan Thank I closing the like remarks. Instructions] to would conference you. further for now turn time. [Operator back am at Boyd I questions this no to showing

Alan Boyd

forward appreciate everyone you speaking and We look to next with joining today quarter.

Scott Bender

Thanks. Have a good day, everybody.

Operator

for today's conference. concludes you participating. Thank This

You disconnect. may now

Cactus (WHD) 8 Aug 232023 Q2 Earnings call transcript