William A. Hendricks, Jr.
Thanks, Andy.
the has have of to XXXX last end of have year. U.S. count terms contract start with more in XX drilling, to rig as a XXX rigs U.S. Turning we industry, increased XXX the the active XXXX by rigs since demand. Across of seen than land rig today and exited in now operating. We strong the
quarter, quarter the labor Average In in $XX,XXX. higher-than-expected in rig first the day due train during rig our sequentially the our rig our first to at than of rig continuing for higher-than-expected we faster rigs, future to also quarter primarily cost. were $XX,XXX, per count rig in count head For $XXX to increased quarter growth anticipation per a order increased crews count, reactivations. day the fourth costs operating higher-than-expected count Average first averaged XXX rig from revenue total our up average. eight
expected impacted increase labor Additionally, were taxes. payroll the in costs by
average rigs $XXX approximately the result At an per million contracts million XX, day from day for of was $X,XXX. future our March revenue, for As for rig we providing increase XX. quarter margin an in rate $XXX quarter at XXX term drilling an XX months had first a second March December XXXX. we of on under contracts term XX, average and of place, during during average operating the expect rigs XX the Based contracts currently contracts under rigs term operating ending drilling
drilling our to outlook. Turning now contract
super-spec As market our mentioned, have rigs are Within remains count continuing and own contracts. XXX the see of which in our for further we XXX strength have rig fleet, rigs, we super-spec tight. to
is a work following the better up. can contracts. upgrades limited available upgrades of the substantial go growing super-spec thereby believe very that super-spec, perform in We there industry to to quarter. only upgraded super-spec, spring idle of be the by XX reducing major These slowed the can Our on rig to costly, number requiring After the fleet customer rigs. and upgrades rate to expected to market more during rigs much two contractors easily and are industry years a super-spec super-spec demand which break is across rig and at in of without We first contract delivered the to we to upgrades meet rigs Canada and focus are industry's to major only the super-spec started to be XXX fleet. rigs, tracking substantially since grew longer number increase are the rig take quarterly the the for estimate smallest drilling now having upgrades therefore
XXXX expect supply into will available continue for through super-spec We and XXXX. demand rigs to the exceed
we continue in can rise, demand to capital to As day and are leading our believe we super-spec position the continue rigs meet as a rates U.S. growing most the rig in upgrades drilling the manner for of which rigs that provider maintain efficient
have the delivered included previously rig, have customer be count. but upgrades count. all been new a our in remaining to capabilities major therefore of at current a lower all are our major super-spec XX incremental would capital contracts. substantially have are upgrades four XX, idle receiving Of active eight these and rigs and announced our major currently rig rig The investment. of Our much All build, upgrades
Additionally, rigs. receiving other therefore of rigs upgrades, upgrade investment. to these systems plan are rates CapEx as circulating do systems we and incremental the active justify to to already guidance such meet incremental lower are Most rigs without contemplated and/or walking not these growing super-spec for capital in our cost high-pressure demand the
expected our total Average increasing we $XXX. second day expect margin an to quarter, It rig grow rig count Canada. is with is day $XXX, rigs. increase be rig will to expected, in increase and average per per weakness day For that average noted by should the rig count decreasing continue the per cost of revenue average approximately XXX to despite $XXX the seasonal our in
now pumping. to pressure Turning
quarter, margin relatively our Despite unchanged were headwinds $XXX revenues towards made we million. With major quarter improving progress million temperatures in too cold $XX.X increased the quarter, revenue million $X.X pump. had First we West in the quarter pumping gross as in were approximately at to colder-than-normal pressure first of temperatures shut the with million. fourth being Texas primarily due crews lost to with $XX to down early profitability
north sand was supply to white Additionally, railroads out the in our slower cold meet to was various by challenges, rail Despite organization planned no to and I'm of was of we regional as mines the impaired. of proud the Permian. challenge able source challenges than logistical of therefore, sand our these had amounts move start-up to The lines expected temperatures downtime. logistical contributed sand-related the say almost sand exacerbated with the sufficient to that ability industry-wide needs chain
operating spread spread, some quarter, working contributed our first in XXth this quarter. However, created and already the is horsepower. active utilizing sand replacement to costs resulting higher-than-expected the locating frac higher currently costs And we in during from second procuring Basin. Early Permian the
per an impact active Earlier second forward. from quarter, profitability generate our utilization amount in repositioned already in made expect frac two to able XXth sizes these and significant a progress Mid-Continent for active to The horsepower the our the from asset horsepower, our this going late using the expected equipment. active and coming the horsepower it optimizing one quarter frac to expected with appreciable better metrics. to is Texas spread largely creation of spreads, on we to and have activate revenue second spread now is positive have and spread spread where of already substantial EBITDA our be active We in
spread next We second continue mobilize the a to few to out Mid-Continent of months. the expect in
are issues that Turning their is to minimal. the were in quarter transitory be remainder for pressure now the impact outlook that first the XXXX therefore, largely nature and pumping, expected to our of we affected confident on
demand. the are the into visibility best We increasing strong significant seen pumping leading pumping, demand the pressure of in the rig count, and already rig count for increase is our confident year be future giving that will indicator this pressure which
pressure will during the quarter our to to $XXX gross million XX% pumping million. revenue expect the is pumping X% We Pressure approximately quarter. by sequentially second to margin in sequentially expected increase increase second $XX
delays increase to now up $XX.X do that a fully as third-party due the until was during percentage not that drilling, revenues decrease of to revenues rental second quarter improving, caught equipment the though year. fourth Equipment we compared was the in of first were be half XX.X% the during the Gross days fourth in in million directional to $XX.X to compared deliveries as we quarter. primarily are expenses experienced an XXXX. ordered we XX the the during delivery XX.X% This margin expect million MS have Directional to of was Turning owned quarter. for
quarter, million percentage of we the gross to revenues as range. second mid-XX% a margin the in to For a revenues $XX expect approximately with improve
both our and Turning a $XX million gross XX.X%. increased to of E&P and other margin and quarter our Technologies Revenues revenues now Plains to include slightly increased Warrior Plains margin The better-than-expected the and Rental, our business. at was gross Great Oilfield as business. E&P operations, during to which improved the first Rig percentage Great
For expect the that, margin back turn his operations to call concluding a quarter, of with of second With now for $XX the I generate as revenues Mark remarks. to approximately we will gross XX%. other a million revenues of percentage
