William A. Hendricks, Jr.
rig for second Andy. quarter, drilling, In super-spec as to demand rigs contract increased by Thanks, remained during count XXX the our rigs seven strong. average
we per $XXX expectations increase average our per with sequential during in $X,XXX, results contract resulted per rig quarter from and in $XXX, increase Our larger average was revenue in in strength average margin per increase than super-spec continued day a second rigs. the day the in better day for day revenue expected expected average drilling rates day. a than due exceeded rig of a cost decrease rig was which rig to The per operating
At in quarter, we side, cost taxes that associated drilling items increase March transitory from day providing addition to $XXX an expenses. in second the of million in in XX, term second quarter contracts the rate positively revenue, benefited $XXX future we backlog for On our June rigs also million at contracts place, than revenue. have contracts decrease labor approximately payroll XX. drilling signed the under currently end of Based with impacted had term the we approximately XXX XX Since months XX, some expected average for costs day operating June drilling rigs on contracts XXXX. term future rate under expect the of ending in XX million contracts during average of providing more the third quarter, of during an the an $XXX XX we quarter, operating for from rigs and
have As million as we and are to additional late previous the fewer within the nine We the two and the and of year, Basin, we go with contracts is with upgrades, believe on major to work rates four Andy Since to The hand, These Permian these newly is have deeper we are be day major and second contracts. to rigs of of upgrades note expected of upgrade XXXX, the upgrades rigs $XX the back the four for favorable the each. rigs early is year and earlier, the deliver quarter, have are will two terms of expected and a delivered be also, early five this which contracts our that rigs upgrade of compelling average fleet, state for two important four-year economics. more into we these investment art of in due more end this required. and in approximately upgrade term, APEX-XK spend, to with XXXX. It and components APEX-PK delivered term. each will beginning an the major pay as the four-year all contracted rigs, capital increased signed to for have cost since compared customer with noted XXXX in
is Turning Across super-spec now which super the performed XXX rigs XXXX U.S. to Patterson-UTI are upgrades easy our approximately in the of contract drilling we the of market and estimate in our XXX leaders of outlook, industry, with the many were one there fleet. in spec-rigs XXXX.
the of a is of rigs differentials. about this to has through which pace pricing capability As super-spec understand the to at necessary the investment slowed. and delivered and rigs of the the super-spec contract have the has being first super-spec Permian the capability rig drilling in of only We recognize increased, amount from concerns We our customer that the market reach potential has to extent We've the XX upgraded estimate of tight. half for spent market upgraded significant community year, to industry, are been activity the rigs which to upgrade including base, one remains plans the broadest industry. very the risk time super-spec
demand quarter. signed the However, we number for of the will super-spec evidenced remain the strong expect by contracts of end rigs we since as
to extent attractive to contract upgrade capital possible continue terms. de-risk will the We additional rates and any through
average third day For the $XXX expect is cost $XXX revenue to of average day we continue expected grow will rig per third XXX to Average is per the count to expected approximately day. our rig rig per day per quarter, and an rigs. quarter, during increase increase to
legacy last what end count. these in the into our back XXXX. of the a in the older contracts, We and our rate high still add suggested this third to have of but in which roll-off is contracts. six rate current have actually one still market intend We to quarter extent masked year, rates third than XXXX increases the towards seeing early five to We rigs rig fourth increases we increase expire the continued of are for day in more quarter, are half full the higher customers the in the by the Further significant looking by super-spec forward of quarter. in super-spec scheduled being of is day that expectation and expect the
pumping. pressure Turning now to
shortfall in $XX.X high our for expectations gross of short sites $XXX a to due was with of unexpectedly delays primarily operations. as the of quarter fell quarter pumping operational results The profit unrelated rate time and to well revenues at of multiple Our result the million million. idle
coal Our was some pressure oversupply mechanical impacted the holes a issues current challenges in the softer pressure to to at work our and for due numerous what versus which also wireline, market operations tubing, The demand, our believe pumping short the to times result fill term schedule. quarter we is customers' third-party late were with even for in held wells. in pumping ability of unexpected find
and taken believe and progress have disappointed the area spread to reduced is by end improve to fluid of one-third financial designs, We good of quarter the increased fluid we're year has of the the materials, in of and improved improvement use through used softening initiatives in and team We pumping, that the our ends we market ends, various through at progress. are the lower that ability making our each certain in new rebuild initiatives. technologies where this number of pressure life masked designs. per the end the utilization One performance fluid
XX two second and ended quarter, active quarter During spreads. the the we with frac activated spreads
contributed Our the during revenue XXth was of early activated in quarter. second the most and quarter spread
not quarter to revenues. and spread XXth was significantly reactivated second did the Our in contribute quarter, late therefore,
at additional not Given we term market this conditions, near do frac to time. plan reactivate spreads
pressure quarter, third decrease approximately gross pumping revenue expect decrease and to the we profit to X.X%. X% For
However, long-term, for the pumping worth counts demand. that we continued bodes have well it rig pressure discussed the is noting in the which over strength super-spec
million revenues million Turning during $XX.X now the to second to quarter, improved the such, quarter. activity $XX.X from first drilling, and directional during as increased
tools. be due key of However, negatively motors components to MWD proprietary incurred in the margins and our to downhole by third-party for rental delays impacted ongoing vendor continue delivery various expenses
of For to the third margin quarter, with quarter similar be expect gross XX%. profit approximately second a we revenues to the
to margin the third-party rental consequently, see cost expect We improvement from and late year. in expenses relief these
gross our margin Revenues increased and our second operations, Technologies, to Turning Rig to Warrior slightly a business. Rental, Plains, the quarter of as which million, E&P to $XX.X Oilfield the other now XX.X%. includes percentage and Great increased revenues during
For remarks. for quarter. we the similar expect I turn the to the his quarter, will to third call concluding results now second With Mark back that,
