DRQ Dril-Quip

Blake DeBerry CEO & Director
Raj Kumar CFO & VP
Daniel Burke Johnson Rice & Company
Call transcript
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Good day and thank you for standing by. Welcome to Drill-Quip Second Quarter 2021 Fireside Chat. At this time all participants' lines are open. [Operator Instructions]. I would now like to hand the call over to your speaker today. Mr. Burke. Daniel ahead. go Please

Daniel Burke

Kumar. want phone everyone happy or CEO this CFO Drill-Quip I the thanks discussion to opportunity to our via Management, host Raj and DeBerry the webcast. Blake guys. to morning. And joining for welcome conversation. Drill-Quip introduce Welcome, Good And I'm

Blake DeBerry

Good Daniel. morning

Daniel Burke

Yeah, good morning.

Raj Kumar

me, for Hi, having thanks Daniel.

Daniel Burke

I let just Yeah, we want right plunge questions hand to likewise. delving evening. released over Blake some results into yesterday second to in, the key before make the and to quarter in you on jump But the floor ask sure before I want to here me highlight you and guys right themes start you, specifics. emphasize with any you

Blake DeBerry

strategy, laid help pillars believe we're Sure, that And we company strategy peer-to-peer the the really getting out those outlined several Proserv we've is consolidation the which agreement. Daniel. initiatives, think actually or success is agreement, signed collaboration. Look, by I you future. will quarter second our our of include strategic successful if the during the be in main did all And on our we've peer-to-peer thing we first

to get generally to several to in lot new serial a is pretty first of tool of of lends that very starting business, the difficult we've the which which downhole focused to new to And lot a and we're that do very traction, products. been so on that that we Further, run well, adoption Our And improvement somebody are spent get the number time quarter, business we've that. is in now is product. itself it on adoptions, thing we've those more business, significantly doing gaining see try intently time. and product is one, had most with effort pleased energy

productivity And for on gain. XXXX. way to identified million And lastly, that so success a meeting our And we $XX well we're had there. we've productivity gain

So on success trying the to balance, things quarter. we're that we're do, strategically, the having within

Daniel Burke

Okay, appreciate that, Blake. Thanks.

then a the QX release. and catalyzed me me Let start ahead of questions really couple go with let by

Let's a a handful your and if updates highlight update trend I and updates. flow worthwhile little order target start you A bit take XXXX with high those second can year-over-year level, on on thought an margin, free to of that's outlook bit one included revenue, you a of cash targets. guys maybe be

Blake DeBerry


XXXX. On side, to originally forecast be revenue the XXXX we to similar

slightly. think we down just I guided that

was bit result half themselves but starting the we So down just had that our That's just little a in bookings of the on the lower really line. the a top to quarter, revenue really back in it. manifest is that XXXX of

back the bookings things the As we're level and should of see the we revenue increase, our here, hopeful year improvement half which in around. turning in for,

had a side, a like subsea to of booked and in range quarter, we million. but On $XX million $XX QX bookings on of so in compare $XX had But pretty for we good our million, booking QX $XX million there you the just right down if booking, $XX two we booking control the base in QX systems. million fairway to trees

large the ropes bookings QX, QX. So we just baseline in really in XX one-time kind million QX was dope the $XX bookings open there net and booked no of so

sure year our and quarter. cash free trending that will think pretty how On forward. flow quarter-on-quarter target seeing them bookings, questions area. significant we good a improvement we that's in in and flow, so we on happy more for to end so better so than We're expected that take significantly free bookings had I And pleased about by cash exceed a going

Daniel Burke

Blake. it. rundown Got helpful Thanks. a That's

Can QX strong. watch in before about 'XX QX for rebound QX? you element say you And So have a an will mentioned timing as there in orders mentioned, a to expectation that you be conviction? any in you that the giving is out into correspondingly what's talk orders we strong that with you where in visibility orders, dip see let's particular could

Blake DeBerry

Yeah, sure.

of of specifically, its visibility, the we it So hands qualitative, some have order what can on in say we CRM, that, some drill into some we environment. I in And up, you qualitative, first mean, a more opportunities and particularly going seeing that availability inventory take do quantitative of QX independent of I plays new put in see we we're XXXX. some call of you're could we our more I'm to the customers just is some when well, some now. hey, have coming book, what look our heart and starting the go and on our with something But things then in something see its that's to

starting the basis, there's are appear. opportunities on our activity are And be I segmented a increased or in regional than past. And to and upside where areas we've than that's So more if what those there's markets, just neutral. look quite there seen down candid, at different

hope on in bookings, think and to see into on then And mid in QX some of million to that Looking $XX the that to our I going kind QX, of then we're forward, million range. $XX continue QX, bookings similar momentum is where XXXX. see to QX we

Daniel Burke

I lean crack million range, $XX to of for then, of COVID at moment. per quarter or on kind that mean, onset of really, million a think of just out Any reason, to you've been Okay, you type again, the hopeful the do since $XX and you'll times? XXXX

Blake DeBerry

a looking now optimistic, lot off our point. improvement start Right just but of to just market. - at that in number, XXXX $XX off going end top call range a of right of we're quarter. the kind be million million seeing expect to $XX on bookings QX saying on we So to is ready consistent not We're now, I'm we're the be QX think think to number we would the I jump a ended

that on mostly in leasing activity of are contract all us. for to that more year, they're making And seeing bodes going the and some, I the end by so I under think subscribed that, rig well Gulf rigs. and out came Transocean you're be the recently even getting the the think the contractors commentary said rigs

Daniel Burke

Got dip margins, XXX it. about, like QX Also products margins, to did points about wanted talk sequentially. basis about

I to back mentioned and the You to But mix mix on some to in last quarter, I as do cost a reason. the back margins of the on affirm out ground firm harkening mentioned that's up likely you'd claw case expect you line. want half to back improving margin the and programs. still guess your year,

Blake DeBerry

to about talk that? - Mark want Yeah, you Raj,

Raj Kumar

thanks. that, take I'll Yeah, Blake

margins AF Impact we the about QX, in to Daniel, talked So margin. Global

that, - consider we the a in we goods impact that around had year the about that accrued to that that we operation for So Global. it XXX to had our in that our part to XG was ago, fact on leased and cost basis lease had we forward a accrue sold. as and revenue revenue some an nature of leasing And, accounted for impact QX. for of points because our impact be leasing I'd terminated half impacted AF this of margins, of

saw issues, are us. going What getting mix issues indicator and they're our they're going in the go I And mix always actually, means to customers some pipe up. that's the we connectors QX, to had it is, and story mix here, for inventory. run back also it's say connector when a a ordered work, good pipe We but, leading down the wellhead

us to be soon help And have inventories going with our to forward. to see we that's replenished. And are going those mix going wellhead

terms second terms downhole out that some results mix is positive up if to up that, have some evidently, our had seeing overall, and stabilization of That I to to we're a work into So year, see QX, our results see and I be a margin up project that QX. There there. in outsourcing, voted, I QX And you would should if teens think QX say if with in tools you I looked EBITDA, lot should and could the a about in I forward. mix. high and situation basis, look QX would on we sharing continue. half process. And firm project, have expect controls in would in of guide our of there going this I QX. as normalized improve EBITDA we've of But be if was mixed we're very have headwinds a may good firming doing very expect in I be headwind there our in I with

Daniel Burke

that's Okay, helpful.

you just received earnings has and about, you going more effort with has that an the and this XX% on your think the for surcharge pressures, companies here input you can season that potential been elements be rising recurring of easy a the can And them. disclosure be to cost a with by release orders one proactive of theme, manage costs, implement? how impose to interesting essentially will to been So how customers how that's and talked well

Blake DeBerry

customers up, materials. that's in our think on not XXXX, So of it's Daniel, likes putting price kind that's not cost I I and the same going reality the of it, demand saw and while on price and margin this the accept and XXXX, base. increase, the just that may cost themselves, because pressure recall, XXXX, XXXX raw on in, they're seeing back of cost are transportation going and the market. understanding I of same are reality based, we pushing, again customers we're it's it's increase nobody in think materials and our they like our pressures that while what's And increase,

that I expect in pushback too So regard. don't much

Daniel Burke

element existing now, see you more material And pricing freight? What of What steel against basic pricing, have in terms if do raw do a any, exposure, then, of maybe question. your and backlog? the you

Blake DeBerry

us up of And kind long-term now, why there. in great the organization there's for in the we XXXX, blended a our longer contracts. is The cycle nature, transportation that is chain pushing number that really really fortunate out right that, stood in and we're and has backlog, elements supply we as ability So our XX% at we to done then thing that's the material so really ahead, have plan increase. business there, our about look job securing a of

$X,XXX, have though come as for we contracts container, pushing we're contracts So and Asia, an up, through. for $XXXXX have surcharge to are container to have $X,XXX those coming still expenses But as so example. $X,XXX paying high we right now, as those freight to we're, this additional where even why that's rates, through cover end container rates a because from they transportation

Daniel Burke

Got it.

strategically the Okay. what for the plans thinking And cancellation about they've itself? your sourcing, But QX lease your of AF forge lease, results. that options earlier, mentioned you for that are with the the are forge and impact canceled then of the now Global Raj, on the what

Raj Kumar

mitigated to is - we forge Blake of and have kind this supply sources were we chain that supporting the us stack they step we've immediate pivot multiple they of very from get domestic a risk that organization, suppliers, warm Global the ensuring to other successful ability So, forge. been to been completely. - so And to was AF and the only our quickly supplies. from right forged able get supply now, have were supplies, from talked very about perspective. a We domestic in forge prior

So From too number actually million million having be stalking day, it's being this be $XX maybe the the to about the in forge conversations to operating we concerned were we the now. we're of not a We're a cost forge $XXX,XXX negligible, perspective, when $XX warm will anywhere operators not that with right close back month. a of to going is that. saw

some I'm of are on issue year. that with the And proceeding. those looking closure some to should Some and the forge this looking by to end to confident get we are buy conversations lease, the

Daniel Burke

kind few just for made margins stay We you moment. to that's you were adjusted related litigation revisit ago. clarity of going wanted little get had some and about talked stuff? and there. just high forward. to Okay, about you the talking in out teens a of I Raj talking a a to you company-wide of which high wanted moments one helpful, normalize I comment margins with about burden EBITDA margins, Global you've things the means once G&A stay, normalize, against incremental this And get just AF teens EBITDA Are to

Raj Kumar

the we're roost about we to and steady mean, When Blake's absolutely yeah, And back I'm steady get right So I state, right state talking February normalized, now. Daniel. order, to now. comments, once earlier is to right nowhere near that's lower coming

should we near us, on behind expect ago. that, back us level, Once For headwind been we we But - the maybe talking the yes, we putting get when that side, start years four we in levels year. to when some three past we've the that to nowhere are could And, additional a that been litigation we're normalizes year mid to this to I mid-teens saw, activity have to sorry, that's over us. experienced we've costs, where teens. for high us but what be

perspective, to to teens So we once up EBITDA. the of with get sort up to easily I very of would high that normalize, trending the should in be going we terms mid expect

Daniel Burke

Okay, that's helpful context.

And be clear, a well back as cleaning one, experiencing of and of specials, so getting to more top kind some robust, up this it's maybe you're up year. as to the


looking mean, you to margin have scenarios, element cost And, in changes are to that implemented, that that, guys million could to company. cost year? the million, frankly, for $XX I also that structure envision an Let's see. is QX way update, to savings $XX again, you progression would on grew at that you're result the your any the the there well, further this

Raj Kumar

going get very it's recovery is position DNA we're $X in transformational, to the our once sit, lot good, underway, Daniel, of are next pull right that the flex adding to And had that on every where the outlook you're about year. productivity back, now, of savings. we have we target run terms we we're position we costs, for to costs there, stability our we'll I out to So structural of get changes, level to at now, it first to And we leverage when Obviously, of positioned call think XX% if call close any to probably to activity ready $XX transformational on structure. million take have million looking are that to is into that the leverage this what But dollar have are way costs, because in the I overtime activity look to like we're we'll we look have. against anticipating get we a output. the we are the we to have rate, to efficient talked position, be in evaluated exceeded The we of at the in market comes think We and now. a seen have view $X structural context. terms improvements, more it the well at But we be and manufacturing, I bookings, strong some advantage we the three be And transformational to you've we some past are look and that calling changes a maintain you need in able well in that what had cost right or good to cost of productivity you're we'll variable levels, years, do we're do of evaluate our and additional terms what what now, operating it's, seeing that we recovery. as we right spent. Being poised now, focused where XX% that of the in of think always recovery. fact very our constantly

Daniel Burke

Got it.

opening start questions commercial previously, and the a Let with comments. in side of couple the Blake, We then me just pivot on mentioned you business. the really ask something your

significant. some opportunity peer size first a via could any signed to way incremental related sales and up or Is consolidation the you on color maybe the wellheads it Your agreement under collaboration can mentioned sounds all timeline cut you like and of frame provide the integrated equipment, that there within the you strategy, for agreement? and services be

Blake DeBerry

provision with team pleased and one is really and and liner The I'm with of agreement. we Certainly, reach our so the tubular wellheads, and it hangers an agreement grids, connectors. and subsea is pipes signed for

to up they're to developments. to comparing to one going it's mean, to year. pretty the now sure. year to that the work extent starting subsea future. Daniel then together opportunities. of so, have integrated by our business, the in we next it's several and some year just this I access guess, be play early And particularly previously the think give And opportunity it, I end I didn't is way is I markets think I end we're then successful, to the successful, that's is going there's there's to one meaningful that of success are for or in be that likely wellhead this to teams comes But it us going and Drill-Quip frame out that significant think

Daniel Burke

e-Series Okay, connector you to success, maybe of specifically the VXTe, that's in IIe, as mentioned some technologies, the initially. on BigBore, helpful. the booking and the seen think And release just press highlight And the generally, well, you've yesterday I successes some you've had then afternoon, VXTe. DXe highlight more

for it point? opportunities press or on thinking of Your deployment the there was product release that sort project first timeline beyond and mentioned -

Blake DeBerry

Sure. It's quarter one pleased But good things of about. been new extremely it's a for products. I'm the

or the a what with we've I Xpak a, multi-year contract it's DE clear major just Brazilian that And hanger, DE Xpak think liner is signed liner that's pretty this system. hanger So is. for the NOC,

DE be suppliers us an even by Schlumberger, So for operator. to will use Halliburton turnkey like and arrangement the coming this is this to Xpak get

they structure. we're think IIe, quarter. now that's have has last DE. DXe then we announced standard de HX optimistic in a to So and years Xpak one's profile is yet. high BigBore it's thing tender wellhead And we wellhead IIe time the our fatigue a wellhead closely but has when connector big fatigue. a Norway, think with Brazil BigBore BigBore value subtle two the one, are that's we probably. large the could profile big rig standardize very second four to this the another looking and This the has a profile resistance. got our ran order the including at start. we real that But And the and savings the BigBore that we length I a and wellhead the quarter, IIe And they because DXe of wellheads one But a we're and longer to IOC's little XX big, profile don't traditional there, so ran part on is And an on part rigs have very stay consolidating the different magnitude the that's well that very understand. cost on and water has the great BigBore have that connector, connector. And top of DXe over for to of is of this you to than contract it segment NOC the IIe, a their been extended time that XX win different But on we I first more out same and shallow on starting the seeing current facto IIe, profile it looking is wheel. stay are the realize meaningful they're short very, time of on and on that, the the was amount of to like skews in buying from a

the facto interface the So decided to a they BOP just significant the stack. somebody bought de adoption a but a standard it's it's change of a to product of because to not wellhead

deal. big a that's So

it Specifically we a with puts prospect requires ahead inventory and VXTe another suitable tree. the they have Walter just buys to on opportunity the a spreading them they completion for drill, run these are they right and treat trees when X. and April oil gas and to wells the and and run run development in if do VXTe subsea the go is water

said opportunity So resolved. just back that we'll next this this several of an every we year the successful us. have That run a the they the early had till so grow that time and one we tree at step get are for year, well, pressure during serial to well they I'm VXTe of majors end VXTe, we've got number run that hopeful and had behind lot was lawsuit that lawsuit, on

so VXTe reengaging minimum fully we're on back think with getting board strategy. with our has are We back. potel on marketing They're and I [ph] track come

from standpoint. product, it So time carbon footprint a cost is a meaningful and

Daniel Burke

again, and Obviously, me had Blake, on let Well, downhole pretty pivot it it. QX the strong over tools. Got side, staying QX of a to well. as really top good business had commercial a

year-over-year, these to can XX% structural the the me portion related So revenue a to your the the you've into then I comp know catch understand disrupted help understand understand you've help is of drivers, But sustain any me half this in what made before. touched looking better is help this XXXX, revenue me year-over-year portion well up whether some you that year. up about but higher and changes second as of run business kind rate of on

Blake DeBerry

a for about only business. also Drill-Quip, that, And have an technology. So we group. But leadership leadership part bit Tools that's we've with more also this in the time not of some several of regions changed have we've new it's focus. really increase it little there's did small catch it, we our to XXXX. up his a new we operate, the geographic in in over where Downhole model But operating from bring made We the of very changes

with key and these improve areas, done, chain on costs, stocking And what we The improved supply areas we're said, we've And looked and other was honestly we're underperforming. quite did closed East, so a where because programs, to are we've at that areas Latin and some some margins really business. we lower it we left we businesses better Middle the thing distraction. focus going And is to America which there. we offshore is our our

So specifically you the have a business you the get don't sell if And you from don't competitive it's now. that downhole more tools, we're inventory, hangers business. inventory, much liner

right quality. place our more we've it. much service And maniacally so in got improve we're up now focused initiatives to in quality, we've we service built that competitive are our being and on And inventory

peer-to-peer we've year, on. to that's so more of that that increasing we're be course will and and grow activity, but just structural, just hangers liner seeing to things help business. also right, the those those seems provided things helped always peer And the continue are And over

Daniel Burke

then transition the sort number of on few a commercial over but it. energy have does also the questions remain Got again, your And topic. last you that front, calls, of guys it felt main

let to So straightforward, the look you by More and your the customers, one. convey design the reception tried add me when what's to of at you message green campaign, been like there?

Blake DeBerry

Yeah, design so, we is focus campaign we R&D ties our all so new a by together for that green the really developed. put together products

about I've concept I you think challenged want I structurally drill equipment permanent So how that changes our to talked savings. engineers them wells provide I to this develop cost the before customers our with of,

that can I to I the have time. things install, way the so you can eliminate is I do can reduce And that

was offshore footprint. I an So we realized more carbon time reduce shifted time. has to saving environment, And on steel, footprint reduce what significant and carbon the spread focus and impact I as a

important, of And vessels really an of about the because from perspective it's changed offshore a but kind so important, also and number investment, that way that from time we carbon perspective, working really return significant. IRR on because think R&D is both the

savings added to haven't preliminary we the of VXTe So products. we because we of everything an it, change significant in. the designing and installing represents think put in just these a numbers, And on finer it a really carbon point of footprint R&D just are started tree, about what's doing kind the how

here, So million the conservative the metric to addition in of and But to that's I'm days is a saved VXTe well. you of going low give That's to tons side. XXXX number five carbon about $X a probably cost. per

our for it's meaningful So pretty customers.

Daniel Burke

mentioned you've capture the of or of that any those opportunities, the out Got that has around And described horizon. kind step actual on marketplace opportunities some Drill-Quip commercial Blake some then it. emerge to adjacencies, are Alright. And and geothermal. ability you've but also the into carbon

Blake DeBerry

for year things capture are capture to of an carbon already projects been to the bid successful a big and we our certainly think couple plan coming we're focused these not things, have is one Every got And understand So you energy successful, player be do, really to geothermal have we you adjacent active that requirements we're I are time we that we've up the more transition. a are going what and be do next little But systems development some for of is the focus become We're was past just work tunes capture. meet the strategic, out to go tree fine area sales that we our where this spending ad here. CCUS our now whereas we're area of guys and that and to bid carbon what in more an money on hoc carbon or really on. kind planning opportunities geothermal projects. going an is a look bit requirements people, customers to R&D are where these

Daniel Burke

Raj, And won't pivot me being comments a the but we data then point. given with back targets. and free normalized company EBITDA on mid see have year, of and margin a teens bit wanted of ambition sort sort you cash for to hint might I of Okay, your relevant to a this high margins

some on where thoughts flow from cash share you the over intermediate could margin trend be or that, but So could could free term? building

Raj Kumar


beginning the year, revenue. And I the we of X%. free the Daniel that our on cash margin margin free when at using expect guided we So cash said I'm we flow margin, used the to would word flow be

Just to be clear on that.

with look progress target in If XXXX. that the we've will been at made we've exceed you we year-to-date, how

this headwinds next capital. next right will dip we very market I recover, back to and close caution XX% transitionary, these and into And get see XX% year, the approach my working see year, to the by back some starting should slight expect we quickly. yield But we the to to half starting headwinds, target, very, at double close fact, be is and end expect going to to get so a of that me that good come confident we to where that only In I year, in are year, to that could to maybe of backlog is XXXX. build, this next we're I'm then orders starting as we

go the you've If very to a CapEx that see quickly very, back a plus you comment can yield impact, and XX at it's on taxes my in basis. on some have easily you cash got there, EBITDA, normalized very you you land

Daniel Burke

influencing referring Got working of some it. of cash. And you're free the capital elements Raj, to

this do to maybe looks seems you like follow-up pretty AP elevated, anticipating progress face the so what made in or can see guys it the order and side the in and improvement face there trend? side. levels But on a you of have And of, is inventory the rising bit there, the still ability a the AR good there year

Raj Kumar

that's a let capital. so talk good point. working about Daniel, Yeah, me

So AR me the side, and first, talk the AR the we've on made AP about side. progress on let on the

AR coordination the process the improvements, then in of a U.S. lot terms of went domestically initially collections, into process improvements out lot On in and did regions the rolled side, of efforts, invoicing turnaround, and come customer, and with the meeting for now. results bear mean, year payment into terms, last this And seeing something us. worked that's we on play the of we're et I is that fruit cetera. coming to a

us basically. cetera, vendors lot that we've a side, of And us recently we chain AP allow to a terms to terms. the terms vendor up, stood better et our in helped done of done fewer relationship group lot have management, payment that's we've supply a going with On with is deeper

end on focused come help of that for substitution come inventory with we've of so need in only year, some we're a to us bookings the the the Now, a shifting these this at consignment, is need it, maniacally you highlighted, we've do side. we looked to our can turn us we've inventory, done much, of at to lot day, to it are efforts yes, on all, inventory. the booking vendors in, But to problem the

going adding And of So capital look if second at bookings terms I out, inventory year going working to half us to help to down. wind is turning clip faster we should a that start start to in improve, too next as rate. the

Daniel Burke

free But here. are in a little latest of your the popular Okay, on another after the and or with kind grow have marketplace leads what us the a do million question well cash are are couple recovery question allocation a they M&A bit you got transitions of thoughts capital on like to to receding Drill-Quip and cash it. as quarters they flow, scenario? balance opportunities And then, a of $XXX sheet, as recurring

Raj Kumar

business from the about So I I at very you looking allocation look and way I can pathway run think the can was perspective. we to the now leasing understand, ROIC It a been on examples forge, in ROI talk the Forge, but a think we right. way very where we're cash, our show, of our see can that, of that's help termination, focus, global I about return first one the we invested as capital us an is is basically focus can there's terms to to it capital discussion going final very,

the Proserv, business. our Another are it example to fees, where, can with talk increases on I like collaborating our is, leverage and the areas controls these leverages ROIC

opportunities, there to doubt continues it, wide. M&A your the be spread to there problem on ask question bid having still about opportunities, the consolidation are opportunities, coming M&A we're So is, are the no

do this targets and marketplace. some deal we area, going us. said a One sheets find possible can also with energy started constrained, we're think to we us sort bit be transition our course the looking people make year, that look opportunities, and balance going where because now, to financially. in monitor from reasonable expect always what positioned lead we as well successful strategically, at may the more right to making is, very geothermal and of focus over for areas aspect be in to valuation very - market should going terms just I sake carbon to in operationally, and product deal a for deal, to especially the of of of change, target participation that it's see may I suite, that, the our of ourselves we not sense sentiments that not shifted our to it the and area. get doing on for relates a in that capture at continue We a what's we And to We've be

Daniel Burke

are then markets The to a Okay, question, challenges a poised recur. unlikely away come levels far are growing, activity as off, up high back close are for got final to that and peak to maybe it. the maybe industry level. But peers you for And or growth.

a Drill-Quip. take maybe grow the for Blake, out at important look be of to me of up, most are the to and ways touched costs done admittedly, back You've sum lot as course I recite to And you Could we've number on conversation, through initiatives that them? the you to line. think a to guys, these kind it'd to but of helpful throughout go top you

Blake DeBerry

don't our set I back large downturn, Certainly, recall booking follow didn't right was which that orders, first think to customers be to million is little which a Petrobras, just $XXX the of on. the going think more those from we're going I expectation ultimately are conservative going a with are the anymore. see I'll happen to through they our before stage, let's

much and going it's you more have a we're to and call over to time order a or going call to them environment this we're think XX going contract, I type be it period. off wellheads XX where wall

so work have that, basic use done backs to bit of market. has the we didn't that market of add gives just strategic going win, bit, doubles we are previously outpace you on I help to of if And our little pillars market us believe and but access put our peer-to-peer opportunities and finer believe just And far, that the us we growth a and we've And a to that the couldn't almost a changed access to it bit so want little to. terminology opportunities. point

we when a see get next to years. starting where over few are downhole in get the tools levels, and about at And path peak is peak least getting acquired lot the adopted, worked activity we we track, towards so, reduction grow business of the its on, could different and a can where well on to heading of our wanting a installed the record that we're run, take more got from as more track and costs [technical footprint the the carbon traction products $XXX keeping new backlog, we we customers back All their revenue difficulty] advantage on now and savings XXXX, we've we've the that get to as company our positioned got that TIW low. million the was previous to that up we and in business it's more way

think could put remain top one say, the our to peers share going market can hey, few together, all I gain grow. people we're and to So margin but probably line flat, see going profile is improve. we're going that all that the of And we're through these the of you to

Daniel Burke

Got it.

there But summation, conclude Blake. was does good Again, was point. my that I good I a a are last like that finishing you'd thoughts or messages think that And think questions. Blake, that off to any share?

Blake DeBerry

say going I that how about the in probably XXXX, think should we're But pandemic is, the 'XX really I just be in we think up. were coming optimistic roads into there 'XX. bumps optimistic I some

Drill-Quip very to for think, what everything for are business. bring good our employees going and successful XXXX to forward. its lined its be shareholders. back going to I'm normal. to got has balance that's think things on encouraged We've returning I And I And up be

Daniel Burke

you, great. you, That's Blake. Raj. Thank Thank

nice will a I hope our have conclude you. think and weekend. then discussion Thank everybody does that

Blake DeBerry

Thank you, Daniel.

Raj Kumar

Thank Daniel. you,


calls. And conference participating. for this Thank concludes you today's

now may You disconnect.