NexTier Oilfield Solutions (NEX)

Michael Sabella VP, IR
Robert Drummond CEO
Kenneth Pucheu CFO
Arun Jayaram JP Morgan
Dan Kutz Morgan Stanley
Derek Podhaizer Barclays
Stephen Gengaro Stifel
Call transcript
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Good morning, and welcome to the NexTier Oilfield Solutions First Quarter 2022 Conference Call.

As a reminder, today's call is being recorded. [Operator Instructions].

For opening remarks and introductions, I would like to turn the call over to Mike Sabella, Vice President of Investor Relations for NexTier. Please go ahead, sir.

Michael Sabella

operator. you, Thank and call everyone, NexTier Solutions Oilfield Good discuss welcome our conference to results. first earnings morning, to quarter XXXX today and General President Drummond, Pucheu, and are Executive Counsel. McDonald, me Kevin Officer Kenneth Officer; Chief and Administrative Chief Officer; Financial With Chief Robert

forward-looking company's that posted get the the we section afternoon, is I currently issued the attention started, in Investor of contained we like to yesterday disclaimer Before your the in Relations direct website. would to statements news release which

no this which call that NexTier's filed or forward-looking except differ or securities materially statements. to to forward-looking our Our on on to you as these beyond risks includes subsequently risk morning speak expressed our are company's and implied those predictions Form statements annual filings. by XX-K, from These which to the Form be report the statements reports in cause or actual outlook control, and results publicly statements of laws. required Exchange company's of may could in obligation uncertainties, undertake statements statements. other under applicable are Securities to factors and expectations, and are subject the many future, considered disclosure any Commission refer forward-looking XX-Q forward-looking quarterly We revise regarding We update which

Additionally, our comments today financial non-GAAP also include measures.

Officer quarter for website. first most Drummond, turn GAAP our Executive of measures financial I'll call the in XXXX, posted comparable earnings to directly to details the and a release the NexTier. Robert that, reconciliation Additional are included which Chief With our over on of is

Robert Drummond

for joining thanks, and call. the Mike, everyone, you, Thank

of natural fallout its oil outlook model domestic to the of the global already unprecedented undersupplied shale public from birth what and from compounded gas Europe, the structural The by rising a policy shock saw complexity unfriendly from shift layer business industry The first of since Meanwhile, years pressures. COVID-related of our exposed was quarter production perhaps initiatives, recovering was geopolitical by was than in and to market. ago. of underinvestment gas the further long-term a market balancing commodity tensions the oil decade downside U.S. in an adding more the in largest

energy Russia gas a higher much apparent. global discussed satisfy world in importance While and will to the we while Near energy of including long invaded believe transition shale's order U.S. term, term, oil taming was goal. Ukraine, growing remains need natural and social global Even market expansion, production before inflation. demand energy the

energy address play avoiding NexTier's cost-effective for key service company us need There to shale to renewed and growing clear. priority. a producers. American Security, the the production a in growth these supplier the U.S. a National role natural and unmistakably position for a for oil Domestically, producers shale most premier independence energy is makes security a is land a concerns. is U.S. critical that Now global way crisis We energy as appreciation believe likely is gas is well completion critical

our financial and while outlook structural update. our helped performance, since strategy previous to these advance strengthening NexTier, For considerably have our shifts our

confident as the we Permian has are largest NexTier market to in We improving the the right backdrop. strategy the fully capitalize fleet. right Basin time by on have share the active at measured

is increase the integrated that current our highly in the by environment. efficiency we can capacity-constrained Our model customers has service which our of valued proven operations,

versus fuel largest cost which in offers savings supplier powered of the conventional a significant current while land, frac at we're also lowering Additionally, equipment diesel-powered commodity gas emissions. prices, equipment natural U.S.

today, have high-quality we Additionally, employees. COVID. our own recovery economic X,XXX recovery the from helped NexTier has nearly And

we goals jobs oil oil natural help part U.S. a our where believe In industry most efficient is number the NexTier achieve to economy our the well their security. sector the of American a this and small customers We positioned of well-paying sustainable national short, healthy to manner. just is domestic in the gas significant critical and gas provides capital and the in a and larger are industry economy. supporting

Now first our results. to quarter

for quarter clearly that the experienced winter in seasonal we considering even accelerated momentum late further, has results factors Our demonstrate the and weather. when XXXX

For outstanding the operations throughout did Customer overall the the job revenue fourth and was teams answering quarter, growth our consecutive our significantly an support strong quarter, call. demand and market. outplaced the

the initiatives, QX. recovery further to discussed fleet Our resulted X growth mostly and of deployment previously integration from compared price efforts additional

the with activity of fleet fleet to simul-frac As planned, count already million. on expansion Total XX reconfiguration on our again Tier NexHub outpaced evidence had NexTier by We the first with grew quarter, strategy between we our expectations record. provided guidance of on the and frac the we these minimal was integration. downtime deployed strong million And integrated NexTier commodities, strength quarter. Adjusted I'm team of of quarter were center. quarter. in delivered our exiting for result portfolio. growth relative of as XX% trajectory on the our average sequentially of our to the of technology of operations we dual sand-related fuel culminated able initial services towards achieved. growth EBITDA efforts in as fleets. the very QX base digital performance We Revenue fleets the revenue operational once frac March, additional entire $XXX quarter, saw operated model best fleets. our zipper XX to $XX activated has fleets a and that And exit deployed the a pleased The the and during X to very horsepower end planned, another We the was across where supported of further execute

the month annualized of momentum, quarter per with reaching our As the expected, exited fleet double-digit for we EBITDA goal deployed March. during easily adjusted

NexTier Importantly, the net reported quarter, for income. positive consecutive second

from dedication cost outlook. we're We QX And to with quarter look consistently a our capital. performance with in to excited benefits our generate now recover the the the increasing recognizing as much right We our the increasingly and on about by grow momentum end recovery COVID-related customers as our in returns accelerated pricing we started over QX. exit. pricing Our relative expected the tangible its another accelerating that with XXXX step in Net to returns pleased concessions above by economic fleets quarter frac while are direction performance, time more pricing impact that short to first average our marked see as XXXX we of supply. progressed, conviction as have rise to are initiatives will net XX% of

has in capital widely insufficient to completion recovery believed newbuilds investment cases, commodity be equipment, to newbuilds in very of year And in with into is more the function the And recovery progressed, continue Importantly, over to frac line utilized as pricing that previous to for come expected significant currently relative be demand. accelerating used become meet a a are now services supply-demand to with essentially utilization equipment equipment. balance order recommissioned in the well conventional of idle underlying frac this and XXXX for accepted need the is are rising the many remaining tight to of is today. all while expectations. pricing upgrade this market has Pricing XX% view frac being

have relative diesel to has to equipment pricing existing tiers to a risen. fuel even already tight ability prices prices we The higher. the bottlenecks relative premium are have complicate commodity primary frac natural incremental conventional We But as supply diesel has more supply diesel prices, natural impacting both with natural on maintain fleet costs as capital believe followed discipline, can also maintenance year, with even fleets by emissions. as fleet chain. of significantly fleet gas At chain cost even by to for leading-edge current than while the an of industry's diesel fuel X pricing have Adding believe equipment. gas-powered $XX capacity risen cost a as frac XXXX each prices per conventional on as source, we Beyond our fleets believe inflation has gas Tier fleet lower we further widened risen. as a the fuel dual diesel could half much million lowering fuel our only risen crude fuel displacing

by arbitrage offering that the relative we field cost customers the option to believe in proprietary technology to other overall enables the options in business cost market. addition more Our our fuel Power treatment can diesel gas Solutions fuel supercharge for displacing lowest

gas-powered Our Power tight free cycle this cycle. this it's expect of Solutions than each constrained and the we a land utilization, equipment and challenges, supply demand cash the in in customers, are business services we natural strong is years, early market macro returns believe in our generating service summary, the is efficient the triple cyclical challenging operations. high raising High already and in unique very stronger for U.S. cycle And on are labor frac position, sustainable no and are chain while backdrop for in a placed and to investments size this In been our a and premium carries flow counter XXXX. good in different. production outlook is nearly

help virtual March, well suite that services completion NexTier the proven our operation. to efficiency improve customers during demonstrated As an integrated our Day can is Investor we our in of integration entire We've early machine. the of

NexHub There pump we fleet. For Investor record opportunity a type NexHub during of available growing can can see is considerably constrained The achieved between of list hours is site from win suite efficiency a of grows also that our show peers. NexTier value services their those digital replay our the March, on NexTier's capital tight that our environment. our integrated In had integrated from of of that fleet, record full by our company we in the integrated performance including examples efficiency a suite our integrated is believe supported we is customers by per the differentiates that Day, completion the have center. is investors. for The improve frac a that not of prove an times communication supply. tangible for package services of our our Integrating to more gains seamless help website. technology well a

is to frac primary strives the one of production. that industry as the grow believe We U.S. shale to bottlenecks continue

position. deploy like-minded to customers cash was digital that flow by is ahead competitive us Our center to great been were NexTier carried We've of to helping uses service the our strategy positive to of give very assets. remains to that highly with the of we NexHub in efficient period momentum more We able operations. integrated free the technology the in also to demand robust. gives data, real-time integrate strong exiting excited our NexHub allowing platform performance fleets completion with a by seasonally efficient the more partner visualize us our benefit customer edge our which lines prove our our services. entered ability customers plan. QX, QX, and and can allow multiple sustainable, in We're from We a raising

we success. Our integrated operating our what deployed adding X Tier model fleet at our converted Consistent is QX, the we fleet. another of said previously, dual end deployed to fuel XXth with

adding our with to we back customers our our by horsepower our own into this this the have than looking from done have both while what simul-frac find. said, investors the we improve we not that older pricing and by versus We market. count Demand also difficult for horsepower belief serve own our having improve and fleets plans validate While higher the to market believe continued reallocating better time, we into deploy efficiency conversations to we're our at our diesel time. do efficiency are customers equipment fleet ways and had frac previously is can additional this improving operations. additional to any At

pass net in from service of While This pricing the our through to operations advancements is largely for generate returns a of the to through frac and Cost below lows, latest inflation the of inflation would restoring believe us and team, agreements with pricing be occurs. as profitability our we our challenge initiatives. it pre-Covid significantly this pre-COVID remains cost inflation, major ability pass considerably impact concessions working levels cost lows. customers has above started generation result give technology from above pricing but We continues pandemic recover corresponding to and capital. to our are pandemic-related

of soon next pricing too leading slowdown of to will creation our free versus of the exceed new The of provided services in risen step allow margins high level are healthy exceed and our rest over this range edge to on previously our strategy Given of and the economic $XXX the likely at acceleration on in a repairing to holiday the capacity industry end term. value it's capital. improve, of prior towards EBITDA $XXX we invested returns on cycles a Investor Still, potential expect generating our magnitude industry for Day. pricing, capital we our coupled current necessary this for that remains to QX that is has with trust be NexTier cost critical coming million more And backdrop that return in we a the our investor cycle to year, cash announced long budget investments for natural the the the that additions. priority. customer Nevertheless, exhaust. flow and measure the returns our equipment sustainable see gas-powered adjusted year's million our builds And even about top will and focused that oilfield as XXXX,

this we're without the of any planning what even profitability our growth to beyond potential upside see to capital half deploying in additional year. first continue We

half million. $XX guidance CapEx at is to first Our unchanged $XXX million

dual conversion should delivering completed margin prices. year, leading Our the program largely half be first of fuel X accretion Tier edge this at incremental by

excess to We to Solutions in fleet returns seeing. continue flow position tripling committed and cash in that remain elevated XXXX We we're second million continue for size quality, accelerating the existing rising should $XXX from progresses. in the in of we the free service The will business of we'll invest by flow believe cash as end given year cash result and to flow of operations invest lower in we're the our year can now strong business, of the performance generate this and nearly service free half in We XXXX. maintain ensure combination to that our to beyond. Power our CapEx

free liquidity our For cash XXXX, this we to net flow continue reduce bolster leverage. to and use plan to

through the with highest building balance remain will with strong We priority return cycle and opportunities towards maintaining projects. to afford allocation us will strategy optionality and a us that flexible in give the our a capital sheet thereafter significant invest

be to highly right have focused we're discuss excited we see We execution. in the now results. to at the believe continue about Kenny to going our pass call market. and to We first the we quarter right strategy the on what time, I'm

Kenneth Pucheu

Robert. Thanks,

we line with million capacity revenue relative million product gross deployed revenue of additional quarter sequential $XXX to QX, fourth $XXX to a in First XX% totaled net of compared pricing and higher result sales the increase quarter. was The higher while guidance. also and in previous

first, attributed assets the in show the the following: profitability this our quarter. to on in results. pricing the in EBITDA year our outpaced EBITDA just gains Total significantly of included operating both to consecutive the QX Completions million QX. revenues sale started was $XX and business market however, Our fourth in up current $X put in of compares we Revenue in Well The our Construction adjusted This $XX improved the Services EBITDA can and for quarter. be to $XX Intervention segments. adjusted million improvement result the adjusted in core initiatives first million million. Recall, net quarter versus place

adjusted of the a as $XXX chain-related $XXX absorption further to we approximately sequential is late our disruptions, quarter, In segment, fourth $XXX our of the particularly and fixed integrate million quarter. impacting increase $XX first million services drive continue in profit finally, our winter segment Completion supply compared quarter totaled in moved the result gross strong Services as results. to we And cost in see XX%. compared a fourth to revenue million, totaled weather. challenges million growth, Completion fleets positively Services to QX holiday of frac from our benefit around more Second, start-up

fourth fleets. revenue the an X XX an adjusted the first we first other first XX of the the profit $X million. Intervention $XX million. were million. deployed first average and $X for gross fleets. comp EBITDA million compared Construction quarter, items include million quarter, EBITDA $XX $X management of completion million, first exited Well When our $XX that adjustments in had $XX nonrecurring for we stock We segment, excluding $XX the was material. million, of to Services In adjustments Adjusted deployed totaled net a with quarter quarter quarter of In During the XX% totaling totaled net increase quarter. adjustments quarter Management with was million. in

during improved adjustments an net the are related. that backdrop acquired of depths equity the we COVID. in the Substantially performance with of a financial we reserve $X the gain the Approximately XXXX reserve earn-out enhanced and market approximately increased of increase First, remainder $X on management of and million. Alamo, the for total the cash earn-out by monetization investment million offsetting was

compared administrative to expense the general $XX million quarter. totaled fourth and quarter $XX million selling, First in

Excluding management to totaled $X $XX in million of adjusted SG&A expense million quarter. million, $XX prior adjustments net compared the

exited cash, at We prior $XXX available first million in sheet. improvement quarter the the quarter. to down $XXX liquidity from fourth in million Turning total the approximately the the balance end We of quarter. $XXX million an $XXX the from million, first with with exited of quarter

$XXX obligations. to debt which comprised million fund $XXX at headwind first We from quarter. continued in million and remainder the debt the of operating Net will flow the quarter we our used facility, available $XXX funding and and cash We million, well first QX improved as a expect deferred have accelerated during discounts was the quarter be financing cash growth the net was slow $XX the was debt cash flow working asset-based at capital the and of no liquidity of QX. to Our late headwinds a normal quarter quarter, credit of payments. $XXX offset was top these debt end have strong capital in need where capital. of cash, of quarter, in million was the we maturities. the increase $XXX end year, excluding an Working and seasonal million, activity Cash QX near-term the $XX as the approximately to end throughout for profitability of Total million positive from finance remains undrawn. line anticipate costs the lease of million of free at accelerating working function were and in flow free which fourth on by the partially

Solutions in first in million investments cash Tier $XX business. dual during Our quarter. cash mostly fuel flow This used $X CapEx was resulted for first the our by X of activities and maintenance upgrades, free the driven Power million investing quarter, overall positive in

outlook. the on Now

We of QX are carries We pleased industry and quarter supply the successfully trajectory constraints. with into QX. restart which strong the the exit, worked over early through chain

in at of deployed fifth resulting be In white impact space XX efforts as expected We and agreements, economics. mark deployed resets outlook less basins will achieve total between In better revenue market-beating in issues. transitory least assumes an would fleets significant With million addition, $XXX with some quarterly increase least from per $XX XX% our our moved fleet at we EBITDA of EBITDA assume straight adjusted customers million. capture continued integration and QX at expect fleets on our created we top of This to upgraded which quarter sequentially, QX growth, of in will to annualized able these we QX. calendar least expansion, see to and QX. adjusted coupled average margin we line fleet-level on QX, pricing

similar to model goals our continue position efficiency. our in partner are aligned solid improve with to to integrated market will customers with We service that use

also end X X fund to We Tier QX. will business, and fleet anticipate the will in the phase conclusion investments $XXX fuel. our doubling million million $X strategic and CapEx for the total half Solutions lines. by per frac continue fleet $X the to of Power $X.X diesel to convert and of CapEx Tier product dual This approximately year service per in our comprised our next half nonfrac maintenance between our of of per million of HX fund CapEx completion $XX first to It of capacity million first million of

will triple we levels. mentioned business this earlier, relative current nearly Robert size year-end the to by As of

then step to anticipate half. CapEx down second our will the continue in We

as year. of just will fleet. will risen improvements, million in profitability driven expect cash priority, with in we free coming Although maintenance is as CapEx customers' to Free And and sustainability costs a generate in capital our conversion dual to broader tightens. maintenance $XXX the remains operating free remains Operational increase the and availability working we are flow flow well-maintained headwinds XXXX of continue service accelerating economy, cash and as cycle, This priority cash conclusion ensure as list, for total quality rising prices the frac top has now and our they are flow in are the a in frac we to a XXXX, equipment of acceleration efficiency current the through and to through we year-over-year. priority fuel sustainability excess progress subside. top by current particularly at and program commodity invest

We to continue a demonstrate partnership with NexTier the value customers. our to of

important supply the dynamics our than today. more believe as Given never demand is well and prices, the been as it partnership elevated has tight commodity we

excited are at in services. appears a our of it the start for with be to closing land recovery I'll Robert turn remarks. what to U.S. back positioning now multiyear oilfield We

Robert Drummond

with Thanks, Kenny. key to I takeaways. want few a close

in supply years. make on Geopolitical with over risk not expansion help and to First, and transition gas policy shale U.S. just winner. a should with next we natural and public global oil see several U.S. the energy importance energy energy security growing respect shale cyclical focusing domestic

land and largest count completion the top the Permian, deployed U.S. this reality. by very of key positioned companies new the play in role a are global X to company we in one fleet completion well As in

NexTier, tightness the free been And which Investor including in excellence. that. service the doubled never past our we model year the their on and be can at see from supply integrated is our demonstrate capital has help continue Alamo demand substantial does efficiency. We've over revenue equipment, offering the Second, out solution our And March tripled acquisition. Day, our finally, it more laid legacy our NexTier we important a customers revenue, through improve our believe labor, to our to at chain, in own viewed cycle. differentiated Considering platform website. strategy nearly the cash to alone flow We and operational

we returns free returns a we'd We years. our cash over a generate to of capital, continue sheet. like strong lines flow up improving to Thank expect you. Q&A. that, fully intend free see to the balance and cash cost to flow several now responsibly While while With to we above substantial level next for maintaining open the balance


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

Stephen Gengaro

Two things for me.

The first the just is last of should when those sort highlighted of included mentioned half was in of million we sort Solutions as just et we to think think activity we much year think time of $X the think of about Analyst of per benefits think mile the through add of that And in -- your logistics, that the things and EBITDA Analyst Day profitability the fleet I fleet? relative Day the over about that, and about first that. your I of this per pricing per Power you incremental fleet, about been you one progression in How integration could how cetera. of materializing is offerings, your has in wireline, profitability

Robert Drummond

the if part I Solutions, sand use or per $X bit there we we're to full And it U.S. that customer and for appreciate we could comments, last the some Steve. where question, wireline including the is that that said fleets a And looking Yes, million integrated frac around around the and noted of solution we so. customer that Power have, dynamic would from providing much around And fleet. operation. say last-mile as of call, that in as over said in can our we've logistics been and the opportunities quarter that look, we I moving you be

us moving But So constant to going sufficient, and fleet on target, say we're I as it's time keeping nicely that the focus be all million is Power getting of fully I'd up Solutions. it, QX. that little package, bit it some think. don't really customers constraints the that first curve frac the their $X prevalent do time. year both have and to a where integrated mess that primarily of one We of we want those to moving more example, And mentioned sand, becoming that own of capacity necessarily. other holding cases a That's that logistics. us a having can good for in sand the business of customers the triple see things more job we on the who we with for the We by we by back But do we're the And before end happening that to in we and double supply passes. now. have going are end

component. So that. as we dual they that process on obviously, part roll Solutions, day-to-day the out it, capacity of straight and And adds growing our we're mile of one go to big of of and a for Power wireline fleets a fuel last logistics aspects

Stephen Gengaro

That’s the of I pricing conversations just having customers, we think with about in think, obviously, light you’re dynamics. – And industry very very tight sort as helpful color. Great. the of

How some in assets does as these – how on the as a the Or how the should fleet? quarterly about reset the mentioned, process far think is of of of timing discussions. think, pricing that You across I field work that or we getting repriced? – quarterly

Robert Drummond

you When about around think conditions addressed Yes. the out our one the price. terms coming that depths the and kind of we of things not COVID contracts, was downturn, first just of of the

happen happen that what’s us going going had what to to demand. put that place when with the that, capacity was think and to supply the time market so things those enabled between to out in over that of I the of time guess inflation. And unbalanced in period we Some terms was during leaked didn’t have or with

really – it it of So are large that company say us a benefits us to significantly our think for that And would and service a way. majority, I our large I be behooves customers mean, customer contracts it and both I majority both way.


is The Morgan. question next from Arun with Jayaram JP

Arun Jayaram

get wanted fleet. deployed the more bit to I details little on a

added as you you and the of give you details zipper Tier You horsepower fuel more average Can in little fleet amount simul the XX fourth well us a love in a to quarter, was you as bit of did count the frac your mentioned a XX field? on XQ, get kind reconfiguration number of and -- how horsepower frac. there per by fleet between the the fleet dual in X increased have

Robert Drummond

in I'm remember the of up to our Yes, horsepower talked over number we first, But say, want to fleet ask as to had going take I about you the number Day, then call fleet lot that. if out we gone last additional to a the Investor per reconfigured less Kenny much our at quarters bit, little in as we pointed and And maybe a XX,XXX that put we market. able were had this dedicated bit fleets horsepower to fleet. simul-frac a little

that fleet. that's be we dynamic a at per not look as think constantly necessarily we profitability horsepower, just rebalancing per that I So will

us you would So Kenny, add efficient. color that like makes and customers our to become to that, more please?

Kenneth Pucheu

HX if last you increased year, we in So and simul-frac pretty activity. QX of a our number remember, fleets formed of and sizable

how fleets depending mentioned, So process. then you is from of on might down fleets reconfiguration our or had go also through we to And as simul-frac we some a in and what just operations. how Robert just through going in go simul-frac you're more QX or seeing less maintenance from some us, now zipper see zipper efficiencies we

Robert Drummond

we're need pointed as which our where using that the is and it hourly very hard to lot we fully have out working much in a fleet, efficiency support really pretty our we that now. we to for And of we're is of records And March, last get kind deployed recommissioning, of question, your part in anything company. the

Arun Jayaram

Any you're month I'd in know of per fleet, pushing the trending? it, that about on good that efficiency $XX fleet you're had an about improvement broader month, we obviously, I you hear XQ pumping call March. thinking sense operating, versus you call love if profitability, thoughts trends assume sand powers EBITDA Robert, a think Great. about the million per XXX-something some the guys see Maybe earlier how the to in a how efficiency per a give trended? And little in us has the part million bit in faced But hours is maybe fleet it, a industry number annualized fleet, logistics. $XX of seeing. Great. I kind XQ? in good quarter, of

Robert Drummond

been the of very our upper you're we making of Both out performance thing work, it a couple whole about your you for of portfolio right work in and business mean, divisions a are to But efficient your a just In to got make which a But how how way of DUCs of you have And day it's every focus and the the schedule whole got have key run you north park. month. the being of how it's portfolio end the this a have not full working. focused that about XXX that customer hours our happened is knocking into. and you happen. extremely metric fleet I do. Yes, that the fleet records we've on or about is of a the to location, fast go also how crews towards. at move does frac

those how of the every is completion you So So for us, do you things same integrated? what the thing, think. we workflow the to big Are is schedule all which well deal part services a are your and at aligned all site? then of about exactly

just improving your upside at performing thing that is fleets, There's would portfolio more say from And have that coordinated. I difficult -- lot the number is schedule company now. we that a performing a a he's for of and up And a large somebody whole your are we're do to on then and for It's getting So today. other level. a to doing lot demand where ready the a supply today go, necessarily doesn't the single just best getting a able do pad. space. in schedule in of frac be to looking If white keep to here pop areas of pads not customer without

all up. but in balancing bit giant amount. things those frac, So we're to drive to more there's efficiency a of it's be But not done


with Podhaizer Barclays. Derek from is question next The

Derek Podhaizer

talked net pricing about XXXX. exit increased the So XX% XXXX you to

math, of the year. of fleet back fair this out, we you does you for last $X and per Going sound just that implies million that around Day, guys? on net wondered Analyst that by number pricing I increase $XX the laid reaching EBITDA your the $X.X I million take to XX% end million assuming thoughts year that exited that to

Kenneth Pucheu

the to. to converted generate fleets economics would to mid-cycle and starting fleet-level we leading-edge And we've to at is, The that show a our to we try a and I in I which just fleet-level booked in Day. what up made and have see company try And you're the alluding returns. of kind in that generate try Investor you fleet should different look, think to we comparison, comparatively, able fact our show economics. fleet say now, be you're better at fleet or investments So look is that And look better overall better you that if results. to

what we margin look cycle of basis if on a basis, that at those went thinking on if at you per surpass the or even fleet to So life things. a we're we're return you it going or is because a that look mid-cycle through

We have fleet. a much enhanced

with and integration, creating value we're also in improved dual have fuel We savings arbitrage. fuel our

Derek Podhaizer

sense. That makes Okay.

into thoughts absorbed concerns Going you're just simul-frac count already out unlock the quickly. investors' able to to to fleets stacked? or added your a currently the current like that that fleets how you anything certain to of that What is on is, around in to because fleet Just where love entering do the be for are would you unlock X going do capacity is potentially frac. do comes to as context back anything swage the seems maybe to whole. market peers expect rather that see Can other high-level reconfiguring it you with to that warm talk many we there about to some hear market zipper deployed how

just some on color that. So love

Robert Drummond

a that's we $XX,XXX And would a Investor on during bit the profitability. Yes, our to the the fleet every cash want an good that less do a on in was to frac is Day, you edge, also horsepower in I reason to that would it numbers think simul-frac adapting of per to down it's question. downturn, simul-frac it's in X.X% average showing I had be -- what on pretty operating different. A was little fleet fleet think, fleet to I leading do do double were of old downturn during many that. was and location size-wise something us, the And maximize the make spend that part can we than beginning. some during that the But a you point And is that we say and what like cycle. job. of cases, is the our it or more But average you competitors deployed to not could on were help

be if mid-XXXs be next in end design, I'm mean, when able time. a are purpose took chain something running is chain market So it and that's someone a about could measurement I that the I get that's And of of new But be suffering to But that jobs think struggling maybe create to it frac now. that will when keep think about the I almost were capacity. in going think bit projections needs. think well There's It's it more get the XXX our case. year, fleet current a order the no across you done. up challenges matter just frees back much from even as somebody the and probably we is their not that little CapEx we we the is going And for take fleet for count. I But And into fleet, trying level. will of the the to I that fit that bit year that before to to we designing this into supply capacity. horsepower. fleet sure the happening to could don't maintenance right And more a supply it put going a happen made being then fleets if market, maximum would that, actual think account market. on, like put say new that at you supply the from what. the

baked you and that's think reason I I adamant and of lot of been that hope when well to of supply already sort the in sort was comes XXXX, demand the question. XXXX a so So as frac. that about we've saying it


Morgan [Operator Instructions] Kutz is Dan next question Stanley. from The with

Dan Kutz

So the basins. across all the given I add, and you kind major to just of broad guys country wanted kind of

kind in activity outsized the Just Permian. you're seeing to strength addition kind shifts of gas-based wondering basins notable seeing any of if the you in trends? Are in

you've response you guess could in then? any been seeing highlight assets if trends that of wondering there? if And also Just any shifting And... you're I your

Robert Drummond

they fleets think them of would market. good challenge would our sand I their through of Permian, the a Look, to where into backwards balance. moving that of basins That had are, And Permian I a well-publicized like the we the all think sand people moved looking frac QX. in competitors I some are, the our last preferentially of first in a the in more looking other necessarily on competitors are of lot And quarter, that the pretty fleet I out to And was of dynamically. of some went gotten a say, situation the been of QX. that like lot in sand XX% where basins question. created turmoil That's the to -- And say just we point in say their mobile middle best. the keep the part around where during place economics and has couldn't fleet I'd fleets means macro

bit run rate. like already established because reasons is being the of kind of that the next that for we've of One we of strong QX most

not where is prices need front look good is to up of going the obviously goes So I Marcellus think But and that amount in you gas of gas where their continues. this the that, right kind are ability end the things the were of But now. the environment very and at regulatory takeaway about point fast, some limits back when very, talking dynamic around do of fixed to not to operators kind to the perfectly is that activity And now keep I'd to alive basins it we with it the those of great company. the the is in U.S. do other that outlook although will there's as coming very Permian continue. just compete a probably good the we that, the gets for the that basins yes, basin. the can spot dynamics and vary get oil it. the don't Permian, gas price of in widely. well It's still breakeven that some say their and out love Permian But And

So yes, scenario. dynamic a it's

Dan Kutz

you that big guys Understood. have really completions then are prioritizing year. on are what balance front, up your consistent risk biggest And guys is seeing saying allocation that sheet through I tight. capital a been helpful. strength great on seems solid is strong a it be that That's what of market. -- a but in concerns notion, that priority in so shaping Robert to you Kenny, to and guess that But cycle, It the kind of XXXX are kind terms momentum things like the seems like of be so we're could in

Robert Drummond

the for the it we way the the the just just that, and to everything I supply term demand and side commitment short for we the to me, have market issues don't would $XXX that like model chain product supply all we risk in because got pretty I a else the outside Supply-demand only on deal you negative us could And frac taking demand or for as for of the on the side being so. with reason think, there's the Well, mostly even I see every with year scenarios, think is. global that's disciplined, that's be can chance the imply of almost related to the operators have do, and all have demonstrated But likely don't [SPR] releasing last even the enough plus. it's oil that assumptions oversupply most globally. capital

or up that in capital, is that and substantially our a bit going harvest ourselves downturn internal just would is natural mode at future. financially during I took accretive -- and evolving is in to list, be and projects what right that it's little is have eFrac a cost sub zero, Tier I once on of -- a our same in X aggressively adoption electrical the have returns And get for emissions. evolving. get which around top power on fuel power gets cyclically investment of eFrac for and around the debt but because Solutions to be And of we us, have slow our the gas is our and the you would been above say we risk the kind fuel, position for it's measured eFrac, So on in you we the is dual return evolving. so set eFrac that also on net Technically, Power capital we're to of that the say a materializing, which drivers invest that And savings invested get early driven cycle, and lower counter the ROI. that

equipment dual of converting better that already you're share lion's Tier market. return had fuel with a you in that when profile X the much the with get You

kind in. of the be think the couple we it's really the of that how we're cash to So got we a going I coming to us, the walk deal flow next spot with for that years, way that's the flush over good think of line and bottom


reached end would for to session. Mr. like the I of and have Ladies the we gentlemen, the Drummond closing Robert turn to remarks. question-and-answer back call

Robert Drummond

call about excited built Thank our want I to look, the And NexTier. and you in proud into in interest conclusion, We today now, lead the participating appreciate the NexTier team just much excellence. coming we've you. to Gary. very commitment thank your to this in very and all their of you, cycle. Thank team for very I'm right We're company


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

You now disconnect. may