Docoh
Loading...

SOI Solaris Oilfield Infrastructure

Participants
Yvonne Fletcher Senior Vice President of Investor Relations
Bill Zartler Chairman and Chief Executive Officer
Kyle Ramachandran President and Chief Financial Officer
George O’Leary TPH & Company
Jacob Lundberg Credit Suisse
Stephen Gengaro Stifel
John Hunter Cowen
Ian MacPherson Simmons
Chris Voie Wells Fargo
Ryan Pfingst B. Riley Securities
Call transcript
Due to licensing restrictions, you must log in to view earnings call transcripts.
Operator

Good morning, and welcome to the Solaris Oil Third Quarter 2020 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation, there will be opportunity to ask questions. Please note that this event is being recorded. I’d now like to turn the conference over to Ms. President Relations. Vice Senior Fletcher, of Investor Yvonne Please go ahead.

Yvonne Fletcher

our the quarter joined XXXX morning, Zartler; by and conference third to welcome and Bill CEO, am Good earnings Kyle Solaris call. Chairman and and President CFO, our Ramachandran. today I

earnings I’d unknown substitute presentation conference the useful will information can now comparable begin, risks. also issued you I’ll outline remind and refer GAAP Bill Exchange forward-looking comments reflect to may make this regarding today. or believe other contain to out call as available release cautionary and of which to GAAP. financial over our the release. a known The regarding of and of include results are forward-looking Such nature earnings I like like some standard number that Chairman press Please yesterday, recent be our should non-GAAP and be of that in for would future with statements Commission point accordance today’s a performance. to will our CEO, of in measures, our risks. our remarks we the those measures Before public Securities Reconciliations call with isolation our of discussion the considered we to along that turn filings with Zartler. not additional in in evaluating prepared and financial results release we statements

Bill Zartler

been in of of how challenging guidelines, you unprecedented this Thank industry employees. have missing service. changing the recognize to well a continuing changes without by work environment you joining and today. safety to has global saying our Yvonne, us I’d like provide beat first-in-class you, new rapidly customers, thank safe morning adapted pandemic immense and to our a to begin organizational downturn, an you, and for presence everyone I the this thank needs

generate it this to us you your This and cash what the continuing helped to community an proud free Thank investment this flexibility, and maintain the downturn, quite navigate debt can to and share other balance sheet. with while excited see side accomplish for a I’m commitment very on team hard work is efforts of Your again this. today. have I’m accomplishment.

turning third our Now to quarter results.

an and had of dividend, generated EBITDA approximately systems fully increase $XX despite in positive in our of paid Solaris challenging revenue at consecutive eighth seventh utilized million over our quarterly environment. adjusted cash the of flow quarter $X free million had XX% continued

the during to sharpest fully fully from up of was XX completions quarter, for prices returned to as the by in quarter. activity a the utilized systems XX% a lockdowns the third pullback the lifted in systems were quarter. driven utilized pandemic activity third primarily level This Basin, This modest in the saw first increased completions rebound XX recovered to related second Our the increase activity oil which was customers the increase modestly. second Permian drove quarter quarter, and in and

and Permian nearly trend While activity we’re Today, overall from average. benefited positioned in third higher the our slightly the are running well active in quarter. basins, in a than we quarter all this is

quarter drive Therefore, decline approach our to as holiday expect modestly. we be the could seasonal a we fourth flat However, impact year-end. could up activity

they should risk levels. taken fourth quarter some there prices have that We to also a remain is dip levels at crude downside these significant acknowledged recently, and activity

ours oil budgets production expressed of other crews industry as operators year, to well still and on add levels overall is $XX it if customers levels, crude activity, to year’s gas next frac Should as to expect have activities to early maintain to intentions increase the prices hold our in XXXX. While next a set call make closer we’d many level.

is increase the of level ultimate and unknown. still an pace the However,

economic As that certain examined likely is And flow. years will will continue prioritize crude volatility for sheets, pace as operational companies efficiencies is alike the on XXXX and operators most can many believe service most of activity recent focus for beyond. and and firmly the to they the maximize What successful. be plan We to a that policies ones operators increasing provide that companies more coming risk. the be digest that and recovery dividend M&A efficiencies balance cash will price remains

achieve maintenance, will use more predictive the One of less. with data the automate of do the and processes, with to goal the in further through end which of software and ways analytics efficiency machine essentially be learning utilize industry will using

frac quarter, achieve customers During for day sand sustained to for our the jobs. we multiple and over help new many records single of

Solaris developed from very safety improvement efficiency beginning. the in equipment was and with mind

this One gains beliefs provide efforts is reliable all core of coupled would next that in efficiency and information well-built goal. our our leap share automation with equipment the product enhancements R&D that to in of

in mean while chemicals. per number day, as which customer’s scaled supply was manage and well the chain stages, that our original an maintenance. of as suite stages customers us not time features a side efficiency solution, application These fingertips, pioneer between profit now perform into more sand also data which or for of also customers key has to Looking stage the into for our pumped provided analytics XXXX giving can In grown they’ve us it the Solaris just Solaris real time such event help analytics sand, average history, but software see XXXX, and enhancements preventative pump to developing example, and view at called we an a visibility. opportunities initially that with software our our bring data prop inventory Lens,

and the we We’re data expand systems evolve continuing analytics to provide. the capabilities

to of with of Lens We’ve provide data capital downturn, day, driven fraction a Services Amazon for generation. done to and faster with Web projects up with help cost a backbone server provide are times a us We’ve data We it Solaris have frac cost partnered time relational cash focus of continued per control databases. discipline, the R&D Amazon fully goals. and also improvements. these and of traditional software in recently closely these achieve to These events strict analytics trillions than we’ve investments storage and series the when on X,XXX making during integrated enable to worked able other the

capital when should expenditures we’ve end the the Our what business. fraction year million, were $X a near small years is building in of prior which spent we

We both eliminating primarily our the also are reducing level this vendors. non-essential and corporate working achieved costs the significantly, the second with in level. quarter Our headcount by at and down spend field

even to fantastic cash ways our more job, we done has forward. a quarter, third at focus going looking sure also we earn. we the And collect During shifted making team efficient can we get the

result, we’ve positive a free generation. cash of quarter As had another

million and consistent remains above having through paying or share, the approximately a $X.XX balance invest gone Our in per downturn shareholders in toughest our to despite continuing current cash dividend. history business the $XX industry’s

important As our the we the flexibility conservative cash cash business for and be measured to stated to before, us be excess our balance to avoid with build industry us. capital flow the that our short-term in our continues with approach need allocation the shareholders landscape. help and to our potentially to free changes in Sharing to sheet provide overreact

resource much normal. to about role on Solaris, core using in something increase in expect competitive to our amount the believe I’d in global help technology its to that a transition. learning gas on and picture been their how global is least as by footprint. This Solaris curve develop back Lastly, as and has Everything the possible. the continue that We to demand energy focused inception. and reserves, of cost offer since resource like what’s the energy to talked we’re some a and gets oil will about world customers, carbon oil gas is view thoughts remain economy We vital as using its

of Our as over hand both industry’s it improving site turn are safety carbon all work help the Lower in towards bet footprint carbon and things total will I wouldn’t achieve I’ll to well increasing With footprint. against that, automation, hand lower Kyle. to cost both. and and waste its ability lower reducing as well go cost energy, this that

Kyle Ramachandran

Thanks, everyone. Bill, and good morning,

contribute over increase million. can by an increase. increase of activity, the we as over quarter, deployed a of has fully but in similar systems revenue utilized which represents driven EBITDA on the free a $XX services, system, During dollar million increased margins has XXX% multiple from cash a contribution third $X XX be a as that which Total of a $X adjusted sequential reminder XX% averaged revenue, positive last-mile than component customers, rental well flow approximately an in We to trucking generated million typical revenue and basis. higher sequentially, large

the XX third proppant Over we deployed the varying with a course worked in quarter, the degrees which of systems, total utilization of of quarter.

generated XX of in modeling reflects utilized for systems million, quarter SG&A the non-cash revenue were systems purposes. day the of for costs is calculation measurement believe the which equivalent $X quarter, of stock-based third compensation. we Our every Total the number inclusive approximately fully best that

approximately expect of quarter non-cash million, inclusive expensing to at SG&A be For normal flat the fourth the XXXX, of quarterly compensation. $X we of total stock

forma generated or for quarter During quarter, Adjusted share. per loss net we the was million GAAP second million the loss $X $X.XX $X.XX net or per share. $X.X pro of

flow the positive of Please prior the more for refer As assumes $X dividends, for $X.X was B quarter. items, returned loss Class approximately for forma a comparative in all a the expenditures total full We flow income. last pro the in form approximately shareholders pro shares net also capital income night million or in $X.X non-recurring to adjusted exchange to our a quarter over shares And approximately of press a period cash of total issued reminder, our cash adjusted for and of was for was period of $X.X with which full reconciliation forma second a quarter. the million a million, presentation. net adjust Class million flat Operating quarter. free release after A

our last share cash dividends the million with We Over free a end quarterly returned due quarter cumulative second million $XX to combined of of flow $XX approximately activity form the cash at of smaller off in half or balance ended primarily in been industry the cash trough the dividend. our has two of million from amount with $XX the payment a decrease generated quarter slight was to the of the and The coming shareholders repurchases. approximately years, roughly cash.

to outlook. Turning our

and some As million. operating third approach run added third the inventory a of quarter personnel wells be expense we We their increase as anticipate at as anticipate SG&A we activity expenses other the expect late and full we’ll of and continue to could we during $X quarter, flat to to to continue modestly activity could quarter up operators as holidays. have decrease Bill many the the mentioned, in complete some in approximately

spending. capital on also We discipline expect remain to

our full capital the lowering $X the low guidance our end for are spending at guidance XXXX We of for range to approximately year million.

As many we take we about to of uniquely broadly, Solaris our opportunities. more believe future, think is positioned advantage

and We low balance R&D we a cash opportunities cost structure, no debt excess sheet, pay in many have a dividend. and the

and We opportunities opportunistically to returning both be organic will to that, remain evaluate to and shareholders. growth questions. committed and With we’d to continue happy take inorganic thoughtfully our your cash

Operator

the Instructions] We’ll now Company. ahead. & TPH [Operator session. question-and-answer O’Leary, Please question First George begin go comes from

George O’Leary

Good morning, Good Bill. Kyle. morning,

Bill Zartler

Good George. morning,

Kyle Ramachandran

Good morning, George.

George O’Leary

changed historical us that’s context other from competition track. implies screen us time. system systems during through And your count which about moving system versus guys as you you’re if you Bill, And volumes your comment was to quite over is up efficiency to the frame just maybe a throughput curious some system me, metrics how today intriguing how standpoint. some sand or much active just could that seeing With impressive. that quarter, the XX% tell record give what maybe that

Bill Zartler

Kyle, to. Okay. you want

Kyle Ramachandran

significant to in it’s that XXX identified, notion Yes. of went see every that’s XXX point, today, more it we crews on XXX, that are today, grading to our obviously up business. we frac driven the The But underlying one. of I George, to intensity days, trend, high jump going I’ll a growth crews today. frac on XXX simul as pretty fracs working continue in going sand frac the the think of from we early operating Yes, and a day. the crews that are great

being So taken better every crew of. trained, equipment’s is more care efficient,

hours pump just day going up. the keep So per

throughput And systems. so is our translate into where business for does that our into

our part, most So cost pay our equipment. for the customers fixed a equipment rent run to so and our we’ve

our So throughput equipment every basis. their less a per ton actually they for dollar they’re time, rate, increase paying equivalent on

we’ve going that the further couple a up, quarter, or see with driven went total through a directly belts. into ramp our with did the the buffer from roughly automation seeing reliable well would the up go systems, the provide hopper the as we to very people of throughput among clients. about to systems fully work silos looking very XX% that, slow have we the into we so be quarter call been that the we’ve we AutoHopper it’s went a XX% operation system And that quarter system deployed. And of increase we’ve very going into number to Sand assistance through at the sand a blender in make the actual loaded volumes saw this the the systems the Roughly, to XX% then of it a our what And simple a I’d more everyone. up But look intensities is in tested higher that loads at of we’re say, is than quarter. our in the system second gravity utilized systems. from gets value into in it’s a and And and through when it XX%. anywhere of of in and in blender blender But obviously in second a that the significant large just the keeps daily Clearly, talked you versus and and through basis their we AutoHopper the our Historically, on intensity past. that’s the fed difficult for operated are adoption and physically system. try proven down seeing each significant system, somebody automated volumes quarter was big our effectively very process. likely

money, for on ways During looking location, these save reduce to always more times, people it are make cetera. safer, people et

customers we system running so the our from data And have van.

we’re to forward, going on. up we continued we trends fewer has as technologies, people and things like, working see so see and see AutoHopper and go And we intensity Solaris other

be to I operators think well as really we’ll as both prove pumpers. valuable to

Bill Zartler

Yes. little a George. I’d add bit that

fairly it per So the of the per specific instances, silos. and of call complete range the we rebundling, see increase And in do a it increase those of sand saw we an on ton did wouldn’t high in handle I on basis. the [indiscernible] set but solution where sand – end actually we a significant last-mile throughput dollar

from think above systems So significantly perspective the throughput industry our was we up overall an through the XX%.

George O’Leary

you just thank customers, curious And And commentary, fourth you the more predicated helpful. discussions ended that’s started than quarter outlook clearly then very That’s the Okay. just if on both. higher quarter it. with given the comment

average like typically prudent guidance – and see dose seasonality, prices of throw the You have oil let’s conservatism be prices crude hey, sound above on modestly a here we more saying customer that count sit Is oil quarter today. or in as third flat just, you still crude we just predicated and factored and the up to you’re they’ve the system in. little had practical the in also discussions recent

sorry one, us? through, guys ask about have questions what sense we define you of you but upper Just be? have think then, that a to in that. trying modest bunch And so to thought bound of for Just could how might some

Bill Zartler

I to to holiday kind that. we see are know quarter. to the fairly seeing through of think we Well, said, take going hit anything with extreme pretty just October to the you significantly what than Obviously, at don’t up, know December. And the specific we have conversations point. going I add Kyle, weeks. no through election I over an just what mean, mean, There’s have going things few nail. coming we are a Christmas in prices better this into customers last look happening George, like. December, we’re volatility don’t we

Kyle Ramachandran

right. I think, that’s

George O’Leary

That’s you chest priorities and with Is in Okay. the kind above for And balance down of cash you about play How very to mentioned all remarks, then cash there helpful. cash. super up for want opening war built defense? uncertainty that kind it are side Or of excess on you impressive. keep and to think hunker that now about is the to is And you that guys that the returning shareholders. guys you thinking the have offense cash do given respect anything your clearly, beyond dividend?

Bill Zartler

George, go Kyle. with ahead, –

Kyle Ramachandran

say, continuing just that We of to we’re today. And offense. by about the developing the always offense of in And this thinking downturn was XX that growth activity. and I was we’re technologies. driven view slowdown business we played XX new do a in

a automation and into an themes the for fit benefited going dollars current our as equipment today’s to can further offering, to frac. we’ve play and well to R&D that from standpoint, from are that So improvement be as enhancing continue developing technology offerings in

uniquely plus of the we’re working sitting positioned, today. the blenders pretty behind where We’re U.S. currently roughly in XX%

a So we lot. see

us And perspective. so gives unique a that just

areas a And been the got on during we’ve so one we’ve the actually from of increase the personnel standpoint engineering downturn front. has

going prudent sense. believe we So make dollars R&D that investments into

Now it, you the of discussions a a not on customers of to spending having are but sure CapEx numbers and see lot money we’re doing we ton with whiteboard a make that can in putting lot that. the

at refer backside. the is We’re where technology at as really core the which of sit forefront what we the we to development, of

So well chemicals water, low are before pressure where coming hit all side together they the site, the sand, the pumps. of

prepared really the with something uniquely where integrating the the we bit whether early alluded remarks or that then we have. something in upstream of that a the in the late in look amount we’re that what going to and think, with we obviously, consolidation So bit we’ve an software alluded side opportunities where a different, fits data we And that it’s services little M&A to a for we do in something is of from to as to can continue world, pursue. we seen tremendous little perspective,

we cautious. very been, we’ve only done which have modest, years, one we’ve very our And wide got eyes being really couple transaction in M&A was open. the last we’re So of but

George O’Leary

for much color. the very Thanks

Operator

you. Thank

comes from Jacob go Lundberg question Next of Suisse. Credit ahead. Please

Jacob Lundberg

are guys. competitive blenders normal morning, just volatile guys that How touch for to affect the think how the of just up been on has Thanks then seen landscape, think obviously that earlier, good ongoing shift. mix guys or quarters. third could you’ve heard or a in XX%-plus little much bit. any reading behind E&P your question. the you expect have I far. but your submit do the a And commentary couple I into off, business too to start a like you Hey, taking implies comments environment last it, I maybe been pretty in said so you said you if a sitting Wanted it changes you around it’s Kyle think gaining little is you’ve you share maybe Do share consolidation

Kyle Ramachandran

kidding. I – Yes, to Jake, I’m No, different asked backwards hate it’s I think working questions say, day. just ranges but XX% you every three there. was

into too wouldn’t companies standpoint. goes but debt sheet. sand debt the majority back which back through they’re no going less go what is around And is them think of balance coming so on I the on space competitive a so read much sheet I their We’ve chapter in to question, terms of balance seen in – or several have your on that, restructuring their our XX, first been process. The from of with

going So that’s on.

where really got I focused as edge we’ve new think late, really on about. the got material and backside, amount we’re any talked entrance we’ve where of the I just ability this seen the haven’t We a is

another running alongside not of We’re it. business

add to R&D continue to So able the to to and we’ve continue invest to been differentiate offering. dollars

landscape the I kind where of think that’s So competitive sits.

the this this of earlier obviously seen called last any up year haven’t picked year. We point up significance business arrows so there or at consolidation

of standpoint, always sits. So such going some from who always consolidation and for a work and of And being it’s there, acquired wins that’s we’re or And just potential We losses acquiring. then neutral. a to where an kind question sometimes folks of are that today? large they they there work do are have some diversified you that group it’s E&P for

say, look the standpoint the call hap M&A from of And of at we so what’s the neutral the in or landscape last over, months I’d kind two I’d really. operators from when E&Ps, transpired it

Jacob Lundberg

in just touched notable source color efforts keep a sitting as around see as as Okay. to a follow-up, current capital. comments other use it’s we’re or revenues prepared sustainability try And metric in the on grew guys the kind XQ, to you slight and a Any it any cash sustainability I’d that on to basis conversion you guys working working I’ll cash you a quarter, Any much of did. there as judge on from it of one. in interested levels. particularly thoughts a at and capital remarks, working obviously capital today where when cycle in be then curious you your but of

Kyle Ramachandran

rather. collect second not receivable Yes. Well, of quarter. that our saw going unwind or chemical intensity standpoint, working activity that We’ve significant the is in inventory and the sand to an to From we certainly more activity we’re in today. increases capital be our balance, significant stands to work a sitting accounts there, third as are ready to bunch quarter, systems efforts as the in go buying got a inventory of up

receivable will build grow, business. ton but Clearly, part nothing the capital business our there a with growing accounts isn’t our So significance. of of associated working of

Jacob Lundberg

Okay. Thanks. Appreciate color. the

Operator

you. Thank

ahead. comes Please from Stephen go Gengaro question Next Stifel. of

Stephen Gengaro

gentlemen. if that I lot and A but has could Thanks, things good been was two you about, was there’s address. thinking asked morning, curious here, I

does let’s that frac a side. of XXXX where, and had There’s world consolidated there’s companies entities fewer on sort we’re in either E&P say, affect that of on is have got first more larger both you’ve you? away, in the business. and some consolidation or sides The How been

Bill Zartler

a in we’re at sizable what significant think our sitting and position space did. already we I pretty Well,

scale. and at think to I provider pumpers. operators being an significant been So successful We’ve both have we’re independent pressure already

independent large of that can everybody with service healthy And playing consolidated so differentiated large fair. help but sort of that provide balance some pressure companies keep some pumpers, technology operators, can consolidate

probably transactions market. activity if a Clearly, having through either longer lower the for healthy U.S. market. through in or market, I consolidation the you’ll pretty we likely that consolidation a to see the level it’s storage in piece attrition the sand in is in see think

clearly the pumping pressure seeing We’re that side. in

see in sand management And so to similar something we the would expect side.

Stephen Gengaro

in the other quarter, then than And sure think when pretty look there’s at in think faster you. and I question related the I revenue I you that you the revenue I’m revenue. of but is, Thank of deployed a your at growth transportation lot systems the a beginning, And growth. remarks, addressed missed it’s that is sort

Bill Zartler

Correct.

Stephen Gengaro

Is there not you’ve Is any is it it’s intensive? thoughts I Is internally? the you capital in that be want too there on business that capturing that And think suggested past, – to a in. is are question know there to and the owning to It investors. in it? I bottlenecks from get continued you’ve the I It some addressed past. be case just not – a there is any –

I’d figured I call. ask the So you on all

Bill Zartler

I we site. run just that at continually the that than we better do or come do a we’re to we well answer trucks we do. folks frequently, ask the And with that good at what It’s partner do we own trucks ourselves think we question back

better. We’re good at making that equipment

not We’re truckloads at up we’re around. sand and experts of running geared not

a we And business that profitable successful to point trucking be for the it’s where that our our the in the to company last fleet and own this view beefed customers. and think sense. do makes we’ve do organization that point, it’s not what up is time for at manage we mile to Now us at we

Stephen Gengaro

any one, know one just a And slow update the then there? it’s traction Great, on days, I any final chemical these progress update market on any but thanks. side? outlook

Kyle Ramachandran

we half of work that customer results Yes, latter the fourth third the the had with is Very throughout quarter. probably off got customer system happy a that working the kicking quarter. with

So out back system we something And another customer. there. for get we have expect a to working then chemical today,

But still logistics So and value as say more point yes, got of proposition is incremental I doesn’t get standpoint inventory just we’ve in them an operational a several a to ready standpoint, what get to feel feel like And out. it like we discussed put to we we’ve we very deployed. require clear. always do where them to go capital them about from from ultimately, will today of we good is, the the

Stephen Gengaro

Okay, great. gentlemen. you, Thank

Bill Zartler

Thanks.

Kyle Ramachandran

Thanks.

Operator

Thank ahead. John question you. Please Hunter from Cowen. comes of The next go

John Hunter

Bill and Kyle. Hey, good morning,

Bill Zartler

Good morning, John.

Kyle Ramachandran

morning, John. Good

John Hunter

So I just in profitability about activity, be guess, just for of outlook per some it in the profitability. quarter. costs system had there. curious would did of coming I margin margin I flat kind question with per you’re your back of how kind thinking your system, XQ, later so seems your But of you flattish, a fourth guess note like Kyle, kind

Kyle Ramachandran

target It’s up. as obviously goes a moving activity

will. We will have in some you a that quarter system, additional per But as third as out costs where we the come came through. I if profitability think far

think for talk I using number outlook a to modest the probably fourth quarter. that’s good be to here as we about a flat

John Hunter

some and I price on of based see that dialed has your And do you comments customers in back optimism done? then And today? commodity that in press conversations quarter? some guess okay. the bit what first a your it, little early activity note talking about adding Is release Do cautious prepared recovery systems about you the then Got may think XXXX. the given be customer

Kyle Ramachandran

– ahead certainly go going Bill. Well, it’s

Bill Zartler

but It will with add price have float systems going customers in believe with the XXXX. commodity to we had that, in that – the somewhat, conversations back they’re specific

gas the as the in active as well We’re basins oil basin.

well activity as a and think or we is see I Marcellus that level growing. see gas there that Haynesville and of stabilizing will we So

are most about have cautiously conversations uptick optimistic, year but think will next see we’re I we that an in we So activity.

John Hunter

Great. I appreciate it. Thanks. I’ll back. turn it

Operator

MacPherson go ahead. Simmons. question of from Thank Please comes you. The Ian next

Ian MacPherson

directed about. diversity Bill. morning, and right Bill wanted Kyle, there you recently to I you Ti much It’s so than amount elasticity in some are. and material with Do have we’ve first had to ask now. touched And thing think Good gas. just the certainly divergence on to think good base sensitive commodity general of a Or more – is activity the activity with gas is oil upside weakness right offset gas basins now? crude you the price is oil price just do that

Bill Zartler

be I it Well, more gas The it’s little more is to some. been moved It’s it have is moved volatile. going – up prices some think moving. a down

moves volatile anticipate being as I been stable. its And it magnitude think the we oil. quite of haven’t as

I think you will will will the up make crude not next net down to for significant not not, gas if see XX the of oil a you stays goes year, in and price. – in three, activity loss downdraft gas

Ian MacPherson

little that should This of you align something consolidating strategic the also evolves? a it Okay. you share teased are little really the go. XX% bit think gives where ask questions, view way a think where XX%, wanted team? I but Is we been what you towards? Is your to is can the plan have within XX%, efforts sector to a has the in more to I towards that upstream and that what sort of out regard bluntly your need structured prior plan with Or you do take the you marketing something market market it as with

Bill Zartler

at our I don’t think we market shares goal. really look

is the value one-off convincing some that is operators, direct effort. we to direct customers after both of combination pressure them that that basis, go and Our worth the whether to a it’s it’s to goal their on operations and significant whether and single add bumpers, we

we we approach go we’re a So improve a them, really get that’s it’s let’s fallout go and reliable And at share of time. at operations. of the to services math how for to fundamentally is them and it. we that demonstrate And provider be one their market the going of customers, a really can going

Ian MacPherson

Understood. Thank you, Bill.

Operator

Thank you.

Wells of Please Voie Chris ahead. from comes Fargo. question go Next

Chris Voie

Thanks. morning. Good

versus on So pricing, since looks I price to and prior then just much a and quarter. forward going on check obviously, first any it the expect on to But it’s concession book forward. you same you the had a track, confirm of yes, kind the stable like XXXX just any higher in quarter of quantity related side impact the the bit think shifts related to box the pretty customer going more pretty to discounts do M&A

is view Just curious what your there.

Kyle Ramachandran

mix a not only is as pricing think Yes, third coming the is the probably of quarter. in we driven see mix I roughly the price. we fourth in out where quarter It the saw function

got standpoint, any pricing do don’t from in I in forecasting the that peers we’re matrix. So multiple a that will consolidation I you mind, reduction higher And keep if not rates variables. in then

Chris Voie

drive And assume have of CapEx outs then or do or that levels Or going question, kind could you the close to to pretty Thanks. projects technology going forward? run maintenance on XXXX? higher Okay. these build stay any should in it’s we rate other second horizon that

Kyle Ramachandran

fourth economic for and today, to important, that’s customers. today. good our we’ve the field quarter feel in us We and third as capital constantly I the day on no important standpoint, a quarter. stuff get new the associated we more commercial. working And There’s standpoint, did further But any and nothing if technologies. return of be that’s return a testing would just think something the that we’ll in up deploying comfortable systems tested – mean good maintenance technology from that from significant are develop neat ramping with economic on I yes, got we a And that deferred maintenance provides magnitude. there’s got have home in

So we’re new out figure trying to out grow. ways constantly to

Chris Voie

expected can an maybe in a you – CapEx by next range Okay. any with get for range Well, chance? year that mind,

Kyle Ramachandran

think it’s be this number don’t yes, where I to give we are point. in. to a any think I standpoint, But No, from a that maintenance were where this we at probably guidance on we’re going fair year,

Chris Voie

you. Thank Great.

Operator

have Instructions] of Stephen up you. Please follow actually a I Thank Gengaro from [Operator ahead. go Stifel.

Stephen Gengaro

more. Thanks one for taking

I where or are, OSHA worse How the how Just better is quickly again, on than know come I topic in and – the in side, that’s the the a containers? regulations the next mitigate your general is issue solution it’s sand is dust on it’s recently – the June year. mitigation up think –

Kyle Ramachandran

of have points really right. two sand, transfer of we So

it it a unit taking then truck You’re when and either it into a into from goes or blender and that silo hopper. then the goes from into the stack, the box, from

hopper, it no movement sand at blender silo an pumped movement an is large the keep equipment to the sit sand are an what the have on hole. into the auto the then piece So got how dropped emission that sand see goes level the deliver because of was or of with silos, the the designed the there’s open system. we’ve to really blender when that rate was, hopper. will. our exposed exchange and that down the you Historically, truck they with years determine the to piece or into is wind, the system the or into is people we’re the first much going very collected, Where that and open. sand is in container exposed eliminated from using leaves could top a of and auto is the be done open to collectors We a to to within of a piece, by back into kept our box you equipment hopper, which consumption based sand And used would look of if our we Many physically into system fines the we’ve what dust need rain. level ultimately hopper. to typically they’re open address actually stored And increase hopper and the the the rate to decrease ago of hopper silo box, we’ve from would

you no there. longer So anyone need

So at blender. is in of to clear the do what enclose the piece to which is allows one hopper you exposure, that the

clear, piece pressure we working do what happen. it and some our been to But on And technology, So be been quite it’s that’s very the yes, controlled to – clear regulations and fix. make our equipment in it just have known focused have in generally for to time. collaboration be a area, with the customers And able the that ultimately is been pumper. which enclose by we’ve of to with is

Stephen Gengaro

Thank you.

Operator

Thank you.

B. Securities. Next Ryan of question is Pfingst go Please ahead. Riley

Ryan Pfingst

morning. guys, morning, good Hey,

Bill Zartler

Good morning.

Ryan Pfingst

far. so colors the all for Thanks

for one Just more me.

but this recent obviously you the we’ve be commodity year it’s So say not this will pronounced had a think year. holiday prices because it’s might normal year, already as been do as play of downturn outing in season the role, possible that to

Bill Zartler

case, has you what work to years. and know have that’s plan for possible, few certainly last over the you the that just but certainly It’s we hope been a trend historical

Ryan Pfingst

it. Got guys. Thanks,

Operator

session. our Thank concludes This you. question-and-answer

over conference Bill I’d like to for Mr. Now remarks. turn closing Zartler to the back

Bill Zartler

our Thanks, commitment partnership business employees of continued of all customers a for into for execution to I’d thank our this and all your like with you over to our their Nick. continued difficult of period. close

virus all us, the on While and we’re high we’ve be in industry functioning. of you proud not numerous all lasting kept that this should extremely through alive impacts the and business

Our suppliers, essential operations without continue to services will our customers, and shareholders. to provide interruption employees,

wellsite our remain to continue customers and a despite savings, these helping efficiency, increase safety committed to by great evolve market you innovate on our offering Thank safe and we headwinds. Stay further As have day. and all.

Operator

concluded. now Thank you is today’s attending presentation. Conference for

You may now disconnect.