ProFrac Holding Corp (ACDC) 2022 Q3 法說會逐字稿

Greetings, and welcome to the ProFrac Holding Corp.'s 2022 Third Quarter Earnings Conference Call. (Operator Instructions) As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Rick Black with Investor Relations. Thank you, Rick. You may begin.

問候，歡迎來到 ProFrac Holding Corp. 的 2022 年第三季度收益電話會議。 （操作員說明）提醒一下，正在錄製此會議。現在我很高興向您介紹主持人，投資者關係部的 Rick Black。謝謝你，里克。你可以開始了。

Thank you, operator, and good morning, everyone. We appreciate you joining us for ProFrac Holding Corp.'s conference call and webcast to review third quarter 2022 results. With me today are Matt Wilks, Executive Chairman; Ladd Wilks, Chief Executive Officer; Lance Turner, Chief Financial Officer; and Coy Randle, Chief Operating Officer. Following my remarks, management will provide high-level commentary on the financial highlights of the third quarter and outlook before opening the call up to your questions. There will be a replay of today's call available by webcast on the company's website at pfholdingscorp.com as well as a telephonic recording available until November 17, 2022. More information on how to access these replay features is included in the company's earnings release.

謝謝接線員，大家早上好。感謝您加入我們，參加 ProFrac Holding Corp. 的電話會議和網絡廣播，以回顧 2022 年第三季度的業績。今天和我在一起的是執行主席馬特·威爾克斯 (Matt Wilks)；拉德·威爾克斯，首席執行官；蘭斯·特納，首席財務官；和首席運營官 Coy Randle。在我發表講話之後，管理層將在開始回答您的問題之前，對第三季度的財務亮點和前景進行高級別評論。將在公司網站 pfholdingscorp.com 上通過網絡直播重播今天的電話會議，並在 2022 年 11 月 17 日之前提供電話錄音。有關如何訪問這些重播功能的更多信息包含在公司的財報中。

Please note that information reported on this call speaks only as of today, November 11, 2022, and therefore, you are advised that any time-sensitive information may no longer be accurate as of the time of any replay listening or transcript reading. Also, comments on this call may contain forward-looking statements within the meaning of the United States federal securities laws, including management's expectations of future financial and business performance. These forward-looking statements reflect the current views of ProFrac management and are not guarantees of performance. Various risks and uncertainties and contingencies could also cause actual results, performance or achievements to differ materially from those expressed in management's forward-looking statements.

請注意，本次電話會議報告的信息僅截至今天，即 2022 年 11 月 11 日，因此，請注意，任何時間敏感的信息在任何重播收聽或抄本閱讀時可能不再準確。此外，對此次電話會議的評論可能包含美國聯邦證券法含義內的前瞻性陳述，包括管理層對未來財務和業務績效的預期。這些前瞻性陳述反映了 ProFrac 管理層當前的觀點，並不是對業績的保證。各種風險、不確定性和或有事件也可能導致實際結果、業績或成就與管理層前瞻性陳述中表達的結果、業績或成就存在重大差異。

The listener or reader is encouraged to read ProFrac's Form 10-Q and other filings with the Securities and Exchange Commission, which can be found at sec.gov or on the company's Investor Relations website section under the SEC Filings tab to understand those risks and uncertainties and contingencies. The comments today also include certain non-GAAP financial measures as well as other adjusted figures to exclude the contribution of Flotek. Additional details and reconciliations to the most directly comparable consolidated and GAAP financial measures are included in the quarterly earnings press release that was issued yesterday, which can also be found on the company's website. And now I would like to turn the call over to ProFrac's Chief Executive Officer, Mr. Ladd Wilks. Ladd?

鼓勵聽眾或讀者閱讀 ProFrac 的 10-Q 表格和其他提交給美國證券交易委員會的文件，這些文件可以在 sec.gov 或公司的投資者關係網站部分的 SEC 文件選項卡下找到，以了解這些風險和不確定性和突發事件。今天的評論還包括某些非 GAAP 財務措施以及其他調整後的數字，以排除 Flotek 的貢獻。昨天發布的季度收益新聞稿中包含與最直接可比的合併和 GAAP 財務指標的更多詳細信息和調節，也可以在公司網站上找到。現在我想把電話轉給 ProFrac 的首席執行官 Ladd Wilks 先生。拉德？

Thank you, Rick. To begin, I'd like to say how excited I am having completed our acquisition of U.S. Well Services. I wanted to welcome their team to the ProFrac family. We believe electric fracking represents the future of the industry, and we are excited to leverage our scale and capabilities along with the clean fleet technology as the largest provider of electric fracturing services in the world. By changing our ticker symbol to ACDC after closing the U.S. Well Services acquisition, we wanted to communicate to investors that not only are we the market leader in e-fleet, but we also have a strong commitment to an ESG strategy of reducing fuel costs and minimizing emissions. In addition, we just think the ticker is really cool.

謝謝你，里克。首先，我想說我對完成對 U.S. Well Services 的收購感到非常興奮。我想歡迎他們的團隊加入 ProFrac 大家庭。我們相信電力壓裂代表了行業的未來，我們很高興能夠利用我們的規模和能力以及清潔船隊技術成為全球最大的電力壓裂服務提供商。通過在完成對美國 Well Services 的收購後將我們的股票代碼更改為 ACDC，我們希望向投資者傳達我們不僅是電子車隊的市場領導者，而且我們還堅定地致力於降低燃料成本的 ESG 戰略和減少排放。此外，我們只是認為自動收報機真的很酷。

So as of today, after factoring in the acquired fleet, we have 39 fleets active and 8 of which are electric. Included in this fleet count is the deployment of ProFrac's first internally manufactured electric fleet. We're pleased to report that this fleet performed extremely well in its initial customer field test and was fully deployed this month. We continue to be impressed by the technical performance of these electric fleets. They have demonstrated the ability to pump at a high rate, high pressure, consistently and reliably with very little fluctuation. Just as important, the economics are unmatched, given the e-fleets 100% use of cheaper and cleaner burning natural gas. We look forward to this first e-fleet generating significant revenue and profitability in the back half of the fourth quarter.

所以截至今天，在考慮到收購的機隊後，我們有 39 個機隊處於活動狀態，其中 8 個是電動的。該車隊數量包括部署 ProFrac 的第一個內部製造的電動車隊。我們很高興地報告，該機隊在其最初的客戶現場測試中表現非常出色，並於本月全面部署。這些電動車隊的技術性能繼續給我們留下深刻印象。他們已證明能夠以高速率、高壓、一致且可靠地進行泵送，且波動很小。同樣重要的是，考慮到電動車隊 100% 使用更便宜、更清潔的燃燒天然氣，其經濟性是無與倫比的。我們期待第一批電子車隊在第四季度後半段產生可觀的收入和盈利能力。

Going forward, and after U.S. Well Services fleets are brought closer to market rates, we expect to generate higher profitability on e-fleets due to their lower maintenance needs, smaller footprint and the tremendous value proposition to our customers. In the meantime, we are focused on bundling opportunities, efficiency improvements, cost synergies and other select strategies that we believe will improve the profitability of these fleets in the near term. With the closing of the U.S. Well acquisition, we now have 4 e-fleets under construction. We're working to complete these additional e-fleets and expect full deployment of those fleets by early 2023, by which time we expect to have 44 active fleets. Fleet optimization remains a primary goal, which means we're not just looking to add fleets but to maximize the throughput and profitability of the fleets and operations for our clients and for ProFrac.

展望未來，在美國 Well Services 船隊接近市場價格後，我們預計電子船隊將產生更高的盈利能力，因為它們的維護需求更低、佔地面積更小以及對我們客戶的巨大價值主張。與此同時，我們專注於捆綁機會、提高效率、成本協同效應和我們認為將在短期內提高這些車隊盈利能力的其他精選戰略。隨著對美國 Well 收購的結束，我們現在有 4 個電子艦隊正在建設中。我們正在努力完成這些額外的電子車隊，並預計到 2023 年初全面部署這些車隊，屆時我們預計將擁有 44 個現役車隊。船隊優化仍然是一個主要目標，這意味著我們不僅要增加船隊，還要為我們的客戶和 ProFrac 最大限度地提高船隊和運營的吞吐量和盈利能力。

In addition to the electric fleets under construction, we've accelerated our Tier 4 Dual Fuel upgrade program as the year has progressed. Our goal is to stay ahead of customer demand as it relates to equipment type, and we believe that electric and Tier 4 Dual Fuel fleets offer incredible benefits to our customers and represent the future of our industry. Now I want to highlight several key metrics from the third quarter. I'm extremely proud to report that we achieved 18% sequential growth in revenue, leading to a 22% sequential increase in adjusted EBITDA for the third quarter. Excluding other business activities, adjusted EBITDA increased $49 million from $218 million in Q2 to $267 million in Q3. Annualized adjusted EBITDA per fleet excluding other business activities, rose 23% to $34 million from $28.1 million in the second quarter. We believe these incredible results are the product of the best team in the industry, running the best equipment in the industry, focused on every aspect that makes our company, our customers, and our suppliers truly great.

除了正在建設的電動車隊外，隨著時間的推移，我們還加快了我們的 Tier 4 雙燃料升級計劃。我們的目標是在與設備類型相關的客戶需求方面保持領先，我們相信電動和 Tier 4 雙燃料車隊可為我們的客戶帶來難以置信的好處，並代表我們行業的未來。現在我想強調第三季度的幾個關鍵指標。我非常自豪地報告，我們實現了 18% 的收入環比增長，導致第三季度調整後的 EBITDA 環比增長 22%。排除其他業務活動，調整後的 EBITDA 從第二季度的 2.18 億美元增加到第三季度的 2.67 億美元，增加了 4900 萬美元。不包括其他業務活動的每個機隊的年化調整後 EBITDA 從第二季度的 2810 萬美元增長 23% 至 3400 萬美元。我們相信，這些令人難以置信的成果是業內最佳團隊的產物，他們運行著業內最好的設備，專注於使我們的公司、我們的客戶和我們的供應商真正偉大的方方面面。

I believe it is important to highlight 3 critical areas that are driving our industry-leading profitability per fleet-- pricing, our ability to control the supply chain, and utilization. Pricing continued to move higher during the quarter, and we see continued momentum with a data-driven approach. Our commercial team works constantly with each of our customers to drive home the value that ProFrac creates for their production return and ESG initiatives. In addition to pricing, we saw further incremental expansion from increased bundling of materials used in the services provided by ProFrac.

我認為，重要的是要強調推動我們行業領先的每機隊盈利能力的 3 個關鍵領域——定價、我們控制供應鏈的能力和利用率。本季度定價繼續走高，我們看到數據驅動方法的持續勢頭。我們的商業團隊不斷與我們的每一位客戶合作，以推動 ProFrac 為他們的生產回報和 ESG 計劃創造的價值。除了定價之外，我們還看到 ProFrac 提供的服務中使用的材料捆綁的增加進一步增加了擴張。

Vertical integration allows us to capture more share of our customers' completions budget, and this is a priority for ProFrac as we believe it represents our largest top line growth opportunity in 2023. We have always aimed to provide sand, chemicals, storage, and logistics as we believe we can manage the complicated supply chain as a single provider more efficiently and reduce the risk of [MPT on pad]. During the third quarter, we made great progress expanding the number of fleets that are bundling materials. By the end of the third quarter, we were providing approximately 40% of the sand we pumped and 50% of the chemistry. Looking forward, we believe we have the supply, the proximity and cost advantages to become the primary choice for our customers. Another equally important factor in our results is utilization.

垂直整合使我們能夠在客戶的完工預算中獲得更多份額，這是 ProFrac 的首要任務，因為我們相信它代表著我們在 2023 年最大的收入增長機會。我們一直致力於提供沙子、化學品、存儲和物流因為我們相信我們可以作為單一供應商更有效地管理複雜的供應鏈，並降低 [MPT on pad] 的風險。在第三季度，我們在擴大捆綁材料的車隊數量方面取得了很大進展。到第三季度末，我們提供了大約 40% 的抽沙和 50% 的化學品。展望未來，我們相信我們擁有供應、距離和成本優勢，成為我們客戶的首選。我們結果中另一個同樣重要的因素是利用率。

We posted the highest level of utilization for the company in terms of pumping hours. The goal of everyone at ProFrac is maximizing pumping hours, from our commercial team focused on filling the calendar, to our operations teams and maintenance teams focused on executing every single minute on pad and keeping equipment in optimal shape to reduce downtime. It's because of these strengths that in Q3, we were able to reduce move times, pump more hours per day, pump more days per fleet, et cetera. These trends continued in October, and I'm excited to see what the team can do moving forward.

我們公佈了公司在泵送時間方面的最高利用率。 ProFrac 的每個人的目標都是最大限度地延長泵送時間，從我們的商業團隊專注於填寫日曆，到我們的運營團隊和維護團隊專注於在墊上執行每一分鐘並保持設備處於最佳狀態以減少停機時間。正是由於這些優勢，在第三季度，我們能夠減少移動時間，每天抽出更多的時間，每個車隊抽出更多的天數，等等。這些趨勢在 10 月份繼續，我很高興看到團隊可以向前邁進。

Lastly, I want to provide a summary of what we're seeing from our customers. Demand remains very strong for all fleet types, including increased demand for newer technology fleets as customers appreciate the economic benefits of next-generation pumping technology. This equipment remains sold out across the industry. As a result, pricing levels remain constructive for all equipment types as we look into Q4 and 2023. We completed the third quarter with a record level of efficiency and are carrying the efficiency into the fourth quarter. While we don't expect year-end budget exhaustion to materialize this year, fourth quarter typically comes with some uncertainty around utilization due to holidays and the possibility of inclement weather. Overall, our 2023 pipeline and book of contracted work is very strong. Our current calendar is the strongest we've seen in 14 years in this industry.

最後，我想總結一下我們從客戶那裡看到的情況。對所有車隊類型的需求仍然非常強勁，包括隨著客戶欣賞下一代泵送技術的經濟效益而增加對新技術車隊的需求。該設備在整個行業仍然銷售一空。因此，在我們展望第四季度和 2023 年時，所有設備類型的定價水平仍然具有建設性。我們以創紀錄的效率水平完成了第三季度，並將效率帶入第四季度。雖然我們預計今年年底預算不會用盡，但由於假期和可能出現的惡劣天氣，第四季度的利用率通常存在一些不確定性。總體而言，我們 2023 年的管道和合同工作簿非常強大。我們目前的日曆是 14 年來我們在這個行業看到的最強勁的日曆。

I'll now hand the call over to Lance, and he'll provide some comments on our financials.

我現在將電話轉給蘭斯，他將就我們的財務狀況提供一些評論。

Thank you, Ladd. We're pleased to announce the improved results and the progress we made during the third quarter. On a consolidated basis, revenue for the third quarter totaled $696 million, up nearly 20% compared to the second quarter. Fleet count remained constant at 31 fleets for the quarter. The increased revenue was driven by higher average pricing, higher material sales and increased efficiencies of our fleets. We really saw improvements in every area during the quarter. Net income was $143 million for the quarter compared to $70 million in the second quarter.

謝謝你，拉德。我們很高興地宣布改進的結果和我們在第三季度取得的進展。在綜合基礎上，第三季度總收入為 6.96 億美元，比第二季度增長近 20%。本季度機隊數量保持在 31 架。收入增加的原因是更高的平均定價、更高的材料銷售額和我們車隊效率的提高。我們確實在本季度的每個領域都看到了改進。本季度淨收入為 1.43 億美元，而第二季度為 7000 萬美元。

Earnings per Class A share was $1.09. Adjusted EBITDA was $256 million or $267 million when excluding the EBITDA loss attributable to our other business activities or Flotek. This resulted in $34.5 million of adjusted EBITDA per fleet on an annualized basis, excluding Flotek, which represents a 23% improvement from the prior quarter. Selling, general and administrative costs totaled $70 million and included approximately $12.9 million in stock-based compensation, $9.7 million related to Flotek, and $5.8 million in transaction-related expenses. When excluding these items, SG&A was relatively flat from the prior quarter. The increase in Flotek was primarily due to the third quarter having a full quarter of activity compared to the second quarter that only had a partial quarter of Flotek results.

每股 A 類股收益為 1.09 美元。扣除歸因於我們其他業務活動或 Flotek 的 EBITDA 損失，調整後的 EBITDA 為 2.56 億美元或 2.67 億美元。這導致每個機隊的調整後 EBITDA 年化為 3450 萬美元，不包括 Flotek，比上一季度增長 23%。銷售、一般和行政成本總計 7000 萬美元，其中包括約 1290 萬美元的股票薪酬、970 萬美元與 Flotek 相關的費用以及 580 萬美元的交易相關費用。排除這些項目後，SG&A 與上一季度相比持平。 Flotek 的增長主要是由於第三季度有一個完整的季度活動，而第二季度只有部分季度的 Flotek 結果。

Turning to our business segments, Stimulation Services segment generated revenues of $669 million in the third quarter, up 16% from the second quarter. Adjusted EBITDA for Simulation Services was $250 million compared to $196 million in the prior quarter. As mentioned, the increase from the prior quarter was driven by increased pricing, a greater amount of materials provided during the quarter and increased utilization of our equipment. The Manufacturing segment generated revenues of $49 million in the third quarter, up 40% from the second quarter. Approximately 95% of this segment was intercompany revenue for products and services provided to the Stimulation Services segment.

談到我們的業務部門，刺激服務部門第三季度的收入為 6.69 億美元，比第二季度增長 16%。模擬服務的調整後 EBITDA 為 2.5 億美元，而上一季度為 1.96 億美元。如前所述，與上一季度相比的增長是由於價格上漲、本季度提供的材料數量增加以及我們設備利用率的提高。製造部門第三季度的收入為 4900 萬美元，比第二季度增長 40%。該分部的大約 95% 是提供給刺激服務分部的產品和服務的公司間收入。

Adjusted EBITDA for the Manufacturing segment was $8.4 million, down slightly from $9.4 million in the second quarter. This segment's throughput increased this quarter, primarily driven by an increase of its activity in support of ProFrac fleets. These increased product sales were largely offset by continued cost pressures on underlying raw materials during the quarter. The Proppant Production segment generated revenues of $25 million in the third quarter, up 41% from the second quarter, which was primarily driven by a partial quarter contribution from our newly acquired Monahans sand mine. Approximately 56% of this segment was intercompany compared to 66% in the previous quarter. The reduction of intercompany activity was driven by the customer mix of the newly acquired Monahans sand mine. Adjusted EBITDA for the Proppant Production segment was $9.2 million, down from $12.6 million in the second quarter. The primary drivers of the reduced profitability were lower utilization of our sand mines due to maintenance downtime and a lower average selling price per ton.

製造部門調整後的 EBITDA 為 840 萬美元，略低於第二季度的 940 萬美元。該部門本季度的吞吐量有所增加，這主要是由於其支持 ProFrac 船隊的活動有所增加。這些增加的產品銷售額在很大程度上被本季度基礎原材料的持續成本壓力所抵消。支撐劑生產部門在第三季度產生了 2500 萬美元的收入，比第二季度增長 41%，這主要是由於我們新收購的莫納漢斯砂礦的部分季度貢獻。該細分市場中約有 56% 是公司間業務，而上一季度為 66%。公司間活動的減少是由於新收購的莫納漢斯砂礦的客戶組合所致。支撐劑生產部門調整後的 EBITDA 為 920 萬美元，低於第二季度的 1260 萬美元。盈利能力下降的主要驅動因素是由於維修停機導致砂礦利用率降低以及每噸平均售價降低。

Other business activities, which represents Flotek, generated revenues of $47 million and $-11 million in adjusted EBITDA. This represents the first full quarter of consolidated Flotek results. Capital expenditures were $123 million for the quarter, excluding acquisition-related CapEx. Approximately 75% of the current quarter CapEx related to various growth initiatives that are underway as we continue to adapt our capital program to the current environment. We expect full year CapEx to range between $330 million and $350 million, 30% of which will be considered maintenance on our fleet. The increase to our capital budget reflects an acceleration of a number of growth-related initiatives we have outlined previously, which we think have and will continue to improve our pumping hours and our profit-generating potential.

代表 Flotek 的其他業務活動產生了 4700 萬美元的收入和 -1100 萬美元的調整後 EBITDA。這是 Flotek 合併結果的第一個完整季度。本季度的資本支出為 1.23 億美元，不包括與收購相關的資本支出。本季度大約 75% 的資本支出與我們正在繼續調整我們的資本計劃以適應當前環境的各種增長計劃有關。我們預計全年資本支出將在 3.3 億美元至 3.5 億美元之間，其中 30% 將被視為我們機隊的維護。我們資本預算的增加反映了我們之前概述的一些與增長相關的舉措的加速，我們認為這些舉措已經並將繼續改善我們的泵送時間和我們的盈利潛力。

We continue to accelerate our engine upgrade program as the year progressed, converting more Tier 2 engines to Tier 4 DGB engines. We were previously upgrading 5 to 10 engines per month and have increased that level to 10 to 20 engines per month. We expect the full year cost for this initiative to be approximately $50 million. We continue to believe in this value proposition to our customers and see more customers requesting this technology. After deploying the first fleet, we expect the construction of our first 3 electric fleets to cost approximately $75 million. We are over 70% complete on these 3 fleets as a group and expect to deploy the second and third fleet in early 2023. The Lamesa sand plant is expected to be operational at the beginning of December and should come in at a cost to construct of approximately $45 million. We are also investing approximately $30 million in reducing the number of fleets waiting for maintenance and establishing a robust swing program to allow for equipment to be returned to service quicker and help ensure our equipment continues to pump more hours per month.

隨著時間的推移，我們繼續加快我們的發動機升級計劃，將更多的 Tier 2 發動機轉換為 Tier 4 DGB 發動機。我們以前每月升級 5 到 10 個引擎，現在已經增加到每月 10 到 20 個引擎。我們預計該計劃的全年成本約為 5000 萬美元。我們繼續相信這一對客戶的價值主張，並看到更多客戶要求這項技術。在部署第一支車隊後，我們預計前 3 支電動車隊的建設成本約為 7500 萬美元。這 3 個機隊作為一個整體完成了 70% 以上，預計將在 2023 年初部署第二和第三個機隊。Lamesa 砂廠預計將於 12 月初投入運營，建造成本為大約 4500 萬美元。我們還投資了大約 3000 萬美元，用於減少等待維護的車隊數量，並製定穩健的周轉計劃，使設備能夠更快地恢復服務，並幫助確保我們的設備每月繼續抽水更多小時。

Turning now to debt and cash flow -- excluding the amounts attributable to other business activities, we ended the second quarter with $549 million in outstanding principal debt and $246 million in liquidity. When we talk about liquidity, we exclude the liquidity attributable to Flotek because while we do consolidate their results, we do not have the ability to use their cash or liquidity in the rest of our operations. Operating cash flow was $172 million during the quarter, which was impacted by an approximate $57 million in working capital build due to higher materials, higher pricing and higher efficiency.

現在轉向債務和現金流——不包括歸屬於其他業務活動的金額，我們在第二季度末的未償本金債務為 5.49 億美元，流動資金為 2.46 億美元。當我們談論流動性時，我們排除了歸屬於 Flotek 的流動性，因為雖然我們確實合併了他們的結果，但我們沒有能力在我們的其他業務中使用他們的現金或流動性。本季度的運營現金流為 1.72 億美元，這受到約 5700 萬美元的營運資本建設的影響，這是由於更高的材料、更高的定價和更高的效率。

Subsequent to the third quarter and as of October 31, we had approximately $163 million outstanding on our ABL. The ABL draw was in anticipation of the U.S. Well Service closing on November 1. In connection with this transaction, we issued 12.9 million shares to U.S. Well Service stockholders, and we used approximately $210 million of cash, net of cash acquired. Cash used includes $170 million for the retirement of the majority of U.S. Well Services debt and other transaction-related fees and expenses. In addition, we assumed approximately $35 million in equipment-related financing as part of this transaction. After this transaction, we expect to have approximately $650 million in net debt and have approximately 155 million shares outstanding.

第三季度之後和截至 10 月 31 日，我們的 ABL 有大約 1.63 億美元的未償付。 ABL 抽籤是因為預計美國 Well Service 將於 11 月 1 日結束。在此次交易中，我們向 U.S. Well Service 股東發行了 1290 萬股股票，我們使用了大約 2.1 億美元的現金，扣除獲得的現金。使用的現金包括 1.7 億美元，用於償還大部分 U.S. Well Services 債務以及其他與交易相關的費用和支出。此外，作為本次交易的一部分，我們承擔了大約 3500 萬美元的設備相關融資。此次交易後，我們預計淨債務約為 6.5 億美元，流通股約為 1.55 億股。

As we look into the fourth quarter, as Ladd mentioned, pricing continues to remain strong. As we incorporate the fleets acquired in the U.S. Well Service acquisition, we expect some fluctuations in our per-fleet profitability metrics. Activity levels, and more importantly, efficiency levels have started strong, but visibility into November and December is opaque. That being said, we expect incremental improvement to our third quarter revenue with the higher fleet count as we add the U.S. Well Service fleets into our operations. I'd now like to turn the call over to Matt.

當我們展望第四季度時，正如 Ladd 提到的那樣，定價繼續保持強勁。當我們合併在美國 Well Service 收購中獲得的船隊時，我們預計我們的每支船隊盈利指標會出現一些波動。活動水平，更重要的是，效率水平已經開始強勁，但 11 月和 12 月的能見度是不透明的。話雖如此，隨著我們將美國 Well Service 船隊添加到我們的運營中，我們預計隨著船隊數量的增加，我們第三季度的收入將逐步改善。我現在想把電話轉給馬特。

Thank you, Lance. I'm extremely pleased with our company's commitment and hard work that continues to generate improved operational efficiencies and financial growth as we continue to scale the business. I believe our employees are the best in the industry and are the key to our success. Our view of the macro environment in Oilfield Services remains bullish, and we believe we are extremely well positioned for the current U.S. frac market, where supply of pressure pumping horsepower is limited and incremental horsepower is bottlenecked. Our 2-pronged growth strategy is "Acquire, Retire, Replace" on the equipment side and enhance scale through Vertical Integration on the operations side. This is gathering significant momentum, demonstrating its potential to generate strong and lasting returns for all of our stakeholders.

謝謝你，蘭斯。我對我們公司的承諾和辛勤工作感到非常滿意，隨著我們繼續擴大業務規模，這些承諾和努力繼續提高運營效率和財務增長。我相信我們的員工是業內最優秀的，是我們成功的關鍵。我們對油田服務宏觀環境的看法仍然樂觀，我們相信我們在當前的美國壓裂市場中處於非常有利的位置，在該市場中，壓力泵馬力的供應有限且增量馬力存在瓶頸。我們的雙管齊下的增長戰略是在設備方面“收購、淘汰、更換”，並在運營方面通過垂直整合擴大規模。這正在積聚巨大的動力，表明它有可能為我們所有的利益相關者帶來強勁而持久的回報。

The dynamics in the marketplace that we have been speaking about since our IPO have not changed. Many competitors are completely sold out. Most have legacy footprints in need of upgrade, and the supply chain for maintaining and upgrading existing fleets remains extremely strained with a limited ability to build new capacity. On top of that, capital is even more expensive than it was just 6 months ago. Taken together, these dynamics bolster our confidence that there is a great deal of length left in the cycle and margin expansion will continue throughout. We continue to believe this is the best backdrop that we've seen since we started in the shell industry, and we see this lasting for quite some time. In just the past 6 months, we have grown the scale and scope of our business tremendously by acquiring FTSI, acquiring the Monahans West Texas sand operations last quarter, and now the acquisition of U.S. Well Services.

自 IPO 以來，我們一直在談論的市場動態沒有改變。許多競爭對手已經完全售罄。大多數都有需要升級的遺留足跡，用於維護和升級現有車隊的供應鏈仍然非常緊張，建設新產能的能力有限。最重要的是，資本比 6 個月前更加昂貴。總而言之，這些動態增強了我們的信心，即周期還有很長的時間，利潤率擴張將持續。我們仍然相信，這是自我們進入空殼行業以來所見過的最好的背景，而且我們認為這種情況會持續相當長的一段時間。在過去的 6 個月裡，我們通過收購 FTSI、上個季度收購莫納漢斯西德克薩斯砂礦業務以及現在收購美國 Well Services，極大地擴大了我們的業務規模和範圍。

I would like to reiterate how excited I am for the U.S. Well acquisition, not only because of the company that the U.S. Well team created, but because of what we can build together now that we have joined forces. As we did with previous acquisitions, immediately after closing, we visited with each of U.S. Well's customers. The feedback was overwhelmingly positive, and I look forward to reporting our results over the next few quarters as this acquisition starts to show its true potential. Our goal is to bring the U.S. well fleets closer to our fleet profitability within 2023. This will include working with customers to adjust pricing to market prices within the constraints of existing contracts, but that increased profit will also come from applying our in-house manufacturing cost advantage, best practices, improved cost structure and the ability to bundle materials.

我想重申我對美國井的收購感到非常興奮，這不僅是因為美國井團隊創建的公司，而且因為我們現在已經聯合起來可以共同建設。正如我們對之前的收購所做的那樣，在交易完成後，我們立即拜訪了 U.S. Well 的每一位客戶。反饋非常積極，我期待在接下來的幾個季度報告我們的結果，因為這次收購開始顯示其真正的潛力。我們的目標是在 2023 年內使美國油井船隊更接近我們的船隊盈利能力。這將包括與客戶合作，在現有合同的限制下根據市場價格調整定價，但增加的利潤也將來自應用我們的內部製造成本優勢、最佳實踐、改進的成本結構和捆綁材料的能力。

The other thing I would like to touch on is our capital expenditure outlook. As Lance mentioned, we allocated more capital to our equipment. As you can see from our results, our equipment is pumping more and earning more than ever before. Our first priority is to reduce the risk of downtime for our customers, and we are allocating more capital to ensure we do that in this environment. Our maintenance group has been hard at work upgrading engines, establishing a swing program to reduce maintenance time and reducing the amount of equipment that is in the maintenance cycle. We see these investments as being non-recurring.

我想談的另一件事是我們的資本支出前景。正如 Lance 提到的，我們為我們的設備分配了更多資金。正如您從我們的結果中看到的那樣，我們的設備比以往任何時候都抽得更多，賺得更多。我們的首要任務是降低客戶停機的風險，我們正在分配更多資金以確保我們在這種環境下做到這一點。我們的維修團隊一直在努力升級發動機，制定周轉計劃以減少維修時間並減少維修週期中的設備數量。我們認為這些投資是非經常性的。

Our maintenance expenses will continue at industry-leading levels that we're known for. One example is that we invested heavily during the quarter to reduce the amount of equipment currently in maintenance status and establish a swing component program to speed up the time it takes from the point a pump has a failure to the time it is back pumping. We think approximately 15% of the industry's capacity is not pumping because it is in some stage of maintenance. This investment has allowed us to reduce the amount of equipment we have in maintenance from that 15% level to the 6% and 8% levels that our equipment is currently in -- and this is probably the highest return on investment that we have seen in this environment. This allows us to increase efficiency and reduce downtime in a favorable pricing environment. We expect this to pay dividends over the course of Q4 and into 2023. This also helps us prepare for the addition of the U.S. Well fleet.

我們的維護費用將繼續保持在我們眾所周知的行業領先水平。一個例子是，我們在本季度進行了大量投資，以減少目前處於維護狀態的設備數量，並建立了一個周轉組件計劃，以加快從泵發生故障到恢復泵送所需的時間。我們認為該行業約有 15% 的產能沒有開採，因為它處於某個維護階段。這項投資使我們能夠將維護中的設備數量從 15% 的水平減少到我們設備目前所處的 6% 和 8% 的水平——這可能是我們在這個環境。這使我們能夠在有利的定價環境中提高效率並減少停機時間。我們預計這將在第四季度和 2023 年期間帶來回報。這也有助於我們為增加美國 Well 船隊做好準備。

Ultimately, I look at it like it's a NASCAR race. The driving and mechanical failures can be predictable and consistent. Therefore, your edge really comes from the ability to reduce downtime and increase track time by having the fastest pit crew on the track, and we are willing to invest to shave off hours and days from our maintenance cycle.

最終，我將其視為 NASCAR 比賽。驅動和機械故障可以是可預測的和一致的。因此，您的優勢真正來自於通過在賽道上擁有最快的維修站工作人員來減少停機時間和增加賽道時間的能力，我們願意投資以縮短維護週期的時間和天數。

As we mentioned on the last call, we think the opportunity to expand our vertical integration and control more of the entire supply chain presents just as much potential as running a frac fleet. Continuing to expand the number of fleets we are providing materials to is one of our key priorities and one of the major opportunities for future profit expansion and our ability to create incremental value for our customers. by not only providing the sand for our customers in a reseller arrangement, we can also mine the sand for our customers, which allows us to concentrate the earnings power of each of those value-added services and add meaningful incremental EBITDA to our fleet. When we acquired FTSI, their fleets were primarily unbundled as are the U.S. Well fleets that we just acquired.

正如我們在上次電話會議中提到的那樣，我們認為擴大垂直整合和控制整個供應鏈的機會與運營壓裂車隊一樣具有巨大的潛力。繼續擴大我們提供材料的車隊數量是我們的主要優先事項之一，也是未來利潤擴張和我們為客戶創造增量價值的能力的主要機會之一。通過不僅在經銷商安排中為我們的客戶提供沙子，我們還可以為我們的客戶開採沙子，這使我們能夠集中每項增值服務的盈利能力，並為我們的車隊增加有意義的增量 EBITDA。當我們收購 FTSI 時，他們的船隊和我們剛剛收購的美國 Well 船隊一樣，主要是分拆的。

As Ladd mentioned, we are only providing about 30% to 40% of the sands that we pump, and I see a large opportunity in that metric. We think that the entire supply chain from materials to logistics to the logistics of those materials could represent a double-digit per fleet opportunity that our customers are already paying to a variety of vendors. This strategy will not only increase our fleet profitability above what we believe to be an industry-leading level, it will also result in a higher quality of cash conversion due to significantly lower CapEx needs on a per fleet basis. In our recent sand mine acquisition, we continue to see an industry struggling through logistical inefficiencies in terms of both trucking and sand sourcing and availability. With our strategically located sand mines in West Texas, I believe we can improve the sourcing efficiencies for our customers, offering savings on a per ton basis while increasing our margins considerably. We expect our third sand mine to be operational in late November, and I look forward to demonstrating the value of those assets.

正如 Ladd 所提到的，我們只提供了我們抽取的沙子的大約 30% 到 40%，我在該指標中看到了巨大的機會。我們認為，從材料到物流再到這些材料的物流的整個供應鏈可能代表每個車隊的兩位數機會，我們的客戶已經向各種供應商付款。這一戰略不僅將使我們的機隊盈利能力提高到我們認為的行業領先水平之上，而且由於每個機隊的資本支出需求顯著降低，還將導致更高質量的現金轉換。在我們最近的沙礦收購中，我們繼續看到一個行業在卡車運輸和沙子採購和可用性方面因物流效率低下而苦苦掙扎。憑藉我們位於德克薩斯州西部的戰略性砂礦，我相信我們可以提高客戶的採購效率，在每噸基礎上節省成本，同時顯著提高我們的利潤率。我們預計我們的第三座砂礦將於 11 月下旬投入運營，我期待展示這些資產的價值。

With regard to the next step in our growth initiatives, we remain fully committed to our proven acquisition strategy that is based on very strict criteria for what is considered an accretive transaction and to maximize cash generation. We will continue to put all potential acquisitions under the same technical and financial microscope. A key driver within our strategy is enhancing vertical integration. As we continually state, having custody and control of our supply chain is one of the biggest drivers of utilization and profitability on our fleet. We remain extremely thoughtful about our overall leverage. At the third quarter, our leverage is at 0.8, and we believe that we are on track to maintain our target of being below 1 turn of debt to EBITDA.

關於我們增長計劃的下一步，我們仍然完全致力於我們行之有效的收購戰略，該戰略基於非常嚴格的增值交易標準，並最大限度地產生現金。我們將繼續將所有潛在的收購置於同一技術和財務顯微鏡下。我們戰略中的一個關鍵驅動因素是加強垂直整合。正如我們不斷聲明的那樣，保管和控制我們的供應鍊是我們車隊利用率和盈利能力的最大驅動力之一。我們對我們的整體槓桿作用仍然非常謹慎。在第三季度，我們的槓桿率為 0.8，我們相信我們有望保持債務與 EBITDA 之比低於 1 周轉的目標。

Before we open the call to your questions, I'd like to reiterate that we are bullish on the future of our industry and even more so on ProFrac as we continue to execute on our "Acquire, Retire, Replace" and Vertical Integration strategies. We plan to continue to redefine what is possible for an oilfield services company. And with that, I will now turn the call to the operator to take your questions.

在我們開始回答您的問題之前，我想重申，我們看好我們行業的未來，尤其是 ProFrac，因為我們將繼續執行我們的“收購、退休、替換”和垂直整合戰略。我們計劃繼續重新定義油田服務公司的可能性。有了這個，我現在將把電話轉給接線員來回答你的問題。

Matt, wait a second. With the day being Veterans Day, I would just like to express my gratitude to all the men and women that have served this country. We would get the opportunity to work with so many veterans here at ProFrac and they've shaped the industry and they shape ProFrac, and I just want to say a special thank you to every one of them. Thank you for your service. Thank you. Go ahead, operator.

馬特，等一下。今天是退伍軍人節，我只想向所有為這個國家服務的男男女女錶示感謝。我們將有機會在 ProFrac 與這麼多資深人士一起工作，他們塑造了這個行業，他們塑造了 ProFrac，我只想特別感謝他們中的每一個人。感謝您的服務。謝謝。來吧，接線員。

Thanks for saying that, Ladd.

謝謝你這麼說，拉德。

(Operator Instructions) Our first questions come from the line of Stephen Gengaro with Stifel.

（操作員說明）我們的第一個問題來自 Stifel 的 Stephen Gengaro。

So two things for me, the first is -- around the U.S. Well Service assets, we were one of a few people who are still covering the stock near the end of its life as a separate company, and clearly, the contract terms seemed under market, but also they suffered, I think, from a lot of under-absorption because the overhead sort of stayed in place while the e-fleets were delivering. Can you give us a sense for the drag? I mean, obviously, we've built some seasonality into your existing assets. But, I know it's -- I think it's 7 active fleets, but are we talking about assets which are making $20 million of EBITDA per fleet or less than that as they (inaudible) into ProFrac and how should we think about the timing of those rolling.

所以對我來說有兩件事，第一是 - 圍繞美國 Well Service 資產，我們是少數幾個仍在作為一家獨立公司在其生命週期結束時繼續關注該股票的人之一，而且很明顯，合同條款似乎在市場，但我認為，他們也遭受了很多吸收不足的影響，因為在電子艦隊交付時，開銷有點留在原地。你能告訴我們阻力嗎？我的意思是，很明顯，我們已經在您現有的資產中加入了一些季節性因素。但是，我知道這是——我認為這是 7 個活躍的艦隊，但我們是在談論資產，每個艦隊的 EBITDA 為 2000 萬美元或低於它們（聽不清）進入 ProFrac 的資產，我們應該如何考慮這些資產的時機滾動。

Yes. I think the best way to answer that is looking at the individual KPIs where we would expect to see somewhere from a 10% to 15% per fleet dilution across our entire fleet. However, when you look at the legacy ProFrac and what we have with our new e-fleet that's been deployed in Q4, the exit rate in Q3 is phenomenal, and we expect to see that carry on as well as the addition of additional bundled fleets. So I think that Q4 is going to be a phenomenal quarter for us over Q3. However, we need to highlight that as we integrate U.S. Well, you will see dilution on our per fleet metrics. However, when we look at these acquisitions, we pride ourselves in our ability to integrate quickly and we're very excited about the opportunity to work with our new customers.

是的。我認為回答這個問題的最佳方法是查看單個 KPI，我們希望在整個 KPI 中看到每個機隊稀釋 10% 到 15%。然而，當您查看遺留的 ProFrac 以及我們在第四季度部署的新電子車隊時，第三季度的退出率是驚人的，我們希望看到這種情況繼續下去以及增加額外的捆綁車隊.所以我認為第四季度對我們來說比第三季度將是一個非凡的季度。然而，我們需要強調的是，當我們整合美國時，你會看到我們每機隊指標的稀釋。然而，當我們審視這些收購時，我們為自己的快速整合能力感到自豪，我們很高興有機會與我們的新客戶合作。

If you were sitting here in 12 months reporting 3Q '23, you had all of the fleets working plus the new ones, would you be surprised if the EBITDA per fleet was below what you just reported?

如果你在 12 個月內坐在這里報告 23 年第三季度，你讓所有機隊都在工作，加上新機隊，如果每個機隊的 EBITDA 低於你剛剛報告的水平，你會感到驚訝嗎？

Can you ask that again?

你能再問一遍嗎？

Your EBITDA per fleet this quarter, if you fold in these fleets and you have the new assets in place, and you're sitting here 12 months from now and its 3Q '23 results, would you be surprised if your EBITDA per fleet wasn't equal to what you just did?

你本季度每個機隊的 EBITDA，如果你折疊這些機隊並且你有新資產，並且你從現在起 12 個月後坐在這裡及其 23 年第三季度的結果，如果你的每個機隊 EBITDA 是'你會感到驚訝嗎？等於你剛才做的？

I would not be surprised.

我不會感到驚訝。

Okay. Right. Just one final one, I mean you guys have been acquisitive, can you sort of...

好的。正確的。只是最後一個，我的意思是你們一直都很貪婪，你們能不能……

Just to clarify, that's kind of a loaded question. I would not be surprised if it's equal to or greater.

只是為了澄清，這是一個有問題的問題。如果它等於或更大，我不會感到驚訝。

Okay. I would [need it], but I was just hoping you would say that. The -- your acquisition strategy has obviously proven to be very positive so far. Can you talk about the kinds of things you're looking at? Is it fleets or are there other things out there that you think could be value enhancing to the ProFrac franchise?

好的。我會 [需要它]，但我只是希望你能這麼說。到目前為止，你的收購策略顯然被證明是非常積極的。你能談談你正在看的東西嗎？它是艦隊還是其他你認為可以提升 ProFrac 特許經營權的東西？

So we're incredibly critical, and we watch everything in the market. We try to stay up with what's going on. But we won't do a transaction that we don't see as highly accretive, and that doesn't fit just right into our overall business. When we look at the vertical integration that we have in place, whether we're looking at pressure pumping equipment or supply chain assets, it needs to be something that fits right in like a puzzle piece and allows us to execute on immediate commercial synergies, whether that's through better operational performance or from bringing a higher contribution margin across the bundling of these fleets.

所以我們非常挑剔，我們觀察市場上的一切。我們努力跟上正在發生的事情。但我們不會進行我們認為不具有高度增值性且不適合我們整體業務的交易。當我們審視我們現有的垂直整合時，無論我們是在審視壓力泵設備還是供應鏈資產，它都需要像拼圖一樣恰到好處，並允許我們立即執行商業協同效應，無論是通過更好的運營績效，還是通過捆綁這些車隊帶來更高的邊際收益。

Our next question has come from the line of Dan Kutz with Morgan Stanley.

我們的下一個問題來自摩根士丹利的 Dan Kutz。

I wanted to ask on shareholder returns, what you guys' latest thinking is as your latest strategy is there. I appreciate that there's -- that -- it seems like a dividend is probably what you guys have messaged as being the most attractive, but there is some more float out there with the U.S. Well Services acquisition. So just wondering if buybacks would be contemplated at any point, but just wondering if we could hear your latest thoughts on your shareholder return strategy?

我想問一下股東回報，你們最新的想法是什麼，因為你們最新的戰略在那裡。我很欣賞 - 那 - 似乎股息可能是你們所傳達的最具吸引力的信息，但隨著美國 Well Services 的收購，還有更多的浮動。所以只是想知道是否會在任何時候考慮回購，但只是想知道我們是否能聽到您對股東回報策略的最新想法？

Certainly. So we don't expect to see any buybacks just because we want to make sure that we have a very high-quality float that provides the liquidity that our shareholders look for. As far as shareholder returns, of course, this is a controlled company, and so what we hope is that everybody appreciates and recognizes just how aligned the interests are and being able to return capital to stakeholders quicker or sooner than later.

當然。因此，我們不希望看到任何回購，只是因為我們想確保我們擁有非常高質量的流通股，以提供股東所尋求的流動性。就股東回報而言，當然，這是一家受控公司，因此我們希望每個人都能欣賞並認識到利益的一致性，並能夠更快或更早地將資本返還給利益相關者。

At this time, I can't provide guidance on that, only that we continue to perform exceptionally well, generating exceptional results, and we expect that to continue in a way that would allow us to provide better guidance in a much more material way. And along those lines, look, everything we do is about rightsizing the business, scaling the vertical integration so that we can increase the total returns on a per asset basis. So, with that respect, this is all about expanding the business so that we can deliver distributable cash flow and then return it to our stakeholders. So, this is a very high commitment that we have with this organization, and we look forward to providing further guidance in the near future.

目前，我無法就此提供指導，只能說我們繼續表現出色，產生出色的結果，我們希望這種情況繼續下去，使我們能夠以更物質的方式提供更好的指導。沿著這些思路，看，我們所做的一切都是關於調整業務規模，擴大垂直整合，以便我們可以增加每項資產的總回報。因此，在這方面，這一切都是為了擴大業務，以便我們能夠提供可分配的現金流，然後將其返還給我們的利益相關者。因此，這是我們對這個組織的高度承諾，我們期待在不久的將來提供進一步的指導。

Great. That all makes a lot of sense. And then, I just want to ask on appreciate putting out the slide kind of outlining the economics, especially with respect to fuel cost between the diesel fleet for dual fuel fleet and an electric fleet. I just wanted to ask or get you guys thoughts on the extent to which you're actually seeing the disparity that you're highlighting kind of materialize out in the market? Can we kind of take that illustrative example and kind of apply it to what the earnings power of those different tiers of fleets actually is? Or is that something that you think kind of -- there still needs to be a transition process before that's kind of fully realized in the market. Just wondering if you could kind of expand on that illustration a little bit more.

偉大的。這一切都很有道理。然後，我只想問一下，感謝放出概述經濟學的幻燈片，特別是關於雙燃料車隊的柴油車隊和電動車隊之間的燃料成本。我只是想問問或讓你們想一想你們在多大程度上真正看到了你們所強調的差異在市場上的具體化？我們能否舉出這個說明性的例子，並將其應用於那些不同級別車隊的實際盈利能力？或者是你認為的那種東西——在市場上完全實現之前仍然需要一個過渡過程。只是想知道您是否可以進一步擴展該插圖。

Certainly. It's really all of those, and I'm not going to provide any specific detail on one fleet to the next, only that the total savings and the arbitrage between diesel and natural gas has only increased. It continues to increase, and the way that, that factors in commercially as well as with the decisions that our customers make on how they plan their budgets is increasingly a part of that calculus. It's increasingly a part of the decision that they have to make and how they treat their vendors when they're making these decisions. So, we highlight that specifically so that we can show just how material this transition is, we can't provide guidance on how long that transition will take, but we believe that it is certainly an element that should be factored in associated with this upgrade cycle and how you think about the availability of horsepower on a go-forward basis. This is an upgrade cycle and certainly not a new-build cycle. The displacement that you see from fuel-efficient next-gen fleets is real, and it's highlighted by the excessive costs of diesel relative to the natural gas that is being replaced with.

當然。這真的是所有這些，我不會提供關於一個機隊到下一個機隊的任何具體細節，只是柴油和天然氣之間的總節省和套利只會增加。它繼續增加，並且這種方式在商業上以及我們的客戶就他們如何計劃預算做出的決定中越來越成為該演算的一部分。這越來越成為他們必須做出的決定以及他們在做出這些決定時如何對待供應商的一部分。因此，我們特別強調這一點，以便我們可以展示這種轉變的實質性，我們無法提供這種轉變需要多長時間的指導，但我們相信它肯定是與這次升級相關的一個因素週期以及您如何考慮未來的馬力可用性。這是一個升級週期，當然不是新建週期。您從節能的下一代車隊中看到的置換是真實的，柴油相對於被替代的天然氣的成本過高突出了這一點。

Our next questions come from the line of Don Crist with Johnson Rice.

我們的下一個問題來自 Don Crist 與 Johnson Rice 的對話。

Thank you for the lively hold music. It's very appropriate with your change in ticker. I wanted to talk about maintenance and maintenance overall, but in specifics, the $30 million that you're spending to streamline operations and get your fleets back out quicker. Can you contrast that to what the rest of the pressure pumping industry does, i.e., if they're going through Warren-Cat or something like that, can you talk about the difference in time between them repairing their fleets and yours and just how you're differentiated there?

謝謝你的歡快hold音樂。這非常適合您對代碼的更改。我想談談整體的維護和維護，但具體來說，您花費 3000 萬美元來簡化運營並讓您的車隊更快地撤離。您能否將其與其他壓力泵行業所做的事情進行對比，即，如果他們正在經歷 Warren-Cat 或類似的事情，您能否談談他們修理車隊和您的車隊之間的時間差異以及您如何那裡有區別？

Certainly, certainly, and I'm glad you asked. So when you look at having third parties come in and rebuild your engines or rebuild your transmissions, you're looking at a very long lead time where you could see that equipment gone for anywhere from 8 weeks or more before you see it again or before you're able to pump again. And with our in-house resources, we were able to get that down to around 3- to 4-week time frame. But, with this new growth initiative that we put in place, we're able to keep swing units in the district, on engines, transmissions and power ends so that we can turn those pumps back to service within a 72-hour time frame. So when we look at this, it's basically the equivalent of reducing a pit cruise pit stop from 2 minutes and 40 seconds to 10 seconds. It's just -- it is incredible.

當然，當然，我很高興你問了。因此，當您考慮讓第三方進來重建您的引擎或重建您的變速箱時，您會看到很長的交付週期，您可能會看到該設備在您再次看到它之前或之前在任何地方使用了 8 週或更長時間你可以再次抽水。借助我們的內部資源，我們能夠將時間縮短到 3 到 4 週左右。但是，通過我們實施的這項新的增長計劃，我們能夠在該地區的發動機、變速箱和動力端保留迴轉裝置，以便我們可以在 72 小時的時間範圍內將這些泵重新投入使用。所以當我們看這個的時候，它基本上相當於將維修巡航進站的時間從 2 分 40 秒減少到 10 秒。這只是 - 這太不可思議了。

But the best part is our maintenance CapEx on a per unit basis is relatively unchanged. It's relatively consistent, and so when you look at how that race car goes around the track, those tires wear out at the same pace at the same rate on the miles driven and the fuel consumption, it consumes the same amount of fuel going around that track. And so the wear and tear with this program that we put in place keeps everything relatively consistent. However, this is a true improvement on our pit crew that reduces the downtime of any of that equipment and a product of that is a significant reduction in the amount of horsepower that is tied up in that static state waiting to be repaired and put back into service.

但最好的部分是我們在單位基礎上的維護資本支出相對沒有變化。它是相對一致的，所以當你看那輛賽車如何在賽道上行駛時，這些輪胎在行駛里程和油耗上以相同的速度以相同的速度磨損，它在賽道上消耗的燃油量相同追踪。因此，我們實施的這個程序的磨損使一切保持相對一致。然而，這對我們的維修人員來說是一個真正的改進，它減少了任何設備的停機時間，其結果是顯著減少了在等待維修和恢復的靜態狀態下佔用的馬力。服務。

It's very impressive. And on the sand mines, West Munger seems to be a little bit delayed versus prior expectations, but it seems like it's going to come on later this month. Can you just talk about the ramp-up there? And any guidance around sand volumes as we go into the fourth quarter? Obviously, I believe they'll ramp up a little bit, but it's a little bit hard for us to model what contribution sand may have in the overall going forward.

這非常令人印象深刻。而在砂礦方面，West Munger 似乎比之前的預期有點延遲，但似乎會在本月晚些時候到來。你能談談那裡的增長嗎？進入第四季度時，關於沙量的任何指導？顯然，我相信它們會增加一點，但我們很難模擬沙子對未來整體的貢獻。

Typically, with the new mine, you'll have a ramp-up period that can range anywhere from 2 to 4 months. Obviously, our expectation and our goal is to certainly beat that and beat the better book end that I just provided. But for modeling purposes, I think it's safe to use the 2 to 4 months. And hey, I got to give us something that we can beat so that we look good every quarter.

通常，對於新礦，您將有一個 2 到 4 個月不等的啟動期。顯然，我們的期望和目標是一定要超越它，超越我剛剛提供的更好的書尾。但出於建模目的，我認為使用 2 到 4 個月是安全的。嘿，我必須給我們一些我們可以擊敗的東西，這樣我們每個季度看起來都不錯。

Yes. Don, I would also add that we just started running wet sand out there now. So we should be starting that very soon, where our plan is to be shipping sand by the 20th this month.

是的。唐，我還要補充一點，我們現在才剛剛開始在那裡運行濕沙。所以我們應該很快開始，我們的計劃是在本月 20 日之前運送沙子。

Okay. That's good to hear. And just one more quick one, maybe for Lance. As you roll in U.S. Well Services, any guidance around SG&A, I'm sure that it's going to go up some, but is that going to be like a couple of million dollars a quarter? Or is it a little bit more than that?

好的。聽起來還不錯。再快一點，也許是給蘭斯的。當你在美國 Well Services 推出時，任何關於 SG&A 的指導，我相信它會上漲一些，但這會像每季度幾百萬美元一樣嗎？還是比這多一點？

It will be a little bit more than that. I think they were running about $20 million per year. And I think that it will take us a little bit of time to kind of realize the synergies that we laid out when we announced the transaction, but we feel good about realizing those over the next, call it, 6 months.

它會比那多一點。我認為他們每年運營約 2000 萬美元。而且我認為我們需要一點時間來實現我們在宣布交易時提出的協同效應，但我們對在接下來的 6 個月內實現這些協同效應感覺很好。

Okay, so probably just under $5 million or so. I appreciate it. I'll turn it back.

好的，所以可能不到 500 萬美元左右。我很感激。我會把它轉回去。

Our next questions come from the line of Saurabh Pant with Bank of America.

我們的下一個問題來自 Saurabh Pant 與美國銀行的合作。

I wanted to start on, I think, a comment you made in your prepared remarks that the 2023 book of work is the strongest in 14 years, which is obviously very impressive. Can you talk to that a little bit, what kind of visibility do you have? What are you seeing across public and private E&Ps and maybe the majors. Can you just speak to that a little bit?

我想開始，我想，你在準備好的發言中發表的評論說，2023 年的工作簿是 14 年來最強的，這顯然非常令人印象深刻。你能談談那個嗎，你有什麼樣的知名度？您在公共和私人 E&P 以及專業領域看到了什麼。你能談談嗎？

Certainly. So when we look at the environment, the strength of the commodities and the outlook for each of our customers, we see our backlog filling up in the strongest way that we have in any previous year. For 2023, we think that this carries over into a very strong year-over-year increase of activity. However, when we look at our peer class and the current state of the oilfield services market with the challenging supply chain, what we're looking at is a fully sold-out market with a difficult outlook in the industry's ability to respond to that higher spending level and higher activity levels that the customers are demanding. So, this positions us incredibly well with our vertical integration, our superior supply chain management, and the next-gen fleets that we have that allows us to get higher utilization at a lower total cost to the customer while also providing industry-leading service and utilization.

當然。因此，當我們審視環境、大宗商品的實力以及我們每個客戶的前景時，我們看到我們的積壓訂單以往年最強勁的方式填滿。對於 2023 年，我們認為這會延續到非常強勁的同比增長。然而，當我們審視我們的同行和供應鏈充滿挑戰的油田服務市場的現狀時，我們看到的是一個完全售罄的市場，該行業應對更高需求的能力前景艱難客戶要求的消費水平和更高的活動水平。因此，這使我們在垂直整合、卓越的供應鏈管理和我們擁有的下一代機隊方面處於非常有利的位置，使我們能夠以更低的總成本為客戶獲得更高的利用率，同時還提供行業領先的服務和利用。

Okay, perfect. And then maybe I don't know if you're in a position to stick to 2023 CapEx right now, but if you can give us some direction guidance or walk us through the moving pieces, that would be helpful.

好的，完美。然後也許我不知道你現在是否能夠堅持 2023 年資本支出，但如果你能給我們一些方向指導或引導我們完成移動部分，那會很有幫助。

Yes, we're still going through the process, specifically kind of absorbing U.S. Well and getting that set for next year. But I wouldn't expect it to be all different from this year. We'll have more maintenance because of the higher fleets. I think we're looking at around, call it, $3 million per fleet per year, $3 million to $3.5 million. But then the growth initiatives we're outlining now, and so we'll have a bottoms-up build as we look forward, but I wouldn't expect it to be that different.

是的，我們仍在經歷這個過程，特別是吸收美國井並為明年做好準備。但我不希望它與今年完全不同。由於更高的機隊，我們將有更多的維護。我認為我們正在四處尋找，稱之為每年每支艦隊 300 萬美元，300 萬至 350 萬美元。但是我們現在概述的增長計劃，因此我們將在展望未來時進行自下而上的構建，但我不希望它有那麼大的不同。

Okay, so broad strokes, you're thinking $330 million to $350 million...

好吧，粗略地說，你在想 3.3 億到 3.5 億美元……

Probably a broader range, somewhere $275 million to $350 million range.

可能範圍更廣，大約在 2.75 億美元到 3.5 億美元之間。

Okay, I get it. And just one last one quickly for me. I think you said in your prepared remarks, you're going from upgrading 5 to 10 engines per month to now 10 to 20 engines per month. Obviously, it looks like that's back by demand from your customers. But how should we read into that from a supply chain perspective? Is supply chain easing, so is that you are able to get more engines per month just for a broader readthrough on the market -- on the supply chain front?

好的，我明白了。對我來說只是最後一個。我想你在準備好的發言中說過，你將從每月升級 5 到 10 個引擎到現在每月 10 到 20 個引擎。顯然，這看起來像是應客戶的需求而支持的。但是我們應該如何從供應鏈的角度來解讀它呢？供應鍊是否正在放鬆，那麼您是否能夠每月獲得更多引擎，只是為了在市場上進行更廣泛的閱讀——在供應鏈方面？

Yes. So it's difficult to say what this does to the overall market. We've got incredible relationships with our vendors, with the OEMs. And so when it comes to our scale, I think that gives us a unique relationship and contact with those vendors, and so we've been working with them, we've had programs in place. And really, even through the COVID years, we were switching to Tier 4 then, and maintained that relationship with these vendors. And I think that carries through really well in times like these when we're putting orders in to expand or accelerate our upgrade programs.

是的。所以很難說這對整個市場有什麼影響。我們與我們的供應商和 OEM 建立了令人難以置信的關係。因此，當談到我們的規模時，我認為這給了我們與這些供應商的獨特關係和聯繫，所以我們一直在與他們合作，我們已經制定了計劃。實際上，即使在 COVID 年期間，我們當時也在切換到第 4 層，並與這些供應商保持這種關係。而且我認為，當我們下訂單以擴展或加速我們的升級計劃時，在這樣的時候，這種情況會很好地進行。

I would now like to turn the floor back over to management for any closing comments.

我現在想將發言權交還給管理層，徵求任何結束意見。

Q3 was incredible, but it's behind us. And we're right in the middle of Q4, and we're very excited about what we're seeing, how our crews are working, the utilization of our equipment and the quality of our customers. We're very excited to be where we are and to continue improving and pushing the industry forward. We especially look forward to 2023 and what we can deliver on distributable cash flow for our stakeholders. And unless anyone else has anything to say I'd just say thank you to all the veterans, and have a good day.

第三季度令人難以置信，但它已經過去了。我們正處於第四季度中期，我們對所看到的、我們的工作人員的工作方式、我們設備的利用率和我們客戶的質量感到非常興奮。我們很高興能夠成為我們所處的位置，並繼續改進和推動行業向前發展。我們特別期待 2023 年以及我們可以為利益相關者提供可分配現金流量。除非其他人有話要說，否則我只想對所有退伍軍人說聲謝謝，祝你有美好的一天。

Ladies and gentlemen, thank you for your participation. This does conclude today's teleconference. You may disconnect your lines at this time. Have a great weekend.

女士們，先生們，感謝你們的參與。今天的電話會議到此結束。此時您可以斷開線路。週末愉快。