Forum Energy Technologies Inc (FET) 2022 Q4 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to the Forum Energy Technologies Fourth Quarter 2022 Earnings Conference Call. My name is Gigi, and I will be your coordinator for today's call. (Operator Instructions) This conference call is being recorded for replay purposes and will be available on the company's website.

早上好，女士們，先生們，歡迎來到 Forum Energy Technologies 2022 年第四季度收益電話會議。我叫吉吉，我將擔任今天電話會議的協調員。 （操作員說明）正在錄製此電話會議以供重播，並將在公司網站上提供。

I will now turn the conference over to Rob Kukla, Director of Investor Relations. Please proceed, sir.

我現在將會議轉交給投資者關係總監 Rob Kukla。請繼續，先生。

Thank you, Gigi. Good morning, everyone, and welcome to FET's Fourth Quarter 2022 Earnings Conference Call. With me today are Neal Lux, our President and Chief Executive Officer; and Lyle Williams, our Chief Financial Officer. We issued our earnings release yesterday, and it is available on our website.

謝謝你，吉吉。各位早上好，歡迎來到 FET 的 2022 年第四季度收益電話會議。今天和我在一起的是我們的總裁兼首席執行官 Neal Lux；和我們的首席財務官 Lyle Williams。我們昨天發布了收益報告，可以在我們的網站上找到。

Please note that we are relying on the safe harbor protections afforded by federal law. Listeners are cautioned that our remarks today may contain information other than historical information. These remarks should be considered in the context of all factors that affect our business, including those disclosed in FET's Form 10-K and our other SEC filings. Finally, management's statements may include non-GAAP financial measures. For a reconciliation of these measures, you may refer to our earnings release.

請注意，我們依賴聯邦法律提供的安全港保護。聽眾請注意，我們今天的講話可能包含歷史信息以外的信息。這些評論應在影響我們業務的所有因素的背景下加以考慮，包括 FET 的 10-K 表格和我們向美國證券交易委員會提交的其他文件中披露的那些因素。最後，管理層的報表可能包括非 GAAP 財務指標。有關這些措施的協調，您可以參考我們的收益發布。

During today's call, all statements related to EBITDA refer to adjusted EBITDA. And unless otherwise noted, all comparisons are fourth quarter 2022 to third quarter 2022. I will now turn the call over to Neal.

在今天的電話會議中，所有與 EBITDA 相關的陳述均指調整後的 EBITDA。除非另有說明，否則所有比較都是從 2022 年第四季度到 2022 年第三季度。我現在將電話轉給尼爾。

Thank you, Rob, and good morning, everyone. Reflecting on our 2022 achievement, I am pleased to say that we exceeded expectations. And as we will discuss during today's call, I think FET is just getting started. Let's begin with some key highlights from our annual and fourth quarter results and our debt conversion.

謝謝羅布，大家早上好。回顧我們 2022 年的成就，我很高興地說我們超出了預期。正如我們將在今天的電話會議上討論的那樣，我認為 FET 才剛剛開始。讓我們從我們的年度和第四季度業績以及我們的債務轉換中的一些主要亮點開始。

Our teams delivered strong 2022 financial results. We ended the year with the highest backlog since 2018. Revenue and EBITDA grew by 29% and 194%, respectively, on a year-over-year basis. Also during the year, we increased our gross margins by 230 basis points and doubled our EBITDA margin to over 8%. This growth reflects our operating leverage and differentiated product portfolio.

我們的團隊在 2022 年取得了強勁的財務業績。我們以自 2018 年以來最高的未完成訂單結束了這一年。收入和 EBITDA 分別同比增長 29% 和 194%。同樣在這一年中，我們的毛利率提高了 230 個基點，EBITDA 利潤率翻了一番，達到 8% 以上。這種增長反映了我們的經營槓桿和差異化的產品組合。

In the fourth quarter, we had robust bookings and revenue growth of 35% and 29%, respectively, year-over-year. Demand for our products and solutions remains strong. EBITDA of $17 million was within our quarterly guidance range and up nearly 300% versus fourth quarter 2021. Finally, and most importantly, for the company's future performance, we were able to significantly improve our balance sheet during the quarter with the conversion of our long-term debt to common stock.

第四季度，我們的預訂量和收入同比分別增長了 35% 和 29%。對我們的產品和解決方案的需求依然強勁。 1700 萬美元的 EBITDA 在我們的季度指導範圍內，與 2021 年第四季度相比增長了近 300%。最後，也是最重要的是，對於公司未來的業績，我們能夠在本季度通過長期轉換來顯著改善我們的資產負債表-普通股的定期債務。

The conversion marks a significant milestone for a number of reasons. First, pro forma for the conversion. Our year-end net debt was approximately $83 million or 1.4x full year 2022 adjusted EBITDA. FET's credit rating was upgraded as a result of our significantly reduced leverage. Second, the conversion nearly doubled our market capitalization and our daily trading volume has increased substantially. Both of these factors have improved our investment profile. Third, the reduction in debt decreases FET's annual cash interest payments by roughly $11 million, enhancing our free cash flow conversion. And finally, the balance of our long-term debt is now significantly below year-ending liquidity.

由於多種原因，轉換標誌著一個重要的里程碑。首先，轉換的備考。我們的年終淨債務約為 8300 萬美元，是 2022 年全年調整後 EBITDA 的 1.4 倍。由於我們顯著降低杠桿率，FET 的信用評級上調。其次，轉換後我們的市值幾乎翻了一番，我們的每日交易量大幅增加。這兩個因素都改善了我們的投資狀況。第三，債務的減少使 FET 的年度現金利息支付減少了大約 1100 萬美元，從而增強了我們的自由現金流轉換。最後，我們的長期債務餘額現在大大低於年底的流動性。

This achievement opens up several strategic options, including share repurchases, further debt reductions and acquisitions. Lyle will discuss these options in greater detail during his remarks. In addition to strategic options, we have an incredible foundation for organic growth as a result of the attributes I listed during our earnings call in February 2022. One, our employees are key differentiators; two, industry fundamentals are expected to remain strong; three, FET is continuing to develop and launch innovative products and solutions; four, we have opportunities for significant margin expansion; and five, FET is positioned to access growing markets outside oil and gas. And now we can add a sixth attribute, a solid balance sheet bolstered with meaningful positive free cash flow.

這一成就開闢了幾個戰略選擇，包括股票回購、進一步削減債務和收購。 Lyle 將在他的發言中更詳細地討論這些選項。除了戰略選擇之外，由於我在 2022 年 2 月的財報電話會議上列出的屬性，我們還擁有令人難以置信的有機增長基礎。第一，我們的員工是關鍵的差異化因素；二、行業基本面有望保持強勁；三、FET不斷開發和推出創新的產品和解決方案；第四，我們有機會大幅擴大利潤率；第五，FET 定位於進入石油和天然氣以外的不斷增長的市場。現在我們可以添加第六個屬性，一個堅實的資產負債表，由有意義的正自由現金流支撐。

Our colleagues at FET are dedicated and focused on delivering value to the customer and the company. And as we demonstrated with our impressive bookings in 2022, customers see the value we bring through technology, innovation and quality. Today, our customers are in a good financial position because industry fundamentals are solid. While commodity prices have recently moderated some forecasters such as the International Energy Agency, expect oil demand to surpass supply in the second half of 2023.

我們在 FET 的同事致力於並專注於為客戶和公司創造價值。正如我們在 2022 年令人印象深刻的預訂所展示的那樣，客戶看到了我們通過技術、創新和質量帶來的價值。今天，我們的客戶財務狀況良好，因為行業基本面穩固。雖然大宗商品價格最近有所緩和，但國際能源署等一些預測機構預計石油需求將在 2023 年下半年超過供應。

This should put a floor under activity now and provide incentives for a prolonged energy investment cycle. While increasing industry activity provides a tailwind for growth, we want SET to grow faster than the market. To accomplish this goal, we are introducing products and technologies that our customers value. Our key components and consumable products enhance our customers' long-life assets to make energy production safer, cleaner and more efficient. For example, we recently showcased our new FASTConnect Frac Automated Switch Technology System at a Society of Petroleum Engineers technical conference.

這應該為現在的活動奠定基礎，並為延長能源投資週期提供激勵。雖然不斷增加的行業活動為增長提供了順風，但我們希望 SET 的增長速度快於市場。為實現這一目標，我們正在推出客戶看重的產品和技術。我們的關鍵部件和消耗品可增強客戶的長期資產，使能源生產更安全、更清潔、更高效。例如，我們最近在石油工程師協會技術會議上展示了我們新的 FASTConnect Frac 自動切換技術系統。

The FASTConnect System allows service companies to perform hydraulic frac operations without a traditional zipper manifold. Through automation, our solution increases the safety of field personnel and stages completed per day while eliminating a significant portion of a manifold operating expense. In addition, the FASTConnect System significantly improves the environmental impact of a frac fleet by eliminating the grease consumed. If our system was adopted on every zipper frac fleet, we estimate operators would eliminate 18 million pounds of grease from their well sites per year.

FASTConnect 系統允許服務公司在沒有傳統拉鍊歧管的情況下執行水力壓裂操作。通過自動化，我們的解決方案提高了現場人員和每天完成的階段的安全性，同時消除了歧管運營費用的很大一部分。此外，FASTConnect 系統通過消除所消耗的油脂，顯著改善了壓裂車隊對環境的影響。如果我們的系統在每個拉鍊式壓裂車隊中得到採用，我們估計運營商每年將從他們的井場中消除 1800 萬磅的油脂。

The environmental improvement would be astounding. The total addressable market in the United States for this solution is between $300 million to $500 million. As an asset-light manufacturer with an international footprint, we address key markets around the world. A great example is a recent electrostatic desalter system award from one of the largest national oil companies in the world. The system will utilize FET's edge desalting technology and for mix, our high-efficiency multiphase technology.

環境的改善將是驚人的。該解決方案在美國的總潛在市場在 3 億至 5 億美元之間。作為一家業務遍布全球的輕資產製造商，我們面向全球主要市場。一個很好的例子是最近由世界上最大的國家石油公司之一頒發的靜電脫鹽系統獎。該系統將利用 FET 的邊緣脫鹽技術和我們的高效多相混合技術。

The contract has a value of approximately $25 million, with potential for meaningful subsequent awards. I'm extremely proud of everything we accomplished in 2022, but it's time to focus on 2023. As I mentioned earlier, I'm excited about FET's future. Long-term, market fundamentals remain strong. Supply and demand imbalances will continue to fuel the need for more investment. However, there are mixed views on where the U.S. rig count goes from here. We anticipate moderate rig count growth during the year with the trajectory to be determined. However, equipment utilization and service intensity will remain at high levels. Our customers are telling us they are sold out and have essentially no spare capacity.

該合同的價值約為 2500 萬美元，後續可能會授予有意義的合同。我為我們在 2022 年取得的一切成就感到非常自豪，但現在是時候關注 2023 年了。正如我之前提到的，我對 FET 的未來感到興奮。長期來看，市場基本面依然強勁。供需失衡將繼續推動對更多投資的需求。然而，對於美國鑽井平台數量從何而來的看法不一。我們預計年內鑽機數量將適度增長，增長軌跡待定。但設備利用率和服務強度仍將保持較高水平。我們的客戶告訴我們他們已經賣光了，基本上沒有閒置產能。

As their older equipment wears out, customers are upgrading and replacing it with more efficient and advanced capital items from our product catalogs. As we demonstrated in 2022, increased demand for our differentiated products will enable us to further grow our EBITDA margin. The international markets are ramping up and FET will be there to participate in the growth. Historically, international revenue has been between 40% to 50% of total revenue as international markets grow, so do we.

隨著他們的舊設備磨損，客戶正在升級並用我們產品目錄中更高效、更先進的資本項目替換它。正如我們在 2022 年所展示的那樣，對我們差異化產品的需求增加將使我們能夠進一步提高 EBITDA 利潤率。國際市場正在加速發展，FET 將參與其中。從歷史上看，隨著國際市場的增長，國際收入佔總收入的 40% 至 50%，我們也是如此。

And I believe that FET has a unique advantage with an optimized global footprint with a select number of manufacturing and distribution hubs that can strategically supply our customers with the products and solutions they need anywhere in the world. In addition, we can service nearly every oil and gas producing country without spending any additional capital or adding roof light. We can ship anywhere. The offshore market is also heating up. Through 2022, the offshore drilling rig count has increased meaningfully.

而且我相信 FET 具有獨特的優勢，優化的全球足跡以及精選數量的製造和分銷中心可以戰略性地為我們的客戶提供他們在世界任何地方所需的產品和解決方案。此外，我們幾乎可以為每個石油和天然氣生產國提供服務，而無需花費任何額外資金或增加屋頂燈。我們可以運送到任何地方。離岸市場也在升溫。到 2022 年，海上鑽井平台數量顯著增加。

Service intensity of offshore operations exceeds land-based activity and drives additional demand for FET products. In the near term, this reactivation should benefit our drilling capital products for mud systems and tubular handling operations. Over the longer term, growing subsea activity should drive demand for our world-class and inspection ROVs and related products. With the opportunities we see in front of us, I am confident we can deliver revenue and EBITDA growth and generate strong free cash flow in 2023. We, therefore, expect EBITDA to be in the range of $80 million to $100 million and free cash flow of $20 million to $40 million.

離岸業務的服務強度超過陸上活動，推動了對 FET 產品的額外需求。在短期內，這種重新激活應該有利於我們用於泥漿系統和管道處理操作的鑽井資本產品。從長遠來看，不斷增長的海底活動應該會推動對我們世界級和檢查 ROV 及相關產品的需求。面對眼前的機遇，我相信我們能夠在 2023 年實現收入和 EBITDA 增長，並產生強勁的自由現金流。因此，我們預計 EBITDA 將在 8000 萬至 1 億美元之間，自由現金流2000 萬至 4000 萬美元。

I will turn the call over to Lyle for more detail on fourth quarter results, outlook for the first quarter of 2023 and our capital deployment options.

我將把電話轉給 Lyle，以了解有關第四季度業績、2023 年第一季度展望和我們的資本部署選項的更多詳細信息。

Thank you, Neal. Good morning, everyone. Overall, FET's fourth quarter financial performance met or exceeded our expectations. Revenue of $191 million beat the top end of our guidance. At 5% growth, we outpaced the U.S. rig count as demand for our products and services remain strong. EBITDA of $17 million fell within our guidance, although our incremental profitability did not meet our expectations.

謝謝你，尼爾。大家，早安。總體而言，FET 第四季度的財務業績達到或超出了我們的預期。 1.91 億美元的收入超過了我們指導的上限。由於對我們產品和服務的需求依然強勁，我們以 5% 的增長率超過了美國的鑽機數量。 1700 萬美元的 EBITDA 在我們的指導範圍內，儘管我們的增量盈利能力沒有達到我們的預期。

During the quarter, 2 projects, one in our Subsea Technologies and 1 in our quote tubing product lines, generated unfavorable cost variances totaling over $2 million. Shifting to our operations. Each of our business segments posted increased revenue for the fourth quarter. Drilling and downhole segment revenue was $81 million, up 7%, led by higher demand for drilling handling tools and capital equipment.

本季度，有 2 個項目（一個在我們的 Subsea Technologies 中，一個在我們的報價油管產品線中）產生了總計超過 200 萬美元的不利成本差異。轉向我們的運營。我們的每個業務部門都公佈了第四季度的收入增長。鑽井和井下部門收入為 8100 萬美元，增長 7%，這主要是由於對鑽井搬運工具和資本設備的需求增加。

Our drilling downhole and subsea product lines all increased revenue. Drilling and downhole segment orders increased by 19%, with a book-to-bill of 108%, driven by strong demand for drilling capital, handling tools and bearings. This momentum should continue as global rig count grows, particularly outside the U.S. The segment currently generates roughly 50% of its revenue from international sales. Despite the revenue growth, segment EBITDA decreased $2 million compared with a strong third quarter.

我們的井下鑽探和海底產品線都增加了收入。受對鑽井資金、搬運工具和軸承的強勁需求推動，鑽井和井下部門訂單增長了 19%，訂單出貨率為 108%。隨著全球鑽機數量的增長，尤其是在美國以外的地區，這種勢頭應該會持續下去。該部門目前約有 50% 的收入來自國際銷售。儘管收入增長，但與強勁的第三季度相比，該部門的 EBITDA 減少了 200 萬美元。

Subsea project costs and increased freight expenses partially offset the revenue growth. Unfavorable product mix and year-end production variances also impacted performance. Completions segment revenue was $74 million, a 3% increase with higher demand for pressure control equipment as well as radiators and power ends supporting pressure pumping activity. Quality wireline revenue grew 7%, breaking the revenue record set last quarter. Bookings for the Completions segment were $81 million, up 3%, resulting in a book-to-bill ratio of 110%. We secured a number of Jumbotron radiator orders that will be paired with environmentally friendly dual gas blend engines for frac fleet upgrades. In addition, we received a sizable order for pressure control equipment destined for international markets. These awards were partially offset by lower orders for stimulation and coiled tubing products following large project bookings we received in the third quarter. Completion segment EBITDA was $9 million, down $1 million. Higher revenues were offset by unexpected project costs in coiled tubing, unfavorable sales mix and higher freight costs. In our production segment, revenue was $36 million, up 5%, primarily led by higher demand for production equipment. Production segment bookings were $47 million for the quarter, comparable with the third quarter. The book-to-bill ratio remained strong at 130% as demand for our surface processing equipment and technology continues. Production segment EBITDA was $2 million, up $1 million primarily on increased volume, favorable sales mix and operating leverage in our production equipment product line. EBITDA margins at 4.7% continue a positive improvement trend, bettering the 3.5% in the third quarter. The segment will drive margin improvement through operating leverage, continued cost management and focusing on higher-margin, emission reduction and alternative energy applications in the longer term. Inventory management has been a key focus area for us. In the first quarter 2022, we proactively built inventory to buffer our customers from the supply chain disruptions many companies faced. As the year progressed, we challenged our operations to normalize inventory levels and increase turns. Supply chain performance remains volatile, and in some cases, put a strain on our margins and ability to deliver. For example, due to the supply chain challenges in the fourth quarter, we expedited materials in support of commitments made to our customers. This accounted for most of the higher freight expenses I mentioned earlier. In addition, throughout 2022, steel price inflation and availability impacted margins in our coiled tubing and production equipment product lines.

海底項目成本和增加的運費部分抵消了收入增長。不利的產品組合和年終生產差異也影響了業績。完井部門收入為 7400 萬美元，增長 3%，原因是對壓力控制設備以及支持壓力泵活動的散熱器和動力端的需求增加。優質有線收入增長 7%，打破上季度創下的收入記錄。完工業務部門的預訂額為 8100 萬美元，增長 3%，訂單出貨率為 110%。我們獲得了一些 Jumbotron 散熱器訂單，這些訂單將與環保雙燃氣混合發動機搭配使用，用於壓裂車隊升級。此外，我們還收到了一份運往國際市場的壓力控制設備的大訂單。在第三季度收到大型項目預訂後，增產和連續油管產品的訂單減少部分抵消了這些獎勵。完成部分 EBITDA 為 900 萬美元，減少 100 萬美元。連續油管的意外項目成本、不利的銷售組合和更高的運費抵消了更高的收入。在我們的生產部門，收入為 3600 萬美元，增長 5%，主要是由於對生產設備的需求增加。生產部門本季度的預訂額為 4700 萬美元，與第三季度相當。由於對我們的表面處理設備和技術的需求持續增長，訂單出貨比保持在 130% 的強勁水平。生產部門 EBITDA 為 200 萬美元，增加 100 萬美元，主要是由於我們生產設備產品線的產量增加、銷售組合有利以及經營槓桿。 4.7% 的 EBITDA 利潤率繼續保持積極的改善趨勢，優於第三季度的 3.5%。該部門將通過運營槓桿、持續的成本管理以及長期關注更高利潤、減排和替代能源應用來推動利潤率的提高。庫存管理一直是我們關注的重點領域。在 2022 年第一季度，我們主動建立庫存，以緩沖我們的客戶免受許多公司面臨的供應鏈中斷的影響。隨著時間的推移，我們對我們的運營提出挑戰，使庫存水平正常化並增加周轉率。供應鏈績效仍然不穩定，在某些情況下，對我們的利潤和交付能力造成壓力。例如，由於第四季度的供應鏈挑戰，我們加快了材料以支持對客戶做出的承諾。這佔了我之前提到的較高運費的大部分。此外，在整個 2022 年，鋼材價格上漲和可用性影響了我們連續油管和生產設備產品線的利潤率。

We struggled to increase prices to offset this inflation due to competitive dynamics and in the case of production equipment due to the long lead time between our receipt of orders and ultimate shipment. We expect these steel and freight impacts to normalize through 2023. Free cash flow of $45 million was a highlight for the quarter. This result includes $32 million from our November 2022 sale-leaseback transaction. These proceeds are over 10x greater than the new annual lease commitments. This accretive transaction furthers our ability to improve returns. Excluding the leaseback proceeds, our quarterly free cash flow of $13 million was negatively impacted by large customers who delayed payments at year-end.

由於競爭動態以及生產設備的情況，由於我們收到訂單和最終發貨之間的交貨時間很長，我們努力提高價格以抵消這種通貨膨脹。我們預計這些鋼鐵和貨運的影響將在 2023 年之前正常化。4500 萬美元的自由現金流是本季度的亮點。這一結果包括我們 2022 年 11 月的售後回租交易中的 3200 萬美元。這些收益比新的年度租賃承諾高出 10 倍以上。這項增值交易進一步增強了我們提高回報的能力。不包括回租收益，我們 1300 萬美元的季度自由現金流受到了年底延遲付款的大客戶的負面影響。

In large part, because of this free cash flow generation, we ended the quarter with $51 million of cash on hand and $156 million of availability under our fully undrawn revolver. Liquidity increased by $60 million from September to a total of $207 million. With this level of liquidity, we could retire our long-term debt today while leaving ample dry powder to fund operations. The strength of our balance sheet highlights the transformative nature of the debt conversion and our 2022 financial performance.

在很大程度上，由於這種自由現金流的產生，我們在本季度結束時手頭有 5100 萬美元現金，我們完全未提取的左輪手槍可用現金為 1.56 億美元。流動性比 9 月份增加了 6000 萬美元，達到 2.07 億美元。有了這樣的流動性水平，我們今天就可以償還我們的長期債務，同時留下充足的干火藥來為運營提供資金。我們資產負債表的實力凸顯了債務轉換的變革性質和我們 2022 年的財務業績。

We continue to believe FET shares are undervalued as we trade at a discount to other equipment manufacturing peers. Therefore, in the fourth quarter, we repurchased just over 100,000 shares at a discount to last Friday's closing price. Comparing this price with our $80 million to $100 million 2023 guidance implies a valuation of 4.2% to 5.3x EBITDA, with many of our peers trading at 7 to 10x 2023 expectations. We believe our stock has compelling upside.

我們仍然認為 FET 股票被低估，因為我們以低於其他設備製造同行的價格進行交易。因此，在第四季度，我們以低於上週五收盤價的價格回購了 100,000 多股股票。將此價格與我們 2023 年 8000 萬至 1 億美元的指導進行比較意味著估值為 4.2% 至 5.3 倍 EBITDA，而我們許多同行的交易價格為 2023 年預期的 7 至 10 倍。我們相信我們的股票具有引人注目的上漲空間。

Now let me share with you our first quarter forecast. Neal discussed how we see the markets going forward and provided our 2023 EBITDA guidance earlier in the call. We anticipate modest growth progression in the U.S. and stronger international activity growth through the year. Thus far, 2023 U.S. rig activity has been relatively flat and international activity is in the process of ramping. Therefore, in the first quarter, we expect revenue of between $180 million to $200 million and EBITDA of between $16 million and $20 million, with these values increasing each quarter throughout the year.

現在讓我與您分享我們的第一季度預測。尼爾討論了我們如何看待未來的市場，並在電話會議的早些時候提供了我們的 2023 年 EBITDA 指導。我們預計全年美國經濟增長溫和，國際活動增長強勁。到目前為止，2023 年美國鑽井活動相對平穩，國際活動正在增加。因此，我們預計第一季度的收入將在 1.8 億至 2 億美元之間，EBITDA 將在 1600 萬至 2000 萬美元之間，這些值在全年每個季度都在增加。

We expect first quarter free cash flow to be negative $20 million to $30 million, expected payments of management, cash incentives and property taxes as well as accrued interest related to converted notes will be partially offset by cash flow from EBITDA and net working capital improvements. Let me provide a few details for modeling purposes. In the fourth quarter, corporate costs were flat with the third quarter coming in a little better than expected. In the first quarter, we expect corporate costs to be in line with the fourth quarter, interest expense to be $5 million and depreciation and amortization expense of roughly $8 million. We expect full year capital expenditures of approximately $15 million and cash income taxes of $5 million to $7 million.

我們預計第一季度自由現金流為負 2000 萬至 3000 萬美元，預計管理費用、現金獎勵和財產稅以及與轉換票據相關的應計利息將被 EBITDA 現金流和淨營運資本改善部分抵消。讓我提供一些用於建模目的的細節。第四季度，企業成本持平，第三季度略好於預期。第一季度，我們預計公司成本與第四季度持平，利息支出為 500 萬美元，折舊和攤銷費用約為 800 萬美元。我們預計全年資本支出約為 1500 萬美元，現金所得稅為 500 萬至 700 萬美元。

Let me shift my attention to our capital deployment alternatives. With a rightsized capital structure, ample liquidity and improving free cash flow, we are evaluating several options for deployment of our cash through a lens of improving our financial metrics and maximizing returns. One option is to repay our long-term debt or repurchase additional shares. Relative to other alternatives, debt repayment yields a modest return. Share repurchases are more attractive at current levels. However, we are limited by our indenture to an additional $5.9 million of share repurchases.

讓我將注意力轉移到我們的資本配置方案上。憑藉合適的資本結構、充足的流動性和改善的自由現金流，我們正在評估通過改善我們的財務指標和最大化回報來部署現金的幾種選擇。一種選擇是償還我們的長期債務或回購額外的股份。相對於其他替代方案，債務償還產生適度的回報。股票回購在當前水平上更具吸引力。然而，我們的契約限制了額外 590 萬美元的股票回購。

Another option is funding for organic growth. Our plan for 2023 includes significant organic growth driven by market share gains and new product introduction. Funding for this growth is already included in our healthy free cash flow forecast. We will continue to seek and evaluate additional organic investment opportunities to generate outsized returns. Finally, as another option, accretive M&A transactions could further transform our product portfolio. The market for transactions has improved, with many sellers exploring strategic alternatives.

另一種選擇是為有機增長提供資金。我們的 2023 年計劃包括在市場份額增加和新產品推出的推動下實現顯著的有機增長。這種增長的資金已經包含在我們健康的自由現金流預測中。我們將繼續尋求和評估更多的有機投資機會，以產生超額回報。最後，作為另一種選擇，增值併購交易可以進一步改變我們的產品組合。交易市場有所改善，許多賣家都在探索戰略選擇。

We look for transactions with good industrial logic and that are accretive to our earnings. Importantly, we are committed to maintaining reasonable net leverage, and we'll use an appropriate mix of cash and equity to achieve this goal. In short, the conversion of our debt not only enhances our story today, but it also opens a number of investment opportunities to gain greater rates of return.

我們尋找具有良好工業邏輯並能增加我們收益的交易。重要的是，我們致力於保持合理的淨槓桿率，我們將使用適當的現金和股權組合來實現這一目標。簡而言之，我們債務的轉換不僅增強了我們今天的故事，而且還開啟了許多獲得更高回報率的投資機會。

I will now turn the call back over to Neal. Neal?

我現在將把電話轉回給尼爾。尼爾？

Thank you, Lyle. 2022 was a transformative year for FET. We executed at a high level and achieved what we set out to do. So to the FET team, thank you, and job well done. The markets remain tight, equipment utilization and service intensity are at high levels and significant investment will be needed over the coming years. FET will be there to provide our customers with the technology and solutions they need to operate in this up cycle. Similar to last year, we have set high expectations and I am confident our people will deliver on.

謝謝你，萊爾。 2022 年對 FET 來說是變革性的一年。我們以高水平執行並實現了我們的目標。所以感謝 FET 團隊，謝謝你們，工作做得很好。市場仍然緊張，設備利用率和服務強度處於高水平，未來幾年將需要大量投資。 FET 將在那里為我們的客戶提供他們在這個上升週期中運行所需的技術和解決方案。與去年類似，我們設定了很高的期望，我相信我們的員工會兌現承諾。

We are excited about what we can do in 2023. Gigi, please take the first question.

我們對 2023 年能做些什麼感到興奮。Gigi，請回答第一個問題。

(Operator Instructions) Our first question comes from the line of John Daniel from Daniel Energy Partners.

（操作員說明）我們的第一個問題來自 Daniel Energy Partners 的 John Daniel。

Just 2 questions for you. The first is on your prepared remarks, you talked about opportunities with conversions, and I missed part of this, so I apologize, but is that just the radiators or is there other content that you all are participating in? And then is it color around whether it's accelerating steady, just near-term thoughts.

只問你2個問題。首先是關於你準備好的發言，你談到了轉換的機會，我錯過了一部分，所以我很抱歉，但這只是散熱器還是你們都參與的其他內容？然後它是否在穩定加速，只是近期的想法。

Sure. Good question, John. On the upgrades that we're seeing, the radiators are a big part of that. Just nearly every new engine will put a new radiator. And generally, they're choosing to go with the GHT Jumbotron option, which is, again, one of the best radiators in the business. In addition to that, there's opportunities for power ends that we are supplying as well. And then finally, as the upgrades continue, we are seeing more and more customers utilize our flexible hose and manifold solutions. So those are going hand in hand.

當然。好問題，約翰。在我們看到的升級中，散熱器是其中的重要組成部分。幾乎每個新發動機都會安裝一個新散熱器。通常，他們選擇使用 GHT Jumbotron 選項，這又是業內最好的散熱器之一。除此之外，我們還提供電源端的機會。最後，隨著升級的繼續，我們看到越來越多的客戶使用我們的軟管和歧管解決方案。所以這些是齊頭並進的。

I think our acceleration or speed is really dependent on upstream of what's going on in supply chain of us from deliveries of engines to the packagers that put everything together. So bookings are there, and I think it will just go through the year to see how well the supply chain delivers. But we're prepared, we're ready on that side to deliver.

我認為我們的加速度或速度實際上取決於我們供應鏈上游發生的事情，從發動機交付到將所有東西放在一起的包裝商。所以預訂就在那裡，我認為它會持續一年，看看供應鏈的交付情況。但是我們已經準備好了，我們已經準備好交付。

Okay. And then one final one for me, and I'll let others in. On the M&A, would you characterize your looking -- are these tuck-in opportunities? Or would you look to do something more transformative? And then are you casting a wide net, if you will? Or are you trying to -- is there certain 1 or 2 product services that you're keen on bringing in the portfolio? Just a little bit more color on that.

好的。然後是我的最後一個，我會讓其他人進來。在併購方面，你會描述你的外表嗎——這些是塞進衣服的機會嗎？還是您希望做一些更具變革性的事情？如果你願意，那麼你是在廣泛撒網嗎？或者您是否正在嘗試 - 您是否熱衷於將某些 1 或 2 種產品服務引入產品組合？只是多一點顏色。

Yes. Great question. I'll start, and I'm sure Lyle will add in. For those who followed FET, we've always been an M&A company. We've always looked at different opportunities. And we're open to both a tuck-in acquisition or a transformative acquisition if it can meet our criteria. And really the key there is, it has to be accretive and be a good strategic fit. So areas that we really like are those in artificial lift or areas where we can consolidate with existing product lines like controlling our completions.

是的。很好的問題。我會開始，我相信 Lyle 會加入。對於那些關注 FET 的人來說，我們一直是一家併購公司。我們一直在尋找不同的機會。如果能夠滿足我們的標準，我們對合併收購或轉型收購持開放態度。真正的關鍵是，它必須具有增值性並且是一個很好的戰略契合點。因此，我們真正喜歡的領域是人工舉升或我們可以與現有產品線整合的領域，例如控制我們的完工。

Also, we want to have acquisitions that improve our financial metrics, improve our EBITDA margins, free cash flow profile. And then finally, we want to maintain and reduce our net leverage. So if we can get the right deal done with cash or look to an appropriate mix of cash and stock. And again, we're open to using equity. We think our stock is undervalued, but we need to have a partner that sees the same value as well.

此外，我們希望通過收購來改善我們的財務指標，提高我們的 EBITDA 利潤率和自由現金流狀況。最後，我們希望維持和降低我們的淨槓桿率。因此，如果我們能夠用現金完成正確的交易，或者尋找適當的現金和股票組合。同樣，我們對使用股權持開放態度。我們認為我們的股票被低估了，但我們需要有一個也能看到同樣價值的合作夥伴。

(Operator Instructions) Our next question comes from the line of [Erik Carlson].

（操作員說明）我們的下一個問題來自 [Erik Carlson]。

Congrats on another good quarter. Just a couple of quick questions. So are the sale leaseback proceeds required to go to the debt similar to what happened on 12/31/2020 with the valves business?

祝賀又一個好季度。只是幾個簡單的問題。那麼，售後回租收益是否需要用於償還債務，類似於 2020 年 12 月 31 日閥門業務發生的情況？

Good. Okay. I understand your question. Good question. And no, they're not. There are carve-outs within the indenture that allow us to use that cash kind of on a per transaction basis. So we've got some good cover there, and we do not have a requirement to return that cash back to bondholders.

好的。好的。我明白你的問題。好問題。不，他們不是。契約中有分拆條款，允許我們在每次交易的基礎上使用這種現金。所以我們在那裡有一些很好的保障，我們沒有要求將現金返還給債券持有人。

Okay. That's helpful. And then just when you think about the debt a little bit, I mean, what is kind of your ideal level? And then, I mean, are there opportunities in the market? I mean, I know rates have increased, but the current rate on the debt isn't -- I mean, phenomenal by any means. Are there opportunities to refinance that, reissue, stuff with -- I mean, gets less restrictive covenants? Or I mean, have you looked into that at all?

好的。這很有幫助。然後當你稍微考慮一下債務時，我的意思是，你的理想水平是多少？然後，我的意思是，市場上有機會嗎？我的意思是，我知道利率已經上升，但目前的債務利率並不是——我的意思是，無論如何都不是驚人的。是否有機會再融資，重新發行，東西 - 我的意思是，獲得限制性較小的契約？或者我的意思是，你有沒有調查過這個？

We have, Erik. And I think probably the first highlight is our first comment would be looking back, leverage on a pro forma basis at the end of the year would have been 1.4x, so down to a reasonable level. I think as we think long term, we want to make sure that we think about our debt in relation to our working capital, specifically things like receivables in the event that there's ever a market slowdown, we want the ability to have those receivables monetize and be able to manage our debt load. So we feel like we're at that level now and have a comfortable level of debt. And clearly, with our liquidity on hand, we're in really great shape.

我們有，埃里克。我認為第一個亮點可能是我們的第一個評論是回顧過去，年底的備考槓桿率為 1.4 倍，因此降至合理水平。我認為，從長遠來看，我們希望確保我們考慮與營運資金相關的債務，特別是在市場放緩的情況下應收賬款之類的事情，我們希望能夠將這些應收賬款貨幣化並能夠管理我們的債務負擔。所以我們覺得我們現在處於那個水平並且有一個舒適的債務水平。很明顯，憑藉我們手頭的流動性，我們的狀況非常好。

I think on the positive note, the debt markets for our industry have improved dramatically. In the last -- end of last year and beginning of this year, we saw some debt deals get done in the public markets on the high-yield side, in particular and see -- and so we've seen debt capital come back into the space. I think that being said, our quantum of debt is still relatively small. And so that makes it challenging to find alternatives that might be out there.

我認為從積極的方面來看，我們行業的債務市場已經有了顯著改善。在去年年底和今年年初，我們看到一些高收益債務交易在公開市場上完成，特別是看到 - 所以我們看到債務資本回歸空間。我認為話雖如此，我們的債務規模仍然相對較小。因此，很難找到可能存在的替代品。

We've got plenty of runway on our indenture. The debt is not due until 2025. So there's no burning platform that says we need to resolve that today. So we'll keep our eyes open and watch the markets and see if there is an opportunity to, as you say, reduce our interest load or find less restrictive debt. But I think as today, what we have feels like a pretty good piece of paper.

我們的契約有足夠的跑道。債務要到 2025 年才到期。所以沒有一個燃燒的平台說我們今天需要解決這個問題。因此，我們將睜大眼睛觀察市場，看看是否有機會像您所說的那樣減少我們的利息負擔或找到限制性更小的債務。但我認為，就像今天一樣，我們所擁有的感覺就像一張很好的紙。

Okay. Great. I guess my last question would be, I mean, just -- I mean, you guys kind of touched on kind of the relative value of the equity to peers. And when you see -- and I guess you kind of answered my question already by saying there's only so much you can actually put equity buybacks at this point. But the convertible debt holders now becoming equity holders, I'm not sure that they're necessarily long-term equity holders, but there's been a few filings with a few of those debt holders that now own approximately 10% a piece. So there's -- I think there's 2 holders out there that probably own 20% equity.

好的。偉大的。我想我的最後一個問題是，我的意思是，你們有點談到了股權對同行的相對價值。當你看到——我猜你已經回答了我的問題，說此時你實際上只能回購股票。但可轉換債券持有人現在變成了股權持有人，我不確定他們是否一定是長期股權持有人，但有一些文件顯示，其中一些債務持有人現在擁有約 10% 的股份。所以 - 我認為那裡有 2 個持有人可能擁有 20% 的股權。

It's just an interesting dynamic given -- the fact that the equity seems incredibly cheap, and there's probably people willing to let it go at what probably long-term equity holders wouldn't let it go mostly a comment rather than looking for your remarks, but I mean, it would be great to be able to find some liquidity to take those guys off the table.

這只是一個有趣的動態——事實上，股票似乎非常便宜，而且可能有人願意放棄它，因為長期股權持有人可能不會放棄它，主要是發表評論，而不是尋找你的評論，但我的意思是，如果能夠找到一些流動資金讓這些人離開談判桌，那就太好了。

No, definitely agree with that, Erik. One of the things that we have seen is the change -- mark change in our average daily trading volume. If we go back to the fourth quarter, we traded about 30,000 shares a day. And so far in the first quarter, we traded 3x that, over 90,000 shares a day. So we've seen a marked increase in that and that came about the time of our debt conversion. So there's clearly more activity. That's a good thing. We believe, for our stock to get more liquidity for investors in.

不，絕對同意，埃里克。我們看到的其中一件事是變化——我們平均每日交易量的顯著變化。如果我們回到第四季度，我們每天交易約 30,000 股。到目前為止，在第一季度，我們的交易量是其 3 倍，每天超過 90,000 股。所以我們看到了顯著的增加，這是在我們債務轉換的時候發生的。所以顯然有更多的活動。這是好事。我們相信，對於我們的股票來說，投資者可以獲得更多的流動性。

Also, I think if you think about our new shareholders, any of those who want to move out of the stock, the market is more liquid than it was before. So that should provide some opportunity to be able to do that.

另外，我認為如果你考慮一下我們的新股東，任何想退出股票的人，市場的流動性比以前更高。所以這應該提供一些機會來做到這一點。

(Operator Instructions) Our next question comes from the line of Dan Pickering from Pickering Energy Partners.

（操作員說明）我們的下一個問題來自 Pickering Energy Partners 的 Dan Pickering。

Thanks for doing the call today. I guess, I want to come back, Neal, your comment around sort of M&A. You indicated and Neal and Lyle, I think you both talked about this, but you indicated accretive as one of your measures. Is that accretive to -- is it EBITDA margin? Is it net income? How, what metric are you thinking about there just so we can kind of gauge as you move ahead?

感謝您今天的來電。我想，我想回來，尼爾，你對併購的評論。你指出 Neal 和 Lyle，我想你們都談到了這一點，但你指出增生是你的一項措施。這會增加——是 EBITDA 利潤率嗎？是淨收入嗎？如何，你在那裡考慮什麼指標，以便我們可以在你前進時進行衡量？

Accretive to EBITDA margin, yes.

增加 EBITDA 利潤率，是的。

Got it. Okay. And I…

知道了。好的。而我……

A good strategic thought, that's the key. We're not -- we wouldn't look to do M&A just to get bigger, but we want to have the right strategic fit and obviously improve our financial metrics.

一個好的戰略思想，這是關鍵。我們不是 - 我們不會僅僅為了變得更大而進行併購，但我們希望擁有正確的戰略契合度並明顯改善我們的財務指標。

Sure. And so accretive to EBITDA margins, I assume that also means you'd look for things if you're granted, you're trading at cheap valuations, but you'd look for something that would be accretive on an EB to EBITDA basis as well?

當然。如此增加 EBITDA 利潤率，我認為這也意味著如果你被授予，你會尋找東西，你正在以便宜的估值進行交易，但你會尋找可以在 EB 到 EBITDA 的基礎上增加的東西出色地？

Correct. Yes.

正確的。是的。

Okay. You talked a little bit about the areas that you'd focus in terms of your product lines. Do you think -- I mean maybe cast for us, while you said the markets are better, if you think about sort of your chalkboard of things that you're evaluating in terms of potential acquisitions, do they skew more international versus domestic? And are the numbers -- I mean the number of opportunities? Is it up notably or flattish? Just kind of give us some color there.

好的。您談到了您在產品線方面的重點領域。你認為 - 我的意思是也許為我們投，雖然你說市場更好，但如果你考慮你正在評估潛在收購方面的事情的黑板，它們是否更傾向於國際而不是國內？數字是——我的意思是機會的數量？是明顯上漲還是持平？只是給我們一些顏色。

Sure. So I think generally, the opportunities we've seen have been more U.S. focused. However, with the age of the companies that we're looking at, they would be ideal to ramp up and utilize our international footprint to expand sales. So I think that would be a key business logic and synergy we would look for there. And Lyle looks at the deals every day and maybe a comment on the rate of change we've seen.

當然。所以我認為總的來說，我們看到的機會更多地集中在美國。然而，隨著我們正在尋找的公司的年齡增長，他們將是擴大和利用我們的國際足跡來擴大銷售的理想選擇。所以我認為這將是我們在那裡尋找的關鍵業務邏輯和協同作用。 Lyle 每天都會查看交易，也許會對我們看到的變化率發表評論。

Yes. Dan, I'd say we've seen activity level pick up pretty meaningfully here over the last several months, more private companies looking to find an opportunity here in this market. We've talked about it before, but there are number of private equity firms who've been in their deals for quite a while, and they're starting to see this as a market where maybe they should do something. When we think kind of types and areas of focus kind of a couple areas there. One, we feel like we've proven and could be a very logical consolidator of space. So about this time last year, we announced our acquisition of Hawker Well Works, relatively small business but fit within our drilling products and allow us to consolidate a really neat niche in the well services market.

是的。丹，我想說的是，在過去的幾個月裡，我們已經看到這裡的活動水平顯著回升，越來越多的私營公司希望在這個市場上找到機會。我們之前已經談過這個問題，但有許多私募股權公司已經進行了相當長的交易，他們開始將此視為一個他們或許應該做點什麼的市場。當我們想到那裡的幾個領域的類型和重點領域時。第一，我們覺得我們已經證明並且可以成為一個非常合乎邏輯的空間整合者。因此，大約在去年的這個時候，我們宣布收購 Hawker Well Works，這是一家相對較小的企業，但適合我們的鑽井產品，並使我們能夠鞏固在油井服務市場中真正利基的地位。

Another example of what we might look for is things that have technology. And we've mentioned before, but a key way we think we drive margins higher in the future is through the deployment of new technology in our products. So couple of areas, whether that's a consolidation of space or new technology. And the last criteria, I would say, is looking at things that would be more attractive to us are more well count driven rather than aimed at the more capital end of our spector that, that would be another criteria to look at.

我們可能尋找的另一個例子是擁有技術的東西。我們之前已經提到過，但我們認為未來提高利潤率的一個關鍵方式是在我們的產品中部署新技術。那麼幾個領域，無論是空間整合還是新技術。最後一個標準，我想說的是，尋找對我們更有吸引力的東西，更多的是數量驅動，而不是針對我們的投資者的更多資本端，這將是另一個要考慮的標準。

That's helpful. And then just to try and understand expectations or set expectations. So we've got the balance sheet is much better. We've got cash. We've got a lot of liquidity, but wrap this all together in terms of your comfort, we can -- I guess, we can use some debt for acquisitions if you wanted equities on the table, but roll that all together, what do you think your size-wise, if you exited 23 with -- is it $100 million worth of deals is a good year? Is it 200? I mean I'm just trying to understand kind of sizing comfort level with leverage, comfort level with using equity. It all rolls into kind of how much do you think you can do?

這很有幫助。然後只是嘗試理解期望或設定期望。所以我們的資產負債表要好得多。我們有現金。我們有很多流動性，但是根據您的舒適度將所有這些放在一起，我們可以 - 我想，如果你想要股票，我們可以使用一些債務進行收購，但是把它們放在一起，做什麼你認為你的規模明智，如果你退出 23 年 - 價值 1 億美元的交易是一個好年頭嗎？是200嗎？我的意思是我只是想了解使用槓桿的大小舒適度，使用股權的舒適度。這一切都變成了你認為你能做多少？

Yes. I think there's -- Dan, we have -- we're looking at a lot of target today, but we want to have the right deal. And as we look, we have to find a partner that sees value in our equity as well. And so that's a kind of, that's a key kind of a key screen there is they have to understand that we're undervalued and they have to see that the value in that if we're to do a deal. Yes.

是的。我認為 - 丹，我們 - 我們今天正在研究很多目標，但我們希望達成正確的協議。正如我們所看到的，我們必須找到一個也能看到我們股權價值的合作夥伴。所以這是一種，這是一種關鍵的關鍵屏幕，他們必須明白我們被低估了，如果我們要達成交易，他們必須看到其中的價值。是的。

Yes. And I think the other way to think about this use of the capital, Dan, is to focus on returns. A floor of returns would be just retiring our long-term debt. As Erik asked earlier, we've got a 9% coupon on that. So we get an okay return, but our job is to find better returns. And so how much capital can we deploy that's really going to move the needle on returns, on margins and things like that. So I don't think we want to get bigger just to get bigger. We want to get bigger to get better and that will be our focus.

是的。而且我認為，考慮這種資本用途的另一種方式，丹，是關注回報。最低迴報率只是償還我們的長期債務。正如 Erik 之前詢問的那樣，我們有 9% 的優惠券。所以我們得到了不錯的回報，但我們的工作是找到更好的回報。因此，我們可以部署多少資本才能真正推動回報、利潤率等方面的變化。所以我認為我們不想為了變得更大而變得更大。我們希望做大做強，這將是我們的重點。

Right.

正確的。

And I think going back to the good strategic fit being accretive, improving our financial metrics, we're open to tuck-in deals, multiple tuck-in deals or potentially a transformative one.

而且我認為回到良好的戰略契合是增值，改善我們的財務指標，我們願意接受交易，多筆交易或潛在的變革性交易。

And it's a great opportunity to be thinking about playing offense as opposed to playing defense where the whole industry has been for a while. I want to come back to the kind of forward look in terms of -- you've guided us to $80 million to $100 million of EBITDA for 2023. Some of us may have more optimistic expectations around rig count or whatever it is. When we think about incremental margins, is that 30% target still the right target given some of the things you're seeing on cost supply chain, et cetera?

這是一個很好的機會，可以考慮進攻而不是防守，而整個行業已經有一段時間了。我想回到那種前瞻性的角度——你已經指導我們在 2023 年實現了 8000 萬到 1 億美元的 EBITDA。我們中的一些人可能對鑽機數量或其他任何東西有更樂觀的預期。當我們考慮增量利潤率時，考慮到您在成本供應鍊等方面看到的一些情況，30% 的目標是否仍然是正確的目標？

Yes, Dan, just as a reminder, we've talked about kind of incremental margins being north of gross margins and kind of in net 30 to 40 with the high end of that coming with a lot of incremental price. I think as we look at this year, I would guide us towards the lower end of that range. Really, we see not as many opportunities for price increases with the market being a little softer, primarily in the U.S.

是的，丹，提醒一下，我們已經討論過毛利率以北的增量利潤率，淨利潤率在 30 到 40 之間，其中高端伴隨著大量增量價格。我認為，就今年而言，我會引導我們走向該範圍的低端。實際上，隨著市場（主要是美國）走軟，我們認為提價的機會並不多。

And I think, our big push for incremental margins could come from our newer and more innovative products where we provide a lot more value to our customers and could capture more of that in terms of margin. So out of the gate for this year, I think it's probably more in that low end range, 30% is definitely achievable on a full year basis, and we would look to do that or better.

而且我認為，我們對增量利潤的大力推動可能來自我們更新和更具創新性的產品，我們為客戶提供更多價值，並且可以在利潤方面獲得更多價值。所以從今年開始，我認為它可能更多地處於低端範圍內，全年絕對可以達到 30%，我們希望做到這一點或更好。

Okay. And while you indicated the cost -- the freight expediting, et cetera, would moderate as we move through 2023. Do you think we'll still see some impact to that in Q1.

好的。雖然你指出了成本——貨運加急等，但隨著我們進入 2023 年，將會有所緩和。你認為我們仍然會在第一季度看到一些影響嗎？

I do. I do. I think we'll see that in Q1. And really, if we think about the length of some of our supply chains or like our -- some of our costing on an average cost basis, it takes a little while to get that steel inflation that we saw heavily in 2022 out through the back end of the snake here in 2023.

我願意。我願意。我想我們會在第一季度看到這一點。實際上，如果我們考慮一些供應鏈的長度，或者像我們——我們的一些基於平均成本的成本核算，需要一點時間才能讓我們在 2022 年看到的嚴重的鋼鐵通貨膨脹從後面消失蛇在 2023 年結束。

Got you. And so net-net, rolling all this together, I think I heard, although we're going to burn cash in Q1, remind me again, I heard $20 million to $40 million for 2023 in aggregate, your expectation, including cash taxes, working capital, all of the dynamics that you see so far?

明白了所以 net-net，將所有這些匯總在一起，我想我聽說，雖然我們將在第一季度燒錢，但再次提醒我，我聽說 2023 年總計 2000 萬到 4000 萬美元，你的期望，包括現金稅，營運資金，你到目前為止看到的所有動態？

That is correct, yes.

這是正確的，是的。

So it was 20% to 40%. I was looking at my notes and I -- $20 million to $40 million free cash flow for 2023.

所以它是 20% 到 40%。我在看我的筆記時發現——2023 年的自由現金流為 2000 萬至 4000 萬美元。

And again, on our current valuation, a really good cash flow yield for the year.

再一次，根據我們目前的估值，今年的現金流收益率非常好。

Yes, absolutely. Well, good luck finding those opportunities and congrats on the debt conversion. That was really important, and the balance sheet looks in great shape. Appreciate it very much.

是的，一點沒錯。好吧，祝你好運找到這些機會並祝賀債務轉換。這真的很重要，資產負債表看起來狀況良好。非常感謝。

Thank you. I would now like to turn the conference back to Neal Lux for closing remarks.

謝謝。我現在想把會議轉回 Neal Lux 作閉幕詞。

Thank you for joining the call today. We are excited about FET's future and look forward to even better days to come.

感謝您今天加入電話會議。我們對 FET 的未來感到興奮，並期待著更美好的日子到來。

This concludes today's conference call. Thank you for participating. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。