Flotek Industries Inc (FTK) 2024 Q2 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to the Flotek Industries 2024 for Q2 earnings conference call. (Operator Instructions) This call is being recorded on Wednesday, August 7, 2024.

早安，女士們、先生們，歡迎參加 Flotek Industries 2024 年第二季財報電話會議。（操作員說明）此通話錄音時間為 2024 年 8 月 7 日星期三。

I would now like to turn the conference over to Mike Critelli, Director of Finance and Investor Relations. Please go ahead.

我現在想將會議交給財務和投資者關係總監 Mike Critelli。請繼續。

Thank you, and good morning, everyone. We appreciate your participation in Flotek's second quarter 2024 earnings conference call. Joining me on the call today are Ryan Ezell, Chief Executive Officer; and Bond Clement, Chief Financial Officer.

謝謝大家，大家早安。我們感謝您參加 Flotek 2024 年第二季財報電話會議。今天與我一起參加電話會議的是執行長瑞安·埃澤爾 (Ryan Ezell)；和財務長邦德·克萊門特。

First, we will provide prepared remarks concerning our business operations and financial results for the second quarter of 2024, as well as our updated guidance for the full year 2024. Following that, we will open up the call for any questions you may have.

首先，我們將提供 2024 年第二季業務營運和財務表現的準備好的評論，以及 2024 年全年的最新指引。之後，我們將打開電話詢問您可能有的任何問題。

Flotek's second quarter 2024 financial and operating earnings press release was issued yesterday afternoon. We also posted to our website an updated Q2 earnings presentation that we will be referencing on today's call. These can all be found on the Investor Relations section of our website. In addition, today's call is being webcast and a replay will be available on our website following the conclusion of this call.

Flotek 於昨天下午發布了 2024 年第二季財務和營運收益新聞稿。我們還在網站上發布了更新的第二季財報報告，我們將在今天的電話會議上參考該報告。這些都可以在我們網站的投資者關係部分找到。此外，今天的電話會議正在進行網路直播，電話會議結束後將在我們的網站上提供重播。

Before we begin, I'd like to make some brief remarks about forward-looking statements and the use of non-GAAP financial measures, except for historical information mentioned during the conference call, statements made by Flotek management on today's call are forward-looking statements that are pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995.

在我們開始之前，我想對前瞻性陳述和非公認會計原則財務指標的使用做一些簡短的評論，除了電話會議中提到的歷史資訊外，Flotek 管理層在今天的電話會議上發表的陳述都是前瞻性的符合 1995 年《私人證券訴訟改革法案》安全港條款的聲明。

Forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond our control. These risks and uncertainties can cause actual results to differ materially from our current expectations. We advise listeners to review our earnings release and the risk factors discussed in our filings with the SEC.

前瞻性陳述受到許多風險和不確定性的影響，其中許多風險和不確定性超出了我們的控制範圍。這些風險和不確定性可能導致實際結果與我們目前的預期有重大差異。我們建議聽眾查看我們的財報以及我們向美國證券交易委員會提交的文件中討論的風險因素。

In addition, certain non-GAAP financial measures as designed under SEC rules may be discussed on this call as required by applicable SEC rules, the company provides reconciliations of any such non-GAAP financial measures to the most directly comparable GAAP measures on its website. Please refer to the reconciliations provided in the earnings press release and corporate presentations posted on our website.

此外，根據適用的SEC 規則的要求，本次電話會議可能會討論根據SEC 規則設計的某些非GAAP 財務措施，該公司在其網站上提供任何此類非GAAP 財務措施與其最直接可比較的GAAP 措施的調節表。請參閱我們網站上發布的收益新聞稿和公司簡報中提供的調節表。

With that, I will turn the call over to our CEO, Ryan Ezell.

接下來，我會將電話轉給我們的執行長瑞安·埃澤爾 (Ryan Ezell)。

Thank you, Mike, and good morning. We appreciate everyone's interest in Flotek and for joining us today. As we discuss our second quarter 2024 operational and financial results, I'm extremely pleased with our performance during the first half of the year. It continues our trend of delivering revenue and profitability growth.

謝謝你，麥克，早安。我們感謝大家對 Flotek 的興趣並今天加入我們。當我們討論 2024 年第二季的營運和財務表現時，我對我們上半年的表現感到非常滿意。它延續了我們實現收入和獲利成長的趨勢。

With that in mind, I'd like to turn to slide 5 and touch on our key highlights for the quarter that Bond will discuss in detail in just a moment. Against the backdrop of slower North American oilfield service activity, we grew revenue 14% sequentially, highlighting our strong execution and the continued progress we've made in capturing market share.

考慮到這一點，我想翻到第 5 張幻燈片，談談我們本季的主要亮點，邦德將在稍後詳細討論這些亮點。在北美油田服務活動放緩的背景下，我們的收入環比增長了 14%，凸顯了我們強大的執行力以及我們在佔領市場份額方面所取得的持續進展。

This is an impressive accomplishment when considering that the active rig and frac fleet counts declined sequentially during this same period. Our Q2 2024 external customer chemistry sales were up 40% from Q1 to 2024, and our Data Analytics segment saw a 22% quarter-over-quarter increase.

考慮到活躍鑽機和壓裂船隊數量在同一時期連續下降，這是一項令人印象深刻的成就。2024 年第二季度，我們的外部客戶化學品銷售額從第一季到 2024 年成長了 40%，我們的資料分析部門較上季成長了 22%。

We delivered significant year-over-year improvements in all profitability metrics, resulting in the fourth consecutive quarter of net income and seventh consecutive quarter of improvements in adjusted EBITDA. We also raised our full year adjusted EBITDA guidance by 23% at the midpoint.

我們的所有獲利指標均實現了同比顯著改善，淨利潤連續第四個季度實現成長，調整後 EBITDA 連續第七個季度實現成長。我們也將全年調整後 EBITDA 指引中位數提高了 23%。

We've amended our ABL facility, resulting in a sizable increase to our loan commitment with a reduction in the interest rate. And in addition to this progress, we received approval from the Environmental Protection Agency for the JP3 analyzer system for utilization in flare emission monitoring, facilitating access to a new upstream market application with an estimated annual total addressable market of $220 million.

我們修改了 ABL 設施，導致我們的貸款承諾大幅增加，同時利率降低。除了這項進展之外，我們還獲得了環保署的批准，將 JP3 分析儀系統用於火炬排放監測，從而促進了我們進入新的上游市場應用，預計每年的潛在市場總額為 2.2 億美元。

And most importantly, all of these achievements were accomplished with zero recordable and lost time incidents. I'd like to take a moment to thank our employees for their hard work and commitment to safety and service quality and achieving these outstanding results. I expect us to continue to build upon this momentum in the second half of 2024.

最重要的是，所有這些成就都是在可記錄事件和損失時間事件為零的情況下實現的。我想花一點時間感謝我們的員工的辛勤工作以及對安全和服務品質的承諾，並取得了這些出色的成果。我預計我們將在 2024 年下半年繼續保持這一勢頭。

Now looking at the quarter with a bit more granularity. Revenue grew 14% compared to Q1 of 2024. This increase was mostly attributable to a significant growth in external customer chemistry sales versus Q1 of 2024 through the execution of our prescriptive chemistry sales strategy.

現在以更細緻的方式審視本季。營收較 2024 年第一季成長 14%。這一成長主要歸因於透過執行我們的規定化學品銷售策略，外部客戶化學品銷售較 2024 年第一季顯著成長。

As shown on Slide 6, external chemistry sales in the Permian Basin grew by 186% from the first quarter of 2024 and 68% year-over-year. Notably, we saw an 89% increase in our proprietary Complex nano-Fluids technology sales in the first half of 2024 versus the first half of 2023.

如投影片 6 所示，二疊紀盆地的外部化學品銷售額較 2024 年第一季成長 186%，年增 68%。值得注意的是，與 2023 年上半年相比，2024 年上半年我們專有的複雜奈米流體技術銷售額成長了 89%。

Flotek will remain at the forefront of innovation and multidisciplinary advancements as we bring new technologies to the market, including AI-driven reservoir modelling to address the impacts of water inhibition, drive preferential microfluid behaviour in nanopore environments and improve the ultimate recovery of hydrocarbons from each asset.

隨著我們將新技術推向市場，Flotek 將保持在創新和多學科進步的前沿，包括人工智慧驅動的油藏建模，以解決水抑制的影響，驅動奈米孔環境中的優先微流體行為，並提高碳氫化合物從每個孔中的最終回收率。

Our Data Analytics segment revenue increased 22% in the first quarter of 2024. We remain focused on converting to a Data as a Service model, combined with the launch of our next generation measurement system, unlocking significant upstream market opportunities as we expect the business to see continued growth during the third quarter. As part of our commitment to being at the forefront of innovation, we recently announced that the EPA approved the JP3 system as an improved measurement technology with respect to recently enacted flare regulations.

我們的數據分析部門營收在 2024 年第一季成長了 22%。我們仍然專注於轉變為數據即服務模式，並結合下一代測量系統的推出，釋放重要的上游市場機會，因為我們預計業務將在第三季持續成長。作為我們走在創新前沿的承諾的一部分，我們最近宣布 EPA 批准 JP3 系統作為針對最近頒布的火炬法規的改進測量技術。

A picture of our new flare monitoring cart that is currently on location can be seen on slide 9. This state-of-the-art optical instrument is designed for the precise measurement of net heating values in flare gases, and it is the first to be approved as an alternative method under the new regulations. According to the EPA, there are over 55,000 existing flares in the US expected to be subject to monitoring regulations by 2028. And this approval positions Flotek for growth in this new upstream space.

您可以在投影片 9 中看到目前就位的新型耀斑監測車的圖片。這種最先進的光學儀器專為精確測量火炬氣的淨熱值而設計，並且是第一個根據新法規被批准作為替代方法的儀器。據 EPA 稱，預計到 2028 年，美國將有超過 55,000 個現有火炬受到監管。此次批准使 Flotek 在這一新的上游領域取得成長。

We believe we are well positioned to capitalize on this opportunity with approximately 75 units available to be deployed, and we have already received numerous orders with three units currently on customer locations.

我們相信，我們已做好充分利用這一機會的準備，大約有 75 台可供部署，並且我們已經收到了大量訂單，其中 3 台目前已在客戶所在地。

The EPA's approval not only validates our cutting-edge technology, but provides Flotek with another pillar of growth given the tangible ESG benefits that flare monitoring can provide. By integrating real-time autonomous and continuous data analytics with rigorous environmental measurement, we are providing our clients with innovative solutions that meet regulatory requirements while minimizing operational risk. And despite the near-term volatility in natural gas pricings, the long-term fundamentals for energy-related services remain strong.

EPA 的批准不僅驗證了我們的尖端技術，而且鑑於火炬監測可以提供切實的 ESG 效益，還為 Flotek 提供了另一個成長支柱。透過將即時自主和連續的數據分析與嚴格的環境測量相結合，我們為客戶提供創新的解決方案，滿足監管要求，同時最大限度地降低營運風險。儘管天然氣價格近期波動，但能源相關服務的長期基本面仍強勁。

The North American E&P consolidation transactions are taking time to integrate, impacting near-term drilling and completion activity. Now we do expect activity to rebound in 2025 and further accelerate in 2026 as noncore assets assimilated during the consolidation phase are divested and developed.

北美勘探與生產整合交易需要時間整合，影響了近期的鑽井和完井活動。現在，我們確實預計，隨著整合階段吸收的非核心資產被剝離和開發，經濟活動將在 2025 年反彈，並在 2026 年進一步加速。

Our international opportunities will continue to expand as unconventional related activity grows in the Middle East and Latin America. The demand for oil and gas is expected to expand for the next decade with further requirements needed through 2045.

隨著中東和拉丁美洲非常規相關活動的成長，我們的國際機會將繼續擴大。未來十年，石油和天然氣的需求預計將擴大，到 2045 年還需要進一步的需求。

For the first time in nearly two decades, the demand for electricity in the US is expected to climb by 15% by 2030, and natural gas is expected to provide the bulk of this incremental demand. We expect the overall expansion of the global economy to continue to create substantial demand for all forms of energy, which will increase service intensity within the sector.

到 2030 年，美國的電力需求預計將增加 15%，這是近二十年來的首次，而天然氣預計將滿足這一增量需求的大部分。我們預計全球經濟的整體擴張將繼續創造對各種形式能源的大量需求，這將增加該行業的服務強度。

As we look at the remainder of 2024, our efforts remain focused on revenue growth, market share expansion, cost efficiency gains and creating value for our shareholders that we are well positioned to capitalize on opportunities both domestically and internationally.

展望 2024 年剩餘時間，我們的努力仍集中在收入成長、市場份額擴大、成本效率提升以及為股東創造價值上，我們有能力充分利用國內和國際機會。

And we are confident that our expanding suite of services positions us to deliver unique and superior solutions to maximize our customers' value chain. We believe there is no company better positioned to provide strategic solutions to a variety of the industry's most challenging problems.

我們相信，不斷擴大的服務組合使我們能夠提供獨特且卓越的解決方案，以最大限度地提高客戶的價值鏈。我們相信，沒有任何一家公司能夠更好地為各種行業最具挑戰性的問題提供策略解決方案。

Now I'll turn the call over to Bond to provide key financial highlights.

現在我將把電話轉給邦德，以提供關鍵的財務亮點。

Thanks, Ryan, and good morning, everyone. There's obviously a lot to like about our release yesterday, and we're very excited about sharing our continued progress. During the quarter, we grew both chemistry and Data Analytics revenue, we increased our full year guidance, we reported an expansion of our loan agreement and we continued our quarterly streak of improved profitability.

謝謝瑞安，大家早安。顯然，我們昨天的發布有很多值得喜歡的地方，我們非常高興能夠分享我們的持續進展。在本季度，我們的化學和數據分析收入均有所增長，我們提高了全年指導，我們報告了貸款協議的擴大，並且我們繼續保持季度盈利能力的提高。

Our second quarter results continue the financial and operational momentum that began back in 2022 with the execution of our long-term supply agreement. In the face of softer oilfield service fundamentals, our ability to grow revenues, profitability and liquidity is a validation of our strategy to build resilient and complementary business that allows us to deliver impressive results through industry volatility.

我們第二季的業績延續了自 2022 年執行長期供應協議以來開始的財務和營運動能。面對油田服務基本面疲軟的情況，我們增加收入、獲利能力和流動性的能力證明了我們建立彈性和互補業務的策略，使我們能夠在行業波動中取得令人印象深刻的業績。

Moving to the specific results. I'll run through a handful of key financial items for the second quarter and refer to the slides in the presentation posted yesterday. Slide 5 highlights our second quarter achievements and growth and profitability. Headlining our results were year-over-year improvements in net income, gross profit and adjusted EBITDA compared to the second quarter of 2023. For the second quarter, we reported total revenues of $46 million, which was a sequential increase of 14%.

轉向具體成果。我將介紹第二季的一些關鍵財務項目，並參考昨天發布的簡報中的投影片。投影片 5 重點介紹了我們第二季的成就、成長和獲利能力。與 2023 年第二季相比，我們業績的主要表現是淨利潤、毛利和調整後 EBITDA 的年比改善。第二季度，我們的總營收為 4,600 萬美元，季增 14%。

As Ryan mentioned, this increase was driven by the strong growth in chemistry revenue from external customers. We indicated on last quarter's call that our first quarter results were impacted by seasonality, so we were excited to see the strong recovery in 2Q that we said we believed would occur.

正如 Ryan 所提到的，這一增長是由外部客戶的化學收入強勁增長所推動的。我們在上季的電話會議上表示，我們第一季的業績受到季節性的影響，因此我們很高興看到第二季的強勁復甦，我們相信這一點將會發生。

Gross profit during the quarter increased for the sixth consecutive quarter. Second quarter gross profit grew to $9.2 million or 136% increase compared to gross profit of $3.9 million in the comparable 2023 period. It's important to note that the minimum chemistry purchase requirements in our supply agreement were in effect during the entire second quarter of 2024 but were only in effect for one month during the second quarter of 2023 as the measurement period for the minimum purchase requirements began on June 1, 2023.

本季毛利連續第六個季度成長。第二季毛利增至 920 萬美元，與 2023 年同期毛利 390 萬美元相比成長 136%。值得注意的是，我們供應協議中的最低化學品採購要求在 2024 年整個第二季度都有效，但在 2023 年第二季度僅有效一個月，因為最低採購要求的衡量期從 6 月開始2023 年1 月。

The additional revenue from our supply agreement requirements, combined with our continued focus on cost improvements, allow us to deliver strong margins as we realized a gross profit margin and adjusted gross profit margin of 20% and 23%, respectively, for the second quarter as compared to 8% and 10%, respectively, for the year ago quarter. While revenue did grow 14% sequentially, gross profit margin was down approximately 200 basis points versus the first quarter as a result of product mix changes during the quarter.

我們的供應協議要求帶來的額外收入，加上我們對成本改進的持續關注，使我們能夠實現強勁的利潤率，因為我們第二季度的毛利率和調整後毛利率分別為 20% 和 23%相比之下，去年同期分別成長了8% 和10%。雖然營收確實季增了 14%，但由於本季產品結構的變化，毛利率較第一季下降了約 200 個基點。

During the second quarter of 2024, we saw a meaningful increase in the percentage of sales from friction reducers, which are generally a lower-margin product. The increase in FR sales was related to the geographic shift that Ryan touched upon earlier as we are supporting ProFrac's penetration into the Permian Basin as well as increasing our sales in the Permian to external customers.

2024 年第二季度，我們看到減阻器的銷售百分比顯著增加，而減阻器通常是利潤率較低的產品。FR 銷售額的成長與 Ryan 之前提到的地理轉移有關，因為我們正在支援 ProFrac 滲透到二疊紀盆地，並增加我們在二疊紀向外部客戶的銷售。

We continue to focus on driving down SG&A costs as our second quarter SG&A declined to $6.3 million, a 25% improvement from the year ago. This decline was primarily the result of lower professional fees during the 2024 quarter.

我們持續致力於降低 SG&A 成本，第二季 SG&A 下降至 630 萬美元，比去年同期提高了 25%。這一下降主要是由於 2024 年季度專業費用較低。

Moving to slide 7. Second quarter 2024 adjusted EBITDA increased by $6.4 million compared to the second quarter of last year, and that was a 10% sequential growth. On a trailing 12month basis, we have now reported $15.8 million in cumulative adjusted EBITDA as compared to negative $19.3 million for the 12 months ended June 30, 2023. That change represents an incredible $35 million improvement.

轉到投影片 7。2024 年第二季調整後 EBITDA 與去年第二季相比增加了 640 萬美元，季增 10%。在過去 12 個月的基礎上，我們目前報告的累積調整後 EBITDA 為 1,580 萬美元，而截至 2023 年 6 月 30 日的 12 個月為負 1,930 萬美元。這一變化意味著令人難以置信的 3500 萬美元的改進。

Touching on the balance sheet. At June 30, we had $5.8 million drawn under our ABL. Our June 30 debt to trailing 12-month adjusted EBITDA ratio was [0.4x]. As noted in our release, on Monday, we closed an amendment to our ABL agreement. We were able to increase the loan commitment by 45% to $20 million while securing a 50 basis point reduction spread from prime plus 250 to prime plus 200.

觸及資產負債表。截至 6 月 30 日，我們根據 ABL 提取了 580 萬美元。我們 6 月 30 日的債務與過去 12 個月調整後 EBITDA 的比率為[0.4x]。正如我們在新聞稿中指出的，週一我們完成了 ABL 協議的修訂。我們將貸款承諾增加了 45%，達到 2000 萬美元，同時確保利差從 Prime + 250 降低到 Prime + 200 50 個基點。

While this amendment will provide some increase to our current credit availability, the more significant benefit is that our credit availability will now scale proportionately with the growth in assets supporting the borrowing base versus being capped out under the prior commitment level. There were no changes to covenants. There were no additional fees incurred in connection with this amendment. So we're very pleased with the outcome.

雖然這項修正案將在一定程度上增加我們當前的信貸供應量，但更重要的好處是，我們的信貸供應量現在將與支持借款基礎的資產的增長成比例地擴大，而不是在先前的承諾水平下受到限制。契約沒有變化。此次修訂沒有產生任何額外費用。所以我們對結果非常滿意。

Turning to our updated 2024 guidance. Based on the strong operational performance we delivered during the first half of the year, our outlook for the remainder of 2024, we now expect adjusted EBITDA to be in the range of $14 million to $18 million, which is an increase of 23% at the midpoint compared to the previous range of $10 million to $16 million. Based on current projections, we continue to expect our 2024 adjusted gross profit margin to be between 18% and 22%, which compares very favourably to our 2023 adjusted gross profit margin of 15%.

轉向我們更新的 2024 年指南。基於我們上半年交付的強勁營運業績以及對 2024 年剩餘時間的展望，我們現在預計調整後 EBITDA 將在 1,400 萬美元至 1,800 萬美元之間，較 2024 年增長 23%。美元範圍相比的中點。根據目前的預測，我們繼續預期 2024 年調整後毛利率將在 18% 至 22% 之間，這比 2023 年 15% 的調整後毛利率非常有利。

In closing, we're pleased with our second quarter results. We gained market share, we grew profitability and we improved liquidity. While the rebound in the natural gas market has been slower than many expected, we continue to believe that LNG buildout later this year and continuing into 2025 will lead to higher prices, ultimately incentivizing natural gas producers to increase activity. We continue to believe that we are well positioned to capitalize on the improvement in natural gas fundamentals and the resulting opportunities that will be available.

最後，我們對第二季的業績感到滿意。我們獲得了市場份額，提高了獲利能力，並提高了流動性。儘管天然氣市場的反彈速度慢於許多人的預期，但我們仍然認為，今年稍後並持續到 2025 年的液化天然氣建設將導致價格上漲，最終激勵天然氣生產商增加活動。我們仍然相信，我們處於有利地位，可以利用天然氣基本面的改善以及由此帶來的機會。

I'll now turn the call back over to Ryan to close it out.

我現在將把電話轉回給 Ryan 以結束通話。

Thanks Bond, We are excited about the remainder of 2024 as we believe that Flotek continues to represent a compelling investment opportunity. Our second quarter results delivered revenue and profitability growth as part of our chemistry as a common value creation platform strategy. The approval of our JP3 analyzer provides a strong catalyst for revenue growth later in this year and into 2025. I'm quite proud of the progress we have made, and I'm confident in our ability to execute going forward.

感謝 Bond，我們對 2024 年剩餘時間感到興奮，因為我們相信 Flotek 繼續代表著一個引人注目的投資機會。我們第二季的業績帶來了收入和獲利能力的成長，這是我們化學作為共同價值創造平台策略的一部分。我們的 JP3 分析儀的批准為今年稍後和 2025 年的收入成長提供了強大的催化劑。我對我們所取得的進步感到非常自豪，並且對我們未來的執行能力充滿信心。

We continue to be an industry leader, driving innovation and delivering differentiated chemistry and data solutions that are tailored to our customers' needs. We strive to anticipate future challenges that will impact our industry, so we are at the forefront of delivering chemistry and data solutions before they are needed and creating measurable value for our customers. We appreciate the continued support of all of our stakeholders, and we hope that you share our excitement regarding the future of Flotek, and we look forward to reporting further progress.

我們繼續成為行業領導者，推動創新並提供根據客戶需求量身定制的差異化化學和數據解決方案。我們努力預測將影響我們行業的未來挑戰，因此我們處於在需要之前提供化學和數據解決方案的最前沿，並為我們的客戶創造可衡量的價值。我們感謝所有利害關係人的持續支持，希望您能分享我們對 Flotek 未來的興奮，我們期待報告進一步的進展。

Operator, we are now ready to take questions.

接線員，我們現在準備好回答問題。

(Operator Instructions)

（操作員說明）

Jeff Grampp, Alliance Global Partners

Jeff Grampp，聯盟全球合作夥伴

Good morning, guys. Thanks for the time. First on the Data Analytics side. And in particular, on your slide deck, you guys referenced you've already got orders for over 50 flare sites in just, I guess, the last few weeks with EPA approval. Can you touch on -- I'm curious, I guess, how many customers does that comprise? Are these new customers? Are these upstream? Any of those kind of details to share on those orders would be great.

早安，夥計們。謝謝你的時間。首先是數據分析方面。特別是，在你們的幻燈片上，你們提到你們已經在過去幾週內收到了 50 多個火炬點的訂單，並獲得了 EPA 的批准。你能談談－我想，我很好奇，這包括多少客戶？這些是新客戶嗎？這些是上游嗎？如果能夠分享有關這些訂單的任何此類詳細信息，那就太好了。

Yes. So the majority of the customers are all in the upstream space. And I would say we're probably about a 50-50 blend of customers that we've traditionally done work in the midstream space and then some that are new. And when we look at that around receiving the orders of over 50 flare sites, and we're basically we've got a lead time of about four to six weeks on each cart because they're starting to come out.

是的。所以大部分客戶都在上游領域。我想說的是，我們可能有大約 50-50 名客戶，我們傳統上在中游領域開展工作，然後還有一些新客戶。當我們查看接收超過 50 個照明彈站點的訂單時，我們基本上每個推車的交貨時間約為四到六週，因為它們已經開始發貨。

And these orders, most of them are going to be expected delivery in the into Q3, Q4 and the start of 2025 timeframe, and those orders are continuing to build. So it's quite an exciting time in terms of what we're going to be able to do with this the impact of the flare cart because it truly creates a single solution for monitoring flare emissions.

這些訂單中的大部分預計將在第三季、第四季和 2025 年初交付，而且這些訂單正在繼續增加。因此，就我們將能夠利用火炬車的影響而言，這是一個非常令人興奮的時刻，因為它真正創建了一個用於監控火炬排放的單一解決方案。

Great. I appreciate that, Ryan. And for my follow-up, the external customer growth was noteworthy, and I think you guys kind of alluded to seeing that even on last call. Industry activity, those headed the other way. So I'm curious, what's kind of the view in the back half of the year in terms of the sustainability of continuing to kind of buck that trend when the industry is kind of flat to down?

偉大的。我很感激，瑞安。對於我的後續行動，外部客戶的成長值得注意，我認為你們甚至在最後一次通話中也提到了這一點。行業活動則相反。所以我很好奇，當產業持平甚至下滑時，下半年繼續逆勢而上的可持續​​性有何看法？

You guys have obviously outperformed quite significantly. Can that continue? When does that start to become a bit of a headwind for you guys, if at all?

你們顯然表現得相當顯著。可以繼續這樣嗎？如果有的話，這什麼時候開始對你們來說有點不利呢？

I mean, that's a great question, right? And what I would say is, as we mentioned on our call last time, we've typically seen post COVID a little bit of cyclical nature of the impact of activity in Q1 and we see a strong rebound in Q2. But what I would say is that when you look at our Q2 of '23 to the Q2 of '24, it's 10% better in '24. And you've seen a reduction in the average number of frac fleets in the quarter, which indicates a market share gain. When we look at what we're going to see in the back half of the year, we still believe we've got opportunities to grow our chemistry business, even though we're expecting to see about a - I would say, a 5% to 6% reduction in average frac fleet count.

我的意思是，這是一個很好的問題，對吧？我想說的是，正如我們上次在電話會議中提到的那樣，我們通常會看到新冠疫情後第一季度的活動影響具有一定的周期性，並且我們看到第二季度出現強勁反彈。但我想說的是，當你看看我們 23 年第二季到 24 年第二季時，你會發現 24 年好 10%。您已經看到本季度壓裂船隊的平均數量有所減少，這表明市場份額有所增加。當我們展望今年下半年將會看到的情況時，我們仍然相信我們有機會發展我們的化學業務，儘管我們預計會看到 - 我想說，5平均壓裂船隊數量減少 % 至 6%。

Because if you were just to compare the average of June and what the average of Q2 was, it's running a little over 6% decline in total activity. But I do think we're going to continue to see some slight growth. But there's no doubt, it won't be the percentage jump that we saw from Q1 to Q2. But I think it's going to still present solid performance of market share penetration as we see that growth the activity has been a little slow. And we expect H2 to kind of be a little bit of a low point in the activity of where we're at in this cycle.

因為如果您只是比較 6 月的平均值和第二季的平均值，您會發現總活動下降了 6% 以上。但我確實認為我們將繼續看到一些小幅增長。但毫無疑問，這不會是我們從第一季到第二季看到的百分比跳躍。但我認為，由於我們看到該活動的成長有點緩慢，因此市場佔有率滲透率仍將表現強勁。我們預計下半年會是本週期活動的一個低點。

Yes, that makes a lot of sense or I appreciate the time. Thank you.

是的，這很有意義，或者我很感激能花時間。謝謝。

Don Crist, Johnson Rice.

唐克里斯特、約翰遜賴斯。

Good Morning gentleman on the guidance. I wanted to start on the orders for the 50 orders that you received for the Calix sensor so far. Any breakdown as to how many were outright sales versus on subscription model? I know you were toying around with kind of shifting over to more of a subscription model. Just any color around that?

早安，請先生指導。我想從您迄今為止收到的 50 個 Calix 感測器訂單開始。有沒有詳細說明直接銷售與訂閱模式的銷售量？我知道您正在考慮轉向更多的訂閱模式。周圍有任何顏色嗎？

Current to date, all the ones that we've received now have been all subscription based which has been fantastic for us in terms of the strategy and moving towards that Data as a Service and service revenue model. It will be interesting to see as the market matures because there is substantial benefits to having these units monitoring continuously on a single well throughout the year as they can calculate a destruction number, which can actually improve the performance of the well potentially by 2% to 3%. But right now, 100% of the orders have been on a subscription model.

到目前為止，我們收到的所有內容都是基於訂閱的，這對我們的策略以及向數據即服務和服務收入模式的發展來說非常好。隨著市場的成熟，這將是一件有趣的事情，因為讓這些設備全年對單口井進行連續監控會帶來巨大的好處，因為它們可以計算破壞數量，這實際上可以將油井的性能提高2% 3%。但目前，100%的訂單都是訂閱模式。

Okay. And taking that a step further, obviously, in the presentation, you talked about a addressable market of $220 million. How many sensors just roughly speaking would that take? Is that double or triple the orders that you've gotten already?

好的。顯然，更進一步，您在演講中談到了 2.2 億美元的潛在市場。粗略地說，這需要多少個感測器？這是您已經收到的訂單的兩倍還是三倍嗎？

Yes, it's probably larger than that. I mean, the way we look at it is if you take those 55,000 wells, they have to be serviced essentially once every five years. So we look at it's a total market over that five years of a little over $1 billion, and so we see a recurring revenue space of about $220 million a year. As the growth and adoption takes place, we're targeting the upper teens to 20% market share of that piece. But that will probably take us 2.5-plus years to get there.

是的，它可能比那個更大。我的意思是，我們的看法是，如果你拿這 55,000 口井來說，它們基本上必須每五年維護一次。因此，我們認為這五年的總市場略高於 10 億美元，因此我們看到每年約 2.2 億美元的經常性收入空間。隨著該產品的成長和採用，我們的目標是在該產品上佔據 20% 的市場份額。但這可能需要我們 2.5 年以上的時間才能實現。

But there's no doubt to address that kind of market, it's quite a bit more on a 2x to 3x of what we have currently in sale right now.

但毫無疑問，要滿足這種市場的需求，我們目前銷售的產品的價格是 2 到 3 倍。

Okay. And on the other side of the measurement business, you know, from the production side, any traction on sales there?

好的。在測量業務的另一邊，您知道，從生產方面來看，對銷售有任何推動力嗎？

I know you've added a bunch of salesmen over this year and have gone from a small number to a very large number. Any any follow through on sales on the production side, not on just the flare side.

我知道你們今年增加了一批銷售人員，數量已經從少量增加到非常多。生產方面的任何銷售後續行動，而不僅僅是火炬方面。

Yeah. So the chain of custody piece is what I'm assuming you're referring to on the production component. We are seeing significant interest in that part. And we've actually deployed a series of units out on location taking the measurements. The measurements are it's coming in similar to what we were around our expectations on that.

是的。因此，我假設您指的是生產組件中的監管鏈部分。我們看到人們對這一部分很感興趣。我們實際上已經在現場部署了一系列設備來進行測量。測量結果與我們的預期類似。

And that customer base is continuing to grow. I think our piece on that, that comes I wouldn't say it's a headwind, but it's a component of understanding who that final buyer is going to be in terms of the operator or if that's going to be the leaseholder, et cetera.

而且該客戶群正在持續成長。我認為我們對此的看法是，我不會說這是一種逆風，但它是了解最終買家是誰（就運營商而言）或是否將是承租人等的一個組成部分。

Traditionally speaking, probably closer towards that leaseholder is going to get the larger benefit out of that. But we are seeing a significant amount of interest. The interesting part about that is the flare becomes such a hard push because it's regulated. And this is more of a growing interest. And I won't say proof of concept, we've kind of proven a proof of concept, but it's a matter of getting the understanding out there of how the chain of custody part, how big of an impact that's going to be.

從傳統上講，距離承租人越近的人可能會從中獲得更大的利益。但我們看到了很大的興趣。有趣的是，耀斑變得如此艱難，因為它受到監管。這更是一種日益增長的興趣。我不會說概念證明，我們已經證明了概念證明，但問題是要了解監管鏈如何組成，以及它將產生多大的影響。

We just completed an advanced customer deck, I would say, on the solution case for how it works and the substantial impact looking at chain of custody monitoring can have. So we're pretty excited about that.

我想說，我們剛完成了一個高級客戶平台，介紹了解決方案案例，說明其工作原理以及監管鏈監控可能產生的重大影響。所以我們對此感到非常興奮。

I agree. And once people understand that they can make more money from their production, that should take off. I appreciate the color, guys. I'll turn it back.

我同意。一旦人們明白他們可以從他們的生產中賺更多的錢，這種想法就會起飛。我很欣賞這個顏色，夥計們。我會把它轉回來。

Thanks

謝謝

Gerry Sweeney, ROTH Capital

斯威尼（Gerry Sweeney），羅仕資本

Thank you. Good morning, Ryan and Bond. Thanks for taking my call.

謝謝。早安，瑞安和邦德。感謝您接聽我的電話。

Hey, Gerry. How are you doing?

嘿，格里。你好嗎？

Good. Just wanted to follow up on the flare gas side. I think you just mentioned $220 million sort of addressable market, looking to get to upper teens, even 20% market share. Curious if you could give a little bit of detail, sort of maybe the road map as to how you achieve that over the next couple of years.

好的。只是想跟進火炬氣方面。我想你剛剛提到了 2.2 億美元的潛在市場，希望進入十幾歲的市場，甚至 20% 的市場份額。很好奇您能否提供一些細節，也許是關於如何在未來幾年實現這一目標的路線圖。

Yes. So there's no doubt, we haven't specifically given the public revenue guidance on that growth rate just yet. I will say that our expectation is on the growth. And what we'll see in '24 definitely comes towards the November-December timeframe because the operators are still in that late period of the 180 days from May. We are starting to receive numerous POs, but they're taking delivery in the November-December timeframe.

是的。因此，毫無疑問，我們還沒有具體給出有關該增長率的公共收入指導。我想說的是，我們的期望是成長。我們將在 24 年看到的情況肯定會在 11 月至 12 月的時間範圍內發生，因為營運商仍處於 5 月起 180 天的後期。我們開始收到大量採購訂單，但他們將在 11 月至 12 月的時間範圍內交貨。

Now we've had some customers. Like we mentioned earlier, we've got three on location now. They're starting to see the benefits of having it on location for full-time monitoring. But I do expect us to really start to see that accelerate in '25. And we are committed.

現在我們已經有一些客戶了。正如我們之前提到的，我們現在已經有三個人在現場了。他們開始看到在現場進行全天候監控的好處。但我確實希望我們能在 25 年真正開始看到這種加速。我們承諾。

We're spending another $1 million on advancing builds in the back half of this year to accelerate that growth. But I think in terms of we start some of that 18% to 20% share drive, that comes probably closer out into the 2026 timeframe probably before we can get all the capital deployment in place to address all of that market.

今年下半年，我們將再花費 100 萬美元推進構建，以加速成長。但我認為，就我們開始 18% 至 20% 的份額驅動而言，這可能會更接近 2026 年的時間框架，然後我們才能部署所有資本來應對所有市場。

Got it I'm sure. And then secondarily, just on the follow-up on that external chemistry side, obviously great growth margins got hit by it a little bit due to mix. But I'm just curious, is there any ability as you grow in the Permian and maybe even some other basins, maybe convince some customers to move to more of the higher-margin more advanced chemistries that you're using? Is there enough it sort of upsell then.

我確定明白了。其次，就外部化學方面的後續行動而言，由於混合，顯然巨大的成長利潤受到了一點打擊。但我只是好奇，隨著你們在二疊紀甚至其他盆地的發展，是否有能力說服一些客戶轉向你們正在使用的更多利潤更高、更先進的化學品？那麼是否有足夠的追加銷售呢？

Yes. We kind of bifurcate the way we look at our external chemistry sales into two different components, the first one being the E&P operators. And when we look at the E&P operators, we have a significant amount of success, once we get our chemistry technologies in the door that we are able to move into higher-end technology applications where you've seen that penetration improvement in our proprietary, not only in our Complex nano-Fluid sales, but all of our value-add chemistry, whether it be flowback additives, scale control and everything that really is the backbone of our Prescriptive Chemistry Management systems.

是的。我們將外部化學品銷售的方式分為兩個不同的部分，第一個部分是勘探與生產業者。當我們觀察勘探與生產運營商時，我們取得了巨大的成功，一旦我們獲得化​​學技術，我們就能夠進入更高端的技術應用，在這些應用中，您可以看到我們專有的滲透率的提高，不僅在我們的複合奈米流體銷售中，而且在我們所有的增值化學中，無論是回流添加劑、規模控制以及真正構成我們規範化學管理系統支柱的一切。

But when you look at the other components and a lot of the E&P operators, they're still not E&P operators but the service companies that we sell to just being the horsepower companies, their big concern is controlling friction reduction and different components like that.

但當你看看其他組成部分和許多勘探與生產運營商時，他們仍然不是勘探與生產運營商，而是我們出售給馬力公司的服務公司，他們最關心的是控制摩擦減少和類似的不同組成部分。

So we still move a significant amount of friction reducer to that group of our business.

因此，我們仍然將大量的減阻劑轉移到我們的該業務組。

And so there's not as much, I would say, opportunities to upsell those guys or technology sale them as they're just wanting the operation to exist on the baseline. However, what we are seeing, and we talked about this prior, is the consolidation of these E&P operators is really starting to push through. They're wanting more the better return and better production out of every well.

因此，我想說，沒有太多機會向這些人進行追加銷售或技術銷售，因為他們只是希望該業務存在於基準上。然而，我們所看到的是，我們之前也談過，這些勘探與生產運營商的整合確實開始推進。他們希望從每口井中獲得更多、更好的回報和更好的產量。

So they are starting to listen to us in terms of well spacing, how tight they are, the need for specific chemistry as you down space and also the impact of where we see that interface between the natural frac and what we see those connected [indiscernible] in the back side. So that as we continue to pre-step message in that gospel out there, we'll be talking a lot about it at EnerCom, we're seeing a solid impact coming from the E&P side. And that's actually translating to some of the pressure pumping companies wanting to move those technologies as well.

因此，他們開始聽取我們的意見，包括井距、井距有多緊、在空間下對特定化學物質的需求，以及我們看到的天然壓裂和我們看到的那些相連的界面之間的影響[難以辨別] ] 在背面。因此，當我們繼續在福音中預先傳達訊息時，我們將在 EnerCom 上對此進行大量討論，我們看到來自勘探與生產方面的堅實影響。這其實也意味著一些壓力幫浦公司也希望推廣這些技術。

Got it. I appreciate and I'll jump back in line.

知道了。我很感激，我會重新排隊。

Yes, thanks.

是的，謝謝。

Blake McLean, Daniel Energy Partners.

布萊克·麥克萊恩，丹尼爾能源合夥人。

Hi, good morning, guys. Thanks for taking my question here.

嗨，早上好，夥計們。感謝您在這裡提出我的問題。

Hi, Blake. How are you doing?

嗨，布萊克。你好嗎？

I'm good. Thanks, man. So I wanted to dig a bit more on the Data Analytics piece. You guys have provided a ton of great information here on the flare gas opportunity. Could you maybe talk a bit more about some of the other applications and market penetration efforts that you guys have? We've hit upstream a bit, but maybe on the midstream and the downstream side, how are you guys prioritizing efforts there? Where do you see the biggest opportunities?

我很好。謝謝，夥計。所以我想深入了解數據分析部分。你們在這裡提供了大量有關火炬氣機會的重要資訊。您能否多談談您們的其他一些應用程式和市場滲透工作？我們已經觸及了上游一些，但也許在中游和下游方面，你們如何優先考慮那裡的工作？您認為最大的機會在哪裡？

Yes, for sure. If it's all right, I'll kind of start with the upstream part the most because we feel internally that is some of our biggest opportunities not only for rapid growth, but it's where our technology is extremely differentiated. If you look at the flare gas monitoring, the competition out there is pretty much held to taking samples. Taking samples is very expensive, it's prone to error and service quality component problems. And so we definitely see not only a better cost effective applications there for us but also better accuracy, which is why the EPA has been so highly touting our technologies in terms of the flare monitoring.

是的，當然。如果可以的話，我會從上游部分開始，因為我們內部認為，這不僅是我們快速成長的最大機會，也是我們技術極其差異化的地方。如果你看一下火炬氣體監測，你會發現那裡的競爭幾乎都是取樣。取樣非常昂貴，而且容易出現錯誤和服務品質組件問題。因此，我們肯定不僅看到了更好的成本效益應用，而且還獲得了更好的準確性，這就是為什麼 EPA 一直在火炬監測方面大力宣傳我們的技術。

We see the exact same thing in composite sampling versus our real-time measurement to chain of custody. So that in my opinion, we've got a pretty good-sized addressable market that we're highly differentiated on our cost and technical capabilities.

我們在複合抽樣與監管鏈即時測量中看到了完全相同的情況。因此，在我看來，我們擁有一個規模相當大的潛在市場，我們在成本和技術能力方面具有高度差異化。

As we move into the downstream piece, that's where a lot of our core business had existed in terms of trans mix, Reid vapor pressure monitoring and even as you move down into refined fuel blending, et cetera, and volume increases there. But I'll tell you, trans mix, definitely differentiated because we have autonomous real-time sampling. Reid vapor pressure, we do that very, very well.

當我們進入下游領域時，我們的許多核心業務都在那裡，包括反式混合、里德蒸氣壓監測，甚至當你進入精煉燃料混合等領域時，那裡的產量也會增加。但我會告訴你，跨性別混合，絕對是與眾不同的，因為我們有自主即時取樣。里德蒸氣壓，我們在這方面做得非常非常好。

As you start to but that market is probably a little bit more of a limited CAGR as compared to what we see in the upstream side. And so and as you move further downstream, you move into more fixed installation or capital purchases, and we run head-to-head against gas chromatography and some of those other components that we start to lose a little bit of the differentiation. Because some of those GC units have auto samplings, et cetera, and the fixed installations. And so we prioritize our efforts more to the areas where we have significant price and/or technical differentiation and where we've got a rapid penetration rate into the addressable market, if that makes sense.

當你開始時，但與我們在上游看到的相比，該市場的複合年增長率可能有點有限。因此，當您進一步向下游移動時，您會進入更多的固定安裝或資本購買，並且我們與氣相色譜法和其他一些組件進行正面交鋒，我們開始失去一點差異化。因為其中一些 GC 裝置具有自動進樣等功能以及固定裝置。因此，我們將工作重點放在具有顯著價格和/或技術差異化以及我們能夠快速滲透到目標市場的領域（如果這是有意義的）。

Yes, that's all really good color. Really appreciate the time this morning, guys.

是的，這都是非常好的顏色。夥計們，真的很感激今天早上的時光。

Bj Cook of Singular Research.

Bj Cook 的 Singular Research。

Good morning, guys. Can you hear me?

早安，夥計們。你聽得到我嗎？

Yes, good morning.

是的，早安。

Good morning. Given that you have can you provide a commentary on your capacity to accommodate external customers considering that you have close to $200 million in annual backlog with ProFrac? And maybe you can also give us some color on the background beyond the $2 billion?

早安.考慮到您的 ProFrac 年度積壓訂單接近 2 億美元，您能否對您接待外部客戶的能力提供評論？也許你還可以給我們一些關於 20 億美元之外的背景的資訊？

Yes. So it's a great question for us. It's something we're actually pretty excited about. One of our strategic pillars has always been a capitalized business model. And this has been because of where our facility locations, particularly some of our manufacturing facilities, we have substantial runway to continue to grow revenue and output through those manufacturing facilities and actually gain efficiency costs in our blending of materials and products.

是的。所以這對我們來說是一個很好的問題。這實際上是我們非常興奮的事情。我們的策略支柱之一始終是資本化的商業模式。這是因為我們的工廠所在地，特別是我們的一些製造工廠，我們擁有大量的跑道來繼續透過這些製造工廠增加收入和產量，並在材料和產品的混合中實際上獲得效率成本。

If you were to take our one of our main facilities centrally located in Marlow, Oklahoma, just outside of Oklahoma City, we're only running a single day shift right now. And it's probably operating at about 37% capacity. So you look at we could probably look at [2.5x to 3x] increase in throughput through that single facility alone and growing revenue on the chemistry side. So I think we have a great runway without to grow the business, improve profitability and gain efficiencies without having to spend a significant amount of capital on the chemistry side.

如果您要使用我們位於俄克拉荷馬州馬洛中心、俄克拉荷馬城郊外的主要設施之一，我們現在只運行單日班。它的運作容量可能約為 37%。所以你看，我們可能會看到僅通過該單一設施的吞吐量就增加了 [2.5 倍到 3 倍]，並且化學方面的收入也不斷增長。因此，我認為我們有一個很好的跑道，無需在化學方面花費大量資金即可發展業務、提高盈利能力和提高效率。

And then we look at where we're going to try to grow the JP3 business, we spent a significant amount of time not only increasing the sourcing capacity of our proprietary [analyzers], but also the rate at which we can manufacture them. And we've talked about that quite a bit in some of the prior earnings calls, where we're going to see about a 10x improvement in our manufacturing speed on the proprietary sensors.

然後我們看看我們將在哪裡嘗試發展 JP3 業務，我們花了大量時間，不僅提高了我們專有[分析儀]的採購能力，而且提高了我們的製造速度。我們在之前的一些財報電話會議上已經多次討論過這一點，我們將看到專有感測器的製造速度提高了 10 倍。

And we're going through a similar process on advancing the rate at which we can manufacture our carts for the flare monitoring. So I think we've got without having to spend a massive amount of capital intensity, we've got a great run rate to continue to grow the business.

我們正在經歷類似的過程，以提高我們製造用於火炬監控的推車的速度。因此，我認為我們無需花費大量的資本密集度，就能獲得很高的運作率來繼續發展業務。

And any color on the on the backlog beyond the $2 billion that you have with ProFrac?

除了 ProFrac 的 20 億美元之外，積壓訂單上還有什麼顏色嗎？

So we consistently talk about it because there's no doubt that it's our longest-standing unique contract, and we're excited to have it and actually work with an advanced partner like ProFrac when you look at their commitment on technologies and service quality. But when we look at some of our other external customers, there's no doubt, we're a primary supplier on a multitude of other contracts.

因此，我們一直在談論它，因為毫無疑問，這是我們歷史最悠久的獨特合同，我們很高興能擁有它，並與像ProFrac 這樣的先進合作夥伴實際合作，看看他們對技術和服務質量的承諾。但當我們看看其他一些外部客戶時，毫無疑問，我們是許多其他合約的主要供應商。

However, they do tend to be a little bit more transactional in nature and can often be penetrated by if you have a technical differentiation or they want a test trial something. So we think they're a little stickier than they used to be, but they don't nearly represent such a magnitude of backlog as what we see from ProFrac.

然而，它們在本質上確實傾向於更具交易性，如果您有技術差異化或他們想要進行一些測試試驗，通常可以被滲透。因此，我們認為它們比以前更有黏性，但它們幾乎不代表我們從 ProFrac 看到的積壓程度。

And maybe a little color for me on the Data Analytics side. I know it's not the revenue model is not purely a function of the number of units that are installed. It's more the services that you provide around it. Is there an opportunity to build on those services to become a meaningful top line driver for growth? I mean, do you have the capacity in terms of talent pool? Or would you have to would that be a hiring effort that you will have to undertake?

也許在數據分析方面對我來說有點色彩。我知道這不是收入模式，也不純粹是安裝數量的函數。更多的是你圍繞它提供的服務。是否有機會以這些服務為基礎，成為有意義的收入成長驅動力？我的意思是，你們有人才儲備的能力嗎？或者您必須這樣做，這是您必須承擔的招募工作嗎？

So I think that when we look at it now is that the strategy of the organization is to grow revenue, which we've been doing an increased percentage of recurring revenue or Data as a Service type revenue inside the model. In doing so, we've actually probably slowed the actual total revenue we could get versus capital sales.

因此，我認為，當我們現在看待它時，組織的策略是增加收入，我們一直在模型內增加經常性收入或資料即服務類型收入的百分比。在這樣做的過程中，我們實際上可能已經放慢了與資本銷售相比我們可以獲得的實際總收入。

However, we've been consistently building that backlog of recurring revenue, which in the long run is going to be substantially more profitable for the organization. We also feel that it will have a significant impact on the valuation of the organization as most of the Data as a Service businesses trade at a much higher multiple than if we were just doing sensor capital sales and not supporting the service side or the total solution side.

然而，我們一直在不斷累積經常性收入，從長遠來看，這將為組織帶來更多的利潤。我們也認為，這將對組織的估值產生重大影響，因為大多數數據即服務業務的交易倍數比我們僅進行感測器資本銷售而不支持服務方或整體解決方案的倍數高得多邊。

I don't feel right now that we're at a huge bottleneck on the acceptance at this point as we made some of these manufacturing changes. And we are pre-committing capital into the data -into the JP3 or the Data Analytics side of the business at a much higher rate than what we may even been doing on the chemistry side to ensure that we have the analyzer stuff to grow the business. And we're not hindered by that aspect.

我現在不覺得我們在接受方面遇到了巨大的瓶頸，因為我們做了一些製造方面的改變。我們正在將資金預先投入到 JP3 或業務的數據分析方面，其速度甚至比我們在化學方面所做的要高得多，以確保我們擁有分析儀材料來發展業務。我們並沒有受到這方面的阻礙。

And as someone relatively new to the sector, maybe you can help me understand the economics between and an oil weighted page in the gas-weighted basin at how does that specifically? The economics vary between increased activity in between those patients now as part of the discussion, can you discuss the different types of chemistry required across the various regions?

作為該行業相對較新的人，也許您可以幫助我了解天然氣加權盆地中的石油加權頁面之間的經濟性，具體如何？現在作為討論的一部分，這些患者之間的活動增加之間的經濟學有所不同，您能討論不同地區所需的不同類型的化學嗎？

Yes. That's another great question. Traditionally speaking, and I'll use, for example, the Permian Basin versus the Haynesville, which is in the Ark-La-Tex region. The Haynesville, the hydraulic fracturing takes place, operates at higher pressures, significantly higher temperatures and requires a much more complex system, oftentimes a hybrid combination between slickwater and crosslink waters, which also carries more corrosion inhibition products, scale inhibition products, et cetera, just to the significant technical challenges that are taken in those basins.

是的。這是另一個很好的問題。傳統上來說，例如，我將使用二疊紀盆地與位於 Ark-La-Tex 地區的 Haynesville。海恩斯維爾（Haynesville）進行水力壓裂，在更高的壓力和明顯更高的溫度下運行，並且需要更複雜的系統，通常是滑溜水和交聯水的混合組合，它還攜帶更多的腐蝕抑制產品、阻垢產品等，只是為了應對這些盆地所面臨的重大技術挑戰。

So typically, for us, we see better revenue per fleet activity in a lot of these gas-driven basins, particularly Haynesville, as in comparison to what we see in West Texas and just mostly because of the technology requirements, which also benefits us because we have unique and I say proprietary tech that works very well in those basins. And so when you look at it now, when we model it, we have a little bit different revenue per fleet. But you do see a difference in between where we're at, probably 30% maybe of total average monthly revenue per fleet between the Haynesville versus what you see in the Permian Basin and more of these oil-rich basins.

因此，對於我們來說，通常情況下，與我們在西德克薩斯州看到的情況相比，我們在許多這些天然氣驅動盆地（特別是海恩斯維爾）中看到每船隊活動的收入更高，這主要是因為技術要求，這也使我們受益，因為我們擁有獨特的專有技術，在這些盆地中運作良好。因此，當你現在看它時，當我們對其進行建模時，我們每個機隊的收入略有不同。但你確實看到了我們所處的位置之間的差異，海恩斯維爾與二疊紀盆地和更多富含石油的盆地之間的每個船隊平均月總收入可能相差 30%。

Richard Dearnley, Longport Partners.

理查德·迪恩利，朗波特合夥人。

Good morning.

早安.

Good morning

早安

What was the minimum purchase payments for the quarter and the first quarter from ProFrac?

本季和第一季 ProFrac 的最低採購付款是多少？

So in the second quarter, it was about $8 million- right. You're talking about the shortfall calculation?

所以第二季大約是 800 萬美元——對吧。你說的是缺口計算嗎？

Yes, the make good payment.

是的，支付良好。

Right?

正確的？

Yes. So we'll be filing our 10-Q tomorrow and all those numbers will be in their arm for the second quarter was about $8 million.

是的。因此，我們明天將提交 10-Q 報告，所有這些數字將在第二季約為 800 萬美元。

And the first quarter, I probably got that written down, what was that?

第一季度，我可能已經寫下來了，那是什麼？

It was around $8.5 million.

金額約 850 萬美元。

Great. And as you account for it, I would guess those payments are very high gross margin. Is that correct?

偉大的。考慮到這一點，我猜這些付款的毛利率非常高。這是正確的嗎？

Yes. Just to kind of review how this works, we accrue on a quarterly basis the shortfall, but the ultimate settle-up is calculated on an annual basis. So the cumulative amount of the shortfall can fluctuate based upon activity levels throughout the year. And at the end of the year, the shortfall is settled up in the first quarter of the following year. So as we accrue the 2024 shortfall, it could go up, it could go down based on activity.

是的。為了回顧這是如何運作的，我們按季度累積缺口，但最終的結算是按年計算的。因此，缺口的累積金額可能會根據全年的活動水準而波動。年底，缺口在隔年一季度彌補。因此，當我們計算 2024 年的缺口時，根據活動情況，它可能會上升，也可能會下降。

And then it settles up in the first quarter of 2025. So your AR balance or our AR balance will grow throughout the year based upon what that shortfall does.

然後它會在 2025 年第一季穩定下來。因此，您的應收帳款餘額或我們的應收帳款餘額將根據缺口的影響全年增長。

Right. Good. Thank you.

正確的。好的。謝謝。

(Operator Instructions)

（操作員說明）

There are no further questions at this time. I'd now like to turn the call back over to Mike Critelli for final closing remarks. Please go ahead.

目前沒有其他問題。現在我想將電話轉回給麥克‧克里泰利 (Mike Critelli)，讓其作最後的總結發言。請繼續。

Thank you again for joining us today. . I'd like to remind everyone that Ryan Ezell, Flotek's CEO, will be presenting at EnerCom Denver, the Energy Investment Conference on Monday, August 19 at 9:15 a.m. Mountain Time as well as the 2024 Gateway Conference in San Francisco, California on Wednesday, September 4, 2024. He will be joined by CFO, Bond Clement, in hosting meetings with investors. And a copy of the presentation that will be used in each discussion will be available on the corporate website prior to the event.

再次感謝您今天加入我們。。我想提醒大家，Flotek 執行長Ryan Ezell 將於山區時間8 月19 日星期一上午9:15 在EnerCom 丹佛能源投資會議上發表演講，並於2024 年在加州舊金山舉行的Gateway 會議上發表演講。財務長 Bond Clement 將與他一起主持與投資者的會議。每次討論中使用的簡報副本將在活動開始前在公司網站上提供。

We look forward to meeting with many of you at the conference. Thanks again for joining us today. Please feel free to contact us if you have any additional questions. Have a great day.

我們期待在會議上與你們中的許多人見面。再次感謝您今天加入我們。如果您有任何其他問題，請隨時與我們聯繫。祝你有美好的一天。

Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you please disconnect your lines.

女士們、先生們，今天的電話會議到此結束。我們感謝您的參與，並請您斷開線路。