ProPetro Holding Corp (PUMP) 2022 Q4 法說會逐字稿

Good day, and welcome to the ProPetro Holding Corp. Fourth Quarter 2022 Conference Call. Please note, this event is being recorded. I would now like to turn the call over to Matt Augustine, Director of Corporate Development and Investor Relations for ProPetro Holding Corp. Please go ahead.

美好的一天，歡迎來到 ProPetro Holding Corp. 2022 年第四季度電話會議。請注意，正在記錄此事件。我現在想把電話轉給 ProPetro Holding Corp 企業發展和投資者關係總監 Matt Augustine。請繼續。

Thank you, and good morning. We appreciate your participation in today's call. With me today is Chief Executive Officer, Sam Sledge, Chief Financial Officer, David Schorlemer; and President and Chief Operating Officer, Adam Munoz. Yesterday afternoon, we released our earnings results for the fourth quarter and full year of 2022. Please note that any comments we make on today's call regarding projections or our expectations for future events are forward-looking statements covered by the Private Securities Litigation Reform Act. Forward-looking statements are subject to several 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 risk factors discussed in our filings with the SEC. Also during today's call, we will reference certain non-GAAP financial measures. Reconciliations of these non-GAAP measures to the most directly comparable GAAP measures are included in our earnings release.

謝謝，早上好。感謝您參與今天的電話會議。今天和我在一起的是首席執行官 Sam Sledge、首席財務官 David Schorlemer；總裁兼首席運營官 Adam Munoz。昨天下午，我們發布了 2022 年第四季度和全年的收益結果。請注意，我們在今天的電話會議上就預測或我們對未來事件的預期所做的任何評論都是《私人證券訴訟改革法》所涵蓋的前瞻性陳述。前瞻性陳述受若干風險和不確定性的影響，其中許多是我們無法控制的。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大不相同。我們建議聽眾審查我們在提交給美國證券交易委員會的文件中討論的收益發布和風險因素。同樣在今天的電話會議中，我們將參考某些非 GAAP 財務指標。這些非 GAAP 措施與最直接可比的 GAAP 措施的對賬包含在我們的收益發布中。

Additionally, during today's call, we will discuss January 2023 results. Of note, these results are preliminary and based upon information available to management as of the date hereof. These results are subject to change and may differ materially from our reported results for the 3 months ended March 31, 2023. Lastly, after our prepared remarks, we will hold a question-and-answer session. With that, I would like to turn the call over to Sam.

此外，在今天的電話會議中，我們將討論 2023 年 1 月的結果。值得注意的是，這些結果是初步的，並基於截至本報告發布之日管理層可獲得的信息。這些結果可能會發生變化，並且可能與我們報告的截至 2023 年 3 月 31 日的 3 個月的結果存在重大差異。最後，在我們準備好的評論之後，我們將舉行問答環節。有了這個，我想把電話轉給山姆。

Thanks, Matt, and good morning, everyone. 2022 was a transformational year for ProPetro, and we are pleased to be off to an even stronger start in 2023. David will speak to our financial results for the fourth quarter and the full year of 2022 in a moment. But before that, I'd like to take a step back and acknowledge some of the key achievements and milestones from our team in 2022. As you know, in November, we closed on our acquisition of Silvertip Completion Services, a step that positioned ProPetro not just as a leading pressure pumping company but now is a leading completions-focused oilfield services company. Integration of Silvertip into ProPetro has been successful. And since closing, we've begun to capitalize on the strategic vision that drove this transaction. With Silvertip, we've expanded our portfolio to include a best-in-class wireline company that enables us to pursue accretive growth opportunities and positions us to further expand our margins and increase free cash flow generation.

謝謝，馬特，大家早上好。 2022 年是 ProPetro 轉型的一年，我們很高興在 2023 年有一個更強勁的開端。David 稍後將介紹我們 2022 年第四季度和全年的財務業績。但在此之前，我想退後一步，承認我們團隊在 2022 年取得的一些關鍵成就和里程碑。如您所知，11 月，我們完成了對 Silvertip Completion Services 的收購，這一步驟使 ProPetro 處於領先地位不僅是一家領先的壓力泵公司，而且現在是一家領先的以完井為重點的油田服務公司。 Silvertip 已成功集成到 ProPetro 中。自交易完成以來，我們已經開始利用推動此次交易的戰略願景。通過 Silvertip，我們擴大了我們的投資組合，包括一家一流的有線公司，這使我們能夠尋求增值增長機會，並使我們能夠進一步擴大利潤並增加自由現金流的產生。

As previously announced in December, shortly after the closing of Silvertip to meet the increasing demand for next-generation hydraulic fracturing services, we were pleased to announce our first contract for one of our electric fleets, ordered 2 additional e-fleets under the master lease agreement used for our first 2 electric fleet orders and deploy our fifth Tier 4 dynamic gas blending or DGB fleet with our sixth to come online in the coming weeks. We expect that ProPetro will have at least 7 Tier 4 DGB fleets and 4 electric fleets by the end of 2023, making approximately 2/3 of our frac offering natural gas capable. These recent actions significantly advanced our strategy to industrialize our business, and we are confident that we are well positioned to execute on the many value-enhancing opportunities ahead in 2023 and beyond.

正如之前在 12 月宣布的那樣，在 Silvertip 關閉以滿足對下一代水力壓裂服務日益增長的需求後不久，我們很高興地宣布了我們的一個電動車隊的第一份合同，根據主租約訂購了 2 個額外的電子車隊協議用於我們的前 2 個電動車隊訂單，並部署我們的第五個 Tier 4 動態氣體混合或 DGB 車隊，我們的第六個將在未來幾週內上線。我們預計到 2023 年底，ProPetro 將至少擁有 7 個 Tier 4 DGB 車隊和 4 個電動車隊，使我們大約 2/3 的壓裂提供天然氣。這些最近的行動顯著推進了我們的業務工業化戰略，我們相信，我們有能力把握 2023 年及以後的許多增值機會。

The fourth quarter was also a significant transition period for ProPetro. As we noted during our third quarter call, we laid the groundwork and prepared a significant portion of our portfolio for repricing and repositioning effort that occurred in early January. This repositioning of fleets has enabled us to pursue opportunities with other customers under accretive terms, and we're very excited to renew some prior relationships and expand others. Our operating team's excellence at the well site, along with a very intentional approach by our business development team, has enabled this part of our strategy to be a success. Ahead of the repricing of our fleets in January, we decided to temporarily curtail one of our active fleets in the second half of the fourth quarter to prioritize our overall fleet health in order to position us best to capitalize on the pricing uplift we were able to capture in January. In the fourth quarter, we also experienced an increased amount of seasonality and holiday impact, along with the impacts from the winter storm that occurred throughout the U.S. leading up to the holidays, with the storm ultimately affecting several of our customers focused here in the Permian Basin.

第四季度也是 ProPetro 的重要過渡期。正如我們在第三季度電話會議中指出的那樣，我們為 1 月初發生的重新定價和重新定位工作奠定了基礎，並準備了我們投資組合的很大一部分。這種機隊的重新定位使我們能夠在增值條件下尋求與其他客戶的機會，我們非常高興能夠更新一些先前的關係並擴展其他關係。我們的運營團隊在井場的卓越表現，以及我們的業務開發團隊非常有意識的方法，使我們這部分戰略取得了成功。在 1 月份重新定價我們的機隊之前，我們決定在第四季度下半年暫時縮減我們的一個現役機隊，以優先考慮我們整體機隊的健康狀況，以便我們最好地利用我們能夠實現的價格上漲一月捕獲。在第四季度，我們還經歷了越來越多的季節性和假期影響，以及假期前在美國各地發生的冬季風暴的影響，風暴最終影響了我們集中在二疊紀的幾個客戶盆地。

At ProPetro, we pride ourselves on a commitment to best-in-class corporate governance, including the Board's focus on director refreshment and building a strong bench of outstanding leaders and employees at ProPetro. To that end, recently, we were pleased to welcome Mary Ricciardello to our Board of Directors and look forward to benefiting from her expertise. Additionally, the New Year also saw the appointment of Jody Mitchell as ProPetro's new General Counsel and Corporate Secretary. Jody is an industry veteran and has quickly become an integral member of our core leadership team. Another important element of good governance is enhanced sustainability practices. We are pleased to announce that in 2023, we will be issuing our first ever sustainability report, which will provide an in-depth look at the work underway to deliver on our commitment to transition our fleet in support of more efficient operations with reduced emissions while also leading efforts in the community to promote a cleaner and safer environment across the Permian Basin and for our teammates here at ProPetro.

在 ProPetro，我們以致力於一流的公司治理而自豪，包括董事會對董事更新的關注以及在 ProPetro 建立強大的優秀領導者和員工隊伍。為此，最近，我們很高興地歡迎 Mary Ricciardello 加入我們的董事會，並期待從她的專業知識中受益。此外，新年還見證了 Jody Mitchell 被任命為 ProPetro 的新總法律顧問兼公司秘書。 Jody 是一位行業資深人士，並迅速成為我們核心領導團隊不可或缺的成員。良好治理的另一個重要因素是加強可持續性實踐。我們很高興地宣布，我們將在 2023 年發布有史以來的第一份可持續發展報告，該報告將深入探討正在進行的工作，以履行我們對機隊轉型的承諾，以支持更高效的運營並減少排放，同時還領導社區努力促進整個二疊紀盆地和我們在 ProPetro 的隊友更清潔、更安全的環境。

Being a Midland-based and Permian Basin focused oilfield services company that serves leading upstream oil and gas operators gives us a unique vantage point into the market and into current trends. To that end, before I turn it over to David, I'd like to take a few moments to discuss the broader oil and gas market and what we are seeing. Despite recent pressure on the price of natural gas, we believe both oil and natural gas remain in structural undersupply especially globally and may remain so for the foreseeable future. As it pertains to the recent decline in natural gas prices being 100% located in the Permian, with customers that have large drilling programs and full calendars does insulate us from some of the risks that our peers working in gas-focused basins may face. Furthermore, if demand for frac services temporarily declines in gas-focused basins and a few competitor fleets subsequently moved to the Permian, we believe the demand gap is large enough to absorb the new fleets without disruption, especially when considering the bifurcation and service quality and equipment offerings as small privates and other subscale competitors do not have the next-generation capabilities that ProPetro has compiled. Notably, the continued spread between diesel and natural gas price bolsters our fleet transition strategy. Diesel displacement in our customers' completions programs will continue to become more and more valuable for the foreseeable future.

作為一家總部位於米德蘭、專注於二疊紀盆地的油田服務公司，為領先的上游石油和天然氣運營商提供服務，使我們在進入市場和當前趨勢方面具有獨特的優勢。為此，在我把它交給大衛之前，我想花點時間討論一下更廣泛的石油和天然氣市場以及我們所看到的情況。儘管近期天然氣價格面臨壓力，但我們認為石油和天然氣仍處於結構性供應不足的狀態，尤其是在全球範圍內，並且在可預見的未來可能仍將如此。由於最近天然氣價格下跌 100% 位於二疊紀，擁有大型鑽井計劃和完整日曆的客戶確實使我們免受在以天然氣為重點的盆地工作的同行可能面臨的一些風險。此外，如果以天然氣為重點的盆地對壓裂服務的需求暫時下降，一些競爭對手的船隊隨後轉移到二疊紀，我們認為需求缺口足夠大，可以在不中斷的情況下吸收新船隊，特別是考慮到分叉和服務質量以及作為小型私營企業和其他規模較小的競爭對手的設備供應不具備 ProPetro 編制的下一代功能。值得注意的是，柴油和天然氣價格之間的持續價差支持了我們的車隊轉型戰略。在可預見的未來，我們客戶完井項目中的柴油置換將繼續變得越來越有價值。

As we move forward, we remain acutely focused on taking our business to the next level and executing on our strategic goals to drive meaningful returns. To achieve this, first, we are actively optimizing our operations through a more industrialized approach to our business, which we expect will unlock additional free cash flow generation into the future. Second, we are continuing to transition our fleet in a way that minimizes our overall capital cost while delivering next-generation services that are in high demand from our customers. And third, we are continuing to pursue opportunistic strategic acquisitions that increase our competitiveness and are in the best interest of all of our stakeholders. All of this is being done with the ultimate goal of generating strong returns and value for our shareholders, and we are already beginning to realize a portion of the tremendous value that we are confident this strategy will deliver.

在我們前進的過程中，我們仍然專注於將我們的業務提升到一個新的水平，並執行我們的戰略目標以推動有意義的回報。為實現這一目標，首先，我們正在通過更加工業化的業務方法積極優化我們的運營，我們預計這將在未來釋放更多的自由現金流。其次，我們將繼續以最小化整體資本成本的方式轉變我們的機隊，同時提供客戶高需求的下一代服務。第三，我們將繼續尋求機會主義的戰略收購，以提高我們的競爭力，並符合我們所有利益相關者的最大利益。所有這一切的最終目標都是為我們的股東創造豐厚的回報和價值，我們已經開始意識到我們相信這一戰略將帶來的巨大價值的一部分。

I'll now turn it over, but before I do, I'd be remiss if I did not take a moment to thank the ProPetro team for their outstanding work in 2022. Without them, we would not have been able to achieve all that we did during this incredible year. And just as importantly, we would not have been able to lay the groundwork for all that is to come in 2023 and beyond. With that, I'll turn the call over to David to discuss our fourth quarter and full year financial performance. David?

我現在把它翻過來，但在我翻過來之前，如果我不花一點時間感謝 ProPetro 團隊在 2022 年所做的出色工作，那我就是失職了。沒有他們，我們不可能取得這一切我們在這不可思議的一年裡做到了。同樣重要的是，我們無法為 2023 年及以後的一切奠定基礎。有了這個，我會把電話轉給大衛討論我們第四季度和全年的財務業績。大衛？

Thanks, Sam, and good morning, everyone. Before I dive in, I would also like to echo Sam's thanks for our team members and their continued hard work and dedication to ProPetro. Now let's move on to our financial results. Our performance in 2022 showed continued improvement over 2021 with our financial discipline and pricing strategy generating excellent results. Revenue for the full year 2022 was $1.3 billion, a 46% increase year-over-year. Adjusted EBITDA increased 134% year-over-year to $317 million, which was driven by our disciplined commitment to improve pricing, responsive repositioning and cost management. Equally impressive was our adjusted EBITDA margins that increased 930 basis points to 25%. We were able to achieve this in the midst of significant inflationary pressures, a constrained supply chain and a dynamic pricing environment. The company also posted a net income of $2 million for 2022, which is a significant turnaround compared to a $54 million net loss in 2021. During the fourth quarter, we generated $349 million of revenue, a 5% increase from the third quarter. The increase is largely attributable to the acquisition of an inclusion of November and December activity of Silvertip.

謝謝，山姆，大家早上好。在開始之前，我還想表達 Sam 對我們團隊成員的感謝，以及他們對 ProPetro 的持續努力和奉獻。現在讓我們繼續我們的財務結果。我們在 2022 年的表現比 2021 年持續改善，我們的財務紀律和定價策略產生了出色的結果。 2022 年全年收入為 13 億美元，同比增長 46%。調整後的 EBITDA 同比增長 134% 至 3.17 億美元，這得益於我們對改善定價、響應式重新定位和成本管理的嚴格承諾。同樣令人印象深刻的是我們調整後的 EBITDA 利潤率增加了 930 個基點，達到 25%。我們能夠在巨大的通脹壓力、受限的供應鍊和動態的定價環境中實現這一目標。該公司還公佈 2022 年的淨收入為 200 萬美元，與 2021 年的 5400 萬美元淨虧損相比，這是一個重大轉機。第四季度，我們創造了 3.49 億美元的收入，比第三季度增長 5%。增加的主要原因是收購了 Silvertip 的 11 月和 12 月活動。

Our effective frac fleet utilization was 14.5 fleets for the fourth quarter, which was in line with our prior guidance of 14 to 15 fleets. Our guidance for the first quarter is 14.5 to 15.5 fleets. Cost of services, excluding depreciation and amortization for the fourth quarter was $243 million versus $224 million in the third quarter, with the increase driven by the Silvertip acquisition, additional strategic supply chain purchases and cost inflation across all of our service lines. Fourth quarter general and administrative expense was $27 million compared to $28 million in the third quarter. Adjusted G&A was $22 million and excludes $5 million relating to nonrecurring and noncash items. Depreciation was $34 million in the fourth quarter. The company posted net income of $13 million or $0.12 per diluted share compared to net income of $10 million or $0.10 per diluted share in the prior quarter. As Sam mentioned, the fourth quarter was a transitional one for ProPetro. Looking back at the full year, we posted strong performance while undergoing a significant recapitalization of our fleet.

我們第四季度的有效壓裂機隊利用率為 14.5 個機隊，這與我們之前的 14 至 15 個機隊的指導相符。我們對第一季度的指導是 14.5 到 15.5 個機隊。第四季度不包括折舊和攤銷的服務成本為 2.43 億美元，而第三季度為 2.24 億美元，增長的原因是收購 Silvertip、額外的戰略供應鏈採購以及我們所有服務線的成本膨脹。第四季度的一般和行政費用為 2700 萬美元，而第三季度為 2800 萬美元。調整後的 G&A 為 2200 萬美元，不包括與非經常性和非現金項目相關的 500 萬美元。第四季度折舊為 3400 萬美元。公司公佈的淨收入為 1300 萬美元或稀釋後每股收益 0.12 美元，而上一季度的淨收入為 1000 萬美元或稀釋後每股收益 0.10 美元。正如 Sam 所提到的，第四季度對 ProPetro 來說是過渡性的。回顧全年，我們在對機隊進行重大重組的同時取得了強勁的業績。

Moving to 2023, we're off to a great start to the year, and we'd like to share some selected preliminary financial results that we are encouraged by so far. Due to the repositioning and repricing efforts we undertook for our businesses in the fourth quarter of 2022, our January performance was extraordinarily strong despite experiencing some weather impacts during the month and operating only 14 active fleets for the majority of that month. Revenues came in at $136 million, and we incurred cost of services of $88 million with general and administrative costs of $8 million exclusive of stock-based compensation and other nonrecurring items of approximately $2 million. Doing the math, you can see it was a good month. Of note, in February, our 15th fleet that we had reactivated late last year is now back on a committed calendar, and we're expecting a more fulsome contribution of our 15 active fleets going forward. I'd also like to point out that Silvertip posted $20 million of revenue for January, which is the highest monthly total in its history. We are excited about the contribution this business is already making.

邁向 2023 年，我們有了一個良好的開端，我們想分享一些迄今為止令我們感到鼓舞的選定初步財務結果。由於我們在 2022 年第四季度為我們的業務進行了重新定位和重新定價的努力，儘管該月經歷了一些天氣影響並且該月的大部分時間僅運營 14 個活躍機隊，但我們 1 月份的表現非常強勁。收入為 1.36 億美元，我們產生了 8800 萬美元的服務成本，其中一般和管理成本為 800 萬美元，不包括基於股票的補償和其他約 200 萬美元的非經常性項目。算一算，你會發現這是一個不錯的月份。值得注意的是，在 2 月，我們去年年底重新啟動的第 15 支艦隊現在又回到了承諾的日曆上，我們期待我們的 15 支現役艦隊在未來做出更大的貢獻。我還想指出，Silvertip 在 1 月份公佈了 2000 萬美元的收入，這是其歷史上最高的月度總收入。我們對這項業務已經做出的貢獻感到興奮。

As we have discussed, we expect that demand for our services will remain robust as we proceed into 2023. Therefore, we believe our performance in January was a strong baseline and expect to build upon that momentum as we progress into the balance of this year. Turning back to 2022 results. Our full year 2022 cash CapEx was $320 million or slightly below the midpoint of our prior guidance, and our incurred CapEx was $365 million, which is slightly above the high end of our prior guidance and included approximately $18 million of strategic purchases of critical inventory items to get ahead of certain supply chain constraints of major components. As we pursue and realize the benefits of our strategy to develop a more capital-light asset profile and realize the benefits from our ongoing optimization program, coupled with the ending of our large reinvestment cycle, we anticipate our 2023 cash CapEx to be between $250 million and $300 million, with the majority of the spending in the first half of the year.

正如我們所討論的那樣，我們預計隨著我們進入 2023 年，對我們服務的需求將保持強勁。因此，我們認為我們 1 月份的表現是一個強大的基線，並希望在我們進入今年餘下的時候繼續保持這種勢頭。回到 2022 年的結果。我們 2022 年全年的現金資本支出為 3.2 億美元或略低於我們先前指導的中點，我們發生的資本支出為 3.65 億美元，略高於我們先前指導的上限，其中包括約 1800 萬美元的關鍵庫存項目戰略採購領先於主要組件的某些供應鏈限制。隨著我們追求並實現我們的戰略的好處，以開發更輕資本的資產配置並實現我們正在進行的優化計劃的好處，再加上我們的大型再投資週期的結束，我們預計我們 2023 年的現金資本支出將在 2.5 億美元之間和 3 億美元，其中大部分支出發生在今年上半年。

As of December 31, 2022, total cash was $89 million, and our borrowings under our ABL credit facility were $30 million. Total liquidity at the end of the fourth quarter of 2022 was $155 million, including cash and $66 million of available capacity under the company's ABL credit facility. We anticipate meaningful positive free cash flow in the second half of 2023, with some working capital investment and a front letter CapEx program in the near term. To reiterate, 2022 was a significant investment year in which we recapitalized our fleet while transitioning to over 35% natural gas burning equipment, completed the accretive transaction with Silvertip to accelerate free cash flow and earnings and enhanced adjusted EBITDA margins by over 930 basis points, all while protecting our liquidity. This was accomplished by maintaining a disciplined pricing and capital allocation framework. 2022 was a transitional year in executing our strategic plan, and we are excited for these opportunities to continue fueling our growth in 2023. And with that, I'll turn the call back over to Sam.

截至 2022 年 12 月 31 日，現金總額為 8900 萬美元，我們在 ABL 信貸額度下的借款為 3000 萬美元。 2022 年第四季度末的總流動資金為 1.55 億美元，包括現金和公司 ABL 信貸額度下的 6600 萬美元可用容量。我們預計 2023 年下半年將出現有意義的正自由現金流，短期內將進行一些營運資本投資和前信資本支出計劃。重申一下，2022 年是重要的投資年，在這一年中，我們對機隊進行了資本重組，同時過渡到超過 35% 的天然氣燃燒設備，完成了與 Silvertip 的增值交易，以加速自由現金流和收益，並將調整後的 EBITDA 利潤率提高了 930 多個基點，同時保護我們的流動性。這是通過維持嚴格的定價和資本分配框架來實現的。 2022 年是執行我們戰略計劃的過渡年，我們很高興有這些機會繼續推動我們在 2023 年的增長。因此，我將把電話轉回給 Sam。

Thank you, David. As we take stock of where we are today and look ahead to where we are going, I'm proud of the work that we have done to effect a significant transformation since 2019 and the onset of COVID. We have met significant obstacles and challenges head on over the last few years and have continued to compete at the highest level while positioning our company for the long run. We've recently taken significant steps in reducing our maintenance CapEx and increasing our capital and logistical efficiency across our portfolio of assets while ensuring we have less equipment and rotation at the maintenance shop and are therefore more efficient with our asset base. Now our future is stronger than ever, and we are confident in our ability to execute on strategic growth opportunities into this sustained multiyear up cycle. By the end of 2023, as I mentioned earlier, we will have transitioned 2/3 of our fleet to natural gas burning and electric capabilities, offering us a unique competitive advantage and one of the youngest next-generation fleets in the country. Moreover, we have a disciplined and intentional approach to capital deployment, which will allow us to strategically pursue M&A opportunities to advance our position as a leading completions focused service company. At the same time, with a nearly debt-free balance sheet, we are prepared for any broader industry or macroeconomic headwinds and volatility that may arise.

謝謝你，大衛。在我們評估今天的情況並展望我們的前進方向時，我為自 2019 年和 COVID 爆發以來我們為實現重大轉型所做的工作感到自豪。在過去的幾年裡，我們遇到了重大的障礙和挑戰，並繼續在最高水平上競爭，同時為我們的公司長期定位。我們最近採取了重大措施來減少我們的維護資本支出並提高我們資產組合的資本和物流效率，同時確保我們在維修車間擁有更少的設備和輪換，從而提高我們資產基礎的效率。現在我們的未來比以往任何時候都更加強大，我們對在這個持續的多年上升週期中執行戰略增長機會的能力充滿信心。正如我之前提到的，到 2023 年底，我們將 2/3 的機隊過渡到天然氣燃燒和電力能力，為我們提供獨特的競爭優勢，並成為該國最年輕的下一代機隊之一。此外，我們對資本部署採取有紀律和有意識的方法，這將使我們能夠戰略性地尋求併購機會，以提升我們作為領先的完井服務公司的地位。與此同時，憑藉幾乎無債務的資產負債表，我們為可能出現的任何更廣泛的行業或宏觀經濟逆風和波動做好了準備。

While we recognize that the space is consolidated and the E&Ps are not expected to meaningfully grow production in the near term, our business is now built for the long run and ProPetro will continue to be a major contributor to energy production for the world for the next several decades. Accordingly, we are optimistic that we will begin to see valuation improvement across the OFS space. I once again want to thank our ProPetro teammates for their tremendous performance and for giving the management team the confidence to move forward with executing on our strategy. We continue to build on our strong track record of safety and performance, and I'm proud of all that we have accomplished. Let's continue to keep up the great work and deliver for our customers. Lastly, we'd like to take a moment to talk about how honored we are here at ProPetro to be such a critical part of the American Energy System. I was born right right here in Midland, Texas, the energy capital of this side of the world. Even as a third-generation oilfield services operator and leader, it has taken me decades to fully appreciate the value of this area and the oil and gas industry brings to our country and to our globe.

雖然我們認識到空間已經整合併且 E&P 預計不會在短期內顯著增加產量，但我們的業務現在是為長期而建立的，ProPetro 將繼續成為下一個世界能源生產的主要貢獻者幾十年。因此，我們樂觀地認為，我們將開始看到整個 OFS 領域的估值改善。我要再次感謝我們的 ProPetro 團隊成員的出色表現，感謝他們讓管理團隊有信心繼續執行我們的戰略。我們將繼續鞏固我們在安全和績效方面的良好記錄，我為我們所取得的成就感到自豪。讓我們繼續保持出色的工作並為我們的客戶提供服務。最後，我們想花點時間談談我們在 ProPetro 是多麼榮幸能夠成為美國能源系統的重要組成部分。我就出生在得克薩斯州米德蘭，這裡是世界這邊的能源之都。即使作為第三代油田服務運營商和領導者，我也花了幾十年時間才充分認識到這一領域以及石油和天然氣行業為我們國家和全球帶來的價值。

The Permian Basin community, which includes ProPetro, works hard, usually in harsh environments without complaint. Our safe clean production here in the Permian, exports a dependable commodity that can be consumed locally or broad. These fossil fuels power our world, in our homes, our businesses and in our schools and hospitals. One would be hard-pressed to find any item in our possession that isn't made from or tied directly to an oil and gas product. In the last 15-plus year history of our company, we have not appreciated our far-reaching impact enough. Today, we do. Life experiences have helped us gain perspective as we find ourselves growing families, leading teams and investing in our communities, all of which sit on a foundation of affordable, clean and reliable energy. As our respect continues to grow for the work that happens in our sector and the energy it produces, we feel embolden to help others understand just how vital the Permian Basin and our oil and gas production are to the overall economic health and global security of the United States of America, the greatest Republic in the history of the world.

包括 ProPetro 在內的二疊紀盆地社區努力工作，通常在惡劣的環境中毫無怨言。我們在二疊紀的安全清潔生產出口了一種可以在當地或廣泛消費的可靠商品。這些化石燃料為我們的世界、我們的家庭、我們的企業以及我們的學校和醫院提供動力。我們很難找到任何不是由石油和天然氣產品製成或與石油和天然氣產品直接相關的物品。在我們公司過去 15 多年的歷史中，我們沒有充分認識到我們的深遠影響。今天，我們做到了。生活經歷幫助我們獲得遠見，因為我們發現自己正在組建家庭、領導團隊並投資於我們的社區，所有這些都建立在負擔得起、清潔和可靠的能源基礎之上。隨著我們對我們部門所做的工作及其產生的能源的尊重不斷增加，我們有勇氣幫助其他人了解二疊紀盆地和我們的石油和天然氣生產對整體經濟健康和全球安全的重要性。美利堅合眾國，世界歷史上最偉大的共和國。

We'd like to encourage others in our community and the oil and gas value chain, big and small, to join us in the promotion of what our industry makes possible for everyday life around the world. Fossil fuels have been a cornerstone in the advancement of humanity. And thanks to our industry's long track record of innovation, they will continue to be indispensable. It's because of our crucial contributions that we should be proud internally and externally to educate and advocate for our industry. With that, I'd like to open the line up for questions. Operator?

我們希望鼓勵我們社區和石油和天然氣價值鏈中的其他人，無論大小，加入我們的行列，共同促進我們的行業為世界各地的日常生活帶來的可能性。化石燃料一直是人類進步的基石。並且由於我們行業的長期創新記錄，它們將繼續不可或缺。正是因為我們做出了重要貢獻，我們才應該為教育和倡導我們的行業而在內部和外部感到自豪。有了這個，我想打開問題隊列。操作員？

(Operator Instructions) And the first question will be from Derek Podhaizer from Barclays.

（操作員說明）第一個問題將來自巴克萊銀行的 Derek Podhaizer。

So the biggest unknown space in the industry today is how many fleets could be released from the gas basins. We've seen a few E&Ps announced their plans to reduce activity. But could you expand on the undersupply of the oil basins, specifically the Permian, one of your peers described oil basins being 20 to 25 fleet undersupplied. I mean what's your view on this number? Do you agree? What indicators do you look at to calculate the undersupplied frac market? Do you have a Permian-specific number that you're thinking about? Just more color around this undersupplied argument would be helpful.

所以現在這個行業最大的未知空間就是氣田能釋放出多少船隊。我們已經看到一些勘探與生產公司宣布了他們減少活動的計劃。但是你能否擴大油盆地供應不足的問題，特別是二疊紀盆地，你的一位同行描述了 20 到 25 個船隊供應不足的油盆地。我的意思是你對這個數字有什麼看法？你同意？你看什麼指標來計算供不應求的壓裂市場？您是否有正在考慮的特定於二疊紀的數字？圍繞這個供不應求的論點添加更多顏色會有所幫助。

Sure. And great question, Derek. It's obviously very topical right now with what's happening with natural gas prices. As we stated here earlier today, we do believe that just generally, the world is under supply of the product that our subsector helps produce overall, that definitely ripples into things like the frac market, of which we think is still relatively undersupplied right here in the Permian Basin. That said, there's more than one market at play, we believe, here today, and that has a lot to do with this equipment transition that you've heard us and some of our peers talk so much about. That's why it's highly important to have the right tools for the job of today, i.e., things like gas burning equipment, DGB and electric equipment. Given our transition very heavily into those types of equipment, that remains at the highest demand. That's why I think we have not seen any activity weakness in our own offering nor have we really seen in that offering systematically in the Permian. And to make a comment on the 20 to 25 fleet number, I'm not going to necessarily endorse that number but we do think that the system is still structurally undersupplied for the right tools that customers are demanding most highly.

當然。好問題，德里克。現在天然氣價格的變化顯然非常熱門。正如我們今天早些時候在這裡所說的那樣，我們確實相信，總的來說，世界上我們的子行業幫助生產的產品總體上供應不足，這肯定會波及到壓裂市場之類的東西，我們認為這裡的壓裂市場仍然相對供應不足二疊紀盆地就是說，我們相信，今天在這裡，有不止一個市場在起作用，這與您聽到我們和我們的一些同行談論很多的這種設備轉型有很大關係。這就是為什麼擁有適合當今工作的正確工具非常重要，例如燃氣設備、DGB 和電氣設備。鑑於我們非常重視這些類型的設備，這仍然是最高需求。這就是為什麼我認為我們在我們自己的產品中沒有看到任何活動弱點，也沒有在 Permian 中系統地看到該產品。並就 20 到 25 個機隊數量發表評論，我不一定會認可這個數字，但我們確實認為該系統在結構上仍然供應不足，無法滿足客戶要求最高的正確工具。

Okay. Great. Appreciate that. Second question, I want to talk about fleet attrition. Just thinking about you guys recapitalizing your fleet, you have the 6 and 7 Tier 4 DGB coming out. You have the 4 E fleets coming out. I know we didn't get a specific timing, but you guided the full year fleet utilization to be 15% to 16%. Can you give us an update on, are any of these fleets going towards replacing your legacy Tier 2 diesel equipment as they age out? Just to be helpful because I think that's another big topic that investors are trying to wrestle with how much attrition is going to leave the market? How many fleets will exit as you bring in these new fleets and just trying to reconcile your guide to the number of fleets that are coming in.

好的。偉大的。感謝。第二個問題，我想談談艦隊損耗。想想你們重組你們的艦隊，你們有 6 和 7 層 4 DGB 出來了。你有 4 個 E 艦隊出來。我知道我們沒有得到具體時間，但你指導全年機隊利用率為 15% 到 16%。您能否向我們提供最新信息，這些車隊中是否有任何一個會在您的舊式 Tier 2 柴油設備老化時更換它們？只是為了提供幫助，因為我認為這是投資者試圖解決的另一個重要話題，即有多少人會離開市場？當您引入這些新艦隊時，將有多少艦隊退出，只是試圖使您的指南與即將到來的艦隊數量相一致。

ure. Great question. This is Sam again. I think attrition is a topic that is not understood enough. I know we have talked about it quite a bit in prior quarters as have many of our peers, yet we're not sure that the investment community and the E&P community currently understands how hard this conventional equipment is working today and how much it shortens the operating life of certain assets. That said, if you look at what we've done just in the last 18 months with our DGB program, basically, all of that has been replacement of existing horsepower. And that will continue to be the case with DGB. So none of that has been net additive. Now as e-fleets come on, it will be a bit more nuanced, but you'll look for almost all of that to be a replacement as well. I think in some of our materials, we guided full year activity to 15 to 16 fleets here, we are running 15 today. So we'll add 2 e-fleets probably in the third quarter of this year, and you'll look for that to be mostly replacement as well. Obviously, we can't tell you exactly what market opportunities look like. In the back half of this year, today, we have a pretty good feeling under certain commodity prices, what that might look like. So we'll remain nimble there. But really, this is a replacement, refurbishment transition story. This is not a growth -- fleet growth story.

是的。很好的問題。這又是山姆。我認為減員是一個還不夠了解的話題。我知道我們和許多同行一樣在前幾個季度討論了很多，但我們不確定投資界和 E&P 界目前是否了解這種傳統設備今天的工作強度以及它縮短了多少時間某些資產的使用壽命。也就是說，如果你看看我們在過去 18 個月裡用我們的 DGB 計劃所做的事情，基本上，所有這些都已經取代了現有的馬力。 DGB 將繼續如此。所以這些都不是淨附加的。現在，隨著電子艦隊的出現，它會更加細微，但您也會尋找幾乎所有這些東西來替代。我認為在我們的一些材料中，我們將全年活動引導到這裡的 15 到 16 個機隊，我們今天運行 15 個。所以我們可能會在今年第三季度增加 2 個電子艦隊，你會發現它也主要是替代品。顯然，我們無法準確告訴您市場機會是什麼樣的。今年下半年，今天，我們對某些商品價格有很好的感覺，可能會是什麼樣子。所以我們會在那裡保持靈活。但實際上，這是一個更換、翻新的過渡故事。這不是增長——機隊增長的故事。

And the next question is from Stephen Gengaro from Stifel.

下一個問題來自 Stifel 的 Stephen Gengaro。

Just to clarify, the 4 e-fleets 2 in the third quarter and then the other 2 when?

只是澄清一下，第三季度的 4 個電子艦隊中有 2 個，然後是其他 2 個什麼時候？

Probably right at the end of the year, beginning of '24.

可能就在今年年底，24 年初。

Okay. The January commentary you gave and kind of building on the full year, it suggests that the consensus, which is about $500 million of EBITDA this year is a pretty reasonable number based on January and what you see in the market. Given -- if that's a reasonable starting point and given your CapEx should -- you mentioned free cash flow in the second half of the year. Should you be free cash flow for the full year as well? It seems that way, but just wanted to get your thoughts around that.

好的。你給出的 1 月份評論和全年的基礎表明，根據 1 月份和你在市場上看到的情況，今年約 5 億美元的 EBITDA 是一個相當合理的數字。鑑於——如果這是一個合理的起點並且你的資本支出應該——你提到了下半年的自由現金流。你是否也應該擁有全年的自由現金流？似乎是這樣，但只是想了解一下您的想法。

Yes, Stephen, this is David. We certainly believe that we will definitely make a big turnaround from last year, which was a capitalization -- recapitalization of our fleet year to be significantly free cash flow positive in 2023.

是的，史蒂芬，這是大衛。我們當然相信，與去年相比，我們肯定會實現重大轉變，這是一次資本化——我們機隊年度的資本重組，到 2023 年將實現顯著的正自由現金流。

Okay. Great. That's what I assume. I just wanted to check. And then just the final thing for me is when you think about the current leading-edge pricing dynamic, can you just give us an update on kind of what you're seeing in the market conversation with customers? And obviously, things still appear very tight but where does pricing stand? And how have the pricing discussions gone recently?

好的。偉大的。這就是我的假設。我只是想檢查一下。然後對我來說最後一件事是，當你考慮當前的前沿定價動態時，你能否向我們介紹一下你在與客戶的市場對話中看到的那種情況的最新情況？顯然，事情似乎仍然很緊張，但定價在哪裡？最近的定價討論進展如何？

Sure. Great question. This is Sam again. We alluded to in our materials and in our prepared remarks that we did see a pretty significant pricing uplift in January. We've been working hard on the pricing front, really for probably 5 or 6 quarters now. I've been really pleased with the work that our team has done to continue to march forward to pricing that helps us more sustainably support our business. That said, going forward, we're not -- we're trying to be realistic about what the pricing opportunities are and will there be pricing opportunities? Sure. There may be. Will they be at the speed, the magnitude that you've seen us and our peers over the last year? Likely no. But that comment I just made recent -- is mainly directed at what we're seeing with recent commodity prices, mainly what's happening in the gas market. So we remain conservative. That said, I think pricing of our fleet today is in a relatively healthy spot that can bolster some really meaningful return on free cash flow for us in the future if we continue to execute in the field and in the shop, the way we are today and improve on that. So I feel really good about where we sit from a pricing perspective. We'll continue to be very tactical to push where we can and to collaborate with our customers where we can.

當然。很好的問題。這又是山姆。我們在我們的材料和準備好的評論中提到，我們確實在 1 月份看到了相當顯著的價格上漲。我們一直在定價方面努力工作，現在可能已經有 5 或 6 個季度了。我對我們的團隊為繼續推進定價以幫助我們更可持續地支持我們的業務所做的工作感到非常滿意。也就是說，展望未來，我們不是——我們正試圖對定價機會是什麼以及是否會有定價機會保持現實？當然。可能有。他們會以你在去年看到我們和我們的同行的速度，規模嗎？可能沒有。但我最近剛剛發表的評論——主要是針對我們最近看到的大宗商品價格，主要是天然氣市場正在發生的事情。所以我們保持保守。也就是說，我認為我們機隊今天的定價處於一個相對健康的位置，如果我們繼續像今天這樣在現場和商店中執行，可以在未來為我們增加一些真正有意義的自由現金流回報並對此進行改進。因此，從定價的角度來看，我對我們所處的位置感到非常滿意。我們將繼續非常有策略地推動我們力所能及的地方，並儘可能地與我們的客戶合作。

Lastly, there's also a lot of accretion to our numbers and just getting better at what we do. and almost creating economic uplift by just being more efficient internally and being a lot more intentional about how we spend our money and how we operate our assets. So there's -- that's the first pillar of our strategy, as we've outlined here in the last few quarters as optimization efforts. And we've got a lot of good stuff going on there that we're really excited about that should aid us in creating some more value without having to look outside for things like pricing.

最後，我們的數字也有很多增加，並且我們所做的事情變得更好。並且幾乎通過提高內部效率並更加有意識地關注我們如何花錢和如何運營我們的資產來創造經濟增長。因此，這是我們戰略的第一個支柱，正如我們在過去幾個季度中概述的那樣，作為優化工作。我們在那裡有很多好東西，我們真的很興奮，這應該有助於我們創造更多的價值，而不必從外面尋找定價等東西。

Great. Just one quick one for Dave. David, with Silvertip, is the D&A for the first quarter on in like $35 million to $36 million now. Is that right?

偉大的。給戴夫的只是一個快速的。 David 和 Silvertip 是第一季度的 D&A，現在大約在 3500 萬到 3600 萬美元之間。是對的嗎？

No. It's -- we gave the guidance for January at 8 or the preliminary results at the D&A -- are you talking about D&A?

不，這是——我們在 8 日給出了 1 月份的指導或 D&A 的初步結果——你是在談論 D&A 嗎？

  Yes.

是的。

Yes, let me pull that up real quick, but it's -- yes, we'll get back to you on that.

是的，讓我很快把它拉起來，但是 - 是的，我們會就此回复你。

(Operator Instructions) The next question is from Waqar Syed from ATB Capital Markets.

（操作員說明）下一個問題來自 ATB Capital Markets 的 Waqar Syed。

Sam, this -- the fleet movement that was taking on a customer shift, is that largely be done? And the reason I'm asking is there's been some volatility in earnings and some investor concerns about earnings not coming in, in line with expectations. And so is that availability now over as we look forward? Or we still have maybe some noise through May?

山姆，這 - 正在進行客戶轉移的車隊運動，這在很大程度上已經完成了嗎？我問的原因是收益出現了一些波動，一些投資者擔心收益沒有達到預期。那麼，我們期待的可用性現在結束了嗎？或者整個五月我們可能還有一些噪音？

Yes. Waqar, great question. And this has been a very important part of our story this year, probably different from how from ProPetro has operated maybe in the prior 10 years leading up to, say, early 2022. We've probably repositioned over half of our fleet from a customer standpoint in the last year, maybe a little bit more than a year. Inside of one basin, I don't know if it can be overstated how much of the feed that is and to do it without losing the operational excellence that we kind of pride ourselves on. Yes, I would say for the most part, other than one fleet here and there, I would say that that massive repositioning repositioning effort is basically over. A big part of the tail end of that repositioning was the rolling off of part of our contract with Pioneer. And we think we have those fleets that have come off some of those contracts in really, really good places with blue-chip customers that are operating very efficiently at value-added pricing to ProPetro. So it should be much more steady from a customer standpoint as it pertains to this year. I can't say that without saying how big of a deal it is, what we've accomplished over the last year.

是的。 Waqar，好問題。這是我們今年故事中非常重要的一部分，可能與 ProPetro 在過去 10 年（比如 2022 年初）的運營方式不同。我們可能已經從客戶那裡重新定位了超過一半的車隊站在去年的角度來看，也許一年多一點。在一個盆地內，我不知道是否可以誇大飼料的數量，並且在不失去我們引以為豪的卓越運營的情況下做到這一點。是的，我想說的是，除了到處都是一支艦隊之外，我想說的是，大規模的重新定位工作基本上已經結束了。重新定位的尾部很大一部分是我們與 Pioneer 的部分合同的取消。我們認為我們的車隊已經在非常非常好的地方與藍籌客戶簽訂了一些合同，這些客戶以 ProPetro 的增值定價非常有效地運營。因此，從客戶的角度來看，今年應該更加穩定。我不能不說這有多大，我們在過去一年取得的成就。

 Okay. And then in terms of your total active hydraulic horsepower with this 15 feet now, could you give us a number? And then as you've guided to 15 to 16 fleets for the year, is the fleet mix changing, whether you're going to be doing more simul-frac or less simul-frac with that 15 to 16 fleet guidance from '14 in January?

好的。然後就你現在 15 英尺的總主動液壓馬力而言，你能給我們一個數字嗎？然後當你今年指導了 15 到 16 個船隊時，船隊組合是否發生了變化，無論你是要進行更多的同步壓裂還是更少的同步壓裂，從 14 年開始的 15 到 16 個船隊指導一月？

I'll take your last question first. It's basically the same amount of simul frac, 1 to 2 fleets on the simul frac side. I don't know for where -- if we are where we can make a comment on what active total horsepower is, we still quote the, what is it, 1.3 number in all of our materials. But we're technically under today's operating circumstances, operating basically full utilization today.

我先回答你的最後一個問題。它基本上是相同數量的同步壓裂，在同步壓裂側有 1 到 2 個車隊。我不知道在哪裡 - 如果我們可以對活躍總馬力發表評論，我們仍然引用我們所有材料中的 1.3 數字。但從技術上講，我們在今天的運營情況下，今天基本上是滿負荷運營。

 Okay. That's great. And then could you comment on the effective tax rate for the year and what the cash taxes would be?

好的。那太棒了。然後你能評論一下今年的有效稅率和現金稅是多少嗎？

Yes. This is David. We're not going to have any cash taxes. We have in excess of $400 million of net operating losses remaining. Just to answer the prior question from Stephen, D&A, we're expecting will be in the 33% to 35% range per quarter 2.

是的。這是大衛。我們不會徵收任何現金稅。我們還有超過 4 億美元的淨運營虧損。只是為了回答 Stephen、D&A 的先前問題，我們預計第二季度將在 33% 到 35% 的範圍內。

David, one other question. What is the total shares outstanding at the end of the year?

大衛，還有一個問題。年末發行在外的股份總數是多少？

$115 million for the quarter was the fully delivers $116 million.

本季度的 1.15 億美元是完全交付的 1.16 億美元。

And the next question is from Arun Jayaram from JPMorgan.

下一個問題來自摩根大通的 Arun Jayaram。

Sam, I was wondering if you could give us perhaps the time line for when do you expect the e-fleets to be working in the field as well as the timing of that -- of the next -- I think it's the sixth Tier 4 DGB unit?

山姆，我想知道你是否可以給我們一個時間表，說明你預計電子艦隊何時會在現場工作，以及下一次的時間安排——我認為這是第六個第 4 層級DGB單位？

Sure. We're putting that sixth DGB unit to work today right now. We've got the seventh coming in April, May time frame, May, June, possibly. And then you're looking at July, August for e-fleets 1 and 2, that should come in in pretty close the session in July and August.

當然。我們現在正在讓第六個 DGB 單元投入使用。我們有可能在 4 月、5 月、5 月、6 月進行第七次。然後你會看到 7 月、8 月的電子艦隊 1 和 2，它們應該在 7 月和 8 月的會議中非常接近。

Okay. And then for 3 and 4?

好的。然後是 3 和 4？

Into this year, beginning of next year.

進入今年，明年開始。

Yes. I would expect activity for those to really show up in Q1.

是的。我希望這些活動真正出現在第一季度。

Yes, revenue generating underway in Q1.

是的，第一季度正在產生收入。

Okay. And just my follow-up. I know you guys are leasing the e-fleets. Can you give us a sense of how much of the capital -- is some of this going to be accounted for in your CapEx? And can you give us a sense of... Go ahead.

好的。只是我的後續行動。我知道你們正在租賃電子車隊。你能告訴我們有多少資本——其中一些會被計入你的資本支出嗎？你能給我們一種感覺……繼續吧。

Yes, there will be about 15% that will be outfitting customer supplied equipment. And so we'll be doing that this year. That's part of our CapEx guide plan.

是的，將有大約 15% 用於裝配客戶提供的設備。所以我們今年會這樣做。這是我們資本支出指導計劃的一部分。

Okay. And can you give us some goalposts around what the capital lease obligation would be when you finish all 4, ballpark?

好的。當你完成所有 4 個球場時，你能給我們一些關於資本租賃義務的目標嗎？

Well, you're representing close to $180 million of total lease obligation. The minimum leases, that's over a 3-year period once those are initiated or wants is delivered and active. But the minimum lease obligations are materially less than that. Hopefully, that gives you a little bit of guidance.

好吧，您代表了近 1.8 億美元的總租賃義務。最低租約，一旦開始或需要交付並激活，即超過 3 年。但最低租賃義務遠低於此。希望這能給你一些指導。

Fair enough. And just to understand, are you saying on top of that, there's 50% that's allocated in your CapEx?

很公平。只是為了理解，你是說最重要的是，你的資本支出中分配了 50%？

15.

15.

$15 million. Okay. Thank you for clarifying. I know that didn't feel right to me. I appreciate it. That's super helpful for our model.

1500 萬美元。好的。謝謝你的澄清。我知道這對我來說感覺不對。我很感激。這對我們的模型非常有幫助。

 And the next question is a follow-up question from Stephen Gengaro from Stifel.

下一個問題是 Stifel 的 Stephen Gengaro 提出的後續問題。

 Arun actually covered most of this, but just quickly, the CapEx on a per fleet basis from a maintenance perspective, can you just sort of -- can you update us on where that stands and how that may evolve as a larger percentage of your fleet is newer and electric?

A Arun 實際上涵蓋了大部分內容，但很快，從維護的角度來看，每個機隊的資本支出，你能不能——你能告訴我們它的現狀以及它如何在你的更大比例中演變嗎？ fleet 是更新的電動的？

Sure, Stephen, this is David. We've been guiding up a little bit on that to $9 million to $10 million per fleet on an annualized basis. I think that based on our optimization efforts that Sam mentioned earlier in his comments, we're hoping to see that trend down, particularly as the age of our fleet is well over 50% of it, less than 2 years old. So as we begin to weave in the electric fleets, we're going to be -- we're not going to be doing the type of maintenance that you would expect on an internal combustion engine that we've had in the past. So we expect to see between 30% and 40% improvement in not only the capital but also the maintenance costs associated with those assets. So I think over time, as the fleet profile begins to transition more to electric, we'll see those things play out, but it's going to take some time.

當然，史蒂芬，這是大衛。我們一直在指導這一點，以年化為基礎，將每個機隊提高到 900 萬至 1000 萬美元。我認為，根據 Sam 之前在評論中提到的我們的優化工作，我們希望看到這種趨勢下降，特別是當我們機隊的年齡遠遠超過其中的 50%，不到 2 年。因此，當我們開始編織電動車隊時，我們將 - 我們不會像過去那樣對內燃機進行您期望的維護類型。因此，我們預計不僅資本而且與這些資產相關的維護成本都會減少 30% 到 40%。所以我認為隨著時間的推移，隨著機隊配置開始更多地過渡到電動，我們會看到這些事情發揮作用，但這需要一些時間。

Yes. Stephen, this is Sam. Just to pile on top of what David said there. This electric e-fleet story is very significant for us and I think for others as well that are pursuing this type of equipment. The cost of ownership over a longer period of time is just significantly lower lower maintenance CapEx and assets that just are going to last significantly longer and they're going to need less attention, less maintenance and fewer people to operate as well. Time will tell and you will be able to see much more easily after we get those fleets in the field, how differentiated that is. But we're -- we remain really excited about that and do believe that that's probably the long-term future of our business here at ProPetro probably as the frac sector as a whole, more and more equipment like electric equipment. And I guess, lastly, when you hear us use the word like use words like industrialize, to me, that word kind of takes on a twofold meaning that's kind of a nod to what's happening in the Permian Basin in general, this very densely operated resource. But secondly, it's a nod to the tools and the equipment that we use on a day in and day out basis. Unfortunately, it's probably taken our subsector a little bit too long to migrate to the right tools for the job of today. We've seen completion intensity out kind of outrun the tools that we use to do our job. So I'm -- as a young leader in this business, I'm really confident about where we're going, ProPetro and as a sector from an equipment standpoint that I think we are starting to bring in technologies and tools that are going to help us industrialize and create more value and more consistent value.

是的。斯蒂芬，這是山姆。只是為了補充 David 在那裡所說的話。這個電動車隊的故事對我們來說非常重要，我認為對其他正在追求這種設備的人來說也是如此。較長時間的擁有成本只是顯著降低，較低的維護資本支出和資產將持續更長的時間，它們將需要更少的關注、更少的維護和更少的操作人員。時間會證明一切，在我們將這些艦隊部署到現場後，您將能夠更容易地看到它的差異化程度。但我們 - 我們仍然對此感到非常興奮，並且確實相信這可能是我們在 ProPetro 的業務的長期未來，可能是整個壓裂行業，越來越多的設備，如電氣設備。我想，最後，當你聽到我們使用像工業化這樣的詞時，對我來說，這個詞具有雙重含義，這是對二疊紀盆地總體上正在發生的事情的一種認可，這個非常密集的操作資源。但其次，這是對我們日復一日使用的工具和設備的認可。不幸的是，我們的子部門可能花了太長時間才遷移到適合當今工作的正確工具。我們已經看到完成強度超過了我們用來完成工作的工具。所以我——作為這個行業的年輕領導者，我對我們的發展方向非常有信心，ProPetro，從設備的角度來看，我認為我們正在開始引入正在發展的技術和工具。幫助我們產業化，創造更多的價值和更一致的價值。

And the next question is a follow-up from Derek Podhaizer from Barclays.

下一個問題是來自巴克萊銀行的 Derek Podhaizer 的後續問題。

I wanted to stick on that industrialization approach. You mentioned in your opening comments, Sam, about that type of approach to generate increased cash flow. Can you give us some examples of what you're talking about exactly? What new strategies are you looking at to unlock increased cash flows to the business?

我想堅持那種工業化的方法。山姆，你在開場白中提到了這種增加現金流的方法。你能給我們舉一些例子來說明你在說什麼嗎？您正在尋找哪些新策略來釋放增加的業務現金流？

Sure. First thing that comes to mind is just I think how we've operated traditionally is more of your prototypical growth company for the past, say, decade, which I think you would find is very commonplace for an oilfield services company like ProPetro over the last couple of cycles, it's experienced a significant amount of growth. So through that growth, we've created scale, but we've yet to really operate at scale for a significant period of time. And I think that's what we are working on doing today, not just operating as a means to grow and create value by adding the additional -- the marginal set of equipment team, but to create value through how we operate. So being more intentional about standard operating procedures around the more high dollar components and capital-intensive components and spreading kind of that operating culture across our business, those operating cultures might have been kind of fragmented in the past. So when I say large components, it's not guys like you, Derek, that's things like engines, transmissions, power and fluid ends, right, the main modular components of our asset base today. So it's creating consistent first-in-class practices around pieces of equipment where we can make our maintenance spend lower and more predictable over time. That's what our team is is working really hard on right now. Look, it's easy for me to sit here and say that and describe those things. It's really hard to do and execute on. And that's why we're so intentionally trying to trying to approach that in -- with a bit of a different mindset than we have in the past. That should all accrete to the bottom line over time.

當然。首先想到的是，我認為我們傳統上的運營方式更多是過去十年的典型成長型公司，我認為你會發現過去像 ProPetro 這樣的油田服務公司非常普遍幾個週期，它經歷了顯著的增長。因此，通過這種增長，我們創造了規模，但在相當長的一段時間內，我們還沒有真正實現規模化運營。我認為這就是我們今天正在努力做的事情，不僅僅是通過增加額外的設備團隊來增長和創造價值，而是通過我們的運營方式創造價值。因此，更加關注圍繞更高美元組件和資本密集型組件的標準操作程序，並在我們的業務中傳播這種運營文化，這些運營文化在過去可能有點支離破碎。因此，當我說大型組件時，不是像你這樣的人，德里克，而是發動機、變速器、動力和液力端，對，我們今天資產基礎的主要模塊化組件。因此，它正在圍繞設備部件創建一致的一流實踐，使我們的維護支出隨著時間的推移變得更低和更可預測。這就是我們的團隊現在正在努力的方向。看，我很容易坐在這裡這麼說並描述那些事情。這真的很難做到和執行。這就是為什麼我們如此有意地嘗試以一種與過去不同的心態來接近它。隨著時間的推移，這應該都會增加到底線。

 Got it. Appreciate the comments there. I wanted to touch on shareholder returns. You've obviously made significant process in recapitalizing the fleet. You have your CapEx coming down year-over-year. You talked about positive free cash flow generation for the full year, more back half weighted. You don't really have any leverage at all. Your peers are announcing free cash flow program -- sorry, shareholder returns program as a percentage of free cash flow, spot between buybacks and dividends. Just wanted to get an update on your thinking of shareholder returns when we may see a program initiated here? What are you looking for? Just some more color on this would be helpful.

明白了。欣賞那裡的評論。我想談談股東回報。你顯然在重組車隊方面取得了重大進展。您的資本支出逐年下降。你談到了全年正的自由現金流產生，更多的是後半加權。你根本沒有任何影響力。您的同行正在宣布自由現金流計劃——抱歉，股東回報計劃佔自由現金流的百分比，介於回購和股息之間。只是想了解您對股東回報的最新看法，當我們可能會在這裡啟動一項計劃時？你要買什麼？在這上面多加一些顏色會很有幫助。

Yes. Great question. And just to kind of set the table on that topic, the goal here at ProPetro is to build a very competitive firm that can distribute value. That is the goal. If you look at how we've allocated capital over the past 18 months, it's been a major equipment transition story for us. And that has taken priority over everything. And we believe that, that was the right thing to do to protect the long-term competitiveness for our company and to put our team in situations to succeed. We're winding down somewhat that transition story, and we're using things like a leasing program with our e-fleet offering to try and lighten the capital load so that we can do 2 things. We can look at tools that can help us distribute that value through things like dividends and buybacks and that we can also create a playing field where we can be opportunistic on the M&A front like we did with Silvertip. So I would say that our capital allocation focus is beginning to pivot somewhat away from the equipment transition story and towards the shareholder returns and strategic transactions territory.

是的。很好的問題。 ProPetro 的目標是建立一個非常有競爭力的可以分配價值的公司，只是為了在這個話題上設定一個表。這就是目標。如果你看看過去 18 個月我們如何分配資本，這對我們來說是一個重大的設備轉型故事。這比一切都優先。我們相信，為了保護我們公司的長期競爭力並讓我們的團隊處於成功的境地，這是正確的做法。我們正在逐漸結束這個過渡故事，我們正在使用諸如租賃計劃之類的東西和我們的電子車隊產品來嘗試減輕資本負擔，這樣我們就可以做兩件事。我們可以研究可以幫助我們通過股息和回購等方式分配價值的工具，我們還可以創造一個競爭環境，讓我們可以像對 Silvertip 所做的那樣在併購方面投機取巧。所以我想說我們的資本配置重點開始從設備轉型故事轉向股東回報和戰略交易領域。

All right. And then one more for me. Just say hypothetically, you see potential delays of the e-fleet deployment, maybe some of the first 2 get pushed in the fourth quarter, the next 2 get pushed into 2024. What would you expect would cause that? Would that be supply chain components being delayed like we've heard from some of your peers or potentially the power generation side. Obviously, a lot of e-fleets are coming in, the mix of grid turbine national gas resets. There's not that many third-or-party solutions out there. Just would like to hear your thoughts around if we were to see some of those deliveries slip would it be more in the supply chain component side? Or would it just be lining up the right power solution to go out with that e-fleet?

好的。然後再給我一個。只是假設地說，你看到電子艦隊部署的潛在延遲，也許前兩個中的一些被推到第四季度，接下來的兩個被推到 2024 年。你認為會導致什麼？那會是供應鏈組件被延遲，就像我們從你們的一些同行那裡聽到的那樣，或者可能是發電方面。顯然，大量的電子車隊正在湧入，電網渦輪國家燃氣的組合正在重置。那裡沒有那麼多第三方解決方案。只是想听聽您的想法，如果我們看到其中一些交付下滑，會不會更多地發生在供應鏈組件方面？或者它只是排列正確的電源解決方案以與該電子艦隊一起出去？

 Yes. I don't know if I want to speculate on that, Derek. We feel pretty good about our value chain partners that are helping us execute on this. I'll just make one brief comment. E-fleet power is tight today and will remain tight. Those are definitely some long lead items. I'm not sure I'll say much more than that.

是的。我不知道我是否想對此進行推測，Derek。我們對幫助我們執行此操作的價值鏈合作夥伴感到非常滿意。我只做一個簡短的評論。電子艦隊的力量今天很緊張，而且會繼續緊張。這些絕對是一些長期領先的項目。我不確定我會說更多。

Yes. And just to add to that, we did announce our most recent electric contract for the fleet starting in Q3, and we have secured power for that. So we're set for our first deployment.

是的。除此之外，我們確實宣布了從第三季度開始的最新車隊電力合同，我們已經為此獲得了電力。所以我們準備好進行首次部署。

Ladies and gentlemen, this concludes our question-and-answer session. I would like to turn the conference back over to Sam Sledge for any closing remarks.

女士們，先生們，我們的問答環節到此結束。我想將會議轉回給 Sam Sledge 作閉幕詞。

Sure. Thanks, and thanks, everybody, for joining us for today's call. We're really excited here at ProPetro about the prospects of 2023 and the future in general. We like where we sit, and we're going to be excited to come back and continue to report on the company's success. Thanks, again, for joining us, and we'll talk to you soon.

當然。謝謝，也謝謝大家參加今天的電話會議。我們在 ProPetro 對 2023 年的前景和總體未來感到非常興奮。我們喜歡我們坐的地方，我們很高興回來繼續報告公司的成功。再次感謝您加入我們，我們會盡快與您聯繫。

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

會議現已結束。感謝您參加今天的演講。您現在可以斷開連接。