RPC Inc (RES) 2024 Q1 法說會逐字稿

Good morning, and thank you for joining us for RPC Inc. first-quarter 2024 conference call. Today's call will be hosted by Ben Palmer, President and CEO, and Mike Schmidt, Chief Financial Officer. (Operator Instructions) And I would like to advise everyone that this conference call is being recorded.

早安，感謝您參加 RPC Inc. 2024 年第一季電話會議。今天的電話會議將由總裁兼執行長 Ben Palmer 和財務長 Mike Schmidt 主持。（操作員說明）我想提醒大家，這次電話會議正在錄音。

I will now turn the call over to Mr. Schmidt.

我現在會把電話轉給施密特先生。

Thank you, and good morning. Before we begin, I want to remind you that some of the statements that will be made on this call could be forward-looking in nature and reflect a number of known and unknown risks. Please refer to our press release issued today along with our 2023 10-K and other public filings that outline those risks, all of which can be found on RPC's website at www.rpc.net.

謝謝你，早安。在我們開始之前，我想提醒您，本次電話會議中將做出的一些陳述本質上可能具有前瞻性，並反映了許多已知和未知的風險。請參閱我們今天發布的新聞稿以及概述這些風險的 2023 年 10-K 和其他公開文件，所有這些文件都可以在 RPC 網站 www.rpc.net 上找到。

In today's earnings release and conference call, we'll be referring to several non-GAAP measures of operating performance and liquidity. We believe these non-GAAP measures allow us to compare performance consistently over various periods. Our press release issued today and our website contain reconciliations of these non-GAAP measures to the most directly comparable GAAP measures.

在今天的收益發布和電話會議中，我們將提及幾種非公認會計原則的營運績效和流動性指標。我們相信，這些非公認會計準則衡量標準使我們能夠一致地比較不同時期的表現。我們今天發布的新聞稿和我們的網站包含這些非公認會計準則衡量標準與最直接可比較的公認會計準則衡量標準的調節表。

So I'll now turn the call over to our President and CEO, Ben Palmer.

現在我將把電話轉給我們的總裁兼執行長本·帕爾默。

Thanks, Mike, and thank you for joining our call this morning. So before we get started, I'd like to take a moment to share some unfortunate and sad news, our longtime Head of Investor Relations and Vice President of Corporate Services. Jim Landers passed away a few weeks ago after a long and courageous battle with cancer. I've worked closely with Jim here at RPC for more than 20 years, and he was a tremendous contributor to the company in so many ways. I'm sure those of you listening today were lucky enough to work with him over the years know he was also a great friend and colleague he will truly the miss for all of us.

謝謝麥克，也感謝您今天早上加入我們的電話會議。因此，在我們開始之前，我想花點時間與我們長期擔任的投資者關係主管兼企業服務副總裁分享一些不幸和悲傷的消息。吉姆·蘭德斯在與癌症進行了長期而勇敢的鬥爭後於幾週前去世。我在 RPC 與 Jim 密切合作了 20 多年，他在很多方面都為公司做出了巨大貢獻。我確信今天聽眾中的那些人很幸運能夠與他共事多年，知道他也是一位很好的朋友和同事，他將真正成為我們所有人的懷念。

Shifting to the core, as you can see from our earnings release, the first quarter was a soft start to the year in what feels like a muted oilfield services market. So we did not give explicit financial guidance for the first quarter. We did expect more stable EBITDA. Our activity level in pressure pumping was down modestly on a sequential basis compared to the fourth quarter of 2023, contributing to our overall results, finishing below our original expectations. Unlike some recent quarters where we have seen more volatility and pressure pumping compared to other service lines.

轉向核心，正如您從我們的財報中看到的那樣，在感覺油田服務市場低迷的情況下，第一季是今年的軟啟動。所以我們沒有給出第一季明確的財務指引。我們確實預計 EBITDA 會更加穩定。與 2023 年第四季相比，我們的壓力幫浦活動水準略有下降，這對我們的整體業績做出了貢獻，最終低於我們最初的預期。與最近幾季不同的是，與其他服務線相比，我們看到了更多的波動和壓力。

Revenue performance was generally consistent throughout the business. Our total revenues declined about 4%, with pressure pumping down 5% and other service lines in aggregate down 3%. The frac market remains highly competitive. We have seen some fleets moving into the Permian from gassy plays, adding capacity to an already crowded base. In addition, ongoing operating efficiency gains have created additional power capacity regarding pricing, motivation to keep assets utilized and absorb fixed cost has certainly impacted industry pricing compared to year ago levels. We are working vigorously to control costs to be as competitive as possible in this environment.

整個業務的收入表現大致上是一致的。我們的總收入下降了約 4%，其中壓力泵收入下降了 5%，其他服務線整體收入下降了 3%。壓裂市場仍然競爭激烈。我們已經看到一些船隊從天然氣田進入二疊紀，為已經擁擠的基地增加了容量。此外，持續的營運效率提高創造了額外的定價能力，保持資產利用和吸收固定成本的動機肯定會影響行業定價與去年同期相比。我們正在積極努力控製成本，以便在這種環境下盡可能具有競爭力。

We're also balancing our interest in putting our assets to work with our preference to not burn them out on low return projects. Our Tier 4 DGB fleets are highly sought after and generally serve semi dedicated semi beta kit dedicated customers regarding our new Tier 4 dual-fuel fleet. We eagerly await bringing those assets into service around midyear and expect to have solid utilization for this new fleet for the remainder of 2024, we highlight that our operational performance on existing Tier 4 DGB assets has been quite strong. For example, our gas substitution efficiency has sustained an average of above or about 65% over the past few quarters.

我們也正在平衡我們對資產投入使用的興趣與我們不希望在低迴報項目上耗盡資產的偏好。我們的 Tier 4 DGB 機隊備受追捧，通常為我們新的 Tier 4 雙燃料機隊的半專用半測試套件專用客戶提供服務。我們熱切地等待這些資產在年中左右投入使用，並預計在2024 年剩餘時間裡，這支新機隊將得到穩定的利用，我們強調，我們現有的第4 級DGB 資產的營運績效相當強勁。例如，過去幾季我們的天然氣替代效率平均維持在 65% 以上或約 65%。

We believe this efficiency metric is among the best in the pumping industry and demonstrates our ability to effectively operate these high-quality assets and drive value for our customers. As we have said before, we intend to continue to invest in fleet upgrades, Derik, to reiterate, when we placed the new Tier four DGB fleet and service in a few months, we will be pulling a Tier 2 diesel fleet out of service. So we do not add to industry capacity, likely repurposing those assets in other parts of our business or keeping them as spare parts and equipment. We continue to monitor the market for electric fleets.

我們相信這項效率指標是泵送業界中最好的，並證明了我們有效運作這些高品質資產並為客戶創造價值的能力。正如我們之前所說，我們打算繼續投資於機隊升級，Derik，重申，當我們在幾個月內部署新的 Tier 4 DGB 機隊並投入使用時，我們將停止使用 Tier 2 柴油機隊。因此，我們不會增加行業產能，可能會將這些資產重新用於我們業務的其他部分，或將其保留為備件和設備。我們繼續關注電動車隊市場。

While we do see the benefits of this evolving technology, we also see some potential shifts around the ideal long-term technical and power source solutions. We will continue to invest in our fleet with a strong focus on upgrading to Tier 4 dual fuel.

雖然我們確實看到了這種不斷發展的技術的好處，但我們也看到了圍繞理想的長期技術和電源解決方案的一些潛在轉變。我們將繼續投資我們的機隊，專注於升級到 Tier 4 雙燃料。

In our view dual dual-fuel assets have a long demand runway, and we will focus our efforts and capital in this direction until we feel the risk return profile on investments in electric fleets is further in our favor, barring how we see the next few quarters playing out. Visibility remains limited, but we are certainly encouraged by the recent increase in oil prices, WTI reaching above $80 a barrel recently.

我們認為，雙雙燃料資產有很長的需求跑道，我們將把我們的努力和資本集中在這個方向，直到我們覺得電動車隊投資的風險回報狀況進一步對我們有利，除非我們如何看待接下來的幾年宿舍正在播放。能見度仍然有限​​，但近期油價上漲無疑令我們感到鼓舞，WTI 最近觸及每桶 80 美元以上。

The rally is in part attributed to geopolitical events, which can be, of course, unpredictable and reverse quickly, but also supported by a strong U.S. economy. If this level is sustained. We are cautiously optimistic that many of the smaller property and fees that make up the spot intimidate dedicated pressure pumping market will steadily increase activity while the larger E&P stick to, but stick to budgeted expenditures and exercise capital discipline.

此次上漲在一定程度上歸因於地緣政治事件，當然，地緣政治事件可能是不可預測的並且會迅速逆轉，但也受到強勁的美國經濟的支撐。如果這個水平持續下去。我們謹慎樂觀地認為，構成現貨專用壓力泵市場的許多較小的財產和費用將穩步增加活動，而較大的勘探和生產公司則堅持預算支出並實行資本紀律。

Mike will now discuss the quarter's financial results.

麥克現在將討論本季的財務表現。

Thanks, Ben. I'll now discuss the first-quarter results with sequential comparisons to the fourth quarter of 2023, revenues decreased 4% to $378 million, driven by a combination of moderately lower industry activity and some competitive pricing concessions.

謝謝，本。我現在將討論第一季的業績，並與 2023 年第四季度進行連續比較，在行業活動適度下降和一些有競爭力的價格優惠的共同推動下，收入下降 4% 至 3.78 億美元。

Breaking down our operating segments, technical services revenues decreased 4%, driven by pressure pumping our largest service line. Within that segment. Technical Services represented 94% of our total first quarter revenues. So support services were down 9% and represented 6% of our total quarter revenues. Following is a breakdown of our first quarter revenues for our top five service lines Pressure Pumping 46.6%, downhole tools, 24.8%, coiled tubing, 8.8%, cementing 7.3% rental tools, 4.2%. So together these top five service lines accounted for 92% of our total revenues.

從我們的營運部門來看，技術服務收入下降了 4%，這是由於我們最大的服務線壓力泵造成的。在該段內。技術服務占我們第一季總收入的 94%。因此，支援服務下降了 9%，占我們季度總收入的 6%。以下是我們第一季前五名服務線的收入明細：壓力泵 46.6%，井下工具 24.8%，連續油管 8.8%，固井 7.3%，租賃工具 4.2%。因此，這五個服務線合計占我們總收入的 92%。

Cost of revenues, excluding depreciation and amortization during the first quarter decreased by 2.8 million to 276.6 million from 279.4 million or a 1% decrease despite lower sales. Total employment expenses were flat and maintenance and repairs costs increased slightly compared to the fourth quarter, contributing the margin compression.

儘管銷售額下降，但第一季的收入成本（不包括折舊和攤提）從 2.794 億美元下降了 280 萬美元至 2.766 億美元，下降了 1%。與第四季相比，總僱用費用持平，維護和維修成本略有增加，導致利潤率壓縮。

On another note, materials and supplies were a higher percentage of our sales mix which also impacted our margins. SG&A expenses were $40.1 million, up slightly from $38.1 million. The increase in SG&A was due to total employment costs. It was in part due to the timing of certain accruals. Diluted EPS was $0.13 in the first quarter, down from $0.19 in the fourth quarter.

另一方面，材料和供應品在我們的銷售組合中所佔的比例較高，這也影響了我們的利潤率。 SG&A 支出為 4,010 萬美元，略高於 3,810 萬美元。SG&A 的增加是由於總僱用成本。部分原因是某些應計費用的時間安排。第一季稀釋後每股收益為 0.13 美元，低於第四季的 0.19 美元。

There were no non-GAAP adjustments to these figures, adjusted EPS or sorry, adjusted EBITDA, it was 63.1 million, down from $79.5 million with adjusted EBITDA margin decreasing 340 basis points to 16.7%. Again, there are no adjustments made to these measures for unusual items. Operating cash flow was $56.6 million and after CapEx of $52.8 million. Free cash flow was 3.8 million. We noted that second quarter will have a heavy spend as we make final payments and accept delivery of our new Tier 4 DGB fleet, while our guided CapEx range of $200 million to $250 million in 2024 remains unchanged.

這些數字沒有進行非 GAAP 調整，調整後每股收益，或抱歉，調整後 EBITDA，為 6,310 萬美元，低於 7,950 萬美元，調整後 EBITDA 利潤率下降 340 個基點至 16.7%。同樣，對於不尋常的項目，這些措施沒有進行調整。營運現金流為 5,660 萬美元，扣除資本支出後為 5,280 萬美元。自由現金流為380萬。我們注意到，第二季將有大量支出，因為我們將支付最終付款並接受新的 Tier 4 DGB 機隊的交付，而我們 2024 年 2 億至 2.5 億美元的指導資本支出範圍保持不變。

We may manage the lower end of that range depending on market conditions in the second half of the year. During the quarter, we spent nearly $10 million on share repurchases, of which $7.5 million was under our buyback program, and we paid $8.6 million in dividends. Thus, we returned more than $16 million of capital to our shareholders between our cash dividend returns and our buyback program.

我們可能會根據下半年的市場狀況來管理該範圍的下限。本季度，我們花了近 1000 萬美元用於股票回購，其中 750 萬美元用於我們的回購計劃，我們支付了 860 萬美元的股息。因此，在現金股利回報和回購計畫之間，我們向股東返還了超過 1,600 萬美元的資本。

We continue to maintain a debt-free balance sheet with a strong cash position of $212 million at quarter end. We remain proud of our healthy financial position, a function of our ongoing discipline and conservative approach. We're also pleased to share that subsequent to the end of the quarter, we received a $52 million tax refund, including interest from the IRS this week related to past tax years.

我們繼續維持無負債資產負債表，季末擁有 2.12 億美元的強勁現金部位。我們仍然對我們健康的財務狀況感到自豪，這是我們持續的紀律和保守方法的結果。我們也很高興地告訴大家，在本季末之後，我們收到了 5,200 萬美元的退稅，其中包括本周美國國稅局 (IRS) 提供的與過去納稅年度相關的利息。

I'll now turn it back over to Ben for some closing remarks.

現在我將把它轉回本，讓他做一些結束語。

Thanks, Mike. So looking ahead, we're current, we are encouraged by oil price trends and optimistic for an uptick in rig count. This should translate into an improved activity, which would hopefully be accompanied by disciplined pumping capacity management in the marketplace. We also see potential for increased activity by smaller E&P's as a fallout from the wave of M&A and larger M&A space E&P space as mergers and acquisitions close, we see possible non-core asset divestitures with the acreage moving into the hands of our customers.

謝謝，麥克。因此，展望未來，我們對當前的油價趨勢感到鼓舞，並對鑽機數量的增加感到樂觀。這應該轉化為改進的活動，並有望伴隨著市場上嚴格的抽水能力管理。我們也認為，隨著併購浪潮的影響，小型勘探與生產活動可能會增加，而隨著併購結束，大型勘探與生產領域的併購活動可能會增加，我們認為可能會剝離非核心資產，並將面積轉移到客戶手中。

We would be well positioned to capitalize on this trend, given our deep customer relationships where we are strong, not only with spot and simulated dedicated customers and pressure pumping, but our other service lines have excellent relationships with both small and large E&P we continue to be presented with opportunities to use our strong balance sheet to grow the business.

鑑於我們強大的深厚客戶關係，我們將處於有利地位，可以充分利用這一趨勢，不僅與現貨和模擬專用客戶和壓力泵，而且我們的其他服務線與小型和大型勘探與生產公司都建立了良好的關係，我們將繼續有機會利用我們強大的資產負債表來發展業務。

We are confident that in time we will find attractive acquisitions to increase our scale bolster our service lines, broaden our customer relationships and, of course, provide a solid return on capital. As we said last quarter, we are patient buyers and believe a potential silver lining to current industry conditions will be the availability of attractive acquisition targets.

我們相信，隨著時間的推移，我們將找到有吸引力的收購來擴大我們的規模，加強我們的服務線，擴大我們的客戶關係，當然，也能提供可觀的資本回報。正如我們上季度所說，我們是耐心的買家，並相信當前行業狀況的潛在一線希望將是有吸引力的收購目標的可用性。

In the meantime, our balance sheet is quite strong for our $0.04 per share quarterly cash dividend and opportunistic share buybacks. If over time we maintain an elevated cash position, we would likely assess options to return additional capital to investors at an accelerated pace.

同時，我們的資產負債表相當強勁，每股 0.04 美元的季度現金股息和機會性股票回購。如果隨著時間的推移，我們保持較高的現金頭寸，我們可能會評估加速向投資者返還額外資本的選擇。

In closing, I want to reiterate reiterate that in and often volatile market, our discipline remains consistent with a focus on financial stability and long-term shareholder returns. And thank you to all our employees to work tirelessly to deliver high levels of service and value to our customers.

最後，我想重申，在經常波動的市場中，我們的紀律仍然與對金融穩定和長期股東回報的關注保持一致。感謝我們所有員工的不懈努力，為我們的客戶提供高水準的服務和價值。

Thanks for joining us this morning. And at this time, we're happy to address any questions.

感謝您今天早上加入我們。此時，我們很樂意回答任何問題。

(Operator Instructions) Your first question comes from Stephen Gengaro, Stifel.

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

Thanks. Good morning, everybody. So a couple for me. I think just first, can you talk about the just the overall pressure pumping market so I'm thinking about the competitive landscape. I mean, you talked about competitive pricing environment and how you think about is it holding assets back or marketing assets at current price levels and also how do you think that evolves over time as far as the pricing structure?

謝謝。大家早安。所以對我來說是一對。我想首先，您能談談整個壓力幫浦市場嗎？我的意思是，您談到了競爭性定價環境，以及您如何看待它是按當前價格水平保留資產還是行銷資產，以及您認為定價結構隨著時間的推移會如何演變？

Stephen, this has been a good question on that. We were going to exercise a lot of discipline have exercised this on the call. We have clearly compared to a year ago, there has been some degradation and pricing on that's clearly affected our results. But we talk about it often, we do have some floors that we've established. We're not bidding everything at those floors and today, but we're going to remain disciplined and we're not going to burn out of our back burn out our equipment.

史蒂芬，這是一個很好的問題。我們本來要執行很多紀律，但我們在電話會議上就執行了這一點。與一年前相比，我們明顯看到了一些退化和定價，這顯然影響了我們的表現。但我們經常談論它，我們確實已經建立了一些樓層。今天，我們不會對這些樓層的所有東西進行投標，但我們將保持紀律，我們不會精疲力盡，燒壞我們的設備。

There's been a bit of volatility here recently. There have been some people dropping down trying to undertake clinical to take advantage of the spot market in the syndicated market. So we're seeing some of that taking place. I don't know if that's an indication of some others having some pressure on their businesses, but it's nothing that with our team is very agile. It's very in tune with market dissipating and a lot of opportunities.

最近這裡出現了一些波動。已經有一些人嘗試進行臨床，以利用聯合市場的現貨市場。所以我們看到其中一些正在發生。我不知道這是否表明其他一些人的業務面臨一些壓力，但這並不意味著我們的團隊非常敏捷。這與市場的消散和大量的機會非常吻合。

And as I said, we're going to remain disciplined. Certainly, I think the market to get to that to get better. We're going to obviously have to see increased activity. We're going to see some of that capacity absorbed to where the service companies can have a little bit more control over the pricing demand rising to the point where we can realize a bit more stability. We're working really, really hard with our customers. We're our own worst enemy with how efficient we're being our efficiency measures.

正如我所說，我們將保持紀律。當然，我認為市場會變得更好。顯然，我們將不得不看到活動的增加。我們將看到其中一些產能被吸收到服務公司可以對定價需求有更多控制權的地方，從而達到我們可以實現更多穩定性的程度。我們正在非常非常努力地與客戶合作。我們最大的敵人就是我們自己的效率衡量標準。

When we look back over the last 12 months, our efficiency is up considerably with was our fleet. And unfortunately, again, in this environment, it's not necessarily translating immediately or directly into better better financial results. But I think that is a kind of I think that's consistent with everybody. We're just in a win and a not unusual.

當我們回顧過去 12 個月時，我們的機隊效率大幅提高。不幸的是，在這種環境下，它不一定會立即或直接轉化為更好的財務表現。但我認為這與每個人都是一致的。我們只是取得了勝利，而且並不罕見。

I mean, this is a normal market, right? It's a highly competitive market and in and we will we'll work through it. We're prepared to take more significant steps if we need to. But right now we feel that we are we talked about pressure pumping revenue was down slightly more than some of the other service lines, but the margin change or indication was similar.

我的意思是，這是一個正常的市場，對嗎？這是一個競爭激烈的市場，我們將努力克服它。如果需要的話，我們準備好採取更重要的步驟。但現在我們覺得我們談論的壓力泵收入比其他一些服務線略有下降，但利潤變化或跡像是相似的。

I mean, pressure pumping is not the it's not a contributor to any decline in or five outsized contributor to changes in our operating performance. So everybody on a relative basis, you were talking about a fairly small change in revenues. And so there's there's some volatility in their pressure pumping and pressure pumping group again, just fine, as you would expected with a with SenTiva single mid single digit revenue decline. So we're not displeased with or I think we're more more disappointed with the environment that it wasn't a little bit stronger coming out of the coming out of Q4.

我的意思是，壓力泵不是造成我們經營業績變化的任何下降或五個巨大因素的因素。因此，相對而言，每個人都在談論收入的相當小的變化。因此，他們的壓力泵和壓力泵組再次出現了一些波動，這很好，正如您所預期的，SenTiva 的收入會出現個中個位數的下降。因此，我們並不不滿意，或者我認為我們對環境更失望，因為第四季度的情況並沒有變得更強勁。

Thanks. And I apologize because I jumped on a little late, but when just looking at others' commentary from an activity level perspective, it feels like is it maybe modest growth in 2Q sequentially just coming off of kind of early or early year inefficiencies in white space are you seeing the same thing into the second quarter, you any any thoughts on that?

謝謝。我很抱歉，因為我有點晚了，但是當從活動水平的角度來看其他人的評論時，感覺第二季度的適度增長可能只是擺脫了年初或年初空白領域的低效率你在第二季度看到同樣的情況嗎？

And it's again, it's highly volatile. We're I wouldn't say we're seeing any strong indication up or down. It's sort of bumping along at this point.

再說一遍，它的波動性很大。我不會說我們看到任何強烈的上漲或下跌跡象。此時此刻，它有點顛簸。

Okay, great. Thank you for the details, sir.

好的，太好了。謝謝您提供的詳細信息，先生。

Your next question comes from Don Crist with Johnson Rice. Please go ahead.

你的下一個問題來自唐·克里斯特和約翰遜·賴斯。請繼續。

Morning, gentlemen. I wanted to ask about about your non Pressure Pumping activities. Obviously, they held up a little bit better than pressure pumping during the quarter. But are you seeing as far as competitive market in, say, coil or downhole tools as you are in pressure pumping, I know pressure pumping is significantly up competitive in the Permian, but, you know, obviously your other services are in other basins? Just curious about demand there.

早安，先生們。我想詢問有關您的非壓力泵活動的情況。顯然，他們在本季的表現比壓力泵好一些。但是，您是否認為盤管或井下工具的市場競爭與壓力泵業一樣，我知道壓力泵業在二疊紀的競爭力顯著提高，但是，您知道，顯然您的其他服務在其他盆地？只是好奇那裡的需求。

Yes, Dan, I'll let me make a comment then I'll have Mike take it. I just want to reiterate that pressure pumping that again did not contribute outsized to the decline in EBITDA. It was fairly consistent across the board. Mike can speak to downhole tools and some of the other service lines.

是的，丹，我會讓我發表評論，然後讓麥克接受。我只是想重申，壓力泵壓並沒有對 EBITDA 的下降產生過大的影響。整體情況相當一致。麥克可以與井下工具和其他一些服務線路交談。

Yes, I mean they were down 3% on average, our other non pressure-pumping loans. So the customer mix is a little different in those for us as well. So they were kind of more in line with the overall industry that we're also, as you know, spread out in the various basins where our pressure pumping is really on a more heavily in the Permian. So we have that diversity, which helps those a little bit as well. So overall, the impact wasn't as strong in those. But yes, it's been indicated they were down slightly also just really sitting back and looking at the performance for the quarter.

是的，我的意思是我們的其他非壓力泵貸款平均下降​​了 3%。因此，我們的客戶組合也略有不同。因此，它們更符合整個產業，正如您所知，我們也分佈在各個盆地，在這些盆地中，我們的壓力泵在二疊紀確實更重要。所以我們擁有這種多樣性，這對這些也有幫助。總的來說，這些影響並不那麼強烈。但是，是的，有跡象表明他們的業績略有下降，只是真正坐下來看看本季度的表現。

Again, we're talking about mid single digit changes in revenues. And so that can yes, the numbers and the margins can move around quite a bit with that small of a revenue change, but downhole tools a continuing to do well. We've come out with some new technology that we're really excited about and working now to strategically determine the pricing for that particular new tool that we think again creates a lot of efficiencies for our customers so it's sort of a it's a mixed Brett blessing. So we're looking at our pricing strategy there and look forward to some of those results coming through in the quarter. So yes. And again, not outsized changes or differences between the various service lines.

我們再次討論的是收入的中個位數變化。因此，是的，隨著收入的微小變化，數字和利潤可能會發生相當大的變化，但井下工具將繼續表現良好。我們已經推出了一些新技術，我們對此感到非常興奮，現在正在策略性地確定該特定新工具的定價，我們再次認為這些新工具為我們的客戶創造了很多效率，所以它是一個混合的布雷特祝福。因此，我們正在研究我們的定價策略，並期待本季取得一些結果。所以是的。再說一次，不同服務線之間沒有太大的變化或差異。

I'll add to our CapEx spend is spread across all our service lines too. So where we are making some investments in our other than just the new DGB fleet in our other service lines also. So we expect those to pay off for us as the year goes on and in future years.

我要補充的是，我們的資本支出也分佈在我們所有的服務領域。因此，除了新的 DGB 機隊之外，我們還在其他服務線路上進行了一些投資。因此，我們預計隨著這一年和未來幾年的發展，這些將為我們帶來回報。

I appreciate that color. And can you remind us on the coil side? Are you pretty much still in new drill outs or are you doing some kind of workover work on oil wells, et cetera. And I'm just trying to drive, are you seeing any kind of pickup in coil, not necessarily a neutral outcome?

我很欣賞那種顏色。您能在線圈方面提醒我們嗎？您是否仍在進行新的鑽探工作，或者是否正在對油井等進行某種修井工作。我只是想開車，你是否看到線圈中有任何類型的拾音器，不一定是中性結果？

We know drill-out is certainly the largest component of that business revenues in that business. We do have a special project which is starting up very soon using some of our some of our other specialty tools with coil tubing to do some P&A work. It happens to be out in California. You wouldn't believe how difficult it is to start to do business in California or maybe you would, but you have a we're looking forward to that. That could be a nice opportunity to expand and diversify coil tubing for us and add some nice increment incremental revenue. But otherwise overall, and it's a very appropriate question. There's not a significant amount of other coil tubing work out there out there at this point in time.

我們知道，鑽取無疑是該業務收入的最大組成部分。我們確實有一個特殊項目，很快就會啟動，使用我們的一些其他專業工具和盤管來完成一些 P&A 工作。它恰好在加利福尼亞州出現。您不會相信在加州開展業務有多麼困難，也許您會相信，但我們對此充滿期待。這對我們來說可能是一個很好的機會來擴大盤管並使之多樣化，並增加一些不錯的增量收入。但總的來說，這是一個非常合適的問題。目前還沒有大量其他盤管工作。

Your next question comes from Sean Mitchell with Daniel Energy. Please go ahead.

您的下一個問題來自 Daniel Energy 的 Sean Mitchell。請繼續。

Hi, guys. Thanks for taking the question. I'm just wondering, as we look at, you alluded to the kind of M&A in the E&P space, and I think you're right, that activity should pick up as some of these assets get consummated by these spokes and you get some spinners for some of these private smaller guys, but one of the smaller guys saying are the private guys saying because it seems like crude above 80 service costs coming down and continuing to come down. What are they saying is like the key driver here is that they don't have acreage to drill or is it because the economics seem to make a ton of sense today at 80 above 80?

嗨，大家好。感謝您提出問題。我只是想知道，正如我們所看到的，您提到了勘探與生產領域的併購類型，我認為您是對的，隨著其中一些資產通過這些輻條得到完善，這種活動應該會增加，並且您會得到一些私人小公司的紡紗廠，但其中一個小公司說的是私人公司說的，因為看起來粗略的80以上的服務成本正在下降，並且繼續下降。他們所說的關鍵驅動因素是他們沒有可鑽探的面積，還是因為今天 80 高於 80 的經濟狀況似乎很有意義？

Great question. Sean be honest with you. I can't tell you that I personally have talked to a lot of these guys, but just on an overall basis, the same sort of thing with the price of oil where it is, it's kind of a mixed blessing right. I mean everybody showed how disciplined and that's correct, hopefully that that will result in some more stability. Maybe the cycles won't be quite as severe. Maybe we're not seeing the uptick, but maybe we're not going to see a whole lot of significant downward pressure from here.

很好的問題。肖恩對你說實話。我不能告訴你，我個人曾與這些人中的許多人交談過，但就總體而言，與石油價格的情況相同，這是一種喜憂參半的權利。我的意思是每個人都表現出了紀律性，這是正確的，希望這會帶來更多的穩定性。也許週期不會那麼嚴重。也許我們不會看到上漲，但也許我們不會看到這裡出現很大的下行壓力。

Hopefully, if every buyer in shares sufficient discipline on the Oilfield Services side, it should translate into a better, a better operating environment. So I don't have an answer for you, but it but it's a great question. And, you know, I think a lot of people are talking about 2025 and gas prices and all that are base starting to look forward to 25 and hopefully, hopefully things maybe get a little bit better in the rest of this year. And we look forward to a little bit stronger 2025, but we'll just have to see how some of these new companies shake out are they they're still working on.

希望如果每個買家在油田服務方面都遵守足夠的紀律，那麼它應該轉化為更好的營運環境。所以我沒有答案給你，但這是一個很好的問題。而且，你知道，我認為很多人都在談論 2025 年和汽油價格，所有這些都是基於開始期待 25 年，希望今年剩下的時間裡情況可能會好一點。我們期待 2025 年會更加強勁，但我們只需要看看這些新公司中的一些如何擺脫困境，他們是否仍在努力。

Many of the hasn't haven't taken place yet. So a lot of those management teams probably aren't getting ahead of themselves, right? They got first close and integrate some of those transactions before they get to work and start making some phone calls and sending out RFPs.

其中許多還沒有發生。所以很多管理團隊可能沒有超前，對吧？他們首先完成並整合了其中一些交易，然後開始工作並開始撥打一些電話並發送 RFP。

Yes, thanks for that. And then maybe one more just as you think about the consolidation E&P space, I know you guys are looking for opportunities in the server space. Are things picking up there in terms of consolidation opportunities and kind of where do you see the best opportunities today for you guys?

是的，謝謝。然後也許還有一個，就像你考慮整合勘探與生產領域一樣，我知道你們正在伺服器領域尋找機會。就整合機會而言，情況是否有所改善？

Yes, I can start. This is Mike. We're always looking and we're getting a lot of opportunities coming across our desk. It's just finding the right one at the right price and on, yes, the right fit, we think we are we will be successful in finding have some good opportunities that make sense. But we're definitely actively looking at add on opportunities and there are a lot of them out there.

是的，我可以開始了。這是麥克。我們一直在尋找，我們的辦公桌上有很多機會。只是以合適的價格找到合適的人，是的，合適的人，我們認為我們將成功地找到一些有意義的好機會。但我們肯定正在積極尋找附加機會，而且有很多機會。

So I don't know, Ben, if you want to add here you have now a lot lot have been presented.

所以我不知道，本，如果你想在這裡補充的話，你現在已經提出了很多東西。

We've had discussions with several, I think, seller expectations on valuation and are still still haven't done yet lined up, but we're going to remain disciplined, right? We don't like to do transactions just to do transactions on the upfront. And so but I think especially I think if you look at our our results. And, again, not what we wanted it to be, but I think we'll see that others. Others in the space are the results are not where they want them to be either.

我認為，我們已經與幾個賣家就估值預期進行了討論，但尚未確定，但我們將保持紀律，對嗎？我們不喜歡僅為了預先進行交易而進行交易。所以，但我認為特別是如果你看看我們的結果。再說一次，這不是我們想要的，但我想我們會看到其他人。該領域的其他人的結果也沒有達到他們想要的結果。

So I think and the privates are seeing the same thing with some of our discussions with some of the privates private wholesale service companies. And I think they're feeling the pressure. And I think that environment will get better. That is for finding some people who maybe will be a little more accommodative or free some overhead. We have whatever you want to take and maybe those will come our way.

因此，我認為，在我們與一些私人批發服務公司的討論中，私人也看到了同樣的事情。我認為他們感受到了壓力。我認為環境會變得更好。這是為了找到一些可能會更寬容一點或節省一些管理費用的人。我們有你想要的任何東西，也許這些都會到來。

But we're focused on just some of our other some of the phone, some of our service lines where we have nice market share pressure pumping, we're open to an opportunity, some of the smaller pressure pumping companies. Sometimes you have the condition of the equipment and things like that can be can be an issue. But so we're seeing multiple multiple multiple opportunities. You can imagine people would love to merge their company and our balance sheet. So yes, you have to be yes, we have to be mined of that as well.

但我們只專注於我們的其他一些電話，我們的一些服務線，我們在壓力泵方面擁有良好的市場份額，我們對機會持開放態度，一些較小的壓力泵公司。有時您的設備狀況可能會成為問題。但我們看到了多個機會。你可以想像人們願意將他們的公司和我們的資產負債表合併。所以是的，你必須是肯定的，我們也必須意識到這一點。

Stephen Gengaro, Stifel.

史蒂芬·根加羅，斯蒂菲爾。

Thanks. I just wanted to follow up the and I don't think you said it earlier in the call would when you look at the active fleet you have now I think you have 10 horizontal fleets in total. Can you just give us kind of where the fleet count was during 1Q and where you expect to be during 2Q? Like were they active and just underutilized? Or has anything been kind of taken off the market we short term?

謝謝。我只是想跟進，我不認為您在電話會議之前說過，當您查看現在擁有的活躍機隊時，我認為您總共有 10 個水平機隊。您能否告訴我們第一季的機隊數量以及您預計第二季的機隊數量？例如它們是否活躍但未被充分利用？或是短期內有東西從市場上撤下來了嗎？

Yes. So they were all active during the quarter, but that said, just the utilization wasn't exactly where we want it. We typically don't give the exact kind of utilization percentage, but obviously our newer Tier fours were utilized a lot more than some of the other fleets, but we're still fully staffed or not not as staffed as we were this time last year.

是的。因此，它們在本季度都很活躍，但話雖如此，但利用率並不完全符合我們的預期。我們通常不會給出確切的利用率，但顯然我們較新的四級飛機的利用率比其他一些機隊要高得多，但我們仍然配備充足的人員，或者沒有去年這個時候的人員配備。

But on a note that if the works there we can get them, get them going. So we haven't taken any down in the current environment, have no plans to sell any aside at the moment. And so that's I mean one that will make new Tier four comes on board. As Ben said, we're not going to add capacity. We'll take a Tier two down when that one comes on board later this quarter.

但要注意的是，如果那裡可行，我們就能讓它們運作起來。因此，在目前的環境下，我們還沒有拆下任何東西，目前也沒有計劃出售任何東西。所以我的意思是，這將使新的第四級加入。正如本所說，我們不會增加容量。當第二級產品在本季稍後加入時，我們將取消第二級產品。

Okay, thank you. And then one other, if we think about, you know, the bigger players, right? They talk all about these long-term arrangements and for lack of a better word some level of contracted assets with some big E & P's. When you think about your fleet, your strategy, how how does that impact you? I think it seems to be that there's been consolidation centers by more bigger players, but does that give you kind of an advantage when when things ultimately turn with the smaller players and available assets, like how should we think about the short and long-term implications of kind of consolidation and a lot of players going after sort of the term contracts and how that impacts you?

好的謝謝。然後是另一個，如果我們考慮一下，你知道，更大的參與者，對吧？他們談論的都是這些長期安排，以及與一些大型勘探生產公司簽訂的某種程度的合約資產，但缺乏更好的詞彙來形容。當您考慮您的機隊、您的策略時，這對您有何影響？我認為似乎更多大型企業已經建立了整合中心，但是當事情最終隨著小型企業和可用資產而轉變時，這是否會給您帶來某種優勢，例如我們應該如何考慮短期和長期某種整合的影響以及許多追求某種定期合約的參與者以及這對您有何影響？

Yes. We certainly hope so. I mean, obviously, we wouldn't see that we haven't seen that, yes, right now in this quarter. But our hope is as things if things stay where they are that some of the smaller plays and privates will get more active in the second half of the year and we'll benefit then. But that's certainly our belief.

是的。我們當然希望如此。我的意思是，顯然，我們不會看到我們還沒有看到這一點，是的，現在在本季。但我們希望，如果情況維持現狀，一些規模較小的公司和私人公司將在今年下半年變得更加活躍，屆時我們將受益。但這確實是我們的信念。

No, that's exactly right. We yes, I mean, our results given our customer base and where we are might be a little more volatile than some others, but certainly that gives us opportunity to the upside, right? So there may be a little bit more downside, but there's opportunities to the downside. We definitely think that's the case.

不，完全正確。是的，我的意思是，考慮到我們的客戶群和我們所處的位置，我們的結果可能比其他一些公司更不穩定，但這肯定給我們帶來了上漲的機會，對嗎？因此，可能會有更多的負面影響，但也存在負面的機會。我們肯定認為是這樣的。

Chuck Minervino with Susquehanna. Please go ahead.

查克·米勒維諾與薩斯奎哈納。請繼續。

Hi, good morning, Northern's. I was just wondering if you could provide a little bit more color on kind of the pricing situation in frac right now on you talked about some competitive pricing. Do you think it's kind of bottoming here? Or is it still kind of trying to find its bottom. Just wanted to trying to get a sense where are we on that? And also kind of tied to that, you mentioned some some frac fleets coming in from gas basins. Has that stopped or do you expect that will continue as well?

嗨，早上好，北航。我只是想知道您現在是否可以就壓裂的定價情況提供更多信息，因為您談到了一些有競爭力的定價。你認為這裡已經觸底了嗎？或者說它仍在試圖尋找底部。只是想了解我們在這方面的進展如何？與此相關的是，您提到了一些來自天然氣盆地的壓裂船隊。這種情況已經停止了嗎？

On docket, it's all in flux. I mean, we are hopeful that that we're reaching a trough or a bottom. As I indicated, we've got our stated price of which we won't work below. We're not bidding everything at that particular price level. So so we'll say at some point, we're not winning anything at the level at which we're bidding, and we'll have to take more more dramatic steps. But we're hopeful that the industry will be rational and appropriately rational and it will and we are monitoring it very closely.

從記錄上看，一切都在不斷變化。我的意思是，我們希望我們正在達到低谷或底部。正如我所指出的，我們已經得到了我們的規定價格，低於該價格我們不會工作。我們不會以特定的價格水平對所有產品進行投標。因此，我們會在某個時候說，我們在競標的水平上沒有贏得任何東西，我們將不得不採取更戲劇性的步驟。但我們希望這個行業能夠理性且適當理性，而且我們正在密切監視它。

And I can tell you that competition in all of the industries we compete in all of those services is incredibly competitive. Our customers do an incredible job of exploiting the fact that they have lots of choices. And And yes, if our industry can show some discipline that we have which are more disciplined, less competitive. This is capitalism. So we understand that.

我可以告訴你，我們在所有這些服務領域競爭的所有行業的競爭都非常激烈。我們的客戶在充分利用他們擁有多種選擇這一事實方面做出了令人難以置信的工作。是的，如果我們的行業能夠表現出我們所擁有的一些紀律，這些紀律更加紀律嚴明，競爭力較低。這就是資本主義。所以我們理解這一點。

And so we're hopeful we're reaching that point. It may help with some of the smaller players who are at the very low end of the market that they're probably bidding more aggressively, but they're going to be wearing out their equipment and perhaps don't have the capital to be able to invest back in the fleet, like others do like us. So we're trying to be very mindful.

因此，我們希望能夠達到這一點。這可能對一些處於市場極低端的小型企業有所幫助，他們可能會更積極地出價，但他們的設備將會磨損，而且可能沒有足夠的資本像我們這樣的其他人一樣，重新投資於機隊。所以我們努力保持謹慎。

We don't want to burn our equipment up. We want to we want to be in a position, obviously to generate a nice return on our investment. So we're not going to we're not going to dip down to below that. We're hoping things will shake out and know they'll be some improvement off of obviously a lot a lot of focus on the the fleet market, a lot of investment going in at that, that upper end of the market have to believe that competition there is intensifying as well. And so it's an ever-changing market and you have technologies changing constantly.

我們不想燒掉我們的設備。我們希望能夠為我們的投資帶來豐厚的回報。所以我們不會低於這個水平。我們希望事情能夠得到改善，並知道由於對車隊市場的大量關注和大量投資，它們會有所改善，高端市場必須相信那裡的競爭也在加劇。因此，這是一個不斷變化的市場，技術也在不斷變化。

We're hearing of new types of technology that are it's different, innovative and could be quite interesting, which is one of the reasons we haven't at this point, tried to go into electric technology in a big way because it is changing, right? It is changing and it is evolving. And as we noted in our comments of what the ideal or appropriate configuration for the equipment and the and the ability to get power sources is evolving and changing. A lot of people are spending a lot of time coming up with viable solutions that hopefully, at the appropriate time, we'll be able to exploit. But at this point, we're monitoring that market and feel good about our position in the market that we focus on.

我們聽說了新型技術，它們是不同的、創新的並且可能非常有趣，這也是我們目前還沒有嘗試大規模涉足電力技術的原因之一，因為它正在發生變化，正確的？它正在改變，它正在發展。正如我們在評論中指出的，設備的理想或適當配置以及獲取電源的能力正在不斷發展和變化。許多人花費大量時間提出可行的解決方案，希望在適當的時候我們能夠利用這些解決方案。但目前，我們正在監控該市場，並對我們在所關注的市場中的地位感到滿意。

And I'll add in relation to your question about potentially more fleets from gassy basins moving in the Permian or other areas. Adding gas prices have been pretty low for a while. So we don't anticipate there's a lot more movement that could happen because we don't think there are a lot of fleets left in gassy basins that are not working. So they're there at this price. You know, we don't I anticipate there to be incremental movement.

我將補充你關於可能有更多來自含氣盆地的船隊在二疊紀或其他地區移動的問題。一段時間以來，天然氣價格一直很低。因此，我們預計不會發生更多的移動，因為我們認為在含氣盆地中沒有很多船隊無法工作。所以他們以這個價格存在。你知道，我們預計不會出現增量變化。

Got it. And then just one more, if you can, if you could just talk me through a little bit the free cash flow outlook for the year here. It sounds like maybe the CapEx number might be coming down a little bit more. So you mentioned a tax refund coming in and on, I guess a little bit of the moving parts there with EBITDA as well?

知道了。如果可以的話，如果您能在這裡向我介紹今年的自由現金流前景，那就再講一個。聽起來資本支出數字可能會進一步下降。所以你提到了不斷出現的退稅，我想 EBITDA 也有一些變化？

Well, we did receive the tax refund that came in this week, actually sets to that list. That was good and then we said if if the if things slow, we would move to the lower end of the range and obviously, we're hopeful that's not the case. But I mean, we have flexibility in that spend, I guess with the point, Barry and others. So if things are good, we'll definitely spend the money and continue and will continue to invest in our businesses where as you know, we have a very strong balance sheet.

好吧，我們確實收到了本週的退稅，實際上是按照該清單進行的。這很好，然後我們說，如果事情進展緩慢，我們將移至範圍的下限，顯然，我們希望情況並非如此。但我的意思是，巴里和其他人認為，我們在支出方面具有靈活性。因此，如果情況良好，我們肯定會花錢並繼續投資我們的業務，如您所知，我們擁有非常強大的資產負債表。

We've got over 200 million in cash. And so we're not concerned currently on yield about our ability to generate cash for the rest of the year and meet all of our CapEx needs. And we still plan to we think we have plenty to do an acquisition if we find the right one and also return cash to our shareholders. So it's not a lot of concerns that the comment on CapEx is just that's a lever we can pull on to ensure that we do continue to generate the cash we need to for our plans to our plans this year includes some, I'll call them strategic investments.

我們有2億多現金。因此，我們目前並不擔心收益率，也不擔心我們在今年剩餘時間產生現金並滿足所有資本支出需求的能力。我們仍然計劃，如果我們找到合適的收購對象並向股東返還現金，我們認為我們還有很多收購要做。因此，對資本支出的評論並沒有太多擔憂，這只是我們可以利用的一個槓桿，以確保我們繼續產生我們今年的計劃所需的現金，其中包括一些，我稱之為它們戰略投資。

We don't have a tremendous amount of of no specific growth capacity investments. But we're making a lot of targeted strategic investments and in different parts of the business that we think are obviously, we think is appropriate and are going to pay off. That's part of what's driving our number this year, but we can manage down. Certainly the capitalized maintenance would come down naturally if activity levels were to fall that when we kind of manage itself, if you will. So a nose of the upper ends of that 250 have some, quote-unquote extra stuff in there that is incremental. So that's really not our annual annual run rate at this level of activity would be something closer to the lower end of the range.

我們沒有大量的、無特定成長能力的投資。但我們正在業務的不同部分進行大量有針對性的策略投資，我們認為這些投資顯然是合適的，並且將會獲得回報。這是今年推動我們數位成長的部分原因，但我們可以控制下來。當然，如果你願意的話，如果活動水準下降，當我們進行自我管理時，資本化維護就會自然減少。因此，這 250 個上限的鼻子裡有一些增量的額外內容。因此，我們在這種活動水平上的年運行率實際上並不接近該範圍的下限。

(Operator Instructions) I will turn the call back to Ben Palmer for any closing remarks.

（操作員說明）我會將電話轉回給本·帕爾默，請其發表結束語。

Thank you, operator, and thank you, everybody, for joining us this morning, and we look forward to catching up against that gap.

謝謝操作員，也謝謝大家今天早上加入我們，我們期待彌補這一差距。

This will conclude our conference call. Please note, a replay of today's call will be available on marineproductcorp.com in two hours following the completion of this call. Thank you for your participation. You may now disconnect.

我們的電話會議到此結束。請注意，今天電話會議的重播將在本次電話會議結束後兩小時內在 Marineproductcorp.com 上提供。感謝您的參與。您現在可以斷開連線。