RPC Inc (RES) 2024 Q2 法說會逐字稿

Good morning, and thank you for joining us for RPC Inc's second quarter 2024 conference call. Today's call will be hosted by Ben Palmer, President and CEO,; and Mike Schmidt, Chief Financial Officer. At this time, all participants are in a listen-only mode and following the presentation, we will conduct a question and answer session, and instructions will be provided at that time for you to queue up for questions. We you like to advise everyone that this conference is being recorded.

早安，感謝您參加 RPC Inc 的 2024 年第二季電話會議。今天的電話會議將由總裁兼執行長 Ben Palmer 主持；和財務長邁克·施密特。此時，所有與會者均處於聆聽模式，在演示結束後，我們將進行問答環節，屆時將指導您排隊提問。我們想告訴大家，這次會議正在錄製中。

I'll now turn the call over to Mr. Schmit.

我現在將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 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 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. I will now turn the call over to our President and CEO, Ben Palmer.

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。我現在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, we reported second quarter results that reflected resilient performance across many of our service lines, while pressure pumping results remains challenged. So we understand the pressure pumping is our largest service line and sometimes used as the barometer for the health of our business, we want to underscore the diversity of our operations and customer base.

謝謝麥克，也謝謝您加入我們的通話。今天早上，我們報告了第二季業績，反映了我們許多服務線的彈性表現，而壓力幫浦業績仍面臨挑戰。因此，我們知道壓力泵是我們最大的服務線，有時被用作我們業務健康狀況的晴雨表，我們希望強調我們營運和客戶群的多樣性。

Our non pressure-pumping areas performed solidly in the quarter, balancing out our results. Due to sequential growth in many service lines, our overall sales were only down modestly with EBITDA growing sequentially. We are not satisfied with these results, and we'll continue to push further on efficiencies and cost controls, but we're certainly encouraged by profit growth in a difficult environment.

我們的非壓力幫浦領域在本季表現強勁，平衡了我們的業績。由於許多服務線連續成長，我們的整體銷售額僅小幅下降，而 EBITDA 則連續成長。我們對這些結果並不滿意，我們將繼續進一步提高效率和成本控制，但在困難的環境下利潤的成長無疑讓我們受到鼓舞。

Our total revenues declined 4% with pressure pumping down 17% and other service lines in aggregate up 8%. Frac market remains highly competitive. And while our pricing is stabilizing, general activity in the spot and semi dedicated market has been soft> our utilization is below ideal operating levels with white space arising in the calendar sometimes on short notice.

我們的總收入下降了 4%，其中壓力泵收入下降了 17%，其他服務線的收入總計增加了 8%。壓裂市場仍然競爭激烈。雖然我們的定價穩定，但現貨和半專用市場的整體活動一直疲軟>我們的利用率低於理想的營運水平，日曆中有時會在短時間內出現空白。

While attempting to quickly redeploy assets at lower price points to drive utilization, we remain disciplined in our approach and continue to idle certain crews rather than chase economically unattractive business.

在試圖以較低的價格快速重新部署資產以提高利用率的同時，我們仍保持嚴格的方法，並繼續閒置某些人員，而不是追逐經濟上沒有吸引力的業務。

With respect to our frac assets, our Tier four DGB fleets have been highly utilized with strong demand from semi dedicated customers. As anticipated, we have deployed a new Tier 4 DGB fleet, bringing us to three in total. Crews are delivering gas substitution rates that we believe are among the best in the industry, and our customers are pleased with our efficiency and performance on-site with these assets. Our intention is to continue upgrading our fleet without adding to our fleet count

就我們的壓裂資產而言，我們的第四級 DGB 船隊已得到高度利用，半專業客戶的強烈需求。正如預期的那樣，我們部署了新的 Tier 4 DGB 機隊，使我們的機隊總數達到三架。我們認為工作人員提供的氣體替代率是業內最好的，我們的客戶對我們使用這些資產在現場的效率和性能感到滿意。我們的目的是在不增加機隊數量的情況下繼續升級我們的機隊

To summarize the pressure pumping outlook, we continue to feel the competitive impact of frac crews in the Permian that were previously in gassy basins. This frac supply, coupled with ongoing operating efficiency gains continue to keep pump power capacity in the Permian ahead of demand. Ultimately, we believe these challenging conditions could force less well-capitalized, smaller players out of the market, but it may take some time to reduce supply in that fashion.

總結壓力幫浦的前景，我們繼續感受到二疊紀壓裂人員的競爭影響，這些人員以前在含氣盆地。這種壓裂供應，加上持續的營運效率提高，繼續保持二疊紀的泵浦動力能力領先於需求。最終，我們認為這些具有挑戰性的條件可能會迫使資本較少、規模較小的參與者退出市場，但以這種方式減少供應可能需要一些時間。

On the demand side, the rig count remains solid with hopes of stabilizing near term and rig count growth, potentially not coming until next year. In this environment, we are working diligently to control costs, evaluating additional efficiency actions, and we'll maintain a disciplined operating and financial approach. The health of our balance sheet and diversity of our service lines should serve us well in the near term to navigate these pressures while giving us the flexibility to invest in high-quality in-demand equipped.

在需求方面，鑽機數量仍然穩定，預計在短期內穩定鑽機數量成長，可能要到明年才會實現。在這種環境下，我們正在努力控製成本，評估額外的效率行動，並且我們將保持嚴格的營運和財務方法。我們的資產負債表的健康狀況和服務線的多樣性應該在短期內為我們提供良好的幫助，以應對這些壓力，同時使我們能夠靈活地投資於高品質的需求裝備。

Pivoting to our non pressure pumping service lines, we were very pleased with top line performance. We saw our best quarter over the past year in downhole tools with solid 7% growth, putting that unit back in the range of $100 million in quarterly revenues. This is our second largest service line, and we continue to be an innovation leader in this area.

轉向我們的無壓泵送服務線，我們對頂級性能感到非常滿意。我們看到井下工具在過去一年中表現最好的季度，實現了 7% 的穩定成長，使該部門的季度收入重新回到了 1 億美元的範圍內。這是我們的第二大服務線，我們將繼續成為該領域的創新領導者。

We recently have been testing a new product with initial success, a larger downhole motor, which is delivering high performance and plug drill-out with lower pressure drop, improved M&R efficiencies, especially effective and increasingly longer laterals. Customer interest is high, and we look forward to continued rollout of this product in the coming quarters and are optimistic we can build off of this early positive momentum.

我們最近一直在測試新產品，並取得了初步成功，這是一種更大的井下馬達，它提供高性能和塞鑽，具有較低的壓降，提高了M&R 效率，特別是有效且越來越長的支管。客戶興趣很高，我們期待在未來幾季繼續推出產品，並對我們能夠在這一早期積極勢頭的基礎上再接再厲感到樂觀。

Fulfilling our next large service line also grew nicely in the quarter, up 18%. We're picking up traction in some specialized plug and abandonment work using proprietary directional drilling and magnetic ranging. While regulatory processes and administrative tasks in California had been timing obstacles, our technology and execution on this P&A work has created an opportunity to expand this business with a large E&T likely next year. In the meantime, we're doing similar work for other customers in other regions with positive results.

我們的下一個大型服務線的履行在本季度也取得了良好的成長，成長了 18%。我們正在利用專有的定向鑽井和磁測距技術，在一些專門的堵塞和廢棄工作中取得進展。雖然加州的監管流程和行政任務一直是時間障礙，但我們在這項 P&A 工作上的技術和執行為明年可能透過大型 E&T 擴展這項業務創造了機會。同時，我們正在為其他地區的其他客戶做類似的工作，並且取得了積極的成果。

Lastly, both cementing and rental tools delivered solid quarters with cementing up 1% sequentially and rental tools up about 9%. Each of these four service lines we highlighted also showed margin improvement during the quarter. The key takeaway is that our non-pumping activities performed well in the quarter, demonstrating the strength of our total portfolio of services and diversity of our customers, even in a landscape marked by customer consolidation.

最後，固井工具和租賃工具均實現了穩健的季度業績，固井工具環比成長 1%，租賃工具成長約 9%。我們強調的這四個服務系列在本季也都顯示出利潤率的提高。關鍵的結論是，我們的非泵送活動在本季度表現良好，證明了我們整體服務組合的實力和客戶的多樣性，即使在客戶整合的情況下也是如此。

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. Second quarter results with sequential comparisons to the first quarter of 2024 are as follows. Revenues decreased 4% to $364 million, driven primarily by lower pressure pumping activity as all of our other key service lines were up in the quarter.

謝謝，本。與 2024 年第一季的連續比較的第二季業績如下。營收下降 4% 至 3.64 億美元，主要是由於我們所有其他主要服務線在本季度均有所增長，而壓力泵送活動有所減少。

Breaking down our operating segments. Technical services, which represented 94% of our total second quarter revenues, decreased 4%, also driven by pressure pumping. Support services were up 6% and represented 6% of our total second quarter revenues. Following is the breakdown of our second quarter revenues for our top five service lines pressure pumping was 40.4%. Downhole tools, 27.6%. Coiled tubing, 10.7%. Cementing 7.7%. Tental tools, 4.8%. Together, these top five service lines accounted for 91% of our total revenues.

分解我們的營運部門。佔第二季總收入 94% 的技術服務下降了 4%，這也是受到壓力泵的推動。支援服務成長了 6%，占我們第二季總收入的 6%。以下是我們第二季排名前五的壓力幫浦服務線的收入明細，佔 40.4%。井下工具，27.6%。連續油管，10.7%。固井7.7%。臨時工具，4.8%。這五個服務線合計占我們總收入的 91%。

Cost of revenues, excluding depreciation and amortization during the second quarter decreased by $14.3 million to $262.3 million or a 5% decrease, a point higher than the revenue decline. Lower cost of revenues stemmed primarily from lower fuel costs, which are essentially a function of activity and pass-throughs to our customers and lower material and supplies such as sand.

第二季不包括折舊和攤提的收入成本下降了 1,430 萬美元，至 2.623 億美元，降幅為 5%，降幅高於收入降幅。收入成本的降低主要源於燃料成本的降低，這本質上是由於活動和對客戶的轉移以及沙子等材料和供應的減少而產生的。

SG&a expenses were $37.4 million, down from $40.1 million. This decrease was due to lower employment costs, including incentive compensation. Diluted EPS was $0.15 in the second quarter, up from $0.13 in the first quarter. There were no non-GAAP adjustments to our EPS. EBITDA was 68.5 million, up 9% from $63.1 million, with EBITDA margins increasing 210 basis points sequentially to 18.8%. Again, there were no adjustments made to these measures for unusual items either.

SG&a 支出為 3,740 萬美元，低於 4,010 萬美元。這一下降是由於就業成本降低，包括激勵性薪資。第二季稀釋後每股收益為 0.15 美元，高於第一季的 0.13 美元。我們的每股盈餘沒有進行非公認會計準則調整。EBITDA 為 6,850 萬美元，比 6,310 萬美元成長 9%，EBITDA 利潤率較上季成長 210 個基點，達到 18.8%。同樣，對於不尋常的項目也沒有對這些措施進行調整。

For the quarter, operating cash flow was $127.9 million; and after CapEx of $75 million. Free cash flow was $52.9 million. We note that the second quarter had a large CapEx spend as we made final payments and accepted delivery of our new Tier 4 DGB fleet. Our year-to-date CapEx was $128 million, and our expected full year CapEx range of $200 million to $250 million remains unchanged

本季營運現金流為 1.279 億美元；扣除資本支出 7500 萬美元後。自由現金流為 5,290 萬美元。我們注意到，第二季的資本支出很大，因為我們支付了最終付款並接受了新的 Tier 4 DGB 機隊的交付。我們年初至今的資本支出為 1.28 億美元，預計全年資本支出範圍為 2 億至 2.5 億美元，維持不變

During the quarter, we paid $8.6 million in dividends. We maintained a strong balance sheet, including a cash position of $261.5 million at quarter end. As we mentioned on our last call, early in the second quarter, we received a $53 million tax refund related to past tax years. As a result of this refund, we trued up the related tax accruals. These one-time true-ups, in conjunction with our normal quarterly tax adjustments, resulted in a 17.8% effective tax rate for the quarter, which is lower than our usual tax rate. We do not expect our rate to be this low in future quarters.

本季度，我們支付了 860 萬美元的股息。我們維持了強勁的資產負債表，包括季度末現金部位為 2.615 億美元。正如我們在第二季初的上次電話會議中提到的，我們收到了與過去納稅年度相關的 5,300 萬美元退稅。由於這次退款，我們調整了相關的應計稅款。這些一次性調整與我們正常的季度稅收調整相結合，導致本季的有效稅率為 17.8%，低於我們通常的稅率。我們預計未來幾季的利率不會這麼低。

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

現在我將把它轉回給 Ben 做一些結束語。

thank you, Mike. So as we wrap things up, I just want to share our views on capital allocation and potential investments in the business. For starters, our disciplined and strong cash generation has given us the flexibility and ample liquidity to make strategic investments in the business. Two of our most likely areas of potential future investment to deploy significant capital for upgrades to our frac fleet and acquisitions.

謝謝你，麥克。因此，當我們總結時，我只想分享我們對資本配置和業務潛在投資的看法。首先，我們紀律嚴明且強大的現金產生能力為我們提供了靈活性和充足的流動性，可以對業務進行策略性投資。我們未來最有可能投資的兩個領域是部署大量資金來升級我們的壓裂船隊和收購。

We've had and will likely continue to invest in Tier 4 DGB equipment given the growing preference for dual fuel fleets from certain customers. You've had heard us say before that we will be patient with respect to electric fleets as technology and customer preferences evolve. While some of our competitors already offering electric fleets, we are confident that over time we can acquire similar assets and capabilities and that we will be able to compete successfully.

鑑於某些客戶對雙燃料車隊的偏好日益增強，我們已經並且可能會繼續投資 Tier 4 DGB 設備。您之前曾聽我們說過，隨著技術和客戶偏好的發展，我們將對電動車隊保持耐心。雖然我們的一些競爭對手已經提供電動車隊，但我們相信，隨著時間的推移，我們可以獲得類似的資產和能力，並且我們將能夠成功競爭。

The other area of potential investment is M&A including businesses in our non pressure pumping service lines such as coil tubing, downhole tools, wireline, and cementing. We are very pleased with our purchase of Spinnaker a year ago, which brought scale and new customers and regions to our cementing operations.

另一個潛在投資領域是併購，包括我們的非壓力泵送服務領域的業務，如連續油管、井下工具、電纜和固井。我們對一年前收購 Spinnaker 感到非常高興，這為我們的固井業務帶來了規模以及新的客戶和地區。

With integration complete, we have been increasingly seeking out other opportunities, partly our thesis that a challenging market might present attractive opportunities for patient buyers such as ourselves did prove out and allow us to make another meaningful investment in the business.

隨著整合的完成，我們越來越多地尋找其他機會，部分原因是我們的論點是，充滿挑戰的市場可能會為像我們這樣的耐心買家提供有吸引力的機會，事實證明，這使我們能夠對該業務進行另一項有意義的投資。

As usual, I'll close by reiterating that in and often volatile market our discipline remains consistent with a focus on financial stability and long-term shareholder returns. I also want to thank all our employees who worked tirelessly to deliver high levels of service and value to our customers.

像往常一樣，我最後要重申，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。我還要感謝我們所有的員工，他們不懈努力，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 are happy to address any questions.

感謝您今天早上加入我們。此時，我們很樂意解答任何問題。

(Operator Instructions) Stephen Gengaro, Stifel.

（操作員說明）Stephen Gengaro，Stifel。

Thanks. Good morning, gentlemen, and thanks for taking the questions. So a couple of things for me. The first is and I'm not sure how I'd ask this exactly. But when you think about M&A in the US market, what are the key either products and/or even just financial parameters that you're looking for when you're considering M&A versus versus buying your stock, for example?

謝謝。早安，先生們，感謝您提出問題。對我來說有幾件事。第一個是，我不確定我該如何問這個問題。但是，當您考慮美國市場的併購時，例如，當您考慮併購與購買股票時，您正在尋找的關鍵產品和/或甚至只是財務參數是什麼？

Well, certainly identifying areas in the Northeast, some of which we're already in, service lines that we're already in that could have nice free cash flow fundamentals. We're looking for acquisitions that are accretive from a cash flow perspective and also from a earnings valuation perspective. And we think we've talked over time that valuations seem to be getting a little more reasonable than they had been in previous years. And we think that creates opportunities for people like us that are well-capitalized and are attractive in attracting companies that want to become part of our company.

嗯，當然要確定東北地區的一些地區，我們已經在其中一些地區，我們已經在的服務線可能有良好的自由現金流基本面。我們正在尋找從現金流角度和獲利估值角度來看都具有增值作用的收購。我們認為，隨著時間的推移，我們已經討論過估值似乎比前幾年更加合理。我們認為這為像我們這樣資本充足的人創造了機會，並且在吸引想要成為我們公司一部分的公司方面具有吸引力。

I think another key aspect, of course, is the people that can come along with a good M&A transaction, that could come in and become a part of our company and help us move forward. So it's really, it's looking for a balance. It's not necessarily one versus the other. You didn't say it was, but we're looking for an appropriate balance. There are some that we're looking that are quite appealing. We'll see whether they happen. But again, we're going to continue to be patient and wait and hope and expect we'll be successful.

當然，我認為另一個關鍵方面是能夠參與良好的併購交易的人員，他們可以加入並成為我們公司的一部分並幫助我們前進。所以它確實在尋求平衡。這不一定是一對一的。你沒有說是，但我們正在尋找適當的平衡。我們正在尋找一些非常有吸引力的產品。我們將看看它們是否會發生。但同樣，我們將繼續保持耐心、等待、希望並期待我們會成功。

Okay. Thank you. And the other one you mentioned in the press release about the pressure pumping business and the competitiveness of it, and I missed a little bit beginning of the call so I apologize if I'm asking something you talked about. But when you think about the market dynamics, and it feels to us like the pressure pumping business has gotten better, more consolidated over the last five, seven years. Yet on periods where activity is low, there's going to be competitiveness. What have you seen in this current downdraft inactivity that's different or similar to prior markets from just a customer conversation and pricing discussion?

好的。謝謝。您在新聞稿中提到的另一個關於壓力泵業務及其競爭力的問題，我錯過了電話會議的開始部分，所以如果我問您談到的問題，我深表歉意。但當你考慮市場動態時，我們感覺壓力幫浦業務在過去五、七年變得更好、更加鞏固。然而，在活動較少的時期，就會出現競爭。從客戶對話和定價討論來看，您在當前的下行不活躍狀態中看到了哪些與先前市場不同或相似的內容？

A reasonable question. I don't know that customer conversations are any different right there, putting out bids and quotes and looking for the right combination of quality, services and price. It's very competitive. There is frac capacity that's being added to the market, the markets in which we compete, be that in -- moving in from gassy basins into more oily basins where we have large operations or people bringing on additional e-fleet capacity.

一個合理的問題。我不知道客戶的對話有什麼不同，提出出價和報價，並尋找品質、服務和價格的正確組合。競爭非常激烈。壓裂能力正在被添加到市場中，我們競爭的市場中，從含氣盆地轉移到含油盆地，我們在這些盆地擁有大型業務或人員帶來額外的電子車隊能力。

Many of our peers, smaller peers and even larger peers, are fiercely competing for business for their incrementally larger equipment. As we said, our intention is not to add capacity to the market. But net-net, at least in the short term with some of this e-fleet capacity coming onboard, it is creating more capacity in the market. So it makes it more challenging.

我們的許多同行，無論是規模較小的同行，還是規模較大的同行，都在激烈地爭奪越來越大的設備的業務。正如我們所說，我們的目的不是增加市場容量。但至少在短期內，隨著部分電子車隊容量的增加，它正在市場上創造更多的容量。所以這使它更具挑戰性。

We try to be very disciplined. We don't like to work just to be busy. We have lost some bidding opportunities as had indicated to both smaller players that are always very competitive on price, but even we've had some some peers that have come in and offered what we believe are lower prices than we're willing to work at.

我們努力做到非常自律。我們不喜歡只是為了忙碌而工作。我們已經失去了一些投標機會，正如向兩個在價格上總是非常有競爭力的較小參與者所表明的那樣，但即使我們也有一些同行進來並提供了我們認為比我們願意工作的價格更低的價格。

So we'll continue to be disciplined, make appropriate adjustments to the business to try to position us to do as well as we can, and to figure out how to continue to compete successfully in that segment of the market share.

因此，我們將繼續遵守紀律，對業務進行適當的調整，努力使我們盡我們所能，並找出如何繼續在該市場份額領域成功競爭。

And then one final one for me, and I know this is a little bit tough. When we think about 2025, one of the things that we've been honestly a bit surprised by is that the oil activity has been has been weaker than we thought, and clearly M&A is part of that. When you think about going into next year, what do you think that your customers need to see could maybe restart or at least get some momentum in drilling completion activity in the US market?

然後是我的最後一個，我知道這有點困難。當我們思考 2025 年時，老實說，我們感到有點驚訝的事情之一是石油活動比我們想像的要弱，顯然併購是其中的一部分。當您考慮進入明年時，您認為您的客戶需要看到什麼可能會重新啟動或至少在美國市場的鑽井完井活動中獲得一些動力？

Well, with respect to well, let me speak in terms of the gassy basins. We are happy that we have basin diversity. So if the gas market were to pick up, we'll more directly benefit from that. So that's one thing about the gas market. With respect to oil, I guess just like always right, they want to look and believe that they've got a fair way of oil prices that they can make money at. They're looking at their production and they certainly are continuing to remain disciplined. They've got a choice of service providers, so they're continuing to press us on pricing and press us to be ever more efficient. And that can be a good thing.

好吧，關於井，讓我談談含氣盆地。我們很高興我們擁有流域的多樣性。因此，如果天然氣市場回暖，我們將更直接地受益。這是天然氣市場的一件事。就石油而言，我想就像往常一樣，他們希望看到並相信他們有一個可以賺錢的公平的油價方式。他們正在審視自己的生產，並且肯定會繼續保持紀律。他們可以選擇服務提供者，因此他們繼續在定價方面向我們施壓，並要求我們提高效率。這可能是件好事。

We're all learning to become more efficient. But in the short term, that can create even additional capacity without. obviously, without adding equipment. So I think if there's not enough completion activity, certainly production will begin to come down. So if demand remains sufficiently high, things should begin to balance out. And I would expect activity to pick up some at that point.

我們都在學習如何變得更有效率。但從短期來看，這甚至可以創造額外的產能。顯然，無需添加設備。因此，我認為如果沒有足夠的完工活動，產量肯定會開始下降。因此，如果需求仍然足夠高，情況應該會開始平衡。我預計屆時活動將會有所回升。

But you know as well as I do that [dictating] oil prices is difficult. And of course, with the new discipline of E&Ps, higher oil prices not necessarily directly translate into more activity. So I guess tjey've got to see both industry wide balance of supply and demand, or increase or decrease in one or the other that spurs additional activity and they're watching it. At some point, with activity will have to pick up, but the timing of that, of course, is difficult to predict.

但你和我一樣知道，[決定]石油價格是很困難的。當然，隨著勘探與生產的新規則，油價上漲並不一定會直接轉化為更多的活動。因此，我想他們必須看到整個行業的供需平衡，或者其中之一的增加或減少，從而刺激額外的活動，他們正在觀察這一點。在某些時候，經濟活動將不得不回升，但當然，其時間很難預測。

Great. Thank you for all the color.

偉大的。謝謝你所有的顏色。

John Daniel, Daniel Energy Partners.

約翰‧丹尼爾，丹尼爾能源合夥人。

Just a couple for me this morning, and thanks for fitting me in.when you look around at that market, a lot of your competitors have sort of ceased reinvesting in their fleets. Initially you talked about the OEMs and the fabricators, there's not a lot of rebuild activity. It sounds like some of the component parts, like engines, et cetera, are stocking up. I'm just curious, given your balance sheet and the ability to be opportunistic, does it make sense to stock up on things like Tier 4 DGB engines? And could you get them at an attractive price given the market softness?

今天早上我只有幾個，謝謝你讓我加入。最初您談到了原始設備製造商和製造商，沒有太多的重建活動。聽起來一些零件，例如引擎等，正在備貨。我只是好奇，考慮到您的資產負債表和投機取巧的能力，儲備 Tier 4 DGB 引擎等產品是否有意義？鑑於市場疲軟，您能以有吸引力的價格獲得它們嗎？

Good question. Yes, that is an opportunity. We actually had been proactive back when there were supply chain disruptions. And so we had more engines than we would otherwise have. But that certainly, that is an opportunity. I wouldn't say we're playing the market on frac engines, right, trying to build up on those. But certainly there is an opportunity to take advantage of that. We're hearing the same thing from fabricators. And fortunately, we don't see them pricing, fabrication pricings coming down significantly. But incrementally on the margin, it should help us.

好問題。是的，這是一個機會。實際上，當供應鏈中斷時，我們採取了積極主動的措施。因此我們擁有比其他方式更多的引擎。但這肯定是一個機會。我不會說我們正在玩壓裂引擎市場，對吧，試圖在這些引擎的基礎上發展。但當然有機會利用這一點。我們從製造商那裡聽到了同樣的事情。幸運的是，我們沒有看到他們的定價、製造價格大幅下降。但逐漸地，它應該對我們有幫助。

And then you touched briefly on M&A. I'm just curious, to the extent you're willing to answer, do you see any actionable opportunities in the second half? And if you can answer that, as you look at opportunities, do you see them as more tuck-in opportunities or transformative? Just if you could elaborate what the desires are, that would be great there.

然後您簡要地談到了併購。我只是好奇，如果你願意回答的話，你認為下半年有什麼可行的機會嗎？如果你能回答這個問題，當你審視機會時，你認為它們是更多的機會還是改變的機會？如果你能詳細說明你的願望是什麼，那就太好了。

Well, both. I mean, we're open to both of us. It takes some time to close on the transaction. I mean, there are some that we've been looking at, and we've constantly been looking even over the last year since we closed Spinnaker. So there are a few that we are looking at. We're hopeful that there's at least one that could be actionable this year, but that's hard to know. We certainly don't count on it, but expecting that. And when we don't emphasize tuck-ins versus transformational, right. I mean, we're certainly open to both effectively.

嗯，兩者都有。我的意思是，我們對雙方都持開放態度。完成交易需要一些時間。我的意思是，我們一直在關註一些問題，甚至在去年關閉 Spinnaker 以來我們一直在關注這些問題。所以我們正在研究一些。我們希望今年至少有一項可以採取行動，但這很難知道。我們當然不指望它，但期待它。當我們不強調折疊和變革時，對吧。我的意思是，我們當然對兩者都有效地持開放態度。

It does sound like this is a bit more of a priority. Would I be wrong to think of it that way?

聽起來這確實是一個更重要的優先事項。我這樣想會不會錯呢？

Priority always a priority, but I think just the timing. The timing may be right. I think we are an attractive company with our balance sheet. I think people, some people are naturally drawn to us in part because of that, right, that we can execute. We do have the funding available to do that, with a good balance sheet. Certainly there's not, if there were another call that translates transformational transaction to come along, we don't -- our clean balance sheet doesn't present an opportunity of leverage, problematic leverage situation (technical difficulty) position to be able to, we would be.But good merger partner, either way.

優先事項始終是優先事項，但我認為只是時機。時機可能是正確的。我認為我們的資產負債表是一家有吸引力的公司。我認為人們，有些人自然而然地被我們吸引，部分原因是我們可以執行。我們確實有足夠的資金來做到這一點，並且資產負債表良好。當然沒有，如果有另一個電話要求進行轉型交易，我們不會——我們乾淨的資產負債表不提供槓桿機會，有問題的槓桿情況（技術難度）位置能夠，我們但無論如何，都是很好的合併夥伴。

Okay. I appreciate that you let me ask some questions. Thanks, guys.

好的。我很感激你讓我問一些問題。謝謝，夥計們。

Sure. Thanks, John. I appreciate it.

當然。謝謝，約翰。我很感激。

Chuck Minervino, Susquehanna.

查克·米勒維諾，薩斯奎哈納。

Thanks. Good morning.

謝謝。早安.

Morning, Chuck.

早上好，查克。

I was just wondering if you could provide some of your thoughts on kind of a technical services outlook here in 3Q and 4Q? I know with a decline there in second quarter and yet it's pretty stable, more margin there, pretty flattish. But just kind of curious if you kind of see it 3Q being fairly similar to 2Q levels or if there's anything there that we should be aware of?

我只是想知道您是否可以就第三季和第四季的技術服務前景提供一些想法？我知道第二季度有所下降，但相當穩定，利潤率更高，相當穩定。但只是有點好奇你是否認為第三季與第二季的水平相當相似，或者是否有什麼我們應該注意的？

Yes. I mean, I think it is -- we haven't typically given guidance, but I mean we're looking at Q3 not to be significantly different. As we mentioned, we've had a little bit of disappointment in pressure pumping, but all of our other service lines have done really well and continue to do well. So I think we don't see significant shift. Obviously, we're hoping pressure pumping returns a little bit. But what we're seeing right now is, in the near term in a way, it looks very similar.

是的。我的意思是，我認為我們通常不會給出指導，但我的意思是我們認為第三季不會有顯著差異。正如我們所提到的，我們在壓力泵方面有點失望，但我們所有其他服務線都做得非常好，並將繼續做得很好。所以我認為我們沒有看到重大轉變。顯然，我們希望壓力泵能恢復一點。但我們現在看到的是，在短期內，它看起來非常相似。

Got you. And then also in the support services segment, the non pressure pumping business lines, really good margin expansion there in the second quarter and growth despite a weaker rig count. Can you just put that into context for us for third quarter or the remainder of the year? Is that margin level kind of a level that you feel like you can hold in the second quarter? And do you still think you can kind of outgrow that rig count? I know that's kind of tough to do over the long haul, but just kind of curious what your thoughts are there.

明白你了。然後，在支援服務領域，無壓泵業務線，第二季度的利潤率確實實現了良好的增長，儘管鑽機數量減少，但仍實現了增長。您能否為我們介紹一下第三季或今年剩餘時間的情況？您認為第二季可以維持這個利潤水準嗎？您仍然認為您的成長可以超過鑽孔機數量嗎？我知道從長遠來看這很難做到，但只是有點好奇你的想法。

This is Ben, Chuck. We don't see any particular thing that would translate directly into continued significant outperformance, but it's well positioned. It's a relatively more steady business. We did have a couple of good things happened during the quarter there, but obviously sort of more steady, steady activity there as well.

這是本，查克。我們沒有看到任何具體的事情會直接轉化為持續顯著的優異表現，但它處於有利地位。這是一個相對比較穩定的業務。我們本季確實發生了一些好事，但顯然那裡的活動也更加穩定。

All right. That's it for me. Thank you.

好的。對我來說就是這樣。謝謝。

Thank you, Chuck.

謝謝你，查克。

(Operator Instructions)

（操作員說明）

With no further questions at this time, this concludes the Q&A session. I will now turn the conference over to Mr. Ben Palmer for closing remarks.

目前沒有其他問題，問答環節就結束了。我現在請本·帕爾默先生致閉幕詞。

All right. Thank you very much, operator. Appreciate everybody listening in. I understand or I think I was informed that there was a large acquisition announced this morning in a call that got moved to this time slot. So we appreciate those of you who have called in to listen to the call this morning and ask some questions. We appreciate it, and look forward to catching up with you. I hope you have a good rest of the day.

好的。非常感謝您，接線生。感謝大家的聆聽。我理解或我認為我被告知今天早上在一個轉移到這個時間段的電話會議中宣布了一項大型收購。因此，我們感謝今天早上撥通電話並詢問一些問題的人。我們對此表示感謝，並期待與您聯繫。我希望你今天休息得很好。

This concludes today's conference call. A replay of the conference call will be available on rpc.net within two hours following the completion of this call. You may now disconnect.

今天的電話會議到此結束。本次電話會議結束後兩小時內將在 rpc.net 上提供電話會議的重播。您現在可以斷開連線。