Cactus Inc (WHD) 2023 Q2 法說會逐字稿

Good day, and thank you for standing by. Welcome to the Cactus Second Quarter 2023 Earnings Conference Call. (Operator Instructions) Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Alan Lloyd, Director of Corporate Development and Investor Relations.

美好的一天，感謝您的支持。歡迎參加 Cactus 2023 年第二季度收益電話會議。 （操作員指示）請注意，今天的會議正在錄製中。現在，我想將會議交給今天的發言人，企業發展和投資者關係總監艾倫·勞埃德 (Alan Lloyd)。

Thank you, and good morning. We appreciate you joining us on today's call. Our speakers will be Scott Bender, our Chairman and Chief Executive Officer; and Steve Tadlock, our Chief Financial Officer. Also joining us today are Joel Bender, President; Steven Bender, Chief Operating Officer; TS, CEO of FlexSteel; and Will Marsh, our General Counsel and Executive Vice President.

謝謝你，早上好。我們感謝您參加今天的電話會議。我們的演講者是我們的董事長兼首席執行官斯科特·本德 (Scott Bender)；以及我們的首席財務官 Steve Tadlock。今天加入我們的還有總裁 Joel Bender；史蒂文·本德，首席運營官； TS，FlexSteel 首席執行官；以及我們的總法律顧問兼執行副總裁威爾·馬什 (Will Marsh)。

Please note that any comments we make on today's call regarding projections or expectations for future events are forward-looking statements covered by the Private Securities Litigation Reform Act. Forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond our control. These risks and uncertainties can cause actual results to differ materially from our current expectations. We advise listeners to review our earnings release and the risk factors discussed in our filings with the SEC.

請注意，我們在今天的電話會議上發表的有關未來事件的預測或預期的任何評論都是《私人證券訴訟改革法案》涵蓋的前瞻性陳述。前瞻性陳述受到許多風險和不確定性的影響，其中許多風險和不確定性超出了我們的控制範圍。這些風險和不確定性可能導致實際結果與我們當前的預期存在重大差異。我們建議聽眾查看我們的財報以及我們向美國證券交易委員會提交的文件中討論的風險因素。

Any forward-looking statements we make today are only as of today's date, and we undertake no obligation to publicly update or review any forward-looking statements. In addition, 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. With that, I'll turn the call over to Scott.

我們今天做出的任何前瞻性陳述僅截至今天，我們沒有義務公開更新或審查任何前瞻性陳述。此外，在今天的電話會議中，我們將參考某些非公認會計準則財務指標。這些非公認會計準則衡量標準與最直接可比的公認會計準則衡量標準的對賬已包含在我們的收益發布中。這樣，我會將電話轉給斯科特。

Thanks, Alan, and good morning to everyone. We are understandably pleased with the company's performance in the second quarter despite a weakening U.S. landmark. We're particularly proud to be in a net cash position today, well ahead of our internal plan. As you know, free cash flow generation has always been a strength of our company and has been enhanced further by the FlexSteel acquisition. On a stand-alone basis, each of Cactus and FlexSteel set records for both quarterly revenue and adjusted EBITDA. This strength reflects the highly differentiated offerings in each of our segments.

謝謝艾倫，大家早上好。儘管美國市場表現疲軟，但我們對公司第二季度的業績感到滿意是可以理解的。我們特別自豪今天擁有淨現金頭寸，遠遠超出了我們的內部計劃。如您所知，自由現金流生成一直是我們公司的優勢，並且通過收購 FlexSteel 得到了進一步增強。就獨立而言，Cactus 和 FlexSteel 均創下了季度收入和調整後 EBITDA 的記錄。這種優勢反映了我們每個細分市場的高度差異化產品。

Today, we'll walk through results in our recently introduced segment reporting format consisting of Pressure Control, which is legacy Cactus and Spoolable Technologies, which represents the FlexSteel business. So second quarter total company highlights include revenue of $306 million, adjusted EBITDA of $115 million, adjusted EBITDA margins of 37.7%. We paid a quarterly dividend of $0.11 per share, record cash flow from operations of $108 million. Yesterday, we announced that our Board approved a 9% increase in the quarterly dividend to $0.12 a share and on July 31, we have repaid the full $155 million of debt raised to finance the FlexSteel acquisition, leaving us once again free of bank debt.

今天，我們將通過最近引入的細分報告格式來介紹結果，其中包括壓力控制（傳統的 Cactus）和 Spoolable Technologies（代表 FlexSteel 業務）。因此，第二季度公司整體亮點包括收入 3.06 億美元、調整後 EBITDA 1.15 億美元、調整後 EBITDA 利潤率 37.7%。我們支付了每股 0.11 美元的季度股息，運營現金流達到創紀錄的 1.08 億美元。昨天，我們宣布董事會批准將季度股息增加 9% 至每股 0.12 美元，7 月 31 日，我們償還了為收購 FlexSteel 籌集的全部 1.55 億美元債務，使我們再次擺脫了銀行債務。

I'll now turn the call over to Steve Tadlock, our CFO, who will review our financial results. Following his remarks, I'll provide some thoughts on our outlook for the near term before opening the lines up for Q&A. Steve?

我現在將把電話轉給我們的首席財務官 Steve Tadlock，他將審查我們的財務業績。在他發表講話之後，我將在開始問答之前對我們的近期前景提供一些想法。史蒂夫？

Thanks, Scott. As Scott mentioned, total Q2 revenues were $306 million. Pressure Control revenue of $199 million were up 2.3% sequentially driven primarily by increased customer activity despite the decline in U.S. land activity as the quarter progressed. Operating income increased $5.1 million or 10.3% sequentially, with operating margins increasing 200 basis points primarily due to lower transaction expenses, partially offset by an increase in the allowance for doubtful accounts, which was primarily attributable to a single customer. Adjusted segment EBITDA was $69.9 million, an increase of $0.8 million or 1.2% sequentially, with margins decreasing slightly by 40 basis points driven substantially by the aforementioned allowance.

謝謝，斯科特。正如 Scott 提到的，第二季度總收入為 3.06 億美元。儘管隨著本季度的進展，美國土地活動有所下降，但壓力控制收入為 1.99 億美元，環比增長 2.3%，這主要是由於客戶活動增加。營業收入環比增加 510 萬美元，即 10.3%，營業利潤率增加 200 個基點，主要是由於交易費用減少，但部分被呆賬準備金增加所抵消，這主要歸因於單一客戶。調整後分部 EBITDA 為 6,990 萬美元，比上一季度增加 80 萬美元，即 1.2%，在上述準備金的大幅推動下，利潤率小幅下降 40 個基點。

As a reminder, we closed the FlexSteel acquisition on February 28, so the second quarter results represent our first full quarter of ownership of the business, while the first quarter included only March results.

提醒一下，我們於 2 月 28 日完成了對 FlexSteel 的收購，因此第二季度的業績代表了我們擁有該業務的第一個完整季度的業績，而第一季度僅包括 3 月份的業績。

Spoolable Technologies revenues were $106.7 million and operating loss was $6 million. Operating loss was inclusive of $19.3 million of inventory costs associated with the step up in value of inventory on hand at acquisition, $8.7 million of intangible amortization expense and $18.1 million of expense associated with the remeasurement of the earn-out with the FlexSteel acquisition. The remeasurement expense this quarter reflects the revenue outperformance versus our prior forecast. This liability will be remeasured and adjusted, if necessary, on a quarterly basis through the final earn-out valuation date of June 30, 2024. Adjusted segment EBITDA, which excludes all the above noncash charges, was $45.5 million with margins of 42.6%, an approximately 1,200 basis point increase from March levels due to the depletion of higher cost material in the prior quarter and improved operating leverage. Note that no corporate costs have been allocated to FlexSteel in the period.

Spoolable Technologies 收入為 1.067 億美元，運營虧損為 600 萬美元。運營虧損包括與收購時現有庫存價值增加相關的 1,930 萬美元庫存成本、870 萬美元無形攤銷費用以及與重新衡量收購 FlexSteel 盈利相關的 1,810 萬美元費用。本季度的重新計量費用反映了收入表現優於我們之前的預測。如有必要，該負債將按季度重新計量和調整，直至2024 年6 月30 日的最終盈利估值日。調整後的分部EBITDA（不包括上述所有非現金費用）為4550 萬美元，利潤率為42.6%，由於上一季度成本較高的材料的消耗以及運營槓桿的改善，較 3 月份的水平增加了約 1,200 個基點。請注意，在此期間沒有將公司成本分配給 FlexSteel。

On a total company basis, second quarter adjusted EBITDA was $115 million, up 45% from $79 million during the first quarter. Adjusted EBITDA margin for the quarter was 37.7% of revenues an increase from the first quarter due to operating leverage and higher contribution from the Spoolable Technologies segment. Adjustments to total company EBITDA during the second quarter of 2023 included approximately $2.2 million in transaction-related fees and expenses and noncash charges of $5.3 million in stock-based compensation, $18.1 million related to the FlexSteel earnout liability and $19.3 million of purchase accounting-related step up in inventory, which impacted Spoolable Technologies cost of sales.

就公司整體而言，第二季度調整後 EBITDA 為 1.15 億美元，比第一季度的 7900 萬美元增長 45%。由於運營槓桿和 Spoolable Technologies 部門的貢獻增加，本季度調整後 EBITDA 利潤率為收入的 37.7%，較第一季度有所增加。 2023 年第二季度公司 EBITDA 總額的調整包括約 220 萬美元的交易相關費用和支出以及 530 萬美元的股票薪酬非現金費用、與 FlexSteel 盈利負債相關的 1,810 萬美元以及與採購會計相關的 1,930 萬美元庫存增加，影響了Spoolable Technologies 的銷售成本。

Depreciation and amortization expense for the second quarter was $22 million, which again includes $9 million of amortization expense related to intangible assets booked as part of purchase accounting. Total D&A expense during the third quarter is expected to be approximately $15 million, $7 million of which is associated with our Pressure Control segment and $8 million of which is associated with Spoolable Technologies. This figure is inclusive of an expected $4 million of intangible amortization expense within Spoolable Technologies during the third quarter. Intangible amortization expense is expected to remain relatively stable at $4 million per quarter for the next several quarters as the longer-lived acquisition intangibles amortized at a steady rate. Net interest expense during the second quarter was approximately $5.9 million. Interest expense increased sequentially due to the debt level and accelerated amortization of deferred financing fees which contributed approximately $3.3 million to interest expense as we paid down debt faster than our forecast and recognized these expenses in the second quarter. We expect interest expense of approximately $1 million during the third quarter.

第二季度的折舊和攤銷費用為 2200 萬美元，其中又包括與作為採購會計一部分記入的無形資產相關的 900 萬美元攤銷費用。第三季度的總 D&A 費用預計約為 1500 萬美元，其中 700 萬美元與我們的壓力控制部門相關，其中 800 萬美元與 Spoolable Technologies 相關。這一數字包括 Spoolable Technologies 第三季度預計 400 萬美元的無形攤銷費用。由於壽命較長的收購無形資產以穩定的比率攤銷，預計未來幾個季度的無形攤銷費用將保持相對穩定，為每季度 400 萬美元。第二季度的淨利息支出約為 590 萬美元。由於債務水平和遞延融資費用的加速攤銷，利息費用環比增加，這為利息費用貢獻了約 330 萬美元，因為我們償還債務的速度快於預期，並在第二季度確認了這些費用。我們預計第三季度的利息支出約為 100 萬美元。

Income tax expense during the second quarter was $10 million. Tax expense increased due to higher expected earnings and the elimination of the benefit related to a release of our valuation allowance utilized in the first quarter. During the second quarter, the public or Class A ownership of the company averaged 81% and ended the quarter at 81%. Barring further changes in our public ownership percentage, we expect an effective tax rate of approximately 21% for Q3 2023. GAAP net income was $32 million in the second quarter versus $52 million during the first quarter. The decrease was driven by higher income tax expense, higher interest expense, increased inventory step-up expense, increased purchase price intangible amortization and the expense related to the remeasurement of the earn-out liability associated with the outstanding performance of FlexSteel. We prefer to look at adjusted net income and earnings per share, which were $67 million and $0.84 per share, respectively, during the second quarter versus $51 million and $0.64 per share in the first quarter.

第二季度所得稅費用為1000萬美元。由於預期收益增加以及與第一季度使用的估值津貼釋放相關的收益的消除，稅收費用增加。第二季度，該公司的公眾或 A 類所有權平均為 81%，季度末為 81%。除非我們的公有製比例進一步變化，否則我們預計 2023 年第三季度的有效稅率約為 21%。第二季度 GAAP 淨利潤為 3200 萬美元，而第一季度為 5200 萬美元。下降的原因是所得稅費用增加、利息費用增加、庫存增加費用增加、購買價格無形攤銷增加以及與重新計量與 FlexSteel 的出色業績相關的盈利負債相關的費用。我們更傾向於關注調整後的淨利潤和每股收益，第二季度分別為 6700 萬美元和每股 0.84 美元，而第一季度分別為 5100 萬美元和每股 0.64 美元。

Adjusted net income for the second quarter applied a 26% tax rate to our adjusted pretax income generated during the quarter. We estimate that the tax rate for adjusted EPS will be 26% during the third quarter of 2023. During the second quarter, we paid a quarterly dividend of $0.11 per share, resulting in a cash outflow of approximately $9 million, including related distributions to members. The Board has also approved a 9% increase to the quarterly dividend $0.12 per share, which will be paid in September. Additionally, we repurchased approximately 4,000 shares of Class A common stock in the final days of the second quarter under our new authorization for approximately $159,000. We ended the quarter with a cash balance of $64 million and gross bank debt of $55 million. Since the end of the quarter, we repaid the entirety of our bank debt outstanding and are once again in a net cash position.

第二季度調整後淨利潤對本季度產生的調整後稅前收入適用 26% 的稅率。我們預計，2023年第三季度調整後每股收益的稅率為26%。第二季度，我們支付了每股0.11美元的季度股息，導致現金流出約900萬美元，其中包括向會員的相關分配。董事會還批准將季度股息提高 9%，每股 0.12 美元，將於 9 月份支付。此外，我們在第二季度最後幾天根據新授權以約 159,000 美元回購了約 4,000 股 A 類普通股。本季度結束時，我們的現金餘額為 6,400 萬美元，銀行債務總額為 5,500 萬美元。自本季度末以來，我們償還了全部未償銀行債務，並再次處於淨現金狀況。

Looking ahead to the third quarter, we expect to make our 2022 related TRA payment and distribution which will be approximately $34 million, along with an estimated 2023 cash tax payment of $9 million and a quarterly dividend of $10 million. Net CapEx was approximately $6 million during the second quarter of 2023, and we're reducing our full year 2023 CapEx outlook to $35 million to $45 million on lower expectations for near-term growth spending at Pressure Control given moderating activity levels. This range is inclusive of planned investments in low-cost supply chain diversification but excludes investments in the Middle East, which we now believe will occur in early 2024. That covers the financial review, and I'll now turn the call over to Scott.

展望第三季度，我們預計 2022 年相關 TRA 支付和分配約為 3400 萬美元，預計 2023 年現金稅支付為 900 萬美元，季度股息為 1000 萬美元。 2023 年第二季度的淨資本支出約為600 萬美元，由於活動水平放緩，對壓力控制近期增長支出的預期較低，因此我們將2023 年全年資本支出前景下調至3500 萬至4500 萬美元。該範圍包括對低成本供應鏈多元化的計劃投資，但不包括對中東的投資，我們現在認為這將在 2024 年初發生。這涵蓋了財務審查，我現在將把電話轉給斯科特。

Thanks, Steve. I'll now touch on our expectations for the third quarter based on our reporting segments. During the third quarter, we expect Pressure Control revenue to be down approximately 10% versus the $199 million reported in the second quarter as the decline in drilling activity impacts our business which remained resilient to the declining rig count in the first half of the year. As of last Friday, Baker Hughes U.S. land rig count is down 17% from year-end 2022 levels and down 14% from Q1 2023 average levels. Our differentiated pressure control business continues to outperform this activity decline. We expect the rig count may continue to be pressured in the third quarter, although customer indications suggest activity will be flat to up in the fourth quarter if commodity prices remain constructive. Our larger well-capitalized customers remain committed to investing in their business through commodity cycles and our revenue outperformance of the declining rig count year-to-date is reflective of this commitment.

謝謝，史蒂夫。我現在將根據我們的報告部分談談我們對第三季度的預期。在第三季度，我們預計壓力控制收入將比第二季度報告的1.99 億美元下降約10%，因為鑽井活動的減少影響了我們的業務，而我們的業務在上半年鑽機數量下降的情況下仍保持彈性。截至上週五，貝克休斯美國陸地鑽井平台數量較 2022 年年底水平下降 17%，較 2023 年第一季度平均水平下降 14%。我們的差異化壓力控制業務的表現繼續優於這一活動的下降。我們預計第三季度的鑽機數量可能會繼續受到壓力，儘管客戶跡象表明，如果大宗商品價格保持建設性，第四季度的活動將持平或上升。我們資本雄厚的大型客戶仍然致力於通過商品週期投資他們的業務，而我們今年迄今為止鑽機數量下降的收入表現也反映了這一承諾。

Adjusted EBITDA margins in our Pressure Control segment are expected to be 32% to 34% for the third quarter, inclusive of pressure control, SG&A and general corporate expenses. This adjusted EBITDA guidance excludes approximately $4 million of stock-based compensation expense within the segment as well as transaction-related expenses. Margins are expected to be down sequentially on lower operating leverage, although we've begun to see deflation in our supply chain costs after many months of inflationary pressures. We expect the benefits of this to begin to materialize in the third quarter and more significantly in the fourth quarter. In the Mid East, we continue to work through testing and trials, which are progressing on schedule. We're also continuing our work on evaluating ownership structures in the region. And upon the completion of our evaluation, we expect customer acceptance and first orders in late 2024. As mentioned earlier, we now expect to finalize our investment structure in the region in early 2024.

第三季度壓力控制部門調整後的 EBITDA 利潤率預計為 32% 至 34%，其中包括壓力控制、SG&A 和一般公司費用。調整後的 EBITDA 指導不包括該部門內約 400 萬美元的股票補償費用以及交易相關費用。儘管在經歷了數月的通脹壓力後，我們的供應鏈成本開始出現通貨緊縮，但由於運營槓桿較低，預計利潤率將連續下降。我們預計這一好處將在第三季度開始顯現，並在第四季度更加顯著。在中東，我們繼續進行測試和試驗，這些工作正在按計劃進行。我們還將繼續評估該地區的所有權結構。評估完成後，我們預計客戶會在 2024 年底接受並收到第一批訂單。如前所述，我們現在預計在 2024 年初最終確定我們在該地區的投資結構。

Switching over to Spoolable Technologies segment, we expect revenue to be relatively flat versus the second quarter, driven by continued penetration and share of wallet and share of market. This outperformance of the market highlights the benefits of the product diversification achieved with the acquisition. As discussed last quarter, our Spoolable Technologies segment was also working through some higher cost inventory during the first quarter, and that headwind is now behind us. We expect adjusted EBITDA margins in this segment to be in the approximately 40% range for Q3, moderating slightly from record Q2 levels with volatility in our supply chain. Note that this margin guidance excludes approximately $1 million of stock-based compensation in the segment. Also given the high inventory turnover, we have now completed the amortization of the noncash step-up in value of inventory associated with purchase price accounting ahead of plan, and we will not have that cost or add back going forward. As mentioned in the Form 8-K that was filed last night with our earnings release, we announced a few changes.

轉向 Spoolable Technologies 領域，我們預計，由於持續的滲透率、錢包份額和市場份額，收入將與第二季度相對持平。這種優於市場的表現突顯了通過收購實現的產品多元化的好處。正如上季度所討論的，我們的 Spoolable Technologies 部門在第一季度也正在處理一些成本較高的庫存，但現在這種逆風已經過去了。我們預計第三季度該部門調整後的 EBITDA 利潤率將在 40% 左右，由於我們供應鏈的波動，較第二季度創紀錄的水平略有放緩。請注意，該利潤指引不包括該部門約 100 萬美元的股票薪酬。此外，考慮到庫存周轉率高，我們現在已經提前完成了與採購價格會計相關的庫存價值非現金增值的攤銷，並且我們不會再有該成本或增加。正如昨晚隨我們的財報一起提交的 8-K 表格中提到的，我們宣布了一些變化。

Our Chairman, Bruce Rothstein, who has served in that role since the company's founding in August of 2011 has stepped down from the Chairman role after his many years of valuable service. He will remain a Director and continue to contribute to the Board for which I'm very thankful. I've assumed the role of Chairman in addition to continuing my current responsibilities as CEO. Given my additional responsibilities as Chairman and my role supporting the integration of FlexSteel, Joel has assumed the role of President. As President, Joel will continue to oversee our supply chain, including our manufacturing and production facilities. Steven Bender has assumed Joel's role of Chief Operating Officer, where he will continue to oversee our branch and field operations, managing the majority of our associates and introducing significant technology enhancements to our service delivery and invoicing processes. Gary Rosenthal, an independent Board member since 2018 has assumed the lead director role. You should not infer any retirement plans from these changes.

我們的董事長 Bruce Rothstein 自 2011 年 8 月公司成立以來一直擔任該職務，在多年的寶貴服務後，他辭去了董事長職務。他將繼續擔任董事，並繼續為董事會做出貢獻，對此我深表感謝。除了繼續擔任首席執行官目前的職責外，我還擔任了董事長一職。鑑於我作為董事長的額外職責以及支持 FlexSteel 整合的角色，Joel 擔任了總裁一職。作為總裁，喬爾將繼續監督我們的供應鏈，包括我們的製造和生產設施。 Steven Bender 接任 Joel 的首席運營官一職，他將繼續監督我們的分支機構和現場運營，管理我們的大多數員工，並對我們的服務交付和發票流程引入重大技術改進。自 2018 年起擔任獨立董事會成員的加里·羅森塔爾 (Gary Rosenthal) 擔任首席董事一職。您不應從這些變化中推斷出任何退休計劃。

We are still in the early innings of introducing the FlexSteel product line to Cactus's much larger customer base through joint meetings and are highly encouraged by early efforts to integrate our sales organizations both in the U.S. and internationally. Just like Cactus, the FlexSteel team is highly technical, delivers a superior product and service and strives to exceed customer expectations. I'm confident that as with the Cactus legacy business, more customers will learn to appreciate the many benefits associated with the FlexSteel Spoolable product, including speed of installation, total cost of ownership reduction, increased safety and reduce emissions for more efficient field operations.

我們仍處於通過聯席會議向 Cactus 更大的客戶群介紹 FlexSteel 產品線的初期階段，並且對整合我們在美國和國際銷售組織的早期努力感到非常鼓舞。就像 Cactus 一樣，FlexSteel 團隊技術精湛，提供卓越的產品和服務，並努力超越客戶的期望。我相信，與 Cactus 傳統業務一樣，更多客戶將了解與 FlexSteel Spoolable 產品相關的諸多優勢，包括安裝速度、降低總體擁有成本、提高安全性和減少排放，從而實現更高效的現場操作。

We anticipate introducing new products and services in 2024 the details of which will be discussed when appropriate. As stated previously, our substantial free cash flow in the 5 months since the acquisition closed, enabled us to repay all of our $155 million of bank debt well ahead of plan. The debt-free balance sheet and increased confidence in the strong through-cycle cash flow profile of the combined business has led us to reevaluate our cash return priorities as evidenced by our June announcement of the inaugural share repurchase program and the increase to the base dividend announced yesterday.

我們預計在 2024 年推出新產品和服務，並將在適當的時候討論其細節。如前所述，自收購完成以來的 5 個月內，我們擁有大量自由現金流，使我們能夠提前償還全部 1.55 億美元的銀行債務。無債務的資產負債表以及對合併後業務強勁的整個週期現金流狀況的信心增強，促使我們重新評估現金回報優先事項，我們 6 月份宣布的首次股票回購計劃和增加基本股息就證明了這一點昨天宣布。

Going forward, we expect to remain discerning buyers of our own stock as we believe we will continue to be rewarded for having the flexibility to invest in attractive organic and inorganic growth opportunities with our excess cash while maintaining a strong balance sheet. While third quarter activities for Pressure Control are expected to be down given the year-to-date decline in U.S. land activity, Spoolable Technologies is expected to remain stable. We're confident that our consolidated business will continue to outperform the market and we remain encouraged by the investment discipline we see from both our customers and service industry peers. Moreover, we expect that our in-process supply chain diversification will further strengthen our low-cost, high-quality competitive advantage in future periods.

展望未來，我們預計仍將是我們自己股票的挑剔買家，因為我們相信，我們將繼續因靈活地利用多餘現金投資於有吸引力的有機和無機增長機會而獲得回報，同時保持強勁的資產負債表。鑑於今年迄今美國土地活動的下降，壓力控制第三季度的活動預計將下降，但 Spoolable Technologies 預計將保持穩定。我們相信，我們的綜合業務將繼續跑贏市場，並且我們仍然對客戶和服務行業同行的投資紀律感到鼓舞。此外，我們預計我們的流程供應鏈多元化將在未來進一步增強我們低成本、高質量的競爭優勢。

And with that, I'll turn it back over to the operator so that we may begin Q&A. Operator?

然後，我會將其轉回給操作員，以便我們可以開始問答。操作員？

(Operator Instructions) Our first question comes from Stephen Gengaro of Stifel.

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

So my first question, when I think about the legacy business and I mean, we had modeled and expected market share to grow a little bit. And I know you're not going to speak directly to market share, but can you talk about what you're seeing in that business both from a pricing perspective and just sort of what the -- if the competitive landscape there has changed at all? And if you want to tell me if you think we're right, you gained about 200 basis points of market share, we'd love to hear that, too.

所以我的第一個問題是，當我考慮遺留業務時，我的意思是，我們已經建模並預計市場份額會略有增長。我知道您不會直接談論市場份額，但您能否從定價角度以及如果競爭格局發生根本變化的話，談談您在該業務中看到的情況？如果您想告訴我您是否認為我們是對的，您獲得了大約 200 個基點的市場份額，我們也很樂意聽到。

Well, as you know, we're not going to talk about market share directly, but I will share with you that we set a record for market share during the quarter. I am absolutely not going to talk about pricing. I never have and I certainly never will. So sorry about that, Stephen. So at least you got part of your question answered.

好吧，如您所知，我們不會直接談論市場份額，但我將與您分享我們在本季度創下的市場份額記錄。我絕對不會談論定價。我從來沒有，而且我當然永遠不會。對此深感抱歉，斯蒂芬。所以至少你的問題得到了部分答案。

But what about just sort of the competitive landscape? Has there been any change and has the competition made progress at all do you think? Or do you think your position just remains as strong as it's been for the last several years.

但競爭格局又如何呢？您認為有什麼變化嗎？比賽有進步嗎？或者您認為您的地位仍然像過去幾年一樣穩固。

Well, I guess the great and best evidence of that is the statement that I made about record market share for the quarter.

嗯，我想最好的證據就是我關於本季度創紀錄的市場份額的聲明。

Okay. Okay. And then just the other one I wanted to ask you about you guys are out there on the front line constantly. You mentioned earlier about rig counts in the third quarter and maybe stabilization, are you seeing that -- are you saying that based on conversations, based on early orders, like what gives you the confidence that we do see a stabilization and hopefully, a recovery in 2024.

好的。好的。然後我想問你們的另一個問題是你們一直在前線。您之前提到過第三季度的鑽機數量以及可能的穩定，您是否看到了這一點 - 您是說基於對話，基於早期訂單，就像什麼讓您有信心我們確實看到了穩定並希望看到復蘇2024年。

Yes. So let me be clear, even though you haven't asked this question explicitly. But I believe in transparency, as you know. From conversations with our customers, my feeling now you may recall, I called a trough of 650 earlier. I'm revising that 650 down to closer to 600 for the U.S. land count. I think that that's going to probably occur in the mid- to latter part of the third quarter, after which time, we'll see some stabilization. And I feel like we'll begin to see some increases, particularly coming from the privates who have suffered the most in terms of activity decline, and they always respond first.

是的。因此，讓我澄清一下，即使您沒有明確提出這個問題。但正如你所知，我相信透明度。從與我們客戶的交談中，我現在的感覺你可能還記得，我早些時候撥打了 650 的低谷。我正在將美國土地數量的 650 修改為接近 600。我認為這可能會發生在第三季度中後期，之後我們會看到一些穩定。我覺得我們將開始看到一些增長，特別是來自活動下降最嚴重的私人，他們總是首先做出反應。

Great and since you mentioned that, I'll slip one in. On the private side, you've made progress with privates. I mean it seems like the last couple of quarters, is that fair, right?

太好了，既然你提到了這一點，我就塞進去一個。在私人方面，你在私人方面取得了進展。我的意思是，這似乎是過去幾個季度的情況，這公平嗎？

We have historically made progress with privates. The fact of the matter is privates used to account for about 35-or-so percent of our business. They're down to about 30% but that's not terribly surprising when you consider how much the privates have dropped.

歷史上我們在私人方面取得了進展。事實上，私人業務過去約占我們業務的 35% 左右。雖然下降到了 30% 左右，但考慮到私人人數下降了多少，這並不奇怪。

Our next question comes from David Anderson of Barclays.

我們的下一個問題來自巴克萊銀行的大衛·安德森。

Just let me follow up on Stephen's question just a little bit. If we think about kind of your larger customers there, is it fair to say they've been kind of staying the course? I'm just kind of wondering what they're saying, if anything, about '24 yet. Are you expecting kind of them just to stay steady here throughout and really kind of the incremental -- anything incremental comes from privates or maybe natural gas? Just bigger picture, how you're thinking about the next 2 or 3 quarters?

讓我稍微跟進一下斯蒂芬的問題。如果我們考慮一下那裡的大客戶，可以公平地說他們一直堅持到底嗎？我只是想知道他們對“24”有什麼看法（如果有的話）。您是否期望它們始終保持穩定，並且真正實現增量——任何增量都來自私人或天然氣？從更大的角度來看，您對未來 2 到 3 個季度有何看法？

Yes. So to be clear, without mentioning customer names, the really big one that you're probably thinking about right now has maintained very robust activity in the Permian and Delaware areas, but they have released rigs in their gassier areas. Now to be fair, that didn't represent a large portion, but it was a meaningful percentage. So think about where they had gas rigs drilling and those gas rigs have either stopped or about to stop. So it's not really fair to say that the majors have maintained their rig count. In terms of visibility, we have visibility -- pretty good visibility through the end of the year, but I don't think -- and I see customers all the time, none of our customers are talking about 2024.

是的。因此，需要明確的是，在不提及客戶名稱的情況下，您現在可能正在考慮的真正大公司在二疊紀和特拉華地區保持了非常強勁的活動，但他們在天然氣含量較高的地區釋放了鑽機。公平地說，這並不代表很大一部分，但它是一個有意義的百分比。因此，想想他們在哪裡有天然氣鑽機鑽探，而這些天然氣鑽機要么已經停止，要么即將停止。因此，說各大石油公司維持其鑽機數量是不公平的。就可見性而言，我們有可見性——到年底都有相當好的可見性，但我不認為——而且我一直看到客戶，但我們的客戶都沒有談論 2024 年。

I do believe that budgets -- let's -- that's all hope that oil remains in that say, $78, $82 range. I think we'll see budget resets. And that will include, I think, increased activity from privates as well as from the larger players. I mean, you heard me say last time, despite all the patterns, you believe that we make up for the drop in gas count by picking up oil I think I mentioned that cash flow is cash flow. And as cash flows decrease and shareholder returns remain constant, something's got to give and something has given. So if we look at our -- I shouldn't answer questions that you haven't asked, but -- if I think about the decline that we've seen in our rig count, believe it or not, it's about 50% gas, 50% oil related, which kind of supports by position that cash is cash.

我確實相信預算——讓我們——希望油價能保持在 78 美元至 82 美元的範圍內。我認為我們會看到預算重置。我認為，這將包括私營企業和大型企業的活動增加。我的意思是，你上次聽到我說，儘管有所有的模式，你相信我們可以通過增加石油來彌補天然氣數量的下降，我想我提到現金流就是現金流。隨著現金流量減少而股東回報保持不變，一些東西必須給予，而一些東西已經給予了。因此，如果我們看看我們的 - 我不應該回答你沒有問過的問題，但是 - 如果我考慮一下我們所看到的鑽機數量的下降，無論你相信與否，這大約是 50% 的天然氣， 50%與石油相關，這種立場支持現金就是現金。

So some are talking about natural gas rigs coming back later in the year. I know you didn't get too specific there. And I know this is kind of LNG build-out happening at some point in '24. Are you in that camp there? Or do you think this is going to be more kind of privates on the oil side will be more sort of that uptick 4Q into 1Q?

因此，一些人正在談論今年晚些時候天然氣鑽井平台的恢復。我知道你在那裡說得不太具體。我知道這就是 24 年某個時候發生的液化天然氣擴建。你在那個營地嗎？或者您認為石油方面的私人股會更傾向於第四季度進入第一季度的上升趨勢嗎？

Yes, the latter.

是的，是後者。

Okay. You made a comment just now about '24 that nobody is talking about '24. I was just curious, is that -- is this a little bit late -- are you surprised or not talking about '24, are your customers kind of holding off because they want to understand the cost structure. So I'm just curious, would you normally be having talks about '24 at this time of the year?

好的。你剛才發表了關於“24”的評論，但沒有人在談論“24”。我只是很好奇，這是否有點晚了，您是否感到驚訝或沒有談論“24”，您的客戶是否因為想了解成本結構而猶豫不決。所以我只是好奇，你通常會在每年的這個時候談論“24”嗎？

No. I would say that when you're in the January time frame, you normally get visibility over 6 months, but as you approach a budget reset period, I think that period of visibility contracts a bit. So ask me again in September. And I think I'll have a much better idea of what we can expect.

不。我想說的是，當您在一月份的時間範圍內時，您通常會獲得超過6 個月的可見性，但當您接近預算重置期時，我認為該可見性期間會有所收縮。所以九月再問我。我想我會對我們的期望有更好的了解。

Makes a lot of sense. If I could just shift over on the Spoolable side. So margins were -- and the EBITDA margins were impressive this quarter. It sounds like kind of going forward, I guess you're talking kind of in the 40s next quarter. It sounds like you're kind of normalized numbers are bit far than you're originally thinking. Just curious what's changed. You've now had the business obviously for 4 months. So -- is -- are you seeing something different? Is it more on the cost opportunity side? Are you just managing it better? Just curious what's changed in terms of that outlook on the margins longer term?

很有道理。如果我能轉移到 Spoolable 一側就好了。因此，利潤率很高，本季度的 EBITDA 利潤率令人印象深刻。聽起來像是在向前邁進，我猜你說的是下個季度的 40 年代。聽起來你的標準化數字比你最初想像的要遠一些。只是好奇發生了什麼變化。顯然，您已經開展該業務 4 個月了。那麼——是——你看到了不同的東西嗎？更多的是成本機會方面嗎？你只是管理得更好嗎？只是好奇長期利潤前景發生了什麼變化？

Well, I'm not managing it. TS is managing it and TS is with us this morning. So I want to be clear about that. This is not a reflection of Scott Bender. TS, would you like to maybe offer a comment there?

好吧，我不管理它。 TS 正在管理它，今天早上 TS 和我們在一起。所以我想澄清這一點。這不是斯科特·本德的反映。 TS，您願意發表評論嗎？

Yes, David, this is TS. The FlexSteel business is a very robust business. And I think you should not read too much into the first quarter to second quarter change in margins because the first quarter Cactus had owned FlexSteel just for a month, David. And it also had a lot of, I think, as we reported and went through on the last call, it had a lot of accounting-related adjustments to inventory, et cetera. So on a go-forward basis, the 40-plus percent margin that Scott guided towards is near term, the expectations. Business has got a phenomenal competitive advantage. The business has got really meaningful customer value proposition. It's very differentiated, and we are firing on all cylinders. So I hope that provides you a little bit of an overview. Scott, anything to say?

是的，大衛，這是 TS。 FlexSteel 業務是一項非常強勁的業務。我認為你不應該過多地解讀第一季度到第二季度的利潤變化，因為第一季度 Cactus 只擁有 FlexSteel 一個月，大衛。我認為，正如我們在上次電話會議中報告和經歷的那樣，它還有很多與會計相關的庫存調整等。因此，從長遠來看，斯科特指導的 40% 以上的利潤率是近期的預期。企業擁有顯著的競爭優勢。該企業擁有真正有意義的客戶價值主張。它非常與眾不同，我們正在全力以赴。所以我希望這能為您提供一點概述。斯科特，有什麼要說的嗎？

That TS's right way of saying he's confident that he can maintain those margins.

TS 正確地表達了他有信心能夠保持這些利潤。

40-plus, all right. So look, I'm going to -- let me dance on this question a little bit here. I know you don't want to talk about pricing and I know you don't want to talk about details on contracts...

40多了，好吧。所以聽著，我要——讓我在這裡稍微討論一下這個問題。我知道你不想談論定價，我知道你不想談論合同細節......

Don't ask me about it, David.

別問我這件事，大衛。

I'm well aware of it. I'm not going to ask you about it. I'm asking a very general question here. I'm curious on how your customers order your spoolable products. Does this typically come under frame agreements? Is it job to job and this is -- and I'm not sure if you want to answer this question, but is there a loose rule of thumb as to how much volume gets repriced every quarter? I'm asking because obviously, steel prices have come down quite a bit since March. You just said that part of it is getting that expensive inventory out. I'm just curious, generally speaking, how does this business work from that perspective.

我很清楚這一點。我不會問你這件事。我在這裡問一個非常普遍的問題。我很好奇你們的客戶如何訂購你們的可纏繞產品。這通常屬於框架協議嗎？這是工作與工作之間的關係嗎？我不確定您是否想回答這個問題，但是對於每季度重新定價多少數量是否有一個寬鬆的經驗法則？我這麼問是因為顯然，自三月份以來，鋼材價格已經下跌了很多。你剛才說過，其中一部分就是把昂貴的庫存拿出來。一般來說，我只是好奇，從這個角度來看，這項業務是如何運作的。

David, let me just help TS a little bit. You have 2 questions here, right? The first is how the customers place orders. Is that right?

大衛，讓我幫 TS 一點忙。你有兩個問題，對吧？首先是客戶如何下訂單。是對的嗎？

That's correct.

這是正確的。

Are you asking how far in advance they price orders?

您是想問他們提前多久定價訂單嗎？

It's more as it kind of relates to the timing of pricing, is there like a loose frame agreement, which you just kind of plucking it down and it gets like every once a year, you kind of look at it. I'm just sort of trying to understand like with steel prices correcting as much as they have, like how much does that roll through, I guess, kind of loosely trying to understand.

更重要的是，它與定價時間有關，是否有一個鬆散的框架協議，你只需將其拉下來，就像每年一次，你都會看一下它。我只是想了解一下鋼鐵價格的調整幅度，我想，這大概是多少，有點鬆散地試圖了解。

Okay. TS, please.

好的。 TS，請。

Yes. David, just a big picture, just stepping back, one of the things E&P operators focus on is clearly managing costs. They manage it pretty tight through their supply chain departments. The benefit we have in the FlexSteel side is that business has got a really differentiated value proposition. And the value proposition is based on safety and quality. And the safety and quality FlexSteel has got a tremendous track record. We've never -- we've not had one operating field failure in the history of the business. And as a result, we were able to differentiate ourselves versus competition.

是的。大衛，只是一個大局，退後一步，勘探與生產運營商關注的事情之一顯然是管理成本。他們通過供應鏈部門對其進行嚴格管理。我們在 FlexSteel 方面獲得的好處是，業務擁有真正差異化的價值主張。價值主張基於安全和質量。 FlexSteel 的安全性和質量有著良好的記錄。在我們的業務歷史上，我們從未發生過任何一次操作現場故障。結果，我們能夠在競爭中脫穎而出。

The other part, just before I answer your question that you should just keep in mind is spoolable products and services make up less than 2%, right about 2% of share of wallet of an operator spend. So the -- so that's a background. All to say, operators really place callouts, it's sort of like a milk run, David. And it's just a milk run order purchased and now we do both products as well as services. We deliver it all through delivery to length products and services that we offer our customers. So all to say that sometimes we get products and services that are required to be in customer site within 3 days, most of the time within 5 to 7 days. And that's how we manage the business.

另一方面，在我回答你的問題之前，你應該記住的是，可假脫機產品和服務所佔的比例不到 2%，大約佔運營商支出​​的 2%。這就是背景。總而言之，操作員確實會進行標註，這有點像擠奶，大衛。這只是購買的牛奶訂單，現在我們既提供產品又提供服務。我們通過向客戶提供按長度交付的產品和服務來實現這一切。總而言之，有時我們會得到需要在 3 天內到達客戶現場的產品和服務，大多數情況下是在 5 到 7 天內。這就是我們管理業務的方式。

Our next question comes from Kurt Hallead of Benchmark.

我們的下一個問題來自 Benchmark 的 Kurt Hallad。

So Scott, in the press release, you kind of referenced that Spoolable Technologies would lag the pressure control business in terms of the revenue impact or slowdown in activity. So I was just kind of curious in that dynamic. Is it kind of like a quarter lag? Question number one. And question number two, do you expect that the Spoolable business would kind of see the same sort of magnitude of decline that you indicated that Pressure Control is going to see in the third quarter.

Scott，在新聞稿中，您提到 Spoolable Technologies 在收入影響或活動放緩方面將落後於壓力控制業務。所以我只是對這種動態感到好奇。是不是有點像四分之一的滯後？第一個問題。第二個問題，您是否預計 Spoolable 業務會出現與您指出的壓力控制業務在第三季度出現同樣程度的下降。

Okay. Maybe I probably didn't characterize that correctly. And TS, you can jump in if what I say is incorrect. And you can still -- you'll still have your job even if you correct it, it's open mic. In the case of spoolables, TS' team is increasing their penetration in terms of the market and in terms of share of wallet. So I don't think that we're in a position right now to tell you what percent of their revenue changes due to market penetration, wallet penetration versus a lag. But look, they need for people to drill wells and complete wells and put wells online. And to that extent, their business is going to be impacted. The question is, and I think TS has answered it is our feeling is that this increase in share of wallet and market is going to compensate for that. Is that fair?

好的。也許我沒有正確地描述這一點。 TS，如果我說的不正確，你可以加入。即使你糾正了它，你仍然可以保住你的工作，它是開放式麥克風。就 spoolables 而言，TS 團隊正在提高其市場滲透率和錢包份額。因此，我認為我們現在無法告訴您他們的收入因市場滲透率、錢包滲透率與滯後而變化的百分比。但你看，他們需要人來鑽井、完井並將油井上線。從這個意義上說，他們的業務將會受到影響。問題是，我認為 TS 已經回答了這個問題，我們的感覺是，錢包和市場份額的增加將彌補這一點。這公平嗎？

Right, I won't disagree with you, Scott. But I'd just add to the comment. Kurt, the share of wallet is a unique sort of market lever that we have or a company level that we have to continue increasing penetration into our customers. And I want to just provide you just a quick background to that. unlike some of the products that are offered just in one part of the customer's value chain, spoolable products are offered at multiple parts of the value chain. So what I mean by that is it's used under pipe, under pad when they're constructing the pad. And in that regard, the business will -- pretty much the revenue and the bookings, particularly will pretty much mirror that rig count movements.

是的，我不會不同意你的觀點，斯科特。但我只是添加評論。庫爾特，錢包份額是我們擁有的一種獨特的市場槓桿，或者是我們必須繼續提高對客戶的滲透率的公司層面。我只想向您提供一個快速的背景知識。與某些僅在客戶價值鏈的某一部分提供的產品不同，可纏繞產品是在價值鏈的多個部分提供的。所以我的意思是，當他們建造墊子時，它用在管道下、墊子下。在這方面，該業務將在很大程度上反映收入和預訂量，尤其是鑽機數量的變化。

But then it also is installed further down the value chain. So for instance, when you connect the well pad to the central tank battery, that's another segment. And then when you connect the central tank battery to the water disposal line, that's another segment. And then when you connect the central tank battery to the midstream takeaway lines, so there are multiple segments. And when we say there is share of wallet penetration, what we mean by that is when we get our customer on, it's usually on the one of these segments, and then they see how well FlexSteel performs, how well the team is performing in terms of service and the value proposition is realized and then they begin to start using us in other segments of their operation. And that is going to continue, hopefully growing, and it's continued to grow in the last 10 years that I've been here, and hopefully, it will continue to grow in the years to come.

但它也被安裝在價值鏈的更下游。例如，當您將井墊連接到中央水箱電池時，這是另一個部分。然後，當您將中央水箱電池連接到水處理管線時，這是另一個部分。然後當你把中央水箱電池連接到中游外賣線時，所以有多個段。當我們說存在錢包滲透率份額時，我們的意思是當我們吸引客戶時，通常是在這些細分市場之一上，然後他們會看到 FlexSteel 的表現如何，團隊在這方面的表現如何服務和價值主張得到實現，然後他們開始在其運營的其他領域使用我們。這種情況將會持續下去，希望能夠增長，在我在這裡的過去 10 年裡，這種情況一直在持續增長，並且希望在未來的幾年裡，這種情況能夠繼續增長。

That's great. fantastic. Appreciate that. Scott, follow-up in the comment you made about the Middle East kind of rollout and what you see for Pressure Control. I think you kind of referenced sometime late 2024. Again, I don't want to mince any words that you mentioned, but is it late '24 when you think you'll start to generate incremental revenue? Or is the real incremental revenue opportunity, 2025 and beyond?

那太棒了。極好的。感謝。斯科特，您對中東的部署以及您對壓力控制的看法的評論的後續內容。我認為您提到了 2024 年末的某個時間。同樣，我不想拐彎抹角地提到您提到的任何字眼，但是您認為您將在 24 年末開始產生增量收入嗎？或者是 2025 年及以後真正的增量收入機會？

I'll add tell me what incremental means?

我會補充告訴我增量意味著什麼？

How about just growing the revenue base in the Middle East? Is that really...

僅僅增加中東的收入基礎怎麼樣？難道真的是……

Our expectation is you'll see that at the end of 2024 and then it will accelerate into '25 and thereafter.

我們的期望是，您將在 2024 年底看到這一情況，然後它將加速到 25 年及之後。

Our next question comes from Saurabh Pant of Bank of America.

我們的下一個問題來自美國銀行的 Saurabh Pant。

Scott, maybe sticking to the Spoolable side of things. Just wanted to clarify on your answer to Kurt's question, because I think I kind of heard not in those words, but I think I kind of heard that, yes, there is a lag when spoolables is impacted, but you think that share of wallet penetration can help you offset that. So should we think that there's a scenario and a realistic scenario that Spoolable's revenues might not fall at all over the next couple of quarters?

Scott，也許會堅持 Spoolable 方面。只是想澄清你對庫爾特問題的回答，因為我想我沒有聽到這些話，但我想我聽到了，是的，當 spoolables 受到影響時會有滯後，但你認為錢包份額滲透可以幫助你抵消這一點。那麼，我們是否應該認為，在未來幾個季度中，Spoolable 的收入可能根本不會下降？

Well, we never provide guidance beyond a quarter as you know or you don't know -- so I really would only like to offer you, I think, guidance on the next quarter. So I think that our guidance stands that is that despite this falling rig count and activity level that they're going to maintain their Q2 levels. I'm sorry, I can't be more precise, but...

好吧，正如你所知或不知道的那樣，我們永遠不會提供超過一個季度的指導 - 所以我想我真的只想為你提供下一個季度的指導。因此，我認為我們的指導意見是，儘管鑽機數量和活動水平下降，但他們將維持第二季度的水平。抱歉，我無法說得更準確，但是...

Yes. No, Scott, I totally understand that. But just the way we should think about the lag, obviously, completions lag, the rig count and production and how you carry that production to the central tank batteries and onwards, that lags completions, right. So just what kind of a lag should we think about? Is it 6 months? Is it 9 months? Is it different than that? Or just conceptually, how could we think about that lag?

是的。不，斯科特，我完全理解。但正如我們應該考慮滯後的方式一樣，顯然，完工滯後、鑽機數量和產量以及如何將產量輸送到中央油箱電池及其他位置，這會滯後完工，對吧。那麼我們應該考慮什麼樣的滯後呢？是6個月嗎？是9個月嗎？與此有什麼不同嗎？或者只是從概念上講，我們如何考慮這種滯後？

Yes. Saurabh, this is TS. Scott, if I may?

是的。索拉布，這是 TS。斯科特，可以嗎？

Sure.

當然。

Yes, I think, look, it's incredibly hard, Saurabh, before I answer the question, just to give you a disclaimer. It's incredibly hard to predict the future, especially to do it accurately, right? So predicting the customers sort of budget spend on different segments is a little bit of an impossible task. But I'll take -- I'll answer the question in the spirit it was raised. I think we'd like -- historically, we've seen a 3- to 4-month lag. And -- but with the increased cross penetration capabilities that we're having with Cactus where we sell products, we're having multiple meetings with Cactus customers as well. We're beginning to see penetration in the pipe and the pad segment. And we're beginning to see more line pipe in different types of customers. And so historically, it's been about 3 to 4 months. It may be a little shorter this time. It may be a little longer this time, but that's where it's historically been.

是的，我想，看，這非常困難，Saurabh，在我回答這個問題之前，只是為了給你一個免責聲明。預測未來是非常困難的，尤其是準確地預測未來，對吧？因此，預測客戶在不同細分市場上的預算支出是一項不可能完成的任務。但我會本著提出的精神來回答這個問題。我認為我們希望——從歷史上看，我們已經看到了 3 到 4 個月的滯後。而且，隨著我們銷售產品的 Cactus 交叉滲透能力的增強，我們也與 Cactus 客戶舉行了多次會議。我們開始看到管道和墊塊的滲透。我們開始在不同類型的客戶中看到更多的管線管。從歷史上看，這個時間大約是 3 到 4 個月。這次可能會短一些。這次可能會更長一些，但這就是歷史上的情況。

Okay. No, that's very helpful. And then a quick follow-up on the cost side of things in spoolables, I know steel is a big cost, but you don't price your product like it's steel, it's a value-based pricing. But can you help at all in terms of how should we think about operating leverage, fixed cost working, variable costs? Anything you can give along those lines.

好的。不，這非常有幫助。然後快速跟進繞線產品的成本方面，我知道鋼材成本很高，但你不會像鋼材一樣為你的產品定價，這是基於價值的定價。但是，您能否幫助我們了解我們應該如何考慮運營槓桿、固定成本工作、可變成本？你可以按照這些方式給予任何東西。

Yes. We're -- Saurabh, this is Steve. We're not providing any kind of guidance into the material cost as a percent or anything like that. We'd like to keep it to ourselves for competitive reason.

是的。我們是——Saurabh，這是史蒂夫。我們不會提供任何有關材料成本百分比或類似內容的指導。出於競爭原因，我們希望保守秘密。

(Operator Instructions) I am showing no further questions at this time. I would now like to turn the conference back to Alan Boyd for closing remarks.

（操作員說明）我目前沒有提出任何進一步的問題。現在我想請艾倫·博伊德（Alan Boyd）發表閉幕詞。

We appreciate everyone joining today and look forward to speaking with you next quarter.

我們感謝今天加入的每個人，並期待下個季度與您交談。

Have a good day, everybody. Thanks.

祝大家有美好的一天。謝謝。

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

今天的會議到此結束。感謝您的參與。您現在可以斷開連接。