John Jackson: We’ve been pushing a lot on — as we reprice our contracts, we’ve also been trying to push them around to different customers if some customers don’t want to term out or don’t want to go to where the market rate what we believe the market rate is. And so we have called customer-driven churn, and then we have churn that’s driven on our side. And that’s unusual from prior cycles. And so as a result, we’ve had these opportunities, as Rob mentioned, to touch the unit more. If you’re going to put it up for four years and it’s coming up on a cycle, something you need to do and run it through a shop or get some maintenance updated on it before taking it out there and then having to do it six months. We’re using that opportunity to, as Rob said, accelerate that. But some of that’s driven by our desire to lengthen the duration of our visibility.
Jeff Grampp: Understood. So it is effectively a pull forward of maybe some ’24 maintenance CapEx, not really any change related to inflation and cost of equipment or anything of the like on that end?
Rob Price: No, it’s taking advantage of available resources, contract terms and churn that goes on in the process.
Operator: And the next question comes from Brian DiRubbio with Baird.
Brian DiRubbio: I want a couple of questions for you. Jon Byers, just as we think about contract operations, obviously, we don’t have Egypt and third quarter numbers and the large LatAm customer. What would you say is the organic growth in sales and adjusted EBITDA for the quarter?
Jonathan Byers: I would say if you take — so the LatAm was not in our 2Q numbers. So it’s really just Egypt. So, probably about another $900,000 of organic growth showing up quarter-on-quarter. So if you were look Q2 revenue is $70.5 million, it probably puts you around $69.5 million to $71.5 million, so about $2 million of organic growth.
Brian DiRubbio: Okay. I guess versus third quarter of last year because you’re missing those two-fold?
John Jackson: Yes.
Jonathan Byers: So year-over-year, same thing on Egypt and the LatAm customer would probably be about $3 million, I would say of revenue. So, a fairly significant impact.
Brian DiRubbio: Okay. So organically, you’re probably closer to double digits or well over double digits on organic growth?
John Jackson: Absolutely. That’s kind of the point of that comment is we’ve taken a fairly significant step back because of those two contracts and yet have grown still on top of that.
Brian DiRubbio: Got it. That’s really encouraging. Just the equipment, the small horsepower equipment, the GasJack that you talk about that really don’t have a home. What is sort of the plan with those? Are you just going to let them sit around and hopefully, someone picks off to buy? Or is there any thoughts about maybe trying to get rid of them another way where it can just add to liquidity?
John Jackson: I think, at this point, what we’re doing is we are selling some GasJack that are idle or stranded in an area where we don’t necessarily have anything else. So if you were to look back 2.5 years ago today, we have just over 20 — we have around 2,500 GasJack in our fleet today, but we had almost 3,000 2.5 years ago. We sold 450 GasJack or disposed of them. And so as we have opportunities to sell our idle fleet, and selling to customers or other people who want to use them, we’re doing that. In the meantime, we still have over 1,000 GasJack that are running primarily in the Mid-Continent. There are in other areas. So at this point, we’ll continue to run and operate those. Obviously, everything that we own and operate is subject to the valuation that someone puts on it.
