And then just one of the things I was interested in is obviously this brings SCF back into the mix, which is probably not a long-term holder, just given the nature of their business. And when you look at that cash flow, if we were able to kind of do a broader long-term debt package, is there an opportunity there to take advantage of perhaps them needing or wanting to sell once the lockup would expire? I’m just kind of curious on when you think broader and kind of continuing to manage the balance sheet, which you guys have done a phenomenal job off at the bottom and you kind of touched on where debt has moved from then to now. But just kind of thoughts on the balance sheet and the optionality and just thinking about a go forward plan and understanding that a lower float stock like you guys have has some challenges, but that also offers a lot of opportunity.
So yes, just thoughts would be great.
Lyle Williams: Great questions there, Eric. And definitely things that we thought about in this acquisition and our prepared remarks really aimed at a lot of time was spent on making sure we got the balance sheet right and stable. So we’d be in a super spot going forward and I think we’ve achieved that. Now we have – as you mentioned, that flexibility. So we will generate free cash flow. We do have the opportunity just to organically retire notes. We don’t have to look outside. And so I do think that creates some options for us. As we do think about SCF, we’re pleased to have the current shareholders of Variperm become shareholders of FET. I think that was a vote of confidence by them in the business that they’re selling, but also in the combined company.
And as you mentioned, long-term, these are probably sellers of the notes. We do have a 180-day lockup on those shares agreed with the sellers to give time for the acquisition to integrate and to marinate here. But after that we expect those shares to be freely traded and be out in the market. So I think the ultimate end of that increased float is a good thing for us that we’ll get more volume out there and under the right financing structure, timeline like you talked about, provides us the opportunity to potentially acquire some of those shares with our stronger free cash flow.
Unidentified Analyst: Great. Yes. This is exciting. It looks great. Appreciate the work and yes, keep it up.
Lyle Williams: Thank you, Eric.
Operator: Thank you. [Operator Instructions] Our next question comes from the line of Daniel Pickering from Pickering Energy Partners.
Daniel Pickering: Morning, gentlemen.
Neal Lux: Good morning, Dan.
Daniel Pickering: So I’m going to – bear with me, I’m going to ask a number of questions about Variperm, just because it’s – obviously it’s a very meaningful transaction for you and we’re just kind of learning the business. I appreciate the deck that you put on your website about it. And so when we look at this business, I guess, first question is, we’re seeing the results on a historical trailing 12 basis. Is there anything – it’s an equipment sale based business and so is there anything lumpy about the last year? Just thinking about what the next year or 2024 looks like. Is 2023 a representative look to 2024? Any lumpiness in the revenue profile?
Neal Lux: Yes, Dan. I don’t think there was any large projects that were unusual that they delivered in 2023. I think as we look ahead and as we modeled the business, our focus was looking at – what’s the kind of demand that’s going to come from the maintenance drilling, right. Just to keep production flat. And I think that’s where our expectations is that 90% to 95% of the go forward was really just to make up for declining activity or declining production.
Lyle Williams: Yes. And Dan, I would just chime in on that. If we look back over time at the business, they’ve got a really great correlation with energy prices and with activity very similar to our business and probably mirror the more activity driven side of FET rather than the bit lump, more lumpy capital side of FET. So expectation is that over time this will be a dampener of volatility on combined FET revenues.
