John Lindsay: Good morning.
Don Crist: Can I just ask just a term question or has the attitude of the E&Ps kind of ebbed or flowed in relation to term contracts or are they more willing to sign term today than they were six or nine months ago, given the utilization today or how has that kind of progressed through the year?
John Lindsay: Don, it really depends on a lot of factors. It’s a very customer-specific, timing specific. How many rigs do they have running and how many of those they have on term versus how many are on spot, it’s very €“ it’s really kind of all over the board. From our perspective, our focus is historically 50% to 60% of our contracts are term. And again you’ve heard us talk about having 60 rigs rolling off over a two-quarter period. And so it’s really dependent on the customer in many cases. Dave do you have anything?
Dave Wilson: No. I agree. I mean I don’t think there’s been any change in what we’ve seen especially with the public company customers really having a preponderance for a year term that more or less mirrors their fiscal mostly calendar fiscal years.
Don Crist: I appreciate that color. And just one more if I could. I just wanted to touch on the supply chain and kind of where it is today versus six months ago and more specifically, rolled steel prices have come down quite significantly over the past nine months or so. Are you seeing any of that kind of roll through to pipe pricing. Has any of that started to come down yet?
John Lindsay: I think our €“ Don I think our €“ we certainly noticed the steel price peak in 2022. And I think that that has resulted in a moderating of price increases. But if you think about the manufacturing the supplies just like we needed to increase our margins. I think our supplier base as needed to do the same in order to be able to reinvest in their capacity because the biggest issue for the industry going forward is scale access to capacity. So we’ve seen a moderation in price increases. I think they kind of are more steady, which I referenced in my prepared remarks about our expectations for example materials and supplies, costs being relatively stable this calendar year. So the good news for us at H&P though is about access because of our scale, our uniform fleet, we have direct access to our key suppliers and by way of example, as we’ve mentioned in previous calls, our drill pipe our OT oil country tubular goods if you will.
We had purchase orders in place by September 30 to fully secure our calendar 2023 needs. So we have that access and I think that’s a key for us in this tight supply chain environment.
Don Crist: I appreciate the color. I’ll turn it back. Thank you.
John Lindsay: Thank you, Don.
Operator: We’ll take our next question from Ati Modak with Goldman Sachs. Please go ahead.
Ati Modak: Hi, John. Hi, Mark. Your International Solutions margin came in better than guidance and you mentioned the drivers there but can you give us some color on how you expect this expense to trend over the next few quarters as you work on the Middle East hub?
