In other words, that is an option to the extent that the customer needs the enhanced racking capacity and is willing to pay for it, we can do that. But I think just the two that we have already moved and contracted, show that the 200 series rigs in the Permian Basin, except for the little bit of softness, I mentioned a second ago on the call, is pretty much held up.
Dave Storms: Okay. Perfect. Thank you. Are you seeing any customers not want to do the conversion just because the 200 spec rigs meet all their €“ everything that they need?
Anthony Gallegos: Yes. We are. And in fact, we are seeing the opposite too that the one rig that we converted back in November has been working for an operator. It’s one, if not the biggest private operator in the Permian Basin. They love everything about that rig. I don’t think they would ever let it go. But when we made the pitch to them that look, okay, if you want to drill an extra couple thousand feet of lateral, here is a rig that you know what, you love it, it’s a well performing rig. We can make this enhancement to it, but you are going to have to pay for it. And they said yes, let’s do it. And that was the first one we did. But no, they are these €“ the 200 series rigs, they are super-spec, they are pad-optimal, three mud pumps, 4 Gen.
They are online controlled. They are Ferraris. And they are very, very fast moving. So, you think about work, for example, in the Midland Basin, where we are drilling 10-day wells. And we drilled four wells on a pad and we moved, rig move time is very, very important to the customer. So, they have their advantages, their customers that love them, and we are just given them an opportunity to love them even more, but we have to get paid for it.
Dave Storms: Absolutely, that’s great color up. One more if I could, and I know you mentioned that you are not expecting a mass exodus from Haynesville. But you did mention that you are expecting to see other operators move out? Are you seeing any competition for logistics or the machinery equipment needed for the transport moving to Permian?
Anthony Gallegos: No, we haven’t. And we haven’t yet, Dave. One of the things that that Philip and I are looking at for example is, trucking cost. If we were going to see a mass exodus of rigs, out of the Haynesville going into the Permian, you would expect trucking to become tighter and the cost to go up. And in fact, we were talking right before the call the latest rounds of bids, the costs are actually less than the two that we have €“ the one that we have already moved and the one that we are about to move. So, it gives me a little bit more confidence that there is just €“ there is not a mass exit of rigs out of the Haynesville.
Dave Storms: That’s perfect. Thank you very much.
Operator: The next question comes from David Marsh with Singular Research. Please go ahead.
David Marsh: Thank you for taking the questions. Good morning guys.
Anthony Gallegos: Hi. How are you?
Philip Choyce: Good morning Dave. Thank you.
David Marsh: So quickly on, I really appreciate the commentary about reducing leverage here as we move forward. I know you guys just took an opportunity in September to push out the ABL to 2025. But as the numbers come in, and leverage continues to decline, would you potentially take another look at that and maybe revisit rigs on that agreement?
