Christopher Baker: Yes. Steve, great question. I think, look, as you well know, operating leverage is kind of like gravity. It always works, right? And that’s what we saw in the Rockies this quarter. Candidly, we saw some of that last year. We’ve got a great team and a great presence in the Rockies and that really spans all the way through the Bakken, right? And so the reality is at this rig count and this activity base across most areas, operating leverage or negative operating leverage can really impact a given [indiscernible] or a given basin. And that’s what we saw in the third quarter. We had more white space in the Mid-Con and the Southwest segment, especially around the Haynesville and the Eagle Ford than maybe we anticipated.
Negative operating leverage dampered and put a damper on those margins, whereas in the Rockies, we saw a lot of activity, and we were able to redeploy some assets and mobilize some assets to cover off on additional work and see margin expansion with that operating leverage. The Rockies is also, to your point, more impacted by seasonality and weather. Last year in 2022, the Rockies performance in Q4 was stellar. It was as strong as I think we’ve ever seen it and that was really due to pent-up demand for our technical services and rentals business, in particular, especially on the production-oriented side of fishing, et cetera. And so look, we’ll see how the fourth quarter plays out but we’re very confident 2024 plays out exceptionally well in that business.
Steve Ferazani: Great. And if I follow up on the Northeast/Mid-Con, I know it’s only early November, so it’s early to be having these conversations. But the recovery in natural gas prices, the sort of interest in the additional LNG export capacity that’s coming, trying to get your sense in your conversations with customers so far, and I know it’s early. With the new contract year, when are you expecting to see some sort of a pickup in those plays? And are you confident right now in a pickup in activity in those plays?
Christopher Baker: Yes. Great question. What I would say is there are two distinctly different markets still tied to the LNG story and natural gas story. Clearly, the Mid-Con and the Haynesville specifically, we’ve seen a lot of rig count roll there so operators have ducked more wells as we’ve gone through 2023. And we’re definitely seeing a slight — I’ll categorize it as a slight pickup in completions activity in Q4, and we’re having discussions in the Haynesville around rig adds in 2024. I don’t think we see the same pickup in the Northeast in Q4 that we do in the Haynesville, partially just due to winter weather, seasonality, et cetera. But look, we’re bullish when it comes to the natural gas outlook. We talked about this at your conference previously.
2024, if you look at the forward strip is highly constructive on the gas side, and we’re hearing more and more positive feedback and outlook from commodities traders and others that 2025 is actually looking very strong at this point. So I think we’ve got some wind in our sale when it comes to the gas side of the business.
Steve Ferazani: Okay, thanks Chris.
Christopher Baker: Yes, appreciate it, Steve. Thank you.
Operator: [Operator Instructions] Next question from David Marsh with Singular Research. Please go ahead.
David Marsh: Hey guys, thanks for taking questions. So just touching on the guidance. Previously, you guys had provided both revenue and EBITDA margin guidance. The last revenue guidance you had provided was a range of $900 million to $950 million for the year. Is that still a range that is achievable at this point?
Christopher Baker: So I think, David, I’ll jump in and Keefer can jump in as well. This is Chris. Thanks for the question. What we updated in our prepared remarks was full year guidance. And so the full year adjusted EBITDA guidance and EBITDA and cash flow is what matters, right? So it’s $140 million to $150 million. And so when you think about on a year-to-date basis, we’re approximately $114 million. That guidance didn’t really change on a full year basis over the last quarter, right? And so the midpoint of the full year is essentially equal to our prior guidance and consensus. So nothing’s really changed there. We just didn’t update the revenue number.
