Christopher Baker: Yes. I think, I sure hope they are, candidly. I think that’s one of the benefits we’ve seen from our customer base, customer selection and diversification strategy. The reality is you have to be, as you well know, well positioned from a safety perspective, job execution perspective, ability to bundle technologies and drive performance in the field to work for a lot of the blue-chip customers that we work for today. If you think about our customer list back in 2018, 2019, we would have worked for over 1,200 customers. This year, we worked for just over 650 unique customers. And so we’re definitely seeing that. We’re seeing a high grading, if you will, of customer opportunity set across the board. And so as a business, you have to be positioned to work for top 10, top 20 operators by rig count.
And so thus far, and this kind of ties back, I’m a little remiss, in part of Luke’s question. The reality of it is, thus far, consolidation amongst our customers, as we all know, has been accelerating, and we think that’s a net positive for KLX. By and large, our larger customers have been the consolidators. And so you see some transitory impact where a given customer acquires a smaller customer that’s running two rigs and lays down two of the three. But the reality is in our mind and what we’re seeing through the integrations is that it will open opportunity set for KLX to expand our share of the given customer spend and wallet and pull through some of our technologies. So we actually think there’s some upside. And I guess on the last point is, yes, we are very proud of the safety results that our team generated last year.
I do think that it comes back – the safety issues come back and the insurance requirements come back to burden some of the smaller mom-and-pop type operators. But of course, that takes some time to work through the system, right?
John Daniel: Right. Fair enough. You mentioned the ERT. How does that – is that just proprietary to you guys on your own equipment? Or do you – can you sell it? Is there an opportunity to – what’s the strategy there?
Christopher Baker: Yes. No. Look, we’re pretty proud of the results that we’ve seen tremendous customer adoption, especially now in kind of one basin specifically, and we’re seeing that expand to other basins. To date, John, we’re holding that in-house, and we’ve only run that tool on the end of KLX coil. The reality is – I’m sure you’ll ask, we were staffed for 13 to 14 units through Q4. We’ve now expanded four of our units to ultra-deep capacity, so 30-plus-thousand foot of coil. We have the ability to expand seven to eight for really short dollars. And so we see a ton of market opportunity just on the end of KLX coil. And so for the time being, yes, we’re running it as well as just our overall proprietary BHA on our KLX extended reach coil.
John Daniel: Okay. Great. And then the last one for me, the impressive numbers on the sort of quarter-over-quarter adoption of the dissolvable. Can you say, is that one or two customers just going big? Is it concentrated in a specific basin? Just any additional color would be helpful. That’s all I got.
Christopher Baker: Yes, I appreciate the question. I guess the short answer is no, it’s not one significant customer. Every customer is significant. But it’s been pretty widely dispersed across, I would say, three to four basins at this point in time across multiple customers.
John Daniel: Thank you very much.
Operator: This concludes our question-and-answer portion of today’s call. I would now like to hand the call over to Chris Baker for any concluding remarks.
Christopher Baker: Thank you, operator, and thank you once again for joining us on the call today and your interest in KLX Energy Services. We look forward to speaking with you again next quarter.
Operator: Thank you. This will conclude today’s conference. You may disconnect your lines at this time, and thank you for your participation.
