Chris Wright: Thanks.
Operator: The next question is from Marc Bianchi with TD Cowen. Please go ahead.
Marc Bianchi: Hi, thanks. I guess another one on kind of the guidance and pricing commentary. I mean if pricing is boring as you say. It sounds like the decline implied by your fourth quarter, your guidance for the year for fourth quarter is all customer budget exhaustion. It would seem like first quarter EBITDA should be able to get back to third quarter levels. Would you agree with that?
Michael Stock: Yes, obviously we don’t guide in detail for the quarter upcoming. But I mean, in general, if you had a flat market, your first quarter does have some weather effect compared to your summer quarter. So yes, if you had a dense flat market, your first quarter will be slightly lower than your summer quarters. But that’s where we are. But again, I think next year is going to be slightly better than this year in total.
Marc Bianchi: Okay. The other one was on Liberty, power innovation, what is the spending that you’re anticipating over maybe in 2024 and beyond? And how should we think about kind of the efforts to supply your own fleet versus perhaps supplying to third-parties?
Michael Stock: So we have a third-party – they do some third-party deliveries here. But the bulk of the, probably the first year, a year and a half worth of growth of LPI will be to support this digi rollout and our expansion and our improvements in our natural gas usage across the rest of our fleets. It’s an exciting business. And yes, we’ll talk more about it in our January call. And we’ll talk about spending as we sort of look at that market going forward. But again, the vast majority will be supporting our fleets in the initial point.
Marc Bianchi: Okay. Any bookends around the spending just to maybe set some early expectations for people?
Michael Stock: We’ll chat about that in January, I think that’s the best way to look at that one Marc.
Marc Bianchi: Okay. Okay. Thanks, Michael. I’ll turn it back.
Operator: The next question is from Keith MacKey with RBC Capital Markets. Please go ahead.
Keith MacKey: Hi, good morning. Just wanted to follow-up a little bit on the digi or electric fleet contracts. Some in the market have talked about those as being sort of multiyear type take-or-pay contracts. As you fold in more of the digiFleets, what have you learned about the contract structure for those, would you agree with the multiyear type of contract and if so, if not, how is the contract structure generally evolving?
Chris Wright: Yes, look, if you’re going to build the new fleet, deploy new capital that’s different than deploying existing equipment. So yes, those are multiyear agreements.
Keith MacKey: Okay, perfect. And maybe if we could just talk a little bit about the sand market, things have come off of peak levels. But is what you’re seeing for sand demand in the Permian roughly commensurate with well completion count, or are you seeing other things, other trends like higher intensity, for example, maybe acting as a buffer on sand demand overall?
Chris Wright: Yes, I think overall, certainly, it’s relatively well aligned with completion count. That’s certainly a good way to think about things. We continue to see movement in amount of sand pumped in a well, we continue to have operators who are experimenting with alternatives to current design. And so that will have some modest implication, but at the high level, you’re absolutely right, thinking about it just well count to volume consumed.
Keith MacKey: Okay. Thanks so much.
Operator: The next question is from Dan Kutz with Morgan Stanley. Please go ahead.
Dan Kutz: Hi, thanks. Good morning. Maybe to just piggyback on that last line of questioning, but broaden it out a little bit. So outside of frac and also outside of LPI, could you just comment on what some of the other businesses like sand and PropX ST9 wireline just directionally, whether those have been, kind of moving consistent with the frac and LPI earnings or maybe moving a little bit lower and appreciating that the benefits of vertical integration will be an earnings driver for the overall business. But just if you were to isolate those other businesses, anything you could comment on in terms of trends that you’ve seen there?
Chris Wright: Yes, look you made a key comment, you could isolate – like we never isolate those businesses, because we’re in them because they make our core business better. They are actually good businesses in their own right – Michael if he wants to comment any more on that. But yes, we are in those businesses because they make the whole system work more efficiently. We have a Liberty wireline crew and a Liberty frac fleet. We have meaningfully lower downtime than when we have a Liberty frac crew and a third-party wireline. So look, our wireline is – and I think we mentioned in the release, it’s now ranked number one by customer services in quality. So that makes that a good business in its own right. But even better, it makes the whole Liberty wireline and frac operate more efficiently, deliver faster results to our customers and better profitability to us. Michael, anything you want to comment on.
Michael Stock: The business leaders of those teams that focus – are focusing on those businesses and do an incredible job, you know, and I would say, you have a decent amount of competition between all our business leaders. And at the moment, I’d say they all racing across the line, neck-and-neck, right. They’re all kind of travelling about the same pace and doing very, very well.
Dan Kutz: Right, that all makes a lot of sense. Thank you. And then maybe just a question on how debt pay down ranks in the capital priority list. I know, you guys knocked out the term loan earlier this year and then you guys paid off a decent sized chunk in revolver and a third – of the ABL in the third quarter. But just wondering if there’s anything that you could share in terms of whether you think that you’ll maybe just kind of continue to chip away at the ABL balance or if there’s potential for knocking out a big slug, and just kind of how does that back in the capital priority list relative to CapEx and buybacks?
Michael Stock: Yes, we have very small net leverage. So we’re very, very comfortable with debt levels of where they are at this present point in time. It also really – our ABL level floats with our other uses of capital in that given quarter.
Dan Kutz: Fair enough. Makes sense. Thank you both. I’ll turn it back.
Chris Wright: Thanks.
Operator: The next question is from Saurabh Pant with Bank of America. Please go ahead.
Saurabh Pant: Hi, good morning, Chris and Mike.
Chris Wright: Good morning.
Michael Stock: Good morning, Saurabh.
Saurabh Pant: Thanks. I guess I’ll start with a little bit of more color on the digi side because clearly, there’s strong demand over there. You will be at full fleet by the end of the year. Six by the end of January. I’m sure there’s more demand. But when you look at the demand that’s out there, right. I’m sure you’re not trying to meet every demand point, right? You need to keep your CapEx in mind. You need to keep your returns in mind the right contract structure, customers all of that. How do you think about how much potential demand might be out there if you were to not be disciplined just a theory, right. I’m just trying to see the demand sent out there. How would you characterize that?
