Richard Barker: The CapEx can be very lumpy, right. So, from a CapEx perspective, quarter to quarter, it can be very lumpy. I think that obviously we’ve maintained guidance for the full year from a CapEx perspective. So, I think, obviously Q1 was elevated, and so if you took the average of the remaining 3 quarters, obviously, that’s down from where we were in Q1. So, we’re not going to provide specific guidance, if you will, for Q2, except for the fact that we’ve maintained full year guidance on the CapEx side.
Doug Becker: Yes, fair enough. And Richard, maybe speaking about the guidance, is it a fair way to characterize that the midpoint is still the most likely outcome, or is it shading one way or the other? I understand there’s a lot of different paths to get to the upper end or lower end.
Richard Barker: Yes, it’s a very good and a very fair question. Obviously, it’s still early in the year. We feel very good about our range. There’s various moving parts about that. So, midpoint that’s a great number for sure, but there’s various drivers that could impact guidance, both positive and on the other side of the equation as well. So, we’re obviously focused on trying to bring these 3 new contracts or startups online as soon as we can, and obviously that will have a nice impact on the full-year financial performance as well.
Operator: [Operator Instructions] And we will take our next question from Noel Parks with Tuohy Brothers.
Noel Parks: Just had a couple. Just thinking about the negotiation process, I’m just wondering how you’re seeing the tenor of the negotiations at this point. In particular, I’m wondering just in terms of contract terms, I guess, just a basic question, when you’re talking multiyear terms, are these essentially all flat for the 3 years? Are there options for escalation throughout them? Is that something that customers are receptive to?
Blake Denton: Yes, I think it varies. We have, I think, some instances where locking in a low headline rate is a really important driver for certain customers, and we have others where locking in a very specific rig spec and letting the market dictate works as well. And so, I think it varies. I think, generally, obviously, negotiations in contract terms run in line with dayrates. They’re all very highly correlated. And I mentioned last quarter, and I guess I would repeat that we see this as a balanced market going forward. It’s not really a feel of scarcity. I know some have called that that day is coming very soon. Perhaps that’s correct. We see it probably more as a balanced market through next year. It’s one where when a customer needs a rig, generally a customer can get a rig, but it’s also one that’s supportive of high utilization and gradually rising dayrates for the contractors.
I think it’s a very healthy market. And so, if you extrapolate from that color into the nature of the negotiations, it’s in line. There’s different push points in different negotiations.
Noel Parks: That’s a really helpful characterization. And to the degree that, of course, everything is in process, if you were going to point to 1 thing for whatever timeframe, either before the end of next year or looking beyond that, is there any particular lever where you think you might have the best opportunity to pull it, whether it is the rate, the term, the equipment? So in other words, what could be the next piece of the puzzle that could, in theory, drive things higher from here, would you say?
Blake Denton: Yes, it’s a good question. We waited for a very long time for a $500,000 rate to be announced, and that’s happened now. So, that’s a threshold. On average, I think, the average rates are still below $500,000, but I think you’ll, of course, continue to see rates in that range being announced. I think probably the perhaps faster moving dynamic over the next year to 18 months is going to be term where I think you’re going to see average term continue to increase. And I think the average term of the open public tenders is representative of that. And of course, you’ve heard us and our competitors talk about all of the direct negotiations that are out there, and there’s a number of those that carry significant term as well. And so, I think probably we see improvement in both rate and term over the next — through this year and next year.
Operator: And there are no further questions at this time. So, I would now like to turn the conference back to Mr. Ian MacPherson for any additional or closing remarks.
Ian MacPherson: Thanks, everyone, for joining the call today. Have a great day, and we’ll look forward to speaking with you again next quarter. Goodbye.
Operator: Ladies and gentlemen, this concludes today’s call, and we thank you for your participation. You may now disconnect.
