So integration is going very smoothly. We’re already talking about synergies. We have a high level of confidence in hitting the synergy number there. And so I got to start with that and just say thanks to everybody and our well completions team for everything they’ve done so far to get us where we are really excited about how this is going. The market is another thing. So we’ve had a softening in the market just really kind of tied to the overall rig count in the industry. And like I mentioned earlier, we’ve had frac spreads that are bumping up against drilling rigs with the softening in the market. And so it’s going to take an increase in drilling activity to really move that. Now when it comes to the pumps and the equipment and the fleet that remain stickier in the softer market, it certainly is weighted to the primarily natural gas fuel systems, whether it’s dual fuel or other.
And so that certainly caused a bifurcation in the market. When you look at our well completions equipment, roughly 2/3 of that is primarily natural gas powered. And so we’re in a really good position, and it’s why we’ve seen a softening in the market, but certainly not any more than that. So really excited about how our teams have done through this period, even with the white space that we’ve seen in the third quarter, that’s going to adjust itself. If you look forward, we are going to see maybe a little bit of slowdown towards the end of Q4 based on the holiday period, maybe a little bit of winter baked into some of those projections just in case we get some cold weather. So we’ll see how some of that plays out. But I’m very upbeat for what 2024 can hold going forward there and excited for what we can offer to the customers.
Stephen Gengaro: I know it’s been — well, it’s been 2 months now, I guess, since the deal closed. But has there been anything that has really stood out as you’ve kind of looked at the NexTier way of doing business on the completion side that surprised you, it’s materially different? Like anything that’s really jumped out since the merger closed that has been an upside or downside surprise for you?
William Hendricks: I’m going to start with the people. The people are great. We’re excited to have them as part of the team. And they’ve got a lot of energy. There’s a lot of excitement in trying to pull everything together and everybody is just doing a fantastic job, a lot of high-quality individuals. And so that’s where it starts and really excited about that. We were already familiar with the equipment. We understood what NexTier was doing in terms of integrating services, whether it’s wireline, last mile logistics, the power solutions with the natural gas, CNG and blending at the well site. All these things have made next year successful, and we’ve watched that over the years. At Patterson-UTI years ago, pre-COVID, we actually looked at adding wireline to our frac spread because we understand and we get it.
You don’t want $50 million worth of frac waiting on $1 million of wireline at the well site. And so that integration is important to efficiencies and just continuity of service and to keep pumps pumping. And so the ability to pull all this together and then bring those integration pieces into frac spreads that didn’t have it previously is powerful for this business, so excited about that.
Operator: We’ll take our next question from Derek Podhaizer at Barclays.
Derek Podhaizer: [Indiscernible] to ask about the synergies. I know the guide sounds like you reached over $100 million by the end of the year. It seems ahead of schedule. Maybe can you break that down to the different categories you discussed? But now I believe there was SG&A on the cost side, you have the revenue synergies and then you had some nonpayroll spend. Maybe just an update there and to help just expand on that synergy number?
Andrew Smith: Yes. So I would say that as we go through the fourth quarter, we are looking at right now on the synergy side. The SG&A synergies are probably about, again, 1/3 of kind of the run rate that we’ll see and then probably about half of it is probably coming out of procurement at this point in time, and then the rest is in the integrated revenue opportunities.
Derek Podhaizer: Got it. That’s helpful. And then on the merger expense side, I believe it was $80 million, and I know you just posted $70 million. I thought there might have been a split between the expense side and the CapEx side. Can you just update us there? Clearly, there’s a benefit to closing earlier, you’re able to capture a lot of those onetime costs already. Should those all be fully recognized within this year? Or will there be any leak over into 2024?
Andrew Smith: I’m sorry, you were asking — I got confused you were asking about expenses and CapEx?
Derek Podhaizer: Yes. I think the original $80 million onetime expenses, I thought that was split between some OpEx and CapEx, but you’re seeing that $70 million number this quarter. Will that $80 million fully recognized in 2023, maybe just some updates on if it’s OpEx, CapEx? I thought it was 65:15 split for the OpEx, CapEx.
Andrew Smith: Yes. I mean so a lot of it — so some of it will be — will leak into 2024. And the reason for that is, again, as you go through some things, until you have defined plans on what you’re going to do around certain items, you’re not really allowed to sort of recognize those expenses. So they will slip a little beyond 2023 and into 2024 as well.
Derek Podhaizer: Got it. And then just a quick follow-up on the drilling side. You’re obviously coming off the bottom, but it seems slight activity has been a little bit more lethargic than people originally thought it was going to be. Can you maybe expand on the privates, the publics, maybe the different basins, what surprised to the downside? I know you guys are constructive on ’24, you went over that. But why is the thing that we’ve been limping into year-end? Just maybe some more color around that?
