Kevin Neveu : Yes, a little hard to predict. Certainly, we’ve seen an unusual level of discipline among the U.S. drilling contractor industry. And it’s mainly five of us that are all public companies all focused on returns, also in targets around margins and day rates. It’s pretty constant theme. So we don’t expect that discipline to dissolve in a flattish market or even in the softer market. Don’t expect it to dissolve. Certainly, there are — there’s nobody in that group right now that is facing growing concern risk or trying to put themselves up for a transaction. So we expect to see, let’s say, pretty firm discipline. And we’ve seen really good discipline over the last few months. We’ve got around limiting the number of potential rigs for upgrades and setting high return thresholds.
So it just feels like that discipline is going to stay in place, and we’re watching it closely. And as I made in my comments through, if something variable happens, if we get into that material slowdown. But I think in a modest slowdown, maybe the renewals aren’t at 42,000, maybe they’re at 38,000.
Andrew Bradford : Right. Perfect. I appreciate that. And one of the prior questions related to the term that was on those contract rollovers, did you say a number? Or did you give a range on that? Or am I just inherent…
Kevin Neveu : We didn’t bake in the term contract over as updated that was currently?
Carey Ford : Yes. Those will be updated in the press release. But those — the contracts that Kevin referenced are anywhere from six months to two years.
Kevin Neveu : Yes in more group.
Andrew Bradford : Okay. And then last question for me, just related to the to the CapEx guidance, Carey. $30 million for recertifications. I think $17 million for the Canadian rig, I think you said $20 million per pipe. Is that all — that adds up to about $67 million. And is that all sort of the upgrade/expansion capital?
Kevin Neveu : So the two buckets we have are maintenance, and then we have upgrade and expansion in the other bucket. The Canadian rig would go in the upgrade bucket. And the rest of the capital that you identified, so the recertifications and the drill pipe would go into maintenance. But the way that international maintenance works is since we have fewer rigs running, we will typically buy both drill pipe at the beginning of a contract when the contracts roll over, we’ll buy new drill pipe. So it’s really front-end loaded. . And that’s why on this explanation of the conference call, we separated out that international drill pipe purchase the recertifications and then the Canadian upgrade has been contracted capital spend opportunities that were different from 2022. If you take those out, it’s pretty much flat year-over-year.
Andrew Bradford : Okay. And sorry, I lied, I have one more question then. Of the expansion capital that you outlined in the budget for 2023, what portion of that would be committed capital today?
