Jim Landers: Sure, that’s fair.
Ben Palmer: You always ask good questions.
John Daniel: All right, guys. Take care. Thanks a lot for including me.
Jim Landers: Okay, thanks.
Operator: We’ll move next to Derek Podhaizer at Barclays.
Derek Podhaizer: Hey, good morning. I just wanted to get your thoughts on attrition. I mean, I don’t think we’ve really seen attrition in an upcycle if we look over the past couple decades. You’re obviously bringing in a new fleet, you’re going to take one off to the sidelines and refurb it, and I think that’s a form of attrition. Pumps staying on the sidelines longer, could maintenance swings have extended out due to supply chain, maybe beefing up your current fleet going from 50,000 horsepower to maybe 60,000-plus. Would just love your take on what attrition is today, all the different parts of it, because I think that’s one thing that’s being underestimated by the broader market in why frac supply is going to stay tight through 2023.
Ben Palmer: This is Ben. We obviously don’t have direct visibility into our competitors, we can only speak to what we see, and yes, the activity levels are very high. Much of the work is, or a lot of the work can be very, whatever, damaging, difficult on the equipment. As I indicated, in the fourth quarter we had some nice work that wasn’t quite as difficult as some previous quarters, so that can vary some from quarter to quarter. Our guys are doing great work trying to forecast out if this amount of activity with this type of work, when might the appropriate time be to take a fleet either completely out of service or send it off for refurb, and things like that. I think there is some belief, too, from some of our key operating personnel that attrition may be being underestimated, that maybe it’s going to be difficult.
Now there is–as I indicated earlier, there is a lot of spending going on, there is a lot of new equipment orders amongst our peers, but there’s a lot of discussion about the fact that they too are not going to–they’re not striving for net additions to their fleet, so that’s implying that they plan to take some of that equipment out of service. But it certainly could happen. With what you’re saying, it could be that it’s being underestimated. I think everybody, or most everybody recognizes that it is real, and I think supply will remain tight. I guess the question being, how tight might it be if the attrition ends up being even higher? Yes, it will be great for those of us that are still working.
Derek Podhaizer: Got it, that’s helpful color. Do you guys–a question on maybe some of your private peers. Are you seeing any new entrants coming in, just given where economics are, or are you seeing some of your privates maybe leaving? I know there’s been a few acquisitions. Just a sense on the private market, because I also feel like there is this narrative around private pumpers coming into the market and over-building, like we saw in past cycles, but would love to hear your view on this.
Ben Palmer: We’ve heard some examples of some privates coming on, not to any large degree. What we tend to hear when we ask the question is that private equity is not coming in, in a big way, so that’s great. That to my recollection has been the issue in the prior two or three strong cycles we’ve had, that’s when private equity comes in big and–so. If they more or less stay on the sidelines or don’t come in, in a big way, hopefully we’ll be able to try and keep supply and demand appropriately balanced.
