Derek Podhaizer: Got it, okay. That’s helpful. Just one more from me, if I could. I know you’re not going into e-frac markets yet, but I just wanted to get your updated thoughts on that. Are you waiting for that technology to be de-risked? The other day, the biggest pumper out there was talking about there’s obviously an adoption curve that everyone is trying to get up on. Would just love your take on what e-frac is, how you’re looking at it, how you’re being looking at the different examples of it, your view on coming up the learning curve, and maybe some of the challenges that some of your peers might face as they look to scale electric frac.
Ben Palmer: We’ve heard examples of companies or situations where it’s been a struggle. We’ve watched it, we’ve studied it some. It’s not a tremendous focus for us, but we do have an opportunity just to take some–a pump, that we’re going to be able to partner with a vendor to be able to use that and do some testing for both them and for us, and that will help us along the learning curve, and them as well. We still at this point–obviously the new fleet that we have coming in early this year is dual fuel. I think the transition, just like other transitions of technology like this, will take a period of time, so there’s going to continue to be, I think, plenty of demand and strong demand for traditional diesel equipment more so–you know, the DGB, and so we’re moving in that direction.
I foresee for the foreseeable future that the majority of our spending will be on the traditional equipment. I don’t see a shift in the near term for us to go to e-frac, but we are experimenting with it. We do want to learn about it. There may be some other applications on ancillary equipment that may benefit us, but in terms of a full fleet, for us that’s a little bit down the road, I think at this point.
Jim Landers: Yes, and Derek, since we don’t have firsthand experience, what I’m about to say may be wrong, but based on everything we’ve heard, the economics don’t yet work, so something else to think about.
Derek Podhaizer: Got it, and one more, if I could just squeeze it in. Guys, can you give us a refresh on how many Tier DGBs you have now, or dual fuels? Can you give the breakdown of those 10 fleets in the different categories?
Jim Landers: Sure, let’s see. It’s always a moving target. Let’s see. Our active horizontal fleet has five ESG-friendly fleets, and that’s Tier 4 DGB, Tier 2 DGB plus five Tier 2 diesels. By the second quarter of 2024, we expect our DGB–or I’m sorry, our ESG-friendly composition to be closer to 75%.
Ben Palmer: We have two Tier 4 diesel, they’re not DGB but they’re Tier 4s, so it’s kind of a combination. So about half today of our horizontal fleets are very much ESG-friendly, and we expect that will move closer to 70% sometime in the next 18-plus months.
Derek Podhaizer: Got it, very helpful. Appreciate all the color. I’ll turn it back.
Jim Landers: Sure.
Ben Palmer: Thank you.
Jim Landers: Thanks Derek.
