Eric Long: Yes. Selman, this is Eric Long. I’m just kind of hit at the high-level. Yes, we saw, what, 1 point, 1.5 points of degradation in gross margin. And in the scheme of looking at the magnitude of our gross margins, that to me is kind of almost round off air. We’re seeing some softening — and I’m not going to say softening. The trajectory is starting to stabilize on some of the bigger ticket items. We’ve seen softness in both gasoline prices, which constitute a pretty large component of some of our variable expenses. We’re seeing upward pressure on labor still. We’re seeing some ancillary support inventory, some inflationary pressures. But I think we structured our contracts where we’ve got CPI escalators in there. And I think that we’ve been able to do a pretty good job of literally matching inflationary pressures with our revenue inflation and in fact, actually outpacing it.
So I think looking into 2024, you’re not going to see material deviations one way or the other, materially up, materially down. I think it’s something that our guys manage on a day-to-day, week-to-week, quarter-to-quarter basis to try to make sure that we’re able to capture efficiencies and productivity and try to minimize any of the inflationary pressures that we have. So a long-winded way to say, we don’t expect a lot of volatility and variation coming up beyond 2023 into 2024 and our crystal ball after that kind of goes out the window a little bit.
Selman Akyol: Got it. You guys showed nice improvement in terms of your month-to-month contracting, I guess, on a year-over-year basis. Can you say where you potentially could end up 2023 at, as we looked at it?
Eric Scheller: Hey Selman, it’s Scheller. Yes. We’ve made tremendous efforts in month-to-month. We continue to like to see that go down. I like the nice stable cash flow that Mike goes, as long as continues and as low as I can get it, that’s where I’d like to go.
Selman Akyol: Okay. And then last one, can you — in terms of electric compression, can you just say how much horsepower you got dedicated to that now? I know it’s still a long, long road to significant numbers, but just curious where you ended up at.
Eric Long: Yes. We have very little pure just electric compression. We talk about our dual drive, which allows us to run electric or natural gas. We continue to work with inbound requests from customers who are exploring the concept. We’ve actually deployed multiple units out in the field under longer-term contracts. And I think our commentary in our earnings script along the lines of this is going to be an evolutionary development. This is not something that’s going to happen overnight. It’s going to be driven by regulatory or tax implications. I think people are starting to figure out that green ain’t necessarily cheap and green ain’t necessarily reliable, so to speak. So we remain optimistic longer-term on the optionality it provides USA to the ESG storing.
