ProPetro Holding Corp.

Good day and welcome to the ProPetro Holding Corp. 4th Quarter 2020 Conference Call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing star, then zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on a touch-tone phone. To withdraw your question, please press star, then two. Please note this event is being recorded. I would now like to turn the conference over to Sam Sledge, Chief Strategy and Administrative Officer. Please go ahead.

Thank you. Good morning, everyone. Welcome to Petro Holding fourth quarter and full year 2020 earnings conference call. Currently, all participants are in a listen-only mode. Question and answer session will follow management's prepared remarks. If anyone should require operator assistance, During the conference, please press star zero on your telephone keypad. As a reminder, conference is being recorded. Thank you, and good morning. We appreciate your participation in today's call. With me today is Chief Executive Officer Philip Gobe, Chief Financial Officer David Shorlimer, and Chief Operating Officer Adam Munoz. Yesterday afternoon, we released our earnings announcement for the fourth quarter and full year 2020. Please note that any comments we make on today's call regarding projections or our expectations for future events are forward looking statements covered by the Private Securities Litigation Reform Act. Forward looking statements are subject to several risks and uncertainties, many of which are beyond our control. These risks and uncertainties can cause actual results to differ materially from our current expectations. We advise listeners to review our earnings release and risk factors discussed in our filings with the SEC. Also, during today's call, we will reference certain non-GAAP financial measures. Reconciliations of these non-GAAP measures to the most directly comparable GAAP measures are included in our earnings release. Finally, after our prepared remarks, we'll hold a question and answer session. With that, I'd like to turn the call over to Philip.

All right. Thanks, Sam, and good morning, everyone. Good morning. Well, after successfully navigating the onset of the pandemic and the oil price collapse in 2020 and seeing hopeful signs of economic recovery, 2021 started to look a lot brighter. As the year began, activity picked up, oil prices were approaching pre-pandemic levels, and the vaccine rollouts had started. What could possibly go wrong? Then last week, an epic cold spell put a deep freeze across a large swath of the country, severely impacting people's health and safety, as well as the ability to conduct operations, particularly in the Permian Basin. It was not exactly the start to the year we had hoped for. However, some things never change, like first responders answering the call for help and the resiliency of our employees to stand ready to work with our partners and customers to respond to the needs of our community and the continued need to supply energy to our larger community. We are thankful for that dedication. I would also like to once again thank all of our employees for their continued efforts in following health guidelines to promote a safe work environment not only for themselves but also for our customers, supply chain partners, and other stakeholders. We appreciate our medical workers and first responders here in the Permian Basin for their selfless sacrifices they make day in and day out to ensure our well-being. Turning our attention to the fourth quarter, we benefited from a continued, steady increase in customer activity levels during the period. We were also pleased to set new operating efficiency records for pumping hours per day and downtime. Our ability to quickly redeploy high-performing crews combined with further efficiency enhancements made a significant difference in our sequential financial results for the fourth quarter, and we expect activity levels to continue to increase as we move through 2021. Additionally, the team continues to focus on disciplined deployment of our assets to ensure we only pursue profitable work that is cash flow positive. While we'll continue to have excess equipment availability for deployment, We will not reactivate equipment without adequate pricing, efficiency targets, and expected operating margins. This discipline is critical to the success of the oilfield service industry. Our best-in-class operational and safety performance was on full display yet again in the fourth quarter, and I want to thank all of our team members for their relentless focus on executing at the wellhead. Operational efficiency is the most important differentiator in oilfield services, and customers remain focused on utilizing the highest quality crews with the most reliable equipment available in the industry. Our proven track record of quickly and effectively responding to the needs of our customers continues to differentiate ProPetro in the marketplace. Our customer-focused culture has allowed us to maintain market share at consistent levels throughout 2020, which we expect to continue into 2021 while also remaining cash flow positive. As the macro environment improves through the remainder of this year, we remain fully committed to improving margins and creating shareholder value. During the fourth quarter, we were pleased to generate free cash flow once again which helped grow our cash position to almost $70 million at year end, a more than 25% increase from the end of the third quarter. Looking back at the past year, I'm extremely proud of how our team came together to work even closer with our customers and as we managed through one of the most difficult times in the history of the energy business. We quickly adapted to a new environment by lowering our costs to ensure that our customers continue to operate at a financial level that was appropriate for them. EMP customers benefit from service partners that share in their interest in pulling through the downturns together as well as making investments for a more efficient and sustainable supply chain. With the downturn now transitioning to more of a recovery, the impending reinvestment cycle will further separate winners and losers in the U.S. pressure pumping industry with only the highest quality service providers able to invest in next generation lower emission equipment as a result of their customer focus and mutually beneficial relationships. Additionally, our debt-free balance sheet allowed the company to remain strong during the COVID-19 and oil price crisis of 2020. Our conservative balance sheet and capital discipline served the company well in 2020 and his position pro-Petro to continue to succeed in this ever-changing energy industry landscape. With that, I will turn the call over to David to discuss our financial performance.