ProPetro Holding Corp.

Good morning, and welcome to the ProPetro Holdings First Quarter 2021 Earnings 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, President. Please go ahead.

Thank you. Good morning, everyone. 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 first quarter of 2021. 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 at 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.

Thanks, Sam, and good morning, everyone. We were pleased to see a continued steady increase in customer activity levels during the first quarter as global oil demand continued to recover in support of an improving economic backdrop. We expect relative oil price stability by COVID-19 vaccines rollout, further allowing more people to be able to resume the types of activities they were accustomed to prior to the onset of the pandemic. On that note, I want to once again thank the healthcare workers and first responders here in the Permian Basin for their tireless efforts over the past 14 months to help ensure the health and safety of the communities in the region. Partially offsetting the increase in customer activity levels we saw during the first quarter was the impact of the severe winter storm in February. The result was eight days of lost revenue and certain costs that were unable to pass through to customers while our fleets were idle. Additionally, we incurred costs and expenditures related to fleet reactivations earlier than previously expected. While David will discuss the financial impact of the winter storm in more detail in his prepared comments, I want to commend the ProPetro team for remaining nimble and quickly and effectively responding to our customers' needs and for protecting our competitiveness in the marketplace despite the challenges we faced. Operational efficiency and equipment readiness remain key differentiators in the oilfield services, as customers focus 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, albeit in a mutually beneficial manner, continues to differentiate ProPetro in the marketplace. During the first quarter, our best-in-class execution at the wellhead was on full display as we drove our efficiencies to new heights through close collaboration with our customers and other service providers. We increased our fleet count during the first quarter to an average of 10.3 effectively utilized fleets from an average of 9.6 effectively utilized fleets for the fourth quarter of 2020. Impact from the February extreme weather negatively impacted our effective utilization by approximately one fleet. Today, we have 13 fleets working in the field, of which two are engaged in SimulFrag. SimulFrag is an exciting completion technique that requires significant operating competencies in infrastructure planning. To make Simulfrac attractive to an operator, the operator needs sufficient well inventory comprised of large multi-well pads with four well pads providing the best opportunity for maximum completion efficiencies. The operator needs an incredible degree of alignment between its supply chain partners with seamless delivery of sand and water and a coordinated effort between wireline and pressure pumping. These just-in-time manufacturing techniques are required to achieve maximum efficiencies using the Simulfrac technique. With these considerations in mind, Simulfrac represents another exciting opportunity for the energy industry to further reduce the marginal cost of a barrel of American crude. That said, we perceive the rate at which this technique is adopted to be measured to due to the complexity and size of these operations. As we move forward, our team will remain focused on disciplined deployment of our assets to ensure we only pursue profitable work. As we have discussed in the past, we will not reactivate equipment without adequate pricing, long-term visibility to a consistent work schedule, and expectations of high efficiency targets so as to deliver solid operating margins. This kind of discipline is critical to the success of our company and to the oilfield service industry as a whole. We also continue to focus our efforts on working with customers that have a substantial presence in the Permian Basin and are looking to further expand their footprint of operations in the region. As you have recently seen, there has been significant EMP consolidation and investment in the Permian, reinforcing our Permian focus. Through close collaboration with our Blue Chip customer base, we're able to develop a longer view of their development plans, which allows us to plan for and invest in our business and necessary technologies. This, in turn, helps drive a more efficient and sustainable supply chain that results in improved margins and further generation of free cash flow for the long-term benefit of our shareholders. With that, I'd like to turn the call over to David to discuss our first quarter financial performance.