ProPetro Holding Corp.

Good morning and welcome to the Pro Petro Holding Corp second quarter 2021 conference call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. 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 Josh Jones, Director of Finance. Please go ahead.

Thank you and good morning. My name is Josh Jones and I recently joined the company as Director of Finance. I will be handling investor relations going forward and look forward to working with you, our investors, research analysts, and other stakeholders. We appreciate your participation in today's call. With me today is Chairman and Chief Executive Officer Philip Gobe, President Sam Sledge, Chief Financial Officer David Shorlimer, and Chief Operating Officer Adam Munoz. Yesterday afternoon, we released our earnings announcement for the second 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 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 will hold a question and answer session. With that, I would like to turn the call over to Philip. Thank you, Josh.

Good morning, everyone. We were pleased with our second quarter operating and financial performance, which reflects our capital discipline and operating strategy. Our activity levels increased during the second quarter, resulting in a 34% increase in revenues and a 78% increase in adjusted EBITDA performance. ProPetro continued to differentiate itself from its peers by generating solid margins and a return to positive free cash flow while at the same time introducing ESG-friendly solutions to our product and service lines, which I'll discuss later. We are executing on our discipline and focus strategy, and it shows. With steady improvement in the global economy and improving oil prices, North America oil service activity has continued to improve. We believe we're in the early stages of what appear to be a sustained upcycle in the oil field. Customers' inquiries and urgency for services in the future are expected to result in pumping supply tightness and inflationary pressures, some of which we have already experienced in the second and third quarters. We have been working on recovering pandemic price discounts put in place last year during the height of the oil price collapse resulting from COVID-19 global economic shutdown. Our objective is to recover these discounts and to begin transitioning back to normalized financial performance, enhancing our ability to invest in innovative solutions and improve profitability for our shareholders. Our pricing discussions with our customers have been and will continue to be collaborative to help both share in maximizing efficiency and plan future deployments of innovative solutions. I want to commend the ProPetro team for remaining nimble and quickly and effectively responding to our customers' needs while protecting our competitiveness and earning power. Operational efficiency and equipment readiness remain key differentiators in all field 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 in a mutually beneficial manner continues to differentiate ProPetro in our industry. During the second quarter, our best-in-class execution at the wellhead was on full display with continued high pump-time productivity improvements. 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 activate additional crews without adequate pricing, long-term visibility to a consistent work schedule, and expectations of high efficiency targets so as to deliver solid operating margin. This kind of discipline is critical to the success of our company and the oilfield service industry as a whole. It's worth mentioning that visibility to the duration of the activity of our customers is an integral part of our redeployment criteria, especially as we observe an improved spot market for frac services that carries increased pricing soon to converge with dedicated arrangements. We like the dedicated fleet model, but we will continue to focus our efforts on working with customers that have a substantial presence in the Permian and are looking to further expand their footprint of operations in the region. We've continued to observe significant EMP consolidation and investment in the Permian, with transactions leading to multi-decade inventories of drilling locations for some of our customers, reinforcing our Permian focus. Additionally, as public companies remain disciplined in their development plans and budgets, Private operators have led the most recent recovery in drilling rig counts, certainly in the Permian Basin, and we believe that will result in incremental demand in a marketplace that is experiencing significant attrition of functioning pressure pumping equipment. We believe our focused and highly efficient standard of service is attractive to a variety of operators, and we are working every day to expand and broaden our customer base. We've grown up with our customers, some of which were much smaller than they are today. And knowing how to provide comprehensive, industry-leading completions efficiencies is incredibly valuable to a growing oil and gas operator. We look forward to working with all of our customers as we progress forward. With that, I'll turn the call over to David to discuss our second quarter financial performance and capital resources. David?