ProPetro Holding Corp.

Good morning and welcome to the ProPetro Holding Corp fourth 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. We appreciate your participation in today's call. With me today is Chief Executive Officer Sam Sledge, Chief Financial Officer David Shorlimer, and President and Chief Operating Officer Adam Munoz. Yesterday afternoon, we released our earnings announcement for the fourth 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 relief 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 relief. Finally, after our prepared remarks, we will hold a question and answer session. With that, I would like to turn the call over to Sam.

Thanks Josh and good morning everyone. Firstly, I'd like to congratulate the entire ProPetro team on successfully navigating the challenges of 2021. Beginning in late 2020 and throughout the entirety of 2021, our team dedicated themselves to helping our business recover while at the same time maintaining or even improving our level of operational and safety execution. I'm proud of our team's resilience, and I'm excited to see more great things come from the ProPetro team in 2022 and beyond. Moving to the fourth quarter, we were pleased with our operating performance and fleet repositioning, which reflects our intent to set the conditions for and pivot to the optimal path for profitability and value creation in 2022. As we prepared our fleets for this new year, our activity levels decreased slightly in the fourth quarter, resulting in a 2% decrease in revenue and a 12% decrease in adjusted EBITDA. Despite the operational inefficiency created in repositioning assets along with normal seasonality, our team executed well and continued to differentiate our well site performance from our peers. Again, I want to thank our team for all the hard work that went into preparing the company for the year to come. As demand for oil and gas continues to increase across the world and certain countries fall behind their respective oil production quotas, the call on short cycle crude from the U.S. is growing louder with WTI pricing above $90 per barrel. While we foresee many U.S. producers taking a capital discipline approach to activity additions, others are seeing new areas of leasehold become economically viable for the first time in years. Incremental services demand from these non-core areas of the North American oil and gas basins is expected to cause further tightening in the U.S. pressure pumping market during 2022. We also anticipate rig productivity from these non-core areas to be lower, requiring incremental drilling and completions activity for the U.S. to meet the call on short cycle barrels. Higher aggregate drilling activity will cause all tides to rise in oil field services. but particularly in pressure pumping, where utilization began the year at extremely elevated levels. As a result, we believe higher demand for pressure pumping, continued equipment attrition, and the risk of supply chain issues on equipment deliveries sets up an environment where the North American pressure pumping market could be effectively 100% utilized during the third quarter of this year. Our recent focus has been to prepare for the supply-demand imbalance in pressure pumping that we anticipate later this year. As I already mentioned, we repositioned a portion of our assets to more profitable work during the fourth quarter. While this caused lower utilization in the interim, we believe the opportunity cost experienced in the fourth quarter will improve our financial and operational performance in the first quarter of 2022 and beyond. During the quarter, our team also took the opportunity to conduct certain preparatory maintenance repairs on our equipment. We felt that the fourth quarter was a more appropriate time to conduct this time intensive work given our forward view of pressure pumping and pressure pumping pricing. That said, the reliability of our equipment in 2022 will be to the benefit of our customers and our shareholders. Lastly, we continue to make strategic investments and stock certain supplies and equipment that we believe will be at risk of deliverability in future months. This includes the continued deliveries of additional Tier 4 DGB dual fuel units, which I'll speak to more later during this call. With that, I'd like to turn the call over to David to discuss our fourth quarter financial performance and capital resources. David.