ProPetro Holding Corp.

Good morning and welcome to Petro Holding's first quarter 2022 conference call. All participants will be in listen-only mode. If you need assistance, please signal conference specialist by touching the star key followed by zero. After today's presentation, there will be opportunity to ask questions. Please note that this event is being recorded. I'd like to turn the conference over to Mr. Josh Jones, director of finance for Petro Holdings Corporation. 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 first quarter of 2022. 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 direct 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 Sam.

Thanks, Josh, and good morning, everyone. Our first quarter operating and financial results reflect the culmination of strategic preparation that the ProPetro team completed in the months leading into 2022. Momentum around our returns-focused strategy was achieved in the quarter and our pursuit of margin over market share led to improved capital efficiency across our asset base. Though no additional fleets were marketed in the first quarter, our team experienced a 15% increase in revenues, and an 81% increase in adjusted EBITDA. These results not only provide proof that our capital discipline approach is paying off, but they also suggest that our team is focusing its efforts in the areas that maximize shareholder returns. Execution of our strategy in the first quarter was more difficult than the results may suggest. Weather and sand related issues negatively impacted our operations in February and March with downtime experienced by multiple fleets. These obstacles endured in the first quarter remind us of the volatility and operational risk we assume daily, both on location and in the geopolitical realm, such as the heartbreaking war in Ukraine. Moreover, they remind us that it's vital to target economic returns that account for the risk that we bear on behalf of our shareholders. If not for our team's willingness and our customers' desire to go the extra mile, To find ways to execute around logistical issues on a daily basis, our results would have certainly differed. That said, I would also like to thank all of the members of the ProPetro team for turning a very challenging quarter into one that reduced risk and limited downtime for our customers, while also generating strong financial results for ProPetro. As we look at how the geopolitical landscape has affected global crude oil markets in the first quarter, we see a tight energy market becoming tighter and a call on short cycle production growing louder. The continued rising drilling rig count in North America, coupled with high energy prices, suggest our initial estimates from earlier this year of 15 to 20 industry-wide fleet ads in North America into 2022 may prove to be too conservative. While also considering the equipment attrition rates in pressure pumping and continued supply chain issues, it's possible that demand will outpace effective horsepower supply well into next year. While we expect the backdrop to continue to be positive tailwind for an effectively sold-out North American pressure pumping market, failing to capture a proper return in a favorable macro environment is futile. We remain steadfast in our belief that focusing on margin expansion while simultaneously providing the highest level of service and efficiencies to our customers is the optimal approach in the early stages of the cycle. Over the most recent quarters, we have successfully repriced and repositioned a significant amount of our portfolio. As a result, we high graded our operations, resulting in a more efficient and dedicated service offering with more reliable profitability. In addition, As part of our fleet transition program to lower emissions natural gas burning equipment, we began taking delivery of our Tier 4 dual fuel units and accordingly transitioned one of our operating Tier 2 fleets to a Tier 4 dual fuel fleet. We now have two Tier 4 dual fuel fleets operating in the field today with a third fleet expected to be converted and in service by the end of the second quarter. As a reminder, those conversions support existing capacity. and do not add effective horsepower to our fleet. With that, I'll turn it over to David to discuss our first quarter financial performance and our capital resources.