ProPetro Holding Corp.

Good morning and welcome to the ProPetro Holding Corporation second quarter 2022 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing star then zero on your telephone keypad. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then 1 on your telephone keypad. To withdraw your question, please press star then 2. Please note this event is being recorded. I would now like to turn the conference over to Matt Augustine, Investor Relations. Please go ahead.

Matt Augustine 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 second 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 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 Sam.

Thanks, Matt, and good morning, everyone. We're excited to report another quarter of excellent operating and financial results generated by the ProPetro team. Our margin over market share strategy continues to prove to be the prudent way to navigate this cycle as our financial performance continues to improve. Major thanks to the entire ProPetro team for remaining focused and executing well during what is a dynamic time. Before we go into our highlights for the second quarter, I want to take a moment to provide our view on the state of the global energy industry and the North American pressure pumping market. It is apparent that liquidity issues coupled with higher risk-free rates and concerns of a Main Street recession have caused recent weakness in the energy equity and commodity markets. Despite these near-term issues, our forward view is that global crude oil markets is structurally undersupplied with short-cycle energy investment in crude oil production, particularly in the Permian Basin, at less risk of recessionary impacts than in previous cycles. Moreover, we believe energy markets are currently more at risk of a supply crisis than a demand-side downturn. We see clear evidence of that from the shape of the forward WTI crude curve, which is currently backward-dated in an unprecedented manner. It is important to acknowledge this given the shape of the WTI crude curve today differs materially from that of periods of prior weakness in the global economy. Consequently, our confidence in a sustained crude oil upcycle remains high, and we are planning our business accordingly, as are the largest and most sophisticated producers in our area, many of which ProPetro currently serves. In the North American pressure pumping market, we see continued evidence of an effectively sold-out market. This is most obvious in the recent trajectory of spot pricing for vintage Tier 2 equipment, where we see robust inquiries for future deployments. Moreover, we see bifurcation in demand for pressure pumping services, where our ability to reduce risk and bring forward the present value of high-priced oil production in a predictable manner is priced at a premium. Because of these variables and others, our forward view of pricing for our services and for the oilfield services sector remains positive. Now moving on to the second quarter highlights. I'm proud to report that our team achieved the highest level of fleet utilization for a quarter since the pandemic. Equally important, we did this without marketing any additional capacity. Our returns-focused strategy has revived intentionality around internal optimization as we move forward in the cycle. We'll continue to challenge our team in taking a holistic and inward approach to do more with less. I'd like to thank our team and employees for their focus and efforts around optimization and striving to improve our business every day. In the second quarter, our team continued to take delivery of more Tier 4 DGB or dual fuel units and successfully converted a third Tier 2 conventional fleet into a Tier 4 dual fuel fleet at the end of the quarter. We expect this transition to develop further over the next couple of quarters with four to five fleets expected to be in operation by the end of this year. Including the additional units announced in our earnings release yesterday, we expect to have capacity of at least six Tier IV DGB fleets early in 2023. Our ability to reduce greenhouse gas emissions and lower fuel costs with this technology is proving to be valuable to our customers and shareholders alike. We're also delighted to report that mid-cycle return levels were achieved in the quarter on a minor amount of repositioning and repricing. The current operating environment, coupled with continued capital discipline in our industry, gives our team confidence in the sustainability of pricing that supports returns above reasonable investment hurdle rates. This is a great time to be in our industry, and we look forward to being able to support our customers in a mutually beneficial manner. Lastly, I want to comment that the demand for electric solutions from efficient frac providers is gaining momentum, and ProPetro plans to play a significant role in the electric future of the Permian Basin. We have assessed multiple electric frac offerings with plans to deploy an electric solution in 2023, therefore putting our team and our company in a position to participate directly in the electrification and industrialization of the Permian Basin oil field. With that, I'd like to turn the call over to David to discuss our second quarter financial performance and capital resources. David.