ProPetro Holding Corp.

And welcome to the ProPetro Holding Corp third quarter 2023 conference call. Please note this event is being recorded. I would now like to turn the call over to Matt Augustine, Director of Corporate Development and Investor Relations for ProPetro Holding Corp. 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. This morning, we released our earnings results for the third quarter of 2023. 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. Building on our strong momentum, ProPetro is pleased to report another solid quarter as we continue to execute on our strategy. We've been squarely focused on generating robust earnings, increasing free cash flow, and building towards enhanced shareholder returns and value distribution. I'm glad to report that in the third quarter, we achieved a decrease in our capex spend, coupled with the continuing strong profitability and activity that resulted in much improved free cash flow. Importantly, we expect these trends will continue as supported by three primary factors. First is our ongoing transition from legacy equipment to next generation assets. Over the past two years, we have made significant progress transitioning our hydraulic fracturing assets to more efficient and lower emissions equipment, and we expect our total investment to reach nearly $1 billion by the end of the year as we bring additional state-of-the-art technologies and services to ProPetro. With these investments largely behind us, we are poised to begin fully realizing the benefits of our fleet transformation going forward. In the third quarter, we took delivery and deployed our first electric fleet as part of our force offering. We now have seven tier four DGB dual fuel fleets and one force electric fleet operating. And the demand for our next generation services remains strong. We've already seen fantastic results in the first two months that our electric fleet has been in the field with high efficiencies and strong customer satisfaction. We expect to begin to take delivery and deploy our second force electric fleet over the next month. With the following two electric fleets expected to be delivered and deployed in the first half of 2024. This is a clear testament to the differentiated demand that this equipment garners. The second area that's supporting our results is our Silver Tip wireline business. As you know, we made our first entry into wireline services through our acquisition of Silver Tip in November of 2022, and it continues to be a strong tailwind for our earnings power and free cash flow leverage. We're thrilled with the success of this acquisition and will continue to evaluate and pursue strategic transactions to accelerate value creation as a part of our balanced approach to capital allocation. On that same note, we've also recently executed a non-binding letter of intent for a small bolt-on acquisition that helps us expand our cementing business. We expect to close that transaction before year-end and are excited to add additional scale in this operating segment. Another core element of our capital allocation philosophy is our share repurchase program, which is the area of focus aligned with our strategy to create value for shareholders. We continue to execute on the $100 million program that our board authorized last May. Our strong earnings results thus far in 2023 demonstrate the significant value of our strategy and our ability to execute. Despite the recent headwinds, which I will cover more in detail in a moment, we remain confident in the company's current and future financial and operational performance. And we believe that our stock prevents a unique high return investment opportunity due to the substantial discrepancy between our equity value and our financial results. David will give more specifics on the repurchase program soon. As I've mentioned previously, we sidelined one fleet during the third quarter to avoid running it at sub-economic levels. We strongly believe in this disciplined approach and are committed to only running fleets that earn a full cycle of cash on cash return. Despite running one fewer fleet, we were able to achieve an effective utilization of 15.5 fleets in the quarter as compared to 15.9 fleets, effectively utilized fleets the previous quarter. This strong utilization is a testament to our highly desirable equipment, industry leading field performance, dedicated fleet strategy, and the hard work and dedication of our team. This high level of service we provide every day is what our customers have come to expect. I'd now like to move on to address ProPetro's longer-term opportunities. We remain bullish on North American onshore service potential over the next several years. We believe we are still in the early stages of a sustainable upcycle that will be supported by the industrialization of the North American oil and gas industry. Looking ahead, we are confident in our company's ability to continue to advance our strategy and encourage our shareholders to focus on the long-term value potential of our business. David will talk more about our guidance in a moment, but I would like to comment that we expect our fourth quarter to be challenged by normal seasonality, holidays, and budget exhaustion. It is important to note that we believe budget exhaustion this year is more correlated to the increased efficiencies that service providers such as ourselves provide to our customers. We are proactively working with our customers to mitigate the impact but anticipate a modest decline. As it pertains to 2024, we believe the first half of the year will be an improvement over the second half of 2023 as a result of the normalization of oil prices and more rigs coming back online in the first half of 2024. On a broader note, we believe the upstream E&P industry is in a slow to no growth environment where the appetite for capacity expansion Throughout, the hydrocarbon value chain is low. However, we think this benefits sophisticated service providers like ProPetro, and we are confident we have the right strategy in place to continue creating value for our customers and our shareholders. Moreover, the recent transactions in the EMP space reinforce that our disciplined approach to capital deployment is the right strategy for ProPetro. We offer outstanding service quality, next-generation equipment, and have a terrific customer portfolio and advanced operational density in the Permian, all of which insulate us from some of the market volatility outside the Permian and in the spot market. Our goal in this regard is to deliver the most value-enhancing services at the lowest risk to our EMP space consolidators. Our fleet conversion and our service line expansion with Silvertip is an illustration of that value-enhancing strategy. Lastly, one of our top priorities in positioning the company for long-term success is maintaining a strong balance sheet. This will enable ProPetro to achieve its goal to remain resilient through market conditions while also allowing the company to be opportunistic on value-accretive M&A transactions that will further accelerate free cash flow generation as well as shareholder returns. Now I'll turn the call over to David to discuss our third quarter financial results. David.