ProPetro Holding Corp.

good day and welcome to the pro petro holding corp fourth quarter 2023 conference call all participants will be in 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 a touchtone phone. To withdraw your question, please press star then two. 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 fourth quarter and full year 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. Lastly, 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. 2023 was another transformational year for ProPetro, and we're pleased to be entering 2024 with a strong foundation. Before David walks through our financial results for the fourth quarter and the full year of 2023, I'd like to highlight some of our key accomplishments. In the last two years, we have worked to create a next-generation fleet to meet the needs of an evolving industry both today and into the future. We've invested approximately $1 billion to recapitalize our fleet with state-of-the-art technologies and services. Our results in 2023 and our start to 2024 are a clear indicator that our strategy is and will continue working. Supporting the resiliency of our business are three primary strategic areas of focus that I'd like to take a moment to walk through. First is our ongoing fleet transition from legacy equipment to next-generation offerings. As we continue to transition our fleet in a manner that minimizes our overall capital cost, demand for our next-generation offering remains strong and our outlook positive. Our Force Electric fleet offering is uniquely positioned to bring state-of-the-art technology and service to the Permian Basin and to create value for our customers. We now have two force electric fleets and seven tier four DGB dual fuel fleets operating with outstanding diesel displacement performance. Building on the success of our force offering, we deployed our second force electric fleet in early November. Our first force electric fleet has been in the field since August of 2023 and both fleets are producing strong results with efficient performance and customer satisfaction. Both electric fleets are on contract and we're excited to build upon this success. To that end, we expect our third and fourth force electric fleets to head into the field on contract over the next few months. Second, I want to discuss another core element supporting our results, value-enhancing acquisitions. Our silvertip wireline business continues to be a strong tailwind for earnings power and free cash flow generation. Building on our successful track record of accretive M&A, During the fourth quarter of 2023, we acquired PAR-5 Energy Services, which added additional scale to our cementing business. The acquisition also expanded our operations to better serve both the Midland and Delaware Basin areas of the Permian. Additionally, ProPetro is well positioned to capitalize on potential revenue synergies, leveraging PAR-5's capacity in tandem with the strong commercial architecture and established customer relationships of ProPetro. We are pleased that the accretive earnings and expected revenue synergies are already coming to fruition. Value-enhancing acquisitions like Silver Tip and Par 5 are evidence of our ability to capitalize on accretive growth opportunities that increase our free cash flow generation. Moving forward, we will continue to be disciplined and opportunistic in pursuing value-accretive M&A opportunities as they arise. Finally, another key element of our strategic focus is our capital allocation philosophy. We continue to execute on our $100 million share repurchase program, which our board authorized last May. We view share repurchases and the overall return of capital to shareholders as an important part of our strategy, showing our conviction in the future of the company while creating value for our shareholders and the key pillar of our value proposition for investors. Our financial results over the past year are a direct result of the continued execution of our strategic initiatives with the ultimate goal of generating strong returns and value for our shareholders. The results also demonstrate that our strategy and our business are resilient as we navigated a turbulent fourth quarter. In the fourth quarter, like other industry participants, Perpetro's utilization was hindered by increased seasonality and holiday breaks, as well as budget exhaustion amongst certain of our customers. We previewed these challenges last quarter, but the impact on our activity in the fourth quarter was more than we had expected. David will provide more color on our guidance in a moment, but I would like to say a few words about the activity we have seen as we've entered the new year. Importantly, we believe the seasonal impact we discussed has no impact on our long-term outlook. Despite short-term activity drawback during the holiday season, as we've moved into the first quarter, we're picking up right where we left off and remain focused on the long-term. We continue to believe that ProPetro's stock represents a unique investment opportunity given the discrepancy between our equity value and our financial results and strong outlook. With our share to purchase plan, we are showcasing our conviction in this opportunity. Lastly, and moving more to our macro outlook, we believe ProPetro is uniquely positioned to capitalize off the recent transactions in the EMP space. These transactions reinforce our disciplined approach to capital deployment as the right strategy for ProPetro. We offer differentiated service quality and equipment and have an outstanding customer portfolio and operational density in the Permian, all of which insulates us from the uncertainties outside the Permian and in the spot market. Our goal is to be the service provider of choice for the consolidating Permian EMP space, and we are well on our way to achieving that goal. We remain optimistic on the strength of the North American land and the oilfield service sector potential over the next several years. We continue to believe we are in the early stages of a sustainable upcycle that will be supported by the industrialization of the frac space, which is now more resilient than in previous cycles. We are confident that we have the right strategy in place to benefit from our position as a sophisticated quality service provider. Our proven discipline and transformed, bifurcated fleet give us confidence in our strategy and earnings potential. As we continue to industrialize, we're creating durable and repeatable results. The industrialized model that ProPetro has implemented will continue to pay off and produce benefits for years to come. I'll now turn the call over to David to discuss our full year and fourth quarter financial results. David.