PTEN
#No, it's still included.
We don't see large pressure pumping companies increasing pricing.
Sure.
You know, to describe it best, I need to roll back the clock to when we were busy back in 2014 and we were operating almost 1 million horsepower back then.
We were moving sand from multiple mines across the US to the work that we were doing.
We were moving typical white sands.
We were moving regional brown sands.
We were doing this with railcars that we have under long-term lease, which we still have available today.
In 2014 we also increased the number of sand-hauling trucks that we own.
We do own a number of our own sand-hauling trucks.
And so we have infrastructure in place including rail spur leases, storage facilities.
We have the capacity to manage the sand for 1 million horsepower.
So no challenge there in terms of our logistics.
I think, you know, there's always opportunities to improve logistics and we're certainly going to look at that as the market has increased the sand concentrations, you know, over the last year and a half.
But we're still confident that we can manage and move the amount of sand and materials that's required.
In 2014, we didn't miss any work during that very busy period of Q3 for not having sand at the well site to pump the job.
And so, you know, we'll still use the same team that was managing it then will continue to manage it, and we've actually added to that team since then as well.
So we think we're in good position to do that.
And we've already started discussions with some of the sand suppliers just to make sure that we have access to the sand that we need.
I don't have that number for you.
It's a mix.
If we buy some sand directly from the mines right there.
And then some of it, we might work with a sand supplier for some of the logistics as well.
So it really just depends on type of sand, where the sand is going, et cetera but we do both.
So specifically in the Northeast ---+ I'll start there.
You know, we said back in the springtime, you know, one of the conferences that you might have been at, that, you know, we counted around 400 ducks up in the northeast.
And we have a good footprint and we certainly know every customer up there.
And so we don't think that number is too far off.
Sometimes I think the definition of what makes up, you know, the duck within the stats might be different on how people count them.
We're looking specifically at the wells that were just parked on the side in inventory, and not between, you know, the drilling rigs and the frac groups.
And so we see that we're working off some of that inventory now.
And that's, you know, driving a good portion of our business right now in the northeast.
So, yes, I would say we are working off duct in the northeast.
In Texas it's harder for us to know and get a full view of it.
And then of course we hear about ducts in other regions of the US that we don't participate in pressure pumping.
But we think that, you know, the ducts are a big part of our business right now in the northeast.
And that will shift to more of the work behind the drilling rigs as drilling activity improves in the northeast.
I think it's hard for us to say right now.
Thanks.
You know, that's getting out there a little farther than we normally communicate, so, you know, ---+
So in the $170 million on the drilling side, it's maintenance and it's equipment for upgrades.
But that doesn't include any inventory or any parts for building new rigs.
It's just going to be demand-dependent.
It depends on what WTI does, of course, and how fast the rig count moves up and how fast we work through this 250 rigs roughly that we count out there that have all these full specifications that customers are asking for now, and then the available upgrades.
And we like to think that we can be opportunistic if that opportunity comes up.
No, I don't have that number.
Thank you.
Thank you, Howard.
We would just like to thank everybody for participating in our second quarter 2016 earnings conference call and look forward to speaking with you again when we report third quarter.
Thanks, everybody.
