TTI
#Good morning.
That's a pretty complicated question there, <UNK>.
I would say on fluids we've said a couple things.
One is obviously the second half of the year will be better than last year.
We had record margins that will take us a while and a much better market to get to.
I think as you look at the profile going forward on how this market compares to prior cycles, you've got the new technology we have in both the water and the Neptune that we didn't have the last cycle.
So I think that mix of business will be good.
I think it's going to take us a while, as <UNK> said, to kind of get some of that pricing back.
I think that's going to be the real question is with which customers and which products and what geographies are we able to do that.
Clearly you've heard some the larger service companies feel somewhat confident that they're on a path to do that.
I think we know where those actions are required.
We have a game plan that timing is going to be really a function of the specific customers and demand and the capacity.
But overall, I don't know that I can compare it to prior other than to say we have a very low cost structure.
I think our exit rate after this cycle on a Company-wide cost structure, both at the field level and the corporate level, is going to be lower than the exit.
So I think there will be some structural advantages to that.
That kind of gets done in tandem with how fast the pricing is going to change.
And, <UNK>, with respect to CSI Compressco, we had the earnings conference call on Friday and announced the results of CSI Compressco.
And we mentioned that EBITDA for bank covenant purposes in the second quarter was $26 million.
It was an improvement over where we were in the first quarter.
And obviously that annualizes to a very attractive number if you take current activity levels.
We believe that we've got an excellent relationship with our lender group that includes three of the largest banks that are also in the TETRA revolver.
If we thought that we were going to have issues in the second half of the year, we believe that we would have the support of our banks to take a look at the covenants again.
But at the current run rate that we're at, we think we're in good shape.
Again, <UNK>, this is, as we said earlier, we've been very transparent with our banks.
We have a lot of great relationship and I think, as <UNK> said in his comments, we've kind of laid a path out last year of how to deal with an extended cycle.
And we've continued to execute with the full support of the financial community.
So we feel good about that and we tend to be conservative when it comes to managing the balance sheet.
Thanks, <UNK>.
Thank you.
And as always, we all appreciate the good questions and the support.
And we'll look forward to updating the group in early November on the actual results from the third quarter.
So thanks again.
