Superior Well Services, Inc. Q3 2008 Earnings Call Transcript

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2008-11-24 09:33:18.0

Tags: Call Transcript, Region, Earnings, Pricing Strategy, Superior Well Services Inc., Pricing, Marketing Research, Marketing, Seeking Alpha

Question-and-Answer Session

Operator

(Operator instructions) And your first question comes from the line of Byron Pope from Tudor Pickering Holt. You may proceed.

Byron Pope – Tudor Pickering Holt

Good morning, guys.

Dave Wallace

Good morning, Byron.

Byron Pope – Tudor Pickering Holt

I wanted to get your thoughts, particularly given the strength of your Q3 revenues across regions, your thought on where you guys generally are in terms of equipment utilization because it’s obviously a fluid situation and what’s going on with North American natural gas. I was hoping you could help give us some feel for and where you guys are in terms of equipment utilization as we try to dial [ph] in numbers over the next several quarters.

Tom Stoelk

Okay. Yes, we’ve – obviously we had a very strong quarter, and the biggest impact was the ramp-up in our new service centers from 2006, 2007 that we’ve added. So they are not quite as full capacity than these centers, but they are getting pretty close. So when we look at the overall utilization for the quarter, it was probably in the 75% to 80% range. And we usually shoot for 85% roughly. Actually some service centers were even higher than that. And then again, our newer service centers have made great progress in picking up their utilization. And there is still little more to pick up with those places, but very strong quarter.

Byron Pope – Tudor Pickering Holt

Okay. And then based on your commentary, fair to say that probably the Barnett Shale is the one region where pricing is – it sounded like that was the one region where pricing is little tough, not really seeing that in the other regions at this point.

Dave Wallace

I think we see again it’s kind of back to areas that we see that kind of get commodities, then it’s slick water jobs, and there's a lot of competition there. There is still pricing pressure there. It’s just a matter of how active they got, how much they ramped up once rig count started picking back up. And then if there is a little supply imbalance in those areas, then pricing is a little strong.

Byron Pope – Tudor Pickering Holt

Okay. And then last question for me. It sounds like you guys are holding off on answering detailed questions about Diamondback. Is that fair?

Tom Stoelk

Yes, that’s fair.

 

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