Question-and-Answer Session
Operator
Thank you. (Operator Instructions). And your first question will come from the line Marshall Adkins with Raymond James. Please proceed.
Marshall Adkins - Raymond James
Good morning, Joe.
Joseph Winkler
Hi, Marshall. Good morning.
Marshall Adkins - Raymond James
I wanted to drill down if you will.
Joseph Winkler
Great.
Marshall Adkins - Raymond James
Little more into this specific side...
Joseph Winkler
So I'd want people to be drilling down, so go ahead.
Marshall Adkins - Raymond James
More specifics on your plans for down term, you've mentioned in the past that you guys have been planning for this and preparing for this. I want to gets some more specifics, specifically you mentioned maybe you take CapEx down to 125, what's your maintenance CapEx and then talk about labor cost and may be other input cost that you see moving lower?
Joseph Winkler
Sure, just as a general statement and backdrop our fleets are fairly new, so we won't have the same degree of maintenance CapEx as perhaps some others might and the degree of maintenance will clear degree of activity. Out of 525 EBITDA clip, that's one maintenance level, that is something's significantly less than that it's a another. Of the 125 Brian, what is it growth is probably what I've ever made --
Brian Moore
About 70 --
Joseph Winkler
So we've got some latitude to bring down that number Marshall and of the 125 ballpark, where we committed $40 million to $60 million.
Brian Moore
Not more than $50 million.
Joseph Winkler
Something in that range. So as we go forward depending upon activity levels, we can bring the maintenance down to 65, 50 something along those lines depending upon where we are at activity level.
As too labor cost, we were monitoring what was going on in the fourth quarter that we could not run it. It's always difficult on the front-end to do that, but we have been adjusting our variable workforce consistent with what we've seen activity wise. Overtime, I was coming down not eliminated, but coming down. And so that will have a positive bearing on our labor cost as we reduce the waiting of overtime of the total. Those are the kinds of things we're doing, so that does give you a range Marshall on the maintenance.
Marshall Adkins - Raymond James
Very helpful. Kind of as an add-on to that theme, on your debt side, you're relatively levered here, are you close to any covenants or do you see any issues arising near-term. Obviously, looking out you're too nervous, really know, but near-term any issues you see out there?
- To read the full transcript on Seeking Alpha, click here »
