DXP Enterprises, Inc. (NASDAQ:DXPE) Q3 2023 Earnings Call Transcript

Tommy Moll: Last question for me, on oil and gas. There have been some large transactions announced for some of the players in that industry to consolidate. And I just wonder from a strategic perspective, is there anything that that signals positive or negative to you for your business in that end market?

David Little: Well, I think it’s potentially negative. I think these big companies had their own budgets, their own people doing projects. We participate in those projects. And when you put the two of them together, assuming if they’re doing it and they’re just going to move forward with the same total budget, then that would be great. If they do it and they’re wanting to consolidate and try to become more efficient, well then I think those budgets could possibly be cut. And so therefore, there’s going to be good activity and of course, it’s all about how much of — we don’t get 100% of anybody’s budget. So still, we don’t feel like that IPS our Innovative Pumping Solutions group is pretty positive about a combination of alternative type fuels that are more environmentally friendly and the traditional stuff and both of those things are happening as we speak.

And so in some ways, they feel like things are continuing to improve for them and I feel that way. But specific to the mergers you’re talking about, they take some budget out of play.

Tommy Moll: Appreciate all the insight today. That’s all I had.

Operator: [Operator Instructions] We have no further questions in our queue at this time. And this does conclude today’s conference call. Thank you for your participation and you may now disconnect.