Quinn Fanning: Some rates have been done and see, I guess, the point is that contracted rig hasn’t changed. It’s just what they were doing was different during the quarter.
Operator: Our next question comes from Eddie Kim with Barclays. Eddie, please go ahead. Your line is open.
Eddie Kim: I just wanted to follow-up on the softness NLA this past quarter. You mentioned one of the factors here was maintenance activity on certain drilling rigs. Just curious, if this was unexpected or unanticipated maintenance activity? I know the offshore drillers have five year special periodic surveys, which I understood were scheduled or planned for the most part. So just curious, if you could start to see higher maintenance activity on rigs and other regions besides NLA, and just generally, if you could speak to your visibility on offshore rig maintenance going forward?
Quinn Fanning: Sure. It is a great question, and thanks for asking it. Fundamentally, it was not unanticipated activity. It just happened to be that, there was maintenance activity. At the same time, we had dry holes in Mexico. At the same time, we had a greater proportion of our activity being tied to completions related activity and drilling. It really was just kind of how things kind of feathered in and layered in within the quarter. We would anticipate the slowness because of the maintenance activity. But quite frankly, we did not anticipate completely un-forecasted that we were going to have dry wells in Mexico that would relate to no wells being tested throughout the quarter. So, I don’t think this is just — this is kind of a unique situation to NLA. It wasn’t that maintenance took longer or they did maintenance, it wasn’t planned. So, I don’t see where it will have an effect on operations elsewhere in the world.
Eddie Kim: Okay, understood. And just a clarification here, Quinn, you mentioned that your 4Q guide does not include additional LWI charges. Is that because you don’t expect additional LW charges in 4Q, or was that comment made more to indicate that, there could potentially be a risk to your $75 million to $85 million EBITDA guide, if additional charges are incurred?
Quinn Fanning: So, what they try to do is re-bucket it and do a couple of different pieces, first of which is operating expenses, they are unrecoverable. We did recognized cost for the third quarter and it provided for the mobilization costs. And so at least we think we have that covered. The second piece, which is recovery and repair related, as I mentioned in my prepared remarks, we do not believe that, those costs would be material to results because there is insurance in that at play, whether it’s Expro’s or third parties. The other final piece, which we really are in a position to assess until we recover the equipment is, what is the cost and timing of completing customer work scopes. So I wasn’t trying to hedge the guidance by highlighting the fact we have not provided for additional LWI related costs is that, we just don’t have visibility on additional costs or have any ability to put a specificity around it.
So, I am not saying that there is no chance that we would have costs recognized. There is related to LWI related in the fourth quarter. We don’t have visibility on those today. And to the extent that we did, we provided trend in third quarter.
Operator: Our next question comes from Steve Ferazani with Sidoti & Company. Steve, please go ahead. Your line is open.
Steve Ferazani: Thanks Mike. Quinn, we appreciate all the detail on the call. I do want to circle around a topic. I know you have already covered. But in terms of your 20% margin guidance for 4Q, there will be a pretty big jump from 3Q and you went through some of the issues. But you are at 18% even without excluding LWI, knowing that 4Q you are not going to get a lot of start-up projects late in the quarter and maybe some early winding down. Just your general visibility because you haven’t been a 20% plus margin in quite some time.
Quinn Fanning: In fact, we have excluding LWI related costs.
Mike Jardon: I mean, Steve, I guess, what I would try to frame it up for you. We do have good visibility about activity for the fourth quarter. It’s kind of a project by project activity set, and we gave that guidance because that was a — those were good ranges based upon the activity that we see in fourth quarter. And right now, we’re a third of the way through the quarter almost right now, and we still see good alignment with that kind of guidance. So, it’s based on projects that are known, activity sets that are known, and that’s how we anticipate we’ll be able to finish up the fourth quarter.
Steve Ferazani: So is that primarily just a recovery in NLA offshore from where it was the lower level in 3Q, because if you’re redeploying land assets, is that primarily where the margin bump comes from?
Mike Jardon: So I mean, we won’t see much of a benefit from redeployment of U.S. Land assets in the fourth quarter. It will take us more quarters than that. But that was an ongoing process. But what you are seeing really is a, kind of a more normalized level of activity in NLA overall in the fourth quarter versus Q3. Q3 was just abnormally low because of how the activity sets were. But again, it was not a change in the market. It was not a change in market shares or those kind of things. It was just kind of how some of the operations laid out within the quarter. And that’s why we’ve got good visibility and I have a good level of confidence that we’ll be able to deliver the fourth quarter as we’ve given guidance to.
Steve Ferazani: And if I could get one more in just on the buyback, you haven’t bought back for a couple of quarters, but now you’ve expanded it to 100 million, any reason for the expansion now? And as I look at the stock today, obviously balance sheet is in great shape.
Mike Jardon: Sure. I’ll let Quinn comment on in more detail. But part of it was, we were able to go through and we had some limitations previously because of the structure of our original revolver. We were able to build in some additional flexibility with the new revolver that was put in place. And we think that we’ll continue to be, as we’ve done previously, I won’t say opportunistic, but we’ll go in and buy back stock when we think it makes good sense for us, and we have a balance sheet that gives us that kind of flexibility to be able to do. So part of it for us was the previous $50 million allowance we had on stock buyback was going to expire end of November. So, this was the right time for us to be able to go and reload that. And because we had the latitude to increase it, we felt like that was a good opportunity for us as well.
Steve Ferazani: The $50 million in borrowings in the quarter that’s paid down, that was just related to the acquisition. Just because it seemed odd given the amount of cash you have on the balance sheet to begin with?
