And so we typically see a leg up in March. That’s kind of what our calendars are suggesting today as we’re seeing an inflection specifically in those basins as well as candidly some of the production and intervention work in the Northeast in March. And the current calendar, as we see it, all the way out through May continues to see a step up there as well as across our frac rentals business, including our isolation tools, et cetera, in the DJ. So current calendars and outlook definitely suggests an improved Q2. And I would expect, just based off of – if history repeats itself, Q3 would continue that guide, especially in the northern regions.
Steve Ferazani: Great. That’s helpful. Balance sheet significantly improved this year. We’ve seen some smaller deals, maybe not a ton. How are you looking at the pipeline? What kind of things would fit? And what are you willing to do with the balance sheet, knowing that the refinancing window probably opens later this year?
Christopher Baker: Yes, it’s a great question. I think we referenced in our prepared remarks, we really exceeded our expectations. We’ve kind of had an internal goal for some period of time of getting down to 1.5x or lower on a net leverage ratio basis. We exited the year at 1.2x. I think Keefer stated in his prepared remarks, the balance sheet is as strong as it’s been since the notes were put in place in 2018. So we’re very proud of those results. From a deal perspective, look, the bid-ask spread is still there, especially with some of the private equity and kind of sponsor-backed deals. But it seems like volume is ramping, which I can only assume that means bankers are having very honest discussions with their clients about ability to pay in expected multiples given where the overall sector is trading.
We’ll see if the bid-ask spread closes or not. And likewise, I have to assume that selling counterparties are rational and realize the best approach to unlocking value is realizing synergies during a bit of market softness and realizing the equity upside and timing their exit as the market ramps in the back half of the year. But I think the jury is out there, and we’ll see. But we definitely see ample deal flow today. To your point on balance sheet use. Look, we’ve said it before, and we’re still sticking by it today. I think the majority of deals that we would look to execute on will be majority equity linked. Is – given our cash balance and our overall liquidity situation, is there the ability to use some de minimis amount of cash in a transaction to make it more accretive?
Sure. And we’ll evaluate that on a deal-by-deal basis.
Keefer Lehner: Just to add on the note side to follow up your latter half of your question. Chris mentioned that we talked about it in the prepared remarks, but obviously, our 2023 results, in our mind, were really strong. We ended the year in a great financial position, $113 million in cash, $154 million in liquidity, net leverage ratio is down to 1.2x. So I think given our 2023 performance, we believe we’re well positioned and the business is conservatively capitalized. You noted, obviously, our notes mature in the fall of 2025. So we’re going to work to continue to monitor capital market conditions and opportunities in order to refinance our notes and ABL as we work through the 2024 year.
Steve Ferazani: Thanks, Chris. Thanks, Keefer.
Keefer Lehner: Thanks Steve.
Operator: Thank you. Our next question is from John Daniel with Daniel Energy Partners. Please proceed.
John Daniel: Hi, good morning. Hopefully, you can hear me.
Christopher Baker: Good morning, John.
John Daniel: Chris, I got a question on the safety shutdown, the standdown, are you seeing any of your customers – and it might be a tough one to answer, but are they changing their behavior where they’re eliminating or scrutinizing the vendors, some of your smaller service peers, with respect to their safety, maintenance programs and insurance?
