NCS Multistage Holdings, Inc. (NASDAQ:NCSM) Q4 2022 Earnings Call Transcript

Page 2 of 2

So that was kind of the journey we’ve gone through. It’s still a relatively small contributor to the overall revenue profile right now. We would anticipate that that starts to pick up a bit more through kind of the second and third quarter and hit more of a steady state in the second half of the year. The process that we go through with the Purple Fire in some ways and this is getting a little bit into the weeds, but there’s a process called a tow prep for some plug and perf wells where we can introduce that system with the wireline company in a very low risk basis. Get them comfortable with the system, and then they can start taking that out to regular stage work with customers. So as we grow the customer base, it starts with relatively low stage count trials and then we grow that into full stage work and take it from there.

And again, because we’re building and assembling the Purple Fire systems in the Permian basin, we’re starting out taking that product to the Permian so we can provide very responsive field service to both the E&P customer but also our wireline customers through that trial process as it gets adopted.

Bill Austin: Great. That’s all for me.

Operator: Thank you. Ladies and gentlemen, this concludes our question-and-answer session. I’d like to turn the conference back over to the management team for any final remarks.

Ryan Hummer: Alright, thanks, Rocco. On behalf of our management team and our Board, we’d like to thank everyone on the call today, including our shareholders and research analysts, and especially our employees. I truly appreciate the tremendous work and dedication demonstrated by our team here at NCS and Repeat Precision. We’re only as good as our people, and I’m fortunate to be able to work with the best team in the industry. Just yesterday, our COO and I visited with our supply chain and manufacturing team in South Houston to celebrate that team’s accomplishment of achieving over 2000 days of working safe with no recordable incidents in manufacturing over that time. Our team continues to provide excellent service to our customers and is commercializing new products and services that will enable our customers to be more successful.

We’re taking on demanding and technically challenging work and we are delivering results. We believe that we’re still in the early stages of a multi-year cycle of improved prospects for our industry and I’m excited by how NCS is positioned to participate in that growth and to deliver benefits to our employees, customers, shareholders, and other stakeholders. We appreciate everyone’s interest in NCS Multistage and we look forward to talking again on the next quarterly earnings call. Thank you.

Operator: Thank you, sir. This concludes today’s conference call. We thank you all for attending today’s presentation. You may now disconnect your lines and have a wonderful day.

Follow Ncs Multistage Holdings Inc.

Page 2 of 2