Secure Energy Services Inc Q3 2021 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Keith MacKey - RBC Capital Markets, Research Division - Analyst : Just wanted to start off on capital spending for next year. So targeting mostly sustaining type investments, talked about some landfill expansion. Just curious, how are you thinking about the return metrics and criteria for new growth capital projects beyond the internal sustaining projects? Are you thinking about increased IRRs maybe relative to the past or increased take-or-pay type commitments? Or just curious where your thoughts are on that right now?

Question: Keith MacKey - RBC Capital Markets, Research Division - Analyst : Just wanted to follow-up on the line in the press release as well. Talking about longer term opportunities such as CO2 sequestration infrastructure, just curious if any of those types of conversations have started yet, if you've done any internal analysis on maybe the amenability of your reservoirs or infrastructure, to handle that type of book as well. Any color you can provide on that would be helpful, please.

Question: John Gibson - BMO Capital Markets Equity Research - Analyst : Congrats on what I thought was a pretty strong start to the Tribunal integration. Just first off, I was wondering if you can give a sense of what utilization is on your midstream facility infrastructure currently? And I guess, where do you think you could go with some facility optimization? Obviously, understanding, utilization probably varies quite significantly across your asset base?

Question: John Gibson - BMO Capital Markets Equity Research - Analyst : And then I guess just following on that. With the utilization uptick you talked about, is that mostly just been driven by increasing production and drilling activity? Or is it -- have you started that rationalization at all yet?

Question: John Gibson - BMO Capital Markets Equity Research - Analyst : Second one, just around pricing. You touched on it a little bit. I'm just wondering if you could maybe talk about pricing pressure across your service lines. I realize you're a pretty diversified company. So if you could maybe just highlight any areas of strength or weakness right now?

Question: John Gibson - BMO Capital Markets Equity Research - Analyst : And last one for me, it's pretty high level. I'm not even sure you can answer this. But it's obviously nice to see you set specific carbon intensity targets, and I think it kind of sets you apart from your competition. I'm wondering if you could put a financial cost on achieving these goals as you look out into 2030 and 2050, even? And I guess, also, do you expect to realize the economic benefits from the capital that you're going to put into achieving these goals?