Name is Jack Greenberg with the Southwest IDEAS Conference hosted by Three Part Advisors. Thank you all for coming out today. Our next session will begin with Ranger Energy Services, traded on the NYSE under the symbol RNGR. Presenting on their behalf is Stuart Bodden, their CEO, and Melissa Cougle, their CFO. And with that, I'll hand it over to Stuart to begin. Thank you.
All right, thank you. Can you guys hear me okay in the back? Yeah, I'm having a walk around. So Stuart Bodden I'm the CEO of Ranger, joined by our CFO, Melissa Cougle, and our Vice President of Finance, Joe Mears. So great to be here. We'll go for maybe 20, 25 minutes. Melissa and I will tag team this, and then we'll open it up for the Q&A. And feel free to interrupt me. We're more than happy to answer any question. Pretty excited about a lot of the good things that are happening at Ranger. If you're not familiar with the story, we are one of the largest well service providers in the United States. When we say well service providers, we're not drilling new wells. We're going back in and maintaining the existing wells. We are traded on the New York Stock Exchange. Our ticker is RNGR.
Our market cap is about $360 million. A few things to leave you with, and we're going to kind of tell it to you a few times as we go through this. One is we are a production-focused company. And what we mean by that is more of our revenue is tied to the production side of oil and gas versus drilling or completions. We think that's important because it's a lot more resilient through the cycle. And you'll see that even though there have been drilling rig count declines over the last couple of years, our business has actually grown. So we'll tell you that as long as more new wells in the industry are being drilled than are being plugged and abandoned, that means our total addressable market is growing. So one thing is we're a production-focused company.
The other thing is we convert a lot of our EBITDA to free cash flow. So we would say approximately 60% of our EBITDA converts to free cash flow. We are debt-free. So we are zero net debt. We have a very attractive capital returns program. We pay a dividend. And we have also bought back almost 15% of our shares over the last 18 months. So again, high cash flow conversion and a very attractive capital return program. We are also, again, I think I kind of mentioned our balance sheet. It's something that we're very proud of. Again, we just think it gives us a lot of optionality. We can do capital returns. We're confident in the dividend. And also if M&A opportunities come up, we can execute these at the time.
You're ready?
No, you're good.
Okay.
To help you scale the size of the business, I'll kind of go down here. These are 2023 numbers, but the 2024 numbers aren't dramatically different. In 2023, $636 million of revenue, $84 million of EBITDA, and $54 million of free cash flow, and again, over the last 18 months, we've given about $40 million back to our shareholders through capital improvement, dividends, and share repurchases, and then where are we? So, we're not in the Northeast. We're not in California, but we are in Permian Basin, Eagle Ford, a little bit in the Haynesville, Anadarko, and then the Bakken, Rockies, so kind of right up the west-central part of the U.S. We tend to have a lot more oil exposure than we do natural gas exposure, but we talked about that. That could be a potential catalyst going forward, but that's where we play.
Again, we tend to be a lot more of our revenue in our business is associated with the production side of the business. So what we have across the top is a very simplified value chain: drilling, completion, production, and decommissioning. So on the drilling side, none of our service lines are exposed to the drilling side. So despite rig counts, that really doesn't impact us. On the completion side, maybe about a third. And it comes in a couple of different ways. So with the well service rig, you can go back and drill out the plugs right after a well has been completed. When we say that, what happens is you set a plug, you frac a stage, you set a plug, you frac a stage, you work your way up.
So when you're done with that process, you have a well that's been fracked, but it has a bunch of plugs, so it's not going to produce. You can use a well service rig to drill it out. You can also use coiled tubing to do that. So we do have a small coiled tubing business in the Rockies that has gas exposure there. And wireline, you can use that a little bit as well. But the bulk of what we do is on production. After you drill a well, you typically need to go back into that well within the first year. And the reason you do that is you need to put it on artificial lifts. These big wells have great initial flow rates, but then as the pressure declines, they tend to not flow on their own.
You need to put in a rod pump, an electric submersible pump, a gas lift. You need a well service rig to do that. And then you need to come back into a well every year or so to do routine maintenance. Sometimes it's routine. If you think about your car, sometimes it's, hey, we're just going to go change the oil. We're going to balance the tires, maybe do a front-end alignment. And sometimes you need major rework. I need to do transmission. I need to do a new engine. So again, in those kind of situations where you would call us. And then obviously decommissioning P&A. You hear a lot about the Orphan Well Program. We are starting to do some work there. We do a lot of P&A work with our biggest customers.
A lot of times for them to get new permits, they need to go plug in the maintenance system that we exist as well. I mentioned that again. We believe that because we are more exposed to production cycle, that we're a lot more resilient through the cycle. Hopefully, you can see this. What these are here. We've broken down spend over the last kind of 13, 14 years. The dark line here, this is production spending. This gray here is completion, and the down here is exploration and drilling. Obviously we do have volatility. If you kind of follow, again, the darkest line across the top, you can see what production spending has actually grown at 60%. Completion has grown to 21%. Exploration and drilling has actually come down, particularly as on these shale wells.
We're moving more into a, I think, kind of a development mindset. Now we have a big installed base of wells that we need to go maintaining. I mentioned earlier, we really kind of operate in three segments. Our high-specification rig segment, that's our well service segment. It's about half of the business, about half. Wireline is a little less than a third, and then ancillary. If you think about high-specification rigs, we really think we are the gold standard to kind of lock, if you will, of the industry. We have great market share. We tend to work with a lot of the majors. We're the largest service provider for all of Exxon, Chevron, Conoco, Oxy. That's really where we do our best work because these are companies that want to make sure that you have well-trained crews, certified equipment, equipment that's been properly maintained.
They also want complete packages around those well service rigs. And that's really what we do. On the wireline side as well, we have a big major business, particularly on the wireline side. The completions part of that market has been relatively challenged. And so we are making a pivot towards more on the conventional wireline side, being more production-focused. And then ancillary, this is where we have our plugging and abandonment business. I mentioned we have a small coiled tubing business that we picked up in an acquisition back in 2021. We have a rental and fishing tool business. Then we have a business that's small but growing quickly called Torrent. And Torrent is infill gas processing. You've probably read about all the demand for infill power. Well, that power is very often fed by infill gas. And that gas stream needs to be cleaned up.
And we have mechanical refrigeration units, as Torrent does, to clean up those gas streams. I think what I would just tell you, if you look at this, we think that a lot of these are very, very complementary. And we're very disciplined about bringing new equipment to market. Because we've grown up through acquisitions, we do think we have some additional capacity that we can deploy, assuming the returns are there. If you talk to us, we are very much not in the camp of, "We're going to chase market share and drop price to get it." That's not who we are at all. We're very, very returns and cash flow focused. Which kind of gets me to this page, just a couple of a lot of numbers. I'll just point you to a couple of them. One, so our return on invested capital averages about 9%.
Across this top here, so this is our trailing 12-month free cash flow and how much capital we've returned back to shareholders. I'll sort of point you through Q3 of this year of the last 12 months. Over $15 million in our free cash flow. We have returned through dividends and share repurchases, about 59% of that. Here in this middle line here, what you can see, this is our EBITDA per quarter and then how much we've returned. A bit of a challenging Q1. We do have seasonality. A lot of what we do is on an hourly rate. So things like holidays, holiday impact, how many Saturdays in a month, things like that we'll watch pretty closely. But really the last two quarters, I think, demonstrate the real strength of the business. In Q3, we had $25 million in EBITDA and over 40% cash flow conversion.
We'll see these numbers go up in Q4. There's always Q3 is a bit of a working capital build for us because revenue is too good. This is our highest revenue quarter, and then you can just see here annual revenues along the bottom. You can see the big jump here. Melissa will talk about it in a little bit. In late 2021, or in 2021, we did three major acquisitions that, depending on how you count assets, people, revenue, we doubled and tripled the size of the company. Wanted to just highlight a couple of things. I mentioned it earlier, but again, our high-specification rig business, our well service business is really our flagship service line. If you look at here, so this is drilling rig count, kind of quarterly. So if you start in Q2 of 2023, 719 wells or sorry, 719 drilling rigs.
The drilling rig count has gone down. This has been our revenue in our high-spec rig segment quarter over quarter. So despite drilling rig count, again, this is the benefit of being production-focused. We've actually grown the business despite drilling rig count declines. And this is, you can see the EBITDA profile, how it's been growing. You can see the Q1 pickup. There's a few different things that happened there to kind of strengthen the business and also the increase in margins. And again, a lot of this is on the back of, with these bigger customers, they're wanting more and more kind of services offered from Ranger, which is really starting to benefit us. And then finally, on my part, there's a lot of questions. We get a lot of questions about industry consolidation. Exxon bought Denbury. Exxon bought Pioneer. Chevron bought somebody who's going to buy Hess.
Conoco's buying Marathon. Oxy bought CrownQuest. We get a lot of questions, "Well, what does that mean for you?" It's actually a minimal benefit for us. Again, we tend to work with the majors. And what we're finding is in the wake of these acquisitions, they're saying, "We want fewer vendors. We actually want fewer vendors. We want to make sure that they're reputable. We want to make sure they have a clean balance sheet, a good safety program." So what we've really seen in the consolidation has helped us. And you can see just over time, again, we get the question, "Well, wait a second. The market has some headwind. What's happening to your price?" Well, like you can see, our blended rates have actually been increasing over time. And a lot of this is, again, we're very returns-focused. We're not going to give away work.
And also we're putting more and more equipment out on location, particularly with our biggest customers. And then if you just kind of look, for instance, like who we do, much more than half, we're probably both running 60%-70% are with the majors. So again, that's really when you think about Ranger, how do we differentiate ourselves? That's really, again, our core kind of bread and butter. So with that, I'm going to stop and turn it over to Melissa.
Thank you, Stuart. It's probably worth mentioning if you do look at customer concentration, you will see we get questions at times around, "Hey, your customer concentration is really heavy." And we say, "Yes, but it's not so bad." And we feel a bit more comfortable about it when those concentrated customers are like Exxon and Chevron and Oxy. Yeah.
We showed you a little bit of this through the high-specification Stuart did a couple of slides ago on sort of just the performance, and I thought it was worth revisiting through the lens of, "Here it is again," so this is actually the annual consolidated revenue, and what you can see is we did have this big shift after the acquisitions in 2021, but what I really wanted to point out is there was a 20%, and we sort of alluded to it through the high-specification rig business, but there was a 20% drilling rig count decline from 2022 to 2023, and through that lens, Ranger was able to grow revenue and grow EBITDA.
And if you think about that in 2024, if we haven't closed out the first half yet, when you think about that through the 2024 lens as well, this year, I think the last one that I looked at last night is 585 rigs. So rig count has taken another over 9% decline this year. And largely, it's expected if you look at our consensus, we'll have year-over-year a similar profile. So we have stalled out a little bit this year. But what we would tell you is if you look at all of the underpinning service lines, not only well services, but every service line save the wireline completion service line, which Stuart kind of talked about a little bit, everything else has grown year-over-year.
So when you look at it year-over-year, even though revenue is projected to go down, our EBITDA will largely be within kind of stone's throw year-over-year. And that's really on the back of every other service line actually growing and almost closing the gap on wireline completions. And we get really excited. What we would tell you about, why to be excited about Ranger. We get really excited because we're in a trough right now. And this is what a trough looks like for us. And so as LNG export capacity or gas prices or there is any catalyst out there, then there's just upward momentum to find on the other side of that. And so we really get excited when we look to the future and we see something catalyzing.
If that doesn't happen next year and we repeat this at our current cash flow conversion rate, there's still lots of great things to do, but when that catalyst happens, we'll really be able to seize the opportunity to keep growing the company. Yeah. Stuart alluded to acquisitions, and I thought it was worth revisiting because we did a series of acquisitions in 2021, and we would tell you in a space that a lot of bad deals got done a long time ago, Ranger's done some really awesome deals, and we took a bet on the other side of the pandemic in 2021. We invested about $75 million as the cycle was turning, and we were able to pay that back and have some outrageously good returns to bring to our shareholders now in 2024.
And so those investments we made back in 2021 are producing on average about $15 million in EBITDA per quarter. So it really did transform Ranger as you know. So if you've seen Ranger before, the company that we know today is very different on the back of those. And we feel like there's more to be done. You heard Stuart talk about whether it's the Torrent gas processing line. That's very small, but it has a huge opportunity for growth. Stuart talked about the plug and abandonment business. It has $4.7 billion IRA dollars being allocated to it. A huge opportunity for growth. So we get really excited not only in the flagship high-specification rig business where we have a leading market position holding maybe 15% market share. So there's plenty of opportunity to grow in the flagship business.
But we have these burgeoning sort of smaller businesses underpinning as well that have lots of opportunity to kind of feed in the future. So this is. I used it when we were meeting with an investor a little bit earlier today. We're quite excited because we feel like we've been working very hard over the past couple of years to find investors. And it's super encouraging. I think Stuart and I will walk away today. This is the most full room we've had. And we think a lot of it has to do with this slide right here in our capital returns program. As a small cap OFS company, we made a call last year because we really very fervently believed in the cash flow generation potential of this company.
And we said, "What better way to prove it than to put a base load dividend in there?" And we had some investors at the time were like, "Well, can you pay it?" And we're like, "Yeah, we think we can pay it under just about any scenario." And so we committed to a base load dividend. And we've had multiple buying opportunities. And we've actually repurchased nearly 15% of the company, as Stuart mentioned. So 3.3 million shares out of where we started was 24.5 million shares. And we bought those back. And feel free to write it now. We bought those back at an average of $10.36 a share. And today we're trading at $15.75. And we feel really great about the return we've created for our shareholders and what we've been able to do with this capital returns program.
And we'd like to think, "Well, that's the reason all of you are here today to hear from us." So it's really gratifying. When we look at our cash flows that we've had over the past year and a half, we've allocated the vast majority into the repurchases. We have that base load dividend. And we have chosen to make some investments. And I think as we look to 2025, we start to make a compelling comparison there. So now we're trading at $15.75. We have made a minimum commitment of a 25% free cash flow return. So as we generate cash flow, as we said, 25% is coming back to shareholders no matter the instances. But given the cash flow profile of the company, we think we can continue to really lead effectively the organization with the other 75%.
So this year, 80% of all of that went back purely in the form of share repurchases with a little bit of the base dividend. But in the future, we'll be looking for where else can we grow again. And this is just revisiting sort of all of the investment profile. But we really do feel like we have really compelling returns no matter sort of the lens that you're looking through. We've got good return on invested capital. We've got strong cash flow conversion. We're generating good EBITDA. We're showing resiliency. This production focus, we really feel like all of that returns focus is actually generated by this production focus we have. So sitting in a customer's office cycle, we don't get nearly the volatility. So when it's drill day, we drill. We get some tailwind from that. But more importantly, when everything shuts down, we don't shut down.
Being able to really have consistent returns over time and not trying to ride and whip you through the cycle is quite important to us. We feel like benefiting from the shareholders over the long term. One thing we really didn't touch on in this, but it's worth it. If anybody wants to talk about it afterwards, we have plenty of asset capacity. We have disclosed we have about 400 rigs. We have about 175 that sit out in the field that move between well sites on a daily basis. We actually have a lot of idle asset capacity that when we referred earlier to this catalyst for growth, we have plenty of rigs that we can actually deploy into the market as and when the market can come there.
We're not busy trying to push them out today because we don't want to drive down price. We're very happy with the return profile. But as the market creates more capacity to absorb, we will be there to bring it to bear and create a return. We've talked about the capital returns framework. And then again, we don't feel like we're done with consolidation. We've seen a lot of customer consolidation. The major E&D operators do deal after deal after deal getting announced over the past 18-24 months. And you've seen a few deals announced in the services space. But we feel like there's a lot more work to do to really consolidate, which are a lot of stranded PE and public smaller cap companies like us. But no one really has a capital returns profile. No one really has the strength of balance sheet that we do.
And we really feel like we make a great vehicle to continue that consolidation. I think that's all we have prepared. We're good on time. What kind of questions do you have?
If you stop the mutual return of capital, the state goal is 25% each and every year. I'm sure you've done a lot more there.
Right. Correct.
Would you guys anybody in the oil service side looked at E&Ps and said, "We should have a base dividend and a variable dividend all along with the buyback?" Which is pretty common in the E&P space. Not with anybody in the oil service.
Yeah. There are questions to paraphrase that in there too because it was a repeated question.
So the question was, in the E&P side, you see people have dividends and then a kind of special dividend on top of that or a variable dividend and then also share repurchases. And I think keeping honest on a lot of times on the variable dividend, it might tie it to commodity price or it might tie it to, let's say, this could be my production profile and then anything over X amount, I'll return it to you. Like Diamondback, when their stock's come down here recently, they're like, "Okay, well, we're going to do a buyback on a stock and we'll be in there and pick it up." And then the stock goes way up and they just. They go to some very big M&As and very good. So they have three levers they can pull for capital return.
I mean, I'd say for us, we've debated, I'd say, at the board and on the management team a lot whether or not a variable dividend makes sense. Since we don't tend to have some of this volatility based on commodity price is something that we haven't gravitated towards, and we have some investors that are like, "Look, we like a dividend. We like share repurchases, but a variable dividend feels like you're not getting credit for it. You go up a little bit." I'm not sure that's necessarily the right answer, but at least for us, I think we've struggled with would we even get any credit for it or not,
well, and I think also just maybe going back to if you look at where our share price has moved, it's been the absolute most compelling investment for us until very recently.
I mean, far and away, pretty much versus anything else has been rebound on our shares. So I think it's starting to become more part of the dialogue. But I think the pushback is we just heard from an investor yesterday. And not a good enough, there were two of them on the call with us. And one of them said, "Have you thought about it?" At the same exact comment that you made, "Have you thought about a variable dividend?" And the other investor that was on with him, his partner, said, "That's the stupidest idea ever." And so I think it's now becoming part of being on our radar screen more. I think that is the concern is will the investment community really appreciate it and acknowledge it since it's kind of a uniform thing to do? But hey, we sort of bucked the trend last year.
Most everybody bought back shares first and then put a dividend in and they demonstrated that. And we said, "No, we're not going to wait because we want people to know we have this firm commitment." So I think there's not. But up to date, it's just been like, "Okay, the base load dividend made sense because we want to show this sort of perpetuity commitment." But every dollar up and above that has been so compelling to be over repurchases. It just hasn't been as compelling as the questions so far.
And I think one thing I would add to it with share repurchases, look, we very much look like we're making an investment. We can do organic growth. We can go buy a company or we can buy our own shares. I mean, ultimately, that's kind of how we compare it.
I think as Melissa said, I mean, there were some points when the stock price was under pressure. It was, I put a joke, "You buy your own shares, there's no integration risk." It was just incredibly compelling to push a lot of chips in there. Thinking about acquisitions, if there's going to be consolidation and you all are part of that, would you anticipate making additional acquisitions that are tied to operating expense of your customers or more of that CapEx budget that would bring more volatility to your earnings but potentially have other benefits? Yeah. It's a great question. It's a very optimistic question. We really like being more exposed to the OpEx side. So I think there's been a few businesses that we've looked at that would be 75% OpEx and a little bit of CapEx and things like that.
But it's hard for us, I think, to really say, "Well, we're going to make a big pivot or shift into a cementing company that's really fundamentally exposed to new wells." Again, I think we'd much prefer to be kind of where we are. And I'd also say if you look inside the business and I think some of the things that are really we see a lot of growth. We talked about the P&A business, which very much sits sort of later in the life cycle. Our infill gas processing is very much tied to, well, obviously, cleaning up infill gas, but more on the production side as well. So never say never, but I think that we're really much more focused on staying kind of in the production side versus trying to be, again, expand our exposure to the drilling and the completion. Other questions?
You said that you were more exposed to oil versus natural gas. Can you expand on that?
Yeah. If you look at the basins that we're in, it's really the question was, could we expand on more why we're exposed to oil versus natural gas? A lot of that is a function of just where we're located. So if you look at our business, very, very roughly, it's about a third of the Permian Basin, which tends to be associated with gas and can be pretty oily. A third kind of Texas, non-Permian. So we have a lot of Eagle Ford exposure, a little bit in North Texas and Anadarko, which is more gassy. And then kind of roughly a third that's sort of Bakken pretty well in the basin again. And a lot of it is just a function of just where we're located.
But what I would say, and I appreciate the question, because we had a lot of, well, what's the catalyst? What all of a sudden really sort of drives things crazy? A lot of this equipment is mobile. And so what I think we feel like we've seen, we've spent over the last two years defending some of the equipment that drove in from the Anadarko or drove in from South Texas to compete with us in the Permian Basin. If you get LNG exports at natural gas prices for roughly the next, call it, 18 months, then a lot of that equipment doesn't necessarily compete with us. And the market would get really, really tight, in our opinion.
And so we think it could be a real catalyst, even if we don't necessarily mean we're going to go triple down in the Eagle but just, again, I think there is equipment that we're competing with right now that's trying to be redirected out of the CapEx basis. Is that a yes?
Yeah.
And probably one thing to just add on to that. I'm sure that I think it's a matter of we talk about asset capacity. So as those assets move over to Permian, Eagle and chase gas drilling profile, so it gives us the capacity to add additional rigs into the market and hold price. But it also gives us the ability to kind of push price further.
So as supply starts to tighten up, we can go back to the customers and say, "Okay, we're ready for the next five years."
I guess maybe just sort of a broad question. Just looking at the way it's trading, right now, you guys are trading like 4X. It seems like the market might not quite be buying. They probably think there's some sort of downturn coming. If an investor came to you and said they're just not quite confident in terms of it's all tied to operating expenses or CapEx, what's sort of your rebuttal to that?
I think a lot of it is just starting to look at the track record, and I think that's fair.
I think sometimes we'll have investors that will come in and say, "Wait a second, I looked at oil services 10 years ago, and that was really a challenging space, and I'm not really interested." So I think a lot of times when we talk to investors about that, they say, "Well, a couple of things have really changed." So one thing that's changed is this space is now more consolidated on the local services side. As Melissa said, we think we can go more. But one is you now have the top four or five players really have about 50% sort of market share, maybe not quite that sort of in totality. And if you looked inside the biggest players, the majors, we have more than that.
So you have really a more concentrated group serving the biggest players that have the most consistent profiles, which means we're getting very, very different pricing and really have a lot more runway in our work programs than we had 10 years ago, I would even say pre-COVID. I think the other thing that's really started to change is, and actually just starting to kind of start to see it, is our base rig rates have been very, very consistent, but we're putting more and more equipment out on location. So we have our biggest customers say, "Well, it used to be that it was like a Ranger rig and a Ranger crew." And now they're like, "Well, but then if there's an issue with the BOP, I got to call somebody else." Well, let's use a Ranger crew.
Then all of a sudden it's like, "Well, I want to do it on the hydraulic system. I want to do the accumulator. I want to do running the BOP." So what's now happening is they're saying, "I just want to deal with one player." So we're now putting out more and more complete packages for these biggest customers. So it just looks like when you go on location, it used to be there were five different logos. Now, increasingly, there's one or two logos. And that's been a real benefit for us.
I think the last thing I would just say is I think what's changed is, particularly with the largest players again, they've figured out, and I've been in conversations with a number of senior operations folks or CEOs, and they said, "I used to have 15 well service providers, and I had two that were really good, and I had a few that were okay, and then I had three that were really a problem." And I said, "I don't know how to manage it." So one of our biggest customers literally two years ago came to us and said, "We have 15 well service providers, and we're going to go to three.
And Ranger, we want you to be we want you to be the biggest one, and we're going to give you long work programs, and we're going to ask for this kind of investment." And that just changes the game. So white space management is completely different. Crew continuity gets a lot better. Safety as a result gets better. So a lot of those things, they sound small, but they're really making a big, big difference in the day-to-day operations. And that translates into returns.
And I would just add to that. So everything's sort of said operationally, but I think just technically you're referencing as well just the valuation profile. And I would just comment and say, if you looked at us six months ago amongst peer groups, the peers, Ranger amongst our peers, most of us traded within a half-turn EBITDA multiple of each other.
We are now. There's a few of us with a healthier cash flow profile that have now caught up another term, so we're now probably caught up with the pack in that term. What I would point you to, however, and I think what we think about the future and the ability to continue to grow, I talked to you about the FCF and how they tend to hire a number, but I think what's more compelling is go check our cash flow multiple, and so a year ago, we were like, "Boy, it was sure because everybody talks about EBITDA multiple. It was sure be nice to catch up with a peer group," but for us, the next boat we out there is really our cash flow multiple, and we are really a really compelling investment when you look at how much cash flow gets thrown off the business.
So, I would say we still have a lot of room to run it for every operational reason, as Stuart said, and also on the technical side from a valuation perspective.
Just with our last moments here, you referenced this desire to have fewer logos at the workbench for 15 years now. I've been hearing that so much before.
What happened?
Yeah.
It's a fair question. Okay. I got 30 seconds. Because I've been saying the same thing for 20 years. Oh, they're going to pay for safety. Oh, we're going to, and it's not bundling that. But I think that's one thing is it's not like, "Oh, we're going to bundle." But I think what they've all figured out, a lot of it is just trying to do better vendor management. They're saying, "Look, we want to make the one phone call for everything on location.
If something is happening with the accumulator, I go, "Well, that's KLX's accumulator. That's not my problem." They're like, "No, Ranger's going to be your problem.