[ihc-hide-content ihc_mb_type="show" ihc_mb_who="10,13,14,16,18,19" ihc_mb_template="1"] Frac Spreads -1 to 206 No Where To Go! When you hit your one year high, you don’t have much place to go but down and that’s exactly what happened this past week with the Frac Spread Count. Operators have two distinct paths to take at this point: 1. Put more money into drilling 2. Plan on paying more for oilfield services. We believe operators are mostly dialed at this point and look for the Frac Spread Count to stay within the 200-240 range for the next few months. Oil and Gas Splits Institutional oil and gas traders use the Frac Spread Count because of it’s the high coefficient to production. Last year we started looking at the national count to understand which spreads (sets of oilfield equipment that are used for hydraulic fracturing) are used for oil extraction vs. gas extraction. Yes, its true that water, gas and oil are extracted in part throughout the extraction process however the underlying goal is distinguishable. As of this past Friday we have 175 oil-focused spreads and 31 gas-focused spreads out of the 206 active spreads in the United States Electric spreads aren’t everywhere…yet. The move from diesel powered spreads to e-fleets (turbines powered by natural gas – field, cng, etc.) is very slow. The market is owned by Evolution Well Services and U.S. Well Services but has gained competitors from Halliburton, NexTier, Liberty and Pro-Petro. With NexTier sending out a press release already, we’re patiently waiting for Halliburton, Liberty and Pro-Petro to announce their transition plans (if any at all). All have been testing in one way, shape or form (in the field with an operator), but haven’t announced anything rocksolid. Primary Vision is tracking under 700k fully electric horsepower in the United States. [/ihc-hide-content]