This week, we have highlighted our recent frac inventory count, where aggressive stacking has pushed active fleets down to 360 (after providers largely sat on their hands in early 2019). While this is constructive, it is TOO LITTLE TOO LATE for the frac market, with active fleet cuts only keeping pace with the dump in demand. At current oil prices, the 2020 outlook is no better, particularly given 1) disappointing attrition announcements 2) more gains in efficiencies and 3) bigger than expected E&P capex cuts. On a positive note, the current fleet count (360) is now below the level we believe is necessary to maintain US shale production growth.