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Go back it is time this Tuesday to do our special weekly segment and company -- solid earnings and sales numbers.
But have not gotten much attention on Wall Street and if you run an oil company need to design build and maintain some engineering and pumping systems.
DXP -- this would like to be the company you call three year revenue growth.
Point 6% topping -- the S&P 500 -- a wide margin.
Also topping its peers that is translated to higher earnings as well -- -- EPS growth.
-- of course contraction for the broader market what about the stock chart wells take a look.
And while the stock has come off its highs -- about a year ago.
You could see really for the last three years -- almost nothing but an uptrend for DX PE is the ticker.
Four analysts covering the stock the average rating on it is a -- let's talk about it now joining us from Houston DXP chairman and CEO.
David little -- a little Brian Sullivan thanks very much for joining us.
You I was looking at some your products it's pretty detailed stuff engineering a lot of fluid control systems pumping systems where in the chain.
Of oil upstream and downstream -- -- do you stand.
We we -- on the productions we're not so much on the drilling side.
We help -- produce more oil and then also we downstream with the petrochemical and chemical plants.
OK so basically.
Sounds like -- then be up pretty solid beneficiary of higher oil prices.
Companies have more money to spend invest refurbish older systems and build new -- Well I think.
Product make comments Michael prices are too high.
Think it's gonna hurt the economy and ultimately hurt demand which which I guess we'll bring prices down which can be helpful that.
Would like see prices lower they have an incentive.
-- much lower prices to produce as much as they can and we're trying to help them do that.
And it's -- ditch and point of view from an oil related company and I appreciate -- honesty -- we don't hear.
Companies and oil say we big oil prices necessarily are too high at the moment and how high do you think they why understand your point lower prices produce more and set up higher prices maybe some people.
Politically or otherwise just are more sensitive to it don't want to take advantage of it.
Where do you think -- prices should be David.
Well I'm not -- I don't know what else more about -- our prices should be -- but but the really really are too high and and of course we'd we deal with a lot of different industries not just willing gas and so -- -- -- -- from -- put all wind turbines and and of course the petrochemical industry is there -- product what they make.
The man goes down and margins get tighter they don't do quite as well so.
We we just like -- the at all prices are artificially high that they should come down -- and and and the world will be a better place for.
You know we're looking at your customer lists some big names you got shell I think is your biggest customer Schlumberger is up the list Chevron is up the list as well in fact.
We're showing our viewers now some your top five top.
Customers and you know we know names like shell and Chevron have also been looking for other types of energy even getting into wind hydroelectric power setter up.
Is your relationship with them from the oil market mean that you've got sort of the front of the line.
For other types of alternative energy products and jobs.
Well we certainly have a very good relationships with those people.
We we we deal with them.
On shale plays and other other tight supplies so we're we're really always kind of their first for them and we are trying to meet their needs whatever they might be.
And of course we took.
President Bush's speech last week were outlined a number different initiatives more offshore drilling also mentioned the shale saying how much potential billions of barrels of oil.
Might be in the green river basin in some of the hard shale in the upper mid western region I got imagine if we continue to open that up then.
That's going to be very good for DXP.
Any Tom -- -- company's move into a new area we we follow -- and that allows those open up new stores and and to be a provider of minus repair and operating products for them and and in a -- pumping solutions so all all of that's good for us in terms geography expansion.
You know -- -- who got the Federal Reserve meeting today tomorrow inflation has been a hot topic.
Without regards to oil prices which as you said you believer artificially too high.
What kind of other inflation inputs are -- -- I got imagine one of the downsides.
Of a booming oil market.
Is that there's a lot more competition for workers you gotta pay them more and some of your SG and eight cost for gonna go and.
Are our biggest challenge we're we're hard about forty people a month is is finding good people of course we've turned the universities and hiring young kids out of college and and -- have quite an extensive training program.
But people and people calls this would drive the XP and and and -- that is what to tell how much your labor costs up.
There are up substantially and were we're dealing with bad and and it's not so much the labor cost per site whose.
There is you you kind of get what you pay for but it's just finding the people -- really become a biblical.
Okay -- those costs going up though I would imagine you also have some.
Pricing flexibility right you're able to because the competition.
For oil production and alternative energy you're able to pass through -- your higher cost your customers.
Yeah -- thank.
You know that that's ride as a distributor when it -- -- manufacture things we we we.
Use our people as experts to apply the product in meet the customers' needs and so.
He realizes that.
And we have inflation in the product prices are going and that labor costs are going and gasoline park service trucks is going and so.
Say they let us pass those filings on but but it.
It's it's an issue it's an issue -- an issue reminds -- All right DA XP chairman and CEO David little from Houston mr.
little we appreciate it nice to meet you and look for his senior guerra Fox Business.
Dave thank you so much for having -- -- -- -- -- is -- is all right so they go -- -- kind of refreshing honesty here CEO talk about.
Well prices maybe being a little bit too high -- -- about.
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