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Lonestar West Inc. (LSI.V) Founder, President and CEO James Horvath Interviews with The Wall Street Transcript

67 WALL STREET, New York - February 27, 2013 - The Wall Street Transcript has just published its Oil & Gas: Drilling Equipment and Services Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs and Equity Analysts. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Capital Expenditures and Consolidation Activity - Frontier Exploration and Development - Shale Drilling Capital Expenditures - Oil Price Expectations - Shale Drilling Dynamics - Shale, Offshore and Deepwater Drilling - Oil and Gas Price Divergence - Offshore Deepwater Oil Discoveries

Companies include: Lonestar West Inc. (LSI.V) and many more.

In the following excerpt from the Oil & Gas: Drilling Equipment and Services Report, the Founder, President and CEO of Lonestar West Inc. (LSI.V) discusses company strategy and the outlook for this vital segment of the oil and gas industry.

TWST: How would you describe the outlook for the industry in general, and for Lonestar in particular right now?

Mr. Horvath: The outlook in general has never been stronger. I wasn't around in the 1980s when the world collapsed. My first taste of a real recession happened in 2009, and it fixed itself relatively quickly. And the outlook is very bright. We're 95% to 100% utilized today. We turn down a ton of revenue everyday just based on lack of iron. We have never been busier.

We're adding trucks as quickly as possible and keeping the utilization rates extremely high. What's coming down the pipe for 2014 is going to be exceptional. I don't know how these companies are planning to accomplish what they say they're going to do. If you aggregate some of the major, major players in the industry, they're going to run 30 or 40 kilometers of pipe in 2013. In 2014, they want to run 3,000.

There are huge bids that we've been working on, and winning. In the past, we've never really worked that far out, but we've seen a shift in the industry as people work to get their equipment lined up earlier. That's a refreshing change for us, because we have a higher comfort level, and we know what's coming in advance. We're looking forward to 2014. I mean, 2013 has been phenomenal, and we have been setting record after record. But the big push for us is for 2014.

TWST: Do you need to grow a lot to meet the demand in 2014? Do you feel comfortable and ready to do that?

Mr. Horvath: When you're 100% utilized, you need to grow. We're confident. We have...

For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.