Steve. Thanks
has QX maybe XX% end decline through of optimistic. well been March dramatic the the a forecast analysts' in documented of for over activity Although for fall
crude underperform Given further of the capacity we count mid-term. activity storage in completion the available expect lack to rig materially the
the conjunction in the However, aggressively the the greater wells long-term to impact – production dramatic new is in decline more supply. the shut-in with
required remains For and uncertain. the this reason timing eventual we're optimistic activity although recovery regarding the
our reduce heart in safety board to XX% evidenced to will can control cash that attention manage playbook that, continued I mid-March. at we costs and Cactus $XX similar and and compromising, and margins above variable despite to focus flow million downturn be will actively executive by XXXX during implemented business without XXXX by back our the and compensation a decision in adjusted generated be which XX% The you Cactus remind in that to annual This the payments. XX% over is free cost maintained company our execution. those EBITDA was interest to
savings million scale million made $X late the associate we in company-wide in to nearly U.S. cost related decision in on salaries of SG&A. by March headcount annualized reduce $XX Additionally, cut a resulting and was to which XX%
be resulted have first severance In in are million reduction amount early million headcount million and savings. April above expense cash to April. of company come cost the increased evidenced in a the million the we've at efforts annualized association implemented additional immediately cost the limited of as rounds $XX recorded savings. during the $XX These $X payroll-related announced additional by and These to with in our savings XX% cost-cutting effective first quarter of an cost expected have $XX U.S. in
term Given where in near activity planned. appears the further are cuts headed
half the savings, dramatically is bonus SG&A. discretionary to totaled year. be company's to XXXX payment this which allocated This On of in expected of top payment $X million these reduced was
product the limitations. quarter as rig deferred installation to trees second during of is our and production revenue to Looking the expect the being more storage count we takeaway than by be down primarily to business, due
in we're declines, volume freight. the We of total to variable XX% or business reduced indirect which product are costs to costs our response flex approximately expenses, direct with cost costs material able direct make up In accordingly. associated believe and largely these
share the share XX.X% achieve a we're quarter market a From company proud first to record. perspective, during
can. as dropping expected customers witnessed on a week-to-week rigs large quickly near-term as as they rig be drops the to figures simply are volatile Given count are basis
Cactus's with able to to historically Operators from XXXX gains have doors time on opportunities historically year-end tends share. increased From downturns in XX%. potential Recall efficiency provided increase over market share rate on once customer. Cactus to open with high than we're we've enjoyed a nonproductive a less significant XXXX go focus went success market and trial to XX% to year-end
As current downturn a pick consequence, provide will up we're optimistic that meaningful the business. new opportunities to
one with majors. quarter, During commenced the we the of first work
to weather many ability our sheet, chain, balance Cactus be downturn than to will variable we our more believe of our manage Given successfully and costs peers. our supply the able
witnessing the fixed to the more disruptions. notable of any reduces Chinese of Keep boasts and mind our our at in of impact currently capacity Regarding which facility decline first that returned supply Suzhou cost, chain levels not modest quarter extremely normalized plant the we're utilization. levels in end
our any to innovations during representing activity during of we limited side to rental cutting for move ability quarter rental XX% the period. and operators were Unfortunately the by customer with the business, evidenced of of revenue the suite all over the are given in extremely On barrels adoption first pleased market. near-term innovations as
while prices acknowledge the in near-term we not services business exceed confident benefits business and more value our efficiency from value costs. once remain the environment, the far and this equipment our and pursue and to resumes rental will significantly gains be provide. potential that resulting incremental difficult, customers we compromise extremely proposition activity Thus, lower the In of are environment the at proposition willing
ability our low million, Regarding margins $XX product An budget down be field by to as first XX% to Cactus continue of between business and the seasonally rental our million following driven XXXX service, reduce capital is activity. both the highlighted in this and quarter. a segment from $XX the by CapEx to of approximately XXXX attribute our recovery witnessed the fourth under-appreciated quarter levels. Revenues requirements in impacted
$XX deployment typically year to annualized in to We the drop the we CapEx generate rate lead equipment; flow of we run the have by expect to subsequent below XXXX. and and thus a cash time significant between end four-month commitment million expect three the of free
line the questions. opening I'd few like to highlighting close to before by a items
it commitment not an has Although field, their impact in to COVID-XX our circumstances. thank of all the associates. want a team unprecedented without direct to has for operations focus, on doubt dedication, had a on our I during our excellence these impact and safety had indirect
write impairment organization's charges; to in large those shutter this Many are investments this forced environment survive these more investment points our at to record the our favorable who of business down for industry absence highlights prudent downturn. longstanding strategy. being a commitment and And issues units, Cactus to
are in business. long-term Management investors this
macro So we caution, to in execute. reason while backdrop for our remain provides the ample ability confident
and us participate enviable being have historic returns placed in of model cash focus the business our fully importantly, position and on eventual to the recovery. able in More
this will to strategy hold predominantly identify bear emerging Internationally up natural the our work continue continue is our viable U.S. we outside the Australia, that In expand fruit gas-focused business of markets opportunities in activity develop we and into to pricing XXXX despite U.S. believe pressures. and targeted to expect as than better we to
aligned our shareholders set allocation, light. industry decisions our in Regarding capital with dividend our this uniquely continue remains compensation with to regarding flex and business philosophy the the level costs management mind. we'll cyclicality and and in team's make expenditures our to ability We
Given the with unprecedented nature returns. this focus of this a decisions on evaluate shareholder and all downturn, we'll carefully
Cactus navigate to this is summary, market in So challenging well-positioned environment.
and operator the Operator? And back the I'll turn that, Q&A. over can begin with we call to
