DWSN - Earnings call transcript Q4 2020 | Dawson Geophysical Company

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Operator

Please standby.

Stephen Jumper

Okay.

Operator

Statements made by management during this call with respect to forecasts, estimates or other expectations regarding future events or which provide any information other than historical facts may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management’s current expectations and include known and unknown risks, uncertainties and other factors, many of which the company is unable to predict or control that may cause the company’s actual future results or performance to materially differ from any future results of performance expressed or implied by those statements. These risks and uncertainties include the risk factors disclosed by the company from time to time in its filings with the SEC, including in the company’s annual report on Form 10-K filed with the SEC on March 6, 2020, and any subsequent quarterly reports on Form 10-Q filed with the SEC. note this statements also press this incorporated this and start statement to release morning we of morning forward-looking contents those regarding in please is as covered call conference statements. refer please the issued the by Furthermore, company’s the call that the company’s

found measure. earnings The minutes will applicable the is Geophysical Jumper, and of CEO not being non-GAAP ahead, A to the will Please scheduled During management to which call on which reconciliation like make this call is conference conference current I Chairman, is provide President www.dawsonXd.com. go the A And the is Stephen EBITDA, measure now in would for and the can Company. copy of company’s sir. be GAAP to Dawson references recorded. Today’s of release. call a the non-GAAP financial to located measure XX any guidance. turn company over website

Stephen Jumper

April. welcome Conference Call. morning. you, Operations Well, And and Geophysical to Company’s Quarter Earnings thank Good Fourth XXXX Dawson

As Steve President the CEO of Jumper, is April my and company. Chairman, said, name

me call is Jim Chief Financial Brata, Joining Officer. on Vice President Executive the and

to Before just call start few over. a I things the go

of at a time replay only Thursday, XX, be If you like therefore, the to March speaks listening. any call at today, Information may reported be of replay today’s section website www.dawsonXd.com. information to sensitive that this listen via no accurate are time on advised XXXX, and longer of call, it Relations you would as will webcast Investor of to available the going by a company’s

XXXX and quarter our XX, preliminary Turning XX months fourth ended results. to financial December

approximately $X.X decrease XXXX. XX, $XX.X quarter company XXXX, fourth the reported quarter of revenues ended XX, million, of compared the December for million For to ended December a XX%, the

common $X.XX quarter for of $X.XX compared loss the million for fourth ended ended or of XXXX. net net XX, $X.X quarter of XX, EBITDA to XXXX, a XXXX. $X.X reported the loss December of per quarter million reported The a December the negative for loss of XX, company stock, company of XXXX, or $XXX,XXX December loss to stock ended million of the the per quarter negative share EBITDA compared share For $X.X common

XXXX, For ended a compared revenues company reported the year the $XXX.X December year decrease XX, $XX.X XXXX. ended the XX, million approximately million, December of for to XX%, of

XXXX, reported or share million XX, For XX, full to year of stock, loss XXXX, to the The December $X.XX company ‘XX, ended common year full of company year for of that per for XX, loss $XX.X ‘XX the XXXX, ended narrowed of a XX% XX, stock loss for million have compared its year common for been December per the the ended $X.XX a share million the year decrease loss EBITDA December $XX.X million XXXX. the year net to approximately of of or -- should $X.X $X.X December December compared XXXX. ended

one the company fourth on crew of and crew third utilization of United the the was one low the in ‘XX, acquisition ending the one XXXX, The quarter periods for Based with through anticipates of at of sustained quarter. XXXX. first part available in the the operating States. into quarter and of During currently would downtime, for fourth latter inactive the the season, operated well data quarter crew first Canada one crew the company the of the quarter end in information of periods U.S. likely winter

end review of fourth related quarter company non-cash and ability the both Jim? maintains quarter, will first results. million of is the the call approximately short in improve. deploy the expense. a Reflected crews beyond note quarter outlook limited XXXX. now bad additional results to Brata, our when impairment first and the over market the and remains a on I will control who will turn return Then in year notice financial receivable to the visibility remarks final While conditions $X.X the I with debt to Jim

Jim Brata

you, $X.X million, were compared for approximately XXXX. Steve, for quarter good morning. XX%, the Revenues of quarter $XX.X and ended fourth Thank the of a XXXX December decrease XX, to million

XXXX, As $X.X crew earnings likely of periods same the stated $X.X compared a fourth of the with in $X.X periods one of XXXX the third XX%, the million, to The of General million, XXXX the income end the for in of fourth of the of of of compared compared million quarter. company of through of to benefit issued the quarter EBITDA was same Cost during period EBITDA XXXX. $XX,XXX this our or XXXX. negative share or of quarter, morning. same the an common ending XXXX inactive decrease recorded the release $X.X million XXXX, in the of decrease on the utilization quarter tax in negative Based winter of XX%, were with an XXXX. million first of $X.XX Canada loss for fourth and available $XX.X low loss of earnings company the data one $X.X a to to $X.X of at XXXX. XX%, and fourth of same loss quarter to the million one in first morning, in provided of U.S. income XXXX $XXX,XXX sustained the services quarter of operating fourth million, in season, was net the share, the the in fourth latter quarter and Net downtime quarter decrease quarter anticipates expense one quarter expenses to fourth into were compared reconciliation XXXX, XXXX. this information, in EBITDA quarter issued U.S. in the was An of in tax the quarter million $X,XXX crew was currently fourth fourth of in quarter of crew the XXXX. in compared release part We operated the quarter in expense of of $X.X the well million acquisition in crew administrative loss and quarter fourth quarter XXXX. per per compared the for a $X.XX a amortization Depreciation was in common $XX.X

XX, million XX, I’ll of of XX, ended Now, decrease expenses ended were $XX.X XX, and compared the loss December Revenues XX%, ended year of year -- loss to expense ended And the compared or administrative of December million compared were per the was from million XXXX XXXX. General $XX.X year for or million December and compared December the net in $XX.X XX%, XXXX. for XX, of common was I’ll million, of XXXX. December of XXXX. ended narrowed $XX.X $XX.X XXXX, decrease EBITDA XX, XXXX XXXX highlight were morning. year some million, to common of million, of to XX was $X.XX Depreciation sheet to a An $X.XX million, year for our $XX our the for December We XX, to a decrease to loss million million share XXXX. this balance year $XXX year ended $XX.X of earnings year the compared a December share, year decrease December services year for provided amortization XX, results compared for for a the some for $X.X XXXX. year the $XXX.X reconciliation per the Cost for XXXX. the XXXX net ended ended ended $XX.X in XX, December XX%, $XX.X issued loss XXXX for release items. the $X.X XX%, EBITDA to EBITDA ended the year now the million highlight year December million for a

our strong cash million. for back Our December comments had balance remain XXXX, to debt on financing our operations. $XXX,XXX, including short-term current and And Steve I’ll was $XX.X some we of million, XX, call of capital as with under $XX.X that, approximately sheet turn investments we continues ratio had X, and to the to X.X leases approximately working was obligations of

Stephen Jumper

you, thank Jim. Well,

the in second issued profitability with earnings years. three best and a of first operational crews fiscal our U.S. operated the up three We in many in XXXX in the and crews continued results morning, stated the to adversity. unprecedented this with the started during its market As out half first company of financial large release year Canadian in the The count channel quarter two count crews. The XXXX. company channel operation of year quarter was large of

earnings the related COVID-XX As lockdowns release, early impact dramatic our in and spring to quarter of late second reported a the experience began in economic summer. company

for capital production our budgets trade at significantly to level, began negatively reduced impacted turn demand prices which oil companies spending, in their and exploration As services. and low

channels a went As year promising and of for -- utilization strong from to crew the in uptick dropped. second time periods some in our levels of deployment result, channel proposals both the the U.S. oil Utilization in even half prices. in of and weak lessened seen first half gradual Canada have our the and challenged. the request for though of services Current for we existing remain year

as have companies we in the to We are and on that has to an chosen activity beginning with services time, hydraulic in lead the to overall active rigs this have U.S. will unable others. number note the gas the difficulties demand capital in their experienced economic some re-evaluate and recovery industry this fracturing E&P consolidate forecast different as oil E&P modest On spending activity for our in are as oil M&A financial companies projects. deployed slight crews of in service to in At the impact increase the activity improvements drilling the of space see signs a decrease

and However, locations. and and disciplined companies most on efficiencies economic need activity the by continue increased with backed oil services to seismic develop services this promotes and produce prioritizing demand their natural provide. focus E&P as their will data drilling spending, M&A gas shareholder indicates recent for capital increased we acquisition they seek for efficiency This returns

seismic In on lag ability to we behind are cost anticipate drilling As in to conditions most respond the data saving balancing somewhat measures, while response these activities. to the conditions and in our increases in cycles difficult when improve. down acquisition we market focused maintaining recent recovery rapidly completion

the cost costs previously press cost survey releases outsource These and administrative salary in reported December to company’s expenses. in these The have previously ancillary savings capital our steps enacted Board resulted we expenditures by reported items. were the as us result totaled taken of lower earnings $X.X in of COVID-XX months quarter approximately for for in year, steps are a ended services has release, budget upon forward of worldwide $X.X XXXX. XX, second maintenance Capital press as the this quarter XX for XXXX, several setbacks $X anticipates for the our general the the and capital Despite the Moreover, press highest deliver and company Directors to for pandemic, previous million initial and measures. quality As reduced clients. $XX,XXX including permitting million have saving million fourth we annual threats approved XXXX services. determined primarily our

our our for position Our state-of-the-art balance equipment improve. inventory, conditions recovery market strong unleveraged dedicated healthy workforce and us when and sheet,

above, are difficult shareholders take As I hard that, working times employees, improvement confident properly are remain all the to of and continued pending and clients that conditions But we and April, upcoming questions. better our in I’m prices. our on are thank work and I believe we near-term ready future mentioned with for oil trusted will we so stabilization of And our valued the ahead. opportunities. focused for as

Operator

we’ll Thank Researched of Instructions] [Operator first you. hear Potratz John from And Investments.

John Potratz

Good the morning, very you is for given going. everything how did Stephen. well quarter And

Journal for Does talked ground Just versus wondering gas. drilling putting CoX prospects, they into Street for and the the in ground. seismic in using activity that Exxon going oil raise they the CoX on back business prospects the given about storage Wall in are and this

Just data and a seismic there you? is more different for business therefore

Stephen Jumper

question [ph], interest appreciated your your Jay always. as and

understand commercial projects. We have well with would aspect, it are at some or that sequestration I have in today, aspect government have the academic consider several we as been involved over look component, The years isolated involved involved called you ones CoX been funding CoX projects. to what as the an as

a is, application. driven. hydrocarbons. and different a probably, to one, third places models do CoX we And if is you to do different in did conducive the of ‘XX, ground small we an was location survey it geologic secure did and that a What the look of if early back fairly we quarter subsurface where don’t It’s academic fourth to late it’s but our what are can was -- intent inject the that so accumulation same we’ve images of hold. XD actually know done image the get The science, for process typically a day-to-day we -- we quarter, identify it’s I at earth than and see

this looks if see and so And find inject our they a imagery CoX. closed reservoir secure to takes can to

recently, some are the work are projects this nature that I’ve specialize that combination There have been over years had that that some of of most are past. small We there out in them some the come a related. primarily CoX commercial exposed to companies they and we’ve across the type in in

isolated production a what answer from E&P is, to going I itself the standpoint than smaller forward. But nature will present typical yes, more would is from think tend and be And the a project. an question the exploration get opportunity CoX so you to in a little projects and it that

John Potratz

it’s more business, work? give Exxon you the business do still available someone But for have to you respectively to which crews new like the

Stephen Jumper

Correct. Correct.

John Potratz

Okay.

Stephen Jumper

-- yes. We Correct.

John Potratz

with now is this down, right being not work crews And to good the working, have?

Stephen Jumper

front And of projects they lead is. there’s currently behind bit has that time, go a work -- and looking or them. geologic bit at those in of have little to because we’re typically a of It in several the quite certainly of

John Potratz

it’s work. But Okay.

ability get Okay. they cancel locked a land, lot federal do you locked Biden down, ability hire closed work the a the it’s of they it have scientific that on Biden I question customers more that so they later to the have like to leases your did in of before the ability as that having in drilling, to geophysical areas? know big

Stephen Jumper

them works. when that U.S., we’re confident their like time in something lands, on to permits sitting years That’s places that, with process that at which I’m uncertain are and Western as Colorado, dealing confident the position come. of leases -- confident New occur, Jay, of Yeah. our we’re in are Wyoming, little many a have I on located Utah, am drilling I’m they how this Mexico, federal that that that. typically to customers many that for

And so to, not but it’s completely. and some that in affect my opinion, the new activity delay is to going entry stop new permits, going

of you’re a to Wildlife, -- have Management, Land you go with agencies still when Fish advance a seismic several do Bureau However, in you in authorities, to project and like permit and through process drilling, go the of federal that.

and have federal and it typically past to that don’t on anticipate lands. where huge it’s we permits a We -- And currently the making advance. sure things pipeline we’re of done so other time don’t taking in anything we in what the things going issue how studies you’re be the is than the it’s this been to doing actual just right at it’s in necessary and point types those affect seismic But approvals unclear. getting and

John Potratz

didn’t could Like we get land you will essentially now still have the they the drilling that do permits. and

Stephen Jumper

Yes.

John Potratz

to to do that? At they basic have able least permits that place in do the be

Stephen Jumper

means order executive that, understand I it. and as an And on I’m Yes. expert Yes. by no

days of new drilling a leases new understand it I moratorium put As on XX permits. just and it,

And of well have that have have so, most access the in as of lands operations or drilling. understand on it, E&P companies will advance federal permanents I

from I standpoint, permit I there will a So drilling leasing think be think, continued and activity.

determined. We’ve federal said, to project stop How worked I affects don’t an I is an will it. it be upfront. seismic how As lands think it yet forever. affects upfront it on

sure care federal needs take We to done all good doing land what we to relationship as right way. things. make folks. done. We what on lands And right have we the we’re lands be to the need be the surveys a on with private We federal do know great know

to just going near-term. we’re in as have the unclear that’s I’m So but what to effect confident,

John Potratz

for [ph]. West, is Okay. it the That relationships It’s have affect because not work a anticipated people big at least will constraint seismic still and future in there. it

Stephen Jumper

Correct.

John Potratz

have it’s There people several like you It’s What attracted great. amazing. filings. so Sounds lately? XXD been recent -- to it’s come

Stephen Jumper

you’re some most that the are greater for our many XXD you’re shareholders quite our the filing. of what think have Jay, I most think time. of part, I And that company than updated X% routine out seeing just Well, there are filings long-term seeing of for

John Potratz

Okay.

Stephen Jumper

Yeah.

John Potratz

Very very good. you Thank much.

Thank from someone question else. you. Next

Operator

no [Operator time. are appears And it further Instructions] there this at questions

Stephen Jumper

want take listening in. April, thank opportunity everybody to I for to you. this Okay. thank

they to want earlier, these and opportunity are I hard clients said to difficult this trusted in very our opportunity to support I working to thank through the I to diligently our for take want As provide really their behalf this shareholders. who of for times. our take our thank employees on want our shareholders opportunities certainly clients and and thank

it press very most and a we’ve as the I’ve call, this probably to our on challenging in release are, been We through. be time, continued challenging said

-- to are in encouraged are we $XX. prices recent We uptick encouraged oil with the

We prices see and the customers. capital will flow spending plans plans budget through, of E&P oil of the how our improvement

We and We really long or more stand a encouraging. are and less are still seeing completions, some drilling completions. on had uptake in drilling year about which certainly

on be about there’s in our sheet The E&P company behalf industry. balance some our optimistic future our and of to But our ketchup So ‘XX we’re work strong. -- remains done customers. of the

for We things our With days. talk XX in good the turn very have to when saving in maintain your is your respond but Thank to interest ability had you. around. close we’ll respond that, this significant about shape we Thank cutbacks and quickly, measures, call. in time I’ll and you ready equipment cost you and to again and

Operator

Thank your all you That participation. for today’s does conference. conclude

You may disconnect. now

Dawson Geophysical (DWSN) 11 Mar 212020 Q4 Earnings call transcript