Dawson Geophysical reported a net loss of $7.8 million for the quarter ended September 30, 2020 — inclusive of $4.1 million in non-cash depreciation and amortization charges. Capital expenditures were reduced to just $58,000.
Notably, over $21 million of prior quarter accounts receivable converted to cash, thereby drastically reducing Dawson’s credit exposure and resulting in a $51 million cash balance as of September 30, 2020 — composed of $45 million in cash and equivalents, $5 million in restricted cash (to secure a line of credit), and $583,000 in short-term investments. CEO Stephen Jumper discussed the difficulty Dawson faces in the industry down-cycle — “The current downturn in the oil and gas industry is one of the most difficult periods I have experienced in my 35 years in the industry. Reduced commodity prices triggered by the COVID-19 pandemic and an oversupplied oil market continue to weigh on our operations and will likely remain so through the end of the year and into 2021. That said, we are well situated to withstand the current downturn as our cost cutting measures, strong balance sheet and investment in state-of-the art equipment in years past has positioned us for a strong recovery once the market turns. We continue to believe as E&P companies focus on returns as opposed to growth, the use of high resolution seismic data should play an important role in achieving that goal. As noted in our previous press releases, I want to thank all of our hard-working employees and our valued clients and shareholders during these challenging times.”
Week in Review ― October 30, 2020
Dawson Geophysical Company provides onshore seismic data acquisition and processing services. The Company acquires and processes 2-D, 3-D and multi-component seismic data to clients, including oil and gas companies and independent oil and gas operators.