This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. The quotes are generally pieces of information that I find interesting or helpful to understanding the company, industry or economy and are not meant to provide summaries of the full content of the call. Other posts in this series can be found by clicking here. Full transcripts can be found at Seeking Alpha.
“Compared to our two primary competitors, we have delivered leading year over year international revenue growth over the last five quarters.”
“international revenue comprised almost half of our total company revenue, which clearly demonstrates the success on our ongoing strategy to grow our international business and balance our geographic mix. So clearly, we are not just North America pressure pumping company.”
“We are now expecting the rig count to remain relatively flat for the remainder of the year as we absorb a meaningful switch to multi-well pad activity among our customer base. We believe this incremental drilling efficiency gains will provide for higher service intensity. We currently estimate that pad drilling represents as much as 50% of the activity across key U.S. basins and we’ll continue to pick higher. As an example, we’ve seen the Eagle Ford growth of less than 40% pad activity last year to over 60% today.”
“At this time it’s too early to tell the full extent of customer plan revisions and their impact on activity in the fourth quarter. However, we believe that current commodity prices make budget reloading of more compelling option for our customers, which could help mitigate the risk to our fourth quarter slowdown.”
” we have continued to pursue in our (inaudible) settlement to resolve a substantial portion of the private claims pending in the Macondo multi-district litigation. However, discussions among the parties to the proposed settlement have recently slowed while BP challenges certain provisions of their previous settlement with the plaintiffs’ Steering Committee including a current appeal in the Fifth Circuit Court.”
“for us normalized margins would be in the mid-20s. And so obviously we’re going to need help in gas from the gas market.”[analyst comment] “we all know that rig count isn’t a very good denominator anymore and even that said, we don’t have a lot of confidence in wells and footage because it’s not reported very well.”
“A lot of [our stronger than peer growth] is still on the back of what we’ve seen in Asia, I mean, we really come on strong in Asia”
” in terms of the discussions we’re having with clients, better wells are still very important. And so that plays to our strength in terms of designing, custom chemistry for the best production, the sub-surface insight that allows us to design the best producing wells.”
“the pricing pressure doesn’t go away as long as there is the overhang out there of excess equipment”[in Egypt] “obviously it’s not going and hitting on all cylinders at this point in time. The customers have dialed back a little bit. One of the big issues we have is because of the concerns the government have, the ability to move around in the desert has been somewhat hampered, especially the ability to move explosives around and obviously, explosives are key to our business in terms of completing the wells.
And so, that’s just made the logistics of doing our operations there a little bit more difficult. But it hasn’t been shutdown but it clearly has been ratcheted back and obviously when you ratchet back and the revenue and add a logistical cost, it really starts to impact your margins more than it impacts your revenue.”
“I think the people that are analyzing our industry have got to move away from rig count. They’ve got to move away from well count and really look at sort of horizontal footage drilled…pad sizes are getting much larger and that just drives more efficiency and more service intensity.”
“if we’re rigged up on a single location, we have even particular equipment that allows us to move from well to well without having to move the equipment at all. So if we think in terms of start to finish or time between wells, we are just working more on a pad and the larger the pad, the more we work as opposed to rigging down and moving away to somewhere else.”
“with pad drilling in the efficiencies that our equipment is working today. As we look at it, you are creating effective utilizable space on a calendar, as we work faster and more efficiently.”