Financial Data and Key Metrics Changes - The company reported a net loss of $49.4 million, or $0.24 per share, for Q2 2019, which included charges totaling $16.3 million pre-tax [7] - Excluding these charges, the adjusted net loss would have been $35.9 million, or $0.17 per share [7] - Adjusted EBITDA for the second quarter would have been $177 million, with $150 million of stock repurchased in the first half of 2019, representing 5.5% of shares outstanding at the beginning of the year [9][10] - Cash capital expenditures for Q2 totaled $96.9 million, down from $118 million in Q1, with a revised forecast of $400 million for 2019 [11] Business Line Data and Key Metrics Changes Contract Drilling - Average rig count during Q2 was 158 rigs, down from 175 in Q1, with average rig revenue per day increasing to $24,200 [16] - Average rig margin per day increased to $10,170, including $280 per day from early termination revenue [16] - Expected average rig count for Q3 is 142 rigs, with average rig revenue per operating day projected at approximately $23,700 [17] Pressure Pumping - Pressure pumping gross margin remained unchanged at $44.9 million, while revenues increased to $251 million from $248 million in Q1 [18] - EBITDA per spread increased by 18% over Q1, with expectations of Q3 pressure pumping revenues at $225 million and gross margin of approximately $35 million [20] Directional Drilling - Gross margin for Q2 improved to $8.1 million from $7.4 million, with expected revenues of $49 million for Q3 [21] Other Operations - Revenues in other operations decreased to $26.4 million from $31.2 million in Q1, with gross margin percentage increasing to 33% [21] Market Data and Key Metrics Changes - Oil prices began Q2 in the mid $60 range but fell to the low $50 range due to concerns about trade and inventory levels [14] - E&P companies are being more disciplined with budgets, leading to a slowdown in drilling and completion activity [15] Company Strategy and Development Direction - The company is focused on cash flow generation, having generated adjusted EBITDA of $368 million in the first half of 2019, exceeding CapEx by $153 million [24] - Plans to use cash flow for stock buybacks and debt repayment, with a cash balance of $256 million at the end of Q2 [28] - The company aims to maintain operational efficiency while restraining spending and generating cash [27] Management Comments on Operating Environment and Future Outlook - Management noted that E&P companies are slowing spending earlier in the year to avoid budget exhaustion, which may lead to lower drilling activity in Q3 [15] - The company expects a mix shift to more single well pads in pressure pumping, impacting overall activity and efficiency [20] - There is uncertainty regarding Q4 activity levels, but management believes rig count may not drop as much as previously anticipated [47] Other Important Information - The company declared a quarterly cash dividend of $0.04 per share to be paid on September 19, 2019 [29] - The board of directors increased the share repurchase authorization to $250 million [9] Q&A Session Summary Question: Can you provide insights on Q3 rig count guidance and customer indications for 2020? - Management noted that major international oil companies are holding steady, while public independents are managing budgets more tightly, leading to a downward shift in rig count [35][36] Question: What are your views on dayrates for super-spec rigs? - Management indicated that while there is pressure on pricing due to rig count declines, utilization for super-spec rigs remains relatively high [38] Question: How do you see the rig count and frac activity evolving in Q4? - Management expressed uncertainty but noted that E&P companies are managing budgets earlier, which may stabilize rig counts [47] Question: What is the competitive landscape for pressure pumping? - Management stated that most frac spreads work under dedicated agreements, and while there is pressure on pricing, operational efficiencies are being improved [80][81] Question: Are there any plans for dual fuel tier four fleets? - Management confirmed they have dual fuel capabilities and are adding tier four engines as needed, but do not see immediate economic sense in expanding electric frac capacity [118][119]

Financial Data and Key Metrics Changes - The company reported a net loss of $28.6 million or $0.14 per share on revenues of $704 million for Q1 2019, with consolidated adjusted EBITDA of $191 million [10][12] - Cash capital expenditures for Q1 totaled $118 million, down from $161 million in Q4 2018, with a forecast for 2019 CapEx of $465 million [13][36] - The cash balance improved to $249 million at March 31, with a net-debt-to-capital ratio of 20.5% [12] Business Line Data and Key Metrics Changes - In contract drilling, the average rig count decreased to 175 rigs, with average rig revenue per day increasing to $23,590, resulting in an average rig margin per day of $9,700, the highest since early 2016 [18][19] - Pressure pumping revenues decreased to $248 million, but gross profit margin exceeded expectations at $44.9 million [24] - Directional drilling revenues were $53 million, with gross profit margin increasing to $7.4 million [27] Market Data and Key Metrics Changes - The rig count is expected to decline further, potentially bottoming in the mid-150s during Q2 2019, despite higher oil prices [21][42] - Super-spec rig utilization remains over 90%, indicating a tight market for high-spec rigs [54][96] Company Strategy and Development Direction - The company is focused on efficient capital allocation, with a 27% reduction in capital expenditures compared to 2018 levels, leading to increased cash flow generation [36] - The company aims to improve profitability through internal efficiencies and cost reductions, particularly in pressure pumping [26][78] - The company is exploring technology-driven capabilities, such as Superior QC, to enhance operational efficiency and capture value [72][90] Management's Comments on Operating Environment and Future Outlook - Management noted that the decrease in drilling and completion activity will be less severe than previously forecasted, with potential upside from private operators as oil prices rise [34][58] - There is cautious optimism regarding the rig count and market conditions, with expectations for a flat activity level in the near term [50][61] Other Important Information - The company returned over $80 million to shareholders through stock repurchases and dividends in Q1 2019 [36][37] - A quarterly cash dividend of $0.04 per share was declared, to be paid on June 20, 2019 [38] Q&A Session Summary Question: Visibility on rig count guidance - Management indicated that rig count is expected to bottom in Q2, with private operators potentially providing some upside [41][42] Question: Margin progression for the remainder of the year - Management expressed encouragement regarding current rig margins, which have reached a new high since 2016, but noted difficulty in predicting beyond Q2 [44] Question: Pressure pumping efficiencies - Management credited field teams for improving margins in a challenging market and emphasized ongoing efforts to reduce costs and improve uptime [46][47] Question: Reactivation of idle fleets - Management stated that reactivation decisions depend on internal hurdle rates and market conditions, with no immediate plans to increase activity [49][50] Question: Pricing pressure on super-spec rigs - Management reported that super-spec rig utilization remains high, with limited pricing pressure observed [54][96] Question: Customer inquiries and activity levels - Management noted that discussions with customers have not yet changed significantly, but there is potential for increased activity as oil prices rise [66][68] Question: Dayrate structure and margin expectations - Management anticipates maintaining margins above $11,000 per day based on current pricing trends [69] Question: Strategic view on pressure pumping - Management reaffirmed the importance of the pressure pumping business and its potential for margin improvement [78] Question: Technology adoption and revenue models - Management is focused on capturing value from technology investments without solely relying on dayrate increases [90][91]

Financial Data and Key Metrics Changes - The company reported a net loss of $201 million or $0.93 per share on revenues of $796 million for Q4 2018. Excluding a noncash pre-tax goodwill impairment charge of $211 million, the net loss would have been $9 million or $0.04 per share [10][12]. - Consolidated adjusted EBITDA for Q4 was $213 million, bringing the total for 2018 to $806 million, an increase of $315 million or 64% over the prior year [12]. - The company repurchased 3.8 million shares for $50 million in Q4, totaling $150 million for the year, representing 4.2% of outstanding shares at the beginning of 2018 [13][14]. Business Line Data and Key Metrics Changes - In contract drilling, the average rig count for Q4 was 183 rigs, up five from Q3, with an average rig margin per day increasing by $920 to $9,390 [21]. - Pressure pumping generated a gross profit of $62.2 million on revenues of $320 million in Q4, down from a gross profit of $79.1 million on revenues of $422 million in Q3, primarily due to lower activity levels [32][33]. - Directional drilling achieved adjusted EBITDA of $4.1 million on revenues of $56.4 million, an increase from $3.3 million on revenues of $51.6 million in the previous quarter [37]. Market Data and Key Metrics Changes - The company noted a significant drop in oil prices in December, with WTI decreasing by almost $34 or 44% over 82 days [42]. - Following the drop, oil prices rebounded by approximately 26%, improving operator sentiment and discussions about putting rigs back to work [44][45]. - The current available supply of super-spec rigs in the U.S. is estimated at approximately 650 rigs, with industry utilization for super-spec rigs in the mid-90% range [25]. Company Strategy and Development Direction - The company aims to maintain its position as a leading super-spec driller and will continue to focus on operational excellence and efficient service delivery [25][46]. - The company plans to return cash to shareholders through share repurchases and dividends while keeping a fortress-like balance sheet with low debt levels [47][48]. - The company is investing in technology advancements, including the development of proprietary operating systems to enhance drilling performance [28][121]. Management Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the future, noting that while Q1 may see softness in drilling activity and pressure pumping, high utilization rates for super-spec rigs are expected to continue [45][46]. - The company anticipates that the first quarter of 2019 could be the low point for activity, with potential improvements as oil prices stabilize [66][78]. - Management highlighted the importance of maintaining flexibility to scale operations based on market conditions and customer demand [48][90]. Other Important Information - The company declared a quarterly cash dividend of $0.04 per share to be paid on March 21, 2019 [50]. - The company has approximately $150 million remaining under its share repurchase authorization, which was increased to $250 million [15]. Q&A Session Summary Question: Average rig count and customer feedback - Management indicated that the average rig count could drop to the upper 160s based on customer notifications, but this is still fluid as operators finalize their plans [56][57]. Question: Pressure pumping market conditions - Management noted that the Mid-Con region is experiencing the softest market conditions, with competitive pricing and an oversupplied market [64][65]. Question: Equipment attrition and market consolidation - Management believes that while there is oversupply in the market, equipment attrition will eventually lead to consolidation as demand increases [72][91]. Question: Pressure pumping pricing expectations - Management stated that pricing improvements are contingent on WTI prices rising and overall activity levels increasing [78][80]. Question: Interest in additional upgrades - Discussions regarding term contracts for upgrades have cooled due to commodity price fluctuations, but management remains optimistic about future opportunities [113][114].