Revenue Performance - Revenues decreased by 29.0million,or18132.4 million for Q2 2024 compared to Q2 2023, primarily due to volume and pricing decreases driven by a reduction in the U.S. rig count[89] - Cementing revenue decreased by 12.3million,or217.3 million, or 22%, driven by pricing decreases and a 10% decrease in total days worked compared to Q2 2023[90] - Tools revenue decreased by 6.4million,or1750.3 million, or 15%, to 274.5millionforthefirstsixmonthsof2024,primarilyduetovolumeandpricingdecreasesacrossallservicelines[101]−RevenuesforthethreemonthsendedJune30,2024,were132,401 thousand, a decline of 18.0% from 161,428thousandinthesameperiodof2023[123]ProfitabilityandLoss−Adjustedgrossprofitdecreasedby13.6 million, or 40%, to 20.4millionforQ22024comparedtoQ22023[89]−NetlossforQ22024was14.0 million, compared to a net loss of 2.5millioninQ22023,representinganincreaseinlossof45323.8 million, or 34%, to 46.5millionforthefirstsixmonthsof2024comparedtothesameperiodin2023[103]−Netlossincreasedby13.5 million, or 156%, to 22.1millionforthefirstsixmonthsof2024[111]−AdjustedEBITDAdecreasedby22.0 million, or 47%, to 24.8millionforthefirstsixmonthsof2024[111]−AdjustedEBITDAforthethreemonthsendedJune30,2024,was9,735 thousand, down from 21,714thousandinthesameperiodof2023,representingadecreaseofapproximately55.220,353 thousand, down from 33,986thousandinthesameperiodof2023,reflectingadecreaseofapproximately40.415.4 million, or 12%, to 112.0millionforQ22024,primarilyduetoreducedactivityincertainservicelines[92]−Costofrevenuesdecreasedby26.5 million, or 10%, to 228.1millionforthefirstsixmonthsof2024[102]−Generalandadministrativeexpensesdecreasedby9.2 million, or 27%, to 24.7millionforthefirstsixmonthsof2024[103]−Depreciationexpensedecreasedby1.5 million, or 10%, to 13.3millionforthefirstsixmonthsof2024[105]−Amortizationofintangiblesdecreasedby0.2 million, or 3%, to 5.6millionforthefirstsixmonthsof2024[106]−Non−operatingexpensesincreasedby0.1 million, or 1%, to 24.8millionforthefirstsixmonthsof2024[109]MarketConditions−TheU.S.landrigcountdeclinedbyover40rigsinthefirsthalfof2024,followingadeclineofover150rigsfromtheendof2022totheendof2023[87]−Naturalgaspricesaveraged2.10 in the first half of 2024, which is 17% lower than average prices in 2023, contributing to decreased activity and lower rig counts[86] - The company anticipates that revenue, net income (loss), and adjusted EBITDA for Q3 2024 will be relatively flat compared to Q2 2024, with cautious optimism for medium and long-term recovery in the energy sector[87] Liquidity and Capital Expenditure - As of June 30, 2024, the company had a total liquidity position of 50.8million,consistingof26.0 million in cash and cash equivalents and 24.8millionavailableundertheABLCreditFacility[127]−Thecompanyhasreduceditsplannedcapitalexpenditurebudgetfor2024tobetween10.0 million and 15.0milliontopreserveliquidityamidmarketdeclines[126]−Thecompanyanticipatessemiannualinterestpaymentsof19.5 million on the 2028 Notes, which began on August 1, 2023[127] - As of June 30, 2024, the company had 52.0millioninborrowingsundertheABLCreditFacility,withapproximately24.8 million available after accounting for outstanding letters of credit[139] Debt and Compliance - The 2028 Notes bear an annual interest rate of 13.000% and will mature on February 1, 2028, with interest payable semi-annually[132] - The company was in compliance with all covenants contained in the 2028 Notes Indenture and the ABL Credit Agreement as of June 30, 2024[134][138] - The company did not make an Excess Cash Flow Offer on May 15, 2024, as the Excess Cash Flow Amount was 0[133]CashFlowActivities−Netcashprovidedbyoperatingactivitieswas4.1 million for the first six months of 2024, a decrease of 27.0millioncomparedto31.1 million in the same period of 2023, primarily due to an increased net loss[142] - Net cash used in investing activities was 8.1millioninthefirstsixmonthsof2024,adecreasefrom11.1 million in the same period of 2023, attributed to reduced cash purchases of property and equipment[143] - Net cash used in financing activities was 0.7millioninthefirstsixmonthsof2024,comparedto3.9 million in net cash provided in the same period of 2023, largely due to the absence of proceeds from the Units offering and ABL Credit Facility[144] Growth Strategy - The company continues to evaluate potential acquisitions as part of its growth strategy, although it does not budget for them[125] - The company entered into an equity distribution agreement allowing the sale of up to 30.0millionincommonstock,generatingnetproceedsof6.8 million from the sale of 4,199,074 shares during the three months ended June 30, 2024[129] - The company completed a public offering of 300,000 units with an aggregate stated amount of 300.0million,receivingproceedsof279.8 million after deductions, which were used to redeem $307.3 million of 8.750% Senior Notes due 2023[130]