Financial Data and Key Metrics Changes - Revenue for Q2 2024 was 132.4million,withintheguidanceof130 million to 140million[4]−AdjustedEBITDAwas9.7 million, and diluted EPS was negative 0.40[4]−Cashandcashequivalentswere26 million, with total liquidity of 50.8millionasofJune30,2024[8]−Generalandadministrativeexpenseswere12.5 million, and depreciation and amortization expenses were 9.4million[10]−CapExspendforQ2was2.5 million, with a revised full-year CapEx range of 10millionto15 million [10] Business Line Data and Key Metrics Changes - Cementing revenue decreased by approximately 5% to 45.8million,witha228 million, with a 2% decrease in completed stages but a 2% increase in average blended revenue per stage [9] - Completion tool revenue decreased by approximately 8% to 32.4million,witha1026.2 million, with a 23% decrease in days worked [9] Market Data and Key Metrics Changes - The U.S. land rig count has seen a decline of over 200 rigs since the end of 2022, impacting revenue and earnings [4] - Natural gas prices remain around 2,leadingtodelayedcompletionsandrigdeclines[12]−TherigcountinQ3isexpectedtoberelativelyflatcomparedtoQ2,withprojectedrevenuebetween127 million and 137million[12]CompanyStrategyandDevelopmentDirection−Thecompanyaimstogrowitsinternationaltoolsbusinessaspartofitsmedium−tolong−termstrategy[6]−Thefocusisonenhancingefficiencyandmaintainingflexibilityinoperationstocapitalizeonmarketrecovery[17]−Thecompanyisoptimisticaboutthemedium−andlong−termoutlookforthegasmarket,anticipatingincreasedpowerdemandintheU.S.[12][23]Management′sCommentsonOperatingEnvironmentandFutureOutlook−Managementnotedthatthecurrentmarketischallenging,buttheyarepreparedtocapitalizeongrowthopportunitieswhentheyarise[12][24]−Thecompanybelievesitcanmaintainacompetitiveedgeduetoitsasset−lightbusinessmodelandstrongteam[13]−Managementexpressedconfidenceinthepotentialforamarketreboundinthebackhalfof2025[24]OtherImportantInformation−Thecompanycompleted926cementingjobsinQ2,adecreaseofapproximately230 million ATM program to provide financial flexibility [8] Q&A Session Summary Question: What service lines are being positively impacted by the refracs? - Management indicated that all service lines, including completion tools, cementing, wireline, and coiled tubing, are positively impacted by refracs, with significant growth anticipated in this market [14] Question: Why is there confidence in relatively flat revenues and profitability despite rig count declines? - Management noted strong performance in the refrac business and improvements in cementing, which are helping to close gaps in revenue [15] Question: Any early indications of CapEx for Q3? - Management has not provided specific guidance on the split between quarters but has guided for the year [16] Question: How do you see the international side for completion tools impacting Q3? - International sales are included in the guidance, but they are expected to be lumpy; management is optimistic about future work [18] Question: Has pricing stabilized for cementing, wireline, and coiled tubing? - Management confirmed that pricing has stabilized, although there may be incremental pressures depending on commodity prices [19] Question: What percentage of refrac jobs are in the Eagle Ford and Bakken? - The majority of refrac jobs are in the Eagle Ford and Bakken, where there is significant Tier 1 acreage [21] Question: How can the company ramp up quickly when activity increases? - Management emphasized the importance of maintaining flexibility and not cutting into the company's capabilities, ensuring readiness for market recovery [22][24]