Superior Energy Services Inc (NYSE:SPN) Q2 2019 Earnings Conference Call Transcript
Jul 24, 2019 • 09:00 am ET
Westervelt T. Ballard
Kuwait expansion, capital expenditures will be limited in this segment and our expectations are for returns to improve even in a static U.S. land environment. In the Technical Solutions segment, total revenue increased -- 20% to $69 million. Improved results were driven by increased levels of completion tools activity in the U.S. offshore market. Our expectations for third quarter results of a relatively flat revenue and margins, as increasing completion tool activity is offset by lower anticipated levels of well control well control and subsea intervention activity.
Before I turn the call back over Dave, here are a few modeling-related items. G&A for the quarter was $72 million and we expect third quarter G&A to be in the range of $72 million to $75 million. DD&A is expected to be between $70 million and $75 million. Third quarter interest is expected to be approximately $25 million.
Thank you. And I'll now turn the call back over, Dave, for closing comments.
Okay. Thanks, Westy. With respect to our market outlook, we are approaching the U.S. land market as if it is fully recovered and have no expectations for increased activity levels in the near future. Maintaining capacity or cost on behalf of our customers with the hope of increased utilization at some point in the future is no longer acceptable, particularly in the most fragmented, competitively disadvantaged service lines. As such, we are laser focused on operational efficiency, controlling costs and rationalizing assets and locations, which are likely to remain challenged from a profitability perspective.
The U.S. onshore and international markets both seem poised to continue to experience gradually increasing activity levels. Again, this isn't aspirational but based on interactions we have been and continue to have with a variety of customers. As activity levels increase, our revenue mix and capital allocation will increasingly favor these two regions, both of which result in higher margin, higher return results. Our primary focus is on cash generation, and improving our capital structure. The second quarter was a solid step in that direction.
That concludes our prepared remarks. We'll now turn it over to the operator for Q&A.