NexTier Oilfield Solutions (NYSE:NEX) Q2 2020 Earnings Conference Call - Final Transcript

Aug 04, 2020 • 08:30 am ET


NexTier Oilfield Solutions (NYSE:NEX) Q2 2020 Earnings Conference Call - Final Transcript


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Good morning, and welcome to the NexTier Oilfield Solutions Second Quarter 2020 Conference Call. [Operator Instructions]

For opening remarks and introductions, I'd like to turn the call over to Kevin McDonald, Chief Administrative Officer & General Counsel for NexTier. Please go ahead, sir.

Kevin McDonald

Thank you, operator. Good morning, everyone, and welcome to the NexTier Oilfield Solutions earnings conference call to discuss our second quarter 2020 results. With me today are Robert Drummond, President and Chief Executive Officer; and Kenny Pucheu, Chief Financial Officer.

Before we get started, I would like to direct your attention to the forward-looking statements disclaimer contained in the news release that we issued yesterday afternoon, which is currently posted in the Investor Relations section of the Company's website. Our call this morning includes statements that speak to the Company's expectations, outlook or predictions of the future, which are considered forward-looking statements. These forward-looking statements are subject to risks and uncertainties, many of which are beyond the Company's control that could cause our actual results to differ materially from those expressed in or implied by these statements.

We undertake no obligation to revise or update publicly any forward-looking statements for any reason. We refer you to NexTier's disclosures regarding risk factors and forward-looking statements in our annual report on Form 10-K, subsequently filed quarterly reports on Form 10-Q, and other Securities and Exchange Commission filings. Additionally, our comments today also include non-GAAP financial measures, additional details and a reconciliation to the most directly comparable GAAP financial measures are included in our press release that is posted on our website.

With that, I will turn the call over to Robert Drummond, Chief Executive Officer of NexTier.

Robert Drummond

Well thank you, Kevin, and thanks everyone for joining on the call this morning. I would like to start the call by taking it back to our foundation. We acted last year to address the need for consolidation in our industry when we announced a merger of equals establishing NexTier, a leader in U.S. well completion services. NexTier has clearly demonstrated its ability to complete and integrate transformational transactions and I am extremely proud that all aspects of the transactions strategic rationale have been realized.

We exceeded our targeted synergies and completed a very efficient integration process. We achieved these results more than six months ahead of schedule, with our run rate synergies been full realized in April. The integration and the enhancement of our ERP system was successfully completed during the second quarter as well. We significantly improved our financial position and balance sheet and further improved upon the strength with the divestiture of our well supported services business in March, in a transaction that accelerated approximately five years of free cash flow into our balance sheet by simplifying our operations.

Our ability to respond to completion opportunities all over the U.S. and even in Saudi is evident in our safety performance, service quality and ultimately, our market share. Lastly, integrating two equal size companies provided a platform to foster best practices,