Nine Energy Service, Inc. (NYSE:NINE) Q2 2020 Earnings Conference Call - Final Transcript
Aug 06, 2020 • 10:00 am ET
Greetings, and welcome to the Nine Energy Service Q2 2020 Earnings Call. [Operator Instructions] It is now my pleasure to introduce your host, Heather Schmidt, Vice President of Investor Relations. Thank you, Ms. Schmidt, you may begin.
Thank you. Good morning, everyone and welcome to the Nine Energy Service earnings conference call to discuss our results for the second quarter 2020. On the call with me today are Ann Fox, President and Chief Executive Officer; and Guy Sirkes, Chief Financial Officer. We appreciate your participation.
Some of our comments today may include forward-looking statements reflecting Nine's views about future events. Forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond our control. These risks and uncertainties can cause actual results to differ materially from our current expectations. We advise listeners to review our earnings release and the risk factors discussed in our filings with the SEC. We undertake no obligation to revise or update publicly any forward-looking statements for any reason.
Our comments today also include non-GAAP financial measures. Additional details and reconciliations to the most directly comparable GAAP financial measures are also included in our second quarter press release and can be found in the Investor Relations section of our website.
I will now turn the call over to Ann Fox.
Ann G. Fox
Thank you, Heather. Good morning everyone, and thank you for joining us today to discuss our second quarter results for 2020. I hope that you and your families are staying safe and healthy during these very difficult times. At Nine, we are continuing to practice CDC, federal, and state guidelines to ensure the health and safety of our employees, vendors, customers, and community at large. This remains our highest priority, and I want to commend the employees at Nine who have demonstrated great discipline and leadership across the organization, while navigating these unprecedented times.
As anticipated, Q2 was an extremely challenging quarter. In response to the extreme reduction in demand related to the COVID-19 pandemic and low commodity prices, North American operators significantly cut capex, either reducing or completely suspending activity. These reductions were most evident in the Permian Basin where frac crews were estimated to reach loads [Phonetic] in the 20 to 25 range during Q2, and total completions in this region decreased by approximately 54% from Q1 to Q2 and by approximately 77% from the February high to the trough in June. The EIA reported only 101 total completions in the Permian for the month of June.
In the Northeast, activity remained minimal, but steady with no indications today of increased activity in this region with an estimated 20 to 25 active frac crews during the quarter. The remaining US basins and Canada remain mostly dormant with the exception of the Haynesville, which has maintained minimal activity levels of approximately eight to 13 active frac crews. Overall, US frac crews were estimated to be down approximately 70% year-to-date by June with the largest reductions coming in May and into June. US