US Well Services Inc (NASDAQ:USWS) Q2 2020 Earnings Conference Call - Final Transcript

Aug 06, 2020 • 11:00 am ET

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US Well Services Inc (NASDAQ:USWS) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Greetings, ladies and gentlemen and welcome to the U.S. Well Services Second Quarter 2020 Earnings Conference Call. [Operator Instructions]

It is now my pleasure to introduce your host, Mr. Josh Shapiro. Thank you, sir. You may begin.

Executive
Josh Shapiro

Good morning, everyone. We appreciate you joining us for the U.S. Well Services conference call and webcast to review second quarter 2020 results. Joining us on the call this morning are Joel Broussard, Chief Executive Officer; and Kyle O'Neill, Chief Financial Officer. Following their prepared remarks, the call will be open for Q&A.

Yesterday evening, U.S. Well Services released its second quarter 2020 earnings. The earnings release can be found on the Company's website at www.uswellservices.com. The Company also intends to file its second quarter 2020 Form 10-Q with the SEC this afternoon. Please note that the information reported on this call speaks only as of today, August 6, 2020, and therefore, time-sensitive information may no longer be accurate as of the time of any replay-listening or transcript-reading.

In addition, the comments made by management during this conference call may contain forward-looking statements within the meaning of the United States federal securities laws. These forward-looking statements reflect the current views of U.S. Well Services management. However, various risks, uncertainties and contingencies could cause our actual results, performance or achievements to differ materially from those expressed in the statements made by management. The listener is encouraged to review today's earnings release and the Company's filings with the SEC to understand those risks, uncertainties and contingencies. Also, during today's call, we will reference certain non-GAAP financial measures. Reconciliations of these non-GAAP measures to the most directly comparable GAAP measures are included in our earnings release.

Now I'd like to turn the call over to U.S. Well Services' CEO, Mr. Joel Broussard.

Executive
Joel Broussard

Thanks, Josh, and good morning. Second quarter of 2020 presented the most severe challenges ever faced by the modern oil and gas industry. As economies across the globe shut down in an effort to slow down the spread of COVID-19, demand and pricing for crude oil collapsed. U.S. oil and gas producers aggressively reduced drilling and completions operations beginning in mid-March and have only very recently begun to increase activity.

Our strategy at U.S. Well Services has always been to position the Company to perform through down cycles. We value long-term partnerships with our customers that have historically provided us with better utilization and pricing stability across our fleets during challenging market environments. While our business was certainly not immune to the turmoil, I am proud of how the business performed through such a difficult market.

We saw our active fleet count drop from 10.7 in the first quarter to 4.3 in the second quarter. Throughout the quarter, three of our four new-generation electric fleets were working, along with one of our conventional fleets. Currently, we are operating five active frac fleets. We recently deployed our fourth new-generation electric fleet to work for a previous customer in the Permian Basin. With the addition of this