DAWSON GEOPHYSICAL CO Q4 FY2020 earnings call

• Fiscal 2020 was a year of unprecedented adversity, starting with best financial and operational results in many years, operating three large channel count crews in the U.S. and up to three crews in the Canadian market during Q1 2020.
• In Q4 2020, the company operated one data acquisition crew in the U.S. with periods of low utilization, inactive for latter part of Q3 and well into Q4, and anticipated operating one crew in U.S. through first quarter with downtime and one crew in Canada for winter season ending in first quarter of 2021.
• Involved in Co2 sequestration projects, including a small 3D survey in late 2020 that was academic driven, with some lead time needed for such projects.
• Uncertainty regarding impact of Biden's lease cancellations on federal land drilling, but confident customers have leases and permits in place, though delay affects new entry.
• 13D filings seen as routine updates from long-term shareholders.

For the fourth quarter ended December 31, 2020, Dawson Geophysical Company reported revenues of $8.9 million, a decrease of approximately 74% compared to $33.6 million in the same quarter of 2019. The net loss was $7.8 million or $0.33 loss per share of common stock, vs. a net loss of $5.8 million or $0.25 loss per share in Q4 2019. Negative EBITDA was $4.2 million in Q4 2020 compared to negative EBITDA of $788,000 in Q4 2019. Cost of services in Q4 2020 were $10.8 million, a decrease of 65% compared to $30.8 million in Q4 2019.

• Encouraged by recent oil price uptick to $65, watching how oil price improvement flows through E&P customers' capital and spending plans.
• Seeing some uptake in drilling and completions, with ketchup work to be done in 2021 for E&P customers.
• Balance sheet remains strong, significant cost cutbacks made, equipment in good shape and ready to respond when conditions improve.
• Optimistic about the future of the company and the industry.

• Uncertainty around how Biden's cancellation of federal land leases will impact seismic project permits and near-term activity.
• Co2 sequestration projects have lead time due to required geologic work, introducing uncertainty in timing.

Q: Good morning, Stephen. Just wondering on business prospects regarding Exxon using Co2 storage in the ground and its impact on seismic activity.

A: We've been involved in Co2 sequestration projects, including a small 3D survey in late 2020 that was academic driven. It's a different application but same science, with some lead time needed for such projects.

Q: Did Biden canceling leases on federal land affect customers' ability to hire for geophysical work?

A: Uncertain on the process, but confident many customers have leases and permits in place, delay affects new entry but not activity completely; upfront seismic projects on federal lands still need permit process.

Q: About recent 13D filings, are they attracting new investors?

A: Most 13D filings are from long-term shareholders with greater than 5% ownership, just updated routine filings