Bruce Berger's questions to DAWSON GEOPHYSICAL (DWSN) leadership • Q3 2021
Question
Bruce Berger from Turnaround Capital questioned the decision to accept the Wilks Brothers' tender offer, asking why management believes a rightsizing plan would fail to stop cash losses, especially with a large 66,000 channel count project suggesting a potential return to breakeven.
Answer
Chairman, President & CEO Stephen Jumper explained that the company has already been aggressively rightsizing, cutting headcount from over 1,000 to approximately 100, and further reductions would impair operational readiness. He clarified that the large project is short-term (45 days) with limited visibility beyond February 2022. Jumper also cited softening prices, ongoing cash burn due to depleted receivables, and significant future capital needs as key factors making the offer a compelling value and liquidity event for shareholders.