Michael Melby's questions to DAWSON GEOPHYSICAL (DWSN) leadership • Q1 2021
Question
Michael Melby of Gate City Capital Management reiterated a desire to see management increase its ownership stake and then asked specifically about conversations with multi-client customers and what catalysts are needed for them to become more active.
Answer
Stephen Jumper, Chairman, President & CEO, explained that multi-client companies are facing the same constraints as Dawson, as they rely on funding and underwriting from E&P companies. With E&P capital spending currently light, the underwriting levels for new multi-client projects are low, causing delays. He stated that a project might be just a signature or two away, but the current environment makes it difficult for multi-client firms to commit their own capital without sufficient external funding.