QES Quintana Energy Services Inc

Quintana Energy Services Inc. (NYSE: QES) (“QES” or the “Company”) today reported financial and operating results for the third quarter ended September 30, 2019.

Third Quarter Highlights

• Highest quarterly Adjusted EBITDA of 2019
• Began execution of corporate restructuring plan and further realized cost and efficiency improvements
• Free cash flow positive and paid down $2 million of debt

Third Quarter 2019 Financial Results

Third quarter 2019 revenue was $121.1 million, down 3.6% from $125.6 million in the second quarter of 2019. Third quarter 2019 net loss was $47.4 million and Adjusted EBITDA was $8.7 million, compared to a net loss of $11.3 million and Adjusted EBITDA of $5.9 million for the second quarter of 2019, and a net loss of $2.4 million and Adjusted EBITDA of $12.9 million in the third quarter of 2018. See “Non-GAAP Financial Measures” at the end of this release for a discussion of Adjusted EBITDA and its reconciliation to the most directly comparable financial measure calculated and presented in accordance with U.S. generally accepted accounting principles (“GAAP”).

Chris Baker, QES’ President and Chief Executive Officer, stated, “The corporate restructuring plan implemented during the third quarter has gone very smoothly and I'm proud of the progress that our teams have made to date. With rig count still trending down, and completions activity plagued by budget constraints and excess capacity, we have been strategically focused on maximizing the Company’s flexibility, rebalancing our footprint within select geographic markets and improving our ability to weather uncertainty in the market. Our adjusted EBITDA expanded despite reduced revenues, thanks to the hard work of our dedicated employees, and illustrates that we are making solid progress towards our goals.

“Although there are numerous factors driving the market that are outside of our control, such as commodity prices and customer budgets, management has made it a priority to aggressively manage factors that are within our control to best position QES for the challenges ahead,” added Baker. “This means a continuation of the optimization and streamlining of our cost structure, but also by matching this effort with maintaining an asset base and geographic presence that will enable us to fully participate in the eventual market upturn. It also means sustaining our momentum in providing superior execution in the field. We do this by supplying highly-trained personnel along with newer, well-maintained equipment that gives our customers the outstanding quality of service of which they have become accustomed.

“From a consolidated perspective, we do not expect any meaningful improvement in customer activity during the fourth quarter, however, our ongoing asset optimization and evaluation of our cost structure, coupled with our strong balance sheet and considerable liquidity give us some measure of security should weak conditions persist for an extended period of time,” concluded Baker.

Business Segment Results

Directional Drilling

The Directional Drilling segment provides the highly-technical and essential services of guiding horizontal and directional drilling operations for exploration and production (“E&P”) companies. Revenue was $57.1 million in the third quarter of 2019, up approximately 5.0% compared to revenue of $54.4 million in the second quarter of 2019 and up 12.2% from the third quarter of 2018. Third quarter 2019 Adjusted EBITDA was $9.1 million, compared to Adjusted EBITDA of $5.9 million for the second quarter of 2019. The sequential increase in revenue and Adjusted EBITDA was primarily due to higher revenues associated with the demand for premium service tools and lower direct operating expenses driven by lower overall job costs per day during the three months ended September 30, 2019. In the third quarter of 2018, revenue was $50.9 million and Adjusted EBITDA was $6.5 million.

Pressure Pumping

The Pressure Pumping segment primarily provides hydraulic fracturing services to E&P companies in the Mid-Con, Permian Basin and the Rockies. Revenue for the segment increased 13.8% to $27.3 million in the third quarter of 2019, up from $24.0 million in the second quarter of 2019. Third quarter 2019 Adjusted EBITDA was $1.2 million, compared to Adjusted EBITDA of $0.8 million for the second quarter of 2019. The sequential increases in revenue and Adjusted EBITDA were primarily attributable to a 28.2% increase in average revenue per stage to $35,314 for the three months ended September 30, 2019 driven by a shift in job mix, offset by a corresponding 13.6% decrease in stages completed during the third quarter of 2019. Cost structure optimization improvements realized during the third quarter of 2019 continue to positively impact Adjusted EBITDA. In the third quarter of 2018, revenue was $50.0 million and Adjusted EBITDA was $5.8 million.

Pressure Control

The Pressure Control segment consists of coiled tubing, rig-assisted snubbing, nitrogen, fluid pumping and well control services. Revenue for the segment decreased 2.9% to $26.8 million in the third quarter of 2019, down from $27.6 million in the second quarter of 2019. Third quarter 2019 Adjusted EBITDA was $3.7 million, compared to Adjusted EBITDA of $1.6 million for the second quarter of 2019. The small Pressure Control revenue decrease during the third quarter of 2019 was primarily due to a nominal decrease in utilization driven by market conditions. The increase in Adjusted EBITDA was primarily due to a sequential decrease in direct operating expenses driven by results realized from the second quarter cost reduction initiatives during the third quarter of 2019. In the third quarter of 2018, revenue was $31.1 million and Adjusted EBITDA was $4.4 million.

Wireline

The Wireline segment primarily provides cased-hole wireline services to E&P companies. Revenue for the segment decreased 49.5% to $9.9 million in the third quarter of 2019 from $19.6 million in the second quarter of 2019. Third quarter 2019 Adjusted EBITDA was a $2.7 million loss, compared to Adjusted EBITDA of $0.4 million for the second quarter of 2019. The sequential decreases in revenue and Adjusted EBITDA were primarily due to decreased utilization, pricing pressures and fewer revenue days compared to the second quarter of 2019. In the third quarter of 2018, revenue was $18.9 million and Adjusted EBITDA was a $0.7 million loss.

Impairment

Based on the Pressure Pumping and Wireline segments cash flow losses derived from the current macro market pricing and demand headwinds, the Company performed impairment tests during the quarter and for the three months ended September 30, 2019, recorded impairment charges for our Pressure Pumping and Wireline segments of $34.2 million and $2.0 million, respectively.

Corporate Restructuring Program

During the three months ended September 30, 2019, the Company implemented a corporate restructuring program to align its cost structure with the current and anticipated market conditions for U.S. onshore oilfield service providers. The Company recorded a $5.3 million restructuring charge. This charge consisted of $2.2 million of employee-related charges, $0.2 million of lease abandonment charges, $1.6 million for the termination of a supply contract and the write down of $1.3 million of inventory and other costs.

Other Financial Information

General and administrative ("G&A") expense for the third quarter of 2019 decreased to $12.1 million compared to the second quarter's G&A expense of $13.9 million, and decreased by $2.0 million, compared to $14.1 million for the third quarter of 2018. The sequential decrease in G&A expense compared to the second quarter was primarily labor costs in the current quarter. The year over year decrease in G&A expenses was the result of cost savings associated with the continued optimization of our cost structure and lower non-cash stock based compensation expense during the third quarter of 2019.

Capital expenditures totaled $7.6 million during the third quarter of 2019, compared to capital expenditures of $8.9 million in the second quarter of 2019, and $11.9 million in the third quarter of 2018. Capital spending during the third quarter of 2019 was driven primarily by overall maintenance capital expenditures across all segments, compared to the second quarter of 2019 where capital expenditures were driven by Directional Drilling expenditures on motors, Pressure Control expenditures on trailers and overall maintenance capital expenditures.

Third quarter interest expense of $0.9 million was consistent with the second quarter's interest expense, and up from $0.6 million in the third quarter of 2018. The third quarter interest expense increase over prior year period was primarily due to a higher debt outstanding balance during the third quarter of 2019.

The Company’s balance sheet remains a significant strength and a key differentiator versus our peers. QES ended the third quarter of 2019 with a total debt balance of $33.0 million, $14.9 million of cash on hand, and $39.1 million of net availability under its senior secured asset-based revolving credit facility. The Company reduced its debt balance by $2.0 million during the three months ended September 30, 2019.

Share Repurchase Plan

On August 8, 2018, QES' Board of Directors approved a $6.0 million stock repurchase program authorizing the Company to repurchase common stock in the open market. The timing and amount of stock repurchases will depend on market conditions and corporate, regulatory and other relevant considerations. Repurchases may be commenced or suspended at any time without notice. The program does not obligate QES to purchase any particular number of shares of common stock during any period or at all, and the program may be modified or suspended at any time, subject to the Company's insider trading policy, at the Company’s discretion. As of September 30, 2019, 0.7 million shares were repurchased under this program.

Conference Call Information

QES has scheduled a conference call for 9:00 a.m. Central Time (10:00 a.m. Eastern Time) on Thursday, November 7, 2019, to review reported results. You may access the call by telephone at 1-201-389-0867 and asking for the QES 2019 Third Quarter Conference Call. The webcast of the call may also be accessed through the Investor Relations section of the Company’s website at https://ir.quintanaenergyservices.com/ir-calendar. A replay of the call can be accessed on the Company’s website for 90 days and will be available by telephone through November 14, 2019, at (201) 612-7415, access code 13695026#.

About Quintana Energy Services

QES is a growth-oriented provider of diversified oilfield services to leading onshore oil and natural gas exploration and production companies operating in both conventional and unconventional plays in all of the active major basins throughout the U.S. QES’ primary services include: directional drilling, pressure pumping, pressure control and wireline services. The Company offers a complementary suite of products and services to a broad customer base that is supported by in-house manufacturing, repair and maintenance capabilities. More information is available at www.quintanaenergyservices.com.

Forward-Looking Statements and Cautionary Statements

This news release (and any oral statements made regarding the subjects of this release, including on the conference call announced herein) contains certain statements and information that may constitute “forward-looking statements.” All statements, other than statements of historical fact, which address activities, events or developments that we expect, believe or anticipate will or may occur in the future are forward-looking statements. The words “anticipate,” “believe,” “expect,” “plan,” “forecasts,” “will,” “could,” “may,” and similar expressions that convey the uncertainty of future events or outcomes, and the negative thereof, are intended to identify forward-looking statements. Forward-looking statements contained in this news release, which are not generally historical in nature, include those that express a belief, expectation or intention regarding our future activities, plans and goals and our current expectations with respect to, among other things: our operating cash flows, the availability of capital and our liquidity; our future revenue, income and operating performance; our ability to sustain and improve our utilization, revenue and margins; our ability to maintain acceptable pricing for our services; future capital expenditures; our ability to finance equipment, working capital and capital expenditures; our ability to execute our long-term growth strategy; our ability to successfully develop our research and technology capabilities and implement technological developments and enhancements; and the timing and success of strategic initiatives and special projects.

Forward-looking statements are not assurances of future performance and actual results could differ materially from our historical experience and our present expectations or projections. These forward-looking statements are based on management’s current expectations and beliefs, forecasts for our existing operations, experience, expectations and perception of historical trends, current conditions, anticipated future developments and their effect on us, and other factors believed to be appropriate. Although management believes the expectations and assumptions reflected in these forward-looking statements are reasonable as and when made, no assurance can be given that these assumptions are accurate or that any of these expectations will be achieved (in full or at all). Our forward-looking statements involve significant risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond our control. Known material factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, risks associated with the following: a decline in demand for our services, including due to declining commodity prices, overcapacity and other competitive factors affecting our industry; the cyclical nature and volatility of the oil and gas industry, which impacts the level of exploration, production and development activity and spending patterns by E&P companies; a decline in, or substantial volatility of, crude oil and gas commodity prices, which generally leads to decreased spending by our customers and negatively impacts drilling, completion and production activity; and other risks and uncertainties listed in our filings with the U.S. Securities and Exchange Commission, including our Current Reports on Form 8-K that we file from time to time, Quarterly Reports on Form 10-Q and Annual Report on Form 10-K. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise, except as required by law.

Quintana Energy Services Inc.

Condensed Consolidated Statements of Operations

(in thousands of U.S. dollars and shares, except per share amounts)

(Unaudited)

 

 

Three Months Ended

 

September 30, 2019

 

June 30, 2019

 

September 30, 2018

Revenues:

$

121,082

 

 

$

125,627

 

 

$

150,897

 

Costs and expenses:

 

 

 

 

 

Direct operating costs

101,737

 

 

109,075

 

 

126,925

 

General and administrative

12,056

 

 

13,862

 

 

14,140

 

Depreciation and amortization

13,229

 

 

13,116

 

 

12,033

 

Gain on disposition of assets

(1,116

)

 

(153

)

 

(629

)

Impairment and other charges

41,543

 

 

—

 

 

—

 

Operating loss

(46,367

)

 

(10,273

)

 

(1,572

)

Non-operating expense:

 

 

 

 

 

Interest expense

(898

)

 

(853

)

 

(574

)

Loss before income tax

(47,265

)

 

(11,126

)

 

(2,146

)

Income tax expense

(164

)

 

(154

)

 

(207

)

Net loss

$

(47,429

)

 

$

(11,280

)

 

$

(2,353

)

Net loss per common share:

 

 

 

 

 

Basic

$

(1.41

)

 

$

(0.33

)

 

$

(0.07

)

Diluted

$

(1.41

)

 

$

(0.33

)

 

$

(0.07

)

Weighted average common shares outstanding:

 

 

 

 

 

Basic

33,533

 

 

33,804

 

 

33,631

 

Diluted

33,533

 

 

33,804

 

 

33,631

 

Quintana Energy Services Inc.

Condensed Consolidated Balance Sheets

(in thousands of U.S. dollars, except per share and share amounts)

(Unaudited)

 

 

 

September 30, 2019

 

December 31, 2018

ASSETS

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

14,937

 

 

$

13,804

 

Accounts receivable, net of allowance of $2,635 and $1,841

 

85,725

 

 

101,620

 

Unbilled receivables

 

7,175

 

 

13,766

 

Inventories

 

23,323

 

 

23,464

 

Prepaid expenses and other current assets

 

2,866

 

 

7,481

 

Total current assets

 

134,026

 

 

160,135

 

Property, plant and equipment, net

 

120,176

 

 

153,878

 

Operating lease right-of-use asset

 

12,045

 

 

—

 

Intangible assets, net

 

—

 

 

9,019

 

Other assets

 

1,248

 

 

1,517

 

Total assets

 

$

267,495

 

 

$

324,549

 

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

 

 

 

 

Accounts payable

 

$

39,559

 

 

$

51,568

 

Accrued liabilities

 

30,819

 

 

37,533

 

Other current liabilities

 

7,476

 

 

422

 

Total current liabilities

 

77,854

 

 

89,523

 

Long-term debt

 

33,000

 

 

29,500

 

Long-term operating lease liabilities

 

9,044

 

 

—

 

Long-term finance lease obligations

 

8,663

 

 

3,451

 

Deferred tax liability

 

256

 

 

130

 

Other long-term liabilities

 

10

 

 

125

 

Total liabilities

 

128,827

 

 

122,729

 

Commitments and contingencies

 

 

 

 

Shareholders’ equity:

 

 

 

 

Preferred shares, $0.01 par value, 10,000,000 authorized; none issued and outstanding

 

—

 

 

—

 

Common shares, $0.01 par value, 150,000,000 authorized; 34,547,463 issued; 33,523,588 outstanding

 

354

 

 

344

 

Additional paid-in-capital

 

356,068

 

 

349,080

 

Treasury shares, at cost, 1,023,875 and 232,892 common shares

 

(4,401

)

 

(1,821

)

Accumulated deficit

 

(213,353

)

 

(145,783

)

Total shareholders’ equity

 

138,668

 

 

201,820

 

Total liabilities and shareholders’ equity

 

$

267,495

 

 

$

324,549

 

Quintana Energy Services Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands of U.S. dollars)

(Unaudited)

 

 

 

Nine Months Ended

 

 

September 30, 2019

 

September 30, 2018

Cash flows from operating activities:

 

 

 

 

Net loss

 

$

(67,569

)

 

$

(16,574

)

Adjustments to reconcile net loss to net cash used in operating activities

 

 

 

 

Depreciation and amortization

 

38,785

 

 

34,265

 

Impairment expense

 

36,215

 

 

—

 

Gain on disposition of assets

 

(8,069

)

 

(5,256

)

Non-cash interest expense

 

263

 

 

944

 

Loss on debt extinguishment

 

—

 

 

8,594

 

Provision for doubtful accounts

 

841

 

 

573

 

Deferred income tax expense

 

86

 

 

134

 

Stock-based compensation

 

6,994

 

 

15,395

 

Changes in operating assets and liabilities:

 

 

 

 

Accounts receivable

 

15,054

 

 

(3,986

)

Unbilled receivables

 

6,591

 

 

164

 

Inventories

 

140

 

 

(3,809

)

Prepaid expenses and other current assets

 

5,042

 

 

2,538

 

Other noncurrent assets

 

11

 

 

(9

)

Accounts payable

 

(9,725

)

 

4,158

 

Accrued liabilities

 

(4,824

)

 

(101

)

Other long-term liabilities

 

(116

)

 

(46

)

Net cash provided by operating activities

 

19,719

 

 

36,984

 

Cash flows from investing activities:

 

 

 

 

Purchases of property, plant and equipment

 

(29,078

)

 

(53,112

)

Proceeds from sale of property, plant and equipment

 

13,157

 

 

6,836

 

Net cash used in investing activities

 

(15,921

)

 

(46,276

)

Cash flows from financing activities:

 

 

 

 

Proceeds from revolving debt

 

7,500

 

 

37,000

 

Payments on revolving debt

 

(4,000

)

 

(86,071

)

Payments on term loans

 

—

 

 

(11,225

)

Payments on finance leases

 

(1,307

)

 

(280

)

Payments on financed payables

 

(2,278

)

 

—

 

Payment of deferred financing costs

 

—

 

 

(1,564

)

Prepayment premiums on early debt extinguishment

 

—

 

 

(1,346

)

Payments for treasury shares

 

(2,580

)

 

(1,271

)

Proceeds from new shares issuance, net of underwriting commissions

 

—

 

 

90,542

 

Costs incurred for stock issuance

 

—

 

 

(3,174

)

Net cash provided by financing activities

 

(2,665

)

 

22,611

 

Net increase in cash and cash equivalents

 

1,133

 

 

13,319

 

Cash and cash equivalents beginning of period

 

13,804

 

 

8,751

 

Cash and cash equivalents end of period

 

$

14,937

 

 

$

22,070

 

Supplemental cash flow information

 

 

 

 

Cash paid for interest

 

$

2,058

 

 

$

1,608

 

Income taxes paid

 

484

 

 

90

 

Supplemental non-cash investing and financing activities

 

 

 

 

Fixed asset purchases in accounts payable and accrued liabilities

 

2,148

 

 

1,989

 

Financed payables

 

426

 

 

—

 

Non-cash capital lease additions

 

8,873

 

 

53

 

Non-cash payment for property, plant and equipment

 

—

 

 

3,279

 

Debt conversion of Former Term Loan to equity

 

—

 

 

33,631

 

Issuance of common shares for members’ equity

 

—

 

 

212,630

 

Quintana Energy Services Inc.

Additional Selected Operating Data

(Unaudited)

 

 

Three Months Ended

 

September 30, 2019

 

June 30, 2019

 

September 30, 2018

Other Operational Data:

 

 

 

 

 

Directional Drilling rig days (1) (2)

4,863

 

 

4,854

 

 

4,874

 

Average monthly Directional Drilling rigs on revenue (3)

67

 

 

71

 

 

77

 

Total hydraulic fracturing stages

700

 

 

810

 

 

908

 

Average hydraulic fracturing revenue per stage

$

35,314

 

 

$

27,545

 

 

$

50,119

 

(1)

Rig days represent the number of days we are providing services to rigs and are earning revenues during the period, including days that standby revenues are earned.

(2)

Rigs on revenue represents the number of rigs earning revenues during a time period, including days that standby revenues are earned.

(3)

Includes unconventional stages and conventional jobs, the latter are counted as a single stage.

Non-GAAP Financial Measures

Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of our financial statements, such as industry analysts, investors, lenders and rating agencies.

Adjusted EBITDA is not a measure of net income or cash flows as determined by GAAP. We define Adjusted EBITDA as net income or (loss) plus income taxes, net interest expense, depreciation and amortization, impairment charges, net (gain) or loss on disposition of assets, stock based compensation, transaction expenses, rebranding expenses, settlement expenses, severance expenses, restructuring expenses, impairment expenses and equipment stand-up expense.

We believe Adjusted EBITDA is useful because it allows us to more effectively evaluate our operating performance and compare the results of our operations from period to period without regard to our financing methods or capital structure. We exclude the items listed above in arriving at Adjusted EBITDA because these amounts can vary substantially from company to company within our industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. Adjusted EBITDA should not be considered as an alternative to, or more meaningful than, net income as determined in accordance with GAAP, or as an indicator of our operating performance or liquidity. Certain items excluded from Adjusted EBITDA are significant components in understanding and assessing a company’s financial performance, such as a company’s cost of capital and tax structure, as well as the historic costs of depreciable assets, none of which are components of Adjusted EBITDA. Our computations of Adjusted EBITDA may not be comparable to other similarly titled measures of other companies.

The following tables present a reconciliation of the non-GAAP financial measures of Adjusted EBITDA to the most directly comparable GAAP financial measure for the periods indicated:

Quintana Energy Services Inc.

Reconciliation of Net Loss to Adjusted EBITDA

(In thousands of U.S. dollars)

(Unaudited)

 

 

Three Months Ended

 

September 30, 2019

 

June 30, 2019

 

September 30, 2018

Net loss

$

(47,429

)

 

$

(11,280

)

 

$

(2,353

)

Income tax expense

164

 

 

154

 

 

207

 

Interest expense

898

 

 

853

 

 

574

 

Depreciation and amortization expense

13,229

 

 

13,116

 

 

12,033

 

Gain on disposition of assets, net

(1,116

)

 

(153

)

 

(629

)

Impairment and other charges

41,543

 

 

—

 

 

—

 

Non-cash stock based compensation

1,260

 

 

2,692

 

 

2,569

 

Rebranding expense

—

 

 

—

 

 

193

 

Settlement expense (1)

87

 

 

408

 

 

133

 

Severance expense

99

 

 

85

 

 

74

 

Equipment and stand-up expense

—

 

 

—

 

 

97

 

Adjusted EBITDA

$

8,735

 

 

$

5,875

 

 

$

12,898

 

(1) For 2019, represents certain nonrecurring corporate professional fees related to contemplated mergers and acquisitions activities, legal fees for FLSA claims and other non-recurring settlement expenses, of which $0.5 million was recorded in general and administrative expenses. For 2018, represents legal fees for FLSA claims, facility closures and other non-recurring expenses that were recorded in general and administrative expenses.

Quintana Energy Services Inc.

Reconciliation of Segment Adjusted EBITDA to Net Loss

(In thousands of U.S. dollars)

(Unaudited)

 

 

Three Months Ended

 

September 30, 2019

 

June 30, 2019

 

September 30, 2018

Directional Drilling

$

9,103

 

 

$

5,854

 

 

$

6,452

 

Pressure Pumping

1,218

 

 

762

 

 

5,795

 

Pressure Control

3,670

 

 

1,584

 

 

4,421

 

Wireline

(2,719

)

 

384

 

 

(738

)

Corporate and Other

(3,983

)

 

(5,894

)

 

(6,098

)

Income tax expense

(164

)

 

(154

)

 

(207

)

Interest expense

(898

)

 

(853

)

 

(574

)

Depreciation and amortization

(13,229

)

 

(13,116

)

 

(12,033

)

Gain on disposition of assets, net

1,116

 

 

153

 

 

629

 

Impairment and other charges

(41,543

)

 

—

 

 

—

 

Net loss

$

(47,429

)

 

$

(11,280

)

 

$

(2,353

)

 

Quintana Energy Services Inc.

Segment Adjusted EBITDA Margin

(In thousands of U.S. dollars, except percentages)

(Unaudited)

 

 

Three Months Ended

 

September 30, 2019

 

June 30, 2019

 

September 30, 2018

Segment Adjusted EBITDA Margin(1)

 

 

 

 

 

Directional Drilling

 

 

 

 

 

Adjusted EBITDA

$

9,103

 

 

$

5,854

 

 

$

6,452

 

Revenue

57,056

 

 

54,380

 

 

50,919

 

Adjusted EBITDA Margin Percentage

16.0

 

 

10.8

 

 

12.7

 

Pressure Pumping

 

 

 

 

 

Adjusted EBITDA

1,218

 

 

762

 

 

5,795

 

Revenue

27,312

 

 

24,038

 

 

49,987

 

Adjusted EBITDA Margin Percentage

4.5

 

 

3.2

 

 

11.6

 

Pressure Control

 

 

 

 

 

Adjusted EBITDA

3,670

 

 

1,584

 

 

4,421

 

Revenue

26,838

 

 

27,646

 

 

31,138

 

Adjusted EBITDA Margin Percentage

13.7

 

 

5.7

 

 

14.2

 

Wireline

 

 

 

 

 

Adjusted EBITDA

(2,719

)

 

384

 

 

(738

)

Revenue

9,876

 

 

19,563

 

 

18,853

 

Adjusted EBITDA Margin Percentage

(27.5

)

 

2.0

 

 

(3.9

)

(1)

Segment Adjusted EBITDA Margin is defined as the quotient of Segment Adjusted EBITDA and total segment revenue. Segment Adjusted EBITDA is net income (loss) plus income taxes, net interest expense, depreciation and amortization, net (gain) loss on disposition of assets, stock based compensation, transaction expenses, rebranding expenses, settlement expenses, severance expenses, restructuring expenses, impairment expenses and equipment stand-up expense.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20191106006138/en/

Quintana Energy Services Keefer M. Lehner, EVP & CFO 832-518-4094 IR@qesinc.com

Dennard Lascar Investor Relations Ken Dennard / Natalie Hairston 713-529-6600 QES@dennardlascar.com