This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

C&J Energy Services Management Discusses Q2 2012 Results - Earnings Call Transcript

Since C&J's inception in 1997, our long-term goal has been to become a large-scale, geographically diversified provider of the most technologically advanced completion services. We are executing an aggressive growth strategy and the acquisition of Casedhole is a significant step in the furtherance of this goal. Since the Casedhole closing, we have executed on our plans to grow our combined organizations by leveraging our strengths. The integration process has gone smoothly and our sales force is successfully marketing our expanded range of services. We'll talk more about Casedhole later in the call.

Now on the results for the second quarter. Our team generated another solid quarter. Revenue is up 16% and our earnings rose almost 8% sequentially. Despite the impact of increased competition on utilization and pricing, our adjusted EBITDA rose 10% sequentially and our adjusted EBITDA margin hold relatively firm at 33%, just a slight decline from 35% last quarter. This growth, once again, demonstrates that our emphasis on the highest level of efficiency and superior execution generates value for our customers, as well as our shareholders.

We're pleased with this quarter's results given the headwinds we, like our peers, have faced. The considerable decline in natural gas prices over the first half of the year caused a relocation of equipment from gas-nominated markets to the oily regions. The surplus of equipment increased competition and put pressure on pricing. Fortunately, even with the influx of equipment, which had a particularly notable impact on the Eagle Ford Shale and Permian Basin, we have seen solid activity levels across these plays. While we anticipate the remainder of the year will continue to be highly competitive, it appears that the migration has run its course and that pricing may be stabilized. Additionally, the vast majority of our assets are operating in oily basins and we have plans to expand in the new unconventional resource plays as we expand our asset base. The Casedhole acquisition has provided us entry in the key areas such as the Bakken and has strengthened our position in our existing areas of operations. Our integrated sales force has already received positive customer feedback on our competitive positioning as an independent provider offering comprehensive completion services where each product stands on its own merits. When we offer our services in a combined package, we believe that we have a competitive advantage due to the best-in-class performance of each service line.

Read the rest of this transcript for free on

3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $95.18 1.64%
FB $117.43 -0.96%
GOOG $692.36 -0.84%
TSLA $232.32 -3.92%
YHOO $36.01 -1.42%


Chart of I:DJI
DOW 17,750.91 -140.25 -0.78%
S&P 500 2,063.37 -18.06 -0.87%
NASDAQ 4,763.2240 -54.37 -1.13%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs