Joining us on the call today from Heckmann Corporation are Dick Heckmann, Chairman and Chief Executive Officer; Chris Chisholm, Chief Financial Officer; James Devlin, President and Chief Operating Officer of Heckmann Environmental Services; Chuck Gordon, President and Chief Operating Officer of Heckmann Water Resources; and Brian Anderson, Executive Vice President of Finance.With that, I would now like to turn the call over to Dick Heckmann. Richard J. Heckmann Good afternoon, everybody. I went back over the weekend and read previous quarter earnings and releases and the comments and questions and concluded that building a company from scratch is fairly messy business. I do understand some of the confusion as to what we're doing, so I'm going to try and bring some perspective to our actions and show you where we're headed through the rest of the decade. Our second quarter reported revenues of $91 million, and adjusted EBITDA of $19.3 million was a bit shy of our projections given 5 months ago, primarily because several completion jobs slid into July after the Fourth of July holiday. However, we do expect them to be back online in the second half. Without question, our customers have pulled back capital spending and competition for the remaining jobs has intensified. But as you'll hear on this call, we think we're well-positioned to ride it out. It continues to be difficult finding, recruiting and retaining people, especially in the remote areas in which we operate, and internal growth as fast as we're experiencing is just difficult to manage. Along with the significant swings in price of oil and gas over the last 6 months, we've delayed action on several transactions until we get a better view of economic conditions generally and pricing conditions in each basin. But managing growth beats the hell out of the alternative.
We think, under any circumstances, that it was a great quarter. We had sequential growth of 10% in revenues and 19% in adjusted EBITDA over last quarter. Gross margins improved from 13% to 17% sequentially. Our adjusted EBITDA margin grew from 19% to 21% sequentially. We continue to create a very difficult competitive advantage, especially for the independent truckers and smaller oilfield services companies. Our Marcellus/Utica revenues were up 23% over last quarter. Our Eagle Ford revenues were up 57% over last quarter.Marcellus/Utica is now our largest basin, with Haynesville second and the Eagle Ford third. Most of the $2 million and onetime start-up costs were evenly distributed between the Marcellus and the Eagle Ford. For those of you who saw the AP story today, the Marcellus and Haynesville are now close to either as the 2 largest producers of natural gas in the country. Without question, we built the most solid competitive position in these basins. And in the first half, we spent $27 million in capital expenditures and $5.5 million in transaction and start-up costs without drawing on our bank line, indicating a fairly decent cash generation for the first 6 months. Given that most of the companies we’ve talked to are sitting on their capital budgets for the rest of the year, we have decided to reduce our capital spending by 1/2 through the balance of the year, or until we have a better view of the economy. Read the rest of this transcript for free on seekingalpha.com