HOUSTON–(BUSINESS WIRE)–Quintana Energy Services Inc. (NYSE: QES)(“QES” or the “Company”)
today announced a change to the structure of its reportable business
segments, effective for the quarter ending March 31, 2020. This change,
reducing the number of reportable segments, was made to appropriately
reflect recent changes in how the Company manages its business, reviews
and assesses operating performance and allocates resources. QES
estimates the associated recurring annual cost savings to be
approximately $3.0 to $5.0 million once personnel, systems and facility
migrations are fully implemented.
Effective for the first quarter of 2020, the Company will begin
reporting results under two reportable segments: Drilling and
Completions. Previously, results for the Pressure Pumping segment,
Pressure Control segment and Wireline segment were disclosed as three
separate segments and will now be combined into the new Completions
segment. In addition, the associated operational, administrative and
support functions, including regional leadership, accounting, IT, HSE,
among others, will also be consolidated.
The two-segment structure is designed to enhance operational synergies,
better position QES to address industry trends, and provide customers
with a comprehensive all-in-one completion solution. In addition, as
part of QES’ new senior leadership structure, the Company now operates
within new decision-making parameters. The Company will begin reporting
its financial results under the new reportable segments with the filing
of its Form 10-Q for the first quarter ending March 31, 2020.
Keefer Lehner, QES’ Chief Financial Officer, stated, “The restructuring
of our business segments is part of our ongoing strategic initiative to
align our cost structure with the current and anticipated market
conditions for U.S. onshore oilfield service providers. Once completed
in mid-2020, we are confident these changes will dramatically improve
the way in which our management team analyzes performance and allocates
resources, generate material cost savings, position QES to continue
delivering market leading execution for our customers and successfully
compete in any market environment.”
QES will retrospectively reclassify two years of historical financial
results for previously reported quarterly and annual periods for fiscal
2017 and 2018 and recast those results to reflect the two new business
segments. The Company’s unaudited condensed consolidated financial
statements will be made available by the filing of a Form 8-K in
conjunction with filing Form 10-Q for the first quarter ending March 31,
2020.
| Prior Reporting Segment | New Reporting Segment | ||||
| Directional Drilling | Drilling | ||||
| Pressure Pumping | Completions | ||||
| Pressure Control | Completions | ||||
| Wireline | Completions |
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 United States. 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.
This news release 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, which are not
generally historical in nature, include those that express a belief,
expectation or intention regarding our future activities, plans and
goals. 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. 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 are listed in our filings with the SEC. 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.
