DAWSON GEOPHYSICAL REPORTS SECOND QUARTER 2024 RESULTS
Management Comment
Second Quarter and Year-to-Date Results
For the second quarter ended
For the second quarter ended
Year to date, we have generated net income of
Operations Update
The Company started the quarter with two crews in
We periodically evaluate all of our assets and are looking for opportunities to divest certain under-utilized assets to improve our return on capital.
Special Cash Dividend and Liquidity
As previously reported, the Company's Board of Directors declared a special cash dividend on the Company's common stock of
For the six months ended
About Dawson
Non-GAAP Financial Measures
In an effort to provide investors with additional information regarding the Company's preliminary and unaudited results as determined by generally accepted accounting principles ("GAAP"), the Company has included in this press release information about the Company's Adjusted EBITDA, a non-GAAP financial measure as defined by Regulation G promulgated by the
- the financial performance of its assets without regard to financing methods, capital structures, taxes or historical cost basis;
- its liquidity and operating performance over time in relation to other companies that own similar assets and that the Company believes calculate Adjusted EBITDA in a similar manner; and
- the ability of the Company's assets to generate cash sufficient for the Company to pay potential interest costs.
The Company also understands that such data is used by investors to assess its performance. However, the terms EBITDA and Adjusted EBITDA are not defined under GAAP, and neither EBITDA nor Adjusted EBITDA is a measure of operating income, operating performance or liquidity presented in accordance with GAAP. When assessing our operating performance or liquidity, investors and others should not consider this data in isolation or as a substitute for net income (loss), cash flow from operating activities or other cash flow data calculated in accordance with GAAP. In addition, the Company's EBITDA and Adjusted EBITDA may not be comparable to EBITDA, Adjusted EBITDA, or similarly titled measures utilized by other companies since such other companies may not calculate EBITDA or Adjusted EBITDA in the same manner as us. Further, the results presented by EBITDA or Adjusted EBITDA cannot be achieved without incurring the costs that the measure excludes: interest, taxes, and depreciation and amortization, and other unusual or non-recurring charges, such as severance expenses. A reconciliation of the Company's Adjusted EBITDA to its net loss is presented in the table following the text of this press release.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, the Company cautions that statements in this press release which are forward-looking and which provide other than historical information involve risks and uncertainties that may materially affect the Company's actual results of operations. Forward-looking statements generally relate to future events or the Company's future financial or operating performance and may be identified by words such as "may," "should," "expect," "intend," "will," "estimate," "anticipate," "believe," "predict," or similar words. Such forward-looking statements are based on the beliefs of management as well as assumptions made by and information currently available to management. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors. These factors include, but are not limited to, our status as a controlled public company, which exempts us from certain corporate governance requirements; the limited market for our common stock, which could result in the delisting of the common stock from Nasdaq; the impact of general economic, industry, market or political conditions; dependence upon energy industry spending; changes in exploration and production spending by our customers and changes in the level of oil and natural gas exploration and development; the results of operations and financial condition of our customers, particularly during extended periods of low prices for crude oil and natural gas; the volatility of oil and natural gas prices; changes in economic conditions; the severity and duration of the COVID-19 pandemic, related economic repercussions and the resulting impact on demand for oil and gas; surplus in the supply of oil and the ability of the
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (unaudited and amounts in thousands, except share and per share data) |
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
|
|
|
|
|
|
|
|
|
|
|
|
Operating revenues: |
|
|
|
|
|
|
|
|
|
|
|
Fee Revenue |
$ |
8,326 |
|
$ |
10,881 |
|
$ |
35,064 |
|
$ |
33,154 |
Reimbursable Revenue |
|
4,186 |
|
|
9,338 |
|
|
9,032 |
|
|
16,473 |
|
|
12,512 |
|
|
20,219 |
|
|
44,096 |
|
|
49,627 |
Operating costs: |
|
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
Fee operating expenses |
|
8,499 |
|
|
10,568 |
|
|
25,995 |
|
|
27,215 |
Reimbursable operating expenses |
|
4,186 |
|
|
9,338 |
|
|
9,032 |
|
|
16,473 |
|
|
12,685 |
|
|
19,906 |
|
|
35,027 |
|
|
43,688 |
General and administrative |
|
2,171 |
|
|
2,977 |
|
|
4,082 |
|
|
6,476 |
Severance expense |
|
86 |
|
|
— |
|
|
86 |
|
|
— |
Depreciation and amortization |
|
1,406 |
|
|
2,113 |
|
|
2,995 |
|
|
4,813 |
|
|
16,348 |
|
|
24,996 |
|
|
42,190 |
|
|
54,977 |
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income from operations |
|
(3,836) |
|
|
(4,777) |
|
|
1,906 |
|
|
(5,350) |
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
105 |
|
|
136 |
|
|
218 |
|
|
244 |
Interest expense |
|
(39) |
|
|
(14) |
|
|
(85) |
|
|
(31) |
Other income (expense), net |
|
93 |
|
|
143 |
|
|
332 |
|
|
195 |
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income before income tax |
|
(3,677) |
|
|
(4,512) |
|
|
2,371 |
|
|
(4,942) |
|
|
|
|
|
|
|
|
|
|
|
|
Current |
|
131 |
|
|
(14) |
|
|
(71) |
|
|
(22) |
Deferred |
|
— |
|
|
96 |
|
|
— |
|
|
121 |
Income tax benefit (expense) |
|
131 |
|
|
82 |
|
|
(71) |
|
|
99 |
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income |
|
(3,546) |
|
|
(4,430) |
|
|
2,300 |
|
|
(4,843) |
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive (loss) income: |
|
|
|
|
|
|
|
|
|
|
|
Net unrealized (loss) income on foreign exchange rate translation |
|
(110) |
|
|
249 |
|
|
(270) |
|
|
243 |
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive (loss) income |
$ |
(3,656) |
|
$ |
(4,181) |
|
$ |
2,030 |
|
$ |
(4,600) |
|
|
|
|
|
|
|
|
|
|
|
|
Basic (loss) income per share of common stock |
$ |
(0.12) |
|
$ |
(0.18) |
|
$ |
0.07 |
|
$ |
(0.19) |
|
|
|
|
|
|
|
|
|
|
|
|
Diluted (loss) income per share of common stock |
$ |
(0.12) |
|
$ |
(0.18) |
|
$ |
0.07 |
|
$ |
(0.19) |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average equivalent common shares outstanding |
|
30,815,443 |
|
|
25,000,564 |
|
|
30,813,886 |
|
|
25,000,564 |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average equivalent common shares outstanding - assuming dilution |
|
30,815,443 |
|
|
25,000,564 |
|
|
30,813,886 |
|
|
25,000,564 |
CONSOLIDATED BALANCE SHEETS (amounts in thousands, except share data) |
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|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
2024 |
|
2023 |
||
Assets |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
11,158 |
|
$ |
10,772 |
Restricted cash |
|
|
— |
|
|
5,000 |
Short-term investments |
|
|
265 |
|
|
265 |
Accounts receivable, net |
|
|
4,424 |
|
|
12,735 |
Prepaid expenses and other current assets |
|
|
7,079 |
|
|
8,654 |
Total current assets |
|
|
22,926 |
|
|
37,426 |
|
|
|
|
|
|
|
Property and equipment, net |
|
|
15,082 |
|
|
16,508 |
|
|
|
|
|
|
|
Right-of-use assets |
|
|
2,620 |
|
|
3,208 |
|
|
|
|
|
|
|
Intangibles, net |
|
|
365 |
|
|
377 |
|
|
|
|
|
|
|
Total assets |
|
$ |
40,993 |
|
$ |
57,519 |
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
Accounts payable |
|
$ |
3,400 |
|
$ |
3,883 |
Accrued liabilities: |
|
|
|
|
|
|
Payroll costs and other taxes |
|
|
2,249 |
|
|
3,415 |
Other |
|
|
759 |
|
|
709 |
Deferred revenue |
|
|
5,709 |
|
|
11,829 |
Current maturities of notes payable and finance leases |
|
|
740 |
|
|
1,380 |
Current maturities of operating lease liabilities |
|
|
1,064 |
|
|
1,202 |
Total current liabilities |
|
|
13,921 |
|
|
22,418 |
|
|
|
|
|
|
|
Long-term liabilities: |
|
|
|
|
|
|
Notes payable and finance leases, net of current maturities |
|
|
1,408 |
|
|
1,289 |
Operating lease liabilities, net of current maturities |
|
|
1,862 |
|
|
2,363 |
Deferred tax liabilities, net |
|
|
15 |
|
|
15 |
Total long-term liabilities |
|
|
3,285 |
|
|
3,667 |
|
|
|
|
|
|
|
Commitments and contingencies |
|
|
— |
|
|
— |
|
|
|
|
|
|
|
Stockholders' equity: |
|
|
|
|
|
|
Preferred stock-par value |
|
|
— |
|
|
— |
Common stock-par value |
|
|
|
|
|
|
30,906,777 and 30,812,329 shares issued and outstanding at |
|
|
|
|
|
|
and |
|
|
309 |
|
|
308 |
Additional paid-in capital |
|
|
156,860 |
|
|
156,678 |
Accumulated deficit |
|
|
(131,200) |
|
|
(123,640) |
Accumulated other comprehensive loss, net |
|
|
(2,182) |
|
|
(1,912) |
Total stockholders' equity |
|
|
23,787 |
|
|
31,434 |
|
|
|
|
|
|
|
Total liabilities and stockholders' equity |
|
$ |
40,993 |
|
$ |
57,519 |
Reconciliation of Adjusted EBITDA to Net (Loss) Income (amounts in thousands) |
|||||||||||||||||
|
|||||||||||||||||
|
Three Months Ended |
||||||||||||||||
|
2024 US |
|
2024 CA |
|
2024 Consol. |
|
2023 US |
|
2023 CA |
|
2023 Consol. |
||||||
Net loss |
$ |
(2,468) |
|
$ |
(1,078) |
|
$ |
(3,546) |
|
$ |
(2,794) |
|
$ |
(1,636) |
|
$ |
(4,430) |
Depreciation and amortization |
|
1,162 |
|
|
244 |
|
|
1,406 |
|
|
1,528 |
|
|
585 |
|
|
2,113 |
Interest income, net |
|
(60) |
|
|
(6) |
|
|
(66) |
|
|
(81) |
|
|
(41) |
|
|
(122) |
Income tax benefit |
|
(131) |
|
|
— |
|
|
(131) |
|
|
(82) |
|
|
— |
|
|
(82) |
EBITDA |
|
(1,497) |
|
|
(840) |
|
|
(2,337) |
|
|
(1,429) |
|
|
(1,092) |
|
|
(2,521) |
Severance expense |
|
86 |
|
|
— |
|
|
86 |
|
|
— |
|
|
— |
|
|
— |
Adjusted EBITDA |
$ |
(1,411) |
|
$ |
(840) |
|
$ |
(2,251) |
|
$ |
(1,429) |
|
$ |
(1,092) |
|
$ |
(2,521) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended |
||||||||||||||||
|
2024 US |
|
2024 CA |
|
2024 Consol. |
|
2023 US |
|
2023 CA |
|
2023 Consol. |
||||||
Net (loss) income |
$ |
(301) |
|
$ |
2,601 |
|
$ |
2,300 |
|
$ |
(5,254) |
|
$ |
411 |
|
$ |
(4,843) |
Depreciation and amortization |
|
2,467 |
|
|
528 |
|
|
2,995 |
|
|
3,646 |
|
|
1,167 |
|
|
4,813 |
Interest income, net |
|
(123) |
|
|
(10) |
|
|
(133) |
|
|
(156) |
|
|
(57) |
|
|
(213) |
Income tax expense (benefit) |
|
71 |
|
|
— |
|
|
71 |
|
|
(99) |
|
|
— |
|
|
(99) |
EBITDA |
|
2,114 |
|
|
3,119 |
|
|
5,233 |
|
|
(1,863) |
|
|
1,521 |
|
|
(342) |
Severance expense |
|
86 |
|
|
— |
|
|
86 |
|
|
— |
|
|
— |
|
|
— |
Adjusted EBITDA |
$ |
2,200 |
|
$ |
3,119 |
|
$ |
5,319 |
|
$ |
(1,863) |
|
$ |
1,521 |
|
$ |
(342) |
Reconciliation of Adjusted EBITDA to Net Cash Provided By (Used in) Operating Activities (amounts in thousands) |
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
||||||||||||||||
|
2024 US |
|
2024 CA |
|
2024 Consol. |
|
2023 US |
|
2023 CA |
|
2023 Consol. |
||||||
Net cash provided by (used in) operating activities |
$ |
1,302 |
|
$ |
4,618 |
|
$ |
5,920 |
|
$ |
(868) |
|
$ |
8,439 |
|
$ |
7,571 |
Changes in working capital and other items |
|
(2,285) |
|
|
(5,408) |
|
|
(7,693) |
|
|
(340) |
|
|
(9,485) |
|
|
(9,825) |
Non-cash adjustments to net loss |
|
(514) |
|
|
(50) |
|
|
(564) |
|
|
(221) |
|
|
(46) |
|
|
(267) |
EBITDA |
|
(1,497) |
|
|
(840) |
|
|
(2,337) |
|
|
(1,429) |
|
|
(1,092) |
|
|
(2,521) |
Severance expense |
|
86 |
|
|
— |
|
|
86 |
|
|
— |
|
|
— |
|
|
— |
Adjusted EBITDA |
$ |
(1,411) |
|
$ |
(840) |
|
$ |
(2,251) |
|
$ |
(1,429) |
|
$ |
(1,092) |
|
$ |
(2,521) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended |
||||||||||||||||
|
2024 US |
|
2024 CA |
|
2024 Consol. |
|
2023 US |
|
2023 CA |
|
2023 Consol. |
||||||
Net cash provided by operating activities |
$ |
3,298 |
|
$ |
4,492 |
|
$ |
7,790 |
|
$ |
1,710 |
|
$ |
4,041 |
|
$ |
5,751 |
Changes in working capital and other items |
|
(450) |
|
|
(1,272) |
|
|
(1,722) |
|
|
(3,134) |
|
|
(2,438) |
|
|
(5,572) |
Non-cash adjustments to net (loss) income |
|
(734) |
|
|
(101) |
|
|
(835) |
|
|
(439) |
|
|
(82) |
|
|
(521) |
EBITDA |
|
2,114 |
|
|
3,119 |
|
|
5,233 |
|
|
(1,863) |
|
|
1,521 |
|
|
(342) |
Severance expense |
|
86 |
|
|
— |
|
|
86 |
|
|
— |
|
|
— |
|
|
— |
Adjusted EBITDA |
$ |
2,200 |
|
$ |
3,119 |
|
$ |
5,319 |
|
$ |
(1,863) |
|
$ |
1,521 |
|
$ |
(342) |
Statements of Operations by operating segment for the three and six months ended |
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||
|
|
|
Canada Operations |
|
Consolidated |
|
|
|
Canada Operations |
|
Consolidated |
||||||
Operating revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fee revenue |
$ |
8,321 |
|
$ |
5 |
|
$ |
8,326 |
|
$ |
26,608 |
|
$ |
8,456 |
|
$ |
35,064 |
Reimbursable revenue |
|
4,186 |
|
|
— |
|
|
4,186 |
|
|
8,995 |
|
|
37 |
|
|
9,032 |
|
|
12,507 |
|
|
5 |
|
|
12,512 |
|
|
35,603 |
|
|
8,493 |
|
|
44,096 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating costs: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fee operating expenses |
|
7,846 |
|
|
653 |
|
|
8,499 |
|
|
21,025 |
|
|
4,970 |
|
|
25,995 |
Reimbursable operating expenses |
|
4,186 |
|
|
— |
|
|
4,186 |
|
|
8,995 |
|
|
37 |
|
|
9,032 |
Operating expenses |
|
12,032 |
|
|
653 |
|
|
12,685 |
|
|
30,020 |
|
|
5,007 |
|
|
35,027 |
General and administrative |
|
1,998 |
|
|
173 |
|
|
2,171 |
|
|
3,740 |
|
|
342 |
|
|
4,082 |
Severance expense |
|
86 |
|
|
— |
|
|
86 |
|
|
86 |
|
|
— |
|
|
86 |
Depreciation and amortization |
|
1,162 |
|
|
244 |
|
|
1,406 |
|
|
2,467 |
|
|
528 |
|
|
2,995 |
|
|
15,278 |
|
|
1,070 |
|
|
16,348 |
|
|
36,313 |
|
|
5,877 |
|
|
42,190 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income from operations |
|
(2,771) |
|
|
(1,065) |
|
|
(3,836) |
|
|
(710) |
|
|
2,616 |
|
|
1,906 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
89 |
|
|
16 |
|
|
105 |
|
|
188 |
|
|
30 |
|
|
218 |
Interest expense |
|
(29) |
|
|
(10) |
|
|
(39) |
|
|
(65) |
|
|
(20) |
|
|
(85) |
Other income (expense) |
|
112 |
|
|
(19) |
|
|
93 |
|
|
357 |
|
|
(25) |
|
|
332 |
(Loss) income before income tax |
|
(2,599) |
|
|
(1,078) |
|
|
(3,677) |
|
|
(230) |
|
|
2,601 |
|
|
2,371 |
Income tax benefit (expense) |
|
131 |
|
|
— |
|
|
131 |
|
|
(71) |
|
|
— |
|
|
(71) |
Net (loss) income |
|
(2,468) |
|
|
(1,078) |
|
|
(3,546) |
|
|
(301) |
|
|
2,601 |
|
|
2,300 |
Other comprehensive (loss) income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net unrealized loss on foreign exchange rate translation |
|
— |
|
|
(110) |
|
|
(110) |
|
|
— |
|
|
(270) |
|
|
(270) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive (loss) income |
$ |
(2,468) |
|
$ |
(1,188) |
|
$ |
(3,656) |
|
$ |
(301) |
|
$ |
2,331 |
|
$ |
2,030 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||
|
|
|
Canada Operations |
|
Consolidated |
|
|
|
Canada Operations |
|
Consolidated |
||||||
Operating revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fee revenue |
$ |
10,780 |
|
$ |
101 |
|
$ |
10,881 |
|
$ |
23,043 |
|
$ |
10,111 |
|
$ |
33,154 |
Reimbursable revenue |
|
9,336 |
|
|
2 |
|
|
9,338 |
|
|
15,869 |
|
|
604 |
|
|
16,473 |
|
|
20,116 |
|
|
103 |
|
|
20,219 |
|
|
38,912 |
|
|
10,715 |
|
|
49,627 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating costs: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fee operating expenses |
|
9,643 |
|
|
925 |
|
|
10,568 |
|
|
19,287 |
|
|
7,928 |
|
|
27,215 |
Reimbursable operating expenses |
|
9,336 |
|
|
2 |
|
|
9,338 |
|
|
15,869 |
|
|
604 |
|
|
16,473 |
Operating expenses |
|
18,979 |
|
|
927 |
|
|
19,906 |
|
|
35,156 |
|
|
8,532 |
|
|
43,688 |
General and administrative |
|
2,667 |
|
|
310 |
|
|
2,977 |
|
|
5,769 |
|
|
707 |
|
|
6,476 |
Severance expense |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
Depreciation and amortization |
|
1,528 |
|
|
585 |
|
|
2,113 |
|
|
3,646 |
|
|
1,167 |
|
|
4,813 |
|
|
23,174 |
|
|
1,822 |
|
|
24,996 |
|
|
44,571 |
|
|
10,406 |
|
|
54,977 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income from operations |
|
(3,058) |
|
|
(1,719) |
|
|
(4,777) |
|
|
(5,659) |
|
|
309 |
|
|
(5,350) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
91 |
|
|
45 |
|
|
136 |
|
|
178 |
|
|
66 |
|
|
244 |
Interest expense |
|
(10) |
|
|
(4) |
|
|
(14) |
|
|
(22) |
|
|
(9) |
|
|
(31) |
Other income (expense) |
|
101 |
|
|
42 |
|
|
143 |
|
|
150 |
|
|
45 |
|
|
195 |
(Loss) income before income tax |
|
(2,876) |
|
|
(1,636) |
|
|
(4,512) |
|
|
(5,353) |
|
|
411 |
|
|
(4,942) |
Income tax benefit |
|
82 |
|
|
— |
|
|
82 |
|
|
99 |
|
|
— |
|
|
99 |
Net (loss) income |
|
(2,794) |
|
|
(1,636) |
|
|
(4,430) |
|
|
(5,254) |
|
|
411 |
|
|
(4,843) |
Other comprehensive (loss) income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net unrealized income on foreign exchange rate translation |
|
— |
|
|
249 |
|
|
249 |
|
|
— |
|
|
243 |
|
|
243 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive (loss) income |
$ |
(2,794) |
|
$ |
(1,387) |
|
$ |
(4,181) |
|
$ |
(5,254) |
|
$ |
654 |
|
$ |
(4,600) |
View original content:https://www.prnewswire.com/news-releases/dawson-geophysical-reports-second-quarter-2024-results-302220266.html
SOURCE