Dawson Geophysical Company, a Texas corporation (the “Company”), is a leading provider of North American onshore seismic data acquisition services with operations throughout the continental United States (“U.S.”) and Canada.
−Removed: We acquire and process 2-D, 3-D and multi-component seismic data for our clients, ranging from major oil and gas companies to independent oil and gas operators as well as providers of multi-client data libraries.
+Added: We acquire and process 2-D, 3-D and multi-component seismic data for our clients, ranging from major oil and gas companies to independent oil and gas operators, providers of multi-client data libraries and carbon capture sequestration projects.
Our principal business office is located at 508 West Wall, Suite 800, Midland, Texas 79701 (Telephone:
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We make available free of charge on our website our annual reports on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K as soon as reasonably practicable after filing or furnishing such information with the Securities and Exchange Commission (“SEC”).
−Removed: Except as otherwise specifically noted herein, references herein to the “Company,” “we,” “us” or “our” refer to Dawson Geophysical Company and its consolidated subsidiaries.
+Added: Except as otherwise specifically noted herein, references in this annual report on Form 10-K to the “Company,” “we,” “us” or “our” refer to Dawson Geophysical Company and its consolidated subsidiaries.
We provide our seismic data acquisition services primarily to providers of multi-client data libraries for use in the onshore drilling and production of oil and natural gas in the continental U.S.
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We market and supplement our services in the continental U.S.
−Removed: from our headquarters in Midland, Texas and from additional offices in two other cities in Texas (Houston and Plano) as well as one additional state, Oklahoma (Oklahoma City).
+Added: from our headquarters in Midland, Texas and from additional offices in two other cities in Texas (Houston and Plano).
In addition, we market and supplement our services in Canada from our facilities in Calgary, Alberta.
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In contrast with the 3-D method, the 2-D method involves the collection of seismic data in a linear fashion, thus generating a single plane of subsurface seismic data.
−Removed: Over recent years, the size of our surveys and density of recording channels and vibrator energy source units has increased, resulting in an increase in required recording channels and energy source units to perform such surveys.
+Added: Over recent years, the size of our surveys and density of recording channels and vibrator energy source units have increased, resulting in an increase in required recording channels and energy source units to perform such surveys.
The trend for our industry has been a shift to fewer, larger channel count crews operating with an increase in the number of energy source units.
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(“SAE”), Echo Seismic Ltd.
−Removed: (“ECHO”), Breckenridge Geophysical, LLC.
−Removed: (“Breckenridge”), and Paragon Geophysical Services, Inc.
−Removed: (“Paragon”), along with other smaller companies which generally run one or two small channel count seismic crews and often specialize in specific regions or types of operations.
+Added: (“ECHO”), and Paragon Geophysical Services, Inc.
+Added: (“Paragon”), along with other smaller companies that generally run one or two small channel count seismic crews and often specialize in specific regions or types of operations.
Equipment and Crews
In recent years, we have experienced continued increases in recording channel capacity and vibrator energy source units on a per crew or project basis.
−Removed: This increase in channel count and energy source unit demand is driven by client needs and is necessary in order to produce higher resolution images, increase crew efficiencies and undertake larger scale projects.
−Removed: Due to the increase in demand for higher channel counts, we continued in recent years to make investments in additional channels.
+Added: This increase in channel count and energy source unit demand is driven by client needs and is necessary to produce higher resolution images, increase crew efficiencies and undertake larger scale projects.
+Added: Due to the increase in demand for higher channel counts, in recent years we continued to make investments in additional channels.
In response to project-based channel requirements, we routinely deploy a variable number of channels on a variable number of crews in an effort to maximize asset utilization and meet client needs.
While the number of recording systems we own may exceed the number utilized in the field at any given time, we maintain the excess equipment to provide additional operational flexibility and to allow us to quickly deploy additional recording channels and energy source units as needed to respond to client demand and desire for improved data quality with greater subsurface images.
−Removed: We believe we will realize the benefit of increased channel counts and flexibility of deployment through increased crew efficiencies, higher revenues and margins with improved conditions.
+Added: We believe we will realize the benefit of increased channel counts and flexibility of deployment through increased crew efficiencies, higher revenues and improved margins.
In recent years, we have purchased or leased a significant number of cableless recording channels.
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however, our Board of Directors may increase the capital budget in response to strategic opportunities to acquire seismic recording equipment.
−Removed: Our Board of Directors approved a maintenance capital expenditure budget of $5,000,000 for 2022 of which we utilized $1,778,000 during the 12 months ended December 31, 2022.
−Removed: Our Board of Directors has approved an initial maintenance capital expenditure budget of $5,000,000 for 2023.
+Added: Our Board of Directors approved a maintenance capital expenditure budget of $5 million for 2023 of which we utilized $3.7 million during the year ended December 31, 2023.
+Added: Our Board of Directors has approved an initial maintenance capital expenditure budget of $5 million for 2024.
Our services are marketed by supervisory and executive personnel who contact clients to determine geophysical needs and respond to client inquiries regarding the availability of crews or processing schedules.
−Removed: These contacts are based principally upon professional relationships developed over a number of years.
−Removed: Our clients range from major oil and gas companies to small independent oil and gas operators and also providers of multi-client data libraries.
+Added: These contacts are based principally on professional relationships developed over a number of years.
+Added: Our clients range from major oil and gas companies to small independent oil and gas operators and providers of multi-client data libraries.
The services we provide to our clients vary according to the size and needs of each client.
−Removed: During the twelve months ended December 31, 2022, sales to three clients represented approximately 35% of our revenues.
−Removed: We anticipate that sales to these clients will represent a similar percentage of our overall revenues during 2023.
−Removed: The remaining balance of our revenues were derived from varied clients and none represented 10% or more of our revenues.
+Added: During the twelve months ended December 31, 2023, sales to four clients represented approximately 73% of our revenues.
+Added: The remaining balance of our revenues were derived from varied clients, none of which represented 10% or more of our revenues.
We historically have not acquired seismic data for our own account or for future sale, maintained multi-client seismic data libraries, or participated in oil and gas ventures;
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The results of seismic surveys conducted for a client belong to that client.
−Removed: It is also our policy that none of our officers, directors or employees actively participate in oil and natural gas ventures.
All of our clients’ information is maintained in the strictest confidence.
Domestic and Foreign Operations
−Removed: We derive our revenue from domestic and foreign sources.
−Removed: Refer to “Note 15, Areas of Operation” to the Consolidated Financial Statements incorporated by reference herein for additional details.
+Added: We derive revenue from the U.S.
+Added: and Canadian markets.
+Added: We consider these two geographical areas as segments for reporting purposes.
+Added: The revenue for both of our segments is generated by the same services, which utilize the same type of equipment and personnel.
+Added: Historically, the chief operating decision maker made operating decisions and evaluated operating results of the Company on a consolidated basis.
+Added: In December 2023, we appointed a new Chief Executive Officer who is our current chief operating decision maker.
+Added: Currently, our chief operating decision maker reviews the discrete segment financial information on a geographic basis for the US operations and Canada Operations.
+Added: The revenue for both of the Company’s segments is generated by the same services, which utilize the same type of equipment and personnel.
+Added: The performance of our segments is evaluated primarily on Adjusted EBITDA.
+Added: We define Adjusted EBITDA as our net income (loss), before (i) interest expense, net, (ii) income tax expense or benefit, (iii) depreciation, depletion and amortization and (iv) other unusual or non-recurring charges, such as severance expenses.
+Added: As a result, our business has two reportable segments, US operations and Canada Operations.
+Added: We have included disclosures about our two reportable segments for all periods presented herein.
+Added: For a discussion of financial information by segment refer to “Note 15, Segments” to the Consolidated Financial Statements incorporated by reference herein for additional details.
+Added: For a description of risks associated with our foreign operations, please see “Item 1A.
+Added: Risk Factors ".
Our contracts are obtained either through competitive bidding or as a result of client negotiations.
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Currently, as in recent years, most of our projects are operated under turnkey agreements.
−Removed: Turnkey agreements generally provide us more profit potential, but involve more risks because of the potential of crew downtime or operational delays.
−Removed: We attempt to negotiate on a project-by-project basis some level of weather downtime protection within the turnkey
+Added: Turnkey agreements generally provide us more profit potential, but involve more risk because of the potential of crew downtime or operational delays.
+Added: We attempt to negotiate on a project-by-project basis some level of weather downtime protection within the turnkey agreements.
Under the term agreements, we forego an increased profit potential in exchange for a more consistent revenue stream with improved protection from crew downtime or operational delays.
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Contracts for such services generally are awarded on the basis of price quotations, crew experience, and the availability of crews to perform in a timely manner, although factors other than price, such as crew safety, performance history, and technological and operational expertise, are often determinative.
−Removed: Our primary competition includes SAE, ECHO, Breckenridge, and Paragon.
+Added: Our primary competition includes SAE, ECHO, and Paragon.
In addition to these previously named companies, we also compete for projects from time to time with smaller seismic companies which operate in local markets with only one or two small channel count crews.
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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.