Reuters - Video

Edition: US | UK | IN | CN | JP

Finance Videos

ECONOMY 2013: Won't see much M&A in drilling sector- C&J CEO

Tuesday, April 16, 2013 - 05:06

Apr. 16 - C&J Energy Services CEO Joshua Comstock expects drillers are more likely to buy new equipment than to buy each other and says increased regulation could put pressure on his company's margins.

▲ Hide Transcript

View Transcript

And company executives. Our stock exchange I am joined now by the founding chairman and CEO of C and -- energy services jobs not good. -- think you. You know not so much about -- road. US energy independence that's really in the energy markets now we're almost eight years. Company. Although we do as we stimulate only guess it's so -- to me while -- acknowledge that you would hear a lot of updates. We've been doing that it's nice. And -- the unconventional drilling. A fraction. While -- That allows -- increased production. In the -- it was a visual completions. Services. Have become. The majority of the cost of doing which costs and it's it's a key role to the -- Top leaders in terms of practice activity I -- in New York Q1 cracking activity came a little bit below expectations what you -- now this quarter when -- expect. Yeah yeah. Well it's it's not so much back and activities for drilling through it's that's creating -- Over the past couple years we've seen. Huge supply. College -- -- in the market so that's that's helped him keep a man. Down for individual companies. However you know doing their accounts those years the -- black. We're not projecting a little. Large. Some votes increase hugely from war it'll take increased. And this man. That's very competitive space and thought. Well. We get so often that -- enough consolidators. It's part of our size vs the victory. -- Maker. That -- that matters are so many small companies started. That a lot of this consolidation -- equipment purchased and it. -- legitimate company -- it started when the man was so you know he bought it. Itself so. From that perspective. Consolidation has been something that we've not seen this story and I guess it happens. It would not be consolidation. And small companies have seen more midsize companies. Concerned are you overall about potential stricter regulations in practice. That impact is like. Well obviously it was. Have a negative impact. Regulations. Street. We're not too concerned about it because what we are what we're doing is violence things that's. To make sure that I think you know. Every study did it comes out in. You know really. Showed any detriment to. That's you know there are some regulations coming -- -- that impact the business but there are things that if you do. Q. Change the way we're doing things. You know -- for example water conservation and it was -- water regulations on the which are the amount of water we use their things that we can do on the other side of it with the design changes the site. It you know and still get the job the election. It actually margins -- impacts on the bottom line it. You would not impact the bottom line it would pressure margins. You know there there's two installs of hydraulic fracturing -- -- heavily watered race. It went really lows in concentration. Who have it's. The margin on matters because that's mostly services and so when you lower that water you preacher. Appreciate concentration. Overall the fact -- cost lives. A little bit more from price perspective it margins squeezed the bottom line. Dollar returned fairly. Just how hard is that I'm qualified workers. You know it's it's actually it was much harder two years ago we had. Now it's so many people from the industry through a lot of the Texas State -- room. In a lot of people from others. Those votes you know obviously you have any experience again when. But now this -- the -- that were working in the game experience. So for us we've gone and we went public in July 11. We were last 1000 employees they were over one problem. It is it it's it's fairly decent market. That's not -- and it -- -- thank you very much. -- --

Press CTRL+C (Windows), CMD+C (Mac), or long-press the URL below on your mobile device to copy the code

ECONOMY 2013: Won't see much M&A in drilling sector- C&J CEO

Tuesday, April 16, 2013 - 05:06