The following discussion and analysis of financial condition and results of operations should be read in conjunction with our unaudited consolidated financial statements and accompanying notes included in this Quarterly Report. In addition, the following discussion and analysis also should be read in conjunction with our Annual Report on Form 10-K for the year endedDecember 31, 2020 filed with theSEC onMarch 5, 2021 (" 2020 Annual Report "). This discussion includes forward-looking statements that involve certain risks and uncertainties. Business Overview We are a geographically diversified oil and gas services company, focused on completion fluids and associated products and services, comprehensive water management, frac flowback and production well testing. We operate through two reporting segments organized into two Divisions - Completion Fluids & Products and Water & Flowback Services. In January, we announced our commitment to pursue low carbon energy initiatives that would leverage our fluids and aqueous chemistry core competencies, our significant bromine and lithium assets (including our approximately 31,100 net acres of brine leases inArkansas ) and technologies, and our leading calcium chloride production capabilities. After declining to historic lows due to depressed oil prices resulting fromRussia andSaudi Arabia's price war and the COVID-19 pandemic last year, toward the end of 2020 and into the first quarter of 2021, customer activity levels in theNorth America onshore business began to recover as oil prices returned to over$60 per barrel. Customer activity levels continued to improve during the second quarter as oil prices remained constructive, increasing into the$70 per barrel range by the end of the quarter. Although activity during the second quarter of 2021 for offshore and international customers remained below prior year levels, our Completion Fluids and Products business delivered higher revenues sequentially compared to the first quarter as activity began to ramp back up in theGulf of Mexico and internationally. The continued rollout of COVID-19 vaccines and fiscal stimulus policies are expected to support an ongoing global economic recovery and further improve the oil demand outlook which, together with continued discipline fromUnited States operators, should provide support for oil and gas prices and further increases in offshore activity both in theGulf of Mexico and internationally during the second half of the year. However, the current market conditions resulting from the COVID-19 pandemic could rapidly change and there could be a new outbreak of a COVID-19 variant or the vaccines may not be as effective as anticipated, which could negatively impact the demand for our services and products and our future revenues, results of operations and cash flows.
With activity levels expected to further increase during the second half of the
year, we are continuing to tightly manage our cost structure. Many of the cost
reduction initiatives executed in response to unprecedented industry conditions
last year remained in effect as of the end of the second quarter.
On
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