Question-and-Answer Session
Operator
Thank you, sir. (Operator Instructions). Our first question will come from the line of Jim Rollyson with Raymond James. Please go ahead.
James Rollyson - Raymond James
Good morning, Stacy.
Wm. Stacy Locke
Good morning, Jim.
James Rollyson - Raymond James
Thanks for all the detailed guidance and thoughts. What's your sense of... between the two markets you're kind of well servicing in associated businesses versus the rig business? If activities closed to a bottom here in the next few weeks or say by middle of the year, and activity starts to pick up, what's your sense of which of the two business lines might actually see improvements on the pricing side or at least on the margin side from what you can control on the cost side?
Wm. Stacy Locke
Well I think that I believe would be that the Production Service side of the business would most likely improve first on the pricing side and the margin side. They are starting from a higher level of activity. We've got a good fleet and good markets with good people on both, wireline, fishing and rental, and work over, and I think that as things firm, we will be able to move there first.
I think the problem on the land rig side is that the actual rig count utilization is lower than the utilization while reporting those... the 39% represents seven stacked rigs but they are earning. So, you have so many... the true effective utilization is below 30, probably below 30% or so. So, you've got to pick up so many land rigs in different markets in order to obtain some pricing power. So I clearly think it will be the Production Service.
James Rollyson - Raymond James
That makes sense. And as a follow up; on the cost cutting front, you guys have done seems like a pretty good job so far trying to get cost down and that always tends to lag, maybe thoughts on where you cut costs, kind of thoughts on G&A and some of those items as you go forward through the year?
Wm. Stacy Locke
Jim, that's just been a continuous process for us. We are reviewing that pretty much every couple of weeks and we continue to make changes there and are doing so right now again. We also anticipate that we could have some hourly rate roll backs again. We haven't had one since last quarter, early last quarter and we think that that's likely to be in the current year fairly soon.
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