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Dawson Geophysical Announces Letter To Shareholders Regarding Tender Offer
MIDLAND, Texas, Nov. 16, 2021 /PRNewswire/ -- Dawson Geophysical Company (NASDAQ: DWSN) ("Dawson" or the "Company") today released the following letter to
About this update from Dawson Geophysical Company
[{"type":"text","content":"MIDLAND, Texas, Nov. 16, 2021 /PRNewswire/ -- Dawson Geophysical Company (NASDAQ: DWSN) (\"Dawson\" or the \"Company\") today released the following letter to shareholders concerning the pending tender offer by Wilks Brothers, LLC issued by Stephen C. Jumper, President and Chief Executive Officer on behalf of the Dawson Board of Directors.\nNovember 16, 2021\nFellow Dawson Shareholders:\nAs previously disclosed, the Company announced a transaction with Wilks Brothers, LLC (\"Wilks\") on October 25, 2021. The transaction involves a tender offer by a Wilks subsidiary to purchase outstanding Dawson common shares at $2.34 per share and a follow-on merger. The tender offer commenced on November 1, 2021 and is open until November 30, 2021 (subject to extensions under certain circumstances). The transaction is well described and documented in the Schedule 14D-9 and Schedule TO-T filed with the SEC by Dawson Geophysical Company (\"Dawson\" or the \"Company\") and WB Acquisitions Inc., respectively, on November 1, 2021, which can be obtained at the website maintained by the SEC at www.sec.gov.\nBeginning in September of 2019, Dawson and its Board of Directors, with the assistance of financial advisor Moelis & Company LLC, commenced an on-going review and analysis of the Company's potential strategic alternatives, transactions or actions in an effort to preserve and enhance shareholder value. From July 9, 2018, to September 2, 2019, the Company's share price declined from $8.09 to $2.11. The PHLX Oil Service Index also declined materially over the same time frame as the energy sector fell out of favor in the public equity markets; however, the decline in the Dawson share price exceeded the decline in the index. In response to shifting public investor sentiment, publicly traded North American based Exploration and Production (E&P) companies began to alter their capital spending plans with a focus on generating free cash flow and returning capital to shareholders. This change in capital allocation priorities by E&P companies, which accelerated further in 2020 and 2021, has resulted in less demand for North American onshore seismic data acquisition services, thus significantly affecting Dawson's revenue stream. \nIn parallel to evaluating potential strategic alternatives, we began a process to resize the Company as our model shifted to fewer...