Year to date, QES has taken the following actions to reduce its cost structure and protect its balance sheet:
- CEO voluntary base salary reduction of 20%;
- Expect all-in executive cash compensation to reduce by 30% to 40%, including voluntary salary reductions of 10% to 20%;
- Reducing cash Board compensation;
- Reducing overall operating expenses, overhead and other variable costs to align with the current business activity levels, including an approximate 20% reduction in force in Q1;
- Reducing segment compensation by up to 20%;
- Plan to begin a furlough program to minimize cost in balance with activity;
- Working with vendors to reduce costs for all products and services;
- Implementing all available cost reductions and deferrals afforded to us under the CARES Act;
- Negotiating with lessors to reduce and defer fixed cost lease obligations;
- Idled three additional locations and both active frac spreads; and
- Updating guidance for 2020 capital spending to $10 to $15 million, which reflects reductions in all non-essential capital spending and a 50% decrease from the mid-point of range of prior guidance.