Crude Oil ( ) Brent Crude ( ) Natural Gas ( ) S&P 500 ( ) PHLX Oil ( )
Current BOOM Stock Info

Michael Kuta, Chief Financial Officer of Dynamic Materials Corp. (NASDAQ: BOOM), presented today at EnerCom’s The Oil & Gas Conference 20®.

Based in Boulder, Colorado, Dynamic Materials Corp. operates in two sectors: industrial infrastructure and oilfield products and services. The industrial infrastructure sector is served by DMC’s NobelClad business, the world’s largest manufacturer of explosion-welded clad metal plates, which are used to fabricate capital equipment utilized within various process industries and other industrial sectors. The oilfield products and services sector is served by DynaEnergetics, an international developer, manufacturer and marketer of advanced explosive components and systems used to perforate oil and gas wells.

Dynamic Materials reported second quarter 2015 sales of $44.7 million for a gross margin of 28%. DynaEnergetics and NobelClad, the company’s two businesses, generated approximately 70% of their combined sales from the global oil and gas industry.

During the company’s breakout session, management was asked the following questions:

  • I see you are building inventory for DynaEnergetics, what is your visibility for the market? Based on your distribution level, how long does it take to move from inventory to market?
  • How can you resist the pricing pressure in this market? And what is your margin objective?
  • Can you give me more details for the cost structure and cost savings, and how does it flow into profit and loss, for NobelClad and DynaEnergetics, respectively?
  • When, if ever, do you believe the oil sector will come back?
  • I know the NobelClad business has an extremely sophisticated process. Can you comment on that process and its competitive landscape?
  • What’s your inventory mix of the DynaEnergetics business, such as shaped charges and perforating guns?
  • Are you optimistic about the future of DynaEnergetics products, like DynaSelect Detonators?
  • I know you have other big competitors. How do you develop relationships with customers like the big four (BHI, HAL, SLB and WFT)? And what do your distribution channels look like?
  • Research and development is important for your company. How long does it take to develop new technology inside your company?

Click here for the webcast.

Important disclosures: The information provided herein is believed to be reliable; however, EnerCom, Inc. makes no representation or warranty as to its completeness or accuracy. EnerCom’s conclusions are based upon information gathered from sources deemed to be reliable. This note is not intended as an offer or solicitation for the purchase or sale of any security or financial instrument of any company mentioned in this note. This note was prepared for general circulation and does not provide investment recommendations specific to individual investors. All readers of the note must make their own investment decisions based upon their specific investment objectives and financial situation utilizing their own financial advisors as they deem necessary. Investors should consider a company’s entire financial and operational structure in making any investment decisions. Past performance of any company discussed in this note should not be taken as an indication or guarantee of future results. EnerCom is a multi-disciplined management consulting services firm that regularly intends to seek business, or currently may be undertaking business, with companies covered on Oil & Gas 360®, and thereby seeks to receive compensation from these companies for its services. In addition, EnerCom, or its principals or employees, may have an economic interest in any of these companies. As a result, readers of EnerCom’s Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this note. EnerCom, or its principals or employees, may have an economic interest in any of the companies covered in this report or on Oil & Gas 360®. As a result, readers of EnerCom’s reports or Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this report.