Why Dawson Geophysical Still Has Work to Do

Investors can't be too surprised at the difficulties that Dawson Geophysical (NASDAQ: DWSN)has faced in recent years. When oil prices plunged, it was no longer profitable for many drillers to develop new wells, and the costs of seismic exploration made it easy for cost-conscious exploration and production (E&P) company executives to take a knife to their capital budgets.

Now that oil prices are recovering, the corresponding bullish argument suggests that Dawson should be able to benefit from greater interest in developing previously shuttered sites.