For Dawson Shareholders, Now Is When to Hold On

About a month ago, Dawson Geophysical (NASD: DWSN) announced its third quarter earnings. The company lost $1.6 million on operating revenues of $52 million. Dawson has been indirectly impacted by the falling price of natural gas as its customers have cut back on new data gathering.

Last week on CNBC it seemed the discussion of the day was the decline in natural gas prices and whether or not there was any event or catalyst that might push prices higher. The consensus seemed to be no. The price of natural gas has fallen from over $9/MMBTU a year ago to about $2.85/MMBTU as of 9/1/09. Given this decline, Dawson’s customers have not been too eager to scout out new gas reserves.