CALGARY, Alberta, May 15, 2025 (GLOBE NEWSWIRE) — Calfrac Well Services Ltd. (“Calfrac” or “the Company”) (TSX: CFW) announces its financial and operating results for the three months ended March 31, 2025. The following press release should be read in conjunction with the management’s discussion and analysis and interim consolidated financial statements and notes thereto as at March 31, 2025. Readers should also refer to the “Forward-looking statements” legal advisory and the section regarding “Non-GAAP Measures” at the end of this press release. All financial amounts and measures are expressed in Canadian dollars unless otherwise indicated. Additional information about Calfrac is available on the SEDAR+ website at www.sedarplus.ca, including the Company’s Annual Information Form for the year ended December 31, 2024.
CFO’S MESSAGE
Calfrac achieved revenue of $370.1 million during the first quarter in 2025, a 3 percent decline from the fourth quarter in 2024, primarily due to a normal seasonal slowdown in activity in the Rockies region of North America. As experienced over the last couple of years, activity in the Rockies region continues to be very challenging during the first quarter due to limited customer activity, resulting from the higher costs of operating in extreme cold weather. However, the Company’s Argentina operations delivered a sequential increase in revenue of 56 percent as it operated two unconventional fracturing spreads in the Vaca Muerta shale play for a portion of the first quarter.
Calfrac’s Chief Financial Officer, Mike Olinek commented: “I am very pleased with the strong operating and financial performance demonstrated by Calfrac’s team in Argentina during the first quarter and look forward to building on this positive momentum throughout the remainder of the year. I am also confident that the Company’s North American DGB fracturing fleets will remain in high demand and allow us to successfully navigate any potential slowdown in North America and deliver on our strategic priorities.”
SELECT FINANCIAL HIGHLIGHTS – CONTINUING OPERATIONS
| Three Months Ended Mar. 31, | ||||||
| 2025 | 2024 | Change | ||||
| (C$000s, except per share amounts) | ($) | ($) | (%) | |||
| (unaudited) | ||||||
| Revenue | 370,057 | 330,096 | 12 | |||
| Adjusted EBITDA(1) | 55,317 | 26,057 | 112 | |||
| Cash flows provided by operating activities | (7,050 | ) | 11,958 | NM | ||
| Capital expenditures | 42,132 | 48,072 | (12 | ) | ||
| Net income (loss) | 7,796 | (2,903 | ) | NM | ||
| Per share – basic | 0.09 | (0.03 | ) | NM | ||
| Per share – diluted | 0.09 | (0.03 | ) | NM | ||
| As at | Mar. 31, | Dec. 31, | Change | |
| 2025 | 2024 | |||
| (C$000s) | ($) | ($) | (%) | |
| (unaudited) | ||||
| Cash and cash equivalents | 15,463 | 44,045 | (65 | ) |
| Working capital, end of period(2) | 266,087 | 229,856 | 16 | |
| Total assets, end of period | 1,254,979 | 1,234,840 | 2 | |
| Long-term debt, end of period | 341,095 | 320,908 | 6 | |
| Net debt(1)(3) | 348,674 | 300,347 | 16 | |
| Total consolidated equity, end of period | 660,262 | 653,330 | 1 | |
(1) Refer to “Non-GAAP Measures” on page 6 for further information.
(2) Working capital excludes cash and cash equivalents and the current portion of long-term debt of $341.1 million.
(3) Refer to note 10 of the consolidated interim financial statements for further information.
FIRST QUARTER OVERVIEW
In the first quarter of 2025, the Company:
- generated revenue of $370.1 million, an increase of 12 percent from the first quarter in 2024 resulting primarily from higher pricing and activity in Argentina, offset partially by lower pricing in North America;
- reported Adjusted EBITDA of $55.3 million versus $26.1 million in the first quarter of 2024 due to record quarterly financial results in Argentina with the commencement of a second large fracturing fleet in the Vaca Muerta shale play during a portion of the first quarter;
- had cash flow from operating activities of negative $7.1 million, which included $12.7 million of interest paid and cash used for working capital purposes of $35.0 million, as compared to $12.0 million in the first quarter of 2024, which was net of $9.7 million of interest paid and cash used for working capital purposes of $1.6 million;
- reported net income from continuing operations of $7.8 million or $0.09 per share diluted compared to a net loss of $2.9 million or $0.03 per share diluted during the first quarter in 2024;
- had a cash position of $15.5 million of which approximately 70 percent was held in Argentina. The Argentina cash balance includes an investment of US$6.1 million in Argentinean government bonds (BOPREAL Bonds) that will be repatriated to Canada before the end of the third quarter in 2025;
- reported an increase in period-end working capital to $266.1 million from $229.9 million at December 31, 2024, primarily due to an increase in revenue in the first quarter of 2025 with a greater proportion generated from Argentina, which has longer lead times to collection than North America; and
- incurred capital expenditures of $42.1 million, which included approximately $22.3 million of expansion capital in Argentina and $9.3 million related to the Company’s fracturing fleet modernization program in North America, including auxiliary support equipment.
FINANCIAL OVERVIEW – CONTINUING OPERATIONS
THREE MONTHS AND YEARS ENDED MARCH 31, 2025 VERSUS 2024
NORTH AMERICA
| Three Months Ended Mar. 31, | ||||
| 2025 | 2024 | Change | ||
| (C$000s, except operational and exchange rate information) | ($) | ($) | (%) | |
| (unaudited) | ||||
| Revenue | 227,902 | 248,959 | (8 | ) |
| Adjusted EBITDA(1) | 6,131 | 14,872 | (59 | ) |
| Adjusted EBITDA (%)(1) | 2.7 | 6.0 | (55 | ) |
| Fracturing revenue per job ($) | 25,060 | 33,518 | (25 | ) |
| Number of fracturing jobs | 8,709 | 7,176 | 21 | |
| Active pumping horsepower, end of year (000s) | 898 | 951 | (6 | ) |
| US$/C$ average exchange rate(2) | 1.4352 | 1.3486 | 6 | |
(1) Refer to “Non-GAAP Measures” on page 6 for further information.
(2) Source: Bank of Canada.
OUTLOOK
The uncertainty caused by geopolitical tensions, OPEC+ supply increases, and changes to the United States trade and tariff regimes, have affected the economic outlook for the global economy and triggered a recent decline in near-term crude oil prices. While activity in North America has not been significantly impacted as yet, oil-weighted completion activity is expected to be lower year-over-year, but more resilient than past cycles as a focus on capital discipline by the E&P sector has resulted in activity that only supports the maintenance of current production levels. However, completions activity within the Company’s natural gas producing regions in North America is anticipated to be slightly higher than the previous year given the relative strength in natural gas prices.
The Company has been evaluating the implication of tariffs across its North American operations over the last few months and has commenced with mitigation efforts, wherever possible, including seeking applicable tariff exemptions for critical items that are sourced from the United States.
Calfrac’s previously announced Tier IV modernization program is nearing completion. These strategic investments in next-generation Dynamic Gas Blending (“DGB”) pumping technology have resulted in the Company exiting the quarter with the equivalent of five Tier IV DGB fleets operating in the field. Calfrac’s dual-fuel capable fracturing fleets in North America are expected to remain in high demand during the second quarter, despite the current headwinds, and fleet utilization is expected to increase sequentially from the first quarter as certain clients in the Rockies region commence with their 2025 programs.
THREE MONTHS ENDED MARCH 31, 2025 COMPARED TO THREE MONTHS ENDED MARCH 31, 2024
REVENUE
Revenue from Calfrac’s North American operations decreased to $227.9 million during the first quarter of 2025 from $249.0 million in the comparable quarter of 2024. The Company’s North American activity was impacted by extreme cold weather and was significantly lower than the comparable quarter in 2024 despite the 21 percent increase in the number of jobs completed. The Company’s client mix was different than the comparable period in 2024 with the completion of a larger quantity of smaller jobs, which also impacted the fracturing revenue per job. The Company reduced its operating footprint to 11 active fracturing fleets to begin the first quarter to address the seasonal challenges experienced in the Rockies region. The Company recommenced operations in the Appalachian basin in January with an additional fracturing crew, which helped offset the lower revenue experienced in the Rockies. Pricing in North America was lower relative to the comparable quarter in 2024, which contributed to the 8 percent reduction in revenue. Coiled tubing revenue was consistent with the first quarter in 2024 as slightly lower activity was offset by the completion of larger jobs.
ADJUSTED EBITDA
The Company’s operations in North America generated Adjusted EBITDA of $6.1 million or 3 percent of revenue during the first quarter of 2025 compared to $14.9 million or 6 percent of revenue in the same period in 2024. This decrease was primarily due to the decline in fracturing fleet utilization and lower pricing.
ARGENTINA
| Three Months Ended Mar. 31, | |||
| 2025 | 2024 | Change | |
| (C$000s, except operational and exchange rate information) | ($) | ($) | (%) |
| (unaudited) | |||
| Revenue | 142,155 | 81,137 | 75 |
| Adjusted EBITDA(1) | 53,265 | 16,100 | 231 |
| Adjusted EBITDA (%)(1) | 37.5 | 19.8 | 89 |
| Fracturing revenue per job ($) | 124,874 | 74,354 | 68 |
| Number of fracturing jobs | 741 | 672 | 10 |
| Active pumping horsepower, end of period (000s) | 153 | 139 | 10 |
| US$/C$ average exchange rate(2) | 1.4352 | 1.3486 | 6 |
(1) Refer to “Non-GAAP Measures” on page 6 for further information.
(2) Source: Bank of Canada.
OUTLOOK
Argentina continued to demonstrate year-over-year operational and financial improvement by achieving record quarterly financial performance during the first quarter of 2025. Calfrac expects its full-year financial results in Argentina will be very strong, building on the significant momentum generated during the first quarter. The Company benefited from spot work for its second large fracturing fleet in the Vaca Muerta shale play during the first quarter at operating margins that are not expected to be maintained during the remainder of the year. The Company’s 2025 capital program also contemplates the addition of in-house wireline capabilities in Argentina during the fourth quarter which will further bolster its service offering in Neuquén. Recent Argentina government announcements related to the cash repatriation regime in that country reaffirm the Company’s expectations of a greater ability to repatriate excess cash flow following the completion of its significant 2025 capital program.
THREE MONTHS ENDED MARCH 31, 2025 COMPARED TO THREE MONTHS ENDED MARCH 31, 2024
REVENUE
Calfrac’s Argentinean operations generated revenue of $142.2 million during the first quarter of 2025 versus $81.1 million in the comparable quarter in 2024. The 75 percent increase in revenue was driven by improved pricing for spot work and an increase in the number of fracturing jobs completed during the quarter. The Company operated two unconventional fracturing fleets in the Vaca Muerta shale play for a portion of the first quarter. The Company also demonstrated growth in activity across its other service lines as the Company permanently transferred equipment from Las Heras to Neuquén following the completion of a long-term contract. The Company’s offshore coiled tubing unit also contributed to the increase in revenue versus the comparable quarter in 2024.
ADJUSTED EBITDA
The Company’s operations in Argentina generated Adjusted EBITDA of $53.3 million during the first quarter of 2025 compared to $16.1 million in the same quarter of 2024, while the Company’s Adjusted EBITDA margins increased to 37 percent from 20 percent. This increase was primarily due to the significant revenue growth and efficiencies resulting from operating two unconventional fracturing fleets simultaneously during parts of the quarter and higher pricing for spot work. In addition, the Company received an early termination fee related to the closure of its operations in Las Heras following the completion of a long-term contract with a major client in that region. This revenue offset costs that were incurred in 2024 to permanently close this district.
SUMMARY OF QUARTERLY RESULTS – CONTINUING OPERATIONS
| Three Months Ended | Jun. 30, | Sep. 30, | Dec. 31, | Mar. 31, | Jun. 30, | Sep. 30, | Dec. 31, | Mar. 31, | |||
| 2023 | 2023 | 2023 | 2024 | 2024 | 2024 | 2024 | 2025 | ||||
| (C$000s, except per share and operating data) | ($) | ($) | ($) | ($) | ($) | ($) | ($) | ($) | |||
| (unaudited) | |||||||||||
| Financial | |||||||||||
| Revenue | 466,463 | 483,093 | 421,402 | 330,096 | 426,047 | 430,109 | 381,230 | 370,057 | |||
| Adjusted EBITDA(1) | 87,785 | 91,286 | 62,591 | 26,057 | 65,386 | 65,039 | 34,512 | 55,317 | |||
| Net income (loss) | 50,531 | 97,523 | 13,202 | (2,903 | ) | 24,549 | (6,687 | ) | (6,424 | ) | 7,796 |
| Per share – basic | 0.62 | 1.20 | 0.16 | (0.03 | ) | 0.29 | (0.08 | ) | (0.07 | ) | 0.09 |
| Per share – diluted | 0.58 | 1.09 | 0.15 | (0.03 | ) | 0.29 | (0.08 | ) | (0.07 | ) | 0.09 |
| Capital expenditures | 30,718 | 50,825 | 49,397 | 48,072 | 66,753 | 22,509 | 32,955 | 42,132 | |||
(1) Refer to “Non-GAAP Measures” on page 6 for further information.
CAPITAL EXPENDITURES – CONTINUING OPERATIONS
| Three Months Ended Mar. 31, | ||||
| 2025 | 2024 | Change | ||
| (C$000s) | ($) | ($) | (%) | |
| North America | 12,941 | 37,174 | (65 | ) |
| Argentina | 29,191 | 10,898 | 168 | |
| Continuing Operations | 42,132 | 48,072 | (12 | ) |
Capital expenditures were $42.1 million for the three months ended March 31, 2025, which included approximately $22.3 million of expansion capital in Argentina and $9.3 million related to the Company’s fracturing fleet modernization program in North America, including auxiliary support equipment versus $48.1 million in the comparable period in 2024.
Calfrac’s Board of Directors approved a 2025 capital budget totalling approximately $135.0 million. The program includes approximately $50.0 million to facilitate the expansion of the Company’s fracturing operations in the Vaca Muerta shale play in Argentina that will be funded locally from cash flow. The 2025 Argentina capital program includes additional fracturing pumping units, an expansion of the Company’s deep coiled tubing capabilities and the introduction of in-house wireline services. The balance of the 2025 program will fund maintenance capital for all operating divisions as well as additional investments in the North American Tier IV fleet modernization program and coiled tubing fleet. Due to a delay in spending related to the Company’s 2024 capital program, approximately $30.0 million of 2024 capital commitments will be funded in 2025, mainly related to the expansion in Argentina, of which approximately $20.0 million occurred during the first quarter.
NON-GAAP MEASURES
Certain supplementary measures presented in this press release, including Adjusted EBITDA, Adjusted EBITDA percentage and Net Debt do not have any standardized meaning under IFRS and, because IFRS have been incorporated as Canadian generally accepted accounting principles (GAAP), these supplementary measures are also non-GAAP measures. These measures have been described and presented to provide shareholders and potential investors with additional information regarding the Company’s financial results, liquidity and ability to generate funds to finance its operations. These measures may not be comparable to similar measures presented by other entities, and are explained below.
Adjusted EBITDA is defined as net income or loss for the period less interest, taxes, depreciation and amortization, foreign exchange losses (gains), non-cash stock-based compensation, and gains and losses that are extraordinary or non-recurring. Adjusted EBITDA is presented because it gives an indication of the results from the Company’s principal business activities prior to consideration of how its activities are financed and the impact of foreign exchange, taxation and depreciation and amortization charges. Adjusted EBITDA is used by management to evaluate the performance of the Company and is also used as a basis for monitoring the Company’s compliance with covenants under the revolving credit facility. Adjusted EBITDA for the period was calculated as follows:
| Three Months Ended March 31, | ||||
| 2025 | 2024 | |||
| (C$000s) | ($) | ($) | ||
| Net income (loss) from continuing operations | 7,796 | (2,903 | ) | |
| Add back (deduct): | ||||
| Depreciation | 31,922 | 27,995 | ||
| Foreign exchange losses (gains) | 1,693 | (1,049 | ) | |
| Loss (gain) on disposal of property, plant and equipment | 124 | (6,241 | ) | |
| Restructuring charges | 516 | — | ||
| Stock-based compensation | (925 | ) | 2,185 | |
| Interest, net | 7,944 | 6,032 | ||
| Income taxes | 6,247 | 38 | ||
| Adjusted EBITDA from continuing operations | 55,317 | 26,057 | ||
| Less: IFRS 16 lease payments | (3,679 | ) | (3,235 | ) |
| Less: Argentina EBITDA threshold adjustment(1) | (45,397 | ) | (5,428 | ) |
| Bank EBITDA for covenant purposes | 6,241 | 17,394 | ||
(1) Refer to note 4 of the Company’s interim consolidated financial statements for the three months ended March 31, 2025.
Adjusted EBITDA percentage is a non-GAAP financial ratio that is determined by dividing Adjusted EBITDA by revenue for the corresponding period.
Net Debt is defined as long-term debt less unamortized debt issuance costs plus lease obligations, less cash and cash equivalents from continuing operations. The calculation of net debt is disclosed in note 10 to the Company’s interim consolidated financial statements for the corresponding period.
OTHER NON-STANDARD FINANCIAL TERMS
MAINTENANCE AND EXPANSION CAPITAL
Maintenance capital refers to expenditures in respect of capital additions, replacements or improvements required to maintain ongoing business operations. Expansion capital refers to expenditures primarily for new items, upgrades and/or equipment that will expand the Company’s revenue and/or reduce its expenditures through operating efficiencies. The determination of what constitutes maintenance capital expenditures versus expansion capital involves judgement by management.
BUSINESS RISKS
The business of Calfrac is subject to certain risks and uncertainties. Prior to making any investment decision regarding Calfrac, investors should carefully consider, among other things, the risk factors set forth in the Company’s most recently filed Annual Information Form under the heading “Risk Factors” which is available on the SEDAR+ website at www.sedarplus.ca under the Company’s profile. Copies of the Annual Information Form may also be obtained on request without charge from Calfrac at Suite 500, 407 – 8th Avenue S.W., Calgary, Alberta, Canada, T2P 1E5, or at www.calfrac.com.
ADDITIONAL INFORMATION
Calfrac’s common shares are publicly traded on the Toronto Stock Exchange under the trading symbol “CFW”.
Calfrac provides specialized oilfield services to exploration and production companies designed to increase the production of hydrocarbons from wells with continuing operations focused throughout western Canada, the United States and Argentina. During the first quarter of 2022, management committed to a plan to sell the Company’s Russian division, resulting in the associated assets and liabilities being classified as held for sale and presented in the Company’s financial statements as discontinued operations. The results of the Company’s discontinued operations are excluded from the discussion and figures presented above unless otherwise noted. See Note 4 to the Company’s annual consolidated financial statements for the year ended December 31, 2024 for additional information on the Company’s discontinued operations.
Further information regarding Calfrac Well Services Ltd., including the most recently filed Annual Information Form, can be accessed on the Company’s website at www.calfrac.com or under the Company’s public filings found at www.sedarplus.ca.
FIRST QUARTER CONFERENCE CALL AND AGM UPDATE
Calfrac will no longer be conducting the previously announced conference call to review its 2025 first-quarter results on Thursday, May 15, 2025. Any interested parties can reach out to Mike Olinek, Chief Financial Officer at the contact information below should they wish to ask any questions regarding the Company’s quarterly financial results.
The Company will be holding its Annual General Meeting at 1:30 pm on Thursday May 15, 2025 in the Viking Room of the Calgary Petroleum Club.
CONSOLIDATED BALANCE SHEETS
| March 31, | December 31, | |||
| 2025 | 2024 | |||
| (C$000s) | ($) | ($) | ||
| ASSETS | ||||
| Current assets | ||||
| Cash and cash equivalents | 15,463 | 44,045 | ||
| Accounts receivable | 306,957 | 251,108 | ||
| Inventories | 130,596 | 145,506 | ||
| Prepaid expenses and deposits | 21,797 | 26,452 | ||
| 474,813 | 467,111 | |||
| Assets classified as held for sale | 47,053 | 45,335 | ||
| 521,866 | 512,446 | |||
| Non-current assets | ||||
| Property, plant and equipment | 684,123 | 673,381 | ||
| Right-of-use assets | 19,990 | 20,013 | ||
| Deferred income tax assets | 29,000 | 29,000 | ||
| 733,113 | 722,394 | |||
| Total assets | 1,254,979 | 1,234,840 | ||
| LIABILITIES AND EQUITY | ||||
| Current liabilities | ||||
| Accounts payable and accrued liabilities | 160,129 | 173,974 | ||
| Income taxes payable | 23,301 | 9,700 | ||
| Current portion of long-term debt | 341,095 | 150,000 | ||
| Current portion of lease obligations | 9,833 | 9,536 | ||
| 534,358 | 343,210 | |||
| Liabilities directly associated with assets classified as held for sale | 32,677 | 30,945 | ||
| 567,035 | 374,155 | |||
| Non-current liabilities | ||||
| Long-term debt | — | 170,908 | ||
| Lease obligations | 13,209 | 13,948 | ||
| Deferred income tax liabilities | 14,473 | 22,499 | ||
| 27,682 | 207,355 | |||
| Total liabilities | 594,717 | 581,510 | ||
| Capital stock | 911,900 | 911,785 | ||
| Contributed surplus | 76,190 | 77,159 | ||
| Accumulated deficit | (373,875 | ) | (379,490 | ) |
| Accumulated other comprehensive income | 46,047 | 43,876 | ||
| Total equity | 660,262 | 653,330 | ||
| Total liabilities and equity | 1,254,979 | 1,234,840 | ||
CONSOLIDATED STATEMENTS OF OPERATIONS
| Three Months Ended March 31, | ||||
| 2025 | 2024 | |||
| (C$000s, except per share data) | ($) | ($) | ||
| Revenue | 370,057 | 330,096 | ||
| Cost of sales | 330,576 | 316,208 | ||
| Gross profit | 39,481 | 13,888 | ||
| Expenses | ||||
| Selling, general and administrative | 15,677 | 18,011 | ||
| Foreign exchange losses (gains) | 1,693 | (1,049 | ) | |
| Loss (gain) on disposal of property, plant and equipment | 124 | (6,241 | ) | |
| Interest, net | 7,944 | 6,032 | ||
| 25,438 | 16,753 | |||
| Income (loss) before income tax | 14,043 | (2,865 | ) | |
| Income tax expense (recovery) | ||||
| Current | 14,240 | 6,414 | ||
| Deferred | (7,993 | ) | (6,376 | ) |
| 6,247 | 38 | |||
| Net income (loss) from continuing operations | 7,796 | (2,903 | ) | |
| Net (loss) income from discontinued operations | (2,181 | ) | 750 | |
| Net income (loss) | 5,615 | (2,153 | ) | |
| Earnings (loss) per share – basic | ||||
| Continuing operations | 0.09 | (0.03 | ) | |
| Discontinued operations | (0.03 | ) | 0.01 | |
| 0.07 | (0.02 | ) | ||
| Earnings (loss) per share – diluted | ||||
| Continuing operations | 0.09 | (0.03 | ) | |
| Discontinued operations | (0.03 | ) | 0.01 | |
| 0.07 | (0.02 | ) | ||
CONSOLIDATED STATEMENTS OF CASH FLOWS
| Three Months Ended March 31, | ||||
| 2025 | 2024 | |||
| (C$000s) | ($) | ($) | ||
| CASH FLOWS PROVIDED BY (USED IN) | Restated | |||
| OPERATING ACTIVITIES | ||||
| Net income (loss) | 7,796 | (2,903 | ) | |
| Adjusted for the following: | ||||
| Depreciation | 31,922 | 27,995 | ||
| Stock-based compensation | (925 | ) | 2,185 | |
| Unrealized foreign exchange losses | 1,846 | 2,627 | ||
| Loss (gain) on disposal of property, plant and equipment | 124 | (6,241 | ) | |
| Interest | 7,944 | 6,032 | ||
| Interest paid | (12,716 | ) | (9,717 | ) |
| Deferred income taxes | (7,993 | ) | (6,376 | ) |
| Changes in items of working capital | (35,048 | ) | (1,644 | ) |
| Cash flows (used in) provided by operating activities from continuing operations | (7,050 | ) | 11,958 | |
| Cash flows provided by (used in) operating activities from discontinued operations | 10,231 | (8,185 | ) | |
| Net cash flows provided by operating activities | 3,181 | 3,773 | ||
| INVESTING ACTIVITIES | ||||
| Purchase of property, plant and equipment | (38,498 | ) | (55,727 | ) |
| Proceeds on disposal of property, plant and equipment | 1,553 | 11,508 | ||
| Proceeds on disposal of right-of-use assets | 206 | 227 | ||
| Cash flows used in investing activities from continuing operations | (36,739 | ) | (43,992 | ) |
| Cash flows used in investing activities from discontinued operations | (1,457 | ) | (678 | ) |
| Net cash flows used in investing activities | (38,196 | ) | (44,670 | ) |
| FINANCING ACTIVITIES | ||||
| Issuance of long-term debt, net of debt issuance costs | 30,000 | 60,000 | ||
| Long-term debt repayments | (10,000 | ) | — | |
| Lease obligation principal repayments | (3,244 | ) | (2,840 | ) |
| Proceeds on issuance of common shares from the exercise of stock options | 71 | — | ||
| Cash flows provided by financing activities from continuing operations | 16,827 | 57,160 | ||
| Cash flows provided by financing activities from discontinued operations | — | — | ||
| Net cash flows provided by financing activities | 16,827 | 57,160 | ||
| Effect of exchange rate changes on cash and cash equivalents | 550 | (1,464 | ) | |
| (Decrease) increase in cash and cash equivalents | (17,638 | ) | 14,799 | |
| Cash and cash equivalents, beginning of period | 50,776 | 45,190 | ||
| Cash and cash equivalents, end of period | 33,138 | 59,989 | ||
| Included in the cash and cash equivalents per the balance sheet | 15,463 | 58,239 | ||
| Included in the assets held for sale/discontinued operations | 17,675 | 1,750 | ||
ADVISORIES
FORWARD-LOOKING STATEMENTS
In order to provide Calfrac shareholders and potential investors with information regarding the Company and its subsidiaries, including management’s assessment of Calfrac’s plans and future operations, certain statements contained in this press release, including statements that contain words such as “seek”, “anticipate”, “plan”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “predict”, “potential”, “targeting”, “intend”, “could”, “might”, “should”, “believe”, “forecast” or similar words suggesting future outcomes, are forward-looking statements or forward-looking information within the meaning of applicable securities laws (collectively, “forward-looking statements”).
In particular, forward-looking statements in this press release include, but are not limited to, statements with respect to the expectations regarding trends in, and prospects of, the global oil and gas industry; activity, demand, utilization and outlook for the Company’s continuing operations, including the potential impacts of, and mitigation strategies for, the trade tariffs implemented by the U.S. and Canada on the Company’s North American segment and the strong activity and profitability outlook for the Argentina segment; the supply and demand fundamentals of the pressure pumping industry; input costs, margin and service pricing trends and strategies; operating and financing strategies, performance, priorities, metrics and estimates, including the Company’s ability to repatriate cash from Argentina and the timing thereof; the Company’s Russian segment, including the planned sale of the Russian division; the Company’s service quality and competitive position; capital investment plans, including the progress of the Company’s fleet modernization plan in North America and planned wireline investments to bolster the Company’s service offering in Argentina; and the Company’s expectations and intentions with respect to the foregoing.
These statements are derived from certain assumptions and analyses made by the Company based on its experience and perception of historical trends, current conditions, expected future developments and other factors that it believes are appropriate in the circumstances, including, but not limited to, the economic and political environment in which the Company operates, including the continued implementation of Argentina economic reforms and liberalization of its oil and gas industry as well as the current state of the trade war between Canada and the U.S. and its expected impact on the pressure pumping market in North America; the Company’s expectations for its customers’ capital budgets, demand for services and geographical areas of focus; the level of merger and acquisition activity among oil and gas producers and its impact on the demand for well completion services; the anticipated effects of artificial intelligence power requirements and the commissioning of liquified natural gas terminals on supply and demand fundamentals for oil and natural gas; the ability of newly deployed Tier IV DGB pumping units to achieve manufacturer claims with respect to operational performance, diesel displacement and costs savings in the field; the effect of environmental, social and governance factors on customer and investor preferences and capital deployment; the status of the military conflict in the Ukraine and related Canadian, United States and international sanctions and restrictions involving Russia and counter-sanctions, restrictions, and political measures that may be undertaken in respect of the Company’s ownership and planned sale of the Russian division; industry equipment levels including the number of active fracturing fleets marketed by the Company’s competitors and the timing of deployment of the Company’s fleet upgrades; the continued effectiveness of cost reduction measures instituted by the Company; the Company’s existing contracts and the status of current negotiations with key customers and suppliers; and the likelihood that the current tax and regulatory regime will remain substantially unchanged.
Forward-looking statements are subject to a number of known and unknown risks and uncertainties that could cause actual results to differ materially from the Company’s expectations. Such risk factors include but are not limited to: (A) industry risks, including but not limited to, global economic conditions and the level of exploration, development and production for oil and natural gas in North America and Argentina; a shift in strategy by exploration and production companies prioritizing shareholders returns over production growth; excess equipment levels; impacts of conservation measures and technological advances on the demand for the Company’s services; an intensely competitive oilfield services industry; and hazards inherent in the industry; (B) geopolitical risks, including but not limited to, the impacts of the trade war between Canada and United States; foreign operations exposure, including risks relating to repatriation of cash from foreign jurisdictions, unsettled political conditions, war, foreign exchange rates and controls; and risks that the sale of the discontinued operations in Russia may not occur or may be delayed; (C) financial risks, including but not limited to, restrictions on the Company’s access to capital, including the impacts of covenants under the Company’s lending documents; direct and indirect exposure to volatile credit markets, including interest rate risk; fluctuations in currency exchange rates; price escalation and availability of raw materials, diesel fuel and component parts; actual results which are materially different from management estimates and assumptions; the Company’s access to capital and common share price given a significant number of common shares are controlled by two directors of the Company; possible dilution from outstanding stock-based compensation, additional equity or debt securities; and changes in tax rates or reassessment risk by tax authorities; (D) business operations risks, including but not limited to, fleet reinvestment risk, including the ability of the Company to finance the capital necessary for equipment upgrades to support its operational needs while meeting government and customer requirements and preferences; risks of delays and quality of equipment due to Company’s reliance on equipment manufacturers, suppliers and fabricators; seasonal volatility; constrained demand for the Company’s services due to merger and acquisition activity; a concentrated customer base; cybersecurity risks; difficulty retaining, replacing or adding personnel; failure to continuously improve equipment, proprietary fluid chemistries and other products and services; climate change; failure to maintain safety standards and records; improper access to confidential information; failure to effectively and timely address the energy transition; risks of various types of activism; and failure to realize anticipated benefits of acquisitions and dispositions; (E) legal and regulatory risks, including but not limited to, federal, provincial and state legislative and regulatory initiatives and laws; health, safety and environmental laws and regulations; the direct and indirect costs of various existing and proposed climate change regulations; and legal and administrative proceedings. Further information about these and other risks and uncertainties may be found under the heading “Business Risks” above.
Consequently, all of the forward-looking statements made in this press release are qualified by these cautionary statements and there can be no assurance that actual results or developments anticipated by the Company will be realized, or that they will have the expected consequences or effects on the Company or its business or operations. These statements speak only as of the respective date of this press release or the documents incorporated by reference herein. The Company assumes no obligation to update publicly any such forward-looking statements, whether as a result of new information, future events or otherwise, except as required pursuant to applicable securities laws.
For further information, please contact:
Mike Olinek, Chief Financial Officer
Telephone: 403-266-6000
www.calfrac.com
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