CALGARY, April 3, 2017 /CNW/ - Calfrac Well
Services Ltd. ("Calfrac" or the "Company") (TSX–CFW) has
provided notice to its banking syndicate that it has elected to use
the first of its two fully-funded $25
million equity cures, effective as of the quarter ending
June 30, 2017. Calfrac has
elected to trigger the first of its cures even though it is fully
compliant with the financial covenants included in its credit
agreement.
As previously disclosed, Calfrac's two equity cures may not be
used in consecutive calendar quarters nor triggered after
December 31, 2017. The cures may be
used even if Calfrac is in compliance with its funded debt to
EBITDA covenant. Given the restrictions mentioned above,
there is greater benefit to Calfrac to begin releasing the cure
funds from segregation and using them in its operations, which are
experiencing resumed growth.
Calfrac's President and Chief Executive Officer Fernando Aguilar commented: "Industry demand has
been steadily improving since late last year, which has allowed
Calfrac to increase the pricing for our services. At the same
time, this demand has given rise to a number of opportunities for
the Company to reactivate equipment and return to work across its
North American platform. Releasing a portion of the funds
that have been segregated as an equity cure allows us to focus on a
safe, organized and disciplined acceleration in activity, including
ongoing efforts to add operational staff to our Calfrac
family."
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 drilled throughout western Canada, the United
States, Russia,
Argentina and Mexico.
This press release contains forward-looking statements and
forward-looking information within the meaning of applicable
securities laws. The use of any of the words "expect",
"anticipate", "continue", "estimate", "may", "will", "project",
"should", "believe", "plans", "intends" and similar expressions are
intended to identify forward-looking information or statements.
More particularly and without limitation, this press release
contains forward-looking statements and information relating to the
anticipated utilization of both of the Company's equity cures, the
reactivation of equipment, activity levels and the addition of
operational staff.
These forward-looking statements and information are based on
certain key expectations and assumptions made by Calfrac in light
of its experience and perception of historical trends, current
conditions and expected future developments as well as other
factors it believes are appropriate in the circumstances,
including, but not limited to, the following: the economic and
political environment in which Calfrac operates; Calfrac's
expectations for its customers' capital budgets and geographical
areas of focus; the effect unconventional oil and gas projects have
had on supply and demand fundamentals for oil and natural gas;
Calfrac's existing contracts and the status of current negotiations
with key customers and suppliers; the effectiveness of cost
reduction measures instituted by Calfrac; and the likelihood that
the current tax and regulatory regime will remain substantially
unchanged.
Although Calfrac believes that the expectations and assumptions
on which such forward looking statements and information are based
are reasonable, undue reliance should not be placed on the
forward-looking statements and information as Calfrac cannot give
any assurance that they will prove to be correct. Since
forward-looking statements and information address future events
and conditions, by their very nature they involve inherent risks
and uncertainties. Actual results could differ materially from
those currently anticipated due to a number of factors and risks.
These include, but are not limited to, risks associated with:
global economic conditions; the level of exploration, development
and production for oil and natural gas in Canada, the United
States, Russia,
Argentina and Mexico; the demand for fracturing and other
stimulation services during drilling and completion of oil and
natural gas wells; volatility in market prices for oil and natural
gas and the effect of this volatility on the demand for oilfield
services generally; excess oilfield equipment levels; regional
competition; the availability of capital on satisfactory terms;
restrictions resulting from compliance with debt covenants and risk
of acceleration of indebtedness; direct and indirect exposure to
volatile credit markets, including credit rating risk; sourcing,
pricing and availability of raw materials, component parts,
equipment, suppliers, facilities and skilled personnel; currency
exchange rate risk; risks associated with foreign operations;
operating restrictions and compliance costs associated with
legislative and regulatory initiatives relating to hydraulic
fracturing and the protection of workers and the environment;
changes in legislation and the regulatory environment; dependence
on, and concentration of, major customers; liabilities and risks,
including environmental liabilities and risks, inherent in oil and
natural gas operations; uncertainties in weather and temperature
affecting the duration of the service periods and the activities
that can be completed; liabilities and risks associated with prior
operations; liabilities relating to legal and/or administrative
proceedings; failure to maintain Calfrac's safety standards and
record; failure to realize anticipated benefits of acquisitions and
dispositions; the ability to integrate technological advances and
match advances from competitors; intellectual property risks; third
party credit risk; and the effect of accounting pronouncements
issued periodically.
Readers are cautioned that the foregoing list of risks and
uncertainties is not exhaustive. Additional information on these
and other risk factors that could affect Calfrac's operations or
financial results are included in Calfrac's annual information form
and may be accessed through the SEDAR website (www.sedar.com). The
forward-looking statements and information contained in this press
release are made as of the date hereof and Calfrac does not
undertake any obligation to update publicly or revise any
forward-looking statements or information, whether as a result of
new information, future events or otherwise, unless so required by
applicable securities laws.
SOURCE Calfrac Well Services Ltd.