CALGARY, Jan. 14, 2020 /CNW/ - Calfrac Well Services
Ltd. ("Calfrac" or the "Company") (TSX-CFW) is announcing
its 2020 capital program of approximately $100.5 million, which consists primarily of
maintenance capital expenditures.
Lindsay Link, Calfrac's President
and Chief Operating Officer, commented, "We have proactively
decided to market fewer fleets in 2020, which will mean a modest
reduction in our planned operations overall. Calfrac's budget
represents a prudent response to market conditions, and will allow
the Company to continue to deliver safe and efficient service to
our clients, while maintaining our focus on free cash flow for the
year. We have stated a number of times that returns in the pressure
pumping business are below the level needed to sustain the industry
in the longer-run, and are well below a level that would
incentivize the purchase of new equipment. Our team continues to do
an outstanding job of operating and maintaining our fleet and this
budget provides the resources for that result to continue."
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, Argentina and
Russia.
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
future capital expenditures.
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, Argentina and
Russia; 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. 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.