Calfrac Well Services Ltd. (“Calfrac” or
“the Company”) (TSX: CFW) announces its financial and
operating results for the three and six months ended June 30,
2024. 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
June 30, 2024. 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,
2023.
CEO’S MESSAGE
Calfrac generated sequential improvement in
revenue and Adjusted EBITDA during the second quarter as
utilization in North America increased despite lower year-over-year
commodity prices. The Company’s operations in Argentina have
produced strong financial results over the last six quarters, and
there are significant opportunities to grow operating scale in the
Vaca Muerta shale play. As a result, the Company is strategically
investing additional capital to bolster its fracturing capabilities
in Argentina. Calfrac continues to improve upon its exceptional
safety record as it reduced the trailing twelve-month Total
Recordable Injury Frequency (“TRIF”) from 0.87 at the end of the
first quarter to 0.77 as of June 30. The Company believes that
through efficient execution and prudent deployment of capital
across its diverse geographic footprint, it will be well-positioned
to successfully navigate the current short-term headwinds in North
America.
Calfrac’s Chief Executive Officer, Pat Powell
commented: “I am proud of the resiliency that the Calfrac team
demonstrated with the strong improvement in financial results
during the second quarter. I am looking forward to leveraging that
momentum through the remainder of the year as we continue to safely
and efficiently execute on our client’s development plans in North
America and Argentina to maximize returns for our
shareholders.”
SELECT FINANCIAL HIGHLIGHTS – CONTINUING
OPERATIONS
| |
Three Months Ended Jun. 30, |
Six Months Ended Jun. 30, |
|
|
2024 |
2023 |
Change |
2024 |
2023 |
Change |
|
(C$000s, except per share amounts) |
($) |
($) |
(%) |
|
|
|
| (unaudited) |
|
|
|
|
|
|
| Revenue |
426,047 |
466,463 |
(9 |
) |
756,143 |
959,786 |
(21 |
) |
| Adjusted EBITDA(1) |
65,386 |
87,785 |
(26 |
) |
91,443 |
171,579 |
(47 |
) |
| Consolidated cash flows
provided by operating activities |
15,030 |
18,192 |
(17 |
) |
18,803 |
59,086 |
(68 |
) |
| Capital expenditures |
66,753 |
30,718 |
117 |
|
114,825 |
65,192 |
76 |
|
| Net income |
24,549 |
50,531 |
(51 |
) |
21,646 |
86,844 |
(75 |
) |
|
Per share – basic |
0.29 |
0.62 |
(53 |
) |
0.25 |
1.07 |
(77 |
) |
|
Per share – diluted |
0.29 |
0.58 |
(50 |
) |
0.25 |
0.98 |
(74 |
) |
|
As at |
Jun. 30, |
Dec. 31, |
Change |
|
|
2024 |
2023 |
|
|
(C$000s) |
($) |
($) |
(%) |
| (unaudited) |
|
|
|
| Cash and cash equivalents |
43,655 |
34,140 |
28 |
| Working capital, end of
period |
303,889 |
236,392 |
29 |
| Total assets, end of
period |
1,301,286 |
1,126,197 |
16 |
| Long-term debt, end of
period |
361,893 |
250,777 |
44 |
| Net debt(2) |
340,357 |
241,065 |
41 |
| Total
consolidated equity, end of period |
653,498 |
615,903 |
6 |
(1) Refer to “Non-GAAP Measures” on page 7 for
further information.(2) Refer to note 10 of the consolidated
interim financial statements for further information.
SECOND QUARTER OVERVIEW
In the second quarter of 2024, the Company:
- generated
revenue of $426.0 million, a decrease of 9 percent from the second
quarter in 2023 resulting primarily from lower activity and a lower
pricing environment in certain markets within the United
States;
- reported
second-quarter Adjusted EBITDA of $65.4 million versus $87.8
million in the second quarter of 2023 mainly as a result of lower
utilization and pricing in the United States;
- reported net
income from continuing operations of $24.5 million or $0.29 per
share diluted compared to net income of $50.5 million or $0.58 per
share diluted during the second quarter in 2023;
- increased
period-end working capital to $303.9 million from $236.4 million at
December 31, 2023, due to a combination of higher revenue earned at
period end and geographical mix; and
- incurred
capital expenditures from continuing operations of $66.8 million,
which included approximately $36.7 million related to the Company’s
fracturing fleet modernization program.
FINANCIAL OVERVIEW – CONTINUING
OPERATIONSTHREE AND SIX MONTHS ENDED JUNE 30,
2024 VERSUS 2023
NORTH AMERICA
| |
Three Months Ended Jun. 30, |
Six Months Ended Jun. 30, |
|
|
2024 |
2023 |
Change |
2024 |
2023 |
Change |
|
(C$000s, except operational and exchange rate information) |
($) |
($) |
(%) |
|
|
|
| (unaudited) |
|
|
|
|
|
|
|
Revenue |
333,521 |
376,322 |
(11 |
) |
582,480 |
789,369 |
(26 |
) |
| Adjusted EBITDA(1) |
54,399 |
75,283 |
(28 |
) |
69,271 |
151,770 |
(54 |
) |
| Adjusted EBITDA (%) |
16.3 |
20.0 |
(19 |
) |
11.9 |
19.2 |
(38 |
) |
| Fracturing revenue per job
($) |
37,348 |
43,585 |
(14 |
) |
35,618 |
43,403 |
(18 |
) |
| Number of fracturing jobs |
8,709 |
8,379 |
4 |
|
15,885 |
17,602 |
(10 |
) |
| Active pumping horsepower, end
of year (000s) |
964 |
1,020 |
(5 |
) |
964 |
1,020 |
(5 |
) |
| US$/C$
average exchange rate(2) |
1.3683 |
1.3428 |
2 |
|
1.3586 |
1.3477 |
1 |
|
(1) Refer to “Non-GAAP Measures” on page 7 for
further information.(2) Source: Bank of Canada.
OUTLOOK
Calfrac’s meaningful sequential increase in
financial performance during the second quarter was primarily due
to core clients in Canada accelerating the timing of their 2024
completion programs, combined with the Company’s operations in the
United States building momentum throughout the quarter. Despite
lower natural gas prices decreasing the year-over-year rig count in
the United States, the Company anticipates utilization in North
America for the second half of the year to resemble the first six
months, outside of normal winter seasonality and customer budget
exhaustion. Although lower demand for pressure pumping fleets has
impacted utilization and pricing, the Company continues to
prioritize return on capital to maximize shareholder returns.
Calfrac continues to improve its asset quality
through its Tier IV Dynamic Gas Blending (“DGB”) equipment
modernization program as well as boosting its last-mile proppant
delivery capabilities through investments in high capacity Super B
sand transport units. As of the end of June, the Company operated
49 Tier IV DGB pumping units in North America and expects to deploy
the equivalent of five Tier IV DGB fleets by early 2025. Calfrac’s
30 new Super B sand trailers enable it to haul significantly more
proppant in each load to location, thereby increasing operating
efficiencies and profitability. Through the first half of 2024,
approximately 70% of the North American capital budget has been
expended and the Company anticipates lower capital expenditures for
this segment during the remainder of the year.
THREE MONTHS ENDED JUNE 30, 2024
COMPARED TO THREE MONTHS ENDED JUNE 30, 2023
REVENUE
Revenue from Calfrac’s North American operations
decreased to $333.5 million during the second quarter of 2024 from
$376.3 million in the comparable quarter of 2023. The Company
generated strong second-quarter revenue in North America despite
lower year-over-year activity in the Rockies region of the United
States as planned completion programs were deferred until later in
the year. Activity in Canada was stronger than expected,
particularly in May and June, due to the efficient completion of
core client programs. In addition, Calfrac idled two fracturing
fleets in the United States during February, and as a result, the
Company operated an average of 13 fleets in North America during
the second quarter of 2024 versus 15 fleets in the comparable
quarter of 2023. Lower pricing in the United States also
contributed to the 14 percent decrease in average revenue per job
in the second quarter of 2024 versus the same quarter in 2023.
Coiled tubing revenue decreased by 26 percent as compared to the
second quarter in 2023 mainly due to lower utilization of Calfrac’s
six deep coiled tubing units offset partially by the completion of
larger jobs.
ADJUSTED EBITDA
The Company’s operations in North America
generated Adjusted EBITDA of $54.4 million or 16 percent of revenue
during the second quarter of 2024 compared to $75.3 million or 20
percent of revenue in the same period in 2023. This decrease was
primarily due to the decline in fracturing fleet utilization in the
United States combined with lower pricing relative to the same
period in 2023.
SIX MONTHS ENDED JUNE 30, 2024 COMPARED TO SIX MONTHS
ENDED JUNE 30, 2023
REVENUE
Revenue from Calfrac’s North American operations
decreased to $582.5 million during the first six months in 2024
from $789.4 million in the comparable period in 2023. The 26
percent decrease in revenue was primarily due to lower activity in
the United States combined with lower pricing in certain markets.
As a result, Calfrac idled two fracturing fleets during February
2024 and operated an average of 10 and 13 fleets in North America,
respectively, during the first and second quarters of 2024 as
compared to 15 fleets during the first half of 2023. In addition,
activity for the Company’s coiled tubing operations in North
America decreased by 34 percent from the first six months of 2023
due to lower industry demand for its six crewed units.
ADJUSTED EBITDA
The Company’s operations in North America
generated Adjusted EBITDA of $69.3 million during the first half of
2024 compared to $151.8 million in the same period in 2023. This
decrease in Adjusted EBITDA was largely driven by lower fracturing
and coiled tubing utilization in North America during the first
quarter of 2024 as well as lower overall pricing levels in the
United States. However, utilization during the second quarter of
2024 improved for Calfrac’s fracturing fleets in North America,
particularly in May and June, as the completion programs of the
Company’s core clients significantly increased.
ARGENTINA
| |
Three Months Ended Jun. 30, |
Six Months Ended Jun. 30, |
|
|
2024 |
2023 |
Change |
2024 |
2023 |
Change |
|
(C$000s, except operational and exchange rate information) |
($) |
($) |
(%) |
($) |
($) |
(%) |
| (unaudited) |
|
|
|
|
|
|
|
Revenue |
92,526 |
90,141 |
3 |
|
173,663 |
170,417 |
2 |
|
| Adjusted EBITDA(1) |
14,659 |
17,752 |
(17 |
) |
30,759 |
29,292 |
5 |
|
| Adjusted EBITDA (%) |
15.8 |
19.7 |
(20 |
) |
17.7 |
17.2 |
3 |
|
| Fracturing revenue per job
($) |
84,510 |
83,155 |
2 |
|
79,064 |
85,472 |
(7 |
) |
| Number of fracturing jobs |
581 |
647 |
(10 |
) |
1,253 |
1,202 |
4 |
|
| Active pumping horsepower, end
of period (000s) |
139 |
139 |
— |
|
139 |
139 |
— |
|
|
US$/C$ average exchange rate(2) |
1.3683 |
1.3428 |
2 |
|
1.3586 |
1.3477 |
1 |
|
(1) Refer to “Non-GAAP Measures” on page 7 for
further information.(2) Source: Bank of Canada.
OUTLOOK
Calfrac’s Argentinean operations generated
Adjusted EBITDA of approximately $15 million in the second quarter
which produced a record profit margin of 18% over the first six
months of the year. The Company expects to leverage this momentum
throughout the remainder of 2024 as it anticipates strong
utilization across all service lines in the Vaca Muerta shale play
combined with increased offshore coiled tubing activity. Calfrac is
excited about its prospects and looks forward to collaborating with
its clients to enhance oil and natural gas development in
Argentina.
Due to the high customer demand for Calfrac’s
services combined with the improving political and business
environment, the Company made the strategic decision to expand its
pressure pumping footprint in the Vaca Muerta shale play. To
facilitate this expected growth, Calfrac has increased its capital
investment in the country by approximately $29 million to support
the deployment of additional Tier II dual-fuel capable fracturing
equipment into Argentina by the end of the year.
THREE MONTHS ENDED JUNE 30, 2024 COMPARED TO THREE
MONTHS ENDED JUNE 30, 2023
REVENUE
Calfrac’s Argentinean operations generated
revenue of $92.5 million during the second quarter of 2024 versus
$90.1 million in the comparable quarter in 2023 as the Company
maintained strong activity across all service lines. This increase
in revenue was primarily due to initial revenue generated from its
new offshore coiled tubing operations. Fracturing and cementing
revenue were relatively consistent with the comparable quarter in
2023.
ADJUSTED EBITDA
The Company’s operations in Argentina generated
Adjusted EBITDA of $14.7 million during the second quarter of 2024
compared to $17.8 million in the same quarter of 2023, while the
Company’s Adjusted EBITDA margins decreased to 16 percent from 20
percent. This decrease was primarily due to a reduction in activity
in the Las Heras region of Argentina relative to the comparable
period in 2023 as the Company’s major customer in that region began
the formal process of closing its operations in that area. The
Company was able to offset most of this reduction with additional
spot work with new customers in Neuquén during the quarter.
SIX MONTHS ENDED JUNE 30, 2024 COMPARED TO SIX MONTHS
ENDED JUNE 30, 2023
REVENUE
Calfrac’s Argentinean operations generated
revenue of $173.7 million during the first six months of 2024
compared to $170.4 million in the first six months of 2023 as the
Company maintained strong activity across all service lines. The
slight increase in revenue was due to the initial revenue generated
from its newly commenced offshore coiled tubing operations.
Fracturing and cementing revenue were relatively consistent with
the comparable quarter in 2023.
ADJUSTED EBITDA
The Company’s operations in Argentina generated
Adjusted EBITDA of $30.8 million or 18 percent of revenue during
the first six months in 2024 versus $29.3 million or 17 percent of
revenue in the comparable period in 2023. The Company continues to
focus on growing its operating presence in the Vaca Muerta shale
play to offset lower utilization in Las Heras following the
completion of its contract with a major client in that region
during the second quarter of 2024.
SUMMARY OF QUARTERLY RESULTS – CONTINUING
OPERATIONS
| Three Months Ended |
Sep. 30, |
Dec. 31, |
Mar. 31, |
Jun. 30, |
Sep. 30, |
Dec. 31, |
Mar. 31, |
Jun. 30, |
|
|
2022 |
2022 |
2023 |
2023 |
2023 |
2023 |
2024 |
2024 |
|
(C$000s, except per share and operating data) |
($) |
($) |
($) |
($) |
($) |
($) |
($) |
($) |
| (unaudited) |
Revised(1) |
|
|
|
|
|
|
|
|
Financial |
|
|
|
|
|
|
|
|
| Revenue |
438,338 |
447,847 |
493,323 |
466,463 |
483,093 |
421,402 |
330,096 |
|
426,047 |
| Adjusted EBITDA(1)(2)(3) |
94,289 |
75,954 |
83,794 |
87,785 |
91,286 |
62,591 |
26,057 |
|
65,386 |
| Net income (loss) |
45,352 |
14,757 |
36,313 |
50,531 |
97,523 |
13,202 |
(2,903 |
) |
24,549 |
|
Per share – basic |
1.15 |
0.27 |
0.45 |
0.62 |
1.20 |
0.16 |
(0.03 |
) |
0.29 |
|
Per share – diluted |
1.10 |
0.17 |
0.41 |
0.58 |
1.09 |
0.15 |
(0.03 |
) |
0.29 |
| Capital
expenditures(3) |
24,745 |
35,810 |
34,474 |
30,718 |
50,825 |
49,397 |
48,072 |
|
66,753 |
(1) Adjusted EBITDA reflects a change in
definition and excludes all foreign exchange gains and losses.(2)
Refer to “Non-GAAP Measures” on page 7 for further information.(3)
Effective January 1, 2023, recorded expenditures related to fluid
end components as an operating expense rather than as a capital
expenditure. This change in accounting estimate was recorded on a
prospective basis.
CAPITAL EXPENDITURES - CONTINUING
OPERATIONS
| |
Three Months Ended Jun. 30, |
Six Months Ended Jun. 30, |
|
|
2024 |
2023 |
Change |
2024 |
2023 |
Change |
|
(C$000s) |
($) |
($) |
(%) |
|
|
|
| North America |
58,340 |
26,830 |
117 |
95,514 |
60,578 |
58 |
| Argentina |
8,413 |
3,888 |
116 |
19,311 |
4,614 |
319 |
|
Continuing Operations |
66,753 |
30,718 |
117 |
114,825 |
65,192 |
76 |
Capital expenditures were $66.8 million for the
three months ended June 30, 2024 versus $30.7 million in the
comparable period in 2023. Calfrac’s Board of Directors approved a
2024 total capital budget of approximately $210.0 million in
December 2023. This was an increase of $45.0 million from the
previous year, primarily to continue its fracturing fleet
modernization program in North America and dedicate $40.0 million
to support its Argentinean operations while implementing new
company-wide field-based technologies. On March 13, 2024, the Board
of Directors approved a deferral of up to $50.0 million of capital
allocated to its North American fleet modernization program to
align with market conditions at that time. On July 31, 2024, the
Board of Directors approved a reinstatement of $40.0 million of its
original capital budget to facilitate expansion of the Company’s
fracturing operations in the Vaca Muerta play in Argentina
and to accommodate incremental maintenance capital in North
America.
NON-GAAP MEASURES
Certain supplementary measures presented in this
press release 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 for the period was calculated as
follows:
|
Three Months Ended Jun 30, |
Six Months Ended Jun. 30, |
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
|
(C$000s) |
|
|
($) |
|
($) |
|
| (unaudited) |
|
|
|
|
| Net income from continuing
operations |
24,549 |
|
50,531 |
|
21,646 |
|
86,844 |
|
|
Add back (deduct): |
|
|
|
|
|
Depreciation |
28,033 |
|
28,657 |
|
56,028 |
|
58,819 |
|
|
Foreign exchange losses (gains) |
(435 |
) |
4,983 |
|
(1,484 |
) |
6,469 |
|
|
Gain on disposal of property, plant and equipment |
(143 |
) |
(4,424 |
) |
(6,384 |
) |
(4,961 |
) |
|
Litigation settlements |
— |
|
— |
|
— |
|
(6,805 |
) |
|
Restructuring charges |
1,407 |
|
599 |
|
1,407 |
|
1,932 |
|
|
Stock-based compensation |
2,118 |
|
797 |
|
4,303 |
|
1,341 |
|
|
Interest |
7,894 |
|
7,587 |
|
13,926 |
|
15,761 |
|
|
Income taxes |
1,963 |
|
(945 |
) |
2,001 |
|
12,179 |
|
|
Adjusted EBITDA from continuing operations |
65,386 |
|
87,785 |
|
91,443 |
|
171,579 |
|
|
Less: IFRS 16 lease payments |
(3,216 |
) |
(3,503 |
) |
(6,451 |
) |
(6,388 |
) |
| Less:
Argentina EBITDA threshold adjustment(1) |
(3,148 |
) |
— |
|
(8,576 |
) |
— |
|
|
Bank EBITDA for covenant purposes |
59,022 |
|
84,282 |
|
76,416 |
|
165,191 |
|
(1) Refer to note 4 of the Company's
consolidated interim financial statements for the three and six
months ended June 30, 2024.
The definition and calculation of net debt is
disclosed in note 10 to the Company’s interim financial statements
for the corresponding period.
ADVISORIESFORWARD-LOOKING
STATEMENTS
Certain statements contained in this press
release constitute "forward-looking statements" or "forward-looking
information" within the meaning of applicable securities laws
(collectively, "forward-looking statements"). These statements
relate to future events or the future performance of the Company
(as hereinafter defined). All statements other than statements of
historical fact may be forward-looking statements. Forward-looking
statements are often, but not always, identified by the use of
words such as "seek", "anticipate", "plan", "continue", "estimate",
"forecast", "expect", "may", "will", "project", "predict",
"potential", "targeting", "intend", "could", "might", "should",
"believe" or similar expressions.
In particular, forward-looking statements in
this press release include, but are not limited to, statements with
respect to activity, demand, utilization and outlook for the
Company’s operating divisions in North America and Argentina; 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, such as the Company’s strategic priorities
to maximize free cash flow, repay debt and capital investment
plans, including the Company's fleet modernization program and
timing thereof; the Company’s debt, liquidity and financial
position; the Company’s service quality and the Company’s
intentions and expectations 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 current state of the pressure pumping
market; the Company’s expectations for its customers’ capital
budgets, demand for services and geographical areas of focus; the
effect of unconventional oil and gas projects have had on supply
and demand fundamentals for oil and natural gas; the effect of
environmental, social and governance factors on customer and
investor preferences and capital deployment; the effect of the
military conflict in the Ukraine and related international
sanctions and counter-sanctions and restrictions by Russia on 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 Company’s existing
contracts and the status of current negotiations with key customers
and suppliers; the continued effectiveness of cost reduction
measures instituted by the Company; 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; 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) 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; difficulty retaining,
replacing or adding personnel; failure to continuously improve
equipment, proprietary fluid chemistries and other products and
services; seasonal volatility and climate change; reliance on
equipment suppliers and fabricators; cybersecurity risks; a
concentrated customer base; obsolete technology; failure to
maintain safety standards and records; constrained demand for the
Company’s services due to merger and acquisition activity; improper
access to confidential information or misappropriation of Company’s
intellectual property rights; failure to realize anticipated
benefits of acquisitions and dispositions; loss of one or more key
employees; and growth related risk on internal systems or employee
base; (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 and
increased inflation; price escalation and availability of raw
materials, diesel fuel and component parts; actual results which
are materially different from management estimates and assumptions;
insufficient internal controls; 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 of
outstanding stock-based compensation, additional equity or debt
securities; and changes in tax rates or reassessment risk by tax
authorities; (D) geopolitical risks, including but not limited to,
foreign operations exposure, including risks relating to
repatriation of cash from foreign jurisdictions, unsettled
political conditions, war, foreign exchange rates and controls; the
sale of the discontinued operations in Russia may not occur or be
delayed; and risk associated with compliance with applicable law;
(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; and legal and administrative proceedings; and (F)
environmental, social and governance risks, including but not
limited to, failure to effectively and timely address the energy
transition; the direct and indirect costs of various existing and
proposed climate change regulations; various types of activism; and
reputational risk or legal liability resulting from ESG commitments
and disclosures. Further information about these and other risks
and uncertainties are 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
Company’s profile.
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 document 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.
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 3 to the Company’s interim consolidated
financial statements for the three and six months ended June 30,
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.
SECOND QUARTER CONFERENCE CALL
Calfrac will be conducting a conference call for
interested analysts, brokers, investors and news media
representatives to review its 2024 second-quarter results at 10:00
a.m. (Mountain Time) on Thursday, August 1, 2024. To participate in
the conference call, please register at the URL link below. Once
registered, you will receive a dial-in number and a unique PIN,
which will allow you to ask questions.
https://register.vevent.com/register/BI6057da8b3d8e4314bd32fee9a600e4b4
The call will also be webcast and can be
accessed through the link below. A replay of the webcast call will
also be available on Calfrac’s website for at least 90 days.
https://edge.media-server.com/mmc/p/6s7prwkq
CONSOLIDATED BALANCE SHEETS
|
|
June 30, |
|
December 31, |
|
|
|
2024 |
|
2023 |
|
|
(C$000s) |
($) |
|
($) |
|
| ASSETS |
|
|
|
Current assets |
|
|
|
Cash and cash equivalents |
43,655 |
|
34,140 |
|
|
Accounts receivable |
309,315 |
|
243,187 |
|
|
Income taxes recoverable |
— |
|
794 |
|
|
Inventories |
130,776 |
|
123,015 |
|
|
Prepaid expenses and deposits |
27,040 |
|
22,799 |
|
|
|
510,786 |
|
423,935 |
|
|
Assets classified as held for sale |
49,803 |
|
34,084 |
|
|
|
560,589 |
|
458,019 |
|
|
Non-current assets |
|
|
|
Property, plant and equipment |
691,166 |
|
614,555 |
|
|
Right-of-use assets |
20,531 |
|
24,623 |
|
|
Deferred income tax assets |
29,000 |
|
29,000 |
|
|
|
740,697 |
|
668,178 |
|
|
Total assets |
1,301,286 |
|
1,126,197 |
|
|
LIABILITIES AND EQUITY |
|
|
|
Current liabilities |
|
|
|
Accounts payable and accrued liabilities |
189,543 |
|
176,817 |
|
|
Income taxes payable |
7,302 |
|
— |
|
|
Current portion of lease obligations |
10,052 |
|
10,726 |
|
|
|
206,897 |
|
187,543 |
|
|
Liabilities directly associated with assets classified as held for
sale |
36,116 |
|
20,858 |
|
|
|
243,013 |
|
208,401 |
|
|
Non-current liabilities |
|
|
|
Long-term debt |
361,893 |
|
250,777 |
|
|
Lease obligations |
12,067 |
|
13,702 |
|
|
Deferred income tax liabilities |
30,815 |
|
37,414 |
|
|
|
404,775 |
|
301,893 |
|
|
Total liabilities |
647,788 |
|
510,294 |
|
|
Capital stock |
911,365 |
|
910,908 |
|
| Contributed surplus |
82,796 |
|
78,667 |
|
| Accumulated deficit |
(368,936 |
) |
(389,872 |
) |
|
Accumulated other comprehensive income |
28,273 |
|
16,200 |
|
|
Total equity |
653,498 |
|
615,903 |
|
|
Total liabilities and equity |
1,301,286 |
|
1,126,197 |
|
CONSOLIDATED STATEMENTS OF OPERATIONS
| |
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
|
(C$000s, except per share data) |
($) |
|
($) |
|
($) |
|
($) |
|
| |
|
|
|
|
| Revenue |
426,047 |
|
466,463 |
|
756,143 |
|
959,786 |
|
|
Cost of sales |
375,238 |
|
392,934 |
|
691,446 |
|
818,570 |
|
|
Gross profit |
50,809 |
|
73,529 |
|
64,697 |
|
141,216 |
|
|
Expenses |
|
|
|
|
|
Selling, general and administrative |
16,981 |
|
15,797 |
|
34,992 |
|
24,924 |
|
|
Foreign exchange (gains) losses |
(435 |
) |
4,983 |
|
(1,484 |
) |
6,469 |
|
|
Gain on disposal of property, plant and equipment |
(143 |
) |
(4,424 |
) |
(6,384 |
) |
(4,961 |
) |
|
Interest, net |
7,894 |
|
7,587 |
|
13,926 |
|
15,761 |
|
|
|
24,297 |
|
23,943 |
|
41,050 |
|
42,193 |
|
|
Income before income tax |
26,512 |
|
49,586 |
|
23,647 |
|
99,023 |
|
|
Income tax expense (recovery) |
|
|
|
|
|
Current |
3,397 |
|
6,109 |
|
9,811 |
|
10,507 |
|
|
Deferred |
(1,434 |
) |
(7,054 |
) |
(7,810 |
) |
1,672 |
|
|
|
1,963 |
|
(945 |
) |
2,001 |
|
12,179 |
|
|
Net income from continuing operations |
24,549 |
|
50,531 |
|
21,646 |
|
86,844 |
|
| Net
(loss) income from discontinued operations |
(1,460 |
) |
2,730 |
|
(710 |
) |
4,754 |
|
|
Net income |
23,089 |
|
53,261 |
|
20,936 |
|
91,598 |
|
|
|
|
|
|
|
| Earnings (loss) per share –
basic |
|
|
|
|
|
Continuing operations |
0.29 |
|
0.62 |
|
0.25 |
|
1.07 |
|
|
Discontinued operations |
(0.02 |
) |
0.03 |
|
(0.01 |
) |
0.06 |
|
|
|
0.27 |
|
0.66 |
|
0.24 |
|
1.13 |
|
|
|
|
|
|
|
| Earnings (loss) per share –
diluted |
|
|
|
|
|
Continuing operations |
0.29 |
|
0.58 |
|
0.25 |
|
0.98 |
|
|
Discontinued operations |
(0.02 |
) |
0.03 |
|
(0.01 |
) |
0.05 |
|
|
|
0.27 |
|
0.61 |
|
0.24 |
|
1.03 |
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
| |
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
|
(C$000s) |
($) |
|
($) |
|
($) |
|
($) |
|
| CASH FLOWS PROVIDED BY
(USED IN) |
|
|
|
|
| OPERATING
ACTIVITIES |
|
|
|
|
|
Net income |
23,089 |
|
53,261 |
|
20,936 |
|
91,598 |
|
|
Adjusted for the following: |
|
|
|
|
|
Depreciation |
28,033 |
|
28,657 |
|
56,028 |
|
58,819 |
|
|
Stock-based compensation |
2,118 |
|
797 |
|
4,303 |
|
1,341 |
|
|
Unrealized foreign exchange losses |
1,126 |
|
3,666 |
|
3,764 |
|
3,374 |
|
|
Gain on disposal of property, plant and equipment |
(144 |
) |
(4,447 |
) |
(6,400 |
) |
(4,985 |
) |
|
Impairment of property, plant and equipment |
484 |
|
— |
|
1,177 |
|
— |
|
|
Impairment of inventory |
4,954 |
|
1,592 |
|
7,368 |
|
2,692 |
|
|
Impairment of other assets |
5,240 |
|
1,535 |
|
5,475 |
|
2,686 |
|
|
Interest |
7,810 |
|
7,527 |
|
13,736 |
|
15,670 |
|
|
Interest paid |
(2,768 |
) |
(1,242 |
) |
(12,379 |
) |
(11,485 |
) |
|
Deferred income taxes |
(1,434 |
) |
(7,054 |
) |
(7,810 |
) |
1,672 |
|
|
Changes in items of working capital |
(53,478 |
) |
(66,100 |
) |
(67,395 |
) |
(102,296 |
) |
|
Cash flows provided by operating activities |
15,030 |
|
18,192 |
|
18,803 |
|
59,086 |
|
|
FINANCING ACTIVITIES |
|
|
|
|
|
Issuance of long-term debt, net of debt issuance costs |
44,987 |
|
18,223 |
|
104,987 |
|
51,456 |
|
|
Long-term debt repayments |
— |
|
(25,000 |
) |
— |
|
(50,000 |
) |
|
Lease obligation principal repayments |
(2,827 |
) |
(3,195 |
) |
(5,667 |
) |
(5,799 |
) |
|
Proceeds on issuance of common shares from the exercise of warrants
and stock options |
283 |
|
103 |
|
283 |
|
357 |
|
|
Cash flows provided by (used in) financing activities |
42,443 |
|
(9,869 |
) |
99,603 |
|
(3,986 |
) |
|
INVESTING ACTIVITIES |
|
|
|
|
|
Purchase of property, plant and equipment |
(65,535 |
) |
(42,929 |
) |
(121,955 |
) |
(78,326 |
) |
|
Proceeds on disposal of property, plant and equipment |
294 |
|
21,489 |
|
11,817 |
|
21,688 |
|
|
Proceeds on disposal of right-of-use assets |
101 |
|
593 |
|
328 |
|
1,109 |
|
|
Cash flows used in investing activities |
(65,140 |
) |
(20,847 |
) |
(109,810 |
) |
(55,529 |
) |
|
Effect of exchange rate changes on cash and cash equivalents |
348 |
|
(8,403 |
) |
(1,115 |
) |
(11,210 |
) |
|
(Decrease) increase in cash and cash equivalents |
(7,319 |
) |
(20,927 |
) |
7,481 |
|
(11,639 |
) |
| Cash
and cash equivalents, beginning of period |
59,990 |
|
27,681 |
|
45,190 |
|
18,393 |
|
|
Cash and cash equivalents, end of period |
52,671 |
|
6,754 |
|
52,671 |
|
6,754 |
|
|
Included in the cash and cash equivalents per the balance
sheet |
43,655 |
|
2,122 |
|
43,655 |
|
2,122 |
|
| Included in the assets held
for sale/discontinued operations |
9,016 |
|
4,632 |
|
9,016 |
|
4,632 |
|
For further information, please contact:
Pat Powell, Chief Executive OfficerMike Olinek,
Chief Financial Officer
Telephone:
403-266-6000
www.calfrac.com
Calfrac Well Services (TSX:CFW)
過去 株価チャート
から 7 2024 まで 8 2024
Calfrac Well Services (TSX:CFW)
過去 株価チャート
から 8 2023 まで 8 2024
