BHP faces $1.7bn blowout at Jansen project, production pushed to mid-2027
This comes as the miner reported 'record' copper and iron ore production for fiscal year 2025 (FY25).
The Jansen project is crucial to BHP's strategy to diversify its portfolio, with more than a decade invested in its development.
The Australia-based mining giant now expects the first stage of the Jansen project to cost between $7bn and $7.4bn, a substantial increase from the initial $5.7bn estimate.
BHP attributes the rise to escalated costs, design and scope modifications, and lower than expected productivity.
Additionally, the miner has delayed first production to mid-2027, a setback compared with the earlier target of 2026.
It is also contemplating a two-year postponement for the second stage of the Jansen project, moving the target to FY31.
This decision aligns with the expectation of additional potash supply entering the market in the medium term.
In a statement, the company said: "Given potential for additional potash supply coming to the market in the medium term, and as part of our regular review of the sequencing of capital projects under the capital allocation framework, we are considering a two-year extension for the execution of Jansen Stage 2."
Despite the challenges at Jansen, BHP highlighted its strong operational performance, with a 'record' copper output of more than two million tonnes (mt) in FY25.
However, the company forecasts a decrease in production in FY26 to between 1.8mt and 2mt due to anticipated lower grades at the Escondida mine in Chile.
Iron ore production also reached a new high, with BHP's Western Australia operations producing 290mt for the year.
In another move, BHP revealed it is evaluating the potential sale of its Western Australia Nickel assets.
These assets were placed into temporary suspension late last year amid oversupply in the global nickel market and a sharp plunge in forward consensus nickel prices.
The company plans to review the suspension in February 2027.
Meanwhile, last month, BHP announced it will collaborate with XCMG Mining Equipment to deliver fleet solutions across its operations worldwide.
"BHP faces $1.7bn blowout at Jansen project, production pushed to mid-2027" was originally created and published by Mining Technology, a GlobalData owned brand.
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Associated Press
17 minutes ago
- Associated Press
Saturn Oil & Gas Inc. Announces Second Quarter 2025 Results Highlighted by $119MM Net Debt Reduction Over Q1/25 and Record Free Funds Flow
Calgary, Alberta--(Newsfile Corp. - July 30, 2025) - Saturn Oil & Gas Inc. (TSX: SOIL) (OTCQX: OILSF) ('Saturn' or the 'Company'), a light oil-weighted producer focused on unlocking value through the development of assets in Saskatchewan and Alberta, is pleased to report our operating and financial results for the three and six months ended June 30, 2025, highlighted by net debt (1) reduction of over $119 million, strong adjusted funds flow ('AFF') (1) of $109 million and record free funds flow (1) of $93 million. Saturn's financial statements ('Financial Statements'), as well as Management's Discussion and Analysis ('MD&A') for the three and six months ended June 30, 2025, are available on our website and filed on SEDAR+ at A conference call and webcast to discuss the Q2/25 results has been scheduled for Thursday, July 31, 2025 at 8:00 am Mountain Time (10:00 am Eastern Time). Access details for the conference call and webcast are provided below. 'Saturn has continued to deliver results from our blueprint strategy, with net debt (1) reduction of nearly $120 million between Q1/25 and Q2/25 exceeding the original expectations mentioned during our Q1/25 earnings conference call. This outperformance was achieved through scheduled quarterly principal repayments, an opportunistic open-market purchase of our bonds below par, and the benefit of foreign exchange rates. This debt reduction, combined with our steady return of capital through Saturn's share buybacks, represents accretion for equity holders while also enhancing our per share metrics,' said John Jeffrey, Chief Executive Officer. 'Our strong operational performance is evidenced by quarterly production exceeding the high end of our guidance range for another consecutive quarter; operating costs coming in below the low end of guidance; and several Saturn wells being ranked among the highest performers in Saskatchewan, all of which supports our long-term sustainability.' Q2 2025 HIGHLIGHTS EVENTS SUBSEQUENT TO QUARTER END FINANCIAL AND OPERATING HIGHLIGHTS [This table cannot be displayed. Please visit the source.] SATURN'S BLUEPRINT IN ACTION The ongoing execution of Saturn's blueprint strategy proved effective in Q2/25 as our results showcase the strength of the underlying asset base that we have assembled, along with our technical team's ability to optimize production with minimal capital spending in the quarter leading to record Free Funds Flow. Our quarterly results further demonstrate our commitment to debt reduction and continuous per unit cost improvement which supports our robust cash flow. Consistent with Saturn's opportunistic approach to managing the business, during Q2/25, we elected to terminate certain 2026 and 2027 punitive WTI swap contracts that had an average Canadian dollar price of $81.35/bbl (equivalent to WTI prices under US$60/bbl) for $2.3 million. The Saskatchewan Government's recent decision to eliminate carbon tax in the province underpins Saturn's ability to generate incremental AFF. The Company stands to realize substantial savings across several cost centres within our business – including electricity, services, transportation and fuel. As a result of the carbon tax elimination, we are forecasting annual operating cost savings of up to $20 million, which can be reinvested back into Saskatchewan through capital expenditures, production optimization or tuck-in acquisitions, all of which support future AFF generation. This represents another example of the many benefits of operating in Saskatchewan. Upon closing of our SIB on July 16, 2025, the Company automatically restarted Common Share repurchases under our NCIB, which had been paused during the duration of the SIB. We intend to continue maximizing our daily purchase limits under the NCIB, with a view to maximizing the 11.3 million Shares available to be purchased under the NCIB by August 26, 2025 (as at the date of this release, we have repurchased 9.6 million), as we believe it offers an efficient means to enhance per share metrics while supporting equity value. ASSET OUTPERFORMANCE Saturn continues to benefit from the underlying strength of our asset base, our team's technical expertise and operational acumen, enabling the Company to extend our track record of effective and efficient capital deployment. Average production volumes of 40,417 boe/d for the second quarter exceeded both previous guidance and analyst consensus. This outperformance is highlighted by the Company's 15-21 Viewfield Bakken open-hole multi-lateral ('OHML') well ranking among the top four best-performing liquids wells in Saskatchewan in June, according to third-party reports, and by having three of our extended reach horizontal wells in the top 15 best-performing wells in the Alberta Cardium. Since being fully cleaned up, each of these Cardium wells have demonstrated reverse declines, with volumes increasing after the initial 30-day production rate, which is not common with well declines. In addition, we have continued to keep Saturn's per boe net operating expenses (1) well under our guidance range of $20.00 to $20.60 per boe to date in 2025, although we anticipate trending closer to guidance in the second half of the year as capital expenditure (1)(3) activities increase. OUTLOOK Saturn returned to the field in the latter half of July to commence our high return, OHML Bakken and Mississippian drilling programs. For Q3/25, the Company's capital expenditures (1)(3) are anticipated to range between $80 and $90 million, assuming WTI prices remain within expectations, with activities directed to the planned drilling of approximately 21 wells, production optimization initiatives, and further development at our Creelman Bakken field to initiate Saturn's first Viewfield waterflood project by the end of July. The project includes a new water source well, infrastructure, and five successful injector conversions to date, which will provide pressure support to increase ultimate oil recovery to current producers, and re-pressurize multiple 2026 development wells. This is the first stage of a larger multi-year waterflood program over the greater Viewfield area, which we expect to reduce declines and translate into material future booked reserves. Production in Q3/25 is expected to average between 37,000 to 38,000 boe/d (2), reflecting the impact of minimal capital spending during Q2/25 and in line with our original 2025 annual guidance. CONFERENCE CALL AND WEBCAST The Company plans to host a conference call on Thursday, July 31, 2025, at 8:00 am Mountain Time (10:00 am Eastern Time), which will include a discussion with Saturn's leadership team, who will provide an overview of our Q2 2025 results, followed by a question-and-answer session with attendees. An audio replay of the webcast will be available one hour after the end of the call at the link above and will remain accessible for 12 months. The replay link will also be posted on Saturn's website. NOTES (1) See reader advisory: Non-GAAP and Other Financial Measures. (2) See reader advisory: Supplemental Information Regarding Product Types. (3) Includes capitalized G&A. ABOUT SATURN Saturn is a returns-driven Canadian energy company focused on the efficient and innovative development of high-quality, light oil weighted assets, supported by an acquisition strategy targeting accretive and complementary opportunities. The Company's portfolio of free-cash flowing, low-decline operated assets in Saskatchewan and Alberta provide a deep inventory of long-term economic drilling opportunities across multiple zones. With an unwavering commitment to building an entrepreneurial and ESG-focused culture, Saturn's goal is to increase per Share reserves, production and cash flow at an attractive return on invested capital. The Company's Shares are listed for trading on the TSX under ticker 'SOIL' and on the OTCQX under the ticker 'OILSF'. Further information and our corporate presentation are available on Saturn's website at INVESTOR & MEDIA CONTACTS John Jeffrey, MBA - Chief Executive Officer Tel: +1 (587) 392-7900 Cindy Gray, MBA - VP Investor Relations Tel: +1 (587) 392-7900 [email protected] READER ADVISORIES Non-GAAP and Other Financial Measures Throughout this news release and in other materials disclosed by the Company, Saturn employs certain measures to analyze financial performance, financial position and cash flow. These non-GAAP and other financial measures do not have any standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other entities. The non-GAAP and other financial measures should not be considered to be more meaningful than GAAP measures which are determined in accordance with IFRS, such as net income (loss), cash flow from operating activities, and cash flow used in investing activities, as indicators of Saturn's performance. The disclosure under the section 'Non-GAAP and Other Financial Measures' in our MD&A, including non-GAAP financial measures and ratios, capital management measures and supplementary financial measures in the Company's Financial Statements and MD&A are incorporated by reference into this news release. This news release may use the terms 'Adjusted EBITDA', 'Adjusted Funds Flow', 'Net Debt', 'Free Funds Flow', 'Net Debt to Annualized Adjusted EBITDA' and 'Net Debt to Annualized AFF' which are capital management financial measures. See the disclosure under 'Capital Management' in our Financial Statements for the three and six months ended June 30, 2025, for an explanation and composition of these measures, how these measures provide useful information to an investor, the additional purposes, if any, for which management uses these measures, and, where applicable, a reconciliation of the Company's historical non-GAAP financial measures to the most directly comparable measure calculated in accordance with GAAP for the applicable period then ended. Capital Expenditures Saturn uses capital expenditures to monitor its capital investments relative to those budgeted by the Company on an annual basis. Saturn's capital budget excludes acquisition and disposition ('A&D') activities as well as the accounting impact of any accrual changes or payments under certain lease arrangements. The most directly comparable GAAP measure for capital expenditures is cash flow used in investing activities. The following table reconciles capital expenditures and capital expenditures, net A&D to the nearest GAAP measure, cash flow used in investing activities. [This table cannot be displayed. Please visit the source.] Free Funds Flow and Free Funds Flow per Share Saturn uses free funds flow as an indicator of the efficiency and liquidity of its business, measuring its funds after capital investment available to manage debt levels, pursue acquisitions and gauge optionality to pay dividends and/or and return capital to shareholders through activities such as share repurchases. Saturn calculates free funds flow as adjusted funds flow in the period less capital expenditures. By removing the impact of current period capital expenditures from adjusted funds flow, management monitors its free funds flow to inform its capital allocation decisions. Free funds flow is also presented on a per share basis as a non-GAAP financial ratio. The following table reconciles adjusted funds flow to free funds flow. [This table cannot be displayed. Please visit the source.] Adjusted Funds Flow per Share Adjusted funds flow per share is a non-GAAP ratio by management to better analyze the Company's performance against prior periods on a more comparable basis. Adjusted funds flow per share is calculated as adjusted funds flow from operations divided by weighted average shares outstanding during the applicable period on a basic or diluted basis. Gross Petroleum and Natural Gas Sales Gross petroleum and natural gas sales is calculated by adding oil, natural gas and NGLs revenue, before deducting certain gas processing expenses in arriving at petroleum and natural gas revenue as required under IFRS-15. These processing expenses associated with the processing of natural gas and NGLs revenue are a result of the Company transferring custody of the product at the terminal inlet and, therefore, receiving net prices. This metric is used by management to quantify and analyze the realized price received before required processing deductions, against benchmark prices. The calculation of the Company's gross petroleum and natural gas sales is shown within the petroleum and natural gas sales section of the MD&A. Royalties as a Percentage of Gross Petroleum and Natural Gas Sales Royalties as a percentage of gross petroleum and natural gas sales is calculated as royalties divided by gross petroleum and natural gas sales. This metric is used by management to quantify the Company's royalty costs as they relate to revenue before deducting certain processing expenses and to better analyze how royalty rates change over time and compare to prior periods. Net Operating Expenses Net operating expense is calculated by deducting processing income primarily generated by processing third party production at processing facilities where the Company has an ownership interest, from operating expenses presented on the statement of income (loss). Where the Company has excess capacity at one of its facilities, it will process third-party volumes to reduce the cost of ownership in the facility. The Company's primary business activities are not that of a midstream entity whose activities are focused on earning processing and other infrastructure-based revenues, and as such third-party processing revenue is netted against operating expenses in the MD&A. This metric is used by management to evaluate the Company's net operating expenses on a unit of production basis. Net operating expense per boe is a non-GAAP financial ratio and is calculated as net operating expense divided by total barrels of oil equivalent produced over a specific period of time. The calculation of the Company's net operating expenses is shown within the net operating expenses section of the MD&A. Operating Netback and Operating Netback, Net of Derivatives The Company's operating netback is determined by deducting royalties, net operating expenses and transportation expenses from petroleum and natural gas sales. The Company's operating netback, net of derivatives, is calculated by adding or deducting realized financial derivative commodity contract gains or losses from the operating netback. The Company's operating netback and operating netback, net of derivatives are used in operational and capital allocation decisions. Presenting operating netback and operating netback, net of derivatives on a per boe basis is a non-GAAP financial ratio and allows management to better analyze performance against prior periods on a per unit of production basis. The calculation of the Company's operating netbacks and operating netback, net of derivatives are summarized as follows. [This table cannot be displayed. Please visit the source.] (1) Includes early termination payment on certain WTI oil derivative contracts for the three and six months ended June 30, 2025 of $2.3 million. Capital Management Measures National Instrument 52-112 Non-GAAP and Other Financial Measures Disclosure ('NI 52-110") defines a capital management measure as a financial measure that: (i) is intended to enable an individual to evaluate an entity's objectives, policies and processes for managing the entity's capital; (ii) is not a component of a line item disclosed in the primary financial statements of the entity; (iii) is disclosed in the notes to the financial statements of the entity; and (iv) is not disclosed in the primary financial statements of the entity. Please refer to note 13 'Capital Management' in Saturn's Financial Statements for the three and six months ended June 30, 2025, for additional disclosure on: adjusted working capital, net debt, adjusted EBITDA, adjusted funds flow, free funds flow, annualized quarterly adjusted funds flow and net debt to annualized quarterly adjusted funds flow each of which are capital management measures used by the Company in this news release. Supplementary Financial Measures NI 52‐112 defines a supplementary financial measure as a financial measure that: (i) is, or is intended to be, disclosed on a periodic basis to depict the historical or expected future financial performance, financial position or cash flow of an entity; (ii) is not disclosed in the financial statements of the entity; (iii) is not a non‐GAAP financial measure; and (iv) is not a non‐GAAP ratio. The supplementary financial measures used in this news release are either a per unit disclosure of a corresponding GAAP measure, or a component of a corresponding GAAP measure, presented in the financial statements. Supplementary financial measures that are disclosed on a per unit basis are calculated by dividing the aggregate GAAP measure (or component thereof) by the applicable unit for the period. Supplementary financial measures that are disclosed on a component basis of a corresponding GAAP measure are a granular representation of a financial statement line item and are determined in accordance with GAAP. Supplemental Information Regarding Product Types References to gas or natural gas and NGLs in this press release refer to conventional natural gas and natural gas liquids product types, respectively, as defined in National Instrument 51-101, Standards of Disclosure for Oil and Gas Activities, except where specifically noted otherwise. The Company's aggregate average production for the past eight quarters and the references to 'crude oil', 'NGLs', and 'natural gas' reported herein consist of the following product types, as defined in NI 51-101 and using a conversion ratio of 1 Bbl : 6 Mcf where applicable: [This table cannot be displayed. Please visit the source.] Initial Production Rates References in this press release to initial production rates relating to wells are useful in confirming the presence of hydrocarbons, however such rates are not determinative of the rates at which such wells will maintain production or decline thereafter, and are not indicative of long-term performance or ultimate recovery. Readers are cautioned not to place reliance on such rates in calculating the aggregate production for the Company. Boe Presentation Boe means barrel of oil equivalent. All boe conversions in this press release are derived by converting gas to oil at the ratio of six thousand cubic feet ('Mcf') of natural gas to one barrel ('Bbl') of oil. Boe may be misleading, particularly if used in isolation. A boe conversion rate of 1 Bbl : 6 Mcf is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio of oil compared to natural gas based on currently prevailing prices is significantly different than the energy equivalency ratio of 1 Bbl : 6 Mcf, utilizing a conversion ratio of 1 Bbl : 6 Mcf may be misleading as an indication of value. Forward-Looking Information and Statements Certain information included in this press release constitutes forward-looking information under applicable securities legislation. Forward-looking information typically contains statements with words such as 'anticipate', 'believe', 'expect', 'plan', 'intend', 'estimate', 'propose', 'project', 'scheduled', 'will' or similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information in this press release may include, but is not limited to, the Company's drilling, completion and development plans, the planned multi-year waterflood project and the anticipated operational and reserve based benefits, the strength and sustainability of the Company's asset base and expertise of its personnel, expectations concerning the Q3 capital program, expected returns from OHML drilling programs, the liquidity of the Company and available credit, expectations regarding netbacks, hedging strategy, operating costs, return of capital, Share buyback and debt reduction strategies, the Company's intent to maximize purchases under the NCIB and the expected benefits to shareholders, the effect the Company's capital strategy on per share metrics and equity accretion, the business plan, cost model and strategy of the Company, changes in legislation and the associated benefits the Company expects, including operational cost savings and deployment of funds to support AFF generation, the benefits of operating in certain jurisdictions, per boe operating costs, anticipated production levels and related product types, and expectations regarding anticipated pricing trends, growth opportunities and market conditions. The forward-looking statements contained in this press release are based on certain key expectations and assumptions made by Saturn which may prove to be incorrect. Although Saturn believes that the expectations reflected in its forward-looking information are reasonable, undue reliance should not be placed on forward-looking information because Saturn can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified in this press release, assumptions have been made regarding and are implicit in, among other things, expectations and assumptions concerning: the timing of and success of future drilling, commodity prices, development and completion activities, the performance of existing wells, the performance of new wells, the availability and performance of facilities and pipelines, the ability to allocate capital to pay down debt and grow or maintain production, debt repayment plans, capital return strategies and future growth plans, the impact of our hedging strategy, the geological characteristics of Saturn's properties, drilling inventory and booked locations, production and revenue guidance, the application of regulatory and licensing requirements, the availability of capital, labour and services, the creditworthiness of industry partners and the ability to integrate acquisitions. Although Saturn believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Saturn can give no assurance that they will prove to be correct. Since forward-looking statements 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 the oil and gas industry in general (e.g., operational risks in development, exploration and production; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), constraints in the availability of services, commodity price and exchange rate fluctuations, actions of OPEC and OPEC+ members, changes in legislation impacting the oil and gas industry, adverse weather or break-up conditions and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. These and other risks are set out in more detail in Saturn's Annual Information Form for the year ended December 31, 2024, available on SEDAR+ at The forward-looking information in this news release reflects the Company's current expectations, assumptions and/or beliefs based on information currently available to the Company. The forward-looking information contained in this press release is made as of the date hereof and Saturn undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws. The forward-looking information contained in this press release is expressly qualified by this cautionary statement. All dollar figures included herein are presented in Canadian dollars, unless otherwise noted. To view the source version of this press release, please visit
Associated Press
17 minutes ago
- Associated Press
Source Energy Services Reports Q2 2025 Results
CALGARY, AB / ACCESS Newswire / July 30, 2025 / Source Energy Services Ltd. ('Source' or the 'Company') is pleased to announce its financial results for the three and six months ended June 30, 2025. Q2 2025 PERFORMANCE HIGHLIGHTS Key achievements for the quarter ended June 30, 2025 include the following: Note: RESULTS OVERVIEW Notes: SECOND QUARTER 2025 RESULTS Source realized record sand sales volumes during the second quarter, reflecting continued strong demand as Source customers pushed through spring break-up. Total revenue was $201.9 million for the three months ended June 30, 2025, an increase of $25.5 million, or 14%, compared to the second quarter last year. The second quarter also saw record sand sales volumes delivered for 'last mile' logistics, as Source's ability to reliably supply the large volumes of sand required per completion job resulted in a record for the largest daily sand volume fed into a blender in twenty-four hours in April. For the second quarter, average realized sand price per MT was impacted by a shift in product mix to more 100 mesh sand and the elimination of tariff charges, which were included in the average realized sand price during the first quarter of 2025 and reversed during the second quarter. Refer to 'Remission Order' below. Cost of sales, excluding depreciation, increased on a quarter-over-quarter basis, driven by higher sand sales volumes and increased transportation costs resulting from the record volumes hauled by 'last mile' logistics. On a per MT basis, cost of sales, excluding depreciation, decreased for the second quarter, driven by a shift in terminal mix and the impact of the tariff reversal. A weakening of the Canadian dollar increased cost of sales denominated in US dollars by $1.49 per MT, compared to the second quarter of 2024, which was largely offset by the movement in exchange rates on revenue denominated in US dollars for the period. For the three months ended June 30, 2025, gross margin increased by $4.1 million compared to the second quarter of 2024. Higher sand sales volumes and volumes trucked to the well site contributed to the increase, as well as incremental gross margin generated from the sand trucking assets acquired in 2024. Excluding gross margin from mine gate volumes, Adjusted Gross Margin was $44.49 per MT compared to $46.16 per MT for the second quarter of 2024. The change is attributed to a shift in product mix, driven by a 17% increase in the sales of 100 mesh sand compared to the second quarter of 2024, the impact of terminal mix and the weakening of the Canadian dollar which negatively impacted Adjusted Gross Margin by $0.31 per MT for the quarter. The tariff reversal had no impact on Adjusted Gross Margin as these surtaxes were borne by Source customers. Operating expenses increased by $2.1 million on a quarter-over-quarter basis, largely driven by higher royalty-related costs, partly attributed to the increased sand sales volumes realized during the period. Higher activity levels impacted costs for rail car related expenses including repairs and maintenance costs, as well as increased compensation expense, including people costs for Source's trucking operations. General and administrative expense decreased by $1.0 million during the second quarter of 2025, largely the result of lower people costs due to lower variable incentive compensation expense, partially offset by an increase in IT costs, due to the cloud-computing system implemented last year, compared to the second quarter of 2024. Adjusted EBITDA increased by 14%, or $4.4 million, to $35.2 million for the second quarter, attributed primarily to the record sand sales volumes and well site solutions performance, as well as the incremental benefit from trucking assets acquired in 2024. The weakening of the Canadian dollar negatively impacted Adjusted EBITDA by $0.8 million for the quarter, attributed to the movement in exchange rates on the settlement of working capital. Normal Course Issuer Bid On May 13, 2025, Source commenced a Normal Course Issuer Bid (the 'NCIB'), under which Source is authorized to purchase up to a maximum of 750,000 common shares or $5.0 million. The NCIB will terminate on May 12, 2026, or such earlier date as the maximum number of common shares are purchased pursuant to the NCIB or the NCIB is completed or terminated at the election of Source. During the second quarter, Source repurchased 225,400 common shares for a weighted average price of $11.99 per share under the NCIB. Remission Order Since the enactment of the reciprocal tariff by the Canadian government on March 4, 2025, Source has been working diligently with the Canadian government for relief of all surtaxes imposed on frac sand imported from the US. On June 26, 2025, Source received a Remission Order from the Government of Canada which determined that Source is eligible for relief of the surtax on sand at time of import, and qualifies for refunds of all surtaxes paid to date since enactment of the reciprocal tariff. During the second quarter of 2025, Source reversed the impact of tariffs previously recognized in revenue and cost of sales. Liquidity and Capital Resources Notes: During the second quarter of 2025, Free Cash Flow decreased by $1.2 million compared to the second quarter of 2024, primarily due to amounts paid for income taxes driven by Source's improved performance. An increase in growth and maintenance capital expenditures, as described below, and higher amounts paid for lease obligations also impacted Free Cash Flow for the quarter. The increase in lease obligations is a result of additional heavy equipment for the Peace River operations while the Wisconsin mining facilities replaced aging equipment which will drive lower costs for repairs and maintenance and reduce higher-cost short-term leases. Payments for lease obligations in Wisconsin, including rail car leases, were impacted by renewals at higher rates and the weakening of the Canadian dollar compared to the second quarter of 2024. Capital expenditures, net of proceeds on disposals and reimbursements and excluding expenditures related to the Taylor facility, were $7.6 million for the three months ended June 30, 2025, an increase of $2.0 million compared to the second quarter last year. On a quarter-over-quarter basis and excluding construction for the Taylor facility, growth capital expenditures increased by $1.0 million, attributed to the expansion of the Peace River facility as well as the addition of trailers for Source's trucking operations. Maintenance and sustaining capital expenditures increased for the second quarter of 2025 , compared to the same period last year, largely attributed to improvements made for an aging Sahara unit and roadwork at the north mine processing facility in Wisconsin, higher amounts for overburden removal for mining operations, driven by increased volumes, and amounts related to Source's trucking operations, compared to the second quarter of 2024. BUSINESS OUTLOOK Source is anticipating a slowdown in customer activity levels for the second half of 2025, driven by weaker commodity prices and ongoing economic volatility stemming from trade policy uncertainty. Source continues to monitor the impact of ongoing shifts in tariff policy imposed by the US government and retaliatory measures enacted by the Canadian government, and the related impacts on Source customers. Source believes in the longer-term additional natural gas export capability with LNG Canada now online and the expedited permitting of additional LNG capacity, including the recent approval for continued construction of an LNG pipeline project by the government of British Columbia, will help mitigate potential impacts related to uncertainty in the current economic environment. Source believes it is well-positioned to accommodate the expected longer-term increase in demand in northeastern British Columbia and take advantage of activity levels in the Western Canadian Sedimentary Basin ('WCSB') through its new Taylor facility, expected to be fully operational in the third quarter. The Peace River facility expansion will result in increased nameplate production capacity and provide Source's customers with an ability to blend their sand and lower their landed sand cost. In the longer-term, Source believes the increased demand for natural gas, driven by liquefied natural gas exports, increased natural gas pipeline export capabilities and power generation facilities, will drive incremental demand for Source's services in the WCSB. Source continues to see increased demand from customers that are primarily focused on the development of natural gas properties in the Montney, Duvernay and Deep Basin. This trend is consistent with Source's view that natural gas will be an important transitional fuel that is critical for the successful movement to a less carbon-intensive world. Source continues to focus on increasing its involvement in the provision of logistics services for other items needed at the well site in response to customer requests to expand its service offerings and to further utilize its existing Western Canadian terminals to provide additional services. SECOND QUARTER CONFERENCE CALL A conference call to discuss Source's second quarter financial results has been scheduled for 7:30 am MST (9:30 am ET) on Thursday, July 31, 2025. Interested analysts, investors and media representatives are invited to register to participate in the call. Once you are registered, a dial-in number and passcode will be provided to you via email. The link to register for the call is on the Upcoming Events page of our website and as follows: Source Energy Services Q2 2025 Results Call The call will be recorded and available for playback approximately 2 hours after the meeting end time, until August 31, 2025, using the following dial-in: Toll-Free Playback Number: 1-855-669-9658 Playback Passcode: 1323921 ABOUT SOURCE ENERGY SERVICES Source is a company that focuses on the integrated production and distribution of frac sand, as well as the distribution of other bulk completion materials not produced by Source. Source provides its customers with an end-to-end solution for frac sand supported by its Wisconsin and Peace River mines and processing facilities, its Western Canadian terminal network and its 'last mile' logistics capabilities, including its trucking operations, and Sahara, a proprietary well site mobile sand storage and handling system. Source's full-service approach allows customers to rely on its logistics platform to increase reliability of supply and to ensure the timely delivery of frac sand and other bulk completion materials at the well site. IMPORTANT INFORMATION These results should be read in conjunction with Source's unaudited interim condensed consolidated financial statements for the three and six months ended June 30, 2025 and 2024 and the audited consolidated financial statements for the years ended December 31, 2024 and 2023, together with the accompanying notes (the 'Financial Statements') and its corresponding MD&A for such periods. The Financial Statements and MD&A and other information relating to Source, including the Annual Information Form, are available under the Company's SEDAR+ profile at The Financial Statements and comparative statements have been prepared in accordance with International Financial Reporting Standards ('IFRS') as issued by the International Accounting Standards Board. Unless otherwise stated, all amounts are expressed in Canadian dollars. NON-IFRS MEASURES In this press release Source has used the terms Free Cash Flow, Adjusted Gross Margin and Adjusted EBITDA, including per MT, which do not have standardized meanings prescribed by IFRS and Source's method of calculating these measures may differ from the method used by other entities and, accordingly, they may not be comparable to similar measures presented by other companies. These financial measures should not be considered as an alternative to, or more meaningful than, net income and gross margin, respectively, which represent the most directly comparable measures of financial performance as determined in accordance with IFRS. Reconciliation of Adjusted EBITDA and Free Cash Flow to Net Income Notes: Reconciliation of Gross Margin to Adjusted Gross Margin For additional information regarding non-IFRS measures, including their use to management and investors, their composition and discussion of changes to either their composition or label, if any, please refer to the 'Non-IFRS Measures' section of the MD&A, which is incorporated herein by reference. Source's MD&A is available online at and through Source's website at FORWARD-LOOKING STATEMENTS Certain statements contained in this press release constitute forward-looking statements relating to, without limitation, expectations, intentions, plans and beliefs, including information as to the future events, results of operations and Source's future performance (both operational and financial) and business prospects. In certain cases, forward-looking statements can be identified by the use of words such as 'expects', 'believes', 'continues', 'focus', 'trend', 'driven by', 'approach' or variations of such words and phrases, or statements that certain actions, events or results 'may' or 'will' be taken, occur or be achieved. Such forward-looking statements reflect Source's beliefs, estimates and opinions regarding its future growth, results of operations, future performance (both operational and financial), and business prospects and opportunities at the time such statements are made, and Source undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or circumstances should change unless required by applicable law. Forward-looking statements are necessarily based upon a number of estimates and assumptions made by Source that are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Forward-looking statements are not guarantees of future performance. In particular, this press release contains forward-looking statements pertaining, but not limited to: the expectation that LNG Canada will come online; the completion of phase one of the Taylor facility to help Source meet the expected longer-term increase in demand in northeastern British Columbia; increased demand as Source customers pushed through spring break-up; Source's terminal network footprint and its Wisconsin and Peace River production facilities; expectations regarding the completion of the next phase of the Peace River facility expansion and approaching nameplate capacity of one million tons of domestic sand production; the outcomes of countermeasures proposed by the Canadian federal and provincial governments to mitigate any tariff-related impacts; the volatility in commodity prices on long-term capital plans for the industry; ongoing economic volatility stemming from trade policy uncertainty; Source's focus on pursuing its application to have the Canadian government's counter-tariffs on frac sand removed; the belief that the additional export capability via LNG Canada and the expedited permitting of additional LNG capacity will help mitigate potential impacts related to the counter-tariffs; expectations with respect to sand revenue and mine gate sand sales and associated costs; Source's anticipation of a slowdown in customer activity levels for the second half of 2025; expectations that increased demand for natural gas, increased natural gas pipeline export capabilities and liquefied natural gas exports will drive incremental demand for Source's services in the WCSB; continued increase in demand from customers primarily focused on the development of natural gas properties in Montney, Duvernay and Deep Basin; views that natural gas is an important transitional fuel for the successful movement to a less carbon-intensive world; Source's focus on and expectations regarding increasing its involvement in the provision of logistics services for other well site items; the benefits of Source's existing Western Canadian terminals to provide additional services to customers; the benefits that Source's 'last mile' services provide to customers; expectations respecting future conditions; and profitability. By their nature, forward-looking statements involve numerous current assumptions, known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Source to differ materially from those anticipated by Source and described in the forward-looking statements. With respect to the forward-looking statements contained in this press release, assumptions have been made regarding, among other things: proppant market prices; future oil, natural gas and liquefied natural gas prices; future global economic and financial conditions, including the results of ongoing tariff and trade negotiations in North America, as well as globally; predictable inflationary pressures; future commodity prices, demand for oil and gas and the product mix of such demand; levels of activity in the oil and gas industry in the areas in which Source operates; the continued availability of timely and safe transportation for Source's products, including without limitation, Source's rail car fleet and the accessibility of additional transportation by rail and truck; the maintenance of Source's key customers and the financial strength of its key customers; the maintenance of Source's significant contracts or their replacement with new contracts on substantially similar terms and that contractual counterparties will comply with current contractual terms; operating costs; that the regulatory environment in which Source operates will be maintained in the manner currently anticipated by Source; future exchange and interest rates; geological and engineering estimates in respect of Source's resources; the recoverability of Source's resources; the accuracy and veracity of information and projections sourced from third parties respecting, among other things, future industry conditions and product demand; demand for horizontal drilling and hydraulic fracturing and the maintenance of current techniques and procedures, particularly with respect to the use of proppants; Source's ability to obtain qualified staff and equipment in a timely and cost-efficient manner; the regulatory framework governing royalties, taxes and environmental matters in the jurisdictions in which Source conducts its business and any other jurisdictions in which Source may conduct its business in the future; future capital expenditures to be made by Source; future sources of funding for Source's capital program; Source's future debt levels; the impact of competition on Source; and Source's ability to obtain financing on acceptable terms. A number of factors, risks and uncertainties could cause results to differ materially from those anticipated and described herein including, among others: the effects of competition and pricing pressures; risks inherent in key customer dependence; effects of fluctuations in the price of proppants; risks related to indebtedness and liquidity, including Source's leverage, restrictive covenants in Source's debt instruments and Source's capital requirements; risks related to interest rate fluctuations and foreign exchange rate fluctuations; changes in general economic, financial, market and business conditions in the markets in which Source operates, including with respect to tariff and trade policy in North America, as well as globally; changes in the technologies used to drill for and produce oil and natural gas; Source's ability to obtain, maintain and renew required permits, licenses and approvals from regulatory authorities; the stringent requirements of and potential changes to applicable legislation, regulations and standards; the ability of Source to comply with unexpected costs of government regulations; liabilities resulting from Source's operations; the results of litigation or regulatory proceedings that may be brought by or against Source; the ability of Source to successfully bid on new contracts and the loss of significant contracts; uninsured and underinsured losses; risks related to the transportation of Source's products, including potential rail line interruptions or a reduction in rail car availability; the geographic and customer concentration of Source; the impact of extreme weather patterns and natural disasters; the impact of climate change risk; the ability of Source to retain and attract qualified management and staff in the markets in which Source operates; labor disputes and work stoppages and risks related to employee health and safety; general risks associated with the oil and natural gas industry, loss of markets, consumer and business spending and borrowing trends; limited, unfavorable, or a lack of access to capital markets; uncertainties inherent in estimating quantities of mineral resources; sand processing problems; implementation of recently issued accounting standards; the use and suitability of Source's accounting estimates and judgments; the impact of information systems and cyber security breaches; the impact of inflation on capital expenditures; and risks and uncertainties related to pandemics, including changes in energy demand. Although Source has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in the forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will materialize or prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement. Readers should not place undue reliance on forward-looking statements. These statements speak only as of the date of this press release. Except as may be required by law, Source expressly disclaims any intention or obligation to revise or update any forward-looking statements or information whether as a result of new information, future events or otherwise. Any financial outlook and future-oriented financial information contained in this press release regarding prospective financial performance, financial position or cash flows is based on assumptions about future events, including economic conditions and proposed courses of action based on management's assessment of the relevant information that is currently available. Projected operational information contains forward-looking information and is based on a number of material assumptions and factors, as are set out above. These projections may also be considered to contain future oriented financial information or a financial outlook. The actual results of Source's operations for any period will likely vary from the amounts set forth in these projections and such variations may be material. Actual results will vary from projected results. Readers are cautioned that any such financial outlook and future-oriented financial information contained herein should not be used for purposes other than those for which it is disclosed herein. The forward-looking information and statements contained in this document speak only as of the date hereof and have been approved by the Company's management as at the date hereof. The Company does not assume any obligation to publicly update or revise them to reflect new events or circumstances, except as may be required pursuant to applicable laws. FOR FURTHER INFORMATION PLEASE CONTACT: Scott Melbourn Chief Executive Officer (403) 262-1312 [email protected] Derren Newell Chief Financial Officer (403) 262-1312 [email protected] SOURCE: Source Energy Services Ltd. press release
Associated Press
17 minutes ago
- Associated Press
DIRTT Welcomes Adrian Zarate to the Board of Directors
CALGARY, Alberta, July 30, 2025 (GLOBE NEWSWIRE) -- DIRTT Environmental Solutions Ltd. ('DIRTT' or the 'Company'), a leader in industrialized construction, announced today that Mr. Adrian Zarate has been appointed to the Company's Board of Directors (the 'Board') effective July 30, 2025. Mr. Zarate will be the nominee director for 22NW Fund, LP ('22NW'), DIRTT's largest shareholder, pursuant to the Support and Standstill Agreement among DIRTT, 22NW and WWT Opportunity #1 LLC dated August 2, 2024. Mr. Aron English, the founder of 22NW and 22NW's current nominee on the Board, made the following comment regarding the transition: 'I have been a member of the Board since 2022 when 22NW led a successful proxy contest to replace DIRTT's entire board. Since then it has been my privilege to work with a number of outstanding individuals at DIRTT as the Company has taken a series of important steps to rebuild itself into the leading business in its market. My colleague Adrian Zarate will continue this work as he joins the Board and 22NW looks forward to supporting DIRTT through its promising future.' Mr. Zarate is a capital structure analyst at 22NW, LP, where he focuses on investments across a range of industry verticals. Mr. Zarate previously worked as an investment banker at Greenhill & Co., LLC and as a credit investor at Nuveen (TIAA-CREF). Mr. Zarate holds a BA in Economics from Columbia University and an MBA in Finance from The Wharton School. Scott Robinson, Chair of the Board remarked, 'We thank Aron English for his leadership in DIRTT's turnaround and for recognizing the value of DIRTT. We are excited to welcome Adrian Zarate to the Board as we focus on capturing more market share and growing DIRTT.' Special Note Regarding Forward-Looking Statements Certain statements contained in this news release that are not historical facts are 'forward-looking information' and 'forward-looking statements' (collectively, 'Forward-Looking Information') as defined under applicable provisions of the United States Private Securities Litigation Reform Act of 1995, and Section 21E of the Exchange Act and within the meaning of applicable Canadian securities laws. Forward-Looking Information, by its nature, is based on assumptions, and is subject to important risks and uncertainties, including the Company's execution of its growth strategy, or that such strategy will be executed as expected. You should not rely on any Forward-Looking Information, which represents our beliefs, assumptions and estimates only as of the dates on which it was made, as predictions of future events. We undertake no obligation to update this Forward-Looking Information, even though circumstances may change in the future, except as required under applicable securities laws. We qualify all of our Forward-Looking Information with these cautionary statements. About DIRTT Environmental Solutions DIRTT is a leader in industrialized construction. DIRTT's system of physical products and digital tools empowers organizations, together with construction and design leaders, to build high-performing, adaptable, interior environments. Operating in the workplace, healthcare, education, and public sector markets, DIRTT's system provides total design freedom, and greater certainty in cost, schedule, and outcomes. DIRTT's interior construction solutions are designed to be highly flexible and adaptable, enabling organizations to easily reconfigure their spaces as their needs evolve. Headquartered in Calgary, AB Canada, DIRTT trades on the Toronto Stock Exchange under the symbol 'DRT' and on the OTCQX under the symbol 'DRTTF'. FOR FURTHER INFORMATION PLEASE CONTACT [email protected]
