Latest news with #CalfracWellServices
CTV News
15-05-2025
- Business
- CTV News
Calfrac reports $7.8-million Q1 profit, revenue up 12 per cent from year ago
Heavy rainfall is seen in Calgary on Tuesday, June 14, 2022. (THE CANADIAN PRESS/Jeff McIntosh) CALGARY — Calfrac Well Services Ltd. reported a first-quarter profit of $7.8 million compared with a loss of $2.9 million a year earlier as its revenue rose 12 per cent. The oilfield services company says the increase in revenue came from higher prices and activity in Argentina, offset in part by lower prices in North America. Calfrac reported its profit amounted to nine cents per diluted share for the quarter ended March 31 compared with a loss of three cents per diluted share in the same quarter last year. Revenue totalled $370.1 million, up from $330.1 million in the first quarter of 2024. The increase came as the company's Argentine operations earned $142.2 million in revenue during the first quarter of 2025 compared with $81.1 million in the same quarter in 2024. Calfrac's North American operations took in $227.9 million in revenue for the quarter, down from $249.0 million a year earlier. This report by The Canadian Press was first published May 15, 2025.
Globe and Mail
15-05-2025
- Business
- Globe and Mail
Calfrac Reports First Quarter 2025 Results with Record Financial Performance in Argentina
CALGARY, Alberta, May 15, 2025 (GLOBE NEWSWIRE) -- Cal frac Well Services Ltd. ('Calfrac' or 'the Company') (TSX: CFW) announces its financial and operating results for the three months ended March 31, 2025. The following press release should be read in conjunction with the management's discussion and analysis and interim consolidated financial statements and notes thereto as at March 31, 2025. Readers should also refer to the 'Forward-looking statements' legal advisory and the section regarding 'Non-GAAP Measures' at the end of this press release. All financial amounts and measures are expressed in Canadian dollars unless otherwise indicated. Additional information about Calfrac is available on the SEDAR+ website at including the Company's Annual Information Form for the year ended December 31, 2024. CFO'S MESSAGE Calfrac achieved revenue of $370.1 million during the first quarter in 2025, a 3 percent decline from the fourth quarter in 2024, primarily due to a normal seasonal slowdown in activity in the Rockies region of North America. As experienced over the last couple of years, activity in the Rockies region continues to be very challenging during the first quarter due to limited customer activity, resulting from the higher costs of operating in extreme cold weather. However, the Company's Argentina operations delivered a sequential increase in revenue of 56 percent as it operated two unconventional fracturing spreads in the Vaca Muerta shale play for a portion of the first quarter. Calfrac's Chief Financial Officer, Mike Olinek commented: 'I am very pleased with the strong operating and financial performance demonstrated by Calfrac's team in Argentina during the first quarter and look forward to building on this positive momentum throughout the remainder of the year. I am also confident that the Company's North American DGB fracturing fleets will remain in high demand and allow us to successfully navigate any potential slowdown in North America and deliver on our strategic priorities.' Three Months Ended Mar. 31, 2025 2024 Change (C$000s, except per share amounts) ($) ($) (%) (unaudited) Revenue 370,057 330,096 12 Adjusted EBITDA (1) 55,317 26,057 112 Cash flows provided by operating activities (7,050) 11,958 NM Capital expenditures 42,132 48,072 (12) Net income (loss) 7,796 (2,903) NM Per share – basic 0.09 (0.03) NM Per share – diluted 0.09 (0.03) NM As at Mar. 31, Dec. 31, Change 2025 2024 (C$000s) ($) ($) (%) (unaudited) Cash and cash equivalents 15,463 44,045 (65) Working capital, end of period (2) 266,087 229,856 16 Total assets, end of period 1,254,979 1,234,840 2 Long-term debt, end of period 341,095 320,908 6 Net debt (1)(3) 348,674 300,347 16 Total consolidated equity, end of period 660,262 653,330 1 (1) Refer to 'Non-GAAP Measures' on page 6 for further information. (2) Working capital excludes cash and cash equivalents and the current portion of long-term debt of $341.1 million. (3) Refer to note 10 of the consolidated interim financial statements for further information. FIRST QUARTER OVERVIEW In the first quarter of 2025, the Company: generated revenue of $370.1 million, an increase of 12 percent from the first quarter in 2024 resulting primarily from higher pricing and activity in Argentina, offset partially by lower pricing in North America; reported Adjusted EBITDA of $55.3 million versus $26.1 million in the first quarter of 2024 due to record quarterly financial results in Argentina with the commencement of a second large fracturing fleet in the Vaca Muerta shale play during a portion of the first quarter; had cash flow from operating activities of negative $7.1 million, which included $12.7 million of interest paid and cash used for working capital purposes of $35.0 million, as compared to $12.0 million in the first quarter of 2024, which was net of $9.7 million of interest paid and cash used for working capital purposes of $1.6 million; reported net income from continuing operations of $7.8 million or $0.09 per share diluted compared to a net loss of $2.9 million or $0.03 per share diluted during the first quarter in 2024; had a cash position of $15.5 million of which approximately 70 percent was held in Argentina. The Argentina cash balance includes an investment of US$6.1 million in Argentinean government bonds (BOPREAL Bonds) that will be repatriated to Canada before the end of the third quarter in 2025; reported an increase in period-end working capital to $266.1 million from $229.9 million at December 31, 2024, primarily due to an increase in revenue in the first quarter of 2025 with a greater proportion generated from Argentina, which has longer lead times to collection than North America; and incurred capital expenditures of $42.1 million, which included approximately $22.3 million of expansion capital in Argentina and $9.3 million related to the Company's fracturing fleet modernization program in North America, including auxiliary support equipment. FINANCIAL OVERVIEW – CONTINUING OPERATIONS THREE MONTHS AND YEARS ENDED MARCH 31, 2025 VERSUS 2024 NORTH AMERICA Three Months Ended Mar. 31, 2025 2024 Change (C$000s, except operational and exchange rate information) ($) ($) (%) (unaudited) Revenue 227,902 248,959 (8) Adjusted EBITDA (1) 6,131 14,872 (59) Adjusted EBITDA (%) (1) 2.7 6.0 (55) Fracturing revenue per job ($) 25,060 33,518 (25) Number of fracturing jobs 8,709 7,176 21 Active pumping horsepower, end of year (000s) 898 951 (6) US$/C$ average exchange rate (2) 1.4352 1.3486 6 (1) Refer to 'Non-GAAP Measures' on page 6 for further information. (2) Source: Bank of Canada. OUTLOOK The uncertainty caused by geopolitical tensions, OPEC+ supply increases, and changes to the United States trade and tariff regimes, have affected the economic outlook for the global economy and triggered a recent decline in near-term crude oil prices. While activity in North America has not been significantly impacted as yet, oil-weighted completion activity is expected to be lower year-over-year, but more resilient than past cycles as a focus on capital discipline by the E&P sector has resulted in activity that only supports the maintenance of current production levels. However, completions activity within the Company's natural gas producing regions in North America is anticipated to be slightly higher than the previous year given the relative strength in natural gas prices. The Company has been evaluating the implication of tariffs across its North American operations over the last few months and has commenced with mitigation efforts, wherever possible, including seeking applicable tariff exemptions for critical items that are sourced from the United States. Calfrac's previously announced Tier IV modernization program is nearing completion. These strategic investments in next-generation Dynamic Gas Blending ('DGB') pumping technology have resulted in the Company exiting the quarter with the equivalent of five Tier IV DGB fleets operating in the field. Calfrac's dual-fuel capable fracturing fleets in North America are expected to remain in high demand during the second quarter, despite the current headwinds, and fleet utilization is expected to increase sequentially from the first quarter as certain clients in the Rockies region commence with their 2025 programs. THREE MONTHS ENDED MARCH 31, 2025 COMPARED TO THREE MONTHS ENDED MARCH 31, 2024 REVENUE Revenue from Calfrac's North American operations decreased to $227.9 million during the first quarter of 2025 from $249.0 million in the comparable quarter of 2024. The Company's North American activity was impacted by extreme cold weather and was significantly lower than the comparable quarter in 2024 despite the 21 percent increase in the number of jobs completed. The Company's client mix was different than the comparable period in 2024 with the completion of a larger quantity of smaller jobs, which also impacted the fracturing revenue per job. The Company reduced its operating footprint to 11 active fracturing fleets to begin the first quarter to address the seasonal challenges experienced in the Rockies region. The Company recommenced operations in the Appalachian basin in January with an additional fracturing crew, which helped offset the lower revenue experienced in the Rockies. Pricing in North America was lower relative to the comparable quarter in 2024, which contributed to the 8 percent reduction in revenue. Coiled tubing revenue was consistent with the first quarter in 2024 as slightly lower activity was offset by the completion of larger jobs. ADJUSTED EBITDA The Company's operations in North America generated Adjusted EBITDA of $6.1 million or 3 percent of revenue during the first quarter of 2025 compared to $14.9 million or 6 percent of revenue in the same period in 2024. This decrease was primarily due to the decline in fracturing fleet utilization and lower pricing. Three Months Ended Mar. 31, 2025 2024 Change (C$000s, except operational and exchange rate information) ($) ($) (%) (unaudited) Revenue 142,155 81,137 75 Adjusted EBITDA (1) 53,265 16,100 231 Adjusted EBITDA (%) (1) 37.5 19.8 89 Fracturing revenue per job ($) 124,874 74,354 68 Number of fracturing jobs 741 672 10 Active pumping horsepower, end of period (000s) 153 139 10 US$/C$ average exchange rate (2) 1.4352 1.3486 6 (1) Refer to 'Non-GAAP Measures' on page 6 for further information. (2) Source: Bank of Canada. OUTLOOK Argentina continued to demonstrate year-over-year operational and financial improvement by achieving record quarterly financial performance during the first quarter of 2025. Calfrac expects its full-year financial results in Argentina will be very strong, building on the significant momentum generated during the first quarter. The Company benefited from spot work for its second large fracturing fleet in the Vaca Muerta shale play during the first quarter at operating margins that are not expected to be maintained during the remainder of the year. The Company's 2025 capital program also contemplates the addition of in-house wireline capabilities in Argentina during the fourth quarter which will further bolster its service offering in Neuquén. Recent Argentina government announcements related to the cash repatriation regime in that country reaffirm the Company's expectations of a greater ability to repatriate excess cash flow following the completion of its significant 2025 capital program. THREE MONTHS ENDED MARCH 31, 2025 COMPARED TO THREE MONTHS ENDED MARCH 31, 2024 REVENUE Calfrac's Argentinean operations generated revenue of $142.2 million during the first quarter of 2025 versus $81.1 million in the comparable quarter in 2024. The 75 percent increase in revenue was driven by improved pricing for spot work and an increase in the number of fracturing jobs completed during the quarter. The Company operated two unconventional fracturing fleets in the Vaca Muerta shale play for a portion of the first quarter. The Company also demonstrated growth in activity across its other service lines as the Company permanently transferred equipment from Las Heras to Neuquén following the completion of a long-term contract. The Company's offshore coiled tubing unit also contributed to the increase in revenue versus the comparable quarter in 2024. ADJUSTED EBITDA The Company's operations in Argentina generated Adjusted EBITDA of $53.3 million during the first quarter of 2025 compared to $16.1 million in the same quarter of 2024, while the Company's Adjusted EBITDA margins increased to 37 percent from 20 percent. This increase was primarily due to the significant revenue growth and efficiencies resulting from operating two unconventional fracturing fleets simultaneously during parts of the quarter and higher pricing for spot work. In addition, the Company received an early termination fee related to the closure of its operations in Las Heras following the completion of a long-term contract with a major client in that region. This revenue offset costs that were incurred in 2024 to permanently close this district. SUMMARY OF QUARTERLY RESULTS – CONTINUING OPERATIONS Three Months Ended Jun. 30, Sep. 30, Dec. 31, Mar. 31, Jun. 30, Sep. 30, Dec. 31, Mar. 31, 2023 2023 2023 2024 2024 2024 2024 2025 (C$000s, except per share and operating data) ($) ($) ($) ($) ($) ($) ($) ($) (unaudited) Financial Revenue 466,463 483,093 421,402 330,096 426,047 430,109 381,230 370,057 Adjusted EBITDA (1) 87,785 91,286 62,591 26,057 65,386 65,039 34,512 55,317 Net income (loss) 50,531 97,523 13,202 (2,903) 24,549 (6,687) (6,424) 7,796 Per share – basic 0.62 1.20 0.16 (0.03) 0.29 (0.08) (0.07) 0.09 Per share – diluted 0.58 1.09 0.15 (0.03) 0.29 (0.08) (0.07) 0.09 Capital expenditures 30,718 50,825 49,397 48,072 66,753 22,509 32,955 42,132 (1) Refer to 'Non-GAAP Measures' on page 6 for further information. CAPITAL EXPENDITURES – CONTINUING OPERATIONS Three Months Ended Mar. 31, 2025 2024 Change (C$000s) ($) ($) (%) North America 12,941 37,174 (65) Argentina 29,191 10,898 168 Continuing Operations 42,132 48,072 (12) Capital expenditures were $42.1 million for the three months ended March 31, 2025, which included approximately $22.3 million of expansion capital in Argentina and $9.3 million related to the Company's fracturing fleet modernization program in North America, including auxiliary support equipment versus $48.1 million in the comparable period in 2024. Calfrac's Board of Directors approved a 2025 capital budget totalling approximately $135.0 million. The program includes approximately $50.0 million to facilitate the expansion of the Company's fracturing operations in the Vaca Muerta shale play in Argentina that will be funded locally from cash flow. The 2025 Argentina capital program includes additional fracturing pumping units, an expansion of the Company's deep coiled tubing capabilities and the introduction of in-house wireline services. The balance of the 2025 program will fund maintenance capital for all operating divisions as well as additional investments in the North American Tier IV fleet modernization program and coiled tubing fleet. Due to a delay in spending related to the Company's 2024 capital program, approximately $30.0 million of 2024 capital commitments will be funded in 2025, mainly related to the expansion in Argentina, of which approximately $20.0 million occurred during the first quarter. NON-GAAP MEASURES Certain supplementary measures presented in this press release, including Adjusted EBITDA, Adjusted EBITDA percentage and Net Debt do not have any standardized meaning under IFRS and, because IFRS have been incorporated as Canadian generally accepted accounting principles (GAAP), these supplementary measures are also non-GAAP measures. These measures have been described and presented to provide shareholders and potential investors with additional information regarding the Company's financial results, liquidity and ability to generate funds to finance its operations. These measures may not be comparable to similar measures presented by other entities, and are explained below. Adjusted EBITDA is defined as net income or loss for the period less interest, taxes, depreciation and amortization, foreign exchange losses (gains), non-cash stock-based compensation, and gains and losses that are extraordinary or non-recurring. Adjusted EBITDA is presented because it gives an indication of the results from the Company's principal business activities prior to consideration of how its activities are financed and the impact of foreign exchange, taxation and depreciation and amortization charges. Adjusted EBITDA is used by management to evaluate the performance of the Company and is also used as a basis for monitoring the Company's compliance with covenants under the revolving credit facility. Adjusted EBITDA for the period was calculated as follows: Three Months Ended March 31, 2025 2024 (C$000s) ($) ($) Net income (loss) from continuing operations 7,796 (2,903) Add back (deduct): Depreciation 31,922 27,995 Foreign exchange losses (gains) 1,693 (1,049) Loss (gain) on disposal of property, plant and equipment 124 (6,241) Restructuring charges 516 — Stock-based compensation (925) 2,185 Interest, net 7,944 6,032 Income taxes 6,247 38 Adjusted EBITDA from continuing operations 55,317 26,057 Less: IFRS 16 lease payments (3,679) (3,235) Less: Argentina EBITDA threshold adjustment (1) (45,397) (5,428) Bank EBITDA for covenant purposes 6,241 17,394 (1) Refer to note 4 of the Company's interim consolidated financial statements for the three months ended March 31, 2025. Adjusted EBITDA percentage is a non-GAAP financial ratio that is determined by dividing Adjusted EBITDA by revenue for the corresponding period. Net Debt is defined as long-term debt less unamortized debt issuance costs plus lease obligations, less cash and cash equivalents from continuing operations. The calculation of net debt is disclosed in note 10 to the Company's interim consolidated financial statements for the corresponding period. OTHER NON-STANDARD FINANCIAL TERMS MAINTENANCE AND EXPANSION CAPITAL Maintenance capital refers to expenditures in respect of capital additions, replacements or improvements required to maintain ongoing business operations. Expansion capital refers to expenditures primarily for new items, upgrades and/or equipment that will expand the Company's revenue and/or reduce its expenditures through operating efficiencies. The determination of what constitutes maintenance capital expenditures versus expansion capital involves judgement by management. BUSINESS RISKS The business of Calfrac is subject to certain risks and uncertainties. Prior to making any investment decision regarding Calfrac, investors should carefully consider, among other things, the risk factors set forth in the Company's most recently filed Annual Information Form under the heading 'Risk Factors' which is available on the SEDAR+ website at 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 ADDITIONAL INFORMATION Calfrac's common shares are publicly traded on the Toronto Stock Exchange under the trading symbol "CFW". Calfrac provides specialized oilfield services to exploration and production companies designed to increase the production of hydrocarbons from wells with continuing operations focused throughout western Canada, the United States and Argentina. During the first quarter of 2022, management committed to a plan to sell the Company's Russian division, resulting in the associated assets and liabilities being classified as held for sale and presented in the Company's financial statements as discontinued operations. The results of the Company's discontinued operations are excluded from the discussion and figures presented above unless otherwise noted. See Note 4 to the Company's annual consolidated financial statements for the year ended December 31, 2024 for additional information on the Company's discontinued operations. Further information regarding Calfrac Well Services Ltd., including the most recently filed Annual Information Form, can be accessed on the Company's website at or under the Company's public filings found at FIRST QUARTER CONFERENCE CALL AND AGM UPDATE Calfrac will no longer be conducting the previously announced conference call to review its 2025 first-quarter results on Thursday, May 15, 2025. Any interested parties can reach out to Mike Olinek, Chief Financial Officer at the contact information below should they wish to ask any questions regarding the Company's quarterly financial results. The Company will be holding its Annual General Meeting at 1:30 pm on Thursday May 15, 2025 in the Viking Room of the Calgary Petroleum Club. CONSOLIDATED BALANCE SHEETS March 31, December 31, 2025 2024 (C$000s) ($) ($) ASSETS Current assets Cash and cash equivalents 15,463 44,045 Accounts receivable 306,957 251,108 Inventories 130,596 145,506 Prepaid expenses and deposits 21,797 26,452 474,813 467,111 Assets classified as held for sale 47,053 45,335 521,866 512,446 Non-current assets Property, plant and equipment 684,123 673,381 Right-of-use assets 19,990 20,013 Deferred income tax assets 29,000 29,000 733,113 722,394 Total assets 1,254,979 1,234,840 LIABILITIES AND EQUITY Current liabilities Accounts payable and accrued liabilities 160,129 173,974 Income taxes payable 23,301 9,700 Current portion of long-term debt 341,095 150,000 Current portion of lease obligations 9,833 9,536 534,358 343,210 Liabilities directly associated with assets classified as held for sale 32,677 30,945 567,035 374,155 Non-current liabilities Long-term debt — 170,908 Lease obligations 13,209 13,948 Deferred income tax liabilities 14,473 22,499 27,682 207,355 Total liabilities 594,717 581,510 Capital stock 911,900 911,785 Contributed surplus 76,190 77,159 Accumulated deficit (373,875) (379,490) Accumulated other comprehensive income 46,047 43,876 Total equity 660,262 653,330 Total liabilities and equity 1,254,979 1,234,840 Three Months Ended March 31, 2025 2024 (C$000s, except per share data) ($) ($) Revenue 370,057 330,096 Cost of sales 330,576 316,208 Gross profit 39,481 13,888 Expenses Selling, general and administrative 15,677 18,011 Foreign exchange losses (gains) 1,693 (1,049) Loss (gain) on disposal of property, plant and equipment 124 (6,241) Interest, net 7,944 6,032 25,438 16,753 Income (loss) before income tax 14,043 (2,865) Income tax expense (recovery) Current 14,240 6,414 Deferred (7,993) (6,376) 6,247 38 Net income (loss) from continuing operations 7,796 (2,903) Net (loss) income from discontinued operations (2,181) 750 Net income (loss) 5,615 (2,153) Earnings (loss) per share – basic Continuing operations 0.09 (0.03) Discontinued operations (0.03) 0.01 0.07 (0.02) Earnings (loss) per share – diluted Continuing operations 0.09 (0.03) Discontinued operations (0.03) 0.01 0.07 (0.02) CONSOLIDATED STATEMENTS OF CASH FLOWS Three Months Ended March 31, 2025 2024 (C$000s) ($) ($) CASH FLOWS PROVIDED BY (USED IN) Restated OPERATING ACTIVITIES Net income (loss) 7,796 (2,903) Adjusted for the following: Depreciation 31,922 27,995 Stock-based compensation (925) 2,185 Unrealized foreign exchange losses 1,846 2,627 Loss (gain) on disposal of property, plant and equipment 124 (6,241) Interest 7,944 6,032 Interest paid (12,716) (9,717) Deferred income taxes (7,993) (6,376) Changes in items of working capital (35,048) (1,644) Cash flows (used in) provided by operating activities from continuing operations (7,050) 11,958 Cash flows provided by (used in) operating activities from discontinued operations 10,231 (8,185) Net cash flows provided by operating activities 3,181 3,773 INVESTING ACTIVITIES Purchase of property, plant and equipment (38,498) (55,727) Proceeds on disposal of property, plant and equipment 1,553 11,508 Proceeds on disposal of right-of-use assets 206 227 Cash flows used in investing activities from continuing operations (36,739) (43,992) Cash flows used in investing activities from discontinued operations (1,457) (678) Net cash flows used in investing activities (38,196) (44,670) FINANCING ACTIVITIES Issuance of long-term debt, net of debt issuance costs 30,000 60,000 Long-term debt repayments (10,000) — Lease obligation principal repayments (3,244) (2,840) Proceeds on issuance of common shares from the exercise of stock options 71 — Cash flows provided by financing activities from continuing operations 16,827 57,160 Cash flows provided by financing activities from discontinued operations — — Net cash flows provided by financing activities 16,827 57,160 Effect of exchange rate changes on cash and cash equivalents 550 (1,464) (Decrease) increase in cash and cash equivalents (17,638) 14,799 Cash and cash equivalents, beginning of period 50,776 45,190 Cash and cash equivalents, end of period 33,138 59,989 Included in the cash and cash equivalents per the balance sheet 15,463 58,239 Included in the assets held for sale/discontinued operations 17,675 1,750 ADVISORIES FORWARD-LOOKING STATEMENTS In order to provide Calfrac shareholders and potential investors with information regarding the Company and its subsidiaries, including management's assessment of Calfrac's plans and future operations, certain statements contained in this press release, including statements that contain words such as 'seek', 'anticipate', 'plan', 'continue', 'estimate', 'expect', 'may', 'will', 'project', 'predict', 'potential', 'targeting', 'intend', 'could', 'might', 'should', 'believe', 'forecast' or similar words suggesting future outcomes, are forward-looking statements or forward-looking information within the meaning of applicable securities laws (collectively, 'forward-looking statements'). In particular, forward-looking statements in this press release include, but are not limited to, statements with respect to the expectations regarding trends in, and prospects of, the global oil and gas industry; activity, demand, utilization and outlook for the Company's continuing operations, including the potential impacts of, and mitigation strategies for, the trade tariffs implemented by the U.S. and Canada on the Company's North American segment and the strong activity and profitability outlook for the Argentina segment; the supply and demand fundamentals of the pressure pumping industry; input costs, margin and service pricing trends and strategies; operating and financing strategies, performance, priorities, metrics and estimates, including the Company's ability to repatriate cash from Argentina and the timing thereof; the Company's Russian segment, including the planned sale of the Russian division; the Company's service quality and competitive position; capital investment plans, including the progress of the Company's fleet modernization plan in North America and planned wireline investments to bolster the Company's service offering in Argentina; and the Company's expectations and intentions with respect to the foregoing. These statements are derived from certain assumptions and analyses made by the Company based on its experience and perception of historical trends, current conditions, expected future developments and other factors that it believes are appropriate in the circumstances, including, but not limited to, the economic and political environment in which the Company operates, including the continued implementation of Argentina economic reforms and liberalization of its oil and gas industry as well as the current state of the trade war between Canada and the U.S. and its expected impact on the pressure pumping market in North America; the Company's expectations for its customers' capital budgets, demand for services and geographical areas of focus; the level of merger and acquisition activity among oil and gas producers and its impact on the demand for well completion services; the anticipated effects of artificial intelligence power requirements and the commissioning of liquified natural gas terminals on supply and demand fundamentals for oil and natural gas; the ability of newly deployed Tier IV DGB pumping units to achieve manufacturer claims with respect to operational performance, diesel displacement and costs savings in the field; the effect of environmental, social and governance factors on customer and investor preferences and capital deployment; the status of the military conflict in the Ukraine and related Canadian, United States and international sanctions and restrictions involving Russia and counter-sanctions, restrictions, and political measures that may be undertaken in respect of the Company's ownership and planned sale of the Russian division; industry equipment levels including the number of active fracturing fleets marketed by the Company's competitors and the timing of deployment of the Company's fleet upgrades; the continued effectiveness of cost reduction measures instituted by the Company; the Company's existing contracts and the status of current negotiations with key customers and suppliers; and the likelihood that the current tax and regulatory regime will remain substantially unchanged. Forward-looking statements are subject to a number of known and unknown risks and uncertainties that could cause actual results to differ materially from the Company's expectations. Such risk factors include but are not limited to: (A) industry risks, including but not limited to, global economic conditions and the level of exploration, development and production for oil and natural gas in North America and Argentina; a shift in strategy by exploration and production companies prioritizing shareholders returns over production growth; excess equipment levels; impacts of conservation measures and technological advances on the demand for the Company's services; an intensely competitive oilfield services industry; and hazards inherent in the industry; (B) geopolitical risks, including but not limited to, the impacts of the trade war between Canada and United States; foreign operations exposure, including risks relating to repatriation of cash from foreign jurisdictions, unsettled political conditions, war, foreign exchange rates and controls; and risks that the sale of the discontinued operations in Russia may not occur or may be delayed; (C) financial risks, including but not limited to, restrictions on the Company's access to capital, including the impacts of covenants under the Company's lending documents; direct and indirect exposure to volatile credit markets, including interest rate risk; fluctuations in currency exchange rates; price escalation and availability of raw materials, diesel fuel and component parts; actual results which are materially different from management estimates and assumptions; the Company's access to capital and common share price given a significant number of common shares are controlled by two directors of the Company; possible dilution from outstanding stock-based compensation, additional equity or debt securities; and changes in tax rates or reassessment risk by tax authorities; (D) business operations risks, including but not limited to, fleet reinvestment risk, including the ability of the Company to finance the capital necessary for equipment upgrades to support its operational needs while meeting government and customer requirements and preferences; risks of delays and quality of equipment due to Company's reliance on equipment manufacturers, suppliers and fabricators; seasonal volatility; constrained demand for the Company's services due to merger and acquisition activity; a concentrated customer base; cybersecurity risks; difficulty retaining, replacing or adding personnel; failure to continuously improve equipment, proprietary fluid chemistries and other products and services; climate change; failure to maintain safety standards and records; improper access to confidential information; failure to effectively and timely address the energy transition; risks of various types of activism; and failure to realize anticipated benefits of acquisitions and dispositions; (E) legal and regulatory risks, including but not limited to, federal, provincial and state legislative and regulatory initiatives and laws; health, safety and environmental laws and regulations; the direct and indirect costs of various existing and proposed climate change regulations; and legal and administrative proceedings. Further information about these and other risks and uncertainties may be found under the heading 'Business Risks' above. Consequently, all of the forward-looking statements made in this press release are qualified by these cautionary statements and there can be no assurance that actual results or developments anticipated by the Company will be realized, or that they will have the expected consequences or effects on the Company or its business or operations. These statements speak only as of the respective date of this press release or the documents incorporated by reference herein. The Company assumes no obligation to update publicly any such forward-looking statements, whether as a result of new information, future events or otherwise, except as required pursuant to applicable securities laws. For further information, please contact:
Yahoo
05-05-2025
- Business
- Yahoo
Owning 49% shares,institutional owners seem interested in Calfrac Well Services Ltd. (TSE:CFW),
Institutions' substantial holdings in Calfrac Well Services implies that they have significant influence over the company's share price 50% of the business is held by the top 3 shareholders Recent purchases by insiders Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. To get a sense of who is truly in control of Calfrac Well Services Ltd. (TSE:CFW), it is important to understand the ownership structure of the business. We can see that institutions own the lion's share in the company with 49% ownership. Put another way, the group faces the maximum upside potential (or downside risk). Because institutional owners have a huge pool of resources and liquidity, their investing decisions tend to carry a great deal of weight, especially with individual investors. Hence, having a considerable amount of institutional money invested in a company is often regarded as a desirable trait. In the chart below, we zoom in on the different ownership groups of Calfrac Well Services. View our latest analysis for Calfrac Well Services Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index. Calfrac Well Services already has institutions on the share registry. Indeed, they own a respectable stake in the company. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Calfrac Well Services' historic earnings and revenue below, but keep in mind there's always more to the story. Hedge funds don't have many shares in Calfrac Well Services. The company's largest shareholder is G2s2 Capital Inc., with ownership of 34%. For context, the second largest shareholder holds about 10% of the shares outstanding, followed by an ownership of 6.2% by the third-largest shareholder. Ronald Mathison, who is the second-largest shareholder, also happens to hold the title of Top Key Executive. After doing some more digging, we found that the top 3 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions. While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future. The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO. Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group. Our most recent data indicates that insiders own a reasonable proportion of Calfrac Well Services Ltd.. Insiders own CA$45m worth of shares in the CA$285m company. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling. The general public-- including retail investors -- own 36% stake in the company, and hence can't easily be ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders. I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. To that end, you should learn about the 3 warning signs we've spotted with Calfrac Well Services (including 1 which shouldn't be ignored) . But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
18-04-2025
- Business
- Yahoo
TSX Penny Stock Highlights Calfrac Well Services And Two More Compelling Picks
The Canadian market has shown resilience, with the TSX rising over 2% recently, even as global markets grapple with tariff uncertainties and economic pressures. In such a climate, investors often look beyond the larger indices to find opportunities in lesser-known areas like penny stocks. Although the term "penny stocks" might seem outdated, these smaller or newer companies can offer significant potential for growth when backed by strong financials and sound fundamentals. Name Share Price Market Cap Financial Health Rating Westbridge Renewable Energy (TSXV:WEB) CA$0.61 CA$61.7M ★★★★★★ NTG Clarity Networks (TSXV:NCI) CA$1.69 CA$69.98M ★★★★★★ Orezone Gold (TSX:ORE) CA$1.31 CA$685.19M ★★★★★☆ Dynacor Group (TSX:DNG) CA$4.70 CA$198.39M ★★★★★★ Amerigo Resources (TSX:ARG) CA$1.69 CA$282.4M ★★★★★☆ PetroTal (TSX:TAL) CA$0.57 CA$521.69M ★★★★★☆ McCoy Global (TSX:MCB) CA$2.66 CA$70.94M ★★★★★★ Findev (TSXV:FDI) CA$0.48 CA$13.18M ★★★★★★ BluMetric Environmental (TSXV:BLM) CA$1.21 CA$43.57M ★★★★★★ Enterprise Group (TSX:E) CA$1.26 CA$98.46M ★★★★★☆ Click here to see the full list of 930 stocks from our TSX Penny Stocks screener. Underneath we present a selection of stocks filtered out by our screen. Simply Wall St Financial Health Rating: ★★★★☆☆ Overview: Calfrac Well Services Ltd., along with its subsidiaries, offers specialized oilfield services in Canada, the United States, and Argentina, and has a market cap of CA$292.88 million. Operations: The company generates its revenue primarily from oil well equipment and services, amounting to CA$1.57 billion. Market Cap: CA$292.88M Calfrac Well Services, with a market cap of CA$292.88 million, recently reported a net loss for Q4 2024 amid declining sales. The company has seen significant debt reduction over the past five years, yet its current net debt to equity ratio remains high at 42.4%. While short-term and long-term liabilities are covered by assets, interest payments are not well covered by earnings. Recent executive changes could impact future strategy and operations. Despite negative earnings growth last year, Calfrac is forecasted to grow profits modestly at 4.61% annually moving forward in the competitive energy services sector. Click here to discover the nuances of Calfrac Well Services with our detailed analytical financial health report. Review our growth performance report to gain insights into Calfrac Well Services' future. Simply Wall St Financial Health Rating: ★★★★★★ Overview: Eupraxia Pharmaceuticals Inc. is a clinical stage biotechnology company focused on discovering, developing, and marketing technologies in the biotechnology sector, with a market cap of CA$159.17 million. Operations: Eupraxia Pharmaceuticals Inc. has not reported any specific revenue segments. Market Cap: CA$159.17M Eupraxia Pharmaceuticals Inc., with a market cap of CA$159.17 million, remains pre-revenue as it focuses on clinical trials for innovative treatments like EP-104GI and EP-104IAR. Despite its unprofitable status, the company reported a reduced net loss of US$25.5 million for 2024 compared to the previous year. Eupraxia is debt-free, with short-term assets significantly exceeding liabilities and a cash runway extending over a year. Recent executive changes include appointing Alex Rothwell as CFO, potentially enhancing financial strategy given his extensive capital markets experience. The management team has an average tenure of 2.4 years, indicating moderate experience levels amidst ongoing development efforts. Get an in-depth perspective on Eupraxia Pharmaceuticals' performance by reading our balance sheet health report here. Assess Eupraxia Pharmaceuticals' future earnings estimates with our detailed growth reports. Simply Wall St Financial Health Rating: ★★★★★☆ Overview: Amex Exploration Inc., along with its subsidiaries, focuses on exploring gold mining properties in Canada and has a market capitalization of CA$108.82 million. Operations: Amex Exploration Inc. does not report any specific revenue segments, as it is primarily focused on the exploration of gold mining properties in Canada. Market Cap: CA$108.82M Amex Exploration Inc., with a market cap of CA$108.82 million, is pre-revenue, focusing on gold exploration. The company has achieved profitability recently, though its Return on Equity remains low at 1.1%. Amex's strategic expansion includes acquiring the Perron West Project, significantly increasing its land holdings and exploration potential in Quebec and Ontario. Recent drill results from the Perron Project indicate promising mineralization extensions in the Central Polymetallic Zone. Despite short-term assets exceeding liabilities, long-term liabilities are not fully covered by current assets. With no debt and a seasoned management team, Amex continues to pursue aggressive exploration strategies to enhance resource potential. Dive into the specifics of Amex Exploration here with our thorough balance sheet health report. Evaluate Amex Exploration's prospects by accessing our earnings growth report. Access the full spectrum of 930 TSX Penny Stocks by clicking on this link. Looking For Alternative Opportunities? We've found 25 US stocks that are forecast to pay a dividend yeild of over 6% next year. See the full list for free. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include TSX:CFW TSX:EPRX and TSXV:AMX. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Sign in to access your portfolio
