Calfrac Reports Strong Second Quarter 2025 Results
CALGARY, Alberta, Aug. 08, 2025 (GLOBE NEWSWIRE) -- Calfrac Well Services Ltd. (“Calfrac” or “the Company”) (TSX: CFW) announces its financial and operating results for the three and six months ended June 30, 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 June 30, 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 www.sedarplus.ca, including the Company’s Annual Information Form for the year ended December 31, 2024.
CFO’S MESSAGE
Calfrac generated Adjusted EBITDA of $77.0 million during the second quarter in 2025, a 39 percent increase from the first quarter in 2025, primarily due to improved utilization and financial performance in North America. The Company’s Argentina operations also delivered another very strong quarter, building on the positive momentum from its record first-quarter.
Calfrac successfully amended the Company’s revolving credit facility agreement, including the addition of a $120.0 million delay draw term facility (“Term Loan”), and while the Company continues to evaluate its optimal financing strategy, this Term Loan provides additional flexibility to repay its Second Lien Notes prior to their maturity in 2026. Management also continues to maintain a stringent focus on cost management and prudent capital allocation throughout the current cycle to deliver on its strategic priorities, including the reduction of long-term debt over the next couple of years.
Calfrac’s Chief Financial Officer, Mike Olinek commented: “I am very pleased with the strong financial performance demonstrated by Calfrac’s teams in both North America and Argentina during the second quarter despite the current macroeconomic challenges affecting the global economy. The Company’s second unconventional fracturing fleet in Argentina continues to gain further traction and we are excited about our ability to capture future growth opportunities in that market. Calfrac has recently taken steps to reduce its operating footprint in North America to ten fleets as customer activity is expected to soften in the second half of the year, but I am confident that the demand for our next-generation Dynamic Gas Blending fleets will continue to remain strong. The completion of the Company’s North American fleet modernization program during the second quarter combined with normal seasonality is expected to result in robust cash flow throughout the remainder of the year which will be used to reduce long-term debt.”
SELECT FINANCIAL HIGHLIGHTS – CONTINUING OPERATIONS
|
Three Months Ended Jun. 30, |
Six Months Ended Jun. 30, |
|||||||
| 2025 | 2024 | Change | 2025 | 2024 | Change | |||
| (C$000s, except per share amounts) | ($) | ($) | (% | ) | ($) | ($) | (% | ) |
| (unaudited) | ||||||||
| Revenue | 402,291 | 426,047 | (6 | ) | 772,348 | 756,143 | 2 | |
| Adjusted EBITDA(1) | 76,977 | 65,386 | 18 | 132,294 | 91,443 | 45 | ||
| Cash flows provided by operating activities | 73,548 | 9,041 | 713 | 66,498 | 20,999 | 217 | ||
| Capital expenditures | 40,834 | 66,753 | (39 | ) | 82,966 | 114,825 | (28 | ) |
| Net income | 15,325 | 24,549 | (38 | ) | 23,121 | 21,646 | 7 | |
| Per share – basic | 0.18 | 0.29 | (38 | ) | 0.27 | 0.25 | 8 | |
| Per share – diluted | 0.18 | 0.29 | (38 | ) | 0.27 | 0.25 | 8 | |
| As at | Jun. 30, | Dec. 31, | Change | ||
| 2025 | 2024 | ||||
| (C$000s) | ($ | ) | ($) | (% | ) |
| (unaudited) | |||||
| Cash and cash equivalents | 51,762 | 44,045 | 18 | ||
| Working capital, calculated as: | |||||
| Excluding cash and cash equivalents and the current portion of long-term debt | 249,751 | 229,856 | 9 | ||
| Including cash and cash equivalents and the current portion of long-term debt | (51,159 | ) | 123,901 | (141 | ) |
| Total assets, end of period | 1,279,175 | 1,234,840 | 4 | ||
| Long-term debt, end of period | 352,672 | 320,908 | 10 | ||
| Net debt(1)(2) | 321,315 | 300,347 | 7 | ||
| Total equity, end of period | 655,814 | 653,330 | — | ||
(1) Refer to “Non-GAAP Measures” on page 7 for further information.
(2) Refer to note 10 of the consolidated interim financial statements for further information.
SECOND QUARTER OVERVIEW
In the second quarter of 2025, the Company:
- generated revenue of $402.3 million, a decrease of 6 percent from the second quarter in 2024 resulting primarily from lower activity and pricing in North America, offset by higher revenue generated in Argentina stemming from the deployment of the Company’s second large fracturing fleet during the first quarter of 2025;
- reported Adjusted EBITDA of $77.0 million versus $65.4 million in the second quarter of 2024 mainly due to a larger operating scale in Argentina as the Company operated an additional unconventional fracturing fleet in the Vaca Muerta shale play during the second quarter of 2025;
- had cash flow from operating activities of $73.5 million versus $9.0 million in the second quarter of 2024. The majority of this increase relates to year-over-year changes in non-cash working capital;
- reported net income from continuing operations of $15.3 million or $0.18 per share diluted compared to net income of $24.5 million or $0.29 per share diluted during the second quarter in 2024. The lower net income was primarily due to an increase in current taxes arising from the improved profitability in Argentina which has a higher effective tax rate;
- recorded $5.4 million of restructuring costs related to district and SG&A personnel across all divisions;
- amended its revolving credit facility on June 27, 2025 to change the definition of Bank EBITDA for the purposes of its financial covenant calculations. The revised Bank EBITDA definition includes EBITDA generated in North America plus any net cash flow repatriated from Argentina. The amendments also reduced the minimum net tangible assets required to be located in North America to $700.0 million. Previously, the agreement required a minimum of $750.0 million or 75 percent of net tangible assets from continuing operations to be located in North America;
- had a cash position of $51.8 million of which over half was held in Argentina, primarily due to large collections of accounts receivable immediately prior to the end of the quarter. The majority of the cash in Argentina was subsequently repatriated to North America in July and used to reduce the outstanding draw on the Company’s revolving credit facilities;
- increased period-end working capital, excluding cash and cash equivalents and the current portion of long-term debt, to $249.8 million from $229.9 million at December 31, 2024, due to higher activity in Argentina; and
- incurred capital expenditures from continuing operations of $40.8 million, which included $24.6 million of expansion capital to support the second unconventional fracturing fleet in Argentina that commenced operations in the first quarter and to complete its fleet modernization program in North America.
Subsequent to the end of the quarter, the Company amended and restated its revolving credit facility agreement to include a new $120.0 million Term Loan, which included an expansion of its lending syndicate to five Canadian financial institutions. This Term Loan is available in a single drawdown until January 15, 2026, and is repayable commencing in the third quarter following the drawdown on the Term Loan in quarterly principal payments in the amount equivalent to equal payments that fully amortize the Term Loan to zero prior to maturity. The Company may also prepay principal without penalty, however, any principal repaid may not be re-drawn. The interest rates for the Term Loan range from 3.75 percent to 4.25 percent above the base rates for CORRA-based loans, and a standby fee of 0.75 percent applies from closing date until the date of the drawdown.
The maturity date of the revolving credit facilities, inclusive of the $215.0 million syndicated facility, $35.0 million operating facility and $120.0 million Term Loan, have been amended and the facilities are now due the earlier of (i) January 15, 2026, the date that is two months prior to the maturity date of the Second Lien Notes, and (ii) July 1, 2028. The drawdown of the Term Loan is subject to certain conditions as set out in the amended and restated revolving credit facility agreement, which is available on the Company’s SEDAR+ profile at www.sedarplus.ca.
FINANCIAL OVERVIEW – CONTINUING OPERATIONS
THREE AND SIX MONTHS ENDED JUNE 30, 2025 VERSUS 2024
NORTH AMERICA
| Three Months Ended Jun. 30, | Six Months Ended Jun. 30, | |||||||
| 2025 | 2024 | Change | 2025 | 2024 | Change | |||
| (C$000s, except operational and exchange rate information) | ($) | ($) | (% | ) | ($) | ($) | (% | ) |
| (unaudited) | ||||||||
| Revenue | 260,012 | 333,521 | (22 | ) | 487,914 | 582,480 | (16 | ) |
| Adjusted EBITDA(1) | 31,902 | 54,399 | (41 | ) | 38,033 | 69,271 | (45 | ) |
| Adjusted EBITDA (%)(1) | 12.3 | 16.3 | (25 | ) | 7.8 | 11.9 | (34 | ) |
| Fracturing revenue per job ($) | 30,874 | 37,348 | (17 | ) | 27,881 | 35,618 | (22 | ) |
| Number of fracturing jobs | 8,208 | 8,709 | (6 | ) | 16,917 | 15,885 | 6 | |
| Active pumping horsepower, end of year (000s) | 877 | 964 | (9 | ) | 877 | 964 | (9 | ) |
| US$/C$ average exchange rate(2) | 1.3841 | 1.3683 | 1 | 1.4094 | 1.3586 | 4 | ||
(1) Refer to “Non-GAAP Measures” on page 7 for further information.
(2) Source: Bank of Canada.
OUTLOOK
The uncertainty caused by geopolitical tensions, OPEC+ supply increases, and shifting United States trade and tariff policies, have resulted in mixed signals regarding the outlook for the global economy, which continues to weigh on near-term crude oil prices. Although these events have not yet triggered a meaningful North American supply response, 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. Completions activity within 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 continues to evaluate the implication of tariffs across its North American operations. The Company has applied for or received tariff exemptions for certain critical items that are sourced from the United States.
Calfrac's previously announced Tier IV fleet modernization program was completed during the second quarter. 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 third quarter, despite the current headwinds. Furthermore, the Company’s go-forward capital expenditure requirements are expected to decrease significantly as growth capital expenditures will be replaced with minimal maintenance capital.
At the end of the second quarter, the Company made the decision to reduce its operating footprint to 10 fleets in North America to align with anticipated activity levels for the remainder of the year. Calfrac also took corresponding measures to reduce its divisional, district and corporate support personnel in North America.
THREE MONTHS ENDED JUNE 30, 2025 COMPARED TO THREE MONTHS ENDED JUNE 30, 2024
REVENUE
Revenue from Calfrac’s North American operations decreased to $260.0 million during the second quarter of 2025 from $333.5 million in the comparable quarter of 2024. The Company’s customers in North America deferred some of their completion programs due to uncertainty around oil prices and tariffs, with the Company’s operations in the Rockies region being the most affected. The Company operated 11 fracturing fleets during the second quarter compared to 13 fleets in the comparable quarter in 2024, and made the decision to further reduce its operating footprint to 10 fleets for the third quarter to match anticipated activity levels. Pricing in North America was lower relative to the comparable quarter in 2024, which contributed to the 22 percent reduction in revenue. Coiled tubing revenue was also lower by 20 percent from the second quarter in 2024 due to a decline in activity and the completion of smaller jobs.
ADJUSTED EBITDA
The Company’s operations in North America generated Adjusted EBITDA of $31.9 million or 12 percent of revenue during the second quarter of 2025 compared to $54.4 million or 16 percent of revenue in the same period in 2024. This decrease was primarily due to the decline in fracturing fleet utilization in the Rockies region and lower pricing. In addition, the Company operated two fewer fleets during the second quarter in 2025 compared to the same quarter in 2024. At the end of the second quarter, the Company took measures to reduce its divisional, district and corporate support personnel in North America to align with the planned reductions to its operating fleet. The costs savings associated with these reductions are expected to materialize beginning in the third quarter.
SIX MONTHS ENDED JUNE 30, 2025 COMPARED TO SIX MONTHS ENDED JUNE 30, 2024
REVENUE
Revenue from Calfrac’s North American operations decreased to $487.9 million during the first six months of 2025 from $582.5 million in the comparable period in 2024. The Company’s North American activity was impacted by extreme cold weather during the first quarter and lower activity during the second quarter due to customers deferring work in response to uncertainty around tariffs and commodity prices. The Company’s client mix was different than the comparable period in 2024 as a larger number of smaller jobs were completed which impacted the reported 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 partially offset the lower revenue experienced in the Rockies. Pricing in North America was lower relative to the comparable period in 2024, which contributed to the 16 percent reduction in revenue. Coiled tubing revenue was consistent with the first half in 2024 as slightly higher activity was offset by the completion of smaller jobs.
ADJUSTED EBITDA
The Company’s operations in North America generated Adjusted EBITDA of $38.0 million during the first six months of 2025 compared to $69.3 million in the comparable period in 2024. This decrease in Adjusted EBITDA was largely driven by lower overall fracturing fleet utilization on a reduced operating footprint, as well as lower overall pricing levels. While utilization improved sequentially from the first quarter of 2025, it was not to the same level as the comparable quarter in 2024.
ARGENTINA
| Three Months Ended Jun. 30, | Six Months Ended Jun. 30, | ||||||
| 2025 | 2024 | Change | 2025 | 2024 | Change | ||
| (C$000s, except operational and exchange rate information) | ($) | ($) | (% | ) | ($) | ($) | (%) |
| (unaudited) | |||||||
| Revenue | 142,279 | 92,526 | 54 | 284,434 | 173,663 | 64 | |
| Adjusted EBITDA(1) | 48,579 | 14,659 | 231 | 101,844 | 30,759 | 231 | |
| Adjusted EBITDA (%)(1) | 34.1 | 15.8 | 116 | 35.8 | 17.7 | 102 | |
| Fracturing revenue per job ($) | 82,667 | 84,510 | (2 | ) | 100,539 | 79,064 | 27 |
| Number of fracturing jobs | 1,009 | 581 | 74 | 1,750 | 1,253 | 40 | |
| Active pumping horsepower, end of period (000s) | 168 | 140 | 20 | 168 | 140 | 20 | |
| US$/C$ average exchange rate(2) |
1.3841 | 1.3683 | 1 | 1.4094 | 1.3586 | 4 | |
(1) Refer to “Non-GAAP Measures” on page 7 for further information.
(2) Source: Bank of Canada.
OUTLOOK
Argentina continued to demonstrate year-over-year operational and financial improvement by achieving record six-month financial performance during the first half of 2025. Calfrac expects its full-year financial results in Argentina will be very strong, but activity levels are anticipated to decline in the second half of the year due to budget exhaustion in the Vaca Muerta shale play. The Company performed spot work with its second large fracturing fleet in Neuquén during the first half of 2025; however, utilization of this fleet is expected to be lower during the remainder of the year.
The completion of the Company’s 2025 capital program in Argentina will add in-house wireline capabilities that were previously subcontracted and will further bolster Calfrac’s service offering in the Vaca Muerta shale play. The stability of the Argentine peso and the reformed cash repatriation regime has allowed Calfrac to transfer approximately US$24.0 million to North America in July, which has been used to repay a portion of the draw on the Company’s revolving credit facilities.
THREE MONTHS ENDED JUNE 30, 2025 COMPARED TO THREE MONTHS ENDED JUNE 30, 2024
REVENUE
Calfrac’s Argentinean operations generated revenue of $142.3 million during the second quarter of 2025 versus $92.5 million in the comparable quarter in 2024. The 54 percent increase in revenue was driven by the Company’s expanded operating scale in the Vaca Muerta shale play as it deployed a second unconventional fracturing fleet in the first quarter of 2025. The Company’s coiled tubing and cementing service lines also experienced year-over-year growth in activity and, as a result, Calfrac permanently transferred equipment from Las Heras to Neuquén following the completion of a long-term contract to further expand its capabilities in the Vaca Muerta.
ADJUSTED EBITDA
The Company’s operations in Argentina generated Adjusted EBITDA of $48.6 million during the second quarter of 2025 compared to $14.7 million in the same quarter of 2024, while the Company’s Adjusted EBITDA margins increased to 34 percent from 16 percent. This increase was primarily due to the significant revenue growth and efficiencies resulting from operating two unconventional fracturing fleets simultaneously during the second quarter as well as slightly higher pricing for spot work. In addition, the Company received a non-recurring payment of $3.4 million related to a temporary sub-contracting arrangement.
SIX MONTHS ENDED JUNE 30, 2025 COMPARED TO SIX MONTHS ENDED JUNE 30, 2024
REVENUE
Calfrac’s Argentinean operations generated revenue of $284.4 million during the first six months of 2025 versus $173.7 million in the comparable period in 2024. The 64 percent increase in revenue was primarily due to the commencement of the Company’s second unconventional fracturing fleet in the Vaca Muerta shale play during the first quarter of 2025. This new fracturing fleet in Argentina operated on a spot basis during the first six months of the year and delivered strong operating and financial performance. The Company also demonstrated growth in activity across its other service lines as the Company permanently transferred equipment from Las Heras to Neuquén to meet growing demand from unconventional completions activity in the Vaca Muerta shale play.
ADJUSTED EBITDA
The Company’s operations in Argentina generated Adjusted EBITDA of $101.8 million or 36 percent of revenue during the first six months of 2025 versus $30.8 million or 18 percent of revenue in the comparable period in 2024. This increase was primarily due to the change in operating scale in the Vaca Muerta shale play and higher spot pricing during the first six months of 2025.
SUMMARY OF QUARTERLY RESULTS – CONTINUING OPERATIONS
| Three Months Ended | Sep. 30, | Dec. 31, | Mar. 31, | Jun. 30, | Sep. 30, | Dec. 31, | Mar. 31, | Jun. 30, | |||
| 2023 | 2023 | 2024 | 2024 | 2024 | 2024 | 2025 | 2025 | ||||
| (C$000s, except per share and operating data) | ($) | ($) | ($ | ) | ($) | ($ | ) | ($ | ) | ($) | ($) |
| (unaudited) | |||||||||||
| Financial | |||||||||||
| Revenue | 483,093 | 421,402 | 330,096 | 426,047 | 430,109 | 381,230 | 370,057 | 402,291 | |||
| Adjusted EBITDA(1) | 91,286 | 62,591 | 26,057 | 65,386 | 65,039 | 34,512 | 55,317 | 76,977 | |||
| Net income (loss) | 97,523 | 13,202 | (2,903 | ) | 24,549 | (6,687 | ) | (6,424 | ) | 7,796 | 15,325 |
| Per share – basic | 1.20 | 0.16 | (0.03 | ) | 0.29 | (0.08 | ) | (0.07 | ) | 0.09 | 0.18 |
| Per share – diluted | 1.09 | 0.15 | (0.03 | ) | 0.29 | (0.08 | ) | (0.07 | ) | 0.09 | 0.18 |
| Capital expenditures | 50,825 | 49,397 | 48,072 | 66,753 | 22,509 | 32,955 | 42,132 | 40,834 | |||
(1) Refer to “Non-GAAP Measures” on page 7 for further information.
CAPITAL EXPENDITURES – CONTINUING OPERATIONS
| Three Months Ended Jun. 30, | Six Months Ended Jun. 30, | |||||||
| 2025 | 2024 | Change | 2025 | 2024 | Change | |||
| (C$000s) | ($) | ($) | (% | ) | ($) | ($) | (% | ) |
| North America | 28,382 | 58,340 | (51 | ) | 41,323 | 95,514 | (57 | ) |
| Argentina | 12,452 | 8,413 | 48 | 41,643 | 19,311 | 116 | ||
| Continuing Operations | 40,834 | 66,753 | (39 | ) | 82,966 | 114,825 | (28 | ) |
Capital expenditures were $40.8 million for the three months ended June 30, 2025, which included $24.6 million of expansion capital to support the second unconventional fracturing fleet in Argentina that commenced operations in the first quarter and to complete its fleet modernization program in North America, versus $66.8 million in the comparable period in 2024.
Calfrac’s Board of Directors approved a 2025 capital budget totalling approximately $135.0 million plus an additional $30.0 million of capital commitments that were delayed from the Company’s 2024 capital program. As a result of reductions to the Company’s North American operating footprint made during the second quarter, capital expenditures in 2025 are expected to decrease from $165.0 million to $145.0 million due to lower maintenance capital requirements.
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 International Financial Reporting Standards (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 Jun. 30, |
Six Months Ended Jun. 30, |
|||||||
| 2025 | 2024 | 2025 | 2024 | |||||
| (C$000s) | ($ | ) | ($ | ) | ($ | ) | ($ | ) |
| (unaudited) | ||||||||
| Net income from continuing operations | 15,325 | 24,549 | 23,121 | 21,646 | ||||
| Add back (deduct): | ||||||||
| Depreciation | 32,451 | 28,033 | 64,373 | 56,028 | ||||
| Foreign exchange losses (gains) | 6,543 | (435 | ) | 8,236 | (1,484 | ) | ||
| Loss (gain) on disposal of property, plant and equipment | 901 | (143 | ) | 1,025 | (6,384 | ) | ||
| Restructuring charges | 5,380 | 1,407 | 5,896 | 1,407 | ||||
| Stock-based compensation | — | 2,118 | (925 | ) | 4,303 | |||
| Interest, net | 7,961 | 7,894 | 15,905 | 13,926 | ||||
| Income taxes | 8,416 | 1,963 | 14,663 | 2,001 | ||||
| Adjusted EBITDA from continuing operations | 76,977 | 65,386 | 132,294 | 91,443 | ||||
| Less: IFRS 16 lease payments | (2,990 | ) | (3,216 | ) | (6,669 | ) | (6,451 | ) |
| Less: Bank EBITDA adjustments(1) | (42,317 | ) | (3,148 | ) | (81,761 | ) | (8,576 | ) |
| Bank EBITDA for covenant purposes | 31,670 | 59,022 | 43,864 | 76,416 | ||||
(1) Refer to note 4 of the Company’s interim consolidated financial statements for the three and six months ended June 30, 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.
WORKING CAPITAL
Working capital is calculated as total current assets less total current liabilities. The Company has also provided a separate calculation of working capital that excludes cash and cash equivalents as well as the current portion of long-term debt as management believes this is a useful liquidity measure for investors and other stakeholders.
BUSINESS RISKS
The business of Calfrac is subject to certain risks and uncertainties. Prior to making any investment decision regarding Calfrac, investors should carefully consider, among other things, the risk factors set forth in the Company’s most recently filed Annual Information Form under the heading “Risk Factors” which is available on the SEDAR+ website at www.sedarplus.ca under the Company’s profile. Copies of the Annual Information Form may also be obtained on request without charge from Calfrac at Suite 500, 407 - 8th Avenue S.W., Calgary, Alberta, Canada, T2P 1E5, or at www.calfrac.com.
ADDITIONAL INFORMATION
Calfrac's common shares are publicly traded on the Toronto Stock Exchange under the trading symbol "CFW".
Calfrac provides specialized oilfield services to exploration and production companies designed to increase the production of hydrocarbons from wells with continuing operations focused throughout western Canada, the United States and Argentina. During the first quarter of 2022, management committed to a plan to sell the Company’s Russian division, resulting in the associated assets and liabilities being classified as held for sale and presented in the Company’s financial statements as discontinued operations. The results of the Company’s discontinued operations are excluded from the discussion and figures presented above unless otherwise noted. See Note 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 www.calfrac.com or under the Company’s public filings found at www.sedarplus.ca.
CONSOLIDATED BALANCE SHEETS
| June 30, | December 31, | |||
| 2025 | 2024 | |||
| (C$000s) | ($ | ) | ($ | ) |
| ASSETS | ||||
| Current assets | ||||
| Cash and cash equivalents | 51,762 | 44,045 | ||
| Accounts receivable | 324,375 | 251,108 | ||
| Inventories | 114,325 | 145,506 | ||
| Prepaid expenses and deposits | 19,296 | 26,452 | ||
| Derivative asset | 193 | — | ||
| 509,951 | 467,111 | |||
| Assets classified as held for sale | 54,304 | 45,335 | ||
| 564,255 | 512,446 | |||
| Non-current assets | ||||
| Property, plant and equipment | 668,177 | 673,381 | ||
| Right-of-use assets | 17,743 | 20,013 | ||
| Deferred income tax assets | 29,000 | 29,000 | ||
| 714,920 | 722,394 | |||
| Total assets | 1,279,175 | 1,234,840 | ||
| LIABILITIES AND EQUITY | ||||
| Current liabilities | ||||
| Accounts payable and accrued liabilities | 176,300 | 173,974 | ||
| Income taxes payable | 24,068 | 9,700 | ||
| Current portion of long-term debt | 352,672 | 150,000 | ||
| Current portion of lease obligations | 8,070 | 9,536 | ||
| 561,110 | 343,210 | |||
| Liabilities directly associated with assets classified as held for sale | 40,661 | 30,945 | ||
| 601,771 | 374,155 | |||
| Non-current liabilities | ||||
| Long-term debt | — | 170,908 | ||
| Lease obligations | 12,335 | 13,948 | ||
| Deferred income tax liabilities | 9,255 | 22,499 | ||
| 21,590 | 207,355 | |||
| Total liabilities | 623,361 | 581,510 | ||
| Capital stock | 911,900 | 911,785 | ||
| Contributed surplus | 76,190 | 77,159 | ||
| Accumulated deficit | (359,072 | ) | (379,490 | ) |
| Accumulated other comprehensive income | 26,796 | 43,876 | ||
| Total equity | 655,814 | 653,330 | ||
| Total liabilities and equity | 1,279,175 | 1,234,840 | ||
CONSOLIDATED STATEMENTS OF OPERATIONS
|
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||
| 2025 | 2024 | 2025 | 2024 | |||||
| (C$000s, except per share data) | ($ | ) | ($ | ) | ($ | ) | ($ | ) |
| Revenue | 402,291 | 426,047 | 772,348 | 756,143 | ||||
| Cost of sales | 347,180 | 375,238 | 677,756 | 691,446 | ||||
| Gross profit | 55,111 | 50,809 | 94,592 | 64,697 | ||||
| Expenses | ||||||||
| Selling, general and administrative | 15,965 | 16,981 | 31,642 | 34,992 | ||||
| Foreign exchange losses (gains) | 6,543 | (435 | ) | 8,236 | (1,484 | ) | ||
| Loss (gain) on disposal of property, plant and equipment | 901 | (143 | ) | 1,025 | (6,384 | ) | ||
| Interest, net | 7,961 | 7,894 | 15,905 | 13,926 | ||||
| 31,370 | 24,297 | 56,808 | 41,050 | |||||
| Income before income tax | 23,741 | 26,512 | 37,784 | 23,647 | ||||
| Income tax expense (recovery) | ||||||||
| Current | 12,977 | 3,397 | 27,217 | 9,811 | ||||
| Deferred | (4,561 | ) | (1,434 | ) | (12,554 | ) | (7,810 | ) |
| 8,416 | 1,963 | 14,663 | 2,001 | |||||
| Net income from continuing operations | 15,325 | 24,549 | 23,121 | 21,646 | ||||
| Net loss from discontinued operations | (522 | ) | (1,460 | ) | (2,703 | ) | (710 | ) |
| Net income | 14,803 | 23,089 | 20,418 | 20,936 | ||||
| Earnings (loss) per share – basic | ||||||||
| Continuing operations | 0.18 | 0.29 | 0.27 | 0.25 | ||||
| Discontinued operations | (0.01 | ) | (0.02 | ) | (0.03 | ) | (0.01 | ) |
| 0.17 | 0.27 | 0.24 | 0.24 | |||||
| Earnings (loss) per share – diluted | ||||||||
| Continuing operations | 0.18 | 0.29 | 0.27 | 0.25 | ||||
| Discontinued operations | (0.01 | ) | (0.02 | ) | (0.03 | ) | (0.01 | ) |
| 0.17 | 0.27 | 0.24 | 0.24 | |||||
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||
| 2025 | 2024 | 2025 | 2024 | |||||
| (C$000s) | ($ | ) | ($ | ) | ($ | ) | ($ | ) |
| CASH FLOWS PROVIDED BY (USED IN) | Restated | Restated | ||||||
| OPERATING ACTIVITIES | ||||||||
| Net income | 15,325 | 24,549 | 23,121 | 21,646 | ||||
| Adjusted for the following: | ||||||||
| Depreciation | 32,451 | 28,033 | 64,373 | 56,028 | ||||
| Stock-based compensation | — | 2,118 | (925 | ) | 4,303 | |||
| Net gain on foreign currency forwards not qualifying as hedges | (193 | ) | — | (193 | ) | — | ||
| Unrealized foreign exchange losses | 8,563 | 1,288 | 10,409 | 3,915 | ||||
| Loss (gain) on disposal of property, plant and equipment | 901 | (143 | ) | 1,025 | (6,384 | ) | ||
| Interest | 7,961 | 7,894 | 15,905 | 13,926 | ||||
| Interest paid | (3,373 | ) | (2,852 | ) | (16,089 | ) | (12,569 | ) |
| Deferred income taxes | (4,561 | ) | (1,434 | ) | (12,554 | ) | (7,810 | ) |
| Changes in non-cash working capital | 16,474 | (50,412 | ) | (18,574 | ) | (52,056 | ) | |
| Cash flows provided by operating activities from continuing operations | 73,548 | 9,041 | 66,498 | 20,999 | ||||
| Cash flows provided by (used in) operating activities from discontinued operations | 1,202 | 5,989 | 11,433 | (2,196 | ) | |||
| Net cash flows provided by operating activities | 74,750 | 15,030 | 77,931 | 18,803 | ||||
| INVESTING ACTIVITIES | ||||||||
| Purchase of property, plant and equipment | (43,271 | ) | (65,051 | ) | (81,769 | ) | (120,778 | ) |
| Proceeds on disposal of property, plant and equipment | 1,412 | 293 | 2,965 | 11,801 | ||||
| Proceeds on disposal of right-of-use assets | 489 | 101 | 695 | 328 | ||||
| Cash flows used in investing activities from continuing operations | (41,370 | ) | (64,657 | ) | (78,109 | ) | (108,649 | ) |
| Cash flows used in investing activities from discontinued operations | (4,844 | ) | (483 | ) | (6,301 | ) | (1,161 | ) |
| Net cash flows used in investing activities | (46,214 | ) | (65,140 | ) | (84,410 | ) | (109,810 | ) |
| FINANCING ACTIVITIES | ||||||||
| Issuance of long-term debt, net of debt issuance costs | 20,000 | 44,987 | 50,000 | 104,987 | ||||
| Long-term debt repayments | — | — | (10,000 | ) | — | |||
| Lease obligation principal repayments | (2,553 | ) | (2,827 | ) | (5,797 | ) | (5,667 | ) |
| Proceeds on issuance of common shares from the exercise of stock options | — | 283 | 71 | 283 | ||||
| Cash flows provided by financing activities from continuing operations | 17,447 | 42,443 | 34,274 | 99,603 | ||||
| Cash flows provided by financing activities from discontinued operations | — | — | — | — | ||||
| Net cash flows provided by financing activities | 17,447 | 42,443 | 34,274 | 99,603 | ||||
| Effect of exchange rate changes on cash and cash equivalents | (13,431 | ) | 349 | (12,881 | ) | (1,115 | ) | |
| Increase (decrease) in cash and cash equivalents | 32,552 | (7,318 | ) | 14,914 | 7,481 | |||
| Cash and cash equivalents, beginning of period | 33,138 | 59,989 | 50,776 | 45,190 | ||||
| Cash and cash equivalents, end of period | 65,690 | 52,671 | 65,690 | 52,671 | ||||
| Included in the cash and cash equivalents per the balance sheet | 51,762 | 43,655 | ||||||
| Included in the assets held for sale/discontinued operations | 13,928 | 9,016 | ||||||
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 Company’s debt, liquidity and financial position, including with respect to a refinancing of the Company’s revolving credit facility agreement and the Company’s ability to repay its Second Lien Notes; 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 strategic priorities to reduce debt, to manage its cost structure and prudently deploy capital to maximize long-term returns to shareholders; 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 wireline investments in Argentina and an expected reduction in growth and maintenance capital; 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 continued 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:
Mike Olinek, Chief Financial Officer
Telephone: 403-266-6000
www.calfrac.com
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