CALGARY, Alberta, May 07, 2024 (GLOBE NEWSWIRE) -- Calfrac Well Services Ltd. ("Calfrac" or "the Company") (TSX:CFW) announces its financial and operating results for the three months ended March 31, 2024. The following press release should be read in conjunction with the management's discussion and analysis and interim consolidated financial statements and notes thereto as at March 31, 2024. Readers should also refer to the "Forward-looking statements" legal advisory and the section regarding "Non-GAAP Measures" at the end of this press release. All financial amounts and measures are expressed in Canadian dollars unless otherwise indicated. Additional information about Calfrac is available on the SEDAR+ website at www.sedarplus.ca, including the Company's Annual Information Form for the year ended December 31, 2023. CEO'S MESSAGECalfrac's financial results were lower than the same period last year primarily due to lower utilization in North America as several customers in the Rockies region chose to defer work out of the winter months into subsequent quarters. Low natural gas prices also contributed to the reduction in completions activity across the industry. As a result, Calfrac idled two fracturing fleets in North America during the first quarter and will only reactivate fleets at pricing levels that generate an adequate return on capital. The Company continued to safely and efficiently execute during the first quarter and reduced its trailing twelve-month Total Recordable Injury Frequency ("TRIF") from 1.05, as it exited 2023, to 0.87 as of March 31, 2024, which was the lowest in recent history. Calfrac's Chief Executive Officer, Pat Powell commented: "I want to commend the Calfrac team for demonstrating their commitment to safe and efficient operations throughout the first quarter. I am looking forward to the remainder of the year as we expect strong utilization in North America and Argentina to drive strong returns for our shareholders." SELECT FINANCIAL HIGHLIGHTS – CONTINUING OPERATIONS   Three Months Ended Mar. 31,     2024   2023   Change   (C$000s, except per share amounts) ($)   ($)   (%)   (unaudited)         Revenue 330,096   493,323   (33 ) Adjusted EBITDA(1) 26,057   83,794   (69 ) Consolidated cash flows provided by operating activities 3,773   40,894   (91 ) Capital expenditures 48,072   34,474   39   Net (loss) income (2,903 ) 36,313   (108 ) Per share – basic (0.03 ) 0.45   (107 ) Per share – diluted (0.03 ) 0.41   (107 ) As at Mar. 31,   Dec. 31,   Change     2024   2023       (C$000s) ($)   ($)   (%)   (unaudited)             Cash and cash equivalents 58,239   34,140   71   Working capital, end of period 273,712   236,392   16   Total assets, end of period 1,166,363   1,126,197   4   Long-term debt, end of period 314,948   250,777   26   Net debt(2) 280,677   241,065   16   Total consolidated equity, end of period 623,743   615,903   1   (1) Refer to "Non-GAAP Measures" on page 6 for further information.(2) Refer to note 10 of the consolidated interim financial statements for further information. During the quarter, Calfrac: generated revenue of $330.1 million, a decrease of 33 percent from the first quarter in 2023 resulting primarily from reduced activity in North America offset partially by higher activity in Argentina; reported Adjusted EBITDA of $26.1 million versus $83.8 million in the first quarter of 2023; reported a net loss from continuing operations of $2.9 million or $0.03 per share diluted compared to net income of $36.3 million or $0.41 per share diluted during the first quarter in 2023; idled two fracturing fleets in North America in response to lower activity due to the impact of lower natural gas prices and the deferral of customer work programs in the Rockies region into subsequent quarters; disposed of a non-core real estate asset in North America for net proceeds of $11.4 million which generated a gain on sale of $5.9 million; had a cash position of $58.2 million of which approximately 60 percent was held in Argentina. The Argentina cash balance includes an investment of US$18.0 million in Argentinean government bonds (Bopreal Bonds) that will allow for the repatriation of cash to Canada beginning in July 2024 over a 12-month period; reported an increase in period-end working capital to $273.7 million from $236.4 million at December 31, 2023, primarily due to the investment in Bopreal Bonds and higher inventory requirements; and incurred capital expenditures of $48.1 million, which included approximately $28.4 million related to the Company's fracturing fleet modernization program. FINANCIAL OVERVIEW – CONTINUING OPERATIONSTHREE MONTHS ENDED MARCH 31, 2024 VERSUS 2023 NORTH AMERICA   Three Months Ended Mar. 31,     2024   2023   Change   (C$000s, except operational and exchange rate information) ($)   ($)   (%)   (unaudited)           Revenue 248,959   413,047   (40 ) Adjusted EBITDA(1) 14,872   76,487   (81 ) Adjusted EBITDA (%) 6.0   18.5   (68 ) Fracturing revenue per job ($) 33,518   43,237   (22 ) Number of fracturing jobs 7,176   9,223   (22 ) Active pumping horsepower, end of year (000s) 951   1,017   (6 ) US$/C$ average exchange rate(2) 1.3486   1.3526   —   (1) Refer to "Non-GAAP Measures" on page 6 for further information.(2) Source: Bank of Canada. OUTLOOKActivity has significantly improved in the second quarter with the Company currently operating 12 fracturing fleets and anticipating high utilization of these crews and its six coiled tubing units across North America for the remainder of the year. Utilization in North America was impacted by typical spring break-up conditions to begin the quarter, but has subsequently built significant momentum which the Company expects to carry through the third quarter and into the fourth quarter. Pricing has stabilized lower in certain operating regions, due to the decline in natural gas-related activity, and is expected to remain at these levels to the end of 2024. The Company continues to make progress on its strategic priorities by deploying additional Tier IV Dynamic Gas Blending ("DGB") fracturing pumps in North America as well as divesting of a non-core property for net proceeds of $11.4 million. With its revised capital program, Calfrac expects to operate up to five next-generation fleets in North America by the end of the year. THREE MONTHS ENDED MARCH 31, 2024 COMPARED TO THREE MONTHS ENDED MARCH 31, 2023 REVENUERevenue from Calfrac's North American operations decreased to $249.0 million during the first quarter of 2024 from $413.0 million in the comparable quarter of 2023. The significant reduction in first-quarter activity and financial performance was mainly due to a slower than expected start to the year as planned completion programs in the Rockies region were deferred until later in the year combined with the impact of the year-over-year decline in natural gas prices. As a result, Calfrac idled two fracturing fleets in February and operated an average of 10 crews in North America during the first quarter in 2024 compared to 15 fleets in the comparable quarter of 2023. In addition, an increase in activity where its customer provides the sand, as well as pricing pressure in the United States, contributed to the 22 percent decrease in average revenue per job in the first quarter of 2024 versus the same quarter in 2023. Coiled tubing revenue decreased by 40 percent as compared to the first quarter in 2023 mainly due to lower utilization of Calfrac's six deep coiled tubing units combined with a decrease in job size. ADJUSTED EBITDAThe Company's operations in North America generated Adjusted EBITDA of $14.9 million or 6 percent of revenue during the first quarter of 2024 compared to $76.5 million or 19 percent of revenue in the same period in 2023. This decrease was due primarily to the significant decline in fracturing fleet utilization combined with slightly lower pricing relative to the same period in 2023. ARGENTINA   Three Months Ended Mar. 31,     2024   2023   Change   (C$000s, except operational and exchange rate information) ($)   ($)   (%)   (unaudited)           Revenue 81,137   80,276   1   Adjusted EBITDA(1) 16,100   11,540   40   Adjusted EBITDA (%) 19.8   14.4   38   Fracturing revenue per job ($) 74,354   88,174   (16 ) Number of fracturing jobs 672   555   21   Active pumping horsepower, end of period (000s) 139   139   —   US$/C$ average exchange rate(2) 1.3486   1.3526   —   (1) Refer to "Non-GAAP Measures" on page 6 for further information.(2) Source: Bank of Canada. OUTLOOKCalfrac's Argentinean operations leveraged high utilization with superior service quality to generate a divisional record for first-quarter Adjusted EBITDA of $16.1 million. During the quarter, this division also set a record for hours pumped in a day, while establishing a new country standard for lowest trailing twelve-month TRIF of 0.42 at quarter end. Calfrac expects to maintain this momentum throughout 2024 across all three service lines as operators seek to execute on their development plans. As government leaders in Argentina implement new economic reforms and encourage additional domestic oil and gas development, Calfrac expects to capitalize on future opportunities to improve its operating and financial performance. THREE MONTHS ENDED MARCH 31, 2024 COMPARED TO THREE MONTHS ENDED MARCH 31, 2023 REVENUECalfrac's Argentinean operations generated revenue of $81.1 million during the first quarter of 2024 versus $80.3 million in the comparable quarter in 2023 as the Company maintained strong activity across all service lines. The slight increase in revenue was due to improved job mix for its fracturing service line. Coiled tubing and cementing revenue were consistent with the comparable quarter in 2023. ADJUSTED EBITDAThe Company's operations in Argentina generated Adjusted EBITDA of $16.1 million during the first quarter of 2024 compared to $11.5 million in the same quarter of 2023, while the Company's Adjusted EBITDA margins also improved to 20 percent from 14 percent. This increase was primarily due to job mix in the Vaca Muerta shale play relative to the comparable period in 2023. 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,     2022   2022   2022   2023   2023   2023   2023   2024   (C$000s, except per share and operating data) ($)   ($)   ($)   ($)   ($)   ($)   ($)   ($)