In This Article:
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Revenue: $426 million from continuing operations, a 9% decrease from Q2 2023, but a 29% increase from Q1 2024.
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Adjusted EBITDA: $65.4 million, a 26% decline from Q2 2023, but increased by over $39 million from Q1 2024.
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Net Income: $24.6 million from continuing operations, down from $50.5 million in Q2 2023, but up $27.5 million from Q1 2024.
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Capital Expenditures: $66.8 million, primarily for Tier IV fleet modernization and new sand transportation equipment.
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Working Capital: Approximately $304 million, including $43.7 million in cash.
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Net Debt to Adjusted EBITDA Ratio: 1.39 at the end of Q2 2024.
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Available Credit: Approximately $46 million after borrowings and letters of credit.
Release Date: August 01, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Calfrac Well Services Ltd (CFWFF) reported a sequential revenue increase of 29% from the first quarter, driven by higher activity in North America.
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The company achieved record levels of proppant pumped during fracking operations for two consecutive months.
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Calfrac's coiled tubing group set a record for the most plugs milled out in a 12-hour period.
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The company is expanding its operations in Argentina, leveraging North American best practices and seeing high demand for its services.
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Calfrac is modernizing its fleet with Tier IV DGB pumps, aiming to operate five dual fuel fleets in North America by early next year.
Negative Points
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Revenue from continuing operations decreased by 9% compared to the same period in 2023, primarily due to lower activity and pricing in the United States.
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Adjusted EBITDA declined by 26% from the same period last year, attributed to lower utilization and pricing levels in the United States.
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Net income from continuing operations decreased to $24.6 million from $50.5 million in the comparable quarter of 2023.
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The company's Tier IV fleet modernization program is progressing slower than initially anticipated.
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Calfrac's capital expenditures increased significantly, with $66.8 million spent in the second quarter, impacting cash flow.
Q & A Highlights
Q: What's the CapEx number for the year now? A: The overall guidance is around $200 million on a full-year basis, with a significant portion of that increase being allocated to the Argentinian segment. - Michael Olinek, CFO
Q: Is the $20 million quarterly revenue from coiled tubing in Argentina sustainable in future quarters? A: The uptake was partly due to the offshore coiled tubing rig, but overall, we are busier in Argentina and expect to continue at this level. - Patrick Powell, CEO