Calfrac Reports First Quarter 2024 Results

May 7, 2024

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, including the Company’s Annual Information Form for the year ended December 31, 2023.

Calfrac’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.”


 Three Months Ended Mar. 31,
 2024 2023 Change 
(C$000s, except per share amounts)($) ($) (%) 
Revenue330,096 493,323 (33)
Adjusted EBITDA(1)26,057 83,794 (69)
Consolidated cash flows provided by operating activities3,773 40,894 (91)
Capital expenditures48,072 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 atMar. 31, Dec. 31, Change 
 2024 2023   
(C$000s)($) ($) (%) 
Cash and cash equivalents58,239 34,140 71 
Working capital, end of period273,712 236,392 16 
Total assets, end of period1,166,363 1,126,197 4 
Long-term debt, end of period314,948 250,777 26 
Net debt(2)280,677 241,065 16 
Total consolidated equity, end of period623,743 615,903 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.



 Three Months Ended Mar. 31,
 2024 2023 Change 
(C$000s, except operational and exchange rate information)($) ($) (%) 
Revenue248,959 413,047 (40)
Adjusted EBITDA(1)14,872 76,487 (81)
Adjusted EBITDA (%)6.0 18.5 (68)
Fracturing revenue per job ($)33,518 43,237 (22)
Number of fracturing jobs7,176 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.

Activity 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.


Revenue 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.

The 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.


 Three Months Ended Mar. 31,
 2024 2023 Change 
(C$000s, except operational and exchange rate information)($) ($) (%) 
Revenue81,137 80,276 1 
Adjusted EBITDA(1)16,100 11,540 40 
Adjusted EBITDA (%)19.8 14.4 38 
Fracturing revenue per job ($)74,354 88,174 (16)
Number of fracturing jobs672 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.

Calfrac’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.


Calfrac’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.

The 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.


Three Months EndedJun. 30, Sep. 30, Dec. 31, Mar. 31, Jun. 30, Sep. 30, Dec. 31, Mar. 31, 
 2022 2022 2022 2023 2023 2023 2023 2024 
(C$000s, except per share and operating data)($) ($) ($) ($) ($) ($) ($) ($) 
(unaudited)Revised (1) Revised (1)            
Revenue318,511 438,338 447,847 493,323 466,463 483,093 421,402 330,096 
Adjusted EBITDA(1)(2)(3)40,734 94,289 75,954 83,794 87,785 91,286 62,591 26,057 
Net income (loss)(6,776)45,352 14,757 36,313 50,531 97,523 13,202 (2,903)
Per share – basic(0.18)1.15 0.27 0.45 0.62 1.20 0.16 (0.03)
Per share – diluted(0.18)1.10 0.17 0.41 0.58 1.09 0.15 (0.03)
Capital expenditures(3)15,240 24,745 35,810 34,474 30,718 50,825 49,397 48,072 

(1) Adjusted EBITDA reflects a change in definition and excludes all foreign exchange gains and losses.
(2) Refer to “Non-GAAP Measures” on page 6 for further information.
(3) Effective January 1, 2023, recorded expenditures related to fluid end components as an operating expense rather than as a capital expenditure. This change in accounting estimate was recorded on a prospective basis.


 Three Months Ended Mar. 31,
 2024 2023 Change 
(C$000s)($) ($) (%) 
North America37,174 33,748 10 
Argentina10,898 726 NM 
Continuing Operations48,072 34,474 39 

Capital expenditures were $48.1 million for the three months ended March 31, 2024 versus $34.5 million in the comparable period in 2023. Calfrac’s Board of Directors approved a 2024 total capital budget of approximately $210.0 million in December 2023. This was an increase of $45.0 million from the previous year, primarily to continue its fracturing fleet modernization program in North America and dedicate $40.0 million to support its Argentinean operations while implementing new company-wide field-based technologies. On March 13, 2024, the Board of Directors approved a deferral of up to $50.0 million of capital allocated to its North American fleet modernization program to align with current market conditions.

Certain supplementary measures presented in this press release, including Adjusted EBITDA, Adjusted EBITDA Margin 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 for the period was calculated as follows:

Three Months Ended March 31,2024 2023 
(C$000s)($) ($) 
Net (loss) income from continuing operations(2,903)36,313 
Add back (deduct):  
Depreciation27,995 30,162 
Foreign exchange losses (gains)(1,049)1,486 
(Gain) loss on disposal of property, plant and equipment(6,241)(537)
Litigation settlements (6,805)
Restructuring charges 1,333 
Stock-based compensation2,185 544 
Interest6,032 8,174 
Income taxes38 13,124 
Adjusted EBITDA from continuing operations (1)26,057 83,794 

(1) For bank covenant purposes, EBITDA includes the deduction of an additional $3.2 million of lease payments for the three months ended March 31, 2024 (three months ended March 31, 2023 – $2.9 million) that would have been recorded as operating expenses prior to the adoption of IFRS 16.

The definition and calculation of net debt is disclosed in note 10 to the Company’s interim financial statements for the corresponding period.

Certain statements contained in this press release constitute "forward-looking statements" or "forward-looking information" within the meaning of applicable securities laws (collectively, "forward-looking statements"). These statements relate to future events or the future performance of the Company (as hereinafter defined). All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "forecast", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" or similar expressions.

In particular, forward-looking statements in this press release include, but are not limited to, statements with respect to activity, demand, utilization and outlook for the Company’s operating divisions in North America and Argentina; 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, such as the Company’s strategic priorities to maximize free cash flow, repay debt and capital investment plans, including the Company's fleet modernization program and timing thereof; the Company’s debt, liquidity and financial position; the Company’s service quality and the Company’s intentions and expectations 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 current state of the pressure pumping market; the Company’s expectations for its customers’ capital budgets, demand for services and geographical areas of focus; the effect of unconventional oil and gas projects have had on supply and demand fundamentals for oil and natural gas; the effect of environmental, social and governance factors on customer and investor preferences and capital deployment; the effect of the military conflict in the Ukraine and related international sanctions and counter-sanctions and restrictions by Russia on 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 Company’s existing contracts and the status of current negotiations with key customers and suppliers; the continued effectiveness of cost reduction measures instituted by the Company; 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; 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) 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; difficulty retaining, replacing or adding personnel; failure to continuously improve equipment, proprietary fluid chemistries and other products and services; seasonal volatility and climate change; reliance on equipment suppliers and fabricators; cybersecurity risks; a concentrated customer base; obsolete technology; failure to maintain safety standards and records; constrained demand for the Company’s services due to merger and acquisition activity; improper access to confidential information or misappropriation of Company’s intellectual property rights; failure to realize anticipated benefits of acquisitions and dispositions; loss of one or more key employees; and growth related risk on internal systems or employee base; (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 and increased inflation; price escalation and availability of raw materials, diesel fuel and component parts; actual results which are materially different from management estimates and assumptions; insufficient internal controls; 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 of outstanding stock-based compensation, additional equity or debt securities; and changes in tax rates or reassessment risk by tax authorities; (D) geopolitical risks, including but not limited to, foreign operations exposure, including risks relating to unsettled political conditions, war, foreign exchange rates and controls; the sale of the discontinued operations in Russia may not occur or be delayed; and risk associated with compliance with applicable law; (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; and legal and administrative proceedings; and (F) environmental, social and governance risks, including but not limited to, failure to effectively and timely address the energy transition; the direct and indirect costs of various existing and proposed climate change regulations; various types of activism; and reputational risk or legal liability resulting from ESG commitments and disclosures. Further information about these and other risks and uncertainties are 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 Company’s profile.

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 document 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.

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

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 3 to the Company’s interim consolidated financial statements for the three months ended March 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

Calfrac will be conducting a conference call for interested analysts, brokers, investors and news media representatives to review its 2024 first-quarter results at 10:00 a.m. (Mountain Time) on Tuesday, May 7, 2024. To participate in the conference call, please register at the URL link below. Once registered, you will receive a dial-in number and a unique PIN, which will allow you to ask questions.

The call will also be webcast and can be accessed through the link below. A replay of the webcast call will also be available on Calfrac’s website for at least 90 days.


 March 31, December 31, 
 2024 2023 
(C$000s)($) ($) 
Current assets  
Cash and cash equivalents58,239 34,140 
Accounts receivable197,023 243,187 
Income taxes recoverable 794 
Inventories141,985 123,015 
Prepaid expenses and deposits26,159 22,799 
 423,406 423,935 
Assets classified as held for sale46,448 34,084 
 469,854 458,019 
Non-current assets  
Property, plant and equipment644,481 614,555 
Right-of-use assets23,028 24,623 
Deferred income tax assets29,000 29,000 
 696,509 668,178 
Total assets1,166,363 1,126,197 
Current liabilities  
Accounts payable and accrued liabilities133,895 176,817 
Income taxes payable4,986  
Current portion of lease obligations10,813 10,726 
 149,694 187,543 
Liabilities directly associated with assets classified as held for sale32,897 20,858 
 182,591 208,401 
Non-current liabilities  
Long-term debt314,948 250,777 
Lease obligations13,155 13,702 
Deferred income tax liabilities31,926 37,414 
 360,029 301,893 
Total liabilities542,620 510,294 
Capital stock910,908 910,908 
Contributed surplus80,852 78,667 
Accumulated deficit(392,025)(389,872)
Accumulated other comprehensive income24,008 16,200 
Total equity623,743 615,903 
Total liabilities and equity1,166,363 1,126,197 


 Three Months Ended March 31,
 2024 2023 
(C$000s, except per share data)($) ($) 
Revenue330,096 493,323 
Cost of sales316,208 425,636 
Gross profit13,888 67,687 
Selling, general and administrative18,011 9,127 
Foreign exchange (gains) losses(1,049)1,486 
(Gain) loss on disposal of property, plant and equipment(6,241)(537)
Interest, net6,032 8,174 
 16,753 18,250 
(Loss) income before income tax(2,865)49,437 
Income tax expense (recovery)  
Current6,414 4,398 
 38 13,124 
Net (loss) income from continuing operations(2,903)36,313 
Net income from discontinued operations750 2,024 
Net (loss) income(2,153)38,337 
Earnings (loss) per share – basic  
Continuing operations(0.03)0.45 
Discontinued operations0.01 0.03 
Earnings (loss) per share – diluted  
Continuing operations(0.03)0.41 
Discontinued operations0.01 0.02 


 Three Months Ended March 31,
 2024 2023 
(C$000s)($) ($) 
Net (loss) income(2,153)38,337 
Adjusted for the following:  
Depreciation27,995 30,162 
Stock-based compensation2,185 544 
Unrealized foreign exchange losses (gains)2,638 (292)
(Gain) loss on disposal of property, plant and equipment(6,256)(538)
Impairment of property, plant and equipment693  
Impairment of inventory2,414 1,100 
Impairment of other assets235 1,151 
Interest5,926 8,143 
Interest paid(9,611)(10,243)
Deferred income taxes(6,376)8,726 
Changes in items of working capital(13,917)(36,196)
Cash flows provided by operating activities3,773 40,894 
Issuance of long-term debt, net of debt issuance costs60,000 33,233 
Long-term debt repayments (25,000)
Lease obligation principal repayments(2,840)(2,604)
Proceeds on issuance of common shares from the exercise of warrants and stock options 254 
Cash flows provided by financing activities57,160 5,883 
Purchase of property, plant and equipment(56,420)(35,397)
Proceeds on disposal of property, plant and equipment11,523 199 
Proceeds on disposal of right-of-use assets227 516 
Cash flows used in investing activities(44,670)(34,682)
Effect of exchange rate changes on cash and cash equivalents(1,464)(2,807)
Increase in cash and cash equivalents14,799 9,288 
Cash and cash equivalents, beginning of period45,190 18,393 
Cash and cash equivalents, end of period59,989 27,681 
Included in the cash and cash equivalents per the balance sheet58,239 23,169 
Included in the assets held for sale/discontinued operations1,750 4,512 

For further information, please contact:
Pat Powell, Chief Executive Officer
Mike Olinek, Chief Financial Officer

Telephone: 403-266-6000