Calgary, Alberta--(Newsfile Corp. - May 12, 2025) - Trican Well Service Ltd. (TSX: TCW) ("Trican" or the "Company") is pleased to announce its first quarter results for 2025. The following news release should be read in conjunction with Management's Discussion and Analysis ("MD&A"), the unaudited interim consolidated financial statements and related notes for the three months ended March 31, 2025, as well as the Annual Information Form ("AIF") for the year ended December 31, 2024. All of these documents are available on SEDAR+ at www.sedarplus.ca.
FIRST QUARTER HIGHLIGHTS
Trican's results for the first quarter compared to the prior year period were lower mainly due to a more competitive pricing environment combined with inflationary cost pressures:
Revenue was $259.1 million for the three months ended March 31, 2025 compared to $271.9 million for the three months ended March 31, 2024.
Adjusted EBITDAS1 and adjusted EBITDA1 for the three months ended March 31, 2025 were $62.3 million and $61.3 million, compared to $74.4 million and $72.8 million, respectively, for the three months ended March 31, 2024.
Free cash flow1 and free cash flow per share1 for the three months ended March 31, 2025 were $43.0 million, $0.23 per share basic and diluted compared to $49.9 million, $0.24 per share basic and diluted for the three months ended March 31, 2024.
Net profit and net profit per share for the three months ended March 31, 2025 were $31.9 million, $0.17 per share basic and diluted compared to $41.2 million, $0.20 per share basic and $0.19 per share diluted for the three months ended March 31, 2024.
During the three months ended March 31, 2025, the Company returned an aggregate of $21.2 million to shareholders, consisting of $9.3 million from quarterly dividends and $11.9 million from the Company's Normal Course Issuer Bid ("NCIB") programs.
The Company's balance sheet remains strong with positive working capital1, including cash, of $159.0 million at March 31, 2025 compared to $128.0 million at December 31, 2024, providing significant financial flexibility. As at March 31, 2025, the Company had a cash balance of $4.1 million (December 31, 2024 - $26.3 million). The decrease in cash is primarily attributed to tax installments, combined with working capital requirements, capital expenditures and return of capital initiatives.
RETURN OF CAPITAL
The Company continues to be active in its NCIB program as a key component of its return of capital strategy:
During the three months ended March 31, 2025, Trican purchased and cancelled 2,541,020 common shares at a weighted average price of $4.66 per share, or approximately 1% of the Company's outstanding shares at December 31, 2024. Subsequent to March 31, 2025 and as of May 12, 2025, the Company has purchased an additional 6,615,635 common shares. Total purchases of 11,681,009 common shares have been completed under the 2024-2025 NCIB program representing approximately 61% of the 19,010,793 common shares eligible for purchase under the program.
Since the initiation of our NCIB programs in 2017, Trican has purchased 175,913,859 common shares, equating to approximately 51% of total shares outstanding at the start of the NCIB programs at a weighted average price of $2.85 per share. All common shares purchased under the NCIB program are returned to treasury for cancellation.
The Company also continues to execute on its return of capital strategy through its quarterly dividend program:
During the three months ended March 31, 2025, the Company paid a cash dividend of $0.05 per share, or approximately $9.3 million in aggregate to shareholders.
On May 12, 2025, the Company's board of directors approved a dividend of $0.05 per share reflecting an increase of 11% from the prior year quarterly dividend payments of $0.045 per share. The distribution is scheduled to be made on June 30, 2025 to shareholders of record as of the close of business on June 13, 2025.
The dividends are designated as eligible dividends for Canadian income tax purposes.
FINANCIAL REVIEW
| ($ millions, except $ per share amounts. Weighted average shares is stated in thousands) | Three months ended | ||
| (Unaudited) | March 31, 2025 | March 31, 2024 | December 31, 2024 |
| Revenue | 259.1 | 271.9 | 275.5 |
| Gross profit | 53.7 | 64.5 | 49.6 |
| Adjusted EBITDAS1 | 62.3 | 74.4 | 58.6 |
| Adjusted EBITDA1 | 61.3 | 72.8 | 55.6 |
| Free cash flow1 | 43.0 | 49.9 | 33.9 |
| Per share - basic and diluted1 | 0.23 | 0.24 | 0.18 |
| Cash flow (used in) / from operations | (4.6) | (37.5) | 82.1 |
| Profit for the period | 31.9 | 41.2 | 27.6 |
| Per share - basic | 0.17 | 0.20 | 0.14 |
| Per share - diluted | 0.17 | 0.19 | 0.14 |
| Dividends paid | 9.3 | 9.3 | 8.5 |
| Per share | 0.050 | 0.045 | 0.045 |
| Shares outstanding, end of period | 186,499 | 205,362 | 188,924 |
| Weighted average shares outstanding - basic | 188,165 | 208,037 | 190,695 |
| Weighted average shares outstanding - diluted | 190,907 | 211,801 | 193,589 |
| 1 Refer to the Non-GAAP disclosure section of this news release for further details. | |||
| ($ millions, unaudited) | As at March 31, 2025 | As at December 31, 2024 |
| Cash and cash equivalents | 4.1 | 26.3 |
| Current assets - other | 255.9 | 237.2 |
| Current portion of lease liabilities | 5.1 | 5.1 |
| Current liabilities - other | 95.9 | 130.4 |
| Lease liabilities - non-current portion | 13.6 | 14.9 |
| Non-current loans and borrowings | 17.2 | - |
| Total assets | 672.2 | 683.1 |
| Three months ended | |||||
| (Unaudited) | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024 |
| WTI - Average price (US$/bbl) | $71.42 | $70.32 | $75.27 | $80.66 | $76.91 |
| AECO-C - Spot average price (C$/mcf) | $2.01 | $1.41 | $0.66 | $1.13 | $2.08 |
| WCS - Average price (C$/bbl) | $83.62 | $80.32 | $81.82 | $91.99 | $80.24 |
| Average exchange rate (US$/C$) | $0.70 | $0.72 | $0.73 | $0.73 | $0.74 |
| Canadian average drilling rig count | 231 | 214 | 215 | 138 | 224 |
| Source: Bloomberg, Bank of Canada, and Rig Locator | |||||
HIGHLIGHTS
Capital expenditures1 and technology modernization
Capital expenditures1 for the three months ended March 31, 2025 totaled $12.5 million ($15.3 million for the three months ended March 31, 2024) related primarily to maintenance capital and electric ancillary fracturing equipment. The Company has an approved capital budget for 2025 of $70.2 million for maintenance capital and growth initiatives including additional electric ancillary fracturing equipment.
In addition, the Company is undertaking a significant technology modernization initiative aimed at enhancing operational efficiency, streamlining internal processes and positioning the Company for future innovation and growth. Trican anticipates ongoing technology enhancements over the next few years including the incorporation of artificial intelligence and enhanced data analytics capabilities to remain competitive in an evolving digital landscape. The investment for 2025 is anticipated to be $10 million which will be presented as G&A expense in accordance with IFRS.
The Company will fund these expenditures with available cash resources, free cash flow1 and our operating line.
Hydraulic fracturing fleet
We continued to develop our fleet by upgrading existing equipment with Tier 4 Dynamic Gas Blending ("DGB") engine technology and building new fully electric ancillary equipment. The combination of Tier 4 DGB engines and fully electric ancillary equipment can displace up to 90% of the diesel used in a conventional fracturing operation with natural gas resulting in lower overall fuel costs and reduced carbon dioxide and particulate matter emissions. Our fracturing fleet upgrades also include industry leading continuous heavy duty pumps (3,000 HHP) and idle reduction technology packages which enable longer pumping times and improved operating efficiencies. Trican's fracturing fleet includes five active Tier 4 DGB fleets with a total Tier 4 DGB capacity of 210,000 HHP.
Upgrades to the third group of electric ancillary equipment are now complete with those units expected to be deployed in the field in Q2 2025. Construction of a fourth group of electric ancillary equipment is underway and is expected to be completed by the end of the year.
Tier 4 upgrades and electric ancillary equipment are key components of Trican's operating strategy. Our ongoing initiatives, including fleet upgrades, are intended to improve operating performance, cost efficiency, and reduce our emissions profile, thereby improving the sustainability of our operations while supporting our customers in achieving their goals.
Financial position
We continue to focus on maintaining a strong balance sheet with significant positive working capital1 including cash. Our ability to generate strong free cash flow1 and financial flexibility will allow us to execute our strategic plans including ongoing investment in our industry leading fleet, continued execution of our NCIB program and the payment of a quarterly dividend as a part of our disciplined capital allocation strategy which includes a consistent return of capital to our shareholders.
OUTLOOK
The evolving political landscapes in both Canada and the US continue to generate considerable uncertainty which can present both opportunities and challenges for our business. Despite increased uncertainty in the short term, our overall outlook for the next few years remains positive as Canadian market fundamentals continue to be attractive for fracturing, cementing and coiled tubing services in Western Canada. Additional oil and natural gas export capacity is now a reality in Canada with the expanded Trans Mountain Pipeline in commercial service, the Coastal GasLink Pipeline completed and the LNG Canada project anticipated to commence exports mid-2025. Canada's new export capacity will allow our customers to sell oil and natural gas into global markets, particularly in Asia, benefiting from reduced reliance on US prices which have been volatile due to supply fluctuations. This increased export capacity for markets outside North America has already reduced oil price differentials in Western Canada and is anticipated to increase natural gas demand and prices as LNG exports are new to Canada and represent over 10% of current Canadian production. We are also encouraged by the progress being made at other LNG export facilities on the West coast of Canada including a positive investment decision for Cedar LNG, continuing construction at Woodfibre LNG and Ksi Lisims LNG advancing towards a final investment decision. Canada's expanded export capacity for oil and natural gas creates a positive backdrop for drilling and completions activity in the Western Canadian Sedimentary Basin, and the associated oilfield services such as pressure pumping, required to develop Canada's resources through 2025 and beyond.
The imposition of US tariffs on steel and aluminum imports and retaliatory Canadian tariffs on US sourced inputs, such as frac sand, could increase well completion costs ultimately leading to lower activity levels. This uncertainty creates financial risk to input costs which we are actively monitoring while implementing alternatives to mitigate our exposure and cost impacts. The threat of ongoing tariffs, combined with commodity price volatility driven by both global and domestic factors is generating considerable uncertainty for our customers. Regardless, we expect overall annual oilfield activity in Canada to grow modestly in the next few years allowing us to continue generating attractive returns for our shareholders.
The Montney reservoir in Northeast British Columbia and Northwest Alberta is an increasingly important North American resource play. We expect that the combination of attractive well economics, large drilling inventories, increasing demand from LNG exports and British Columbia's agreements with First Nations should lead to ongoing and growing activity in the play. The Duvernay play also continues to see increasing capital allocated to it as customers assign their capital spending programs to liquids rich areas that provide high rate wells that generate attractive returns. As predicted, both Montney and Duvernay reservoirs are proving to be technically complex and very pressure pumping intensive. These areas require high rate and high-pressure capable fracturing equipment, large-scale coiled tubing units and high proppant intensity. The long lateral lengths of well designs in these areas also require large, high volume cement applications. Trican's high quality assets, strategic partnership with Source Energy Services Ltd. for sand delivery, and significant industry experience should provide opportunities to capture more of this work, optimize operational efficiency and support Trican's core product offerings.
Trican continues to build on the investments made in our equipment fleet over the last few years with a focus on pressure pumping technology and design. Trican remains a market leader in Tier 4 DGB technology deployment with our fifth fleet of Tier 4 DGB high pressure fracturing equipment, designed for extremely high pressure pumping required in the Duvernay reservoir, now deployed. Demand for this equipment continues to exceed our ability to supply and it remains sought after technology by customers looking for higher reliability, less downtime and higher capacity equipment for their completion activities. We will also be testing a new 100% natural gas fueled engine in the second half of this year. If successful, this engine will allow for 100% natural gas fueled fracturing operations that will greatly reduce fuel costs and emissions in our customers' locations. We continue to enhance our fleet offering through the electrification of ancillary equipment required for on-site fracturing operations including the data van, blending, sand handling and other equipment used for fracturing. Upgrades to our fourth set of electric ancillary equipment are underway with those units expected to be deployed in the field by the end of the year.
Trican is undertaking a significant technology modernization initiative starting with our base financial system and implementing a world class, integrated ERP platform. Trican anticipates ongoing technology enhancements over the coming years including the incorporation of artificial intelligence and enhanced data analytics capabilities to remain competitive in an evolving digital landscape. These ongoing technological advancements to our equipment and systems will help augment our differentiation strategy that helps add value for our customers through increasing operational performance and reducing both fuel costs and output emissions.
We remain focused on generating attractive returns for our shareholders and returning capital both through our quarterly dividend and our NCIB program. Trican increased its quarterly dividend per share by 11% effective in Q1 2025 and we will continue to evaluate our dividend policy on an annual basis. We continue to be active with our NCIB program when market trading prices are at levels that provide for an attractive investment opportunity. Trican continuously monitors and evaluates potential NCIB purchases against other investment opportunities available to the Company. We have repurchased and cancelled 11.7 million shares to date, representing approximately 61% of the 2024-2025 NCIB program.
We believe our ability to deliver a multi-layered return of capital strategy while maintaining a strong balance sheet will lead to long-term value creation for our shareholders.
COMPARATIVE QUARTERLY INCOME STATEMENTS
| ($ thousands, except total job count1, revenue per job1 and crews1; unaudited) | ||||||
| Three months ended | March 31, 2025 | Percentage of revenue | March 31, 2024 | Percentage of revenue | December 31, 2024 | Percentage of revenue |
| Revenue | 259,073 | 100% | 271,925 | 100% | 275,516 | 100% |
| Cost of sales | 187,217 | 72% | 189,028 | 70% | 208,039 | 76% |
| Cost of sales - depreciation and amortization | 18,189 | 7% | 18,422 | 7% | 17,868 | 6% |
| Gross profit | 53,667 | 21% | 64,475 | 24% | 49,609 | 18% |
| Administrative expenses | 10,580 | 4% | 10,157 | 4% | 11,927 | 4% |
| Administrative expenses - depreciation | 956 | -% | 967 | -% | 939 | -% |
| Other income | (568) | -% | (1,522) | (1%) | (670) | -% |
| Results from operating activities | 42,699 | 16% | 54,873 | 20% | 37,413 | 14% |
| Finance costs | 590 | -% | 771 | -% | 655 | -% |
| Foreign exchange loss | 74 | -% | 82 | -% | 402 | -% |
| Profit before income tax | 42,035 | 16% | 54,020 | 20% | 36,356 | 13% |
| Current income tax expense | 8,762 | 3% | 10,767 | 4% | 6,847 | 2% |
| Deferred income tax expense | 1,397 | 1% | 2,078 | 1% | 1,910 | 1% |
| Profit for the period | 31,876 | 12% | 41,175 | 15% | 27,599 | 10% |
| Adjusted EBITDAS1 | 62,337 | 24% | 74,380 | 27% | 58,555 | 21% |
| Adjusted EBITDA1 | 61,276 | 24% | 72,801 | 27% | 55,550 | 20% |
| Total job count1 | 2,010 | 2,025 | 1,665 | |||
| Revenue per job1 | 128,892 | 134,284 | 165,475 | |||
| Total proppant pumped (tonnes)1 | 457,000 | 386,000 | 532,000 | |||
| Hydraulic pumping capacity (HHP)1 | 504,000 | 525,000 | 504,000 | |||
| Hydraulic fracturing - active crews1 | 7 | 7 | 7 | |||
| Hydraulic fracturing - parked crews1 | 4 | 5 | 4 | |||
| 1 Refer to the Non-GAAP disclosure section of this news release for further details. | ||||||
Sales mix - % of total revenue
| Three months ended (unaudited) | March 31, 2025 | March 31, 2024 | December 31, 2024 |
| Fracturing | 71% | 72% | 78% |
| Cementing | 20% | 20% | 15% |
| Coiled tubing | 9% | 8% | 7% |
| Total | 100% | 100% | 100% |
NON-GAAP MEASURES
Certain terms in this News Release, including adjusted EBITDA, adjusted EBITDAS, adjusted EBITDA percentage, adjusted EBITDAS percentage, free cash flow and free cash flow per share, do not have any standardized meaning as prescribed by IFRS and therefore are considered non-GAAP measures and may not be comparable to similar measures presented by other issuers.
Adjusted EBITDA and adjusted EBITDAS
Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) is a non-GAAP financial measure and has been reconciled to profit / (loss) for the applicable financial periods, being the most directly comparable measure calculated in accordance with IFRS Accounting Standards. Management utilizes adjusted EBITDA to translate historical variability in the Company's principal business activities into future financial expectations. By isolating incremental items from net income, including income / expense items related to how the Company chooses to manage financing elements of the business, taxation strategy and non-cash charges, management can better predict future financial results from our principal business activities.
Adjusted EBITDAS (earnings before interest, taxes, depreciation, amortization and share-based compensation) is a non-GAAP financial measure and has been reconciled to profit / (loss) for the applicable financial periods, being the most directly comparable measure calculated in accordance with IFRS Accounting Standards. Management utilizes adjusted EBITDAS as a useful measure of operating performance, cash flow to complement profit / (loss) and to provide meaningful comparisons of operating results.
The items included in this calculation of adjusted EBITDA have been specifically identified as they are non-cash in nature, subject to significant volatility between periods, and / or not relevant to our principal business activities. Items adjusted in the non-GAAP calculation of adjusted EBITDA, are as follows:
Non-cash expenditures, including depreciation, amortization, impairment of non-financial assets, and equity-settled share-based compensation;
Consideration as to how the Company chose to generate financial income and incur financial expenses, including foreign exchange expenses and finance costs;
Taxation in various jurisdictions; and
Other income / expense which generally results from the disposition of equipment, as these transactions generally do not reflect quarterly operational field activity.
The item adjusted in the non-GAAP calculation of adjusted EBITDAS from adjusted EBITDA, is as follows:
Cash-settled share-based compensation.
| ($ thousands; unaudited) | Three months ended | ||
| March 31, 2025 | March 31, 2024 | December 31, 2024 | |
| Profit for the period (IFRS financial measure) | 31,876 | 41,175 | 27,599 |
| Adjustments: | |||
| Cost of sales - depreciation and amortization | 18,189 | 18,422 | 17,868 |
| Administrative expenses - depreciation | 956 | 967 | 939 |
| Current income tax expense | 8,762 | 10,767 | 6,847 |
| Deferred income tax expense | 1,397 | 2,078 | 1,910 |
| Finance costs and amortization of debt issuance costs | 590 | 771 | 655 |
| Foreign exchange loss | 74 | 82 | 402 |
| Other income | (568) | (1,522) | (670) |
| Administrative expenses - equity-settled share-based compensation | - | 61 | - |
| Adjusted EBITDA | 61,276 | 72,801 | 55,550 |
| Administrative expenses - cash-settled share-based compensation | 1,061 | 1,579 | 3,005 |
| Adjusted EBITDAS | 62,337 | 74,380 | 58,555 |
| Certain financial measures in this news release - namely adjusted EBITDA, adjusted EBITDAS, adjusted EBITDA percentage, adjusted EBITDAS percentage and free cash flow are not prescribed by IFRS and are considered non-GAAP measures. These measures may not be comparable to similar measures presented by other issuers and should not be viewed as a substitute for measures reported under IFRS. These financial measures are reconciled to IFRS measures in the Non-GAAP disclosure section of this news release. Other non-standard measures are described in the Non-Standard Measures section of this news release. Stainless steel fluid ends were historically expensed as depreciation prior to December 2017. Not all hydraulic fracturing companies apply the accounting policy for stainless steel fluid ends consistently. | |||
Adjusted EBITDA % and adjusted EBITDAS %
Adjusted EBITDA percentage and adjusted EBITDAS percentage are non-GAAP financial ratios that are determined by dividing adjusted EBITDA and adjusted EBITDAS, respectively, by revenue. The components of the calculations are presented below:
| ($ thousands; unaudited) | Three months ended | ||
| March 31, 2025 | March 31, 2024 | December 31, 2024 | |
| Adjusted EBITDA | 61,276 | 72,801 | 55,550 |
| Revenue | 259,073 | 271,925 | 275,516 |
| Adjusted EBITDA % | 24% | 27% | 20% |
| ($ thousands, unaudited) | Three months ended | ||
| March 31, 2025 | March 31, 2024 | December 31, 2024 | |
| Adjusted EBITDAS | 62,337 | 74,380 | 58,555 |
| Revenue | 259,073 | 271,925 | 275,516 |
| Adjusted EBITDAS % | 24% | 27% | 21% |
Free cash flow and free cash flow per share
Free cash flow and free cash flow per share are non-GAAP financial measures which Management believes to be key measures of capital management as they demonstrate the Company's ability to generate monies available to fund future growth through capital investments and return capital to our shareholders.
Free cash flow has been reconciled to cash flow from operations for the applicable financial periods, being the most directly comparable measure calculated in accordance with IFRS. Management adjusts for other (income) / loss, realized (gain) / loss, current income tax, income taxes paid, maintenance capital expenditures included within purchase of property and equipment from the statement of cash flows, net changes in other liabilities and change in non-cash operating working capital.
Management reconciles free cash flow from adjusted EBITDA for the applicable financial periods by adjusting for interest paid, current income tax expense, and maintenance capital expenditures included within purchase of property and equipment from the statement of cash flows as they are considered non-discretionary.
Free cash flow per share is calculated by dividing free cash flow by the Company's basic or diluted weighted average common shares outstanding.
Free cash flow and free cash flow per share are not standardized measures and therefore may not be comparable with the calculation of similar measures by other entities.
| ($ thousands, unaudited) | Three months ended | ||
| March 31, 2025 | March 31, 2024 | December 31, 2024 | |
| Cash flow (used in) / from operations (IFRS financial measure) | (4,612) | (37,532) | 82,137 |
| Adjustments: | |||
| Other income | (203) | (1,069) | (549) |
| Realized foreign exchange (gain) / loss | (66) | 306 | 356 |
| Current income tax expense | (8,762) | (10,767) | (6,847) |
| Maintenance capital expenditures | (8,834) | (11,460) | (14,167) |
| Net changes in other liabilities | 4,125 | (921) | (1,393) |
| Change in non-cash operating working capital | 54,758 | 71,622 | (31,107) |
| Income taxes paid | 6,558 | 39,672 | 5,499 |
| Free cash flow | 42,964 | 49,851 | 33,929 |
| ($ thousands, unaudited) | Three months ended | ||
| March 31, 2025 | March 31, 2024 | December 31, 2024 | |
| Adjusted EBITDA | 61,276 | 72,801 | 55,550 |
| Interest paid | (716) | (723) | (607) |
| Current income tax expense | (8,762) | (10,767) | (6,847) |
| Maintenance capital expenditures | (8,834) | (11,460) | (14,167) |
| Free cash flow | 42,964 | 49,851 | 33,929 |
| ($ thousands, unaudited) | Three months ended | ||
| March 31, 2025 | March 31, 2024 | December 31, 2024 | |
| Purchase of property and equipment | 12,506 | 15,260 | 18,655 |
| Growth capital expenditures | 3,672 | 3,800 | 4,488 |
| Maintenance capital expenditures | 8,834 | 11,460 | 14,167 |
| ($ thousands, except $ per share amounts. Weighted average shares is stated in thousands; unaudited) | Three months ended | ||
| March 31, 2025 | March 31, 2024 | December 31, 2024 | |
| Free cash flow | 42,964 | 49,851 | 33,929 |
| Weighted average shares outstanding - basic | 188,165 | 208,037 | 190,695 |
| Free cash flow per share - basic | 0.23 | 0.24 | 0.18 |
| ($ thousands, except $ per share amounts. Weighted average shares is stated in thousands; unaudited) | Three months ended | ||
| March 31, 2025 | March 31, 2024 | December 31, 2024 | |
| Free cash flow | 42,964 | 49,851 | 33,929 |
| Weighted average shares outstanding - diluted | 190,907 | 211,801 | 193,589 |
| Free cash flow per share - diluted | 0.23 | 0.24 | 0.18 |
OTHER NON-STANDARD FINANCIAL TERMS
In addition to the above non-GAAP financial measures and ratios, this News Release makes reference to the following non-standard financial terms. These terms may differ and may not be comparable to similar terms used by other companies.
Revenue per job
Calculation is determined based on total revenue divided by total job count. This calculation is significantly impacted by factors such as the relative revenue contribution by service line, changes in pricing and the magnitude of customer supplied consumables and inputs.
Working capital
Term that refers to the difference between the Company's current assets and current liabilities.
Capital expenditures
Term that refers to the Company's capital additions.
Maintenance and growth capital
Term that refers to capital additions as maintenance or growth capital. Maintenance capital are expenditures in respect of capital additions, replacements or improvements required to maintain ongoing business operations. Growth capital refers to expenditures primarily for new items and/or equipment that will expand our revenue and/or reduce our expenditures through operating efficiencies. The determination of what constitutes maintenance capital expenditures versus growth capital involves judgement by management.
FORWARD-LOOKING STATEMENTS
Certain statements contained in this document constitute forward-looking information and statements (collectively "forward-looking statements"). These statements relate to future events or our future performance. 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 "anticipate", "achieve", "believe", "budget", "can", "continue", "could", "estimate", "expect", "forecast", "intend", "may", "might", "plan", "planned", "potential", "predict", "project", "seek", "should", "targeting", "will", "would" and other similar terms and phrases. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. We believe the expectations reflected in these forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this document should not be unduly relied upon. These statements speak only as of the date of this document.
In particular, this document contains forward-looking statements pertaining to, but not limited to, the following:
our business plans and prospects;
statements under the Outlook section of this News Release;
that we have sufficient liquidity to support operations, meet our commitments, invest in new opportunities, improve our competitive position and drive profitable growth;
the impact of escalated geopolitical tensions, including the conflicts in the Middle East and the Russian invasion of Ukraine, OPEC+ policy changes, and the associated effect on worldwide demand for oil and natural gas;
the impact of geopolitical events such as the possibility of tariffs between Canada and the US continue to generate considerable uncertainty, and the associated effect on North American demand and activity for oil and natural gas;
anticipated industry activity levels, rig counts and outlook as well as expectations regarding our customers' work and capital programs and the associated impact on the Company's equipment utilization levels and demand for our services in 2025;
the impact of inflation and existence of inflationary pressures;
expectations as to the type of pressure pumping equipment required and which operating regions the equipment is appropriate to operate in;
expectations regarding supply and demand fundamentals and commodity pricing levels;
expectations that we are adequately staffed for current industry activity levels, that we will be able to retain and attract staff;
expectations regarding the trends and factors affecting the pricing environment for the Company's services;
expectations regarding the Company's financial results, working capital levels, liquidity and profits;
expectations regarding Trican's capital spending plans and sources/availability of capital;
expectations regarding Trican's technology modernization initiative, equipment upgrades and the environmental, performance and competitive impacts thereof;
expectations regarding Trican's utilization of its NCIB program;
expectations regarding Trican's ability to pay dividends;
expectations that adjusted EBITDA will help predict future earnings;
expectations regarding customer performance and financial flexibility;
anticipated compliance with debt and other covenants under our revolving credit facilities;
expectations that the Company can maintain its strong position in the fracturing and cementing service lines and strengthen ancillary services;
expectations regarding the nature and focus of our share-based compensation programs;
expectations regarding Trican's policy of adjusting its capital budget on a quarterly basis; and
expectations surrounding weather and seasonal slowdowns.
Our actual results could differ materially from those anticipated in these forward-looking statements as a result of the risk factors set forth herein and in the "Risk Factors" section of our AIF for the year ended December 31, 2024, available on SEDAR+ (www.sedarplus.ca).
Readers are cautioned that the foregoing lists of factors are not exhaustive. Forward-looking statements are based on a number of factors and assumptions, which have been used to develop such statements and information, but which may prove to be incorrect. Although management of Trican believes that the expectations reflected in such forward-looking statements or information are reasonable, undue reliance should not be placed on forward-looking statements because Trican can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified in this document, assumptions have been made regarding, among other things: crude oil and natural gas prices; the impact of increasing competition; the general stability of the economic and political environment; the timely receipt of any required regulatory approvals; industry activity levels; Trican's policies with respect to acquisitions; the ability of Trican to obtain qualified staff, equipment and services in a timely and cost efficient manner; the ability to operate our business in a safe, efficient and effective manner; the ability of Trican to obtain capital resources and adequate sources of liquidity; the performance and characteristics of various business segments; the regulatory framework; the timing and effect of pipeline, storage and facility construction and expansion; and future commodity, currency, exchange and interest rates.
The forward-looking statements contained in this document are expressly qualified by this cautionary statement. We do not undertake any obligation to publicly update or revise any forward-looking statements except as required by applicable law.
Additional information regarding Trican including Trican's most recent AIF, is available under Trican's profile on SEDAR+ (www.sedarplus.ca).
CONFERENCE CALL AND WEBCAST DETAILS
The Company will host a conference call on Tuesday, May 13, 2025 at 8:00 a.m. MT (10:00 p.m. ET) to discuss its results for the First Quarter 2025.
To listen to the webcast of the conference call, please enter the following URL in your web browser: http://www.gowebcasting.com/13973.
You can also visit the "Investors" section of our website at www.tricanwellservice.com/investors and click on "Reports".
To participate in the Q&A session, please call the conference call operator at 1-844-763-8274 (North America) or 1-647-484-8814 (outside North America) 10 minutes prior to the call's start time and ask for the "Trican Well Service Ltd. First Quarter 2025 Earnings Results Conference Call."
The conference call will be archived on Trican's website at www.tricanwellservice.com/investors.
ABOUT TRICAN
Headquartered in Calgary, Alberta, Trican supplies oil and natural gas well servicing equipment and solutions to our customers through the drilling, completion and production cycles. Our team of technical experts provide state-of-the-art equipment, engineering support, reservoir expertise and laboratory services through the delivery of hydraulic fracturing, cementing, coiled tubing, nitrogen services and chemical sales for the oil and gas industry in Western Canada.
Requests for further information should be directed to:
Bradley P.D. Fedora
President and Chief Executive Officer
Scott E. Matson
Chief Financial Officer
Phone: (403) 266-0202
2900, 645 - 7th Avenue S.W.
Calgary, Alberta T2P 4G8
Please visit our website at www.tricanwellservice.com.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/251838