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Highlights

  • Calfrac Well Services secured a revenue of about CAD 466.4 million in Q2 2023, as compared to CAD 318.5 million in pcp.
  • CFW posted an adjusted EBITDA of CAD 87.8 million during the reporting period, 18.8% higher than Q2 2022.
  • In Q2 2023, Calfrac marked a drop in its debt-to-equity ratio, reducing its net leverage to 1.04x.

Calfrac Well Services Ltd (TSX: CFW) holds expertise in oilfield services, such as cementing, hydraulic fracturing, coiled tubing, and related well completion services to the industries of oil and natural gas sector across the United States, Russia, Canada, and Argentina.

In the second quarter of the year 2023, the company secured a revenue of about CAD 466.4 million, as compared to CAD 318.5 million in the previous corresponding period. This was primarily because of a 34% hike in the number of fracturing jobs. Also, it posted an adjusted EBITDA of CAD 87.8 million during the reporting period, 18.8% higher than Q2 2022.

CFW’s earnings before taxes was recorded at CAD 49.5 million versus a loss of CAD 5.0 million in Q2 2022. This can be attributed to increased gross profits as well as gain on disposal of property, plant and equipment, along foreign exchange gain.

During Q2 2023, Calfrac marked a drop in its debt-to-equity ratio, reducing its net leverage to 1.04x. The company is expecting to lower its debt by around CAD 80.0 million by the end of 2023.

Overall, Calfrac secured net earnings of CAD 53.2 million in the second quarter of 2023, while it had suffered a net loss of CAD 36.1 million in pcp.

Going forth, CFW is looking forward to become a next-generation pressure pumping company. It has put in place a greater number of Tier IV dynamic gas blending (DGB) fracturing pumps and is anticipating to utilise all kinds of operational benefits and improve cash flows. Also, another 50 upgraded Tier IV DGB units are likely to be deployed by the end of Q1 2024.

Top 10 Shareholders
Total 67% of the total shareholdings in the company are held by it top ten shareholders. While G2S2 Capital Inc owns a maximum stake of about ­­­34.85% in the company, over 11% is held by Mathison (Ronald P).

 Stock Price Performance
The company’s stock price has fallen by around 2.51% in the past one week. It has witnessed an increase of approximately 12.35% over the last one month. CFW’s 52-week high and low price stand at CAD 7.90 and CAD 3.70.

Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is August 25, 2023. The reference data in this report has been partly sourced from EODHD/Others.