Mr. Pat Powell reports

CALFRAC ANNOUNCES EXTENSION AND AMENDMENT OF CREDIT FACILITIES

Calfrac Well Services Ltd. has entered into an agreement with a syndicate of Canadian financial institutions which amends and extends its credit facilities.

The principal amendments to the $250-million credit facilities include, among others, the following items:

• An extension of the maturity date from July 1, 2024, to the earlier of: (a) July 1, 2026, or (b) six months prior to the maturity of the company's 2020 second lien notes on March 15, 2026;
• The syndicated facility was increased from $205-million to $215-million and the operating facility was decreased from $45-million to $35-million;
• Removing the borrowing base requirement and the funded debt to capitalization and current ratio covenants; and
• Introducing an interest coverage ratio covenant of greater than 2.75:1:00 and a total debt to EBITDA (earnings before interest, taxes, depreciation and amortization) ratio covenant of less than four to one (4:1). As at June 30, 2023, the interest coverage ratio and total debt to EBITDA ratio from continuing operations would have been 7.93:1 and 1.04:1, respectively.

The company's banking syndicate is now led by HSBC Bank Canada and ATB Financial, as co-lead arrangers and joint book runners, with HSBC Bank Canada serving as sole administrative agent. The syndicate also includes the Toronto-Dominion Bank and Canadian Western Bank.

Mike Olinek, Calfrac's chief financial officer, commented: "We are pleased to report an extension of the company's credit facilities with a newly configured lending syndicate consisting of four major financial institutions. As Calfrac expects its operations in North America and Argentina to continue to perform well during this upcycle, management remains focused on expanding profit margins, reducing long-term debt and improving its asset quality. This two-year extension of the company's credit facilities is a significant step towards executing on Calfrac's strategy in the face of sustained business growth and an improving outlook."

About Calfrac Well Services Ltd.

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 its 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.

We seek Safe Harbor.