CALGARY, ALBERTA--(Marketwired - Nov. 26, 2014) -
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.
Great Prairie Energy Services Inc. (TSX VENTURE:GPE) ("Great Prairie" or the "Company") is pleased to announce its financial results for the three and nine month periods ended September 30, 2014. The full text of Great Prairie's third quarter report containing its unaudited interim financial statements and the related MD&A are available under the Company's profile on SEDAR at
www.sedar.com.
Third Quarter Financial Highlights:
1. Revenue of $10.2 million for the three months ended September 30, 2014.
2. EBITDAS of $3.5 million for the three months ended September 30, 2014.
3. Capital expenditures of $2.5 million.
The third quarter was marked by a strong operational effort focused on integration of the Company's May 15, 2014 acquisition of oilfield rental, hauling and frac fluid businesses from Calmena Energy Services Operating Limited Partnership and Calmena Energy Services Inc. ("Calmena").
Activity levels in the quarter were high and the outlook for the remainder of 2014 remains positive with continuing strength despite the current weakness in WTI crude oil pricing. The fall in $U.S. WTI has, in Canada, been somewhat tempered by a stronger U.S. foreign exchange rate and strong capital markets activity and equity financings in the first three quarters of the year which reduced debt levels and provided capital to exploration and production companies.
Beyond 2014, the Petroleum Services Association of Canada ("PSAC") is forecasting 10,100 wells will be drilled in 2015 compared to their 2014 forecast of 10,830 wells. The Company has been monitoring 2015 exploration and production company budgets and expects activity levels to persist through to spring break-up in the first quarter of 2015. The Company has less visibility into the second half of 2015 and possible impacts of a sustained drop in WTI crude oil price.
With the major integration of the Calmena assets complete, the Company will focus on operational best practices and continue to build operational flexibility in its captured asset base.
The Company continues to evaluate strategic acquisition opportunities to increase market presence in existing operating areas as well as add operations in new geographic locations.
About Great Prairie Energy Services Inc.
Great Prairie Energy Services Inc. is a Canadian energy services company focused on servicing oil and gas activity in Saskatchewan and Alberta. Great Prairie provides general oilfield hauling, equipment rental and frac fluid services out of Kindersley, SK, Lloydminster, SK, Drumheller, AB, Sundre, AB and Valleyview, AB through its operating entities.
Forward-Looking Statements and Reader Advisory
This news release contains forward-looking statements relating to future growth, future acquisition opportunities and planned capital expenditures of Great Prairie. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur, which may cause actual performance and results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. These assumptions, risks and uncertainties include, among other things: the risk that the Company may not be able to retain key employees to continue to maintain its operations; risk that the perceived benefit of the acquisition of the Purchased Assets may not be realized; risk that Great Prairie's ability to complete future financings; risks relating to the state of the economy in general and capital markets in particular; risks relating to investor interest in the business and future prospects of Great Prairie; risks that Great Prairie's customers may not increase, or may even decrease, their activity levels; risks relating to changes in the demand for or the price of oil and natural gas; risks relating to increases in costs of labor, fuel, equipment and supplies employed and used in Great Prairie's businesses; risks relating to compliance with environmental, health and safety laws and regulations, as well as actions by governmental and regulatory authorities; risks that Great Prairie may not be able to execute its capital expenditure program and/or that any such capital expenditure investments, if made, will not generate adequate returns; and other risks affecting Great Prairie's ability to maintain or improve operations, including its ability to maintain prices for services under market pricing pressures, weather risks, and the impact of potential increases in general and administrative expenses.
The forward-looking statements contained in this press release are made as of the date of this press release. Except as required by law, Great Prairie disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities law. Additionally, Great Prairie undertakes no obligation to comment on the expectations of, or statements made, by third parties in respect of the matters discussed above. There is a significant risk that predictions, forecasts, conclusions or projections will not prove to be accurate, that management's or third party's assumptions may not be accurate and that actual results, performance or achievements may differ significantly from such predictions, forecasts, conclusions or projections expressed or implied by such forward-looking statements.
Readers should note that earnings before interest, taxes, depreciation, amortization, fair value adjustment on contingent consideration and share based compensation("EBITDAS") is a non-GAAP financial measure and does not have any standardized meaning under GAAP and is therefore unlikely to be comparable to similar measures presented by other companies. Great Prairie believes that EBITDAS is a useful supplemental measure, which provide an indication of the results generated by the Great Prairie's primary business activities prior to consideration of how those activities are financed, amortized or taxed. Readers are cautioned, however, that EBITDAS should not be construed as an alternative to comprehensive income (loss) determined in accordance with GAAP as an indicator of Great Prairie's financial performance.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.