CALGARY, Feb. 26, 2015 /CNW/ - Western Energy Services Corp. ("Western"
or the "Company") (TSX: WRG) is pleased to release its fourth quarter
2014 and year end financial and operating results. Additional
information relating to the Company, including the Company's financial
statements and management's discussion and analysis as at and for the
years ended December 31, 2014 and 2013 will be available on SEDAR at www.sedar.com. All amounts are denominated in Canadian dollars (CDN$) unless
otherwise identified.
Fourth Quarter 2014 Highlights:
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Operating Revenue totalled $129.2 million, a $9.4 million increase (or
8%) over the same period in the prior year as contract drilling day
rates improved in both Canada and the United States and utilization and
pricing improved in the production services segment;
-
Contract drilling operating days remained relatively constant year over
year as a larger average drilling rig fleet in Canada was offset by
lower utilization in Canada and the United States. Utilization per
operating day in the Canadian contract drilling segment decreased to
59%, which was higher than the CAODC industry average of 45% but lower
than 65% in the fourth quarter of 2013. In the United States, contract
drilling utilization per operating day remained strong at 85% as
compared to 87% in the same period of the prior year, as the fleet was
essentially fully utilized in both periods;
-
Well servicing activity increased in most of Western's operating areas,
particularly the focus on steam assisted gravity drainage ("SAGD") work
in the oil sands in northern Alberta resulted in well servicing
utilization improving to 58% in the fourth quarter of 2014 as compared
to 53% in the fourth quarter of 2013;
-
Adjusted EBITDA totalled $50.4 million (39% of Operating Revenue) in the
fourth quarter of 2014 as compared to $43.5 million (36% of Operating
Revenue) in the same period of the prior year. The increase in
Adjusted EBITDA is mainly due to improved rates in the contract
drilling segment and higher pricing and utilization in the production
services segment;
-
Although actual results were as expected, and have improved year over
year, as a result of the declining commodity price environment and the
reduced outlook for oilfield services activity and pricing, Western
recorded an impairment loss on goodwill in the production services
segment of $22.7 million, as well as a loss on the decommissioning of a
shallow drilling rig, used drilling equipment and underutilized
oilfield rental equipment totalling $7.2 million;
-
During the fourth quarter of 2014, capital expenditures totalled $31.1
million and included $23.6 million of expansion capital, $5.6 million
of maintenance capital and $1.9 million for rotational equipment.
Capital spending mainly relates to Western's rig build program which
incurred costs on the construction of one slant well servicing rig and
four drilling rigs, one of which was commissioned in the period;
-
On December 18, 2014, Western increased its four year extendible credit
facility (the "Revolving Facility") to $175.0 million from $125.0
million previously, with a maturity date extension to December 17,
2018, and increased Western's operating demand revolving loan (the
"Operating Facility") to $20.0 million from $10.0 million previously.
Full Year 2014 Highlights:
-
Operating Revenue totalled $474.1 million, a $121.0 million increase (or
34%) over the prior year due to higher utilization, improved day rates,
and a larger average drilling rig fleet in the contract drilling
segment, as well as improved utilization and pricing, in addition to
the increased size and scale of Western's production services segment
following the acquisition of IROC Energy Services Corp. ("IROC") in
April of 2013;
-
Contract drilling utilization per operating day in Canada averaged 58%,
as compared to the CAODC industry average of 44% and 55% in the prior
year. In the United States, contract drilling utilization per
operating day increased by 1,600 bps to 83% as compared to 67% in
2013. With the exception of downtime related to the completion of two
1,500 hp AC pad conversions in the first half of 2014, the United
States fleet was essentially fully utilized in 2014;
-
Total well servicing hours in Western's production services segment
increased 64% to 127,768 from 77,879 in 2013. The increase is
attributed to improved utilization, which increased to 54% in 2014 as
compared to 45% in the prior year, coupled with the increased size and
scale of Western's well servicing operations subsequent to the IROC
acquisition;
-
Adjusted EBITDA totalled $176.8 million (37% of Operating Revenue) in
2014 as compared to $117.4 million (33% of Operating Revenue) in 2013.
The increase in Adjusted EBITDA reflects the increased activity,
improved day rates and the larger drilling rig fleet in the contract
drilling segment, as well as improved utilization and pricing, in
addition to the increased size and scale of Western's production
services segment and effective cost control in all of Western's
divisions;
-
Capital expenditures totalled $108.6 million and include $85.2 million
of expansion capital, $14.8 million of maintenance capital and $8.6
million of rotational equipment. Capital spending mainly relates to the
drilling rig build program in the contract drilling segment as three
drilling rigs were commissioned in 2014, with an additional three
drilling rigs under construction at year end. Additionally, two 1,500
hp AC pad conversions were completed in the United States in the second
quarter of 2014.
Selected Financial Information
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(stated in thousands, except share and per share amounts) |
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| Three months ended December 31 |
| Year ended December 31 |
Financial Highlights | 2014 | 2013 | Change |
| 2014 | 2013 | Change |
Revenue
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139,210
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129,713
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7%
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507,832
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379,943
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34%
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Operating Revenue(1) |
129,181
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119,831
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8%
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474,120
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353,124
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34%
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Gross Margin(1) |
57,826
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52,980
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9%
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207,231
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147,559
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40%
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Gross Margin as a percentage of Operating Revenue
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45%
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44%
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2%
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44%
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42%
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5%
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Adjusted EBITDA(1) |
50,419
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43,543
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16%
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176,777
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117,423
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51%
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Adjusted EBITDA as a percentage of Operating Revenue
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39%
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36%
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8%
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37%
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33%
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12%
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Cash flow from operating activities
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47,830
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36,866
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30%
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181,351
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114,358
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59%
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Capital expenditures
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31,071
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27,529
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13%
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108,604
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95,234
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14%
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Net income (loss)
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(8,164)
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15,797
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(152%)
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36,450
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35,246
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3%
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-basic net income (loss) per share
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(0.11)
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0.22
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(150%)
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0.49
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0.51
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(4%)
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-diluted net income (loss) per share
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(0.11)
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0.21
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(152%)
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0.48
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0.50
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(4%)
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Weighted average number of shares
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-basic
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74,882,690
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73,374,219
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2%
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74,396,701
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69,032,574
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8%
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-diluted
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74,927,714
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73,654,868
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2%
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75,427,149
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69,873,460
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8%
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Outstanding common shares as at period end
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74,866,028
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73,386,191
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2%
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74,866,028
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73,386,191
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2%
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Dividends declared
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5,614
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5,504
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2%
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22,376
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20,983
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7%
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(1) See "Financial Measures Reconciliations" included in this press
release.
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| Three months ended December 31, | Year ended December 31 |
Operating Highlights | 2014 | 2013 | Change | 2014 | 2013 | Change |
Contract Drilling |
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Canadian Operations: |
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Contract drilling rig fleet:
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-Average
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50
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46
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9%
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49
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45
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9%
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-End of period
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49
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47
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4%
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49
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47
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4%
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Operating Revenue per revenue day(1) |
27,104
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26,060
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4%
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26,178
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24,829
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5%
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Operating Revenue per operating day(2) |
29,710
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28,884
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3%
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28,699
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27,513
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4%
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Drilling rig operating days(3) |
2,724
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2,754
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(1%)
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10,478
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9,098
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15%
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Drilling rig utilization per revenue day(4) |
65%
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72%
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(10%)
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64%
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61%
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5%
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Drilling rig utilization rate per operating day(5) |
59%
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65%
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(9%)
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58%
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55%
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5%
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CAODC industry average utilization rate(5) |
45%
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43%
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5%
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44%
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40%
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10%
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United States Operations: |
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Contract drilling rig fleet:
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-Average
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5
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5
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-%
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5
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5
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-%
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-End of period
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5
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5
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-%
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5
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5
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-%
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Operating Revenue per revenue day (US$)(1) |
28,309
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23,457
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21%
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26,124
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22,507
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16%
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Operating Revenue per operating day (US$)(2) |
31,876
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26,559
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20%
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29,680
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26,942
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10%
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Drilling rig operating days(3) |
385
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402
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(4%)
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1,506
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1,228
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23%
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Drilling rig utilization per revenue day(4) |
95%
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99%
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(4%)
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94%
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81%
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16%
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Drilling rig utilization per operating day(5) |
85%
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87%
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(2%)
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83%
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67%
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24%
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Production Services |
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Well servicing rig fleet:
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-Average
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65
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65
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-%
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65
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48
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35%
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-End of period
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65
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65
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-%
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65
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65
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-%
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Operating Revenue per service hour(2) |
837
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804
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4%
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817
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766
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7%
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Total service hours
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34,456
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31,403
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10%
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127,768
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77,879
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64%
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Service rig utilization rate(6) |
58%
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53%
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9%
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54%
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45%
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20%
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(1)
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Operating Revenue per revenue day is calculated using Operating Revenue
divided by operating and mobilization days.
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(2)
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Operating Revenue per operating day and per service hour are calculated
using Operating Revenue divided by operating days and service hours,
respectively.
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(3)
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Drilling rig operating days are calculated on a spud to rig release
basis.
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(4)
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Drilling rig utilization rate per revenue day is calculated based on
operating and mobilization days divided by total available days.
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(5)
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Drilling rig utilization rate per operating day is calculated on
operating days only (i.e. spud to rig release basis) divided by total
available days.
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(6)
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Service rig utilization rate is calculated based on actual well
servicing hours divided by available hours, being 10 hours per day, per
well servicing rig, 365 days per year.
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Financial Position at (stated in thousands) | December 31, 2014 | December 31, 2013 | Change |
Working capital
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78,336
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50,616
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55%
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Property and equipment
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827,306
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783,225
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6%
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Total assets
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1,057,118
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986,792
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7%
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Long term debt
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264,165
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262,877
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-%
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Western is an oilfield service company focused on three core business
lines: contract drilling, well servicing and oilfield rental equipment
services. Western provides contract drilling services through its
division, Horizon Drilling ("Horizon") in Canada, and its wholly owned
subsidiary Stoneham Drilling Corporation ("Stoneham"), in the United
States. Subsequent to the acquisition of IROC on April 22, 2013,
Western provides well servicing operations in Canada through Western
Energy Services Partnership's (the "Partnership") division, Eagle Well
Servicing ("Eagle"). Previously, well servicing operations were
conducted through Western's division, Matrix Well Servicing
("Matrix"). Western also provides oilfield rental equipment services
in Canada through the Partnership's division, Aero Rental Services
("Aero"). Financial and operating results for Eagle and Aero from the
date of the acquisition, as well as Matrix, are included in Western's
production services segment.
Western currently has a drilling rig fleet of 54 rigs, with an average
age of approximately seven years. Western is the sixth largest
drilling contractor in Canada with a fleet of 49 rigs operating through
Horizon. Additionally, Western has five Efficient Long Reach ("ELR")
triple drilling rigs deployed in the United States operating through
Stoneham. Western is also the seventh largest well servicing company
in Canada with a fleet of 65 rigs operating through Eagle. Western's
well servicing rig fleet is one of the newest in the Western Canadian
Sedimentary Basin ("WCSB"), with an average age of approximately five
years. Western's oilfield equipment rental division, which operates
through Aero, provides oilfield rental equipment for frac services,
well completions and production work, coil tubing services and
drilling.
Commodity prices such as crude oil and natural gas impact the cash flow
of Western's customers, which in turn impacts the demand for Western's
services. Overall performance of the Company was affected by the
volatility of crude oil in the second half of 2014. Crude oil prices
were strong in the first six months of 2014, however weakened
significantly in the last half of 2014. During the first six months of
2014, light oil such as West Texas Intermediate ("WTI") averaged
approximately US$95/bbl, while during the last half of 2014, WTI
averaged approximately US$85/bbl and approximately US$73/bbl in the
fourth quarter of 2014. From its peak in June 2014 of approximately
US$103/bbl to the December 31, 2014 exit price of approximately
US$53/bbl, WTI decreased by approximately 49%. Similarly, the price
for heavy oil, such as Western Canadian Select ("WCS"), averaged
approximately $89/bbl in the first half of 2014, while during the last
six months of 2014, WCS averaged approximately $75/bbl and
approximately $65/bbl in the fourth quarter of 2014. From its highest
price in June 2014 of approximately $95/bbl to approximately $43/bbl at
the end of the year, WCS decreased by approximately 55%. On a year
over year basis, the average price of WTI decreased by approximately 5%
in 2014, while WCS increased by approximately 11% as compared to the
prior year. Natural gas prices have marginally improved to average
approximately $4/mcf in the fourth quarter of 2014, a 3% increase as
compared to the same period in 2013. However, from February 2014 when
AECO averaged approximately $7/mcf to the exit price of approximately
$3/mcf at December 31, 2014, AECO decreased by approximately 57%. Year
over year, the AECO 30-day spot rate increased on average by 44% as
heating demand increased in the first quarter due to a cold winter,
resulting in decreased storage levels across North America.
Despite the reduction in commodity prices in the last half of the year,
strong demand for oilfield services resulted in increased drilling of
horizontal wells in both conventional and unconventional resource
plays. Horizontal wells in the WCSB, as a percentage of all wells
drilled, increased in the year ended December 31, 2014 to 75%, as
compared to 70% in the prior year. This has resulted in continued
demand in the WCSB for Western's ELR drilling rigs, as industry
utilization rates for the year ended December 31, 2014 averaged 44%,
which is consistent with the five year average and an improvement over
the prior year when industry utilization averaged 40%.
Outlook
Western's drilling rig fleet is specifically suited for drilling
horizontal wells of increased complexity. In total, 96% of Western's
fleet are ELR drilling rigs with depth ratings greater than 3,000
meters and all of Western's rigs are capable of drilling resource based
horizontal wells. Currently, 12 of Western's 54 drilling rigs (or 22%)
are operating under long term take-or-pay contracts, with 5 of these
contracts committed into 2016 and 2017, providing a base level of
future revenue. These contracts typically generate 250 operating days
per year in Canada, as spring breakup restricts activity during the
second quarter, while in the United States these contracts typically
range from 330 to 365 revenue generating days per year.
Western's revised capital budget for 2015 totals approximately $46
million comprised of $21 million of carry forward capital from 2014, $6
million in expansion capital and $19 million in maintenance capital.
The revised capital budget reflects a net decrease of $18 million from
Western's previously announced budget of $64 million. The following
table summarizes the changes in the 2015 capital budget:
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Capital Expenditures (stated in millions) | Original 2015 Budget | Cancellations | Increased 2014 Carry Forward | Revised 2015 Budget | Variance |
Expansion
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6
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-
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-
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6
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-
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Maintenance
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36
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(17)
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-
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19
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(17)
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Carry forward
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22
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(4)
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3
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21
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(1)
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Total Capital Expenditures | 64 | (21) | 3 | 46 | (18) |
Revised carry forward capital of $21 million relates to the completion
of two 5,000m telescopic ELR double drilling rigs, one 6,000m ELR AC
triple pad drilling rig and one slant well servicing rig. Expansion
capital of $6 million relates to additional oilfield rental equipment,
while maintenance capital of $19 million includes $13 million for the
contract drilling segment and $6 million for the production services
segment. Included in the maintenance capital budget is $1 million
related to rotational equipment. In addition, the majority of the
capital budget has been deferred until the second half of 2015 and will
be further postponed or cancelled if market conditions continue to
deteriorate. Western believes the 2015 capital budget provides a
prudent use of cash resources and ensures that it continues to maintain
its balance sheet flexibility, allowing for the execution on strategic
opportunities as they arise, or alternatively adjust downward, if the
downturn in oilfield service activity is prolonged. This budget
demonstrates the Company's commitment to maintaining its drilling and
well servicing rig fleets while expanding Western's strategic presence
in the oilfield rental equipment market. Western will continue to
evaluate and expand its operations in a disciplined manner and make any
required adjustments to its capital program as customer demand
improves.
The continued pressure on crude oil and natural gas prices, which are
currently near five year lows, has resulted in reductions to the
capital spending plans for the majority of our customers. In some
cases, the capital spending reductions have been significant. While
activity in the first two months of 2015 has been constant, although
lower than in the same period of the prior year, Western currently
expects an early end to first quarter activity, due to the current
commodity price environment. Activity levels throughout the oilfield
services industry for the remainder of 2015 are expected to be
significantly lower as compared to 2014, resulting in utilization and
price reductions across all of Western's business lines. Lower
activity and pricing pressure, will impact Western's Adjusted EBITDA
and cash flow from operating activities. Western's variable cost
structure, under which approximately 80% of operating and
administrative costs are variable, and prudent capital budget will aid
in preserving balance sheet strength. At December 31, 2014, Western's
net debt to trailing 12 month EBITDA ratio was 1.1. In addition to
$62.7 million in cash and cash equivalents at December 31, 2014,
Western has $175 million available on the Revolving Facility, which
does not mature until December 17, 2018, $20 million available on the
Operating Facility, and no principle repayments are due on the $265
million Senior Notes until they mature on January 30, 2019. As such,
Western is well positioned to manage the current slowdown in activity
and maintain a sustainable dividend.
Oilfield service activity will be impacted by the development of
resource plays in Alberta and northeast British Columbia including
those related to liquefied natural gas projects, increased crude oil
transportation capacity through rail and pipeline development and
foreign investment into Canada. Currently, the largest challenges
facing the oilfield service industry are producer spending constraints
as a result of lower commodity prices, pricing differentials on
Canadian crude oil, and the challenge to attract and retain skilled
labour. The Company believes Western's modern drilling and well
servicing rig fleet, above industry average utilization, and corporate
culture will provide a distinct advantage in retaining and attracting
qualified individuals. Western's view is that its modern fleet, strong
customer base and solid reputation provide a competitive advantage
which will enable the Company to continue its growth strategy and
higher than industry average utilization.
Quarterly Dividend
On February 26, 2015, Western's Board of Directors declared a quarterly
dividend of $0.075 per share, which will be paid on April 16, 2015, to
shareholders of record at the close of business on March 31, 2015. The
dividends are eligible dividends for Canadian income tax purposes. On
a prospective basis, the declaration of dividends will be determined on
a quarter-by-quarter basis by the Board of Directors.
Normal Course Issuer Bid
On December 15, 2014, Western initiated a normal course issuer bid (the
"Bid"), which has been filed with and accepted by the Toronto Stock
Exchange. Pursuant to the Bid, Western may purchase for cancellation
up to 5,550,000 common shares of the Company. 23,400 common shares for
a total cost of approximately $0.1 million were repurchased in the
fourth quarter of 2014.
Financial Measures Reconciliations
Western uses certain measures in this press release which do not have
any standardized meaning as prescribed by International Financial
Reporting Standards ("IFRS"). These measures which are derived from
information reported in the consolidated statements of operations and
comprehensive income may not be comparable to similar measures
presented by other reporting issuers. These measures have been
described and presented in this press release in order to provide
shareholders and potential investors with additional information
regarding the Company.
Operating Revenue
Management believes that in addition to revenue, Operating Revenue is a
useful supplemental measure as it provides an indication of the revenue
generated by Western's principal operating activities, excluding flow
through third party charges.
Gross Margin
Management believes that in addition to net income, Gross Margin is a
useful supplemental measure as it provides an indication of the results
generated by Western's principal operating activities prior to
considering administrative expenses, depreciation and amortization, how
those activities are financed, the impact of foreign exchange, how the
results are taxed, how funds are invested, and how non-cash items and
one-time gains and losses affect results.
The following table provides a reconciliation of revenue under IFRS, as
disclosed in the consolidated statements of operations and
comprehensive income, to Operating Revenue and Gross Margin:
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| Three months ended December 31 | Year ended December 31 |
(stated in thousands) | 2014 | 2013 | 2014 | 2013 |
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Operating Revenue |
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Drilling
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94,877
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90,754
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350,105
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284,469
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Production Services
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34,447
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29,275
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125,404
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69,004
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Less: inter-company eliminations
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(143)
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(198)
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(1,389)
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(349)
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| 129,181 | 119,831 | 474,120 | 353,124 |
Third party charges
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10,029
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9,882
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33,712
|
26,819
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Revenue | 139,210 | 129,713 | 507,832 | 379,943 |
Less: operating expenses
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(98,524)
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(92,901)
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(363,603)
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(280,980)
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Add:
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Depreciation - operating
|
16,740
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15,916
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61,991
|
47,701
|
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Stock based compensation - operating
|
400
|
252
|
1,011
|
895
|
Gross Margin | 57,826 | 52,980 | 207,231 | 147,559 |
Adjusted EBITDA
Management believes that in addition to net income, earnings before
interest and finance costs, taxes, depreciation and amortization, other
non-cash items and one-time gains and losses ("Adjusted EBITDA") is a
useful supplemental measure as it provides an indication of the results
generated by the Company's principal operating segments similar to
Gross Margin but also factors in the cash administrative expenses
incurred in the period.
Operating Earnings
Management believes that in addition to net income, Operating Earnings
is a useful supplemental measure as it provides an indication of the
results generated by the Company's principal operating segments similar
to Adjusted EBITDA but also factors in the depreciation expense charged
in the period.
The following table provides a reconciliation of net income under IFRS,
as disclosed in the consolidated statements of operations and
comprehensive income, to EBITDA, Adjusted EBITDA and Operating
Earnings:
|
|
|
|
|
|
|
Three months ended December 31 | Year ended December 31 |
(stated in thousands) | 2014 | 2013 | 2014 | 2013 |
|
|
|
|
|
Net income (loss) | (8,164) | 15,797 | 36,450 | 35,246 |
Add:
|
|
|
|
|
|
Finance costs
|
4,897
|
5,155
|
20,782
|
17,058
|
|
Income taxes
|
5,784
|
5,302
|
22,311
|
13,000
|
|
Depreciation - operating
|
16,740
|
15,916
|
61,991
|
47,701
|
|
Depreciation - administrative
|
444
|
345
|
1,776
|
1,431
|
EBITDA | 19,701 | 42,515 | 143,310 | 114,436 |
Add:
|
|
|
|
|
|
Stock based compensation - operating
|
400
|
252
|
1,011
|
895
|
|
Stock based compensation - administrative
|
1,073
|
413
|
2,827
|
1,596
|
|
Impairment loss on property and equipment
|
7,247
|
-
|
7,247
|
-
|
|
Impairment loss on goodwill
|
22,668
|
-
|
22,668
|
-
|
|
Other items
|
(670)
|
363
|
(286)
|
496
|
Adjusted EBITDA | 50,419 | 43,543 | 176,777 | 117,423 |
Subtract:
|
|
|
|
|
|
Depreciation - operating
|
(16,740)
|
(15,916)
|
(61,991)
|
(47,701)
|
|
Depreciation - administrative
|
(444)
|
(345)
|
(1,776)
|
(1,431)
|
Operating Earnings | 33,235 | 27,282 | 113,010 | 68,291 |
2014 Fourth Quarter Results Conference Call and Webcast
Western has scheduled a conference call and webcast to begin at 12:00
p.m. MST (2:00 p.m. EST) on Friday, February 27, 2015.
The conference call dial-in number is 1-888-231-8191.
A live webcast of the conference call will be accessible on Western's
website at www.wesc.ca by selecting "Investors", then "Webcasts". Shortly after the live webcast, an archived version will be
available for approximately 14 days.
An archived recording of the conference call will also be available
approximately one hour after the completion of the call until March 13,
2015 by dialing 1-855-859-2056 or 416-849-0833, passcode 64127463.
Forward-Looking Statements and Information
This press release contains certain statements or disclosures relating
to Western that are based on the expectations of Western as well as
assumptions made by and information currently available to Western
which may constitute forward-looking information under applicable
securities laws. All such statements and disclosures, other than those
of historical fact, which address activities, events, outcomes, results
or developments that Western anticipates or expects may, or will occur
in the future (in whole or part) should be considered forward-looking
information. In some cases forward-looking information can be
identified by terms such as "forecast", "future," "may", "will",
"expect", "anticipate,", "believe", "potential", "enable", "plan",
"continue", "contemplate", "pro forma", or other comparable
terminology.
In particular, forward-looking information in this press release
includes, but is not limited to, statements relating to the future
demand for the Company's services and equipment; the terms of existing
and future drilling contracts in Canada and the US and the revenues
resulting therefrom (including the number of operating days typically
generated from the Company's contracts); the Company's expansion and
maintenance capital plans for 2015, including the ability of current
capital resources to cover Western's financial obligations and the 2015
capital budget; the Company's expected sources of funding to support
such capital plans and the Company's plans to postpone capital spending
if market conditions continue to deteriorate; expectations as to the
increase in crude oil transportation capacity through rail and pipeline
development; expectations as to the necessary approvals for liquefied
natural gas projects being obtained; the expectation of continued
foreign investment into the Canadian oilfield industry; the expectation
of an early end to first quarter activity; the expectation of
significantly lower activity levels in the oilfield services industry
in 2015 (compared to 2014); and the expectation that producer spending
constraints will continue to be a large challenge facing the Company in
2015.
The material assumptions in making the forward-looking statements in
this press release include, but are not limited to, assumptions
relating to, demand levels and pricing for oilfield services;
fluctuations in the price and demand for oil and natural gas; the
continued low levels of and pressures on commodity pricing; the
continued business relationship between the Company and its one
significant customer; general economic and financial market conditions;
the development of liquefied natural gas projects, crude oil transport
and pipeline approval and development; the Company's ability to finance
its operations; the effects of seasonal and weather conditions on
operations and facilities; the competitive environment to which the
various business segments are, or may be, exposed in all aspects of
their business; the ability of the Company's various business segments
to access equipment (including spare parts and new technologies);
changes in laws or regulations; currency exchange fluctuation; the
ability of the Company to attract and retain skilled labour and
qualified management; the ability to retain and attract significant
customers; and other unforeseen conditions which could impact the use
of services supplied by Western including Western's ability to respond
to such conditions.
Although Western believes that the expectations and assumptions on which
such forward-looking statements and information are based on are
reasonable, undue reliance should not be placed on the forward-looking
statements and information as Western cannot give any assurance that
they will prove to be correct. Since forward-looking statements and
information address future events and conditions, by their very nature
they involve inherent risks and uncertainties. Actual results could
differ materially from those currently anticipated due to a number of
factors and risks. These include, but are not limited to, the risk
that the demand for oilfield services will not continue to improve for
the remainder of 2015 and that commodity price levels will remain low,
and other general industry, economic, market and business conditions.
Readers are cautioned that the foregoing list of risks, uncertainties
and assumptions are not exhaustive. Additional information on these
and other risk factors that could affect Western's operations and
financial results are included in Western's annual information form
which may be accessed through the SEDAR website at www.sedar.com. The forward-looking statements and information contained in this
press release are made as of the date hereof and Western does not
undertake any obligation to update publicly or revise any
forward-looking statements and information, whether as a result of new
information, future events or otherwise, unless so required by
applicable securities laws.
SOURCE Western Energy Services Corp.
<p> <br/> <b>Alex R.N. MacAusland</b><br/> President and CEO<br/> 403.984.5932 <br/> <a href="mailto:amacausland@wesc.ca">amacausland@wesc.ca</a> </p> <p> <b>Jeffrey K. Bowers</b><br/> Senior VP Finance and CFO<br/> 403.984.5933<br/> <a href="mailto:jbowers@wesc.ca">jbowers@wesc.ca</a> </p>