CALGARY, Nov. 6, 2014 /CNW/ - Canyon Services Group Inc. ("Canyon" or the "Company"
is pleased to announce its third quarter 2014 results. The following results should be read in conjunction with the Management's Discussion and Analysis, the interim consolidated financial statements and notes of Canyon Services Group Inc. for the nine months ended September 30, 2014 and should also be read in conjunction with the audited consolidated financial statements and Annual Information Form for the year ended December 31, 2013, which are available on SEDAR at www.sedar.com.
The current quarter includes the results of Canyon's pressure pumping business as well as the results of Fraction Energy Services Ltd., ("Fraction"
a leading provider of fracturing fluid management, including water sourcing, transfer, wellsite storage, fluid heating, flowback transfer and produced water storage services, which was acquired by Canyon effective July 1, 2014.
The operating and financial highlights for the three and nine months ended September 30, 2014 are summarized as follows:
•Q3 2014 represents a record quarter with revenues reaching $204.5 million compared to $81.1 million in Q3 2013, an increase of 152%. For the nine months ended September 30, 2014, consolidated revenues were $402.9 million, a 106% increase over $195.4 million recorded in the comparable period of 2013.
•The increased revenues combined with Canyon's considerable operating leverage in its pressure pumping business and the inclusion of Fraction resulted in consolidated EBITDA before share based payments improving to $57.7 million in the current quarter from $14.2 million in Q3 2013 and consolidated income and comprehensive income increasing to $31.7 million in Q3 2014 from $3.9 million in Q3 2013. For the nine months ended September 30, 2014 consolidated EBITDA before share based payments increased to $75.9 million from $21.5 million, while consolidated income and comprehensive income increased to $28.3 million from a loss and comprehensive loss of $4.8 million for the comparable 2013 period.
•Effective July 1, 2014, Canyon acquired Fraction, a leading provider of water and fracturing fluid logistics, containment, transfer and storage for the oil and gas industry in NW Alberta and NE British Columbia. In Q3 2014, Fraction contributed $16.3 million to consolidated revenue, $6.2 million to consolidated EBITDA before stock-based compensation expense and $3.6 million to consolidated income and comprehensive income.
•Effective July 14, 2014, Canyon acquired four deep coiled tubing packages which included twin fluid pumpers, BOPs, injectors and three cranes (the "Assets"
from a Canadian oilfield services company for approximately $19.7 million. This acquisition has increased Canyon's deep coiled tubing fleet to 11 packages.
•Including the purchase of the Assets but excluding the purchase of Fraction, Canyon's 2014 capital budget is estimated at $107 million. This amount includes fracturing equipment consisting of 30,000 Hydraulic Horsepower ("HHP"
in pumping capacity as well as miscellaneous support equipment such as sand logistics equipment, a high rate blender and transportation equipment, coiled tubing equipment including the Assets described above, nitrogen and cement and acid equipment, expansion of Canyon's Grande Prairie operating base and storage tanks and water transfer equipment for the Fraction business.
•On September 25, 2014, Canyon declared a quarterly dividend of $0.15 per common share, or $10.3 million, which was paid to shareholders on October 24, 2014.
•Canyon remains in a very strong financial position. As at September 30, 2014, Canyon had available credit facilities combined with positive working capital totaling $100 million.
•The Board of Directors of the Company has approved a 2015 capital budget of $63 million. This amount includes $43 million for the construction of 25,000 HHP of new fracturing equipment along with additional blending, sand management, logistics and miscellaneous support equipment. In addition, this capital budget includes $12 million for ongoing annual maintenance capital plus $8 million of fluid management services equipment.