Breaking News

Glaxo to Pay $488.7 Million Fine to End China Corruption Probe
Tweet TWEET

Calfrac Announces Closing of Acquisition, Contract Award and Operational Update

Calfrac Announces Closing of Acquisition, Contract Award and Operational Update 
CALGARY, Oct. 3, 2013 /CNW/ - Calfrac Well Services Ltd. ("Calfrac") (TSX-CFW) 
is pleased to announce that it has completed the previously announced 
acquisition of all of the operating assets of Mission Well Services, LLC 
("Mission"), a privately-held hydraulic fracturing and coiled tubing services 
provider focused in the Eagle Ford shale region of Texas (the "Mission Asset 
Acquisition"). Under the terms of the asset purchase agreement in connection 
with the Mission Asset Acquisition, the total purchase price was approximately 
US$147 million, which included certain working capital associated with the 
ongoing operations of the business. The purchase price is subject to certain 
post-closing adjustments related to inventory verifications and equipment 
inspections. 
With the closing of the Mission Asset Acquisition, Calfrac now has 
approximately 1,182,500 of conventional pumping horsepower, placing it among 
the world's largest and most capable fracturing companies. Calfrac intends 
to transfer a portion of the Mission assets to other active operating areas in 
the United States, and believes that its geographic diversification will allow 
it the flexibility to redeploy other assets as opportunities arise. 
Doug Ramsay, the Chief Executive Officer of Calfrac, stated that "We are very 
pleased that the acquisition of the operating assets of Mission has 
successfully closed. This acquisition provides us with a platform to enter 
the Eagle Ford shale region and to assess opportunities in other basins in 
Texas, while adding high quality fracturing and coiled tubing equipment to 
other Calfrac operating areas." 
Peters & Co. Limited and RBC Capital Markets LLC acted as joint financial 
advisors to Calfrac in connection with the acquisition. 
Contract Award 
Calfrac is also pleased to announce that it has entered into a three year 
contract with minimum monthly commitments and on standard terms and conditions 
for the local market with respect to the provision of pressure pumping 
services to YPF S.A. in Argentina. Calfrac expects unconventional oil and gas 
activity will continue to develop significantly in Argentina in the future. 
As a result, Calfrac views this contract with the largest operator in 
Argentina as a major milestone since it provides a strong foundation from 
which to build upon Calfrac's hydraulic fracturing, coiled tubing and 
cementing services in Argentina. 
Operational Update - Third Quarter Preliminary Results 
In connection with its recently announced notes offering, Calfrac hereby 
announces that it expects that consolidated financial results for its third 
fiscal quarter ending September 30, 2013 will not meet its expectations based 
on a preliminary review of third quarter operating results. Calfrac estimates 
that revenue will be between $380 million and $400 million and that operating 
income, exclusive of foreign exchange gains or losses, will be between $48 
million to $52 million for the third quarter. Such preliminary estimates are 
being provided despite the fact that Calfrac has not yet closed its books for 
its third quarter and its auditors have not performed any procedures with 
respect to such information nor completed their review of Calfrac's results 
for such quarter. Calfrac's actual results may differ materially from the 
preliminary estimates due to the completion of its financial closing 
procedures and other developments that may arise between now and the time the 
financial results for its third quarter are finalized. Calfrac expects to 
report its third quarter results on November 6, 2013. Investors should 
exercise caution in relying on this information and should not draw any 
inferences regarding financial or operating data not provided. These 
preliminary estimates are not indicative of the results to be expected for the 
full year or any future period. 
Canada 
Calfrac anticipates that third quarter operating results in Canada will be 
below its internal expectations primarily due to lower than expected 
fracturing and coiled tubing activity as a result of wet weather in July and 
early August. Lower than planned activity with a few significant customers as 
well as competitive pricing on callout work also contributed to Calfrac's 
Canadian operating results in the third quarter being lower than expected. 
Calfrac's outlook for its fourth quarter of 2013 and the first quarter of 2014 
remains unchanged. Utilization is expected to improve in the fourth quarter as 
Calfrac's customers approach their programs with more urgency than what was 
experienced in the third quarter, which is expected to stabilize pricing for 
callout work and provide a platform for improved pricing dynamics in 2014. 
United States 
In the United States, Calfrac expects revenue and operating income in the 
third quarter to meet its internal expectations as equipment utilization 
remained strong. Calfrac's contract coverage continues to mitigate the 
competitive pricing environment which exists in the U.S. pressure pumping 
market. Calfrac remains focused on managing its cost structure as proactively 
as possible, and its supply chain and logistic capabilities continue to 
further enhance its efficiencies. Calfrac's outlook for the remainder of 
2013 and early part of 2014 remains unchanged. The integration of the Mission 
assets will provide additional contribution in the future and Calfrac's 
positioning in the Marcellus, Bakken and Fayetteville is expected to drive 
high equipment utilization. However, pricing is expected to remain competitive 
for the foreseeable future until the overcapacity issue currently present in 
the U.S. market is rectified. 
Russia 
The third quarter results for Calfrac's Russian operations are projected to be 
consistent with internal expectations as horizontal multi-stage fracturing 
activity continues to expand in Western Siberia. Looking to the future, 
Calfrac has commenced the 2014 tender process and believes it will be in a 
position to report the results of this process in early 2014. 
Latin America 
Calfrac's Latin American operating results during the third quarter are 
projected to be below internal expectations as drilling and completion 
activity in the northern region of Mexico continued to be curtailed by budget 
reductions implemented by Calfrac's main customer. This reduction in activity 
is not expected to materially change in the remainder of 2013, but Calfrac is 
optimistic that activity will improve in 2014 as several large projects are 
currently being tendered. Calfrac has rationalized its cost structure to more 
closely align with its future revenue base and will monitor this closely as 
events unfold. 
In Argentina, the start-up phase of fracturing operations continued in the 
third quarter as this market continues to develop. Based on the YPF S.A. 
contract mentioned above, Calfrac expects activity to increase substantially 
in the fourth quarter and into 2014 and beyond. Calfrac views this contract 
with the largest operator in Argentina as a major milestone and expects 
unconventional activity to continue to grow in this market in the future. 
This press release does not constitute an offer to sell or the solicitation of 
an offer to buy the notes, and there shall not be any sale of the notes in any 
state or other jurisdiction in which such offer, solicitation or sale would be 
unlawful prior to registration or qualification under the securities laws of 
any such state or other jurisdiction. 
Calfrac's common shares are publicly traded on the Toronto Stock Exchange 
under the trading symbol "CFW". Calfrac provides specialized oilfield 
services to exploration and production companies designed to increase the 
production of hydrocarbons from wells drilled throughout western Canada, the 
United States, Russia, Mexico, Argentina and Colombia. 
This press release contains forward-looking statements and forward-looking 
information within the meaning of applicable securities laws. The use of any 
of the words "expect", "anticipate", "continue", "estimate", "may", "will", 
"project", "should", "believe", "plans", "intends" and similar expressions are 
intended to identify forward-looking information or statements. These 
forward-looking statements and information are based on certain expectations 
and assumptions made by Calfrac. More particularly and without limitation, 
this press release contains forward looking statements and information 
concerning expected operating strategies, expected movement of assets acquired 
pursuant to the Mission Asset Acquisition, expected benefits from the Mission 
Asset Acquisition, expected continued development of fracturing operations and 
unconventional activity in Argentina, expected financial results for past and 
future periods, the expected announcement date of Calfrac's consolidated 
financial results for its third fiscal quarter ending September 30, 2013 and 
the reasons therefor, anticipated pricing levels for Calfrac's services, 
anticipated equipment utilization levels, future oil and natural gas well 
activity in Calfrac's operating jurisdictions, future costs or potential 
liabilities, anticipated benefits of Calfrac's competitive position, 
anticipated outcomes of specific events, trends in the oil and natural gas 
industry and Calfrac's growth prospects including, without limitation, with 
respect to each of Calfrac's operating jurisdictions. Although Calfrac 
believes that the expectations and assumptions on which such forward-looking 
statements and information are based are reasonable, undue reliance should not 
be placed on the forward-looking statements and information as Calfrac 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, prevailing economic 
conditions; commodity prices; sourcing, pricing and availability of raw 
materials, component parts, equipment, suppliers, facilities and skilled 
personnel; dependence on major customers; uncertainties in weather and 
temperature affecting the duration of the service periods and the activities 
that can be completed; health, safety and environmental risks; exchange rate 
fluctuations; marketing and transportation; loss of markets; environmental 
risks; competition; incorrect assessment of the value of acquisitions, 
including the Mission Asset Acquisition; failure to integrate the relevant 
operating assets from acquisitions or realize the anticipated benefits of 
acquisitions, including the Mission Asset Acquisition; ability to access 
sufficient capital from internal and external sources; failure to obtain 
required regulatory and other approvals; and changes in legislation, including 
but not limited to tax laws, royalties and environmental regulations. 
Readers are cautioned that the foregoing list of risks and uncertainties is 
not exhaustive. Additional information on these and other risk factors that 
could affect Calfrac's operations or financial results are included in 
Calfrac's annual information form and may be accessed through the SEDAR 
website (www.sedar.com). The forward-looking statements and information 
contained in this press release are made as of the date hereof and Calfrac 
does not undertake any obligation to update publicly or revise any 
forward-looking statements or information, whether as a result of new 
information, future events or otherwise, unless so required by applicable 
securities laws.
 

SOURCE  Calfrac Well Services Ltd. 
Douglas R. Ramsay Chief Executive Officer Telephone:(403) 266-6000 
Fax:(403)266-7381  Tom J. Medvedic Senior Vice President, Corporate 
Development and Interim Chief Financial Officer Telephone: (403) 266-6000 Fax: 
(403) 266-7381   
To view this news release in HTML formatting, please use the following URL: 
http://www.newswire.ca/en/releases/archive/October2013/03/c6871.html 
CO: Calfrac Well Services Ltd.
ST: Alberta
NI: OIL MNA ORDER  
-0- Oct/03/2013 12:01 GMT
 
 
Press spacebar to pause and continue. Press esc to stop.