Dalmac Energy Reports Second Quarter 2014 Financial Results

TSX Venture: "DAL" 
EDMONTON, Nov. 21, 2013 /CNW/ - John Babic, President and CEO of Dalmac Energy 
Inc. ("Dalmac") (TSX Venture "DAL") is pleased to announce fiscal 2014 second 
quarter financial results for the three month and six month periods ended 
October 31, 2013. 
Revenue in the second quarter was $9.3 million as compared with $10.1 million 
in the second quarter of the prior year. Net Earnings for Q2'14 were $313K as 
opposed to $719K in the previous year. Gross margin of 27% for the current 
quarter represents an increase of 9% over Q1'14 and is only 2% shy of the 29% 
for YTD'13. Given that the majority of Dalmac's service activity in Q2'14 was 
production related this is a positive indicator of improving profitability as 
production operations are more price sensitive than drilling and completions. 
The margin is expected to continue to improve with the advent of more drilling 
and completion activity. The Q2'14 EBITDAS declined 25% to $1.3M and was 
down 52% for the year to date. 
The current quarter (Q2'14) was impacted by Canadian natural gas prices which 
fell sharply in July on the announcement that TransCanada Corp. intended to 
raise its short-term tolls on its cross-country natural gas pipelines in an 
effort to get shippers to sign up for long-term contracts. Producers reacted 
by putting more gas into storage rather than shipping it. This set the stage 
for lower gas pricing which is expected to linger until the onset of the 
winter heating season. According to a Bloomberg News Report on September 13, 
gas shipped from the Alberta AECO hub traded at a discount of $1.72 per MMBtu 
which is the widest since November 2009. The average discount price last year 
was about $0.54. Oil prices were also impacted by pipeline charges. As of the 
aforementioned date, western Canadian Select prices were discounted by $27/bbl 
from the WTI price. This was the steepest discount since March 4, 2013. The 
net impact of all this to Dalmac is that it pushed back the start of the 
drilling and completion season by about 2 months. 
(in thousands of dollars, 
except per share data)           Q2 2014 Q2 2013    YTD 2014  YTD 2013 
                                                           
Revenues                          $9,330 $10,153     $16,944   $18,299 
Gross margin                       2,477    3,046      3,841     5,227 
Gross margin %                       27%      30%        23%       29% 
EBITDAS(1)                         1,272    1,693      1,291     2,700 
EBIDTAS per share -- basic          0.05     0.07       0.06      0.13 
Net income                           313      719      (388)       958 
Net income  per share --            0.01     0.03     (0.02)      0.05
basic         
Net income per share --             0.01     0.03     (0.02)      0.05
diluted     
(1) EBITDAS stands for earnings before interest, taxes, depreciation,
amortization, and stock based compensation. 
Outlook 
Dalmac continues to believe oilfield services activity for the remainder of 
2013 will improve as the cold weather kicks in and narrows the oil and gas 
price differentials by increasing demand. Also in October 2013, Dalmac entered 
into a rental agreement with a frac tank provider which will enable the 
Company to bid on entire frac jobs requiring water storage capacities ranging 
from 1420m3 to 6550m3. This will not only help our customers increase their 
water management efficiencies but will also create more demand for our fluid 
hauling operations. The outlook for the longer term is equally gratifying as 
new liquefied natural gas projects gain approval and crude oil transportation 
capacity increases as a result of rail and pipeline development. Dalmac 
expects that the forecasted drilling activity increases in the Duvernay and 
Montney resource plays of Alberta will not only stimulate more production 
opportunities but will also create more demand for all of the Company's 
products and services. Currently, the largest challenges facing the oilfield 
services industry are producer spending constraints, pricing differentials on 
Canadian crude oil, historically low natural gas prices, and the challenge to 
attract and retain skilled labour. Dalmac believes that its new and expanded 
product and equipment mix along with its corporate culture will provide a 
distinct advantage in retaining and attracting qualified individuals. Dalmac 
is of the view that its strong customer base and solid reputation will provide 
a compelling competitive advantage which will enable the Company to continue 
its growth strategy and enable it to perform better than its current industry 
peers. 
Conference call 
A conference call to discuss the results will be held Thursday, November 21, 
2013, at 1:30 pm EST/11:30 am MST. 
To participate in the conference call, please dial 416-644-3417 local in 
Toronto or toll-free 1-800-814-4861 and request the Dalmac Energy conference. 
Statements throughout this report that are not historical facts may be 
considered 'forward looking statements'. Such statements are based on 
current expectations that involve risks and uncertainties, which could cause 
actual results to differ from those anticipated. Important factors that can 
cause anticipated outcomes to differ materially from actual outcomes include 
the impact of general economic conditions, industry conditions, competition 
from other industry participants, volatility of petroleum prices, the ability 
to attract and retain qualified personnel, changes in laws or regulation, 
currency fluctuations, continued ability to access capital from available 
facilities and environmental risks. References to "Dalmac', the 
"Corporation", "Company", "us", "we", and "our" mean Dalamc Energy Inc. and 
its subsidiary Dalmac Oilfield Services Inc. The TSX Venture Exchange does 
not accept responsibility for the adequacy or accuracy of this release. We 
seek safe harbor.
 

SOURCE  Dalmac Energy Inc. 
John Beasley - CFO - Dalmac Energy Tel: 780-988-8510 Ext. 227 
Email:jbeasley@dalmac.ca 
Doren Quinton, President QIS Capital Corp. Ph: (250) 377-1182 
Email:info@smallcaps.ca www.smallcaps.ca 
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CO: Dalmac Energy Inc.
ST: Alberta
NI: OIL ERN CONF  
-0- Nov/21/2013 14:00 GMT
 
 
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