Calfrac Announces Fourth Quarter Results

CALGARY, Feb. 26, 2014 /CNW/ - Calfrac Well Services Ltd. ("Calfrac" or "the 
Company") (TSX-CFW) announces its financial and operating results for the 
three months and year ended December 31, 2013. 


    HIGHLIGHTS                                                        
                            Three Months Ended       Years Ended December
                                  December 31,                        31,
                           2013    2012 Change      2013      2012 Change
    (C$000s, except per
    share and unit
    data)                   ($)     ($)    (%)       ($)       ($)    (%)
    (unaudited)                                                          
    Financial                                                            
    Revenue             463,054 367,487     26 1,563,814 1,595,216    (2)
    Operating income(1)  57,416  43,218     33   188,076   257,013   (27)
    EBITDA(2)            57,667  46,866     23   185,933   264,471   (30)
           Per share -
           basic           1.25    1.05     19      4.07      5.97   (32)
           Per share -
           diluted         1.24    1.04     19      4.04      5.90   (32)
    Net income
    attributable to                                                      
           the
           shareholders
           of Calfrac                                                    
           before
           foreign
           exchange                                                      
           losses
           (gains)(3)    10,194   8,073     26    27,578    89,931   (69)
           Per share -
           basic           0.22    0.18     22      0.60      2.03   (70)
           Per share -
           diluted         0.22    0.18     22      0.60      2.01   (70)
    Net income
    attributable to                                                      
           the
           shareholders
           of Calfrac    11,764  11,243      5    27,914    97,146   (71)
           Per share -
           basic           0.25    0.25      -      0.61      2.19   (72)
           Per share -
           diluted         0.25    0.25      -      0.61      2.17   (72)
    Working capital
    (end of period)                              319,934   322,857    (1)
    Total equity (end
    of period)                                   795,207   780,759      2
    Weighted average
    common                                                               
           shares
           outstanding
           (000s)                                                        
           Basic         46,174  44,694      3    45,728    44,335      3
           Diluted       46,497  45,073      3    46,045    44,808      3
                                                                         
    Operating (end of
    period)                                                              
    Pumping horsepower
    (000s)                                         1,194       977     22
    Coiled tubing units
    (#)                                               38        29     31
    Cementing units (#)                               31        26     19
    (1)  Operating income is defined as net income (loss) before
         depreciation, interest, foreign exchange gains or losses, gains or
         losses on disposal of property, plant and equipment, expenses and
         gain related to business combinations and income taxes. Management
         believes that operating income is a useful supplemental measure as
         it provides an indication of the financial results generated by
         Calfrac's business segments prior to consideration of how these
         segments are financed or how they are taxed. Operating income is a
         measure that does not have any standardized meaning under
         International Financial Reporting Standards (IFRS) and,
         accordingly, may not be comparable to similar measures used by
         other companies.
    (2)  EBITDA is defined as net income (loss) before interest, income
         taxes, depreciation and amortization. EBITDA is presented because
         it is frequently used by securities analysts and others for
         evaluating companies and their ability to service debt. EBITDA is
         a measure that does not have any standardized meaning prescribed
         under IFRS and, accordingly, may not be comparable to similar
         measures used by other companies.
    (3)  Net income attributable to the shareholders of Calfrac before
         foreign exchange gains or losses is defined as net income (loss)
         attributable to the shareholders of Calfrac before foreign
         exchange gains or losses on an after-tax basis. Management
         believes that net income attributable to the shareholders of
         Calfrac before foreign exchange gains or losses is a useful
         supplemental measure as it provides an indication of the financial
         results generated by Calfrac without the impact of foreign
         exchange fluctuations, which are not fully controllable by the
         Company. Net income attributable to the shareholders of Calfrac
         before foreign exchange gains or losses is a measure that does not
         have any standardized meaning prescribed under IFRS and,
         accordingly, may not be comparable to similar measures used by
         other companies.

CEO's MESSAGE 
I am pleased to present Calfrac's operating and financial highlights for 2013 
and to discuss our prospects for 2014. During the fourth quarter, our Company: 
        --  completed the acquisition 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 play of Texas;
        --  experienced strong equipment utilization in the unconventional
            natural gas resource plays of the United States;
        --  began executing on its pressure pumping services contract with
            YPF S.A., the largest operator in Argentina; and
        --  announced a 2014 capital program of $120.0 million, which
            focuses on maintenance and support capital, further investment
            in logistics equipment and international growth.

Financial Highlights

------------------------------

For the three months ended December 31, 2013, the Company recorded:
        --  revenue of $463.0 million, an increase of 26 percent from the
            fourth quarter of 2012 driven primarily by the commencement of
            fracturing operations in the Eagle Ford shale play combined
            with increased activity in the Niobrara and Marcellus shale
            plays in the United States, higher fracturing activity in
            Russia due to an expanded customer base and increased demand
            for horizontal multi-stage fracturing operations, and the
            significant increase in fracturing activity in Argentina;
        --  operating income of $57.4 million versus $43.2 million in the
            same quarter of 2012, mainly due to higher equipment
            utilization in the United States offset partially by the
            effects of the competitive pricing environment in Canada; and
        --  net income attributable to shareholders of Calfrac of $11.8
            million or $0.25 per share diluted, including a $1.5 million
            foreign exchange gain, compared to net income of $11.2 million
            or $0.25 per share diluted in the fourth quarter of 2012, which
            included a foreign exchange gain of $3.8 million.

For the year ended December 31, 2013, the Company:
        --  generated revenue of $1.6 billion, a 2 percent decrease from
            2012 driven primarily by competitive pricing pressure in
            western Canada and the United States and lower fracturing
            activity in Mexico, offset partially by higher multi-stage
            fracturing activity in Western Siberia, and the commencement of
            fracturing operations in Argentina and the Eagle Ford shale
            play in Texas during the second and fourth quarters of 2013,
            respectively;
        --  reported operating income of $188.1 million versus $257.0
            million in 2012, a decrease of 27 percent, mainly as a result
            of competitive pricing and a decline in activity in Canada and
            lower equipment utilization in Mexico; and
        --  reported net income attributable to shareholders of Calfrac of
            $27.9 million or $0.61 per share diluted, including a foreign
            exchange loss of $1.2 million, compared to net income of $97.1
            million or $2.17 per share diluted, which included a $8.3
            million foreign exchange gain, in 2012.

Operational Highlights 

------------------------------

Canada

Calfrac's financial and operating results in Canada for the fourth quarter met 
expectations as activity significantly increased as the quarter progressed 
with the onset of winter. Activity was particularly strong in the Montney play 
as several customers were focused on completing their 2013 programs during the 
quarter. However, bitterly cold temperatures throughout much of December did 
result in higher than expected fuel and subcontractor costs and impacted the 
Company's ability to cost effectively complete its scheduled programs. 
Financial performance in the fourth quarter was also weakened by further 
pricing competition on callout work during the early part of the quarter. 
Pricing stabilized as the quarter progressed and Calfrac expects this stable 
pricing environment to continue throughout the first quarter of 2014, as 
demand for its services remains at very high levels.

United States

In the United States, Calfrac's financial performance in the fourth quarter 
was consistent with expectations as equipment utilization remained high in the 
Marcellus and Fayetteville natural gas plays combined with improved 
utilization in the Bakken and Niobrara oil plays. The revenue base was further 
bolstered by the acquisition of the assets and business of Mission at the 
beginning of the fourth quarter as Calfrac made its entry into the Eagle Ford 
shale play in Texas. While utilization remained high, pricing continued to be 
a challenge in the fourth quarter as the oversupply of fracturing capacity 
remained prevalent in the latter part of the year. Financial results for the 
fourth quarter were also affected by holiday disruptions and inclement weather 
prevalent in several regions during the latter part of the quarter. The 
integration of Mission proceeded as planned although operating margins were 
impacted by the exposure to the weak callout market and the incurrence of 
certain costs related to integrating Mission into the Calfrac platform. 
Calfrac's United States operations remained focused on proactively managing 
the Company's cost structure. The Company's supply chain and logistic 
capabilities made further progress during the quarter to enhance operating 
efficiencies in the midst of challenging market conditions.

Russia

Equipment utilization for Calfrac's Russian operations continued to be 
positively impacted by the increase in horizontal multi-stage fracturing 
activity in Western Siberia. While this technology is still in the early 
stages of development, the Company remains optimistic that it will gain 
further acceptance and be a driver of future growth in operating and financial 
performance in Russia. While equipment utilization remained high in the fourth 
quarter, Calfrac's financial results were lower on a quarter-over-quarter 
basis due to the higher cost structure resulting from the onset of winter 
operating conditions. Late in the third quarter, a new district was opened in 
the Usinsk region and the Russian fleet was increased to six fracturing 
spreads. The Company successfully completed its first stimulation treatment in 
this region during the fourth quarter.

Latin America

Calfrac's Latin American operating results during the quarter improved 
substantially from the third quarter mainly due to an increase in fracturing 
activity in Argentina offset partially by a significant reduction in drilling 
and completion activity in the northern region of Mexico due to budget 
reductions implemented by the Company's main customer. The reduction in 
Mexican activity is not expected to change significantly in 2014, but Calfrac 
is optimistic that activity will improve in the future when the use of 
horizontal drilling with multi-stage completions becomes more prominent. In 
the meantime, the Company continues to rationalize its cost structure to be 
more closely aligned with its short term revenue outlook. Additional measures 
will be undertaken if the outlook does not improve as the year progresses.

In Argentina, the aforementioned increase in fracturing activity was related 
to the YPF S.A. tight gas contract that was announced in October 2013. This 
significant increase in activity was effectively managed by Calfrac's local 
team and has laid the groundwork for future growth opportunities. Based on the 
Company's assessment of the quality of the resource base in Argentina, it is 
expected that the greater adoption of horizontal well technology will provide 
further opportunities in this country.

Challenging market conditions in Colombia persisted in the fourth quarter of 
2013, resulting in lower than expected equipment utilization and financial 
performance. Permitting and infrastructure issues remain barriers to greater 
oilfield activity. The Company expects these issues to be resolved, but 
continues to closely manage its operating costs while focusing on expanding 
its customer base. Calfrac currently operates four cementing units in Colombia 
and does not intend to deploy additional equipment until market conditions 
improve.

Outlook and Business Prospects

------------------------------

Natural gas prices in North America have improved during the first two months 
of 2014, with colder-than-normal weather providing improved fundamentals for a 
recovery in natural gas prices. Crude oil prices also remain at levels that 
provide solid economics to oil producers. Calfrac expects that this will 
encourage higher oilfield activity in 2014 in the unconventional resource 
plays of Canada and the United States. In addition, current trends in service 
intensity in the form of larger pad designs, longer horizontal legs and 
greater stimulation intensity should provide the basis for higher completions 
activity. The benefits of higher activity will however continue to be tempered 
by the competitive pricing environment in North America. Internationally, 
Calfrac's operations are experiencing continuing momentum in the application 
of multi-stage completion technology within horizontal wellbores, and the 
Company expects this increase to drive higher equipment utilization in those 
markets over the near and long term.

Fracturing and coiled tubing activity in western Canada is anticipated to 
remain strong in the Montney, Deep Basin, Cardium and Duvernay plays for the 
foreseeable future. Pricing recently stabilized and Calfrac expects it to 
remain firm throughout the first quarter. From a cost standpoint, the 
weakening of the Canadian dollar is negatively impacting certain input costs 
which are denominated in U.S. dollars and may continue into the first quarter. 
The development of liquids-rich gas plays, such as the Duvernay and various 
plays in the Deep Basin, likely represents the most meaningful short-term 
driver for increased activity, with the movement towards liquefied natural gas 
(LNG) export capability being the primary driver of higher demand for the 
Company's services over the longer-term.

Calfrac expects LNG export-related activity to increase with the influx of 
capital from foreign entities and large multi-national companies. The 
Company's leadership position in the development of the Montney, Duvernay and 
Horn River resource plays is expected to position it to participate 
significantly in the development of the natural gas reserves required to 
support these LNG initiatives. Calfrac believes that two or three LNG projects 
will move forward, but the timing for these projects remains unclear. Several 
of the Company's long-standing customers are at the forefront of this 
development, which is expected to be a catalyst for a significant increase in 
the demand for the Company's services over the longer term. Calfrac has seen 
the benefit of initial LNG activity in 2013, particularly in the Montney, and 
expects that this source of activity will grow materially in 2014. This should 
gain greater momentum in 2015 and beyond as further visibility unfolds 
regarding the scope and timing of the LNG projects.

Calfrac expects that oil-focused activity will remain stable for the rest of 
the year, with the introduction of higher-rate treatments in certain plays, 
such as the Cardium, driving higher equipment utilization. Viking activity is 
expected to increase in 2014 over 2013. Calfrac also expects to achieve 
further operational efficiencies in the Canadian market through the expanded 
use of 24-hour operations and multi-well pad development.

The organizational improvements initiated in the United States in late 2012 
and 2013 resulted in improved financial performance during 2013 and provide 
the basis for achieving reasonable financial returns amidst challenging market 
conditions. Calfrac remains focused on prudently managing the Company's cost 
structure in the United States, creating further efficiencies through supply 
chain and logistical initiatives and expanding customer relationships in order 
to maximize profitability. In the short term, uncertainty remains due to the 
United States' over-supplied pressure pumping market. Calfrac's equipment 
utilization is expected to be quite strong given the Company's active customer 
base, contract coverage and positioning in some of the most economic plays 
such as the Marcellus, Niobrara and Eagle Ford. While the Company does not 
expect market conditions to change significantly in the first half of 2014, it 
remains cautiously optimistic that activity will increase in the last six 
months of 2014. This may lead to improved pricing dynamics, as further 
unconventional development occurs in oil-producing basins and completion 
activity in unconventional natural gas plays increases due to higher natural 
gas prices resulting from colder winter weather.

Calfrac's view is supported by its strong positioning in the U.S. market. The 
Company services three of the most active unconventional resource plays in the 
United States: the Bakken oil shale play in North Dakota, the Marcellus shale 
natural gas play in Pennsylvania and West Virginia and most recently, the 
Company's entry into the Eagle Ford shale play in Texas. Calfrac believes that 
the Marcellus will remain very active due to its low cost structure and 
proximity to consuming markets. In addition, Calfrac believes that activity in 
the Utica shale will see meaningful growth in 2014 as well results continue to 
improve. Calfrac's customer base, market presence and infrastructure have 
provided the opportunity to participate in this development. Activity in the 
Fayetteville shale play is anticipated to remain stable in 2014 due to the 
Company's strong customer relationships and operational performance in this 
region. Calfrac's long-standing presence in the Rocky Mountain region provides 
additional growth prospects in the Niobrara shale oil play, as many producers 
have begun using longer-reach horizontal wells and greater stimulation 
intensity with encouraging results. The Company has experienced a significant 
increase in activity in the Niobrara play and expects further growth in 2014.

Calfrac's Russian results in 2013 met its expectations and based on the 
results of the 2014 contract tender process, it expects improvement in both 
utilization and pricing in 2014. However, activity in the early portion of 
2014 has been negatively impacted by harsh weather conditions. This outlook is 
primarily based on the expanded use of new technologies in Western Siberia, 
such as horizontal drilling and multi-stage completions. The pace of adoption 
of this new methodology has exceeded the Company's expectations. Approximately 
35 percent of Calfrac's fracturing work was focused on horizontal wells in 
2013. Consequently, Calfrac expects that this trend will continue to drive 
demand for its services over the short and long term as Russia's producing 
sector gains confidence in this approach.

In Mexico, the Company expects the use of multi-stage fracturing of horizontal 
wellbores to become more prominent over the longer term as capital budgets 
recover. Based on customer feedback, the majority of future onshore activity 
will be focused on horizontal wells, which should spur demand for Calfrac's 
services. However, as discussed above, short term visibility remains poor. 
Calfrac remains focused on prudently managing its Mexican cost structure to 
align with expected near-term activity. The Company continues to monitor this 
environment closely and will proactively manage this segment as more 
information becomes available. While the short-term outlook remains quite 
challenging, Calfrac is encouraged by the recent legislative and 
constitutional changes enacted in Mexico to open this market to foreign 
investment. The Company believes that implementation is likely to take some 
time as further clarity is required surrounding the rules governing foreign 
energy investment. This is likely to have a more material impact on oilfield 
service activity after 2014.

With Calfrac's successful entry into the Argentinean fracturing market in 
2013, the Company believes that it is well-positioned to take advantage of 
additional opportunities related to the development of the country's 
unconventional resource plays. Calfrac expects that horizontal drilling 
combined with multi-stage fracturing will be key inputs to unlocking 
Argentina's tight sands and shale resources. With limited industry capacity 
in-country to service these emerging unconventional plays, the Company's 
strategy is to lever its long-standing reputation for service quality and 
technical expertise, which is expected to provide the foundation for long-term 
growth in Argentina. Calfrac's recently executed contract with YPF S.A. 
provides a strong foundation to grow its hydraulic fracturing, coiled tubing 
and cementing services in Argentina.

Overall, the Company believes that positive momentum in the pressure pumping 
business appears to be building in 2014. Calfrac remains focused on it core 
principles of service quality and technology and expects that further growth 
opportunities will develop as the year unfolds. The Company believes that it 
is well-positioned to take advantage of these opportunities.

On a personal note, Doug Ramsay recently retired from his role of Chief 
Executive Officer at Calfrac. As I assume the CEO role, I would like to 
acknowledge and thank Doug for the incredible leadership that he has provided 
to the Company over the last fifteen years since founding Calfrac and guiding 
it into one of the leading pressure pumping companies in the world. I look 
forward to continuing to work with Doug in his new role as Vice-Chairman.

Tim Swinton recently retired from his position as a director of Calfrac. Mr. 
Swinton has served as a director of Calfrac since its amalgamation with 
Denison Energy Inc. in March of 2004. The board and management of Calfrac 
would like to sincerely thank Tim for his many outstanding contributions to 
the growth and stewardship of Calfrac over the past decade, and wish him the 
very best in his retirement.

On behalf of the Board of Directors,

Fernando Aguilar
President & Chief Executive Officer
February 26, 2014

2013 Overview

------------------------------

For the three months ended December 31, 2013, the Company recorded:
        --  revenue of $463.0 million, an increase of 26 percent from the
            fourth quarter of 2012 driven primarily by the commencement of
            fracturing operations in the Eagle Ford shale play combined
            with increased activity in the Niobrara and Marcellus shale
            plays, higher fracturing activity in Russia due to an expanded
            customer base and increased demand for horizontal multi-stage
            fracturing operations, and the commencement of fracturing
            operations in Argentina during the second quarter of 2013;
        --  operating income of $57.4 million versus $43.2 million in the
            same quarter of 2012, mainly due to higher equipment
            utilization in the United States offset partially by the
            effects of the competitive pricing environment in Canada; and
        --  net income attributable to shareholders of Calfrac of $11.8
            million or $0.25 per share diluted, including a $1.5 million
            foreign exchange gain, compared to net income of $11.2 million
            or $0.25 per share diluted in the fourth quarter of 2012, which
            included a foreign exchange gain of $3.8 million.

In 2013, the Company:
        --  generated revenue of $1.6 billion, a 2 percent decrease from
            2012 resulting primarily from competitive pricing pressure in
            western Canada and the United States, lower coiled tubing
            activity in the unconventional plays in Canada, smaller
            fracturing job sizes in the United States, and lower fracturing
            activity in Mexico, offset partially by higher multi-stage
            fracturing activity in Western Siberia, and the commencement of
            fracturing operations in Argentina and the Eagle Ford shale
            play in Texas during the second and fourth quarters of 2013,
            respectively;
        --  reported operating income of $188.1 million versus $257.0
            million in 2012, a decrease of 27 percent, mainly as a result
            of competitive pricing and a decline in activity in Canada and
            lower equipment utilization in Mexico;
        --  reported net income attributable to shareholders of Calfrac of
            $27.9 million or $0.61 per share diluted, including a foreign
            exchange loss of $1.2 million, compared to net income of $97.1
            million or $2.17 per share diluted, which included a $8.3
            million foreign exchange gain, in 2012;
        --  incurred capital expenditures of $170.5 million primarily to
            bolster the Company's fracturing operations in Canada, the
            United States and Argentina;
        --  completed the acquisition of the operating assets of Mission, a
            privately-held hydraulic fracturing and coiled tubing services
            provider focused on the Eagle Ford shale play of Texas;
        --  entered the Argentinean fracturing market and announced the
            signing of a long-term pressure pumping services contract with
            YPF S.A., the largest operator in Argentina;
        --  reported period-end working capital of $319.9 million versus
            $322.9 million at December 31, 2012; and
        --  announced a capital budget for 2014 of $120.0 million, which
            focuses on maintenance and support capital, further investment
            in logistics equipment and international growth. Approximately
            $33.0 million is allocated to supporting Calfrac's growing
            international operations, including an investment in coiled
            tubing and fracturing equipment in Russia and Argentina. In
            addition, approximately $20.0 million remaining from Calfrac's
            2013 capital program is expected to be expended in 2014.

Financial Overview - Three Months Ended December 31, 2013 Versus 2012

------------------------------
    Canada                                                       
    Three Months Ended December 31,                2013    2012 Change
    (C$000s, except operational information)        ($)     ($)    (%)
    (unaudited)                                                       
    Revenue                                     197,112 201,573    (2)
    Expenses                                                          
           Operating                            157,775 147,518      7
           Selling, general and administrative    4,334   5,033   (14)
           (SG&A)
                                                162,109 152,551      6
    Operating income(1)                          35,003  49,022   (29)
    Operating income (%)                          17.8%   24.3%   (27)
    Fracturing revenue per job ($)              188,660 192,600    (2)
    Number of fracturing jobs                       995   1,001    (1)
    Pumping horsepower, end of period (000s)        389     375      4
    Coiled tubing revenue per job ($)            26,617  22,689     17
    Number of coiled tubing jobs                    353     387    (9)
    Coiled tubing units, end of period (#)           21      21      -
    (1)  Refer to "Non-GAAP Measures" on page 20 for further information.
          

Revenue 
Revenue from Calfrac's Canadian operations during the fourth quarter of 2013 
was $197.1 million versus $201.6 million in the same period of 2012. The 
decrease in revenue was primarily due to increased pricing pressure, partially 
offset by the completion of larger jobs during the quarter.

Operating Income 
Operating income in Canada decreased by 29 percent to $35.0 million during the 
fourth quarter of 2013 from $49.0 million in the same period of 2012. The 
decrease was primarily due to the competitive pricing environment experienced 
during the quarter. Additionally, extreme cold weather during the latter part 
of the quarter increased fuel and subcontractor costs. Selling, general and 
administrative expenses during the fourth quarter were $0.7 million less than 
in the comparable three-month period for 2012 primarily due to a lower annual 
bonus provision.
    United States                                                  
    Three Months Ended December 31,                  2013    2012 Change
    (C$000s, except operational and exchange rate     ($)     ($)    (%)
    information)
    (unaudited)                                                         
    Revenue                                       189,239 109,975     72
    Expenses                                                            
      Operating                                   154,001  99,048     55
      SG&A                                          5,642   5,439      4
                                                  159,643 104,487     53
    Operating income(1)                            29,596   5,488    439
    Operating income (%)                            15.6%    5.0%    212
    Fracturing revenue per job ($)                 53,815  52,347      3
    Number of fracturing jobs                       3,348   1,943     72
    Pumping horsepower, end of period (000s)          662     492     35
    Cementing revenue per job ($)                  37,285  30,678     22
    Number of cementing jobs                          213     180     18
    Cementing units, end of period (#)                 18      12     50
    US$/C$ average exchange rate(2)                1.0498  0.9913      6
    (1)  Refer to "Non-GAAP Measures" on page 20 for further information.
    (2)  Source: Bank of Canada.
          

Revenue

Revenue from Calfrac's United States operations increased during the fourth 
quarter of 2013 to $189.2 million from $110.0 million in the comparable 
quarter of 2012. The increase was due primarily to the commencement of 
fracturing operations in the Eagle Ford shale play following the acquisition 
of the Mission assets early in the fourth quarter of 2013. In addition, higher 
activity in the Niobrara and Marcellus shale plays contributed to the revenue 
increase. The increase in revenue was partially offset by lower pricing in the 
United States resulting from high levels of competition.

Operating Income

Operating income in the United States was $29.6 million for the fourth quarter 
of 2013, an increase of $24.1 million from the comparative period in 2012. The 
increase was primarily due to higher utilization in the unconventional natural 
gas plays where Calfrac is active, as well as in the Niobrara shale oil play, 
and the commencement of operations in the Eagle Ford play.
    Russia                                                             
    Three Months Ended December 31,                  2013   2012 Change
    (C$000s, except operational and exchange rate
    information)                                      ($)    ($)    (%)
    (unaudited)                                                        
    Revenue                                        41,404 24,197     71
    Expenses                                                           
      Operating                                    36,946 22,707     63
      SG&A                                          1,794  1,744      3
                                                   38,740 24,451     58
    Operating income (loss)(1)                      2,664  (254)      -
    Operating income (loss) (%)                      6.4%  -1.0%      -
    Fracturing revenue per job ($)                118,015 84,063     40
    Number of fracturing jobs                         284    199     43
    Pumping horsepower, end of period (000s)           62     45     38
    Coiled tubing revenue per job ($)              60,671 54,117     12
    Number of coiled tubing jobs                      130    138    (6)
    Coiled tubing units, end of period (#)              7      7      -
    Rouble/C$ average exchange rate(2)             0.0322 0.0319      1
    (1)  Refer to "Non-GAAP Measures" on page 20 for further information.
    (2)  Source: Bank of Canada.
          

Revenue

During the fourth quarter of 2013, the Company's revenue from Russian 
operations increased by 71 percent to $41.4 million from $24.2 million in the 
corresponding three-month period of 2012. The increase in revenue was mainly 
due to higher fracturing activity as a result of the Company expanding its 
customer base combined with increased demand for horizontal multi-stage 
fracturing operations in Western Siberia and larger fracturing job sizes. The 
Company began supplying proppant to two significant customers in 2013, which 
contributed to the revenue growth over the comparable quarter of 2012. The 
increase in revenue was partially offset by lower coiled tubing activity 
resulting from the increased use of multi-stage fracturing completions.

Operating Income (Loss)

Operating income in Russia was $2.7 million during the fourth quarter of 2013 
compared to an operating loss of $0.3 million in the corresponding period of 
2012. The turnaround in operating income was primarily a result of operational 
efficiencies resulting from higher fracturing equipment utilization and a 
higher overall revenue base. The increase in operating income was somewhat 
tempered by higher fuel and maintenance costs with the onset of winter 
operating conditions.
    Latin America                                                       
    Three Months Ended December 31,                   2013   2012 Change
    (C$000s, except operational and exchange rate
    information)                                       ($)    ($)    (%)
    (unaudited)                                                         
    Revenue                                         35,299 31,742     11
    Expenses                                                            
      Operating                                     28,943 26,489      9
      SG&A                                           2,520  2,152     17
                                                    31,463 28,641     10
    Operating income(1)                              3,836  3,101     24
    Operating income (%)                             10.9%   9.8%     11
    Pumping horsepower, end of period (000s)            81     65     25
    Cementing units, end of period (#)                  13     13      -
    Coiled tubing units, end of period (#)               3      1    200
    Mexican peso/C$ average exchange rate(2)        0.0806 0.0766      5
    Argentinean peso/C$ average exchange rate(2)    0.1732 0.2066   (16)
    (1)  Refer to "Non-GAAP Measures" on page 20 for further information.
    (2)  Source: Bank of Canada.
          

Revenue

Calfrac's Latin America operations generated total revenue of $35.3 million 
during the fourth quarter of 2013 versus $31.7 million in the comparable 
three-month period in 2012. The increase in revenue was due to the significant 
increase in unconventional fracturing activity in Argentina during 2013 as a 
result of the pressure pumping services contract that was signed with YPF S.A. 
at the beginning of the fourth quarter of 2013 combined with higher cementing 
and coiled tubing activity in that country. This increase in revenue was 
offset by lower fracturing activity in Mexico resulting from budget 
constraints by Calfrac's major customer in that country. The Colombian market 
continued to present challenging conditions, due to permitting and 
infrastructure issues, resulting in lower-than-expected equipment utilization.

Operating Income

Operating income in Latin America for the three months ended December 31, 2013 
was $3.8 million versus $3.1 million in the comparative quarter in 2012. The 
increase in operating income was due to the commencement of fracturing 
operations in Argentina combined with higher cementing and coiled tubing 
equipment utilization in that country. This increase was offset by a decrease 
in operating income in Mexico and Colombia resulting from significantly lower 
equipment utilization.
    Corporate                                                        
    Three Months Ended December 31,              2013     2012 Change
    (C$000s, except operational information)      ($)      ($)    (%)
    (unaudited)                                                      
    Expenses                                                         
      Operating                                 2,328    2,464    (6)
      SG&A                                     11,355   11,675    (3)
                                               13,683   14,139    (3)
    Operating loss(1)                        (13,683) (14,139)    (3)
                                                                     
    % of Revenue                                 3.0%     3.8%   (21)
    (1)  Refer to "Non-GAAP Measures" on page 20 for further information.
          

Operating Loss

The 3 percent decrease in corporate expenses from the fourth quarter of 2012 
was mainly due to lower annual bonus expenses. The decrease was offset 
partially by higher corporate personnel costs to support the Company's larger 
scale of operations.

Depreciation

For the three months ended December 31, 2013, depreciation expense increased 
by 33 percent to $31.4 million from $23.6 million in the corresponding quarter 
of 2012. The increase was mainly a result of the acquisition of assets from 
Mission at the beginning of the fourth quarter of 2013 combined with asset 
additions required to support the commencement of fracturing operations in 
Argentina.

Foreign Exchange Losses or Gains

The Company recorded a foreign exchange gain of $1.5 million during the fourth 
quarter of 2013 versus a foreign exchange gain of $3.8 million in the 
comparative three-month period of 2012. Foreign exchange gains and losses 
arise primarily from the translation of net monetary assets or liabilities 
that were held in United States dollars in Canada, Russia and Latin America. 
The Company's fourth quarter 2013 foreign exchange gain was largely 
attributable to the translation of United States dollar-denominated assets 
held in Canada offset by a loss on United States dollar-denominated debt held 
in Argentina. The value of the United States dollar at December 31, 2013 had 
strengthened against the Canadian dollar and the Argentinean peso from the 
beginning of the quarter, resulting in a consolidated net foreign exchange 
gain.

Interest

The Company's net interest expense of $13.4 million for the fourth quarter of 
2013 was $4.5 million higher than in the comparable period of 2012. The 
increase was related to the issuance of an additional US$150.0 million of 
Calfrac's 7.50 percent senior notes to finance the acquisition of assets from 
Mission combined with draws on its revolving credit facility during the fourth 
quarter. Additional short-term borrowing in Latin America to fund the 
operational expansion in Argentina also contributed to the increase in 
interest expense during the quarter.

Income Tax Expenses

The Company recorded income tax expense of $1.1 million during the fourth 
quarter of 2013 compared to $3.3 million in the comparable period of 2012. The 
effective income tax rate for the three months ended December 31, 2013 was 8 
percent compared to 23 percent in the same quarter of 2012. The decrease in 
total income tax expense was primarily due to lower profitability in Canada 
and Mexico offset partially by higher taxable income in the United States. The 
lower effective tax rate was due to the mix of earnings between various tax 
jurisdictions combined with a lower-than-expected effective tax rate in the 
United States. The lower effective tax rate in the United States was partially 
due to the reclassification of $1.8 million of deferred tax expense related to 
the Mission acquisition to offset the gain on business combination as required 
under IFRS and as described in note 11.
    Summary of
    Quarterly
    Results                                                                
    Quarters Ended       Mar.       June       Sept.       Dec.
                          31,        30,         30,        31,       Total
    (C$000s,
    except per
    share and
    operating
    data)                 ($)        ($)         ($)        ($)         ($)
    (unaudited)                                                            
    2013                                                                   
    Financial                                                              
    Revenue           423,397    288,701     388,662    463,054   1,563,814
    Operating
    income(1)          62,670     16,307      51,683     57,416     188,076
    EBITDA(1)          65,169     16,235      46,862     57,667     185,933
      Per share -
      basic              1.44       0.36        1.02       1.25        4.07
      Per share -
      diluted            1.43       0.35        1.01       1.24        4.04
    Net income
    (loss)
    attributable
    to the
    shareholders
    of Calfrac         24,645   (14,584)       6,089     11,764      27,914
      Per share -
      basic              0.55     (0.32)        0.13       0.25        0.61
      Per share -
      diluted            0.54     (0.32)        0.13       0.25        0.61
    Capital
    expenditures       43,989     46,618      34,683     45,227     170,517
    Working
    capital (end
    of period)        332,241    319,982     292,854    319,934     319,934
    Total equity
    (end of
    period)           802,581    784,247     786,933    795,207     795,207
                                                                           
    Operating (end
    of period)                                                             
    Pumping
    horsepower
    (000s)              1,013      1,025       1,025      1,194            
    Coiled tubing
    units (#)              29         29          31         38            
    Cementing
    units (#)              28         30          30         31            
    (1)  Refer to "Non-GAAP Measures" on page 20 for further information.
                                                                               
    Quarters                 Mar.       June       Sept.       Dec.
    Ended                     31,        30,         30,        31,       Total
    (C$000s,          
    except per
    share and
    operating
    data)                     ($)        ($)         ($)        ($)         ($)
    (unaudited)                                                                
    2012                                                                       
    Financial                                                                  
    Revenue               474,107    335,780     417,842    367,487   1,595,216
    Operating         
    income(1)             113,381     29,810      70,604     43,218     257,013
    EBITDA(1)             127,995     18,736      70,874     46,866     264,471
      Per share       
      - basic                2.92       0.42        1.59       1.05        5.97
      Per share       
      - diluted              2.87       0.42        1.58       1.04        5.90
    Net income        
    attributable
    to the
    shareholders
    of Calfrac             70,841   (11,855)      26,917     11,243      97,146
      Per share       
      - basic                1.62     (0.27)        0.60       0.25        2.19
      Per share       
      - diluted              1.59     (0.27)        0.60       0.25        2.17
    Capital           
    expenditures           84,075     75,286      63,962     55,694     279,017
    Working           
    capital (end
    of period)            431,053    357,128     353,182    322,857     322,857
    Total equity      
    (end of
    period)               779,426    747,591     783,091    780,759     780,759
                                                                               
    Operating         
    (end of
    period)                                                                    
    Pumping           
    horsepower
    (000s)                    782        830         845        977            
    Coiled            
    tubing units
    (#)                        29         29          29         29            
    Cementing         
    units (#)                  23         23          25         26            
    (1) Refer to "Non-GAAP Measures" on page 20 for further information.
    Financial Overview - Year Ended December 31, 2013 Versus 2012

------------------------------
    Canada                                                         
    Years Ended December 31,                         2013    2012 Change
    (C$000s, except operational information)          ($)     ($)    (%)
    (unaudited)                                                         
    Revenue                                       677,114 732,880    (8)
    Expenses                                                            
       Operating                                  538,730 526,400      2
       Selling, general and administrative (SG&A)  16,685  17,925    (7)
                                                  555,415 544,325      2
    Operating income(1)                           121,699 188,555   (35)
    Operating income (%)                            18.0%   25.7%   (30)
    Fracturing revenue per job ($)                198,667 197,062      1
    Number of fracturing jobs                       3,239   3,441    (6)
    Pumping horsepower, end of period (000s)          389     375      4
    Coiled tubing revenue per job ($)              25,674  30,661   (16)
    Number of coiled tubing jobs                    1,310   1,787   (27)
    Coiled tubing units, end of period (#)             21      21      -
    (1)  Refer to "Non-GAAP Measures" on page 20 for further information.
          

Revenue

Revenue from Calfrac's Canadian operations was $677.1 million in 2013 versus 
$732.9 million in 2012. The decrease in revenue was primarily due to lower 
pricing experienced in Canada during 2013 due to competitive pressures, the 
effects of which were largely offset by an increase in average job size and 
associated revenue. The increase in average job size reflects the continued 
shift in activity into the unconventional oil and liquids-rich regions of 
western Canada. In addition, flood conditions experienced during the second 
and third quarters of 2013 resulted in lower fracturing and coiled tubing 
activity in central and southern Alberta. Lower coiled tubing activity in the 
Horn River area of northeast British Columbia in 2013 also contributed to the 
reduction in job sizes and overall revenue.

Operating Income

Operating income in Canada decreased by 35 percent to $121.7 million in 2013 
from $188.6 million in 2012. The decline was primarily caused by a more 
competitive pricing environment combined with higher logistical costs 
associated with the completion of larger fracturing jobs. Selling, general and 
administrative expenses during 2013 were $1.2 million less than in 2012 
primarily due to a lower provision for annual bonuses.
    United States                                                       
    Years Ended December 31,                         2013    2012 Change
    (C$000s, except operational and exchange rate             ($)
    information)                                      ($)            (%)
    (unaudited)                                                         
    Revenue                                       616,174 638,483    (3)
    Expenses                                                            
      Operating                                   492,699 512,482    (4)
      SG&A                                         19,350  20,872    (7)
                                                  512,049 533,354    (4)
    Operating income(1)                           104,125 105,129    (1)
    Operating income (%)                            16.9%   16.5%      2
    Fracturing revenue per job ($)                 57,019  69,620   (18)
    Number of fracturing jobs                      10,256   8,766     17
    Pumping horsepower, end of period (000s)          662     492     35
    Cementing revenue per job ($)                  35,432  30,912     15
    Number of cementing jobs                          854     661     29
    Cementing units, end of period (#)                 18      12     50
    US$/C$ average exchange rate(2)                1.0299  0.9996      3
    (1)  Refer to "Non-GAAP Measures" on page 20 for further information.
    (2)  Source: Bank of Canada.
          

Revenue

Revenue from Calfrac's United States operations decreased by 3 percent to 
$616.2 million in 2013 from $638.5 million in 2012, primarily due to 
competitive pricing pressure and lower activity in the Bakken play of North 
Dakota. This was somewhat offset by higher fracturing activity in the 
Marcellus shale formation in Pennsylvania and West Virginia and the 
commencement of fracturing operations in the Eagle Ford shale play during the 
fourth quarter. Cementing revenue increased by $9.8 million to $30.3 million 
in 2013 primarily due to increased activity in the Fayetteville shale in 
Arkansas.

Operating Income

Operating income in the United States was $104.1 million for 2013, a decrease 
of 1 percent from 2012 and up slightly to 16.9 as a percentage of revenue. 
Higher equipment utilization in the Marcellus shale play and the Fayetteville 
shale basin combined with the start-up of operations in the Eagle Ford shale 
play in Texas were offset by competitive pricing pressure and lower 
utilization in North Dakota.
    Russia                                                              
    Years Ended December 31,                         2013    2012 Change
    (C$000s, except operational and exchange rate
    information)                                      ($)     ($)    (%)
    (unaudited)                                                         
    Revenue                                       158,782 112,765     41
    Expenses                                                            
      Operating                                   138,910 100,098     39
      SG&A                                          6,514   6,101      7
                                                  145,424 106,199     37
    Operating income(1)                            13,358   6,566    103
    Operating income (%)                             8.4%    5.8%     45
    Fracturing revenue per job ($)                108,599  92,791     17
    Number of fracturing jobs                       1,184     826     43
    Pumping horsepower, end of period (000s)           62      45     38
    Coiled tubing revenue per job ($)              58,304  57,884      1
    Number of coiled tubing jobs                      518     624   (17)
    Coiled tubing units, end of period (#)              7       7      -
    Rouble/C$ average exchange rate(2)             0.0323  0.0322      -
    (1)  Refer to "Non-GAAP Measures" on page 20 for further information.
    (2)  Source: Bank of Canada.
          

Revenue

The Company's revenue from Russian operations increased by 41 percent to 
$158.8 million in 2013 from $112.8 million in 2012. The increase in revenue 
was mainly due to the Company supplying proppant to two significant customers 
in Western Siberia during 2013. In addition, higher multi-stage fracturing 
activity in 2013 and an expanded customer base combined with larger 
conventional fracturing job sizes contributed to the overall increase in 
revenue. During 2013, approximately 34 percent of Calfrac's total Russian 
fracturing activity was related to multi-stage well completions compared to 
less than 5 percent in 2012. Coiled tubing activity declined as a result of 
the increased use of multi-stage fracturing operations, which reduced the 
requirements for coiled tubing services.

Operating Income

Operating income in Russia was $13.4 million in 2013 compared to $6.6 million 
in 2012. The increase in operating income was primarily due to operational 
efficiencies associated with multi-stage fracturing operations forming a 
larger proportion of total activity in 2013 and a higher revenue base.
    Latin America                                                       
    Years Ended December 31,                         2013    2012 Change
    (C$000s, except operational and exchange rate
    information)                                      ($)     ($)    (%)
    (unaudited)                                                         
    Revenue                                       111,744 111,088      1
    Expenses                                                            
      Operating                                   100,507  95,494      5
      SG&A                                          7,714   6,755     14
                                                  108,221 102,249      6
    Operating income(1)                             3,523   8,839   (60)
    Operating income (%)                             3.2%    8.0%   (60)
    Pumping horsepower, end of period (000s)           81      65     25
    Cementing units, end of period (#)                 13      13      -
    Coiled tubing units, end of period (#)              3       1    200
    Mexican peso/C$ average exchange rate(2)       0.0807  0.0760      6
    Argentinean peso/C$ average exchange rate(2)   0.1889  0.2201   (14)
    (1)  Refer to "Non-GAAP Measures" on page 20 for further information.
    (2)  Source: Bank of Canada.
          

Revenue

Calfrac's Latin American operations generated total revenue of $111.7 million 
during 2013 compared to $111.1 million in 2012. Revenue in Argentina increased 
significantly due to the start-up of conventional fracturing operations 
beginning in the second quarter of 2013 followed by the commencement of 
unconventional fracturing operations for YPF S.A. in Argentina's tight sands 
in October 2013. Higher cementing and coiled tubing activity in Argentina also 
contributed to higher overall revenue. The revenue improvement achieved in 
Argentina was almost entirely offset by significantly lower fracturing 
activity in Mexico resulting from customer budget reductions.

Operating Income

During 2013, Calfrac's Latin America division generated operating income of 
$3.5 million versus $8.8 million in 2012. The decrease in operating income was 
primarily due to lower equipment utilization in Mexico and Colombia combined 
with higher SG&A expenses as a result of the larger overall scale of the 
Company's Latin American operations with the commencement of fracturing 
operations in Argentina.
    Corporate                                        
    Years Ended December 31,     2013     2012 Change
    (C$000s)                      ($)      ($)    (%)
    (unaudited)                                      
    Expenses                                         
      Operating                 8,706    9,973   (13)
      SG&A                     45,923   42,103      9
                               54,629   52,076      5
    Operating loss(1)        (54,629) (52,076)      5
                                                     
    % of Revenue                 3.5%     3.3%      6
    (1)  Refer to "Non-GAAP Measures" on page 20 for further information.
          

Operating Loss

The 5 percent increase in corporate expenses in 2013 over 2012 was mainly due 
to a $4.2 million increase in stock-based compensation expenses resulting from 
additional restricted share units granted to employees and a higher stock 
price in 2013. Higher corporate personnel costs to support the Company's 
larger scale of operations also contributed to the increase in corporate 
expenses. The increase was offset partially by lower annual bonus expenses.

Depreciation

Depreciation expense increased by 22 percent to $110.0 million for 2013 from 
$90.4 million in 2012. The increase was mainly a result of the acquisition of 
assets from Mission at the beginning of the fourth quarter of 2013 combined 
with a larger fleet of equipment deployed in North America and Argentina 
throughout 2013 pursuant to Calfrac's 2013 capital plan.

Foreign Exchange Losses or Gains

The Company recorded a foreign exchange loss of $1.2 million during 2013 
versus an $8.3 million gain in 2012. Foreign exchange gains and losses arise 
primarily from the translation of net monetary assets or liabilities that were 
held in United States dollars in Canada, Russia and Latin America. The 
majority of the Company's foreign exchange loss recorded in 2013 was 
attributable to U.S. dollar-denominated debt in Russia and Argentina as the 
U.S. dollar appreciated against the Russian rouble and Argentinean peso during 
the period. The loss was partially offset by the impact of the net U.S. 
dollar-denominated asset position in Canada as the U.S. dollar appreciated 
against the Canadian dollar during this period.

Interest

The Company's interest expense increased by $5.6 million to $42.0 million in 
2013 primarily due to the issuance of an additional US$150.0 million of 
Calfrac's 7.50 percent senior notes at the beginning of the fourth quarter of 
2013 to finance the acquisition of assets from Mission. Additional short-term 
borrowing in Latin America, which was used to fund Calfrac's Argentinean 
expansion, combined with a draw on the Company's revolving credit facility 
during the fourth quarter also contributed to the increase in interest expense 
during the year.

Income Tax Expenses

The Company recorded income tax expense of $7.2 million during 2013 compared 
to $41.4 million in 2012. The effective income tax rate for 2013 was 21 
percent compared to 30 percent in 2012. The decrease in total income tax 
expense was primarily due to lower profitability in Canada and Mexico. The 
lower effective tax rate was due to the mix of earnings between various tax 
jurisdictions combined with a lower-than-expected effective tax rate in the 
United States. The lower effective tax rate in the United States was partially 
due to the reclassification of $1.8 million of deferred tax expense related to 
the Mission acquisition to offset the gain on business combination as required 
under IFRS and as described below and in note 11.

Business Combination

On October 1, 2013, the Company acquired all of the operating assets of 
Mission. The purchase was recognized as a business combination and accounted 
for as such using the acquisition method of accounting under IFRS 3 Business 
Combinations. The gain of $4.5 million, before taxes, was recognized in the 
Statement of Operations on the acquisition date and represents the excess of 
the fair value of identifiable assets over the consideration paid. The Company 
has reassessed the fair value of the identifiable assets purchased and the 
fair value of the consideration transferred in determining the gain, as 
required under IFRS. The composition of the business combination expenses 
reported in the Statement of Operations is as follows:
                                                           
    Year Ended December 31,                                  2013
    (C$000s) (unaudited)                                      ($)
    Gain on business combination                          (4,522)
    Deferred taxes relating to business combination         1,775
                                                          (2,747)
    Acquisition costs                                       5,221
    Business combination                                    2,474
                                                           

Liquidity and Capital Resources

------------------------------
                                                               
    Years Ended December 31,                             2013      2012
    (C$000s) (unaudited)                                  ($)       ($)
    Cash provided by (used in):                                        
           Operating activities                       132,011   196,251
           Financing activities                       191,515  (28,762)
           Investing activities                     (331,720) (259,184)
           Effect of exchange rate changes on           7,908     1,121
           cash and cash equivalents
    Decrease in cash and cash equivalents               (286)  (90,574)
                                                               

Operating Activities

The Company's cash provided by operating activities for the year ended 
December 31, 2013 was $132.0 million versus $196.3 million in 2012. The 
decrease was primarily due to a decline in operating margins in Canada. At 
December 31, 2013, Calfrac's working capital was approximately $319.9 million, 
in line with its working capital at December 31, 2012 of $322.9 million. The 
Company had accounts receivable of US$40.8 million at December 31, 2013 with a 
customer operating in Mexico that has been outstanding for greater than 120 
days, for which no provision has been made. The payment delay is consistent 
with the experience of many other oilfield service companies in this market. 
Collection is expected in its entirety; however, the timing is uncertain.

Financing Activities

Net cash provided by financing activities was $191.5 million in 2013 compared 
to cash used in financing activities of $28.8 million in 2012. During 2013, 
the Company increased its senior notes by $150.2 million (net of debt issuance 
costs and debt discount) to finance the purchase of assets from Mission, 
received bank loan proceeds of $27.6 million in Argentina, received a net 
$22.8 million through draws and repayments on its credit facility, issued 
$15.8 million of common shares, paid cash dividends of $23.7 million and 
repaid $1.2 million of finance lease obligations and long-term debt.

On August 8, 2013, the Company extended the term of its credit facilities by 
one year to September 27, 2017. The maturity may be extended by one or more 
years at the Company's request and lenders' acceptance. The Company also may 
prepay principal without penalty. The facilities consist of an operating 
facility of $20.0 million and a syndicated facility of $280.0 million. The 
interest rates are based on the parameters of certain bank covenants. For 
prime-based loans and U.S. base-rate loans, the rate ranges from prime or U.S. 
base rate plus 0.50 percent to prime plus 1.25 percent. For LIBOR-based loans 
and bankers' acceptance-based loans, the margin thereon ranges from 1.50 
percent to 2.25 percent above the respective base rates. As at December 31, 
2013, the Company had used $24.4 million of its credit facilities for letters 
of credit and had $24.5 million outstanding under its credit facility, leaving 
$251.1 million in available credit.

On October 8, 2013, the Company closed a private offering of US$150.0 million 
aggregate principal of its 7.50 percent senior notes yielding net proceeds of 
$150.2 million (US$145.4 million) after applicable discount and debt issuance 
costs. Fixed interest on the notes is payable semi-annually on June 1 and 
December 1 of each year. The notes will mature on December 1, 2020. The net 
proceeds from this offering were used to finance the Mission asset acquisition.

Calfrac pays quarterly dividends to shareholders at the discretion of the 
Board of Directors, which qualify as "eligible dividends" as defined by the 
Canada Revenue Agency. In February 2012, the Company increased its semi-annual 
cash dividend from $0.10 to $0.50 per share, beginning with the dividend paid 
on July 16, 2012, thereby increasing the annualized dividend to $1.00 per 
share beginning in 2012. In December 2012, the Company announced that it would 
pay dividends quarterly instead of semi-annually commencing with a $0.25 
dividend that was declared in the first quarter of 2013.

Investing Activities

Calfrac's net cash used for investing activities was $331.7 million for the 
year ended December 31, 2013 versus $259.2 million for 2012. Cash outflows 
relating to capital expenditures were $170.5 million during 2013 compared to 
$279.0 million in 2012. Capital expenditures were primarily to support the 
Company's Canadian, United States, Russian and Argentinean fracturing 
operations.

On October 1, 2013, the Company completed the acquisition of the operating 
assets of Mission, a privately-held hydraulic fracturing and coiled tubing 
services provider based in San Antonio, Texas and operating in the Eagle Ford 
shale play of Texas. The acquisition provides the Company with modern 
fracturing and coiled tubing equipment and an entry into the Texas market. 
Under the terms of the purchase agreement, the total purchase price was 
approximately $150.5 million, excluding transaction costs, which included 
certain working capital associated with the ongoing operations of the 
business. The purchase price accounting for this transaction resulted in a 
business combination expense of $2.5 million recorded in 2013, the composition 
of which is described above and in note 11.

Calfrac's 2014 capital budget is projected to be approximately $120.0 million, 
of which $33.0 million is being directed towards growing its international 
operations, including an investment in coiled tubing and fracturing equipment 
in Russia and Argentina. In addition, approximately $20.0 million remaining 
from Calfrac's 2013 capital program is expected to be expended in 2014. As 
such, projected capital spending in 2014 is expected to be $160.0 million.

Effect of Exchange Rate Changes on Cash and Cash Equivalents

The effect of changes in foreign exchange rates on the Company's cash and cash 
equivalents during 2013 was a gain of $7.9 million versus a gain of $1.1 
million during 2012. These gains relate to cash and cash equivalents held by 
the Company in a foreign currency.

With its strong working capital position, available credit facilities and 
anticipated funds provided by operations, the Company expects to have adequate 
resources to fund its financial obligations and planned capital expenditures 
for 2014 and beyond.

At December 31, 2013, the Company had cash and cash equivalents of $42.2 
million.

Outstanding Share Data

The Company is authorized to issue an unlimited number of common shares. 
Employees have been granted options to purchase common shares under the 
Company's shareholder-approved stock option plan. The number of shares 
reserved for issuance under the stock option plan is equal to 10 percent of 
the Company's issued and outstanding common shares. As at February 21, 2014, 
there were 46,560,836 common shares issued and outstanding, and 2,945,725 
options to purchase common shares.

The Company has a Dividend Reinvestment Plan that allows shareholders to 
direct cash dividends paid on all or a portion of their common shares to be 
reinvested in additional common shares that will be issued at 95 percent of 
the volume-weighted average price of the common shares traded on the Toronto 
Stock Exchange (TSX) during the last five trading days preceding the relevant 
dividend payment date.

Normal Course Issuer Bid

The Company filed a Notice of Intention (the "Renewal Notice") to renew its 
Normal Course Issuer Bid (the "Renewed NCIB") with the TSX on November 1, 
2012. Under the Renewed NCIB, the Company could acquire up to 3,318,738 common 
shares, which was 10 percent of the public float outstanding as at October 31, 
2012, during the period November 12, 2012 through November 11, 2013. The 
maximum number of common shares that could be acquired by the Company during a 
trading day was 44,254, with the exception that the Company was allowed to 
make one block purchase of common shares per calendar week that exceeded such 
limit. All purchases of common shares were to be made through the TSX, 
alternative trading systems or such other exchanges or marketplaces through 
which the common shares trade from time to time at the market price of the 
shares at the time of acquisition. Any shares acquired under the Renewed NCIB 
were to be cancelled. There were no shares purchased under the Renewed NCIB 
for the year ended December 31, 2013. The NCIB was not renewed for 2014. A 
copy of the Renewal Notice may be obtained by any shareholder, without charge, 
by contacting the Company's Corporate Secretary at 411 - 8th Avenue S.W., 
Calgary, Alberta, T2P 1E3, or by telephone at 403-266-6000.

Advisories

------------------------------

Forward-Looking Statements

In order to provide Calfrac shareholders and potential investors with 
information regarding the Company and its subsidiaries, including management's 
assessment of Calfrac's plans and future operations, certain statements 
contained in this press release, including statements that contain words such 
as "seek", "anticipates", "plan", "continue", "estimate", "expect", "may", 
"will", "project", "predict", "potential", "targeting", "intend", "could", 
"might", "should", "believe", "forecast" or similar words suggesting future 
outcomes, are forward-looking statements.

In particular, forward-looking statements in this press release include, but 
are not limited to, statements with respect to expected operating strategies, 
capital expenditure programs, future financial resources, anticipated 
equipment utilization levels, future oil and natural gas well activity in each 
of the Company's operating jurisdictions, results of acquisitions, the impact 
of environmental regulations on the Company's business, future costs or 
potential liabilities, projections of market prices and costs, supply and 
demand for oilfield services, expectations regarding the Company's ability to 
maintain its competitive position, anticipated benefits of the Company's 
competitive position, expectations regarding the Company's ability to raise 
capital, treatment under government regulatory regimes, commodity prices, 
anticipated outcomes of specific events, trends in, and the growth prospects 
of, the global oil and natural gas industry, the Company's growth prospects 
including, without limitation, its international growth strategy and prospects 
and the impact of changes in accounting policies and standards on the Company 
and its financial statements. These statements are derived from certain 
assumptions and analyses made by the Company based on its experience and 
perception of historical trends, current conditions, expected future 
developments and other factors that it believes are appropriate in the 
circumstances, including, but not limited to, the general stability of the 
economic and political environment in which the Company operates, the 
Company's expectations for its current and prospective customers' capital 
budgets and geographical areas of focus, the Company's existing contracts and 
the status of current negotiations with key customers and suppliers, the focus 
of the Company's customers on oil and liquids-rich plays in the current 
natural gas pricing environment in North America, the effect unconventional 
gas projects have had on supply and demand fundamentals for natural gas and 
the likelihood that the current tax and regulatory regime will remain 
substantially unchanged.

Forward-looking statements are subject to a number of known and unknown risks 
and uncertainties that could cause actual results to differ materially from 
the Company's expectations. Such risk factors include: general economic 
conditions in Canada, the United States, Russia, Mexico, Argentina and 
Colombia; the demand for fracturing and other stimulation services during 
drilling and completion of oil and natural gas wells; volatility in market 
prices for oil and natural gas and the effect of this volatility on the demand 
for oilfield services generally; regional competition; liabilities and risks, 
including environmental liabilities and risks, inherent in oil and natural gas 
operations; changes in legislation and the regulatory environment; sourcing, 
pricing and availability of raw materials, component parts, equipment, 
suppliers, facilities and skilled personnel; the ability to integrate 
technological advances and match advances of competition; the availability of 
capital on satisfactory terms; intellectual property risks; uncertainties in 
weather and temperature affecting the duration of the service periods and the 
activities that can be completed; dependence on, and concentration of, major 
customers; the creditworthiness and performance by the Company's 
counterparties and customers; liabilities and risks associated with prior 
operations; the effect of accounting pronouncements issued periodically; 
failure to realize anticipated benefits of acquisitions and dispositions; and 
currency exchange rate risk. Further information about these and other risks 
and uncertainties may be found in the Company's most recently filed Annual 
Information Form.

Consequently, all of the forward-looking statements made in this press release 
are qualified by these cautionary statements and there can be no assurance 
that actual results or developments anticipated by the Company will be 
realized, or that they will have the expected consequences or effects on the 
Company or its business or operations. These statements speak only as of the 
respective date of this press release or the document incorporated by 
reference herein. The Company assumes no obligation to update publicly any 
such forward-looking statements, whether as a result of new information, 
future events or otherwise, except as required pursuant to applicable 
securities laws.

Business Risks

The business of Calfrac is subject to certain risks and uncertainties. Prior 
to making any investment decision regarding Calfrac, investors should 
carefully consider, among other things, the risk factors set forth in the 
Company's most recently filed Annual Information Form, which are specifically 
incorporated by reference herein.

The Annual Information Form is available through the Internet on the Canadian 
System for Electronic Document Analysis and Retrieval (SEDAR), which can be 
accessed at www.sedar.com. Copies of the Annual Information Form may also be 
obtained on request without charge from Calfrac at 411 - 8(th) Avenue S.W., 
Calgary, Alberta, Canada, T2P 1E3, or at www.calfrac.com, or by facsimile at 
403-266-7381.

Non-GAAP Measures

Certain supplementary measures in this press release do not have any 
standardized meaning as prescribed under IFRS and are therefore considered 
non-GAAP measures. These measures include operating income and EBITDA. These 
measures may not be comparable to similar measures presented by other 
entities. 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's financial results, liquidity 
and its ability to generate funds to finance its operations. Management's use 
of these measures has been disclosed further in this press release as these 
measures are discussed and presented.

Additional Information

Further information regarding Calfrac Well Services Ltd., including the most 
recently filed Annual Information Form, can be accessed on the Company's 
website at www.calfrac.com or under the Company's public filings found at 
www.sedar.com.

Fourth Quarter Conference Call

Calfrac will be conducting a conference call for interested analysts, brokers, 
investors and news media representatives to review its 2013 fourth quarter 
results at 10:00 a.m. (Mountain Time) on Wednesday, February 26, 2014. The 
conference call dial-in number is 1-888-231-8191 or 647-427-7450. The 
seven-day replay numbers are 1-855-859-2056 or 416-849-0833 (once connected, 
enter 96180761). A webcast of the conference call may be accessed via the 
Company's website at www.calfrac.com.
    CONSOLIDATED BALANCE SHEETS                                   
    As at December 31,                                      2013      2012
    (C$000s) (unaudited)                                     ($)       ($)
    ASSETS                                                                
    Current assets                                                        
      Cash and cash equivalents                           42,195    42,481
      Accounts receivable                                395,845   320,143
      Income taxes recoverable                             1,146       292
      Inventories                                        134,140   118,713
      Prepaid expenses and deposits                       17,189    10,697
                                                         590,515   492,326
    Non-current assets                                                    
      Property, plant and equipment                    1,245,009 1,005,101
      Goodwill                                            10,523    10,523
      Deferred income tax assets                          23,884    16,871
    Total assets                                       1,869,931 1,524,821
                                                                  
    LIABILITIES AND EQUITY                                                
    Current liabilities                                                   
      Accounts payable and accrued liabilities           245,899   168,250
      Bank loan (note 3)                                  24,298         -
      Current portion of long-term debt (note 4)             384       479
      Current portion of finance lease obligations             -       740
                                                         270,581   169,469
    Non-current liabilities                                               
      Long-term debt (note 4)                            651,553   441,018
      Other long-term liabilities                            198       435
      Deferred income tax liabilities                    152,392   133,140
    Total liabilities                                  1,074,724   744,062
    Equity attributable to the shareholders of Calfrac                    
    Capital stock (note 5)                               332,287   300,451
    Contributed surplus (note 7)                          27,658    27,546
    Loan receivable for purchase of common shares        (2,500)   (2,500)
    (note 14)
    Retained earnings                                    440,179   458,543
    Accumulated other comprehensive loss                   (839)   (2,403)
                                                         796,785   781,637
    Non-controlling interest                             (1,578)     (878)
    Total equity                                         795,207   780,759
    Total liabilities and equity                       1,869,931 1,524,821
    See accompanying notes to the consolidated financial statements.
       CONSOLIDATED STATEMENTS                                      
    OF OPERATIONS
                              Three Months Ended Dec. Years Ended Dec. 31,
                              31,
                                 2013            2012      2013       2012
    (C$000s, except per share     ($)             ($)       ($)        ($)
    data) (unaudited)
    Revenue                   463,054         367,487 1,563,814  1,595,216
    Cost of sales (note 15)   411,404         321,860 1,389,558  1,334,828
    Gross profit               51,650          45,627   174,256    260,388
    Expenses                                                              
           Selling, general    25,644          26,043    96,186     93,756
           and administrative
           Foreign exchange   (1,517)         (3,818)     1,183    (8,260)
           (gains) losses
           Business             2,474               -     2,474          -
           combination (note
           11)
           (Gain) loss on     (1,208)             170   (1,514)        802
           disposal of
           property, plant
           and  equipment
           Interest            13,433           8,933    41,985     36,354
                               38,826          31,328   140,314    122,652
    Income before income tax   12,824          14,299    33,942    137,736
    Income tax expense                                                    
           Current                814           (344)     3,853      4,733
           Deferred               259           3,662     3,356     36,642
                                1,073           3,318     7,209     41,375
    Net income for the period  11,751          10,981    26,733     96,361
                                                                          
    Net income (loss)                                                     
    attributable to:
           Shareholders of     11,764          11,243    27,914     97,146
           Calfrac
           Non-controlling       (13)           (262)   (1,181)      (785)
           interest
                               11,751          10,981    26,733     96,361
                                                                          
    Earnings per share(note                                               
    5)
           Basic                 0.25            0.25      0.61       2.19
           Diluted               0.25            0.25      0.61       2.17
    See accompanying notes to the consolidated financial statements.
       CONSOLIDATED STATEMENTS OF                                
    COMPREHENSIVE INCOME
                                  Three Months Ended Years Ended Dec. 31,
                                  Dec. 31,
                                    2013        2012    2013         2012
    (C$000s) (unaudited)             ($)         ($)     ($)          ($)
    Net income for the period     11,751      10,981  26,733       96,361
    Other comprehensive income                                           
    (loss)
    Items that may be                                                    
    subsequently reclassified to
    profit or loss:
           Change in foreign       2,337         460   1,602      (3,856)
           currency
           translation adjustment
    Comprehensive income for the  14,088      11,441  28,335       92,505
    period
                                                              
    Comprehensive income (loss)                                          
    attributable to:
           Shareholders of        14,056      11,707  29,478       93,409
           Calfrac
           Non-controlling            32       (266) (1,143)        (904)
           interest
                                  14,088      11,441  28,335       92,505
    See accompanying notes to the consolidated financial statements.
       CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY                                        
                                                                                                    
                                 Equity Attributable to the Shareholders of Calfrac                        
                                                  Loan
                                            Receivable
                                                   for
                                              Purchase   Accumulated
                                                    of         Other                          Non-
                          Share Contributed     Common Comprehensive Retained          Controlling    Total
                        Capital     Surplus     Shares Income (Loss) Earnings    Total    Interest   Equity
    (C$000s)                ($)         ($)        ($)           ($)      ($)      ($)         ($)      ($)
    (unaudited)
    Balance - January   300,451      27,546    (2,500)       (2,403)  458,543  781,637       (878)  780,759
    1, 2013
    Net income for the        -           -          -             -   27,914   27,914     (1,181)   26,733
    year
    Other comprehensive                                                                                    
    income:
           Cumulative         -           -          -         1,564        -    1,564          38    1,602
           translation
           adjustment
    Comprehensive             -           -          -         1,564   27,914   29,478     (1,143)   28,335
    income for the year
    Stock options:                                                                                         
           Stock-based        -       5,454          -             -        -    5,454           -    5,454
           compensation
           recognized
           Proceeds      21,132     (5,342)          -             -        -   15,790           -   15,790
           from
           issuance of
           shares
    Dividend                                                                                               
    Reinvestment Plan
    shares
           issued (note  10,704           -          -             -        -   10,704           -   10,704
           21)
    Dividends                 -           -          -             - (45,953) (45,953)           - (45,953)
    Non-controlling           -           -          -             -        -        -         118      118
    interest
    contribution
    Dilution of               -           -          -             -    (325)    (325)         325        -
    non-controlling
    interest
    Balance - December  332,287      27,658    (2,500)         (839)  440,179  796,785     (1,578)  795,207
    31, 2013
                                                                                                           
    Balance - January   271,817      24,170    (2,500)         1,334  405,954  700,775       (206)  700,569
    1, 2012
    Net income for the        -           -          -             -   97,146   97,146       (785)   96,361
    year
    Other comprehensive                                                                                    
    income:
           Cumulative         -           -          -       (3,737)        -  (3,737)       (119)  (3,856)
           translation
           adjustment
    Comprehensive             -           -          -       (3,737)   97,146   93,409       (904)   92,505
    income for the year
    Stock options:                                                                                         
           Stock-based        -       6,990          -             -        -    6,990           -    6,990
           compensation
           recognized
           Proceeds      14,836     (3,614)          -             -        -   11,222           -   11,222
           from
           issuance of
           shares
    Dividend                                                                                               
    Reinvestment Plan
    shares
           issued (note  13,798           -          -             -        -   13,798           -   13,798
           21)
    Dividends                 -           -          -             - (44,557) (44,557)           - (44,557)
    Non-controlling           -           -          -             -        -        -         232      232
    interest
    contribution
    Balance - December  300,451      27,546    (2,500)       (2,403)  458,543  781,637       (878)  780,759
    31, 2012
    See accompanying notes to the consolidated financial statements.
       CONSOLIDATED
    STATEMENTS OF CASH      
    FLOWS
                           Three Months Ended Dec. 31, Years Ended Dec. 31,
                                2013              2012      2013       2012
    (C$000s) (unaudited)         ($)               ($)       ($)        ($)
    CASH FLOWS PROVIDED BY                                                 
    (USED IN)
    OPERATING ACTIVITIES                                                   
      Net income for the      11,751            10,981    26,733     96,361
      period
      Adjusted for the                                                     
      following:
        Depreciation          31,410            23,634   110,006     90,381
        Stock-based            1,075             1,926     5,454      6,990
        compensation (note
        8)
        Unrealized foreign     (320)           (2,462)     1,350   (10,895)
        exchange (gains)
        losses
        Gain on business     (2,747)                 -   (2,747)          -
        combination, net
        of tax (note 11)
        (Gain) loss on       (1,208)               170   (1,514)        802
        disposal of
        property, plant
        and equipment
        Interest              13,433             8,933    41,985     36,354
        Deferred income          259             3,662     3,356     36,642
        taxes
      Interest paid         (20,386)          (16,883)  (39,770)   (34,596)
      Changes in items of   (46,609)          (10,739)  (12,842)   (25,788)
      working capital
      (note 10)
    Cash flows provided by  (13,342)            19,222   132,011    196,251
    operating activities
    FINANCING ACTIVITIES                                                   
      Bank loan proceeds      11,173                 -    27,596      2,734
      Issuance of            339,866             (511)   365,581      (440)
      long-term debt, net
      of debt issuance
      costs
      Bank loan repayments         -           (4,948)         -    (4,948)
      Long-term debt       (166,714)             (125) (193,037)      (461)
      repayments
      Finance lease                -             (135)     (740)    (1,734)
      obligation
      repayments
      Net proceeds on            403               693    15,790     11,222
      issuance of common
      shares
      Dividends paid, net    (7,249)          (16,431)  (23,675)   (35,135)
      of DRIP (note 21)
    Cash flows provided by   177,479          (21,457)   191,515   (28,762)
    (used in)
    financing activities
    INVESTING ACTIVITIES                                                   
      Purchase of           (41,330)          (55,338) (183,124)  (261,321)
      property, plant and
      equipment (note 10)
      Proceeds on disposal       713               392     1,799      1,905
      of property, plant
      and equipment
      Business combination (150,513)                 - (150,513)          -
      (note 11)
      Other                        -                39       118        232
    Cash flows used in     (191,130)          (54,907) (331,720)  (259,184)
    investing activities
    Effect of exchange         5,440             3,168     7,908      1,121
    rate changes on cash
    and cash equivalents
    Increase (decrease) in  (21,553)          (53,974)     (286)   (90,574)
    cash and cash
    equivalents
    Cash and cash             63,748            96,455    42,481    133,055
    equivalents, beginning
    of period
    Cash and cash             42,195            42,481    42,195     42,481
    equivalents, end of
    period
    See accompanying notes to the consolidated financial statements.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

------------------------------

As at and for the years ended December 31, 2013 and 2012
(Amounts in text and tables are in thousands of Canadian dollars, except share 
data and certain other exceptions as indicated) (unaudited)

1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION

Calfrac Well Services Ltd. was formed through the amalgamation of Calfrac Well 
Services Ltd. (predecessor company originally incorporated on June 28, 1999) 
and Denison Energy Inc. ("Denison") on March 24, 2004 under the Business 
Corporations Act (Alberta). The registered office is at 411 - 8(th) Avenue 
S.W., Calgary, Alberta, Canada, T2P 1E3. The Company provides specialized 
oilfield services, including hydraulic fracturing, coiled tubing, cementing 
and other well completion services to the oil and natural gas industries in 
Canada, the United States, Russia, Mexico, Argentina and Colombia.

These consolidated financial statements were prepared in accordance with 
International Financial Reporting Standards as issued by the International 
Accounting Standards Board (IASB) and interpretations by the International 
Financial Reporting Interpretations Committee (IFRIC).

The Company has consistently applied the same accounting policies throughout 
all periods presented, as if these policies had always been in effect.

These financial statements were approved by the Board of Directors for 
issuance on February 25, 2014.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

These interim consolidated financial statements follow the same accounting 
policies and methods of application as the most recent annual financial 
statements.

For purposes of calculating income taxes during interim periods, the Company 
utilizes estimated annualized income tax rates. Current income tax expense is 
only recognized when taxable income is such that current income taxes become 
payable.

The adoption of accounting standards and amendments, effective January 1, 
2013, is disclosed in the March 31, 2013 interim consolidated financial 
statements.

3. BANK LOAN

The Company's Argentinean subsidiary has two operating lines of credit, and a 
total of ARS148,975 ($24,298) was drawn at December 31, 2013 (December 31, 
2012 - $nil). The interest rate ranges from 35.0 percent to 38.0 percent and 
both lines of credit are secured by letters of credit issued by the Company.

4. LONG-TERM DEBT
    As at December 31,                                         2013    2012
    (C$000s)                                                    ($)     ($)
    US$600,000 senior unsecured notes (December 31, 2012                   
    -
           US$450,000) due December 1, 2020, bearing                       
           interest at
           7.5% payable semi-annually                       638,160 447,705
    Less: unamortized debt issuance costs and debt         (11,161) (6,895)
    discount
                                                            626,999 440,810
    $280,000 extendible revolving term loan facility,                      
    secured
           by Canadian and U.S. assets of the Company        24,463       -
    Less: unamortized debt issuance costs                   (1,291) (1,444)
                                                             23,172 (1,444)
    US$1,661 mortgage maturing May 2018 bearing interest                   
           at U.S. prime less 1%, repayable at US$33 per                   
           month
           principal and interest, secured by certain         1,766   2,003
           real property
    Argentina term loan maturing December 31, 2013                         
    bearing
           interest at 18.25%, repayable at ARS61 per                      
           month
           principal and interest, secured by a Company           -     128
           guarantee
                                                            651,937 441,497
    Less: current portion of long-term debt                   (384)   (479)
                                                            651,553 441,018
                                                            

The fair value of the senior unsecured notes, as measured based on the closing 
quoted market price at December 31, 2013, was $652,921 (December 31, 2012 - 
$443,228). The carrying values of the mortgage obligations, term loans and 
revolving term loan facilities approximate their fair values as the interest 
rates are not significantly different from current interest rates for similar 
loans.

On October 8, 2013, the Company closed a private offering of US$150,000 of its 
7.5 percent senior notes yielding net proceeds of $150,208 (US$145,396) after 
applicable debt discount and debt issuance costs. The notes bear the same 
terms and conditions as the pre-existing senior notes.

The interest rate on the $280,000 revolving term loan facility is based on the 
parameters of certain bank covenants. For prime-based loans, the rate ranges 
from prime plus 0.50 percent to prime plus 1.25 percent. For LIBOR-based loans 
and Bankers' Acceptance-based loans the margin thereon ranges from 1.50 
percent to 2.25 percent above the respective base rates for such loans. The 
facility is repayable on or before its maturity of September 27, 2017, 
assuming it is not extended. The maturity may be extended by one or more years 
at the Company's request and lenders' acceptance. The Company may also prepay 
principal without penalty. Debt issuance costs related to this facility are 
amortized over its term.

Interest on long-term debt (including the amortization of debt issuance costs 
and debt discount) for the year ended December 31, 2013 was $40,629 (year 
ended December 31, 2012 - $36,085).

The Company also has an extendible operating loan facility, which includes 
overdraft protection in the amount of $20,000. The interest rate is based on 
the parameters of certain bank covenants in the same fashion as the revolving 
term facility. Drawdowns under this facility are repayable on September 27, 
2017, assuming the facility is not extended. The term and commencement of 
principal repayments may be extended by one year on each anniversary at the 
Company's request and lenders' acceptance. The operating facility is secured 
by the Company's Canadian and U.S. assets.

At December 31, 2013, the Company had utilized $24,410 of its loan facility 
for letters of credit and had $24,463 outstanding under its credit facility, 
leaving $251,127 in available credit.

5. CAPITAL STOCK

Authorized capital stock consists of an unlimited number of common shares.
    Years Ended December 31,                     2013                2012
    Continuity of Common Shares       Shares   Amount     Shares   Amount
                                         (#) (C$000s)        (#) (C$000s)
    Balance, beginning of year    45,020,641  300,451 43,709,073  271,817
    Issued upon exercise of stock    896,837   21,132    686,488   14,836
    options
    Dividend Reinvestment Plan       381,096   10,704    625,080   13,798
    shares issued (note 21)
    Balance, end of year          46,298,574  332,287 45,020,641  300,451
                                                                  

The weighted average number of common shares outstanding for the year ended 
December 31, 2013 was 45,727,828 basic and 46,045,471 diluted (year ended 
December 31, 2012 - 44,334,810 basic and 44,808,099 diluted). The difference 
between basic and diluted shares is attributable to the dilutive effect of 
stock options issued by the Company as disclosed in note 8.

6. NORMAL COURSE ISSUER BID

The Company received regulatory approval to purchase its own common shares in 
accordance with a Normal Course Issuer Bid (NCIB) for the one-year period 
November 7, 2011 through November 6, 2012 and for the one-year period November 
12, 2012 through November 11, 2013. There were no shares purchased under the 
NCIB for the years ended December 31, 2013 or 2012. The NCIB was not renewed 
for 2014.

7. CONTRIBUTED SURPLUS
                                               
    Continuity of Contributed Surplus
    Years Ended December 31,             2013    2012
    (C$000s)                              ($)     ($)
    Balance, beginning of year         27,546  24,170
      Stock options expensed            5,454   6,990
      Stock options exercised         (5,342) (3,614)
    Balance, end of year               27,658  27,546
                                               

8. STOCK-BASED COMPENSATION

(a) Stock Options
    Continuity of Stock Options                2013               2012
                                                Average            Average
                                               Exercise           Exercise
                                       Options    Price   Options    Price
                                           (#)     (C$)       (#)     (C$)
    Balance, January 1               2,920,412    25.67 3,198,475    23.31
           Granted during the year     707,700    24.64   704,200    27.71
           Exercised for common      (896,837)    17.61 (686,488)    16.35
           shares
           Forfeited                 (228,025)    28.94 (295,775)    26.60
           Expired                     (1,875)    13.06         -        -
    Balance, December 31             2,501,375    27.98 2,920,412    25.67
                                                                   

Stock options vest equally over four years and expire five years from the date 
of grant. When stock options are exercised, the proceeds, together with the 
amount of compensation expense previously recorded in contributed surplus, are 
added to capital stock.

(b) Stock Units
    Continuity of                        2013                            2012
    Stock Units
                     Deferred Performance Restricted Deferred Performance Restricted
                        Stock       Stock      Stock    Stock       Stock      Stock
                        Units       Units      Units    Units       Units      Units
                          (#)         (#)        (#)      (#)         (#)        (#)
    Balance, January   35,000      45,000    247,230   35,000      40,000          -
    1
           Granted     35,000      45,000    399,125   35,000      45,000    270,135
           during
           the year
           Exercised (35,000)    (45,000)   (82,410) (35,000)    (40,000)          -
           Forfeited        -           -   (50,150)        -           -   (22,905)
    Balance,           35,000      45,000    513,795   35,000      45,000    247,230
    December 31
                                                                           

The Company grants deferred stock units to its outside directors. These units 
vest in November of the year of grant and are settled either in cash (equal to 
the market value of the underlying shares at the time of exercise) or in 
Company shares purchased on the open market. The fair value of the deferred 
stock units is recognized equally over the vesting period, based on the 
current market price of the Company's shares. During the year ended December 
31, 2013, $1,064 of compensation expense was recognized for deferred stock 
units (year ended December 31, 2012 - $885). This amount is included in 
selling, general and administrative expenses. At December 31, 2013, the 
liability pertaining to deferred stock units was $1,085 (December 31, 2012 - 
$877).

The Company grants performance stock units to its senior officers who do not 
participate in the stock option plan. The amount of the grants earned is 
linked to corporate performance and the grants vest on the approval of the 
Board of Directors at the meeting held to approve the consolidated financial 
statements for the year in respect of which performance is being evaluated. As 
with the deferred stock units, performance stock units are settled either in 
cash or Company shares purchased on the open market. During the year ended 
December 31, 2013, $1,467 of compensation expense was recognized for 
performance stock units (year ended December 31, 2012 - $1,296). This amount 
is included in selling, general and administrative expenses. At December 31, 
2013, the liability pertaining to performance stock units was $1,395 (December 
31, 2012 - $1,227).

The Company grants restricted share units to its employees. These units vest 
equally over three years and are settled either in cash (equal to the market 
value of the underlying shares at the time of exercise) or in Company shares 
purchased on the open market. The fair value of the restricted share units is 
recognized over the vesting period, based on the current market price of the 
Company's shares. During the year ended December 31, 2013, $9,031 of 
compensation expense was recognized for restricted share units (year ended 
December 31, 2012 - $3,693). This amount is included in selling, general and 
administrative expense. At December 31, 2013, the liability pertaining to 
restricted share units was $10,696 (December 31, 2012 - $3,693).

Changes in the Company's obligations under the deferred and performance stock 
unit plans and restricted share unit plan, which arise from fluctuations in 
the market value of the Company's shares underlying these compensation 
programs, are recorded as the share value changes.

9. FINANCIAL INSTRUMENTS

The Company's financial instruments included in the consolidated balance 
sheets are comprised of cash and cash equivalents, accounts receivable, 
accounts payable and accrued liabilities, bank loan and long-term debt.

The fair values of financial instruments included in the consolidated balance 
sheets, except long-term debt, approximate their carrying amounts due to the 
short-term maturity of those instruments. The fair value of the senior 
unsecured notes based on the closing market price at December 31, 2013 was 
$652,921 before deduction of unamortized debt issuance costs (December 31, 
2012 - $443,228). The carrying value of the senior unsecured notes at December 
31, 2013 was $638,160 before deduction of unamortized debt issuance costs and 
debt discount (December 31, 2012 - $447,705). The fair values of the remaining 
long-term debt obligations approximate their carrying values, as described in 
note 4.

10. SUPPLEMENTAL CASH FLOW INFORMATION

Changes in non-cash operating assets and liabilities are as follows:
                             Three Months Ended Dec 31, Years Ended Dec 31,
                                 2013              2012     2013       2012
    (C$000s)                                                               
    Accounts receivable      (97,816)          (15,895) (75,702)    (6,245)
    Income taxes recoverable    1,393             (345)    (854)      1,048
    Inventory                (12,852)             4,887  (8,748)   (24,369)
    Prepaid expenses and        4,487             2,447  (5,230)      (548)
    deposits
    Accounts payable and       58,234           (1,782)   77,929      4,666
    accrued liabilities
    Other long-term              (55)              (51)    (237)      (340)
    liabilities
                             (46,609)          (10,739) (12,842)   (25,788)
                                                                  

Purchase of property, plant and equipment (excluding the business acquisition 
disclosed in note 11) is comprised of:
                           Three Months Ended Dec. 31, Years Ended Dec. 31,
                               2013               2012      2013       2012
    (C$000s)                    ($)                ($)                     
    Property, plant and    (45,227)           (55,694) (170,517)  (279,017)
    equipment additions
    Change in liabilities                                                  
    related to purchase of
           property, plant    3,897                356  (12,607)     17,696
           and equipment
                           (41,330)           (55,338) (183,124)  (261,321)
                                                                  

11. BUSINESS COMBINATION

On October 1, 2013, the Company acquired all of the operating assets of 
Mission Well Services, LLC ("Mission"), a privately-held hydraulic fracturing 
and coiled tubing services provider based in San Antonio, Texas and operating 
in the Eagle Ford shale play. The total purchase price was cash consideration 
of $150,513. The purchase was recognized as a business combination and 
accounted for as such using the acquisition method of accounting under IFRS 3 
Business Combinations.

The acquisition provides the Company with modern fracturing and coiled tubing 
equipment as well as an entry into the Texas pressure pumping market. The 
recognized amounts of identifiable assets acquired and liabilities assumed are 
as follows:
    (C$000s)                                         ($)
    Prepaid expenses and deposits                  1,261
    Inventory                                      6,680
    Property, plant and equipment                147,094
    Deferred income tax liability                (1,775)
    Total identifiable net assets                153,260
    Gain on business combination, net of tax     (2,747)
    Total consideration                          150,513
                                                  

The composition of the business combination expenses reported in the Statement 
of Operations is as follows:
    (C$000s)                                                ($)
    Gain on business combination                        (4,522)
    Deferred taxes relating to business combination       1,775
                                                        (2,747)
    Acquisition costs                                     5,221
    Business combination                                  2,474
                                                         

The gain of $4,522, before taxes, was recognized in the Statement of 
Operations on the acquisition date and represents the excess of the fair value 
of identifiable assets over the consideration paid.

The Company has reassessed the fair value of the identifiable assets purchased 
and the fair value of the consideration transferred in determining the gain, 
as required under IFRS.

During the period October 1, 2013 to December 31, 2013, the acquisition 
contributed immaterial operating income to the Company. The effect on revenue 
and operating income, had the acquisition occurred on January 1, 2013, is not 
determinable.

12. CAPITAL STRUCTURE

The Company's capital structure is comprised of shareholders' equity and 
long-term debt. The Company's objectives in managing capital are (i) to 
maintain flexibility so as to preserve its access to capital markets and its 
ability to meet its financial obligations, and (ii) to finance growth, 
including potential acquisitions.

The Company manages its capital structure and makes adjustments in light of 
changing market conditions and new opportunities, while remaining cognizant of 
the cyclical nature of the oilfield services sector. To maintain or adjust its 
capital structure, the Company may revise its capital spending, adjust 
dividends paid to shareholders, issue new shares or new debt or repay existing 
debt.

The Company monitors its capital structure and financing requirements using, 
amongst other parameters, the ratio of long-term debt to cash flow. Cash flow 
for this purpose is calculated on a 12-month trailing basis and is defined as 
follows:
    Years Ended December 31,                            2013     2012
    (C$000s)                                             ($)      ($)
    Net income for the year                           26,733   96,361
    Adjusted for the following:                                      
      Depreciation                                   110,006   90,381
      Amortization of debt issuance costs and debt     1,464    1,234
      discount
      Stock-based compensation                         5,454    6,990
      Unrealized foreign exchange losses (gains)       1,350 (10,895)
      Gain on business combination, net of tax       (2,747)        -
      (Gain) loss on disposal of property, plant and (1,514)      802
      equipment
      Deferred income taxes                            3,356   36,642
    Cash flow                                        144,102  221,515
                                                              

The ratio of long-term debt to cash flow does not have a standardized meaning 
under IFRS and may not be comparable to similar measures used by other 
companies.

At December 31, 2013, the long-term debt to cash flow ratio was 4.52:1 
(December 31, 2012 - 1.99:1) calculated on a 12-month trailing basis as 
follows:
    As at December 31,                                        2013    2012
    (C$000s, except ratio)                                     ($)     ($)
    Long-term debt (net of unamortized debt issuance costs          
    and
      debt discount) (note 4)                              651,937 441,497
    Cash flow                                              144,102 221,515
    Long-term debt to cash flow ratio                       4.52:1  1.99:1
                                                                    

The ratio is higher at the current year-end than the prior year-end due to 
additional debt taken on to acquire the Mission assets. The ratio reflects the 
full amount of debt (at December 31, 2013) whereas cash flow only represents 
three months of activities related to the Mission assets.

The Company is subject to certain financial covenants relating to working 
capital, leverage and the generation of cash flow in respect of its operating 
and revolving credit facilities. These covenants are monitored on a monthly 
basis. The Company is in compliance with all such covenants.

The Company's capital management objectives, evaluation measures and targets 
remained unchanged over the periods presented.

13. PURCHASE OBLIGATIONS

The Company has obligations for the purchase of products, services and 
property, plant and equipment over the next five years that total 
approximately $114,814.

14. RELATED-PARTY TRANSACTIONS

In November 2010, the Company lent a senior officer $2,500 to purchase common 
shares of the Company on the Toronto Stock Exchange. The loan is on a 
non-recourse basis and is secured by the common shares acquired with the loan 
proceeds. It is for a term of five years and bears interest at 3.375 percent 
per annum, payable annually. The market value of the shares that secure the 
loan was approximately $2,623 as at December 31, 2013 (December 31, 2012 - 
$2,119). In accordance with applicable accounting standards regarding share 
purchase loans receivable, this loan is classified as a reduction of 
shareholders' equity due to its non-recourse nature. In addition, the shares 
purchased with the loan proceeds are considered to be, in substance, stock 
options.

The Company leases certain premises from an entity controlled by a director of 
the Company. The rent charged for these premises during 2013 was $552 (year 
ended December 31, 2012 - $356), as measured at the exchange amount.

During 2012, an entity controlled by a director of the Company provided 
ongoing real estate advisory services to the Company; the aggregate fees 
charged for such services were $29. This arrangement was discontinued in 2013.

15. PRESENTATION OF EXPENSES

The Company presents its expenses on the consolidated Statements of Operations 
using the function of expense method whereby expenses are classified according 
to their function within the Company. This method was selected as it is more 
closely aligned with the Company's business structure. The Company's functions 
under IFRS are as follows:
        --  operations; and
        --  selling, general and administrative.

Cost of sales includes direct operating costs (including product costs, direct 
labour and overhead costs) and depreciation on assets relating to operations.

Additional information on the nature of expenses is as follows:
    Years Ended December 31,                                 2013    2012
    (C$000s)                                                  ($)     ($)
    Product costs                                         477,384 490,222
    Depreciation                                          110,006  90,381
    Amortization of debt issuance costs and debt discount   1,464   1,234
    Employee benefits expense (note 16)                   379,117 356,844
                                                                   
                                                           

16. EMPLOYEE BENEFITS EXPENSE

Employee benefits include all forms of consideration given by the Company in 
exchange for services rendered by employees.
    Years Ended December 31,                              2013    2012
    (C$000s)                                               ($)     ($)
    Salaries and short-term employee benefits          356,519 337,919
    Post-employment benefits (group retirement savings   3,595   3,587
    plan)
    Share-based payments                                17,016  12,866
    Termination benefits                                 1,987   2,472
                                                       379,117 356,844
                                                                

17. COMPENSATION OF KEY MANAGEMENT

Key management is defined as the Company's Board of Directors, Chief Executive 
Officer, Chief Financial Officer, and Chief Operating Officer. Compensation 
awarded to key management comprised:
    Years Ended December 31,                                  2013  2012
    (C$000s)                                                   ($)   ($)
    Salaries, fees and short-term benefits                   2,151 2,756
    Post-employment benefits (group retirement savings plan)    39    34
    Share-based payments                                     2,732 2,392
                                                             4,922 5,182
                                                                    

In the event of termination, key management (excluding the Board of Directors) 
are entitled to one to two years of annual compensation. In the event of 
termination resulting from change of control, key management (excluding the 
Board of Directors) are entitled to two years of annual compensation.

18. CONTINGENCIES

Greek Litigation

As a result of the acquisition and amalgamation with Denison in 2004, the 
Company assumed certain legal obligations relating to Denison's Greek 
operations.

In 1998, North Aegean Petroleum Company E.P.E. ("NAPC"), a Greek subsidiary of 
a consortium in which Denison participated (and which is now a majority-owned 
subsidiary of the Company), terminated employees in Greece as a result of the 
cessation of its oil and natural gas operations in that country. Several 
groups of former employees filed claims against NAPC and the consortium 
alleging that their termination was invalid and that their severance pay was 
improperly determined.

In 1999, the largest group of plaintiffs received a ruling from the Athens 
Court of First Instance that their termination was invalid and that salaries 
in arrears amounting to approximately $10,033 (6,846 euros) plus interest were 
due to the former employees. This decision was appealed to the Athens Court of 
Appeal, which allowed the appeal in 2001 and annulled the above-mentioned 
decision of the Athens Court of First Instance. The said group of former 
employees filed an appeal with the Supreme Court of Greece, which was heard on 
May 29, 2007. The Supreme Court of Greece allowed the appeal and sent the 
matter back to the Athens Court of Appeal for the consideration of the quantum 
of awardable salaries in arrears. On June 3, 2008, the Athens Court of Appeal 
rejected NAPC's appeal and reinstated the award of the Athens Court of First 
Instance, which decision was further appealed to the Supreme Court of Greece. 
The matter was heard on April 20, 2010 and a decision rejecting such appeal 
was rendered in June 2010. NAPC and the Company are assessing available rights 
of appeal to any other levels of court in any jurisdiction where such an 
appeal is warranted. NAPC is also the subject of a claim for approximately 
$4,194 (2,862 euros) from the Greek Social Security Agency for social security 
obligations associated with the salaries in arrears that are the subject 
matter of the above-mentioned decision and interest of approximately $3,226 
(2,201 euros) payable on such amounts as at December 31, 2013.

Several other smaller groups of former employees have filed similar claims in 
various courts in Greece. One of these cases was heard by the Athens Court of 
First Instance on January 18, 2007. By judgment rendered November 23, 2007, 
the plaintiff's allegations were partially accepted, and the plaintiff was 
awarded compensation for additional work of approximately $51 (35 euros), plus 
interest. The appeal of this decision was heard on June 2, 2009, at which time 
an additional claim by the plaintiff was also heard. A decision in respect of 
the hearing has been rendered which accepted NAPC's appeal of the initial 
claim and partially accepted the additional claim of the plaintiff, resulting 
in an award of approximately $16 (11 euros), plus interest.

Another one of the lawsuits seeking salaries in arrears of $188 (128 euros) 
plus interest was heard by the Supreme Court of Greece on November 6, 2007, at 
which date the appeal of the plaintiffs was denied for technical reasons due 
to improper service. A rehearing of this appeal was heard on September 21, 
2010 and the decision rendered declared once again the appeal inadmissible due 
to technical reasons. The remaining action, which is seeking salaries in 
arrears of approximately $643 (439 euros) plus interest, was scheduled to be 
heard before the Athens Court of First Instance on October 1, 2009, but has 
been postponed a total of four times, including the most recent postponement 
on February 22, 2013. No new date has been set yet for the postponed hearing.

The maximum aggregate interest payable under the claims noted above amounted 
to $17,988 (12,274 euros) as at December 31, 2013.

Management is of the view that it is improbable there will be a material 
financial impact to the Company as a result of these claims. Consequently, no 
provision has been recorded in these consolidated financial statements.

U.S. Litigation

A class and collective action complaint was filed against the Company in 
September 2012 in the United States District Court for the Western District of 
Pennsylvania. The complaint alleges failure to pay U.S. employees the correct 
amount of overtime pay required by the Fair Labor Standards Act (FLSA) and 
under the Pennsylvania Minimum Wage Act. In May 2013, the plaintiffs amended 
their complaint to add a Colorado wage-hour claim. In June 2013, the parties 
filed a joint stipulation for conditional certification of the FLSA collective 
action with certain current and former employees as the defined class. The 
notice to opt-in to the class was mailed to 1,204 current and former employees 
in September 2013. The opt-in period expired on November 15, 2013 and 359 
individuals opted in. A discovery plan was approved by the court that extends 
through June 23, 2014.

The Company has filed answers to each complaint in a timely manner and 
believes it has defenses to each claim. At this time no motion for final class 
certification as to the FLSA claim or motion for certification of the 
Pennsylvania or Colorado state law claims has been filed. Thus no FLSA, 
Pennsylvania or Colorado class has been certified. Plaintiffs have not alleged 
an amount of damages and at this time it is not possible to predict the amount 
of any potential recovery. Given the stage of the proceedings and the 
existence of available defenses, no provision has been recorded in the 
Company's financial statements regarding these claims, since the direction and 
financial consequences of the claims in the amended complaint cannot be 
determined at this time. The Company does not have insurance coverage for 
these claims.

19. SEGMENTED INFORMATION

The Company's activities are conducted in four geographical segments: Canada, 
the United States, Russia and Latin America. All activities are related to 
hydraulic fracturing, coiled tubing, cementing and other well completion 
services for the oil and natural gas industry.

The business segments presented reflect the Company's management structure and 
the way its management reviews business performance. The Company evaluates the 
performance of its operating segments primarily based on operating income, as 
defined below.
                             United           Latin                       
                     Canada  States  Russia America Corporate Consolidated
    (C$000s)            ($)     ($)     ($)     ($)       ($)          ($)
    Three Months Ended
    December 31, 2013                                                     
    Revenue         197,112 189,239  41,404  35,299         -      463,054
    Operating                                                       57,416
    income (loss)
    (1)              35,003  29,596   2,664   3,836  (13,583)
    Segmented                                                    1,869,931
    assets          706,405 828,527 149,946 185,053         -
    Capital                                                         45,227
    expenditures     13,602  22,683   4,918   4,024         -
    Goodwill          7,236   2,308     979       -         -       10,523
    Three Months Ended
    December 31, 2012                                                     
    Revenue         201,573 109,975  24,197  31,742         -      367,487
    Operating                                                       43,218
    income (loss)
    (1)              49,022   5,488   (254)   3,101  (14,139)
    Segmented                                                    1,524,821
    assets          707,663 568,665 126,564 121,929         -
    Capital                                                         55,694
    expenditures     22,216  26,351   2,454   4,673         -
    Goodwill          7,236   2,308     979       -         -       10,523
    Year Ended December 31,
    2013                                                                  
    Revenue         677,114 616,174 158,782 111,744         -    1,563,814
    Operating                                                      188,076
    income (loss)
    (1)             121,699 104,125  13,358   3,523  (54,629)
    Segmented                                                    1,869,931
    assets          706,405 828,527 149,946 185,053         -
    Capital                                                        170,517
    expenditures     75,875  62,297  13,368  18,977         -
    Goodwill          7,236   2,308     979       -         -       10,523
    Year Ended December 31,
    2012                                                                  
    Revenue         732,880 638,483 112,765 111,088         -    1,595,216
    Operating                                                      257,013
    income (loss)
    (1)             188,555 105,129   6,566   8,839  (52,076)
    Segmented                                                    1,524,821
    assets          707,663 568,665 126,564 121,929         -
    Capital                                                        279,017
    expenditures    124,902 138,328   6,173   9,614         -
    Goodwill          7,236   2,308     979       -         -       10,523
                                                               
    (1)      Operating income (loss) is defined as net income (loss) before
             depreciation, interest, foreign exchange gains or losses,
             expenses and gain related to business combinations, gains or
             losses on disposal of property, plant and equipment, and
             income taxes.
                                                                 
                                                                 
                             Three Months Ended Dec 31, Years Ended Dec 31,
                                2013               2012    2013        2012
    (C$000s)                                                               
    Net income (loss)         11,751             10,981  26,733      96,361
    Add back (deduct):                                                     
        Depreciation          31,410             23,634 110,006      90,381
        Interest              13,433              8,933  41,985      36,354
        Foreign exchange     (1,517)            (3,818)   1,183     (8,260)
        (gains) losses
        Business combination   2,474                  -   2,474           -
        (note 11)
        (Gain) loss on       (1,208)                170 (1,514)         802
        disposal of
        property, plant
        andequipment
        Income taxes           1,073              3,318   7,209      41,375
    Operating income          57,416             43,218 188,076     257,013
                                                                 

Operating income does not have a standardized meaning under IFRS and may not 
be comparable to similar measures used by other companies.

The following table sets forth consolidated revenue by service line:
                  Three Months Ended Dec 31, Years Ended Dec 31,
                     2013               2012      2013      2012
    (C$000s)                                                    
    Fracturing    422,306            331,590 1,422,872 1,436,279
    Coiled tubing  22,477             19,661    73,053   100,239
    Cementing      15,399             10,181    53,520    34,750
    Other           2,872              6,055    14,369    23,948
                  463,054            367,487 1,563,814 1,595,216
                                                        

The Company's customer base consists of approximately 180 oil and natural gas 
exploration and production companies, ranging from large multinational 
publicly traded companies to small private companies. Notwithstanding the 
Company's broad customer base, Calfrac had five significant customers that 
collectively accounted for approximately 46 percent of the Company's revenue 
for the year ended December 31, 2013 (year ended December 31, 2012 - five 
significant customers for approximately 39 percent) and, of such customers, 
one customer accounted for approximately 12 percent of the Company's revenue 
for the year ended December 31, 2013 (year ended December 31, 2012 - 13 
percent).

20. SEASONALITY OF OPERATIONS

The Company's Canadian business is seasonal. The lowest activity is typically 
experienced during the second quarter of the year when road weight 
restrictions are in place and access to wellsites in Canada is reduced.

21. DIVIDEND REINVESTMENT PLAN

The Company's Dividend Reinvestment Plan (DRIP) allows shareholders to direct 
cash dividends paid on all or a portion of their common shares to be 
reinvested in additional common shares that are issued at 95 percent of the 
volume-weighted average price of the common shares traded on the Toronto Stock 
Exchange during the last five trading days preceding the relevant dividend 
payment date.

A dividend of $0.25 per common share, totalling $11,575, was declared on 
December 5, 2013, to be paid on January 15, 2014. This amount has been accrued 
in the financial statements.

A dividend of $0.25 per common share was declared on September 17, 2013 and 
paid on October 15, 2013. Of the total dividend of $11,531, $4,282 was 
reinvested under the DRIP into 144,478 common shares of the Company.

A dividend of $0.25 per common share was declared on June 14, 2013 and paid on 
July 15, 2013. Of the total dividend of $11,472, $3,313 was reinvested under 
the DRIP into 111,594 common shares of the Company.

A dividend of $0.25 per common share was declared on February 26, 2013 and 
paid on April 15, 2013. Of the total dividend of $11,375, $3,108 was 
reinvested under the DRIP into 125,024 common shares of the Company.



SOURCE  Calfrac Well Services Ltd. 
Fernando Aguilar President & Chief Executive Officer Telephone: 403-266-6000 
Fax: 403-266-7381 
Michael (Mick) J. McNulty Chief Financial Officer Telephone: 403-266-6000 
Fax: 403-266-7381  Tom J. Medvedic Senior Vice President, Corporate 
Development Telephone: 403-266-6000 Fax: 403-266-7381  Ian Gillies 
Manager, Investor Relations 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/February2014/26/c7358.html 
CO: Calfrac Well Services Ltd.
ST: Alberta
NI: OIL ERN  
-0- Feb/26/2014 11:00 GMT
 
 
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