Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on CALFRAC WELL SERVICES LTD. We currently have 17 research reports from 1 professional analysts.
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Research reports on
CALFRAC WELL SERVICES LTD
CALFRAC WELL SERVICES LTD
Positive Trends for Canadian Pressure Pumping
31 Aug 16
WCSB pressure pumping supply and demand is poised to benefit from an increase in stages per well and proppant per well. We believe this could cause supply and demand to tighten more quickly than anticipated in an activity recovery. Higher service intensity has been particularly evident in the Montney and Duvernay, where stages per well have generated a 2012-1Q16 CAGR of 23% and 44%, respectively, and a proppant per well CAGR of 39% and 62%. Our investment bias is towards Trican given it is the largest pure play Canadian pressure pumper, with excess equipment and a discounted valuation relative to its peers.
29 Jul 16
Calfrac reported a 2Q16 EBITDAS loss of -$14 mm, which was in line with our forecast. Our 2016e EBITDAS of -$23 mm is unchanged, while we have lowered 2017e EBITDAS to $75 mm (prior: $81 mm). The Company has temporarily shuttered its North Dakota operation. We believe this will be positive for operating margins in the U.S. segment. Competitive bidding practices in Canada continue to be an impediment to margin improvement, but 3Q16e activity is expected to be high for the Company’s active fleet.
29 Apr 16
Calfrac’s 1Q16 EBITDAS was a loss of $11 mm, but after adjusting for $4 mm in restructuring costs it could be viewed as a loss of $7 mm, compared to our forecasted loss of $14 mm. Calfrac has reduced its 2016e capex to $40 mm from $50 mm. Our forecast suggests the first equity cure provision for the Company’s funded debt to EBITDAS covenant will need to be utilized in 2Q16e, but it could occur in 3Q16e. The Company has temporarily suspended its Eagle Ford operations, which refocuses Calfrac’s operations on the Rockies, Marcellus and Bakken.
RESULTS IN LINE WITH CONSENSUS. CAPEX REDUCED. ADDITIONAL EQUIPMENT PARKED AND RETIRED.
28 Apr 16
Impact: Neutral. We expect the stock to trade in line with the market today as results were largely in line with consensus expectations. Operationally, the Company retired ~74,000 hp and is temporarily suspending its South Texas operations, both of which we view positively.
19 Apr 17
We take a look at the supply and demand dynamics of the world’s largest diamonds. Less than 200 very large (>200 carat) gem quality diamonds have ever been found, yet 23 of these have been found in the past three years. This dramatic increase is being driven by a combination of the rapid increase in the number of billionaires and hence price and demand, combined with technological developments that have improved large diamond recovery and a certain amount of geological good luck.
Small Cap Breakfast
19 Apr 17
Global Ports Holding—Intention to float on Standard List. International cruise ports operator. Seeking $250m raise including $75m primary offer. Dorcaster—Schedule One Update. Admission now expected 3 May. RTO of Escape Hunt raising £14m at 135p Verditek— Intention to float on AIM. On Admission, the Company's subsidiaries will be involved in advanced solar photovoltaic, filtration and absorption technologies specialising in providing environmental services. Raising £3.5m. Admission in May. Eddie Stobart Logistics— Schedule 1. Admission expected 25 April but capital raising details TBC. ADES International Holding— Intends to join the Standard List in May raising up to $170m plus a vendor sale. Provider of offshore and onshore oil and gas drilling and production services in the Middle East and Africa. Admission expected in May. Tufton Oceanic Assets– Offer extended to 9 May to enable investors to complete further due diligence.