Calfrac Well Services reports fourth-quarter loss on lower revenue

CALGARY — One of Canada’s largest oil and gas well completion companies is reporting a loss in the fourth quarter of 2019 as demand for its services remains at a low ebb.

Using preliminary figures, Calgary-based Calfrac Well Services Ltd. says it will register a loss before income taxes of between $69 million and $74 million for the three months ended Dec. 31 on revenue of between $310 million and $325 million.

In the same period of 2018, the company, which has operations in Western Canada, the United States, Argentina and Russia, reported a net loss of $3.5 million on revenue of $499 million.

Calfrac announced two weeks ago its 2020 capital budget of about $100 million would be used mainly to maintain equipment, not buy new gear. Its capital budget was about $140 million in 2019.

The company has cut staff and is marketing fewer of its pressure pumping crews — which provide hydraulic fracturing or “fracking” services needed to enhance production from oil and gas wells — because of the low-demand, low-price environment.

The Canadian Association of Oilwell Drilling Contractors predicted in November that just 4,900 oil and gas wells will be drilled in Canada this year, less than half the 11,226 wells drilled in 2014.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Government announces 79 new COVID-19 cases in Alberta, 2 in Red Deer

There are 79 new confirmed COVID-19 cases in Alberta, bringing the provincial… Continue reading

A message from the Advocate publisher

In good times and bad, The Red Deer Advocate has been here… Continue reading

Red Deer hospital bracing for COVID-19 impact

“We’re all worried about what’s coming, but I think we feel confident”

WATCH: COVID-19 doesn’t stop Red Deer Public Library from telling stories

Deb Isbister has been reading stories to children for more than 20… Continue reading

Alberta Health Services provides COVID-19 prevention tips

Alberta Health Services has a number of recommendations for people amid the… Continue reading

Alberta government website has latest COVID-19 statistics

Red Deer Advocate readers can stay up to date on the COVID-19… Continue reading

I am still facing that existential angst

Stir crazy. I looked the phrase up, just for fun. “Restless or… Continue reading

Red Deer College adapting and adjusting to COVID-19

I have worked in post-secondary education for more than 30 years, and… Continue reading

Families urge action to get Canadians home from cruise ship stuck off Panama

1,243 passengers and 586 crew on board and more tests are being done every day

Saskatchewan cabinet Minister deletes ‘pray and repent’ tweet over COVID-19

REGINA — A Saskatchewan cabinet minister who tweeted an Old Testament passage… Continue reading

Ontario allows youth to remain in care after passing cut-off age during pandemic

TORONTO — Youth in Ontario’s child welfare system who pass the cut-off… Continue reading

Canada could face legal trouble over refugee deportations: advocates

Deputy Prime Minister Freeland holding ‘urgent’ discussions with U.S. officials

Most Read