Calfrac Well Services (CFW) Q4 2024 earnings summary

Executive summary

• Achieved record safety performance with a TRIR of 0.92 in 2024, improving from 1.05 in 2023.

• Q4 2024 revenue was CAD 381.2 million, down 10% year-over-year, mainly due to lower North American activity and pricing, partially offset by growth in Argentina.

• Adjusted EBITDA for Q4 was CAD 34.5 million, a 45% year-over-year decline, reflecting reduced utilization and pricing in North America.

• Net loss from continuing operations was CAD 6.4 million, compared to net income of CAD 13.2 million in Q4 2023, impacted by asset write-offs and one-time depreciation charges.

• Focused on fleet modernization in North America and expansion in Argentina, deploying a second large fracturing fleet in Vaca Muerta ahead of schedule.

Financial highlights

• Q4 2024 revenue from continuing operations was CAD 381.2 million, down 10% year-over-year, mainly from lower U.S. activity and pricing.

• Adjusted EBITDA was CAD 34.5 million, a 45% year-over-year decline, impacted by lower utilization and unplanned downtime in Argentina.

• Net loss from continuing operations was CAD 6.4 million, compared to net income of CAD 13.2 million in Q4 2023.

• Q4 results included a CAD 12.7 million write-off of obsolete U.S. assets and a CAD 12.2 million one-time depreciation expense.

• Capital expenditures were CAD 33 million, with $21 million directed to Argentina expansion and North American fleet modernization.

Outlook and guidance

• North American activity expected to remain stable in 2025 despite political and consolidation uncertainties.

• Canadian market outlook optimistic due to recent infrastructure completions and new LNG/pipeline capacity.

• Tariffs on U.S. imports may impact costs; local supply chain alternatives and exemptions are being evaluated.

• Argentina expected to see strong utilization and growth, with the second fleet operational ahead of schedule.

• Board approved a CAD 135 million ($135 million) capital budget for 2025, with $50 million allocated to Argentina expansion.