- Third quarter revenue increased by
$25.5 million or 77%, to$58.5 million in 2022 as compared to$33.0 million in the third quarter of 2021. Contract drilling revenue totalled$38.1 million in the third quarter of 2022, an increase of$18.6 million or 96%, compared to$19.5 million in the third quarter of 2021. Production services revenue was$20.4 million for the three months endedSeptember 30, 2022 , an increase of$6.7 million or 50%, as compared to$13.7 million in the same period of the prior year. In the third quarter of 2022, revenue was positively impacted by improved demand compared to the third quarter of 2021 as described below: - In
Canada , drilling rig utilization averaged 27% in the third quarter of 2022, compared to 18% in the third quarter of 2021. The increase in activity in the third quarter of 2022 was mainly attributable to the higher commodity prices resulting from the war inUkraine and the lifting of government restrictions globally which re-opened the economy, compared to the third quarter of 2021 when the COVID-19 pandemic reduced demand across the industry.The Canadian Association of Energy Contractors ("CAOEC") industry average utilization of 40%1 for the third quarter of 2022 represented an increase of 1,300 basis points ("bps") compared to the CAOEC industry average of 27% in the third quarter of 2021. Revenue per Operating Day averaged$29,283 in the third quarter of 2022, an increase of 39% compared to the same period of the prior year, mainly due to improved industry demand, upgrades made to the rigs, and inflationary pressures on operating costs, including higher CAOEC industry wages and fuel charges that are passed through to the customer; - In
the United States ("US"), drilling rig utilization averaged 45% in the third quarter of 2022, compared to 13% in the third quarter of 2021, with Operating Days improving from 98 days in 2021 to 333 days in 2022. Revenue per Operating Day for the third quarter of 2022 averagedUS$26,372 , a 51% increase compared toUS$17,419 in the same period of the prior year, mainly due to improved market conditions and changes in rig mix, as there was more activity with the Company's higher spec rigs which command higher day rates; and - In
Canada , service rig utilization of 45% in the third quarter of 2022 was higher than 41% in the same period of the prior year, mainly due to improved activity and an increase in production work resulting from higher commodity prices. Revenue per Service Hour averaged$975 in the third quarter of 2022 and was 34% higher than the third quarter of 2021, as a result of improved market conditions which led to higher hourly rates, due to inflationary pressures on operating costs, including higher CAOEC industry wages and fuel charges that are passed through to the customer. Higher pricing led to production services revenue totaling$20.4 million in the third quarter of 2022, an increase of$6.7 million or 50%, as compared to the same period in the prior year. - Administrative expenses increased by
$0.6 million or 15%, to$3.3 million in the third quarter of 2022, as compared to$2.7 million in the third quarter of 2021, due to reduced COVID-19 government subsidies received by the Company. - The Company generated net income of
$0.8 million in the third quarter of 2022 ($0.02 net income per basic common share) as compared to a net loss of$10.4 million in the same period in 2021 ($13.65 net loss per basic common share). Net income of$0.8 million in the third quarter of 2022 represented the first time since the first quarter of 2015, excluding the second quarter of 2022 which had net income due to a gain on debt forgiveness, where the Company was able to generate positive net income, as a result of improved commodity prices and demand. The change can mainly be attributed to a$9.8 million increase in Adjusted EBITDA, a$3.0 million decrease in finance costs due to the lower total debt balance, a$0.8 million decrease in depreciation expense due to certain assets being fully depreciated in the period, offset partially by a$1.4 million increase in income tax expense and a$0.8 million increase in stock based compensation expense. - Adjusted EBITDA of
$14.8 million in the third quarter of 2022 was$9.8 million , or 195%, higher compared to$5.0 million in the third quarter of 2021. Adjusted EBITDA was higher due to improved activity inCanada in all divisions and in the US, offset partially by$2.0 million lower COVID-19 related government subsidies received in 2022. - Third quarter additions to property and equipment of
$8.5 million in 2022 compared to$1.3 million added in the third quarter of 2021, consisting of$7.1 million of expansion capital and$1.4 million of maintenance capital, as the Company initiated its rig upgrade program in 2022. - On
August 2, 2022 , Western completed a share consolidation of the Company's issued and outstanding common shares (the "Consolidation") at a ratio of one post-consolidation common share for every 120 pre-consolidation common shares. The Consolidation reduced the number of issued and outstanding common shares of the Company from 4,060,663,214 common shares to 33,838,886 common shares, and proportionate adjustments were made to the Company's outstanding restricted share units and options.
1 Source: CAOEC, monthly Contractor Summary. |
- Revenue for the nine months ended
September 30, 2022 increased by$49.3 million or 55%, to$139.6 million as compared to$90.3 million for the nine months endedSeptember 30, 2021 . In the contract drilling segment, revenue totalled$86.3 million for the nine months endedSeptember 30, 2022 , an increase of$34.6 million or 67%, compared to$51.7 million in the same period in 2021. In the production services segment, revenue totalled$53.5 million for the nine months endedSeptember 30, 2022 , as compared to$39.1 million in the same period of the prior year, an increase of$14.4 million or 37%. Revenue was positively impacted by improved demand and pricing in 2022, compared to 2021 as described below: - In
Canada , drilling rig utilization averaged 23% for the nine months endedSeptember 30, 2022 , compared to 16% for the nine months endedSeptember 30, 2021 . The increase in activity in 2022 was mainly attributable to the higher commodity prices resulting from the war inUkraine , the COVID-19 vaccination rollouts and the resulting lifting of government restrictions which re-opened the economy, compared to 2021 when the COVID-19 pandemic reduced demand across the industry. The CAOEC industry average utilization of 34%2 for the nine months endedSeptember 30, 2022 represented an increase of 1,100 bps compared to the CAOEC industry average of 23% for the nine months endedSeptember 30, 2021 . Revenue per Operating Day averaged$28,002 for the nine months endedSeptember 30, 2022 , an increase of 33% compared to the same period of the prior year, mainly due to improved industry demand, upgrades made to the rigs, and inflationary pressures on operating costs, including higher CAOEC industry wages and fuel charges that are passed through to the customer; - In
the United States , drilling rig utilization averaged 31% for the nine months endedSeptember 30, 2022 , compared to 13% in the same period of 2021, with Operating Days improving from 287 days in 2021 to 683 days in 2022. Revenue per Operating Day for the nine months endedSeptember 30, 2022 averagedUS$24,421 , a 59% increase compared toUS$15,404 for the nine months endedSeptember 30, 2021 , mainly due to improved market conditions and changes in rig mix, as there was more activity with the Company's higher spec rigs which command higher day rates; and - In
Canada , service rig utilization of 42% for the nine months endedSeptember 30, 2022 was higher than 39% for the nine months endedSeptember 30, 2021 , as overall activity improved, but was constrained by field crew shortages across the industry and very cold weather in the first quarter of 2022. Revenue per Service Hour averaged$928 for the nine months endedSeptember 30, 2022 and was 29% higher than the same period of 2021, as a result of improved market conditions which led to higher hourly rates, due to inflationary pressures on operating costs, including higher CAOEC industry wages and fuel charges that are passed through to the customer. Higher pricing led to production services revenue totaling$53.5 million for the nine months endedSeptember 30, 2022 , an increase of$14.4 million or 37%, as compared to the same period in the prior year. - Administrative expenses increased by
$1.9 million or 25%, to$10.1 million for the nine months endedSeptember 30, 2022 , as compared to$8.2 million in the same period of 2021, due to lower receipts related to government subsidy programs, as both theCanada Emergency Wage Subsidy andCanada Emergency Rent Subsidy programs ended in 2021 and were replaced with smaller government subsidy programs. - Net income of
$32.4 million for the nine months endedSeptember 30, 2022 ($1.89 net income per basic common share) compared to a net loss of$29.8 million in the same period in 2021 ($39.17 net loss per basic common share). The change can mainly be attributed to a$49.4 million gain on debt forgiveness related to the Restructuring Transaction described below, a$13.6 million increase in Adjusted EBITDA, a$3.5 million decrease in finance costs, and a$2.1 million decrease in depreciation expense due to certain assets being fully depreciated in the period, offset partially by a$5.4 million increase in income tax expense. - Adjusted EBITDA of
$27.7 million for the nine months endedSeptember 30, 2022 was$13.6 million , or 96%, higher compared to$14.1 million in the same period of 2021. Adjusted EBITDA was higher due to improved activity and pricing inCanada and the US, offset partially by$8.3 million lower COVID-19 related government subsidies received and$0.8 million in one-time startup costs associated with reactivating certain rigs in the Company's US rig fleet. - Year to date 2022 additions to property and equipment of
$26.5 million compared to$4.8 million added in the same period of 2021, consisting of$22.1 million of expansion capital and$4.4 million of maintenance capital, as the Company initiated its rig upgrade program in 2022. - On
May 18, 2022 , Western completed a recapitalization and debt restructuring transaction to restructure a portion of its outstanding debt and raise new capital (the "Restructuring Transaction"). - As part of the Restructuring Transaction, on
May 18, 2022 , Western completed a rights offering to holders of its common shares onApril 19, 2022 to subscribe for additional common shares (the "Rights Offering"), resulting in the issuance of an aggregate of 16,407,229 (1,968,867,475 pre-consolidation) common shares in the capital of the Company at a price of$1.92 per share for aggregate gross proceeds of approximately$31.5 million . As the Rights Offering was fully subscribed, Western did not utilize a standby commitment wherebyG2S2 Capital Inc. ("G2S2"),Armco Alberta Inc. ("Armco") andMATCO Investments Ltd. ("Matco"), each a significant shareholder of the Company, agreed to acquire any common shares not subscribed for under the Rights Offering. $100.0 million of the principal amount owing toAlberta Investment Management Corporation ("AIMCo"), the lender under Western's second lien term loan facility (the "Second Lien Facility"), was converted into 16,666,667 (2,000,000,000 pre-consolidation) common shares at a conversion price of$6.00 per common share (the "Debt Exchange"), resulting in AIMCo holding approximately 49.7% of the common shares following closing of the Restructuring Transaction. In addition,$10.0 million of the proceeds from the Rights Offering was paid by Western to AIMCo to further reduce the principal amount outstanding under the Second Lien Facility, with the remaining$21.5 million of the proceeds, net of expenses of the Restructuring Transaction, used to upgrade the Company's rig fleet.- Concurrent with the Debt Exchange and the repayment of
$10.0 million of the principal amount of the Second Lien Facility, the Second Lien Facility was amended to provide for an extension of the maturity of the remaining principal amount of the Second Lien Facility fromJanuary 31, 2023 toMay 18, 2026 ; and an increase in the interest rate from 7.25% to 8.5%. - In addition, as part of the Restructuring Transaction, the senior secured credit facilities (the "Credit Facilities") of the Company were amended as of
May 18, 2022 , including amendments to (a) extend the maturity of the Credit Facilities fromJuly 1, 2022 toMay 18, 2025 , (b) reduce the amount available under the Credit Facilities from$60.0 million to$45.0 million , and (c) revise certain financial covenants.
Details on the Restructuring Transaction are contained in Western's short form prospectus dated
- On
June 13, 2022 , Western was the first drilling and well servicing contractor to become Climate Smart certified by the emissions reduction evaluation firmRadicle Group Inc. ("Radicle") aBMO Financial Group company. As part of Western's journey through Radicle's intensive Climate Smart greenhouse gas ("GHG") inventory training and certification process, the Company has taken on the challenge of documenting, reporting, and creating an action plan to reduce its climate footprint.
Using 2018 as its base year, Western completed four annual organizational GHG inventories, which account for direct operating emissions (Scope 1), indirect emissions from purchased electricity (Scope 2) and indirect emissions not counted in the previous scopes (Scope 3) to be Climate Smart certified through to 2021. As contract drilling is part of its core business, Western believes that annual meters drilled is a key operating metric and as an intensity metric, tonnes of CO2 per meter drilled (tCO2/m) can be used to measure the Company's environmental value. Through the certification process, Western identified a 30% reduction in CO2 intensity per meter drilled in 2021 compared to 2018 base year, due to regularly increasing operational productivity and the commitment to retrofitting alternative fuel technology on our rigs. The Company's 44% increase in meters drilled per day since 2018, fuel efficient rig design, and the continuous adoption of dual fuel technology are tangible ways that Western continues to help its customers meet their Scope 1 reduction targets. The Company remains committed to advancing its environmental, social, and governance reporting and providing solutions that are impactful to our stakeholders and the environment.
2 Source: CAOEC, monthly Contractor Summary. |
Selected Financial Information | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(stated in thousands, except share and per share amounts) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Highlights | 2022 | 2021 | Change | 2022 | 2021 | Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | 58,483 | 32,960 | 77 % | 139,552 | 90,315 | 55 % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA(1) | 14,799 | 5,009 | 195 % | 27,688 | 14,097 | 96 % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA as a percentage of revenue(1) | 25 % | 15 % | 67 % | 20 % | 16 % | 25 % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash flow from (used in) operating activities | 6,854 | (2,524) | (372 %) | 22,039 | 8,395 | 163 % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Additions to property and equipment | 8,470 | 1,331 | 536 % | 26,520 | 4,759 | 457 % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | 818 | (10,397) | (108 %) | 32,415 | (29,791) | (209 %) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
– basic and diluted net income (loss) per | 0.02 | (13.65) | (100 %) | 1.89 | (39.17) | (105 %) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted average number of shares(2) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
– basic | 33,839,658 | 761,664 | 4,343 % | 17,120,283 | 760,520 | 2,151 % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
– diluted | 33,839,658 | 761,664 | 4,343 % | 17,120,936 | 760,520 | 2,151 % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding common shares as at period end | 33,841,318 | 764,002 | 4,329 % | 33,841,318 | 764,002 | 4,329 % |
(1) | See "Non-IFRS measures" included in this press release. |
(2) | On |
Three months ended September 30 | Nine months ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating Highlights(3) | 2022 | 2021 Change | 2022 | 2021 | Change | |||||||||||||||||||||||||||||||||||||||||||||||||
Contract Drilling | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Canadian Operations: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contract drilling rig fleet: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
– Average active rig count | 9.9 | 9.0 | 10 % | 8.5 | 8.0 | 6 % | ||||||||||||||||||||||||||||||||||||||||||||||||
– End of period | 37(5) | 49 | (24 %) | 37(5) | 49 | (24 %) | ||||||||||||||||||||||||||||||||||||||||||||||||
Operating Days | 909 | 824 | 10 % | 2,312 | 2,185 | 6 % | ||||||||||||||||||||||||||||||||||||||||||||||||
Revenue per Operating Day | 29,283 | 20,999 | 39 % | 28,002 | 21,035 | 33 % | ||||||||||||||||||||||||||||||||||||||||||||||||
Drilling rig utilization | 27 % | 18 % | 50 % | 23 % | 16 % | 44 % | ||||||||||||||||||||||||||||||||||||||||||||||||
CAOEC industry average utilization – Operating Days(4) | 40 % | 27 % | 48 % | 34 % | 23 % | 48 % | ||||||||||||||||||||||||||||||||||||||||||||||||
United States Operations: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contract drilling rig fleet: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
– Average active rig count | 3.6 | 1.1 | 227 % | 2.5 | 1.1 | 127 % | ||||||||||||||||||||||||||||||||||||||||||||||||
– End of period | 8 | 8 | - | 8 | 8 | - | ||||||||||||||||||||||||||||||||||||||||||||||||
Operating Days | 333 | 98 | 240 % | 683 | 287 | 138 % | ||||||||||||||||||||||||||||||||||||||||||||||||
Revenue per Operating Day (US$) | 26,372 | 17,419 | 51 % | 24,421 | 15,404 | 59 % | ||||||||||||||||||||||||||||||||||||||||||||||||
Drilling rig utilization | 45 % | 13 % | 246 % | 31 % | 13 % | 138 % | ||||||||||||||||||||||||||||||||||||||||||||||||
Production Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Well servicing rig fleet: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
– Average active rig count | 28.4 | 25.6 | 11 % | 26.4 | 24.7 | 7 % | ||||||||||||||||||||||||||||||||||||||||||||||||
– End of period | 63 | 63 | - | 63 | 63 | - | ||||||||||||||||||||||||||||||||||||||||||||||||
Service Hours | 18,492 | 16,685 | 11 % | 51,635 | 48,277 | 7 % | ||||||||||||||||||||||||||||||||||||||||||||||||
Revenue per Service Hour | 975 | 727 | 34 % | 928 | 717 | 29 % | ||||||||||||||||||||||||||||||||||||||||||||||||
Service rig utilization | 45 % | 41 % | 10 % | 42 % | 39 % | 8 % |
(3) See "Defined Terms" included in this press release. |
(4) Source: The CAOEC monthly Contractor Summary. The CAOEC industry average is based on Operating Days divided by total available drilling days. |
(5) During the first quarter of 2022, 12 drilling rigs were deregistered with the CAOEC. |
Financial Position at (stated in thousands) | ||||
Working capital | 21,439 | 2,224 | 607 | |
Total assets | 475,651 | 456,003 | 460,872 | |
Long term debt | 127,639 | 226,884 | 228,263 |
Western is an energy services company that provides contract drilling services in
Contract Drilling Services
Western operates a fleet of 45 drilling rigs specifically suited for drilling complex horizontal wells across
Production Services
Production Services provides well servicing and oilfield equipment rentals in
Western's contract drilling and well servicing rig fleets comprise the following:
Nine months ended | |||||||||||||||
Drilling rigs | Well servicing rigs | ||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||
Rig class(1) | | US | Total | Canada | US | Total | Mast type | Total | Total | ||||||
Cardium | 11 | 2 | 13 | 23 | 2 | 25 | Single | 30 | 33 | ||||||
19 | - | 19 | 19 | - | 19 | Double | 25 | 25 | |||||||
7 | 6 | 13 | 7 | 6 | 13 | Slant | 8 | 8 | |||||||
Total | 37 | 8 | 45 | 49 | 8 | 57 | 63 | 66 |
(1) See "Defined Terms" included in this press release. |
Crude oil and natural gas prices impact the cash flow of Western's customers, which in turn impacts the demand for Western's services. The following table summarizes average crude oil and natural gas prices, as well as average foreign exchange rates, for the three and nine months ended
Three months ended | Nine months ended | ||||||||||||||||||||||||||||
2022 | 2021 | Change | 2022 | 2021 | Change | ||||||||||||||||||||||||
Average crude oil and natural gas prices(1)(2) | |||||||||||||||||||||||||||||
Crude Oil | |||||||||||||||||||||||||||||
West Texas Intermediate (US$/bbl) | 91.56 | 70.56 | 30 % | 98.09 | 64.82 | 51 % | |||||||||||||||||||||||
Western Canadian Select (CDN$/bbl) | 93.53 | 71.77 | 30 % | 105.55 | 65.40 | 61 % | |||||||||||||||||||||||
Natural Gas | |||||||||||||||||||||||||||||
30 day Spot AECO (CDN$/mcf) | 4.62 | 3.72 | 24 % | 5.70 | 3.39 | 68 % | |||||||||||||||||||||||
Average foreign exchange rates(2) | |||||||||||||||||||||||||||||
US dollar to Canadian dollar | 1.31 | 1.26 | 4 % | 1.28 | 1.25 | 2 % | |||||||||||||||||||||||
(1) See "Abbreviations" included in this press release. (2) Source: Sproule |
West Texas Intermediate on average improved by 30% and 51% for the three and nine months ended
In
3 Source: CAOEC Contractor Summary as at |
4 Source: CAOEC Fleet List as at 5 Source: Baker Hughes Company, 2022 Rig Count monthly press releases. 6 Source: CAOEC, monthly Contractor Summary.
|
In 2022, crude oil prices reached their highest levels since 2014, due to recovering demand as governments eased COVID-19 restrictions, the initiation of the Russian invasion of
Due to improved activity in 2022 and the closing of the Restructuring Transaction, Western's board of directors has approved an updated capital budget for 2022 of
As at
Oilfield service activity in
Western uses certain financial measures in this press release which do not have any standardized meaning as prescribed by International Financial Reporting Standards ("IFRS"). These measures and ratios, which are derived from information reported in the condensed consolidated financial statements, may not be comparable to similar measures presented by other reporting issuers. These measures and ratios have been described and presented in this press release in order to provide shareholders and potential investors with additional information regarding the Company. The non-IFRS measure and ratio used in this press release is identified and defined as follows:
Adjusted EBITDA
Earnings before interest and finance costs, taxes, depreciation and amortization, other non-cash items and one-time gains and losses ("Adjusted EBITDA") is a useful supplemental measure as it is used by management and other stakeholders, including current and potential investors, to analyze the Company's principal business activities. Adjusted EBITDA provides an indication of the results generated by the Company's principal operating segments, which assists management in monitoring current and forecasting future operations, as certain non-core items such as interest and finance costs, taxes, depreciation and amortization, and other non-cash items and one-time gains and losses are removed. The closest IFRS measure would be net income (loss) for consolidated results.
Adjusted EBITDA as a percentage of revenue is a non-IFRS financial ratio which is calculated by dividing Adjusted EBITDA by revenue for the relevant period. Adjusted EBITDA as a percentage of revenue is a useful supplemental measure as it is used by management and other stakeholders, including current and potential investors, to analyze the profitability of the Company's principal operating segments.
The following table provides a reconciliation of net income (loss), as disclosed in the condensed consolidated statements of operations and comprehensive income, to Adjusted EBITDA:
Three months ended | Nine months ended | ||||||||||
(stated in thousands) | 2022 | 2021 | 2022 | 2021 | |||||||
Net income (loss) | 818 | (10,397) | 32,415 | (29,791) | |||||||
Income tax expense (recovery) | 1,013 | (357) | 3,035 | (2,419) | |||||||
Income (loss) before income taxes | 1,831 | (10,754) | 35,450 | (32,210) | |||||||
Add (deduct): | |||||||||||
Gain on debt forgiveness | - | - | (49,357) | - | |||||||
Depreciation | 9,744 | 10,475 | 29,652 | 31,761 | |||||||
Stock based compensation | 795 | 39 | 1,135 | 219 | |||||||
Finance costs | 2,946 | 5,851 | 11,428 | 14,944 | |||||||
Other items | (517) | (602) | (620) | (617) | |||||||
Adjusted EBITDA | 14,799 | 5,009 | 27,688 | 14,097 | |||||||
Defined Terms:
Average active rig count (contract drilling): Calculated as drilling rig utilization multiplied by the average number of drilling rigs in the Company's fleet for the period.
Average active rig count (production services): Calculated as service rig utilization multiplied by the average number of service rigs in the Company's fleet for the period.
Drilling rig utilization: Calculated based on Operating Days divided by total available days.
Operating Days: Defined as contract drilling days, calculated on a spud to rig release basis.
Service Hours: Defined as well servicing hours completed.
Service rig utilization: Calculated as total Service Hours divided by 217 hours per month per rig multiplied by the average rig count for the period as defined by the CAOEC industry standard.
Contract Drilling Rig Classifications:
Cardium class rig: Defined as any contract drilling rig which has a total hookload less than or equal to 399,999 lbs (or 177,999 daN).
Abbreviations:
- Barrel ("bbl");
- Basis point ("bps"): A 1% change equals 100 basis points and a 0.01% change is equal to one basis point;
Canadian Association of Energy Contractors ("CAOEC");- DecaNewton ("daN");
- International Financial Reporting Standards ("IFRS");
- Pounds ("lbs");
- Thousand cubic feet ("mcf"); and
Western Canadian Sedimentary Basin ("WCSB").
This press release contains certain forward-looking statements and forward-looking information (collectively, "forward-looking information") within the meaning of applicable Canadian securities laws, as well as other information based on Western's current expectations, estimates, projections and assumptions based on information available as of the date hereof. All information and statements contained herein that are not clearly historical in nature constitute forward-looking information, and words and phrases such as "may", "will", "should", "could", "expect", "intend", "anticipate", "believe", "estimate", "plan", "predict", "potential", "continue", or the negative of these terms or other comparable terminology are generally intended to identify forward-looking information. Such information represents the Company's internal projections, estimates or beliefs concerning, among other things, an outlook on the estimated amounts and timing of additions to property and equipment, anticipated future debt levels and revenues or other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. This forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information.
In particular, forward-looking information in this press release includes, but is not limited to, statements relating to: commodity pricing; the future demand for the Company's services and equipment, in particular, the expectation of improved activity levels in 2022 as a result of increased capital spending by Western's customers; the potential continued impact of the COVID-19 pandemic on Western's customers, operations, business and global economic activity; the potential impact of the current conflict in
The material assumptions that could cause results or events to differ from current expectations reflected in the forward-looking information in this press release include, but are not limited to: demand levels and pricing for oilfield services; demand for crude oil and natural gas and the price and volatility of crude oil and natural gas; pressures on commodity pricing; the continued business relationships between the Company and its significant customers; crude oil transport, pipeline and LNG export facility approval and development; that all required regulatory and environmental approvals can be obtained on the necessary terms and in a timely manner, as required by the Company; liquidity and the Company's ability to finance its operations; the effectiveness of the Company's cost structure and capital budget; the effects of seasonal and weather conditions on operations and facilities; the competitive environment to which the various business segments are, or may be, exposed in all aspects of their business and the Company's competitive position therein; the ability of the Company's various business segments to access equipment (including spare parts and new technologies); global economic conditions and the accuracy of the Company's market outlook expectations for 2022 and in the future; the impact, direct and indirect, of the COVID-19 pandemic and geo-political events, including the war in
Although Western believes that the expectations and assumptions on which such forward-looking information is based on are reasonable, undue reliance should not be placed on the forward-looking information as Western cannot give any assurance that such will prove to be correct. By its nature, forward-looking information is subject to inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the ongoing impact of the COVID-19 pandemic and geo-political events, including the war in
The forward-looking statements and information contained in this news release are made as of the date hereof and Western does not undertake any obligation to update publicly or revise any forward-looking statements and information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws. Any forward-looking statements contained herein are expressly qualified by this cautionary statement.
SOURCE
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