Xtreme Drilling Corp. Announces First Quarter 2017 Financial and Operating Results
(firmenpresse) - CALGARY, ALBERTA -- (Marketwired) -- 05/03/17 -- Xtreme Drilling Corp. ("Xtreme", the "Company") (TSX: XDC) announces its first quarter 2017 financial and operating results. It is anticipated that filing will take place on SEDAR of interim Consolidated Financial Statements as well as Management''s Discussion and Analysis for the quarter ended March 31, 2017, by May 5, 2017.
Q1 2017 Highlights
(amounts in Canadian dollars, unless otherwise noted)
Selected Quarterly Information from Continuing Operations
(unaudited)
Excerpt from Management''s Discussion and Analysis
for the three months ended March 31, 2017
OUTLOOK
The recent U.S. land rig count approached 850, after bottoming out at fewer than 400 rigs in May of 2016. The majority of rigs that have gone back to work in the U.S. are high spec AC electric rigs. The market share of AC rigs in the U.S. has increased from 40% in the third quarter of 2014 to 67% currently. In fact, Xtreme estimates that approximately 600 AC rigs have returned to work as compared to 725 that were working at the peak of the market in the third quarter of 2014. The supply of AC electric shale capable drilling rigs is quickly going back to work in the United States. In certain basins, this tightening of supply is beginning to result in pricing increases.
Xtreme''s 18 rig U.S. fleet and three rig Canadian fleet are 100% AC electric. The Company currently has eight of 10 XDR 500 rigs contracted in the United States with seven currently operating and the eighth expected to begin work in early June. In Canada, Xtreme has one of three XDR 200 rigs contracted and set to commence operation in June.
The pace of rig re-activations in the United States has put upward pressure on crew wages along with other re-activation expenses. In the second quarter, the Company will incur additional expenses related to the re-activation and mobilization of several rigs. This will reduce operating margins as not all of the cost increases are able to be passed through to the operator in the near term. However, if the current trend of re-activations continues then Xtreme anticipates that operating rates will begin to increase in the back half of 2017.
The process of reviewing options for the XDR 200 and 300 series rigs is progressing. The Company anticipates formal discussions with potential buyers or partners to commence in the near future with a target of closing any transaction in the second half of 2017. The goal in this process is to further focus Xtreme as a high/super spec US resource play drilling Company with ten XDR 500 rigs and three 850XE. Any proceeds from asset sales would provide additional liquidity and optionality to deploy in US resource plays.
In order to create value and deliver liquidity to shareholders the Company implemented a Substantial Issuer Bid to repurchase up to $25 million of Xtreme stock. The price range has been set between $2.40 and $2.80 per share and is open until June 1, 2017. The reduction in shares outstanding should add value for shareholders and the sale of assets provide additional liquidity and optionality.
Xtreme will exit 2017 with a fully optimized fleet of larger rigs, three 850XE rigs and 10 XDR 500 rigs, which should maintain high utilization levels in the current industry environment. This increased utilization and expected cash flow coupled with ample liquidity positions Xtreme to take advantage of future strategic opportunities.
Conference Call Details
Xtreme has scheduled a conference call to discuss results with investors, analysts, and stakeholders on Thursday, May 4, 2016, beginning promptly at 10:00 am MT (11:00 am CT, 12:00 am ET).
Matt Porter, President and Chief Executive Officer, will host the conference call.
Conference operator dial-in numbers
To participate in the conference call, please dial in as follows approximately ten minutes before the start time in your time zone.
+1 844-889-6858 (North America Toll-Free) or +1 661-378-9711 (International)
Webcast: Conference ID: 8397614
An audio replay of the call will be available until Thursday, May 11, 2017. To access the replay, call +1 (855) 859-2056 or +1 (404) 537-3406 and enter Conference ID 8397614.
Xtreme Drilling Corp.
Interim Consolidated Statements of Financial Position
(in thousands of Canadian dollars)
(unaudited)
Xtreme Drilling Corp.
Interim Consolidated Statements of (Loss) Income
For the three months ended March 31, 2017 and 2016
(in thousands of Canadian dollars, except share and per share data)
(unaudited)
Xtreme Drilling Corp.
Interim Consolidated Statements of Comprehensive (Loss) Income
For the three months ended March 31, 2017 and 2016
(in thousands of Canadian dollars)
(unaudited)
Xtreme Drilling Corp.
Interim Consolidated Statements of Changes in Equity
For the three months ended March 31, 2017 and 2016
(in thousands of Canadian dollars)
(unaudited)
Xtreme Drilling Corp.
Interim Consolidated Statements of Cash Flows
For the three months ended March 31, 2017 and 2016
(in thousands of Canadian dollars)
(unaudited)
Adjusted EBITDA from Continuing Operations
Adjusted EBITDA from Discontinued Operations
Adjusted EBITDA from Continuing and Discontinued Operations
Reader Advisory
This news release, or documents incorporated herein, contains forward-looking information ("FLI"). FLI is typically contained in statements with words such as "anticipate", "believe", "estimate", "expect", "plan", "schedule", "intend", "propose" or similar words suggesting future outcomes or an outlook. More particularly, this NEWS RELEASE contains FLI that may relate to contracting, marketing, financing, construction, modifications, deployment, operation, and utilization of drilling rigs in the Company''s current and future fleet. Although Xtreme believes expectations reflected in such FLI are reasonable, readers should not place undue reliance on them because Xtreme can give no assurance they will prove to be correct. There are many factors that could cause FLI not to be correct, including risks and uncertainties inherent in the Company''s business.
FLI is based on certain factors and assumptions including, but not limited to:
Although Xtreme considers the assumptions used to prepare this news release reasonable, based on information available to management as of May 3, 2017, ultimately the assumptions may prove to be incorrect.
FLI is also subject to certain factors, including risks and uncertainties, which could cause actual results to differ materially from management''s current expectations. These factors include, but are not limited to:
Management''s assumptions considered the following:
In preparing this news release, the following risk factors were considered:
FLI contained in this news release about prospective results of operations, financial position or cash provided by operating activities is based on assumptions about future events, including economic conditions and proposed courses of action, and on management''s assessment of relevant information currently available. Readers are cautioned such financial outlook information contained in this news release is not appropriate for purposes other than for which it is disclosed here. Readers should not place undue importance on FLI and should not rely on this information as of any other date. Except as required pursuant to applicable securities laws, Xtreme disclaims any intention, and assumes no obligation, to update publicly or revise FLI to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such FLI or otherwise.
About Xtreme
Xtreme Drilling Corp. ("XDC" on the Toronto Stock Exchange) designs, builds, and operates a fleet of high specification AC drilling rigs featuring leading-edge proprietary technology. Currently Xtreme operates one service line - Drilling Services (XDR) under contracts with oil and natural gas exploration and production companies and integrated oilfield service providers in Canada and the United States. For more information about the Company, please visit .
Contacts:
Xtreme Drilling Corp.
Matt Porter
President and Chief Executive Officer
+1 281 994 4600
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Datum: 03.05.2017 - 19:23 Uhr
Sprache: Deutsch
News-ID 1502282
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CALGARY, ALBERTA
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Kategorie:
Equipment
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