Xtreme Drilling and Coil Services Reports Third Quarter 2015 Financial Results
/EINPresswire.com/ -- CALGARY, ALBERTA -- (Marketwired) -- 11/04/15 -- (TSX: XDC) - Xtreme Drilling and Coil Services Corp. ("Xtreme", the "Company") announce third quarter 2015 financial and operating results. It is anticipated that filing will take place on SEDAR of unaudited Consolidated Financial Statements and Notes to the unaudited Consolidated Financial Statements as well as Management's Discussion and Analysis for the three months ended September 30, 2015, by Thursday November 5, 2015.
Q3 2015 Highlights
(amounts in thousands of Canadian dollars, unless otherwise noted)
-- Adjusted EBITDA of $15.4 million in the third quarter of 2015 on total
revenue of $52.2 million, an increase from $15.0 million on $53.7
million in the prior quarter. The increase in adjusted EBITDA as
compared to the second quarter was driven by improved operating margins
in the coil services segment, decreased general and administrative
expenses as well as a stronger US Dollar.
-- For the third quarter, the Drilling Segment achieved utilization of 55%
on 1,069 operating days. This was comprised of a 55% utilization rate
for the 16 rig US XDR fleet, 27% for the three rig Canadian XDR fleet
and 97% for the two rigs operating in India. The lower utilization in
the Drilling Segment for the quarter was driven by 77, or 9%, fewer
operating days in the US, offset by 74 more operating days in Canada as
compared to the second quarter.
-- For the third quarter, the Coil Services Segment achieved utilization of
76% for the active units on 390 operating days. This was comprised of a
96% utilization rate for the two XSR units in Saudi Arabia and a 64%
utilization rate for the five actively marketed XSR units in the US.
-- The Drilling Segment (which includes US, Canada and India) operating
profit decreased to $10.9 million in the third quarter of 2015 as
compared to $13.6 million in the prior quarter. The decrease for the
quarter was attributable to $3.8 million less in total revenue for the
segment. Overall operating margin decreased to 36.6% as compared to
40.5% in the second quarter of 2015. The decreased operating margin is
attributable to fixed field support costs that did not decrease at the
same level as revenue.
-- The Coil Services Segment (which includes US and Saudi Arabia) operating
profit was $8.9 million in the third quarter of 2015 as compared to $6.8
million in the prior quarter. This was driven primarily by $1.7 million
higher revenue in the US operations on 13 additional operating days as
well as higher average revenue per day. Overall the Coil Services
Segment achieved an operating margin of 39.5% as compared to 33.6% for
the prior quarter on increased revenue and greater cost controls.
-- The Company finished the third quarter of 2015 with $110.0 million in
total debt and $93.3 million in net debt (total debt less cash). The
funded debt to EBITDA ratio was 1.6x and the net debt to EBITDA ratio
was 1.3x. At quarter end, the Company had significant liquidity with
approximately $66 million available on the revolving credit facility and
$29.4 million in working capital which includes $16.7 million of cash.
On a US Dollar basis, in which the Company primarily borrows, the funded
debt decreased $18.0 million USD during the quarter to an ending balance
of $82.5 million USD and net debt was $72.0 million on a US Dollar
basis.
-- Total capital expenditures were $1.5 million during the third quarter of
2015 and $17.2 million on a year to date basis. The majority of this was
spent on the completion of a new XSR coiled tubing unit and continued
work on the final XSR unit in this build program. The Company
anticipates delivering the final new build XSR unit in November. This
will bring the total to four new units from the current XSR build
program. Currently the 2015 capital budget stands at $22 million which
includes all sustaining, critical spare and upgrade capital for the
existing fleet as well as the requirements to complete the three XSR new
build units delivered in 2015. Xtreme anticipates that 2015 capital
expenditures will be funded exclusively through operating cash flow.
-- During the third quarter the Company recognized $4.8 million in early
termination revenue on take or pay contracts. Year to date Xtreme has
recognized $11.0 million in early termination revenue. The Company
anticipates recording approximately $1.6 million in the fourth quarter
of 2015. At quarter end, the Company had approximately 1,560 days
contracted under term contracts across the fleet.
-- The Company reviews the carrying value of its long-lived assets at each
reporting period for indicators of impairment. During the period ended
September 30, 2015, the decline in oil and natural gas prices resulted
in significant decreases in industry activity, adversely impacting
current and expected future business and estimated recoverable amounts.
As a result of the indicators, the Company performed a comprehensive
assessment of the carrying values of property and equipment. The
recoverable amount of each cash generating unit was determined using a
value in use calculation based on cash flow projections using multi-year
discounted cash flow projections. In its assessment, the Company
determined that property and equipment was impaired by $44,000.
(Stated in thousands of Canadian dollars, except per share, utilization, and rig amounts)
(unaudited)
Mar 31, Dec 31,
Three months ended Sep 30, 2015 Jun 30, 2015 2015 2014
----------------------------------------------------------------------------
Revenue 52,238 53,668 70,015 69,459
Adjusted EBITDA (1) 15,444 15,036 20,761 18,617
Adjusted EBITDA as a
percentage of Revenue 29 28 30 27
Adjusted EBITDA per share
(1) - basic ($) 0.18 0.18 0.25 0.23
Net (loss) income (48,853) (776) 2,755 (2,258)
Net (loss) income per
share - basic ($) (0.59) (0.01) 0.03 (0.03)
Capital assets 445,591 473,030 488,300 452,974
Total assets 528,120 567,050 592,194 547,958
Net debt (2) 93,489 112,133 126,869 115,520
----------------------------------------------------------------------------
Operating days (1) 1,459 1,451 1,823 2,053
Utilization (percentage) -
XDR 55 56 73 86
Utilization (percentage) -
XSR 60 61 71 74
Utilization (percentage) -
Total 56 57 73 83
Weighted average rigs in
service 30.0 30.0 30.0 28.0
Total rigs, end of quarter 30 30 30 29
----------------------------------------------------------------------------
Mar 31, Dec 31,
Sep 30, 2014 Jun 30, 2014 2014 2013
----------------------------------------------------------------------------
Revenue 65,980 62,299 69,703 62,681
Adjusted EBITDA (1) 18,299 19,421 20,635 19,734
Adjusted EBITDA as a
percentage of Revenue 28 31 30 31
Adjusted EBITDA per share
(1) - basic ($) 0.22 0.24 0.25 0.24
Net income (loss) 853 (902) 2,896 (7,441)
Net income(loss) per share
- basic ($) 0.01 (0.01) 0.04 (0.09)
Capital assets 443,304 413,296 423,204 412,523
Total assets 536,713 513,651 532,116 515,720
Net debt (2) 116,768 105,358 125,389 116,856
----------------------------------------------------------------------------
Operating days (1) 2,173 1,779 2,130 2,141
Utilization (percentage) -
XDR 92 75 90 93
Utilization (percentage) -
XSR 73 68 78 76
Utilization (percentage) -
Total 88 73 88 90
Weighted average rigs in
service 28.0 28.0 28.0 28.0
Total rigs, end of quarter 28 28 28 28
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(1) See Non-GAAP measures
(2) Total debt less cash and cash equivalents
Excerpt from Management's Discussion and Analysis for the three and nine months ended September 30, 2015
OUTLOOK
The oilfield service market continued to remain challenged in the third quarter as the U.S. active rig count fell to 775 rigs and is now down by 1,154 units, or 60%, from this time last year. As mentioned by others in the industry, current pricing is down by 25% to 35% in the U.S. drilling market from this time twelve months ago. Along with the decrease in pricing there remains very little visibility into 2016 customer activity. Many customers are currently finalizing borrowing bases and attempting to forecast liquidity for next year. The combination of depressed oil and gas prices along with efficiency gains achieved through tier 1 drilling rigs should place a ceiling on the number of rigs required in 2016. For this reason Xtreme management continues to believe that North American drilling will likely not see a material increase in utilization until late 2016 with pricing likely to remain flat into 2017.
Xtreme currently has 10 of 21 XDR drilling rigs earning revenue in the United States, Canada and India with an 11th rig scheduled to commence operations in the next week. This level of activity, while down from last year, is better than the industry average. Although utilization and revenue have decreased, Xtreme's XDR operations management team has done an excellent job reducing costs and building efficiencies in the business. Actual operating margins in the XDR segment through three quarters of 2015 are similar to the same period in 2014. The Company anticipates that as activity levels approach a trough over the next couple of quarters that XDR operating margins will slightly decrease with activity and pricing.
While the outlook for domestic drilling is muted the resiliency of the US XSR business has been very encouraging. This division has exceeded forecasted revenue and operating margin year to date and the remainder of the fourth quarter looks to continue that trend. The market appears to be validating Xtreme's technological advantage over other coiled tubing providers. This is evidenced by the fact that the Company has increased the customer base by 100% over the past 12 months as there are now 62 E&P companies that the Company has active master service agreements with in South and West Texas. When operators begin to complete the large inventory of drilled but uncompleted wells Xtreme should be strongly positioned to increase activity levels and gain market share.
The US XSR division recently completed several technical achievements that created significant value for the respective customer and continued to add to the Company's impressive track record. In the third quarter the Company milled out plugs in a horizontal section of 12,450 feet with 2 5/8" coiled tubing from a vertical kick off point of 6,500 feet. In addition, the Company recently milled 52 plugs without a short trip utilizing a single bottom hole assembly. In total Xtreme has performed more than 75 million round trip running feet with 2 5/8" coiled tubing since commencing operations in Texas in 2012. Over this period the trend in most major resource plays has been to increase the length of the horizontal section in order to increase well productivity. In response to customer demand Xtreme has continued to improve its industry leading technology and recently introduced a trailer configuration that is able to transport 27,000 feet of 2 5/8" coiled tubing. Unlike other large coil providers Xtreme has the ability to deploy to these depths due to its technologically advanced A/C injector and proprietary electronic logic control system. In the fourth quarter the Company anticipates performing work on a well that is in excess of 24,000 feet and will represent the longest length reached in Xtreme's history.
In the third quarter the Company continued to aggressively strengthen the balance sheet by paying down $18 million USD of debt and finished with $83.5 million USD of funded debt and $72 million USD of net debt. The funded debt to EBITDA ratio was 1.6x at quarter end well below the 2.75 threshold in the Company's credit facility. This is significantly better than many of Xtreme's publicly traded oilfield service peers. Management will continue to emphasize de-leveraging and maintaining optimal liquidity through the current industry downturn.
Conference Call Details
The Company expects to announce third quarter 2015 financial and operating results after market close on Wednesday, November 4, 2015 with a follow-up conference call planned for Thursday, November 5, 2015 at 9:00 am MDT, 10:00 am CT. Tom Wood, Chief Executive Officer, will host the conference call with participation from Matt Porter, President and Chief Financial Officer, and will answer questions from analysts and investors. To participate in the conference call, please dial in as follows approximately ten minutes before the start time in your time zone.
+1 800-396-7098 (North America Toll-Free) or +1 416-340-8530 (Alternate)
Webcast link: http://www.gowebcasting.com/6941
An audio replay of the call will be available until Thursday, November 12, 2015. To access the replay, call +1 800-408-3053 or +1 905-694-9451 and enter pass code 5530799.
Xtreme Drilling and Coil Services Corp.
Interim Consolidated Statements of Financial Position
(in thousands of Canadian dollars)
(unaudited)
Sep 30, 2015 Dec 31, 2014
--------------------------------
--------------------------------
Assets
Current assets
Cash and cash equivalents 16,652 13,102
Accounts receivable 35,625 51,125
Other receivables 203 255
Prepaid expenses and other 1,121 1,998
Inventory 9,707 11,405
--------------------------------
63,308 77,885
Non-current assets
Deferred tax asset 15,835 13,486
Property and equipment 445,591 452,974
Intangible assets 3,386 3,613
--------------------------------
Total Assets 528,120 547,958
--------------------------------
--------------------------------
Liabilities and Equity
Current liabilities
Accounts payable and accrued liabilities 29,456 39,738
Income tax payable 4,358 1,365
Current portion of provision - 1,740
--------------------------------
33,814 42,843
Long-term liabilities
Long-term debt 110,041 128,622
--------------------------------
Total Liabilities 143,855 171,465
--------------------------------
--------------------------------
Shareholders' equity
Share capital 331,075 330,964
Share option reserve 17,011 14,803
Accumulated deficit (59,103) (12,487)
Foreign currency translation reserve 95,282 43,213
--------------------------------
Total Shareholders' Equity 384,265 376,493
--------------------------------
Total Liabilities and Shareholders' Equity 528,120 547,958
--------------------------------
--------------------------------
Xtreme Drilling and Coil Services Corp.
Interim Consolidated Statements of (Loss) Income
For the three and nine months ended September 30, 2015 and 2014
(in thousands of Canadian dollars, except share and per share data)
(unaudited)
Three months ended Nine months ended
-------------------------------------------------
-------------------------------------------------
Sep 30, Sep 30, Sep 30, Sep 30,
2015 2014 2015 2014
-------------------------------------------------
Revenue 52,238 65,980 175,921 197,982
-------------------------------------------------
Expenses
Operating expenses 32,462 44,102 111,024 127,552
General and administrative
expenses 4,332 3,579 13,656 12,075
Depreciation of property
and equipment 15,789 11,524 44,469 38,082
Amortization of
intangibles 76 76 228 228
Impairment of property and
equipment 43,742 - 43,742 -
Stock-based compensation 958 799 2,232 2,186
Foreign exchange loss 217 124 362 199
(Gain) loss on disposal of
equipment (159) 421 (277) 4,324
Other (income) expenses (5) 6 (3) 18
Interest expense 1,205 1,052 3,466 3,344
-------------------------------------------------
(Loss) Income before tax
for the period (46,379) 4,297 (42,978) 9,974
-------------------------------------------------
Tax expense (benefit)
Current 2,746 2,402 5,723 4,905
Deferred (530) 1,042 (2,085) 2,222
-------------------------------------------------
Total tax expense 2,216 3,444 3,638 7,127
-------------------------------------------------
Net (loss) income for the
period (48,595) 853 (46,616) 2,847
-------------------------------------------------
-------------------------------------------------
Net (loss) income per
common share
- basic (0.59) 0.01 (0.57) 0.03
- diluted (0.59) 0.01 (0.57) 0.03
Weighted average number of
common shares
- basic 81,833,645 81,755,211 81,807,571 81,513,030
- diluted 81,987,985 82,627,732 81,971,167 82,443,110
Xtreme Drilling and Coil Services Corp.
Interim Consolidated Statements of Comprehensive (Loss) Income
For the three and nine months ended September 30, 2015 and 2014
(in thousands of Canadian dollars)
(unaudited)
Three months ended Nine months ended
----------------------------------------------
----------------------------------------------
Sep 30, Sep 30, Sep 30, Sep 30,
2015 2014 2015 2014
----------------------------------------------
Net (loss) income for the
period (48,595) 853 (46,616) 2,847
Other comprehensive income
Items that may be
subsequently reclassified to
profit or loss
Unrealized gain on
translating financial
statements of foreign
operations 25,380 15,527 52,069 16,098
Dividends declared to non-
controlling interest partner - - - (1,332)
----------------------------------------------
Comprehensive (loss) income
for the period (23,215) 16,380 5,453 17,613
----------------------------------------------
----------------------------------------------
Xtreme Drilling and Coil Services Corp.
Interim Consolidated Statements of Changes in Equity
For the nine months ended September 30, 2015 and 2014
(in thousands of Canadian dollars)
(unaudited)
Equity attributable to the owners of the parent
-----------------------------------------------
Foreign
Share currency
Share option Accumulated translation
capital reserve deficit reserve
-----------------------------------------------
-----------------------------------------------
Balance at Jan 1, 2014 328,416 12,419 (12,697) 15,143
-----------------------------------------------
-----------------------------------------------
Net income for the year - - 2,847 -
Other comprehensive income - - - -
Currency translation
differences - - - 16,098
Dividends declared to
noncontrolling interest
partner - - - -
Settlement for the
purchase of non-
controlling interest
partner - - (379) -
-----------------------------------------------
Total comprehensive income - - 2,468 16,098
-----------------------------------------------
Employee share option
scheme:
Value of employee services 889 2,198 - -
Proceeds from shares
issued 1,864 (889) - -
-----------------------------------------------
Total transactions with
owners 2,753 1,309 - -
-----------------------------------------------
Balance at Sep 30, 2014 331,169 13,728 (10,229) 31,241
-----------------------------------------------
-----------------------------------------------
Balance at Jan 1, 2015 330,964 14,803 (12,487) 43,213
-----------------------------------------------
-----------------------------------------------
Net (loss) income for the
year - - (46,616) -
Other comprehensive income
Currency translation
differences - - - 52,069
-----------------------------------------------
Total comprehensive income - - (46,874) 52,069
-----------------------------------------------
Employee share option
scheme:
Value of employee services 33 2,241 - -
Proceeds from shares
issued 78 (33) - -
-----------------------------------------------
Total transactions with
owners 111 2,208 - -
-----------------------------------------------
Balance at Sep 30, 2015 331,075 17,011 (59,103) 95,282
-----------------------------------------------
-----------------------------------------------
Xtreme Drilling and Coil Services Corp.
Interim Consolidated Statements of Changes in Equity
For the nine months ended September 30, 2015 and 2014
(in thousands of Canadian dollars)
(unaudited)
Equity
attributable
to the owners
of the parent
----------------
Total
Non-controlling Shareholders'
Total interest Equity
------------------------------------------------
------------------------------------------------
Balance at Jan 1, 2014 343,281 953 344,234
------------------------------------------------
------------------------------------------------
Net income for the year 2,847 - 2,847
Other comprehensive income - - -
Currency translation
differences 16,098 - 16,098
Dividends declared to
noncontrolling interest
partner - (1,332) (1,332)
Settlement for the
purchase of non-
controlling interest
partner (379) 379 -
------------------------------------------------
Total comprehensive income 18,566 (953) 17,613
------------------------------------------------
Employee share option
scheme:
Value of employee services 3,087 - 3,087
Proceeds from shares
issued 975 - 975
------------------------------------------------
Total transactions with
owners 4,062 - 4,062
------------------------------------------------
Balance at Sep 30, 2014 365,909 - 365,909
------------------------------------------------
------------------------------------------------
Balance at Jan 1, 2015 376,493 - 376,493
------------------------------------------------
------------------------------------------------
Net (loss) income for the
year (46,616) - (46,616)
Other comprehensive income
Currency translation
differences 52,069 - 52,069
------------------------------------------------
Total comprehensive income 5,453 - 5,453
------------------------------------------------
Employee share option
scheme:
Value of employee services 2,274 - 2,274
Proceeds from shares
issued 45 - 45
------------------------------------------------
Total transactions with
owners 2,319 - 2,319
------------------------------------------------
Balance at Sep 30, 2015 384,265 - 384,265
------------------------------------------------
------------------------------------------------
Xtreme Drilling and Coil Services Corp.
Interim Consolidated Statements of Cash Flows
For the nine months ended September 30, 2015 and 2014
(in thousands of Canadian dollars)
(unaudited)
2015 2014
--------------------------------
--------------------------------
Cash flow provided by:
Operating activities
Net (loss) income for the period (46,616) 2,847
Interest paid (3,164) (2,438)
Taxes paid (7,255) (2,495)
Items not affecting cash:
Depreciation and amortization 44,696 38,310
Impairment of property and equipment 43,742 -
Stock-based compensation 2,232 2,186
(Gain) loss on disposal of equipment (277) 4,324
Provision for doubtful accounts (757) (110)
Interest expense 3,466 3,344
Amortization of debt issuance costs 398 338
Foreign exchange loss 362 199
Current tax expense 5,723 4,905
Deferred tax (benefit) expense (2,085) 2,222
Changes in items of working capital 11,948 11,995
--------------------------------
Net cash generated from operating activities 52,413 65,627
--------------------------------
Financing activities
Proceeds from exercise of stock options 86 1,864
Proceeds from long-term debt 6,579 -
Repayment of long-term debt (44,545) (9,366)
Debt issuance costs - (96)
--------------------------------
Net cash used in financing activities (37,880) (7,598)
--------------------------------
Investing activities
Proceeds from sale of equipment 509 1,067
Capital expenditures (17,242) (54,106)
Buyout of non-controlling interest partner (1,962) (13,263)
Changes in items of working capital
relating to capital items (2,636) 8,380
--------------------------------
Net cash used in investing activities (21,295) (57,922)
--------------------------------
Effect of exchange rate changes on cash and
cash equivalents 10,312 (2,699)
--------------------------------
Increase (decrease) in cash and cash
equivalents 3,550 (2,592)
Cash and cash equivalents - beginning of
period 13,102 12,220
--------------------------------
Cash and cash equivalents - end of period 16,652 9,628
--------------------------------
--------------------------------
Xtreme Drilling and Coil Services Corp.
EBITDA and Adjusted EBITDA
For the three and nine months ended September 30, 2015 and 2014
(in thousands of Canadian dollars)
(unaudited)
Three months ended Nine months ended
Sep 30, Sep 30, Sep 30, Sep 30,
2015 2014 2015 2014
----------------------------------------------------------------------------
Net (loss) income (48,595) 853 (46,616) 8,008
Tax expense 2,216 3,444 3,638 6,343
Interest expense 1,205 1,052 3,466 5,278
Amortization of intangibles 76 76 228 228
Depreciation of property and
equipment 15,789 11,524 44,469 30,381
Impairment of property and
equipment 43,742 - 43,742 -
----------------------------------------------------------------------------
EBITDA 14,433 16,949 48,927 50,238
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Three months ended Nine months ended
Sep 30, Sep 30, Sep 30, Sep 30,
2015 2014 2015 2014
----------------------------------------------------------------------------
EBITDA 14,433 16,949 48,927 50,238
Adjustments for non-cash items 1,011 1,350 2,316 6,727
----------------------------------------------------------------------------
Adjusted EBITDA 15,444 18,299 51,241 58,355
----------------------------------------------------------------------------
Adjusted EBITDA per share ($)
- basic 0.19 0.22 0.63 0.72
----------------------------------------------------------------------------
Net (loss) income per share
($) - basic (0.59) 0.01 (0.57) 0.03
----------------------------------------------------------------------------
Three months ended Nine months ended
Sep 30, Sep 30, Sep 30, Sep 30,
2015 2014 2015 2014
----------------------------------------------------------------------------
Stock-based compensation 958 799 2,232 2,186
(Gain) loss on disposal of
equipment (159) 421 (277) 4,324
Foreign exchange loss 217 124 362 199
Other (income) expense (5) 6 (3) 18
----------------------------------------------------------------------------
Total adjustments for non-cash
items 1,011 1,350 2,316 6,727
----------------------------------------------------------------------------
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Reader Advisory
This news release contains forward-looking statements ("FLS"). The use of the words "may", "believe", "could", "would", "might", "will be taken", "occur" or "be achieved" and similar expressions identify FLS. More particularly, this news release contains statements that may relate to contracting, marketing, financing, construction, modifications, deployment, operation, utilization of drilling rigs in the Company's current and future fleet. Although Xtreme believes expectations reflected in these FLS 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 FLS not to be correct, including risks and uncertainties inherent in the Company's business.
These statements are based on certain factors and assumptions including, but not limited to: the assessment of current and projected future operations; ongoing and future strategic business alliances, negotiations and opportunities to enter new, extend or complete existing contracts; the availability and cost of financing; foreign currency exchange rates; timing and magnitude of capital expenditures; expenses and other variables affecting rig operation, modification and construction; the ability and commitment of vendors to provide rig component equipment, services and supplies, including labor, in a cost-effective and timely manner; the issuance of applied-for patents; changes in tax rates; and government regulations. Although Xtreme considers the assumptions used to prepare this news release reasonable, based on information available to management as of November 4, 2015, ultimately the assumptions may prove to be incorrect.
Forward-looking statements are 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: the cyclical nature of drilling market demand, foreign currency exchange rates, and commodity prices; access to credit and to equity markets; the availability of qualified personnel; vendor-provided rig components; and, competition for customers.
Management's assumptions considered the following: compliance with the terms of the Company's current and proposed new credit facility; ongoing access to key supplies and components required to continue operating and maintaining equipment, including fuel; continued successful performance of drilling and related equipment; expectations regarding gross margin; recruitment and retention of qualified personnel; continuation or extension of existing long-term or multi-well contracts; revenue expectations related to shorter-term drilling opportunities; willingness and ability of customers to remit amounts owing to Xtreme in accordance with normal industry practices; and management of accounts receivable in direct relation to revenue generation.
In preparing this news release, management considered the following risk factors: fluctuations in crude oil and natural gas prices, supply and demand; fluctuation in foreign currency exchange and interest rates; financial stability of Xtreme's customers; current and future applications for Xtreme's proprietary technology; competition from other drilling contractors; regulatory and economic conditions in regions where Xtreme operates; environmental constraints; changes to government legislation; international trade barriers or restrictions; and, where appropriate, global political and military events.
Financial outlook information 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 FLS 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 FLS to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such FLS or otherwise, or to explain any material difference between subsequent actual events and such FLS.
About Xtreme
Xtreme Drilling and Coil Services Corp. ("XDC" on the Toronto Stock Exchange) designs, builds, and operates a fleet of high specification drilling rigs and coiled tubing well service units featuring leading-edge proprietary technology including AC high capacity coil injectors, deep re-entry drilling capability, modular transportation systems and continuous integration of in-house advances in methodologies.
Currently Xtreme operates two service lines: Drilling Services (XDR) and Coil Services (XSR) under contracts with oil and natural gas exploration and production companies and integrated oilfield service providers in Canada, the United States, Saudi Arabia and India. For more information about the Company, please visit www.xtremecoil.com.
Contacts:
Xtreme Drilling and Coil Services Corp.
Matt Porter
President and Chief Financial Officer
+1 281 994 4600
ir@xtremecoil.com
www.xtremecoil.com
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