CALGARY, March 2, 2016 /CNW/ - Calfrac Well Services Ltd. ("Calfrac" or the "Company") (TSX–CFW) announced today that in connection with the previously announced retirement of Michael J. (Mick) McNulty, Michael Olinek will assume the role of Interim Chief Financial Officer of Calfrac effective March 4, 2016. Mr. Olinek joined Calfrac as Corporate Controller in August of 2006, and has served as Vice President, Finance since April of 2011.
Update on Restructuring Efforts
In response to continuing weak demand in the North American oilfield services industry, Calfrac has further reduced its North American workforce by approximately 500 people, leaving the Company with approximately 1,200 employees across its Canadian, United States and Corporate segments. Since the Company began reducing its workforce to better align itself with anticipated activity levels in January of 2015 it has decreased its North American headcount by approximately 2,300 people.
Fernando Aguilar, President and Chief Executive Officer, commented "The ongoing weakness in the price for oil and natural gas has led to unprecedented capital spending reductions by exploration and production companies, particularly in the North American market. The employee reductions that we are announcing today reflect the reduced demand for pressure pumping services and will help Calfrac to navigate what is shaping up to be the worst industry downturn in decades."
Calfrac's common shares are publicly traded on the Toronto Stock Exchange under the trading symbol "CFW". Calfrac provides specialized oilfield services to exploration and production companies designed to increase the production of hydrocarbons from wells drilled throughout western Canada, the United States, Russia, Argentina and Mexico.
This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. More particularly and without limitation, this press release contains forward-looking statements and information relating to the severity of the present oil and gas industry downturn and Calfrac's ability to navigate it. These forward-looking statements and information are based on certain key expectations and assumptions made by Calfrac. Although Calfrac believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information as Calfrac cannot give any assurance that they will prove to be correct. Since forward-looking statements and information address future events and conditions, by their very nature they involve 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, risks associated with general economic conditions in Canada, the United States, Russia, Argentina and Mexico; the demand for fracturing and other stimulation services during drilling and completion of oil and natural gas wells; volatility in market prices for oil and natural gas and the effect of this volatility on the demand for oilfield services generally; currency exchange rate risk; compliance with covenants and/or repayment obligations under the Company's credit facilities and senior notes indenture; regional competition; liabilities and risks, including environmental liabilities and risks, inherent in oil and natural gas operations; changes in legislation, including but not limited to tax laws, royalties and environmental regulations; sourcing, pricing and availability of raw materials, components, parts, equipment, suppliers, facilities and skilled personnel; the ability to integrate technological advances and match advances by competitors; the availability of capital on satisfactory terms; intellectual property risks; uncertainties in weather and temperature affecting the duration of the service periods and the activities that can be completed; dependence on, and concentration of, major customers; the creditworthiness and performance by the Company's counterparties and customers; liabilities and risks associated with prior operations; the effect of accounting pronouncements issued periodically; and failure to realize anticipated benefits of acquisitions and dispositions.
Readers are cautioned that the foregoing list of risks and uncertainties is not exhaustive. Additional information on these and other risk factors that could affect Calfrac's operations or financial results are included in Calfrac's annual information form and may be accessed through the SEDAR website (www.sedar.com). The forward-looking statements and information contained in this press release are made as of the date hereof and Calfrac does not undertake any obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
SOURCE Calfrac Well Services Ltd.
For further information: Fernando Aguilar, President and Chief Executive Officer, Telephone: (403) 266-6000, Fax: (403) 266-7381; Ashley Connolly, Manager, Capital Markets, Telephone: (403) 266-6000, Fax: (403) 266-7381