Bonnett's Energy Services Trust Announces 2009 First Quarter Results


    GRANDE PRAIRIE, AB, May 6 /CNW/ - Bonnett's Energy Services Trust
(TSX:BT.UN) ("Bonnett's", or the "Trust") has released its Q1 2009 results.
    Bonnett's Energy Services Trust generated revenue of $20.7 million,
EBITDAC of $3.7 million and net income of $0.6 million from continuing
operations in the first quarter of 2009. This compares with revenue of $26.1
million, EBITDAC of $7.8 million and net income of $4.3 million in the same
period of 2008 from continuing operations.
    The decrease of revenue and EBITDAC of $5.5 million and $4.1 million,
respectively, is the result of both lower utilization rates and downward
pricing pressure in all divisions of the Trust. The global economic slowdown
has negatively affected commodity prices and oilfield industry activity
levels. While Q1 2009 began with a similar start as the comparable period of
2008, activity levels sharply declined in the last half of the period. The
near-term outlook for drilling activity and the corresponding demand for
oilfield services provided by the Trust is currently negative based on
macroeconomic factors. The Petroleum Services Association of Canada ("PSAC")
forecasts 10,000 wells to be drilled ("rig released") in 2009 as compared with
16,940 actual wells drilled in 2008, a 41% decrease.
    The Trust has responded to the new economic climate with aggressive cost
saving initiatives including workforce reductions and compensation reductions
to align its cost structure with expected demand for the Trust's services. A
detailed review of the Trust's service offerings is being performed in
conjunction with a review of the overall business strategy of the Trust. It is
anticipated that the Trust may divest of certain non-core assets in addition
to the rationalization of assets in some core service lines. Any proceeds
received from the divestiture of assets will be applied to reduce bank
    The Trust is currently in negotiations with its lending syndicate to
extend its credit facilities past the June 30, 2009 expiry date of the current
lending agreement. If the facility is not renewed, the debt becomes due and
payable on that date.


    Three Months Ended March 31                     2009      2008      2007
    ($000's except per unit amounts)
    Revenue from continuing operations            20,712    26,183    35,973
    EBITDAC from continuing operations(1)          3,694     7,830     9,957
    Funds flow from continuing operations(2)       3,101     6,599     9,257
    Funds flow from continuing operations per
      Per Unit - Basic                              0.22      0.56      0.81
      Per Unit - Diluted                            0.22      0.56      0.80
    Net income (loss) from continuing
     operations                                      615     4,264     5,096
    Net income (loss)                                615     4,170     4,249
    Net income (loss) per unit from
     continuing operations
      Per Unit - Basic                              0.04      0.36      0.44
      Per Unit - Diluted                            0.04      0.36      0.44
    Net income (loss) per unit
      Per Unit - Basic                              0.04      0.35      0.37
      Per Unit - Diluted                            0.04      0.35      0.37
    Distribution to unitholders                        -         -     4,599
      Distribution per unit - basic                    -         -      0.40
    Weighted average units
      Basic                                       14,305    11,774    11,498
      Diluted                                     14,305    11,774    11,614


    (1) Earnings before interest, taxes, depreciation, amortization and unit
        based compensation and certain other items ("EBITDAC") is not a
        recognized measure under Canadian Generally Accepted Accounting
        Principles (GAAP). Management believes that in addition to net
        earnings, EBITDAC is a useful supplemental measure as it provides an
        indication of the results generated by the Trust's principal business
        activities prior to consideration of how those activities are
        financed or how the results are taxed. These measures are identified
        and presented, where appropriate, together with reconciliations to
        the equivalent GAAP measure. However, they should not be used as an
        alternative to GAAP, because they may not be consistent with
        calculations of other companies or trusts.

    (2) Funds flow or funds flow from operations refers to cash flow from
        operations before changes in non-cash working capital. The Trust
        views cash flow from operating activities before changes in non-cash
        working capital balances, hereafter referred to as Funds Flow, as a
        measure of liquidity, and believes that Funds Flow is a metric used
        by many investors to assess the financial performance of the Trust.
        As the Trust may distribute a portion of its cash on an ongoing
        basis, the Trust believes that Funds Flow is an appropriate
        consideration in determining funds available for distribution to
        unitholders. Although changes in non-cash working capital balances
        will impact cash available to finance distributions, these changes
        will be a source of cash in one period and a use of cash in another
        depending on changes in the level of activity in a particular period
        due to seasonality and other factors. Absent a sustained period of
        growth in the Trust's business, changes in non-cash working capital
        will generally not be a use of cash by the Trust over a longer period
        of time, although that may be the case from one quarter to the next.
        Given that these changes are not predictable and tend to even out
        over time, management does not believe it is appropriate to include
        such changes in determining cash flow from operating activities being
        a measure used to indicate capacity of the Trust to generate cash
        flow for paying distributions in the future. Any use of cash from an
        increase in working capital in a particular period will be financed
        by the Trust's credit facilities and repaid when non cash working
        capital decreases and cash is generated. See the heading "Funds flow
        from Operations" for reconciliation to the equivalent GAAP measure.
        Funds flow should not be used as an alternative to GAAP, because it
        may not be consistent with calculations of other companies or trusts.

    Disclosure Regarding Forward-Looking Statements

    This press release contains forward-looking information within the
meaning of applicable Canadian securities law. This information is subject to
certain risks and uncertainties that could cause actual results to differ
materially from those included in the forward-looking information. When used
in this document, the words "intend", "plan", "anticipate", "believe", "seek",
"propose", "estimate", "intend" and similar expressions, as well as future or
conditional verbs such as "may", "would", "could", and "will", as they relate
to the Trust, are intended to identify forward-looking information. Such
information reflects the Trust's current views with respect to future events
and are subject to certain risks, uncertainties and assumptions, including,
without limitation, those described in the Trust's MD&A for the three months
ended March 31, 2009 under the heading "Risks and uncertainties", and
"Outlook". Forward-looking information concerning expected operating and
economic conditions are based upon past operating and economic conditions.
Forward-looking information concerning the availability of funding for future
operations is based upon sources of funding which the Trust has relied upon in
the past and expectations concerning future economic and operating conditions.
Forward-looking information concerning the relative future competitive
position of the Trust is based upon expectations relating to future economic
and operating conditions, the current business environment, present and
anticipated programs and expansion plans of other organizations operating in
the energy service industry. Forward-looking information concerning the nature
and timing of growth is based on past factors affecting the growth of the
Trust, past sources of growth and expectations relating to future economic and
operating conditions. Forward-looking information in respect of the costs
anticipated to be associated with the acquisition and maintenance of equipment
are based upon past acquisition and maintenance costs for such equipment and
expectations relating to the future acquisition and maintenance cost increases
concerning such equipment. Although management of the Trust believes that the
expectations reflected in such forward-looking information are reasonable,
there can be no assurance that such expectations will prove to have been
correct because, should one or more of the enumerated risks or uncertainties
materialize, or should the assumptions underlying forward-looking information
prove incorrect, actual results may vary materially from those described in
this press release as intended, planned, anticipated, believed, estimated or
expected. Except where required by law, the Trust does not assume any
obligation to update forward-looking information if conditions or opinions
should change. Readers should not place undue reliance on forward-looking
information. All of the forward-looking information of the Trust contained in
this press release are expressly qualified, in their entirety, by this
cautionary statement.

    Additional Information

    Additional information relating to the Trust is filed on SEDAR and can be
viewed at or at the Trust's website at
This information includes the Trust's Annual Information Form dated March 31,

    %SEDAR: 00022595E

For further information:

For further information: Information can also be obtained by contacting
the Trust at Bonnett's Energy Services Ltd., R.R. 2, Site 33, Box 1, Grande
Prairie, Alberta, T8V 2Z9; or David Ross, CFO at (403) 264-3010 ext 231

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