Great Prairie Energy Services Inc.
TSX VENTURE : GPE

May 29, 2015 16:27 ET

Great Prairie Energy Services Inc.-2015 First Quarter Financial Results

CALGARY, ALBERTA--(Marketwired - May 29, 2015) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.

Great Prairie Energy Services Inc. (TSX VENTURE:GPE) ("Great Prairie" or the "Company") announces its financial results for the three months ended, March 31, 2015. The full text of Great Prairie's first quarter-end financial statements and the related MD&A, are available under the Company's profile on SEDAR at www.sedar.com.

Financial Highlights for the first quarter ended March 31, 2015:

  • Revenue of $5.4 million

  • Adjusted EBITDAS of $0.02 million

Results for the first quarter of 2015 were significantly impacted by the global oversupply of oil and resulting, dramatic price decrease in oil which began in mid-2014. In addition, an early spring break up in Great Prairie's operating areas has also negatively impacted its first quarter results. The consequence of these factors has been decreased demand for Great Prairie's services and smaller operating margins due to increased pricing pressure.

Great Prairie has taken meaningful actions to minimize costs and right size its business in this challenging environment. More specifically, Great Prairie has significantly reduced its capital spending across all business units during the first quarter of 2015 and has also implemented several changes that have and will continue to reduce operational costs throughout the year. As a result of the slowdown, Great Prairie has taken the opportunity to re-position more than $1.5 million of equipment between its field operations to optimize its service platforms to support growth when commodity prices and demand for services return.

With a view to ongoing weakness in the commodity markets, the Company anticipates that activity levels and profitability within the industry will continue to be modest. The Company is proactively meeting with its bank to discuss restructuring its credit facility and additionally is evaluating alternatives to raise capital through secured and unsecured debt alternatives to preserve liquidity.

About Great Prairie Energy Services Inc.

Great Prairie Energy Services Inc. is a Canadian energy services company focused on servicing oil and gas activity in Saskatchewan and Alberta. Great Prairie provides general oilfield hauling, equipment rental and frac fluid services out of Kindersley, Saskatchewan and Drumheller, Sundre, Rocky Mountain House and Valleyview, Alberta through its operating entities.

Forward-Looking Statements and Reader Advisory

This news release contains forward-looking statements. More particularly, this news release contains statements concerning future activity levels and profitability within the industry. Forward-looking statements are often, but not always, identified by the use of words such as " "anticipate", "plan", "expect", "may", "will", "project", "predict", "believe" and similar expressions. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and other events contemplated by the forward-looking statements will not occur, which may cause actual performance and results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. With respect to forward-looking statements contained in this news release, Great Prairie has made assumptions regarding, among other things: the level of oilfield activity and the demand for the services of Great Prairie, the impact of increasing competition, and Great Prairie's ability to obtain additional financing on satisfactory terms. These risks and uncertainties include, among other things: the risk that the Company may not be able to retain key employees to continue to maintain its operations; risk that the perceived benefit of the acquisition of the purchased company and assets may not be realized; risk relating to Great Prairie's ability to complete future financings; risks relating to the state of the economy in general and capital markets in particular; risks relating to investor interest in the business and future prospects of Great Prairie; risks that Great Prairie's customers may not increase, or may even decrease, their activity levels; risks relating to changes in the demand for or the price of oil and natural gas; risks relating to increases in costs of labor, fuel, equipment and supplies employed and used in Great Prairie's businesses; risks relating to compliance with environmental, health and safety laws and regulations, as well as actions by governmental and regulatory authorities; risks that Great Prairie may not be able to execute its capital expenditure program and/or that any such capital expenditure investments, if made, will not generate adequate returns; and other risks affecting Great Prairie's ability to maintain or improve operations, including its ability to maintain prices for services under market pricing pressures, weather risks, and the impact of potential increases in general and administrative expenses.

The forward-looking statements contained in this news release are made as of the date of this news release. Except as required by law, Great Prairie disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities law. Additionally, Great Prairie undertakes no obligation to comment on the expectations of, or statements made, by third parties in respect of the matters discussed above. There is a significant risk that predictions, forecasts, conclusions or projections will not prove to be accurate, that management's or third party's assumptions may not be accurate and that actual results, performance or achievements may differ significantly from such predictions, forecasts, conclusions or projections expressed or implied by such forward-looking statements.

Readers should note that earnings before interest, taxes, depreciation, impairment, amortization, fair value adjustment on contingent consideration, share based compensation and one-time charges ("Adjusted EBITDAS") is a non-GAAP financial measure and does not have any standardized meaning under GAAP and is therefore unlikely to be comparable to similar measures presented by other companies. Great Prairie believes that Adjusted EBITDAS is a useful supplemental measure, which provides an indication of the results generated by the Great Prairie's primary business activities prior to consideration of how those activities are financed, amortized or taxed. Readers are cautioned, however, that Adjusted EBITDAS should not be construed as an alternative to comprehensive income (loss) determined in accordance with GAAP as an indicator of Great Prairie's financial performance.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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