CALGARY, ALBERTA--(Marketwired - May 30, 2014) -
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Great Prairie Energy Services Inc. (TSX VENTURE:GPE) ("Great Prairie" or the "Company") is pleased to announce its financial results for the three month period ended March 31, 2014. A copy of the Q1 2014 financial statements ("Financial Statements") and the related management discussion and analysis ("MD&A") are available under the Company's profile on SEDAR at www.sedar.com.
First Quarter Highlights
- Revenue of $5.3 million for the three months ended March 31, 2014.
- EBITDAS(1) of $3.1 million for the three months ended March 31, 2014.
- Net and comprehensive income of $1.4 million for the three months ended March 31, 2014.
- Effective February 28, 2014, the Company acquired all of the issued and outstanding shares and assumed all of the liabilities of Green Dawg Inc. ("Green Dawg") for total cash consideration of $2.75 million with future contingent cash consideration of up to $1.05 million. Green Dawg is a private company based in Alberta that rents automated catwalks.
- On May 15, 2014, subsequent to the first quarter of 2014, Great Prairie acquired certain oilfield service assets and related operations in Alberta, Saskatchewan and British Columbia for $10.0 million cash (the "Purchased Assets"). The Purchased Assets complement Great Prairie's existing operations and include oilfield rentals, hauling and frac fluid operations in Drumheller, Sundre and Valleyview, Alberta, and Kindersley, Saskatchewan. Great Prairie acquired the Purchased Assets through its wholly owned subsidiary, Great Prairie Oilfield Services Inc.
- Coinciding with the acquisition of the Purchased Assets, Great Prairie increased its bank term facility from $6.0 million to $18.0 million to finance the Purchased Assets. Great Prairie's operating line remains unchanged at $2.0 million.
The first quarter of 2014 was active both operationally and with the completion of the Green Dawg acquisition.
Operationally, the activity level of the Viking light oil play surrounding Great Prairie's core area of Kindersley, Saskatchewan increased compared to the fourth quarter of 2013. Great Prairie invested approximately $1.67 million into additional rental and hauling equipment in the Kindersley area to keep pace with demand while continuing to deliver a quality high margin service.
The Green Dawg acquisition provides Great Prairie with a rental presence in the Lloydminster region of Saskatchewan and Alberta. Green Dawg rents automated catwalks which are used with service rigs and removes the primary pinch point involved with service rig activity. Great Prairie intends to use this platform to cross-sell its products in both the Lloydminster and Kindersley areas. In the first quarter of 2014, Great Prairie purchased a 12th catwalk unit for approximately $0.26 million. The Green Dawg acquisition provides geographic diversification to Great Prairie's operations and an opportunity to continue to deploy additional capital to expand its operations.
Great Prairie will continue to integrate its operations and look to leverage its broader operating capacity as a result of the above mentioned acquisitions. Great Prairie's four field office locations in Alberta and Saskatchewan enable Great Prairie to more effectively deploy and manage its equipment and provides a broad asset base to invest capital into its operations.
Based on the acquisition of Green Dawg and the Purchased Assets, management of Great Prairie estimates that Great Prairie would have recorded, on a pro forma basis, approximately $12.0 million in total adjusted EBITDA for the year ended December 31, 2013.
Great Prairie's financial status remains strong and positions the company well for future growth. Great Prairie continues to evaluate opportunities to add to its existing asset base.
||EBITDAS: (Earnings before interest, taxes, depreciation, amortization and stock based compensation) is not a recognized measure under IFRS. Management believes that EBITDAS is a useful supplemental measure in assessing Great Prairie's ability to generate cash flow.
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, Alberta and British Columbia. Great Prairie provides general oilfield hauling, equipment rental and frac fluid services out of Kindersley SK, Lloydminster SK, Drumheller AB, Sundre AB and Valleyview AB through its operating entities Good to Go Oilfield Rentals and Trucking, Great Prairie Oilfield Services and Green Dawg.
Forward-Looking Statements and Reader Advisory
This news release contains forward-looking statements relating to future growth, future acquisition opportunities and planned capital expenditures of Great Prairie. 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 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. These assumptions, risks and uncertainties include, among other things: the risk that Good to Go or Green Dawg 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 Assets may not be realized; risk that 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 press release are made as of the date of this press release. Except as required by law, Great Prairie disclaim any intention and assume 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.
Readers should note that EBITDA is a non-GAAP financial measures and do 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 EBITDA is a useful supplemental measure, which provide 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 EBITDA 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.