Peak Energy Services Trust
TSX : PES.UN

Peak Energy Services Trust

November 03, 2005 17:46 ET

Peak Energy Services Trust Reports Its Financial Results for the Three and Nine Months Ended September 30, 2005

CALGARY, ALBERTA--(CCNMatthews - Nov. 3, 2005) - Peak Energy Services Trust (TSX:PES.UN) ("Peak" or the "Trust") posted revenue of $32.5 million, EBITDA of $14.2 million ($0.55 per Unit diluted), funds from operations of $13.4 million ($0.52 per Unit diluted) and net income of $8.0 million ($0.32 per Unit diluted) for the third quarter of 2005. Meanwhile, Peak posted revenue of $73.7 million, EBITDA of $27.8 million ($1.14 per Unit diluted), funds from operations of $26.3 million ($1.08 per Unit diluted) and net income of $15.5 million ($0.66 per Unit diluted) for the first nine months of fiscal 2005.

Financial Summary

For the third quarter of 2005, a build up of demand created by a backlog in oil and gas producers' capital programs, supported by high commodity prices facilitated strong drilling rig activity. Drilling rig operating days increased by 46 percent for the third quarter of 2005 and on a year-to-date basis increased by 18 percent, relative to the comparable periods of 2004.

Peak capitalized on the strong drilling rig activity level with positive financial results for the quarter. Revenue increased by $16.1 million or 98 percent to $32.5 million for the three months ended September 30, 2005 as compared to the prior year period. For the current quarter, EBITDA increased to $14.2 million ($0.55 per Unit diluted) or as a percentage of revenue was 44 percent (2004 - 35 percent), representing an increase of $8.3 million or 143 percent over the same quarter of 2004. Meanwhile, funds from operations increased $7.7 million or 137 percent to $13.4 million ($0.52 per Unit diluted) for the three months ended September 30, 2005, as compared to the prior year period. Net income for the third quarter of 2005 was $8.0 million ($0.32 per Unit diluted) compared to a net income of $2.4 million ($0.13 per Unit diluted) for the prior year period, representing an increase of $5.6 million or 235 percent.

For the nine months ended September 30, 2005, Peak's revenue increased by $27.3 million or 59 percent to $73.7 million as compared to the prior year period. For the first nine months of fiscal 2005, EBITDA increased to $27.8 million ($1.14 per Unit diluted) or as a percentage of revenue was 38 percent (2004 - 32 percent), representing an increase of $13.0 million or 87 percent over the same period of fiscal 2004. Meanwhile, funds from operations increased $16.3 million or 162 percent to $26.3 million ($1.08 per Unit diluted) for the nine months ended September 30, 2005, as compared to the prior year period. Net income year-to-date for fiscal 2005 was $15.5 million ($0.66 per Unit diluted) compared to a net income of $3.4 million ($0.18 per Unit diluted) for the prior year period, representing an increase of $12.0 million or 351 percent.

Distributions paid and declared to Unitholders for the third quarter of fiscal 2005 were $6.1 million or $0.255 per Unit, which represented 46 percent of funds from operations for the period. Distributions paid and declared to Unitholders for the first nine months of fiscal 2005 were $17.1 million or $0.735 per Unit, which represented 65 percent of funds from operations for the period.

Total assets increased by $49.7 million or 24 percent from $205.7 million at December 31, 2004 to $255.4 million at September 30, 2005. Total liabilities increased by $36.6 million or 57 percent from $64.5 million at December 31, 2004 to $101.1 million at September 30, 2005. Meanwhile, Unitholders' equity increased by $13.2 million or 9 percent from $141.1 million at December 31, 2004 to $154.3 million at September 30, 2005.

Revenue

For the three months ended September 30, 2005, Peak generated revenue of $32.5 million compared to $16.4 million for the same period of 2004, representing an increase of 98 percent compared to an increase of 46 percent in drilling rig operating days over this time period. Meanwhile, service rig utilization increased by 4 percent during the third quarter of 2005 as compared to the prior year period. Year-to-date, Peak generated revenue of $73.7 million compared to $46.4 million for the same period of 2004, representing an increase of 59 percent compared to an increase of 18 percent in drilling rig operating days over this time period. Lastly, service rig utilization decreased by 1 percent during the nine months ended 2005 as compared to the prior year period.

Drilling Services Revenue

The Drilling Services operating segment increased revenue by $9.7 million or 87 percent as it generated $20.9 million in revenue or 64 percent of the Trust's total revenue for the three months ended September 30, 2005, compared to $11.2 million or 68 percent for the prior year period. In comparison to the third quarter increase of 46 percent or 13,454 drilling rig operating days, Peak's Drilling Services operating segment produced strong results.

For the nine months ended September 30, 2005, Peak increased drilling services revenue by $18.7 million or 58 percent as it generated $51.1 million in revenue or 69 percent of the Trust's total revenue, compared to $32.4 million or 70 percent for the prior year period. In comparison to the nine month increase of 18 percent or 16,612 drilling rig operating days, Peak's Drilling Services operating segment produced positive results.

Production Services Revenue

The Production Services operating segment improved revenue by $6.4 million or 123 percent as it contributed $11.6 million in revenue or 36 percent of the Trust's total revenue for the three months ended September 30, 2005, compared to $5.2 million or 32 percent for the prior year period. The quarter-over-quarter increase of 123 percent compares favorably to the 4 percent increase in service rig utilization.

Year-to-date, Peak improved production services revenue by $8.6 million or 61 percent as it contributed $22.6 million in revenue or 31 percent of the Trust's total revenue, compared to $14.0 million or 30 percent for the prior year period. The year-over-year increase of 61 percent compares favorably to the 1 percent decrease in service rig utilization.

Relative to the industry activity levels experienced, Peak's incremental increase in revenue was attributed to the revenue generated by both the strategic business acquisitions and significant capital expenditures made during fiscal 2004 and 2005. Also contributing to the incremental increase were the enhanced rental equipment day rates realized during the period.

Expenses

Operating expenses - For the three months ended September 30, 2005, operating expenses were higher than the prior year period by $5.9 million or 81 percent. However, as a percentage of revenue, operating costs were 41 percent compared to the prior year period of 44 percent. For the nine months ended September 30, 2005, operating expenses were higher than the prior year period by $10.4 million or 47 percent. However, as a percentage of revenue, operating costs were 44 percent compared to the prior year period of 48 percent. The primary drivers of the improvement in operating expenses as a percentage of revenue were the economies of scale realized by the Trust associated with the significant business acquisitions and capital expenditures made during the current year and later part of fiscal 2004 and reduced repair and maintenance costs, as a percentage of revenue, incurred.

General and administrative expenses - General and administrative expenses (G&A) were $1.9 million or 56 percent higher for the three months ended September 30, 2005, as compared to the same period of 2004. For the first nine months of fiscal 2005, G&A was $3.9 million or 41 percent higher than the prior year period. For both the current quarter and year-to-date periods, the increase was the result of higher employee costs and facility rental costs resulting from the recent business acquisition and capital expenditure activities and increased variable compensation (bonuses and commissions) as a result of the Trust's improved financial performance. In addition, higher uncollectible accounts receivable and professional consulting fees associated with the Trust's regulatory compliance activities contributed to the additional G&A. As a percentage of revenue, G&A was 16 percent (2004 - 20 percent) and 18 percent (2004 - 20 percent) for the three and nine months ended September 30, 2005, respectively.

Depreciation and amortization expenses - For the three months ended September 30, 2005, depreciation and amortization expenses were higher than the prior year period by $1.0 million or 38 percent. For the nine months ended September 30, 2005, depreciation and amortization expenses were higher than the prior year period by $1.7 million or 24 percent.

Interest on long-term debt expense - Interest on long-term debt expense for the third quarter of 2005 increased from the prior year period by $0.4 million or 227 percent. Year-to-date, interest on long-term debt expense increased from the prior year period by $0.3 million or 35 percent. The interest cost (expressed as a percentage of the average long-term debt outstanding during the period) was 4.3 percent and 4.5 percent for the three and nine months ended September 30, 2005, respectively, compared to 4.5 percent and 6.9 percent for the comparable periods of 2004.

Loss on sale of equipment - For the three months ended September 30, 2005, the loss on sale of equipment amounted to $0.3 million compared to a loss of $0.8 million for the prior year period. For the nine months ended September 30, 2005, the loss on sale of equipment amounted to $1.2 million compared to a loss of $1.4 million for the prior year period. The loss was the result of the Trust's ongoing asset rationalization program, whereby equipment identified during the period that was not generating an appropriate rate of return were sold and the proceeds were reinvested in equipment that is expected to generate improved returns on invested capital.

Provision for income taxes - The current tax provision of $0.3 million and future tax provision of $1.3 million, resulted in a net income tax provision of $1.6 million and an effective income tax rate of 16 percent for the three months ended September 30, 2005. Meanwhile, the current tax provision of $0.5 million and future tax provision of $0.2 million, resulted in a net income tax provision of $0.7 million and an effective income tax rate of 4 percent for the nine months ended September 30, 2005. The three and nine months ended September 30, 2005 variance of $1.7 million and $4.9 million, respectively, in the provision from the expected federal and provincial statutory income tax rate of 34 percent was primarily driven by the reduction in the provision resulting from Trust distributions to Unitholders.

Non-controlling interest - The income attributed to the non-controlling interest was $0.3 million (2004 - $0.2 million) and $0.6 million (2004 - $35,000) for the three and nine months ended September 30, 2005, respectively. The non-controlling interest is the result of the retroactive adoption of the guidance from the Emerging Issues Committee ("EIC") of the Canadian Institute of Chartered Accountants ("CICA") EIC-151 "Exchangeable Securities Issued by Subsidiaries of Income Trusts". The non-controlling interest on the consolidated statement of operations represents the respective period income or loss attributed to the non-controlling interest holders during the period.

Net income

For the three months ended September 30, 2005 and 2004, net income was $8.0 million ($0.32 per Unit diluted) and $2.4 million ($0.13 per Unit diluted), respectively. This translated into a period-over-period increase of 235 percent. For the nine months ended September 30, 2005 and 2004, income before reorganization costs was $15.5 million ($0.66 per Unit diluted) and $6.0 million ($0.32 per Unit diluted), respectively. This translated into a year-over-year increase of 156 percent. Meanwhile, for the nine months ended September 30, 2005, net income increased 351 percent to $15.5 million ($0.66 per Unit diluted) compared to net income of $3.4 million ($0.18 per Unit diluted) for the same period of 2004.

Balance Sheet

The Trust's balance sheet remains strong with working capital (defined as current assets less current liabilities excluding current portion of long-term debt) of $27.9 million, net debt (defined as interest bearing debt less cash and cash equivalents) of $49.3 million on tangible assets of $170.3 million and unitholders' equity of $154.3 million at September 30, 2005.

Cash Flow

Funds from operations were $13.4 million ($0.52 per Unit diluted) for the third quarter of fiscal 2005 and $26.3 million ($1.08 per Unit diluted) for the first nine months of fiscal 2005. The 137 percent third quarter increase and 162 percent year-to-date increase, when compared to the respective prior year periods was directly attributed to the higher revenues realized and associated income before non-cash items experienced during the first nine months of 2005.

Net cash used in investing activities during the three months ended September 30, 2005 was $10.3 million (2004 - $4.4 million) and year-to-date was $40.4 million (2004 - $19.1 million). These activities were the result of the following:

- the business acquisition of the operating assets of Source Oilfield Rentals Inc. ("Source") on September 15, 2005 for consideration of $9.5 million, comprised of $6.5 million in cash and the equivalent of $3.0 million in Trust Units (0.3 million Trust Units were issued). Source provides specialized invert recovery units, auxiliary pumps, wash guns and shale tanks for the purpose of aiding in the cleaning of hydrocarbon based drilling fluid from the drill cuttings on location. These assets are classified as Drilling Services for segmented information purposes;

- the business acquisition of all the issued and outstanding shares of Competition Wireline Services Ltd. and 1177868 Alberta Ltd. (collectively referred to as "Competition") on July 1, 2005 for consideration of $31.5 million, comprised of $25.0 million in cash and the equivalent of $6.5 million in Trust Units (0.6 million Trust Units were issued), subject to a one year earn-out of between nil and $6.0 million payable in either cash or Trust Units at the discretion of Peak management. Competition provides production and completion wireline services to oil and gas producers in the northwest and central areas of the WCSB. Production wireline services are used for the ongoing maintenance and optimization of existing producing wells, whereas completion related wireline services are geared toward assisting in initializing production in new wells drilled. These assets are classified as Production Services for segmented information purposes;

- the business acquisition of the operating assets of Sandman Rentals Inc. ("Sandman") on February 15, 2005 for cash consideration of $0.7 million. Sandman provides high capacity flow-back tanks and related transportation services within the production services side of the oil and gas industry. These assets are classified as Production Services for segmented information purposes; and

- the $8.3 million of net equipment purchases (includes proceeds on sale of equipment of $3.5 million).

Net cash provided by financing activities during the three months ended September 30, 2005 was $0.2 million (2004 - $2.4 million) and year-to-date was $19.3 million (2004 - $10.5 million). These activities were the result of the following:

- the payment of $16.9 million in Trust distributions to Unitholders;

- an increase in long-term debt of $36.8 million used to fund business acquisitions and internal capital expenditures; and

- an increase in deferred financing costs of $0.6 million associated with the additional debt facilities added in August 2005.

Trust Distributions

The Trust declared distributions of $0.735 per Unit for a total of $17.1 million, of which $2.1 million was paid on October 15, 2005, in respect of earnings to September 30, 2005. Distributions declared represented 65 percent of funds from operations (this does not take into account the impact of maintenance capital expenditures) for the nine months ended September 30, 2005. Currently, the Trust's objective is to pay in the range of 50 to 60 percent of its funds from operations on an annual basis.

The holders of Exchangeable Shares do not receive distributions declared by the Trust. Rather, on each distribution payment date, the number of Trust Units which one Exchangeable Share is exchangeable into is increased on a cumulative basis in respect of the distributions. At September 30, 2005, the Exchangeable Share exchange ratio was one Exchangeable Share to 1.14813 Trust Units.

Subsequent Event

On October 18, 2005, Peak Energy Services Trust closed its offering of 1.7 million Trust Units. The offering was made on a bought-deal basis through a syndicate of underwriters. At closing, a total of 1.7 million Trust Units were issued at a price of $12.00 per Trust Unit for gross proceeds of $20.0 million and net proceeds of $18.7 million.

The net proceeds of the offering will be used to reduce bank indebtedness, which may be redrawn and applied to finance general purposes and the Trust's capital expenditure and acquisition programs.

Capital Expenditure Plan Update

Peak's capital expenditure program for fiscal 2005 has been increased by approximately $8.3 million (excluding proceeds from disposal) from an original plan of $10.4 million to approximately $18.7 million. Of this amount, approximately $6.9 million is expected to be expended during the fourth quarter of 2005 to satisfy increasing customer demand in various product lines. The additions to the program are essentially all growth in nature of which approximately $6.0 million was allocated for Drilling Services and approximately $2.3 million was allocated for Production Services. The additions to the program were the result of Management identifying opportunities to further expand its existing product offerings and to increase the size of the fleet for the newly acquired wireline product line in efforts to take advantage of areas with high customer demand. In addition to the planned capital expenditures for fiscal 2005, the Trust intends on continuing to identify, evaluate and acquire oil and gas service companies and/or service assets that complement Peak's business model. The Trust plans to use cash generated from operating activities to fund maintenance capital expenditures and to utilize its existing debt and equity facilities to fund new capital expenditures and any new business acquisitions contemplated for fiscal 2005.

Outlook

The outlook for the fourth quarter and into fiscal 2006 remains very positive. Current activity levels in all of Peak's product lines are very strong due to a combination of wet weather during the third quarter creating some pent up demand for services and the continued strength of hydrocarbon prices. Record drilling rig utilization rates experienced in the third quarter are expected to continue for the foreseeable future. Based on these conditions, Peak expects the strong demand for its products and services that it is currently experiencing to continue for the fourth quarter and into the 2006 winter drilling season.

Peak's management team remains committed to executing on its strategic plan of generating new avenues of growth through acquisition as evidenced by the Competition acquisition for $31.5 million on July 1, 2005 and more recently, the acquisition of Source for $9.5 million on September 15, 2005. In addition to this growth through acquisition, Peak has also committed $18.7 million for additional capital expenditures in 2005 which includes an increase of $8.3 million from the original budget of $10.4 million. Of this increased amount, approximately $6.9 million is to be expended in the fourth quarter of 2005, the majority of which is growth capital to meet increasing customer demand. Management expects these additional assets to be on the ground generating revenue early in the first quarter of 2006. This substantial growth profile will continue to create increased value for our unitholders through increased revenues and funds from operations along with a decreased payout ratio of distributions as a percentage of funds from operations.

Peak continues to maintain a conservative financial position as evidenced by the recent $20.0 million equity financing which closed on October 18, 2005 whereby 1,667,000 Trust Units were issued at $12.00 per Trust Unit. This financing places Peak in the enviable position of having a very strong balance sheet combined with a total debt facility capacity of $110.0 million. In summary, the Trust is in an excellent position to continue to execute on its strategy of growing its existing business lines to meet customer demand and to seek out additional growth opportunities in complementary businesses.

Non-GAAP Measures

EBITDA is defined as earnings before interest, taxes, depreciation and amortization and other items. EBITDA is not a recognized measure under Canadian generally accepted accounting principles ("GAAP"). Management believes, in addition to net income, EBITDA is a useful supplemental measure as it provides an indication of the results generated by Peak's principle business activities prior to consideration of how these activities are financed or how the results are taxed in various jurisdictions. Investors should be cautioned, however, that EBITDA, should not be construed as an alternative to net income determined in accordance with GAAP as an indicator of the Trust's performance. Peak's method of calculating EBITDA may differ from other companies and, accordingly, EBITDA may not be comparable to measures used by other companies.

Funds from operations is defined as funds generated from operating activities before changes in non-cash working capital balances. Funds from operations is not a recognized measure under Canadian GAAP. Management believes, in addition to cash flow provided by operating activities, funds from operations is a useful supplemental measure as it provides an indication of funds generated by operations before working capital adjustments. Investors should be cautioned, however, that funds from operations should not be construed as an alternative to cash flow provided by operating activities, determined in accordance with Canadian GAAP, as an indicator of the Trust's performance. Peak's method of calculating funds from operating activities, may differ from other companies and, accordingly, funds from operations may not be comparable to measures used by other companies.

Conference Call

Management will hold a conference call to discuss the quarter end results at 9:30 a.m. MT (11:30 a.m. ET) on Friday, November 4, 2005. To participate, please dial 1 (877) 888-4210 or 1 (416) 695-5259. Participants are asked to call at least 15 minutes before the start of the call. For those unable to participate in the live event, a rebroadcast will be available until Friday, November 11, 2005 by dialing 1 (888) 509-0081 or 1 (416) 695-5275.

Financial Results

The following selected financial information summarizes Peak's consolidated financial results for the three and nine months ended September 30, 2005. Peak's third quarter report, including the consolidated interim financial statements and management's discussion and analysis for the three and nine months ended September 30, 2005 and 2004 will be available at www.sedar.com on or about November 10, 2005.



CONSOLIDATED STATEMENTS OF OPERATIONS AND ACCUMULATED EARNINGS
------------------------------------------------------------------------
(in thousands of CAD, 3 months ended 9 months ended
except per Unit amounts) Sept 30, Sept 30,
(unaudited) 2005 2004 2005 2004
------------------------------------------------------------------------
(restated) (restated)

Revenue $ 32,541 $ 16,424 $ 73,719 $ 46,437

Expenses:
Operating 13,216 7,283 32,631 22,187
General and administrative 5,165 3,311 13,310 9,422
Depreciation and amortization 3,474 2,523 8,653 6,987
Interest on long-term debt 556 170 1,054 778
-----------------------------------------------------------------------
22,411 13,287 55,648 39,374

------------------------------------------------------------------------
Income before other items 10,130 3,137 18,071 7,063

Other items:
Loss on sale of equipment 287 812 1,231 1,440
Loss (gain) on sale of equipment
held for sale - 22 (24) 43
Impairment loss on equipment - - 100 -
Reorganization costs - - - 3,927
Recovery of loss on equity
investment - (114) - (114)
-----------------------------------------------------------------------
287 720 1,307 5,296

------------------------------------------------------------------------
Income before income taxes 9,843 2,417 16,764 1,767

Provision for income taxes:
Current 264 178 487 1,581
Future (reduction) 1,332 (338) 249 (3,281)
-----------------------------------------------------------------------
1,596 (160) 736 (1,700)

------------------------------------------------------------------------
Income before non-controlling
interest 8,247 2,577 16,028 3,467

Non-controlling interest 274 196 559 35

------------------------------------------------------------------------
Net income 7,973 2,381 15,469 3,432

Accumulated earnings,
beginning of period
As previously reported 18,929 4,644 11,830 6,179
Change in method of
non-controlling interest - 149 (397) -
Change in method of accounting
for stock-based compensation - - - (319)
------------------------------------------------------------------------
As restated 18,929 4,793 11,433 5,860

Reorganization costs - - - (2,118)

------------------------------------------------------------------------
Accumulated earnings,
end of period $ 26,902 $ 7,174 $ 26,902 $ 7,174
------------------------------------------------------------------------
------------------------------------------------------------------------

Earnings per Unit:
Basic $ 0.32 $ 0.13 $ 0.67 $ 0.19
Diluted $ 0.32 $ 0.13 $ 0.66 $ 0.18
------------------------------------------------------------------------


CONSOLIDATED STATEMENTS OF CASH FLOWS
------------------------------------------------------------------------
(in thousands of CAD, 3 months ended 9 months ended
except per Unit amounts) Sept 30, Sept 30,
(unaudited) 2005 2004 2005 2004
------------------------------------------------------------------------
(restated) (restated)
Operating activities:
Net income $ 7,973 $ 2,381 $ 15,469 $ 3,432
Add (deduct) items not
affecting cash:
Stock-based compensation - - - 119
Amortization of deferred
financing costs 40 45 88 151
Reorganization costs - - - 1,114
Depreciation and amortization 3,474 2,523 8,653 6,987
Loss on sale of equipment 287 812 1,231 1,440
Loss (gain) on sale of
equipment held for sale - 22 (24) 43
Impairment loss on equipment - - 100 -
Future income taxes (reduction) 1,332 (338) 249 (3,281)
Non-controlling interest 274 196 559 35
-----------------------------------------------------------------------
13,380 5,641 26,325 10,040

-----------------------------------------------------------------------
Changes in non-cash working
capital items (9,837) (4,125) (4,946) 1,419
------------------------------------------------------------------------

3,543 1,516 21,379 11,459
------------------------------------------------------------------------

Investing activities:
Business acquisition (31,471) - (32,136) (3,513)
Funds removed from trust for
payment of acquisition 26,000 - 26,000 -
Funds held in trust for future
acquisition - - (26,000) -
Purchase of equipment (5,828) (6,568) (11,822) (21,411)
Proceeds on sale of equipment
and equipment held for sale 1,020 1,863 3,515 5,606
Increase in loan receivable - (10) - (120)
Repayment of loan receivable - 318 - 318
-----------------------------------------------------------------------
(10,279) (4,397) (40,443) (19,120)
Financing activities:
Repayment of operating line
of credit - - - (2,078)
Distributions to Unitholders (5,895) (4,084) (16,903) (5,418)
Increase in long-term debt 6,500 6,500 36,750 18,250
Repayment of long-term debt - - - (20,773)
Issue of Trust Units,
net of costs (40) - 20 968
Issue of share capital,
net of costs - - - 23,987
Increase in deferred financing
costs (387) (20) (557) (192)
Cancellation of stock option plan - - - (4,268)
-----------------------------------------------------------------------
178 2,396 19,310 10,476

Increase (decrease) in cash and
cash equivalents (6,558) (485) 246 2,815
Cash and cash equivalents,
beginning of period 13,999 3,300 7,195 -
------------------------------------------------------------------------

Cash and cash equivalents,
end of period $ 7,441 $ 2,815 $ 7,441 $ 2,815
------------------------------------------------------------------------
------------------------------------------------------------------------

Supplemental information:
Interest paid $ 536 $ 170 $ 1,028 $ 778
Income taxes paid $ 564 $ 1,332 $ 634 $ 1,501
------------------------------------------------------------------------



CONSOLIDATED BALANCE SHEETS
------------------------------------------------------------------------
September 30, December 31,
(in thousands of CAD) 2005 2004
------------------------------------------------------------------------
(unaudited) (audited)
(restated)
ASSETS
Current assets:
Cash and cash equivalents $ 7,441 $ 7,195
Accounts receivable 30,192 24,583
Income taxes recoverable 310 153
Prepaid expenses 1,199 845
-----------------------------------------------------------------------
39,142 32,776

Property and equipment 170,326 150,327

Equipment held for sale 42 517

Deferred financing costs 645 176

Intangibles 6,919 5,022

Goodwill 38,322 16,836

------------------------------------------------------------------------
$255,396 $205,654
------------------------------------------------------------------------
------------------------------------------------------------------------

LIABILITIES AND UNITHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities $ 9,195 $ 9,550
Distributions payable 2,070 1,834
Income taxes payable - -
Current portion of long-term debt 1,993 2,381
Trust capital payable - 1,736
-----------------------------------------------------------------------
13,258 15,501

Long-term debt 54,757 17,619

Future income taxes 29,855 26,904

Non-controlling interest 3,276 4,525

Unitholders' equity:
Trust Unit capital 154,497 139,682
Contributed surplus 1,483 1,483
Accumulated earnings 26,902 11,433
Accumulated cash distributions (28,632) (11,493)
-----------------------------------------------------------------------
154,250 141,105

------------------------------------------------------------------------
$255,396 $205,654
------------------------------------------------------------------------
------------------------------------------------------------------------


About Peak Energy Services Trust

Peak Energy Services Trust is a diversified energy services organization providing oilfield equipment and related services to the energy industry throughout western Canada and mid-western United States of America. Peak Energy Services Trust units are list on the Toronto Stock Exchange under the symbol "PES.UN".

Certain information set forth in this document, including management's assessment of Peak's future plans and operations, contains forward-looking statements. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond these parties' control, including the impact of general economic conditions, industry conditions, currency fluctuations, environmental risks, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility and ability to access sufficient capital from internal and external sources. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. Peak's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that Peak will derive there from. Peak disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

The TSX have neither approved nor disapproved the information contained herein.

Contact Information

  • Peak Energy Services Trust
    Mr. Christopher E. Haslam
    Chairman of the Board and Chief Executive Officer
    (403) 543-7325
    (403) 543-7335 (FAX)
    or
    Peak Energy Services Trust
    Mr. Matthew J. Huber
    Chief Financial Officer
    (403) 543-7325
    (403) 543-7335 (FAX)
    or
    Peak Energy Services Trust
    Suite 1800, 530-8th Avenue SW
    Calgary, Alberta T2P 3S8
    (403) 543-7325
    (403) 543-7335 (FAX)