Savanna Energy Services Corp.
TSX : SVY

Savanna Energy Services Corp.

May 03, 2016 17:15 ET

Savanna Energy Services Corp. Announces First Quarter 2016 Results and Continued Debt Reduction

CALGARY, ALBERTA--(Marketwired - May 3, 2016) - Savanna Energy Services Corp. (TSX:SVY) -

First Quarter Results

Savanna generated revenue of $93.7 million, adjusted EBITDAS of $22.1 million and a net loss, attributable to shareholders of the Company, of $10.1 million or $0.11 per share in the first quarter of 2016, compared to revenue of $154.6 million, adjusted EBITDAS of $38.3 million and net earnings, attributable to shareholders of the Company, of $10 million or $0.11 per share in Q1 2015. The significant decline in year-over-year industry activity levels in North America, driven by continuing low oil and natural gas prices, resulted in the lower overall revenue, operating margin and adjusted EBITDAS amounts in Q1 2016, relative to Q1 2015.

The impact of the industry activity and commodity price declines on Savanna in Q1 2016 was mitigated by the twelve contracted new-build rigs added in late 2014 and early 2015, the strength and extent of Savanna's contracted rig status in Australia, and lower costs throughout the organization. Lower costs were a function of cost control initiatives and the significant restructuring efforts undertaken in 2015, which held operating margin percentages and adjusted EBITDAS percentages in-line relative to Q1 2015, despite lower year-over-year revenue. Excluding the $0.6 million in field office and general and administrative related severance costs incurred in Q1 of this year and the $7 million in Q1 2015, Savanna's restructuring efforts over the last 15 months reduced field office and general and administrative costs by $8.4 million, or 35%, in Q1 2016 relative to Q1 2015, which represents a $14.4 million, or 47%, decrease from the Company's 2014 exit run-rate. Total severance costs in the quarter aggregated $1.9 million this year versus $8.5 million in Q1 2015.

In 2016, the Company's total debt, net of cash has declined by $23.6 million to $251.4 million, as of the date of this release.

Compared to the prior year, each of the countries in which the Company operates benefited from new rigs on long-term contracts and lower operating expenses and field office costs, which partly mitigated the significant declines in revenue due to lower activity levels and pricing. In Canada, revenues declined by $45.2 million and operating margins declined by $13.9 million. In the U.S., revenues declined by $22.7 million and operating margins declined by $7.7 million. In Australia, revenues were $7.2 million higher and operating margins were $4.2 million higher. Savanna's overall operating margin in Q1 2016 was $18.1 million lower relative to Q1 2015, while operating margin percentages remained flat, despite the significant decrease in year-over-year revenue. General and administrative expenses declined from $16.3 million in Q1 2015 to $7.8 million in Q1 2016. As a result, EBITDAS was $9.6 million lower than in Q1 2015, while EBITDAS percentages increased as a result of a decrease in total severance costs.

In Canada, long-reach drilling, shallow drilling, well servicing and rentals all experienced significant activity and pricing declines, which resulted in lower revenue and operating margins compared to Q1 2015. However, the significant restructuring and cost control efforts undertaken by Savanna in 2015 partially mitigated the corresponding decrease in operating margins and operating margin percentages in each of the divisions above, relative to Q1 2015. Savanna generated $9.7 million in operating margins on $38.6 million of revenue in Canada in Q1 2016, compared to $23.6 million in operating margins on $83.8 million of revenue in Q1 2015. Sequentially, operating margins were relatively flat compared to the $9.3 million generated on $40.8 million of revenue in Canada in Q4 2015.

Savanna's U.S. drilling and well servicing divisions also experienced significant activity and revenue declines relative to Q1 2015. Lower U.S. revenue was partially offset by the effect of operating a greater proportion of higher-spec and higher day rate drilling rigs, namely the three Velox triple drilling rigs, cost control and restructuring efforts, and an appreciation in the value of the U.S. dollar relative to the Canadian dollar, which resulted in an increase in operating margin percentages compared to Q1 2015. Sequentially, the effect of a contract expiry on a drilling rig that had been earning stand-by in the U.S. and lower rates in U.S. well servicing resulted in lower operating margins compared to Q4 2015. Savanna generated $6.8 million in operating margins on $17 million of revenue in the U.S. in Q1 2016, compared to $7.8 million in operating margins on $18.8 million of revenue in Q4 2015 and $14.5 million in operating margins on $39.7 million of revenue in Q1 2015.

In Australia, the five new service rigs and the three new flush-by units deployed into Australia in late 2014 and early 2015 resulted in overall increases in revenue and operating margins relative to Q1 2015. Savanna generated $12.3 million in operating margins on $38.8 million of revenue in Australia in Q1 2016, compared to $8.1 million in operating margins on $31.6 million of revenue in Q1 2015. Of the change in year-over-year revenue and operating margin, $5.6 million related to the timing of recognition of stand-by revenue in Q2 2015 versus Q1 2015. In Q2 2015, negotiations surrounding stand-by charges for certain of the eight new-build rigs described above concluded and resulted in the recognition of $5.6 million in revenue that related to Q1 2015, but did not meet revenue recognition criteria in the first quarter of last year. Also impacting operating margin in Q1 2016 compared to Q1 2015, was the effect of one service rig and one drilling rig that were off contract and not operating in Q1 2016, as well as the receipt of a $0.7 million contract termination fee during the first quarter of this year. Sequentially, operating margins decreased from the $13.2 million generated on $41.5 million of revenue in Australia in Q4 2015. The decrease in operating margins sequentially was primarily a result of severance costs in the quarter.

Overall for the quarter, the year-over-year decrease in industry activity levels in North America resulted in a 32% decrease in EBITDAS compared to Q1 2015. In Q1 2016, the Company also recorded a $5 million, non-cash, provision for onerous office and shop lease contracts related to leased office and shop space no longer in use. The decrease in EBITDAS, combined with the non-cash onerous lease provision, as well as the extent of share-based compensation recoveries, foreign exchange gains, and gains on asset disposals in Q1 2015, resulted in an overall net loss in Q1 2016 compared to net earnings in Q1 2015. Compared to Q4 2015, Savanna's net loss decreased primarily as a result of the $135.1 million in impairment losses and the $64.8 million deferred income tax valuation allowance recorded in Q4 2015. The Q1 2016 net loss attributable to the shareholders of the Company was $10.1 million, or $0.11 per share, compared to net earnings attributable to the shareholders of the Company of $10 million or $0.11 per share, in Q1 2015. The Q4 2015 net loss attributable to the shareholders of the Company was $162.6 million, or $1.80 per share.

Balance Sheet

Savanna's working capital at March 31, 2016, was $37.8 million, which includes $8 million in cash and is net of the $5.3 million drawn on its Canadian operating facility.

Savanna's total long-term debt outstanding on March 31, 2016, excluding unamortized debt issue costs, was $268.2 million, compared to $277.1 million outstanding at December 31, 2015. The March 31, 2016 total long-term debt amount includes $10.4 million of unrealized foreign exchange on U.S. dollar denominated debt as well as $6.6 million in gross partnership debt, of which Savanna's proportionate share is approximately 50%.

In Q1 2016, Savanna amended the credit agreement governing its senior secured revolving credit facility. The amendment, among other things, reduced the size of the total facility from $250 million to $150 million, restricted the Company's ability to make dividend payments or share buy-backs until February 2018, and amended certain financial covenant thresholds to provide Savanna with increased financial flexibility throughout 2016 and 2017. The reduction in the size of the facility will also lower stand-by costs going forward on the undrawn $100 million, $50 million of which was inaccessible due to terms under the Company's trust indenture related to its senior unsecured notes. The total amount drawn on this facility at March 31, 2016 was $91.2 million. As of the date of this release, the Company had approximately $80.6 million drawn on the total senior secured revolving credit facility, leaving substantial availability under the facility.

Savanna's total debt position at March 31, 2016, net of cash, was $265.5 million compared to $275 million at December 31, 2015. Savanna's total debt, net of cash as of the date of this release is approximately $251.4 million.

Financial Highlights

The following is a summary of selected financial information of the Company:

(Stated in thousands of dollars, except per share amounts) Three months ended
March 31 2016 2015 Change
OPERATING RESULTS
Revenue 93,737 154,552 (39 %)
Operating expenses 65,683 108,409 (39 %)
Operating margin(1) 28,054 46,143 (39 %)
Operating margin %(1) 30 % 30 %
EBITDAS(1) 20,252 29,815 (32 %)
Attributable to shareholders of the Company 19,722 28,813 (32 %)
Per share: basic 0.22 0.32 (31 %)
Adjusted EBITDAS(1) 22,110 38,297 (42 %)
Attributable to shareholders of the Company 21,580 37,295 (42 %)
Per share: basic 0.24 0.41 (41 %)
Net earnings (loss) (10,113 ) 10,174 (199 %)
Attributable to shareholders of the Company (10,067 ) 10,025 (200 %)
Per share: basic (0.11 ) 0.11 (200 %)
Basic weighted average shares outstanding (000s) 90,251 90,225 0 %
Diluted weighted average shares outstanding (000s) 90,251 90,225 0 %
CASH FLOWS
Operating cash flows(1) 18,367 26,236 (30 %)
Per share: basic 0.20 0.29 (31 %)
Acquisition of property and equipment 2,427 35,997 (93 %)
Proceeds on disposal of assets 2,345 13,596 (83 %)
Dividends paid - 2,244 (100 %)
Dividends declared - 2,708 (100 %)
Per share: basic - 0.03 (100 %)
FINANCIAL POSITION AT Mar. 31 Dec. 31
2016 2015
Working capital(1) 37,760 35,691 6 %
Property and equipment 741,691 776,574 (4 %)
Total assets 841,046 879,146 (4 %)
Long-term debt, including the current portion thereof 268,194 277,081 (3 %)
Total debt, net of cash(1) 265,507 275,020 (3 %)

NOTES:

  1. Operating margin, operating margin percentage, EBITDAS, adjusted EBITDAS and operating cash flows are not recognized measures under IFRS, and are unlikely to be comparable to similar measures presented by other companies. Management believes that, in addition to net earnings, the measures described above are useful as they provide an indication of the results generated by the Company's principal business activities both prior to and after consideration of how those activities are financed, the effect of foreign exchange, and how the results are taxed in various jurisdictions. Similarly, working capital and total debt, net of cash are not recognized measures under IFRS; however, management believes that these measures are useful as they provide an indication of the Company's liquidity.

    • Operating margin is defined as revenue less operating expenses.

    • Operating margin percentage is defined as revenue less operating expenses divided by revenue.

    • EBITDAS is defined as earnings before finance expenses, income taxes, depreciation and share-based compensation and excludes other expenses (income).

    • Adjusted EBITDAS is defined as EBITDAS before severance costs.

    • Operating cash flows are defined as cash flows from operating activities before changes in non-cash working capital.

    • Working capital is defined as total current assets less total current liabilities excluding the current portions of long-term debt.

    • Total debt, net of cash is defined as total long-term debt, including the current portion thereof but excluding unamortized debt issue costs, plus bank indebtedness, net of cash.

  2. Certain industry related terms used in this press release are defined or clarified as follows:

    • Savanna reports its drilling rig utilization based on spud to release time for its operational drilling rigs and excludes stand-by, moving, rig up and tear down time, even though revenue may be earned during this time. Source of Canadian industry average utilization figures: Canadian Association of Oilwell Drilling Contractors. Industry utilization figures are calculated in the same manner as the Company. To segregate industry utilization by rig type, industry totals by well depth range are used.

    • Savanna reports its service rig utilization for its operational service rigs in North America based on standard operating hours of 3,650 per rig per year. Utilization for Savanna's service rigs in Australia is calculated based on standard operating hours of 8,760 per rig per year to reflect 24 hour operating conditions in that country and excludes stand-by time, even though revenue may be earned during this time. Reliable industry average utilization figures, specific to well servicing, are not available.

Segmented Results - Contract Drilling

The following is a summary of selected financial and operating information of the Company's contract drilling segment:

(Stated in thousands of dollars, except revenue per day) Three Months Ended
March 31 2016 2015 Change
Revenue $ 51,484 $ 108,482 (53 %)
Operating expenses $ 36,910 $ 72,013 (49 %)
Operating margin(1) $ 14,574 $ 36,469 (60 %)
Operating margin % 28 % 34 %
Billable days 2,082 4,221 (51 %)
Revenue per billable day $ 24,728 $ 25,701 (4 %)
Operating (spud to release) days 1,719 3,356 (49 %)
Wells drilled 405 486 (17 %)
Meters drilled 567,292 762,515 (26 %)
Meters drilled per well 1,401 1,569 (11 %)

FIRST QUARTER RESULTS

Overall contract drilling revenue decreased relative to Q1 2015, as a result of lower activity levels in Canada and the U.S., and lower day rates in Canada. Billable days in the U.S. decreased 71% compared to Q1 2015. In Canadian long-reach drilling, billable days were down 42% while day rates were 25% lower compared to Q1 2015, and in Canadian shallow drilling, billable days decreased by 51% while day rates were 18% lower. The decrease in activity and pricing is reflective of the significant decline in oil and natural gas prices throughout 2015 and into 2016, as well as the negative outlook for the oil and natural gas industry, and the resulting decrease in customer drilling activity. Given the activity and pricing declines, cost control and restructuring was a major focus of the Company over the last year. Rig operating costs were lower on a per day basis compared to Q1 2015, while field office costs, excluding severance costs, were $3.1 million lower in the quarter. Severance costs related to contract drilling totaled $0.9 million in Q1 2016, compared to $1.2 million Q1 2015.

The following summarizes the operating results in the first quarter of 2016 and 2015 by type of rig or geographic area. Long-reach drilling in Canada includes the Company's telescoping double drilling rigs, TDS-3000™ drilling rigs and TDS-2200 drilling rigs.

(Stated in thousands of dollars) Long-reach Shallow
Drilling Drilling Drilling Drilling
Q1 2016 Canada Canada U.S. Australia Total
Revenue 18,773 8,546 12,049 12,116 51,484
Operating margin(1) 3,176 3,475 5,233 2,690 14,574
Operating margin %(1) 17 % 41 % 43 % 22 % 28 %
Revenue excluding cost recoveries 16,945 8,293 10,978 10,868 47,084
Operating margin(1) 3,176 3,475 5,233 2,690 14,574
Operating margin %(1) 19 % 42 % 48 % 25 % 31 %
Average number of rigs deployed 52 16 28 5 101
Utilization %(2) 19 % 24 % 11 % 48 % 19 %
(Stated in thousands of dollars) Long-reach Shallow
Drilling Drilling Drilling Drilling
Q1 2015 Canada Canada U.S. Australia Total
Revenue 43,700 21,445 32,447 10,891 108,483
Operating margin(1) 12,021 10,083 11,386 2,981 36,471
Operating margin %(1) 28 % 47 % 35 % 27 % 34 %
Revenue excluding cost recoveries 38,416 21,222 29,553 10,700 99,891
Operating margin(1) 12,021 10,083 11,386 2,981 36,471
Operating margin %(1) 31 % 48 % 39 % 28 % 37 %
Average number of rigs deployed 52 16 27 5 100
Utilization %(2) 33 % 47 % 43 % 25 % 37 %

Segmented Results - Oilfield Services

The following is a summary of selected financial and operating information of the Company's oilfield services segment:

(Stated in thousands of dollars, except revenue per hour) Three Months Ended
March 31 2016 2015 Change
Revenue $ 42,929 $ 46,632 (8 %)
Operating expenses $ 29,449 $ 37,005 (20 %)
Operating margin(1) $ 13,480 $ 9,627 40 %
Operating margin % 31 % 21 %
Billable hours - well servicing 40,615 43,220 (6 %)
Revenue per billable hour - well servicing $ 900 $ 870 3 %
Operating hours - well servicing 30,396 35,789 (15 %)

FIRST QUARTER RESULTS

Operating margin for Savanna's oilfield services division in Q1 2016 increased relative to Q1 2015, despite a decrease in revenue in the same respective periods. The revenue decrease was driven by a 27% decrease in operating hours and a 19% decrease in per hour revenue in Canadian well servicing, as well as a 23% decrease in operating hours and an 11% decrease in per hour revenue in U.S. well servicing. These decreases were partially offset by a 29% increase in billable hours in Australia well servicing. In Canada and the U.S., the decrease in activity is reflective of the significant decline in oil and natural gas prices throughout 2015 and into 2016, and resulted in lower overall operating margins being generated by the Company in North America. In Australia, the eight new rigs added in late 2014 and early 2015 contributed to the $4.5 million, or 88%, increase in operating margin in Q1 2016 compared to Q1 2015, which more than offset the operating margin declines in North America. A decrease in severance costs also positively impacted overall oilfield services operating margin in Q1 2016 relative to Q1 2015. Severance costs related to oilfield services totaled $0.9 million in Q1 2016, compared to $2.3 million in Q1 2015.

The following summarizes the operating results by geographic area:

(Stated in thousands of dollars)
Q1 2016 Canada U.S. Australia Total
Revenue 11,224 4,988 26,717 42,929
Operating margin(1) 2,369 1,518 9,593 13,480
Operating margin %(1) 21 % 30 % 36 % 31 %
Average number of rigs deployed - well servicing 57 18 12 87
Utilization % - well servicing(2) 27 % 40 % 38 % 31 %
(Stated in thousands of dollars)
Q1 2015 Canada U.S. Australia Total
Revenue 18,595 7,289 20,748 46,632
Operating margin(1) 1,419 3,111 5,097 9,627
Operating margin %(1) 8 % 43 % 25 % 21 %
Average number of rigs deployed - well servicing 65 18 12 95
Utilization % - well servicing(2) 33 % 53 % 31 % 42 %

Outlook

In the first quarter of 2016, Savanna faced extremely challenging industry conditions, particularly in North America, as the significant decline in oil and natural gas prices throughout 2015 and into 2016, reduced industry activity levels dramatically. During this period, Savanna experienced its lowest first quarter utilization levels in North America in its history, as well as significant year-over-year pricing declines. The impact of these decreases was partially alleviated by the fundamental structural changes made to the Company in 2015 and, combined with other cost control initiatives, allowed Savanna to maintain operating margin and adjusted EBITDAS percentages relative to Q1 2015, despite the significant revenue and activity declines. Savanna has continued to reduce costs in 2016 and will continue to align its business with the variable nature of the oilfield services industry. Annualized field office and general and administrative cost savings, from Savanna's cost control and restructuring efforts, are now expected to be nearly $58 million relative to the Company's 2014 exit run-rate.

Looking forward, the remainder of 2016 will continue to be challenging for Savanna and the oilfield services industry as a whole. Based on continuing low oil prices, persistent low natural gas prices, and the uncertain duration of the current low price environment, oil and gas companies have indicated that they have limited visibility into what their spending levels will be in the second half of 2016. North American drilling and service rig activity to date in the second quarter of 2016, is down significantly compared to 2015 and is expected to remain muted through at least Q3 2016. The Australian liquefied natural gas industry is also not immune to global commodity price pressures; and although Savanna's take or pay contract status on the majority of its rigs in Australia will help mitigate the impact of North American activity reductions in 2016, certain of these contracts begin rolling over in Q2. In Q1 2016, Savanna had 15 of 17 rigs earning revenue under contract in Australia and that number will decrease to 11 in Q2 2016. Negotiations with respect to contracting these rigs, with both existing and new customers, have begun and Savanna believes it is in a strong competitive position to re-contract its drilling and service rigs in Australia. In order to mitigate the extent of the operating margin decreases as rigs come off contract, Savanna has reduced its operating and overhead staff in Australia. The majority of severance costs incurred by the Company in Q1 2016 related to Australia. The resultant decrease in costs should allow Savanna to generate consistent operating margins per rig earning revenue in Australia, despite the decrease in the number of rigs earning revenue in Australia post-Q1. The contract on one of Savanna's Velox triple drilling rigs in the U.S. also ends in Q2 2016. Savanna has found work for the Velox triple drilling rig, albeit at a lower rate than previously.

Management believes that the structural changes Savanna underwent in 2015, and the reduced overall cost structure have the Company positioned to face reduced activity levels through 2016 and beyond. In addition, during the quarter, Savanna amended the key financial covenants related to its senior secured revolving credit facility, which provide Savanna with increased financial flexibility through to the end of 2017.

Savanna remains committed to its shareholders and debtholders, with a focus on managing its balance sheet and costs in all aspects of its business and leveraging its assets to maintain and gain market share. As a result of the measures already undertaken and others currently in progress, Savanna believes that it has taken the steps necessary to navigate through the current downturn. When industry conditions improve, management believes that Savanna will be in an excellent position to capitalize on a recovery utilizing its competitive cost structure, experienced management team, and its proven ability to quickly adapt to changing circumstances. These core competencies will be deployed utilizing the Company's significant footprint in three countries that should have strong participation in an eventual recovery of oil and gas market fundamentals.

See "Cautionary Statement Regarding Forward-Looking Information and Statements".

Cautionary Statement Regarding Forward-Looking Information and Statements

Certain statements and information contained in this press release including statements related to the Company's expectation that annualized field office and general and administrative cost savings will be nearly $58 million relative to the Company's 2014 exit run-rate, expectations of low activity levels for the remainder of 2016 and its effect on the oilfield services industry and Savanna, expectations of muted activity levels in North America through at least Q3 2016, the expectation that the Company's take or pay contract status on the majority of its rigs in Australia will help mitigate the impact of North American activity reductions in 2016, the belief that the Company is in a strong competitive position to re-contract its drilling and service rigs in Australia, the expectation that the Company should generate consistent operating margins per rig earning revenue in Australia, despite the decrease in the number of rigs earning revenue in Australia post-Q1, the impact of the structural changes undertaken by Savanna in 2015, the expectation that the Company has taken the steps necessary to navigate through the current downturn and its ability to capitalize on an eventual improvement oil and gas industry conditions, and statements that contain words such as "could", "should", "can", "anticipate", "expect", "believe", "will", "may", "likely", "estimate", "predict", "potential", "continue", "maintain", "retain", "grow", and similar expressions and statements relating to matters that are not historical facts constitute "forward-looking information" within the meaning of applicable Canadian securities legislation and "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995.

These statements are based on certain assumptions and analysis made by the Company in light of its experience and its perception of historical trends, current conditions and expected future developments as well as other factors it believes are appropriate in the circumstances. In particular, the Company's expectation that annualized field office and general and administrative cost savings will be nearly $58 million relative to the Company's 2014 exit run-rate is premised on the Company's actual Q1 2016 field office and general and administrative costs relative to that in Q4 2014. The Company's expectation of low activity levels for the remainder of 2016 and its effect on the oilfield services industry and Savanna, its expectations of muted activity levels in North America through at least Q3 2016, and its expectation that the Company's take or pay contract status on the majority of its rigs in Australia will help mitigate the impact of North American activity reductions in 2016, are premised on industry and commodity price estimates, actual results experienced to date in 2016, customer contracts and commitments, the Company's expectations for its customers' capital budgets, the status of current negotiations with its customers, and the number of contracted rigs currently deployed in Australia and North America. The Company's belief that it is in a strong competitive position to re-contract its drilling and service rigs in Australia is premised on current negotiations and discussions with its customers and potential new customers. The Company's expectation that it should generate consistent operating margins per rig earning revenue in Australia, despite the decrease in the number of rigs earning revenue in Australia post-Q1 is premised on preliminary budgets and forecasts. The Company's expectation of the impact of the structural changes undertaken by Savanna in 2015 is premised on cost reductions realized to date related thereto. The Company's expectation that it has taken the steps necessary to navigate through the current downturn and its ability to capitalize on an eventual improvement oil and gas industry conditions is premised on operational improvements and cost and debt reductions realized in 2015 and to date in 2016. Whether actual results, performance or achievements will conform to the Company's expectations and predictions is subject to a number of known and unknown risks and uncertainties which could cause actual results to differ materially from the Company's expectations. Such risks and uncertainties include, but are not limited to: fluctuations in the price and demand for oil and natural gas; fluctuations in the level of oil and natural gas exploration and development activities; fluctuations in the demand for well servicing, oilfield rentals and contract drilling; the effects of weather conditions on operations and facilities; the existence of competitive operating risks inherent in well servicing, oilfield rentals and contract drilling; general economic, market or business conditions; changes in laws or regulations, including taxation, environmental and currency regulations; the lack of availability of qualified personnel or management; the other risk factors set forth under the heading "Risks and Uncertainties" in the Company's Management's Discussion and Analysis, and under the heading "Risk Factors" in the Company's Annual Information Form and other unforeseen conditions which could impact on the use of services supplied by the Company.

All of the forward-looking information and statements made in this press release are qualified by this cautionary statement and there can be no assurance that the actual results or developments anticipated by the Company will be realized or, even if substantially realized, that they will have the expected consequences to or effects on the Company or its business or operations. Except as may be required by law, the Company assumes no obligation to update publicly any such forward-looking information and statements, whether as a result of new information, future events, or otherwise.

Other

Savanna's full Q1 2016 report, including its management's discussion and analysis and condensed consolidated financial statements, is available on Savanna's website (www.savannaenergy.com) under the investor relations section and has also been filed on SEDAR at www.sedar.com.

Savanna will host a conference call for analysts, investors and interested parties on Wednesday, May 4, 2016 at 9:00 a.m. Mountain Time (11:00 a.m. Eastern Time) to discuss the Company's first quarter results. The call will be hosted by Chris Strong, Savanna's President and Chief Executive Officer and Dwayne LaMontagne, Executive Vice President and Chief Financial Officer.

If you wish to participate in this conference call, please call 1-888-892-3255 (please call 10 minutes ahead of time). A replay of the call will be available until May 17, 2016 by dialing 1-800-937-6305 and entering passcode 109582.

Savanna is a leading North American and Australian contract drilling and oilfield services company providing a broad range of drilling, well servicing and related services with a focus on fit for purpose technologies and industry-leading aboriginal relationships.

Contact Information

  • Savanna Energy Services Corp.
    Chris Strong
    President and Chief Executive Officer
    (403) 503-9990

    Savanna Energy Services Corp.
    Dwayne LaMontagne
    Executive Vice President and Chief Financial Officer
    (403) 503-9990
    www.savannaenergy.com