The Company is now working 15 of its 18 US based rigs and has secured a book of approximately 3,500 contracted days in 2020, primarily with major operators holding significant land positions in the
The Company announces annual results for the year ended
The Company's US operating segment started 2019 with 16 out of 17 rigs operating. However, demand began to fall near the end of the first quarter as many operators decreased capital budgets, which translated to a decline in activity for the industry and for AKITA and negatively affected earnings. Results in the US division were also impacted by AKITA executing its strategic plan to move rigs to more active basins in order to consolidate operations, which resulted in both short-term reductions in activity and one-time move costs. Despite this decline in activity, the Company's US division generated 72% of the Company's 2019 revenue, up from 45% in 2018.
In
CONSOLIDATED FINANCIAL HIGHLIGHTS
United States Drilling Division
Activity in the US totaled 3,747 operating days in 2019 compared to 1,783 in 2018. This 110% increase in operating days is attributable to the drilling rigs acquired through the Xtreme acquisition working for the Company for a full year in 2019, as opposed to 2018 where the acquired rigs were only included from
Canadian Drilling Division
Activity in
FURTHER INFORMATION
This news release shall be used as preparation for reading the full disclosure documents. AKITA's audited consolidated financial statements and management's discussion and analysis for the year ended
NON-GAAP ITEMS
This news release references Non-GAAP (Generally Accepted Accounting Principles) items. Revenue per operating day, operating and maintenance expense per operating day, adjusted revenue, adjusted operating and maintenance expense, EBITDA and adjusted funds flow from operations are all considered Non-GAAP items. Management feels that these Non-GAAP items are useful in assessing the Company's performance. These terms do not have standardized meanings prescribed under International Financial Reporting Standards (IFRS) and may not be comparable to similar measures used by other companies.
FORWARD-LOOKING INFORMATION
Certain statements contained in this news release may constitute forward-looking information. Forward-looking information is often, but not always, identified by the use of words such as 'anticipate', 'plan', 'estimate', 'expect', 'may', 'will', 'intend', 'should', and similar expressions.
Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information.
The Company's actual results could differ materially from those anticipated in this forward-looking information as a result of regulatory decisions, competitive factors in the industries in which the Company operates, prevailing economic conditions, and other factors, many of which are beyond the control of the Company.
The Company believes that the expectations reflected in the forward-looking information are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking information should not be unduly relied upon.
Any forward-looking information contained in this news release represents the Company's expectations as of the date hereof, and is subject to change after such date. The Company disclaims any intention or obligation to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required by applicable securities legislation.
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