Fourth Quarter 2022 Operating Results:
- Fourth quarter revenue increased by
$19.4 million or 47%, to$60.8 million in 2022 as compared to$41.4 million in the fourth quarter of 2021. Contract drilling revenue totalled$43.2 million in the fourth quarter of 2022, an increase of$18.1 million or 72%, compared to$25.1 million in the fourth quarter of 2021. Production services revenue was$17.8 million for the three months endedDecember 31, 2022 , an increase of$1.4 million or 8%, as compared to$16.4 million in the same period of the prior year. In the fourth quarter of 2022, revenue was positively impacted by improved pricing compared to the fourth quarter of 2021 as described below: - In
Canada , Operating Days of 928 days in the fourth quarter of 2022 were down 12 (or 1%) compared to 940 days in the fourth quarter of 2021, resulting in drilling rig utilization of 28% in the fourth quarter of 2022 compared to 21% in the same period of the prior year. In 2022, the Company deregistered 13 drilling rigs, all of which can be reactivated at a later date, which increased the drilling rig utilization percentage.The Canadian Association of Energy Contractors ("CAOEC") industry average utilization of 40%1 for the fourth quarter of 2022 represented an increase of 1,000 basis points ("bps") compared to the CAOEC industry average utilization of 30% in the fourth quarter of 2021. Revenue per Operating Day averaged$33,923 in the fourth quarter of 2022, an increase of 41% compared to the same period of the prior year, mainly due to improved pricing, rig upgrades, and inflationary pressures on operating costs, including higher CAOEC industry wages and fuel charges that are passed through to the customer; - In
the United States , drilling rig utilization averaged 40% in the fourth quarter of 2022, compared to 14% in the fourth quarter of 2021, with Operating Days improving from 100 days in the fourth quarter of 2021 to 293 days in the same period of 2022. Average active industry rigs of 760 in the fourth quarter of 2022 were 36% higher compared to the fourth quarter of 2021. Revenue per Operating Day for the fourth quarter of 2022 averagedUS$29,439 , a 47% increase compared toUS$20,092 in the same period of the prior year, mainly due to improved pricing and changes in rig mix, as there was more activity with the Company's higher spec rigs which command higher day rates; and - In
Canada , service rig utilization of 38% in the fourth quarter of 2022 was lower than 46% in the same period of the prior year, mainly due to very cold weather inDecember 2022 , which caused some customers to defer their capital programs into 2023. Revenue per Service Hour averaged$991 in the fourth quarter of 2022 and was 27% higher than the fourth quarter of 2021, due to improved pricing and inflationary pressures on operating costs, including higher CAOEC industry wages and fuel charges that are passed through to the customer - Administrative expenses increased by
$1.3 million or 52%, to$3.8 million in the fourth quarter of 2022, as compared to$2.5 million in the fourth quarter of 2021, due to higher employee related costs along with inflationary cost increases associated with improved industry activity. - The Company generated a net loss of
$3.1 million in the fourth quarter of 2022 ($0.09 net loss per basic common share) as compared to a net loss of$6.0 million in the same period in 2021 ($0.90 net loss per basic common share). The change can mainly be attributed to a$3.2 million increase in Adjusted EBITDA, a$1.7 million decrease in finance costs due to the lower total debt balance, offset partially a$0.9 million increase in income tax expense, a$0.8 million increase in stock based compensation expense, a$0.2 million increase in the loss on asset disposals and a$0.2 million increase in depreciation expense due to property and equipment additions. - Adjusted EBITDA of
$12.2 million in the fourth quarter of 2022 was$3.2 million , or 36%, higher compared to$9.0 million in the fourth quarter of 2021. Adjusted EBITDA was higher due to improved activity in the US and higher pricing inCanada and in the US, and$1.0 million related to the receipt of the Employee Retention Credit in the US ("ERC") which was offset by one-time costs of$1.6 million related to reactivating certain drilling rigs. - Fourth quarter additions to property and equipment of
$7.7 million in 2022 compared to$2.1 million in the fourth quarter of 2021, consisting of$6.0 million of expansion capital and$1.7 million of maintenance capital, as the Company continued its rig upgrade program initiated in 2022.
1 Source: CAOEC, monthly Contractor Summary. |
2022 Operating Results:
- Revenue for the year ended
December 31, 2022 increased by$68.6 million or 52%, to$200.3 million as compared to$131.7 million for the year endedDecember 31, 2021 . In the contract drilling segment, revenue totalled$129.5 million for the year endedDecember 31, 2022 , an increase of$52.7 million or 69%, compared to$76.8 million in the same period in 2021. In the production services segment, revenue totalled$71.3 million for the year endedDecember 31, 2022 , as compared to$55.5 million in the same period of the prior year, an increase of$15.8 million or 28%. Revenue was positively impacted by improved pricing in 2022, compared to 2021 as described below: - In
Canada , there were 3,241 Operating Days for the year endedDecember 31, 2022 , compared to 3,124 Operating Days for the year endedDecember 31, 2021 , resulting in drilling rig utilization of 24% in 2022, compared to 18% in 2021. In 2022, the Company deregistered 13 drilling rigs, all of which can be reactivated at a later date, which increased the drilling rig utilization percentage. The CAOEC industry average utilization of 35%2 for the year endedDecember 31, 2022 represented an increase of 1,000 bps compared to the CAOEC industry average of 25% for the year endedDecember 31, 2021 . Revenue per Operating Day averaged$29,698 for the year endedDecember 31, 2022 , an increase of 35% compared to the prior year, mainly due to improved pricing, rig upgrades, and inflationary pressures on operating costs, including higher CAOEC industry wages and fuel charges that are passed through to the customer; - In
the United States , drilling rig utilization averaged 33% for the year endedDecember 31, 2022 , compared to 13% in the prior year, with Operating Days improving from 387 days in 2021 to 976 days in 2022. Average active industry drilling rigs of 723 in 2022 were 56% higher compared to 2021. Revenue per Operating Day for the year endedDecember 31, 2022 averagedUS$25,927 , a 56% increase compared toUS$16,615 for the year endedDecember 31, 2021 . The increases in pricing and activity were mainly due to improved market conditions and changes in rig mix, as there was more activity with the Company's higher spec rigs which command higher day rates; and - In
Canada , service rig utilization of 41% for the year endedDecember 31, 2022 was consistent with the prior year, as overall activity improved, but was constrained by field crew shortages across the industry and very cold weather in the first and fourth quarters of 2022. Revenue per Service Hour averaged$943 for the year endedDecember 31, 2022 and was 28% higher than the prior year, as a result of improved market conditions which led to higher hourly rates, due to inflationary pressures on operating costs, including higher CAOEC industry wages and fuel charges that are passed through to the customer. Higher pricing led to production services revenue totaling$71.3 million for the year endedDecember 31, 2022 , an increase of$15.8 million or 28%, as compared to the prior year. - Administrative expenses increased by
$3.2 million or 30%, to$13.9 million for the year endedDecember 31, 2022 , as compared to$10.7 million in the prior year, due to lower receipts related to government subsidy programs, as both theCanada Emergency Wage Subsidy andCanada Emergency Rent Subsidy programs ended in 2021 and were replaced with smaller government subsidy programs. - Net income of
$29.3 million for the year endedDecember 31, 2022 ($1.24 net income per basic common share) compared to a net loss of$35.8 million in the prior year ($5.36 net loss per basic common share). The change can mainly be attributed to a$49.4 million gain on debt forgiveness related to the Restructuring Transaction described below, a$16.9 million increase in Adjusted EBITDA, a$5.3 million decrease in finance costs, and a$1.9 million decrease in depreciation expense due to certain assets being fully depreciated in the period, offset partially by a$6.3 million increase in income tax expense. - Adjusted EBITDA of
$39.9 million for the year endedDecember 31, 2022 was$16.9 million , or 73%, higher compared to$23.0 million in the prior year. Adjusted EBITDA was higher due to improved activity in the US and higher pricing inCanada and the US, offset partially by$6.9 million lower receipts related to COVID-19 related government subsidies, as both theCanada Emergency Wage Subsidy andCanada Emergency Rent Subsidy programs ended in 2021, and$2.0 million in one-time startup costs associated with reactivating certain rigs in the Company's US rig fleet. - Year to date 2022 additions to property and equipment of
$34.2 million compared to$6.9 million in the same period of 2021, consisting of$28.1 million of expansion capital and$6.1 million of maintenance capital, as the Company initiated its rig upgrade program in 2022. - On
May 18, 2022 , Western completed a recapitalization and debt restructuring transaction to restructure a portion of its outstanding debt and raise new capital (the "Restructuring Transaction"). - As part of the Restructuring Transaction, Western completed a rights offering to holders of its common shares on
April 19, 2022 to subscribe for additional common shares (the "Rights Offering"), resulting in the issuance of an aggregate of 16,407,229 (1,968,867,475 pre-consolidation) common shares in the capital of the Company at a price of$1.92 per share for aggregate gross proceeds of approximately$31.5 million . $100.0 million of the principal amount owing toAlberta Investment Management Corporation ("AIMCo"), the lender under Western's second lien term loan facility (the "Second Lien Facility"), was converted into 16,666,667 (2,000,000,000 pre-consolidation) common shares at a conversion price of$6.00 per common share (the "Debt Exchange"), resulting in AIMCo holding approximately 49.7% of the common shares following closing of the Restructuring Transaction. In addition,$10.0 million of the proceeds from the Rights Offering was paid by Western to AIMCo to further reduce the principal amount outstanding under the Second Lien Facility, with the remaining$21.5 million of the proceeds, net of expenses of the Restructuring Transaction, used to upgrade the Company's drilling rig fleet.- Concurrent with the Debt Exchange and the repayment of
$10.0 million of the principal amount of the Second Lien Facility, the Second Lien Facility was amended to provide for an extension of the maturity of the remaining principal amount of the Second Lien Facility fromJanuary 31, 2023 toMay 18, 2026 ; and an increase in the interest rate from 7.25% to 8.5%. - In addition, the senior secured credit facilities (the "Credit Facilities") of the Company were amended, including amendments to (a) extend the maturity of the Credit Facilities from
July 1, 2022 toMay 18, 2025 , (b) reduce the amount available under the Credit Facilities from$60.0 million to$45.0 million , and (c) revise certain financial covenants.
Details on the Restructuring Transaction are contained in Western's short form prospectus dated
- On
June 13, 2022 , Western was the first drilling and well servicing contractor to become Climate Smart certified by the emissions reduction evaluation firmRadicle Group Inc. ("Radicle") aBMO Financial Group company. As part of Western's journey through Radicle's intensive Climate Smart greenhouse gas ("GHG") inventory training and certification process, the Company has taken on the challenge of documenting, reporting, and creating an action plan to reduce its climate footprint.
Using 2018 as its base year, Western completed four annual organizational GHG inventories, which account for direct operating emissions (Scope 1), indirect emissions from purchased electricity (Scope 2) and indirect emissions not counted in the previous scopes (Scope 3) to be Climate Smart certified through to 2021. As contract drilling is part of its core business, Western believes that annual meters drilled is a key operating metric and as an intensity metric, tonnes of CO2 per meter drilled (tCO2/m) can be used to measure the Company's environmental value. Through the certification process, Western identified a 30% reduction in CO2 intensity per meter drilled in 2021 compared to 2018 base year, due to regularly increasing operational productivity and the commitment to retrofitting alternative fuel technology on our rigs. The Company's 44% increase in meters drilled per day since 2018, fuel efficient rig design, and the continuous adoption of dual fuel technology are tangible ways that Western continues to help its customers meet their Scope 1 reduction targets. The Company remains committed to advancing its environmental, social, and governance reporting and providing solutions that are impactful to our stakeholders and the environment. - On
August 2, 2022 , Western completed a share consolidation of the Company's issued and outstanding common shares (the "Consolidation") at a ratio of one post-consolidation common share for every 120 pre-consolidation common shares. The Consolidation reduced the number of issued and outstanding common shares of the Company from 4,060,663,214 common shares to 33,838,886 common shares, and proportionate adjustments were made to the Company's outstanding restricted share units, options and the weighted average number of shares.
2 Source: CAOEC, monthly Contractor Summary. |
Selected Financial Information | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
(stated in thousands, except share and per share amounts) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three months ended | Year ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Highlights | 2022 | 2021 | Change | 2022 | 2021 | Change | ||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | 60,792 | 41,363 | 47 % | 200,344 | 131,678 | 52 % | ||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA(1) | 12,233 | 8,950 | 37 % | 39,921 | 23,047 | 73 % | ||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA as a percentage of revenue(1) | 20 % | 22 % | (9 %) | 20 % | 18 % | 11 % | ||||||||||||||||||||||||||||||||||||||||||||||||
Cash flow from operating activities | 6,502 | 8,236 | (21 %) | 28,541 | 16,631 | 72 % | ||||||||||||||||||||||||||||||||||||||||||||||||
Additions to property and equipment | 7,708 | 2,107 | 266 % | 34,228 | 6,866 | 399 % | ||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | (3,095) | (6,021) | (49 %) | 29,320 | (35,812) | (182 %) | ||||||||||||||||||||||||||||||||||||||||||||||||
– basic and diluted net income (loss) per share(2) | (0.09) | (0.90) | (90 %) | 1.24 | (5.36) | (123 %) | ||||||||||||||||||||||||||||||||||||||||||||||||
Weighted average number of shares(2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
– basic | 33,841,318 | 6,701,745 | 405 % | 23,581,155 | 6,677,829 | 253 % | ||||||||||||||||||||||||||||||||||||||||||||||||
– diluted | 33,841,318 | 6,701,745 | 405 % | 23,581,735 | 6,677,829 | 253 % | ||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding common shares as at period end | 33,841,318 | 764,220 | 4,328 % | 33,841,318 | 764,220 | 4,328 % |
(1) See "Non-IFRS measures" included in this press release. (2) On |
Three months ended December 31 | Year ended | ||||||
Operating Highlights(3) | 2022 | 2021 | Change | 2022 | 2021 | Change | |
Contract Drilling | |||||||
Canadian Operations: | |||||||
Contract drilling rig fleet: | |||||||
– Average active rig count | 10.1 | 10.2 | (1 %) | 8.9 | 8.6 | 3 % | |
– End of period | 36 | 49 | (27 %) | 36 | 49 | (27 %) | |
Operating Days | 928 | 940 | (1 %) | 3,241 | 3,124 | 4 % | |
Revenue per Operating Day | 33,923 | 24,014 | 41 % | 29,698 | 21,931 | 35 % | |
Drilling rig utilization | 28 % | 21 % | 33 % | 24 % | 18 % | 33 % | |
CAOEC industry average utilization(4) | 40 % | 30 % | 33 % | 35 % | 25 % | 40 % | |
Average meters drilled per well | 7,412 | 5,986 | 24 % | 6,406 | 5,592 | 15 % | |
Average Operating Days per well | 14.8 | 11.6 | 28 % | 12.8 | 11.8 | 8 % | |
United States Operations: | |||||||
Contract drilling rig fleet: | |||||||
– Average active rig count | 3.2 | 1.1 | 191 % | 2.7 | 1.1 | 145 % | |
– End of period | 8 | 8 | - | 8 | 8 | - | |
Operating Days | 293 | 100 | 193 % | 976 | 387 | 152 % | |
Revenue per Operating Day (US$) | 29,439 | 20,092 | 47 % | 25,927 | 16,615 | 56 % | |
Drilling rig utilization | 40 % | 14 % | 186 % | 33 % | 13 % | 154 % | |
Average meters drilled per well | 3,001 | 3,807 | (21 %) | 3,450 | 3,305 | 4 % | |
Average Operating Days per well | 13.7 | 14.8 | (7 %) | 11.7 | 14.8 | (21 %) | |
Production Services | |||||||
Well servicing rig fleet: | |||||||
– Average active rig count | 23.7 | 29.3 | (19 %) | 25.8 | 25.9 | - | |
– End of period | 65 | 63 | 3 % | 65 | 63 | 3 % | |
Service Hours | 15,443 | 19,046 | (19 %) | 67,077 | 67,323 | - | |
Revenue per Service Hour | 991 | 780 | 27 % | 943 | 735 | 28 % | |
Service rig utilization | 38 % | 46 % | (17 %) | 41 % | 41 % | - |
(3) See "Other Supplemental Financial Measures" and "Defined Terms" included in this press release. |
(4) Source: The CAOEC monthly Contractor Summary. The CAOEC industry average is based on Operating Days divided by total available drilling days. |
Financial Position at (stated in thousands) | December 31, 2022 | |||
Working capital(5) | 21,923 | 2,224 | 15,997 | |
Total assets | 475,708 | 456,003 | 495,625 | |
Long term debt | 126,527 | 226,884 | 237,633 |
(5) See "Other Supplemental Financial Measures" included in this press release. |
Business Overview
Western is an energy services company that provides contract drilling services in
Contract Drilling
Western markets a fleet of 44 drilling rigs specifically suited for drilling complex horizontal wells across
Western's marketed and owned contract drilling rig fleets are comprised of the following:
Year ended | |||||||
2022 | 2021 | ||||||
Rig class(1) | | US | Total | Canada | US | Total | |
Cardium | 11 | 1 | 12 | 23 | 2 | 25 | |
18 | 1 | 19 | 19 | - | 19 | ||
7 | 6 | 13 | 7 | 6 | 13 | ||
Total marketed drilling rigs(2) | 36 | 8 | 44 | 49 | 8 | 57 | |
Drilling rigs deregistered in the period(3) | 13 | - | 13 | - | - | - | |
Drilling rigs decommissioned in the period(4) | - | (1) | (1) | - | - | - | |
Drilling rig transfers | (1) | 1 | - | - | - | - | |
Total owned drilling rigs | 48 | 8 | 56 | 49 | 8 | 57 | |
Cardium | 23 | 1 | 24 | 23 | 2 | 25 | |
18 | 1 | 19 | 19 | - | 19 | ||
7 | 6 | 13 | 7 | 6 | 13 | ||
Total owned drilling rigs | 48 | 8 | 56 | 49 | 8 | 57 |
(1) See "Defined Terms" included in this press release. |
(2) Source: CAOEC Contractor Summary as at |
(3) Drilling rigs are registered with the CAOEC. A drilling rig can be deregistered if it is not actively being marketed, however these rigs can be reactivated at any time. |
(4) A decommissioned drilling rig cannot be reactivated into the Company's fleet as it has been disposed of through an asset sale or write-off. |
Production Services
Production services provides well servicing and oilfield equipment rentals in
Western's well servicing rig fleet is comprised of the following:
Owned well servicing rigs | Year ended | |
Mast type | 2022 | 2021 |
Single | 30 | 29 |
Double | 27 | 26 |
Slant | 8 | 8 |
Total owned well servicing rigs | 65 | 63 |
3 Source: CAOEC Contractor Summary as at |
Business Environment
Crude oil and natural gas prices impact the cash flow of Western's customers, which in turn impacts the demand for Western's services. The following table summarizes average crude oil and natural gas prices, as well as average foreign exchange rates, for the three months ended
Three months ended | Year ended | ||||||
2022 | 2021 | Change | 2022 | 2021 | Change | ||
Average crude oil and natural gas prices(1)(2) | |||||||
Crude Oil | |||||||
West Texas Intermediate (US$/bbl) | 82.64 | 77.19 | 7 % | 94.23 | 67.91 | 39 % | |
Western Canadian Select (CDN$/bbl) | 77.39 | 78.71 | (2 %) | 98.51 | 68.73 | 43 % | |
Natural Gas | |||||||
30 day Spot AECO (CDN$/mcf) | 5.43 | 4.92 | 10 % | 5.63 | 3.77 | 49 % | |
Average foreign exchange rates(2) | |||||||
US dollar to Canadian dollar | 1.36 | 1.26 | 8 % | 1.30 | 1.25 | 4 % | |
(1) See "Abbreviations" included in this press release. (2) Source: Sproule |
West Texas Intermediate on average improved by 7% and 39% for the three months and year ended
In
Outlook
In 2022, crude oil prices reached their highest levels since 2014, due to recovering demand as governments eased COVID-19 restrictions, the initiation of the Russian invasion of
Due to anticipated improved activity in 2023, as previously announced, Western's board of directors has approved a capital budget for 2023 of
5 Source: Baker Hughes Company, 2022 Rig Count monthly press releases. |
As at
Energy service activity in
Non-IFRS Measures and Ratios
Western uses certain financial measures in this press release which do not have any standardized meaning as prescribed by International Financial Reporting Standards ("IFRS"). These measures and ratios, which are derived from information reported in the consolidated financial statements, may not be comparable to similar measures presented by other reporting issuers. These measures and ratios have been described and presented in this press release to provide shareholders and potential investors with additional information regarding the Company. The non-IFRS measure and ratio used in this press release is identified and defined as follows:
Adjusted EBITDA
Earnings before interest and finance costs, taxes, depreciation and amortization, other non-cash items and one-time gains and losses ("Adjusted EBITDA") is a useful non-GAAP financial measure as it is used by management and other stakeholders, including current and potential investors, to analyze the Company's principal business activities prior to consideration of how Western's activities are financed and the impact of foreign exchange, income taxes and depreciation. Adjusted EBITDA provides an indication of the results generated by the Company's principal operating segments, which assists management in monitoring current and forecasting future operations, as certain non-core items such as interest and finance costs, taxes, depreciation and amortization, and other non-cash items and one-time gains and losses are removed. The closest IFRS measure would be net income (loss) for consolidated results.
Adjusted EBITDA as a percentage of revenue is a non-IFRS financial ratio which is calculated by dividing Adjusted EBITDA by revenue for the relevant period. Adjusted EBITDA as a percentage of revenue is a useful financial measure as it is used by management and other stakeholders, including current and potential investors, to analyze the profitability of the Company's principal operating segments.
The following table provides a reconciliation of net income (loss), as disclosed in the consolidated statements of operations and comprehensive income, to Adjusted EBITDA:
Three months ended | Year ended | ||||||
(stated in thousands) | 2022 | 2021 | 2022 | 2021 | |||
Net income (loss) | (3,095) | (6,021) | 29,320 | (35,812) | |||
Income tax expense (recovery) | (177) | (1,038) | 2,858 | (3,457) | |||
Income (loss) before income taxes | (3,272) | (7,059) | 32,178 | (39,269) | |||
Add (deduct): | |||||||
Gain on debt forgiveness | - | - | (49,357) | - | |||
Depreciation | 10,444 | 10,263 | 40,096 | 42,024 | |||
Stock based compensation | 850 | 34 | 1,985 | 253 | |||
Finance costs | 2,988 | 4,720 | 14,416 | 19,664 | |||
Other items | 1,223 | 992 | 603 | 375 | |||
Adjusted EBITDA | 12,233 | 8,950 | 39,921 | 23,047 | |||
Other Supplemental Financial Measures
In addition to the above non-IFRS measures, Western uses certain other supplemental financial measures in this press release, as described below:
Revenue per Operating Day: Calculated as total drilling revenue for both
Revenue per Service Hour: Calculated as total well servicing revenue divided by total Service Hours. This calculation represents the average hourly rate charged to Western's customers.
Working capital: Calculated as current assets less current liabilities as disclosed in the Company's annual consolidated financial statements.
Defined Terms
Average active rig count (contract drilling): Calculated as drilling rig utilization multiplied by the average number of drilling rigs in the Company's fleet for the period.
Average active rig count (production services): Calculated as service rig utilization multiplied by the average number of service rigs in the Company's fleet for the period.
Average meters drilled per well: Defined as total meters drilled divided by the number of wells completed in the period.
Average Operating Days per well: Defined as total Operating Days divided by the number of wells completed in the period.
Drilling rig utilization: Calculated based on Operating Days divided by total available days.
Operating Days: Defined as contract drilling days, calculated on a spud to rig release basis.
Service Hours: Defined as well servicing hours completed.
Service rig utilization: Calculated as total Service Hours divided by 217 hours per month per rig multiplied by the average rig count for the period as defined by the CAOEC industry standard.
Contract Drilling Rig Classifications
Cardium class rig: Defined as any contract drilling rig which has a total hookload less than or equal to 399,999 lbs (or 177,999 daN).
Abbreviations
- Barrel ("bbl");
- Basis point ("bps"): A 1% change equals 100 basis points and a 0.01% change is equal to one basis point;
Canadian Association of Energy Contractors ("CAOEC");- DecaNewton ("daN");
- International Financial Reporting Standards ("IFRS");
- Pounds ("lbs");
- Thousand cubic feet ("mcf"); and
Western Canadian Sedimentary Basin ("WCSB").
Forward-Looking Statements and Information
This press release contains certain forward-looking statements and forward-looking information (collectively, "forward-looking information") within the meaning of applicable Canadian securities laws, as well as other information based on Western's current expectations, estimates, projections and assumptions based on information available as of the date hereof. All information and statements contained herein that are not clearly historical in nature constitute forward-looking information, and words and phrases such as "may", "will", "should", "could", "expect", "intend", "anticipate", "believe", "estimate", "plan", "predict", "potential", "continue", or the negative of these terms or other comparable terminology are generally intended to identify forward-looking information. Such information represents the Company's internal projections, estimates or beliefs concerning, among other things, an outlook on the estimated amounts and timing of additions to property and equipment, anticipated future debt levels and revenues or other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. This 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.
In particular, forward-looking information in this press release includes, but is not limited to, statements relating to: the business of Western; industry, market and economic conditions and any anticipated effects on Western; commodity pricing; the future demand for the Company's services and equipment, in particular, the Company's expectations regarding improved activity in 2023; Western's expectations regarding prevailing customer preferences; the potential impact of the current conflict in
The material assumptions that could cause results or events to differ from current expectations reflected in the forward-looking information in this press release include, but are not limited to: demand levels and pricing for oilfield services; demand for crude oil and natural gas and the price and volatility of crude oil and natural gas; pressures on commodity pricing; the impact of inflation; the continued business relationships between the Company and its significant customers; crude oil transport, pipeline and LNG export facility approval and development; that all required regulatory and environmental approvals can be obtained on the necessary terms and in a timely manner, as required by the Company; liquidity and the Company's ability to finance its operations; the effectiveness of the Company's cost structure and capital budget; the effects of seasonal and weather conditions on operations and facilities; the competitive environment to which the various business segments are, or may be, exposed in all aspects of their business and the Company's competitive position therein; the ability of the Company's various business segments to access equipment (including spare parts and new technologies); global economic conditions and the accuracy of the Company's market outlook expectations for 2023 and in the future; the impact, direct and indirect, of the COVID-19 pandemic and geo-political events, including the war in
Although Western believes that the expectations and assumptions on which such forward-looking information is based on are reasonable, undue reliance should not be placed on the forward-looking information as Western cannot give any assurance that such will prove to be correct. By its nature, forward-looking information is subject to inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, volatility in market prices for crude oil and natural gas and the effect of this volatility on the demand for oilfield services generally; reduced exploration and development activities by customers and the effect of such reduced activities on Western's services and products; political, industry, market, economic, and environmental conditions in
The forward-looking statements and information contained in this news release are made as of the date hereof and Western does not undertake any obligation to update publicly or revise any forward-looking statements and information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws. Any forward-looking statements contained herein are expressly qualified by this cautionary statement.
SOURCE
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