Calfrac Reports Strong Second Quarter 2025 Results

Core Insights - Calfrac Well Services Ltd. reported strong financial performance in the second quarter of 2025, with Adjusted EBITDA of C$77.0 million, a 39% increase from the first quarter, driven by improved utilization in North America and strong results in Argentina [2][4]. Financial Performance - Revenue for the second quarter of 2025 was C$402.3 million, a 6% decrease from the same quarter in 2024, primarily due to lower activity and pricing in North America, although offset by higher revenue in Argentina [10]. - Adjusted EBITDA increased to C$77.0 million from C$65.4 million in the second quarter of 2024, mainly due to larger operating scale in Argentina [10]. - Cash flows from operating activities surged to C$73.5 million from C$9.0 million in the second quarter of 2024, largely due to changes in non-cash working capital [10]. - Net income from continuing operations was C$15.3 million, or C$0.18 per share diluted, down from C$24.5 million or C$0.29 per share diluted in the same quarter of 2024 [10]. North America Operations - Revenue from North American operations decreased to C$260.0 million in Q2 2025 from C$333.5 million in Q2 2024, a 22% decline attributed to deferred completion programs and lower pricing [18]. - Adjusted EBITDA for North America was C$31.9 million, representing 12.3% of revenue, down from C$54.4 million or 16.3% of revenue in Q2 2024 [19]. - The number of fracturing jobs in North America decreased by 6% year-over-year, with a reduction in active pumping horsepower [13]. Argentina Operations - Revenue from Argentina operations increased by 54% to C$142.3 million in Q2 2025, driven by the deployment of a second unconventional fracturing fleet [26]. - Adjusted EBITDA in Argentina rose to C$48.6 million, with margins increasing to 34.1% from 15.8% in the same quarter of 2024, due to significant revenue growth and operational efficiencies [27]. - The company expects strong full-year financial results in Argentina, although activity levels may decline in the second half of the year due to budget exhaustion in the Vaca Muerta shale play [24]. Capital Expenditures and Debt Management - Capital expenditures for Q2 2025 were C$40.8 million, a 39% decrease from C$66.8 million in Q2 2024, including C$24.6 million for expansion capital in Argentina [32]. - The company amended its revolving credit facility to include a C$120.0 million Term Loan, providing additional flexibility for debt repayment [3][12]. Outlook - The company anticipates lower oil-weighted completion activity in North America due to geopolitical tensions and economic uncertainties, but expects natural gas completion activity to be slightly higher [14]. - In Argentina, the company plans to enhance its service offerings by adding in-house wireline capabilities and expects to continue benefiting from a stable peso and improved cash repatriation [25].