Core Insights - Calfrac Well Services Ltd. reported financial results for Q3 and the first nine months of 2025, showing improvements in net income and cash flow despite a decline in revenue compared to the previous year [2][9][17]. Financial Performance - Adjusted EBITDA for Q3 2025 was $48.5 million, down 25% from $65.0 million in Q3 2024, while net income from continuing operations was $4.3 million compared to a loss of $6.7 million in the same quarter last year [2][17]. - Revenue for Q3 2025 was $323.4 million, a decrease of 25% from $430.1 million in Q3 2024, primarily due to lower activity in Argentina and a reduced operating footprint in North America [9][13]. - For the first nine months of 2025, revenue was $1.1 billion, down 8% from $1.2 billion in the same period of 2024, with North American operations particularly affected by extreme weather and lower commodity prices [9][22]. Operational Highlights - The company operated an average of 10 fracturing fleets in Q3 2025, down from 13 in Q3 2024, reflecting a strategic alignment with reduced oil-directed activity [20]. - In Argentina, revenue decreased by 39% to $85.8 million in Q3 2025, attributed to a slowdown in industry activity, while revenue for the first nine months increased by 18% to $370.3 million due to the commencement of a new fracturing fleet [25][30]. Debt Management and Capital Structure - The company successfully repatriated significant funds from Argentina, leading to a reduction in long-term debt during Q3 2025 [2][27]. - A rights offering was approved to raise $35 million, with major shareholders agreeing to purchase any unsubscribed shares, demonstrating confidence in the company's strategy [3][4]. Future Outlook - The company anticipates a decline in overall industry activity in North America heading into Q4 2025, with expectations for a moderate increase in oil-directed activity in 2026 [16][18]. - The completion of the Tier IV fleet modernization program positions the company well for future growth, particularly in the Vaca Muerta shale play in Argentina [19][26].

Core Insights - STEP Energy Services Ltd. reported a consolidated revenue of $227.2 million for Q3 2025, a decrease of 11% from $256.0 million in Q3 2024, but consistent with $228.0 million in Q2 2025 [5][26]. - The company achieved a net income of $6.8 million in Q3 2025, compared to a net loss of $5.5 million in Q3 2024, and an increase from $5.9 million in Q2 2025 [12][5]. - Adjusted EBITDA for Q3 2025 was $45.2 million, representing 20% of revenue, down from $49.4 million (19% of revenue) in Q3 2024 but up from $34.8 million (15% of revenue) in Q2 2025 [11][8]. - Free Cash Flow for Q3 2025 was $23.3 million, lower than $28.4 million in Q3 2024 but higher than $17.3 million in Q2 2025 [13][8]. Financial Review - Consolidated revenue for the nine months ended September 30, 2025, was $762.9 million, down 6% from $807.5 million in the same period of 2024 [26]. - The company reported total operating expenses of $194.6 million for Q3 2025, a decrease from $229.5 million in Q3 2024 [25]. - The net debt decreased to $36.3 million as of September 30, 2025, from $52.7 million at the end of 2024 [13][8]. Operational Review - Fracturing operating days decreased to 345 in Q3 2025 from 360 in Q3 2024, with proppant pumped down to 524,000 tonnes from 594,000 tonnes in the same period [4][10]. - Coiled tubing operating days were 1,260 in Q3 2025, down from 1,340 in Q3 2024 [4][10]. - The company operated six fracturing crews in Q3 2025, down from seven in the same period last year [27]. Market Outlook - The fourth quarter of 2025 is expected to start strong, with high utilization anticipated in the first half before slowing down due to annual capital program wind-downs [20]. - The long-term outlook for oilfield services remains positive, with expected growth in LNG export capacity in North America [23].