Overview

* Calfrac Q2 revenue declines 6% yr/yr, missing analyst expectations

* Adjusted EBITDA rises 18% yr/yr, driven by Argentina performance

* Co amends revolving credit facility, adds $120 mln term loan

Outlook

* Company expects lower oil-weighted completion activity in North America

* Calfrac anticipates higher natural gas completions in North America

* Company sees reduced activity in Argentina's Vaca Muerta due to budget limits

* Calfrac expects high demand for dual-fuel fracturing fleets in North America

Result Drivers

* ARGENTINA GROWTH - Revenue increase driven by expanded operations in Vaca Muerta shale play with second fracturing fleet

* NORTH AMERICA DECLINE - Lower activity and pricing led to reduced revenue in North American operations

* CREDIT FACILITY AMENDMENT - Amended revolving credit facility to include $120 mln term loan for financial flexibility

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Miss C$402.29 C$452.10

Revenue mln mln (1

Analyst)

Q2 Net C$15.32

Income mln

Q2 C$76.98

Adjusted mln

EBITDA

Q2 Capex C$40.83

mln

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the oil related services and equipment peer group is "buy"

* Wall Street's median 12-month price target for Calfrac Well Services Ltd ( CFWFF ) is C$4.00, about 6.3% above its August 7 closing price of C$3.75

* The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)