Calfrac Well Services shares rise 75%; oilfield company says it hired advisers

Calfrac Well Services shares rise 75%; oilfield company says it hired advisers

CALGARY — Calfrac Well Services Ltd. says it is seeking advice on changes to its capital structure but doesn’t know of any “material change” that would account for a 75.6 per cent increase in its share price on Tuesday.

In a news release after markets closed, the Calgary-based well completion company says it has retained Perella Weinberg Partners LP and Tudor, Pickering, Holt & Co., along with RBC Capital Markets, as financial advisers.

Calfrac’s shares closed at 39.5 cents on Tuesday, up 17 cents on the day. Its stock has varied between 13 cents and $2.24 in the past 52 weeks.

The company specializes in hydraulic fracturing or fracking of wells, where liquids and chemicals are injected under pressure to break up tight rock formations deep underground and allow trapped oil and gas to be produced.

The current slump in drilling activity as energy demand falls due to measures to control the COVID-19 pandemic has forced the company to cut 70 per cent of its North American workforce, park about three-quarters of its equipment, halve capital spending plans and reduce salaries for management, directors and remaining staff.

The company said in April it will postpone its first-quarter financial report, normally published before May 15, until no later than June 25.

“Since Dec. 31, 2019, there has been a rapid and unforeseen deterioration in business conditions resulting from the COVID-19 global pandemic and the oil price war among OPEC+ members,” it said in an April 28 news release.

“It is difficult to predict how the COVID-19 pandemic will continue to affect the demand for Calfrac’s services.”

This report by The Canadian Press was first published June 9, 2020.

Companies in this story: (TSX:CFW)

The Canadian Press

Business

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Break and enter at the Wetaskiwin Heritage Museum

Wetaskiwin RCMP is seeking help from the public to identify two suspects.

230 new COVID-19 cases reported over the weekend

City of Red Deer has nine active cases

Father and his 9-year-old son rescued off of Miquelon Lake this weekend

Wetaskiwin/Camrose RCMP and EPS Air 1 rescue father and son on Miquelon Lake.

Canadian professional chuckwagon racer reflects on cancelled season

This year would have marked Troy Dorchester’s 28th year of racing.

Conservatives call for Trudeau to testify at committee on WE Charity deal

Ethics Commissioner Mario Dion is already investigating whether Trudeau violated the Conflict of Interest Act

QUIZ: Are you ready for a summer road trip?

How much do you really know about roads, motor vehicles and car culture? Take this quiz to find out.

Crowds in Sylvan Lake “commonplace” during summer months

The Town of Sylvan Lake looking for solutions from Province for large crowds not social distancing

Look out, Mars: Here we come with a fleet of spacecraft

Three countries sending unmanned spacecraft

Canmore RCMP respond to multiple hiking injury calls this weekend

EMS and RCMP responded to three separate and unrelated hiking accidents in Kananaskis Country.

How Conservative leadership hopefuls would address the WE scandal if they win

The ethics commissioner has been called in to see if Trudeau broke conflict-of-interest law

With debt, deficit numbers out, experts say Liberals need plan for growth

Borrowing will push the federal debt past $1 trillion by the end of the fiscal year

Most Read