CALGARY, ALBERTA--(Marketwired - Nov. 26, 2015) -
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.
Great Prairie Energy Services Inc. (TSX VENTURE:GPE) ("Great Prairie" or the "Company") announces its financial results for the three and nine months ended, September 30, 2015. The full text of Great Prairie's third quarter-end financial statements and the related MD&A are available under the Company's profile on SEDAR at www.sedar.com.
Financial Highlights for the third quarter ended September 30, 2015:
- Revenue of $5.05 million
- Adjusted EBITDAS of $0.76 million
Activity levels for the third quarter continued to be impacted by the global oversupply of crude oil and regional oversupply of natural gas. The Company continues to reduce its operating cost structure and minimize capital expenditures to right size the business with the ongoing market challenges.
Although the Company's third quarter results are improved over the second quarter, the Company expects that activity levels and profitability within the industry will continue to be modest due to commodity pricing weakness.
The Company continues to operate under its forbearance agreement as it pursues a more flexible senior credit facility. The previously announced private placement financing remains open.
About Great Prairie Energy Services Inc.
Great Prairie Energy Services Inc. is a Canadian energy services company focused on servicing oil and gas activity in Saskatchewan and Alberta. Great Prairie provides general oilfield hauling, equipment rental and frac fluid services out of Kindersley, Saskatchewan and Drumheller, Rocky Mountain House and Valleyview, Alberta through its operating entities.
Forward-Looking Statements and Reader Advisory
This news release contains forward-looking statements. More particularly, this news release contains statements concerning future activity levels, profitability within the industry and the terms of the private placement. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "plan", "expect", "may", "will", "project", "predict", "believe" and similar expressions. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the expectations, predictions, forecasts, projections and other events contemplated by the forward-looking statements will not occur, which may cause actual performance and results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. With respect to forward-looking statements contained in this news release, Great Prairie has made assumptions regarding its lender's willingness to continue to forbear, its ability to obtain alternative credit facilities and financing, the level of oilfield activity, the demand for the services of Great Prairie, the impact of increasing competition, and its ability to obtain additional financing on satisfactory terms.
Some of the risks and uncertainties relate to, among other things, the following risk factors: the existing lender may not continue to forbear; Great Prairie may fail to meet the conditions of the forbearance agreement and consequently cause the lender to exercise default remedies it has; a new credit facility will not be successfully negotiated on reasonable and competitive terms, or at all, with a new lender; the private placement may not close at all; risks related to certain economic factors, including a slowdown in the general economy, reduced commodity prices, reduced drilling activity, interest rates, customers' ability to pay for services rendered by Great Prairie; customer and supplier relationships and their ability or willingness to transact with Great Prairie; Great Prairie's ability to retain key employees to continue to maintain its operations; Great Prairie's ability to complete future financings; the uncertain state of the economy in general and capital markets in particular; investor interest in the business and future prospects of Great Prairie; increases in costs of key inputs such as labor, fuel, equipment and supplies employed and used in Great Prairie's businesses; compliance with environmental, health and safety laws and regulations, as well as actions by governmental and regulatory authorities; capital expenditure investments, to the extent made, will not generate adequate returns; and other risks affecting Great Prairie's ability to maintain or improve operations, including its ability to maintain prices for services under market pricing pressures, weather risks, and the impact of potential increases in general and administrative expenses.
The forward-looking statements contained in this news release are made as of the date of this news release. Except as required by law, Great Prairie disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities law. Additionally, Great Prairie undertakes no obligation to comment on the expectations of, or statements made, by third parties in respect of the matters discussed above. There is a significant risk that predictions, forecasts, conclusions or projections will not prove to be accurate, that management's or third party's assumptions may not be accurate and that actual results, performance or achievements may differ significantly from such predictions, forecasts, conclusions or projections expressed or implied by such forward-looking statements.
Readers should note that earnings before interest, taxes, depreciation, impairment, amortization, fair value adjustment on contingent consideration, share based compensation and one-time charges
("Adjusted EBITDAS") is a non-GAAP financial measure and does not have any standardized meaning under GAAP and is therefore unlikely to be comparable to similar measures presented by other companies. Great Prairie believes that Adjusted EBITDAS is a useful supplemental measure, which provides an indication of the results generated by the Great Prairie's primary business activities prior to consideration of how those activities are financed, amortized or taxed. Readers are cautioned, however, that Adjusted EBITDAS should not be construed as an alternative to comprehensive income (loss) determined in accordance with GAAP as an indicator of Great Prairie's financial performance.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
