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Xtreme Drilling and Coil Services Reports Record Full Year 2014 Financial and Operating Results and 2015 Outlook

CALGARY, ALBERTA -- (Marketwired) -- 03/12/15 -- Xtreme Drilling and Coil Services Corp. ("Xtreme", the "Company") (TSX: XDC) announce fourth quarter and full year 2014 financial and operating results. It is anticipated that filing will take place on SEDAR of audited Consolidated Financial Statements and Notes to the audited Consolidated Financial Statements and Management's Discussion and Analysis for the twelve months ended December 31, 2014, by Friday, March 13, 2015.

2014 Highlights

(amounts in thousands of Canadian dollars, unless otherwise noted)


--  Adjusted EBITDA of $18.6 million in the fourth quarter of 2014, an
    increase of two percent over the prior quarter. For the year ended
    December 31, 2014, adjusted EBITDA increased four percent to $77.0
    million as compared to $73.7 million for the prior year.

--  Revenue of $69.5 million in the fourth quarter of 2014, an increase of
    five percent over the previous quarter. For the year ended December 31,
    2014, the Company recognized revenue of $267.4 million, an increase of
    16%, or $37.6 million from 2013. The increase in revenue for the year
    was primarily a function of increased utilization across segments and
    higher revenue per day in the Coil Services Segment. Specifically,
    Revenue per operating day increased by 16% to $53,176 and total revenue
    increased by 48% to $83.7 million in the segment. In addition, total
    operating days across the Company increased to 8,135 as compared to
    8,063 in 2013.

--  For the fourth quarter, the Drilling Segment achieved utilization of 86%
    on 1,645 operating days. This was comprised of an 86% utilization rate
    for the 16 rig US XDR fleet, 75% for the three rig Canadian XDR fleet
    and 100% for the two rigs operating in India. For the year ended 2014,
    the Drilling Segment achieved utilization of 86% on 6,613 days. This was
    comprised of a 92% utilization rate for the 16 rig US XDR fleet, 67% for
    the three rig Canadian XDR fleet. The two XDR rigs that operate in India
    achieved a 52% utilization for the year which is inclusive of the time
    they were idled for upgrades and transport to India.

--  For the fourth quarter, the Coil Services Segment achieved utilization
    of 76% on 409 operating days. This was comprised of a 100% utilization
    rate for the two XSR units in Saudi Arabia and a 79% utilization rate
    for the five actively marketed XSR units in the US. Included in the Coil
    Services utilization is one additional unit that is currently idle in
    the US, but is actively being marketed internationally. The US XSR units
    for the quarter averaged 18 to 20 operating days per month on each unit.
    For the year ended 2014, the Coil Services Segment achieved utilization
    of 74% on 1,522 operating days. This was comprised of a 98% utilization
    rate in for the two XSR units in Saudi Arabia and a 75% utilization rate
    for the five actively marketed XSR units in the US, the fifth unit
    commenced operations in December 2014.

--  The Drilling Segment (which includes US, Canada and India) operating
    profit decreased to $58.5 million in 2014 as compared to $64.4 million
    the previous year. This was driven primarily by marginally lower pricing
    in the US division as well as higher operating expenses related to rig
    maintenance, support personnel and India start-up costs. Overall
    operating margin decreased to of 31.8% in the Drilling Segment as
    compared to 37.2% in 2013.

--  The Coil Services Segment (which includes US and Saudi Arabia) operating
    profit increased to $34.8 million in 2014 as compared to $20.6 million
    in the previous year. This was driven by the US division which had
    higher demand and pricing and the Saudi Arabia division which increased
    profitability on higher pricing in 2014. Overall operating margin as a
    percent of revenue increased to 41.5% in 2014 from 36.3% in 2013.

--  During the fourth quarter of 2014, and in light of the current economic
    environment, the Company performed a review of certain assets and
    components for property and equipment not currently in use. As a result
    of the review, some of the components were transferred to spare drilling
    and service equipment and depreciation expense was accelerated. This
    resulted in additional depreciation expense of $2.3 million for the
    fourth quarter. The effect of the change in accounting estimate on
    future periods is expected to be approximately $2.5 million in
    additional depreciation each year until the assets are fully
    depreciated.

--  The Company finished 2014 with $128.6 million in total debt and $115.5
    million in net debt (total debt less cash). The funded debt to EBITDA
    ratio was 1.7x and the net debt to EBITDA fell to 1.5x. This represents
    an improvement from 1.8x and 1.6x respectively at year end 2013. At year
    end, the Company had significant liquidity with approximately $44
    million available on the revolving credit facility and $34.7 million in
    working capital which includes $13.1 million of cash. On a US Dollar
    basis, in which the Company primarily borrows, the funded debt decreased
    $10 million USD to an ending balance of $111.7 million USD.

--  Total capital expenditures were $65.3 million, or $64.1 million net of
    dispositions, during 2014. This is up from total capital expenditures of
    $23.1 million in 2013. The increase is attributable to the upgrade of
    two XDR 300 rigs that commenced operations in India, increased spending
    on XDR maintenance capital as well as the XSR coiled tubing new build
    program.

2015 Outlook


--  In response to the decrease in drilling and coil service activity, the
    Company has decreased the capital budget to approximately $21 million in
    2015. The current budget includes all maintenance, critical spare and
    upgrade capital for the existing fleet as well as the final requirements
    to complete the remaining two XSR new build units. The sixth US XSR unit
    commenced operations in the Eagle Ford of South Texas in February. It is
    anticipated that one additional unit will be deployed in April of 2015.
    In addition, the Company will have substantially completed one
    additional XSR new build unit inside the current capital budget and will
    have the option to complete and deploy the unit at minimal incremental
    capital cost. Xtreme anticipates that 2015 capital expenditures will be
    funded exclusively through operating cash flow.

--  The Company currently has approximately 3,700 days in contract backlog
    for the remainder of 2015 across the XDR and international XSR
    businesses. Although Xtreme has not been immune to the recent slowdown
    in industry activity it is anticipated that these remaining contracted
    days provide revenue transparency for the year. At year end the Company
    had 19 of 21 XDR rigs operating and seven of eight XSR units operating.
    Currently the Company has 13 of 21 XDR rigs operating and anticipates
    one additional rig going idle towards the end of the first quarter.

--  Xtreme began to take action in January to mitigate the effect of the
    pending slowdown in activity. Through the first quarter the Company will
    reduce indirect and corporate personnel by approximately 25%. As part of
    the headcount reduction, severance charges of approximately $800
    thousand will be recognized in the first quarter of 2015. Xtreme will
    review opportunities to increase efficiency with its existing resources
    and continuously evaluate its operating and support functions in order
    to reduce costs and optimize returns.


Selected Quarterly Financial Information
                                    Dec 31,    Sep 30,    Jun 30,    Mar 31,
Three months ended                     2014       2014       2014       2014
----------------------------------------------------------------------------
Revenue                              69,459     65,980     62,299     69,703
Adjusted EBITDA                      18,617     18,299     19,421     20,635
Adjusted EBITDA as a percentage
 of Revenue                              27         28         31         30
Adjusted EBITDA per share -
 basic ($)                             0.23       0.22       0.24       0.25
Net (loss) income                   (2,258)        853      (902)      2,896
Net (loss) income per share -
 basic ($)                           (0.03)       0.01     (0.01)       0.04
Capital assets                      455,281    443,304    413,296    423,204
Total assets                        547,958    536,713    513,651    532,116
Net debt                            115,520    116,768    105,358    125,389
----------------------------------------------------------------------------
Operating days                        2,053      2,173      1,779      2,130
Utilization (percentage) - XDR           86         92         75         90
Utilization (percentage) - XSR           71         73         68         78
Utilization (percentage) - Total         83         88         73         88
Weighted average rigs in service       28.0       28.0       28.0       28.0
Total rigs, end of quarter               29         28         28         28
----------------------------------------------------------------------------

                                    Dec 31,    Sep 30,    Jun 30,    Mar 31,
                                       2013       2013       2013       2013
----------------------------------------------------------------------------
Revenue                              62,681     59,692     53,268     54,182
Adjusted EBITDA                      19,734     17,783     16,847     19,234
Adjusted EBITDA as a percentage
 of Revenue                              31         30         32         35
Adjusted EBITDA per share -
 basic ($)                             0.24       0.22       0.21       0.24
Net income (loss)                   (7,441)      3,281        240      4,487
Net income (loss) per share -
 basic ($)                           (0.09)       0.04       0.00       0.06
Capital assets                      412,523    416,887    431,294    417,431
Total assets                        515,720    504,728    520,326    508,823
Net debt                            116,856    110,326    127,977    130,014
----------------------------------------------------------------------------
Operating days                        2,141      2,062      1,911      1,949
Utilization (percentage) - XDR           93         90         85         89
Utilization (percentage) - XSR           76         76         65         60
Utilization (percentage) - Total         90         87         81         83
Weighted average rigs in service       28.0       28.0       28.0       28.0
Total rigs, end of quarter               28         28         28         28
----------------------------------------------------------------------------

Excerpt from Management's Discussion and Analysis

for the twelve months ended December 31, 2014

OUTLOOK

Xtreme maintained its growth trajectory in 2014 by achieving record levels of annual utilization, revenue and EBITDA on a similar asset base to 2013. In both the XDR Drilling segment and the XSR Coil Services Segment, the Company continued to deliver operational excellence while broadening its geographic footprint by commencing operations in India.

Falling oil prices began to significantly affect the industry on a global scale in the fourth quarter of 2014, and our XDR drilling business was not immune. Utilization dipped to 86% in the United States and 75% in Canada in the fourth quarter as compared to 96% for both in the prior quarter. While the oil price slump is expected to continue in 2015, Xtreme is well positioned to weather the downturn thanks to our fleet's technological advantages and financial stability. Although the Company is not fully insulated from the decreasing utilization and price erosion it is mitigated based on approximately 3,700 days of contract backlog operating days through the remainder of 2015.

In 2014 the Company focused on strengthening the balance sheet by using free cash flow to pay down a net $11.7 million (or net $10 million USD) in debt last year. In addition, operating cash flow funded the $65.3 million capital budget for 2014. We generated EBITDA of $77.1 million and ended the year with $115.5 million (or $100 million USD) in net debt on $552.3 million in assets. This manageable debt level coupled with ample liquidity between cash, revolver availability and expected free cash flow highlights Xtreme's financial strength and ability to weather a softer market in 2015.

XSR Segment

With the industry's highest-specification coiled tubing units, we enable cost-conscious operators to complete wells more quickly and efficiently, in turn lowering their overall completion expense. As a result, we have gained market share in the Eagle Ford Shale in South Texas and successfully expanded into the Permian Basin in West Texas. The XSR business was unaffected by the oil price drop at year-end, and in fact enjoyed its busiest and most profitable month ever in December. This trend continued during the first two months of 2015, "We offer oil and gas operators a package no other coiled tubing company can provide. Xtreme operates the largest, most advanced coiled tubing units in North America, delivering extended reach, increased efficiency and improved well productivity for our customers," Chief Executive Officer Tom Wood noted. "To date, the highlight of our consistently superior performance has been reaching a total measured depth of nearly 21,000 feet, with a lateral over 10,000 feet and more than 40 frac stages. In addition, on shorter lateral wells we have been able to cut the operation time by as much as 65% when compared to 2" coiled tubing units. On top of the superior performance we have completed 54 million round trip running feet with only two lost in hole events."

Demand for our completion services once again outstripped our capacity in 2014. During the year, we continued to grow our XSR fleet in response, and in order to execute our strategic plan to expand into new markets. Our capital budget initially included $65 million for eight new XSR units. However, due to a slowdown in market activity the Company has deferred the build of five units until a later date. We retain the option to resume the build process based on market demand. The current plan includes one unit delivered in December of 2014 another in February of 2015 and a final unit to be delivered in April of 2015. In the fourth quarter of 2014 the Company had approximately $300 thousand in operating expenses related to commissioning, crew training and start-up of the new build units.

Completion activity will continue to decrease with the rig count in 2015 along with announcements that certain operators will defer some completions on new wells. Based on this, a focal point for our 2015 expansion in XSR will be to broaden the scope of services. This will include re-entry and re-stimulation projects in the United States and other types of well intervention work. We have developed the expertise to perform re-entry coiled tubing drilling through our project in Saudi Arabia.

The successful work in Saudi Arabia entered its fifth year in 2014. The unique application of coiled tubing technology continues to deliver outstanding performance for our customer. In 2014 Xtreme once again drilled more lateral footage than was forecast for the year. Management continues to leverage the past performance by looking for opportunities to expand in the region. Although we were hopeful to add an additional XSR unit in 2015 it now appears the operator is looking at potentially adding a unit in early 2016.

XDR Segment

In 2014, operating days for our XDR Drilling segment remained in line with 2013, yet the fleet was among the United States' most productive according to RigData statistics. Most impressively, Company analysis of drilling information from RigData indicates that Xtreme was ranked #1 in drilling intensity in the United States with the highest average monthly footage drilled per marketed rig in 2014. Xtreme continued to set performance records in our core drilling areas: the Niobrara Shale in Colorado and Wyoming, and the Bakken Shale in North Dakota where two XDR rigs drilled pace setter wells in 2014.

In 2014 Xtreme allocated approximately $25 million of last year's capital budget to sustaining capital in order to keep the fleet operating optimally as well as perform upgrades to enhance marketability. In 2015 the Company anticipates sustaining capital expenses of approximately $7 million.

Another highlight was the expansion into India, where we partnered with a new customer seeking to improve its efficiency and overall drilling program. Two XDR 300 rigs were deployed and began operating in July after receiving upgrades and modifications for the project. The rigs commenced operations in July and August respectively and have worked at high utilization levels since. The Company will continue to aggressively pursue opportunities for international expansion, with a focus on the markets in which we currently operate. "Our XDR 300s are an excellent match for the India market, where wells are slightly shallower but operators still demand the performance of a Tier 1 rig." Chief Executive Officer Tom Wood commented. "Similarly, our XDR 400 and 500 rigs are ideal for the deep horizontal drilling that dominates the Bakken and Niobrara, thanks to advantages like AC electric power and the fastest moving 1,500 horsepower rigs between multi well pads."

In the fourth quarter and first two months of 2015 Xtreme has maintained relatively strong utilization. However, the Company anticipates drilling weakness to accelerate throughout the first half of the year. At December 31, 2014 Xtreme had 14 of 16 XDR rigs operating in the United States. Currently, the Company has 11 of 16 rigs operating and anticipates one additional rig finishing operations by March 31. Canada began to show weakness in the fourth quarter and this accelerated in January. We do not anticipate any rigs operating in Canada during the second quarter of 2015 due to Spring break up.

As the industry continues to feel the effects of the drop in oil prices, Xtreme has three key advantages that position the Company to weather these difficult market conditions: A technologically advanced new-generation fleet, management experienced in navigating oil and gas downturns and a strong balance sheet. The United States rig count is now down 60% from the end of the third quarter with rigs being idled indiscriminately industry-wide. Going forward we expect older and less advanced equipment to be retired as market forces make Tier 1 rigs more affordable to operators.

The XSR division has gained market share even in the current climate, and should continue to strengthen its foothold in the marketplace. In addition to completing wells, we anticipate opportunities to expand our coiled tubing offering to include re-fracturing and other service work. Operators will need these services as they seek to extend the lives of existing wells in the Eagle Ford, and Xtreme can offer them a reach up to 23,000 feet with 2 5/8" coiled tubing and up to 20,000 feet with 2 7/8" coiled tubing.

The Company is proactively managing costs and has already made reductions in areas including operations support, administrative personnel and capital investment as we work to operate well within cash flow in 2015. Indirect and G&A personnel overhead has been decreased by 25% in January and February and the Company anticipates that these cost savings will be realized beginning in the second quarter. The Company will recognize severance and related expense of approximately $800 thousand in the first quarter of 2015.

Overall, Xtreme's leadership team has managed through both upswings and down markets. We understand how to manage a business through challenging commodity prices and are committed to delivering innovation and efficiency to customers and value to shareholders in all types of markets.

Conference Call Details

Xtreme has scheduled a conference call to discuss results with investors, analysts, and stakeholders on Friday, March 13, 2015, beginning promptly at 10:00 am MT (11:00 am CT, 12:00 pm ET).

Tom Wood, Chief Executive Officer, will host the conference call with participation from Matt Porter, Chief Financial Officer.

Conference operator dial-in numbers

To participate in the conference call, please dial in as follows approximately ten minutes before the start time in your time zone.

+1 800-355-4959 (North America Toll-Free) or 1 416-340-2216 (Alternate)

Webcast link: http://www.gowebcasting.com/6197

An audio replay of the call will be available until Friday, March 20, 2015. To access the replay, call +1 800-408-3053 or +1 905-694-9451 and enter pass code 2268273.


Xtreme Drilling and Coil Services Corp.
Consolidated Statements of Financial Position
At December 31, 2014 and December 31, 2013

(in thousands of Canadian dollars)

                                                          Dec 31,    Dec 31,
                                                             2014       2013
                                                      ----------------------
                                                      ----------------------

Assets
Current assets
  Cash and cash equivalents                                13,102     12,220
  Accounts receivable                                      51,125     60,084
  Other receivables                                           255      1,306
  Prepaid expenses and other                                1,998      2,491
  Income tax recoverable                                        -        462
  Inventory                                                11,405      8,181
                                                      ----------------------
                                                           77,885     84,744
Non-current assets
Deferred tax asset                                         13,486     14,536
Property and equipment                                    452,974    412,523
Intangible assets                                           3,613      3,917
                                                      ----------------------
Total Assets                                              547,948    515,720
                                                      ----------------------
                                                      ----------------------

Liabilities and Shareholders' Equity
Current liabilities
  Accounts payable and accrued liabilities                 39,738     28,051
  Fair value of non-controlling interest liability              -     12,763
  Income tax payable                                        1,365          -
  Current portion of provisions                             1,740          -
  Current portion of long-term debt                             -        669
                                                      ----------------------
                                                           42,843     41,483
Long-term liabilities
Fair value of non-controlling interest liability                -      1,596
Long-term debt                                            128,622    128,407
                                                      ----------------------
Total Liabilities                                         171,465    171,486
                                                      ----------------------

Shareholders' equity
Share capital                                             330,964    328,416
Share option reserve                                       14,803     12,419
Accumulated deficit                                      (12,487)   (12,697)
Foreign currency translation reserve                       43,213     15,143
                                                      ----------------------
Total Equity                                              376,493    343,281
                                                      ----------------------

Non-controlling interest                                        -        953
                                                      ----------------------
Total Shareholders' Equity                                376,493    344,234
                                                      ----------------------
Total Liabilities and Shareholders' Equity                547,948    515,720
                                                      ----------------------
                                                      ----------------------


Xtreme Drilling and Coil Services Corp.
Consolidated Statements of Income
For the years ended December 31, 2014 and 2013

(in thousands of Canadian dollars, except share and per share data)

                                                             2014       2013
                                                      ----------------------
                                                      ----------------------

Revenue                                                   267,441    229,823
                                                      ----------------------

Expenses
  Operating expenses                                      174,201    144,873
  General and administrative expenses                      16,268     11,280
  Depreciation of property and equipment                   56,159     51,192
  Amortization of intangibles                                 304        303
  Stock-based compensation                                  3,053      1,321
  Foreign exchange loss                                       262      6,494
  Loss (gain) on disposal of equipment                      4,399      (132)
  Change in value of non-controlling interest
   liability                                                    -      1,481
  Impairment of accounts receivable                             -         72
  Other expense                                                21        153
  Interest expense                                          4,572      7,866
                                                      ----------------------
  Income before tax for the year                            8,203      4,920

Tax expense
  Current                                                   6,752      3,870
  Deferred                                                    862        483
                                                      ----------------------
  Total tax expense                                         7,614      4,353
                                                      ----------------------


Net income for the year                                       589        567
                                                      ----------------------
                                                      ----------------------

Net income (loss) for the year attributable to:
  Owners of the parent                                        589      (327)
  Non-controlling interest                                      -        894
                                                      ----------------------
                                                              589        567
                                                      ----------------------
                                                      ----------------------

Net income (loss) per common share attributable to
 equity owners of the parent
  - basic                                                    0.01     (0.00)
  - diluted                                                  0.01     (0.00)

Weighted average number of common shares
                                                       81,575,887 80,935,473
                                                       82,347,343 80,935,473


Xtreme Drilling and Coil Services Corp.
Consolidated Statements of Comprehensive Income
For the years ended December 31, 2014 and 2013

(in thousands of Canadian dollars)

                                                             2014       2013
                                                      ----------------------
                                                      ----------------------

Net income for the year                                       589        567
Other comprehensive income
Items may be subsequently reclassified to profit or
 loss
  Unrealized gain on translating financial statements
   of foreign operations                                   28,070     26,751
  Dividends declared to non-controlling interest
   partner                                                (1,332)          -
                                                      ----------------------

Comprehensive income for the year                          27,327     27,318
                                                      ----------------------
                                                      ----------------------


Xtreme Drilling and Coil Services Corp.
Consolidated Statements of Changes in Equity
For the years ended December 31, 2014 and 2013

(in thousands of Canadian dollars)

                  Equity attributable to the owners of the
                                                    parent
                 -----------------------------------------

                                           Foreign
                                          currency             Non-    Total
                           Share   Accum-   trans-           contr-   share-
                   Share  option   ulated   lation           olling holders'
                 capital reserve  deficit  reserve   Total interest   equity
                 -----------------------------------------------------------
                 -----------------------------------------------------------
Balance at Jan 1,
 2013            327,197  11,572 (12,370) (11,314) 315,085    2,922  318,007
                 -----------------------------------------------------------
                 -----------------------------------------------------------
Net (loss) income
 for the year          -       -    (327)        -   (327)      894      567
Other
 comprehensive
 income
Currency
 translation
 differences           -       -        -   26,457  26,457      294   26,751
                 -----------------------------------------------------------
Total
 comprehensive
 income (loss)         -       -    (327)   26,457  26,130    1,188   27,318
                 -----------------------------------------------------------
Employee share
 option scheme:
Dividends paid to
 non-controlling
 interest holder       -       -        -        -       -  (3,157)  (3,157)
Value of
 employees
 services            478   1,325        -        -   1,803        -    1,803
Proceeds from
 shares issued       741   (478)        -        -     263        -      263
                 -----------------------------------------------------------
Total
 transactions
 with owners       1,219     847        -        -   2,066  (3,157)  (1,091)
                 -----------------------------------------------------------
Balance at Dec
 31, 2013        328,416  12,419 (12,697)   15,143 343,281      953  344,234
                 -----------------------------------------------------------
                 -----------------------------------------------------------
Balance at Jan 1,
 2014            328,416  12,419 (12,697)   15,143 343,281      953  344,234
                 -----------------------------------------------------------
                 -----------------------------------------------------------
Net income for
 the year              -       -      589        -     589        -      589
Other
 comprehensive
 income
Currency
 translation
 differences           -       -        -   28,070  28,070        -   28,070
Dividends
 declared              -       -        -        -       -  (1,332)  (1,332)
Settlement of
 purchase              -       -    (379)        -   (379)      379        -
                 -----------------------------------------------------------
Total
 comprehensive
 income (loss)         -       -      210   28,070  28,280    (953)   27,327
                 -----------------------------------------------------------
Employee share
 option scheme:
Value of employee
 services            684   3,068        -        -   3,752        -    3,752
Proceeds from
 shares issued     1,864   (684)        -        -   1,180        -    1,180
                 -----------------------------------------------------------
Total
 transactions
 with owners       2,548   2,384        -        -   4,932        -    4,932
                 -----------------------------------------------------------
Balance at Dec
 31, 2014        330,964  14,803 (12,487)   43,213 376,493        -  376,493
                 -----------------------------------------------------------
                 -----------------------------------------------------------


Xtreme Drilling and Coil Services Corp.
Consolidated Statements of Cash Flows
For the years ended December 31, 2014 and 2013

(in thousands of Canadian dollars)

                                                             2014       2013
                                                      ----------------------
                                                      ----------------------

                                                      ----------------------
Cash flow provided by:
Operating activities
Net income for the year                                       589        567
Items not affecting cash:
  Depreciation and amortization                            56,462     51,495
  Stock-based compensation                                  3,053      1,321
  Unrealized foreign exchange loss                            262      6,494
  Loss (gain) on disposal of equipment                      4,399      (132)
  Provisions for doubtful accounts                          (110)          -
  Change in fair value of non-controlling interest
   liability                                                    -      1,481
  Impairment on accounts receivable                             -         72
  Interest expense                                          4,572      7,866
  Interest paid                                           (3,586)    (7,656)
  Amortization of debt issuance costs                         458      1,380
  Current tax expense                                       6,752      3,870
  Deferred tax expense                                        862        483
  Taxes paid                                              (4,749)      (217)
  Changes in items of working capital                      15,889    (7,872)
                                                      ----------------------
Net cash generated from operating activities               84,853     59,152
                                                      ----------------------
Financing activities
  Proceeds from exercise of stock options                   1,864        741
  Proceeds from long-term debt                              6,961    142,144
  Repayment of long-term debt                            (18,647)  (158,609)
  Repayment of operating facility                               -    (7,834)
  Dividends paid to non-controlling interest partner            -    (1,276)
  Debt issuance cost                                        (125)    (1,247)
                                                      ----------------------
Net cash used in financing activities                     (9,947)   (26,081)
                                                      ----------------------
Investing activities
  Proceeds from sale of equipment                           1,242        569
  Capital expenditures                                   (65,255)   (23,059)
  Buyout of non-controlling interest partner             (13,263)          -
  Changes in items of working capital relating to
   capital items                                            6,175      2,750
                                                      ----------------------
Net cash used in investing activities                    (71,101)   (19,740)
                                                      ----------------------
Effect of exchange rate changes on cash and cash
 equivalents                                              (2,923)    (7,032)
                                                      ----------------------
Increase in cash and cash equivalents                         882      6,299
Cash and cash equivalents - beginning of year              12,220      5,921
                                                      ----------------------
Cash and cash equivalents - end of year                    13,102     12,220
                                                      ----------------------


Xtreme Drilling and Coil Services Corp.
EBITDA and Adjusted EBITDA
For the years ended December 31, 2014 and 2013

(in thousands of Canadian dollars)

                                                             2014       2013
----------------------------------------------------------------------------
Net income                                                    589        567
Tax expense                                                 7,614      4,353
Interest expense                                            4,572      7,866
Amortization of intangibles                                   304        303
Depreciation of property and equipment                     56,158     51,192
----------------------------------------------------------------------------
EBITDA                                                     69,237     64,281
----------------------------------------------------------------------------
----------------------------------------------------------------------------

                                                             2014       2013
EBITDA                                                     69,234     64,281

Adjustments for non-cash and one-time gains and losses      7,734      9,317
----------------------------------------------------------------------------
Adjusted EBITDA                                            76,972     73,598
----------------------------------------------------------------------------
Adjusted EBITDA per share ($)                                0.97       0.91
----------------------------------------------------------------------------
Net (loss) income per share ($)                              0.07       0.01
----------------------------------------------------------------------------

Adjusted EBITDA attributable to:
  Owners of the parent                                     76,972     72,704
  Non-controlling interest                                      -        894
----------------------------------------------------------------------------
                                                           76,972     73,598
----------------------------------------------------------------------------

                                                             2014       2013
Stock-based compensation                                    3,053      1,321
Loss (gain) on disposal of equipment                        4,399      (132)
Foreign exchange loss                                         262      6,494
Change in fair value of non-controlling interest
 liability                                                      -      1,481
Other expense                                                  21        153
----------------------------------------------------------------------------
                                                            7,735      9,317
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Reader Advisory

This news release contains forward-looking statements ("FLS"). The use of the words "may", "believe", "could", "would", "might", "will be taken", "occur" or "be achieved" and similar expressions identify FLS. More particularly, this news release contains statements that may relate to contracting, marketing, financing, construction, modifications, deployment, operation, utilization of drilling rigs in the Company's current and future fleet. Although Xtreme believes expectations reflected in these FLS are reasonable, readers should not place undue reliance on them because Xtreme can give no assurance they will prove to be correct. There are many factors that could cause FLS not to be correct, including risks and uncertainties inherent in the Company's business.

These statements are based on certain factors and assumptions including, but not limited to: the assessment of current and projected future operations; ongoing and future strategic business alliances, negotiations and opportunities to enter new, extend or complete existing contracts; the availability and cost of financing; foreign currency exchange rates; timing and magnitude of capital expenditures; expenses and other variables affecting rig operation, modification and construction; the ability and commitment of vendors to provide rig component equipment, services and supplies, including labor, in a cost-effective and timely manner; the issuance of applied-for patents; changes in tax rates; and government regulations. Although Xtreme considers the assumptions used to prepare this news release reasonable, based on information available to management as of March 12, 2015, ultimately the assumptions may prove to be incorrect.

Forward-looking statements are also subject to certain factors, including risks and uncertainties, which could cause actual results to differ materially from management's current expectations. These factors include, but are not limited to: the cyclical nature of drilling market demand, foreign currency exchange rates, and commodity prices; access to credit and to equity markets; the availability of qualified personnel; vendor-provided rig components; and, competition for customers.

Management's assumptions considered the following: compliance with the terms of the Company's current and proposed new credit facility; ongoing access to key supplies and components required to continue operating and maintaining equipment, including fuel; continued successful performance of drilling and related equipment; expectations regarding gross margin; recruitment and retention of qualified personnel; continuation or extension of existing long-term or multi-well contracts; revenue expectations related to shorter-term drilling opportunities; willingness and ability of customers to remit amounts owing to Xtreme in accordance with normal industry practices; and management of accounts receivable in direct relation to revenue generation.

In preparing this news release, management considered the following risk factors: fluctuations in crude oil and natural gas prices, supply and demand; fluctuation in foreign currency exchange and interest rates; financial stability of Xtreme's customers; current and future applications for Xtreme's proprietary technology; competition from other drilling contractors; regulatory and economic conditions in regions where Xtreme operates; environmental constraints; changes to government legislation; international trade barriers or restrictions; and, where appropriate, global political and military events.

Financial outlook information contained in this news release about prospective results of operations, financial position or cash provided by operating activities is based on assumptions about future events, including economic conditions and proposed courses of action, and on management's assessment of relevant information currently available. Readers are cautioned such financial outlook information contained in this news release is not appropriate for purposes other than for which it is disclosed here. Readers should not place undue importance on FLS and should not rely on this information as of any other date. Except as required pursuant to applicable securities laws, Xtreme disclaims any intention, and assumes no obligation, to update publicly or revise FLS to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such FLS or otherwise, or to explain any material difference between subsequent actual events and such FLS.

About Xtreme

Xtreme Drilling and Coil Services Corp. ("XDC" on the Toronto Stock Exchange) designs, builds, and operates a fleet of high specification drilling rigs and coiled tubing well service units featuring leading-edge proprietary technology including AC high capacity coil injectors, deep re-entry drilling capability, modular transportation systems and continuous integration of in-house advances in methodologies.

Currently Xtreme operates two service lines: Drilling Services (XDR) and Coil Services (XSR) under contracts with oil and natural gas exploration and production companies and integrated oilfield service providers in Canada, the United States, Saudi Arabia and India. For more information about the Company, please visit www.xtremecoil.com.

Contacts:
Xtreme Drilling and Coil Services Corp.
Matt Porter, Chief Financial Officer
tel: +1 281 994 4600
9805 Katy Freeway, Suite 650, Houston, TX 77024
e-mail: ir@xtremecoil.com
www.xtremecoil.com

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