Calgary-based Calfrac Well Services is increasing its capital budget for 2019, based primarily on opportunities south of the border.
The company will spend $149 million next year, up from $132 million in 2018. More than 80 percent of the new capital program relates to Calfrac’s business outside of Canada, CEO Fernando Aguilar said in a statement.
In Q3/2018, Calfrac’s Canadian operations reported revenue of approximately $184 million, a slight increase from $181 million the previous year. Meanwhile, the company’s U.S. business reported revenue of $359 million, an 85 percent increase from $194 million in Q3/2017.
Calfrac’s $149 million capital program for next year includes $126 million of maintenance capital, $11 million of refurbishment capital and $12 million related to corporate initiatives. In addition, approximately $10 million remaining from Calfrac's 2018 capital program is expected to be spent in 2019.
“Although there is uncertainty in the spending plans of our customers, particularly those in Canada, we retain the flexibility to make adjustments as required to reflect any changes in activity levels and outlook,” Aguilar said.