Calfrac says it expects activity to increase in an emerging area of Alberta’s Duvernay play over the second half of the year.
The company believes that this, along with increasing frac intensity across existing plays, will grow demand for its fracturing services and “result in constructive market dynamics.”
The promising Duvernay East Shale Basin is characterized by light oil and shallower prospects than other shale regions. Smaller players have dominated the early-stage play, but in April Crescent Point Energy announced it had assembled 142,000 hectares of drilling rights, establishing itself as the largest player.
Calfrac reported a large bump in its second quarter revenue on Wednesday to $544.6 million, a 67 percent increase over 2017. This is a record for Calfrac in second quarter results reporting.
While Q2 began at a slow pace as a result of spring breakup conditions in April, activity picked up significantly in May and June, Calfrac said. This includes a number of multi-well pad operations that “provided consistent activity and revenue.”
Despite the increase in revenue, the company reported a net loss of $32.8 million, up from a net loss of $20.3 million in Q2/2017. Calfrac said the results in both years stem from largely unrealized foreign exchange losses.