Trican Well Service (TCW) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was CAD 221.6 million, down 12% year-over-year due to customer delays from water restrictions, well licensing, and weak natural gas prices.

• Adjusted EBITDA for Q3 2024 was CAD 50.2 million (23% margin), down from CAD 65.7 million (26%) in Q3 2023.

• Net income for Q3 2024 was CAD 24.5 million (CAD 0.12/share), compared to CAD 36.4 million (CAD 0.17/share) a year earlier.

• Free cash flow for Q3 2024 was CAD 32.4 million (CAD 0.16/share), down from CAD 47.7 million (CAD 0.23/share) in Q3 2023.

• Working capital stood at CAD 136.5 million at quarter end, with CAD 3.0 million in cash.

Financial highlights

• Revenue: CAD 221.6 million, down from Q3 2023.

• Adjusted EBITDA: CAD 50.2 million (23% margin), down from CAD 65.7 million (26%) in Q3 2023.

• Free cash flow: CAD 32.4 million (CAD 0.16/share).

• CapEx: CAD 15.2 million, mainly for maintenance and electric ancillary equipment.

• Dividends paid in Q3 2024 totaled CAD 8.7 million (CAD 0.045/share), up from CAD 8.5 million (CAD 0.040/share) in Q3 2023.

Outlook and guidance

• Q4 2024 is expected to outperform Q3 due to deferred work, with 2025 activity likely mirroring 2024 and upside potential from LNG exports.

• Canadian oil and gas export capacity is expanding with new pipelines and LNG projects, supporting a positive multi-year outlook.

• Customers remain disciplined, spending about 50% of free cash flow on drilling and completions.