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Calfrac Well Services Ltd at FirstEnergy Capital Corporation Canadian Energy Conference - Final.

Article Excerpt
DOUGLAS RAMSAY, PRESIDENT & CEO, CALFRAC WELL SERVICES: Well, thanks a lot Firstenergy for inviting us to the conference here; Kevin for chairing today and certainly all the delegates that are here, not only here, but in our one on one meetings. We do appreciate that. Joining me today is Tom Medvedic. He's our Senior VP of Corporate Development. So, if you have any tough questions we'll have Tom answer them and we'll test his new job out and see how well he does.

Again, a lot of what I'm going to talk about today has been covered by either [Murray] in his or Dale in his presentation, but I'll try to cover the Calfrac side of the story.

Forward looking statement, of course. If you can review that, we appreciate that. I'm going to start out with a few quick financial snapshots. You can see 2008 funds from operation $81 million, working capital at the end of the year $101 million, market cap is $265 million as of this week. Shares outstanding 37.8 million. Of course, 34% is held by directors and management. We employ approximately 1,900 people on a worldwide basis and we do pay a dividend of $0.05 a share semi annually.

Now today, what I'm trying to show is a few good pictures of big frac jobs, I guess. This is an aerial view of what we call [Simulfrac] in the Fayetteville Shale. This is where we frac two wells at the same time. It's a technique that customers employ and seems to work very well for the shale formation. This one is really a 45,000 horsepower in one location. That's a dynamic change. It's just a real good look for everyone here to understand that this business has changed and it's a big changing when it comes to fracturing from the service line.

A typical frac location in Fayetteville would be about half of the equipment or 22,000 to 25,000 horsepower. You could see it somewhere set up in the Montney or Horn River and can utilize up to 35,000 horsepower in one location. So, very capital intensive and really the key to this is once you've convinced your customer that you're the right company to pump it for them there's a logistics and executing that job in a timely manner and day in and day out and not everybody can do that successfully.

What are we? Simply we focus our efforts on pressure pumping and I define it as fracturing, coiled tubing and cementing. And we certainly do not feel we have to be everything to everybody and we do focus on our strengths. In the future no matter how we're baited to get in on the service lines and prices are cheap we're going to remain as a pressure pumping company.

Give you an idea of capacity growth. It really demonstrates the tremendous growth that we've had since the inception of our Company. Again, a good example of how the frac game has changed in the last short while. If you look at Canada, you can see the numbers there. We're at 110,000 horsepower. We're a big player. In the US we're 150,000 horsepower. A big player. And what we call international that's the hydraulic horsepower between Mexico and Russia.

Looking at Canada just briefly. Certainly, the dark green demonstrates the basin we work in. The red shows what we call unconventional plays and certainly we are well located with our service points. We do service the Saskatchewan business out of our (inaudible) at this point and we're looking to expand into that. Most recent additions are Dawson Creek and Fort Nelson and, of course,...