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Article Excerpt
TOM MEDVEDIC, SVP AND CFO, CALFRAC WELL SERVICES LTD.: I would certainly like to thank FirstEnergy for hosting this conference, and thank you to everyone for listening to the Calfrac story. I will try not to repeat too many of the things that Dale said in his presentation. But as you can probably well imagine, there is a bit of an overlap in the story.
As was the case with all of the slides, here is one courtesy of our lawyer and I will let you read that at your leisure.
Looking at the market facts, currently Calfrac has approximately 38 million shares outstanding. Current shares being held by insiders or management, about 34%, certainly aligning the interest of shareholders and management very, very closely. Stock is hovering around CAD$10 a share here in the last few days which equates to the market capital and focus CAD$370 million.
Calfrac has the semi-annual dividend policy of CAD$0.05 a share, and we just recently announced that that rate is going to be paid in January according to that policy. It is a policy that we put in place now, I think three years or so ago, and really look forward to maintaining that well into the future, and as economic conditions would provide (inaudible).
Growth profile. As Kevin mentioned, we went public in 2004. We were formed in 1999 as a private company, and in 1999, in conditions that were challenging to say the least, and it was as a result of acquisitions of two separate companies through the (inaudible) process that we were able to commence operations in 1999.
We have been focused on four business lines, specifically fracturing, coil tubing, cementing, and well stimulation. This has been the core of Calfrac's business segment, and really we have been focused on these ever since the inception. As we project forward in reference to any future growth, we really see a continued focus on these areas and then we've had some competitors that have sprouted off in different segments of the service space. But we really are quite focused on these particular areas, and really expect that into the future, that will continue.
I have been asked several times as far as M&A and what our views are looking forward. Certainly, there are a few companies that we continue to look at periodically. The real challenge for us is -- we really want to stay focused on the areas that we know best, and that is the traditional pressure [pumping] business line.
We operate in five geographic segments, being Canada, the US, Russia, Mexico, and Argentina. We have our headquarters in Calgary and regional offices in Denver, Moscow, Mexico City, and Buenos Aires. We service each of these areas through five district bases in Canada, three in the US, two in Russia, one in Northern Mexico and one in Western Argentina.
We -- the strategy is really to again focus on the service lines we know best. Our plan is to ultimately gain traction in each of the four business lines that we operate in, in each geographic segment. And our expectation is that we will continue to see further growth in each of those segments as we move forward.
Turning specifically to Canada, obviously, this is an area that we have all -- it is our bread-and-butter where this company was initially morphed out of, going back to the early stages in Calfrac's history. And started in the shallow gas and CBM areas, going back to early 2000s. But as Dale had mentioned earlier in his presentation, we have seen a dramatic shift in operations in Western Canada.
So as we look at the screen here, and we see a dramatic...
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