Quintana Energy Services Announces Sale of Legacy Conventional Pressure Pumping Locations
19 Agosto 2019 - 8:00AM
Business Wire
Quintana Energy Services Inc. (NYSE: QES) (“QES” or the
“Company”) today announced the sale of its legacy conventional
pressure pumping operations in Kansas and Bartlesville, Oklahoma to
Hurricane Services Inc. (“Hurricane”), a privately-held oilfield
service company based in Wichita, Kansas, for gross cash
consideration of $4.4 million.
As part of the transaction, QES divested approximately 12,000
hydraulic horsepower, five facilities including Bartlesville, OK
and Kansas locations in Oakley, Ottawa, Thayer and El Dorado; and
26 personnel to Hurricane in exchange for $4.4 million. These
assets and locations were responsible for 2018 revenue and adjusted
EBITDA of $7.9 million and $1.0 million, respectively. For the six
months ended June 30, 2019, these locations were responsible for
$2.2 million of revenue and an Adjusted EBITDA loss of $(0.4)
million. See “Non-GAAP Financial Measures” at the end of this news
release for a discussion of Adjusted EBITDA and its reconciliation
to the most directly comparable financial measure calculated and
presented in accordance with U.S. generally accepted accounting
principles (“GAAP”).
“This sale allows us to streamline our focus and cost structure
on our go forward service offering and the needs of our
unconventional pressure pumping and cementing customers,” said
Chris Baker, QES’ President and CEO. “Our regional pressure pumping
predecessor, Consolidated Oil Well Services, had been active in the
Kansas pressure pumping market since 1956, but as our operating
strategy evolved to focus on high-utilization unconventional
completions, these legacy conventional pumping services have become
non-core. Post-closing, we retain the remainder of our Pressure
Pumping operations, including the unconventional frac business
operating in the Mid-Con, Permian and Rockies and our cement
business based in Gillette, Wyoming.”
About Quintana Energy Services
QES is a growth-oriented provider of diversified oilfield
services to leading onshore oil and natural gas exploration and
production companies operating in both conventional and
unconventional plays in all of the active major basins throughout
the U.S. QES’ primary services include: directional drilling,
pressure pumping, pressure control and wireline services. The
Company offers a complementary suite of products and services to a
broad customer base that is supported by in-house manufacturing,
repair and maintenance capabilities. More information is available
at www.quintanaenergyservices.com.
This news release contains certain statements and information
that may constitute “forward-looking statements.” All statements,
other than statements of historical fact, which address activities,
events or developments that we expect, believe or anticipate will
or may occur in the future are forward-looking statements. The
words “anticipate,” “believe,” “expect,” “plan,” “forecasts,”
“will,” “could,” “may,” and similar expressions that convey the
uncertainty of future events or outcomes, and the negative thereof,
are intended to identify forward-looking statements.
Forward-looking statements, which are not generally historical in
nature, include those that express a belief, expectation or
intention regarding our future activities, plans and goals.
Forward-looking statements are not assurances of future performance
and actual results could differ materially from our historical
experience and our present expectations or projections. Our
forward-looking statements involve significant risks, contingencies
and uncertainties, most of which are difficult to predict and many
of which are beyond our control. Known material factors that could
cause actual results to differ materially from those in the
forward-looking statements are listed in our filings with the SEC.
Readers are cautioned not to place undue reliance on
forward-looking statements, which speak only as of the date hereof.
We undertake no obligation to publicly update or revise any
forward-looking statements after the date they are made, whether as
a result of new information, future events or otherwise, except as
required by law.
Non-GAAP Financial Measures
Adjusted EBITDA is a supplemental non-GAAP financial measure
that is used by management and external users of our financial
statements, such as industry analysts, investors, lenders and
rating agencies.
Adjusted EBITDA is not a measure of net income or cash flows as
determined by GAAP. We define Adjusted EBITDA as net income or
(loss) plus income taxes, net interest expense, depreciation and
amortization, impairment charges, net (gain) or loss on disposition
of assets, stock based compensation, transaction expenses,
rebranding expenses, settlement expenses, severance expenses and
equipment standup expense.
We believe Adjusted EBITDA is useful because it allows us to
more effectively evaluate our operating performance and compare the
results of our operations from period to period without regard to
our financing methods or capital structure. We exclude the items
listed above in arriving at Adjusted EBITDA because these amounts
can vary substantially from company to company within our industry
depending upon accounting methods and book values of assets,
capital structures and the method by which the assets were
acquired. Adjusted EBITDA should not be considered as an
alternative to, or more meaningful than, net income as determined
in accordance with GAAP, or as an indicator of our operating
performance or liquidity. Certain items excluded from Adjusted
EBITDA are significant components in understanding and assessing a
company’s financial performance, such as a company’s cost of
capital and tax structure, as well as the historic costs of
depreciable assets, none of which are components of Adjusted
EBITDA. Our computations of Adjusted EBITDA may not be comparable
to other similarly titled measures of other companies.
The following tables present a reconciliation of the non-GAAP
financial measures of Adjusted EBITDA to the most directly
comparable GAAP financial measure for the periods indicated:
Conventional Pressure Pumping Operations in Kansas and
Oklahoma:
Year Ended Six Months Ended 12/31/2018 6/30/2019 Adjustments to
reconcile Adjusted EBITDA to net loss (in millions) : Net income
(loss)
$
0.0
$
(0.7
)
Depreciation and amortization expense
0.9
0.4
Gain on disposition of assets, net
-
(0.1
)
Other, net
0.1
-
Adjusted EBITDA
$
1.0
$
(0.4
)
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version on businesswire.com: https://www.businesswire.com/news/home/20190819005324/en/
Quintana Energy Services Keefer M.
Lehner, EVP & CFO 832-518-4094 IR@qesinc.com
Dennard Lascar Investor Relations
Ken Dennard / Natalie Hairston 713-529-6600
QES@dennardlascar.com
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