Calfrac Well Services
Encyclopedia
Calfrac Well Services Ltd. is an oilfield services corporation operating in Western Canada
, Colorado
,Western Siberia
,and Pennsylvania
with more than 800 employees. Calfrac supplies a wide range of products and services from hydraulic fracturing
, coiled tubing, well cementing and other well stimulation services.
of CDN$1,460,201. Since then has become the largest frac service company in Canada and is growing internationally, buying other companies, and bring in $100 Million+ in revenue a year.
by Ronald P. Mathison, Douglas Ramsay, Gordon Dibb, and Robert (Robbie) Roberts. At that time, Calfrac had a single coiled tubing
unit and was based in Medicine Hat, Alberta. In December 2000, Calfrac acquired Dynafrac Well Services Ltd. and with it a two-pumper fracturing spread, a shallow coiled tubing unit, a high rate nitrogen pumper and four acid pumpers. By the spring of 2001, Calfrac had acquired and constructed seven fracturing spreads plus other well stimulation equipment.
Early in 2002, CWS expanded to the U.S. Rocky Mountain region
by setting up a field office in Platteville
, Colorado
, and began providing fracturing services in the U.S., mostly to EnCana. Calfrac continued to construct more fracturing spreads in 2002 and 2003, and had nine complete spreads by the start of 2004. In addition to building fracturing spreads in 2003, CWS also purchased four shallow coiled tubing units from private companies to increase its fleet of coiled tubing units to eight.
In March 2004 Denison Energy Inc. reorganized and transferred all material assets to Denison Mines
and Denison Oil Corporation (parent of Denison Resources), leaving income tax attributes and the purchase option agreement among Calfrac, Matco Investments (on behalf of itself and the other shareholders of Calfrac) and Denison Energy Inc. granting an irrevocable option to Denison Energy Inc. to purchase all of the issued and outstanding shares
of Calfrac for an aggregate purchase price of approximately CDN$227.5 million less the net debt of Calfrac of approximately CDN$83.6 million. Denison Energy Inc. then de-incorporated from Ontario, and incorporated within Alberta. Following this, Matco Investments acquired class A common shares from the treasury (representing 45% of the total number of issued and outstanding class A common shares). Denison Energy Inc. then amalgamated
with Calfrac and changed its name to Calfrac Well Services Ltd.
The original founders of CWS remained with Calfrac, and form part of the current Board of Directors.
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
, Colorado
Colorado
Colorado is a U.S. state that encompasses much of the Rocky Mountains as well as the northeastern portion of the Colorado Plateau and the western edge of the Great Plains...
,Western Siberia
Siberia
Siberia is an extensive region constituting almost all of Northern Asia. Comprising the central and eastern portion of the Russian Federation, it was part of the Soviet Union from its beginning, as its predecessor states, the Tsardom of Russia and the Russian Empire, conquered it during the 16th...
,and Pennsylvania
Pennsylvania
The Commonwealth of Pennsylvania is a U.S. state that is located in the Northeastern and Mid-Atlantic regions of the United States. The state borders Delaware and Maryland to the south, West Virginia to the southwest, Ohio to the west, New York and Ontario, Canada, to the north, and New Jersey to...
with more than 800 employees. Calfrac supplies a wide range of products and services from hydraulic fracturing
Hydraulic fracturing
Considerable controversy surrounds the current implementation of hydraulic fracturing technology in the United States. Hydraulic fracturing, or fracking, is the process of utilizing pressurized water, or some other liquid, to fracture rock layers and release petroleum, natural gas, or other...
, coiled tubing, well cementing and other well stimulation services.
Business
Operating revenue in 2005 was CDN$314,325 with a market capitalizationMarket capitalization
Market capitalization is a measurement of the value of the ownership interest that shareholders hold in a business enterprise. It is equal to the share price times the number of shares outstanding of a publicly traded company...
of CDN$1,460,201. Since then has become the largest frac service company in Canada and is growing internationally, buying other companies, and bring in $100 Million+ in revenue a year.
History
Calfrac Well Servicing Ltd. (CWS) was founded in June 1999 as a private corporationPrivately held company
A privately held company or close corporation is a business company owned either by non-governmental organizations or by a relatively small number of shareholders or company members which does not offer or trade its company stock to the general public on the stock market exchanges, but rather the...
by Ronald P. Mathison, Douglas Ramsay, Gordon Dibb, and Robert (Robbie) Roberts. At that time, Calfrac had a single coiled tubing
Coiled tubing
In the oil and gas industries, coiled tubing refers to metal piping, normally 1" to 3.25" in diameter, used for interventions in oil and gas wells and sometimes as production tubing in depleted gas wells, which comes spooled on a large reel. Coiled tubing is often used to carry out operations...
unit and was based in Medicine Hat, Alberta. In December 2000, Calfrac acquired Dynafrac Well Services Ltd. and with it a two-pumper fracturing spread, a shallow coiled tubing unit, a high rate nitrogen pumper and four acid pumpers. By the spring of 2001, Calfrac had acquired and constructed seven fracturing spreads plus other well stimulation equipment.
Early in 2002, CWS expanded to the U.S. Rocky Mountain region
Rocky Mountain Region
The Rocky Mountain Floristic Region, also known as the Rocky Mountain Floristic Province, is a floristic region within the Holarctic Kingdom in western North America delineated by Armen Takhtajan and Robert F...
by setting up a field office in Platteville
Platteville
There are a few places named Platteville in the United States:*Platteville, Colorado*Platteville, Wisconsin, a city*Platteville , Wisconsin*Platteville Atmospheric Observatory Ionospheric heating facility...
, Colorado
Colorado
Colorado is a U.S. state that encompasses much of the Rocky Mountains as well as the northeastern portion of the Colorado Plateau and the western edge of the Great Plains...
, and began providing fracturing services in the U.S., mostly to EnCana. Calfrac continued to construct more fracturing spreads in 2002 and 2003, and had nine complete spreads by the start of 2004. In addition to building fracturing spreads in 2003, CWS also purchased four shallow coiled tubing units from private companies to increase its fleet of coiled tubing units to eight.
In March 2004 Denison Energy Inc. reorganized and transferred all material assets to Denison Mines
Denison Mines
Denison Mines Corp. is a Canadian uranium exploration, development, and production company. Founded by Stephen B. Roman, and best known for its uranium mining in Elliot Lake, it later diversified into coal, potash, and other projects....
and Denison Oil Corporation (parent of Denison Resources), leaving income tax attributes and the purchase option agreement among Calfrac, Matco Investments (on behalf of itself and the other shareholders of Calfrac) and Denison Energy Inc. granting an irrevocable option to Denison Energy Inc. to purchase all of the issued and outstanding shares
Share (finance)
A joint stock company divides its capital into units of equal denomination. Each unit is called a share. These units are offered for sale to raise capital. This is termed as issuing shares. A person who buys share/shares of the company is called a shareholder, and by acquiring share or shares in...
of Calfrac for an aggregate purchase price of approximately CDN$227.5 million less the net debt of Calfrac of approximately CDN$83.6 million. Denison Energy Inc. then de-incorporated from Ontario, and incorporated within Alberta. Following this, Matco Investments acquired class A common shares from the treasury (representing 45% of the total number of issued and outstanding class A common shares). Denison Energy Inc. then amalgamated
Consolidation (business)
Consolidation or amalgamation is the act of merging many things into one. In business, it often refers to the mergers and acquisitions of many smaller companies into much larger ones. In the context of financial accounting, consolidation refers to the aggregation of financial statements of a group...
with Calfrac and changed its name to Calfrac Well Services Ltd.
The original founders of CWS remained with Calfrac, and form part of the current Board of Directors.