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CanElson Anticipates New Opportunity from Trinidad Drilling Merger
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CanElson Drilling Inc. has announced its financial results for the second quarter.
All tabular amounts are denominated in Canadian dollars unless otherwise identified and are stated in thousands, except for: per share amounts, number of drilling rigs, drilling days, utilization rate and depths in metres.
Merger with Trinidad Drilling
On June 10, 2015, Trinidad Drilling Ltd. and the Corporation entered into a definitive agreement under which Trinidad will acquire all the issued and outstanding common shares of the Corporation in exchange for a combination of cash and Trinidad common shares.
The Corporation's shareholders will, for each share held, have the option to receive, subject to an aggregate maximum cash payment by Trinidad of $50.0 million, 1.0631 Trinidad Shares or $4.90 per share in cash. The transaction has been approved unanimously by the Corporation's Board of Directors.
Randy Hawkings, President and CEO of CanElson said: "The exposure to new and larger opportunities with Trinidad is eagerly anticipated. The opportunity with Trinidad is a direct result of what has been accomplished here at CanElson over the past six and a half years. Since the first full year of operations in 2009, CanElson has grown to more than 50 drilling rigs, led industry activity metrics across all operating areas, and generated an industry leading return on capital. CanElson's second quarter results highlight the strength of the asset base that we have built, which remains in demand despite the significant decline in commodity prices."
Q2 2015 Summary (compared with a year earlier)
- Services revenue of $34.6 million, down 44% from $61.9 million
- Adjusted EBITDA of $8.4 million, down 48% from $16.3 million, excluding an Adjusted EBITDA loss from our joint venture equity investment in Diavaz CanElson de Mexico ("DCM") of $(0.1) million (2014: DCM Adjusted EBITDA of $2.7 million)
- Income/(loss) attributable to shareholders of the Corporation $(1.7) million, down 132% from $5.5 million
- Income/(loss) per diluted share of $(0.02), down 133% from $0.06
- Included in Income/(loss) attributable to shareholders is $3.8 million in non-cash asset impairment, up from nil
- Weighted average diluted common shares outstanding 93.0 million, down 1% from 93.9 million
- Declared second quarter dividend of $0.03 per share on July 27, 2015, down 50% from $0.06 per share
- Canadian utilization of 29% (2.23 times above industry average), down 19% from 36% (1.38 times above industry average)
- US utilization of 31%, down 59% from 75%
Six Months Ended 2015 Summary (compared with a year earlier)
- Services revenue of $100.8 million, down 37% from $159.0 million
- Adjusted EBITDA of $26.8 million, down 44% from $48.1 million, excluding an Adjusted EBITDA loss from our joint venture equity investment in Diavaz CanElson de Mexico (DCM) of $0.5 million (2014: DCM Adjusted EBITDA of $5.6 million)
- Income attributable to shareholders of the Corporation $3.7 million, down 82% from $20.6 million
- Income/(loss) per diluted share of $0.04, down 82% from $0.22
- Included in Income/(loss) attributable to shareholders is $3.8 million in non-cash asset impairment, up from nil
- Weighted average diluted common shares outstanding 93.0 million, down 1% from 93.8
- Declared dividends for the six months ended June 30, of $0.06 per share, down 50% from $0.12 per share
- Canadian utilization of 40% (1.6 times above industry average), down 30% from 57% (1.3 times above industry average)
- US utilization of 31%, down 59% from 75%
Recent Deals/Transactions
| Date Annouced | Category | Headline | Buyer(s) | Seller(s) | Value ($mm) |
|---|---|---|---|---|---|
| 02/26/2026 | E&P | Diversified Energy Extends East Texs Footprint in $245MM Sheridan Deal |
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| 02/18/2026 | E&P | SM Energy Sells Eagle Ford Asset for $950 Million |
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| 02/17/2026 | E&P | Ovintiv Sells Anadarko Assets for $3 Billion |
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| 02/02/2026 | E&P | Vista Energy Acquires Equinor Non-Working Interest In Vaca Muera |
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| 02/02/2026 | E&P | Devon Acquires Coterra Energy; Bulk Up on Permian, Adds Gas Bank |
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| 01/16/2026 | E&P | Mitsubishi’s Strategic Entry into U.S. Shale with Aethon’s Haynesville Platforms |
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| 12/22/2025 | E&P | Harbour Energy Enters GOM; Buys LLOG |
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| 12/18/2025 | E&P | JAPEX Secures First U.S. Operated Position in $1.26B DJ Basin Acquisition of Verdad Resources |
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| 12/08/2025 | E&P | Antero Resources Acquires HG Energy II for $3.9B |
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| 12/08/2025 | E&P | Infinity Natural and Northern Oil & Gas Acquire Antero's Ohio Utica for $1.2B |
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