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High Arctic Announces 2012 Capital Budget and Financial Update
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About this update from High Arctic Energy Services Inc
[{"type":"text","content":"\n\n\n\n\n\n/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN\n THE UNITED STATES.  ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY\n CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW/\n\n\nRED DEER, AB, Feb. 2, 2012 /CNW/ - High Arctic Energy Services Inc.\n (TSX: HWO) (\"High Arctic\" or the \"Corporation\") is pleased to announce\n that its Board of Directors has approved a total capital budget of $23\n million for 2012, an indication of the Company's positive outlook for\n growth opportunities and anticipated continued strong cash flows. \n Growth capital expenditures are expected to be $16 million, and\n maintenance capital expenditures are budgeted at $7 million. Capital\n expenditures are anticipated to be funded from operating cash flow.\n\n\nGrowth capital spending is intended to be focused primarily on adding to\n the Corporation's equipment rental fleet as well as the expansion of\n existing service offerings. Capital spending plans may be adjusted in\n accordance with changes in market conditions or on the ability to\n secure contracts with acceptable returns.\n\n\nFourth Quarter\nHigh Arctic has experienced strong activity levels in its Canadian\n operation in the fourth quarter.  Revenue in Canada is expected to\n range between $15 million and $16.0 million, or more than a 30%\n increase over the fourth quarter of 2010.  For the year, revenue in\n Canada is anticipated to range between $46 million to $48 million.  The\n improvement in revenue reflects the strong demand for the Corporation's\n services in the unconventional shale gas and liquid rich plays and the\n benefit of improved day rates. Adjusted EBITDA(1) for the fourth quarter on a consolidated basis is anticipated to range\n between $11 million and $12 million, which would result in total\n Adjusted EBITDA(1) for 2012 of $33 million to $34 million. These results are based on\n management's review of the internally prepared preliminary operating\n results for the year ended 2011 and are subject to the review and\n approval of the Corporation's auditor and Board of Directors.  The\n Corporation is expected to release its year end audited Consolidated\n Financial Statements on or about March 15, 2012.    \n\n\nForward-Looking Statements\n\n\nThis news release may contain forward-looking statements rel...