Canyon Services Group Inc. announces increase to 2014 capital budget and quarterly dividend

CNW Group

TSX - FRC

CALGARY , March 19, 2014 /CNW/ - Canyon Services Group Inc. ("Canyon") is pleased to announce that it has increased its 2014 capital budget to approximately $62.9 million .  Canyon has added $30.4 million to its previously announced 2014 budget of $32.5 million . The incremental capital will include adding 30,000 hydraulic horsepower ("HHP") of fracturing equipment bringing Canyon's total fleet to 255,500 HHP.  In addition, the 2014 capital budget will significantly expand Canyon's fleet of sand and chemical storage and handling equipment, nitrogen pumping and storage equipment, cement and acid units, and deep coiled tubing assets.

The addition of the aggregate 30,000 HHP includes the acquisition of 20,000 HHP and two data vans from a Canadian competitor for $9.3 million .  This transaction closed on March 18, 2014.   Upon completion of certain modifications, Canyon expects this equipment to be deployed in the field in the summer of 2014.  Canyon expects to complete construction of and take delivery of the remaining 10,000 HHP and the other equipment from the 2014 capital budget throughout the second half of 2014.

Canyon is also pleased to announce that its Board of Directors has declared a quarterly dividend of $0.15 ( 15 cents ) per share for holders of Canyon common shares.  The dividend will be paid on April 25, 2014 to shareholders of record on April 11, 2014.   The ex-dividend date is April 9, 2014 .

Shareholders are advised that this dividend is designated as an "eligible dividend" for Canadian income tax purposes.

Canyon's common shares trade on the Toronto Stock Exchange under the symbol "FRC".  Canyon provides high-quality fracturing and related stimulation services to the oil and gas industry in the Western Canadian Sedimentary Basin.

SOURCE Canyon Services Group Inc.

Contact:

Brad Fedora 
President and CEO 

Canyon Services Group Inc.
2900 Bow Valley Square III 
255 - 5th Avenue SW 
Calgary, Alberta, T2P 3G6 
Phone:  403-290-2491 
Fax:  403-355-2211 

or

Barry O'Brien
Vice President, Finance and CFO

Canyon Services Group Inc.
2900 Bow Valley Square III
255 - 5th Avenue SW
Calgary, Alberta, T2P 3G6
Phone:  403-290-2478
Fax:  403-355-2211

Rates

View Comments (0)