CALGARY, ALBERTA--(Marketwire - Dec. 10, 2012) -
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.
Strad Energy Services Ltd., (SDY.TO) ("Strad" or the "Company"), a North American-focused, energy services company, has approved its preliminary 2013 capital expenditure program with an initial budget of $10 million for the first quarter. Strad will evaluate the size of the capital program beyond the first quarter based on industry conditions, and in any case, intends to limit the 2013 program to the Company's operating cash flow (defined as cash flow from operations less taxes, interest and dividends) for the year.
Substantially all of the funds in the initial budget will be used for organic growth opportunities, and will be applied across product lines and geographies on existing products as well as new product innovations. Spending allocated to maintenance capital for the full year is anticipated to be less than $5 million.
The Company has identified a number of opportunities for additional capital deployment in 2013. The initial budget along with periodic re-evaluation of the program provides Strad with the flexibility to pursue additional growth opportunities should they arise. All investment opportunities are evaluated using a disciplined capital allocation method to ensure investment in high-grade opportunities and balance sheet flexibility.
ABOUT STRAD ENERGY SERVICES LTD.
Strad is a North American energy services company that focuses on providing well-site infrastructure activation solutions to the oil and natural gas industry. Strad focuses on providing complete customer solutions in well-site-related oilfield equipment for producers active in unconventional resource plays.
Strad is headquartered in Calgary, Alberta, Canada. Strad is listed on the Toronto Stock Exchange under the trading symbol "SDY".