HOUSTON, June 11, 2018 /PRNewswire/ -- C&J Energy Services, Inc. ("C&J" or the "Company") (NYSE: CJ) today announced that the Company has modified its horizontal frac fleet deployment plans. C&J deployed two horizontal fleets earlier this year and presently continues with two more scheduled for redeployment in the next two months. The remaining three fleets, consisting of approximately 120,000 hydraulic horsepower, that were previously scheduled for deployment starting in October 2018 are being deferred to a later date.
"In line with our disciplined capital deployment philosophy, we have made the strategic decision to delay redeploying our last three fleets due to concerns with take away capacity in the Permian and additional frac horsepower brought to market by some of our peers at lower pricing. At this time, we simply do not have the firm demand and favorable economics for those fleets that we require, so we will postpone deployment until we can obtain the utilization, pricing and time commitment needed to justify those capital expenditures," said Don Gawick, President and Chief Executive Officer of C&J. "We believe that staying true to our strategy will drive enhanced shareholder returns over time. However, we are confident that the fleets currently committed for deployment this year will generate returns within our target of a two-year payback. We look forward to further updating the market on our revised capital expenditure plans when we report second quarter earnings in early August. We remain committed to assessing all potential opportunities to maximize shareholder value over the near and long-term, and we will reassess our fleet deployment strategy once market conditions become clear."
About C&J Energy Services
C&J Energy Services is a leading provider of well construction and intervention, completions, well support and other complementary oilfield services to oil and gas exploration and production companies throughout the United States. We offer a comprehensive, vertically-integrated suite of services and technology throughout the life cycle of the well, including fracturing, cased-hole wireline and pumping, cementing, coiled tubing, rig services, fluids management, and other specialty support services. We are headquartered in Houston, Texas and operate in all active onshore basins of the continental United States. For additional information about C&J, please visit www.cjenergy.com.
Forward-Looking Statements and Cautionary Statements
This press release contains certain statements and information that may constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, that address activities, events or developments that we expect, believe or anticipate will or may occur in the future are forward-looking statements. The words "anticipate," "believe," "ensure," "expect," "if," "once," "intend," "plan," "estimate," "project," "forecasts," "predict," "outlook," "aim," "will," "could," "should," "potential," "would," "may," "probable," "likely," and similar expressions that convey the uncertainty of future events or outcomes, and the negative thereof, are intended to identify forward-looking statements. These forward-looking statements are based on management's current expectations and beliefs, forecasts for our existing operations, experience, expectations and perception of historical trends, current conditions, anticipated future developments and their effect on us, and other factors believed to be appropriate. Although management believes that the expectations and assumptions reflected in these forward-looking statements are reasonable as and when made, no assurance can be given that these assumptions are accurate or that any of these expectations will be achieved (in full or at all). Moreover, our forward-looking statements are subject to significant risks, contingencies and uncertainties, many of which are beyond our control, which may cause actual results to differ materially from our historical results. For additional information regarding known material factors that could cause our actual results to differ from our present expectations, please see our filings with the U.S. Securities and Exchange Commission, including our Current Reports on Form 8-K that we file from time to time, Quarterly Reports on Form 10-Q and Annual Report on Form 10-K. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise, except as required by law.
C&J Energy Services Investor Contact
Daniel E. Jenkins
Vice President – Investor Relations
SOURCE C&J Energy Services, Inc.