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“It would take a very, very compelling financial offer or strategic offer to even consider splitting up the North American businesses,” Treadwell said. “North America is the foundation of Calfrac. I don’t see that view getting altered.”
The company does not see its overseas business in Russia and Argentina as core assets, but the company is not contemplating selling those units either.“In times of industry distress, that’s probably not the best time to monetize the assets,” Treadwell said.
North American drilling activity this year could be half of what it was in 2019 and likely hit a 20-year low, according to Oslo-based energy advisory Rystad Energy.
“Both new wells and drilling lengths will be pared down as E&P’s scale down investments, affecting the entire supply chain associated with these services,” Rystad Energy oilfield services analyst Reza Hassan Kazmi said in a report published Tuesday.