CALGARY - SECURE ENERGY Services Inc. ('SECURE') (TSX: SES) reported today its operational and financial results for the three and nine months ended September 30, 2020.
The following should be read in conjunction with the Corporation's management's discussion and analysis ('MD&A') and the interim consolidated financial statements and notes thereto for the three and nine months ended September 30, 2020, which are available on SEDAR at www.sedar.com.
THIRD QUARTER SUMMARY
The Corporation recorded Adjusted EBITDA1 of $37.0 million for the three months ended September 30, 2020, a decrease of 14% compared to the prior year third quarter, reflecting the level of production and contracted volumes during a period of reduced drilling and completion activity levels. As production came back online following short-term shut-ins due to uneconomic pricing in the second quarter of 2020, the Corporation benefited from increased cash flow stability driven by production-related volumes at SECURE's midstream infrastructure located in low cost light oil and gas related plays in western Canada. The Corporation's newly constructed East Kaybob oil pipeline also contributed to the Corporation's third quarter results, delivering fees-for-service from pipeline tariffs and reliable volumes at the Fox Creek facility. Drilling and completion activity remained muted during the third quarter as producers continue to prudently manage capital and protect their balance sheet.
FORWARD-LOOKING STATEMENTS
Certain statements contained in this document constitute 'forward-looking statements' and/or 'forward-looking information' within the meaning of applicable securities laws (collectively referred to as 'forward-looking statements'). When used in this document, the words 'may', 'would', 'could', 'will', 'intend', 'plan', 'anticipate', 'believe', 'estimate', 'expect', and similar expressions, as they relate to SECURE, or its management, are intended to identify forward-looking statements. Such statements reflect the current views of SECURE and speak only as of the date of this document.
In particular, this document contains or implies forward-looking statements pertaining but not limited to: management's expectations with respect to the impact of COVID-19 on demand for oil, supply and demand balance, and our operations generally; the outlook for oil and liquids prices; spending by producers and the impact of this on SECURE's activity levels; the oil and natural gas industry in Canada and the U.S., including drilling, completion and production activity levels for the remainder of 2020 and beyond in the Corporation's operating areas, and the impact of this on SECURE's business, operations and financial results; the benefits of contracted and/or fee-for-service contracts on SECURE's cash flow and the expected stability of such sources; the benefit of production concentrated volumes on SECURE's cash flow and the expected stability of such sources of cash flow; the timing and stability of contributions from new projects, particularly the East Kaybob oil pipeline; the impact the Canadian Federal Government's orphan and inactive well fund may have to the business, operations and results of the Corporation; restructuring costs for the remainder of the year; the Corporation's ability to execute our restructuring plans and align the Corporation's cost structure with expected industry activity levels; the expected impacts and amounts of the Corporation's cost and capital expenditure reductions; the Corporation's proposed 2020 and 2021 capital expenditure programs, including growth and expansion and sustaining capital expenditures; timing associated with potential divestitures related to specific service lines that do not have recurring or production-related revenue streams and the outcome of such sales process; future dividend payments and expected cash savings resulting from the reduction of the Corporation's cash dividend payments; debt service and the Corporation's ability to meet obligations and commitments and operate within any credit facility restrictions, including the financial covenants related to our debt facilities; expectations that our capital investment, share repurchases and cash dividends will be funded from internally generated cash flows; the Corporation's credit risk levels and it's ability to collect on trade receivables; expected benefits customers will receive from our midstream and environmental solutions; key factors driving the Corporation's success; demand for the Corporation's services and products; industry fundamentals driving the success of SECURE's core operations; future capital needs and how the Corporation intends to fund its operations, working capital requirements, dividends and capital program and access to capital
Forward-looking statements are based on certain assumptions that SECURE has made in respect thereof as at the date of this document regarding, among other things: the impact of COVID-19, including related government responses related thereto and lower global energy pricing on oil and gas industry exploration and development activity levels and production volumes (including as a result of demand and supply shifts caused by COVID-19 and the actions of OPEC and non-OPEC countries); the success of SECURE's operations and growth projects; the Corporation's competitive position remaining substantially unchanged; future acquisition and sustaining costs will not significantly increase from past acquisition and sustaining costs; that counterparties comply with contracts in a timely manner; that there are no unforeseen events preventing the performance of contracts or the completion of the relevant facilities; that there are no unforeseen material costs in relation to the Corporation's facilities and that prevailing regulatory, tax and environmental laws and regulations apply.
Forward-looking statements involve significant known and unknown risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether such results will be achieved. Readers are cautioned not to place undue reliance on these statements as a number of factors could cause actual results to differ materially from the results discussed in these forward-looking statements, including but not limited to those factors referred to under the heading 'Risk Factors' in the AIF. In addition, the effects and impacts of the COVID-19 outbreak, the rapid decline in global energy prices and the length of time to significantly reduce the global threat of COVID-19 on SECURE's business, the global economy and markets are unknown at this time and could cause SECURE's actual results to differ materially from the forward-looking statements contained in this document.
Although forward-looking statements contained in this document are based upon what the Corporation believes are reasonable assumptions, the Corporation cannot assure investors that actual results will be consistent with these forward- looking statements. The forward-looking statements in this document are expressly qualified by this cautionary statement. Unless otherwise required by law, SECURE does not intend, or assume any obligation, to update these forward-looking statements.
ABOUT SECURE
SECURE is a publicly traded energy business listed on the Toronto Stock Exchange ('TSX') providing industry leading customer solutions to upstream oil and natural gas companies operating in western Canada and certain regions in the United States ('U.S.') through its network of midstream processing and storage facilities, crude oil and water pipelines, and crude by rail terminals located throughout key resource plays in western Canada, North Dakota and Oklahoma. SECURE's core midstream infrastructure operations generate cash flows from oil production processing and disposal, produced water disposal, and crude oil storage, logistics, and marketing. SECURE also provides comprehensive environmental and fluid management for landfill disposal, onsite abandonment, remediation and reclamation, drilling, completion and production operations for oil and gas producers in western Canada.
Contact:
Rene Amirault
Tel: (403) 984-6100
Fax: (403) 984-6101
SECURE ENERGY SERVICES INC. 
