Balance Sheet and 2024 Capital Budget
We are pleased to announce that Net debt1 at the close of Q4 2023 is expected to meet STEP’s year-end corporate target of less than
STEP is also announcing its full-year 2024 capital budget of
Operational Update and Outlook
Fracturing activity across major North American oil and gas regions slowed in Q4 2023 as operators prioritize capital discipline over adding capital to their 2023 budgets.
STEP’s Canadian fracturing operations experienced lower utilization in Q4 relative to Q3 as clients across the basin exhausted their 2023 budgets and did not bring capital forward from 2024. STEP’s Q4
STEP will use the down time in the fourth quarter to prepare for a highly utilized first quarter in
NON-IFRS MEASURES
This press release includes terms and performance measures commonly used in the oilfield services industry that are not defined under IFRS. The terms presented are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These non-IFRS measures have no standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers. The non-IFRS measure should be read in conjunction with STEP’s quarterly financial statements and annual financial statements and the accompanying notes thereto.
“Net debt” is equal to loans and borrowings before deferred financing charges less cash and cash equivalents and CCS derivatives. The data presented is intended to provide additional information about items on the statement of financial position and should not be considered in isolation or as a substitute for measures prepared in accordance with IFRS.
A table representing the composition of the non-IFRS financial measure of Net debt can be found in STEP’s Management Discussion and Analysis for the third quarter of 2023 dated as of
FORWARD-LOOKING INFORMATION & STATEMENTS AND FUTURE-ORIENTED FINANCIAL INFORMATION AND FINANCIAL OUTLOOKS
Certain statements contained in this press release constitute “forward-looking statements” or “forward-looking information” within the meaning of applicable securities laws (collectively, “forward-looking statements”). These statements relate to the expectations of management about future events, results of operations and STEP’s future performance (both operational and financial) and business prospects. All statements other than statements of historical fact are forward-looking statements. The use of any of the words “expects”, “expected”, “guidance”, “intends”, “opportunity”, “may”, “project”, “should”, and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties, and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. While STEP believes the expectations reflected in the forward-looking statements included in this press release are reasonable, such statements are not guarantees of future performance or outcomes and may prove to be incorrect and should not be unduly relied upon.
In particular, but without limitation, this press release contains forward-looking statements pertaining to: anticipated Net debt levels, STEP’s intent to continue to reduce leverage, anticipated spending, expected Q4 2024 fracturing results, expected coiled tubing activity, and expected mobilization dates.
The forward-looking information and statements contained in this press release reflect several material factors and expectations and assumptions of STEP including, without limitation: the general continuance of current or, where applicable, assumed industry conditions; client activity levels and spending; the effect of inflation on the cost of goods and equipment; pricing of STEP’s services; predictable effect of seasonal weather on STEP’s operations; STEP’s ability to market successfully to current and new clients; the effect of competition on STEP; STEP’s ability to utilize its equipment; STEP’s ability to collect on trade and other receivables; STEP’s ability to obtain and retain qualified staff and equipment in a timely and cost-effective manner; levels of deployable equipment in the marketplace; future capital expenditures to be made by STEP; future funding sources for STEP’s capital program; STEP’s future debt levels; the availability of unused credit capacity on STEP’s credit lines. STEP believes the material factors, expectations, and assumptions reflected in the forward-looking information and statements are reasonable, but no assurance can be given that these factors, expectations, and assumptions will prove correct.
This press release also contains future-oriented financial information and financial outlook information (collectively, "FOFI") about STEP’s expected 2023 and 2024 revenues and Net debt levels, all of which are subject to the same assumptions, risk factors, limitations, and qualifications as set forth in the above paragraphs. In addition, the expected Net debt at end of Q4 2023 is based on STEP’s internally generated monthly financial statements for the month of
The forward-looking information and FOFI contained in this press release speak only as of the date of the document, and none of STEP or its subsidiaries assumes any obligation to publicly update or revise them to reflect new events or circumstances, except as may be required pursuant to applicable laws. Actual results could also differ materially from those anticipated in these forward‐looking statements and FOFI due to the risk factors set forth under the heading “Risk Factors” in STEP’s Annual Information Form for the year ended
ABOUT STEP
STEP is an energy services company that provides coiled tubing, fluid and nitrogen pumping and hydraulic fracturing solutions. Our combination of modern equipment along with our commitment to safety and quality execution has differentiated STEP in plays where wells are deeper, have longer laterals and higher pressures. STEP has a high-performance, safety-focused culture and its experienced technical office and field professionals are committed to providing innovative, reliable and cost-effective solutions to its clients.
Founded in 2011 as a specialized deep capacity coiled tubing company, STEP has grown into a North American service provider delivering completion and stimulation services to exploration and production (“E&P”) companies in
Our four core values; Safety, Trust, Execution and Possibilities inspire our team of professionals to provide differentiated levels of service, with a goal of flawless execution and an unwavering focus on safety.
For more information please contact:
President and Chief Executive Officer Telephone: 403-457-1772 Email: investor_relations@step-es.com Web: www.stepenergyservices.com | Chief Financial Officer Telephone: 403-457-1772 |
1 Net debt is a non-IFRS financial measure, which is not defined and does not have a standardized meaning under IFRS. See “Non-IFRS Measures” below.
Source:
2023 GlobeNewswire, Inc., source