CONSOLIDATED HIGHLIGHTS
FINANCIAL REVIEW
($000s except percentages, per share amounts, days, proppant pumped, horsepower, and units) | Three months ended | ||||||||
2022 | 2021 | 2021 | |||||||
Consolidated revenue | $ | 219,539 | $ | 136,812 | $ | 158,716 | |||
Net income (loss) | $ | 9,173 | $ | (7,944 | ) | $ | (6,212 | ) | |
Per share-basic | $ | 0.135 | $ | (0.117 | ) | $ | (0.091 | ) | |
Per share-diluted | $ | 0.132 | $ | (0.117 | ) | $ | (0.091 | ) | |
Weighted average shares – basic | 68,189,275 | 67,720,318 | 68,141,058 | ||||||
Weighted average shares – diluted | 69,737,461 | 67,720,318 | 68,141,058 | ||||||
Adjusted EBITDA (1) | $ | 36,990 | $ | 15,960 | $ | 17,340 | |||
Adjusted EBITDA % (1) | 17 | % | 12 | % | 11 | % | |||
Fracturing services | |||||||||
Fracturing operating days (2) | 615 | 414 | 508 | ||||||
Proppant pumped (tonnes) | 601,000 | 516,000 | 495,000 | ||||||
Active horsepower (“HP”), ending (3) | 380,000 | 310,000 | 365,000 | ||||||
Total HP, ending | 490,000 | 490,000 | 490,000 | ||||||
Coiled tubing services | |||||||||
Coiled tubing operating days (2) | 1,075 | 776 | 955 | ||||||
Active coiled tubing units, ending | 16 | 14 | 15 | ||||||
Total coiled tubing units, ending | 29 | 29 | 29 |
(1) Adjusted EBITDA is a non-IFRS financial measure and Adjusted EBITDA % is a non-IFRS financial ratio. These metrics are not defined and have no standardized meaning under IFRS. See Non-IFRS Measures and Ratios.
(2) An operating day is defined as any coiled tubing or fracturing work that is performed in a 24-hour period, exclusive of support equipment.
(3) Active horsepower denotes units active on client work sites. An additional 15-20% of this amount is required to accommodate equipment maintenance cycles.
($000s except shares) | ||||||||
2022 | 2021 | |||||||
Cash and cash equivalents | $ | 6,637 | $ | 3,698 | ||||
Working capital (including cash and cash equivalents) (1) | $ | 52,800 | $ | 3,912 | ||||
Total assets | $ | 546,651 | $ | 483,848 | ||||
Total long-term financial liabilities (1) | $ | 211,928 | $ | 175,689 | ||||
Net debt (1) | $ | 214,278 | $ | 186,885 | ||||
Shares outstanding | 68,204,590 | 68,156,981 |
(1) Working capital, Total long-term financial liabilities and Net debt are non-IFRS financial measures. They are not defined and have no standardized meaning under IFRS. See Non-IFRS Measures and Ratios.
Three months ended | ||||||||||
2022 | 2021 | 2021 | 2021 | 2021 | ||||||
AECO-C Spot Average Price (CAD/MMBtu) | $ | 4.78 | $ | 4.75 | $ | 3.57 | $ | 3.10 | $ | 3.10 |
WTI – Average Price (USD/bbl) | $ | 94.77 | $ | 77.31 | $ | 70.61 | $ | 66.19 | $ | 58.04 |
WCS – Average Price (USD/bbl) | $ | 81.80 | $ | 60.84 | $ | 57.64 | $ | 53.29 | $ | 46.21 |
Condensate – Average Price (USD/bbl) | $ | 97.19 | $ | 79.53 | $ | 70.85 | $ | 64.87 | $ | 59.16 |
Average Exchange Rate (USD/CAD) | $ | 0.79 | $ | 0.79 | $ | 0.79 | $ | 0.81 | $ | 0.79 |
Canadian Average Drilling Rig Count (4) | 193 | 159 | 150 | 71 | 144 | |||||
636 | 545 | 484 | 437 | 378 |
Source:
(4) Only includes land-based rigs.
FINANCIAL HIGHLIGHTS
- Revenue of
$219.5 million in the first quarter of 2022 was the strongest first quarter in company history and was significantly better than the$136.8 million generated in Q1 2021 and$158.7 million generated in Q4 2021. - Q1 2022 adjusted EBITDA of
$37.0 million , was an increase of 131% over the$16.0 million generated in Q1 2021 and a sequential increase of 114% over the$17.3 million generated in Q4 2021. Q1 2021 benefited from$3.6 million of Canadian Emergency Wage Subsidy (“CEWS”) (Q4 2021 - $nil, Q1 2022 - $nil). - Q1 2022 generated net income of
$9.2 million , the first quarter since Q3 2018 that STEP generated net income. STEP had a net loss of$7.9 million in Q1 2021 and a net loss of$6.2 million in Q4 2021. - STEP’s operations in
Canada and theU.S. continued to benefit from improving market conditions, with net pricing and utilization improvements driving stronger financial results in Q1 2022 relative to Q4 2021. - As a result of the significant increase in operating activity in Q1 2022, Working capital increased to
$52.8 million at the end of Q1 from$3.9 million in Q4 2021 and Net debt increased to$214.3 million from$186.9 million in Q4 2021. - Subsequent to
March 31, 2022 , STEP delivered notice to its syndicate of lenders of early termination of the covenant relief, reflecting the Company’s return to conventional credit metrics and lowering the Company’s borrowing costs by 200 basis points for the remainder of the second quarter.
FIRST QUARTER 2022 OVERVIEW
The first quarter of 2022 delivered the confident start to the year that the Company had signalled in its Q4 2021 release. Industry activity levels, as represented by rig counts, increased markedly on a sequential and year over year basis. According to the Baker Hughes rig count, the Canadian land rig count averaged 193 in Q1 2022, up 21% sequentially and 35% on a year over year basis. The
STEP’s fracturing and coiled tubing crews experienced high utilization across both countries, despite the typical cold weather impacts early in Q1 2022 and the Omicron COVID 19 variant that caused significant operational disruption. The health and safety of our professionals is our utmost priority, and Management is extremely proud of the resilience shown by our operational teams as they managed crews in the field that were impacted by quarantine requirements while still delivering the Exceptional Client Experience that STEP prides itself in. Management estimates that COVID 19 had an impact of
The Company pumped 601 thousand tonnes of sand, across 395 operating days in
Rising industry activity supported our continued drive for higher pricing, as exploration and production (“E&P”) companies faced inflationary pressure from service providers across their value chain. STEP faced similar inflationary pressure from its supply chain but has been successful in passing on these costs to our clients and through strategic buying has been able to secure supply and cost certainty. Our
STEP generated
STEP earned
The sharp ramp up in activity and increased STEP supplied sand in the
OUTLOOK
STEP anticipates that the current strength in oil and gas prices will continue through the balance of the year, supporting higher demand for oilfield services. Global inventories of oil and gas were already at the low end of their five-year ranges, and there are indications that the fallout from Russia’s unprovoked invasion of
The Company has a constructive view on the second quarter, which could show stronger results than the second quarter of 2021, itself the strongest on record for the Company. Fracturing capacity in the
Visibility into the second half of the year is improving, with much of the third quarter fracturing schedule already filled. Consistent with the commentary coming from the publicly traded drilling companies, our clients are indicating that rig count will build and that the Q4 rig count will be higher than Q1, which will be supportive of a highly utilized fourth quarter.
Inflationary pressures are expected to continue building. Costs of proppant, chemicals, equipment parts, electronics, major components are all increasing, with availability becoming more of a concern than it has been in the past.
The limited availability of qualified labour and field ready equipment will constrain the ability of the oilfield service sector to add capacity, creating a market that has tightened considerably since the fourth quarter of 2021. These restraints are fortifying the oilfield service narrative around the need for increased pricing not just to cover the cost of inflation but also the need for return to shareholders. STEP will continue to move prices higher, targeting top of cycle returns, and anticipates sequential margin growth in the coming quarters as the market shifts from oversupplied in 2021 to an undersupplied position in 2022.
STEP is also pleased to announce the inaugural publication of its Environment, Social and Governance Report (“ESG Report”) which highlights the Company’s historic and current drive to incorporate sustainable practices and strategies throughout its operations, and to communicate its progress and commitment to continual improvement with key stakeholders. The ESG Report covers the period
CAPITAL EXPENDITURES
In response to the higher activity expectations, STEP’s Board of Directors has approved an increase of
The Company will continue to evaluate and manage its manned equipment fleet and capital program based on market demand for STEP’s services.
CANADIAN FINANCIAL AND OPERATIONS REVIEW
STEP has a fleet of 16 coiled tubing units in the WCSB. The Company’s coiled tubing units are designed to service the deepest wells in the WCSB. STEP’s fracturing business primarily focuses on the deeper, more technically challenging plays in
($000’s except per day, days, units, proppant pumped and HP) | Three months ended | ||||||||
2022 | 2021 | 2021 | |||||||
Revenue: | |||||||||
Fracturing | $ | 119,014 | $ | 87,829 | $ | 68,590 | |||
Coiled tubing | 27,798 | 21,533 | 22,868 | ||||||
146,812 | 109,362 | 91,458 | |||||||
Expenses: | |||||||||
Operating expenses | 121,365 | 96,126 | 85,391 | ||||||
Selling, general and administrative | 3,324 | 1,764 | 1,820 | ||||||
Results from operating activities | $ | 22,123 | $ | 11,472 | $ | 4,247 | |||
Add non-cash items: | |||||||||
Depreciation | 9,126 | 9,239 | 9,294 | ||||||
Share-based compensation – Cash settled | 544 | 361 | 72 | ||||||
Share-based compensation – Equity settled | 75 | 459 | (22 | ) | |||||
Adjusted EBITDA (1) | $ | 31,867 | $ | 21,531 | $ | 13,591 | |||
Adjusted EBITDA % (1) | 22 | % | 20 | % | 15 | % | |||
Sales mix (% of segment revenue) | |||||||||
Fracturing | 81 | % | 80 | % | 75 | % | |||
Coiled tubing | 19 | % | 20 | % | 25 | % | |||
Fracturing services | |||||||||
Fracturing revenue per operating day (1) | $ | 301,301 | $ | 313,675 | $ | 245,842 | |||
Number of fracturing operating days (2) | 395 | 280 | 279 | ||||||
Proppant pumped (tonnes) | 323,000 | 327,000 | 193,000 | ||||||
Stages completed | 4,761 | 3,213 | 3,593 | ||||||
Proppant pumped per stage | 68 | 102 | 54 | ||||||
Horsepower (“HP”) | |||||||||
Active pumping HP, end of period (3) | 215,000 | 200,000 | 200,000 | ||||||
Total pumping HP, end of period | 282,500 | 282,500 | 282,500 | ||||||
Coiled tubing services | |||||||||
Coiled tubing revenue per operating day (1) | $ | 49,551 | $ | 46,709 | $ | 51,045 | |||
Number of coiled tubing operating days (2) | 561 | 461 | 448 | ||||||
Active coiled tubing units, end of period | 8 | 7 | 7 | ||||||
Total coiled tubing units, end of period | 16 | 16 | 16 |
(1) Adjusted EBITDA is a non-IFRS financial measure and Adjusted EBITDA % and Revenue per operating day are non-IFRS financial ratios. They are not defined and have no standardized meaning under IFRS. See Non-IFRS Measures and Ratios.
(2) An operating day is defined as any coiled tubing or fracturing work that is performed in a 24-hour period, exclusive of support equipment.
(3) Active horsepower denotes units active on client work sites. An additional 15-20% of this amount is required to accommodate equipment maintenance cycles.
FIRST QUARTER 2022 COMPARED TO FIRST QUARTER 2021
Revenue for the three months ended
Operating expenses scaled upwards with increased activity levels. Personnel related costs increased following adjustments to base and incentive pay to remain competitive in the current market and the reinstatement of various benefits and allowances that were eliminated during the Pandemic to reduce costs. Inflationary pressures continued to be a factor in the current quarter with supply chain disruptions, commodity price appreciation, and increased industry activity resulting in costs escalating across all expense categories. The overhead and SG&A structure has been scaled up to support increased field operations compared to the first quarter of 2021, however, the Company will continue to maintain a lean cost structure while adequately supporting the growth of the business.
Adjusted EBITDA for the first quarter of 2022 was
Fracturing
Canadian fracturing revenue of
The oil focused work is typically characterized by higher stages and lower proppant per stage, which resulted in a lower revenue per day and proppant per stage relative to Q1 2021, which was more focused on the natural gas plays in the
Coiled Tubing
Canadian coiled tubing revenue of
FIRST QUARTER 2022 COMPARED TO FOURTH QUARTER 2021
Revenue for the three months ended
Canadian operations had Adjusted EBITDA of
Fracturing
STEP operated five fracturing spreads with 215,000 HP during the first quarter of 2022, compared to four spreads and 200,000 HP operated during the fourth quarter of 2021. The growing demand from oil focused E&P clients enabled STEP to add a small low pressure fracturing spread in Q1 2022, while continuing to enjoy strong utilization on the larger crews that work in the gas focused areas of the basin. Total operating days surged 42% on a quarter over quarter basis and revenue increased to
The high level of activity throughout the basin created a more constructive pricing environment, allowing for recovery of costs as well as modest margin expansion. Pricing in Q1 2022 increased in response to inflation by approximately 10-15% from Q4 2021 although timing of the increase limited the immediate quarterly benefit to less than 5%. The full benefit of the pricing increase is expected to be realized in the coming quarters.
Coiled Tubing
Coiled tubing operations operated eight coiled tubing units, with 561 operating days, generating
STEP’s
($000’s except per day, days, units, proppant pumped and HP) | Three months ended | ||||||||
2022 | 2021 | 2021 | |||||||
Revenue: | |||||||||
Fracturing | $ | 49,667 | $ | 16,425 | $ | 44,773 | |||
Coiled tubing | 23,060 | 11,025 | 22,485 | ||||||
72,727 | 27,450 | 67,258 | |||||||
Expenses: | |||||||||
Operating expenses | 68,127 | 38,029 | 66,520 | ||||||
Selling, general and administrative | 2,904 | 1,406 | 2,496 | ||||||
Results from operating activities | $ | 1,696 | $ | (11,985 | ) | $ | (1,758 | ) | |
Add non-cash items: | |||||||||
Depreciation | 7,694 | 8,691 | 9,829 | ||||||
Share-based compensation – Cash settled | 430 | 277 | (59 | ) | |||||
Share-based compensation – Equity settled | - | - | - | ||||||
Adjusted EBITDA (1) | $ | 9,822 | $ | (3,017 | ) | $ | 8,012 | ||
Adjusted EBITDA % (1) | 14 | % | (11 | %) | 12 | % | |||
Sales mix (% of segment revenue) | |||||||||
Fracturing | 68 | % | 60 | % | 67 | % | |||
Coiled tubing | 32 | % | 40 | % | 33 | % | |||
Fracturing services | |||||||||
Fracturing revenue per operating day (1) | $ | 225,759 | $ | 122,575 | $ | 195,515 | |||
Number of fracturing operating days (2) | 220 | 134 | 229 | ||||||
Proppant pumped (tonnes) | 278,000 | 189,000 | 302,000 | ||||||
Stages completed | 1,122 | 909 | 1,515 | ||||||
Proppant pumped per stage | 248 | 208 | 199 | ||||||
Horsepower (“HP”) | |||||||||
Active pumping HP, end of period (3) | 165,000 | 110,000 | 165,000 | ||||||
Total pumping HP, end of period | 207,500 | 207,500 | 207,500 | ||||||
Coiled tubing services | |||||||||
Coiled tubing revenue per operating day (1) | $ | 44,864 | $ | 35,000 | $ | 44,349 | |||
Number of coiled tubing operating days (2) | 514 | 315 | 507 | ||||||
Active coiled tubing units, end of period | 8 | 7 | 8 | ||||||
Total coiled tubing units, end of period | 13 | 13 | 13 |
(1) Adjusted EBITDA is a non-IFRS financial measure and Adjusted EBITDA % and Revenue per operating day are non-IFRS financial ratios. They are not defined and have no standardized meaning under IFRS. See Non-IFRS Measures and Ratios.
(2) An operating day is defined as any coiled tubing or fracturing work that is performed in a 24-hour period, exclusive of support equipment.
(3) Active horsepower denotes units active on client work sites. An additional 15-20% of this amount is required to accommodate equipment maintenance cycles.
FIRST QUARTER 2022 COMPARED TO FIRST QUARTER 2021
Revenue for the three months ended
Fracturing
STEP operated three fracturing spreads with 165,000 HP during the first quarter of 2022, compared to two spreads and 110,000 HP operated during the first quarter of 2021. Operating days across the fracturing operations increased to 220 in the first quarter of 2022 from 134 days during the first quarter of 2021 due to an improved operating environment and from operating an additional fracturing spread in the current period.
Revenue per day for the first quarter of 2022 increased by 84% primarily due to increased proppant supplied by STEP combined with improved pricing.
Coiled Tubing
FIRST QUARTER 2022 COMPARED TO FOURTH QUARTER 2021
Revenue for the first quarter of 2022 increased
Adjusted EBITDA of
Fracturing
Changing client mix, improved demand and higher rates resulted in revenue of
Coiled Tubing
Coiled tubing operations continued to operate eight coiled tubing units, with 514 operating days, generating
CORPORATE FINANCIAL REVIEW
The Company’s corporate activities are separated from Canadian and
($000’s) | Three months ended | ||||||||
2022 | 2021 | 2021 | |||||||
Expenses: | |||||||||
Operating expenses | $ | 571 | $ | 214 | $ | 360 | |||
General and administrative | 8,722 | 5,205 | 4,108 | ||||||
Results from operating activities | $ | (9,293 | ) | $ | (5,419 | ) | $ | (4,468 | ) |
Add items: | |||||||||
Depreciation | 138 | 173 | 137 | ||||||
Share-based compensation – Cash settled | 4,192 | 1,564 | 7 | ||||||
Share-based compensation – Equity settled | 265 | 1,128 | 61 | ||||||
Adjusted EBITDA (1) | $ | (4,699 | ) | $ | (2,554 | ) | $ | (4,263 | ) |
Adjusted EBITDA % (1) | (2 | %) | (2 | %) | (3 | %) |
(1) Adjusted EBITDA is a non-IFRS financial measure and Adjusted EBITDA % is a non-IFRS financial ratio. They are not defined and have no standardized meaning under IFRS. See Non-IFRS Measures and Ratios.
FIRST QUARTER 2022 COMPARED TO FIRST QUARTER 2021
For the three months ended
FIRST QUARTER 2022 COMPARED TO FOURTH QUARTER 2021
Expenses from corporate activities were
NON-IFRS MEASURES AND RATIOS
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 measures should be read in conjunction with the Company’s Quarterly Financial Statements and Annual Financial Statements and the accompanying notes thereto.
“Adjusted EBITDA” is a financial measure not presented in accordance with IFRS and is equal to net (loss) income before finance costs, depreciation and amortization, (gain) loss on disposal of property and equipment, current and deferred income tax provisions and recoveries, equity and cash settled share-based compensation, transaction costs, foreign exchange forward contract (gain) loss, foreign exchange (gain) loss, and impairment losses. “Adjusted EBITDA %” is a non-IFRS ratio and is calculated as Adjusted EBITDA divided by revenue. Adjusted EBITDA and Adjusted EBITDA % are presented because they are widely used by the investment community as they provide an indication of the results generated by the Company’s normal course business activities prior to considering how the activities are financed and the results are taxed. The Company uses Adjusted EBITDA and Adjusted EBITDA % internally to evaluate operating and segment performance, because management believes they provide better comparability between periods. The following table presents a reconciliation of the non-IFRS financial measure of Adjusted EBITDA to the IFRS financial measure of net income (loss).
($000s except percentages) | Three months ended | ||||||||
2022 | 2021 | 2021 | |||||||
Net income (loss) | $ | 9,173 | $ | (7,944 | ) | $ | (6,212 | ) | |
Add (deduct): | |||||||||
Depreciation and amortization | 17,072 | 18,217 | 19,376 | ||||||
(Gain) loss on disposal of equipment | (818 | ) | 369 | (638 | ) | ||||
Finance costs | 3,317 | 3,087 | 4,196 | ||||||
Income tax expense (recovery) | 2,560 | (1,549 | ) | 314 | |||||
Share-based compensation – Cash settled | 5,166 | 2,202 | 21 | ||||||
Share-based compensation – Equity settled | 340 | 1,587 | 38 | ||||||
Foreign exchange loss (gain) | 180 | (9 | ) | 245 | |||||
Adjusted EBITDA | $ | 36,990 | $ | 15,960 | $ | 17,340 | |||
Adjusted EBITDA % | 17 | % | 12 | % | 11 | % |
“Revenue per operating day” is a financial ratio not presented in accordance with IFRS and is used as a reference to represent market pricing for our services. It is calculated based on total revenue divided by total operating days. An operating day is defined as any coiled tubing and fracturing work that is performed in a 24-hour period, exclusive of support equipment. This calculation may fluctuate based on both pricing and sales mix. See the tables under “Canadian Operations Review” and “United States Operations Review” for the inputs used to calculate STEP’s revenue per operating day metrics.
“Working capital”, “Total long-term financial liabilities” and “Net debt” are financial measures not presented in accordance with IFRS. “Working capital” is equal to total current assets less total current liabilities. “Total long-term financial liabilities” is comprised of loans and borrowings, long-term lease obligations and other liabilities. “Net debt” is equal to loans and borrowings before deferred financing charges less cash and cash equivalents. 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.
The following table represents the composition of the non-IFRS financial measure of Working capital (including cash and cash equivalents).
($000s) | ||||||||
2022 | 2021 | |||||||
Current assets | $ | 198,478 | $ | 133,255 | ||||
Current liabilities | (145,678 | ) | (129,343 | ) | ||||
Working capital (including cash and cash equivalents) | $ | 52,800 | $ | 3,912 |
The following table presents the composition of the non-IFRS financial measure of Total long-term financial liabilities.
($000s) | ||||||||
2022 | 2021 | |||||||
Long-term loans | $ | 192,442 | 162,007 | |||||
Long-term leases | 11,324 | 9,163 | ||||||
Other long-term liabilities | 8,162 | 4,519 | ||||||
Total long-term financial liabilities | $ | 211,928 | 175,689 |
The following table presents the composition of the non-IFRS financial measure of Net debt.
($000s) | ||||||||||
2022 | 2021 | |||||||||
Loans and borrowings | $ | 220,392 | 189,957 | |||||||
Add back: Deferred financing costs | 523 | 626 | ||||||||
Less: Cash and cash equivalents | (6,637 | ) | (3,698 | ) | ||||||
Net debt | $ | 214,278 | 186,885 |
RISK FACTORS AND RISK MANAGEMENT
The oilfield services industry involves many risks, which may influence the ultimate success of the Company. The risks and uncertainties set out in the AIF and Annual MD&A are not the only ones the Company is facing. There are additional risks and uncertainties that the Company does not currently know about or that the Company currently considers immaterial which may also impair the Company’s business operations and can cause the price of the Common Shares to decline. Readers should review and carefully consider the disclosure provided under the heading “Risk Factors” in the AIF and “Risk Factors and Risk Management” in the Annual MD&A, both of which are available on www.sedar.com, and the disclosure provided in this Press Release under the headings “Industry Conditions & Outlook”. In addition, global and national risks associated with inflation or economic contraction may adversely affect the Company by, among other things, reducing economic activity resulting in lower demand, and pricing, for crude oil and natural gas products, and thereby the demand and pricing for the Company’s services. Other than as supplemented in this Press Release, the Company’s risk factors, and management thereof has not changed substantially from those disclosed in the AIF and Annual MD&A.
FORWARD-LOOKING INFORMATION & STATEMENTS
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 the Company’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 “anticipate”, “plan”, “contemplate”, “continue”, “estimate”, “expect”, “intend”, “propose”, “might”, “may”, “will”, “shall”, “project”, “should”, “could”, “would”, “believe”, “predict”, “forecast”, “pursue”, “potential”, “objective” and “capable” 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 the Company 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: 2022 industry conditions and outlook, including the continuation of string oil and gas prices in 2022, and its effects on drilling activity levels and activity levels; anticipated Q2 2022 results; the potential for higher North American energy exports; supply and demand for the Company’s and its competitors’ services, including the ability for the industry to respond to demand increases and the Company’s capacity commitments; expected price improvements for the Company’s services; the impact of weather on the Company’s operations; staffing challenges and labour shortages, and its effect on activity and equipment levels and service sector supply; the potential for an undersupplied market in 2022; the Company’s ability to realize the benefits of pricing increases in subsequent quarters; the Company’s ability to meet all financial commitments including interest payments over the next twelve months; the Company’s anticipated business strategies and expected success, including the level of operating capacity in
The forward-looking information and statements contained in this Press Release reflect several material factors and expectations and assumptions of the Company including, without limitation: the effect of military conflict in the
Actual results could differ materially from those anticipated in these forward‐looking statements due to the risk factors set forth under the heading “Risk Factors” in the AIF and under the heading “Risk Factors and Risk Management” in this Press Release and the Annual MD&A.
Any financial outlook or future orientated financial information contained in this Press Release regarding prospective financial performance, financial position or cash flows is based on the assumptions about future events, including economic conditions and proposed courses of action based on management’s assessment of the relevant information that is currently available. Projected operational information, including the Company’s capital program, contains forward looking information and is based on a number of material assumptions and factors, as are set out above. These projections may also be considered to contain future oriented financial information or a financial outlook. The actual results of the Company’s operations will likely vary from the amounts set forth in these projections and such variations may be material. Readers are cautioned that any such financial outlook and future oriented financial information contains herein should not be used for purposes other than those for which it is disclosed herein.
The forward-looking information and statements contained in this Press Release speak only as of the date of the document, and none of the Company 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. The reader is cautioned not to place undue reliance on forward-looking information.
ABOUT STEP
STEP is an oilfield service company that provides stand-alone and fully integrated fracturing, fluid and nitrogen pumping, and coiled tubing 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 E&P 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 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:
Chief Executive Officer | Chief Financial Officer | |||
Telephone: 403-457-1772 | Telephone: 403-457-1772 |
Email: investor_relations@step-es.com
Web: www.stepenergyservices.com
Source:
2022 GlobeNewswire, Inc., source