CONSOLIDATED HIGHLIGHTS
FINANCIAL REVIEW
($000s except percentages, per share amounts, days, proppant pumped, horsepower, and units) | Three months ended | Years ended | |||||||||||||||||||||||
2021 | 2020 | 2021 | 2021 | 2020 | 2019 | ||||||||||||||||||||
Consolidated revenue | $ | 158,716 | $ | 71,568 | $ | 133,235 | $ | 536,309 | $ | 368,945 | $ | 668,297 | |||||||||||||
Net loss | $ | (6,212 | ) | $ | (17,045 | ) | $ | (3,388 | ) | $ | (28,127 | ) | $ | (119,358 | ) | $ | (143,883 | ) | |||||||
Per share-basic | $ | (0.08 | ) | $ | (0.25 | ) | $ | (0.05 | ) | $ | (0.41 | ) | $ | (1.77 | ) | $ | (2.16 | ) | |||||||
Per share-diluted | $ | (0.08 | ) | $ | (0.25 | ) | $ | (0.05 | ) | $ | (0.41 | ) | $ | (1.77 | ) | $ | (2.16 | ) | |||||||
Weighted average shares – basic | 68,141,058 | 67,588,137 | 68,112,520 | 68,007,878 | 67,321,951 | 66,763,210 | |||||||||||||||||||
Weighted average shares – diluted | 68,141,058 | 67,588,137 | 68,112,520 | 68,007,878 | 67,321,951 | 66,763,210 | |||||||||||||||||||
Adjusted EBITDA(1) | $ | 17,340 | $ | 2,447 | $ | 17,988 | $ | 62,963 | $ | 30,881 | $ | 78,809 | |||||||||||||
Adjusted EBITDA %(1) | 11 | % | 3 | % | 14 | % | 12 | % | 8 | % | 12 | % | |||||||||||||
Fracturing services | |||||||||||||||||||||||||
Fracturing operating days(2) | 508 | 261 | 439 | 1,681 | 1,129 | 2,000 | |||||||||||||||||||
Proppant pumped (tonnes) | 495,000 | 318,394 | 496,000 | 1,972,000 | 1,376,064 | 1,525,000 | |||||||||||||||||||
Active horsepower (“HP”), ending(3) | 365,000 | 260,000 | 365,000 | 365,000 | 260,000 | 382,500 | |||||||||||||||||||
Total HP, ending | 490,000 | 490,000 | 490,000 | 490,000 | 490,000 | 490,000 | |||||||||||||||||||
Coiled tubing services | |||||||||||||||||||||||||
Coiled tubing operating days(2) | 955 | 567 | 850 | 3,307 | 2,583 | 4,172 | |||||||||||||||||||
Active coiled tubing units, ending | 15 | 11 | 15 | 15 | 11 | 17 | |||||||||||||||||||
Total coiled tubing units, ending | 29 | 29 | 29 | 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) | |||||||||||
As at | 2021 | 2020 | 2019 | ||||||||
Cash and cash equivalents | $ | 3,698 | $ | 1,266 | $ | 7,267 | |||||
Working capital (including cash and cash equivalents)(1) | $ | 3,912 | $ | 42,867 | $ | 72,156 | |||||
Total assets | $ | 483,848 | $ | 479,859 | $ | 686,039 | |||||
Total long-term financial liabilities(1) | $ | 175,689 | $ | 214,848 | $ | 247,481 | |||||
Net debt(1) | $ | 186,885 | $ | 208,735 | $ | 232,552 | |||||
Shares outstanding | 68,156,981 | 67,713,824 | 66,942,830 |
(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.
(unaudited) | Three months ended | |||||||||
2021 | 2021 | 2021 | 2021 | 2020 | ||||||
AECO-C Spot Average Price (CAD/MMBtu) | $ | 4.75 | $ | 3.57 | $ | 3.10 | $ | 3.10 | $ | 2.66 |
WTI – Average Price (USD/bbl) | $ | 77.31 | $ | 70.61 | $ | 66.19 | $ | 58.04 | $ | 42.72 |
WCS – Average Price (USD/bbl) | $ | 60.84 | $ | 57.64 | $ | 53.29 | $ | 46.21 | $ | 31.44 |
Condensate – Average Price (USD/bbl) | $ | 79.53 | $ | 70.85 | $ | 64.87 | $ | 59.16 | $ | 43.08 |
Average Exchange Rate (USD/CAD) | $ | 0.79 | $ | 0.79 | $ | 0.81 | $ | 0.79 | $ | 0.77 |
Canadian Average Drilling Rig Count (4) | 159 | 150 | 71 | 144 | 88 | |||||
545 | 484 | 437 | 378 | 297 |
(4) Only includes land‐based rigs.
Source: PSAC,
FINANCIAL HIGHLIGHTS – 2021 ANNUAL
- Consolidated revenue for the year ended
December 31, 2021 of$536.3 million increased by 45% from$368.9 million in the prior year. - Net loss for the year ended
December 31, 2021 was$28.1 million compared to a net loss of$119.4 million in 2020. - For the year ended
December 31, 2021 , Adjusted EBITDA was$63.0 million or 12% of revenue compared to$30.9 million or 8% of revenue in the prior year. - During the year ended
December 31, 2021 , the Company received$6.8 million in the Canadian Emergency Wage Subsidy (“CEWS”) program and$0.3 million in grants under the Canadian Emergency Rent Subsidy (“CERS”) program, compared to$11.7 million and$0.03 million in 2020, respectively. The grants were recorded as a reduction to wage and rent expenses. - STEP has made significant progress on debt reduction. The Company had net debt of
$186.9 million atDecember 31, 2021 compared to$208.7 million as atDecember 31, 2020 . - On
August 3, 2021 , STEP entered into a Second Amending Agreement to its Second Amended and Restated Credit Agreement with its syndicate of lenders dated as ofAugust 13, 2020 , as previously amendedNovember 3, 2020 ,March 17, 2021 , andMay 12, 2021 , which includes a Canadian$200.0 million term facility, a Canadian$30.0 million revolving facility, a Canadian$10.0 million operating facility, and aU.S. $15.0 million operating facility (collectively, the “Credit Facilities”). - STEP had
$57.5 million of liquidity atDecember 31, 2021 (December 31, 2020 -$49.0 million ) and was compliant with all covenants in the Credit Facilities atDecember 31, 2021 .
FOURTH QUARTER 2021 OVERVIEW
The fourth quarter of 2021 continued the recovery in oilfield services across
The increase in rig counts drove completions activity higher in the fourth quarter, benefitting STEP’s fracturing and coiled tubing service lines. Utilization was strong through most of the quarter outside of the typical holiday slowdowns around
Total proppant pumped of 495,000 tonnes was in line with the third quarter of 2021 but significantly higher than the fourth quarter of 2020. The volume of proppant pumped per day was lower sequentially due to Canadian operations, where delays caused by challenging well conditions on a client location and a shift in job mix to include a higher proportion of smaller jobs with reduced efficiency. The increase in smaller completion jobs is the result of improving oil prices, which is incenting operators to revisit oil producing fields that previously had unfavourable economics.
STEP generated revenue of
The increased activity levels brought on by higher commodity prices delivered Adjusted EBITDA of
The Company recorded a net loss of
The Company managed its balance sheet cautiously, closing the quarter with a net debt position of
INDUSTRY CONDITIONS AND OUTLOOK
INDUSTRY CONDITIONS
The Russian invasion of
The geopolitical tensions have added a risk premium to oil and gas prices, but even before this conflict erupted, prices were forecasted to stay elevated throughout 2022 and into 2023, supported by a recovery in the world’s major economies. The strong price environment is expected to drive continued strong exploration and production (“E&P”) company cash flows, which will support higher oilfield service activity levels.
Public commentary from larger E&P companies has been broadly consistent around the need for measured growth that shows capital discipline and returns capital to shareholders, something we expect will continue unless there is an explicit call to increase North American production following a move to ban Russian oil. We are seeing private and smaller public E&P companies taking advantage of the strong cash flows generated by the high commodity prices to increase their investment into drilling and completions activity. This investment was a significant factor in 2021, and we expect that it will continue in 2022.
There were already signs that the global crude oil market is tightening, with some forecasters calling for an undersupplied crude oil market in the second half of 2022 following a prolonged period of underinvestment.
The underinvestment in
FULL YEAR OUTLOOK
Industry forecasts for 2022 are predicting a steady increase in activity across the oilfield service sector. Rig counts in 2022 are expected to track approximately 20% higher in
The tightness in equipment supply will be exacerbated by the difficulty in recruiting personnel to staff active equipment. The industry was forced to layoff thousands of qualified personnel, many of whom have found employment in competing industries and are unlikely to return given the volatility experienced in the oil and gas industry since 2015. STEP retained a highly trained core group of professionals through the downturn and has been able to distribute this experience through the company as we recruit lesser experienced professionals to join our company, but there is a limit to how many new recruits can be added safely and not compromise execution. STEP has already experienced higher third-party non-productive time in Q1 2022 on client well sites, underscoring the need for the industry to be measured in its recruitment so as not to compromise operational effectiveness.
As demand for fracturing services continues to recover, the market is moving to an undersupplied position in 2022, creating an environment where service providers will be able to capture pricing improvement beyond cost inflation. STEP has raised prices through Q4 2021 and into Q1 2022 for all clients, pushing to capture margin beyond inflation. STEP has remained disciplined and supportive of the need for higher pricing and is confident that as available capacity shrinks, all service providers will participate in raising prices and margins. STEP will continue to move pricing higher, targeting peak returns experienced in previous industry cycles.
FIRST AND SECOND QUARTER 2022 OUTLOOK
STEP is currently operating three large fracturing crews in the
The
Our fracturing and coiled tubing crews are booked through the balance of the first quarter with strong utilization expected to continue into the second quarter. STEP’s northern US and Canadian operations will be affected by the seasonal spring break up conditions, which restrict our ability to move equipment in order to protect roads from damage as the ground thaws. The strong activity forecast is expected to keep second quarter pricing in line with first quarter pricing in
STEP anticipates releasing its inaugural Environmental, Social and Governance (“ESG”) report in the second quarter. The themes of environmental protection, social engagement and governance accountability have deep roots in our Company, particularly as it relates to lowering emissions. STEP was an early adopter of dual fuel fracturing equipment that reduces the consumption of diesel and its associated emissions in favour of cleaner burning natural gas, and also operates 80,000 HP of Tier 4 equipment in the
CAPITAL EXPENDITURES
Total capital expenditures in the year ended
STEP’s Board of Directors has approved a 2022 capital program of
STEP will continue to evaluate and manage its manned equipment fleet and capital program based on market demand for STEP’s services.
CANADIAN OPERATIONS REVIEW
STEP has a fleet of 16 coiled tubing units in the
($000’s except per day, days, units, proppant pumped and HP) | Three months ended | Years ended | |||||||||||||||
2021 | 2020 | 2021 | 2021 | 2020 | |||||||||||||
Revenue: | |||||||||||||||||
Fracturing | $ | 68,590 | $ | 28,191 | $ | 65,336 | $ | 277,076 | $ | 144,564 | |||||||
Coiled tubing | 22,868 | 12,782 | 18,210 | 80,455 | 63,896 | ||||||||||||
91,458 | 40,973 | 83,546 | 357,531 | 208,460 | |||||||||||||
Expenses: | |||||||||||||||||
Operating expenses | 85,391 | 44,705 | 74,216 | 321,678 | 204,583 | ||||||||||||
Selling, general and administrative | 1,820 | 851 | 1,748 | 7,113 | 5,116 | ||||||||||||
Results from operating activities | $ | 4,247 | $ | (4,583 | ) | $ | 7,582 | $ | 28,740 | $ | (1,239 | ) | |||||
Add: | |||||||||||||||||
Depreciation | 9,294 | 9,777 | 9,598 | 37,923 | 45,012 | ||||||||||||
Share-based compensation | 50 | 348 | 127 | 1,397 | 818 | ||||||||||||
Adjusted EBITDA(1) | $ | 13,591 | $ | 5,542 | $ | 17,307 | $ | 68,060 | $ | 44,591 | |||||||
Adjusted EBITDA %(1) | 15 | % | 14 | % | 21 | % | 19 | % | 21 | % | |||||||
Sales mix (% of segment revenue) | |||||||||||||||||
Fracturing | 75 | % | 69 | % | 78 | % | 77 | % | 69 | % | |||||||
Coiled tubing | 25 | % | 31 | % | 22 | % | 23 | % | 31 | % | |||||||
Fracturing services | |||||||||||||||||
Fracturing revenue per operating day(1) | $ | 245,842 | $ | 204,283 | $ | 267,770 | $ | 283,599 | $ | 205,347 | |||||||
Number of fracturing operating days(2) | 279 | 138 | 244 | 977 | 704 | ||||||||||||
Proppant pumped (tonnes) | 193,000 | 134,000 | 218,000 | 1,012,000 | 776,000 | ||||||||||||
Stages completed | 3,593 | 1,640 | 3,474 | 12,222 | 8,000 | ||||||||||||
Proppant pumped per stage | 54 | 82 | 63 | 83 | 97 | ||||||||||||
Horsepower | |||||||||||||||||
Active pumping HP, end of period(3) | 200,000 | 150,000 | 200,000 | 200,000 | 150,000 | ||||||||||||
Total pumping HP, end of period | 282,500 | 282,500 | 282,500 | 282,500 | 282,500 | ||||||||||||
Coiled tubing services | |||||||||||||||||
Coiled tubing revenue per operating day(1) | $ | 51,045 | $ | 46,480 | $ | 51,152 | $ | 51,278 | $ | 46,538 | |||||||
Number of coiled tubing operating days(2) | 448 | 275 | 356 | 1,569 | 1,373 | ||||||||||||
Active coiled tubing units, end of period | 7 | 5 | 7 | 7 | 5 | ||||||||||||
Total coiled tubing units, end of period | 16 | 16 | 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
FULL YEAR 2021 COMPARED TO FULL YEAR 2020
For the year ended
Operating expenses scaled with increased activity levels with product and hauling costs increasing with the increase in STEP supplied proppant work. Personnel related costs increased as a result of the additional professionals that were hired to operate the equipment that was activated through the year, along with increases to base and incentive pay and the reinstatement of various benefits and allowances that were eliminated during the Pandemic to reduce costs. Inflationary pressures became more acute towards the end of the year, with supply chain disruptions, commodity price appreciation, and increased industry activity resulting in costs escalating across all expense categories. The Company received
Canadian operations generated Adjusted EBITDA of
Fracturing
STEP operated four fracturing spreads with 200,000 HP throughout 2021, compared to three spreads and 150,000 HP operated throughout most of 2020. Canadian fracturing revenue of
Coiled Tubing
Canadian coiled tubing revenue of
FOURTH QUARTER 2021 COMPARED TO THIRD QUARTER 2021
Revenue for the three months ended
Fracturing experienced a 14% increase in operating days which was partly offset by an 8% reduction in revenue per day as the job mix shifted towards more annular fracturing, resulting in decreased proppant pumped. Annular fracturing is typically done on single wells, which has lower efficiency relative to multi well pads. December efficiency and revenue per day was also impacted by significant delays on a client location due to challenging well conditions, causing some work slated for Q4 2021 to be moved into Q1 2022. Coiled tubing had 448 operating days in the fourth quarter of 2021 compared to 356 in the third quarter of 2021 while revenue per day remained consistent.
Canadian operations had Adjusted EBITDA of
FOURTH QUARTER 2021 COMPARED TO FOURTH QUARTER 2020
Revenue for the three months ended
Adjusted EBITDA for the fourth quarter of 2021 was
STEP’s
($000’s except per day, days, units, proppant pumped and HP) | Three months ended | Year ended | |||||||||||||||
2021 | 2020 | 2021 | 2021 | 2020 | |||||||||||||
Revenue: | |||||||||||||||||
Fracturing | $ | 44,773 | $ | 20,711 | $ | 29,501 | $ | 109,735 | $ | 111,000 | |||||||
Coiled tubing | 22,485 | 9,884 | 20,188 | 69,043 | 49,485 | ||||||||||||
67,258 | 30,595 | 49,689 | 178,778 | 160,485 | |||||||||||||
Expenses: | |||||||||||||||||
Operating expenses | 66,520 | 40,303 | 50,945 | 195,713 | 196,670 | ||||||||||||
Selling, general and administrative | 2,496 | 1,450 | 2,340 | 7,788 | 6,954 | ||||||||||||
Results from operating activities | $ | (1,758 | ) | $ | (11,158 | ) | $ | (3,596 | ) | $ | (24,723 | ) | $ | (43,139 | ) | ||
Add non-cash items: | |||||||||||||||||
Depreciation | 9,829 | 9,627 | 7,735 | 34,389 | 42,593 | ||||||||||||
Share-based compensation | (59 | ) | 133 | 81 | 570 | (78 | ) | ||||||||||
Adjusted EBITDA(1) | $ | 8,012 | $ | (1,398 | ) | $ | 4,220 | $ | 10,236 | $ | (624 | ) | |||||
Adjusted EBITDA %(1) | 12 | % | (5 | %) | 8 | % | 6 | % | (1 | %) | |||||||
Sales mix (% of segment revenue) | |||||||||||||||||
Fracturing | 67 | % | 68 | % | 59 | % | 61 | % | 69 | % | |||||||
Coiled tubing | 33 | % | 32 | % | 41 | % | 39 | % | 31 | % | |||||||
Fracturing services | |||||||||||||||||
Fracturing revenue per operating day(1) | $ | 195,515 | $ | 168,382 | $ | 151,287 | $ | 155,873 | $ | 261,176 | |||||||
Number of fracturing operating days(2) | 229 | 123 | 195 | 704 | 425 | ||||||||||||
Proppant pumped (tonnes) | 302,000 | 184,394 | 278,000 | 960,000 | 600,064 | ||||||||||||
Stages completed | 1,515 | 831 | 1,396 | 4,636 | 2,823 | ||||||||||||
Proppant pumped per stage | 199 | 222 | 199 | 207 | 213 | ||||||||||||
Horsepower | |||||||||||||||||
Active pumping HP, end of period(3) | 165,000 | 110,000 | 165,000 | 165,000 | 110,000 | ||||||||||||
Total pumping HP, end of period | 207,500 | 207,500 | 207,500 | 207,500 | 207,500 | ||||||||||||
Coiled tubing services | |||||||||||||||||
Coiled tubing revenue per operating day(1) | $ | 44,349 | $ | 33,849 | $ | 40,866 | $ | 39,726 | $ | 40,897 | |||||||
Number of coiled tubing operating days(2) | 507 | 292 | 494 | 1,738 | 1,210 | ||||||||||||
Active coiled tubing units, end of period | 8 | 6 | 8 | 8 | 6 | ||||||||||||
Total coiled tubing units, end of period | 13 | 13 | 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 and 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
FULL YEAR 2021 COMPARED TO FULL YEAR 2020
For the year ended
Operating expenses scaled with increased activity levels with product and hauling costs decreasing with the reduction in STEP supplied proppant work. Personnel related costs increased as a result of the additional professionals that were hired to operate the equipment that was activated through the year, along with increases to base and incentive pay and the reinstatement of various benefits and allowances that were eliminated during the Pandemic to reduce costs. Inflationary pressures became more acute towards the end of the year, with supply chain disruptions, commodity price appreciation, and increased industry activity resulting in costs escalating across all expense categories.
Fracturing
Coiled Tubing
FOURTH QUARTER 2021 COMPARED TO THIRD QUARTER 2021
Revenue for the fourth quarter of 2021 increased
Adjusted EBITDA of
FOURTH QUARTER 2021 COMPARED TO FOURTH QUARTER 2020
Revenue for the three months ended
CORPORATE REVIEW
The Company’s corporate activities are separated from Canadian and
($000’s) | Three months ended | Year ended | |||||||||||||||
2021 | 2020 | 2021 | 2021 | 2020 | |||||||||||||
Expenses: | |||||||||||||||||
Operating expenses | $ | 360 | $ | 139 | $ | 310 | $ | 1,161 | $ | 1,102 | |||||||
Selling, general and administrative | 4,108 | 2,881 | 3,452 | 19,532 | 15,634 | ||||||||||||
Results from operating activities | $ | (4,468 | ) | $ | (3,020 | ) | $ | (3,762 | ) | $ | (20,693 | ) | $ | (16,736 | ) | ||
Add: | |||||||||||||||||
Depreciation | 137 | 182 | 146 | 610 | 780 | ||||||||||||
Share-based compensation | 68 | 1,141 | 77 | 4,750 | 2,870 | ||||||||||||
Adjusted EBITDA(1) | $ | (4,263 | ) | $ | (1,697 | ) | $ | (3,539 | ) | $ | (15,333 | ) | $ | (13,086 | ) | ||
Adjusted EBITDA %(1) | (3 | %) | (2 | %) | (3 | %) | (3 | %) | (4 | %) |
(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.
FULL YEAR 2021 COMPARED TO FULL YEAR 2020
Expenses from corporate activities were
FOURTH QUARTER 2021 COMPARED TO THIRD QUARTER 2021
Expenses from corporate activities increased 18% to
FOURTH QUARTER 2021 COMPARED TO FOURTH QUARTER 2020
For the three months ended
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 measure should be read in conjunction with the Company’s audited and unaudited 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, 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 (loss) income.
($000s except percentages and per share amounts) | Three months ended | Years ended | ||||||||||||||||||||||||
2021 | 2020 | 2021 | 2021 | 2020 | 2019 | |||||||||||||||||||||
Net loss | $ | (6,212 | ) | $ | (17,045 | ) | $ | (3,388 | ) | $ | (28,127 | ) | $ | (119,358 | ) | $ | (143,883 | ) | ||||||||
Add (deduct): | ||||||||||||||||||||||||||
Depreciation and amortization | 19,376 | 19,750 | 17,595 | 73,381 | 88,940 | 106,549 | ||||||||||||||||||||
Loss (gain) on disposal of equipment | (638 | ) | (739 | ) | (146 | ) | (969 | ) | (3,777 | ) | (965 | ) | ||||||||||||||
Finance costs | 4,196 | 3,348 | 3,908 | 14,624 | 14,663 | 15,621 | ||||||||||||||||||||
Income tax expense (recovery) | 314 | (4,628 | ) | 96 | (2,498 | ) | (25,985 | ) | (31,225 | ) | ||||||||||||||||
Foreign exchange forward contract loss | - | - | - | - | - | 383 | ||||||||||||||||||||
Share-based compensation | 59 | 1,622 | 285 | 6,717 | 3,610 | 6,998 | ||||||||||||||||||||
Foreign exchange (gain) loss | 245 | 139 | (362 | ) | (165 | ) | 443 | (1,886 | ) | |||||||||||||||||
Impairment | - | - | - | 72,345 | 127,217 | |||||||||||||||||||||
Adjusted EBITDA | $ | 17,340 | $ | 2,447 | $ | 17,988 | $ | 62,963 | $ | 30,881 | $ | 78,809 |
“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) | ||||||||
2021 | 2020 | |||||||
Current assets | $ | 133,255 | $ | 99,469 | ||||
Current liabilities | (129,343 | ) | (54,823 | ) | ||||
Working capital (including cash and cash equivalents) | $ | 3,912 | $ | 44,646 |
The following table presents the composition of the non-IFRS financial measure of Net debt.
As at | |||||||||||
($000s) | 2021 | 2020 | 2019 | ||||||||
Loans and borrowings | $ | 189,957 | $ | 207,630 | $ | 237,418 | |||||
Add back: Deferred financing costs | 626 | 2,371 | 2,401 | ||||||||
Less: Cash and cash equivalents | (3,698 | ) | (1,266 | ) | (7,267 | ) | |||||
Net debt | $ | 186,885 | $ | 208,735 | $ | 232,552 |
FORWARD-LOOKING INFORMATION & STATEMENTS
Certain statements contained in this press release constitute “forward-looking statements” or “forward-looking information” within t he 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 price of crude oil, potential increased activity and the impact thereof on the Company’s equipment reactivation plans, performance, revenue and cash flows; a strengthening commodity price outlook; the Russian invasion of
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 recent 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 the MD&A, both of which are available on SEDAR (www.sedar.com) and are incorporated by reference herein.
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