“STEP has just completed the best year in its corporate history as measured by revenues and Adjusted EBITDA. Our professionals and equipment were ready for the increased demand from our clients and I’m extremely proud of how STEP and the North American oil and gas industry contributed to global energy security,” said
Balance Sheet Update and Capital Spending Program for 2023
STEP’s balance sheet continues to strengthen. Net debt is expected to end the year in the
STEP’s Board of Directors has approved a
Looking ahead to 2023, free cash flow will be used to continue to strengthen the balance sheet as well invest opportunistically to add greater size and/or efficiency in both of STEP’s major business lines.
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1 Net debt is a non-IFRS financial measure that is not defined and has not standardized meaning under IFRS. See Non-IFRS Measures. Estimated
Fourth Quarter 2022 Activity Update and First Quarter 2023 Update
STEP’s fourth quarter activity levels in
The first quarter of 2023 is expected to see high levels of utilization in
High utilization in both fracturing and coiled tubing is expected to keep strong pricing tension in the respective markets, with a positive effect on sequential operating margins expected in both
Visibility into the second quarter and second half is limited, but the Company is encouraged at the longer-term opportunity that
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 the Company’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. Net debt is presented to provide additional information about items on the statement of financial position. The Company’s Net debt for the year ended
($000s) | |||||||
2022 | 2021 | ||||||
Loans and borrowings | $ | 153,148 | $ | 189,957 | |||
Add back: Deferred financing costs | 2,977 | 626 | |||||
Less: Cash and cash equivalents | (1,756 | ) | (3,698 | ) | |||
Less: CCS Derivatives Asset | (6,831 | ) | - | ||||
Net debt | $ | 147,538 | $ | 186,885 |
Forward-Looking Information & Statements, 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 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 “anticipates”, “expects”, “expected”, “opportunity”, “may”, “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: planned investments in the Company’s fracturing and coiled tubing fleet, the completion of the upgrade of STEP’s first Tier 4 dual-fuel fleet, the expansion of the Company’s capital program and intended use of capital program funds, the company’s expectations for its new projects, including incremental margin through improved reliability and/or efficiency to STEP’s current operations, the geographic split of the Company’s sustaining and optimization budget, the use of the Company’s free cash flow to strengthen its balance sheet as well as grow/optimize business lines, utilization levels in
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; the effect of inflation on the cost of goods and equipment; the ability of suppliers to complete the Tier 4 dual-fuel fleet upgrade process; the fulfilment of STEP’s customers obligations under its contracts with the Company; 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; and 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 capital budget and the Company’s expected year-end 2022 Net debt may also constitute FOFI. The FOFI in this press release is subject to the same assumptions, risk factors, limitations, and qualifications as set forth in the above paragraphs.
In addition to the assumptions, risk factors, limitations and qualifications described above, the estimated net debt at
The actual results of operations of STEP and the resulting financial results, including the Company’s year-end 2022 Net debt, may vary from the amounts set forth in this press release and such variation may be material. STEP and its management believe that the FOFI has been prepared on a reasonable basis, reflecting management's best estimates and judgments as of the date hereof; however, because this information is subjective and subject to numerous risks, it should not be relied on as necessarily indicative of future results. The FOFI contained in this press release is provided for the purpose of providing an update on the Company’s 2023 capital budget and certain expected results for the year ended
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 service company providing deep capacity coiled tubing and hydraulic fracturing services to operators in
For more information please contact:
President & Chief Operating Officer | Chief Financial Officer |
Telephone: 403-457-1772 | Telephone: 403-457-1772 |
Email: investor_relations@step-es.com
Web: www.stepenergyservices.com
Source:
2023 GlobeNewswire, Inc., source