In This Article:
CALGARY, Alberta, December 20, 2024--(BUSINESS WIRE)--STEP Energy Services Ltd. ("STEP") (TSX: STEP) announces that effective December 19, 2024, STEP, 2659160 Alberta Ltd. and the limited partnerships comprising ARC Energy Fund 8 (a private equity fund advised by ARC Financial Corp.) have entered into a termination agreement that mutually terminates the arrangement agreement originally entered into on November 3, 2024 (the "Agreement"). The termination is without liability or cost to any party.
The decision to terminate the Agreement was made after it became clear that the requisite minority shareholder approval could not be achieved.
"We entered into this Agreement believing that this was in the best interest of STEP and delivered value to our STEP shareholders. STEP has grown from a small upstart company in 2011 to one of the industry's leading providers of coiled tubing and hydraulic fracturing services today," commented Steve Glanville, President and CEO. "We are excited about what the future holds for our company. Our Canadian region is closing out its best ever year and despite the challenges in the U.S. market, our coiled tubing service line has grown market share by introducing cutting edge technology to clients."
"I want to thank our valued professionals, clients and vendors for their patience throughout this process. This outcome does not change our strategy for 2025 and onward," continued Mr. Glanville. "Our recently announced 2025 capital budget will continue to put STEP at the forefront of the evolving technology in this industry. We see some near term margin pressure, but we have a constructive outlook on 2025, particularly as we see additional LNG capacity coming on stream in the second half of the year."
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 companies in Canada and the U.S. Our Canadian services are focused in the Western Canadian Sedimentary Basin, while in the U.S., our fracturing services are focused on the Permian basin and our coiled tubing services are focused on the Permian and Eagle Ford in Texas, the Uinta Piceance, and Niobrara-DJ basins in Colorado and the Bakken in North Dakota.