CALGARY, Alberta, Jan. 08, 2021 (GLOBE NEWSWIRE) -- STEP Energy Services Ltd. (“STEP”) is pleased to provide an updated outlook, and to announce that it will be attending the CIBC Western Institutional Investor Conference, held virtually January 20-22, 2021.
UPDATED OUTLOOK
STEP is pleased to provide an update on its outlook for its Canadian and U.S. operations. Heading into 2021, STEP continues to expect high utilization in the first quarter, and is now expecting its activity levels to remain high into the second quarter. STEP is well positioned to capitalize on this improving outlook, and expects to reactivate a fourth fracturing spread in Canada, and second fracturing spread in the U.S., to meet its anticipated client needs. STEP anticipates having the following active units in the first quarter 2021:
Region
Service Line
Available
Active – Q4, 2020
Anticipated - Q1, 2021
Canada
Coiled Tubing Services
16 units
5 units
7 units
Fracturing Services
282,500 Horsepower1
3 spreads
4 spreads
U.S.
Coiled Tubing Services
13 units
5 units
8 units
Fracturing Services
207,500 Horsepower
1 spread
2 spreads
1 Reflects total available horsepower as at September 30, 2020, and includes 15,000 HP that STEP has available for deployment (some of which may require capital for maintenance and refurbishment)
While industry uncertainty, the effect of COVID-19, and pricing pressure in the U.S. continues, STEP is encouraged by the increased requests for its services over these periods. We will continue to monitor industry conditions and adjust our business accordingly.
WESTERN INSTITUTIONAL INVESTOR CONFERENCE
Regan Davis, President and Chief Executive Officer, is scheduled to participate in a panel discussion at 2:10pm MST on Thursday, January 21, 2021.
A copy of the conference presentation will be available on STEP’s website at www.stepenergyservices.com/investors under the “Reports, Presentations & Key Dates” section prior to the event.
FORWARD LOOKING 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 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 “anticipated”, “continue”, “expect”, “forecast”, “outlook”, “improving”, “positioned”, “will” 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: COVID-19 and its impact on energy demand, activity levels, and STEP’s financial position and business plans; 2021 industry conditions and outlook; supply and demand for oilfield services and industry activity levels; STEP’s anticipated business strategies and expected success; pricing received for STEP’s services; adequacy of resources to funds operations, and planned capital expenditures in 2021; planned deployment and staffing levels for STEP’s equipment; and the monitoring of industry demand.
The forward-looking information and statements contained in this Press Release reflect several material factors and expectations and assumptions of STEP including, without limitation: client activity levels, that STEP will continue to conduct its operations in a manner consistent with past operations; STEP’s ability to manage the effect of the COVID-19 pandemic; occurrence of assumed industry conditions; levels of deployable equipment; pricing of STEP’s services; the impact of competition on STEP; STEP’s ability to market successfully to current and new clients; STEP’s ability to obtain and retain qualified staff; STEP’s ability to finance future capital expenditures; and STEP’s continued compliance with financial covenants. 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.
Actual results could differ materially from those anticipated in these forward-looking statements due to the risk factors set forth in STEP’s Annual Information Form dated March 11, 2020 under the heading “Risk Factors” and in STEP’s Management Discussion and Analysis for the three and nine month periods ended September 30, 2020 under the heading “Risk Factors and Risk Management”, which for clarity include volatility of the oil and natural gas industry; global or national health concerns such as the COVID-19 pandemic and their impact on demand and pricing for STEP’s services; OPEC or OPEC+ related market uncertainty; and reductions in clients activity levels, cash flows or their ability to source debt or equity.
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 STEP’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 STEP’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 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. 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, coiled tubing and wireline 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.
Founded in 2011 as a specialized deep capacity coiled tubing company, STEP now provides an integrated solution for deep capacity coiled tubing and fracturing services to exploration and production (“E&P”) companies in Canada and the United States (“U.S.”). Our Canadian services are focused in the WCSB, while in the U.S., our services are focused in the Permian and Eagle Ford in Texas and the Bakken in North Dakota.
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:
Regan Davis President & Chief Executive Officer
Michael Kelly Executive Vice President & Chief Financial Officer
