SECURE Energy Services Reports First Quarter Adjusted EBITDA of $42.2 Million and 6% Dividend Increase

CALGARY, May 2, 2017 /CNW/ - Secure Energy Services Inc. ("Secure" or the "Corporation") (TSX – SES) announced today operational and financial results for the three months ended March 31, 2017. The following should be read in conjunction with the management's discussion and analysis ("MD&A") and the interim consolidated financial statements and notes thereto of Secure which are available on SEDAR at www.sedar.com.

Secure's Board of Directors also approved a 6.25% increase to its monthly dividend rate from $.02 to $.02125 per common share commencing with the June 15, 2017 dividend payment date for shareholders of record on June 1, 2017.

"Secure has maintained a strong balance sheet throughout a period of oil and gas price volatility," said Rene Amirault, Secure's Chairman and Chief Executive Officer. "The increase to our monthly dividend reflects our confidence in the ability of our business model to generate meaningful cash flow while continuing to fund our organic capital and acquisition programs while maintaining a standard of excellence for our customers through our three integrated divisions."

Q1 2017 OPERATIONAL AND FINANCIAL HIGHLIGHTS

ADJUSTED EBITDA INCREASE OF 68%
A more stable commodity price environment during the first quarter of 2017 resulted in increased oil and gas producer activity across the Western Canadian Sedimentary Basin ("WCSB") which had a positive impact on all three of the Corporation's divisions. Industry rig counts and metres drilled in the WCSB increased by 86% and 116% respectively over the first quarter of 2016, driven primarily by a 49% increase in average crude oil prices, as well as improved weather conditions compared to the first quarter of 2016 which saw an early spring break-up. Higher drilling activity levels, along with the addition of new facilities and expansions in underserviced markets subsequent to March 2016, and ongoing production related volumes from existing facilities in the PRD division, resulted in Adjusted EBITDA of $42.2 million during the three months ended March 31, 2017, a 68% increase over the comparative period.

OPERATING MARGIN IMPROVEMENTS
During the quarter, Secure continued to exercise caution by maintaining its current cost structures which have enabled the Corporation to achieve strong operating margins of 59% in PRD, 23% in DPS and 25% in OS in part by minimizing overhead costs and streamlining operations to enhance customer service through the integrated services provided.

STRONG BALANCE SHEET MAINTAINED
The Corporation continues its disciplined approach to maintaining a strong balance sheet to effectively manage the business through this period of volatile commodity prices and industry activity. The Corporation's balance sheet provides significant financial flexibility to pursue accretive acquisitions and continue to invest in organic capital projects in capacity constrained regions. At March 31, 2017, Secure's net debt was $54.2 million, and debt to EBITDA ratio, as defined by the Corporation's credit facility, was 1.7 to 1.

CONTINUING TO ADD PRODUCTION RELATED SERVICES
Subsequent to quarter end, Secure completed an asset acquisition in the DPS division for cash consideration of $29.8 million, subject to any post-closing adjustments (the "Production Chemicals Acquisition"). The acquired assets will provide Secure with a complete suite of over 100 fully formulated proprietary production chemical products, along with key infrastructure across the WCSB. The addition of advanced chemical products is expected to bolster the Corporation's ability to help customers optimize production, provide flow assurance and maintain the integrity of their production assets. The research lab facility acquired demonstrates the Corporation's commitment to innovation for customers and is intended to design customized chemical solutions for customers. The Corporation expects the Production Chemicals Acquisition to be accretive to funds from operations, Adjusted EBITDA and net income.

The operating and financial highlights for the three month periods ending March 31, 2017 and 2016 can be summarized as follows:


Three months ended Mar 31,

($000's except share and per share data)

2017

2016

% change

Revenue (excludes oil purchase and resale) 

140,713

102,267

38

Oil purchase and resale 

309,876

106,865

190

Total revenue

450,589

209,132

115

Adjusted EBITDA (1)

42,170

25,083

68


Per share ($), basic

0.26

0.18

44


Per share ($), diluted

0.25

0.18

39

Net earnings (loss)

3,440

(10,066)

134


Per share ($), basic and diluted

0.02

(0.07)

129

Adjusted net earnings (loss)(1)

3,502

(8,598)

141


Per share ($), basic and diluted

0.02

(0.06)

133

Funds from operations (1)

40,052

18,700

114


Per share ($), basic

0.25

0.13

92


Per share ($), diluted

0.24

0.13

85

Dividends per common share

0.06

0.06

-

Capital expenditures (1)

12,096

21,489

(44)

Total assets

1,403,328

1,267,835

11

Net debt (1)

54,237

16,723

224

Common shares - end of period 

162,580,599

157,932,560

3

Weighted average common shares





basic

162,049,821

140,015,143

16


diluted

165,944,906

140,015,143

19

(1) Refer to "Non-GAAP measures, operational definitions and additional subtotals" for further information

 

  • REVENUE OF $450.6 MILLION FOR THE THREE MONTHS ENDED MARCH 31, 2017

    • Total processing, recovery and disposal volumes at PRD facilities for the three months ended March 31, 2017 increased from the 2016 comparative period due to increased drilling activity levels across the WCSB, ongoing production related volumes and the addition of facilities in 2016, which included the acquisition of the Alida crude oil terminalling facility in June 2016, the increased ownership in the La Glace and Judy Creek FSTs from 50% to 100% in July 2016, and the commissioning of the Kakwa FST in August 2016. Overall, this resulted in the PRD division achieving revenue (excluding oil purchase and resale) of $67.5 million in the three months ended March 31, 2017, up 39% from the comparative period in 2016;
    • Oil purchase and resale revenue in the PRD division for the three months ended March 31, 2017 increased by 190% from the 2016 comparative period to $309.9 million due primarily to additional oil purchase and resale volumes from new facilities in 2016, which included the Alida crude oil terminalling facility, the increased ownership in the La Glace and Judy Creek FSTs, and the Kakwa FST;
    • Activity in the DPS division is strongly correlated with oil and gas drilling activity in the WCSB, which experienced an 86% increase in active rig count in the three months ended March 31, 2017 from the 2016 comparable period. As a result of these improved activity levels, DPS division revenue increased by 43% to $50.5 million in the three months ended March 31, 2017;
    • OS division revenue increased 24% to $22.8 million in the three months ended March 31, 2017 primarily due to revenue from new service lines and increased activity related to increased oil prices and industry activity compared to the three months ended March 31, 2016.

  • ADJUSTED EBITDA OF $42.2 MILLION FOR THE THREE MONTHS ENDED MARCH 31, 2017

    • Adjusted EBITDA of $42.2 million, a 68% increase from the 2016 comparative period, resulted from increased average crude oil prices of 49% in the first quarter of 2017 which positively impacted all three of the Corporations divisions. Increased drilling and completion activity positively impacted the DPS and OS divisions while ongoing production related volumes and increased volumes from acquisitions and facility expansions in the second and third quarters of 2016 drove both PRD revenues and operating margins.

  • NET EARNINGS OF $3.4 MILLION FOR THE THREE MONTHS ENDED MARCH 31, 2017

    • For the three months ended March 31, 2017, Secure generated net earnings of $3.4 million, a $13.5 million increase from the three months ended March 31, 2016. This positive impact to net earnings is a result of increased activity, new facilities and expansions and the Corporation's continued focus on managing costs.

  • ADJUSTED NET EARNINGS OF $3.5 MILLION FOR THE THREE MONTHS ENDED MARCH 31, 2017

    • For the three months ended March 31, 2017, Secure's adjusted net earnings of $3.5 million increased by $12.1 million from an adjusted net loss of $8.6 million in the three months ended March 31, 2016. The positive variance is primarily a result of the factors discussed above impacting Adjusted EBITDA offset by increased total income tax expense in the three months ended March 31, 2017.

  • CAPITAL EXPENDITURES OF $12.1 MILLION FOR THE THREE MONTHS ENDED MARCH 31, 2017

    • Total capital expenditures for the three months ended March 31, 2017 of $12.1 million include:
      • Equipment upgrades at various PRD facilities to increase capacity including additional tanks and pumps;
      • Long lead items for various projects expected to commence in the 2nd and 3rd quarters of 2017; and
      • Sustaining capital expenditures at existing facilities required to maintain ongoing business operations.

  • FINANCIAL FLEXIBILITY

    • The total amount drawn on Secure's credit facility as at March 31, 2017 decreased by 10% to $188.0 million compared to $209.0 million at December 31, 2016. The reduction in the amount drawn on Secure's credit facility is a result of funds flow from operations exceeding capital expenditures and dividend payments. The Corporation continues to strengthen its balance sheet and increase its financial flexibility to take advantage of accretive opportunities that may arise.
    • Secure is in compliance with all covenants related to its credit facility at March 31, 2017. Secure's debt to trailing twelve month EBITDA ratio, where EBITDA is defined in the lending agreement as earnings before interest, taxes, depreciation, depletion and amortization, and is adjusted for non-recurring losses, any non-cash impairment charges and any other non-cash charges, and acquisitions on a pro-forma basis, improved to 1.7 to 1 at March 31, 2017 compared to 2.2 to 1.0 at December 31, 2016.

PRD DIVISION OPERATING HIGHLIGHTS


Three months ended Mar 31,

($000's)

2017

2016

% Change

Revenue 





PRD services (a)

67,470

48,706

39


Oil purchase and resale service

309,876

106,865

190

Total PRD division revenue

377,346

155,571

143





Direct expenses 





PRD services (b)

27,653

22,823

21


Oil purchase and resale service

309,876

106,865

190

Total PRD division direct expenses

337,529

129,688

160





Operating Margin (1)  (a-b)

39,817

25,883

54





Operating Margin (1)  as a % of revenue (a)

59%

53%


(1) Refer to "Non-GAAP measures, operational definitions and additional subtotals" for further information.

 

Highlights for the PRD division for the months ended March 31, 2017 included:

  • Processing, recovery and disposal services revenue of $67.5 million for the three months ended March 31, 2017 increased by 39% from the 2016 comparative period, driven by higher facility volumes, largely contributed from the new facilities added in 2016 and expansions at certain of the Corporation's existing facilities in 2016 and the first quarter of 2017, and higher drilling and completion related volumes resulting from the increase in average crude oil prices by 49% from the 2016 comparative period, which also directly improved recovered oil revenues;
  • Processing volumes increased 22% in the three months ended March 31, 2017 from the comparative period due to higher waste processing and emulsion, offset partially by fewer completions processing volumes;
  • Recovery revenues increased 58% in the three months ended March 31, 2017 from the comparative period which is consistent with a 58% increase in recovery and terminalling volumes. The increase was driven by the average crude oil price increase of 49% from the comparative period and crude oil marketing activities at the Corporation's pipeline connected FSTs and the Alida crude oil terminalling facility;
  • Disposal volumes increased in the three months ended March 31, 2017 from the comparative period due primarily to increased disposal of waste at Secure's landfills resulting from higher drilling activity levels. Further driving the increase in disposal volumes is increased produced and waste water volumes across Secure's facilities from the comparative period.;
  • Oil purchase and resale revenue in the PRD division for the three months ended March 31, 2017 increased by 190% from the 2016 comparative period to $309.9 million due primarily to additional oil purchase and resale volumes from new facilities in 2016, which included the Alida crude oil terminalling facility, the increased ownership in the La Glace and Judy Creek FSTs, and the Kakwa FST. The new facilities added in 2016 accounted for 39% of oil purchase and resale revenue in the three months ended March 31, 2017, or 112% of the increase;
  • Direct expenses from PRD services increased by 21% in the three months ended March 31, 2017 from the comparative period of 2016. The increase in direct expenses relates primarily to the increased revenue as the Corporation maintains its ability to respond to higher activity levels while managing its fixed and variable costs;
  • Operating margin as a percentage of PRD services revenue for the three months ended March 31, 2017 increased to 59% from 53% in the comparative period of 2016. The increase in operating margin as a percentage of revenue over 2016 is due to increased revenues while minimizing fixed costs. The Corporation's revised cost management structure has resulted in improved operating margins realized across various facilities including FSTs, SWDs and landfills;
  • General and administrative ("G&A") expenses of $4.0 million for the three months ended March 31, 2017 increased by 22% from the comparative period. Although the Corporation continues to minimize G&A costs by streamlining operations, PRD G&A expenses have increased primarily due to the acquisitions completed in 2016 and the overhead requirements to support new facilities and expansions. As a percentage of PRD revenue, G&A costs have decreased from 7% to 6%.

DPS DIVISION OPERATING HIGHLIGHTS


Three months ended Mar 31,

($000's)

2017

2016

% Change

Revenue 





Drilling and production services (a)

50,468

35,207

43





Direct expenses





Drilling and production services (b)

38,867

29,727

31

Operating Margin (1)  (a-b)

11,601

5,480

112





Operating Margin (1)  as a % of revenue (a)

23%

16%


(1) Refer to "Non-GAAP measures, operational definitions and additional subtotals" for further information.

 

Highlights for the DPS division for the three months ended March 31, 2017 included:

  • Revenue in the DPS division correlates with oil and gas drilling activity in the WCSB, most notably active rig counts and metres drilled. Commodity pricing, weather conditions and the activity levels from oil and gas producers has a significant impact on the DPS division. For the three months ended March 31, 2017, industry rig counts in the WCSB increased 86% and metres drilled increased 116% from the 2016 comparative period. Revenue from the DPS division for the three months ended March 31, 2017 increased 43% to $50.5 million from the comparative period of 2016. Average crude oil price increases and improved weather conditions during the three months ended March 31, 2017 compared to the 2016 comparative period drove increased industry activity strengthening the DPS division's revenue in the first quarter of 2017;
  • Revenue per operating day decreased 23% to $5,803 during the three months ended March 31, 2017 compared to the same period in 2016 which generated revenue of $7,507 per operating day. The variance is a result of the geographic location and depth of wells which impacts the type of fluid used;
  • The DPS division's market share decreased slightly to 29% in the three months ended March 31, 2017 from 31% in the 2016 comparative period. The timing, type and location of one customer's drilling activities can create fluctuations in the market share from period to period;
  • Secure continues diversification efforts in the DPS division through expansion of the production chemicals and chemical EOR service lines which will benefit the Corporation in the medium to long-term. Strategic relationships with key suppliers and ongoing product development has resulted in a significant expansion to Secure's product offering resulting in multiple commercial projects in 2017. The Production Chemicals Acquisition completed on April 13, 2017 is expected to strengthen Secure's position in the market by adding over 100 fully formulated proprietary products, as well as key infrastructure related to the product offering and an experienced and dedicated employee base;
  • The DPS division's direct expenses for the three months ended March 31, 2017 increased by 31% to $38.9 million from the 2016 comparative period. Overall, the increase in direct expenses from the 2016 period was primarily due to increased activity levels;
  • The DPS division's operating margin for the three months ended March 31, 2017 increased 112% from the 2016 comparative period to $11.6 million from $5.5 million;
  • Operating margin as a percentage of revenue increased to 23% in the three months ended March 31, 2017 from 16% in the comparative period. Operating margins as a percentage of revenue were positively impacted by the increased revenues while minimizing fixed costs resulting in improved drilling fluids product margins and achieving economies of scale as activity increases;
  • G&A expense for the three months ended March 31, 2017 increased by 4% from the comparative period of 2016. The Corporation continues to manage costs efficiently and proactively while still responding to customer demands and activity levels while expanding the production chemicals and chemical EOR service lines.

OS DIVISION OPERATING HIGHLIGHTS


Three months ended Mar 31,

($000's)

2017

2016

% Change

Revenue 





OnSite services (a)                                    

22,775

18,354

24





Direct expenses





OnSite services (b)

17,186

13,767

25

Operating Margin (1)  (a-b)

5,589

4,587

22





Operating Margin (1) as a % of revenue (a)

25%

25%


(1)Refer to "Non-GAAP measures, operational definitions and additional subtotals" for further information.

 

Highlights for the OS division for the three months ended March 31, 2017 included:

  • Diversified service lines and integrated service offerings, complemented by increased average oil prices and producer activity in the three months ended March 31, 2017 drove a 24% increase in OS division revenue to $22.8 million from $18.4 million in the three months ended March 31, 2016;
  • Projects revenue during the three months ended March 31, 2017 increased 33% from the 2016 comparative period. Projects revenue is dependent on the type and size of jobs which can vary quarter to quarter. In the three months ended March 31, 2017, Projects revenue increased primarily as a result of jobs with new customers, new service offerings and geographic expansion. The Projects service line continues to bid on larger scale work as producers increase their capital spending due to stabilizing commodity prices;
  • Integrated fluids solutions revenue for the three months ended March 31, 2017 increased approximately 26% from the 2016 comparative period. Revenue increased due to a slight increase in customer field activity that was delayed in late 2016 due to producer budgets and wet weather and increased equipment utilization compared to three months ended March 31, 2016;
  • Environmental services revenue for the three months ended March 31, 2017 remained consistent with the 2016 comparative period. Reclamation and remediation revenue decreased resulting from deferred customer spending created by relatively low commodity prices. The decrease in reclamation and remediation was offset by increased drilling waste revenue as oil and gas activity increased in the first quarter of 2017. Improving industry activity also resulted in increased bin revenue in the three months ended March 31, 2017 compared to the same period in 2016 resulting from geographic expansion and growth in NORM related solution services;
  • Direct expenses for the three months ended March 31, 2017 increased 25% to $17.2 million from the 2016 comparative period. Overall, the variance in direct expenses was a direct result of the change in activity levels from the 2016 comparative period. Additionally, operating overhead expenses have been reduced in order to match activity levels. These reductions were partially offset by operating expenses associated with new service lines offered by the OS division this year;
  • The three months ended March 31, 2017 operating margin in the OS division of $5.6 million improved by 22% over the prior year comparative period due primarily to increased revenue. The operating margin as a percentage of revenue for the OS division in the three months ended March 31, 2017 was 25%, consistent with the comparative 2016 period. The OS division's operating margin as a percentage of revenue can fluctuate depending on the volume and type of projects undertaken and the blend of business between remediation and reclamation projects, demolition projects, pipeline integrity projects, site clean-up, and other services in any given period. As a percentage of revenue, the operating margin in the three months ended March 31, 2017 remained consistent primarily due to similar types of customers and work in the Projects service line with the comparative period;
  • G&A expenses for the three months ended March 31, 2017 increased by $0.8 million or 58% from the 2016 comparative period to $2.1 million due primarily to increased costs to support geographic expansion of Environmental services including bins and NORM management in the U.S.

OUTLOOK

The first quarter of 2017 has demonstrated that activity levels in western Canada and North Dakota are continuing to trend higher as oil and gas producers gain confidence in commodity prices which facilitates an increase in capital spending. Secure anticipates an increase in oil and gas producers' capital budgets for the remainder of 2017 over 2016, which will continue to drive higher activity levels in the WCSB in subsequent quarters and benefit all three of the Corporation's divisions.

During the second quarter, results are typically impacted by seasonality as wet weather and road bans can significantly affect activity in certain areas.  In the prior year, the second quarter was severely impacted by weather and the instability of commodity prices as oil and gas producers were unwilling to incur additional costs due to weather related issues if the oil and gas activity could be delayed into the third quarter where weather is more predictable. However, following a more robust first quarter 2017, Secure expects activity levels in the second quarter to outpace that of 2016, which is currently supported by a higher year over year rig count. 

In April, Secure announced the completion of a Production Chemicals Acquisition.  Over the next few months, Secure will complete the integration into the existing production chemicals business and begin to assess new areas for growth and new opportunities to help customers.  Secure has added a highly qualified group of experienced and dedicated employees to the business with a complete suite of over 100 fully formulated proprietary production chemical products.   In addition, a first class blending facility will provide opportunities to vertically integrate existing operations and provide additional capacity to grow Secure's market share.   

As activity levels ramp up, Secure continues to respond to customer demand by evaluating multiple opportunities relating to new infrastructure and expansion of existing facilities.  In previous guidance Secure had anticipated spending organic growth and expansion capital of $50 million in 2017, however depending on the timing of obtaining regulatory approvals, development permits, and other operating agreements, the Corporation may increase organic spending within PRD up to $100 million.  The Corporation will also spend approximately $15 million on sustaining and maintenance expenditures for the year.

Secure's strong balance sheet gives the Corporation flexibility to continue growing organically and to execute on strategic acquisition opportunities. Secure's focus remains on increasing production related services with a diverse asset base that lessens dependence on drilling related revenue streams. This diversification provides Secure with greater certainty on re-occurring cash flows and ensures the Corporation can optimize its capital structure to be well positioned for future growth.

FINANCIAL STATEMENTS AND MD&A

The Corporation's unaudited condensed consolidated financial statements and notes thereto for the three months ended March 31, 2017 and 2016 and MD&A for the three months ended March 31, 2017 and 2016 are available immediately on Secure's website at www.secure-energy.com. The unaudited condensed consolidated financial statements and MD&A will be available tomorrow on SEDAR at www.sedar.com.

FORWARD-LOOKING STATEMENTS

Certain statements contained in this document constitute "forward-looking statements" and/or "forward-looking information" within the meaning of applicable securities laws (collectively referred to as forward-looking statements). When used in this document, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect", and similar expressions, as they relate to Secure, or its management, are intended to identify forward-looking statements. Such statements reflect the current views of Secure with respect to future events and operating performance and speak only as of the date of this document. In particular, this document contains or implies forward-looking statements pertaining to: key priorities for the Corporation's success; the oil and natural gas industry; activity levels in the oil and gas sector, drilling levels, commodity prices for oil, natural gas liquids and natural gas; industry fundamentals for 2017; capital forecasts and spending by producers; demand for the Corporation's services and products; expansion strategy; the impact of oil and gas activity on 2017 activity levels; the Corporation's proposed 2017 capital expenditure program including growth, sustaining and maintenance capital expenditures; debt service; acquisition strategy and timing of potential acquisitions; the impact of new facilities, potential acquisitions, and the Production Chemicals Acquisition on the Corporation's financial and operational performance and growth opportunities; future capital needs and how the Corporation intends to fund its operations, working capital requirements, dividends and capital program; access to capital; and the Corporation's ability to meet obligations and commitments and operate within any credit facility restrictions.

Forward-looking statements concerning expected operating and economic conditions, including the Production Chemicals Acquisition, are based upon prior year results as well as the assumption that levels of market activity and growth will be consistent with industry activity in Canada and the U.S. and similar phases of previous economic cycles. Forward-looking statements concerning the availability of funding for future operations are based upon the assumption that the sources of funding which the Corporation has relied upon in the past will continue to be available to the Corporation on terms favorable to the Corporation and that future economic and operating conditions will not limit the Corporation's access to debt and equity markets. Forward-looking statements concerning the relative future competitive position of the Corporation are based upon the assumption that economic and operating conditions, including commodity prices, crude oil and natural gas storage levels, interest and foreign exchange rates, the regulatory framework regarding oil and natural gas royalties, environmental regulatory matters, the ability of the Corporation and its subsidiaries to successfully market their services and drilling and production activity in North America will lead to sufficient demand for the Corporation's services and its subsidiaries' services including demand for oilfield services for drilling and completion of oil and natural gas wells, that the current business environment will remain substantially unchanged, and that present and anticipated programs and expansion plans of other organizations operating in the energy industry may change the demand for the Corporation's services and its subsidiaries' services. Forward-looking statements concerning the nature and timing of growth are based on past factors affecting the growth of the Corporation, past sources of growth and expectations relating to future economic and operating conditions. Forward-looking statements in respect of the costs anticipated to be associated with the acquisition and maintenance of equipment and property are based upon assumptions that future acquisition and maintenance costs will not significantly increase from past acquisition and maintenance costs. 

Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether such results will be achieved. Readers are cautioned not to place undue reliance on these statements as a number of factors could cause actual results to differ materially from the results discussed in these forward-looking statements, including but not limited to those factors referred to and under the heading "Business Risks" and under the heading "Risk Factors" in the AIF for the year ended December 31, 2016 and also includes the risks associated with the possible failure to realize the anticipated synergies in integrating the assets acquired in the Production Chemicals Acquisition with the operations of Secure. Although forward-looking statements contained in this document are based upon what the Corporation believes are reasonable assumptions, the Corporation cannot assure investors that actual results will be consistent with these forward-looking statements. The forward-looking statements in this document are expressly qualified by this cautionary statement. Unless otherwise required by law, Secure does not intend, or assume any obligation, to update these forward-looking statements.

NON-GAAP MEASURES, OPERATIONAL DEFINITIONS AND ADDITIONAL SUBTOTALS

The Corporation uses accounting principles that are generally accepted in Canada (the issuer's "GAAP"), which includes International Financial Reporting Standards ("IFRS"). Certain supplementary measures in this document do not have any standardized meaning as prescribed by IFRS. These non-GAAP measures, operational definitions and additional subtotals used by the Corporation may not be comparable to similar measures presented by other reporting issuers. These non-GAAP financial measures, operational definitions and additional subtotals are included because management uses the information to analyze operating performance, leverage and liquidity. Therefore, these non-GAAP financial measures, operational definitions and additional subtotals should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. See the management's discussion and analysis available at www.sedar.com for a reconciliation of the Non-GAAP financial measures, operational definitions and additional subtotals.

ABOUT SECURE ENERGY SERVICES INC.

Secure is a TSX publicly traded energy services company that provides safe, innovative, efficient and environmentally responsible fluids and solids solutions to the oil and gas industry. The Corporation owns and operates midstream infrastructure and provides environmental services and innovative products to upstream oil and natural gas companies operating in western Canada and certain regions in the United States ("U.S."). 

The Corporation operates three divisions:

Processing, Recovery and Disposal Division ("PRD"): The PRD division owns and operates midstream infrastructure that provides processing, storing, shipping and marketing of crude oil, oilfield waste disposal and recycling. More specifically these services are clean oil terminalling and rail transloading, custom treating of crude oil, crude oil marketing, produced and waste water disposal, oilfield waste processing, landfill disposal, and oil purchase/resale service.  Secure currently operates a network of facilities throughout Western Canada and in North Dakota, providing these services at its full service terminals ("FST"), landfills, stand-alone water disposal facilities ("SWD") and full service rail facilities ("FSR").

Drilling and Production Services Division ("DPS"): The DPS division provides equipment and product solutions for drilling, completion and production operations for oil and gas producers in western Canada. The drilling service line comprises the majority of the revenue for the division which includes the design and implementation of drilling fluid systems for producers drilling for oil, bitumen and natural gas. The drilling service line focuses on providing products and systems that are designed for more complex wells, such as medium to deep wells, horizontal wells and horizontal wells drilled into the oil sands. The production services line focuses on providing equipment and chemical solutions that optimize production, provide flow assurance and maintain the integrity of production assets. 

Onsite Services Division ("OS"): The operations of the OS division include Projects which include pipeline integrity (inspection, excavation, repair, replacement and rehabilitation), demolition and decommissioning, and reclamation and remediation of former wellsites, facilities, commercial and industrial properties, and environmental construction projects (landfills, containment ponds, subsurface containment walls, etc.); Environmental services which provide pre-drilling assessment planning, drilling waste management, remediation and reclamation assessment services, Naturally Occurring Radioactive Material ("NORM") management, waste container services, and emergency response services; and Integrated Fluid Solutions ("IFS") which include water management, recycling, pumping and storage solutions. 

SOURCE SECURE Energy Services Inc.

For further information: SECURE Energy Services Inc., Rene Amirault, Chairman, President and Chief Executive Officer, Phone: (403) 984-6100, Fax: (403) 984-6101; Allen Gransch, Executive Vice President and Chief Financial Officer, Phone: (403) 984-6100, Fax: (403) 984-6101, Website: www.secure-energy.com, TSX Symbol: SES

RELATED LINKS
www.secure-energy.com

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890