Wolverine Energy and Infrastructure Inc. Announces the Filing of Fiscal 2020 Year End Results and Strategic Management Team Changes

 /NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR
FOR DISSEMINATION IN THE UNITED STATES./

EDMONTON, AB, July 28, 2020 /CNW/ - Wolverine Energy and Infrastructure Inc. ("Wolverine" or the "Company") (TSXV: WEII) is pleased to announce the filing of its Fiscal 2020 Year End Results on SEDAR and strategic adjustments to its Management Team.   

INDUSTRY OUTLOOK

For the quarter and fiscal year ending March 31, 2020, operations throughout North America remained stable leading into the unprecedented times of a global pandemic in March. Upon the global lock-down, operations in the United States came to an immediate halt with cross-state quarantine requirements. In Western Canada, activity levels remained higher than the United States, up until the shut-in of production, affecting majority of our divisions outside of the Infrastructure Division.

Leading into the first fiscal quarter of 2021, Wolverine's slowest quarter due to spring breakup in Western Canada, activity levels have been extremely slow across North America. Wolverine's diverse business model, comprising of Rentals, in both Western Canada and throughout the United States, and Water Midstream segments, has allowed for the company to realize fairly strong activity levels in both our Water Disposal and Custom Crude Treating segments and Infrastructure division, which is focused on Heavy Equipment Rentals to major projects such as the Coastal GasLink pipeline construction.

Moving forward in fiscal 2021, Wolverine does not expect major changes in activity levels until the fiscal third quarter of 2021. That being said, Wolverine is strongly positioned to benefit from increased activity levels in its Rentals division across North America once producers restart shut-in production with both its production testing and surface rentals divisions. In the meantime, Wolverine has good visibility in both our Water Disposal and Custom Crude Treating segments and Infrastructure division.

As Sir Winston Churchill stated, "never let a good crisis go to waste", Wolverine continues to be strongly positioned to consolidate the North American energy services and water midstream sectors. Wolverine continues to evaluate strategic acquisitions focused on key segments of the oil and gas market, including water management, midstream and the completions sector of the markets. If the prolonged challenges in the Western Canadian energy market, and the moderate slow down in US oil and gas activity, did not solely further increase the need for service sector consolidations, the global pandemic has. Wolverine's management continues to believe that overheads throughout the sector are inflated and competition will need to be significantly reduced for the sector to return to a healthy position. Wolverine is cautiously optimistic that the previous headwinds to getting deals completed and substantial resistance by existing management teams to consolidation, will be reconsidered during these unprecedented times and is confident this will lead to consolidation opportunities crystalizing through the back half of calendar 2020 and into 2021.

Wolverine believes that the Company's strong financial position, long term strategic financial lenders and diverse long-term customer base positions Wolverine to be an industry leader in consolidating the highly fragmented energy services space in Western Canada and take advantage of strategic, synergistic acquisition opportunities.

SENIOR MANAGEMENT CHANGES

Wolverine is excited to announce the hiring of Matthew Greenberg as the Vice President of Finance. Mr. Greenberg is a CPA, CA with over 15 years of experience in audit, accounting, corporate finance, treasury, and capital markets. Mr. Greenberg's experience spans multiple industries in both public and private companies and will be a strategic asset to Wolverine and the finance division.

In addition, Wolverine announces the following changes, effective immediately:

John Carvalho, Chief Financial Officer and Chief Investment Officer, is resigning from his position to pursue a full-time advisory services role. Mr. Carvalho has been instrumental to the growth of Wolverine and will remain part of the company advising on potential mergers and acquisitions.

Nikolaus Kiefer, Vice President of Corporate Development, will be moving to Chief Financial Officer of Wolverine.

Jesse Douglas, President and CEO, states "Following executing over $100 million of transactions since going public over a year ago, Wolverine is excited to move onto its next leg of growth. The global pandemic has affected all businesses and industries across the globe, however, has further increased the need for consolidation in the energy sector." In addition, Mr. Douglas further states, "the addition of Mr. Greenberg as our Vice President of Finance and the promotion of Mr. Kiefer to Chief Financial Officer, further bolsters Wolverines Senior Management Team. Mr. Greenberg brings a wealth of knowledge from multiple industries and sizes of companies, while Mr. Kiefer has been instrumental in growing Wolverines business both internally and through acquisitions focusing on all aspects of the business."

About Wolverine

Wolverine is an industry-leading, diversified energy and infrastructure service provider in western Canada and the United States, providing a wide range of services including: water management, production testing, oilfield/energy rentals, and environmental services (waste disposal and custom crude treating). Wolverine's original business roots and operations began in 1952. Over the course of its history, the Wolverine group of companies have pursued a strategy combining organic growth and strategic acquisitions. Today, Wolverine is strongly positioned to consolidate a highly-fragmented energy services and midstream market in western Canada, and is diligently focused on return on capital deployed, market diversification, and maintaining best-in-class services throughout the full life cycle of its diverse clients' projects.

Cautionary Statements

This news release contains forward-looking statements and/or forward-looking information (collectively, "forward-looking statements") within the meaning of applicable securities laws. When used in this release, the words "would", "will" and similar expressions, as they relate to Wolverine or its management, are intended to identify such forward-looking statements. Such forward-looking statements reflect the current views of Wolverine with respect to future events, and are subject to certain risks, uncertainties and assumptions. Many factors could cause Wolverine's actual results, performance or achievements to be materially different from any expected future results, performance or achievement that may be expressed or implied by such forward-looking statements. In particular, this news release contains or implies forward-looking statements pertaining to: non-core asset dispositions; and the use of proceeds from the Offering. These forward-looking statements are subject to numerous risks and uncertainties, including but not limited to: the impact of general economic conditions in Canada and the United States; industry conditions including changes in laws and regulations including adoption of new environmental laws and regulations, and changes in how they are interpreted and enforced, in Canada and the United States; competition; lack of availability of qualified personnel; obtaining required approvals of regulatory authorities, in Canada and the United States; volatility in market prices for oil and gas; fluctuations in foreign exchange or interest rates; environmental risks; changes in income tax laws or changes in tax laws and incentive programs relating to the oil industry; ability to access sufficient capital from internal and external sources; risk that the board of directors of Wolverine determines that it would be in the best interests of Wolverine to deploy the proceeds of the Offering for some other purpose; and other factors, many of which are beyond the control of the Company.

These forward-looking statements reflect material factors, expectations and assumptions.  Forward-looking statements included in this news release should not be read as guarantees of future performance or results. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such forward-looking statements. Although the forward-looking statements contained in this document are based upon assumptions which management of the Company believes to be reasonable, the Company cannot assure investors that actual results will be consistent with these forward-looking statements. With respect to forward-looking statements contained in this document, Wolverine has made assumptions regarding among other things: the successful listing of the Common Shares on the TSXV; availability of skilled labour; timing and amount of capital expenditures; future exchange rates; the price of oil and gas; the impact of increasing competition; conditions in general economic and financial markets; effects of regulation by governmental agencies; the continued availability of adequate equity financing and funds from operations to fund its planned expenditures; timing of drilling and completion of wells; and other matters. Wolverine's business is subject to a number of risks and uncertainties. Readers are encouraged to review and carefully consider the risk factors pertaining to Wolverine's business described in PetroMaroc's management information circular and proxy statement dated as of November 14, 2018, which is accessible on Wolverine's SEDAR issuer profile at www.sedar.com.  The forward-looking statements contained in this release are made as of the date of this release, and except as may be expressly be required by law, Wolverine disclaims any intent, obligation or undertaking to publicly release any updates or revisions to any forward-looking statements contained herein whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.

Management of the Company has included the above summary of assumptions and risks related to forward-looking information provided in this document in order to provide shareholders with a more complete perspective on Wolverine's current and future operations and such information may not be appropriate for other purposes. Wolverine's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do, what benefits Wolverine will derive therefrom.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy the Common Shares in any jurisdiction. The Common Shares have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold in the United States except in certain transactions exempt from the registration requirements of the U.S. Securities Act and applicable state securities laws.

Non-GAAP Measures

The Company uses accounting principles that are generally accepted in Canada ("GAAP"), which includes International Financial Reporting Standards ("IFRS"). Certain financial measures in this document do not have any standardized meaning as prescribed by IFRS, including the non-GAAP measure "proforma trailing 12-month EBITDA". This non-GAAP measure used by the Company, may not be comparable to similar measures presented by other reporting issuers, and is included because management uses the information to analyze the Company's operating performance. Therefore, this non-GAAP financial measure should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. Proforma trailing 12-month EBITDA is defined by the Company as net income (loss) before finance costs, equipment rent, taxes, depreciation, (gain) loss on bargain purchase, and amortization. 

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) has in any way approved or disapproved the contents of this news release. The TSXV does not accept responsibility for the adequacy or accuracy of this release.

SOURCE Wolverine Energy and Infrastructure Inc.

Nikolaus Kiefer, Chief Financial Officer at [phone] or [email protected] or visit www.wnrgi.com

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