STEP Energy Services Announces Normal Course Issuer Bid

CALGARY, Alberta, Dec. 14, 2023 (GLOBE NEWSWIRE) -- STEP Energy Services Ltd. (TSX:STEP) (STEP) has received approval from the Toronto Stock Exchange (TSX) to proceed with a normal course issuer bid (NCIB) for its common shares.

Under the NCIB, STEP may repurchase up to 3,611,653 common shares, representing five percent of its issued and outstanding common shares as at December 6, 2023. The NCIB is to commence on December 19, 2023 and end on December 18, 2024 or such earlier date as STEP may complete its maximum allowable purchases under the bid. Under the NCIB, other than purchases made under block purchase exemptions, STEP may purchase up to 22,557 common shares on the TSX during any trading day, which represents approximately 25 percent of the average daily trading volume on the TSX of 90,228 for the six months ended November 30, 2023.

STEP believes that the current market price of the common shares does not accurately reflect their underlying value and that an NCIB represents an appropriate and desirable use of its available funds to increase shareholder value.

Any purchases made under the NCIB will be made by STEP at then-prevailing market prices through the facilities of the TSX and/or alternative Canadian trading systems. The actual number of common shares purchased pursuant to the NCIB and the timing of such purchases will be determined by STEP. Although STEP intends to purchase common shares under the NCIB, there can be no assurances that any such purchases will be completed. Any common shares purchased under the NCIB will be cancelled.

In connection with the NCIB, STEP has entered into an automatic securities purchase plan (ASPP) with a designated broker. The ASPP is intended to allow for the purchase of common shares during certain pre-determined blackout periods during which STEP would ordinarily not be permitted to purchase common shares. Purchases under the ASPP will be determined by the designated broker in its sole discretion based on the purchasing parameters set by STEP in accordance with the rules of the TSX, applicable securities laws and the terms of the ASPP. The ASPP has been pre-cleared by the TSX and will become effective on December 19, 2023, concurrently with the commencement of the NCIB. Outside of blackout periods, common shares may be purchased under the NCIB based on management’s discretion, in compliance with TSX rules and applicable securities laws. All purchases made under the ASPP will be included in computing the number of common shares purchased under the NCIB.

FORWARD-LOOKING INFORMATION & 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 “expects”, “expected”, “guidance”, “intends”, “opportunity”, “may”, “project”, “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: STEP’s intent to purchase common shares under the NCIB, statements with respect to the anticipated benefits of the NCIB, and the number of common shares which may be purchased under the NCIB. 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 market price of STEP’s common shares; STEP’s future available capital; and STEP’s future debt levels. 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.

The forward-looking information 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 due to the risk factors set forth under the heading “Risk Factors” in STEP’s Annual Information Form for the year ended December 31, 2022, dated March 1, 2023.

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 (“E&P”) companies in Canada and the U.S. Our Canadian services are focused in the Western Canadian Sedimentary Basin (“WCSB”), while in the U.S., our fracturing and coiled tubing services are focused in the Permian and Eagle Ford in Texas, the Uinta-Piceance and Niobrara-DJ basins in Colorado 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.

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