Enseco Energy Services Corp. Announces Record Results for the

Enseco Energy Services Corp. Announces Record Results for the Quarter
Ended September 30, 2012 
CALGARY, ALBERTA -- (Marketwire) -- 11/26/12 -- Enseco Energy
Services Corp. ("Enseco" or the "Company") (TSX VENTURE:ENS) is
pleased announce its financial results for the quarter ended
September 30, 2012. 
HIGHLIGHTS FOR THE QUARTER ENDING SEPTEMBER 30, 2012 
Enseco achieved the following results for the three and six months
ended September 30, 2012. 


 
--  Revenue decreased 14% to $19.1 million but increased by 1% to $33.1
    million for the three and six months ended September 30, 2012
    respectively as compared with the same p eriods in the prior year. 
--  Excluding one-time charges allowed for in the quarter, EBITDA as a
    percent age of revenue remained constant at 23%, demonstrating the
    effectiveness of Enseco's cost cutting and operational efficiency. 
--  Enseco's Canadian Directional Drilling division increased both adjusted
    gross margin and EBITDA for both the three and six months ended
    September 30, 2012, despite decreasing revenue caused by declining rig
    counts and pricing pressures. The motor repair facility, which has now
    been operating for 6 months, is at full efficiency and has contributed
    significantly to these results. Both the motor repair facility and the
    MWD Facility have reduced reliance on third party service providers and
    lowered development and r epair costs, which has resulted in increasing
    adjusted gross margins and EBITDAs.     
--  Enseco's Production Testing division acquired two high pressure 1440 psi
    pressure vessels, further augmenting our service offering. Enseco took
    the opportunity during low lev els of activity to reinvest in its
    personnel through training and education as well as review and improve
    its internal procedures and processes. In doing so, Enseco is well
    positioned to meet peak activity levels through the upcoming winter
    season. 
--  Enseco is currently increasing its sales presence both in Canada and the
    US to better position itself for 2013. 
 
RESULTS FROM OPERATIONS                                                     
                                                                            
                                     Three mo
nths ended    Six months ended 
                                           September 30,       September 30,
In thousands of dollars                  2012      2011      2012      2011 
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Revenue                              $ 19,167  $ 22,294  $ 33,086  $ 32,890 
--------------------------------------------------------------------------- 
Adjusted gross margin(1)             $  7,575  $  8,784  $ 11,570  $ 11,641 
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EBITDAS(1)                           $  3,231  $  5,085  $  3,385  $  4,669 
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Net income (loss) from continuing                                           
 operations, before tax              $   (253) $  3,264  $ (2,391) $    115 
  Per common share - basic and                                              
   diluted                           $  (0.04) $   0.17  $  (0.15) $   0.01 
----------------------------------------------------------------------------
  Deferred taxes included in cash                                           
   flow before changes in non-cash   $                   $                  
   working capital items                 (612)               (892)          
----------------------------------------------------------------------------
Cash flow, before changes in non-                                           
 cash working capital items (1)      $  3,086  $  5,035  $  2,493  $  4,619 
----------------------------------------------------------------------------
Cash flow from/(used in), operating                                         
 activities                          $   (106) $     55  $  6,193  $  6,740 
----------------------------------------------------------------------------
                                                                            
(1) See definition within the Non-IFRS M easures section of this MD&A   

 
OUTLOOK 
Management continues to carefully monitor industry activity levels in
western Canada and the Corporation's US operating areas to ensure
equipment and manpower are positioned to provide sustainable
equipment utilization rates given the current volatility in commodity
prices, increased competition and decreased activity levels. 
Enseco is pleased with the implementation of its corporate capital
and operations strategy, which has resulted in service quality,
rental reduction and cost monitoring improvements. 
With the engineering improvements and reductions in rebuild times now
available through Enseco's motor repair facility, it is expected that
its rental requirements and repair costs will continue to remain low
even as activity grows. The motor repair facility was able to repair
50% of the motor fleet through the quarter, and expects its internal
repair rate to increase to 80% by year end. 
Enseco will continue to focus on investing in capital that will
reduce rentals and enhance our internal repair and maintenance
capabilities. These initiatives continue to enhance its operating
efficiencies and margins. 
Management believes that activity levels will continue to be
constrained; however, we are cautiously optimistic that we will be
able to improve the adjusted gross margin and EBITDAs through
continued engineering improvements, internal repairs, and reduction
of rental equipment. 
FILINGS 
Enseco has filed with Canadian securities regulatory authorities its
unaudited condensed consolidated financial statements for the three
and six months ending September 30, 2012 and the accompanying
management's discussion and analysis ("MD&A"). These filings are
available under Enseco's SEDAR profile at www.sedar.com. 
ABOUT ENSECO ENERGY SERVICES CORP. 
Enseco is a premier supplier of directional drilling, production
testing and frac flowback services operating throughout the Western
Canadian Sedimentary Basin and select markets in the United States,
Our corporate office is located in Calgary and sales offices are
located in both Calgary and Denver. Enseco is led by an experienced
management team with a focus on continued value creation through
accretive acquisitions and organic growth. 
FORWARD LOOKING DISCLAIMER 
Certain information and statements contained in this press release
constitute forward-looking information, including, but not limited
to: statements concerning Enseco's future business strategy,
marketing and expansion plans; expectations regarding future
revenues, gross margins, EBITDA, cash flow, improved efficiencies,
cost reductions, and other financial results; expectations regarding
resource play drilling activity levels and drilling programs; plans
to increase staffing levels; general industry and operating
conditions, expectations regarding future utilization rates and
demand for the Company's services; future geographical and product
focus; the impact of the Company's MWD lab and motor repair facility;
anticipated future rental and repair costs; planned capital
expenditures and acquisitions, and plans to continue to reduce debt
levels; and the competitive position of Enseco's business divi
sions.
Although management of the Company believes that the expectations
reflected in such forward looking statements are reasonable, it can
give no assurance that such expectations will prove to have been
correct. Accordingly, readers should not place undue reliance upon
any of the forward-looking information set out in this press release.
Readers should review the cautionary statement respecting
forward-looking information that appears below. All of the forward
looking statements of the Company contained in this press release are
expressly qualified, in their entirety, by this cautionary statement. 
The information and statemen ts contained in this press release that
are not historical facts are forward-looking statements.
Forward-looking statements (often, but not always, identified by the
use of words such as "seek", "plan ", "continue", "estimate",
"project", "predict", "potential", "targeting", "intend", "could",
"might", "should", "believe", "e xpect", "may", "anticipate" or
"will" and similar expressions) may include plans, expectations,
opinions, or guidance that are not statements of fact.
Forward-looking statements are based upon the opinions, expectations
and estimates of management as at the date the statements are made
and are subject to a variety of risks and uncertainties and other
factors that could cause actual events or outcomes to differ
materially from those anticipated or implied by such forward-looking
statements. These factors include, but are not limited to, such
things as changes in industry conditions (including the levels of
capital expenditures made by oil and gas producers and explorers),
the credit risk to which the Company is exposed in the conduct of its
business, fluctuations in prevailing commodity prices or currency and
intere st rates, the competitive environment to which the various
business divisions are, or may be, exposed in all aspects of their
business, the ability of the Company's various business divisions to
access equipment (including parts) and new technologies and to
maintain relationships with key suppliers, the ability of the
Company's various business divisions to attract and maintain key
personnel and other qualified employees, various environmental risks
to which the Company's business divisions are exposed in the conduct
of their operations, in herent risks associated with the conduct of
the businesses in which the Company's business divisions operate,
timing and costs associated with the acquisition of capital
equipment, the impact of weather and other seasonal factors that
affect business operations, availability of financial resources or
third-party financing and the impact of new laws or changes in
administrative practices on the part of regulatory authorities. 
Forward-looking information concerning the nature and timing of
growth within the various business divisions is based on the current
budget of the Company (which is subject to change), factors that
affected the historical growth of such business divisions, sources of
historic growth opportunities, anticipated capital expenditures, and
expectations relating to future economic and operating conditions.
Forward-looking information concerning the future competitive
position of the Company's business divisions is based upon the
current competitive environment in which those business divisions
operate, expectations relating to future economic and operating
conditions, current and announced build programs and other expansion
plans of other organizations that operate in the energy service
business. Forward-looking information conc erning the financing of
future business activities is bas ed upon the financing sources on
which the Company has historically relied and expectations relating
to future economic and operating conditions. Forward-looking
information concerning future economic and operating conditions is
based u pon historical economic and operating conditions, opinions of
third-party analysts respecting anticipated economic and operating
conditions. 
With respect to forward-looking statements contained in this press
release, Enseco has made assumptions regarding commo dity prices and
royalty regimes, availability of skilled labour, timing and amount of
capital expen ditures, future foreign exchange rates, interest rates,
the impact of increasing competition, conditions in general economic
and financial markets, effects of regulation by governmental
agencies, and future operating costs. 
Management has included the above summary of assumptions and risks
related to forward-looking information provided in this press release
in order to provide shareholders with a more complete perspective on
Enseco's future operations and such information may not b e
appropriate for other purposes. Enseco'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 so, what benefits that the Enseco will derive there from. Readers
are cautioned that the foregoing lists of factors are not exhaustive.
These forward-looking statem ents are made as of the date of in this
press release and Enseco disclaims any obligation to updat publicly
any forward- looking statements, whether as a result of new
information, future events or results or otherwise, other than as
required by applicable securities laws. 
NON-IFRS MEASURES 
EBITDAS means earnings before interest, taxes, depreciation and
amortization, and stock-based compensation and is equal to earnings
before income taxes from continuing operations plus interest on debt,
other charges and interest expense, depreciation and amortization,
stock-based compensation, unrealized foreign exchange loss, and loss
on sale of equipment. Adjusted gross margin equals gross margin, plus
interest on debt, other charges and interest expense, depreciation
and amortization, stock-based compensation, impairment loss/recovery,
and loss on sale of equipment. Cash flow means cash flows provided by
continuing operations before changes in non-cash working capital
items. 
EBITDAS, adjusted gross marg in, and cash flows from continuing
operations before changes in non-cash working capital items are not
recognized measures under Internation al Financial Reporting
Standards ("IFRS"). Management believes that in addition to net
losses, EBITDAS, adjusted gross margin and cash flows, are useful
supplemental measures as they provide an indication of the results
generated by the Company's pr imary business activities prior to
consideration of how those activities are financed, amortized or how
the results are taxed in various jurisdictio ns as well as the cash
generated by the Company's pr imary business activities. Readers
should be cautioned, however, that EBITDAS, adjusted gross margins
and cash flows from continuing operations before changes in non-cash
working capital items should not be construed as an alternative to
net losses determined in accordance with IFRS as an indicator of
Enseco's performance. Enseco's method of calculating operating
losses, EBITDAS, adjusted gross margin and cash flows from continuing
operations before changes in non-cash working capital items may
differ from other organizations and,
 accordingly, such measures may
not be comparable to measures used by other organizations. For
reconciliation to the appropriate IFRS measure, see our MD&A. 
Neither the TSX Venture Exchange nor its Regulation Service Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release. 
Contacts:
Enseco Energy Services Corp.
Kent Devlin
President
403-806-0088 
Enseco Energy Services Corp.
Blair Layton
CFO
403-806-0088
info@enseco.com