Secure Reports Strong Fourth Quarter and Year End Results Despite Slower Industry Conditions

Secure Reports Strong Fourth Quarter and Year End Results Despite Slower 
Industry Conditions 
CALGARY, ALBERTA -- (Marketwire) -- 03/04/13 -- Secure Energy
Services Inc. ("Secure" or the "Corporation") (TSX:SES) today
announced financial and operational results for the three months and
year ended December 31, 2012. The following should be read in
conjunction with the management's discussion and analysis ("MD&A"),
the consolidated financial statements and notes of Secure which are
available on SEDAR at www.sedar.com. 


 
2012 FINANCIAL AND OPERATIONAL HIGHLIGHTS                                   
                                                                            
                  Three Months Ended Dec 31,         Year Ended Dec 31,     
($000's except                                                              
 share and per                               %                             %
 share data)(1)         2012       2011 Change        2012       2011 Change
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Revenue                                                                     
 (excludes oil                                                              
 purchase and                                                               
 resale)             108,356    101,999      6     392,192    231,051     70
Oil purchase and                                                            
 resale              170,501    129,262     32     637,248    320,148     99
----------------------------------------------------------------------------
Total revenue        278,857    231,261     21   1,029,440    551,199     87
----------------------------------------------------------------------------
EBITDA (2)            28,360     24,785     14      99,624     61,964     61
  Per share ($),                                                            
   basic                0.27       0.28     (4)       1.03       0.79     30
  Per share ($),                                                            
   diluted              0.26       0.26      -        1.00       0.75     33
----------------------------------------------------------------------------
Net earning
s          10,634     10,290      3      33,052     22,383     48
  Per share ($),                                                            
   basic                0.10       0.12    (17)       0.34       0.28     21
  Per share ($),                                                            
   diluted              0.10       0.11     (9)       0.33       0.27     22
----------------------------------------------------------------------------
Capital                                                                     
 Expenditures         67,604     29,330    130     201,587    202,053      -
Total assets         767,911    603,083     27     767,911    603,083     27
Long term                                                                   
 borrowings          122,810    119,070      3     122,810    119,070      3
----------------------------------------------------------------------------
Common Shares -                                                             
 end of period   104,627,002 90,156,688     16 104,627,002 90,156,688     16
Weighted average                                                            
 common shares                                                              
  basic          104,530,375 89,481,219     17  96,388,929 78,540,224     23
  diluted        107,456,318 93,718,121     15  99,362,698 82,944,975     20
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(1) Certain amounts were reclassified to conform with current period        
    presentation                                                            
(2) Refer to "Non GAAP measures and operational definitions"                

 
Secure's financial performance for 2012 increased significantly over
2011 resulting in a record year. For the year ended December 31,
2012, revenue (excluding oil purchase and resale) increased 70% to
$392.2 million and net earnings improved 48% to $33.1 million while
total assets increased 27% to total $767.9 million when compared to
the year ended December 31, 2011. The Corporation executed on its
organic growth and expansion initiatives adding $167.8 million of new
facilities and equipment, and completing $36.6 million of
acquisitions. Secure's results reflect increased demand at existing
processing, recovery and disposal ("PRD") facilities and increased
market share in the drilling services ("DS") division despite slower
oil and natural gas industry activity in the second half of 2012. The
PRD division 2012 operating margin of $79.6 million increased 63%
from 2011 as a result of new facilities and expansions as well as
greater demand for the Corporation's services. The DS division added
operating margin of $63.0 million and increased its year over year
market share in the Western Canadian Sedimentary Basin ("WCSB") to
29% from 26%. 


 
--  RECORD REVENUE AND EBITDA 
    
    --  Revenue for the year ended December 31, 2012 (excluding oil purchase
        and resale) increased 70% compared to the year ended December 31,
        2011. The major contributing factors from the PRD division included
        the new facilities and expansions completed during the year, higher
        disposal and processing volumes from existing facilities, and a key
        acquisition in North Dakota. The DS division revenue increased
        significantly as a result of twelve months of operations in 2012
        versus seven months in 2011, completion of two key acquisitions and
        through increased demand for its services. The Corporation's fourth
        quarter 2012 revenue (excluding oil purchase and resale) increased
        to $108.4 million from $102.0 million in the fourth quarter of 2011.
        The increase relates to higher demand, new facilities and expansions
        completed in 2012 and acquisitions executed during the year, offset
        by a reduction in 2012 fourth quarter activity levels compared to
        the fourth quarter of 2011. Despite quarter over quarter average rig
        count decline of 28% as reported by the Canadian Association of
        Oilwell Drilling Contractors ("CAODC"), the DS division fourth
        quarter 2012 revenue decreased by only 4% when compared to the
        fourth quarter of the prior year; 
        
    --  Oil purchase and resale revenue in the PRD division for the three
        and twelve months ended December 31, 2012 of $170.5 million and
        $637.2 million increased 32% and 99% respectively from the same
        periods in 2011. The increase in the fourth quarter of 2012 was a
        result of the addition of the Dawson FST crude oil treating and
        terminalling plant in June of 2012. The significant increase in the
        year resulted from the Drayton Valley FST being operational for a
        full year, the addition of the crude oil treating and terminalling
        at the Dawson FST and overall increased demand; and 
        
    --  EBITDA (earnings before interest, taxes, depreciation and
        amortization) for the three and twelve months ended December 31,
        2012 increased 14% and 61%, respectively, compared to the three and
        twelve months ended December 31, 2011. Increases in revenue as
        discussed above and higher operating margins translated into higher
        EBITDA for the three months and year ended December 31, 2012. 
        
--  DIVERSIFICATION INTO NEW MARKETS AND NEW AREAS 
    
    --  Organic expansion and growth capital totaled $66.4 million and
        $167.8 million for the three and twelve months ended December 31,
        2012. Total assets as of December 31, 2012 were $767.9 million
        compared to $603.1 million as of December 31, 2011. New facilities
        completed, expansion of existing facilities and new projects
        initiated in the year included: 
        
        --  Drayton Valley FST Oil Based Mud ("OBM") blending facility; 
            
        --  South Grande Prairie mud storage system; 
            
        --  Wild River stand alone water disposal facility ("SWD")
            (permanent facility); 
            
        --  Obed, Dawson and Fox Creek full service terminal (" FST")
            expansions including the Phase III (oil treating and
            terminalling) at Dawson; 
            
        --  South Grande Prairie and Pembina landfill expansions; 
            
        --  Fox Creek landfill (completed in December of 2012); 
            
        --  Crosby North Dakota SWD, (completed in December of 2012),
            Secure's first organic project in the United States; 
            
        --  Construction of the new Judy Creek FST (joint venture with
            Pembina Pipelines Corporation) and the Rocky FST; both expected
            to be operational in the second quarter of 2013; 
            
        --  Construction of the new Edson SWD, temporary facility scheduled
            to open in the first quarter of 2013 with permanent facility
            forecasted to be operational the beginning of 2014; 
            
        --  New Kabob SWD, initial development complete with construction
            commencing in the second quarter; and 
            
        --  Various long lead equipment purchases for the 2013 capital
            projects. 
            
    --  Strategic acquisition capital totaled $36.6 million ($30.8 million
        cash portion) in 2012, targeting under- serviced and capacity
        constrained markets: 
        
        --  Asset purchase of DRD Saltwater Disposal LLC ("DRD" ) in July
            provided entry into the North Dakota Bakken, expanding PRD
            operations outside of the WCSB into the United States; 
            
        --  New West Drilling Fluids Inc. acquisition in January expanded
            the DS division drilling fluid solutions into the heavy oil and
            oil sands area of north eastern Alberta; and 
            
        --  Purchase of the assets of Imperial Drilling Fluids Engineering
            Inc. ("IDF"). The acquisition provides the Corporation with
            access to the developing Niobrara area in the U.S. Rockies. 
            
--  SOLID BALANCE SHEET 
    
    --  On November 1, 2012 Secure increased its syndicated credit facility
        from $200.0 million to $300.0 million through an amended and
        restated extendible credit facility agreement. The credit agreement
        includes an accordion provision to increase the credit facility by
        $50.0 million to $350.0 million; 
        
    --  In August, a bought deal financing was completed raising total
        proceeds of $86.3 million. The net proceeds from the financing were
        used to initially repay the Corporation's credit facility. Funds
        have been redrawn on the credit facility to fund a portion of the
        2012 and 2013 capital projects; 
        
    --  Funds from operations increased 12% in the fourth quarter of 2012 to
        $24.8 million from the comparative quarter in 2011 and 57% for the
        year ended December 31, 2012 compared to the same period in 2011.
        Increases were used to partially fund the Corporation's 2012 capital
        projects thereby minimizing draws on the credit facility; and 
        
    --  Secure's debt to EBITDA ratio was 1.51 as of December 31, 2012
        compared to 2.07 as of December 31, 2011.
        
 
PRD DIVISION OPERATING HIGHLIGHTS                                           
                                                                            
                            Three Months Ended Dec                          
                                     31,               Year Ended Dec 31,   
                                                  %                        %
($000's)(1)                   2012     2011  Change    2012     2011  Change
----------------------------------------------------------------------------
                                                                            
Revenue                                                                     
  Processing, recovery and                                                  
   disposal services (a)    36,558   27,324      34 129,893   83,345      56
  Oil purchase and resale                                                   
   service                 170,502  129,262      32 637,248  320,148      99
                          --------------------------------------------------
  Total PRD division                                                        
   revenue                 207,060  156,586      32 767,141  403,493      90
                          --------------------------------------------------
                                                                            
                                                                            
Operating Expenses                                                          
  Processing, recovery and                                                  
   disposal services (b)    13,904   10,756      29  50,246   34,581      45
  Oil purchase and resale                                                   
   service                 170,502  129,262      32 637,248  320,148      99
  Depreciation, depletion,                                                  
   and amortization          9,057    6,193      46  29,356   19,153      53
                          --------------------------------------------------
  Total operating expenses 193,463  146,211      32 716,850  373,882      92
General and administrative   4,483    3,305      36  14,281   10,041      42
                          --------------------------------------------------
Total PRD division                                                          
 expenses                  197,946  149,516      32 731,131  383,923      90
                                                                            
Operating Margin (2) (a-b)  22,654   16,568      37  79,647   48,764      63
Operating Margin (2) as a                                                   
 % of revenue (a)               62%      61%      2      61%      59%      3
----------------------------------------------------------------------------
(1) Certain amounts were reclassified to conform with current period        
    presentation (see note below)                                           
(2) Refer to "Non GAAP measures and operational definitions"                

 
Note: In the prior year, the Corporation completed the acquisition of
Marquis Alliance Energy Group Inc. and its wholly owned subsidiaries
("Marquis Alliance") and XL Fluids Systems Inc. ("XL Fluids"),
creating the DS division. In 2012, Secure has reclassified certain
costs previously included in the PRD division, including segregating
out costs associated with Corporate overhead. Accordingly, any
reclassifications in 2012 were adjusted in the prior year to conform
to current period presentation. 
Highlights for the PRD division included: 


 
--  Revenue from processing, recovery and disposal for the three and twelve
    months ended December 31, 2012 increased by 34% and 56%, respectively
    compared to the same periods of 2011. Revenue increases over the prior
    year and quarter are due to processing volume increases of 110% and 35%
    respectively and disposal volume increases of 37% and 29% respectively.
    Overall volumes have increased as a result of: 
    
    --  New facility additions and expansions in late 2011 and throughout
        2012 which include the new Drayton Valley FST in the fourth quarter
        of 2011; the acquisition of the Silverdale FST in October 2011; the
        new Wild River SWD permanent facility in the second quarter of 2012;
        the expansions of Obed, Fox Creek and Dawson FSTs; the acquisition
        of DRD in July 2012; the new Crosby, North Dakota SWD in December
        2012; and the new Fox Creek Landfill in December of 2012 (the "new
        facilities and expansions"); 
    --  Increased demand over the prior year and quarter as processing
        volumes from existing facilities that were in operation at the same
        respective periods in 2012 and 2011 continued to see growth. 
 
--  Recovery revenue from the sale of oil recovered through waste
    processing, crude oil handling, marketing and terminalling increased by
    21% and 49% for the three and twelve months ended December 31, 2012
    compared to the same period in 2011. The amount of recovery revenue
    increased with the addition of new facilities and expansions during the
    year, with higher processing volumes and due to the Corporation's
    ability to capitalize on crude oil marketing opportunities at its FSTs. 
    
--  Operating expenses from PRD services for the three and twelve months
    ended December 31, 2012 increased to $13.9 million and $50.2 million
    respectively from $10.8 million and $34.6 million for the comparative
    periods of 2011. The increase in operating expenses year over year and
    quarter over quarter relates to the new facilities and expansions added
    organically, the Silverdale and DRD acquisitions and due to an increase
    in processing volumes from existing facilities. In addition, the
    Corporation incurred start-up costs for the Fox Creek landfill and
    Crosby SWD which both became operational in December of 2012. 
    
--  Operating margin as a percentage of revenue was 62% and 61% for the
    three and twelve months ended December 31, 2012 compared to 61% and 59%
    for the same respective periods of 2011. The two percentage point year
    over year increase was a result of improvements in operating
    efficiencies at the facilities and improved weather conditions
    experienced during the year. The Corporation did not experience the same
    weather conditions in 2012 as it did in 2011. Weather conditions in 2011
    added approximately $2.0 million to operating expenses as a result of
    increased road maintenance, site and equipment, and leachate disposal
    expenses due to heavy rains. In the fourth quarter of 2012, operating
    costs and margins improved by 1% due to operating efficiencies, however
    the improvement was marginally impacted by freezing rain in early
    November increasing road and site costs and from startup costs related
    to the new facilities opened in December. 
    
--  General and administrative ("G&A") costs have increased for the three
    and twelve months ended December 31, 2012 compared to the same periods
    of 2011 as a result of new employees hired to support growth in the PRD
    division in Canada and the United States, information system expenses
    and the establishment of the PRD divisional office in Denver, Colorado.
    G&A as a percentage of revenue improved to 11% for the twelve months
    ended December 31, 2012 compared to 12% for the twelve months ended
    December 31, 2011. G&A as a percentage of revenue for the three months
    ended December 31, 2012 was 12% which was consistent to the fourth
    quarter of 2011. 
 
DS DIVISION OPERATING HIGHLIGHTS                                            
                                                                            
                     Three Months Ended Dec 31,      Year Ended Dec 31,     
                                              %                           % 
($000's)(1)              2012      2011  Change      2012      2011  Change 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Revenue                                                                     
  Drilling services                                                         
   (a)                 71,797    74,675      (4)  262,299   147,706      78 
                                                                            
Operating expenses                                                          
  Drilling services                                                         
   (b)                 53,899    57,087      (6)  199,270   109,919      81 
  Depreciation and                                                          
   amortization         2,995     2,643      13    12,412     5,777     115 
                    --------------------------------------------------------
Total DS division                                                           
 operating expenses    56,894    59,730      (5)  211,682   115,696      83 
  General and                                                               
   administrative       7,199     5,620      28    26,867    12,036     123 
                    --------------------------------------------------------
Total DS division                                                           
 expenses              64,093    65,350      (2)  238,549   127,732      87 
                    --------------------------------------------------------
                    --------------------------------------------------------
                                                                            
Operating Margin (2)                                                        
 (a-b)                 17,898    17,588       2    63,029    37,787      67 
Operating Margin %                                                          
 (2)                       25%       24%      4        24%       26%     (8)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(1) Includes DS division from its acquisition on June 1, 2011.              
(2) Refer to "Non GAAP measures and operational definitions"                

 
Highlights for the DS division included: 


 
--  Revenue for the DS division for the year ended, December 31, 2012
    increased 78% to $262.3 million from $147.7 million for the seven months
    ended December 31, 2011. The year over year increase in revenue is
    mostly attributable to a full year of activities in 2012 versus the
    seven months of 2011 and the increase in Canadian market share. Canadian
    market share for the drilling fluids service line for the year ended
    December 31, 2012 was approximately 29%, up from 26% in 2011. The market
    share increased as a result of the successful integration of the XL
    Fluids Systems Inc. and New West Drilling Fluids Inc. acquisitions,
    offering a broader product line by adding SAGD and completion fluid
    products and the introduction of new technology such as well bore
    strengthening and lost circulation additives for oil based mud drilling
    and new products for the drilling of horizontal wells in the oil sands. 
    
--  In the fourth quarter of 2012, the CAODC's average rig count was 351
    rigs, down 28% from the 489 average rigs working during the comparative
    period of 2011. Despite activity being down 28%, revenue only decreased
    4% from the previous year's quarter. DS revenue did not decrease to the
    same extent as industry due to the division's ability to increase its
    market share over the same quarter of 2011 and due to the addition of
    IDF. For the fourth quarter of 2012, market share for the Canadian
    drilling fluid service line was approximately 30% compared to 25% for
    the same period in 2011, again for the same reasons as discussed above. 
    
--  Revenue per operating day for the year ended December 31, 2012 for the
    Canadian drilling fluids service line was $5,449 compared to $4,995 for
    the seven months ended December 31, 2012. Fourth quarter 2012 revenue
    per operating day in Canada increased to $5,642 compared to $5,563 for
    the prior year period. Revenue per operating day for the year and
    quarter in 2012 increased over the same respective periods in 2011 due
    to an increased volume of oil based muds. Oil based fluids have a higher
    selling price than water based fluids. Oil based fluid demand has
    increased due to an increase in horizontal and directional drilling. 
    
--  Operating margin for the fourth quarter of 2012 improved by 1% compared
    to the same period of 2011. A contributing factor in the one percentage
    point margin increase is due to logistical savings associated with the
    Drayton Valley blending plant and increased sales on higher margin
    proprietary products. For the year ended December 31, 2012, operating
    margins decreased by 2% compared to the seven months ended December 31,
    2011. The decrease in the operating margin for the year is due to a
    higher proportion of revenue associated with oil based drilling fluids
    use which has a lower margin than water based drilling fluids. 
    
--  General and administrative costs for the three and twelve months ended
    December 31, 2012 increased by 28% and 123%, respectively, versus the
    comparative periods of 2011. The year over year increase is the result
    of a full twelve months of operations in 2012 versus seven months of
    operation in 2011 and an increase in headcount and associated costs to
    manage the growth in U.S. operations. The increase in the fourth quarter
    of 2012 is attributable to a higher headcount plus associated costs to
    improve infrastructure and manage the growing business in the US,
    including supporting the recent IDF acquisition. G&A as a percentage of
    revenue for the three and twelve months ended December 31, 2012 was 10%
    for both respective periods compared to 8% for both the three and seven
    month period ended December 31, 2011. The G&A percentage increased by
    two percentage points in the quarter due to lower revenue from slower
    industry conditions. On an annual basis, the percentage increase was due
    to the reasons as cited above.

 
OUTLOOK 
Secure had a successful and rewarding year in 2012. The Corporation
achieved significant growth while creating value for our shareholders
over the past year. Concerns over crude oil differentials, natural
gas liquid pricing and natural gas fundamentals in North America are
leading to cautious producer spending plans for 2013. There is
optimism that producer capital programs will be revised upwards in
the latter half of 2013 predicated on continued foreign investment,
improved access to capital for producers, stability in crude oil
pricing and a narrowing of differentials and further clarity on
future liquid natural gas ("LNG") export facility developments. There
have been a number of recent positive developments for oilfield
activity in the Western Canadian Sedimentary Basin ("WCSB") including
the approval of the Nexen/CNOOC and Progress/PETRONAS transactions
and the Encana/PetroChina Joint Venture in the Duvernay play. The
Canadian Association of Oilwell Drilling Contractors is forecasting a
6% year over year decrease in well counts and drilling operating days
in the WCSB. Despite the flat well count, average well depth is
expected to continue to increase and the total of metres drilled in
the WCSB is expecting to climb from 2012. In the United States,
drilling activity peaked in the first quarter of 2012 and weakened
over the course of the year as producers high graded development
programs, in general shifting from natural gas drilling to crude oil
plays. Expectations are for the U.S. land rig count to trough at some
point in early 2013 with improvement in subsequent quarters. 
Secure's continued investment in new facilities in Canada and the
United States in 2012 provides a basis for continued growth into
2013. Secure recently announced a 2013 capital expenditure program of
$155.0 million. $15.0 million is carry over capital from 2012
projects related to the Judy Creek and Rocky FSTs. The Rocky FST and
the Judy Creek FST are expected to be completed in the second quarter
of 2013. $115.0 million is allocated to PRD growth initiatives
including three FSTs, two SWDs and one landfill. The Corporation has
started development of new Alberta SWDs at Edson and Kabob in the
fourth quarter of 2012 and is in the planning stages of initiating
new SWD projects at Keene and Stanley in North Dakota. All of these
SWDs will be assessed for conversion to FST facilities pending
regulatory approval and customer demand. It is expected that the
majority of other PRD capital initiatives for 2013 will not have any
material cash flow impact until 2014, which is typical considering
the approval and construction timelines for these types of
facilities. The DS division's growth initiatives include adding $15.0
million of solids control equipment allocated evenly between Canada
and the United States. Secure's strong balance sheet has sufficient
capacity to fund its capital program. The Corporation plans to fund
the 2013 capital program through operating cash flow and available
credit facilities. In addition to growth through capital projects,
Secure expects market expansion attributed to increased demand for
the Corporation's integrated service offerings through all stages of
the value chain. Due to tighter regulatory and environmental
standards, it is expected that producers will increasingly outsource
their waste and water disposal needs as oil and gas by-products
continue to increase. Secure's full-suite of services will continue
to serve an existing and growing network of customers seeking
end-to-end solutions for their waste handling needs. 
The Corporation's focus on organic growth opportunities is
complemented by strategic acquisitions as a way to expedite market
presence in key areas. The IDF and DRD acquisitions in the third
quarter of 2012 demonstrate how the Corporation capitalized on
opportunities to gain an immediate presence in new market areas in
the United States. The Corporation's primary goal is to exceed
expectations of oil and gas producers by providing innovative,
efficient and environmentally responsible fluid and solid solutions.
In 2013, the Corporation will continue to look to expand through
accretive acquisition opportunities that align with Corporation's
value chain. 
The organic growth and expansion capital budget detailed above will
enhance our competitive positioning and expands our service offering
in both Canada and the US. The diversity of Secure's asset base
lessens the impact of drilling related revenue streams in favour of
production related services. Secure has a focused strategy of
constructing and expanding facilities and services in key
under-serviced and capacity constrained markets. A solid balance
sheet provides the leverage and flexibility to execute this strategy. 
FINANCIAL STATEMENTS AND MD&A 
The consolidated financial statements and MD&A of Secure for the
three and twelve months ended December 31, 2012 are available
immediately on Secure's website at www.secure-energy.ca. The
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", "continues",
"maintains", "target" 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
forward-looking statements pertaining to: general market conditions;
the oil and natural gas industry; activity levels in the oil and gas
sector, including drilling levels; commodity prices for oil, natural
gas liquids and natural gas; demand for the Corporation's services
and the factors contributing thereto; expansion strategy; the 2013
capital budget, the allocation between the PRD and DS divisions and
the factors contributing thereto and the intended use thereof; debt
service; capital expenditures; completion of facilities; future
capital needs; access to capital; acquisition strategy; the
Corporation's capital spending on the Rocky Mountain House and Judy
Creek, Alberta full service terminals and the timing of completion
thereof; the capital spending on the at Saddle Hills, Alberta and the
timing for completion thereof; the capital spending on the stand
alone water disposal facilities at Kabob and Edson, Alberta and the
timing of the completion thereof; the capital spending on the stand
alone water disposal facilities at Keene and Stanley, North Dakota
and the timing of the completion thereof; the amount of the
Corporation's asset retirement obligations and the timing thereof;
and oil purchase and resale revenue. 
Forward-looking statements concerning expected operating and economic
conditions are based upon prior year results as well as assumptions
that increases in market activity and growth will be consistent with
industry activity in Canada, the United States, and internationally
and growth levels in 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 is based upon the assumptions that
economic and operating conditions, including commodity prices, crude
oil and natural gas storage levels, interest rates, the regulatory
framework regarding oil and natural gas royalties, environmental
regulatory matters, the ability of the Corporation and its subsidiary
to successfully market their PRD (as defined herein) services in the
Western Canadian Sedimentary Basin ("WCSB") and North Dakota and
their DS division (as defined herein) in the Western Canadian
Sedimentary Basin, the Rocky Mountain region (consisting of Colorado,
Wyoming, Montana and Utah) and North Dakota will lead to sufficient
demand for the Corporation 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
service industry will result in increased demand for the
Corporation's services and its subsidiary's services.
Forward- looking statements concerning the nature and timing of
growth is 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.
Many of these factors, expectations and assumptions are based on
management's knowledge and experience in the industry and on public
disclosure of industry participants and analysts relating to
anticipated exploration and development programs of oil and natural
gas producers, the effect of changes to regulatory, taxation and
royalty regimes, expected industry equipment utilization in the WCSB,
the Rocky Mountain region, North Dakota, and other matters. The
Corporation believes that the material factors, expectations and
assumptions reflected in the forward-looking statements and
information are reasonable; however, no assurances can be given that
these factors, expectations and assumptions will prove to be correct. 
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. 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
factors referred to under the heading "Risk Factors" in the
Corporation's annual information form ("AIF") f or the year ended
December 31, 2012 and the most recent Information Circular and
quarterly reports, material change reports and news releases. The
Corporation cannot assure investors that actual results will be
consistent with the forward-looking statements and readers are
cautioned not to place undue reliance on them. 
The Corporation's actual results could differ materially from those
anticipated in such forward-looking statements as a result of the
risk factors set forth below and elsewhere in this document: general
economic conditions in Canada and the United States; changes in the
level of capital expenditures made by oil and natural gas producers
and the resultant effect on demand for oilfield services during
drilling and completion of oil and natural gas wells; volatility in
market prices for oil and natural gas and the effect of this
volatility on the demand for oilfield service generally; risks
inherent in the Corporation's ability to generate sufficient cash
flow from operations to meet its current and future obligations;
increases in debt service charges; the Corporation's ability to
access external sources of debt and equity capital; changes in
legislation and the regulatory environment, including uncertainties
with respect to implementing binding targets for reductions of
emissions and the regulation of hydraulic fracturing services;
uncertainties in weather and temperature affecting the duration of
the oilfield service periods and the activities that can be
completed; competition; sourcing, pricing and availability of raw
materials, consumables, component parts, equipment, suppliers,
facilities, and skilled management, technical and field personnel;
liabilities and risks, including environmental liabilities and risks,
inherent in oil and natural gas operations; ability to integrate
technological advances and match advances of completion; credit risk
to which the Corporation is exposed in the conduct of its business;
and changes to the royalty regimes applicable to entities operating
in the WCSB, the Rocky Mountain region or North Dakota. Many of these
factors are discussed in further detail through this document. 
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 and Operational Definitions 


 
(2) The Corporation uses accounting principles that are generally accepted  
    in Canada (the issuer's "GAAP"), which includes, International Financial
    Reporting Standards ("IFRS"). These financial measures are No n- GAAP   
    financial measures and do not have any standardized meaning prescribed  
    by IFRS. These non-GAAP measures used by the Corporation may not be     
    comparable to a similar measures presented by other reporting issuers.  
    See the management's discussion and analysis available at               
    http://www.sedar.com/ for a reconciliation of the Non-GAAP financial    
    measures and operational definitions. These non-GAAP financial measures 
    and operational definitions are included because management uses the    
    information to analyze operating performance, leverage and liquidity.   
    Therefore, these non-GAAP financial measures and operational definitions
    should not be considered in isolation or as a substitute for measures of
    performance prepared in accordance with GAAP.                           

Contacts:
Secure Energy Services Inc.
Rene Amirault
Chairman, President and Chief Executive Officer
(403) 984-6100
(403) 984-6101 (FAX) 
Secure Energy Services Inc.
Allen Gransch
Chief Financial Officer
(403) 984-6100
(403) 984-6101 (FAX)
www.secure-energy.ca
 
 
Press spacebar to pause and continue. Press esc to stop.