Secure Announces a 67% Increase in EBITDA in the Third Quarter Over the Prior Year Quarter

Secure Announces a 67% Increase in EBITDA in the Third Quarter Over the Prior 
Year Quarter 
CALGARY, ALBERTA -- (Marketwired) -- 11/07/13 -- Secure Energy
Services Inc. ("Secure" or the "Corporation") (TSX:SES) today
announced financial and operational results for the three and nine
months ended September 30, 2013. The following should be read in
conjunction with the management's discussion and analysis ("MD&A"),
the condensed consolidated interim financial statements and notes of
Secure which are available on SEDAR at www.sedar.com. 


 
                                                                            
THIRD QUARTER AND YEAR TO DATE 2013 FINANCIAL AND OPERATIONAL HIGHLIGHTS    
                                                                            
                 Three Months Ended Sept 30,    Nine Months Ended Sept 30,  
($000's except                                                              
 share and per                              %                              %
 share data)          2013        2012 change        2013        2012 change
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Revenue                                                                     
 (excludes oil                                                              
 purchase and                                                               
 resale)           153,868      99,503     55     386,520     283,836     36
Oil purchase                                                                
 and resale        289,892     149,705     94     718,071     466,747     54
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Total revenue      443,760     249,208     78   1,104,591     750,583     47
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EBITDA(1)           41,542      24,915     67      95,404      71,264     34
 Per share                                                                  
  ($), basic          0.38        0.25     52        0.89        0.76     17
 Per share                                                                  
  ($), diluted        0.37        0.25     49        0.87        0.74     18
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Net earnings        12,036       6,354     89      27,418      22,418     22
 Per share                                                                  
  ($), basic          0.11        0.06     83        0.26        0.24      8
 Per share                                                                  
  ($), diluted        0.11        0.06     83        0.25        0.23      9
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Funds from                                                                  
 operations(1)      33,069      21,879     51      85,672      63,011     36
 Per share                                                                  
  ($), basic          0.30        0.22     36        0.80        0.67     19
 Per share                                                                  
  ($), diluted        0.30        0.22     36        0.78        0.65     20
Cash dividends                                                              
 per common                                                                 
 share                0.04           -      -        0.06           -      -
Capital                                                                     
 Expenditures       75,656      50,245     51     160,601     133,983     20
Total assets       962,836     699,982     38     962,836     699,892     38
Long term                                                                   
 borrowings        210,489      89,187    136     210,489      89,187    136
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Total long                                                                  
 term                                                                       
 liabilities       420,082     234,600     79     420,082     234,600     79
Common Shares                                                               
 - end of                                                                   
 period        108,909,620 104,492,885      4 108,909,620 104,492,885      4
Weighted                                                                    
 average                                                                    
 common shares                                                              
 basic         108,648,873  98,724,604     10 106,750,533  93,655,304     14
 diluted       111,500,617 101,492,349     10 109,537,459  96,645,131     13
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(1)Refer to "Non GAAP measures and operational definitions"                 

 
Revenue (excluding oil purchase and resale) for the three and nine
months ended September 30, 2013 increased 55% and 36% respectively
while earnings before interest, taxes, depreciation and amortization
("EBITDA") improved 67% and 34% respectively compared to the same
periods in 2012. Secure continued to experience strong demand for its
processing, recovery and disposal services, strong demand for its
drilling services with an increase in revenue per operating day of
29% in the third quarter, and strong demand for services offered in
the new on site division. 
Secure completed the acquisition of Target Rentals Ltd. ("Target") on
July 2, 2013. The acquisition continues to expand the value chain of
services the Corporation offers its customers. In addition to the
acquisition of Target, growth and expansion capital expenditures
incurred during the three and nine months ended September 30, 2013
totaled $52.6 million and $130.3 million respectively. The
Corporation continues to seize market opportunities by executing
organic growth initiatives and strategic acquisitions to complement
its current service offerings. 
REVENUE INCREASES 


 
    --  Revenue (excluding oil purchase and resale) of $153.9 million and
        $386.5 million for the three and nine months ended September 30,
        2013 improved 55% and 36% respectively compared to the same periods
        in 2012. 
        --  PRD division revenue (excluding oil purchase/resale) for the
            three months and nine months ended September 30, 2013 increased
            43% and 41% respectively compared to the same periods in 2012.
            Third quarter revenue increased due to increased demand and new
            facility additions and expansions subsequent to the third
            quarter of 2012. This includes the opening of the new Kaybob SWD
            in Alberta and Stanley SWD in North Dakota in the third quarter
            of 2013. Crude oil marketing revenue increased 46% and 57% for
            the three and nine months ended September 30, 2013 respectively
            compared to the same periods in 2012 as a result of increased
            throughput at the Corporation's pipeline connected FST's, the
            Corporation's ability to capitalize on market spr
ead
            differential opportunities and the Judy Creek FST becoming
            pipeline connected in the third quarter. 
        --  DS division revenue of $87.6 million and $221.9 million for the
            three and nine months ended September 30, 2013 increased 46% and
            25% respectively compared to the same periods in 2012. Third
            quarter revenue increased due to increased demand, activity and
            the acquisition of Target on July 2, 2013. DS Canadian revenue
            per operating day increased by 29% from the third quarter 2013
            compared to third quarter of 2012. Overall higher field activity
            was reported by the Canadian Association of Drilling Contractors
            ("CAODC") as average rig count increased 4% quarter over
            quarter. In addition, meters drilled in Canada increased by 9%
            in the third quarter of 2013 compared to the third quarter of
            2012. 
        --  OS division revenue for the three and nine months ended
            September 30, 2013 increased by 196% and 130% respectively
            compared to the same periods in 2012. Third quarter revenue
            increased due to the acquisition of Frontline Integrated
            Services Ltd ("Frontline") in the second quarter of 2013, the
            backlog of projects following a wet spring, and environmental
            services rental of CleanSite bins increased over the prior year
            quarter. 
    --  Oil purchase and resale revenue in the PRD division increased to
        $289.9 million and $718.1 million for the three and nine months
        ended September 30, 2013 compared to the same periods in 2012. The
        increase resulted from increased throughput and crude oil marketing
        activity at existing facilities and the Judy Creek FST becoming
        pipeline connected in the third quarter of 2013. 
--  EBITDA OF $41.5 MILLION IN THE THIRD QUARTER AND $95.4 MILLION YEAR-TO-
    DATE 
    --  For the three months ended September 30, 2013 EBITDA increased 67%
        as compared to the same period in 2012. EBITDA increased in all
        three divisions through the addition of new facilities and higher
        demand in the PRD division, increase in market share and revenue per
        operating day in the DS division combined with the acquisition of
        Target, and the increase in project work and the acquisition of
        Frontline in the OS division as detailed above in the revenue
        highlights. 
 
--  DIVERSIFICATION INTO NEW MARKETS AND NEW AREAS 
    --  Organic expansion and growth capital totaled $130.3 million for the
        nine months ended September 30, 2013 and includes 2012 carryover
        capital related to the Judy Creek and Rocky FST's. Major
        expenditures for the nine months ended September 30, 2013 included: 
        --  2012 carry over capital of Rocky and Judy Creek FST's, of which
            completion and commissioning of the Judy Creek and Rocky FST's
            occurred during the second quarter of 2013; 
        --  Growth capital consisting of seven new PRD facilities with
            construction commencing or completed in 2013: 
            --  Three FST's - Edson, Kindersley and Keene (North Dakota) of
                which all three are expected to be opened at the start of
                the second quarter of 2014; 
            --  Two SWD's - Kaybob and Stanley (North Dakota) were completed
                and commissioned during the third quarter of 2013; 
            --  Two landfills - Saddle Hills and 13 Mile (North Dakota) both
                were under construction in the third quarter. The landfills
                are expected to be open during the fourth quarter; 
        --  Expansion capital consisting of: 
            --  Landfill cells at Fox Creek, South Grande Prairie, Pembina
                and Willesden Green, all of which were under construction in
                the quarter. The additional cell capacity will be available
                for the fourth quarter and subsequent years; 
            --  Second treaters at Fox Creek and Drayton valley were
                completed and commissioned and were fully operational at the
                end of the third quarter; 
            --  Additional disposal wells at both 13 Mile and Obed were
                completed and commissioned, both of which will be
                operational during the fourth quarter; 
        --  Various long lead purchases for 2013 and 2014 PRD capital
            projects and rental equipment for the DS division. Both the PRD
            and DS divisions continue to heavily invest in business
            development, including research and development activities,
            pilot projects for water and oil recycling, and front end
            development for 2014 projects. 
--  SOLID BALANCE SHEET 
    --  Secure's debt to EBITDA ratio was 1.88 as of September 30, 2013;
        well under the Corporation's credit facility covenant of 3.00. 
--  BRAZEAU SWD UPDATE 
    --  During the third quarter, the Corporation began dismantling the
        damaged property within the facility. Brazeau is expected to be
        operational by the end of the year. 
--  SUBSEQUENT EVENT 
    --  Subsequent to September 30, 2013, the Corporation entered into an
        amended and extended $400 million revolving credit facility (the
        "new credit facility"). The previous revolving credit facility was
        increased from $300 million to $400 million and includes an
        accordion feature which if exercised, would increase the credit
        facility by $50 million. The credit facility consists of a $390
        million extendible revolving term credit facility and a $10 million
        revolving operating facility. The new credit facility was extended
        with an interest rate reduction of 25 basis points. 
 
                                                                            
                                                                            
PRD DIVISION OPERATING HIGHLIGHTS                                           
                                                                            
                             Three Months Ended        Nine Months Ended    
                                  Sept 30,                  Sept 30,        
                                                 %                         %
($000's)                     2013     2012  Change     2013     2012  Change
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Revenue                                                                     
 Processing, recovery and                                                   
  disposal services (a)    47,439   33,083      43  127,756   90,564      41
 Oil purchase and resale                                                    
  service                 289,892  149,705      94  718,072  466,746      54
                          --------------------------------------------------
 Total PRD division                                                         
  revenue                 337,331  182,788      85  845,828  557,310      52
                          --------------------------------------
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Operating Expenses                                                          
 Processing, recovery and                                                   
  disposal services (b)    17,214   12,827      34   47,527   35,255      35
 Oil purchase and resale                                                    
  service                 289,892  149,705      94  718,072  466,746      54
 Depreciation, depletion,                                                   
  and amortization         12,003    7,330      64   30,858   20,146      53
                          --------------------------------------------------
 Total PRD division                                                         
  operating expenses      319,109  169,862      88  796,457  522,147      53
General and                                                                 
 administrative             6,560    3,498      88   17,265    8,433     105
                          --------------------------------------------------
Total PRD division                                                          
 expenses                 325,669  173,360      88  813,722  530,580      53
                                                                            
Operating Margin(1) (a-b)  30,225   20,256      49   80,229   55,309      45
Operating Margin as a %                                                     
 of revenue (a)                64%      61%      5       63%      61%      3
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(1) Refer to "Non GAAP measures and operational definitions"                

 
Highlights for the PRD division included: 


 
--  Processing: For the three and nine months ended September 30, 2013,
    processing volumes increased 20% and 16% from the comparative periods in
    2012. Part of the significant increase relates to the addition of the
    following new facilities and services added after the third quarter of
    2012 ("new facilities and services"): completion of the Crosby SWD in
    North Dakota in December 2012; Fox Creek Landfill in December 2012;
    Edson temporary water injection facility in January 2013; Rocky and Judy
    Creek FST's in May 2013; Kaybob SWD in August 2013; and the Stanley SWD
    in North Dakota in September 2013. Also contributing to the increase in
    revenue was an increase in overall demand for the PRD division's
    services. 
    
--  Recovery: Revenue from recovery includes revenue from the sale of oil
    recovered through waste processing, crude oil handling, marketing and
    terminalling. Revenue from recovery for the three and nine months ended
    September 30, 2013 increased by 61% and 47% from the comparative periods
    in 2012. A significant portion of the increase in recovery revenue for
    the three and nine months ended September 30, 2013 is a result of the
    Corporation's ability to capitalize on crude oil marketing opportunities
    at its FST's, higher throughput and an increase in the price of crude
    oil of 15% from the third quarter of 2012 to the third quarter of 2013.
    Crude oil marketing revenue increased by 46% and 57% for the three and
    nine months ended September 30, 2013, from the comparative periods of
    2012. Increased oil throughput at the Corporation's pipeline connected
    FST's, in conjunction with the Corporation's ability to capitalize on
    market spread differential opportunities (including maximizing crude oil
    marketing opportunities available by shipping crude oil via rail), led
    to the significant increases in revenue from this service line as
    compared to the same periods of 2012. In addition, the Corporation's
    Judy FST was pipeline connected and fully operational in the third
    quarter of 2013. 
    
--  Disposal: Secure's disposal volumes increased by 20% and 41% for the
    three and nine months ended September 30, 2013 from the comparative
    periods of 2012. As described above, increased demand for the PRD
    division's new facilities and services are the primary reasons for the
    increase. 
    
--  Operating margin as a percentage of revenue for the three and nine
    months ended September 30, 2013 was 64% and 63% compared to 61% and 61%
    for the comparative period of 2012. The 3% increase to operating margin
    for the three months ended September 30, 2013 and the 2% increase to
    operating margin for the nine months ended September 30, 2013 is a
    result of improvements in operating efficiencies at the facilities,
    increases in recovery including crude oil marketing activities at the
    Corporation's pipeline connected FST's, and from volumes managed by rail
    at the Silverdale FST. 
    
--  General and administrative ("G&A") expenses increased for the three and
    nine months ended September 30, 2013 to $6.6 million and $17.3 million
    from $3.5 million and $8.4 million in the comparative periods of 2012.
    Major drivers of the increase on quarter over quarter and year to date
    comparatives is a 52% and 60% increase in wages & salaries to support
    the opening of new facilities and growth at existing facilities both in
    Canada and the US, a 126% and 174% increase in building and lease costs
    to accommodate growth of staff in Canada, and the opening of the Denver,
    Colorado office in the second quarter of 2012, and a 51% and 61%
    increase in information technology expenses related to information
    technology systems and licensing of software to support the growth of
    the division and consolidate software systems used in the head office
    and the field to gain operational efficiencies. The increase in G&A is
    reflective of management's intention to prepare for the growth of the
    new and expanding facilities as well as the growth in the US PRD
    operations. 
    
 
                                                                            
DS DIVISION OPERATING HIGHLIGHTS                                            
                                                                            
                              Three Months Ended       Nine Months Ended    
                                   Sept 30,                 Sept 30,        
                                                 %                         %
($000's)                      2013    2012  Change     2013     2012  Change
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Revenue                                                                     
 Drilling services (a)      87,622  60,060      46  221,873  177,240      25
                                                                            
                                                                            
Operating expenses                                                          
 Drilling services (b)      63,729  46,305      38  167,894  136,043      23
 Depreciation and                                                           
  amortization               5,184   3,683      41   12,658    9,340      36
                            ------------------------------------------------
 Total DS division                                                          
  operating expenses        68,913  49,988      38  180,552  145,383      24
General and administrative   6,609   5,892      12   17,571   16,844       4
                            ------------------------------------------------
Total DS division expenses  75,522  55,880      35  198,123  162,227      22
                                                                            
Operating Margin(1) (a-b)   23,893  13,755      74   53,978   41,197      31
Operating Margin %(1)           27%
     23%     17       24%      23%      3
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(1) Refer to "Non GAAP measures and operational definitions"                

 
Highlights for the DS division included: 


 
--  Revenue from the DS Division for the three and nine months ended
    September 30, 2013 increased to $87.6 million and $221.9 million from
    $60.1 million and $177.2 million in the comparative periods of 2012. The
    significant increase in revenue for the three months ended September 30,
    2013 is the result of a combined 40% increase in drilling fluids service
    line revenue and a 98% increase in revenue for the equipment rentals
    service line from the comparative period in 2012. Major drivers for the
    drilling fluids service line revenue increases in the third quarter are
    due to increased market share, an increase in meters drilled, and an
    increase in revenue per operating day. The increase in the equipment
    rentals service line is a result of an 11% increase in equipment
    utilization over the comparative period of 2012, an increase in rental
    equipment market share as the division increased its rental fleet size,
    and the addition of Target on July 2, 2013 which contributed to an
    increase of 52% in revenue for the quarter. 
    
--  Drilling fluids revenue per operating day for the three and nine months
    ended September 30, 2013 increased to $6,807 and $6,278 from $5,267 and
    $5,362 from the comparative periods of 2012. The increase in revenue per
    day for both the quarter and year to date can be attributed to an
    increase in meters drilled for the Corporation and the industry overall
    which led to higher product usages, higher probability of lost
    circulation events, and a higher usage of specialty chemicals. In
    addition, the Corporation realized a 21% and 31% increase in the
    proportion of SAGD wells relative to the 2012 comparable periods. SAGD
    wells are more complex and require more costly drilling fluids which
    contribute to the increase in revenue per operating day. 
    
--  WCSB market share increased by 4% for the three months ended September
    30, 2013 to 34% from 30% and 33% from 30% for the nine months ended
    September 30, 2013, from the comparative periods of 2012. The CAODC
    average monthly rig count for Western Canada provides the basis for
    market share calculations. Operating rig days for the three and nine
    months ended September 30, 2013 were 10,595 and 29,385 compared to 9,113
    and 27,586 for the 2012 comparative periods. Market share has continued
    to increase as a result of the addition of the Drayton Valley blending
    plant, increase in SAGD wells drilled, and the successful integration of
    the XL and New West Drilling Fluids Inc. ("New West") acquisitions. 
    
--  For the three months ended September 30, 2013, operating margins
    increased 4% to 27% from 23% for the 2012 comparative period. Operating
    margins for the drilling fluids service line increased 3% as the DS
    division saw an increase in the use of specialized products associated
    with the increase in meters drilled. Depending on the wells drilled in
    the quarter, the product mix and operating margin may fluctuate in the
    above range. The remaining 1% increase relates to the addition of Target
    rentals as rental items have higher operating margins, which also
    contributed to increasing the operating margin for the third quarter. 
    
--  As a percentage of revenue for both the three and nine months ended
    September 30, 2013, G&A expenses were 8% compared to 10% for the
    comparable periods of 2012. G&A increased by $0.7 million for the three
    and nine months ended September 30, 2013 compared to the same periods in
    2012 as a result of supporting the US operations as well as the newly
    acquired Target acquisition. 
    
 
                                                                            
                                                                            
OS DIVISION OPERATING HIGHLIGHTS                                            
                                                                            
                              Three Months Ended       Nine Months Ended    
                                   Sept 30,                 Sept 30,        
                                                 %                        % 
($000's)                      2013    2012  Change     2013    2012  Change 
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Revenue                                                                     
 Onsite services (a)        18,807   6,360     196   36,890  16,033     130 
                                                                            
                                                                            
Operating expenses                                                          
 Onsite services (b)        13,739   4,339     217   29,675  10,415     185 
 Depreciation and                                                           
  amortization               1,241     104   1,093    2,595     230   1,028 
                            ------------------------------------------------
 Total OS division                                                          
  operating expenses        14,980   4,443     237   32,270  10,645     203 
General and administrative   1,647     938      76    4,300   2,825      52 
                            ------------------------------------------------
Total OS division expenses  16,627   5,381     209   36,570  13,470     171 
                                                                            
Operating Margin(1) (a-b)    5,068   2,021     151    7,215   5,619      28 
Operating Margin %(1)           27%     32%    (15)      20%     35%    (43)
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(1) Refer to "Non GAAP measures and operational definitions"                

 
Highlights for the OS division included: 


 
--  Revenue for the three and nine months ended September 30, 2013 increased
    to $18.8 million and $36.9 million from $6.4 million and $16.0 million
    for the comparative periods of 2012. Frontline was acquired on April 1,
    2013 and significantly contributed to the increase in revenues for the
    three and nine months ended September 30, 2013. Frontline realized a
    substantial increase in utilization of its equipment fleet in the third
    quarter as projects ramped up quickly that were delayed due to wet
    weather in the second quarter. 
    
--  Environmental services revenue for the three and nine months ended
    September 30, 2013 increased 21% and 46% respectively over 2012
    comparative periods, due to an increase in the number of environmental
    projects completed and the start-up of the CleanSite business as this
    service line began operations in the fourth quarter of 2012. 
    
--  Operating margin for the third quarter of 2013 declined to 27% as a
    result of combining the Frontline services in the second quarter of 2013
    with that of the environmental services group. The operating margin for
    the OS division is expected to 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. 
    
--  G&A expenses for the three and nine months ended September 30, 2013
    increased to $1.6 million and $4.3 million from $0.9 million and $2.8
    million for the comparative periods of 2012. G&A expenses increased d
ue
    to the Frontline acquisition and increases in demand for Frontline
    services over the prior quarter, and increases in environmental services
    through the startup of the "CleanSite" business in the fourth quarter of
    2012. 

 
OUTLOOK 
Oil and gas industry pricing fundamentals during the third quarter
did not see significant changes from the second quarter however,
prices have rebounded significantly since the third quarter of 2012.
Commodity prices have increased, heavy oil differentials between
world and North American pricing have narrowed and oil transportation
bottlenecks have been partially relieved. Expectations are that oil
and gas producer capital spending will continue to slowly increase
over the next few quarters due to expanded capital budgets, which in
turn will improve activity for oil and gas service providers. In
addition, several projects that were delayed by the wet spring have
started late in the third quarter and will be completed before the
year end. Rig count and related drilling services equipment
utilization into the last quarter of the year is anticipated to
improve, with expectations that prices could weaken in the fourth
quarter through the peak drilling season into 2014. Despite the less
than optimal field conditions in the second quarter and a slower
start to the third quarter due to continued unfavourable weather,
meters drilled in Canada increased by 9% in the third quarter of 2013
compared to the third quarter of 2012. The number of WCSB horizontal
wells licensed in the nine months ended September 30, 2013 increased
to 81.8% of the total wells licensed in 2013; this is an 11
percentage point increase over comparable period of 2012. The
increase in the number of meters drilled and continued emphasis on
horizontal drilling are positive indicators for the Corporation as it
is anticipated these factors create demand for the Corporation's
products and services. Secure is well positioned to take advantage of
the expected industry upswing through its expanded geographic and
service offerings. 
The acquisition of Frontline in the second quarter and Target in the
third quarter brings new growth platforms that complement the
Corporation's existing PRD and DS divisions. The management teams of
Frontline and Target are experienced with proven capabilities to
manage growth. The financial strength of Secure will provide the
capital necessary to finance the growth initiatives of both of these
new service lines. The Corporation is excited to increase Secure's
environmental expertise to expand the value chain of services
provided. 
Total capital expenditures for the nine months ended September 30,
2013 of $160.6 million are reflective of the continued execution of
the Corporation's strategy. Capital expenditures on new facilities
such as the Kindersley FST, the conversion of the Edson SWD to an
FST, Saddle Hills landfill and construction of the Corporation's
first landfill in the US are expected to enhance financial and
operational performance once commissioned. The list of organic
opportunities contains several other projects that reflect the
ability of Secure to take advantage of market potential that exists
today. The Corporation increased the 2013 capital expenditure budget
in the second quarter from the previously announced total of $155.0
million to $195.0 to take advantage of Secure's opportunities. The
added capital will be deployed in Canada and the US primarily for new
growth projects and long lead items for 2014 projects. The
Corporation is well positioned to fund its expanded 2013 capital
program with its recently expanded debt capacity from its credit
facilities and increasing cash flow from operations. 
Managing growth in a prudent manner ensures the Corporation's strong
balance sheet is maintained. Secure has a focused strategy of helping
the Corporation's customers with new facilities and services in both
under-serviced and capacity constrained markets complemented with
strategic acquisitions. A solid balance sheet provides the leverage
and flexibility to execute this strategy. With now over 1,000
employees, the Corporation strives to keep its agile and disciplined
entrepreneurial culture to ensure that Secure's abundant
opportunities are adequately financed and executed by the right
people. 
FINANCIAL STATEMENTS AND MD&A 
The condensed consolidated financial statements and MD&A of Secure
for the three and nine months ended September 30, 2013 are available
immediately on Secure's website at www.secure-energy.ca. The
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 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
("NGLs") and natural gas; the increase in quarter over quarter 2013
operating days; demand for the Corporation's services; expansion
strategy; the amounts of the PRD, DS and OS divisions' expanded 2013
capital budgets and the intended use thereof; debt service; capital
expenditures; completion of facilities including the Edson,
Kindersley and Keene FSTs and the Saddle Hills and 13 Mile landfills
as well as completion of repairs to the Brazeau FST and additional
cells at the Fox Creek, South Grande Prairie, Pembina, and Willesden
Green landfills; the impact of new facilities on the Corporation's
financial and operational performance; future capital needs; access
to capital; acquisition strategy; the Corporation's capital spending
on the Kindersley, Saskatchewan FST; capital spending on the Kaybob,
Alberta SWD; expansion of the new Edson, Alberta SWD to a FST; and
capital spending on the Keene FST and Stanley SWD in North Dakota;
and oil purchase and resale revenue. 
Forward-looking statements concerning expected operating and economic
conditions are based upon prior year results as well as the
assumption that increases in market activity and growth will be
consistent with industry activity in Canada, 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 are based upon the assumption 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 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 substan
tially 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 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 Corporation's annual
information form ("AIF") for the year ended December 31, 2012.
Although forward-looking statements contained in this Press Release
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 Press Release 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 


 
1.  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 Non- 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 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