SECURE Announces Consolidation Under One Brand Name and Provides Second Quarter
CALGARY, ALBERTA -- (Marketwired) -- 06/12/14 -- SECURE Energy
Services Inc. ("SECURE" or the "Corporation") (TSX: SES) today
announced that it has consolidated all of its operating entities and
services under the SECURE Energy Services brand name and provided an
update in respect of second quarter operations.
BRAND NAME CONSOLIDATION
Acquisitions have always been a part of the Corporation's growth
strategy, with the following brands joining the family over the past
seven years: Marquis Alliance, XL Fluid Systems, Imperial Drilling
Fluids, Target Rentals, Frontline Integrated Services, Infinity
Oilfield Services, NextGeneration Solutions, Dynomite Environmental
Contracting and Dril-X Fluids. The Corporation has also acquired
assets from Heemskirk Canada, New West Drilling Fluids and Quadrise
Consolidated under the SECURE brand name the Corporation now has over
1,300 employees, over $2.5 billion in enterprise value and carries on
operations in 4 Canadian provinces and 2 U.S. states. Its operations
are grouped under three divisions: Processing, Recovery, & Disposal
("PRD"), Drilling Services ("DS") and OnSite Services ("OS").
With all of its services under one brand, SECURE is better positioned
to support its clients throughout the entire lifecycle of a well -
from drilling and completions to production, final abandonment and
reclamation. "Many of our clients are increasingly seeing the value
of integrated and innovative services", said Rene Amirault, President
and CEO at SECURE. "As their services partner, SECURE can deliver
total cost and operational efficiencies along with clear
accountability for quality, safety, and environmental protection."
Much of the effort required to implement the brand consolidation has
been completed, with full implementation expected by the end of the
SECOND QUARTER OPERATIONAL UPDATE
The first two months of operations for the second quarter of 2014
have delivered exceptional results with higher than anticipated
demand for the Corporation's services in all three divisions and
increased operating days compared to the same period in 2013. Due to
the late onset of spring break-up and the prolonged winter drilling
season, activity levels were above expectations during April and May
that have typically been subject to a significant slowdown in the
industry as a whole. As a result, these first two months of the
second quarter of 2014 are above management's expectations thus far.
SECURE also completed and commissioned both the Edson, Alberta and
Keene, North Dakota full service terminals in April of 2014 and
continued to execute on acquisition strategies both in the DS and OS
divisions that have been accretive to overall results.
As a result of the factors above, SECURE anticipates consolidated net
earnings excluding depreciation, depletion, amortization and
accretion, share-based payments expense, interest, and taxes
("EBITDA") for the first two months of the second quarter of 2014 to
be between $19 million and $24 million. These exceptional results
would be considered significantly above management's expectations as
the impact of spring break-up in any given year is difficult to
predict. In addition, underlying market fundamentals, spending
expectations by producers, and future growth prospects are all
trending above Q2 2013 levels, and as a result management anticipates
strong results for the month of June and for the second quarter in
total. This estimate is subject to completion of the second quarter
interim financial report and review by SECURE's auditors. SECURE will
release the second quarter interim report on August 12, 2014.
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: anticipated EBITDA for the first two months of the
second quarter ended June 30, 2014; performance expectations for the
month of June and the second quarter ended June 30, 2014, in total;
general market conditions; activity levels in the oil and gas sector
including market fundamentals and drilling levels; demand for the
Corporation's services; expansion strategy; completion of facilities;
the impact of new facilities on the Corporation's financial and
operational performance; and acquisition strategy.
Forward-looking statements concerning expected operating and economic
conditions are based upon estimated results as well as the assumption
that increases in market activity and growth will be consistent with
industry activity in Canada, and the United States, and growth levels
in similar phases of previous economic cycles.
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, 2013.
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
The Corporation uses accounting principles that are generally
accepted in Canada (the issuer's "GAAP"), which includes,
International Financial Reporting Standards ("IFRS"). In addition,
this press release refers to the Non-GAAP financial measure EBITDA.
EBITDA is not a recognized measure under IFRS and does not have any
standardized meaning prescribed by IFRS. EBITDA as used by the
Corporation may not be comparable to similar measures presented by
other reporting issuers. See the management's discussion and analysis
available at www.sedar.com for a reconciliation of historical EBITDA
to the equivalent IFRS measure. Management believes that in addition
to net earnings, EBITDA is a useful supplemental measure as it
provides an indication of the results generated by the Corporation's
principal business activities prior to consideration of how those
activities are financed or how the results are taxed. EBITDA should
not be considered in isolation or as a substitute for measures of
performance prepared in accordance with GAAP.
ABOUT SECURE ENERGY SERVICES INC.
SECURE is a TSX publicly traded energy services company that provides
safe and environmentally responsible fluids and solids solutions to
the oil and gas industry. The Corporation owns and operates midstream
infrastructure and provides environmental services and innovative
products to upstream oil and natural gas companies operating in the
Western Canadian Sedimentary Basin ("WCSB") and the Rocky Mountain
Region in the United States.
The Corporation operates three divisions:
PRD: The PRD division owns and operates midstream infrastructure that
provides processing, storing, shipping and marketing of crude oil,
oilfield waste disposal and recycling. Specifically these services
are clean oil terminalling, custom treating of crude oil, crude oil
marketing, produced and waste water disposal, oilfield waste
processing, landfill disposal, and oil purchase/resale service.
SECURE currently operates a network of facilities throughout western
Canada and in North Dakota, providing these services at its full
service terminals, landfills and stand-alone water disposal
DS: The DS division provides equipment and chemicals for building,
maintaining, processing and recycling of drilling and completion
fluids. The drilling fluids service line comprises the majority of
the revenue for the division which includes the design and
implementation of drilling fluid systems for producers drilling for
oil, bitumen and natural gas. The DS division focuses on providing
products and systems that are designed for more complex wells, such
as medium to deep wells, horizontal wells and horizontal wells
drilled into the oil sands.
OS: The operations of the OS division include integrated fluids
management through frac pond rentals; waste container services;
environmental services which include pre-drilling assessment
planning, drilling waste management, remediation and reclamation of
former wellsites, facilities, commercial, and industrial properties,
and laboratory services; pipeline integrity (inspection, excavation,
repair, replacement and rehabilitation); demolition, and
decommissioning. These services are offered throughout the WCSB.
SECURE Energy Services Inc.
Chairman, President and Chief Executive Officer
(403) 984-6101 (FAX)
SECURE Energy Services Inc.
Chief Financial Officer
(403) 984-6101 (FAX)
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