STEP Energy Services Ltd. Corporate Update
CALGARY, Alberta, April 02, 2020 (GLOBE NEWSWIRE) — STEP Energy Services Ltd. (the “Company” or “STEP”) is providing an update on actions taken in response to the COVID-19 pandemic (“COVID-19”), and current market conditions. The following press release should be read in conjunction with the management’s discussion and analysis (“MD&A”) and audited consolidated financial statements as at and for the year ended December 31, 2019. The above documents are available on STEP’s website at www.stepenergyservices.com or on SEDAR at www.sedar.com.
STEP is responding to the rapidly deteriorating business conditions brought about by the combined impact of COVID-19 and the oil price war among certain OPEC+ members. These global events have caused a material decline in commodity prices globally and are expected to result in reductions in planned spending by our clients.COVID-19 Response:STEP places the health and safety of our employees and the clients and communities we serve among our highest priorities. As a result, in response to COVID-19, we have implemented our Emergency Response Plan which included:enhancing communication with our employees and our clients;implementing enhanced personal hygiene, increase social distancing and self-quarantine practices;banning non-essential travel;further measures to ensure all employees are fit-for-duty; andimplementing remote working plans.STEP will continue to monitor the situation and ensure we are adopting guidance provided by government and health authorities.Operations Update:The combined impact of COVID-19 and the OPEC+ price war is expected to impact client spending and demand for our services. In anticipation of these factors, STEP has taken the following measures:reduced 2020 planned capital program by 50% to $ 23.5 million;reduced general and administrative and operations overhead by approximately 50% through a combination of headcount reductions and salary rollback for remaining staff of between 5 and 10%;reduced manned equipment by a similar percentage. STEP will continue to monitor client programs and will make further adjustments as more information becomes available;reduced Board compensation by 20%;eliminated all non-essential travel, entertaining and other discretionary spending.The business environment continues to remain fluid as a result of these major disruptions. STEP will continue to monitor both the expected impact and duration of these factors on our business and will continue to adjust our business accordingly. FORWARD‐LOOKING INFORMATION & STATEMENTS
Certain statements contained in this release constitute “forward-looking statements” or “forward-looking information” within the meaning of applicable securities laws (collectively, “forward-looking statements”). These statements relate to the expectations of management about future events, results of operations and STEP’s future performance (both operational and financial) and business prospects. All statements other than statements of historical fact are forward-looking statements. The use of any of the words “anticipate”, “plan”, “contemplate”, “continue”, “estimate”, “expect”, “intend”, “propose”, “might”, “may”, “will”, “shall”, “project”, “should”, “could”, “would”, “believe”, “predict”, “forecast”, “pursue”, “potential”, “objective” and “capable” and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. While STEP believes the expectations reflected in the forward-looking statements included in this release are reasonable, such statements are not guarantees of future performance or outcomes and may prove to be incorrect and should not be unduly relied upon.