STEP Energy Services — Investor Presentation (March 2021)
12 slides from STEP Energy Services's investor presentation, Mar 21, 2021
Slide 1: Investor Presentation March 2021
INVESTOR PRESENTATION March | 2021
Slide 2: Disclaimer
DISCLAIMER The information contained in this presentation does not purport to be all-inclusive or to contain all information that equipment; the Company’s ability to obtain qualified staff and equipment in a timely and cost efficient manner; levels prospective investors may require. Readers are enco
Slide 3: Strategic Priorities
STRATEGIC PRIORITIES Generate free cash flow to retire Right-size debt operations to Relentless focus deliver optimal on efficiencies utilization and and cost control cash flow Continue to deliver Invest in remarkable client technology to value (ECE) Build on our drive incremental engaged, high- mar
Slide 4: Commitment to ESG
COMMITMENT TO ESG We are focused on environmental, social and governance activities and have been since we started the company. • Dual-fuel fracturing fleets in • Our work environment inspires • Since inception, STEP • Board of Directors Canada (natural gas our professionals to bring their professio
Slide 5: North American Operations
NORTH AMERICAN OPERATIONS X% Year-To-Date 2020 Revenue1 Canada Coil Tubing Horsepower AVAILABLE 16 units 282,5002 Fracturing ACTIVE – Q3-20 5 units 3 spreads Coiled Tubing 44% $297mm 56% 31% Montney $297mm Deep Basin Duvernay Canada Viking 69% Calgary U.S. Bakken U.S. Coil Tubing Horsepower Powder R
Slide 6: Execution on Debt Reduction
EXECUTION ON DEBT REDUCTION Every part of our business has been fined-tuned to ensure we maximize free cash flow: We reacted quickly to the pandemic: All business decisions are focused on generating free • CAPEX spending reduced from $47.1mm to cash flow: $17.5mm • Capital investments supported by r
Slide 7: Execution on Debt Reduction
EXECUTION ON DEBT REDUCTION Significant debt reduction over a challenging period: • Peak debt of $310mm in October 2018 has been reduced by $101mm or a 33% reduction • Current balance of $209mm versus January 1, 2020 balance of $232mm 7
Slide 8: Bank Syndicate
BANK SYNDICATE Summary: Total Facilities CAD$260mm Maturity June 25, 2022 Financial Covenants Funded Debt to EBITDA Ratio – Waived for Covenant Relief Period (Q3/20 – Q2/21) and replaced with: • Funded Debt to Tangible Net Worth Ratio Interest Coverage Ratio Maximum Capex Covenant • Agreed to with s
Slide 9: Performance
PERFORMANCE CONSOLIDATED CANADIAN OPERATIONS Third Quarter and Nine Months of 2020 Results Third Quarter and Nine Months of 2020 Results ($ in CAD millions except percentages) ($ in CAD millions except percentages) Revenue Q3/20 9M/20 Revenue Q3/20 9M/20 STEP Energy Services $ 62.4 $ 297.4 STEP Ener
Slide 10: Differentiation Through Technology
DIFFERENTIATION THROUGH TECHNOLOGY The value we bring to our clients and the subsequent benefit to our margins is a direct result of our investment in technology: BUSINESS SYSTEMS OPERATIONS INNOVATION • Ongoing focus on internal • Idle Reduction • Single Shot IOR™ - post- systems to streamline • Du
Slide 11: Outlook
OUTLOOK From the gut wrenching lows in Q2-20, forecasts suggest industry improvement in 2021: • While we expect that the current competitive market conditions will persist, we are encouraged by the increased requests for proposals and bids for 2021 work in both Canada and the U.S. • A return to more
Slide 12: pi-P
pi-P energy services
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