Company Announcements

CALGARY, Alberta--(BUSINESS WIRE)--May 14, 2025-- STEP Energy Services Ltd. (the “Company” or “STEP”) (TSX: STEP) is pleased to announce its financial and operating results for the three months ended March 31, 2025. The following Press Release should be read in conjunction with the management’s discussion and analysis (“MD&A”) and the unaudited condensed consolidated financial statements and notes thereto as at March 31, 2025 (the “Financial Statements”). Readers should also refer to the “Forward-looking information & statements” legal advisory and the section regarding “Non-IFRS Measures and Ratios” at the end of this Press Release. All financial amounts and measures are expressed in Canadian dollars unless otherwise indicated. Additional information about STEP is available on the SEDAR+ website at www.sedarplus.ca, including the Company’s Annual Information Form for the year ended December 31, 2024 dated March 11, 2025 (the “AIF”).

CONSOLIDATED HIGHLIGHTS

FIRST QUARTER 2025 HIGHLIGHTS

• Consolidated revenue for the three months ended March 31, 2025 of $307.7 million, decreased 4% from $320.1 million for the three months ended March 31, 2024 and increased 109% from $147.5 million for the three months ended December 31, 2024.
• Net income for the three months ended March 31, 2025 of $24.2 million ($0.33 per diluted share), compared to $41.4 million ($0.55 per diluted share) in the same period of 2024 and a loss of $44.6 million ($(0.62) per diluted share) for the three months ended December 31, 2024. Included in income for the three months ended March 31, 2025, was share-based compensation expense of $1.3 million, compared to $0.8 million during the three months ended March 31, 2024 and $2.5 million during the three months ended December 31, 2024.
• For the three months ended March 31, 2025, Adjusted EBITDA was $59.0 million or 19% of revenue compared to $71.1 million or 22% of revenue in the comparative period of the prior year.
• Free Cash Flow for the three months ended March 31, 2025 was $32.2 million compared to $53.5 million in Q1 2024 and $(16.6) million in Q4 2024.
• STEP continued to advance its shareholder return strategy in 2025:
  • During Q1 2025, the Company repurchased 617,100 shares at an average price of $4.43 per share under its Normal Course Issuer Bid (“NCIB”). Under the NCIB, the Company was permitted to repurchase and cancel 3.6 million shares, representing 5% of Company’s issued and outstanding shares.
  • Subsequent to quarter end, STEP repurchased 151,300 shares at an average price of $3.90 per share.
• Working Capital as at March 31, 2025 of $103.5 million was $68.1 million higher than the $35.4 million at December 31, 2024. The increase in working capital was partially due to the inclusion of $12.2 million in assets held for sale reclassed from property and equipment in the period, although it is typical to see a build up during the first quarter due to higher sequential activity levels.
• In Q1 2025 STEP pumped 787 thousand tonnes of proppant, a 5% decrease from the same period in 2024. These volumes include the 155 thousand tonnes in Q1 2025 and 271 thousand tonnes in Q1 2024 from the terminated operations of the U.S. fracturing cash generating unit (“CGU”). Excluding the proppant pumped related to the terminated operations, proppant increased 13% quarter over quarter.
• STEP introduced Canada’s first 100% natural gas powered reciprocating engine hydraulic fracturing pump (the “NGx”). The NGx is a collaboration between STEP and a major OEM (Original Equipment Manufacturer) that is trialing a select number of these engines with leading hydraulic fracturing companies across North America. This highly efficient next generation fracturing pump is expected to displace two conventional fracturing pumps and delivers substantial fuel savings through the 100% displacement of diesel with natural gas.
• In Q1 2025, the U.S. fracturing CGU was subject to changes in business conditions that materially impacted its expected future economic performance. As a result, STEP began an orderly process to terminate operations of this CGU following completion of the work scope in Q1. The Company expects to transfer the U.S. fracturing CGU’s recently refurbished Tier 4 dual fuel equipment to Canada and will dispose of the remaining equipment over the next several quarters. As not all the equipment is being disposed of due to some assets being transferred to other CGU’s, the accounting presentation does not meet the test for the IFRS standard for discontinued operations. STEP has noted the financial impact of the terminated operations in the Quarterly Financial Statements and related disclosures, including expanding the definition of Adjusted EBITDA to exclude the Adjusted EBITDA from terminated operations, to provide clarity on the Company’s normal course business activities to users of these documents. See the Non-IFRS Measures and Ratios sectionbelow.

FIRST QUARTER 2025 OVERVIEW

Natural gas prices in the first quarter showed strength, with the average benchmark U.S. Henry Hub and Canadian AECO natural gas prices increasing from the fourth quarter of 2024. Henry Hub averaged $3.87 (USD) per million cubic feet (“Mcf”) in Q1 2025, up from $2.98 (USD) per Mcf in Q4 2024, while AECO-C Daily averaged $2.12 (CAD) per Mcf in Q1, up from $1.49 (CAD) per Mcf in Q4 2024. Natural gas prices typically benefit from the winter heating season, with colder weather driving higher demand. Oil prices traded in a tight range, with the benchmark West Texas Intermediate (“WTI”) crude price averaging $71.42 (USD) per barrel in Q1, up from $70.32 (USD) per barrel in Q4 2024.

Oilfield service levels are primarily reflected in drilling rig counts publicly reported by Baker Hughes and estimates made by Primary Vision for fracturing crews in the U.S. Land based drilling rigs in the U.S. were stable, with an average of 566 rigs in the first quarter, in line with the 569 in the fourth quarter of 2024 but down from the 602 rigs in the first quarter of 2024. Canadian rig counts averaged 194 during the first quarter, in line with the 194 in the fourth quarter but down from the 208 rigs in the first quarter of 2024. U.S. fracturing fleets declined in the first quarter to an average of 202, down from 224 in the fourth quarter of 2024 and down from 255 in the first quarter of 2024.

STEP’s consolidated revenue in the first quarter was $307.7 million, up from $147.5 million in the fourth quarter of 2024 but marginally down from the $320.1 million recorded in the same period from the prior year. The fracturing service line had high utilization through the quarter, with 487 operating days across seven crews, pumping 787 thousand tons of sand. Coiled tubing services were also highly utilized, operating 1,384 days across 22 units.

Adjusted EBITDA of $59.0 million (19% Adjusted EBITDA margin) was up from the $7.6 million (5% Adjusted EBITDA margin) in the fourth quarter of 2024 but down from $71.1 million (22% Adjusted EBITDA margin) in the same period last year. The margin compression against that period is the result of the pricing pressures as well as the cumulative effect of several years of high inflation, high volumes of sand which has lower margins, and deteriorating foreign exchange rates which have all combined to increase the Company’s cost profile.

Net income was $24.2 million in Q1 2025 ($0.33 diluted income per share), sequentially higher than the $44.6 million loss in Q4 2024 ($0.62 diluted loss per share) but lower than the $41.4 million net income in Q1 2024 ($0.55 diluted income per share). Q4 2024 reflected an impairment of $24.0 million taken on certain U.S. fracturing CGU assets. Net income included $1.3 million in share‐based compensation expense (Q4 2024 ‐ $2.5 million, Q1 2024 ‐ $0.8 million expense) and $2.0 million in finance costs (Q4 2024 ‐ $2.4 million, Q1 2024 ‐ $2.9 million).

Free Cash Flow was $32.2 million in Q1 2025 ($0.43 diluted Free Cash Flow per share), sequentially higher than the negative $16.6 million in Q4 2024 and lower than the $53.5 million in Q1 2024. There was a significant build in working capital, increasing from $35.4 million at the end of fourth quarter to $103.5 million at the end of the first quarter. This build is typical for Q1, which follows a slower Q4 that realizes a sizable working capital recovery. The working capital increase was exacerbated this quarter by the inclusion of $12.2 million in assets held for sale reclassified from property and equipment related to the terminated U.S. fracturing operations and by delays in client receipts near the end of the quarter, resulted in Net Debt increasing to $84.7 million from $52.7 million at the close of Q4 2024. The increase in Net Debt and improvement in Adjusted EBITDA resulted in a 12-month trailing Funded Debt to Adjusted Bank EBITDA of 0.70:1.00, well under the limit of 3.00:1 in the Company’s Credit Facilities (as defined in Capital Management – Debt below). The Company was also successful in renewing its Normal Course Issuer Bid in the first quarter and acquired 617,100 shares at a weighted average price of $4.43 per share in the quarter.

During the first quarter of 2025, management committed to a plan to terminate the Company’s U.S. fracturing division. Certain of the assets will be transferred to Canada to support the Canadian fracturing division, while the remaining assets have been classified as held for sale, including inventory and property and equipment. The decision to terminate the U.S. fracturing CGU represented a material change in STEP’s business. Operationally, STEP has been moving personnel and equipment between CGUs and countries and has been consolidating more functions corporately to streamline operations and provide uniform service regardless of region. As a result of the termination of U.S. fracturing STEP initiated an internal leadership reorganization and began presenting internal reporting to the chief operating decisions makers on a consolidated basis. Due to this STEP has determined that the Company’s operations should be aggregated into one reportable operating segment as all remaining operating CGU’s have similar characteristics so they will likely have the same future prospects. This change is effective for the Q1 2025 Financial Statements and Disclosures.

MARKET OUTLOOK

The global economy is in a period of uncertainty as businesses and policy makers react to the U.S. administration’s trade actions and reactions from countries affected by these actions. The volatility could have a negative impact on global economic growth, putting pressure on commodity prices.

North American natural gas prices have increased from the lows reached in 2024 and are expected to remain steady through the rest of 2025. Increased demand from power generation, expansion of data centers, and commissioning of new LNG facilities later in 2025 provide structural tailwinds to a sector that has at times struggled with over supply and weak pricing. Oil prices have come under pressure from concerns over a global economic slowdown and the potential for the Organization of the Petroleum Exporting Countries (OPEC) to add more production to the market, creating a risk of oversupply.

Although commodity price volatility creates some uncertainty, the industry as a whole has strengthened considerably over the past five years. Leverage ratios have dropped for many producers and service providers, allowing for investment into technology and equipment that enables more efficient completions. The industry has shifted from a capital intensive, high growth model in the previous decade to a model that is focused on growth within cash flow and providing stable returns to investors. This shift has created a more resilient industry that can better withstand the current volatility than it has in the past.

STEP’s revenue is largely driven by natural gas and natural gas liquids (“NGLs”), which should shield STEP’s schedule from the worst of the commodity price volatility. However, if the volatility continues and commodity prices weaken further, it is likely that clients could defer work into later quarters or trim their core capital programs. STEP maintains close contact with its clients and will adjust its operations if activity slows.

The second quarter fracturing schedule will be affected by spring break up conditions, although the multi-well pad completion programs utilized by STEP’s larger clients will allow for fracturing operations to continue. The slower period will allow for scheduled maintenance to be performed in advance of what is expected to be a reasonably well utilized third quarter for fracturing services.

Coiled tubing activity follows the fracturing cycle and is expected to see a modest slowdown in northern regions with spring break up before returning to steady utilization in the second half of the quarter and into the third quarter. Activity in the southern regions is expected to remain relatively stable through the second quarter and into the third quarter, although oil directed activity may slow down if the commodity price volatility continues. Clients are expected to continue drilling longer lateral lengths, given the lower cost profile these wells have. STEP’s Coil+ technology is well positioned to take advantage of this trend.

Expectations for the fourth quarter are modest. This quarter is typically characterized by slower activity as clients exhaust their annual capital budgets, resulting in margin compression for service providers as increased competition and lower fixed cost leverage weigh on results. The additional demand coming from newly commissioned LNG facilities may offset that softness, but further clarity on this is unlikely to be forthcoming until the third quarter.

Pricing is largely in line with what was expected in 2025. Increased oilfield service capacity and limited producer growth has put downward pressure on margins relative to 2024. Cost control will be a focus for STEP as it navigates the current economic uncertainty. Tariffs are the most urgent concern, particularly the retaliatory tariffs that the Canadian government has placed on fracturing sand and steel products such as coiled tubing. STEP has worked with industry associations to request remission of these tariffs, but in the meantime STEP will work with its clients to minimize the impact on collective margins.

Although Net Debt increased in Q1 2025 to $84.7 million with the seasonal surge in working capital, the Company is comfortable with its leverage. The ratio of Net Debt to EBITDA is well within covenant requirements and ranks among the lowest across the Canadian oilfield service sector. STEP will continue to allocate Free Cash Flow towards continued debt reduction, but the progress made on leverage allowed STEP to renew its NCIB to buy back shares, taking advantage of the Company’s low trading multiple and discount to book value. STEP will continue to opportunistically use its Free Cash Flow to buy back shares through the balance of the year.

QUARTERLY FINANCIAL REVIEW

FIRST QUARTER 2025 COMPARED TO FIRST QUARTER 2024

Revenue

For the three months ended March 31, 2025, revenue decreased 4% to $307.7 million compared to $320.1 million for the three months ended March 31, 2024.

Alignment with large scale operators continues to provide a strong baseline of utilization for both fracturing and coiled tubing operations. STEP operated seven fracturing crews during the quarter, down from eight for the same period of the prior year. Fracturing operating days for the quarter were down 14% while sand volumes decreased by only 5% reflecting the change in higher pumping intensity in Montney and Duvernay based operations.

STEP reactivated one additional coiled tubing spread during the quarter bringing the total active spreads to 22 which is comparable to the prior year. Coiled tubing operations had a slight increase in operating days, supported by new technology offerings and strategic client alignment. These factors continue to be a key drivers for increased activity with dedicated work secured with significant clients in all operating basins.

Operating expenses

Operating expenses includes employee costs, direct operating expenses such as repairs, transportation and facility costs, material and inventory costs, depreciation of equipment and share-based compensation for operational employees. The following table provides a summary of operating expenses:

Employee costs and general operating expenses decreased slightly compared to the prior year as declining costs associated with of the slow down in U.S. fracturing operations were partially offset by inflationary impacts on the overall cost of operations.

Material and inventory costs increased significantly compared to the prior year as changes in sand mix, increases in STEP supplied sand and currency fluctuations increased the cost of materials.

Selling, general and administrative expenses

The following table provides a summary of selling, general and administrative expenses:

Selling, general and administrative expenses were in line with the prior year with the majority of the increase coming from higher share-based compensation expense. Share-based compensation expense was higher in the first quarter of 2025 as the share price was higher relative to the same period in 2024.

Terminated Operations

Results from consolidated operations include the results from the terminated operations presented below. In the first quarter of 2025, the U.S. fracturing CGU was subject to changes in business conditions that materially impacted its expected economic performance. As a result, STEP has decided to exit this market and has suspended all further work related to these operations. The results of the terminated operations are as follows:

NON-IFRS MEASURES AND RATIOS

This Press Release includes terms and performance measures commonly used in the oilfield services industry that are not defined under IFRS. The terms presented are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These non-IFRS measures have no standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers. The non-IFRS measures should be read in conjunction with the Company’s quarterly financial statements and Annual Financial Statements and the accompanying notes thereto.

“Adjusted EBITDA” is a financial measure not presented in accordance with IFRS and is equal to net (loss) income before finance costs, depreciation and amortization, (gain) loss on disposal of property and equipment, current and deferred income tax provisions and recoveries, equity and cash settled share-based compensation, transaction costs, foreign exchange forward contract (gain) loss, foreign exchange (gain) loss, impairment losses and Adjusted EBITDA from terminated operations⁽¹⁾. “Adjusted EBITDA %” is a non-IFRS ratio and is calculated as Adjusted EBITDA divided by revenue. Adjusted EBITDA and Adjusted EBITDA % are presented because they are widely used by the investment community as they provide an indication of the results generated by the Company’s normal course business activities prior to considering how the activities are financed and the results are taxed. The Company uses Adjusted EBITDA and Adjusted EBITDA % internally to evaluate operating and segment performance, because management believes they provide better comparability between periods.

⁽¹⁾ STEP has expanded the definition of Adjusted EBITDA to exclude the Adjusted EBITDA from terminated operations in order to provide clarity on the Company’s normal course business activities to users of these documents. As a reminder, in Q1 2025, the U.S. fracturing CGU was subject to changes in business conditions that materially impacted its expected future economic performance. As a result, STEP began an orderly process to terminate operations of this CGU following completion of the work scope in Q1. The Company expects to transfer the U.S. fracturing CGU’s recently refurbished Tier 4 dual fuel equipment to Canada and will dispose of the remaining equipment over the next several quarters. As not all the equipment is being disposed of, the accounting presentation does not meet the test for the IFRS standard for discontinued operations.

The following table presents a reconciliation of the non-IFRS financial measure of Adjusted EBITDA to the IFRS financial measure of net income:

⁽¹⁾ Adjusted EBITDA from terminated operations is calculated in the same manner as the calculation of Adjusted EBITDA but does not include non-applicable items, such as unrealized (gain) loss on derivatives nor foreign exchange losses (gain) amounts. The calculation of Adjusted EBITDA from terminated operations is as follows:

“Free Cash Flow” is a financial measure not presented in accordance with IFRS and is equal to net cash provided by operating activities adjusted for changes in non-cash Working Capital from operating activities, sustaining capital expenditures, term loan principal repayments and lease payments (net of sublease receipts). The Company may deduct or include additional items in its calculation of Free Cash Flow that are unusual, non-recurring or non-operating in nature. Free Cash Flow is presented as this measure is widely used in the investment community as an indication of the level of cash flow generated by ongoing operations. Management uses Free Cash Flow to evaluate the adequacy of internally generated cash flows to manage debt levels, invest in the growth of the business or return capital to shareholders. The following table presents a reconciliation of the non-IFRS financial measure of Free Cash Flow to the IFRS financial measure of net cash provided by operating activities.

“Free Cash Flow per share-basic” is a financial measure not presented in accordance with IFRS and is equal to Free Cash Flow divided by the weighted average number of shares outstanding – basic. Management uses Free Cash Flow per share-basic to evaluate the adequacy of internally generated cash flows to manage debt levels, invest in the growth of the business or return capital to shareholders on a normalized per basic share basis. The following table presents a reconciliation of the non-IFRS financial measure of Free Cash Flow per share-basic to the IFRS financial measure of net cash provided by operating activities.

“Free Cash Flow per share-diluted” is a financial measure not presented in accordance with IFRS and is equal to Free Cash Flow divided by the weighted average number of shares outstanding – diluted. Management uses Free Cash Flow per share-basic to evaluate the adequacy of internally generated cash flows to manage debt levels, invest in the growth of the business or return capital to shareholders on a normalized per diluted share basis. The following table presents a reconciliation of the non-IFRS financial measure of Free Cash Flow per share-basic to the IFRS financial measure of net cash provided by operating activities.

“Working Capital”, “Total long-term financial liabilities” and “Net Debt” are financial measures not presented in accordance with IFRS. “Working Capital” is equal to total current assets less total current liabilities. “Total long-term financial liabilities” is comprised of loans and borrowings, long-term lease obligations and other liabilities. “Net Debt” is equal to loans and borrowings before deferred financing charges less cash and cash equivalents and CCS derivatives. The data presented is intended to provide additional information about items on the statement of financial position and should not be considered in isolation or as a substitute for measures prepared in accordance with IFRS.

The following table represents the composition of the non-IFRS financial measure of Working Capital (including cash and cash equivalents).

The following table presents the composition of the non-IFRS financial measure of Total long-term financial liabilities.

The following table presents the composition of the non-IFRS financial measure of Net Debt.

RISK FACTORS AND RISK MANAGEMENT

The oilfield services industry involves many risks, which may influence the ultimate success of the Company. The risks and uncertainties set out in the AIF and Annual MD&A are not the only ones the Company is facing. There are additional risks and uncertainties that the Company does not currently know about or that the Company currently considers immaterial which may also impair the Company’s business operations and can cause the price of the Common Shares to decline. Readers should review and carefully consider the disclosure provided under the heading “RiskFactors” in the AIF and “Risk Factors and Risk Management” in the Annual MD&A, both of which are available on www.sedarplus.ca, and the disclosure provided in the MD&A under the headings “Market Outlook”. In addition, global and national risks associated with market uncertainty due to changing tariffs and other trade barriers may adversely affect the Company by, among other things, reducing economic activity resulting in lower demand, and pricing, for crude oil and natural gas products, and thereby the demand and pricing for the Company’s services. Other than as supplemented in this Press Release, the Company’s risk factors, and management thereof has not changed substantially from those disclosed in the AIF and Annual MD&A.

FORWARD-LOOKING INFORMATION & STATEMENTS

Certain statements contained in this Press 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 the Company’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 the Company believes the expectations reflected in the forward-looking statements included in this Press 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.

In particular, but without limitation, this Press Release contains forward-looking statements pertaining to: 2025 and 2026 industry conditions and outlook, including commodity pricing and demand for oil and gas; the effect of LNG facilities on export capacity, natural gas storage, and industry activity levels; anticipated utilization and activity levels, revenue, pricing, and schedule; capabilities of the NGx, including fuel savings, and the Company’s intent to invest in the technology; the oil and gas industry’s ability to withstand volatility; the Company’s ability to transfer assets where economic returns are most favourable; the Company’s ability to test and evaluate next generation technologies; the effect large clients and their programs may have on the Company’s activity levels; the Company’s intention to invest in the development of next generation coiled tubing technologies; the effect of tariffs and other trade barriers, inflation and cost increases on the Company and its margins; the Company’s view that the NCIB is an effective means to provide value to shareholders; the impact of weather and break up on the Company’s operations; the Company’s ability to meet all financial commitments including interest payments over the next twelve months; the Company’s plans regarding equipment; the Company’s ability to manage its capital structure and adjust the Company’s budget in light of market conditions; expected debt repayment and Funded Debt to Adjusted Bank EBITDA ratios; expected income tax and derivative liabilities; adequacy of resources to funds operations, financial obligations and planned capital expenditures; the Company’s ability to retain its existing clients; the monitoring of impairment, amount and age of balances owing, and the Company’s financial assets and liabilities denominated in U.S. dollars, and exchange rates; the Company’s expected compliance with covenants under its Credit Facilities and its ability to satisfy its financial commitments thereunder.

The forward-looking information and statements contained in this Press Release reflect several material factors and expectations and assumptions of the Company including, without limitation: the effect of macroeconomic factors, including global energy security concerns and levels of oil and gas inventories; tariffs, trade barriers, and related market concerns; levels of oil and gas production and LNG export capacity on the market for the Company’s services; that the Company will continue to conduct its operations in a manner consistent with past operations; the Company will continue as a going concern; the general continuance of current or, where applicable, assumed industry conditions; pricing of the Company’s services; the Company’s ability to market successfully to current and new clients; predictability of 2025 and 2026 activity levels; actual performance of the NGx; predictable effect of seasonal weather and break up on the Company’s operations; the Company’s ability to utilize its equipment; the Company’s ability to collect on trade and other receivables; Client demand for dual fuel fleets and emissions reduction technologies; the Company’s ability to obtain and retain qualified staff and equipment in a timely and cost effective manner; levels of deployable equipment; future capital expenditures to be made by the Company; future funding sources for the Company’s capital program; the Company’s future debt levels; the availability of unused credit capacity on the Company’s credit lines; the impact of competition on the Company; the Company’s ability to obtain financing on acceptable terms; the Company’s continued compliance with financial covenants; the amount of available equipment in the marketplace; and client activity levels and spending. The Company believes the material factors, expectations and assumptions reflected in the forward-looking information and statements are reasonable, but no assurance can be given that these factors, expectations and assumptions will prove correct.

Actual results could also differ materially from those anticipated in these forward‐looking statements due to the risk factors set forth under the heading “Risk Factors” in the AIF and under the heading Risk Factors and Risk Management in this Press Release.

Any financial outlook or future orientated financial information contained in this Press Release regarding prospective financial performance, financial position or cash flows is based on the assumptions about future events, including economic conditions and proposed courses of action based on management’s assessment of the relevant information that is currently available. Projected operational information, including the Company’s capital program, contains forward looking information and is based on a number of material assumptions and factors, as are set out above. These projections may also be considered to contain future oriented financial information or a financial outlook. The actual results of the Company’s operations will likely vary from the amounts set forth in these projections and such variations may be material. Readers are cautioned that any such financial outlook and future oriented financial information contains herein should not be used for purposes other than those for which it is disclosed herein.

The forward-looking information and statements contained in this Press Release speak only as of the date of the document, and none of the Company or its subsidiaries assumes any obligation to publicly update or revise them to reflect new events or circumstances, except as may be required pursuant to applicable laws. The reader is cautioned not to place undue reliance on forward-looking information.

STEP will host a conference call on Thursday, May 15, 2025 at 9:00 a.m. MT to discuss the results for the first quarter.

To listen to the webcast of the conference call, please click on the following URL: https://onlinexperiences.com/Launch/QReg/ShowUUID=C938A7BD-82B6-41E2-9B86-AF726FC8A71D&LangLocaleID=1033

You can also visit the Investors section of our website at www.stepenergyservices.com and click on “Reports, Presentations & Key Dates”.

To participate in the Q&A session, please call the conference call operator at: 1-800-717-1738 (toll free) 15 minutes prior to the call’s start time and ask for “STEP Energy Services First Quarter 2025 Earnings Results Conference Call”.

The conference call will be archived on STEP’s website at www.stepenergyservices.com/investors

ABOUT STEP

STEP is an energy services company that provides coiled tubing, fluid and nitrogen pumping and hydraulic fracturing solutions. Our combination of modern equipment along with our commitment to safety and quality execution has differentiated STEP in plays where wells are deeper, have longer laterals and higher pressures. STEP has a high-performance, safety-focused culture and its experienced technical office and field professionals are committed to providing innovative, reliable and cost-effective solutions to its clients.

Founded in 2011 as a specialized deep capacity coiled tubing company, STEP has grown into a North American service provider delivering completion and stimulation services to exploration and production (“E&P”) companies in Canada and the U.S. Our Canadian services are focused in the Western Canadian Sedimentary Basin (“WCSB”), while in the U.S., our coiled tubing services are concentrated in the Permian and Eagle Ford in Texas, the Uinta-Piceance, and Niobrara-DJ basins in Colorado and the Bakken in North Dakota.

Our four core values; Safety, Trust, Execution and Possibilities inspire our team of professionals to provide differentiated levels of service, with a goal of flawless execution and an unwavering focus on safety.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250514718871/en/

For more information please contact:
Steve Glanville
President and Chief Executive Officer
Telephone: 403-457-1772

Klaas Deemter
Chief Financial Officer
Telephone: 403-457-1772

Email: investor_relations@step-es.com
Web: www.stepenergyservices.com

Source: STEP Energy Services Ltd.