Secure Energy Services Announces Fourth Quarter and Annual 2014 Results
(firmenpresse) - CALGARY, ALBERTA -- (Marketwired) -- 03/03/15 -- Secure Energy Services Inc. ("Secure" or the "Corporation") (TSX: SES) today announced financial and operational results for the three and twelve months ended December 31, 2014. The following should be read in conjunction with the management's discussion and analysis ("MD&A"), the annual audited consolidated financial statements and notes of Secure which are available on SEDAR at .
2014 FINANCIAL AND OPERATIONAL HIGHLIGHTS
Secure's three operating divisions were very active in 2014 resulting in adjusted EBITDA and adjusted EBITDA per share growth of 54% and 38% respectively, for the twelve months ended December 31, 2014. During the year Secure continued to focus on its core business strategies by constructing seven new PRD facilities in key markets, by completing eight strategic acquisitions that enhanced the Corporation's service offering and by providing services that continually exceed customer expectations. In addition to delivering operational excellence, the Corporation increased its credit facility from $400.0 million to $700.0 million adding considerable financial flexibility to manage through periods of low commodity pricing and muted industry activity.
The operating and financial highlights for the twelve month period ending December 31, 2014 can be summarized as follows:
Twelve Months Ended December 31, 2014 highlights for the PRD division included:
Three months ended December 31, 2014 highlights for the PRD division include the following:
Twelve months ended December 31, 2014 highlights for the DS division included:
Three months ended December 31, 2014 highlights for the DS division include the following:
Twelve Months Ended December 31, 2014 highlights for the OS division included:
Three months ended December 31, 2014 highlights for the OS division include the following:
OUTLOOK
The significant decrease in the price of crude oil and natural gas over the past few months and the continued volatility in pricing has significantly reduced the outlook for oil and gas industry activity. For 2015, the Corporation's customers have significantly reduced capital budgets in response to uncertainty in the price of crude oil and natural gas.
The Canadian Association of Oilwell Drilling Contractors ("CAODC") recently updated their 2015 forecast reporting active rigs will decline by at least 45% in 2015 compared to 2014. This decrease in active rigs and the corresponding reduction in meters drilled will have an impact on all three of Secure's operating divisions to varying degrees.
In response to the reduction in oil and gas activity, Secure has implemented a number of initiatives to streamline processes and achieve cost reductions where applicable. This includes analyzing our workforce in an effort to eliminate redundant roles and consolidate finance and operations where possible. In addition, Secure has reduced discretionary spending where it does not impact safety, operations and environmental performance. Overall, based on the reduced activity levels and the Corporation's cost reduction initiatives implemented, the potential impact on 2015 annual results on each operating division from 2014 actual results are as follows:
While there is uncertainty as to the full impact of the reduced activity on each division, we are confident that Secure's focus on the customer will remain strong. Secure's customer strategy in 2015 includes:
Secure has considerable financial flexibility and remains well positioned to react to opportunities in the current environment. Secure has always maintained a strong financial position and will use that position of strength to take advantage of opportunities that may arise as a result of the downturn in the market. Secure is experiencing, as a result of this environment, increased demand for outsourcing and Secure customers divesting their facilities. This short term window allows Secure to seek out and evaluate opportunities that provide meaningful growth for both 2015 and 2016. As a result of these opportunities, the 2015 organic capital program has been revised from $225.0 million to a capital program ranging from $50.0 million to $150.0 million, with $50.0 million being the minimum committed capital for 2015. The range provided is not an indication of lost organic opportunities but rather the Corporation strategically delaying certain organic capital projects in lieu of potential accretive acquisition opportunities that may arise under current market conditions that would be considered complimentary to Secure's service offering.
The Corporation continues to develop visible growth opportunities for the business beyond 2015. The business development team will continue to advance certain organic projects and regulatory approvals to ensure they are project ready for later this year or early next year. This does not change the fact that Secure remains focused on the continued execution of its core business strategies; specifically investment in organic development of new facilities in underserviced markets. This will position Secure for continued market share growth, expand geographical presence, and find new and innovative ways that not only meet but exceed customer expectations.
During the first quarter of 2015, the Corporation commissioned the 13 Mile SWD conversion to an FST in North Dakota, and commissioned the Rycroft FSR. The Tulliby Lake FST is expected to be commissioned in early March.
Secure understands the importance of protecting and reducing the industry's impact on the environment. To that end, Secure remains committed to investing in new technologies to recycle and reduce waste resulting from oil and gas drilling and production. In 2014, Secure commenced trials on a technology that recovers hydrocarbons used in the drilling process and water recycling technology that will allow producers to recycle and reuse flowback water. Secure continues to assess the economic feasibility of both technologies and is excited about the results achieved to date.
Into 2015 and beyond, Secure will remain focused on the long-term strategy of the Corporation. Secure has the right people and service offerings to position the company for long-term growth and profitability combined with a strong balance sheet, that will provide Secure with financial flexibility to effectively manage the business through a period of lower commodity pricing and industry activity.
FINANCIAL STATEMENTS AND MD&A
The audited consolidated financial statements and MD&A of Secure for the three and twelve months ended December 31, 2014 are available immediately on Secure's website at . The audited consolidated financial statements and MD&A will be available tomorrow on SEDAR at .
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 or implies forward-looking statements pertaining to: corporate strategy; goals; general market conditions; the oil and natural gas industry; activity levels in the oil and gas sector, including market fundamentals and the impact to each division on revenue and operating margins, drilling levels, commodity prices for oil, natural gas liquids ("NGLs") and natural gas; industry fundamentals for the first quarter of 2015; capital forecasts and spending by producers; demand for the Corporation's services; expansion strategy; the impact of the reduction in oil and gas activity on 2015 activity levels; revenue and operating margin for the PRD, DS and OS divisions; the amount of the revised 2015 capital program; the amounts of the PRD, DS and OS divisions' proposed 2015 capital budgets and the intended use thereof; debt service; capital expenditures; completion of facilities; the impact of new facilities on the Corporation's financial and operational performance; future capital needs; access to capital; acquisition strategy; anticipated commissioning of the water recycling at South Grande Prairie FST, and anticipated commissioning of the Tulliby Lake FST; Rycroft FSR; and 13 Mile SWD conversion.
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, and the United States 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 favourable to the Corporation and that future economic and operating conditions will not limit the Corporation's access to debt and eq uity 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 substantially 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, 2014. 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 statements.
Non GAAP Measures and Operational Definitions
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 operates three divisions:
Processing, Recovery and Disposal Division ("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 and rail transloading, 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, stand-alone water disposal facilities, and rail transloading facilities.
Drilling Services Division ("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.
On Site Division ("OS"): The operations of the OS division include environmental services which provide pre-drilling assessment planning, drilling waste management, remediation and reclamation assessment services, laboratory services, and "CleanSite" waste container services; integrated fluid solutions which include water management, recycling, pumping and storage solutions; and projects which include pipeline integrity (inspection, excavation, repair, replacement and rehabilitation); demolition and decommissioning and reclamation and remediation of former wellsites, facilities, commercial and industrial properties.
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
Executive Vice President and Chief Financial Officer
(403) 984-6100
(403) 984-6101 (FAX)
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Datum: 03.03.2015 - 22:57 Uhr
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News-ID 375966
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Oil & Gas
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