Secure announces 2024 first quarter results – Canadian Energy News, Top Headlines, Commentaries, Features & Events – EnergyNow

• Adjusted EBITDA¹ of $132 million ($0.47/basic share)
• Discretionary Free Cash Flow¹ of $93 million ($0.33/basic share)
• Strengthened our capital structure with debt repayment and refinancing. At March 31, 2024, the Corporation had $264 million of cash and $751 million in available borrowing capacity, subject to covenant restrictions, providing ample liquidity for shareholder returns and funding of growth initiatives
• 2024 planned growth expenditures increased to approximately $75 million (from $50 million previously announced) with customer support for infrastructure expansion projects
• Intention to launch a Substantial Issuer Bid next week as part of our capital allocation strategy

CALGARY, AB, April 25, 2024 /CNW/ – SECURE Energy Services Inc. (“SECURE” or the “Corporation”) (TSX: SES), a leading waste management and energy infrastructure company, reported today its operational and financial results for the three months ended March 31, 2024.

“We’re pleased to report a solid start to 2024, with first-quarter results meeting our expectations, allowing us to narrow our Adjusted EBITDA guidance to $450–$465 million for the year,” said Allen Gransch, President and incoming CEO. “Strong execution across all business units continues to underscore the stability of our cash flow generation capabilities. In addition, we’ve optimized our capital structure through debt repayment and refinancing, positioning us with substantial liquidity for strategic initiatives. Our critical infrastructure network, expertise, and financial position set us up to drive operational excellence, growth, and long-term sustainability as a leading waste management and energy infrastructure company.

“Over the last quarter, the Corporation successfully refinanced its long-term debt and continued to deliver shareholder returns through dividends and share buybacks, while maintaining significant financial flexibility. Given our positive operational results in the first quarter, the Board of Directors and management continue to believe that a significant gap exists between SECURE’s current market valuation and that of peers in the waste management and energy infrastructure sector. In light of these factors, alongside ongoing initiatives, we intend to initiate a Substantial Issuer Bid next week as a key element of SECURE’s capital allocation strategy.”

FIRST QUARTER HIGHLIGHTS

• Closed the sale of 29 facilities to Waste Connections, Inc. (through its wholly owned subsidiary) for $1.15 billion on February 1, 2024 (the “Sale Transaction”). The 29 facilities were formerly owned by Tervita Corporation and were ordered to be divested by the Competition Tribunal.
• Repaid the entire amount drawn on the $800 million senior secured revolving credit facility, excluding letters of credit.
• Redeemed the outstanding US$153 million aggregate principal amount of 11% senior secured notes due 2025.
• Closed the offering of $300 million aggregate principal amount of 6.75% senior unsecured notes due 2029. Net proceeds from the offering, along with cash on hand, were used to redeem the outstanding $340 million aggregate principal amount of 7.25% senior unsecured notes due 2026.
• Repurchased and cancelled 12,055,510 shares under the normal course issuer bid at a weighted average price per share of $10.47 for a total of $126 million, reducing our shares outstanding by 4% in the first quarter. The Corporation repurchased an additional 2,812,700 share subsequent to quarter end.
• Paid a quarterly dividend of $0.10 per common share, which currently represents an attractive yield of 3.5% on our common shares compared to peers.
• Generated revenue (excluding oil purchase and resale) of $360 million, a decrease of 13% from the first quarter of 2023, primarily related to the impact of the Sale Transaction, and the divestiture of two non-core oilfield service business units in 2023, partially offset by higher volumes and improved margins across the Corporation’s remaining infrastructure network.
• Recorded net income of $422 million or $1.50 per basic share, an increase of $367 million or $1.32 per basic share compared to the first quarter of 2023. The increase was primarily driven by the gain of $520 million recognized on the Sale Transaction, net of the current and deferred tax expenses resulting from the gain.
• Achieved Adjusted EBITDA of $132 million ($0.47 per basic share), a decrease of 13% to the first quarter of 2023 (4% on a per basic share basis) due to the same factors impacting revenue. However, the decrease in Adjusted EBITDA per basic share was partially offset by a reduction in the number of common shares outstanding resulting from ongoing share repurchases over the past year, which resulted in a decrease of 8% to the weighted average basic shares outstanding in the first quarter of 2024 from the 2023 comparative period.
• Generated funds flow from operations of $108 million ($0.38 per basic share), a decrease of 21% to the first quarter of 2023 (14% on a per basic share basis) as a result of lower operating profit resulting from the Sale Transaction.
• Generated Discretionary Free Cash Flow of $93 million ($0.33 per basic share), a decrease of 24% to the first quarter of 2023 (18% on a per basic share basis) as lower Adjusted EBITDA was partially offset by reduced spending on sustaining capital due to reduced facility count following the Sale Transaction.

The Corporation’s operating and financial highlights for the three months ended March 31, 2024 and 2023 can be summarized as follows:

OUTLOOK

SECURE is extremely well positioned for success with a strong industry backdrop, growth opportunities, and the financial capacity to execute on our strategic initiatives and deliver enhanced shareholder returns. With the Trans Mountain pipeline expansion scheduled to begin operations in the second quarter, our customers can gain take away capacity and stronger pricing with access to global markets paving the way for sustained and expanded activity levels in the years ahead. We expect industry fundamentals will drive increased volumes and overall demand for SECURE’s infrastructure. With our waste processing facilities currently operating at approximately 60 percent utilization, we have ample capacity to accommodate growing customer needs for processing, disposal, recycling, recovery, and terminalling, all with minimal incremental fixed costs or additional capital investment.

Proceeds from the Sale Transaction, as well as continued strong free cash flow generation, provides the Corporation with significant capital allocation optionality for 2024 and beyond, facilitating our ability to execute on all SECURE’s strategic priorities. With a solid foundation and clear direction, we’re confident in our ability to protect the base business and seize new opportunities to create value for our shareholders. We also remain committed to enhanced shareholder returns through share repurchases and our $0.40 per share annualized dividend, all while maintaining low leverage.

2024 EXPECTATIONS

• Adjusted EBITDA of $450–$465 million, the high end of the range previously provided of $440–$465 million. Excluding Corporate costs, SECURE anticipates approximately 70% of Adjusted EBITDA will be attributable to the Waste Management reporting segment in 2024, with the remaining approximately 30% of Adjusted EBITDA generated from the Energy Infrastructure segment.
• Continued robust Adjusted EBITDA margins as we focus on optimizing the business, targeting additional operating efficiencies, and continually improving operating cash flow.
• High Discretionary Free Cash Flow conversion with low sustaining capital and debt service requirements.
• Growth capital expenditures will increase by $25 million to approximately $75 million for 2024. The increase relates to customer agreements for a produced water pipeline to a waste processing facility, as well as processing equipment for phase three at the Clearwater heavy oil terminal. With a solid pipeline of organic growth opportunities, the Corporation continues to pursue growth strategies to expand its infrastructure network with new project announcements following the finalization of customer agreements. Additionally, the Corporation will consider acquisitions that meet its investment criteria and enhance its core operations in waste management and energy infrastructure.
• Sustaining capital expenditures of approximately $60 million, including landfill expansions.
• Asset retirement obligation expenditures of approximately $15 million.
• Continued share repurchases, including by means of a Substantial Issuer Bid in the second quarter of 2024, based on, among other things, market conditions and the discretion of the Board of Directors.
• Annualized base dividend of $0.40 per share, which equates to a total of approximately $110 million per year based on current issued and outstanding shares.
• Allen Gransch, President, to succeed Rene Amirault as Chief Executive Officer effective May 1, 2024. Rene will remain on the Board of Directors as Vice Chair.
• Election of Allen Gransch to the Board of Directors at the Corporation’s Annual General Meeting of Shareholders on April 26, 2024. The Board of Directors will remain at eight directors, with Brad Munro not seeking re-election.
• Release of our 2023 Sustainability Report and second Task Force on Climate-Related Financial Disclosures (TCFD) report in May 2024, demonstrating our ongoing commitment to transparent reporting.

“I’d like to congratulate Brad Munro and Rene Amirault on their respective retirements,” said Mick Dilger, Chairman of the Board of Directors. “Brad was elected as a director of the Corporation in 2009, and has provided exceptional leadership, guidance and thoughtful advice for over 15 years. With over 30 years as a director in the waste management industry, Brad brought valuable experience and mentorship to many of his fellow directors. Brad served as lead director from April 2020 to July 2021 and Interim Chairman of the Board of Directors from June 2022 to January 2023, where he was instrumental in guiding the organization during the merger negotiations and successful integration. On behalf of the entire Board, we thank Brad for his valuable contributions.”

“As previously announced, Rene will retire as CEO on May 1, 2024. While he steps down from his executive role, we are pleased that Rene will remain on the Board of Directors as Vice-Chair. As one of the founders of the Corporation, we welcome Rene’s leadership which will continue to help guide the organization and SECURE’s strategic direction. After 17 years of great successes, we wish Rene all the best in his well-deserved retirement from management.”

Rene Amirault commented, “The Corporation has a strong team of dedicated employees in place to execute on its strategic objectives, while continuing to provide best-in-class customer service. The leadership transition with Allen Gransch assuming the role of President and CEO marks the beginning of an exciting new chapter for the Corporation. Allen’s proven leadership capabilities, extensive experience and diverse skill set will allow for a seamless succession, and guide SECURE as it moves forward.”

“I’m very privileged to be taking over as CEO at this time,” said Allen Gransch. “Thanks to Rene’s visionary leadership, SECURE has established itself as a trusted industry partner, showcasing remarkable accomplishments in growth and operational excellence. The Corporation is extremely well positioned to advance our strategy as a leader in waste management and energy infrastructure, prioritizing value creation for our customers through reliable, safe, and environmentally responsible infrastructure. I’m excited for this opportunity for continued growth and innovation.”

NON-GAAP AND OTHER SPECIFIED FINANCIAL MEASURES

The Corporation uses accounting principles that are generally accepted in Canada (the issuer’s “GAAP”), which includes International Financial Reporting Standards (“IFRS”). This news release contains certain supplementary non-GAAP financial measures, such as Adjusted EBITDA and Discretionary Free Cash Flow and certain non-GAAP financial ratios, such as Adjusted EBITDA Margin, Adjusted EBITDA per share, and Discretionary Free Cash Flow per share which do not have any standardized meaning as prescribed by IFRS. These measures are intended as a complement to results provided in accordance with IFRS. The Corporation believes these measures provide additional useful information to analysts, shareholders and other users to understand the Corporation’s financial results, profitability, cost management, liquidity and ability to generate funds to finance its operations.

However, these measures should not be used as an alternative to IFRS measures because they are not standardized financial measures under IFRS and therefore might not be comparable to similar financial measures disclosed by other companies. See the “Non-GAAP and other specified financial measures” section of the Corporation’s MD&A for the three months ended March 31, 2024 and 2023 for further details, which is incorporated by reference herein and available on SECURE’s profile at www.sedarplus.ca and on our website at www.SECURE-energy.com.

Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted EBITDA per share

Adjusted EBITDA is calculated as noted in the table below and reflects items that the Corporation considers appropriate to adjust given the irregular nature and relevance to comparable operations. Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by revenue (excluding oil purchase and resale). Adjusted EBITDA per basic and diluted share is defined as Adjusted EBITDA divided by basic and diluted weighted average common shares. For the three months ended March 31, 2024 and 2023, transaction and related costs have been adjusted as they are costs outside the normal course of business.

The following table reconciles the Corporation’s net income, being the most directly comparable financial measure disclosed in the Corporation’s financial statements, to Adjusted EBITDA for the three months ended March 31, 2024 and 2023.

Discretionary Free Cash Flow and Discretionary Free Cash Flow per share

Discretionary Free Cash Flow is defined as funds flow from operations adjusted for sustaining capital expenditures, and lease payments. The Corporation may deduct or include additional items in its calculation of Discretionary Free Cash Flow that are unusual, non-recurring, or non-operating in nature. Discretionary Free Cash Flow per basic and diluted share is defined as Discretionary Free Cash Flow divided by basic and diluted weighted average common shares. For the three months ended March 31, 2024 and 2023, transaction and related costs have been adjusted for in determining Discretionary Free Cash Flow as they are costs outside the normal course of business.

The following table reconciles the Corporation’s funds flow from operations, being the most directly comparable financial measure disclosed in the Corporation’s financial statements, to Discretionary Free Cash Flow.

FINANCIAL STATEMENTS AND MD&A

The Corporation’s consolidated financial statements and notes thereto and Management’s Discussion and Analysis for the three months ended March 31, 2024 and 2023 are available on SECURE’s website at www.secure-energy.com and on SEDAR+ at www.sedarplus.ca.

FIRST QUARTER 2024 CONFERENCE CALL

SECURE will host a conference call Thursday, April 25, 2024, at 1:00 p.m. MST to discuss the first quarter results. To participate in the conference call, dial 416-764-8650 or toll free 1-888-664-6383. To access the simultaneous webcast, please visit www.SECURE-energy.com. For those unable to listen to the live call, a taped broadcast will be available at www.SECURE-energy.com and, until midnight MST on Thursday, May 2, 2024, by dialing 1-888-390-0541 and using the pass code 204398#.

FORWARD-LOOKING STATEMENTS

Certain statements contained or incorporated by reference in this press release 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 press release, the words “achieve”, “advance”, “anticipate”, “believe”, “can be”, “capacity”, “commit”, “continue”, “could”, “deliver”, “drive”, “enhance”, “ensure”, “estimate”, “execute”, “expect”, “focus”, “forecast”, “forward”, “future”, “goal”, “grow”, “integrate”, “intend”, “may”, “maintain”, “objective”, “ongoing”, “opportunity”, “outlook”, “plan”, “position”, “potential”, “prioritize”, “realize”, “remain”, “result”, “seek”, “should”, “strategy”, “target” “will”, “would” and similar expressions, as they relate to SECURE, its management are intended to identify forward-looking statements. Such statements reflect the current views of SECURE and speak only as of the date of this press release.

In particular, this press release contains or implies forward-looking statements pertaining but not limited to: SECURE’s expectations and priorities for 2024 and beyond and its ability and position to achieve such priorities; lower interest expenses; debt repayment; SECURE’s expectations for 2024, including growth opportunities and sustaining capital expenditures; the ability of SECURE to execute on its strategic initiatives; SECURE’s capital allocation priorities and strategies, including its intention to initiate a substantial issuer bid and the timing thereof, capital structure improvements, repayment of debt, payment of dividends and the amounts thereof, growing our base infrastructure with customer-backed contracts and share repurchases; expectations regarding sustained and expanded activity levels; the ability to create value for its shareholders; construction activities on the Clearwater heavy oil terminal and expected timing of the second phase operation; allocation of spending of the capital budget, including on landfill expansions and retirement obligations; repurchase of shares under the NCIB; ability of the Corporation to reduce the valuation gap of the common shares; capacity to enhance returns to shareholders and the ability to strategically expand in the industrial and energy waste markets; higher and sustained volumes and activity levels; shifting supply and demand dynamics driving commodity price volatility; stability in the industrial sector; discipline and modest production growth by the Corporation’s customers; SECURE’s business and demand for SECURE’s products and services for the remainder of 2024; opportunities as a result of production growth; SECURE’s infrastructure network capacity and costs to meet growing demand; SECURE’s long-term take or pay contracts; directing significant discretionary free cash toward capital allocation priorities; expectation the Corporation will not pay material cash tax until 2025 or later; Canada’s role in responsibly meeting growing demand for energy; the significance of oil and natural gas; the effect of expanded access from new pipeline infrastructure, and new natural gas liquids marine export terminals on domestic production; long-term investment by energy producers, resulting in sustained and growing activity levels; the impact of the Sale Transaction on discretionary free cash compared to 2023; SECURE’s position to benefit from increased activity for the long-term; the benefit of recurring volumes on SECURE’s industrial landfills as a result of government regulations; the stability and resilience of SECURE’s operations and the drivers thereof; the ability of the Corporation to realize the anticipated benefits of acquisitions or dispositions; SECURE’s vision of being a leader in environmental, waste management and energy infrastructure; value creation for SECURE’s customers through reliable, safe, and environmentally responsible infrastructure; SECURE’s ability to help their customers achieve operational excellence and leading environmental, social and governance (“ESG”) standards; the costs and the proceeds of sale should SECURE be required to divest of any facilities and SECURE’s ability to maximize such proceeds; the use of such proceeds of sale and their ability to mitigate the impact of such sale; maintaining SECURE’s Total Debt to EBITDA covenant ratio; SECURE’s capital program management and ability to ensure adequate sources of capital to carry out its capital plan; maintaining operational growth, payment of dividends and stable cashflow; sustaining capital growth for the long-term; SECURE’s capital allocation priorities, including share repurchases; SECURE’s ability to optimize its portfolio; the renewal of SECURE’s NCIB; the Corporation’s ability to capitalize on its strategic initiatives and divestitures; increased industry activity, including related to abandonment, remediation and reclamation and the impacts thereof; expected capital expenditures and the timing of the completion of projects related thereto; the contribution of completed projects to SECURE’s results and the timing thereof; SECURE’s ability to repay debt and achieve its near-term debt targets; sustained inflationary pressures and increased interest rates, their impact on SECURE’s business and SECURE’s ability to manage such pressures; the impact of new or existing regulatory requirements, including mandatory spend requirements for retirement obligations, on SECURE’s business, and the introduction of such requirements; seasonal slowdowns in energy industry activity; SECURE’s dividend policy, the declaration, timing and amount of dividends thereunder and the continued monitoring of such policy by the Board and management; the Corporation’s ability to fund its capital needs and the amount thereof; methods and sources of liquidity to meet SECURE’s financial obligations, including adjustments to dividends, drawing on credit facilities, issuing debt, obtaining equity financing or divestitures; SECURE’s liquidity position and access to capital; maintaining financial resiliency; and the contribution of completed projects to SECURE’s results and the timing thereof.

Forward-looking statements are based on certain assumptions that SECURE has made in respect thereof as at the date of this press release regarding, among other things: SECURE’s 2024 expectations; economic and operating conditions, including commodity prices, crude oil and natural gas storage levels, interest rates, exchange rates, and inflation; ability to enter into signing agreements with customers to backstop the investments and acquisition opportunities present; continued demand for the Corporation’s infrastructure services and activity linked to long-term and recurring projects; the changes in market activity and growth will be consistent with industry activity in Canada and the U.S. and growth levels in similar phases of previous economic cycles; increased capacity and stronger pricing with access to global markets through new infrastructure; the impact of any new pandemic or epidemic and other international or geopolitical events, including government responses related thereto and their impact on global energy pricing, oil and gas industry exploration and development activity levels and production volumes; anticipated sources of funding being available to SECURE on terms favourable to SECURE; the success of the Corporation’s operations and growth projects; the impact of seasonal weather patterns; the Corporation’s competitive position, operating, acquisition and sustaining costs remaining substantially unchanged; the Corporation’s ability to attract and retain customers; that counterparties comply with contracts in a timely manner; current commodity prices, forecast taxable income, existing tax pools and planned capital expenditures; the Corporation’s ability to attract and retain customers; that counterparties comply with contracts in a timely manner; that there are no unforeseen events preventing the performance of contracts or the completion and operation of the relevant facilities; that there are no unforeseen material costs in relation to the Corporation’s facilities and operations; that prevailing regulatory, tax and environmental laws and regulations apply or are introduced as expected, and the timing of such introduction; increases to the Corporation’s share price and market capitalization over the long term; disparity between the Corporation’s share price and the fundamental value of the business; the Corporation’s ability to repay debt and return capital to shareholders; credit ratings; the Corporation’s ability to obtain and retain qualified personnel (including those with specialized skills and knowledge), technology and equipment in a timely and cost-efficient manner; the Corporation’s ability to access capital and insurance; operating and borrowing costs, including costs associated with the acquisition and maintenance of equipment and property; the ability of the Corporation and our subsidiaries to successfully market our services in western Canada and the U.S.; an increased focus on ESG, sustainability and environmental considerations in the oil and gas industry; the impacts of climate-change on the Corporation’s business; the current business environment remaining substantially unchanged; present and anticipated programs and expansion plans of other organizations operating in the energy service industry resulting in an increased demand for the Corporation’s and our subsidiaries’ services; future acquisition and maintenance costs; the Corporation’s ability to achieve its ESG and sustainability targets and goals and the costs associated therewith; and other risks and uncertainties described in SECURE’s current annual information form and from time to time in filings made by SECURE with securities regulatory authorities.

Forward-looking statements involve significant known and unknown 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: general global financial conditions, including general economic conditions in Canada and the U.S.; the effect of any pandemic or epidemic, inflation and international or geopolitical events and governmental responses thereto on economic conditions, commodity prices and the Corporation’s business and operations; changes in the level of capital expenditures made by oil and natural gas producers and the resultant effect on demand for oilfield services during drilling and completion of oil and natural gas wells; volatility in market prices for oil and natural gas and the effect of this volatility on the demand for oilfield services generally; a transition to alternative energy sources; the Corporation’s inability to retain customers; risks inherent in the energy industry, including physical climate-related impacts; the Corporation’s ability to generate sufficient cash flow from operations to meet our current and future obligations; the seasonal nature of the oil and gas industry; increases in debt service charges including changes in the interest rates charged under the Corporation’s current and future debt agreements; inflation and supply chain disruptions; the Corporation’s ability to access external sources of debt and equity capital and insurance; disruptions to our operations resulting from events out of our control; the timing and amount of stimulus packages and government grants relating to site rehabilitation programs; the cost of compliance with and changes in legislation and the regulatory and taxation environment, including uncertainties with respect to implementing binding targets for reductions of emissions and the regulation of hydraulic fracturing services and services relating to the transportation of dangerous goods; uncertainties in weather and temperature affecting the duration of the oilfield service periods and the activities that can be completed; ability to maintain and renew the Corporation’s permits and licenses which are required for its operations; competition; impairment losses on physical assets; sourcing, pricing and availability of raw materials, consumables, component parts, equipment, suppliers, facilities, and skilled management, technical and field personnel; supply chain disruption; the Corporation’s ability to effectively complete acquisition and divestiture transactions on acceptable terms or at all; failure to realize the benefits of acquisitions or dispositions and risks related to the associated business integration; risks related to a new business mix and significant shareholder; liabilities and risks, including environmental liabilities and risks inherent in SECURE’s operations; the Corporation’s ability to invest in and integrate technological advances and match advances of our competition; the viability, economic or otherwise, of such technology; credit, commodity price and foreign currency risk to which the Corporation is exposed in the conduct of our business; compliance with the restrictive covenants in the Corporation’s current and future debt agreements; the Corporation’s or our customers’ ability to perform their obligations under long-term contracts; misalignment with our partners and the operation of jointly owned assets; the Corporation’s ability to source products and services on acceptable terms or at all; the Corporation’s ability to retain key or qualified personnel, including those with specialized skills or knowledge; uncertainty relating to trade relations and associated supply disruptions; the effect of changes in government and actions taken by governments in jurisdictions in which the Corporation operates, including in the U.S.; the effect of climate change and related activism on our operations and ability to access capital and insurance; cyber security and other related risks; the Corporation’s ability to bid on new contracts and renew existing contracts; potential closure and post-closure costs associated with landfills operated by the Corporation; the Corporation’s ability to protect our proprietary technology and our intellectual property rights; legal proceedings and regulatory actions to which the Corporation may become subject, including in connection with any claims for infringement of a third parties’ intellectual property rights; the Corporation’s ability to meet its ESG targets or goals and the costs associated therewith; claims by, and consultation with, Indigenous Peoples in connection with project approval; disclosure controls and internal controls over financial reporting; and other risk factors identified in SECURE’s current annual information form and from time to time in filings made by the Corporation with securities regulatory authorities.

The guidance in respect of the Corporation’s expectations of Adjusted EBITDA and Discretionary Free Cash Flow in 2024 in this press release may be considered to be a financial outlook for the purposes of applicable Canadian securities laws. Such information is based on assumptions about future events, including economic conditions and proposed courses of action, based on management’s assessment of the relevant information currently available, and which may become available in the future. These projections constitute forward-looking statements and are based on several material factors and assumptions set out above. Actual results may differ significantly from such projections. See above for a discussion of certain risks that could cause actual results to vary. The financial outlook contained in this press release has been approved by management as of the date of this press release. Readers are cautioned that any such financial outlook contained herein should not be used for purposes other than those for which it is disclosed herein. SECURE and its management believe that the financial outlook contained in this press release has been prepared based on assumptions that are reasonable in the circumstances, reflecting management’s best estimates and judgments, and represents, to the best of management’s knowledge and opinion, expected and targeted financial results. However, because this information is highly subjective, it should not be relied on as necessarily indicative of future results.

Although forward-looking statements contained in this press release 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 press release are made as of the date hereof and are expressly qualified by this cautionary statement. Unless otherwise required by applicable securities laws, SECURE does not intend, or assume any obligation, to update these forward-looking statements.

ABOUT SECURE

SECURE is a leading waste management and energy infrastructure business headquartered in Calgary, Alberta. The Corporation’s extensive infrastructure network located throughout western Canada and North Dakota includes waste processing and transfer facilities, industrial landfills, metal recycling facilities, crude oil and water gathering pipelines, crude oil terminals and storage facilities. Through this infrastructure network, the Corporation carries out its principal business operations, including the processing, recovery, recycling and disposal of waste streams generated by our energy and industrial customers and gathering, optimization, terminalling and storage of crude oil and natural gas liquids. The solutions the Corporation provides are designed not only to help reduce costs, but also lower emissions, increase safety, manage water, recycle by-products and protect the environment.

SECURE’s shares trade under the symbol SES and are listed on the Toronto Stock Exchange. For more information, visit www.SECURE-energy.com.

TSX Symbol: SES

SOURCE SECURE Energy Services Inc.