Financial Results Webinar
Perth, Western Australia/August 6, 2025/ Perseus Mining Limited (ASX/TSX: PRU) is hosting an investor webinar and conference call to discuss its FY25 Results, which are anticipated for release around 8:30am AEST on Thursday August 28, 2025.
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Cision Canada
5 minutes ago
- Cision Canada
SPARTAN DELTA CORP. ANNOUNCES SECOND QUARTER 2025 RESULTS AND OPERATIONS UPDATE
CALGARY, AB, Aug. 6, 2025 /CNW/ - Spartan Delta Corp. (" Spartan" or the " Company") (TSX: SDE) is pleased to report its unaudited financial and operating results for the three and six months ended June 30, 2025. Selected financial and operational information is set out below and should be read in conjunction with Spartan's unaudited interim financial statements and related management's discussion and analysis (" MD&A") for the three and six months ended June 30, 2025, and 2024, which are filed on SEDAR+ at and are available on the Company's website at The highlights reported in this press release include certain non-GAAP financial measures and ratios which have been identified using capital letters. The reader is cautioned that these measures may not be directly comparable to other issuers; please refer to additional information under the heading "Reader Advisories – Non-GAAP Measures and Ratios". OPERATIONS UPDATE Spartan successfully completed its first half 2025 capital program, highlighting strong execution and operational discipline across its West Shale Basin Duvernay (the " Duvernay") and Deep Basin assets. In H1 2025, Spartan ran a four rig capital program, drilling 21.0 (17.1 net) wells, completing 15.0 (11.4 net) wells, and bringing on-stream 11.0 (8.6 net) wells. During the second quarter, the Company drilled 8.0 (7.3 net) wells, completed 10.0 (7.5 net) wells, and brought on-stream 6.0 (4.7 net) wells. Spartan is on course to meet its 2025 guidance of 40,000 BOE/d and is well-positioned for continued operational momentum entering the second half of 2025. With a strong balance sheet, disciplined capital allocation, significant liquids growth, and a deep inventory of locations, Spartan is committed to delivering significant value for shareholders while maintaining a responsible and sustainable development strategy. In the Duvernay, the Company contracted two rigs and drilled 12.0 (9.6 net) wells, completed 7.0 (4.9 net wells), and brought on-stream 3.0 (2.1 net) wells during H1 2025. In Q2 2025, Spartan drilled 6.0 (5.4 net) wells, completed 7.0 (4.9 net) wells, and brought on-stream 3.0 (2.1 net) wells, wine-racking in both the upper and lower Duvernay benches. The utilization of wine-racking well designs has the potential to significantly increase recoveries on the Company's acreage. 06-04-043-03W5 Pad Initial production results from 3.0 (2.1 net) wells have averaged IP30 rates of 1,261 BOE/d and 86% liquids per well (1,042 BBL/d of crude oil, 49 BBL/d of NGLs, and 1.0 MMcf/d of natural gas). 02-22-042-03W5 Pad Initial results from the Company's most recent 4.0 (2.8 net) wells are encouraging as production rates exceed internal expectations. Current field production estimates for the first 15 days are averaging greater than 1,600 BOE/d with more than 1,300 BBL/d of crude oil and NGLs per well. 07-15-044-03W5 Pad Spartan has commenced completions on 4.0 (4.0 net) wells. 04-20-041-03W5 Pad Spartan has begun drilling operations. In the second half of 2025, the Company anticipates drilling 5.0 (5.0 net) wells, completing 10.0 (10.0 net) wells, and bringing on-stream 14.0 (12.8 net) wells. Spartan's 2025 Duvernay program has benefited from a strong focus on reducing costs. These improvements stem from decreasing drilling and completion times, consistent frac placements, optimizing proppant tonnage, and reducing water usage. The Company is motivated to further reduce drilling and completion costs as it continues to build scale. Spartan's Duvernay results have exceeded internal expectations to date, underscoring the productivity and consistency of its acreage. Current Duvernay field production estimates are greater than 9,000 BOE/d (77% liquids), a 400% increase in production in twelve months. DEEP BASIN In the Deep Basin, the Company drilled 9.0 (7.5 net) wells and completed and brought on-stream 8.0 (6.5 net) wells during H1 2025. In Q2 2025, Spartan drilled 2.0 (1.9 net) wells and completed and brought on-stream 3.0 (2.6 net) wells. 08-21-045-11W5 & 10-20-043-09W5 Initial Spirit River production results averaged IP30 rates of 1,657 BOE/d and 25% liquids per well and IP90 rates of 1,254 BOE/d and 24% liquids per well. 03-07-045-09W5 Pad Initial production results from 3.0 (3.0 net) Cardium wells averaged IP30 rates of 482 BOE/d and 43% liquids per well and IP90 rates of 566 BOE/d and 42% liquids per well. 14-08-044-08W5 Pad Initial production results from 3.0 (3.0 net) Cardium wells are exceeding internal expectations, averaging IP30 rates of 1,203 BOE/d and 40% liquids per well. 15-25-044-09W5 Spirit River well is significantly exceeding internal expectations, with the well onstream for less than 30 days. In the second half of 2025, the Company anticipates drilling 10.0 (9.2 net) wells and completing and bringing on-stream 9.0 (8.2 net) wells, focusing on drilling liquid-rich targets in the Cardium, Spirit River, Rock Creek, Viking, Belly River, and Wilrich formations. The Deep Basin maintains the optionality to increase capital and accelerate drilling to capture the contango forward curve in natural gas prices as the asset benefits from reduced cycle times. SECOND QUARTER 2025 HIGHLIGHTS Spartan reported production of 38,513 BOE/d (36% liquids) during the second quarter of 2025. Spartan achieved a 151% increase in crude oil production as compared to the second quarter of 2024 and a 12% increase as compared to the first quarter of 2025. The Company's operations generated oil and gas sales of $81.0 million and Adjusted Funds Flow of $47.9 million ($0.23 per share, diluted) in the second quarter of 2025, a 29% increase from the second quarter of 2024, and a 5% increase from the first quarter of 2025. The Company successfully executed a capital program of $83.5 million in the second quarter of 2025, of which approximately 85% was spent on drilling, completing, equipping, and tie-ins. In the Duvernay, Spartan drilled 6.0 (5.4 net) wells, completed 7.0 (4.9 net) wells, and brought on-stream 3.0 (2.1 net) wells. In the Deep Basin, Spartan drilled 2.0 (1.9 net) wells and completed and brought on-stream 3.0 (2.6 net) wells. Spartan has accumulated approximately 365,000 net acres (570 net sections) in the Duvernay, a 52% increase from the second quarter of 2024 and a 14% increase from the first quarter of 2025. Spartan continues to maintain a strong statement of financial position with Net Debt of $123.7 million resulting in a 0.7X Net Debt to Annualized Adjusted Funds Flow ratio. Despite volatile commodity prices, Spartan has hedges in place for the remainder of 2025 greater than current strip. As at June 30, 2025, the Company has hedged 91,065 GJ/d of its natural gas production at an average price of $2.25/GJ and has hedged 2,700 bbl/d of its crude oil and condensate production at an average price of $99.75/bbl. The following table summarizes the Company's financial and operating results for the three and six months ended June 30, 2025, and June 30, 2024. (1) Refer to "Share Capital" section of this press release. (2) "Adjusted Funds Flow", "Free Funds Flow", "Capital Expenditures before A&D", "Adjusted Net Capital A&D", "Net Debt" and "Operating Netbacks" do not have standardized meanings under IFRS Accounting Standards, refer to "Non-GAAP Measures and Ratios" section of this press release. (3) Condensate is a natural gas liquid as defined by NI 51-101. See "Other Measurements". ABOUT SPARTAN DELTA CORP. Spartan is committed to creating value for its shareholders, focused on sustainability in both operations and financial performance. The Company's culture is centered on generating Free Funds Flow through responsible oil and gas exploration and development. The Company has established a portfolio of high-quality production and development opportunities in the Deep Basin and the Duvernay. Spartan will continue to focus on the execution of the Company's organic drilling program across its portfolio, delivering operational synergies in a respectful and responsible manner in relation to the environment and communities it operates in. The Company is well positioned to continue pursuing optimization in the Deep Basin, participate in the consolidation of the Deep Basin fairway, and continue growing and developing its Duvernay asset. Spartan's corporate presentation, as of August 6, 2025, can be accessed on the Company's website at Non-GAAP Measures and Ratios This press release contains certain financial measures and ratios which do not have standardized meanings prescribed by International Financial Reporting Standards (" IFRS Accounting Standards") or Generally Accepted Accounting Principles (" GAAP"). As these non-GAAP financial measures and ratios are commonly used in the oil and gas industry, Spartan believes that their inclusion is useful to investors. The reader is cautioned that these amounts may not be directly comparable to measures for other companies where similar terminology is used. The non-GAAP measures and ratios used in this press release, represented by the capitalized and defined terms outlined below, are used by Spartan as key measures of financial performance, and are not intended to represent operating profits nor should they be viewed as an alternative to cash provided by operating activities, net income or other measures of financial performance calculated in accordance with IFRS Accounting Standards. The definitions below should be read in conjunction with the "Non-GAAP Measures and Ratios" section of the Company's MD&A dated August 6, 2025, which includes discussion of the purpose and composition of the specified financial measures and detailed reconciliations to the most directly comparable GAAP financial measures. Operating Income and Operating Netback Operating Income, a non-GAAP financial measure, is a useful supplemental measure that provides an indication of the Company's ability to generate cash from field operations, prior to administrative overhead, financing, and other business expenses. " Operating Income, before hedging" is calculated by Spartan as oil and gas sales, net of royalties, plus processing and other revenue and net commodities purchased margin, less operating and transportation expenses. " Operating Income, after hedging" is calculated by adjusting Operating Income for realized gains or losses on derivative financial instruments. The Company refers to Operating Income expressed per unit of production as an " Operating Netback" and reports the Operating Netback before and after hedging, both of which are non-GAAP financial ratios. Spartan considers Operating Netback an important measure to evaluate its operational performance as it demonstrates its field level profitability relative to current commodity prices. Adjusted Funds Flow and Free Funds Flow Cash provided by operating activities is the most directly comparable measure to Adjusted Funds Flow. " Adjusted Funds Flow" is a non-GAAP financial measure reconciled to cash provided by operating activities by excluding changes in non-cash working capital, adding back transaction costs on acquisitions and dispositions, and deducting the principal portion of lease payments. Spartan utilizes Adjusted Funds Flow as a key performance measure in the Company's annual financial forecasts and public guidance. Transaction costs, which primarily include legal and financial advisory fees, regulatory and other expenses directly attributable to execution of acquisitions and dispositions, are added back because the Company's definition of Free Funds Flow excludes capital expenditures related to acquisitions and dispositions. For greater clarity, incremental overhead expenses related to restructuring following significant acquisition or divestitures are included in Spartan's general and administrative expenses. Lease liabilities are not included in Spartan's definition of Net Debt therefore lease payments are deducted in the period incurred to determine Adjusted Funds Flow. The Company refers to Adjusted Funds Flow expressed per unit of production as an " Adjusted Funds Flow Netback". " Free Funds Flow" is a non-GAAP financial measure calculated by Spartan as Adjusted Funds Flow less Capital Expenditures before A&D. Spartan believes Free Funds Flow provides an indication of the amount of funds the Company has available for future capital allocation decisions such as to repay current and long-term debt, reinvest in the business or return capital to shareholders. Adjusted Funds Flow per share Adjusted Funds Flow (" AFF") per share is a non-GAAP financial ratio used by the Company as a key performance indicator. AFF per share is calculated using the same methodology as net income per share (" EPS"), however the diluted weighted average common shares (" WA Shares") outstanding for AFF may differ from the diluted weighted average determined in accordance with IFRS Accounting Standards for purposes of calculating EPS due to non-cash items that impact net income only. The impact of stock options and share awards is more dilutive to AFF than EPS because the number of shares deemed to be repurchased under the treasury stock method is not adjusted for unrecognized share-based compensation expense as it is non-cash (see also, "Share Capital"). Capital Expenditures before A&D " Capital Expenditures before A&D" is a non-GAAP financial measure used by Spartan to measure its capital investment level compared to the Company's annual budgeted capital expenditures for its organic drilling program. It includes capital expenditures on exploration and evaluation assets and property, plant and equipment, before acquisitions and dispositions. The directly comparable GAAP measure to Capital Expenditures before A&D is cash used in investing activities. Adjusted Net Capital A&D " Adjusted Net Capital A&D" is a supplemental measure disclosed by Spartan which aggregates the total amount of cash, debt, and share consideration used to acquire crude oil and natural gas assets during the period, net of cash proceeds received on dispositions. The Company believes this is useful information because it is more representative of the total transaction value than the cash acquisition costs or total cash used in investing activities, determined in accordance with IFRS Accounting Standards. The most directly comparable GAAP measures are acquisition costs and disposition proceeds included as components of cash used in investing activities. Net Debt and Adjusted Working Capital References to " Net Debt" includes long-term debt under Spartan's revolving credit facility, net of Adjusted Working Capital. Net Debt and Adjusted Working Capital are both non-GAAP financial measures. " Adjusted Working Capital" is calculated as current assets less current liabilities, excluding derivative financial instrument assets and liabilities, lease liabilities, and current debt (if applicable). The Adjusted Working Capital deficit includes cash and cash equivalents, restricted cash, accounts receivable, prepaid expenses and deposits, accounts payable and accrued liabilities, dividends payable, and the current portion of decommissioning obligations. Spartan uses Net Debt as a key performance measure to manage the Company's targeted debt levels. The Company believes its presentation of Adjusted Working Capital and Net Debt are useful as supplemental measures because lease liabilities and derivative financial instrument assets and liabilities relate to contractual obligations for future production periods. Lease payments and cash receipts or settlements on derivative financial instruments are included in Spartan's reported Adjusted Funds Flow in the production month to which the obligation relates. Net Debt to Adjusted Funds Flow Ratio The Company monitors its capital structure using a " Net Debt to Adjusted Funds Flow Ratio", which is a non-GAAP financial ratio calculated as the ratio of the Company's Net Debt to its " Annualized Adjusted Funds Flow". Annualized Adjusted Funds Flow is calculated by multiplying Adjusted Funds Flow for the most recently completed quarter, normalized for significant non-recurring items, by a factor of four. OTHER MEASUREMENTS All dollar figures included herein are presented in Canadian dollars, unless otherwise noted. This press release contains various references to the abbreviation " BOE" which means barrels of oil equivalent. Where amounts are expressed on a BOE basis, natural gas volumes have been converted to oil equivalence at six thousand cubic feet (mcf) per barrel (bbl). The term BOE may be misleading, particularly if used in isolation. A BOE conversion ratio of six thousand cubic feet per barrel is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead and is significantly different than the value ratio based on the current price of crude oil and natural gas. This conversion factor is an industry accepted norm and is not based on either energy content or current prices. References to "oil" in this press release include light crude oil and medium crude oil, combined. National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities (NI 51-101) includes condensate within the product type of "natural gas liquids". References to "natural gas liquids" or "NGLs" include pentane, butane, propane, and ethane. References to "gas" or "natural gas" relates to conventional natural gas. References to "liquids" includes crude oil, condensate and NGLs. The Company has disclosed condensate as combined with crude oil and/or separately from other natural gas liquids in this press release since the price of condensate as compared to other natural gas liquids is currently significantly higher and the Company believes that this crude oil and condensate presentation provides a more accurate description of its operations and results. SHARE CAPITAL Spartan's common shares are listed on the Toronto Stock Exchange (" TSX") and trade under the symbol "SDE". The volume weighted average trading price of Spartan's common shares on the TSX was $3.12 for the three months ended June 30, 2025. Spartan's closing share price was $3.81 on June 30, 2025, compared to $3.45 on December 31, 2024. As of June 30, 2025, there were 200.1 million common shares outstanding. There are no preferred shares or special preferred shares outstanding. The table below summarizes the weighted average number of common shares outstanding (000s) used in the calculation of diluted EPS and diluted AFF per share: (1) AFF per share does not have a standardized meaning under IFRS Accounting Standards, refer to "Non-GAAP Measures and Ratios". FORWARD-LOOKING AND CAUTIONARY STATEMENTS Certain statements contained within this press release constitute forward-looking statements within the meaning of applicable Canadian securities legislation. All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "outlook", "anticipate", "budget", "plan", "endeavor", "continue", "estimate", "evaluate", "expect", "forecast", "monitor", "may", "will", "can", "able", "potential", "target", "intend", "consider", "focus", "identify", "use", "utilize", "manage", "maintain", "remain", "result", "cultivate", "could", "should", "believe" and similar expressions (or grammatical variations or negatives thereof). Spartan believes that the expectations reflected in such forward-looking statements are reasonable as of the date hereof, but no assurance can be given that such expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. Without limitation, this press release contains forward-looking statements pertaining to: the business plan, objectives, strategy of Spartan; continued optimization of its Deep Basin asset, participation in the consolidation of the Deep Basin fairway and advancing and accelerating its Duvernay strategy; the Company's drilling strategy in the Deep Basin; expected drilling and completions in the Duvernay; expectations that the utilization of wine-racking well designs will significantly increase recoveries on the Company's acreage; further reductions to drilling and completion costs as Spartan continues to build scale; Spartan's strategies to deliver strong, repeatable and economic operational performance and to generate significant shareholder returns; the ability of the Company to achieve drilling success consistent with management's expectations; being well positioned to take advantage of opportunities in the current business environment; risk management activities, including hedging; continuing to pursue immediate production optimization and responsible future growth with organic drilling, and continuing to execute on building an extensive position in the Duvernay. The forward-looking statements and information are based on certain key expectations and assumptions made by Spartan, including, but not limited to, expectations and assumptions concerning the business plan of Spartan, the timing of and success of future drilling, development and completion activities, the growth opportunities of Spartan's Duvernay acreage, the performance of existing wells, the performance of new wells, the availability and performance of facilities and pipelines, the geological characteristics of Spartan's properties, the successful application of drilling, completion and seismic technology, the Company's ability to secure sufficient amounts of water, prevailing weather conditions, prevailing legislation affecting the oil and gas industry, prevailing commodity prices, price volatility, future commodity prices, price differentials and the actual prices received for the Company's products (including pursuant to hedging arrangements), anticipated fluctuations in foreign exchange and interest rates, impact of inflation on costs, royalty regimes and exchange rates, the application of regulatory and licensing requirements, the availability of capital, labour and services, the creditworthiness of industry partners, general economic conditions, and the ability to source and complete acquisitions. Although Spartan believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information because Spartan can give no assurance that they will prove to be correct. By its nature, such forward-looking information is subject to various risks and uncertainties, which could cause the actual results and expectations to differ materially from the anticipated results or expectations expressed. These risks and uncertainties include, but are not limited to, fluctuations and volatility in commodity prices; changes in industry regulations and legislation (including, but not limited to, tax laws, royalties, and environmental regulations); the risk that the U.S. administration (i) maintains tariffs on Canadian goods, including crude oil and natural gas, (ii) increases the rate or scope of previously announced tariffs, or (iii) imposes new tariffs on the import of goods from Canada; the risk that the U.S. and/or Canada imposes any other form of tax, restriction or prohibition on the import or export of products from one country to the other, including crude oil and natural gas, and that such tariffs or other measures (and/or the Canadian government's response to such tariffs or other measures) adversely affect the Canadian, U.S., and global economies, and by extension the Canadian oil and natural gas industry and the Company; demand and/or market price for the Company's products and/or otherwise adversely affects the Company; changes in the political landscape both domestically and abroad, wars (including ongoing military actions in the Middle East and between Russia and Ukraine), hostilities, civil insurrections, foreign exchange or interest rates, increased operating and capital costs due to inflationary pressures (actual and anticipated), risks associated with the oil and gas industry in general, stock market and financial system volatility, impacts of pandemics, the retention of key management and employees, risks with respect to unplanned third-party pipeline outages and risks relating to inclement and severe weather events and natural disasters, including fire, drought, and flooding, including in respect of safety, asset integrity and shutting-in production. Please refer to Spartan's MD&A for the period ended June 30, 2025, and annual information form for the year ended December 31, 2024, for discussion of additional risk factors relating to the Company, which can be accessed either on Spartan's website at or under Spartan's SEDAR+ profile on Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date hereof, and to not use such forward-looking information for anything other than its intended purpose. Spartan undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law. This press release contains future-oriented financial information and financial outlook information (collectively, " FOFI") about Spartan's 2025 guidance, including prospective results of operations and production (including 2025 guidance of 40,000 BOE/d), operating costs, organic growth, capital efficiency improvements and components thereof, all of which are subject to the same assumptions, risk factors, limitations, and qualifications as set forth in the above paragraphs. FOFI contained in this document was approved by management as of the date of this document and was provided for the purpose of providing further information about Spartan's future business operations. Spartan and its management believe that FOFI has been prepared on a reasonable basis, reflecting management's best estimates and judgments, and represent, to the best of management's knowledge and opinion, the Company's expected course of action. However, because this information is highly subjective, it should not be relied on as necessarily indicative of future results. Spartan disclaims any intention or obligation to update or revise any FOFI contained in this document, whether as a result of new information, future events or otherwise, unless required pursuant to applicable law. Readers are cautioned that the FOFI contained in this document should not be used for purposes other than for which it is disclosed herein. Changes in forecast commodity prices, differences in the timing of capital expenditures, and variances in average production estimates can have a significant impact on the key performance measures included in Spartan's guidance. The Company's actual results may differ materially from these estimates. References in this press release to peak rates, peak sales production, initial production rates, IP30s, IP90s, test rates, and other short-term production rates are useful in confirming the presence of hydrocarbons, however such rates are not determinative of the rates at which such wells will commence production and decline thereafter and are not indicative of long-term performance or of ultimate recovery. While encouraging, readers are cautioned not to place reliance on such rates in calculating the aggregate production of Spartan. The Company cautions that such results should be considered preliminary. Peak rates are the highest average daily sales production rate for each well excluding clean-up and downtime. ABBREVIATIONS SOURCE Spartan Delta Corp.
Cision Canada
12 minutes ago
- Cision Canada
U.S. Secretary of Labor, Idaho Governor Visit Perpetua Resources to Discuss Stibnite Gold Project Importance to Securing U.S. Jobs and Critical Minerals
Stibnite Gold Project Listed as a White House Transparency Project Perpetua Anticipates 550+ Direct Jobs in Idaho during operations Perpetua Announces Stibnite Launch Scholarship with College of Western Idaho BOISE, Idaho, Aug. 6, 2025 /CNW/ - Today, U.S. Secretary of Labor Lori Chavez-DeRemer and Idaho Governor Brad Little met with Perpetua Resources Corp. (Nasdaq: PPTA) (TSX: PPTA) ("Perpetua Resources" or "Perpetua" or the "Company") in Valley County, Idaho to discuss the Stibnite Gold Project's strategic importance to the United States and Perpetua's plans to provide family-wage, in-demand jobs to rural Idaho during the construction and operations of the Stibnite Gold Project. During the visit, Perpetua Resources announced a new education and job training partnership with the College of Western Idaho (CWI). The Secretary's visit underscores the Trump administration's focus on domestic critical mineral projects that are essential to U.S. national security, like the Stibnite Gold Project. The Stibnite Gold Project is designed to restore the environment, provide family-wage jobs to rural Idaho, and produce gold and the critical mineral antimony. The Stibnite Gold Project, which was identified as a "Transparency Project" by the National Economic Development Council, is expected to provide the United States its only domestically mined source of the critical mineral antimony. Given antimony's essential role in hundreds of defense applications, the Department of Defense has granted Perpetua Resources more than $80 million to date to advance the Stibnite Gold Project. "Perpetua is committed to Idaho," said Jon Cherry, CEO of Perpetua Resources. "We want our project to benefit local communities, and one of the most tangible ways we can do that is by providing meaningful, well-paying careers. For years, we have been laying the foundation – providing internships, working with local schools and investing in career education for local students – and soon we intend to offer quality, family-wage jobs to hundreds of Idaho workers at the Stibnite Gold Project. It was a true honor to host U.S. Secretary of Labor Lori Chavez-DeRemer and Governor Brad Little and tell them about our efforts to bring jobs to rural Idaho." "The Stibnite Gold Project represents exactly the kind of American-led initiative we need to secure our critical mineral supply chains, strengthen national security, and create in-demand, mortgage-paying jobs," said Secretary Chavez-DeRemer. "Under President Trump's leadership, the U.S. Department of Labor is committed to working with employers like Perpetua to ensure they have the skilled workforce they need to ramp up domestic production. I'd like to thank Governor Little and Perpetua Resources for hosting me today and providing an update on this important project, which fulfills our mission to put American workers first." To advance Perpetua's commitment to hiring locally, during the Secretary and Governor's visit, Perpetua Resources announced the creation of the Stibnite Launch Scholarship to support CWI's Geosciences Department, helping prepare students with real-world, hands-on training for rewarding, high-skill jobs in Idaho's mining sector. Perpetua presented CWI with a $250,000 check to fund scholarships for 12 or more CWI Geosciences and Mining Technician students each year for the next three years and at least three students per year thereafter. "Partnerships like this between Idaho businesses and our higher education institutions mean we can keep jobs, economic benefits, and expertise right here in Idaho. I appreciate Perpetua Resources for its commitment to supporting students and families and strengthening rural Idaho," Governor Little said. Designed to complement the Idaho LAUNCH grant program, which provides students a one-time opportunity to have 80 percent of their tuition and fees covered at an eligible institution, the Stibnite Launch Scholarship can fund the remaining 20 percent of a CWI student recipient's tuition and fees, closing the funding gap and providing financial relief to [eligible students. "CWI is proud to be named the official education partner of Perpetua Resources," said CWI President Gordon Jones. "This partnership expands hands-on learning and workforce opportunities for our students, while also supporting the economic vitality of Idaho. By working together, we are preparing Idahoans for essential careers and ensuring our communities thrive for generations to come." Idaho LAUNCH was created by Governor Little in 2023 to help Idaho students receive the training they needed to fill rewarding, well-paying jobs in the state. To date, nearly 11,000 Idaho graduating high school seniors and over 10,000 adults have taken advantage of LAUNCH grants. During their visit, Secretary Chavez-DeRemer and Governor Little held a roundtable discussion with Perpetua Resources, project partners, and local education leaders to learn more about the opportunities mining is creating for Idahoans. Roundtable participants encouraged permitting reform to advance critical mining projects and pointed to LAUNCH as an essential program to advance Idaho's workforce readiness. Since her appointment as U.S. Secretary of Labor, Chavez-DeRemer has prioritized putting American workers first. As part of her "America at Work" listening tour, Secretary Chavez-DeRemer has traveled across the country to meet with American businesses and workers to identify the skills and training programs our country needs to power the economy. Her stop in Valley County, Idaho, demonstrates her ongoing commitment to understanding the labor needs of Idaho's rural workforce and underscores how the Stibnite Gold Project can fuel the region's economic success. About Perpetua Resources and the Stibnite Gold Project Perpetua Resources Corp., through its wholly owned subsidiaries, is focused on the exploration, site restoration and redevelopment of gold-antimony-silver deposits in the Stibnite-Yellow Pine district of central Idaho that are encompassed by the Stibnite Gold Project. The Stibnite Gold Project is one of the highest-grade, open pit gold deposits in the United States and is designed to apply a modern, responsible mining approach to restore an abandoned mine site and produce both gold and the only mined source of antimony in the United States. Antimony trisulfide from Stibnite is the only known domestic reserves of antimony that can meet U.S. defense needs for many small arms, munitions, and missile types. FORWARD-LOOKING INFORMATION Investors should be aware that the Stibnite Gold Project's designation as a Transparency Project does not imply endorsement of or support for the project by the federal government, or create a presumption that the Project will be approved, favorably reviewed by any agency, or receive federal funding. The designation of a project as a Transparency Project may be reconsidered based on updated information. Statements contained in this news release that are not historical facts are "forward-looking information" or "forward-looking statements" (collectively, "Forward-Looking Information") within the meaning of applicable Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. Forward-Looking Information includes, but is not limited to, disclosure regarding expected benefits from the Project, including providing a domestic source of antimony, local employment opportunities, national defense benefits and environmental benefits; expected benefits from the Stibnite Launch Program and other educational and training initiatives; and the number and nature of jobs expected to be created. In certain cases, Forward-Looking Information can be identified by the use of words and phrases or variations of such words and phrases or statements such as "anticipate", "expect", "plan", "likely", "believe", "intend", "forecast", "project", "estimate", "potential", "could", "may", "will", "would" or "should". Forward-Looking Information in this news release are based on certain material assumptions and involve, known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Perpetua Resources to be materially different from any future results, performance or achievements expressed or implied by the Forward-Looking Information. Such risks and other factors include those factors discussed in Perpetua Resources' public filings with the U.S. Securities and Exchange Commission (the "SEC") and its Canadian disclosure record. Although Perpetua Resources has attempted to identify important factors that could affect Perpetua Resources and may cause actual actions, events or results to differ materially from those described in Forward-Looking Information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that Forward-Looking Information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on Forward-Looking Information. For further information on these and other risks and uncertainties that may affect the Company's business, see the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of the Company's filings with the SEC, including Perpetua's Annual Report on Form 10-K filed with the SEC on March 19, 2025 and subsequent filings on Form 10-Q and Form 8-K, which are available at and with the Canadian securities regulators, which are available at Except as required by law, Perpetua Resources does not assume any obligation to release publicly any revisions to Forward-Looking Information contained in this news release to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. SOURCE Perpetua Resources Corp.
National Post
an hour ago
- National Post
STEP Energy Services Ltd. Reports Second Quarter 2025 Results
Article content CALGARY, Alberta — STEP Energy Services Ltd. (the 'Company' or 'STEP') (TSX: STEP) is pleased to announce its financial and operating results for the three and six months ended June 30, 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 June 30, 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 including the Company's Annual Information Form for the year ended December 31, 2024 dated March 11, 2025 (the 'AIF'). Article content Article content FINANCIAL REVIEW Article content ($000s except percentages and per share amounts) Three months ended Six months ended June 30, June 30, June 30, June 30, 2025 2024 2025 2024 Consolidated revenue $ 228,003 $ 231,375 $ 535,744 $ 551,521 Net income $ 5,853 $ 10,469 $ 30,004 $ 51,826 Per share-basic $ 0.08 $ 0.15 $ 0.42 $ 0.72 Per share-diluted $ 0.08 $ 0.14 $ 0.41 $ 0.70 Adjusted EBITDA (1) $ 34,769 $ 41,692 $ 93,729 $ 112,827 Adjusted EBITDA % (1) 15% 18% 17% 20% Free Cash Flow (1) $ 17,327 $ 20,460 $ 49,499 $ 73,943 Per share-basic (1) $ 0.24 $ 0.29 $ 0.69 $ 1.03 Per share-diluted (1) $ 0.24 $ 0.28 $ 0.67 $ 1.00 (1) Adjusted EBITDA, Free Cash Flow, Free Cash Flow per share-basic and Free Cash Flow per share-diluted are non-IFRS financial measures, Adjusted EBITDA % is a non-IFRS financial ratio. These metrics are not defined and have no standardized meaning under IFRS. See Non-IFRS Measures and Ratios. Article content ($000s except shares) June 30, December 31 2025 2024 Cash and cash equivalents $ 3,230 $ 4,362 Working capital (including cash and cash equivalents) (2) $ 76,992 $ 35,355 Total assets $ 613,516 $ 580,635 Total long-term financial liabilities (2) $ 69,713 $ 83,394 Net Debt (2) $ 43,912 $ 52,668 Shares outstanding 72,873,113 72,037,391 (2) Working Capital, Total long-term financial liabilities and Net Debt are non-IFRS financial measures. They are not defined and have no standardized meaning under IFRS. See Non-IFRS Measures and Ratios. Article content OPERATIONAL REVIEW Article content ($000s except days, proppant, pumped, horsepower and units) Three months ended Six months ended June 30, June 30, June 30, June 30, 2025 2024 2025 2024 Fracturing services Fracturing operating days (1)(2) 312 377 799 944 Proppant pumped (tonnes) (3) 533,000 638,000 1,319,000 1,470,000 Fracturing crews 6 8 6 8 Dual fuel horsepower ('HP'), end of period 369,550 349,800 369,550 349,800 Total HP, end of period 478,400 490,000 478,400 490,000 Coiled tubing services Coiled tubing operating days (1) 1,227 1,368 2,611 2,720 Active coiled tubing units, end of period 21 23 21 23 Total coiled tubing units, end of period 35 35 35 35 (1) An operating day is defined as any coiled tubing or fracturing work that is performed in a 24-hour period, exclusive of support equipment. (2) Includes operational results from terminated operations of the U.S. fracturing cash generating unit ('CGU') of nil and 54 days for the three and six months ended June 30, 2025 (72 and 189 days for three and six months ended June 30, 2024). (3) Includes proppant pumped (tonnes) from terminated operations of the U.S. fracturing cash generating unit ('CGU') of nil and 155,330 for the three and six months ended June 30, 2025 (137,000 and 409,000 for three and six months ended June 30, 2024). Article content SECOND QUARTER 2025 HIGHLIGHTS Article content Consolidated revenue for the three months ended June 30, 2025 of $228.0 million, was in line with revenue of $231.4 million for the three months ended June 30, 2024 and down 26% from $307.7 million for the three months ended March 31, 2025, which is typically the busiest quarter for the Company and the industry. Net income for the three months ended June 30, 2025 was $5.9 million ($0.08 per diluted share) compared to $10.5 million ($0.14 per diluted share) in the same period of 2024 and $24.2 million ($0.33 per diluted share) for the three months ended March 31, 2025. Included in net income for three months ended June 30, 2025 was share based compensation expense of $1.7 million, compared to $1.3 million during the three months ended March 31, 2025 and $2.1 million during the three months ended June 30, 2024. For the three months ended June 30, 2025, Adjusted EBITDA was $34.8 million (15% of revenue) compared to $41.7 million (18% of revenue) in Q2 2024 and $59.0 million (19% of revenue) in Q1 2025. Free Cash Flow for the three months ended June 30, 2025 was $17.3 million compared to $20.5 million in Q2 2024 and $32.2 million in Q1 2025. During the second quarter of 2025, STEP repurchased and cancelled 166,100 shares at an average price of $3.90 per share under its Normal Course Issuer Bid ('NCIB'). STEP continues to strengthen its balance sheet while investing into the long-term sustainability of the business: The Company had Net Debt of $43.9 million at June 30, 2025, compared to $52.7 million at December 31, 2024 and $84.7 million at March 31, 2025. The Company invested $13.5 million for the three months ended June 30, 2025 into sustaining and optimization capital budget expenditures, ensuring that the fleet maintains a high level of operational readiness while also selectively investing into technology to further STEP's strategy of displacing diesel with natural gas. Working Capital as at June 30, 2025 of $77.0 million was $41.6 million higher than the $35.4 million at December 31, 2024 and $26.5 million lower than the $103.5 million as at March 31, 2025. Working capital fluctuations are typical and are influenced by activity levels and timing of client receipts. Article content SECOND QUARTER 2025 OVERVIEW Article content Commodity prices were volatile throughout the second quarter of 2025, with both oil and natural gas prices down approximately 10% quarter over quarter. The decline in gas prices is partially attributable to the shoulder season, when the reduced demand from winter heating has yet to be replaced by power demand for summer cooling. In addition to the ongoing turmoil created by the U.S. tariffs, oil prices were also impacted by the supply announcements from the Organization of the Petroleum Exporting Countries ('OPEC') and allied non-OPEC nations ('OPEC+') and the eruption of open hostilities between Israel and Iran. Oil prices traded in a wide range from $57 to $75 (USD) per barrel, with the benchmark West Texas Intermediate ('WTI') crude price averaging $63.72 (USD) per barrel in Q2 2025, down from $71.42 (USD) per barrel in Q1 2025. Henry Hub averaged $3.52 (USD) per million cubic feet ('Mcf') in Q2 2025, down from $3.87 (USD) per Mcf in Q1 2025, while AECO-C Daily averaged $1.75 (CAD) per Mcf in Q2 2025, down from $2.12 (CAD) per Mcf in Q1 2025. Natural gas prices typically benefit from the winter heating season, with colder weather driving higher demand. Article content 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. averaged 556 rigs in the second quarter, down from 572 rigs in the first quarter. Canadian rig counts were down due to spring break up, averaging 127 during the second quarter, compared to 214 in the first quarter, which is typically the busiest drilling season in Canada. U.S. fracturing fleets declined in the second quarter to an average of 192, down from 202 in the first quarter of 2025. Article content STEP's consolidated revenue in the second quarter was $228.0 million, down from $307.7 million in the first quarter of 2025 and in line with the $231.4 million recorded in the same period from the prior year despite the termination of the U.S. fracturing business. Despite the spring break up conditions, the fracturing service line had good utilization through the quarter, with 312 operating days across six crews, pumping 533 thousand tons of sand. Coiled tubing services were also well utilized, operating 1,227 days across 21 units. Article content Adjusted EBITDA of $34.8 million (15% Adjusted EBITDA %) was down from the $59.0 million (19% Adjusted EBITDA %) in the first quarter of 2025 and down from $41.7 million (18% Adjusted EBITDA %) in the same period last year. The Company's margins continue to be impacted by the cumulative effect of several years of high inflation which increase the cost profile, oversupply of fracturing capacity in the market causing pricing pressure, and increased sand volumes which are generally at lower margins. Article content Net income was $5.9 million in Q2 2025 ($0.08 diluted income per share), lower than the $24.2 million in Q1 2025 ($0.33 diluted income per share) and the $10.5 million net income in Q2 2024 ($0.14 diluted income per share). Net income included $1.7 million in share‐based compensation expense (Q1 2025 ‐ $1.3 million, Q2 2024 ‐ $2.1 million expense) and $1.7 million in finance costs (Q1 2025 ‐ $2.0 million, Q2 2024 ‐ $2.8 million). Article content Free Cash Flow was $17.3 million in Q2 2025 ($0.24 diluted Free Cash Flow per share), sequentially lower than the $32.2 million ($0.43 diluted Free Cash Flow per share) in Q1 2025 and lower than the $20.5 million ($0.28 diluted Free Cash Flow per share) in Q2 2024. While working capital decreased by $26.5 million from the first quarter of 2025 to land at $77.0 million at the end of the second quarter, this was still significantly higher than the $35.4 million at the end of the fourth quarter of 2024. While the build in working capital is typical for the first half of the year, which follows a slower Q4 that realizes a sizable working capital recovery, the increase in the current year was inflated by the inclusion of $11.4 million in assets held for sale reclassified from property and equipment related to the terminated U.S. fracturing operations. Net Debt decreased to $43.9 million from $52.7 million at the close of 2024. The decrease in Net Debt and improvement in Adjusted EBITDA resulted in a 12-month trailing Funded Debt to Adjusted Bank EBITDA of 0.42:1.00, well under the limit of 3.00:1 in the Company's Credit Facilities (as defined in Capital Management – Debt below). The Company continued its Normal Course Issuer Bid in the second quarter and acquired 166,100 shares at a weighted average price of $3.90 per share in the quarter. Article content Late in the first quarter of 2025, management committed to a plan to terminate the Company's U.S. fracturing operations. Active operations were terminated and equipment has been marshalled to STEP's yards for sale or transfer to Canada. Certain costs associated with legacy fracturing operations and decommissioning were incurred in the second quarter, resulting in Adjusted EBITDA from terminated operations of negative $2.9 million, which is not included in the Q2 reported Adjusted EBITDA of $34.8 million. These costs are expected to reduce to more modest levels for the balance of the year. Article content Market Outlook Article content The initial uncertainty stemming from the decisions made by the U.S. administration has lessened as markets discover that the tactical nature of these decisions means that they are likely to change through the course of negotiations. Similarly, the geopolitical tensions created by the conflict in the Middle East have also eased as the primary actors have backed away from deeper confrontation. Commodity prices continue to look for direction, drifting sideways until a clear catalyst for growth or recession becomes apparent. Article content North American gas prices are shifting from the shoulder season in Q2 to the more pronounced summer power demand season, although high storage levels will limit upside to price until the anticipated draw from new LNG offtake facilities begins to be felt in the markets. Canada's first shipment of liquified natural gas ('LNG') departed the LNG Canada facility on June 30, 2025, marking the successful start of operations for Canada's first large scale LNG export facility. The multiyear outlook for natural gas continues to show promise, with approximately 10 billion cubic feet ('BCF') per day of demand from additional LNG facilities in Canada and the U.S. expected by 2030, in addition to the demand for more power generation. Article content Oil prices have retreated from the second quarter spikes back to the mid $60s (USD) per barrel. Demand has remained relatively resilient, absorbing the additional OPEC+ supply that has been added to the market this year. Global crude oil and related product inventory levels are near the bottom of their five-year range, providing some buffer in the event that demand from the summer driving season isn't enough to consume supply. Oil demand is expected to grow modestly, but catalysts for increased oil production in North America are limited, given the global market dynamics. Article content 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 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. Article content The third quarter fracturing schedule is expected to see a modest uptick in activity, although more client supplied sand, along with shifting client schedules and competitive pressures will likely result in flat to down sequential revenue. Margins on work with client supplied sand are typically higher relative to margins on work with STEP supplied sand, given the high volumes of sand pumped by many STEP clients. Offsetting this higher margin work is inflation on input costs, driven in many instances by the escalating tariff actions taken by governments around the world. The remission of tariffs on proppant imported from the U.S. provides some relief, but the ongoing tariffs on many products entering the U.S. and Canada are resulting in cost inflation that can be difficult to pass through to clients. STEP's trial of the NGx, Canada's first 100% natural gas powered fracturing pump is expected to see steady utilization as clients respond positively to the increased diesel displacement that this pump offers. Article content Coiled tubing activity is expected to stay relatively steady across all regions, with a slight increase in activity relative to the second quarter. Increased market penetration with STEP's Coil+ split string technology is expected to offset the lower industry demand associated with a slowing rig count. Similar to fracturing, tariffs continue to impact the industry, particularly on the cost of coiled tubing strings, which is tariffed when it enters the U.S. as raw steel and then again when it enters Canada and is tariffed by the Canadian government. STEP has submitted a request for remission of the Canadian tariffs and is optimistic that it will be successful given the recent reversal of tariffs on proppant entering Canada. Article content Expectations for the fourth quarter remain 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 slower than expected ramp in demand coming from newly commissioned LNG facilities in Canada and the U.S. is limiting drawdown of natural gas inventories and is not expected to create sufficient market incentive for producers to add to their capital budgets for the year. Further clarity on this is likely to be forthcoming late in the third quarter or early in the fourth quarter. Article content Views on 2026 are beginning to clarify, with activity in the first quarter expected to be in line with the first quarter of 2025. Activity levels through the year will likely be affected by the ramp in production at LNG Canada, which will process approximately 2 BCF per day when fully operational. On balance, 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 remains a focus for STEP as it navigates the current economic uncertainty. Article content Free Cash Flow will be committed towards additional fleet investments required for sustaining and optimization needs, as well as additional debt repayment. The increase in STEP's share price and the cautious outlook meant that the NCIB was used only sparingly in the second quarter. The Company will retain the flexibility to engage opportunistically on the NCIB if conditions change. Article content FINANCIAL REVIEW Article content ($000's except per share amounts) Three months ended Six months ended June 30, June 30, June 30, June 30, 2025 2024 2025 2024 Fracturing $ 153,480 $ 147,742 $ 377,579 $ 384,084 Coiled tubing 74,523 83,633 158,165 167,437 Total revenue 228,003 231,375 535,744 551,521 Operating expenses 187,431 180,936 426,785 411,045 Depreciation and amortization 20,169 26,125 40,788 46,623 Total operating expenses 207,600 207,061 467,573 457,668 Gross profit 20,403 24,314 68,171 93,853 Selling, general and administrative 10,418 10,831 22,204 22,175 Depreciation and amortization 122 154 259 314 Total selling, general and administrative 10,540 10,985 22,463 22,489 Results from operating activities 9,863 13,329 45,708 71,364 Finance costs 1,732 2,771 3,710 5,680 Foreign exchange (gain) loss (2,310) (300) (1,908) 2,017 Unrealized loss (gain) on derivatives 685 (684) 659 (2,667) Gain on disposal of property and equipment (468) (2,806) (1,202) (3,164) Amortization of intangible assets 77 10 215 20 Income before income tax 10,147 14,338 44,234 69,478 Income tax expense 4,294 3,869 14,230 17,652 Net income 5,853 10,469 30,004 51,826 Net Income per share – basic $ 0.08 $ 0.15 $ 0.42 $ 0.72 Net Income per share – diluted $ 0.08 $ 0.14 $ 0.41 $ 0.70 Adjusted EBITDA (1) $ 34,769 $ 41,692 $ 93,729 $ 112,827 Adjusted EBITDA % (1) 15% 18% 17% 20% (1) Adjusted EBITDA is a non-IFRS financial measure and Adjusted EBITDA % is a non-IFRS financial ratio. They are not defined and have no standardized meaning under IFRS. See Non-IFRS Measures and Ratios. Article content Revenue Article content For the three and six months ended June 30, 2025, revenue decreased 1% to $228.0 million and 3% to $535.7 million compared to $231.4 million and $551.5 million for the three and six months ended June 30, 2024. Article content Alignment with large scale operators continues to provide a strong baseline of utilization for fracturing and coiled tubing operations in both the quarter and for the year to date. STEP operated six fracturing crews during the quarter, down from eight for the same period of the prior year. Fracturing operating days for the quarter were down 17% and have decreased by 15% for the year to date. The reduction in fracturing crews and operating days is all associated with the termination of U.S. fracturing operations during 2025. Despite the declines in operating days and active fleets, fracturing revenue was up 4% for the quarter and only declined by 2% for the year to date reflecting the increased proppant pumped for the Canadian Frac CGU as a result of higher pumping intensity. Article content STEP deactivated one coiled tubing spread during the quarter bringing the total active spreads back down to 21 which is down two spreads from the prior year. Coiled tubing operating days for the quarter were down 10% and have decreased by 4% for the year to date. New technology offerings and strategic client alignment in all operating basins have allowed the Company to maintain utilization levels per active spread despite the decrease in activity in the market as whole. Article content Operating expenses Article content 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: Article content Employee costs and general operating expenses decreased slightly compared to the prior year for both the quarter and year to date as the wind down of U.S. fracturing operations was partially offset by inflationary impacts. Article content Material and inventory costs increased significantly compared to the prior year for both the quarter and year to date as changes in sand mix, increases in STEP supplied sand and currency fluctuations increased the cost of materials. Article content Selling, general and administrative expenses Article content The following table provides a summary of selling, general and administrative expenses: Article content Selling, general and administrative expenses were in line with the prior year for both the quarter and year to date. Share-based compensation expense was slightly lower in the second quarter of 2025 compared to the same period of 2024 as the share price was lower, however this was largely offset by higher employee costs. For the year to date, the higher employee costs in 2025 compared to the prior year have been largely offset by reduced general expenses. Article content Terminated Operations Article content 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 decided to exit this market and terminated all further work related to these operations. The results of the terminated operations are as follows: Article content ($000's) Three months ended Six months ended June 30, June 30, June 30, June 30, 2025 2024 2025 2024 U.S. Fracturing services terminated operations Fracturing operating days (1) – 72 54 189 Proppant pumped (tonnes) – 137,000 155,330 409,000 Fracturing crews – 2 – 2 (1) An operating day is defined as any coiled tubing or fracturing work that is performed in a 24-hour period, exclusive of support equipment. Article content NON-IFRS MEASURES AND RATIOS Article content 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. Article content '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, unrealized (gain) loss on derivatives, 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. Article content 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 2025. 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. Article content The following table presents a reconciliation of the non-IFRS financial measure of Adjusted EBITDA to the IFRS financial measure of net income: Article content (1) Article content 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: Article content ($000s except percentages) Three months ended Six months ended June 30, June 30, June 30, June 30, 2025 2024 2025 2024 Net loss from terminated U.S. fracturing operations, net of taxes $ (4,976) $ (8,839) $ (9,009) $ (7,621) Add (deduct): Depreciation and amortization 2,351 11,966 5,842 18,528 Gain on disposal of equipment (289) (1,792) (675) (1,883) Finance costs 65 151 93 293 Income tax recovery – (1,568) – (1,100) Share-based compensation – equity settled (88) 55 (258) 154 Adjusted EBITDA from terminated operations $ (2,937) $ (27) $ (4,007) $ 8,371 Article content '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. Article content '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. Article content '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. Article content '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. Article content The following table represents the composition of the non-IFRS financial measure of Working Capital (including cash and cash equivalents). Article content The following table presents the composition of the non-IFRS financial measure of Total long-term financial liabilities. Article content The following table presents the composition of the non-IFRS financial measure of Net Debt. Article content RISK FACTORS AND RISK MANAGEMENT Article content 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 ' Risk Factors ' in the AIF and ' Risk Factors and Risk Management ' in the Annual MD&A, both of which are available on 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. Article content FORWARD-LOOKING INFORMATION & STATEMENTS Article content 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. Article content 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 favorable; 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 and fracturing 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. Article content 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; 2025 and 2026 activity levels; the effect of tariffs, trade barriers, and related market concerns; levels of oil and gas production and LNG demand and 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; actual performance and availability 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 expected receipt of tax amounts previously paid by the Company; 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. Article content 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. Article content 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. Article content 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. Article content As at June 30, December 31, Unaudited (in thousands of Canadian dollars) 2025 2024 ASSETS Current Assets Cash and cash equivalents $ 3,230 $ 4,362 Trade and other receivables 147,414 82,769 Income tax receivable 496 – Inventory 43,142 49,546 Prepaid expenses and deposits 3,409 8,430 Assets held for sale 14,922 – 212,613 145,107 Property and equipment 377,438 402,419 Right-of-use assets 22,521 27,539 Intangible assets 944 1,159 Other assets – 4,411 $ 613,516 $ 580,635 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Trade and other payables $ 118,074 $ 86,208 Current portion of lease obligations 8,588 9,726 Income tax payable 4,829 8,280 Current portion of other liabilities 4,130 5,538 135,621 109,752 Lease obligations 14,470 18,021 Other liabilities 8,935 8,652 Deferred tax liabilities 17,482 16,963 Loans and borrowings 46,308 56,721 222,816 210,109 Shareholders' equity Share capital 448,075 447,987 Contributed surplus 39,264 40,471 Accumulated other comprehensive income 17,924 26,635 Deficit (114,563) (144,567) 390,700 370,526 $ 613,516 $ 580,635 Article content For the three months ended June 30, For the six months ended June 30, Unaudited (in thousands of Canadian dollars, except per share amounts) 2025 2024 2025 2024 Revenue $ 228,003 $ 231,375 $ 535,744 $ 551,521 Operating expenses 207,600 207,061 467,573 457,668 Gross profit 20,403 24,314 68,171 93,853 Selling, general and administrative expenses 10,540 10,985 22,463 22,489 Results from operating activities 9,863 13,329 45,708 71,364 Finance costs 1,732 2,771 3,710 5,680 Foreign exchange (gain) loss (2,310) (300) (1,908) 2,017 Unrealized loss (gain) on derivatives 685 (684) 659 (2,667) Gain on disposal of property and equipment (468) (2,806) (1,202) (3,164) Amortization of intangible assets 77 10 215 20 Income before income tax 10,147 14,338 44,234 69,478 Income tax expense (recovery) Current 5,540 4,438 14,692 17,328 Deferred (1,246) (569) (462) 324 Total income tax expense 4,294 3,869 14,230 17,652 Net income 5,853 10,469 30,004 51,826 Other comprehensive income Foreign currency translation (loss) gain (8,726) 2,366 (8,711) 7,386 Total comprehensive (loss) income $ (2,873) $ 12,835 $ 21,293 $ 59,212 Net income per share: Basic $ 0. 08 $ 0.15 $ 0. 42 $ 0.72 Diluted $ 0. 08 $ 0.14 $ 0. 41 $ 0.70 Article content CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS Article content For the three months ended June 30, For the six months ended June 30, Unaudited (in thousands of Canadian dollars) 2025 2024 2025 2024 Operating activities: Net income $ 5,853 $ 10,469 $ 30,004 $ 51,826 Adjusted for the following: Depreciation and amortization 20,368 26,289 41,262 46,957 Share-based compensation expense 1,678 2,058 2,967 2,898 Unrealized foreign exchange (gain) loss (1,633) (731) (1,264) 1,474 Unrealized loss (gain) on derivatives 685 (684) 659 (2,667) Gain on disposal of property and equipment (468) (2,806) (1,202) (3,164) Finance costs 1,732 2,771 3,710 5,680 Income tax expense 4,294 3,869 14,230 17,652 Income taxes paid (5,073) (5,844) (18,764) (15,261) Cash finance costs paid (1,358) (2,390) (2,940) (5,416) Funds flow from operations 26,078 33,001 68,662 99,979 Changes in non-cash working capital from operating activities 34,686 35,262 (23,568) (21,474) Net cash provided by operating activities 60,764 68,263 45,094 78,505 Investing activities: Purchase of property and equipment (13,477) (26,434) (29,644) (56,969) Proceeds from disposal of equipment and vehicles 186 4,420 692 4,432 Changes in non-cash working capital from investing activities (3,924) (7,471) 667 (704) Net cash used in investing activities (17,215) (29,485) (28,285) (53,241) Financing activities: Repayment of loans and borrowings (38,907) (36,547) (9,298) (10,777) Repayment of obligations under finance lease (2,500) (2,963) (4,988) (5,345) Common shares repurchased (708) (3,669) (3,446) (7,951) Net cash used in financing activities (42,115) (43,179) (17,732) (24,073) Impact of exchange rate changes on cash and cash equivalents (220) (71) (209) (21) Increase (decrease) in cash and cash equivalents 1,214 (4,472) (1,132) 1,170 Cash and cash equivalents, beginning of the period 2,016 7,427 4,362 1,785 Cash and cash equivalents, end of the period $ 3,230 $ 2,955 $ 3,230 $ 2,955 Article content STEP will host a conference call on Thursday, August 7, 2025 at 9:00 a.m. MT to discuss the results for the second quarter. Article content To listen to the webcast of the conference call, please click on the following URL: You can also visit the Investors section of our website at and click on 'Reports, Presentations & Key Dates'. Article content 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 Second Quarter 2025 Earnings Results Conference Call' Article content The conference call will be archived on STEP's website at 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. Article content 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. Article content Article content Article content Article content Contacts Article content For more information please contact: Article content Article content Steve Glanville Article content Article content President and Chief Executive Officer Article content Article content Telephone: 403-457-1772 Article content Klaas Deemter Chief Financial Officer Telephone: 403-457-1772
