News Releases

• Delivered a strong quarter with Q4 2022 Adjusted EBITDA¹ of $150 million or $0.48 per basic share¹, up 33% from Q4 2021, resulting in a record $557 million Adjusted EBITDA in 2022, up 95% from 2021
• Recorded net income of $32 million or $0.10 per share in Q4 2022 and $184 million or $0.59 per share in 2022
• Increased funds flow from operations to $84 million in Q4 2022 and $403 million in 2022, up 56% and 129% from the respective 2021 comparative periods
• Generated $74 million of discretionary free cash flow¹, up 57% from Q4 2021. In 2022, SECURE generated $348 million of discretionary free cash flow, up 104% from 2021, which was primarily used to repay debt
• Improved our capital structure with the repurchase of an additional US$58 million principal amount of 11% 2025 senior secured notes. At the end of 2022, US$162 million remains outstanding, a principal reduction of over 67% since the assumption of the notes in July 2021
• Improved our Total Debt to EBITDA² covenant ratio to 1.9x and ended the year with principal debt of $911 million, nearing the midpoint of our $850-$950 million principal debt target
• Paid our first increased quarterly dividend of $0.10 per common share in January 2023
• Repurchased and cancelled 5,932,800 common shares at a weighted average price per share of $7.78 for a total of $46 million since the commencement of the Normal Course Issuer Bid ("NCIB") in December 2022
• Commenced construction of a commercially backed pipeline tie-in and terminalling infrastructure in the Clearwater region
• Appointed former Pembina Pipeline Corporation CEO Mick Dilger to the Board of Directors and as Chairman of the Board effective January 5, 2023

CALGARY, AB, March 2, 2023 /CNW/ - SECURE ENERGY Services Inc. ("SECURE" or the "Corporation") (TSX: SES) reported the Corporation's operational and financial results for the three and twelve months ended December 31, 2022.

"Strong fourth quarter results capped off a record year from both an operational and financial perspective for SECURE as we completed the integration of Tervita," said Rene Amirault, Chief Executive Officer of SECURE. "The enhanced scale of our business has better positioned us to serve our customers, optimize existing infrastructure assets and operations and drive greater discretionary free cash flow to the bottom line. In 2022, we generated discretionary free cash flow of $348 million, which we directed primarily towards the repayment of debt, bringing our Total Debt to EBITDA covenant ratio from 3.4x at the beginning of 2022 to 1.9x at December 31, 2022. I couldn't be prouder of our hard-working employees who carried out the final stages of the integration while continuing to provide best-in-class customer service.

"With our improved balance sheet, we are balancing our go-forward priorities between continuing to reduce our absolute debt balance, returning cash to shareholders, and allocating funds to incremental growth opportunities that provide reliable volumes and recurring cash flows. Since the commencement of our NCIB in December 2022, we have been able to deliver increased returns to shareholders through the repurchase and cancellation of 1.9% of our outstanding common shares. We were also pleased to pay an increased quarterly dividend of $0.10 per share in January 2023, representing a current annual yield of 4.7% on our common shares. This increased dividend is sustainable ­ ̶   in 2023, we will spend approximately 35% of trailing twelve month discretionary free cash flow on dividend payments  ­̶  providing room for growth in future years.

"Looking forward, we expect a supportive macro environment which will continue to showcase the underlying strength of our business, as growing production in most of our operating areas support higher volumes across our existing network of infrastructure. We are also excited to expand our footprint in 2023 with new customer-backed facility infrastructure in the Clearwater region, an area that has seen oil production grow from zero to nearly 100,000 barrels a day over the last five years.

"We are also pleased to have Mick Dilger join our Board of Directors and serve as our new Chairman of the Board. As the former CEO of Pembina Pipeline Corporation from 2014 to 2021, Mick created tremendous shareholder value during his tenure. SECURE will benefit from his deep knowledge of Western Canadian infrastructure and his commitment to our environment, social, and governance values."

The Corporation's operating and financial highlights for the three and twelve months ended December 31, 2022 and 2021 can be summarized as follows:

FOURTH QUARTER HIGHLIGHTS

• Revenue (excluding oil purchase and resale) of $401 million - an increase of 23% compared to the fourth quarter of 2021 with Midstream Infrastructure revenue (excluding oil purchase and resale) increasing by $31 million to $169 million and Environmental and Fluid Management revenue increasing by $43 million to $232 million for the quarter. These increases were primarily due to an increase in energy-related volumes and reclamation trends. Higher crude oil pricing in the fourth quarter of 2022 also positively impacted recovered oil revenue and contributed to the increase in oil purchase and resale revenue which increased by 60% to $1.6 billion compared to the comparative 2021 period. In the Environmental and Fluid Management segment, increased industry activity led to higher volumes in industrial landfills, demand for drilling, completion and production optimization infrastructure underpinned by an approximate 36% increase in the average active rig count compared to the fourth quarter of 2021.
• Net income attributable to shareholders of $32 million and $0.10 per share - an increase of $198 million or $0.64 per share compared to the fourth quarter of 2021, as general industry conditions stayed strong supporting higher gross margins. Net income in the fourth quarter of 2021 included a $247 million non-cash impairment charge attributable to the suspension or closure of facilities to achieve the integration cost savings related to the Tervita merger.
• Adjusted EBITDA of $150 million and $0.48 per basic share - increases of 35% and 33% compared to the fourth quarter of 2021, driven by stronger energy, environmental and industrial markets. Despite extreme cold weather during the quarter, our infrastructure continued to receive higher processing, recovery, terminalling, and pipeline volumes.
• Adjusted EBITDA margin¹ of 37% - increased from 34% in the fourth quarter of 2021, due to the higher volumes and higher revenue contributing to improved fixed cost absorption, particularly in the service lines impacted by increased drilling and completion activity during the quarter. Additionally, integration cost savings as a result of the Tervita merger have contributed to a higher Adjusted EBITDA margin during the quarter.
• Funds flow from operations of $84 million - an increase of $30 million from the prior year comparative period, or 50% on a per basic share basis, driven by the increase in Adjusted EBITDA.
• Discretionary free cash flow of $74 million - which was used primarily to repurchase a portion of SECURE's 2025 senior secured 11% notes, pay costs related to the Tervita merger, fund growth capital and repurchase shares under the NCIB. 
• Improved our Total Debt to EBITDA covenant ratio to 1.9x - Adjusted EBITDA and cash generation was supported by increased revenues in all segments, industry activity, lower G&A and synergies achieved. The debt reduction is consistent with our 2022 capital allocation objective to target lower overall debt levels.
• Midstream Infrastructure segment profit margin of 63% - significantly increased margin improvement from 59% in the fourth quarter of 2021, driven by synergies and increased activity.
• Environmental and Fluid Management segment profit margin of 25% - decreased by 3% from the fourth quarter of 2021 as a result of change in project mix and lower ferrous pricing impacting Metals Recycling.
• G&A expense before DD&A and share-based compensation as a percentage of revenue (excluding oil purchase and resale) of 4% - an improvement of 4% compared to 8% in the fourth quarter of 2021, driven by synergies related to the Tervita merger and supported by increased activity levels.
• Growth capital expenditures⁴ of $13 million - primarily related to long-lead items and expansion of existing facilities which are backstopped by commercial agreements.
• Sustaining capital expenditures⁴ of $21 million - primarily related to well and facility maintenance, landfill cell expansions and asset integrity and inspection programs.
• Liquidity³ of $398 million - As at December 31, 2022, the Corporation had drawn $352 million aggregate principal amount on SECURE's $800 million Senior Secured Revolving Credit Facility (the "Revolving Credit Facility") and a total of $92 million of letters of credit have been issued against SECURE's credit facilities resulting in $398 million of Liquidity (available capacity under SECURE's credit facilities and cash on hand, subject to covenant restrictions).

ANNUAL HIGHLIGHTS

• Revenue (excluding oil purchase and resale) of $1.5 billion - an increase of 72% compared to 2021 due to the same factors that impacted the quarter as well as the full year contribution of the assets acquired through the Tervita merger.
• Net income attributable to shareholders of $184 million - an increase of $387 million compared to 2021. The increase was primarily driven by the same factors that impacted revenue and Adjusted EBITDA above and a non-cash impairment expense in 2021.
• Adjusted EBITDA of $557 million - an increase of 95% compared to 2021, primarily due to the same factors that impacted the quarter as well as the full year contribution of revenue above.
• Significant debt reduction - the Corporation repaid $108 million of the Revolving Credit Facility and repurchased US$138 million aggregate principal amount of 2025 senior secured notes using funds flow from operations of $403 million. The debt reduction, combined with an increase in our Adjusted EBITDA, improved our Total Debt to EBITDA covenant ratio to 1.9x from 3.4x at December 31, 2021.
• Integration cost savings of $76 million (101% of initial target) realized - as of September 30, 2022, the Corporation achieved 101% of the $75 million cost savings target it established in connection with the Tervita merger.
• Discretionary free cash flow of $348 million - an increase of $177 million from the prior year which was used for the reduction of debt, to pay costs associated with the Tervita merger, fund growth capital expenditures and the Corporation's quarterly dividend, as well as increased working capital associated with higher activity levels.
• Total capital expenditures of $96 million - consisting of $27 million growth capital and $69 million of sustaining capital. Growth capital included spend related to connecting an additional segment of the East Kaybob oil pipeline, increasing the handling capacity at a water disposal facility and optimization upgrades. Sustaining capital related primarily to well and facility maintenance, landfill cell expansions, spare parts, asset integrity and inspection programs.

OUTLOOK

SECURE's strategic plan in 2022 was to realize the $75 million in synergies from the Tervita merger, integrate the acquired business units, and pay down debt, of which the Corporation outperformed its overall operational and financial goals. For 2023, the Corporation's strategic plan will focus on:

• Enhancing the business with best-in-class customer service and effective optimization of our infrastructure; 
• Growing the volumes handled across the network; 
• Investing capital in infrastructure that has contracted and/or recurring cash flows;
• Targeting strategic partnerships for opportunities that reduce inefficiencies and redundant assets;
• Executing a digital transformation of the business;
• Evaluating potential ESG growth opportunities that fit our core competencies; and
• Delivering on our capital allocation priorities.

In 2023, the Corporation expects to see continued momentum across all business lines as stronger energy, environmental and industrial markets continue to drive higher volumes, activity levels and overall demand for SECURE's infrastructure.

Our energy customers have strengthened their balance sheets and remain disciplined on spending while growing production within operating cash flows. While macroeconomic factors such as inflationary pressures, the possibility of a near-term recession, overall demand globally and the geopolitical risk premium creates ongoing uncertainty for energy markets, the current price environment continues to drive robust producer cash flows and increased energy industry activity in our operating regions. SECURE's infrastructure network across western Canada and North Dakota has significant capacity to help our customers with increased volumes requiring processing, disposal, recycling, recovery and terminalling with minimal incremental fixed costs or additional capital.

The environmental and industrial markets remain strong as liability management programs in British Columbia, Alberta and Saskatchewan seek to speed up the rate in which inactive wells and facilities are abandoned and reclaimed. These programs are expected to result in incremental volumes at our industrial landfills and waste facilities, metal recycling facilities and higher demand for environmental remediation.

In 2023, the Corporation will also benefit from the full run rate of realized synergies from the Tervita merger, adding incremental Adjusted EBITDA. During the year, the Corporation will continue to focus on optimizing the business, target additional operating efficiencies and seek to continually improve operating cashflows.

In addition, the improvements made to our capital structure in 2022 will positively impact our free cash flow in 2023. During 2022, SECURE repurchased US$138 million of the 2025 senior secured notes assumed through the Tervita merger, resulting in annualized interest savings of approximately $10 million. At December 31, 2022, US$162 million aggregate principal amount of these notes remain outstanding. The Corporation expects to continue to repurchase these notes where market conditions are favourable which will result in lower interest costs along with improved financial flexibility.

Capital Allocation Priorities

With the Corporation's current financial position and strong free cash flow profile driven by recurring volumes across our infrastructure network, along with our optimistic business outlook, we are extremely well positioned to deliver on the capital allocation priorities announced in the fourth quarter of 2022. We have established a principal balance debt target of $850 million to $950 million that is below 2x Total Debt to EBITDA on a trailing twelve-month basis. This debt target provides sufficient financial flexibility to manage the business, take advantage of opportunities that meet our strategic objectives, and return cash to shareholders. In 2023, SECURE will pay an increased annualized base dividend of $0.40 per share, which equates to a total of approximately $125 million for the year. SECURE has also been actively repurchasing shares during the first two months of 2023 through an NCIB which further enhances shareholder value. To date, SECURE has repurchased and cancelled 5,932,800 common shares at a weighted average price per share of $7.78 for a total of $46 million since the commencement of the NCIB in December 2022. The Corporation will continue to view share repurchases as opportunistic, and balance repurchases with other opportunities.

2023 Capital Guidance

Our planned growth expenditures for 2023 are approximately $50 million and relate primarily to expanding infrastructure backed by commercial agreements. In fourth quarter of 2022, SECURE entered into three long-term commercial agreements backstopping the construction of the new oil terminalling and pipeline infrastructure in the Clearwater oil region of Alberta which is expected to be completed by the end of the third quarter of 2023. SECURE also expects to incur approximately $60 million of sustaining capital and $25 million of capital related to landfill expansions. The additional landfill expansions are in anticipation of increased abandonment spend obligations driven from government regulations. The Corporation also expects to spend approximately $20 million related to asset retirement obligations in 2023. As a partner to customers in their own land remediation efforts, we strive to lead by example in our industry by going above regulatory requirements to restore our operations back to nature at the end of their lives.

The current macroeconomic conditions, including the ongoing war in Ukraine, higher energy prices and lack of reliable supply have caused the need for more affordable and secure energy. Renewable energy is progressing, but, due to the unreliable nature of this form of generation, it will not be a dependable replacement for more traditional energy sources in the near term. The transformation of traditional energy to safe, secure, abundant, affordable, and lower carbon systems is well under way. Canada has best-in-class safety, environmental and social practices, and the natural resources to make it a reliable provider of this future transformed energy. Increasing Canadian energy and exporting to the world is a long-term solution to providing energy security and a lower carbon future.

SECURE has made tremendous progress over the past two years due to the continued hard work and dedication of our employees. We believe we are well positioned to execute on our priorities for 2023 and create significant value for our shareholders.

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 and twelve months ended December 31, 2022 for further details, which is incorporated by reference herein and available on SECURE's profile at www.sedar.com 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.

The following table reconciles the Corporation's net income (loss), being the most directly comparable financial measure disclosed in the Corporation's financial statements, to Adjusted EBITDA for the three and twelve months ended December 31, 2022 and 2021.

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 (net of sublease receipts). 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 and twelve months ended December 31, 2022 and 2021, transaction and related costs have been adjusted 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 annual audited consolidated financial statements and notes thereto for the years ended December 31, 2022 and 2021 and MD&A for the three and twelve months ended December 31, 2022, are available on SECURE's website at www.secure-energy.com and on SEDAR at www.sedar.com.

FOURTH QUARTER AND YEAR-END 2022 CONFERENCE CALL

SECURE will host a conference call Thursday, March 2, 2023, at 9:00 a.m. MST to discuss the fourth quarter results. To participate in the conference call, dial 416-764-8650 or toll free 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, March 9, 2023, by dialing 1-888-390-0541 and using the pass code 639557.

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 or 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 priorities and focus for 2023 and beyond, including debt reductions, shareholder returns, allocating funds to incremental growth opportunities, optimizing its business, targeting operating efficiencies and improving its cash flows; SECURE's positioning, ability and strategy to achieve its goals; SECURE's principal debt target and strategy to achieve such target; the proportion of discretionary free cash flow to be spend on dividends; the sustainability of dividends; the macro economic factors and uncertainty and the related impact on SECURE's business; increased production, incremental volumes and demand and the related impact on SECURE's business; expanding SECURE's footprint and expected facilities and their impact on SECURE's environmental goals; continued momentum in SECURE's business; benefits related to the Tervita merger; SECURE's capital structure and its impact cash flow; SECURE's ability to pay dividends and repurchase shares, including the timing, amount and sources of funding thereof; capital expenditures and the amount, timing and uses thereof; and the expected timing and costs to complete SECURE's projects.

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: economic and operating conditions, including commodity prices, crude oil and natural gas storage levels, interest rates, exchange rates, and inflation; 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; the impact of the COVID-19 pandemic (including its variants) and 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; the ability of the Corporation to realize the anticipated benefits of acquisitions or dispositions, including the Tervita merger; the resolution of the review of the Tervita merger under the Competition Act on terms acceptable to the Corporation; SECURE's ability to successfully integrate Tervita's legacy business; anticipated sources of funding being available to SECURE on terms favourable to SECURE; the success of the Corporation's operations and growth projects; the Corporation's competitive position, operating, acquisition and sustaining costs remaining substantially unchanged; the Corporation's ability to attract and retain customers (including Tervita's historic 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; the Corporation's ability to repay debt and return capital to shareholders; 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 the COVID-19 pandemic (including its variants), inflation and 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; 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; a failure to realize the benefits of acquisitions, including the Tervita merger, and risks related to the associated business integration; the inaccuracy of pro forma information prepared in connection with acquisitions; risks related to a new business mix and significant shareholder; liabilities and risks, including environmental liabilities and risks, inherent in SECURE's operations, including those associated with the Tervita merger; 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 the review of the Tervita merger under the Competition Act and 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.

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 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 environmental and energy infrastructure business headquartered in Calgary, Alberta. The Corporation's extensive infrastructure network located throughout key resource plays in western Canada and North Dakota includes midstream processing and storage facilities, crude oil and water pipelines, industrial landfills, waste transfer and metals recycling facilities. Through this infrastructure network, the Corporation carries out its principal business operations, including the gathering, optimization and storage of crude oil and natural gas liquids, and the processing, recovery and disposal of waste streams generated by our energy and industrial customers. 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.