SECURE ENERGY REPORTS SECOND QUARTER RESULTS INCLUDING $67 MILLION IN REALIZED SYNERGIES

• Realized $67 million of run-rate synergies impacting Adjusted EBITDA¹, reaching 89% of our $75 million target, on track to deliver the remainder by end of 2022
• Earned $127 million and $0.41 per basic share of Adjusted EBITDA¹ in Q2, reflecting strong operational performance and realized synergies, up 310% from Q2 2021 and 116% on a per basic share basis
• Improved our Total Debt to EBITDA² covenant ratio to 2.5x
• Settled US$77 million, or 26% of our 11% senior secured notes as we continue to optimize our capital structure
• Released our 2021 Sustainability Report, demonstrating our commitment to sustainability with tangible short-term goals
• Generated revenue (excluding oil purchase and resale) of $355 million up 203% from Q2 2021
• G&A as a percentage of revenue (excluding oil purchase and resale) improved to 8% from 11% in Q2 2021
• Adjusted EBITDA margin¹ of 36%, up from 26% in Q2 2021
• Achieved net income of $54 million and $0.17 per share, an increase of $67 million from Q2 2021
• Generated $66 million of discretionary free cash flow¹, up 267% from Q2 2021, and 91% on a per basic share basis¹
• Increased funds flow from operations to $80 million, 371% higher than Q2 2021

CALGARY, AB, July 27, 2022 /CNW/ - SECURE ENERGY Services Inc. ("SECURE" or the "Corporation") (TSX: SES) reported the Corporation's operational and financial results for the three and six months ended June 30, 2022.

"We are extremely pleased with our strong financial performance in the second quarter of 2022, demonstrating the strength of our expanded business, our ongoing focus on managing costs, and an overall improvement in our underlying markets," said Rene Amirault, President and Chief Executive Officer of SECURE. "Results were positively impacted by realized cost synergies from the Tervita transaction, which have progressed ahead of our expectations. Our operations also benefited from robust industry activity levels led by higher oil and gas prices, driving significant demand for our customer solutions.

"There is strong momentum throughout our operations. With our increased discretionary free cash flow generation capabilities and a strengthened balance sheet, we remain well positioned to meet our debt reduction targets, deliver on ESG initiatives, and at the same time capitalize on growth at existing facilities and favourable industry fundamentals.

"We are excited by the future of SECURE. Using our technologies, network and best in class team to form new partnerships, we remain focused on helping our customers develop the highest ESG standards and lowest cost structure in the world, ensuring we create sustainable energy and environmental solutions for many decades."

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¹ Non-GAAP financial measure/ratio. Refer to the "Non-GAAP and other specified financial measures" section herein.

² Calculated in accordance with the Corporation's credit facility agreements. Refer to the "Liquidity and Capital Resources" section in the Q2 2022 Management's Discussion and Analysis ("MD&A") which information is incorporated by reference into this new release.

FINANCIAL AND OPERATING HIGHLIGHTS

The Corporation's operating and financial highlights for the three and six months ended June 30, 2022, and 2021 can be summarized as follows:

	Three months ended June 30,			Six months ended June 30,
($ millions except share and per share data)	2022	2021	% change	2022	2021	% change
Revenue (excludes oil purchase and resale)	355	117	203	714	249	187
Oil purchase and resale	1,723	395	336	3,114	924	237
Total revenue	2,078	512	306	3,828	1,173	226
Adjusted EBITDA ^(1)	127	31	310	253	71	256
Per share ($), basic ^(1)	0.41	0.19	116	0.82	0.44	86
Per share ($), diluted ^(1)	0.41	0.19	116	0.81	0.44	84
Net income attributable to shareholders of SECURE ^(2)	54	(13)	515	92	(13)	808
Per share ($), basic and diluted	0.17	(0.08)	313	0.30	(0.08)	475
Funds flow from operations	80	17	371	187	47	298
Per share ($), basic and diluted ^(3)	0.26	0.11	136	0.60	0.29	107
Discretionary free cash flow ^(1)	66	18	267	166	47	253
Per share ($), basic and diluted ^(1)	0.21	0.11	91	0.54	0.29	86
Capital expenditures ^(1)	19	7	171	32	13	146
Dividends per common share	0.0075	0.0075	—	0.0150	0.0150	—
Total assets ^(2)	2,931	1,510	94	2,931	1,510	94
Long-term liabilities ^(2)	1,281	480	167	1,281	480	167
Common shares - end of period	309,868,588	160,499,821	93	309,868,588	160,499,821	93
Weighted average common shares:
Basic	309,831,621	160,358,466	93	309,335,228	159,951,853	93
Diluted	313,071,825	160,358,466	95	312,560,669	159,951,853	95

⁽¹⁾ Refer to "Non-GAAP and other specified financial measures" section herein.

⁽²⁾ Prior year amounts have been restated, refer to the "Accounting Policies" section in the Q2 2022 MD&A for additional information.

⁽³⁾ Supplementary financial measure. Refer to the "Non-GAAP and other specified financial measures" section herein.

FINANCIAL AND OPERATIONAL RESULTS

The following should be read in conjunction with the Corporation's MD&A for the three and six months ended June 30, 2022, and the consolidated financial statements and notes thereto for the three and six months ended June 30, 2022 ("Interim Financial Statements"), which are both available on SEDAR at www.sedar.com.

SECOND QUARTER HIGHLIGHTS

• Integration cost savings of $67 million realized - achieved an incremental $14 million of annualized cost savings impacting Adjusted EBITDA in the second quarter of 2022, increasing realized cost savings from $53 million to $67 million on an annual run-rate basis. As a result, the Corporation has now achieved 89% of the $75 million cost savings target in the first twelve months following completion of the Tervita transaction (the "Transaction"). The $14 million achieved in the quarter is mainly a result of a reduction of headcount and corporate overhead costs, and operational optimizations. In the three months ended June 30, 2022, $9 million of costs related to the Transaction and integration of the legacy businesses were incurred of which $6 million was associated with the competition review process.
  
  
• Revenue (excluding oil purchase and resale) of $355 million – represents an increase of 203% compared to the second quarter of 2021 with Midstream Infrastructure revenue (excluding oil purchase and resale) increasing by $115 million to $164 million and Environmental and Fluid Management revenue increasing by $123 million to $191 million for the quarter. These increases were primarily due to additional revenue associated with the Transaction and an increase in energy-related industry activity levels as benchmark oil and natural gas prices were strong in the quarter. Both reportable segments benefited from improved industry activity levels, driving incremental volumes at Midstream Infrastructure facilities and industrial landfills, and demand for drilling and completion related services, underpinned by an increase in average active rig count of approximately 47%. Higher crude oil pricing in the second quarter of 2022 also positively impacted recovered oil revenue and contributed to the increase in oil purchase and resale revenue, which increased by 336% to $1.7 billion compared to the comparative 2021 period.
  
  
• Net income attributable to shareholders of $54 million and $0.17 per share - an increase of $67 million or $0.26 per basic share compared to the second quarter of 2021, as general industry conditions continued to strengthen. The increase was primarily driven by the impact of the Transaction and lower depreciation, depletion and amortization ("DD&A"), partially offset by higher general and administrative ("G&A") expenses, higher finance costs associated with debt assumed upon closing the Transaction and a higher non-cash deferred tax expense.
  
  
• Adjusted EBITDA of $127 million and $0.41 per basic share - an increase of 310% and 116% compared to the second quarter of 2021, respectively, primarily due to contributions from the Transaction and related synergies, demonstrating the strength and scale of the combined business. In addition, higher oil and natural gas prices resulted in improved energy market conditions and increased activity levels in a number of the Corporation's operating areas, which led to higher processing and disposal volumes at our Midstream Infrastructure facilities and landfills and increased demand for services related to drilling and completion activity within the Environmental and Fluid Management segment.
  
  
• Adjusted EBITDA margin of 36% - increased from 26% in the second quarter of 2021, due to the positive impact from the cost savings mentioned above and higher revenue contributing to improved fixed cost absorption, particularly in the service lines impacted by the increased drilling and completion activity.
  
  
• Funds flow from operations of $80 million - an increase of $63 million from the prior year comparative period, or 136% per basic share, driven by the increase in Adjusted EBITDA, partially offset by higher interest payments of $37 million in the quarter, including semi-annual interest coupon payments on the Corporation's fixed debt.
  
  
• Discretionary free cash flow of $66 million - which was used primarily, in addition to our revolving credit facility, to purchase and settle US$77 million aggregate principal amount of our 2025 senior secured 11% notes, as well as fund the Corporation's quarterly dividend, transaction related costs and growth capital expenditures. At June 30, 2022, SECURE carried Working Capital³ of $199 million, an increase of $12 million in the quarter.
  
  
• G&A expense before DD&A and share-based compensation as a percentage of revenue (excluding oil purchase and resale) of 8% - an improvement of 3% compared to 11% in the second quarter of 2021, driven by synergies related to the Transaction and supported by increased activity levels.
  
  
• Improved our Total Debt to EBITDA covenant ratio⁴ to 2.5x - Adjusted EBITDA and cash generation was supported by an improved commodity pricing environment, increased industry activity and a limited amount of investment in working capital. The Corporation's ability to repay debt was further aided as modest capital spending was required to support our business. The debt reduction is consistent with our current capital allocation objective to target lower debt levels and moves us closer to achieving our near-term debt targets.
  
  
• Settled US$77 million of our 11% 2025 senior secured notes - the Corporation remains focused on improving our capital structure and as such, the Corporation opportunistically repurchased US$77 million aggregate principal amount of our 11% 2025 senior secured notes in the quarter.
  
  
• Liquidity⁵ of $298 million - decreased by $92 million from March 31, 2022 primarily due to funding the repurchase of US$77 million aggregate principal amount of 2025 senior secured notes.
  
  As at June 30, 2022, the Corporation had drawn $435 million aggregate principal amount on the revolving credit facility and a total of $108 million of letters of credit have been issued against SECURE's credit facilities resulting in $298 million of Liquidity (available capacity under SECURE's credit facilities and cash on hand, subject to covenant restrictions).
  
  The following table outlines SECURE's covenant ratios⁴, calculated in accordance with the Corporation's credit facilities, at June 30, 2022, and December 31, 2021:

	June 30, 2022	Covenant	December 31, 2021
Senior Debt to EBITDA	1.2	not to exceed 2.75	1.5
Total Debt to EBITDA	2.5	not to exceed 4.5	3.4
Interest coverage	4.4	not to be less than 2.5	3.4

• Growth capital expenditures of $2 million - related to the expansion of a water disposal facility which is backstopped by a commercial agreement with an existing customer at the facility.
  
  
• Sustaining capital expenditures of $17 million - related primarily to well and facility maintenance, landfill cell expansions and asset integrity and inspection programs.
  
  
• Declared dividends of $2 million - representing $0.0075 (0.75 cents) per common share for the quarter.

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³ Capital management measure. Refer to the "Non-GAAP and other specified financial measures" section in the Q2 2022 MD&A which information is incorporated by reference into this news release.

⁴ Calculated in accordance with the Corporation's credit facility agreements. Refer to the "Liquidity and Capital Resources" section in the Q2 2022 MD&A which information is incorporated by reference into this news release.

⁵ Capital management measure. Refer to the "Non-GAAP and other specified financial measures" section in the Q2 2022 MD&A which information is incorporated by reference into this news release.

OUTLOOK

During the second half of the year, the Corporation expects the benchmark crude oil price will continue to fluctuate, supported by macroeconomic factors such as significant inflationary pressures, geopolitical risk premium due to the current war in Ukraine, as well as continued changes to the supply and demand outlook.   Notwithstanding the fluctuation in the price of benchmark crude, the economics and producer cash flows remain robust, and therefore we expect strong energy industry activity in the second half of the year.  The Corporation will continue to benefit from our focus on cost control, realized synergies from the Transaction and industry activity, including increased demand for drilling and completion services, incremental facility volumes, increased recovered oil revenue and crude oil marketing opportunities.

During the second half of 2022, we expect to see the following:

• Completion of the $75 million in synergies and cost savings. In the twelve months since the Transaction, we have realized $67 million or 89% of synergies impacting Adjusted EBITDA on an annual run-rate basis. We expect to execute on the remaining $8 million of administrative and operational synergies by the end of this year. The operational synergies will contribute a partial benefit in 2022 with the full run rate of $75 million cost savings in 2023. Additional savings through initiatives such as improving our capital structure as well as minimizing sustaining capital by managing underutilized assets are expected to provide incremental discretionary free cash flow beyond our $75 million cost savings target that impact Adjusted EBITDA.
• Increased utilization at our midstream processing facilities as higher drilling, completion and production volumes from increased activity levels require additional treating, processing, terminalling and disposal. The Corporation has significant capacity to increase facility throughput and disposal with minimal incremental fixed costs or additional capital. Higher drilling and completion activity is expected to continue to have a positive impact on our drilling and production services business within the Environmental and Fluid Management segment. In addition, we have been able to pass through price increases to offset some of the cost pressures we are currently experiencing due to higher inflation.
• Increased volumes at the Corporation's industrial landfills and industrial waste facilities as both industry activity and abandonment, remediation and reclamation activity continue to trend higher as a result of the Canadian Federal Government's $1.7 billion stimulus package to help fund the closure and reclamation of orphan and inactive wells within Alberta, Saskatchewan and British Columbia, which is scheduled to end in the first quarter of 2023. In addition, there is direction from the Alberta Energy Regulator requiring energy producers and other companies that have retirement obligations related to inactive (non-producing) wells and facilities to spend an amount each year towards addressing those obligations (which amount has recently been increased from $422 million to $700 million for 2023), and a similar program initiated by the Saskatchewan provincial government is expected to begin in 2023. SECURE anticipates policy changes to increase abandonment, remediation and reclamation activity to positively impact all of SECURE's Canadian operations, particularly within the Environmental and Fluid Management segment as a result of higher demand for environmental site assessments, onsite abandonment, remediation and reclamation management and decommissioning work.

One of SECURE's key priorities remains debt repayment. As clearly demonstrated in the first half of the year, we expect to use discretionary free cash flow and any proceeds from non-core asset sales to reduce debt further. We will also continue to look for opportunities to improve our capital structure with the ultimate goals of reducing interest costs and increasing flexibility. As we achieve our leverage targets, in addition to strengthening our balance sheet, we are committed to allocating capital towards increased shareholder returns as an important element of our capital allocation framework, as well as incremental organic growth opportunities that provide stable cash flow. These shareholder returns may include further debt repayment, increased dividends, share buybacks, or a combination thereof. SECURE will continue to work diligently to manage inflationary costs that will likely continue through the year; including purchasing materials in bulk, working with customers and negotiating with suppliers or finding alternate suppliers.

We expect sustaining capital in 2022 to be approximately $55 million, including capital expenditures related to landfill expansions of approximately $15 million. We expect to incur approximately $45 million of growth capital in 2022 which will be focused on projects that contain long-term agreements and tie into existing infrastructure that strategically aligns with our customer needs as we both reduce costs and lower emissions. In the first half of 2022, we spent $27 million in maintenance capital and $5 million in growth capital. Assisting customers to recycle and reduce wherever possible continues to be part of our long-term strategy and other opportunities such as carbon dioxide infrastructure will continue to be evaluated as part of our Environmental, Social and Governance ("ESG") goals and business strategy.

Summary

In closing, industry fundamentals remain favourable and provide support for our business outlook in the second half of 2022. Our priorities are to achieve the remaining $8 million of run-rate synergies impacting Adjusted EBITDA, continue to optimize operations and realize cost savings between business units, and use our discretionary free cash flow to strengthen our balance sheet by further reducing debt. With our efforts to date and the continuing hard work of our employees, we believe we are well positioned to achieve all of these priorities in the second half of the year.

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 six months ended June 30, 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 Interim Financial Statements, to Adjusted EBITDA for the three and six months ended June 30, 2022 and 2021.

	Three months ended June 30,			Six months ended June 30,
	2022	2021	% Change	2022	2021	% Change
Net income (loss) ^(1)	54	(13)	515	92	(14)	(757)
Adjustments:
Depreciation, depletion and amortization ^(1) ^(2)	21	30	(30)	77	59	31
Deferred tax expense	14	(3)	(567)	23	(3)	(867)
Share-based compensation ^(2)	5	4	25	10	7	43
Interest, accretion and finance costs ^(1)	24	4	500	49	9	444
Unrealized loss (gain) on mark to market transactions ^(3)	1	—	100	(1)	—	100
Other (income) expense	(1)	2	(150)	(15)	2	(850)
Transaction and related costs	9	7	29	18	11	64
Adjusted EBITDA	127	31	310	253	71	256
^(1) Prior year amounts have been restated, refer to the "Accounting Policies" section in the Q2 2022 MD&A for additional information.
^(2) Included in cost of sales and/or general and administrative expenses on the Consolidated Statements of Comprehensive Income (Loss).
^(3) Net balance. Includes amounts presented in revenue and cost of sales on the Consolidated Statements of Comprehensive Income (Loss).

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.

The following table reconciles the Corporation's funds flow from operations, being the most directly comparable financial measure disclosed in the Corporation's Interim Financial Statements, to discretionary free cash flow for the three and six months ended June 30, 2022 and 2021.

	Three months ended June 30,			Six months ended June 30,
	2022	2021	% Change	2022	2021	% Change
Funds flow from operations	80	17	371	187	47	298
Adjustments: Sustaining capital	(17)	(4)	325	(27)	(6)	350
Lease liability principal payment (net of sublease receipts)	(6)	(2)	200	(12)	(5)	140
Transaction and related costs	9	7	29	18	11	64
Discretionary free cash flow	66	18	267	166	47	253

FINANCIAL STATEMENTS AND MD&A

The Corporation's consolidated financial statements and notes thereto and MD&A for the three and six months ended June 30, 2022 are available on SECURE's website at www.secure-energy.com and on SEDAR at www.sedar.com.

SECOND Quarter 2022 Conference Call

SECURE will host a conference call on Wednesday, July 27, 2022 at 9:00 a.m. MDT to discuss the second 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 MDT on Wednesday, August 3, 2022 by dialing 888-390-0541 and using the pass code 786436#.

FORWARD-LOOKING STATEMENTS

Certain statements contained in this press release constitute "forward-looking statements and/or "forward-looking information" within the meaning of applicable securities laws (collectively referred to as "forward-looking statements"). When used in this press release, the words "achieve", "advance", "anticipate", "believe", "can be", "capacity", "commit", "continue", "could", "deliver", "drive", "enhance", "ensure", "estimate", "execute", "expect", "focus", "forecast", "forward", "future", "goal", "grow", "integrate", "intend", "may", "maintain", "objective", "ongoing", "opportunity", "outlook", "plan", "position", "potential", "prioritize", "realize", "remain", "result", "seek", "should", "strategy", "target" "will", "would" and similar expressions, as they relate to SECURE, its management, or the combined company, 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 for the second half of 2022 and beyond, including related to ESG, sustainability, debt reduction and strengthening its balance sheet, and its ability to achieve such priorities; ongoing focus on managing costs; momentum throughout SECURE's operations; SECURE's ability to repay debt and achieve its near-term debt targets; SECURE's ability to form new partnerships; focusing on projects to reduce customers' emissions and ESG goals; SECURE's ability to create sustainable energy and environmental solutions for many decades; continued optimization of SECURE's capital structure; fluctuations in benchmark crude oil prices, supported by macroeconomic factors such as significant inflationary pressures, geopolitical risk premium and continued changes to the supply and demand outlook; using a majority of discretionary free cash flow in 2022 to repay debt; the impact of acquisitions on SECURE's market presence and business; SECURE's ability to execute and deliver on the expected benefits of the Transaction, including the continued successful integration the legacy Tervita business to become a more resilient, profitable and efficient business, and the timing thereof; benefits to SECURE from its focus on cost control, realized synergies from the Transaction and industry activity, including increased demand for drilling and completion services, incremental facility volumes, increased recovered oil revenue and crude oil marketing opportunities; achieving $8 million in synergies related to the Transaction by the end of the year and the full $75 cost savings in 2023; improving our capital structure and minimizing our sustaining capital by managing underutilized assets to generate incremental discretionary free cash flow beyond our $75 million cost savings target; sustained inflationary pressures and increased interest rates, their impact on SECURE's business and SECURE's ability to manage such pressures; the impact of increased industry activity on SECURE's business, including increased utilization at SECURE's midstream facilities; the end of the Canadian Federal Government's stimulus package and its impact on SECURE's business; the impact of new or existing mandatory spend requirements for retirement obligations on SECURE's business, and the introduction of such requirements; SECURE's discretionary free cash flow and the use and portion of such discretionary free cash flow and proceeds from non-core asset sales to reduce debt; the reduction of our more expensive debt; SECURE's ability to increase throughput with minimal incremental fixed costs or additional capital; growth opportunities that provide stable cash flow, and increased shareholder returns; the form, amount and timing of shareholder returns; SECURE's capital expenditure guidance; sustaining and growth capital requirements focusing on projects to reduce customers' emissions and ESG goals; the Corporation's ability to fund its capital needs and the amount thereof; methods and sources of liquidity to meet SECURE's financial obligations, including adjustments to dividends, drawing on credit facilities, issuing debt, obtaining equity financing or divestitures; SECURE's liquidity position and access to capital; and maintaining financial resiliency.

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 the Transaction; the resolution of the review of the Transaction 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; 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; the end of the Canadian Federal Government's stimulus package; 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 staff 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 the WCSB 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 commitments; and other risks and uncertainties described in the Corporation's annual information form for the year ended December 31, 2021 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) 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 services 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 the Transaction and risks related to the associated business integration; the inaccuracy of pro forma information prepared in connection with the Transaction; risks related to a new business mix and significant shareholder; liabilities and risks, including environmental liabilities and risks, inherent in oil and natural gas operations, including those associated with the Transaction; the Corporation's ability to integrate technological advances and match advances of our competition; 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; 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 activism on our operations and ability to access capital and insurance; exposure of the Corporation's information technology systems to external threats and the effects of any unauthorized access to such system and potential disclosure of confidential information; 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 Transaction 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 commitments 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 those risk factors identified in the Corporation's annual information form for the year ended December 31, 2021 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 publicly traded energy infrastructure and environmental business listed on the Toronto Stock Exchange ("TSX"). SECURE provides industry leading midstream infrastructure and environmental and fluid management to predominantly upstream oil and natural gas companies operating in western Canada and certain regions in the U.S. SECURE's Midstream Infrastructure business segment includes a network of midstream processing and storage facilities, crude oil and water pipelines, and crude by rail terminals located throughout key resource plays in western Canada, North Dakota and Oklahoma. SECURE's midstream infrastructure operations generate cash flows from oil production processing and disposal, produced water disposal, and crude oil storage, logistics, and marketing. SECURE's Environmental and Fluid Management business segment includes a network of industrial landfills, hazardous and non-hazardous waste management and disposal, onsite abandonment, environmental solutions for site remediation and reclamation, bio-remediation and technologies, waste treatment & recycling, emergency response, rail services, metal recycling services, as well as fluid management for drilling, completion and production activities. 

SOURCE SECURE Energy Services Inc.

Rene Amirault, President and Chief Executive Officer; Allen Gransch, Chief Operating Officer; Chad Magus, Chief Financial Officer, Phone: [phone], Fax: [phone], Email: [email protected], Website: www.secure-energy.com