STEP Energy price target lowered to C$0.40 from C$0.50 at RBC Capital » 11:0105/2205/22/20
RBC Capital analyst Keith…
RBC Capital analyst Keith Mackey lowered the firm's price target on STEP Energy to C$0.40 from C$0.50 and keeps an Underperform rating on the shares.
STEP Energy price target lowered to C$0.40 from C$0.50 at BMO Capital » 10:5205/2205/22/20
BMO Capital analyst John…
BMO Capital analyst John Gibson lowered the firm's price target on STEP Energy to C$0.40 from C$0.50 and keeps a Market Perform rating on the shares following "solid" Q1 earnings results.
|Over a week ago|
STEP Energy reports Q1 EPS (C$0.78) vs. (C$0.01) last year » 07:4905/2105/21/20
Reports Q1 revenue…
Reports Q1 revenue C$194.36M vs. C$176.46M last year. The company said, "During first quarter 2020, STEP maintained high levels of operating execution and efficiency. In Canada, STEP remained highly utilized until mid-to late March and we were able to complete first quarter work programs for strategic clients prior to the slowdown due to COVID-19. STEP's suite of technologies continues to be a differentiator as the Company retained and added key coiled tubing clients in first quarter 2020. STEP's US fracturing operations were highly utilized with operating days doubling from first quarter 2019. STEP's US coiled tubing operations reduced its coiled tubing units by two from fourth quarter 2019 and maintained operating days at 554 compared to 559 in the same quarter of 2019. Competitive day rates continued for this service line. In mid-March, STEP reduced headcount and wages for all employees in anticipation of a drop-in activity from COVID-19 and relating to actions of certain members of Organization of Petroleum Exporting Countries, Russia and certain other oil-producing countries supply pressures. STEP's net debt reduced marginally from December 31, 2019 during a period of working capital build up. It is anticipated that net debt should be reduced as the working capital builds up in first quarter and then unwinds with the anticipated drop in activity subsequent to March 31, 2020."
STEP Energy sees Q1 revenue C$190M-C$195M » 08:2605/0605/06/20
The following provides an…
The following provides an update on operations and results from operations for STEP for the first quarter of 2020. Activity and operating results for the quarter largely met our expectations with staffed equipment being highly utilized in both Canada and the US. Canadian operations fielded six fracturing crews and 10 coiled tubing units while US operations deployed three fracturing crews and nine coiled tubing units during the quarter. Deployed units were highly utilized with some deferral of work programs experienced later in the quarter due to the uncertainty arising from the COVID-19 pandemic. Revenue from the quarter is expected to range between $190 million to $195 million while anticipated EBITDA margins for the quarter from continuing operations, excluding severance and the effect of allowance for doubtful accounts, are expected to range between 14% and 15%. As a result of the adjustments made to the business that have been previously reported, the Company expects the Q1 2020 operating results to include $1.9 million of severance costs. As well the Company anticipates that due to the increased business uncertainty arising from the pandemic and current commodity price weakness, it will be increasing its AFDA at the end of Q1, 2020. International Financial Reporting Standards require companies to perform an assessment of the carrying value of cash generating units containing non-financial assets when there are significant indicators of potential impairment. The Company believes that COVID-19, the oil price war among certain OPEC+ members and the dramatic reduction in oil prices are indicators that an impairment assessment needs to be undertaken. Given the decline in industry activity and our revised outlook, an impairment charge during Q1 2020 is likely. The magnitude of the charge will not be known until further work is done in conjunction with the preparation of our Q1 results.
STEP Energy announces delay in filing Q1 financial statements » 08:2505/0605/06/20
STEP Energy Services is…
STEP Energy Services is announcing that its filing of interim financial statements for the three months ended March 31, 2020 and related management's discussion and analysis will be postponed. STEP is also providing a further update on actions taken in response to the COVID-19 pandemic and current market and industry conditions. The following press release should be read in conjunction with the MD&A and audited consolidated financial statements as at and for the year ended December 31, 2019, and STEP's annual information form dated March 11, 2020. The above documents are available on STEP's website at www.stepenergyservices.com or on SEDAR at www.sedar.com. Due to the ongoing COVID-19 pandemic, STEP is relying upon the exemption provided by the Alberta Securities Commission in ASC Blanket Order 51-517 Temporary Exemption from Certain Corporate Finance Requirements, and other similar relief provided by the Canadian Securities Administrators to postpone the release of its Q1 Financial Statements and MD&A. The Blanket Order provides issuers with up to an additional 45 days to file interim financial statements and MD&A, provided that the issuer complies with the requirements of the Blanket Order. STEP's reliance on the Blanket Order means STEP's filing deadline is June 29, 2020. However, STEP currently anticipates its Q1 Financial Statements and MD&A will be released prior to the start of trading on the Toronto Stock Exchange on May 21, 2020. Until filing and announcement of the Q1 Financial Statements and accompanying MD&A, STEP's management and other insiders will be subject to a trading black-out that reflects the intent of Section 9 of National Policy 11-207. Other than as disclosed below or in previous releases by STEP, there have been no material business developments since the date of the Company's audited financial statements for the three months and year ended December 31, 2019,
|Over a month ago|
STEP Energy reduces 2020 capital program by 50%, announces headcount reduction » 07:3704/0204/02/20
The company said,…
The company said, "The combined impact of COVID-19 and the OPEC+ price war is expected to impact client spending and demand for our services. In anticipation of these factors, STEP has taken the following measures: reduced 2020 planned capital program by 50% to $ 23.5 million; reduced general and administrative and operations overhead by approximately 50% through a combination of headcount reductions and salary rollback for remaining staff of between 5 and 10%; reduced manned equipment by a similar percentage. STEP will continue to monitor client programs and will make further adjustments as more information becomes available; reduced Board compensation by 20%; eliminated all non-essential travel, entertaining and other discretionary spending. The business environment continues to remain fluid as a result of these major disruptions. STEP will continue to monitor both the expected impact and duration of these factors on our business and will continue to adjust our business accordingly."
STEP Energy implements remote working plans » 07:3604/0204/02/20
STEP Energy Services is…
STEP Energy Services is providing an update on actions taken in response to the COVID-19 pandemic, and current market conditions. The company said, "STEP is responding to the rapidly deteriorating business conditions brought about by the combined impact of COVID-19 and the oil price war among certain OPEC+ members. These global events have caused a material decline in commodity prices globally and are expected to result in reductions in planned spending by our clients. COVID-19 Response:STEP places the health and safety of our employees and the clients and communities we serve among our highest priorities. As a result, in response to COVID-19, we have implemented our Emergency Response Plan which included: enhancing communication with our employees and our clients; implementing enhanced personal hygiene, increase social distancing and self-quarantine practices; banning non-essential travel; further measures to ensure all employees are fit-for-duty; and implementing remote working plans. STEP will continue to monitor the situation and ensure we are adopting guidance provided by government and health authorities."
STEP Energy downgraded to Underperform from Sector Perform at Scotiabank » 12:5203/0903/09/20
Scotiabank analyst Vladislav Vlad downgraded STEP Energy to Underperform from Sector Perform and maintained a C$1.50 price target.