Announcement • Dec 17
ARC Energy Fund 8, managed by ARC Financial Corp., completed the acquisition of the remaining 44.78% stake in STEP Energy Services Ltd. (TSX:STEP). ARC Energy Fund 8, managed by ARC Financial Corp., made a non-binding offer to acquire remaining 44.78% stake in STEP Energy Services Ltd. (TSX:STEP) from Gundyco ITF MMCAP International, Inc. SPC, Groundlayer Capital Inc., and Xib International Master Fund and XIB Arbitrage Master Fund, managed by XIB Asset Management Inc., for approximately CAD 190 million on September 25, 2025. ARC Energy Fund 8 managed by ARC Financial Corp. entered into a definitive arrangement agreement to acquire remaining 44.78% stake in STEP Energy Services Ltd. (TSX:STEP) for approximately CAD 190 million on October 17, 2025. Under the terms of the Arrangement Agreement, ARC will acquire all of the issued and outstanding common shares of STEP that does not currently own or control or direct, directly or indirectly for cash consideration of CAD 5.50 per Share by way of a plan of arrangement. Upon completion, ARC Financial Corp. will own 100% stake in STEP Energy Services Ltd. STEP also announces that it has received from ARC a copy of a signed voting support agreement among the limited partnerships comprising ARC Energy Fund 8, 2659160 Alberta Ltd. and MMCAP International Inc. SPC relating to the Offer. The Board of Directors of STEP Energy Services Ltd. formed a special committee for the transaction consists of independent directors Edward LaFehr , James Harbilas and Rachel Moore. On October 8, 2025, ARC Energy Fund 8 entered into voting support agreements with funds advised by XIB Asset Management Inc.
The Arrangement, which has been unanimously approved by the members of STEP’s board of directors entitled to vote thereon, will be subject to shareholder approval, including the approval of the holders of the Minority Shares, customary TSX and court approval, and customary closing conditions. Upon the successful completion of this transaction it is expected that the Company’s shares will be delisted from trading on the TSX and STEP would cease to be a reporting issuer. Closing of the Arrangement is expected to occur on or about December 16, 2025.
Stikeman Elliott LLP acted as legal advisor for STEP Energy Services Ltd. Peters & Co., Limited acted as financial advisor, Ernst & Young LLP (Canada) acted as fairness opinion provider, and Burnet, Duckworth & Palmer LLP acted as legal advisor for special committee. RBC Capital Markets Inc. and ATB Capital Markets Inc. acted as financial advisor and Norton Rose Fulbright Canada LLP acted as legal advisor for ARC Financial Corp.
ARC Energy Fund 8, managed by ARC Financial Corp., completed the acquisition of the remaining 44.78% stake in STEP Energy Services Ltd. (TSX:STEP) on December 16, 2025. It is expected that the shares of STEP will be
delisted from the TSX as of the close of business on or about December 17, 2025. Announcement • Nov 05
STEP Energy Services Ltd. to Report Q3, 2025 Results on Nov 05, 2025 STEP Energy Services Ltd. announced that they will report Q3, 2025 results at 4:00 PM, US Eastern Standard Time on Nov 05, 2025 Announcement • Sep 27
Unknown funds managed by ARC Financial Corp. made a non-binding offer to acquire remaining 44.78% stake in STEP Energy Services Ltd. (TSX:STEP) for approximately CAD 190 million. Unknown funds managed by ARC Financial Corp. made a non-binding offer to acquire remaining 44.78% stake in STEP Energy Services Ltd. (TSX:STEP) for approximately CAD 190 million on September 25, 2025. Upon completion, ARC Financial Corp. will own 100% stake in STEP Energy Services Ltd. STEP also announces that it has received from ARC a copy of a signed voting support agreement among the limited partnerships comprising ARC Energy Fund 8, 2659160 Alberta Ltd. and MMCAP International Inc. SPC relating to the Offer. The Board of Directors of STEP Energy Services Ltd. formed a special committee for the transaction consists of independent directors Edward LaFehr , James Harbilas and Rachel Moore. Stikeman Elliott LLP acted as legal advisor for STEP Energy Services Ltd. Peters & Co., Limited acted as financial advisor and Burnet, Duckworth & Palmer LLP acted as legal advisor to special committee. Announcement • Jul 06
STEP Energy Services Ltd. to Report Q2, 2025 Results on Aug 06, 2025 STEP Energy Services Ltd. announced that they will report Q2, 2025 results After-Market on Aug 06, 2025 Announcement • Jun 08
STEP Energy Services Ltd. Approves Board and Committee Changes STEP Energy Services Ltd. at its AGM held on June 4, 2025, approved the appointment of Jacqueline Forrest, Jeremy W. Gackle and Michael Kelly as directors. In a meeting of STEP's board of directors that occurred immediately after the 2025 annual general meeting, Mr. Jeremy Gackle was appointed chair of STEP's board of directors, and Mr. Edward LaFehr was appointed its lead director by STEP's independent directors. The board announced the composition of the board committees, and each committee chair, as: Audit Committee: James Harbilas (chair), Michael Kelly, Rachel Moore. Compensation and Corporate Governance Committee: Rachel Moore (chair), Jeremy Gackle, James Harbilas. Health, Safety and Environment Committee: Edward LaFehr (chair), Jacqueline Forrest, Stephen Glanville. Announcement • Apr 17
STEP Energy Services Ltd. to Report Q1, 2025 Results on May 14, 2025 STEP Energy Services Ltd. announced that they will report Q1, 2025 results After-Market on May 14, 2025 Announcement • Mar 25
STEP Energy Services Ltd., Annual General Meeting, Jun 04, 2025 STEP Energy Services Ltd., Annual General Meeting, Jun 04, 2025. Announcement • Feb 07
STEP Energy Services Ltd. to Report Q4, 2024 Results on Mar 11, 2025 STEP Energy Services Ltd. announced that they will report Q4, 2024 results After-Market on Mar 11, 2025 Announcement • Nov 06
STEP Energy Services Expects to Delist from Trading on the TSX STEP Energy Services Ltd. ('STEP' or the 'Company') (TSX: STEP) announced that it has entered into a definitive arrangement agreement (the 'Arrangement Agreement') with 2659160 Alberta Ltd. and the limited partnerships comprising ARC Energy Fund 8 (a private equity fund advised by ARC Financial Corp.) (collectively, 'ARC') to take the Company private in an all-cash transaction. The Arrangement is expected to close in December 2024. The STEP Meeting is expected to be held on December 19, 2024. Following completion of the Arrangement, it is expected that the Shares will be delisted from trading on the TSX and an application will be made for STEP to cease to be a reporting issuer. Announcement • Nov 05
ARC Energy Fund 8 a fund manage by ARC Financial Corp. agreed to acquire remaining 43.93% stake in STEP Energy Services Ltd. (TSX:STEP) in a going private transaction for CAD 180 million. ARC Energy Fund 8 a fund manage by ARC Financial Corp. agreed to acquire remaining 43.93% stake in STEP Energy Services Ltd. (TSX:STEP) in a going private transaction for CAD 180 million on November 4, 20224. Under the terms of the agreement, ARC will acquire all of the issued and outstanding common shares of STEP that ARC (and ARC Energy Fund 6) does not currently own or control or direct, directly or indirectly, for cash consideration of CAD 5 per Share by way of a plan of arrangement. Following completion of the Arrangement, it is expected that the Shares will be delisted from trading on the TSX and an application will be made for STEP to cease to be a reporting issuer. STEP will continue to be run by its current management team, led by Mr. Steve Glanville. ATB Financial and Royal Bank of Canada are acting as co-lead arrangers and sole lenders (the “Co-Leads”) for a senior credit facility. The transaction has been unanimously approved by STEP’s board of directors entitled to vote thereon, will be subject to shareholder approval, including the approval of the holders of the Minority Shares, court approval, and customary closing conditions. The transaction is expected to close in December 2024.
Peters & Co. Limited acted as financial advisor to the Special Committee of STEP. EY provided fairness opinion to the Special Committee of STEP. Burnet, Duckworth & Palmer LLP acted as legal advisor to the Special Committee of STEP. Stikeman Elliot LLP acted as legal advisor to STEP. RBC Capital Markets acted as lead financial advisor and ATB Capital Markets acted as co-financial advisor to ARC. Norton Rose Fulbright Canada LLP acted as legal advisor to ARC. Dentons Canada LLP acted as legal counsel to the Co-Leads. Valuation Update With 7 Day Price Move • Nov 04
Investor sentiment improves as stock rises 45% After last week's 45% share price gain to CA$5.00, the stock trades at a forward P/E ratio of 6x. Average forward P/E is 8x in the Energy Services industry in Canada. Total returns to shareholders of 135% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CA$8.84 per share. Announcement • Oct 18
STEP Energy Services Ltd. to Report Q3, 2024 Results on Nov 13, 2024 STEP Energy Services Ltd. announced that they will report Q3, 2024 results After-Market on Nov 13, 2024 Reported Earnings • Aug 07
Second quarter 2024 earnings: EPS and revenues exceed analyst expectations Second quarter 2024 results: EPS: CA$0.15 (down from CA$0.21 in 2Q 2023). Revenue: CA$231.4m (flat on 2Q 2023). Net income: CA$10.5m (down 32% from 2Q 2023). Profit margin: 4.5% (down from 6.6% in 2Q 2023). Revenue exceeded analyst estimates by 1.3%. Earnings per share (EPS) also surpassed analyst estimates by 14%. Revenue is forecast to stay flat during the next 3 years compared to a 5.3% decline forecast for the Energy Services industry in Canada. Over the last 3 years on average, earnings per share has increased by 70% per year but the company’s share price has only increased by 40% per year, which means it is significantly lagging earnings growth. Announcement • Jul 16
STEP Energy Services Ltd. to Report Q2, 2024 Results on Aug 06, 2024 STEP Energy Services Ltd. announced that they will report Q2, 2024 results After-Market on Aug 06, 2024 Price Target Changed • Jun 13
Price target increased by 7.9% to CA$6.04 Up from CA$5.59, the current price target is an average from 7 analysts. New target price is 47% above last closing price of CA$4.11. Stock is up 40% over the past year. The company is forecast to post earnings per share of CA$0.94 for next year compared to CA$0.70 last year. Recent Insider Transactions Derivative • Jun 08
President exercised options and sold CA$119k worth of stock On the 4th of June, Stephen Glanville exercised options to acquire 31k shares at no cost and sold these for an average price of CA$3.88 per share. This trade did not impact their existing holding. For the year to December 2017, Stephen's total compensation was 26% salary and 74% other compensation. This indicates that these sales could comprise a meaningful part of their income for the year. Since December 2023, Stephen's direct individual holding has increased from 209.68k shares to 223.68k. Company insiders have collectively sold CA$992k more than they bought, via options and on-market transactions in the last 12 months. Recent Insider Transactions Derivative • May 14
Chief Operating Officer exercised options to buy CA$256k worth of stock. On the 10th of May, Rory Thompson exercised options to buy 60k shares at a strike price of around CA$2.14, costing a total of CA$128k. This transaction amounted to 93% of their direct individual holding at the time of the trade. Since June 2023, Rory has owned 64.33k shares directly. Company insiders have collectively sold CA$525k more than they bought, via options and on-market transactions in the last 12 months. Recent Insider Transactions • May 14
Chief Operating Officer recently sold CA$125k worth of stock On the 10th of May, Rory Thompson sold around 30k shares on-market at roughly CA$4.19 per share. This transaction amounted to 32% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. This was Rory's only on-market trade for the last 12 months. Reported Earnings • May 09
First quarter 2024 earnings: EPS and revenues exceed analyst expectations First quarter 2024 results: EPS: CA$0.58 (up from CA$0.28 in 1Q 2023). Revenue: CA$320.1m (up 22% from 1Q 2023). Net income: CA$41.4m (up 110% from 1Q 2023). Profit margin: 13% (up from 7.5% in 1Q 2023). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 2.4%. Earnings per share (EPS) also surpassed analyst estimates by 43%. Revenue is forecast to stay flat during the next 3 years compared to a 9.4% decline forecast for the Energy Services industry in Canada. Over the last 3 years on average, earnings per share has increased by 88% per year but the company’s share price has only increased by 47% per year, which means it is significantly lagging earnings growth. New Risk • Apr 08
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 1.8% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 1.8% per year for the foreseeable future. Minor Risk Profit margins are more than 30% lower than last year (5.3% net profit margin). Recent Insider Transactions Derivative • Mar 25
President exercised options and sold CA$73k worth of stock On the 21st of March, Stephen Glanville exercised options to acquire 21k shares at no cost and sold these for an average price of CA$3.53 per share. This trade did not impact their existing holding. For the year to December 2017, Stephen's total compensation was 22% salary and 78% other compensation. This indicates that these sales could comprise a meaningful part of their income for the year. Since June 2023, Stephen's direct individual holding has increased from 204.27k shares to 223.68k. Company insiders have collectively sold CA$540k more than they bought, via options and on-market transactions in the last 12 months. Announcement • Mar 23
STEP Energy Services Ltd., Annual General Meeting, Jun 06, 2024 STEP Energy Services Ltd., Annual General Meeting, Jun 06, 2024. Major Estimate Revision • Mar 19
Consensus EPS estimates fall by 14% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from CA$1.07b to CA$1.00b. EPS estimate also fell from CA$1.12 per share to CA$0.965 per share. Net income forecast to grow 41% next year vs 20% growth forecast for Energy Services industry in Canada. Consensus price target down from CA$6.78 to CA$5.72. Share price fell 4.5% to CA$3.58 over the past week. Recent Insider Transactions • Mar 17
Independent Director recently bought CA$52k worth of stock On the 13th of March, Edward LaFehr bought around 15k shares on-market at roughly CA$3.48 per share. This transaction amounted to 75% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought CA$190k more in shares than they have sold in the last 12 months. Price Target Changed • Mar 13
Price target decreased by 16% to CA$5.72 Down from CA$6.78, the current price target is an average from 8 analysts. New target price is 61% above last closing price of CA$3.56. Stock is up 14% over the past year. The company is forecast to post earnings per share of CA$0.96 for next year compared to CA$0.70 last year. Reported Earnings • Mar 12
Full year 2023 earnings: EPS misses analyst expectations Full year 2023 results: EPS: CA$0.70 (down from CA$1.37 in FY 2022). Revenue: CA$945.7m (down 4.4% from FY 2022). Net income: CA$50.4m (down 47% from FY 2022). Profit margin: 5.3% (down from 9.6% in FY 2022). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 14%. Revenue is forecast to grow 3.6% p.a. on average during the next 3 years, compared to a 11% decline forecast for the Energy Services industry in Canada. Over the last 3 years on average, earnings per share has increased by 104% per year but the company’s share price has only increased by 30% per year, which means it is significantly lagging earnings growth. Announcement • Jan 27
STEP Energy Services Ltd. to Report Q4, 2023 Results on Mar 11, 2024 STEP Energy Services Ltd. announced that they will report Q4, 2023 results After-Market on Mar 11, 2024 Valuation Update With 7 Day Price Move • Jan 24
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to CA$4.71, the stock trades at a forward P/E ratio of 5x. Average forward P/E is 6x in the Energy Services industry in Canada. Total returns to shareholders of 362% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CA$7.31 per share. New Risk • Jan 16
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 5.2% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. This is currently the only risk that has been identified for the company. Recent Insider Transactions Derivative • Jan 06
President exercised options and sold CA$317k worth of stock On the 2nd of January, Stephen Glanville exercised 180k options at a strike price of around CA$2.14 and sold these shares for an average price of CA$3.91 per share. This trade did not impact their existing holding. For the year to December 2017, Stephen's total compensation was 22% salary and 78% other compensation. This indicates that these sales could comprise a meaningful part of their income for the year. Since March 2023, Stephen's direct individual holding has increased from 176.70k shares to 204.27k. Company insiders have collectively sold CA$456k more than they bought, via options and on-market transactions in the last 12 months. Major Estimate Revision • Nov 08
Consensus EPS estimates fall by 11% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from CA$984.1m to CA$967.2m. EPS estimate also fell from CA$0.973 per share to CA$0.864 per share. Net income forecast to grow 11% next year vs 15% growth forecast for Energy Services industry in Canada. Consensus price target up from CA$6.64 to CA$6.93. Share price fell 2.7% to CA$4.25 over the past week. Reported Earnings • Nov 02
Third quarter 2023 earnings: Revenues exceed analysts expectations while EPS lags behind Third quarter 2023 results: EPS: CA$0.29 (down from CA$0.45 in 3Q 2022). Revenue: CA$255.2m (up 4.1% from 3Q 2022). Net income: CA$20.7m (down 33% from 3Q 2022). Profit margin: 8.1% (down from 13% in 3Q 2022). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 1.6%. Earnings per share (EPS) missed analyst estimates by 3.4%. Revenue is forecast to grow 3.8% p.a. on average during the next 3 years, compared to a 11% decline forecast for the Energy Services industry in Canada. Over the last 3 years on average, earnings per share has increased by 114% per year whereas the company’s share price has increased by 112% per year. Announcement • Nov 02
STEP Energy Services Ltd. Announces Board Changes STEP Energy Services Ltd. announced the appointment of Mr. Edward LaFehr as an independent director of STEP’s board of directors, effective November 1, 2023. Mr. LaFehr has 40 years of experience in the energy industry managing large and complex onshore and offshore E&P assets. He currently serves as a director of Vaalco Energy, Inc, a position he has held since Vaalco’s combination with TransGlobe Energy in October 2022; Mr. LaFehr was appointed to TransGlobe Energy’s board in March 2019. Mr. LaFehr previously served as the president and chief executive officer of Baytex Energy Corporation for six years. Before joining Baytex, Mr. LaFehr held various senior leadership positions at Amoco, BP, Talisman, and TAQA. Mr. LaFehr also served on the board of directors of the Explorers and Producers Association of Canada (EPAC) from 2018 through January of 2023. He was also active with the Canadian Association of Petroleum Producers (CAPP) from 2012 to 2014 and was the chairperson of CAPP’s Alberta Energy Policy Group in 2013. Mr. LaFehr holds Master’s degrees in geophysics and mineral economics from Stanford University and the Colorado School of Mines, respectively. He obtained his Bachelor of Science in geophysics from the University of Utah. STEP also announced that Mr. Jason Skehar retired as a member of the board of directors effective November 1, 2023. Mr. Skehar has served as a board member since June 2012 and was a member of STEP’s HSE, Compensation and Corporate Governance (C&CG), and Audit Committees. Following the resignation of Mr. Skehar and the appointment of Mr. LaFehr, STEP’s board of directors consists of seven members. Also following Mr. Skehar’s resignation from his committee appointments, STEP’s director Ms. Rachel Moore was appointed to STEP’s Audit and C&CG Committees and Mr. LaFehr was appointed to STEP’s HSE Committee as chair. STEP’s director, Ms. Evelyn Angelle, also assumed the position of lead director for STEP’s board of directors. Announcement • Oct 05
STEP Energy Services Ltd. to Report Q3, 2023 Results on Nov 01, 2023 STEP Energy Services Ltd. announced that they will report Q3, 2023 results After-Market on Nov 01, 2023 Announcement • Sep 06
STEP Energy Services Ltd. Announces Board Changes STEP Energy Services Ltd. announced the appointment of Ms. Rachel Moore as an independent director of STEP’s board of directors, effective October 1, 2023. Ms. Moore is currently serving as the executive vice president, corporate services, at Ovintiv Inc., a position she has held since January 2020. Ms. Moore previously served as Ovintiv’s vice president, human resources since January 2015. Before joining Ovintiv, Ms. Moore held a variety of senior leadership positions including executive vice president, human resources at Savanna Energy Services Corporation, and vice president, human resources, at Enerflex Systems Ltd. Ms. Moore currently serves on the board of directors for the Wilder Institute (Calgary Zoo) in support of wildlife conservation and previously served as the chair of the board for the United Way of Calgary and Area. Ms. Moore holds a Bachelor of Arts degree in political science and a Master of Business Administration from the University of Calgary. STEP also announces that Ms. Donna Garbutt will be retiring as a member of the board of directors effective September 30, 2023. Ms. Garbutt has served as a member of the board since April 2017 and was chair of STEP’s HSE Committee. Following the retirement of Ms. Garbutt and the appointment of Ms. Moore, STEP’s board of directors will consist of seven members. Reported Earnings • Aug 04
Second quarter 2023 earnings: EPS exceeds analyst expectations Second quarter 2023 results: EPS: CA$0.21 (down from CA$0.56 in 2Q 2022). Revenue: CA$232.1m (down 15% from 2Q 2022). Net income: CA$15.3m (down 60% from 2Q 2022). Profit margin: 6.6% (down from 14% in 2Q 2022). The decrease in margin was driven by lower revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 35%. Revenue is forecast to grow 4.6% p.a. on average during the next 2 years, compared to a 5.6% decline forecast for the Energy Services industry in Canada. Over the last 3 years on average, earnings per share has increased by 121% per year but the company’s share price has only increased by 115% per year, which means it is significantly lagging earnings growth. Announcement • Jul 13
STEP Energy Services Ltd. to Report Q2, 2023 Results on Aug 02, 2023 STEP Energy Services Ltd. announced that they will report Q2, 2023 results at 4:00 PM, US Eastern Standard Time on Aug 02, 2023 Valuation Update With 7 Day Price Move • Jul 04
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to CA$3.41, the stock trades at a forward P/E ratio of 3x. Average forward P/E is 5x in the Energy Services industry in Canada. Total returns to shareholders of 641% over the past three years. Reported Earnings • May 11
First quarter 2023 earnings: EPS exceeds analyst expectations First quarter 2023 results: EPS: CA$0.27 (up from CA$0.14 in 1Q 2022). Revenue: CA$263.4m (up 20% from 1Q 2022). Net income: CA$19.7m (up 114% from 1Q 2022). Profit margin: 7.5% (up from 4.2% in 1Q 2022). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 13%. Revenue is forecast to grow 2.9% p.a. on average during the next 3 years, compared to a 3.6% decline forecast for the Energy Services industry in Canada. Over the last 3 years on average, earnings per share has increased by 117% per year but the company’s share price has only increased by 102% per year, which means it is significantly lagging earnings growth. Major Estimate Revision • Apr 14
Consensus EPS estimates fall by 17% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from CA$1.10b to CA$1.04b. EPS estimate also fell from CA$1.31 per share to CA$1.09 per share. Net income forecast to shrink 16% next year vs 50% growth forecast for Energy Services industry in Canada . Consensus price target down from CA$8.50 to CA$7.14. Share price rose 8.7% to CA$3.50 over the past week. Price Target Changed • Apr 12
Price target decreased by 11% to CA$7.57 Down from CA$8.50, the current price target is an average from 7 analysts. New target price is 128% above last closing price of CA$3.32. Stock is down 2.1% over the past year. The company is forecast to post earnings per share of CA$1.09 for next year compared to CA$1.37 last year. Price Target Changed • Apr 10
Price target decreased by 7.2% to CA$8.29 Down from CA$8.93, the current price target is an average from 7 analysts. New target price is 159% above last closing price of CA$3.20. Stock is down 3.9% over the past year. The company is forecast to post earnings per share of CA$1.35 for next year compared to CA$1.37 last year. Price Target Changed • Mar 03
Price target decreased by 13% to CA$8.93 Down from CA$10.21, the current price target is an average from 7 analysts. New target price is 111% above last closing price of CA$4.23. Stock is up 103% over the past year. The company is forecast to post earnings per share of CA$1.33 for next year compared to CA$1.37 last year. Reported Earnings • Mar 03
Full year 2022 earnings: EPS misses analyst expectations Full year 2022 results: EPS: CA$1.37 (up from CA$0.41 loss in FY 2021). Revenue: CA$989.0m (up 84% from FY 2021). Net income: CA$94.8m (up CA$122.9m from FY 2021). Profit margin: 9.6% (up from net loss in FY 2021). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 2.5%. Revenue is forecast to grow 8.1% p.a. on average during the next 3 years, compared to a 10% growth forecast for the Energy Services industry in Canada. Over the last 3 years on average, earnings per share has increased by 103% per year but the company’s share price has only increased by 68% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Mar 02
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to CA$4.90, the stock trades at a forward P/E ratio of 3x. Average forward P/E is 6x in the Energy Services industry in Canada. Total returns to shareholders of 380% over the past three years. Announcement • Feb 02
STEP Energy Services Ltd. to Report Q4, 2022 Results on Mar 01, 2023 STEP Energy Services Ltd. announced that they will report Q4, 2022 results After-Market on Mar 01, 2023 Board Change • Nov 16
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 3 experienced directors. 3 highly experienced directors. President, CEO & Director Steve Glanville was the last director to join the board, commencing their role in 2022. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Nov 04
Third quarter 2022 earnings: EPS exceeds analyst expectations while revenues lag behind Third quarter 2022 results: EPS: CA$0.45 (up from CA$0.05 loss in 3Q 2021). Revenue: CA$245.1m (up 84% from 3Q 2021). Net income: CA$30.9m (up CA$34.2m from 3Q 2021). Profit margin: 13% (up from net loss in 3Q 2021). Revenue missed analyst estimates by 13%. Earnings per share (EPS) exceeded analyst estimates by 37%. Revenue is forecast to grow 15% p.a. on average during the next 3 years, compared to a 8.1% growth forecast for the Energy Services industry in Canada. Over the last 3 years on average, earnings per share has increased by 88% per year but the company’s share price has only increased by 80% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Oct 22
Investor sentiment improved over the past week After last week's 20% share price gain to CA$5.62, the stock trades at a forward P/E ratio of 4x. Average forward P/E is 7x in the Energy Services industry in Canada. Total returns to shareholders of 319% over the past three years. Announcement • Oct 18
STEP Energy Services Ltd. to Report Q3, 2022 Results on Nov 02, 2022 STEP Energy Services Ltd. announced that they will report Q3, 2022 results at 4:00 PM, US Eastern Standard Time on Nov 02, 2022 Recent Insider Transactions Derivative • Oct 05
VP of Legal & General Counsel exercised options and sold CA$66k worth of stock On the 30th of September, Joshua Kane exercised 28k options at a strike price of around CA$2.14 and sold these shares for an average price of CA$4.50 per share. This trade did not impact their existing holding. Since December 2021, Joshua's direct individual holding has increased from 107.09k shares to 112.81k. Company insiders have collectively sold CA$872k more than they bought, via options and on-market transactions in the last 12 months. Recent Insider Transactions • Sep 26
President & COO recently bought CA$100k worth of stock On the 19th of September, Stephen Glanville bought around 18k shares on-market at roughly CA$5.45 per share. This transaction amounted to 12% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Stephen has been a buyer over the last 12 months, purchasing a net total of CA$146k worth in shares. Valuation Update With 7 Day Price Move • Sep 23
Investor sentiment deteriorated over the past week After last week's 16% share price decline to CA$4.63, the stock trades at a forward P/E ratio of 3x. Average forward P/E is 6x in the Energy Services industry in Canada. Total returns to shareholders of 213% over the past three years. Announcement • Sep 02
STEP Energy Services Ltd. Announces CEO Changes STEP Energy Services Ltd. announced that Mr. Regan Davis, STEP's chief executive officer, will retire as CEO of STEP effective September 30, 2022. Mr. Davis is a founding member of STEP and served as its CEO since the Company's inception in 2011. Steve Glanville, STEP's current President and Chief Operating Officer will assume the President and CEO role and replace Mr. Davis as an executive director on STEP's board. Valuation Update With 7 Day Price Move • Aug 17
Investor sentiment improved over the past week After last week's 16% share price gain to CA$5.64, the stock trades at a forward P/E ratio of 4x. Average forward P/E is 8x in the Energy Services industry in Canada. Total returns to shareholders of 244% over the past three years. Reported Earnings • Aug 11
Second quarter 2022 earnings: EPS and revenues exceed analyst expectations Second quarter 2022 results: EPS: CA$0.56 (up from CA$0.15 loss in 2Q 2021). Revenue: CA$273.0m (up 154% from 2Q 2021). Net income: CA$38.1m (up CA$48.6m from 2Q 2021). Profit margin: 14% (up from net loss in 2Q 2021). Revenue exceeded analyst estimates by 6.8%. Earnings per share (EPS) also surpassed analyst estimates by 127%. Over the next year, revenue is forecast to grow 34%, compared to a 15% growth forecast for the industry in Canada. Over the last 3 years on average, earnings per share has increased by 61% per year but the company’s share price has only increased by 54% per year, which means it is significantly lagging earnings growth. Recent Insider Transactions Derivative • Jun 04
CEO & Director exercised options and sold CA$251k worth of stock On the 2nd of June, Regan Davis exercised options to acquire 49k shares at no cost and sold these for an average price of CA$5.10 per share. This trade did not impact their existing holding. For the year to December 2017, Regan's total compensation was 30% salary and 70% other compensation. This indicates that these sales could comprise a meaningful part of their income for the year. Since December 2021, Regan has owned 193.14k shares directly. Company insiders have collectively sold CA$471k more than they bought, via options and on-market transactions in the last 12 months. Reported Earnings • May 13
First quarter 2022 earnings: EPS and revenues exceed analyst expectations First quarter 2022 results: EPS: CA$0.14 (up from CA$0.12 loss in 1Q 2021). Revenue: CA$219.5m (up 61% from 1Q 2021). Net income: CA$9.17m (up CA$17.1m from 1Q 2021). Profit margin: 4.2% (up from net loss in 1Q 2021). Revenue exceeded analyst estimates by 6.7%. Earnings per share (EPS) also surpassed analyst estimates by 35%. Over the next year, revenue is forecast to grow 30%, compared to a 14% growth forecast for the industry in Canada. Over the last 3 years on average, earnings per share has increased by 36% per year but the company’s share price has only increased by 23% per year, which means it is significantly lagging earnings growth. Price Target Changed • Apr 28
Price target increased to CA$4.93 Up from CA$4.43, the current price target is an average from 7 analysts. New target price is 25% above last closing price of CA$3.95. Stock is up 193% over the past year. The company is forecast to post earnings per share of CA$0.24 next year compared to a net loss per share of CA$0.41 last year. Board Change • Apr 27
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 3 experienced directors. 4 highly experienced directors. Independent Director Evelyn Angelle was the last director to join the board, commencing their role in 2019. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Price Target Changed • Apr 22
Price target increased to CA$4.71 Up from CA$4.14, the current price target is an average from 7 analysts. New target price is 16% above last closing price of CA$4.06. Stock is up 227% over the past year. The company is forecast to post earnings per share of CA$0.24 next year compared to a net loss per share of CA$0.41 last year. Announcement • Apr 09
STEP Energy Services Ltd., Annual General Meeting, Jun 23, 2022 STEP Energy Services Ltd., Annual General Meeting, Jun 23, 2022. Announcement • Apr 06
STEP Energy Services Ltd. to Report Q1, 2022 Results on May 11, 2022 STEP Energy Services Ltd. announced that they will report Q1, 2022 results After-Market on May 11, 2022 Price Target Changed • Apr 01
Price target increased to CA$4.14 Up from CA$3.86, the current price target is an average from 7 analysts. New target price is 34% above last closing price of CA$3.10. Stock is up 133% over the past year. The company is forecast to post earnings per share of CA$0.26 next year compared to a net loss per share of CA$0.41 last year. Reported Earnings • Mar 18
Full year 2021 earnings: EPS and revenues exceed analyst expectations Full year 2021 results: CA$0.41 loss per share (up from CA$1.77 loss in FY 2020). Revenue: CA$536.3m (up 45% from FY 2020). Net loss: CA$28.1m (loss narrowed 76% from FY 2020). Revenue exceeded analyst estimates by 3.6%. Earnings per share (EPS) also surpassed analyst estimates by 13%. Over the next year, revenue is forecast to grow 29%, compared to a 16% growth forecast for the industry in Canada. Over the last 3 years on average, earnings per share has increased by 14% per year but the company’s share price has only increased by 3% per year, which means it is significantly lagging earnings growth. Price Target Changed • Mar 18
Price target increased to CA$3.54 Up from CA$2.88, the current price target is an average from 7 analysts. New target price is 68% above last closing price of CA$2.10. Stock is up 36% over the past year. Announcement • Feb 18
STEP Energy Services Ltd. to Report Q4, 2021 Results on Mar 16, 2022 STEP Energy Services Ltd. announced that they will report Q4, 2021 results After-Market on Mar 16, 2022 Board Change • Dec 05
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 2 experienced directors. 4 highly experienced directors. Independent Director Evelyn Angelle was the last director to join the board, commencing their role in 2019. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Board Change • Dec 05
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 2 experienced directors. 4 highly experienced directors. Independent Director Evelyn Angelle was the last director to join the board, commencing their role in 2019. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Nov 06
Third quarter 2021 earnings released: CA$0.05 loss per share (vs CA$0.14 loss in 3Q 2020) The company reported a solid third quarter result with reduced losses, improved revenues and improved control over expenses. Third quarter 2021 results: Revenue: CA$133.2m (up 114% from 3Q 2020). Net loss: CA$3.39m (loss narrowed 65% from 3Q 2020). Over the last 3 years on average, earnings per share has fallen by 15% per year but the company’s share price has only fallen by 9% per year, which means it has not declined as severely as earnings. Price Target Changed • Oct 27
Price target increased to CA$2.68 Up from CA$2.50, the current price target is an average from 7 analysts. New target price is 31% above last closing price of CA$2.05. Stock is up 336% over the past year. The company is forecast to post a net loss per share of CA$0.38 next year compared to a net loss per share of CA$1.77 last year. Major Estimate Revision • Aug 18
Consensus EPS estimates increase to -CA$0.38 The consensus outlook for earnings per share (EPS) in 2021 has improved. 2021 revenue forecast increased from CA$499.0m to CA$532.7m. EPS estimate increased from -CA$0.46 to -CA$0.38. Energy Services industry in Canada expected to see average net income decline 2.2% next year. Consensus price target up from CA$2.20 to CA$2.46. Share price fell 9.0% to CA$1.42 over the past week. Price Target Changed • Aug 13
Price target increased to CA$2.46 Up from CA$2.20, the current price target is an average from 6 analysts. New target price is 61% above last closing price of CA$1.53. Stock is up 226% over the past year. Breakeven Date Change • Aug 13
No longer forecast to breakeven The 6 analysts covering STEP Energy Services no longer expect the company to break even during the foreseeable future. The company was expected to make a profit of CA$11.8m in 2023. New consensus forecast suggests the company will make a loss of CA$26.5m in 2023. Reported Earnings • Aug 12
Second quarter 2021 earnings released: CA$0.16 loss per share (vs CA$0.60 loss in 2Q 2020) The company reported a solid second quarter result with reduced losses, improved revenues and improved control over expenses. Second quarter 2021 results: Revenue: CA$107.5m (up 165% from 2Q 2020). Net loss: CA$10.6m (loss narrowed 74% from 2Q 2020). Over the last 3 years on average, earnings per share has fallen by 43% per year whereas the company’s share price has fallen by 42% per year. Price Target Changed • Jun 15
Price target increased to CA$2.10 Up from CA$1.92, the current price target is an average from 7 analysts. New target price is 30% above last closing price of CA$1.61. Stock is up 204% over the past year. Major Estimate Revision • May 19
Consensus forecasts updated The consensus outlook for 2021 has been updated. 2021 revenue forecast increased from CA$454.8m to CA$488.5m. Forecast EPS reduced from -CA$0.47 to -CA$0.53 per share. Energy Services industry in Canada expected to see average net income growth of 15% next year. Consensus price target broadly unchanged at CA$1.92. Share price fell 4.9% to CA$1.35 over the past week. Reported Earnings • May 13
First quarter 2021 earnings released: CA$0.12 loss per share (vs CA$0.78 loss in 1Q 2020) The company reported a decent first quarter result with reduced losses and improved control over expenses, although revenues were weaker. First quarter 2021 results: Revenue: CA$136.8m (down 30% from 1Q 2020). Net loss: CA$7.94m (loss narrowed 85% from 1Q 2020). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 17 percentage points per year, which is a significant difference in performance. 