Current STEP:CA Stock Info

STEP Energy Services (ticker: STEP) completed its initial public offering on May 2nd, 2017, offering ten million common shares at ten dollars per share.

STEP began its business in the realm of coiled tubing applications in March, 2011. But later the business grew until STEP now offers a fully diversified product line for operators, offering everything from fracturing to nitrogen injection.

Operations

Within the company’s fracturing division—focused in Canada—STEP has a fleet that represents 290,000 HHP of pressure pumping capability—with an emphasis in the Montney and Duvernay.  STEP still offers coiled tubing in both the United States and Canada.

STEP Energy Services: Fresh off IPO, Growing Frac Horsepower with $100 Million Budget

Source: STEP Energy Services

The company also specializes in diverting agent design in its STEP-PLEX™ division, which engineers and utilizes blocking agents to prevent fluid loss and lost circulation and to improve conductivity. In its chemical laboratory solutions division, STEP focuses on optimal designs for the chemicals used in STEP’s fracturing fluids.

The company offers more generalized fluid pumping for use in supporting coiled tubing operations, pumpdown services for frac-plugs, and diagnostic fracture injections tests—or DFITs. Lastly, STEP offers nitrogen pumping services for use anything from cleanouts and purges to nitrified fracturing foams assists.

Strong Q1 growth

In the company’s first quarter of 2017, it received $118 million in revenue and noted that that value was a 328% increase from Q1, 2016, and an 84% increase from Q4, 2016. The company attributed this growth to strong demand and improved pricing. Significant growth in North American drilling activity—bolstered by generally higher oil prices—generated a significant demand for STEP’s services.

In STEP’s fracturing services division in particular, some drilling and completion programs had to be delayed to Q2, 2017 due to the industry-wide high demand for fracturing equipment and services. The same increase in demand allowed the company to increase its pricing for its services, partially to account for inflation in the inputs to its services, such as proppant, chemicals, and hauling.

High demand for STEP’s services is reflected in the allocation of its capital budget, which was recently increased to $100 million from approximately $84 million. The capital program has been designed to accommodate one new coiled tubing spread in Canada, five fracturing spreads, four coiled tubing spreads in the U.S., and maintenance and support equipment. Two of the five fracturing spreads were deployed in Q1, 2017.

STEP also indicated that it intends to re-staff two coiled tubing units in Canada by the end of 2017. Following the success of its capital development program, STEP will have a capacity of 13 coiled-tubing spreads in Canada, eight fracturing spreads in Canada, and eight coiled tubing spreads in the United States.

STEP Energy Services is presenting at EnerCom’s The Oil & Gas Conference® 22

STEP will be a presenting company at the upcoming EnerCom conference in Denver, Colorado—The Oil & Gas Conference® 22.

The conference is EnerCom’s 22nd Denver-based oil and gas focused investor conference, bringing together publicly traded E&Ps and oilfield service and technology companies with institutional investors.  The conference will be at the Denver Downtown Westin Hotel, August 13-17, 2017. To register for The Oil & Gas Conference® 22 please visit the conference website.

STEP Energy Services: Fresh off IPO, Growing Frac Horsepower with $100 Million Budget


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