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FOURTH QUARTER 2024 OVERVIEW

Natural gas prices in the fourth quarter recovered, with the average benchmark U.S. Henry Hub and Canadian AECO natural gas prices increasing from the third quarter of 2024. Henry Hub averaged $3.00 per MMBtu (USD) in Q4, up from $2.23 per MMBtu in Q3 2024, while AECO averaged $2.02 per Mcf (CAD) in Q4, up from $0.85 per Mcf in Q3 2024. Natural gas prices typically rally into the winter heating season, with colder weather driving higher demand. Oil prices traded in a tight range, with the benchmark West Texas Intermediate ("WTI") crude price averaging $70.34 per barrel (USD) in Q4, down from $75.21 per barrel in Q3 2024, over concerns about weakening global demand and excess supply.

Oilfield service levels are primarily reflected in drilling rig counts publicly reported by Baker Hughes and estimates made by Primary Vision for fracturing crews in the U.S. land based drilling rigs in the U.S. were stable, with an average of 569 rigs in the fourth quarter, in line with the 565 in the third quarter of 2024 but down from the 600 rigs in the fourth quarter of 2023. Canadian rig counts averaged 194 during the fourth quarter, down from 207 in the third quarter but up from the 180 rigs in the fourth quarter of 2023. U.S. fracturing fleets declined in the fourth quarter to an average of 224, down from 234 in the third quarter of 2024 and down from 267 in the fourth quarter of 2023. Declines in the fourth quarter are typical as producer budgets are exhausted and the Christmas and New Year holidays result in lower December activity.

STEP’s Canadian geographic region generated quarterly revenue of $110.0 million and Adjusted EBITDA of $10.8 million, which was sequentially lower than the third quarter of 2024 and slightly below fourth quarter performance in 2023. STEP’s focus on working with clients with larger scale programs has been a key factor in maintaining a baseline level of activity in the fourth quarter for both the fracturing and coiled tubing service lines. STEP’s U.S. geographic region generated quarterly revenue of $37.4 million and an Adjusted EBITDA loss of $3.1 million, a decline sequentially and year over year. The decline in drilling activity in the U.S. resulted in a slow down in coiled tubing and fracturing activity and reduced financial performance.

STEP’s consolidated revenue in the fourth quarter was $147.5 million, down $47.6 million from the same period last year, and Adjusted EBITDA of $4.1 million (3% Adjusted EBITDA margin) was down from $18.4 million (9% Adjusted EBITDA margin) in the same period last year. The margin compression is the result of the activity declines in the U.S. and ongoing pricing pressures in both the U.S. and Canada as well as the cumulative effect of several years of high inflation and deteriorating foreign exchange rates which have increased the Company’s cost profile.

Net loss was $44.6 million in Q4 2024 ($0.62 diluted loss per share), sequentially lower than the $5.5 million loss in Q3 2024 ($0.08 diluted loss per share) and the $5.2 million loss in Q4 2023 ($0.07 diluted loss per share). Net loss included $2.5 million in share‐based compensation expense (Q3 2024 ‐ $1.0 million, Q4 2023 ‐ $0.8 million expense), transaction costs of $2.2 million related to the arrangement agreement discussed above (Q3 2024 – nil, Q4 2023 – nil), impairment expense of $23.9 million (Q3 2024 – $12.7 million, Q4 2023 – nil) and $2.4 million in finance costs (Q3 2024 ‐ $4.3 million, Q4 2023 ‐ $2.6 million).

Free Cash Flow was negative $16.6 million in Q4 2024 ($0.23 diluted negative Free Cash Flow per share), sequentially lower than the positive $28.4 million in Q3 2024 and the negative $4.5 million in Q4 2023. Large client receipts near the end of the quarter resulted in Net Debt decreasing to $52.7 million at the close of Q4 2024 from $60.7 million at close of Q3 2024. Net Debt is now $255 million lower than peak levels in 2018. The reduction in Net Debt and improvement in Adjusted EBITDA resulted in a 12-month trailing Funded Debt to Adjusted Bank EBITDA of 0.43:1.00, well under the limit of 3.00:1 in the Company’s Credit Facilities (as defined in Capital Management – Debt below). Phase two of STEP’s shareholder return framework was the initiation of a NCIB in late 2023. Although the NCIB was paused mid-year, 1,873,134 shares were repurchased under the NCIB program during 2024 at a weighted average price of $4.17 per share.

MARKET OUTLOOK

STEP is approaching 2025 with cautious optimism. Benchmark oil prices are expected to trade in a relatively tight band as global demand is not expected to meaningfully increase, although returns to Canadian producers are expected to increase with the full year operation of the Trans Mountain Expansion Project ("TMX"). This project was completed in mid-2024 and added nearly 600,000 barrels of oil per day in capacity to the existing Trans Mountain Pipeline. In contrast to the range bound oil prices, natural gas prices are expected to increase through the year as LNG production is expected to take a big step forward in both Canada and the U.S. After many years of anticipation, LNG Canada is expected to begin shipping liquefied natural gas mid-year, with full operation expected by the fourth quarter. This will add 2.1 billion cubic feet ("Bcf") per day in demand to the Western Canadian Sedimentary Basin ("WCSB") production that already produces approximately 19 Bcf per day. Several large projects in the U.S. are also expected to reach completion in the second half of the year, adding 2.6 Bcf per day in demand to the U.S. gas market.

Looking further into 2026, an additional 3 to 4 Bcf per day in demand is expected and the U.S. Energy Information Administration ("EIA") is projecting that LNG capacity will double to almost 25 Bcf per day by 2028, with additional projects expected to be added following the decision by the new U.S. Administration to reverse the freeze on LNG export permit approvals. Collectively these projects demonstrate that North America is becoming a cornerstone supplier of reliable energy to the world, providing constructive economic conditions for North American producers and service providers.

The forecasted growth in 2025 is expected to begin drawing down storage levels, which are at the top end of the five-year range. This constructive outlook for natural gas is reflected in Henry Hub strip pricing and the U.S. EIA 2025 forecast of $3.80 per mmBTU¹, up from $2.20 in 2024. Canadian AECO pricing continues to trade at a discount to the U.S. prices but the ramp up of LNG Canada is expected to narrow the differential into the autumn, similar to the narrowing that was seen in the differentials between Canadian oil and WTI when the TMX started flowing.

The constructive commodity price backdrop is supporting modest client growth. STEP clients have provided guidance that the completions portion of their 2025 capital budget will be up slightly over 2024, with potential to increase if prices and demand hold strong into the year end. The dynamic political situation in both Canada and the U.S. is adding uncertainty, particularly for Canadian energy producers and oilfield service companies. The recent decision by the U.S. government to levy tariffs on certain Canadian goods and the retaliatory response from the Canadian government has created considerable economic uncertainty. The uncertainty creates financial risk to input costs and revenues, and while STEP has taken action to lessen the impact of these actions the Company cautions that this situation remains unpredictable.

Canada

Canadian activity levels are expected to increase year over year. Completion of major projects such as the TMX and LNG Canada are expected to add demand to a market that has been largely egress constrained. The secondary beneficiaries of the TMX expansion are the producers of condensate, which is a natural gas liquid ("NGL") that is used by the heavy oil producers to dilute their heavy crude for transport. Canada remains a net importer of condensate, giving liquids rich natural gas producers in the WCSB premium access and pricing for their product. Natural gas producers will also benefit from the increase in demand for their product once LNG Canada begins operations this year.

The Montney and Duvernay plays in Alberta and British Columbia ("B.C.") are expected to be the primary growth engines for the growing gas and NGL demand. The Montney is a prolific gas producing play that produces roughly half of Canada’s gas production and is still recognized to be in the very early stages. The B.C. government has estimated that the play holds approximately 4,274 trillion cubic feet ("Tcf") of natural gas, of which 449 Tcf are recoverable using their base case recovery factor of approximately 10.5%. A recent report by RBC Capital Markets² estimated that only 8% of recoverable gas had been produced by late 2023. The Duvernay is a growing domestic source of NGLs that will supplement imported condensate and will be critical in supporting the Alberta government’s drive to increase oilsands production in the province. STEP’s fracturing and coiled tubing equipment was specifically designed for the high pressure, continuous duty work that is needed in these basins.

First quarter activity in Canada is expected to be robust, with high utilization across the Company’s fracturing and coiled tubing fleets. Strategic alignment with key clients has driven strong activity in January and February, with sand volumes tracking ahead of Q1 2024 volumes. STEP’s industry leading logistics fleet has handled a significant proportion of this volume, delivering additional value to the business. Coiled tubing, pumping and nitrogen services are similarly busy, with activity in line with Q1 2024 levels. A shift in completion design with a key client in the Montney towards single point entry has driven high utilization on coiled tubing, providing steady activity for two units in a service line that is highly dependent on call out work. STEP’s coiled tubing service line set a company record of 299 stages completed using this completion design, with the combined services pumping 14,043 tonnes of proppant on a simul-frac operation.

Weather conditions are unpredictable in Q1, swinging between the extreme cold experienced in February to the uncertain onset of spring break up in March, but are anticipated to have only modest impact on operations. STEP’s fracturing services are primarily engaged on large pads, where continuous pumping operations are less affected by the extreme cold. Timing of spring break up could have some impact if reduced day time weights are mandated on roads, but the large pads allow for some reserve sand stockpiling overnight to keep operations flowing. Reduced loads will likely place additional strain on industry third party trucking capacity, but STEP’s logistics fleet will insulate the Company from the expected increase in third party trucking rates.

Pricing for services has improved sequentially from the fourth quarter of 2024 but remains lower than the first quarter of 2024. The weakening of the Canadian dollar against the U.S. dollar has led to further margin compression, particularly on proppant.

The schedule for the second quarter of 2025 is taking shape, with expectations for a similar quarter to the same period in 2024. As usual, the schedule is subject to client readiness and weather conditions, which may shift work between quarters with limited notice. Second half of the 2025 year activity is difficult to project with certainty, but STEP has a good base of work already scheduled and is actively working to secure additional work, particularly in the fourth quarter. The expected first delivery of cargo from the LNG Canada facility in early Q3 could spur additional activity in the second half of the year.

United States

U.S. activity levels are expected to remain relatively stable for the first half of the year, with some cautious optimism that activity could increase in the second half with the completion of several large LNG products. Natural gas prices have rebounded considerably from 2024 levels, buoyed by cold weather that has drawn down natural gas inventories, providing stability that has eluded that part of the industry for much of 2024.

The reset of E&P budgets into the new year has provided a modest lift to oilfield service levels. Drilling rig and fracturing crew counts have recovered from the weak activity levels in late 2024, which has also led to improvement in coiled tubing activity. STEP reactivated a unit that was idled in Q4 2024, bringing total active units back to 12 midway through the first quarter and expects to reactivate another unit during the first half of 2025 if demand for our services continues to grow. Market activity is expected to be similar to Q1 2024 levels, despite the weather related delays earlier in the quarter. Demand for STEP’s coiled tubing technology continues to increase, particularly for the equipment that is capable of servicing the ultra deep wells with laterals of up to four miles. The technological differentiation allows STEP to realize higher pricing on the specialized work, but pricing on the conventional coiled tubing work remains very competitive, driven by a surplus of equipment.

The fracturing market has recovered sequentially, but conditions remain challenging and activity remains below 2024 levels. The significant consolidation in the E&P space that occurred in 2024 resulted in a reduction in the number of drilling rigs and fracturing crews, intensifying the price competition for the remaining service providers. One of STEP’s two dual fuel fracturing crews was utilized for much of the first quarter of 2025 but despite performing well, subsequent work was awarded to a larger competitor for the balance of the year, repeating a pattern STEP experienced repeatedly in 2024. As E&P clients continue to grow in scale through consolidation, smaller service providers have found it increasingly difficult to compete as the E&Ps demand larger scale service providers to support their larger consolidated operations. After careful consideration of options, STEP has determined that it is in the best interests of the Company to suspend operations in the U.S. fracturing service line and begin an orderly wind down process once the remaining Q1 2025 work scope is complete.

Consolidated

STEP’s focus for 2025 is on improvement of margins and generation of Free Cash Flow. The Company will continue to advance its shareholder return strategy through the NCIB and reducing balance sheet leverage while also selectively investing in upgrading the Company’s asset base.

CANADIAN FINANCIAL AND OPERATIONS REVIEW

STEP has a fleet of 16 coiled tubing units in the WCSB, all of which are designed to service the deepest wells in the basin. STEP’s fracturing business primarily focuses on the deeper, more technically challenging plays in Alberta and northeast British Columbia. STEP deploys, or idles, coiled tubing units and fracturing horsepower as dictated by the market’s ability to support targeted utilization and economic returns.

FOURTH QUARTER 2024 COMPARED TO FOURTH QUARTER 2023

Revenue for the three months ended December 31, 2024 was $110.0 million compared to $112.2 million for the same period of the prior year.

STEP continued to benefit in Q4 from alignment with clients that have large multi-well pads which provide a baseline of utilization throughout the year. The large fracturing pad operations were supplemented in Q4 by smaller work programs, creating a diverse client mix and supporting utilization for this service line. While operating days declined slightly, daily proppant volumes continued to increase compared to the prior year.

The Canadian coiled tubing operations continued to improve compared to the prior year with operating days increasing by 2% to 522 operating days in the period from 510 operating days in the same period in 2023. Client alignment continues to be a key driver for the improvements for coiled tubing operations through the long-term contracts secured with key clients in the highly utilized Montney basin.

Adjusted EBITDA for the fourth quarter of 2024 was $10.8 million (10% of revenue) versus $15.0 million (13% of revenue) in the fourth quarter of 2023. The decrease in Adjusted EBITDA reflects the lower fracturing activity during the period, combined with some erosion in margins due to competitive and inflationary pressures.

FULL YEAR 2024 COMPARED TO FULL YEAR 2024

Revenue for the year ended December 31, 2024 was $722.7 million compared to $580.2 million for the year ended December 31, 2023. The exceptional first half of 2024 allowed STEP to generate record activity and revenue levels for the full year in both Canadian service lines.

STEP’s focus on modernizing its fracturing fleet and strategic alignment with clients that have a large work scope resulted in a 32% increase in operating days for the fracturing service line to 1,321, up from 1,004 in 2023. Increased utilization and higher fracturing intensity have been a significant benefit to the fracturing service line. STEP pumped 1,865,200 tonnes of proppant in 2024, which exceeded the prior year’s annual volume by 727,600 tonnes, an increase of 64% compared to the 1,137,600 tonnes pumped in 2023. STEP’s sand logistics services, which is among the largest in the basin, hauled two thirds of the STEP supplied proppant pumped in 2024. Supplying this logistics capacity improves efficiency and reduces costs for the Company and its clients.

Coiled tubing operations saw operating days increase by 18% to 2,213 for the 2024 year from 1,878 during the comparable period of 2023. Utilization in coiled tubing improved to 60% in 2024 up from 57% in 2023, while running meters increased 26% from 2023. STEP continued to leverage its technical expertise to attract additional market share, driving the increase in utilization and running meters, resulting in a 23% increase in revenue from the prior year.

The increased utilization across the entire Canadian operations has resulted in a significant boost to profitability of this region. Canadian operations generated a record Adjusted EBITDA of $169.0 million (23% of revenue) for year ended December 31, 2024 compared to $134.4 million (23% of revenue) in the same period of 2023.

UNITED STATES FINANCIAL AND OPERATIONS REVIEW

STEP has a fleet of 19 coiled tubing units in the Permian and Eagle Ford basins in Texas, the Bakken basin in North Dakota, and the Uinta-Piceance and Niobrara-DJ basins in Colorado while the U.S. fracturing business primarily operates in the Permian and Eagle Ford basins in Texas. The Company deploys or idles coiled tubing units and fracturing horsepower as dictated by the market’s ability to support targeted utilization and economic returns.

FOURTH QUARTER 2024 COMPARED TO FOURTH QUARTER 2023

Revenue for the three months ended December 31, 2024 was $37.4 million compared to $82.8 million for the three months ended December 31, 2023.

STEP’s U.S. fracturing operations remained impacted by an oversupply of fracturing equipment, limiting activity to just 16 operating days in the fourth quarter of 2024 compared to 129 days in the same period in 2023. Performance of the active fleet exceeded client expectations, but additional work was lost to a competitor with lower pricing. STEP carried additional costs in the fracturing service line during the quarter to maintain readiness for first quarter operations and future optionality as it evaluated different scenarios for the future of the service line. Subsequent to the year end, STEP determined that the market conditions could not support ongoing operations and that it would proceed with an orderly wind down of operations following completion of the work scope in Q1 2025. As a result of this deterioration in economic conditions, an additional $23.9 million of impairment expense was recognized in the period in the U.S. fracturing CGU.

Challenging market conditions also had an impact on the U.S. coiled tubing operations as operating days fell 19% to 611 days compared to 753 days for the same period in 2023. While STEP has been able to maintain its strong relationships with key clients in each basin, budget exhaustion combined with a challenging spot market had a negative impact on the U.S. coiled tubing results in the quarter. The tight market conditions resulted in STEP scaling back to 11 active coiled tubing units in the fourth quarter.

U.S. operations generated an Adjusted EBITDA loss of $3.1 million (8% of revenue) for the fourth quarter 2024 versus Adjusted EBITDA of $7.2 million (9% of revenue) for the fourth quarter 2023. The decline in profitability was largely driven by the decline experienced in the U.S. fracturing operations as coiled tubing operations continued to provide positive results during the period.

FULL YEAR 2024 COMPARED TO FULL YEAR 2023

Revenue for the year ended December 31, 2024 was $232.3 million compared to $365.8 million for the year ended December 31, 2023.

Operating days for the U.S. coiled tubing operations declined by 4% year over year, although the momentum generated during the first half of the year slowed in the second half of the year. The relatively consistent utilization for the coiled tubing service line reflects the alignment with key clients in each operating basin which provides operating stability, however, an oversupplied market has led to some pricing pressure over the second half of 2024 and a decrease in spot market work.

Operating days for the U.S. fracturing operations decreased to 215 days in the year from 631 days during the same period of 2023. Weak natural gas prices and the consolidation of many large producers resulted in lower completion activity, driving pricing lower as an oversupply of fracturing equipment competed for less work. STEP participated selectively during the year but many of the bids did not meet the minimum return metrics required, so the contribution from this service line was reduced. Subsequent to the year end, STEP determined that the market conditions could not support ongoing operations and that it would proceed with an orderly wind down of operations. As a result of this deterioration in economic conditions, a further $23.9 million of impairment expense was recognized in the period in the U.S. fracturing CGU, bringing the total impairment to $36.7 million in the U.S. fracturing CGU for the year ended December 31, 2024.

Adjusted EBITDA of $17.8 million (8% of revenue) for the 2024 year was significantly lower than Adjusted EBITDA of $45.7 million (13% of revenue) for the 2023 year, largely due to the difficult conditions in the U.S. fracturing market.

CORPORATE FINANCIAL REVIEW

The Company’s corporate activities are separated from Canadian and U.S. operations. Corporate operating expenses include expenses related to asset reliability and optimization teams, as well as general and administrative costs which include costs associated with the executive team, the Board of Directors, public company costs and other activities that benefit Canadian and U.S. operating segments collectively.

FOURTH QUARTER 2024 COMPARED TO FOURTH QUARTER 2023

For the three months ended December 31, 2024, expenses from corporate activities were $7.6 million compared to expenses of $4.0 million for the same period in 2023 due to the mark to market adjustment on cash settled share-based compensation in the current period, as well as transaction costs of $2.2 million associated with the proposed take private arrangement. The cash settled share-based compensation expense was $1.6 million higher in Q4 2024 relative to Q4 2023, as the Company’s share price increased by $0.48 from September 30, 2024 to December 31, 2024 compared to a share price decrease of $0.32 during the same period of the prior year. Adjusted EBITDA loss of $3.7 million for the three months ended December 31, 2024 remained in line with Adjusted EBITDA loss of $3.8 million for the same period in 2023.

FULL YEAR 2024 COMPARED TO FULL YEAR 2023

For the year ended December 31, 2024 expenses from corporate activities were $24.2 million compared to $16.1 million for the same period in 2023. Cash settled share-based compensation expense was higher in 2024 as the share price increased $0.39 from December 31, 2023 to December 31, 2024 compared to a share price decrease of $1.41 during the same period of the prior year. As a result, share-based compensation expense went from a $3.8 million recovery in 2023 to a $1.8 million expense in 2024, a variance of $5.6 million. Additionally, transaction costs of $2.2 million were incurred in 2024 related to the proposed take private transaction ($nil, 2023). Adjusted EBITDA loss of $17.7 million for the year ended December 31, 2024 was greater than the Adjusted EBITDA loss of $16.5 million for the same period of the prior year.

NON-IFRS MEASURES AND RATIOS

This Press Release includes terms and performance measures commonly used in the oilfield services industry that are not defined under IFRS. The terms presented are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These non-IFRS measures have no standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers. The non-IFRS measures should be read in conjunction with the Company’s quarterly financial statements and Annual Financial Statements and the accompanying notes thereto.

"Adjusted EBITDA" is a financial measure not presented in accordance with IFRS and is equal to net (loss) income before finance costs, depreciation and amortization, (gain) loss on disposal of property and equipment, current and deferred income tax provisions and recoveries, equity and cash settled share-based compensation, transaction costs, foreign exchange forward contract (gain) loss, foreign exchange (gain) loss, and impairment losses. "Adjusted EBITDA %" is a non-IFRS ratio and is calculated as Adjusted EBITDA divided by revenue. Adjusted EBITDA and Adjusted EBITDA % are presented because they are widely used by the investment community as they provide an indication of the results generated by the Company’s normal course business activities prior to considering how the activities are financed and the results are taxed. The Company uses Adjusted EBITDA and Adjusted EBITDA % internally to evaluate operating and segment performance, because management believes they provide better comparability between periods. The following table presents a reconciliation of the non-IFRS financial measure of Adjusted EBITDA to the IFRS financial measure of net income.

"Free Cash Flow" is a financial measure not presented in accordance with IFRS and is equal to net cash provided by operating activities adjusted for changes in non-cash Working Capital from operating activities, sustaining capital expenditures, term loan principal repayments and lease payments (net of sublease receipts). The Company may deduct or include additional items in its calculation of Free Cash Flow that are unusual, non-recurring or non-operating in nature. Free Cash Flow is presented as this measure is widely used in the investment community as an indication of the level of cash flow generated by ongoing operations. Management uses Free Cash Flow to evaluate the adequacy of internally generated cash flows to manage debt levels, invest in the growth of the business or return capital to shareholders. The following table presents a reconciliation of the non-IFRS financial measure of Free Cash Flow to the IFRS financial measure of net cash provided by operating activities.

"Free Cash Flow per share-basic" is a financial measure not presented in accordance with IFRS and is equal to Free Cash Flow divided by the weighted average number of shares outstanding – basic. Management uses Free Cash Flow per share-basic to evaluate the adequacy of internally generated cash flows to manage debt levels, invest in the growth of the business or return capital to shareholders on a normalized per basic share basis. The following table presents a reconciliation of the non-IFRS financial measure of Free Cash Flow per share-basic to the IFRS financial measure of net cash provided by operating activities.

"Free Cash Flow per share-diluted" is a financial measure not presented in accordance with IFRS and is equal to Free Cash Flow divided by the weighted average number of shares outstanding – diluted. Management uses Free Cash Flow per share-basic to evaluate the adequacy of internally generated cash flows to manage debt levels, invest in the growth of the business or return capital to shareholders on a normalized per diluted share basis. The following table presents a reconciliation of the non-IFRS financial measure of Free Cash Flow per share-basic to the IFRS financial measure of net cash provided by operating activities.

"Working Capital", "Total long-term financial liabilities" and "Net Debt" are financial measures not presented in accordance with IFRS. "Working Capital" is equal to total current assets less total current liabilities. "Total long-term financial liabilities" is comprised of loans and borrowings, long-term lease obligations and other liabilities. "Net Debt" is equal to loans and borrowings before deferred financing charges less cash and cash equivalents and CCS derivatives. The data presented is intended to provide additional information about items on the statement of financial position and should not be considered in isolation or as a substitute for measures prepared in accordance with IFRS.

The following table represents the composition of the non-IFRS financial measure of Working Capital (including cash and cash equivalents).

The following table presents the composition of the non-IFRS financial measure of Total long-term financial liabilities.

The following table presents the composition of the non-IFRS financial measure of Net Debt.

RISK FACTORS AND RISK MANAGEMENT

The oilfield services industry involves many risks, which may influence the ultimate success of the Company. The risks and uncertainties set out in the AIF and Annual MD&A are not the only ones the Company is facing. There are additional risks and uncertainties that the Company does not currently know about or that the Company currently considers immaterial which may also impair the Company’s business operations and can cause the price of the Common Shares to decline. Readers should review and carefully consider the disclosure provided under the heading "Risk Factors" in the AIF and "Risk Factors and Risk Management" in the Annual MD&A, both of which are available on www.sedarplus.ca, and the disclosure provided in this Press Release under the headings "Market Outlook". In addition, global and national risks associated with inflation or economic contraction may adversely affect the Company by, among other things, reducing economic activity resulting in lower demand, and pricing, for crude oil and natural gas products, and thereby the demand and pricing for the Company’s services. Other than as supplemented in this Press Release, the Company’s risk factors, and management thereof has not changed substantially from those disclosed in the AIF and Annual MD&A.

FORWARD-LOOKING INFORMATION & STATEMENTS

Certain statements contained in this Press Release constitute "forward-looking statements" or "forward-looking information" within the meaning of applicable securities laws (collectively, "forward-looking statements"). These statements relate to the expectations of management about future events, results of operations and the Company’s future performance (both operational and financial) and business prospects. All statements other than statements of historical fact are forward-looking statements. The use of any of the words "anticipate", "plan", "contemplate", "continue", "estimate", "expect", "intend", "propose", "might", "may", "will", "shall", "project", "should", "could", "would", "believe", "predict", "forecast", "pursue", "potential", "objective" and "capable" and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. While the Company believes the expectations reflected in the forward-looking statements included in this Press Release are reasonable, such statements are not guarantees of future performance or outcomes and may prove to be incorrect and should not be unduly relied upon.

In particular, but without limitation, this Press Release contains forward-looking statements pertaining to: 2025 and 2026 industry conditions and outlook, including commodity pricing and demand for oil and gas; the effect of LNG facilities on export capacity, natural gas storage, and industry activity levels; anticipated utilization and activity levels, revenue, pricing, adjusted EBITDA and net profit related to the Company’s services; the Company’s expectation that it will wind down its U.S. fracturing service line; the Company’s ability to transfer assets where economic returns are most favourable; the Company’s intent to invest in dual fuel capability, and target of having dual fuel capabilities in 90% of its fracturing fleets by 2025; the Company’s ability to test and evaluate next generation technologies; the effect large clients and their programs may have on the Company’s activity levels; the Company’s intention to invest in the development of next generation coiled tubing technologies; the effect of tariffs and other trade barriers, inflation and cost increases on the Company and its margins; the Company’s view that the NCIB is an effective means to provide value to shareholders; the impact of weather and break up on the Company’s operations; the Company’s ability to meet all financial commitments including interest payments over the next twelve months; the Company’s plans regarding equipment; the Company’s ability to manage its capital structure; expected debt repayment and Funded Debt to Adjusted Bank EBITDA ratios; expected income tax and derivative liabilities; adequacy of resources to funds operations, financial obligations and planned capital expenditures; the Company’s ability to retain its existing clients; the monitoring of impairment, amount and age of balances owing, and the Company’s financial assets and liabilities denominated in U.S. dollars, and exchange rates; the Company’s expected compliance with covenants under its Credit Facilities and its ability to satisfy its financial commitments thereunder; statements relating to the anticipated benefits of the Arrangement.

The forward-looking information and statements contained in this Press Release reflect several material factors and expectations and assumptions of the Company including, without limitation: the effect of macroeconomic factors, including global energy security concerns and levels of oil and gas inventories; tariffs, trade barriers, and related market concerns; levels of oil and gas production and LNG export capacity on the market for the Company’s services; that the Company will continue to conduct its operations in a manner consistent with past operations; the Company will continue as a going concern; the general continuance of current or, where applicable, assumed industry conditions; pricing of the Company’s services; the Company’s ability to market successfully to current and new clients; predictability of 2025 and 2026 activity levels; predictable effect of seasonal weather and break up on the Company’s operations; the Company’s ability to utilize its equipment; the Company’s ability to collect on trade and other receivables; Client demand for dual fuel fleets and emissions reduction technologies; the Company’s ability to obtain and retain qualified staff and equipment in a timely and cost effective manner; levels of deployable equipment; future capital expenditures to be made by the Company; future funding sources for the Company’s capital program; the Company’s future debt levels; the availability of unused credit capacity on the Company’s credit lines; the impact of competition on the Company; the Company’s ability to obtain financing on acceptable terms; the Company’s continued compliance with financial covenants; the amount of available equipment in the marketplace; and client activity levels and spending. The Company believes the material factors, expectations and assumptions reflected in the forward-looking information and statements are reasonable, but no assurance can be given that these factors, expectations and assumptions will prove correct.

Actual results could also differ materially from those anticipated in these forward‐looking statements due to the risk factors set forth under the heading "Risk Factors" in the AIF and under the heading Risk Factors and Risk Management in this Press Release.

Any financial outlook or future orientated financial information contained in this Press Release regarding prospective financial performance, financial position or cash flows is based on the assumptions about future events, including economic conditions and proposed courses of action based on management’s assessment of the relevant information that is currently available. Projected operational information, including the Company’s capital program, contains forward looking information and is based on a number of material assumptions and factors, as are set out above. These projections may also be considered to contain future oriented financial information or a financial outlook. The actual results of the Company’s operations will likely vary from the amounts set forth in these projections and such variations may be material. Readers are cautioned that any such financial outlook and future oriented financial information contains herein should not be used for purposes other than those for which it is disclosed herein.

The forward-looking information and statements contained in this Press Release speak only as of the date of the document, and none of the Company or its subsidiaries assumes any obligation to publicly update or revise them to reflect new events or circumstances, except as may be required pursuant to applicable laws. The reader is cautioned not to place undue reliance on forward-looking information.

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

CONSOLIDATED STATEMENTS OF NET INCOME AND OTHER COMPREHENSIVE INCOME

CONSOLIDATED STATEMENTS OF CASH FLOWS

STEP will host a conference call on Wednesday, March 12, 2025 at 9:00 a.m. MT to discuss the results for the Fourth Quarter and Year End 2024 and outlook on 2025.

To listen to the webcast of the conference call, please click on the following URL: https://onlinexperiences.com/Launch/QReg/ShowUUID=98C6EBB6-5A48-4652-8B99-39071AC377FC&LangLocaleID=1033

You can also visit the Investors section of our website at www.stepenergyservices.com and click on "Reports, Presentations & Key Dates". The conference call will be archived on STEP’s website at: www.stepenergyservices.com/investors.

To participate in the Q&A session, please call the conference call operator at: 1-800-717-1738 (toll free) 15 minutes prior to the call’s start time and ask for "STEP Energy Services Fourth Quarter and Year End 2024 Earnings Results Conference Call".

The conference call will be archived on STEP’s website at www.stepenergyservices.com/investors.

ABOUT STEP

STEP is an energy services company that provides coiled tubing, fluid and nitrogen pumping and hydraulic fracturing solutions. Our combination of modern equipment along with our commitment to safety and quality execution has differentiated STEP in plays where wells are deeper, have longer laterals and higher pressures. STEP has a high-performance, safety-focused culture and its experienced technical office and field professionals are committed to providing innovative, reliable and cost-effective solutions to its clients.

Founded in 2011 as a specialized deep capacity coiled tubing company, STEP has grown into a North American service provider delivering completion and stimulation services to exploration and production ("E&P") companies in Canada and the U.S. Our Canadian services are focused in the Western Canadian Sedimentary Basin ("WCSB"), while in the U.S., our fracturing services are focused on the Permian basin and our coiled tubing services are focused on the Permian and Eagle Ford in Texas, the Uinta-Piceance, and Niobrara-DJ basins in Colorado and the Bakken in North Dakota.

Our four core values; Safety, Trust, Execution and Possibilities inspire our team of professionals to provide differentiated levels of service, with a goal of flawless execution and an unwavering focus on safety.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250311391014/en/

Contacts

For more information:
Steve Glanville
President and Chief Executive Officer
Telephone: 403-457-1772

Klaas Deemter
Chief Financial Officer
Telephone: 403-457-1772

Email: investor_relations@step-es.com
Web: www.stepenergyservices.com