The following is a summary of the STEP Energy Services Ltd. (SNVVF) Q3 2024 Earnings Call Transcript:

Financial Performance:

• STEP Energy reported a consolidated revenue of CAD256 million in Q3, maintaining roughly the same level as the previous year's Q3 revenue of CAD255 million.

• Adjusted EBITDA was CAD44 million with a 17% margin, compared to a higher CAD52 million with a 21% margin in the prior year's Q3.

• The company reported a net loss of CAD5.5 million, or CAD0.08 per diluted share, after recognizing an impairment of CAD12.7 million on US assets.

Business Progress:

• In the Canadian market, revenue increased and adjusted EBITDA improved significantly due to increased activity and operating efficiencies in fracturing operations.

• Investment in upgrading fracturing fleets to Tier 4 dual fuel engine technology helps reduce environmental impact and align with clients' sustainability demands.

• Significant operational achievements include pumping a record 570,000 metric tons of sand in Q3 and setting a new record in coiled tubing operations in the Williston Basin.

• The company has adjusted the 2024 capital budget downwards in response to slowing market conditions.

Opportunities:

• The rising proppant intensity in operations, such as those seen in the Montney wells, presents STEP with opportunities for increased service provision.

• Expansion in LNG capacities and export capabilities, especially in North America, predicts a promising future demand for STEP's services.

Risks:

• The impairment in the US segment indicates ongoing challenges and weak conditions in the US fracturing market.

• Persistent pricing pressures are expected to continue affecting margins into the first half of 2025.

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