/NOT FOR DISTRIBUTION TO
UNITED STATES NEWS WIRE SERVICES
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FOR DISSEMINATION IN THE UNITED
STATES./
EDMONTON, AB, July 28, 2020 /CNW/ - Wolverine Energy and
Infrastructure Inc. ("Wolverine" or the "Company")
(TSXV: WEII) is pleased to announce the filing of its Fiscal 2020
Year End Results on SEDAR and strategic adjustments to its
Management Team.
INDUSTRY OUTLOOK
For the quarter and fiscal year ending March 31, 2020, operations throughout
North America remained stable
leading into the unprecedented times of a global pandemic in March.
Upon the global lock-down, operations in the United States came to an immediate halt
with cross-state quarantine requirements. In Western Canada, activity levels remained
higher than the United States, up
until the shut-in of production, affecting majority of our
divisions outside of the Infrastructure Division.
Leading into the first fiscal quarter of 2021, Wolverine's
slowest quarter due to spring breakup in Western Canada, activity levels have been
extremely slow across North
America. Wolverine's diverse business model, comprising of
Rentals, in both Western Canada
and throughout the United States,
and Water Midstream segments, has allowed for the company to
realize fairly strong activity levels in both our Water Disposal
and Custom Crude Treating segments and Infrastructure division,
which is focused on Heavy Equipment Rentals to major projects such
as the Coastal GasLink pipeline construction.
Moving forward in fiscal 2021, Wolverine does not expect major
changes in activity levels until the fiscal third quarter of 2021.
That being said, Wolverine is strongly positioned to benefit from
increased activity levels in its Rentals division across
North America once producers
restart shut-in production with both its production testing and
surface rentals divisions. In the meantime, Wolverine has good
visibility in both our Water Disposal and Custom Crude Treating
segments and Infrastructure division.
As Sir Winston Churchill stated,
"never let a good crisis go to waste", Wolverine continues to be
strongly positioned to consolidate the North American energy
services and water midstream sectors. Wolverine continues to
evaluate strategic acquisitions focused on key segments of the oil
and gas market, including water management, midstream and the
completions sector of the markets. If the prolonged challenges in
the Western Canadian energy market, and the moderate slow down in
US oil and gas activity, did not solely further increase the need
for service sector consolidations, the global pandemic has.
Wolverine's management continues to believe that overheads
throughout the sector are inflated and competition will need to be
significantly reduced for the sector to return to a healthy
position. Wolverine is cautiously optimistic that the previous
headwinds to getting deals completed and substantial resistance by
existing management teams to consolidation, will be reconsidered
during these unprecedented times and is confident this will lead to
consolidation opportunities crystalizing through the back half of
calendar 2020 and into 2021.
Wolverine believes that the Company's strong financial position,
long term strategic financial lenders and diverse long-term
customer base positions Wolverine to be an industry leader in
consolidating the highly fragmented energy services space in
Western Canada and take advantage
of strategic, synergistic acquisition opportunities.
SENIOR MANAGEMENT CHANGES
Wolverine is excited to announce the hiring of Matthew Greenberg as the Vice President of
Finance. Mr. Greenberg is a CPA, CA with over 15 years of
experience in audit, accounting, corporate finance, treasury, and
capital markets. Mr. Greenberg's experience spans multiple
industries in both public and private companies and will be a
strategic asset to Wolverine and the finance division.
In addition, Wolverine announces the following changes,
effective immediately:
John Carvalho, Chief Financial
Officer and Chief Investment Officer, is resigning from his
position to pursue a full-time advisory services role. Mr. Carvalho
has been instrumental to the growth of Wolverine and will remain
part of the company advising on potential mergers and
acquisitions.
Nikolaus Kiefer, Vice President
of Corporate Development, will be moving to Chief Financial Officer
of Wolverine.
Jesse Douglas, President and CEO,
states "Following executing over $100
million of transactions since going public over a year ago,
Wolverine is excited to move onto its next leg of growth. The
global pandemic has affected all businesses and industries across
the globe, however, has further increased the need for
consolidation in the energy sector." In addition, Mr. Douglas
further states, "the addition of Mr. Greenberg as our Vice
President of Finance and the promotion of Mr. Kiefer to Chief
Financial Officer, further bolsters Wolverines Senior Management
Team. Mr. Greenberg brings a wealth of knowledge from multiple
industries and sizes of companies, while Mr. Kiefer has been
instrumental in growing Wolverines business both internally and
through acquisitions focusing on all aspects of the business."
About Wolverine
Wolverine is an industry-leading, diversified energy and
infrastructure service provider in western Canada and the
United States, providing a wide range of services including:
water management, production testing, oilfield/energy rentals, and
environmental services (waste disposal and custom crude treating).
Wolverine's original business roots and operations began in 1952.
Over the course of its history, the Wolverine group of companies
have pursued a strategy combining organic growth and strategic
acquisitions. Today, Wolverine is strongly positioned to
consolidate a highly-fragmented energy services and midstream
market in western Canada, and is
diligently focused on return on capital deployed, market
diversification, and maintaining best-in-class services throughout
the full life cycle of its diverse clients' projects.
Cautionary Statements
This news release contains forward-looking statements and/or
forward-looking information (collectively, "forward-looking
statements") within the meaning of applicable securities
laws. When used in this release, the words "would", "will" and
similar expressions, as they relate to Wolverine or its management,
are intended to identify such forward-looking statements. Such
forward-looking statements reflect the current views of Wolverine
with respect to future events, and are subject to certain risks,
uncertainties and assumptions. Many factors could cause Wolverine's
actual results, performance or achievements to be materially
different from any expected future results, performance or
achievement that may be expressed or implied by such
forward-looking statements. In particular, this news release
contains or implies forward-looking statements pertaining to:
non-core asset dispositions; and the use of proceeds from the
Offering. These forward-looking statements are subject to numerous
risks and uncertainties, including but not limited to: the impact
of general economic conditions in Canada and the
United States; industry conditions including changes in laws
and regulations including adoption of new environmental laws and
regulations, and changes in how they are interpreted and enforced,
in Canada and the United States; competition; lack of
availability of qualified personnel; obtaining required approvals
of regulatory authorities, in Canada and the
United States; volatility in market prices for oil and gas;
fluctuations in foreign exchange or interest rates; environmental
risks; changes in income tax laws or changes in tax laws and
incentive programs relating to the oil industry; ability to access
sufficient capital from internal and external sources; risk that
the board of directors of Wolverine determines that it would be in
the best interests of Wolverine to deploy the proceeds of the
Offering for some other purpose; and other factors, many of which
are beyond the control of the Company.
These forward-looking statements reflect material factors,
expectations and assumptions. Forward-looking statements
included in this news release should not be read as guarantees of
future performance or results. Such statements involve known and
unknown risks, uncertainties and other factors that may cause
actual results, performance or achievements to be materially
different from those implied by such forward-looking
statements. Although the forward-looking statements contained
in this document are based upon assumptions which management of the
Company believes to be reasonable, the Company cannot assure
investors that actual results will be consistent with these
forward-looking statements. With respect to forward-looking
statements contained in this document, Wolverine has made
assumptions regarding among other things: the successful listing of
the Common Shares on the TSXV; availability of skilled labour;
timing and amount of capital expenditures; future exchange rates;
the price of oil and gas; the impact of increasing competition;
conditions in general economic and financial markets; effects of
regulation by governmental agencies; the continued availability of
adequate equity financing and funds from operations to fund its
planned expenditures; timing of drilling and completion of wells;
and other matters. Wolverine's business is subject to a number of
risks and uncertainties. Readers are encouraged to review and
carefully consider the risk factors pertaining to Wolverine's
business described in PetroMaroc's management information circular
and proxy statement dated as of November 14,
2018, which is accessible on Wolverine's SEDAR issuer
profile at www.sedar.com. The forward-looking statements
contained in this release are made as of the date of this release,
and except as may be expressly be required by law, Wolverine
disclaims any intent, obligation or undertaking to publicly release
any updates or revisions to any forward-looking statements
contained herein whether as a result of new information, future
events or results or otherwise, other than as required by
applicable securities laws.
Management of the Company has included the above summary of
assumptions and risks related to forward-looking information
provided in this document in order to provide shareholders with a
more complete perspective on Wolverine's current and future
operations and such information may not be appropriate for other
purposes. Wolverine's actual results, performance or achievement
could differ materially from those expressed in, or implied by,
these forward-looking statements and, accordingly, no assurance can
be given that any of the events anticipated by the forward-looking
statements will transpire or occur, or if any of them do, what
benefits Wolverine will derive therefrom.
This news release shall not constitute an offer to sell or
the solicitation of an offer to buy the Common Shares in any
jurisdiction. The Common Shares have not been and will not be
registered under the United States Securities Act of 1933, as
amended (the "U.S. Securities Act") or any state securities
laws and may not be offered or sold in the United States except in certain
transactions exempt from the registration requirements of the U.S.
Securities Act and applicable state securities laws.
Non-GAAP Measures
The Company uses accounting principles that are generally
accepted in Canada ("GAAP"), which
includes International Financial Reporting Standards ("IFRS").
Certain financial measures in this document do not have any
standardized meaning as prescribed by IFRS, including the non-GAAP
measure "proforma trailing 12-month EBITDA". This non-GAAP measure
used by the Company, may not be comparable to similar measures
presented by other reporting issuers, and is included because
management uses the information to analyze the Company's operating
performance. Therefore, this non-GAAP financial measure should not
be considered in isolation or as a substitute for measures of
performance prepared in accordance with GAAP. Proforma
trailing 12-month EBITDA is defined by the Company as net income
(loss) before finance costs, equipment rent, taxes, depreciation,
(gain) loss on bargain purchase, and amortization.
Neither the TSXV nor its Regulation Services Provider (as
that term is defined in the policies of the TSXV) has in any way
approved or disapproved the contents of this news release. The
TSXV does not accept responsibility for the adequacy or accuracy of
this release.
SOURCE Wolverine Energy and Infrastructure Inc.