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Press release from Marketwire

Canadian Energy Services & Technology Corp. Announces Results for the Fourth Quarter and the Year Ended December 31, 2010, Declares Increased Cash Dividend, and Change of Director

Thursday, March 17, 2011

Canadian Energy Services & Technology Corp. Announces Results for the Fourth Quarter and the Year Ended December 31, 2010, Declares Increased Cash Dividend, and Change of Director17:41 EDT Thursday, March 17, 2011CALGARY, ALBERTA--(Marketwire - March 17, 2011) - ("CES" or the "Company") (TSX:CEU) is pleased to report on its financial and operating results for the three and twelve months ended December 31, 2010. CES also announced today that it will pay a cash dividend of $0.12 per common share on April 15, 2011 to the shareholders of record at the close of business on March 31, 2011, representing an increased dividend of $0.02 per common share to the monthly dividend.CES' Q4 2010 and 2010 annual results reflect an increase in activity and revenue across all of CES' business segments. CES' dominant business line, the drilling fluids segment, experienced the most significant gains over 2009 as a result of increased industry activity, the completion and integration of two accretive acquisitions in the United States ("US") and a continuing industry trend to drill more complex, horizontal wells.CES generated gross revenue of $94.5 million during the fourth quarter of 2010, compared to $27.3 million for the three months ended December 31, 2009, an increase of $67.2 million or 246% on a year-over-year basis. Total gross revenue for 2010 totalled $249.1 million, compared to $89.5 million last year, representing an increase of $159.6 million or 178% on a year-over-year basis. For the three month period ended December 31, 2010, CES recorded a gross margin of $27.5 million or 29% of revenue, compared to a gross margin of $9.2 million or 34% of revenue generated in the same period last year. Year-over-year, Q4 margins were lower primarily due to higher overall invert sales in the WCSB as a percentage of total revenue. Invert sales in the WCSB market have a lower gross margin as compared to other product margins of CES. During 2010, CES achieved a gross margin of $72.2 million or 29% of revenue as compared to $26.7 million or 30% in 2009.Net earnings before interest, taxes, amortization, loss on disposal of assets, goodwill impairment, unrealized foreign exchange gains and losses, unrealized derivative gains and losses, and stock-based compensation ("EBITDAC") for the three months ended December 31, 2010 was $17.1 million as compared to $4.4 million for the three months ended December 31, 2009 representing an increase of $12.7 million or 288%. For the year ended December 31, 2010, EBITDAC totalled $41.5 million as compared to $9.9 million in 2009 representing an increase of $31.6 million or 320%. CES recorded a net income of $11.7 million for the three month period ended December 31, 2010 as compared to a net income of $5.9 million in the prior year. CES recorded a net income per share of $0.65 ($0.64 diluted) for the three months ended December 31, 2010 versus net income per share of $0.51 ($0.50 diluted) in 2009. For the year ended December 31, 2010 CES recorded net income of $26.3 million, an increase of $18.8 million from the $7.5 million generated for the same period last year. Year-over-year basic net income per share was $1.74 ($1.69 diluted) as compared with $0.67 ($0.66 diluted) per unit for the same period in 2009.Revenue from drilling fluids related sales of products and services in the Western Canadian Sedimentary Basin ("WCSB"), gross of intercompany eliminations, was $36.0 million for the three months ended December 31, 2010, compared to $18.5 million for the three months ended December 31, 2009, representing an increase of $17.5 million or 95%. For the year ended December 31, 2010, revenue from drilling fluids related sales of products and services in the WCSB, gross of intercompany eliminations, was $112.3 million compared to $66.9 million for the year ended December 31, 2009, representing an increase of $45.4 million or 68%. Daily average revenue per operating day for the three months ended December 31, 2010, was $3,581 compared to $2,920 for the three months ended December 31, 2009, representing an increase of 23%. For the year ended December 31, 2010, daily average revenue per operating day was $3,478 compared to $3,353 for the year ended December 31, 2009, representing an increase of 4%. CES' estimated Canadian Market Share was approximately 28% for the three months ended December 31, 2010, remaining consistent on a percentage basis with last year at 28% for the three months ended December 31, 2009. Year-to-date, estimated market share in the WCSB has averaged 27%, up 2% from the 25% estimated market share for the year ended December 31, 2009. CES' operating days in the WCSB were estimated to be 10,054 for the three month period ended December 31, 2010, an increase of 59% from the 6,336 operating days during the same period last year. Year-to-date, operating days in the WCSB were estimated to total 32,313 compared to 19,953 during the same period last year, representing an increase of 62%. Overall industry activity increased approximately 45% from an average monthly rig count in the fourth quarter of 2009 of 273 to 398 during the fourth quarter of 2010 based on CAODC published monthly data for Western Canada. Year-to-date, the CAODC average monthly rig count for Western Canada have averaged 327 as compared to 219 in 2009 representing a year-over-year increase of 49%.For the three months ended December 31, 2010, revenue generated in the US from drilling fluid sales of products and services, gross of intercompany eliminations, was $49.3 million with an estimated 8,780 operating days as compared to last year's revenue of $3.4 million with an estimated 832 operating days during the same period. For 2010, revenue generated in the US, gross of intercompany eliminations, totals $109.7 million as compared to $6.3 million in the previous year representing an increase of $103.4 million. Total operating days for 2010 in the US were 21,091 as compared to 1,364 during 2009. CES' estimated United States Market Share for the three and twelve months ended December 31, 2010 was estimated to be 6% and 4% respectively Daily average revenue per operating day for the three months ended December 31, 2010, was $5,615 compared to $4,087 for the three months ended December 31, 2009, representing an increase of 37%. For the year ended December 31, 2010, daily average revenue per operating day was $5,201 compared to $4,619 for the year ended December 31, 2009, representing an increase of 13%.EQUAL Transport's ("EQUAL") trucking revenue for the three month period ended December 31, 2010, gross of intercompany eliminations, revenue from trucking operations, gross of intercompany eliminations, totalled $4.7 million, an increase of $1.9 million or 68% from the $2.8 million for the three months ended December 31, 2009. For 2010, revenue from trucking operations totalled $15.3 million as compared to $8.1 million during 2009 representing an increase of $7.2 million or 89%. The respective year-over-year increase is due primarily to the general increase in industry activity levels and the continued expansion of trucking operations in Saskatchewan.Clear Environmental Solutions division ("Clear") generated $5.7 million of revenue for the three month period ended December 31, 2010 compared to $2.8 million during the prior year representing an increase of $2.9 million or 104%. Revenue from Clear for the year ended December 31, 2010 totalled $14.0 million as compared to $9.0 million for the same period in 2009, representing an increase of $5.0 million or 56%. Year-over-year, the Clear Environmental division has seen higher overall activity levels and continues to benefit from increased integration with the drilling fluids division, from diversification strategies pursued during 2009 to reduce its exposure to shallow natural gas focused drilling, and general improvement in industry activity levels.In Q4 2010, CES declared monthly dividends of $0.10 for a total of $0.30 per share for the quarter. CES also announced today that it has declared a cash dividend of $0.12 per common share to shareholders of record on March 31, 2011. CES expects to pay this dividend on or about April 15, 2011. CES' business model has historically shown it can support a large proportion of cash flow from operating activity being paid out as a dividend or distribution as the long-term capital investments required and maintenance capital expenditures required for CES to execute its business plan are not significant.CES also announced that Kathryn Sherman has resigned from the board of directors and that Jim Sherman has been appointed as a board member. Kathryn Sherman and Jim Sherman are the co-founders of Fluids Management II Ltd. CES acquired all of its drilling fluids business assets on June 22, 2010. Kathryn continues to fulfill her management role within the Fluids Management division of CES. Jim brings over 38 years of drilling fluids and other oilfield services experience in a variety of sales, operations and management roles. Jim is also the President of the Fluids Management division of CES."2010 has been a very successful year for CES" said Tom Simons, the President and Chief Executive Officer of Canadian Energy Services & Technology Corp. "All of our business segments experienced growth in 2010 as industry activity levels picked-up and CES capitalized on the opportunities. In particular, our US drilling fluids business saw the largest gains. Through two accretive acquisitions, we acquired roughly 3% of the US market-share and have grown those platforms to roughly 7% of the US market-share in less than 15 months. In addition, we have entered the drilling fluid and production chemical manufacturing business and have begun production and sales in Q1 2011. We are confident in our ability to be successful over time in this new market. As always, utilizing our exceptional people, CES will continue to focus on our customer needs and deliver the solutions, service and technologies they require."The core business of CES is to design and implement drilling fluid systems for the North American oil and natural gas industry. CES operates in the WCSB and in various basins in the US, with an emphasis on servicing the ongoing major resource plays. The drilling of those major resource plays includes wells drilled vertically, directionally, and with increasing frequency, horizontally. Horizontal drilling is a technique utilized in tight formations like tight gas, tight oil, heavy oil, and in the oil sands. The designed drilling fluid encompasses the functions of cleaning the hole, stabilizing the rock drilled, controlling subsurface pressures, enhancing drilling rates and protecting potential production zones while conserving the environment in the surrounding surface and subsurface area. CES' drilling fluid systems are designed to be adaptable to a broad range of complex and varied drilling scenarios, to help clients eliminate inefficiencies in the drilling process, and to assist them in meeting operational objectives and environmental compliance obligations. CES markets its technical expertise and services to oil and natural gas exploration and production entities by emphasizing the historical success of both its patented and proprietary drilling fluid systems and the technical expertise and experience of its personnel.Clear, CES' environmental division, provides environmental and drilling fluids waste disposal services primarily to oil and gas producers active in the WCSB. The business of Clear involves determining the appropriate processes for disposing of or recycling fluids produced by drilling operations and to carry out various related services necessary to dispose of drilling fluids.EQUAL, CES' transport division, provides its customers with the necessary trucks and trailers specifically designed to meet the demanding requirements of off-highway oilfield work, and trained personnel to transport and handle oilfield produced fluids and to haul, handle, manage, and warehouse drilling fluids. EQUAL operates from two terminals and yards located in Edson, Alberta and Carlyle, Saskatchewan.PureChem, CES' drilling fluid and production chemical manufacturing division, designs, manufactures, and sells specialty drilling fluids for CES and production chemicals for operators. The PureChem facility is located strategically in Carlyle, SK.CES' head office and the sales and services headquarters are located in Calgary, Alberta and its stock point facilities and other operations are located throughout Alberta, British Columbia, and Saskatchewan. CES' indirect wholly-owned subsidiary, AES Drilling Fluids, LLC ("AES"), conducts operations in the United States from its head office in Denver, Colorado; in the mid-continent region through its Champion Drilling Fluids division which is headquartered in Norman, Oklahoma; and in Texas, Louisiana, off-shore Gulf of Mexico and Northeast US through its Fluids Management division headquartered in Houston, Texas. AES has operations in fourteen states with stock point facilities located in Oklahoma, Texas, Pennsylvania, Michigan, Colorado, North Dakota, Louisiana, and Utah.Financial Highlights--------------------- Three Months Ended Year EndedSummary Financial Results December 31, December 31, --------------------- ------------------($000's, except per share amounts) 2010 2009 2010 2009--------------------------------------------------------------------------------------------------------------------------------------------------------Revenue 94,468 27,303 249,116 89,454Gross margin (3) 27,465 9,160 72,173 26,712Income before taxes 13,516 3,092 31,610 4,975 per share- basic (1) 0.75 0.27 2.09 0.44 per share - diluted (1) 0.74 0.26 2.03 0.44Net income 11,664 5,857 26,259 7,515 per share- basic (1) 0.65 0.51 1.74 0.67 per share - diluted (1) 0.64 0.50 1.69 0.66EBITDAC (3) 17,121 4,373 41,476 9,940Funds flow from operations (3) 16,348 4,169 39,498 9,462 per share- basic (1) 0.91 0.36 2.62 0.84 per share - diluted (1) 0.90 0.35 2.54 0.84Dividends declared 5,042 2,787 14,040 10,759 per share (1) 0.30 0.24 0.92 0.95 per Subordinated Class B Unit - - - 0.24-------------------------------------------------------------------------------------------------------------------------------------------------------- Three Months Ended Year Ended December 31, December 31, --------------------------- -------------------------Shares Outstanding 2010 2009 (1) 2010 2009 (1)--------------------------------------------------------------------------------------------------------------------------------------------------------End of period 18,131,829 12,417,573 18,131,829 12,417,573Weighted average - basic 17,925,661 11,576,203 15,096,650 11,267,540 - diluted 18,168,232 11,765,132 15,542,349 11,314,075--------------------------------------------------------------------------------------------------------------------------------------------------------Financial Position ($000's) December 31, December 31, 2010 2009--------------------------------------------------------------------------------------------------------------------------------------------------------Net working capital 34,229 11,347Total assets 287,637 130,699Long-term financial liabilities (2) 5,220 2,557Shareholders' equity 171,048 92,534--------------------------------------------------------------------------------------------------------------------------------------------------------Notes:(1) Includes Class A Units and Subordinated Class B Units for 2009 comparatives.(2) Includes vehicle financing loans, term loans, and capital leases facilities excluding current portions.(3) CES uses certain performance measures that are not recognizable under Canadian generally accepted accounting principles ("GAAP"). These performance measures include, earnings before interest, taxes, amortization, goodwill impairment, stock-based compensation ("EBITDAC"), gross margin, funds flow from operations and distributable funds. Management believes that these measures provide supplemental financial information that is useful in the evaluation of CES' operations. Readers should be cautioned, however, that these measures should not be construed as alternatives to measures determined in accordance with GAAP as an indicator of CES' performance. CES' method of calculating these measures may differ from that of other organizations and, accordingly, these may not be comparable. Please refer to the Non-GAAP measures section of CES' MD&A for the year and three months ended December 31, 2010.Canadian Energy Services & Technology Corp.Consolidated Balance Sheets(stated in thousands of dollars) As at ----------------------------- December 31, December 31, 2010 2009----------------------------------------------------------------------------ASSETSCurrent assets Accounts receivable 100,733 35,336 Financial derivative asset 25 - Inventory 31,303 10,001 Prepaid expenses 2,513 389---------------------------------------------------------------------------- 134,574 45,726Property and equipment 30,320 14,564Intangible assets 17,083 7,169Future income tax asset 10,212 1,949Goodwill 95,448 61,291---------------------------------------------------------------------------- 287,637 130,699--------------------------------------------------------------------------------------------------------------------------------------------------------LIABILITIES AND SHAREHOLDERS' EQUITYCurrent liabilities Bank indebtedness 44,172 8,762 Accounts payable and accrued liabilities 46,714 21,212 Financial derivative liability - 11 Earn-out payable - 207 Deferred acquisition consideration 4,990 2,098 Dividends payable 1,813 983 Current portion of capital lease obligation 1,072 - Current portion of long-term debt 1,584 1,106---------------------------------------------------------------------------- 100,345 34,379Capital lease obligation 1,664 -Long-term debt 3,556 2,557Future income tax liability 3,118 1,229Deferred tax credit 7,906 ----------------------------------------------------------------------------- 116,589 38,165----------------------------------------------------------------------------Shareholders' equityCommon shares 195,755 117,448Subordinate convertible debenture - 6,627Contributed surplus 2,120 2,122Deficit (21,444) (33,663)Accumulated other comprehensive loss (5,383) ----------------------------------------------------------------------------- 171,048 92,534---------------------------------------------------------------------------- 287,637 130,699--------------------------------------------------------------------------------------------------------------------------------------------------------Canadian Energy Services & Technology Corp.Consolidated Statements of Operations and Deficit(stated in thousands of dollars except per share amounts) Year Ended December 31, ------------------------ 2010 2009----------------------------------------------------------------------------Revenue 249,116 89,454Cost of sales 176,943 62,742----------------------------------------------------------------------------Gross margin 72,173 26,712----------------------------------------------------------------------------Expenses Selling, general, and administrative expenses 31,578 16,754 Amortization 6,439 3,526 Stock-based compensation 1,791 827 Interest expense 1,663 478 Foreign exchange gain (894) (13) Financial derivative loss (gain) (1) 55 Loss (gain) on disposal of assets (13) 110---------------------------------------------------------------------------- 40,563 21,737----------------------------------------------------------------------------Income before taxes 31,610 4,975Current income tax expense 315 -Future income tax expense (recovery) 5,036 (2,540)----------------------------------------------------------------------------Net income 26,259 7,515Deficit, beginning of year (33,663) (30,419)Dividends declared (14,040) (10,759)----------------------------------------------------------------------------Deficit, end of year (21,444) (33,663)--------------------------------------------------------------------------------------------------------------------------------------------------------Net income per share Basic 1.74 0.67 Diluted 1.69 0.66--------------------------------------------------------------------------------------------------------------------------------------------------------Canadian Energy Services & Technology Corp.Consolidated Statements Of Cash Flow(stated in thousands of dollars) Year Ended December 31, ------------------------ 2010 2009----------------------------------------------------------------------------CASH PROVIDED BY (USED IN):OPERATING ACTIVITIES:Net income for the period 26,259 7,515Items not involving cash: Amortization 6,439 3,526 Stock-based compensation 1,791 827 Future income tax expense (recovery) 5,036 (2,540) (Gain) loss on disposal of assets (13) 110 Unrealized foreign exchange loss 10 13 Unrealized financial derivative (gain) loss (24) 11 Change in non-cash operating working capital (55,092) 9,883---------------------------------------------------------------------------- (15,594) 19,345----------------------------------------------------------------------------FINANCING ACTIVITIES:Repayment of long-term debt and capital leases (2,615) (1,562)Issuance of long-term debt and lease proceeds 4,147 -Issuance of shares, net of issuance costs 47,715 9,719Bridge Loan financing - -Increase (decrease) in bank indebtedness 35,026 (3,940)Shareholder dividends (13,210) (11,002)---------------------------------------------------------------------------- 71,063 (6,785)----------------------------------------------------------------------------INVESTING ACTIVITIES:Investment in property and equipment (11,330) (4,467)Investment in intangible assets (58) (46)Deferred acquisition consideration (2,245) -Conversion transaction (2,800) -Acquisition of Fluids Management (40,563) -Acquisition of Champion Drilling Fluids - (8,943)Proceeds on disposal of fixed assets 750 473Change in non-cash investing working capital 393 478---------------------------------------------------------------------------- (55,853) (12,505)----------------------------------------------------------------------------Effect of exchange rate on cash balances 384 (55)CHANGE IN CASH - -Cash, beginning of year - -----------------------------------------------------------------------------Cash, end of year - ---------------------------------------------------------------------------------------------------------------------------------------------------------OutlookCrude oil prices have rebounded off their lows of 2009 and appear to have stabilized in a profitable band for operators. Natural gas prices continue to remain relatively weak in context to oil prices and recent history, making the economics of drilling for dry natural gas challenging. In the WCSB, operators have diverted capital to drilling for oil or liquids rich gas and, in the US, this same trend is emerging but areas such as the Marcellus shale continue to attract capital to dry gas drilling.Beginning in the fourth quarter of 2009, drilling activity levels began to rebound in both the WCSB and the US and throughout 2010 drilling activity exceeded comparable periods in 2009. Both CES' Q4 2010 and 2010 annual results reflect the increase in activity with corresponding revenue gains across all of CES' business segments. CES' dominant business line, the drilling fluids segment, experienced the most material gains over 2009 as a result of the increased industry activity and a continuing trend by operators to drill more complex, horizontal wells. CES has capitalized on this trend in the WCSB through its leading market share position and in the US by completing two accretive acquisitions, the Champion acquisition on November 30, 2009 and the Fluids Management Acquisition completed at the end of Q2 2010. The US Acquisitions, coupled with the immediate organic growth that the Company has been able to generate off of these acquired platforms, have established CES as a truly North American company with a wide footprint and a significant presence in the majority of the key basins of activity throughout North America.CES' strategy is to utilize our patented and proprietary technologies and superior execution to increase market share in North America. CES' exposure to the key resource plays and the growth in the number of horizontal wells being drilled bodes well for future growth. A larger percentage of the wells being drilled require more complex drilling fluids to best manage down hole conditions, drilling times and costs, and our unique products like Seal-AX(TM)/PolarBond, ABS40(TM) and Liquidrill(TM)/Tarbreak, combined with our concerted focus on providing superior service, positions CES well in this increasingly technically competitive environment. CES believes that its unique value propositions in the increasingly complex drilling environment makes it the premier independent drilling fluids provider in the North American market.The EQUAL Transport division experienced significant growth, particularly in south-eastern Saskatchewan where the business hauls drilling fluids and products to drilling locations and also provides other oilfield hauling services to our customers including the hauling of produced fluids. It is expected this business will continue to be economically attractive and may expand further as viable opportunities emerge.In Q2 2010, CES announced the establishment of the PureChem Services division. PureChem manufactures and sells both drilling fluid chemicals and production chemicals. The construction of the PureChem facility in Carlyle, Saskatchewan was completed in February 2011 and operations have commenced. PureChem is a complimentary business to both CES' drilling fluids business and EQUAL's production hauling business in Canada. In the US, the Fluids Management division also produces and blends its own set of proprietary drilling fluid products which provides synergies and experience to PureChem going forward.The Clear Environmental Solutions division continues to complement CES' core drilling fluids business. The Environmental Services division has focused on expanding its operational base in the WCSB and is pursuing opportunities in the oil sands and horizontal drilling markets. Clear has experienced an increase in activity which began in the fourth quarter of 2009 and has continued throughout 2010. At this time, Clear's activity levels are expected to remain healthy throughout 2011.As drilling has become more complex, applied down-hole technologies are becoming increasingly important in driving success for operators. CES will continue to invest in research and development to be a leader in technology advancements in the drilling fluids market. In addition, CES continues to assess integrated business opportunities that will keep CES competitive and enhance profitability, while at the same time closely manage its dividend levels and capital expenditures in order to preserve its balance sheet strength and liquidity position.Except for the historical and present factual information contained herein, the matters set forth in this news release, may constitute forward-looking information or forward-looking statements (collectively referred to as "forward-looking information") which involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of CES, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. When used in this press release, such information uses such words as "may", "would", "could", "will", "intend", "expect", "believe", "plan", "anticipate", "estimate", and other similar terminology. This information reflects CES' current expectations regarding future events and operating performance and speaks only as of the date of this press release. Forward-looking information involves significant risks and uncertainties, should not be read as a guarantee of future performance or results, and will not necessarily be an accurate indication of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking information, including, but not limited to, the factors discussed below. The management of CES 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 to be correct. The forward-looking information and statements contained in this press release speak only as of the date of the press release, and CES assumes no obligation to publicly update or revise them to reflect new events or circumstances, except as may be required pursuant to applicable securities laws or regulations.In particular, this press release contains forward-looking information pertaining to the following: future estimates as to dividend levels, including the payment of a dividend to shareholders of record on March 31, 2011; capital expenditure programs for oil and natural gas; supply and demand for CES' products and services; industry activity levels; commodity prices; treatment under governmental regulatory and taxation regimes; dependence on equipment suppliers; dependence on suppliers of inventory and product inputs; equipment improvements; dependence on personnel; collection of accounts receivable; operating risk liability; expectations regarding market prices and costs; expansion of services in Canada, the United States, and internationally; development of new technologies; expectations regarding CES' growth opportunities in the United States; expectations regarding the performance or expansion of CES' environmental and transportation operations; expectations regarding demand for CES' services and technology if drilling activity levels increase; investments in research and development and technology advancements; access to debt and capital markets; and competitive conditions.CES' actual results could differ materially from those anticipated in the forward-looking information as a result of the following factors: general economic conditions in Canada, the United States, and internationally; demand for oilfield services for drilling and completion of oil and natural gas wells; volatility in market prices for oil, natural gas, and natural gas liquids and the effect of this volatility on the demand for oilfield services generally; competition; liabilities and risks, including environmental liabilities and risks inherent in oil and natural gas operations; sourcing, pricing, and availability of raw materials, consumables, component parts, equipment, suppliers, facilities, and skilled management, technical and field personnel; ability to integrate technological advances and match advances of competitors; availability of capital; uncertainties in weather and temperature affecting the duration of the oilfield service periods and the activities that can be completed; changes in legislation and the regulatory environment, including uncertainties with respect to programs to reduce greenhouse gas and other emissions and tax legislation; reassessment and audit risk associated with the corporate conversion; changes to the royalty regimes applicable to entities operating in the WCSB and the US; access to capital and the liquidity of debt markets; changes as a result of IFRS adoption; fluctuations in foreign exchange and interest rates and the other factors considered under "Risk Factors" in CES' Annual Information Form for the year ended December 31, 2010 and "Risks and Uncertainties" in CES' MD&A.Without limiting the foregoing, the forward-looking information contained in this press release is expressly qualified by this cautionary statement.CES has filed its 2010 annual report and consolidated financial statements and notes thereto as at and for the year ended December 31, 2010 and accompanying management discussion and analysis in accordance with National Instrument 51-102 - Continuous Disclosure Obligations adopted by the Canadian securities regulatory authorities. Additional information about CES will be available on CES' SEDAR profile at www.sedar.com and CES' website at www.CanadianEnergyServices.com.FOR FURTHER INFORMATION PLEASE CONTACT: Tom SimonsCanadian Energy Services & Technology Corp.President and Chief Executive Officer(403) 269-2800ORCraig F. Nieboer, CACanadian Energy Services & Technology Corp.Chief Financial Officer(403) 269-2800info@ceslp.cawww.CanadianEnergyServices.comTHE TORONTO STOCK EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.