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Flotek Industries, Inc.2022 Annual Report Contents 1 Corporate Profile 3 President’s Message 6 Management’s Discussion & Analysis 33 Financial Statements 41 Notes to the Financial Statements TSX-V: CWC CWC Energy Services Corp. provides drilling rigs and service rigs to established oil and gas producers in Canada and the United States. These oilfield service activities are necessary to complete newly drilled wells and to maintain ongoing servicing of producing wells. CWC’s services are provided through 2 divisions: Contract Drilling and Production Services. Corporate Profile – March 2023 Calgary Denver Horn River Montney/ Deep Basin Devonian Bakken Permian Eagle Ford Heavy Oil Denver- Julesburg Powder River Niobrara Uinta San Juan Piceance Viking Cardium Bakken Suite 2910, 605 - 5th Ave SW, Calgary, AB, T2P 3H5 T: 403.264.2177 F: 403.264.2842 www.cwcenergyservices.com Market Profile March 31, 2023 Shares outstanding 518.9 million Price $0.22 Market cap $114.2 million Financial Information ($ millions) 2022 2021 2020 Revenue $205.3 $102.6 $67.9 Adjusted EBITDA $45.9 $18.9 $11.1 Total Assets $287.6 $226.6 $202.2 Long-Term Debt $43.0 $45.8 $30.2 Net Debt $7.1 $26.9 $18.2 Board of Directors Jim Reid, Chairman Duncan Au Daryl Austin Gary L. Bentham Jason Chehade Nancy Foster Wade McGowan Management Duncan Au, FCPA, FCA, CFA, ICD.D President & CEO Stuart King, CPA, CA Chief Financial Officer Paul Donohue VP Operations (Drilling) Darwin McIntyre VP Operations (Well Services) Bob Apps VP Sales and Marketing (Drilling) Mike Dubois VP Sales and Marketing (Well Services) Suite 2910, 605 - 5th Ave SW, Calgary, AB, T2P 3H5 T: 403.264.2177 F: 403.264.2842 www.cwcenergyservices.com Divisions Contract Drilling The Contract Drilling division operates under the trade name CWC Ironhand Drilling and is comprised of 13 electric triple drilling rigs with depth ratings from 3,600 to 7,600 metres and 9 telescopic double drilling rigs with depth ratings from 3,200 to 5,000 metres. All 22 drilling rigs have top drives, 17 have walking systems, 9 have 7,500 psi pumping systems, 3 have carbon reduction bi-fuel capabilites, and 2 have high line power capabilities. All of the drilling rigs are ideally suited for the most active depths for horizontal drilling in the Western Canadian Sedimentary Basin (“WCSB”), including the Montney, Cardium, Duvernay and other deep basin horizons, and select United States basins including the Permian, Eagle Ford, Niobrara, Denver-Julesburg (“DJ”), Powder River, and Bakken. With operational bases in Nisku, Alberta and Casper, Wyoming, CWC Ironhand Drilling is ideally positioned for the deeper depths of the Canadian and U.S. basins. Production Services The Production Services division operates under the trade name CWC Well Services. With 140 service rigs, CWC is one of the largest well servicing companies in Canada as measured by active fleet and operating hours, offering the most technologically advanced service rig fleet in the WCSB. These service rigs provide completions, maintenance, workovers and well decommissioning with depths ranging from 1,500 to 5,000 metres and are well positioned throughout the WCSB with operating locations in Grande Prairie, Slave Lake, Sylvan Lake, Drayton Valley, Lloydminster, Provost and Brooks, Alberta. Equipment 2023 2022 2021 2020 Contract Drilling – Canada 7 7 7 7 Contract Drilling – U.S. 15 15 12 2 Service Rigs 140 143 144 145 2023 ESTIMATE REVENUE BY DIVISION ADJUSTED EBITDA BY DIVISION * Production Services Contract Drilling – Canada Contract Drilling – U.S. * Divisional contribution, corporate costs excluded 45% 38% 17% 42% 40% 18% President’s Message Dear Fellow Shareholders, I am very excited to share with you CWC Energy Services Corp.’s (“CWC” or the “Company”) 2022 Annual Report. 2022 was a record-breaking year in CWC’s 18 year history. The Company took advantage of the downturn in 2020 and the recovery in 2021 to become extremely efficient and lean in its cost structure that resulted in a strong balance sheet. The Company used this strong balance sheet to purchase 10 triple drilling rigs in November 2021 and 3 triple drilling rigs in June 2022 at $0.08 and $0.17 on the $1.00 respectively, compared to the replacement cost to build new. These acquisition metrics have proven to be highly accretive for the benefit of our shareholders. The purchase of these 13 triple drilling rigs geographically diversifies our operations to the United States and increases our total drilling rig fleet in Canada and the U.S. by 144% from 9 to 22 drilling rigs. For 2023, CWC expects the approximate revenue and Adjusted EBITDA contribution from Contract Drilling in Canada to be 18%, Contract Drilling in the U.S. to be 38% and from Production Services in Canada to be 45%, thereby providing CWC shareholders with a more resilient, balanced and stronger Company. Highlights of 2022 2022 started the year with West Texas Intermediate (“WTI”) crude oil prices at US$75/bbl and rising to US$123/bbl by early June 2022, primarily as a result of Russia’s invasion of Ukraine and the economic sanctions put on Russia by democratic countries around the world, before its steady decline to end the year at US$80/bbl. The higher crude oil and natural gas prices, government’s concern over energy security, and rising inflation and interest rates, translated into a stellar year for North American oilfield services activity throughout 2022 and, by extension, increased business and record-breaking financial results for CWC. In 2022, CWC increased revenue to $205.3 million (a $102.7 million increase or 100% from 2021) and increased Adjusted EBITDA to $45.9 million (a $27.1 million increase or 143% from 2021) resulting in net income of $41.7 million (a $37.1 million increase or 811% from 2021). As CWC proved out the highly accretive nature of the 10 triple drilling rig acquisition made in November 2021 and under the backdrop of many countries and governments prioritizing energy security, CWC’s Board of Directors announced on June 24, 2022 the acquisition of an additional 3 high-spec triple drilling rigs for US$7.4 million (approximately $9.6 million) using our existing credit facilities from our banking syndicate. Along with this acquisition, CWC’s Board of Directors approved an $8.3 million increase to the capital expenditure budget to complete upgrades and Level IV recertifications on these 3 drilling rigs. For a total investment of $17.9 million, CWC acquired these 3 triple drilling rigs at a very attractive price, estimating the replacement cost of these drilling rigs and related equipment and inventory to be $103 million resulting in the total investment being 17.4% of replacement cost. The cash flow expected to be generated from these 3 triple drilling rigs in 2023 and future years is expected to be highly accretive for CWC’s shareholders. On July 29, 2022 our banking syndicate agreed to CWC’s exercise of its accordion feature to expand the credit facilities from $70 million to $80 million to accommodate the acquisition of the 3 triple drilling rigs and to extend the maturity of the credit facilities to July 31, 2025. Such support from our debtholders allows CWC to focus on its business operations and strategic growth initiatives to create long-term shareholder value. On November 16, 2022, the Company reinstated its Normal Course Issuer Bid (“NCIB”) with an Automatic Securities Purchase Plan (“ASPP”) with Raymond James Ltd. During 2022, CWC purchased 210,000 common shares under the NCIB which were cancelled and returned to treasury. These common shares represented Page | 3 0.6% of the 34,170,116 shares traded on the TSX Venture Exchange in 2022, as the Company added value for its remaining shareholders by reducing the number of common shares outstanding and providing liquidity for those shareholders looking to sell their shares. On June 23, 2022, CWC made history drilling Alberta’s first two lithium brine evaluation wells for our customer. In the last 2 years, CWC has worked on lithium brine, carbon capture, helium and salt water disposal wells. These projects show the diversity and versatility of our equipment as we transition to a new energy environment. Also in June 2022, CWC released its second annual Environmental, Social and Governance (“ESG”) Report using the framework established by the Sustainability Accounting Standards Board (“SASB”) for Oil and Gas Services. This 2022 ESG Report covers performance metrics for 2018 to 2021. CWC’s commitment to ESG and sustainability has shown improvement over the last four years and the Company is proud to be the first Canadian contract drilling and well servicing company to report our Scope 1 and 2 emissions as outlined in this report. Management will continue to work towards advancing these efforts further in future years, especially in the area of emission reductions and establishing goals and targets. One of the initial steps CWC has taken towards meeting its ESG targets has been to convert some of our drilling rig field equipment to have carbon reduction bi-fuel and high-line power capabilities and one of our service rigs to a Tier 4 engine. Management is confident that CWC will continue to be regarded as a leader on ESG and sustainability matters in the oilfield services industry as the nature of the work for our equipment evolves. Outlook For 2023 As strong as the activity level and pricing was in 2022, the expectation for 2023 is even higher. On November 23, 2022, the CAOEC forecasted 70,495 operating days for Canadian drilling rigs in 2023, an increase of 20% compared to 2022. While inflation, interest rate increases by central banks and a potential global recession continue to be a concern for the price of crude oil and natural gas, North American oilfield services activity and pricing has not shown any signs of a significant pullback to date. The discipline among our North American E&P customers to return free cash flow in the form of dividends and share buybacks to their shareholders remains strong and will keep the potential of any oversupply of crude oil or natural gas in check. This should result in a steady stream of North American oilfield services activity throughout 2023 and beyond. For CWC, Q1 2023 has started off strong. Activity levels in both Canada and the U.S. are as high as last year’s comparable quarter, while pricing continues to increase compared to the prior quarter for both drilling rigs and service rigs. The day and hourly rates for both the drilling rigs and service rigs are now at record levels in CWC’s 19 year history buoyed by inflation for both labour and supplies. The biggest challenge for CWC and the industry will be to attract more field labour or rig crews to accommodate any further increases in activity levels, if required by our E&P customers. CWC has been successful in its recruiting efforts hitting a high of 720 employees in 2022, an increase of 17% more employees than our pre-COVID-19 levels in January 2020. Should CWC continue on its current path, 2023 will be another record-breaking year for revenue and Adjusted EBITDA in the Company’s 19 year history. Shareholder Returns From a shareholder return perspective, I am very pleased to report that CWC is the best performing public Canadian contract drilling and well servicing company with a share price appreciation of 120% of what it was prior to the COVID-19 induced downturn as the graph of Share Price Returns from January 1, 2020 to March 31, 2023 on the following page indicates: Page | 4 The recent pullback in share price to the $0.22 per share level is an extremely attractive entry point as the forecasted 2023 free cash flow of $20 million would result in a free cash flow yield of 20%. Should CWC achieve these forecasted financial results in 2023, there would be the potential by our Board of Directors to make decisions related to shareholder friendly outcomes in the form of dividends and share buybacks barring any other potential use of the free cash flow, such as mergers and acquisitions, that could be more attractive and accretive to CWC’s shareholders. Conclusion In closing, I would like to express my sincere thanks to CWC’s employees for their truly hard work and dedication for the outstanding results in 2022 and making CWC the best performing contract drilling and well servicing company in Canada and the U.S. To our customers, we cherish your ongoing business and relationship and thank you for sharing your good cash flow fortunes in 2022 and 2023 with our drilling and service rig pricing increases, which will help create a healthy and sustainable energy industry for all stakeholders. To my Board of Directors, thank you for your support, wisdom, guidance and belief in this management team, who continue to push forward and give their best every day. And to all my fellow shareholders who continue to believe and support us, discipline, patience, and perseverance has and will continue to reward us in what I believe is the beginning of a multi-year energy uptrend. Sincerely submitted on behalf of the Board of Directors, Duncan T. 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ȌȋͳȌ ͵ͷǡͻͶʹ ͳͺǡͻ ͳʹǡͲͻ ȋ ȌȋͳȌ ͵Ǥǣͳ ͵Ǥͳǣͳ ʹǤͻǣͳ ʹͺǡͷͷʹ ʹʹǡͶͷ ʹͲʹǡʹʹ͵ Ǧȋ Ȍ Ͷ͵ǡͲͲͶ ͶͷǡͺͶ ͵Ͳǡʹ͵ͳ ̵ ʹͳͲǡ͵ͺͳ ͳ͵ǡʹͻ ͳͷǡͻ ȋ͵ȌǤ $thousands,exceptshares,pershareamounts, andmargins AsatDecember31, ͷͳͳǡʹͺͶǡͲͺ͵ ͷͲͷǡ͵͵ǡͻͺ ͷͲǡͳͲͶǡͲͲͶ Threemonthsended December31, Twelvemonthsended December31, ȋʹȌ ȋȌǦ ȋȌǤ ͷʹͺǡͺʹͳǡͻͻͶ ͷͳ͵ǡʹͲ͵ǡͺ ͷͲǡͳͲͶǡͲͲͶ ȋͳȌDzǦ dz Ǥ ȁ HighlightsfortheThreeMonthsEndedDecember31,2022 x ͶʹͲʹʹ Ͷ ǡ ǯȋͳͺȌǤ x ͶʹͲʹʹ̈́ͲǤͲǡ ̈́ʹǤ͵ȋͺΨȌ ̈́͵͵ǤͶʹͲʹͳǤ ̈́ʹʹǤȋͳͺͳΨȌͶʹͲʹʹ ̈́͵ǤȋͳΨȌ ͶʹͲʹͳǤ x ͶʹͲʹʹ ȋͳȌ̈́ͳ͵Ǥǡ ̈́ǤȋͳʹͶΨȌ ̈́ǤͳͶ ʹͲʹͳǤ x ͶʹͲʹʹ ̈́ʹǤͲǡ ̈́ʹ͵Ǥʹ ̈́ʹǤͻͶʹͲʹͳǤ ̈́ʹ͵Ǥ͵ ʹͲͳͷʹͲʹͲǤ x ͶʹͲʹʹǡʹͳͲǡͲͲͲȋͶʹͲʹͳǣȌ ȋDz dzȌ Ǥ ȋͳȌ DzǦ dz Ǥ HighlightsfortheYearEndedDecember31,2022 x ͵ͳǡʹͲʹʹ ǡ ȋͳȌ ǯȋͳͺȌǤ x ʹͲʹʹ̈́ʹͲͷǤ͵ǡ ̈́ͳͲʹǤȋͳͲͲΨȌ ̈́ͳͲʹǤʹͲʹͳǡ ̈́ͳͶͶǤͺʹͲͳͺǤ ̈́ͺǤͻ ȋʹͶͻΨȌ ̈́ʹ͵Ǥͺȋ͵ͶΨȌ ʹͲʹͳǤ x ȋͳȌʹͲʹʹ̈́ͶͷǤͻǡ ̈́ʹǤͲȋͳͶ͵ΨȌ ̈́ͳͺǤͻ ʹͲʹͳǡ ̈́͵ͶǤͳʹͲͳͶǤ x ʹͲʹʹ̈́ͶͳǤǡ ̈́͵Ǥͳ ̈́ͶǤʹͲʹͳǡ ̈́ͳʹǤʹͲͳͳǤ x ʹͶǡʹͲʹʹǡ ȋ͵Ȍ ̈́ǤͶȋ̈́ͻǤȌǤ x ʹͻǡʹͲʹʹǡ ̈́ͺͲǤ͵ ̈́ͷͲǤ ǡ̈́ͳʹǤͲȋ̈́ͳͷǤȌǤǤ ǡ ̈́Ǥͷ ̈́ͷǤͲȋ̈́ǤͷȌǤǤ Ǥ ͵ͳǡʹͲʹͷǤ x ͳǡʹͲʹʹǡ ȋDzdzȌ Ǥǡ ͳͷǡ ʹͲʹ͵Ǥ ͵ͳǡ ʹͲʹʹǡ ʹͳͲǡͲͲͲȋʹͲʹͳǣʹǡʹͶͻǡͷͲͲȌ Ǥ x ǯ ʹͲʹʹǡǤ x ͳʹʹͲʹʹ ʹͲʹʹǤ ȋͳȌ DzǦ dz Ǥ IndustryOverview Averagecrudeoilandnaturalgasprices Threemonthsended Dec.31, 2022 Sep.30, 2022 Jun.30, 2022 Mar.31, 2022 Dec.31, 2021 Sep.30, 2021 Jun.30, 2021 Mar.31, 2021 Crudeoil ȋ̈́ȀȌ ͺʹǤͷ ͻͳǤͷͷ ͳͲͺǤͶͳ ͻͶǤʹͻ Ǥͳͻ ͲǤͷ Ǥͳʹ ͷǤͻ ȋ̈́ȀȌ ͷͶǤͶͺ ͲǤͻͷ ͻ͵ǤͲͷ ͺͳǤͶͻ ͲǤͶͶ ͷǤͶ ͷͶǤͺ ͶͷǤ͵ͻ Naturalgas ȋ̈́Ȁ Ȍ ǤͲͲ ͷǤͲͲ Ǥͻʹ ͶǤ ͶǤͺͻ ͵Ǥͷ ͵ǤͲͷ ʹǤͻͳ ǣ Ǥ ȁͺ ǯǯ ǡ ǡ ʹͲʹʹǤ ǡ Ǧ ʹͲʹͲʹͲʹͳ Ǧͳͻ ǡ ǡ ʹͲʹʹǤ ǡ ǡ ̈́Ͳ̈́ͺͲȀǤ ǡ ǡ Ǥ CorporateOverview Ǥ Ǥ̵ ǡǡ ǡ ǡǡǡǡ ǡǡǤǤ ǡǡǤǯ DzdzǤ ȋͳ͵Ȍ ͵ǡͲͲǡͲͲȋͻȌ ͵ǡʹͲͲͷǡͲͲͲǤǦȋʹʹȌǡȋͳȌǡ ȋͻȌǡͷͲͲǡȋ͵Ȍ Ǧ ǡȋʹȌ Ǥ ȋDzdzȌǡ ǡǡǡ ǡ ǡǡǦ ȋDz dzȌǡǤ ǤͳͶ͵ ǡ ̵ Ǥǯ ͷǡͷͶͳͶ ǡ ǡ ͳǡͷͲͲͷǡͲͲͲǤ ʹͲʹʹǡ ͻ Ͷ Ǥ ͵ͳǡʹͲʹʹǡͺͺΨȋʹͲʹͳǣͳΨȌ ǡͳͳΨ ȋʹͲʹͳǣʹΨȌͳΨ ȋʹͲʹͳǣʹΨ ǡǡȌǤ ǡ ͲΨ ȋʹͲʹͳǣ ͵ΨȌ ǡ ʹͻΨ ȋʹͲʹͳǣ ͶΨȌ ͳͳΨȋʹͲʹͳǣͳΨȌ Ǥ Outlook ǤǤ Ǧͳͻ ǤȀ ǡǯǡ ʹͲʹʹǤ ǡ Ǥ ǡ Ƭ ǡ Ǥ Ƭ Ǥ ǡ ̈́ͳͲͲȀȋͳȌʹͲʹ͵ ǣ x Ǧǯ Ǧͳͻ Ǣ x ʹͲʹʹ ʹǤͲȀʹͲʹ͵Ǣ x ȋDzdzȌ ǡ ʹͲʹʹǡ ̈́ͲȀǢ ȁͻ x ʹͲʹ͵ ͷͲͲǡͲͲͲȀ Ǣ x ǤǤ ȋDzdzȌȋͶȌ ǤǤͳͺͲȋȌ ʹͲʹʹǯ ǤǤǤ ʹͲʹ͵ ̈́ʹȀǤ ȋͳȌ ǣ ǡ ʹͲʹ͵Ǥ ʹͲʹʹ ȋͳͺȌǤ Ǥ ͵ͳǡʹͲʹʹͷǢ ʹͲʹͲǦ ǦͳͻʹͲǤ ǡ ǡ Ǥ ʹͲʹʹǡ Ƭ ʹͲʹ͵Ǥ ʹͲʹ͵ǡ ǯ Ǥǯ Ǥ Ǥ ǡ ǡ Ǥ ǡ ǡ Ǥ ʹͲʹʹǡʹͲʹʹǡ ȋDz dzȌǤ ʹͲʹͳǡ ǡ ͳʹǤ Ǥ Ǧ ͶǤ ʹͲʹ͵ǡ Ǥ ʹͲʹʹǡ ǯ Ǥ Ǥ ǡǡǡ Ǥ ǯ Ǥ ȁͳͲ ResultsofOperations Threemonthsended December31, Change Change Twelvemonthsended December31, Change Change $thousands,exceptpershare amounts 2022 2021 $ % 2022 2021 $ % ͲǡͲ͵ͻ ͵͵ǡͻ͵ ʹǡ͵Ͷ ͺΨ ʹͲͷǡ͵͵ʹ ͳͲʹǡ͵ͷ ͳͲʹǡͻ ͳͲͲΨ ͵ͻǡͷͷ ʹʹǡͳͺ ͳǡ͵ͻ ͺΨ ͳ͵ǡͻͶ ʹǡʹͺͺ Ͷǡͷͻ ͺͻΨ Grossmargin(1) ʹͲǡͶͶ ͳͳǡͷʹͷ ͺǡͻͶͻ ͺΨ ͺǡ͵ͺͷ ͵Ͳǡ͵Ͷ ͵ͺǡͲ͵ͺ ͳʹͷΨ ȋȌ Ǧ ȋͻʹȌ ͻʹ ȋͳͲͲΨȌ Ǧ ͵ǡͺ͵ͷ ȋ͵ǡͺ͵ͷȌ ȋͳͲͲΨȌ ǡ͵ͺ ͶǡͶ͵ ʹǡʹͷ ͷͳΨ ʹʹǡͶͷͶ ͳͷǡ͵ͳͲ ǡͳͶͶ ͶΨ AdjustedEBITDA(1) ͳ͵ǡ͵ ǡͳ͵ͷ ǡͲͳ ͳʹͶΨ Ͷͷǡͻ͵ͳ ͳͺǡͺʹ ʹǡͲͷͻ ͳͶ͵Ψ ͵ͷ ʹ͵ ͻ͵ ͵ͷΨ ͳǡͲͶͻ ͺʹ ʹ ͵ͶΨ ͺͷͷ ʹͻͶ ͷͳ ͳͻͳΨ ʹǡͷͷͺ ͳǡͲͺ ͳǡͶʹ ͳ͵Ψ ͵ǡͲ͵͵ ʹǡͶ ʹͷͻ ͻΨ ͳʹǡͳʹ ͳͲǡͷ͵ ͳǡͷͻͻ ͳͷΨ ȋ Ȍ ȋʹȌ ȋʹͲͺȌ ͳͺͳ ȋͺΨȌ ͷͲ ȋʹͷͳȌ ͵Ͳͳ ͳʹͲΨ ȋȌ ȋʹ͵ǡʹͳȌ Ǧ ȋʹ͵ǡʹͳȌ ȀȋʹȌ ȋʹ͵ǡʹͳȌ ͳǡʹͻ ȋʹͶǡͷͷȌ ȋͳǡͺͻͷΨȌ Incomebeforeincometaxes ͵ʹǡͺͲ ͵ǡͲͳʹ ʹͻǡͺ ͻͺͺΨ ͷ͵ǡ͵͵ ͷǡ͵ͻ Ͷǡͻ ͺͺͻΨ ͳͳͶ Ǧ ͳͳͶ ȀȋʹȌ ͳͳͶ Ǧ ͳͳͶ ȀȋʹȌ ǡʹ ͳͶ ǡͶͺͲ ͶǡͶ͵ͺΨ ͳͳǡͷͻͻ ͺʹ͵ ͳͲǡ ͳǡ͵ͲͻΨ Incometaxexpense ǡͶͲ ͳͶ ǡͷͻͶ ͶǡͷͳΨ ͳͳǡͳ͵ ͺʹ͵ ͳͲǡͺͻͲ ͳǡ͵ʹ͵Ψ Netincome ʹǡͲͶͲ ʹǡͺ ʹ͵ǡͳͶ ͺͲͻΨ ͶͳǡͲ Ͷǡͷ͵ ͵ǡͲͺ ͺͳͳΨ Netincomepershare ̈́ͲǤͲͷ ̈́ͲǤͲͳ ̈́ͲǤͲͶ ͶͲͲΨ ̈́ͲǤͲͺ ̈́ͲǤͲͳ ̈́ͲǤͲ ͲͲΨ ȋͳȌ DzǦ dz Ǥ ȋʹȌ Ǥ ȁͳͳ ContractDrilling–CanadaandUnitedStates $thousands, exceptmargins,numberofrigs, revenueperoperatingday,and utilization Threemonthsended December31, Change Change Twelvemonthsended December31, Change Change 2022 2021 $ % 2022 2021 $ % Revenue ͳʹǡͶ͵ʹ ͻǡͷͷ ʹǡ ʹΨ Ͷǡʹͻ ʹͶǡͳͲ ʹʹǡͷͻ ͻͳΨ ʹʹǡͺͳ ʹǡͺ ʹͲǡͲ͵ͻ ʹͳΨ ͵ǡʹͻͷ ǡͲͲʹ ͷǡʹͻ͵ ͺͲͶΨ ͵ͷǡʹͶͻ ͳʹǡͷ͵͵ ʹʹǡͳ ͳͺͳΨ ͳͳͲǡͷͶ ͵ͳǡͳʹ ͺǡͺʹ ʹͶͻΨ Directoperatingexpenses ͺǡʹͷ ǡͺͳͲ ͳǡͶͶ ʹͳΨ ͵ʹǡͶͶͷ ͳͺǡͺ͵͵ ͳ͵ǡͳʹ ʹΨ ͳͷǡͺ ʹǡͲͲ ͳ͵ǡʹ Ψ ͶͶǡͲʹ ͷǡʹͻͶ ͵ͻǡ͵Ͳͺ Ͷ͵Ψ ʹͶǡͲͶʹ ͺǡͺͲ ͳͷǡͳʹ ͳͳΨ ǡͲͶ ʹͶǡͳʹ ͷʹǡͻʹͲ ʹͳͻΨ Grossmargin(1) Ͷǡͳ ʹǡͻͶͷ ͳǡʹ͵ͳ ͶʹΨ ͳͶǡͺ͵Ͷ ͷǡͺ ͺǡͻͷ ͳͷʹΨ ǡͲ͵ͳ ͳͺ ǡ͵ͳ͵ ͺͻΨ ͳͺǡͻ͵ ͳǡͲͺ ͳǡͻͺͷ ͻͻͶΨ ͳͳǡʹͲ ͵ǡ͵ ǡͷͶͶ ʹͲΨ ͵͵ǡͷʹ ǡͷͺͷ ʹͷǡͻͶʹ ͵ͶʹΨ Grossmarginpercentage(1) ͵ͶΨ ͵ͲΨ Ȁ ͶΨ ͵ͳΨ ʹͶΨ Ȁ Ψ ͵ͳΨ ʹΨ Ȁ ͷΨ ͵ͲΨ ʹͶΨ Ȁ Ψ ͵ʹΨ ʹͻΨ Ȁ ͵Ψ ͵ͲΨ ʹͶΨ Ȁ Ψ Totaldrillingrigs,endofperiod Ǧ ͲΨ Ǧ ͲΨ ͳͷ ͳʹ ͵ ʹͷΨ ͳͷ ͳʹ ͵ ʹͷΨ ʹʹ ͳͻ ͵ ͳΨ ʹʹ ͳͻ ͵ ͳΨ Revenueperoperatingday(2) ̈́͵ͳǡͻͷͻ ̈́ʹͷǡͳͲ͵ ̈́ǡͺͷ ʹΨ ̈́ʹͻǡͻͲͶ ̈́ʹ͵ǡͶ͵͵ ̈́ǡͶͳ ʹͺΨ ȋ̈́Ȍ ̈́ʹͻǡͺͶ ̈́ʹͺǡͶʹͷ ̈́ͳǡͶʹʹ ͷΨ ̈́ʹͺǡʹͲͲ ̈́ʹͺǡͳͻͺ ̈́ʹ ͲΨ Drillingrigoperatingdays ͵ͺͻ ͵ͺ ʹ ͳΨ ͳǡͷͺͳ ͳǡͲͷͶ ͷʹ ͷͲΨ ͷ͵ ͻ ͶͺͶ ͳ͵Ψ ͳǡͲ ͳͻͺ ͳǡͷͲͻ ʹΨ ͻͷʹ Ͷ Ͷͺ ͳͲͶΨ ͵ǡʹͺͺ ͳǡʹͷʹ ʹǡͲ͵ ͳ͵Ψ Drillingrigutilization%(3) ͳΨ ͲΨ Ȁ ͳΨ ʹΨ ͶͳΨ Ȁ ʹͳΨ ͷͳΨ ͳͳΨ Ȁ ͶͲΨ ͵ͻΨ ͳΨ Ȁ ʹ͵Ψ ͷͷΨ ͷΨ Ȁ ȋͳΨȌ ͶΨ ͵ͺΨ Ȁ ͻΨ ȋͳȌ DzǦ dz Ǥ ȋʹȌ ȋǤǤȌǤ Ǥ ȋ͵Ȍ ȋǤǤ ȌǤ ǡ ͻͲ Ǥ ̈́ͳʹǤͶͶʹͲʹʹǡ ̈́ʹǤȋʹΨȌ ̈́ͻǤͺ ͶʹͲʹͳǡ ͳΨȋͶʹͲʹͳǣͲΨȌǡ ͵ͺΨ ȋͶʹͲʹͳǣʹͻΨȌǤ ͵ͺͻͶʹͲʹʹǡ ʹȋͳΨȌ ͵ͺͶʹͲʹͳȋȌ Ǥ ̈́ͶǤʹǡ ̈́ͳǤʹ̈́ʹǤͻͶ ʹͲʹͳǤ ʹΨ ǡ ǡ ǡ Ǥ ǤǤ ̈́ʹʹǤͺͶʹͲʹʹǡ ̈́ʹͲǤͲȋʹͳΨȌ ̈́ʹǤͺ ͶʹͲʹͳǡ ͷ͵ǤǤȋͶʹͲʹͳǣͻǤǤȌǤͶ ʹͲʹʹǡȋͺȌȋͳʹȌǤǤ ȁͳʹ ǤǤ ̈́ǤͲǡ ̈́Ǥ͵ ̈́ͲǤ ͶʹͲʹͳǤ ͳ͵Ψ ǤǤǤ ǯ ͵ʹΨͶʹͲʹʹʹͻΨ Ͷ ʹͲʹͳ ǡ Ǥ ProductionServices–Canada $thousands, exceptmargins,numberofrigs, revenueperoperatinghour,and utilization Threemonthsended December31, Change Change Twelvemonthsended December31, Change Change 2022 2021 $ % 2022 2021 $ % Revenue ʹͶǡͻͲ ʹͳǡͳͲ ͵ǡ͵Ͳ ͳΨ ͻͶǡͷͺ Ͳǡͻʹ͵ ʹ͵ǡͺ͵ͷ ͵ͶΨ Directoperatingexpenses ͳͷǡͷʹ͵ ͳ͵ǡʹͻͺ ʹǡʹʹͷ ͳΨ ͷͻǡͻͲͲ Ͷͺǡͳͳ ͳͳǡ͵ͻ ʹͶΨ Grossmargin(1) ͻǡʹ ǡͺʹ ͳǡͶͲͷ ͳͺΨ ͵Ͷǡͺͷͺ ʹʹǡʹ ͳʹǡͲͻ ͷ͵Ψ Grossmarginpercentage(1) ͵Ψ ͵Ψ Ȁ ͲΨ ͵Ψ ͵ʹΨ Ȁ ͷΨ Servicerigs,endofperiod Ͷ ȋ͵Ȍ ȋͶΨȌ Ͷ ȋ͵Ȍ ȋͶΨȌ ͻ ʹ ͵Ψ ͻ ʹ ͵Ψ ͳͶ͵ ͳͶͶ ȋͳȌ ȋͳΨȌ ͳͶ͵ ͳͶͶ ȋͳȌ ȋͳΨȌ Revenueperhour ̈́ͻʹ͵ ̈́ͳʹ ̈́ʹͳͳ ͵ͲΨ ̈́ͺͲ ̈́ʹ ̈́ͳͺͺ ʹͺΨ Servicerigoperatinghours ʹǡͺͷͶ ʹͻǡ͵ʹ ȋʹǡͺͺȌ ȋͳͲΨȌ ͳͳͲǡʹͶͳ ͳͲͷǡͷͲ Ͷǡͷ ͶΨ Servicerigutilization%(2) ͶΨ ͺΨ Ȁ ȋͶΨȌ Ψ ͲΨ Ȁ Ψ ȋͳȌ DzǦ dz Ǥ ȋʹȌ ǡ ͳͲͷ Ǥ ʹͶǡͲͲͲǦ ǡ ǡ ͻͲ Ǥ ̈́ʹͶǤͺͶʹͲʹʹǡ ̈́͵ǤȋͳΨȌ ̈́ʹͳǤʹͶ ʹͲʹͳ ǡ ̈́ͻʹ͵ͶʹͲʹʹ ̈́ʹͳͳȋ͵ͲΨȌ ̈́ͳʹͶʹͲʹͳǤ̵ ͶʹͲʹʹͶΨȋͶʹͲʹͳǣͺΨȌʹǡͺͷͶ ͳͲΨ ʹͻǡ͵ʹ Ͷ ʹͲʹͳ ʹͲʹʹƬ ͶʹͲʹʹ Ͷ ʹͲʹͳǤ ͶʹͲʹʹǡ̈́ͲǤȋͶʹͲʹͳǣ̈́ͳǤ͵Ȍ͵ͶȋͶʹͲʹͳǣͺȌ ȋDzdzȌͺȋͶʹͲʹͳǣʹȌ ȋDzdzȌ Ǧ Ǥ̈́ͳǤͲǡ̈́ͶͲͲ ̈́ͳͲͲǤǤ ȋDzdzȌ ͳͶǡ ʹͲʹ͵ ǡǡ ǡ Ǥ SellingandAdministrativeExpenses Threemonthsended December31, Change Change Twelvemonthsended December31, Change Change $thousands 2022 2021 $ % 2022 2021 $ % ǡ͵ͺ ͶǡͶ͵ ʹǡʹͷ ͷͳΨ ʹʹǡͶͷͶ ͳͷǡ͵ͳͲ ǡͳͶͶ ͶΨ ̈́ǤͶʹͲʹʹǡ ̈́ʹǤ͵ȋͷͳΨȌ ̈́ͶǤͷ ͶʹͲʹͳǤ ͵ͳǡʹͲʹʹǡ̈́ʹʹǤͷǡ ̈́Ǥͳ ȋͶΨȌ ̈́ͳͷǤ͵ʹͲʹͳǤ ͵ͳǡ ʹͲʹʹ ʹͲʹͳ Ǥ ȁͳ͵ AdjustedEBITDA(1) Threemonthsended December31, Change Change Twelvemonthsended December31, Change Change $thousands 2022 2021 $ % 2022 2021 $ % AdjustedEBITDA(1) ͻǡʹʹͶ ʹǡͻ͵ͷ ǡʹͺͻ ʹͳͶΨ ʹǡͶͳͶ ǡ͵ͳ͵ ʹͳǡͳͲͳ ͵͵ͶΨ ǡͺͳͻ ͷǡͻͶ ͺʹ ͳͷΨ ʹͷǡͳͷ ͳͺǡͺͻ ǡͻʹ ͵Ψ ȋʹǡ͵ͲȌ ȋʹǡͶȌ ͶͶͲ ͳΨ ȋǡͲͻͺȌ ȋǡͳ͵ͲȌ ȋͻͺȌ ȋͳȌΨ ͳ͵ǡ͵ ǡͳ͵ͷ ǡͲͳ ͳʹͶΨ Ͷͷǡͻ͵ͳ ͳͺǡͺʹ ʹǡͲͷͻ ͳͶ͵Ψ ȋΨȌȋͳȌ ʹ͵Ψ ͳͺΨ Ȁ ͷΨ ʹʹΨ ͳͺΨ Ȁ ͶΨ ȋͳȌDz Ǧ dz Ǥ ȋͳȌ Ǥ ȋͳȌ ǡ ǡ ǦǤ ȋͳȌ̈́ͳ͵ǤͶʹͲʹʹǡ ̈́ǤȋͳʹͶΨȌ ̈́ǤͳͶʹͲʹͳǤ ȋͳȌ̈́ͶͷǤͻʹͲʹʹǡ ̈́ʹǤͳȋͳͶ͵ΨȌ ̈́ͳͺǤͻʹͲʹͳǤ ȋͳȌǤǤȋͳ͵Ȍ Ǧͳͻ Ǥ StockBasedCompensation ȋDzdzȌ Ǥ ̈́ͲǤͶͶʹͲʹʹǡ ̈́ͲǤͳȋ͵ͷΨȌ ̈́ͲǤ͵ͶʹͲʹͳǤ ̈́ͳǤͲʹͲʹʹǡ ̈́ͲǤ͵ȋ͵ͶΨȌ ̈́ͲǤͺʹͲʹͳǤ FinanceCosts ̈́ͲǤͻͶʹͲʹʹǡ ̈́ͲǤȋͳͻͳΨȌ ̈́ͲǤ͵ͶʹͲʹͳǤ ̈́ʹǤʹͲʹʹǡ ̈́ͳǤͷȋͳ͵ΨȌ ̈́ͳǤͳʹͲʹͳǤ ͵ͳǡʹͲʹʹ ʹͲʹͳ ʹͲʹʹǤ Depreciation ̈́͵ǤͲͶʹͲʹʹǡ ̈́ͲǤ͵ȋͻΨȌ ̈́ʹǤͺͶʹͲʹͳǤ ̈́ͳʹǤʹʹͲʹʹǡ ̈́ͳǤȋͳͷΨȌ ̈́ͳͲǤʹͲʹͳ ʹͲʹʹ ʹͲʹͳǤ Threemonthsended December31, Change Change Twelvemonthsended December31, Change Change $thousands 2022 2021 $ % 2022 2021 $ % ͵ͷ ʹ͵ ͻ͵ ͵ͷΨ ͳǡͲͶͻ ͺʹ ʹ ͵ͶΨ Threemonthsended December31, Change Change Twelvemonthsended December31, Change Change $thousands 2022 2021 $ % 2022 2021 $ % ͺͷͷ ʹͻͶ ͷͳ ͳͻͳΨ ʹǡͷͷͺ ͳǡͲͺ ͳǡͶʹ ͳ͵Ψ Threemonthsended December31, Change Change Twelvemonthsended December31, Change Change $thousands 2022 2021 $ % 2022 2021 $ % ͵ǡͲ͵͵ ʹǡͶ ʹͷͻ ͻΨ ͳʹǡͳʹ ͳͲǡͷ͵ ͳǡͷͻͻ ͳͷΨ ȁͳͶ Impairment(Reversal)ofAssets Threemonthsended December31, Change Change Twelvemonthsended December31, Change Change $thousands 2022 2021 $ % 2022 2021 $ % Impairment(reversal)of assets ȋʹʹǡͻͷʹȌ Ǧ ȋʹʹǡͻͷʹȌ ȀȋͳȌ ȋʹʹǡͻͷʹȌ Ǧ ȋʹʹǡͻͷʹȌ ȀȋͳȌ ȋ͵ͲͻȌ Ǧ ȋ͵ͲͻȌ ȀȋͳȌ ȋ͵ͲͻȌ ͳǡʹͻ ȋͳǡͲͷȌ ȋͳʹͶΨȌ ȋʹ͵ǡʹͳȌ Ǧ ȋʹ͵ǡʹͳȌ ȀȋͳȌ ȋʹ͵ǡʹͳȌ ͳǡʹͻ ȋʹͶǡͷͷȌ ȋͳǡͺͻͷΨȌ Ǧͳͻ Ǥ ǯ Ǥ ǡ ǯ ȋDz dzȌ ͵ͳǡʹͲʹʹǤ ǡ ̵ ʹͲʹ͵ͷǦ ͵ͳǡʹͲʹʹǤ Ǧ ʹͲΨ Ǥ ͵ Ǥ ǯ Ǥ ͵ͳǡʹͲʹʹǡ ̈́ʹʹǡͻͷʹ ̈́͵Ͳͻ Ǥ ǯ Ǥ (Gain)LossonDisposalofEquipment Ǥ ͵ͳǡʹͲʹʹǡ̈́ͲǤͳǡ ̈́ͲǤ͵ȋͳʹͲΨȌ ̈́ͲǤ͵ʹͲʹͳǡ Ǥ DeferredIncomeTaxExpense Threemonthsended Twelvemonthsended December31, December31, $thousands 2022 2021 2022 2021 ͵ʹǡͺͲ ͵ǡͲͳʹ ͷ͵ǡ͵͵ ͷǡ͵ͻ ͳͳͶ Ǧ ͳͳͶ Ǧ ǡʹ ͳͶ ͳͳǡͷͻͻ ͺʹ͵ Ψ ʹͲΨ ͷΨ ʹʹΨ ͳͷΨ ʹ͵ǤͳΨ ʹ͵ǤΨ ʹ͵ǤͳΨ ʹ͵ǤΨ Ǥ ǡ ǡ ǡ Ǥ ͶʹͲʹʹ̈́ǤȋͶʹͲʹͳǣ̈́ͲǤͳȌ̈́ͳͳǤʹͲʹʹȋʹͲʹͳǣ̈́ͲǤͺ Ȍ Ǥ ʹͲʹʹ ̈́ʹ͵Ǥ͵ʹͲʹʹ ̈́ͳǤ͵ʹͲʹͳǤ Threemonthsended December31, Change Change Twelvemonthsended December31, Change Change $thousands 2022 2021 $ % 2022 2021 $ % ȋ Ȍ ȋʹȌ ȋʹͲͺȌ ȋͳͺͳȌ ȋͺΨȌ ͷͲ ȋʹͷͳȌ ȋ͵ͲͳȌ ȋͳʹͲΨȌ ȁͳͷ Ǧ Ǥ NetIncomeandComprehensiveIncome ȋͳȌ ̈́ʹǤͲͶʹͲʹʹǡ ̈́ʹ͵Ǥʹ ̈́ʹǤͻͶʹͲʹͳǤ ̈́ʹͷǤʹͶʹͲʹʹǡ ̈́ʹʹǤʹ ̈́͵ǤͳͶʹͲʹͳǤ ̈́ͶͳǤʹͲʹʹǡ ̈́͵Ǥͳ ̈́ͶǤʹͲʹͳǤ ̈́ͶͷǤʹʹͲʹʹǡ ̈́ͶͲǤͶ ̈́ͶǤͺʹͲʹͳǤ ʹͲʹʹ ̈́ʹ͵Ǥ͵ʹͲʹʹ ̈́ͳǤ͵ʹͲʹͳǤǡ ǤǤͳ͵ Ǧͳͻ Ǥ LiquidityandCapitalResources SourceofFunds ǯ ǡ ǡǡ Ǥ ̵ Ǥ ʹͲʹʹǡǯ ̈́ʹͻǤͺǡ ̈́ͳǤʹǡ ̈́ͲǤͻ ̈́ʹͷǤͶ ǡ Ǧ̈́͵Ǥ͵ǡǦǡ ̈́͵Ǥͳ ̈́ͲǤͳǤ ͵ͳǡʹͲʹʹ ȋ Ȍ̈́͵ͷǤͻǡ ̈́ͳǤͲ ȋͻͲΨȌ̈́ͳͻǤͲ ͵ͳǡʹͲʹͳȋ̶Ǧ ̶ ȌǤ ȋ Ȍ ǡ ǤǤǡ Ͷ ʹͲʹʹ Ͷ ʹͲʹͳǤ ǡ Ǥ ȋDz dzȌǤ ʹͻǡ ʹͲʹʹǡ ̈́ͷͲǡͳͲ ǡ̈́ͳʹǡͲͲͲǤǤ ǡ̈́ǡͷͲͲ ̈́ͷǡͲͲͲǤǤ Ǥ ͵ͳǡ ʹͲʹͷ ȋDz dzȌǤ ǡ Ǥǡǡ Ǥ ǡ Ǥ ͵ͳǡʹͲʹʹǤ ͵ͳǡʹͲʹʹǡ ͳǤʹͷΨǡǯ ʹǤʹͷΨǡ ͲǤͷ͵ΨǤ ǯ ͵ͲǡʹͲʹͺʹʹ ̈́ͺǤǡ̈́ǤͲ ǤʹǡʹͲʹʹ ǡ ǯ Ǧ Ǥ Threemonthsended December31, Change Change Twelvemonthsended December31, Change Change $thousands 2022 2021 $ % 2022 2021 $ % ʹǡͲͶͲ ʹǡͺ ʹ͵ǡͳͶ ͺͲͻΨ ͶͳǡͲ Ͷǡͷ͵ ͵ǡͲͺ ͺͳͳΨ ȋȌ ȋͺʹ͵Ȍ ͳͺ ȋͳǡͲͳͲȌ ȋͷͶͲΨȌ ͵ǡͷͶͶ ʹͶ ͵ǡʹͺͲ ͳǡʹͶʹΨ ʹͷǡʹͳ ͵ǡͲͷ͵ ʹʹǡͳͶ ʹΨ ͶͷǡʹͲͶ Ͷǡͺ͵ ͶͲǡ͵ ͺ͵ͷΨ ȁͳ ǡ͵Ǥ͵ͺΨ ͳǤ͵ͷΨǡ ͶǤ͵ΨǤ Ǥ ͵ͳǡʹͲʹʹǡǦǦ ̈́ͳͷʹ ȋ ͵ͳǡʹͲʹͳǣ̈́ʹͳͲ ȌǤ CapitalRequirements ͷǡʹͲʹʹǡ ʹͲʹ͵̈́ʹǤ͵ ̈́ͶǤͲ ʹͲʹʹ ʹͲʹ͵ Ǧ ȋ͵Ȍ ʹͲʹʹǤ̈́ǤʹͲʹ͵ Ǧ ǡ ǡ ̈́ͳͷǤ ȋͶȌ Ǥ ʹͲʹ͵ ǯ ǦǦ Ǥ ʹͲʹ͵ Ǥ ǯʹͲʹʹ Dz dzǤ ǡ ǯǤ Ǥ ǡ ǡ Ǥ Ǥ ǡǡǤ ǡ Ǥ CommonSharesandDividends ǣ March1,2023 December31,2022 December31,2021 ͷͳͺǡͳͳǡͺͻͶ ͷͳͺǡͲͺͶǡʹ ͷͲͻǡͲʹǡͲͻͳ ͺͻǡͲͲͲ ͺͻǡͲͲͲ ǡ͵ʹ͵ǡͲͲͲ ͳǡ͵ͳǡͶͶ ͳǡͶͶͺǡͻͳͳ ͳǡͲͺͷǡͺͺ ͵ͳǡʹͲʹʹǡͶǡͳͷǡͲͲͲ ʹǡͳͻǡͲͲͲǤ ǡǡͲʹͶǡͲͲͲ ȋDzdzȌǡͶǡͲǡ͵ ͷ͵ǡ͵ͶͲǤ ͳǡʹͲʹʹǡ ͳͷǡʹͲʹ͵Ǥ ǡ ǡʹͷǡʹͲǡͳ Ǥ ǡ ȋDzdzȌȋ Ȍ Ǥȋ̶ ̶Ȍ Ǥ ǡ Ǥ Ǥ ͵ͳǡʹͲʹʹǡ ʹͳͲǡͲͲͲȋʹͲʹͳǣʹǡʹͶͻǡͷͲͲȌ Ǥ ȁͳ CapitalExpenditures Threemonthsended December31, Change Change Twelvemonthsended December31, Change Change $thousands 2022 2021 $ % 2022 2021 $ % Capitalexpenditures ͶǡͶ͵͵ ʹͶǡͺ ȋʹͲǡ͵ͶͷȌ ȋͺʹΨȌ ʹͳǡͶͻ͵ ʹǡͻ͵ ȋǡ͵ͲͲȌ ȋʹ͵ΨȌ ͳǡʹͻͲ ʹͷͲ ͳǡͲͶͲ ͶͳΨ ͶǡͶʹͲ ͳǡͶͲ ʹǡͻͷͲ ʹͲͳΨ ͳ ͳͳ ȋͳͲȌ ȋͻͳΨȌ ͳʹͺ ͳͷ ͳͳ͵ ͷ͵Ψ ͷǡʹͶ ʹͷǡͲ͵ͻ ȋͳͻǡ͵ͳͷȌ ȋΨȌ ʹǡͲͶͳ ʹͻǡʹͺ ȋ͵ǡʹ͵Ȍ ȋͳͳΨȌ Ͷǡʹ ʹ͵ǡͶ ȋͳͻǡ͵ͻȌ ȋͺʹΨȌ ͳͻǡͷͷͻ ʹͷǡ͵ͻ͵ ȋͷǡͺ͵ͶȌ ȋʹ͵ΨȌ ͳǡͶͷ ͳǡ͵ͷ ͺʹ ͺΨ ǡͶͺʹ ͵ǡͺͺͷ ʹǡͷͻ Ψ ͷǡʹͶ ʹͷǡͲ͵ͻ ȋͳͻǡ͵ͳͷȌ ȋΨȌ ʹǡͲͶͳ ʹͻǡʹͺ ȋ͵ǡʹ͵Ȍ ȋͳͳΨȌ ̈́ͷǤͶʹͲʹʹǡ ̈́ͳͻǤ͵ ̈́ʹͷǤͲͶʹͲʹͳǤ ͶʹͲʹʹ ȋͳͲȌ ̈́ͳͺǤͷȋ̈́ʹ͵ǤͷȌͶʹͲʹͳ ͶʹͲʹʹǤ ̈́ʹǤͲ ͵ͳǡʹͲʹʹǡ ̈́͵Ǥʹ ̈́ʹͻǤ͵ ʹͲʹͳǤ ʹͲʹʹ ʹͲʹͳ ȋ͵Ȍ ̈́ǤͶ ȋ̈́ͻǤ Ȍ Ǧ ȋ͵ȌʹͲʹʹ̈́ͶǤǡ ȋͳͲȌ ̈́ͳͺǤͷȋ̈́ʹ͵ǤͷȌʹͲʹͳǤ CommitmentsandContractualObligations ǯǡ ͵ͳǡʹͲʹͷǤ ͵ͳǡʹͲʹͷǤǯ ʹʹ ͵ͲǡʹͲʹͺǤ ʹͲʹ͵Ǥ SummaryandAnalysisofQuarterlyData $thousands,exceptpershare amounts Threemonthsended Dec.31, 2022 Sep.30, 2022 Jun.30, 2022 Mar.31, 2022 Dec.31, 2021 Sep.30, 2021 Jun.30, 2021 Mar.31, 2021 ͲǡͲ͵ͻ ͳǡͺͳ Ͷʹǡͺͳ ͶͲǡͺ͵ͳ ͵͵ǡͻ͵ ʹǡ ͳǡͶͻ ʹͶǡͻ ȋͳȌ ͳ͵ǡ͵ ͳǡͳͻ ǡͲͲ ͺǡͶʹ ǡͳ͵ͷ ͷǡ͵ͻͶ ʹǡͶͺͻ ͶǡͺͷͶ ȋȌ ʹǡͲͶͲ ͻǡͷͳ ʹǡͶ ͵ǡͶ͵ͻ ʹǡͺ ʹǡͲͳͻ ȋͷͻȌ ͶͶ ȋȌǣ ͲǤͲͷ ͲǤͲʹ ͲǤͲͳ ͲǤͲͳ ͲǤͲͳ ͲǤͲͲ ͲǤͲͲ ͲǤͲͲ ʹͺǡͷͷʹ ʹͷǡͲͷͲ ʹͶͳǡͺʹ ʹ͵ͳǡͶͳͲ ʹʹǡͶͷ ʹͲͲǡ ͳͻ͵ǡͳʹ ʹͲʹǡͳͻͳ Ǧ Ͷ͵ǡͲͲͶ ͷʹǡͲͺ Ͷͻǡ͵ ͶǡͻͶ ͶͷǡͺͶ ʹͶǡͺͺ ʹͳǡͳͺ ʹͻǡʹͺͷ ̵ ʹͳͲǡ͵ͺͳ ͳͺͶǡͶͻͻ ͳͲǡͻ ͳǡͶͶͷ ͳ͵ǡʹͻ ͳͷͻǡͻͷ͵ ͳͷǡʹͶʹ ͳͷͺǡͳͲͺ ȋͳȌDzǦ dz Ǥ ǯ Ǥǯ Ǥ Ǥ Ǥ ǡǯ Ǥ ȁͳͺ ǯ Ǥ ǡ Ǥ ǡ Ǧ ǯǡ ǡ ǡ Ǥ ǡ ȋȌǡ ǡ ǡ ǡ DzdzǤ ǣ x ͶʹͲʹʹ Ͷǡ ȋͳȌ ȋͳͺȌ ǤǤȋͳͲȌ ǡ Ƭ ǤͶʹͲʹʹǡʹͳͲǡͲͲͲ ǡ ǡ Ǥ x ͵ʹͲʹʹ ǡ ȋͳȌ ȋͳȌǤǤȋͳͲȌ ǡ Ƭ Ǥ x ʹʹͲʹʹ ʹǡ ȋͳȌ ȋͳȌ ǡ ǡ ̈́ͳͲͺȀǡǡ̈́ǤͻͲȀ Ǥǡ ȋ͵ȌǦ ̈́ǤͶȋ̈́ͻǤȌǯ ǤǤ x ͳʹͲʹʹ ̈́ͳͲͷȀ Ǧ Ǧͳͻ Ǥ ǡ ǡ ǯ ǡ ȋȌǤ x ͶʹͲʹͳ ȋͳͲȌ ǡ ̈́ͳͺǤͷȋ̈́ʹ͵ǤͷȌǤ ǯ ǤǤǯ ȋͳͻȌ ȋȌ ȋͷȌǡȋͷȌȋʹȌ ǤǤ ȋͳͲȌ Ǥ x ͵ʹͲʹͳ ̈́ͺͲȀǤ ǡ ǯ Ǥ x ʹʹͲʹͳ ̈́ͲȀǤ ǡ ǯ Ǥ x ͳʹͲʹͳ ͶʹͲʹͲ Ǧͳͻ ʹͲʹͳǤ ǡ ̈́ͲȀǤͳʹͲʹͳǡʹǡʹͶͻǡͷͲͲ ǡ Ǥ ȋͳȌDzǦ dz Ǥ ȁͳͻ CriticalAccountingEstimatesandJudgments Ƭǯ Ǥ Ǥ ǯ Ǥ ǡ ǯ Ǥ Ǥ Ǥ Ǥ CEOandCFOCertifications ǡ ǡ ǡ Ǥ ǡ ǯ ͵ͳǡʹͲʹʹǡǤ ǯ Ǥ ǣ x ƬǢ x ǡǡ Ǣ x ǡǡ ǡ ǡ Ǥ RisksandUncertainties Ǥ ǡ ̵Ǥ Ƭǡ Dz dzǯ ǯǤǤ Ǥ ̵ Ǥ ̵ǡ Ǥ ǯ Ǥǯ ǡ ǡ ǡǡ ǡǡǡ Ǥ ǯǤ ǯ ǡ Ǥ MarketEventsandConditions ǡ ǡ Ϊǡ ǡ ǡ ǡ ǡ ǡǡ ǡ ǡ ǡǡ ȋ Ǧͳͻ Ȍǡ ǡ Ǧ ǡ Ǥ Ȁ ʹͲʹͲǡ ʹͲʹͳʹͲʹʹǡ ȁʹͲ Ǥ ǡ ʹͲʹʹǤ ǡ Ǥ Ǥ ǡǡ Ǥ ǡ ǡ Ǧ Ǥ ǡ Ǥ GeopoliticalEvents ̵ ǡ ǡǡǤ ǡ ǡ ǡ ǡ ǡ ǡ Ǥ ǡ ǡ ǡ ǡ ǡǦ ǤǡǦ ǡ ǡ Ǥǡǡǡ ǡ ǡǡ̵ Ǣ ̵ ǡ Ǣ ̵ ǡ Ǣ ǢǢ Ǥ InflationandCostManagement ̵ ǡ ǡǡ ̵ Ǥ ̵ ǡ ǡ ǡ ǡ ǡ ǡ ̵Ǥ ̵ ǡ ǡǡ ̵ Ǥ ̵ ǡ ǡ ǡ ǡ ǡ Ǥ̵ Ǥ RelianceonSkilledCrews ̵Ǥ ǡ ǡ Ǥ ǡ ǡ ̵ ̵ǡ ǡ Ǥ ǤǦ Ǥ ǡ ̵ Ǥ ǣȋȌ ǢȋȌ ǢȀȋȌ ȁʹͳ ǡ ǡ Ǥ ǡ Ǥ IndustryCompetition Ǥ Ǥ ǡ ǡ ǡ ǡ Ǥ InfectiousDiseases(includingCOVIDǦ19) ǡ ̵ ǡ ǡ ̵ Ǥ Ǧͳͻ Ǥ Ǧͳͻ ǡ Ǧͳͻ ǡ ǡ ǡ ̵ Ǥ Ǧͳͻ ʹͲʹͲǡ Ǧͳͻ ǡ ǡ ǡ ǡǡ Ǥ ǡ Ǧͳͻ Ǥ Ǧ ͳͻ ǡ Ǧͳͻǡ ǡǤ ǡ ǡ Ǥ ̵ǡ ǡ ǡǤ Ǧͳͻ ǡ Ǧͳͻ ǡ ǡ ̵ Ǥ Ǧͳͻ ǡ ǡ Ǥ ǡ ǡ ǡ Ǧͳͻ ǡ ǡ Ǥ Ǧͳͻ ǡ ǡ ǡ ǡ Ǥǡ Ǧͳͻ Ǥ ǡǡ ̵ ǡǤ PriceCompetitionandCyclicalNatureoftheOilfieldServicesBusiness Ǥ ̵ Ǥ ǡ ǣ x Ǣ x Ǣ x Ǣ x Ǣ x ǡǡ Ǣ x Ǣ x Ǥ ȁʹʹ ǡ ǡǡǡ Ǥ Ǥ Ǥ ǡ Ǥ ǡ Ǥ Ǥ Ǥ ǡ Ǥ Ǥ Ǥ ǡ ǡ ̵ǡ ǡ Ǥ OversupplyofOilfieldServicesEquipmentintheDrillingRigandServiceRigIndustry Ǧ ǡ Ǥ ǡ Ǥ ̵ ǡ ǡ Ǥ OperationalRisks ̵ ǡ ǡ ǡ ǡ ǡ ǡ ǡ ǡ ǡ ǡ Ǥ Ǥ ̵ Ǥ ǡ ǡ ǡǡ ǡǡ ǡǡǡǡ ǡǡ Ǥ Ǥ ǡǡ ̵ Ǥ Ǥ ̵ Ǥ MergerandAcquisitionActivity ̵ Ǥ ǡ ǡ Ǥ OilfieldServicesIndustryRisks ǡ ǡ Ǥ̵ ǡ ǡ ǡ ǡǤ ǡ ǡ ǡ Ǥ ǡ Ǥ ̵ ǡ Ǥ ȁʹ͵ ǡ ǡ ǡ Ǥ Ǣǡ ǡ Ǥ ReputationalRiskAssociatedwiththeCompany'sOperations ̵ǡ ǡ ǡ̵ ǡ ǡ ǡǤ ̵ Ǥ ǡ ǡ ǡ ǡ ǡǡ ǡ ǡȀ Ȁ Ǥ̵ ǡ ǡ Ǥǡ̵ ǡ ̵Ǥ ǡǡ Ǥ ̵Ǥ Ǥǡǡǡ ǡǡǡ ̵Ǥ̵ ǡ ̵ ǡ ǡ ̵ Ǥ ChangingInvestorSentiment ǡ ǡ ǡ ǡ ̵ Ǥ ǡǡ ǡ Ǥ ǡ ǡ ǡ Ǥ ǡǤ ǡǡ ǡǤ ǡǡ̵ ǡ ǡ ̵ ̵ǡ Ǥǡ ǡ ǡ ̵ Ǥ LeverageandRestrictiveCovenants Ǥ ǣȋȌ̵ ǡ ǢȋȌ̵ ̵ǡ ǢȋȌ ̵ǡ Ǣ ȋȌ Ǥ ̵ǡ ǡ Ǥ Ǥ ǡ ǡ Ǣǡ ǡǢ ǡǡ Ǥ ǡ ǡ ȁʹͶ Ǥ̵ ǡ Ǥ ǡ ǡ ǡ ǡ Ǥ ǡ ̵ Ǧ Ǧ Ǥ ̵ ǡ Ǥ ǡ Ǥ ǡ ǡǤ LiquidityRisk Ǥ̵ ǡ ǡ ǡǡ ̵ Ǥ ̵ ǡ ǡ ǡ ǡ ǡ Ǥ GovernmentRegulation ǡ ǡǡ ǡ ǡ ǡ ǡ ǡ ̵Ǥ ǡ ǯǤ ǡ ǡ ǡ ǡ Ǥǡ ǡǡ Ǥ SeasonalNatureofCWC'sBusiness ̵ Ǥ Ǥ ǡ̵ Ǥ̶̶ ̵ Ǥ ǡ ǤǦ ǤǡǦ ̵ ǡ ǡǤ DependenceonKeyPersonnel ̵ ǡ ǡ ǡ Ǥ Ǥǡ̵ ̵ ǡǤ Ǥ Ǥ ȁʹͷ ClimateChange Ǥ ǡ ǡ ǡ ǡ Ǥ ǡ ǡǡ ȋ̶GHG̶Ȍǡ ǡǤ ǡ ǡ Ǥ ǡ ʹͲʹͳ ǡ ǡ̵ ̵ Ǥ ǡ Ǥ Transitionrisks ǡ ǡ Ǧ Ǥ ǡ Ǥ ǡ ǡ Ǧ Ǥ ǡ ǡ ̵ ǡǡǦǡ ǡǡ ǡ ̵ Ǥ Ǥǡǡǡ ǡ ǡ ǡǡǤ ǡ Ǥ ǡ Ǥ Ǧ ǡ ǡ ǡ ǡ ǡ ǡǡǡ ǡ ǡ ȋ Ȍ Ǧ ǡǡ Ǧ Ǥ ǡ Ǥ ̵ Ǧ ǡ ̵ǡ ̵ ̵ Ǥ ǡ Ǧ Ǥ ǡ ǡ ǡ ǡ Ǥ ǡ ͷͳǦͳͲ Ȃ Ǧ ǡ Ǧ Ǥ ǡ ǡ ǡ ǡ ǡ ǡ ǡ ǡ ǡ Ǥ ȁʹ Physicalrisks ̵ ǡ Ǧ ǡ ǡ Ǥ ǡǡǦ Ǥ ǡǡǡ ̵ ǡ Ǥ Ǥ PoliticalUncertainty ǡ Ǥ ʹͲͳǤǤ ǡ Ǧ ȋȌ ǡ ǡǡ ǤǤ Ǥ ǡ Ǥ ǤǤ Ǥ ʹͲǡʹͲʹͳǡǤ ͶǤ ǡ Ǧ Ǥǡ ʹͲǡʹͲʹͳǡ ǡ Ǥ ǡ Ǥ ǡ Ǥ ʹͷǡʹͲʹͳǡ Ǧ Ǧ ǤǤ Ǥ ǦǤǤ Ǥ ǡ ǤǤǡǡ Ǥ ǡ ǡǡ ǡ ǡ Ǥ ǡ ̵ ǡ Ǧ Ǥ Ǧ Ǧ ǡǤ Ǥ ǡ ǡ ǡ ̵ ǡ ̵ ǡ ǡ ǡ ǡ Ǥ ʹͲʹͳǡǡ Ǥ ʹͲʹʹǡ Ǧ Ǥ ǤǦ ǡ Ǥ ǡ Ǥ ʹͲͳͻ Ǥ ʹͲʹͲǡ ̵ ǡ Ǥ ǡ ǡ Ǥ ȁʹ ǯͳͺǡʹͲʹʹǡ ͳͳǡʹͲʹʹǤǡ ͳǣTheAlbertaSovereigntyWithinaUnited Canada Act ȋ Sovereignty ActȌǤ ͺǡ ʹͲʹʹ ͳͷǡʹͲʹʹǤ ǡǡ ǡ ǡ ̶̶ǯ Ǥ ǡ Ǥ ǡ ǡ ǡ ǡ Ǥ ǡ ǯ Ǥ Ǧ ʹͲͳͻǡǤ ʹͲǡ ʹͲʹͳ Ǧ Ǥ ǡǡ ǡǤ ǡ Ǥ ǡ ǡ ǡ ǡ ǡ ǡ ǡ Ǥ NonǦGovernmentalOrganizationsandEcoǦTerrorismRisks ǡǡ Ǥ ǡ ǡǡ ȋ ȌǦǡ ǡ ǡ ǡ ǡ ǡǡ ǡ ǡȀ ǡ ǡ ǦǤ Ǧ Ǥ ǡ̵ Ǥ ̵ ̵ǡ ǡ Ǥ ǡǡ Ǥ EquipmentandTechnologyRisks ǡ ǡǤ̵ Ǥ ǡ Ǧ Ǥ Ǥ ̵ǡ ǡ Ǥ Ǥ ǡ ǡ Ǣ ǡ Ǥ ǡ ̵ Ǥǡ ǡ ȁʹͺ ǡ ǡ Ǥ SignificantShareholder ǤǤȋDzdzȌǡͷͷǤͺΨ̵ Ǥ ǡǡ ǡ ǡ ǡ ̵ Ǥ̵ ǡ ̵Ǥ ǡ ǡ ̵ Ǥ DrillingRigandServiceRigConstructionRisks ǡ ǡǤ ǡǡ ǡ ǡǡ Ǣ Ǣǡ ǡ Ǥ ǡ ǡ ǡ ǡ Ǥ ǡ Ǥ EquipmentandPartsAvailability ̵ Ǥ Ǥ Ǥ Ǥ DependenceonSuppliers ǡ ǡǡǡ Ǥ ǡǡ ̵ Ǥ ǡǡ Ǥ ̵ ǡ Ǥ Ǥ Ǥ ǡ ǡ Ǥ Ǥ ǡ ǡ ǡ ̵ ̵ ǡ ǡ Ǥ RisksofInterruption,CasualtyLossesandInsurance ̵ǡ ǡ ǡ ǡ ǡǡǡ ǡǡ Ǥ ǡ ǡǡ ǡ Ǥ ǡ ǡ Ǥ Ǥ ǡ ȁʹͻ Ǥ ǡ ǡ Ǥ ǡ ǡǡǡǤ ǡ Ǥ ̵ ǡ ǡǡ Ȁ Ǥ ǡ Ǥ Ǥ ǡ Ǧǡ ǡ Ǥ ǡ̵ Ǥ FutureCapitalRequirementsandFutureSalesofCommonSharesbyCWC Ǥ ǡǡǤ ǡ ̵ Ǥ̵ Ǥ ǡ Ǥǡ ̵ ǡ Ǥ CapitalandFinancialMarkets ǡ ǡǡǡ̵ ǡ ǡ ǡ ̵ Ǥ ̵ ǡǡ Ǥ EnvironmentalProtection ǡ ǡ ǡǡǡ ̵Ǥǯ Ǥ̵ ǡ Ǧ Ǥ ǡ Ǥ Ǥ ǡ ǡ Ǥ Ǥ ǡ ǡ Ǥ ǡǤ ǡ ̵Ǥ Ǧ Ǥ Ǥ ǡ ̵ Ǥ ǡ Ǥ Ǣǡ Ǥ ȁ͵Ͳ ThirdǦPartyCreditRisk Ǧ Ǥ ǡ Ǥ FailuretoRealizeAnticipatedBenefitsofAcquisitions Ǥ ǡ Ǥ ǡ ǡ̵ Ǥ ManagementofGrowth Ǧ Ǥ ǡǤ ǡ ̵ǡ ǡ Ǥ CWCMayMakeDispositionsofBusinessesandAssetsintheOrdinaryCourseofBusiness Ǥ ǡǦ ǡ Ǥ Ǧ ǡ Ǧ ǡǡ Ǥ TaxMatters Ǥ ǡ Ǥ ǡǡ ǡǡ ǡ ǡ ǡ Ǥ ǡ Ǥ ǡ ̵Ǥ ǡǡ ǡǡ ǡ ̵Ǥ ǡ ̵ Ǥ Ǥ ǡ̵ Ǥ ǡ Ǥ Ǥ ǡ ȋ ̶TaxAgencies̶Ȍ ȋȌǤ VulnerabilitytoMarketChanges ǡ ǡ ̵ Ǥǡ ǡǡ Ǥ AlternativestoandChangingDemandforPetroleumProducts ǡ ǡǡ ǡ Ǥ ǡ ̵ǡ ǡ Ǥ ȁ͵ͳ InterestRateRisk Ǥ ǡ Ǥ ʹͲʹ͵ ǡ Ǥ ConflictsofInterest Ȁ ǡ Ǥ ǡ ǡ Ǥ LegalandRegulatoryProceedings Ǥ Ǥ IndigenousLandandRightsClaims ǯ ǡǯ ǡ ǡ ̵Ǥ ǡǤ Ǥ ǡ ǡ Ǥ ǡ ǡ Ǥ Ǥ ̵ǡ ǡǡǡǡ ǡ Ǥ ǡ ̵ Ǥ ǡ Ǥ ǡ Ǥ Ǧ Ǥ ǡ Ǥ ǡ ǡ ǡ ǡǤ ǯ Ǣ ǡ Ǥ IntellectualPropertyLitigation ǡ ̵ǡ ǡǡ ǡ Ǥ̵ ǡ ǡ ̵Ǥ ǡǡǡǣȋȌ Ȁ ǡ ǡ ǢȋȌ Ǧ Ǣ ȋ Ȍ ǢȋȌ Ǥ ǡ ǡ ȁ͵ʹ Ǥ ǡ ̵ Ǥ BreachofConfidentiality ǡ ǡǤ ǡ Ǥ̵ ǡ Ǥ ǡ ǡǡ ǡ ǡǡ Ǥ CyberǦSecurityThreatsandRelianceonInformationTechnology ̵ Ǥ ̵ Ǥ Ǧ ǡ ǡ ǡ ǡ Ǥ ǡǡǡ ǡ ǡ Ǥ ǡ ǡ Ǥ ǡ Ǥ ǡ ǡ ̵ Ǥ ǡǡ Ǥǡ ǡ Ǥǡǡǡ Ǥ ǡ ǡ ǡǡǡ Ǧ ǡ Ǧǡ ǡ ̵ Ǥ ǡ ǡ Ǥ ǡ ǡ ǡ ǡ ȋ Ȍ ǡ Ǥ ̵ ̵ Ǥ Ǧ Ǣǡ Ǧ Ǥ ǡ ǡ ǡǤ ǡ ̵ǡ Ǥ ForwardǦLookingInformationmayProveInaccurate ǯ Ǧ ǤǡǦǡ ǡ ǡ Ǧ ǡ Ǥ ȁ͵͵ ForwardǦLookingInformation ThisMD&AcontainscertainforwardǦlookinginformationandstatements(collectively,"forwardǦlookingstatements")within themeaningofapplicableCanadiansecuritieslegislation.CertainstatementscontainedinthisMD&A,includingthosecontained inthesectiontitled“Outlook”andincludingstatementswhichmaycontainsuchwordsas“anticipate”,“could”,“continue”, “should”,“seek”,“may”,“intend”,“likely”,“plan”,“estimate”,“believe”,“expect”,“will”,“objective”,“ongoing”,“project”andsimilar expressionsareintendedtoidentifyforwardǦlookingstatements.Inparticular,thisMD&AcontainsforwardǦlookingstatements includingmanagement’sassessmentoffutureplansandoperations,plannedlevelsofcapitalexpenditures,expectationsasto industry andCompany activity levels invarious areas, expectationson the sustainabilityof future cashflowand earnings, expectationswithrespecttocrudeoilandnaturalgasprices,expectationsregardingthelevelandtypeofdrillingandproduction andrelateddrillingandwellservicesactivityintheWCSBandU.S.basins,expectationsregardingenteringintolongtermdrilling contractsandexpandingourcustomerbase,andexpectationsregardingthebusiness,operations,revenueanddebtlevelsofthe Companyinadditiontogeneraleconomicconditionsincludingindustrylabourshortages,inflationarypressuresandarising interest rate environment and the impact of those conditions on the Company. Although the Company believes that the expectationsandassumptionsonwhichsuchforwardǦlookingstatementsarebasedarereasonable,unduerelianceshouldnot beplacedontheforwardǦlookingstatementsbecausetheCompanycangivenoassurancesthattheywillprovetobecorrect. SinceforwardǦlookingstatementsaddressfutureeventsandconditions,bytheirverynaturetheyinvolveinherentrisksand uncertainties.FactorsthatcouldcauseactualresultstovaryfromforwardǦlookingstatementsormayaffecttheoperations, performance,developmentandresultsofCWC'sbusinessesinclude,amongotherthings:risksandassumptionsassociatedwith operations,suchasCWC'sabilitytosuccessfullyimplementitsstrategicinitiativesandachieveexpectedbenefitstherefrom; assumptions concerning operational reliability; the ability to access sufficient capital from internal and external sources includingdebtandequitycapital;risksinherentinCWC'sCanadianandU.S.operations;CWC'sabilitytogeneratesufficientcash flowfromoperationstomeetitscurrentandfutureobligations;risksassociatedwiththefailuretofinalizeformalagreements withcounterpartiesincertaincircumstances;CWC'sabilitytomakecapitalinvestmentsandtheamountsofcapitalinvestments; increasesinmaintenance,operatingorfinancingcosts;therealizationoftheanticipatedbenefitsoftransactions;thepossibility that CWC is unable to identify or consummate any acceptable strategic alternatives; the availability and price of labour, equipmentandconstructionmaterials;thestatus,creditriskandcontinuedexistenceofcustomershavingcontractswithCWC anditsaffiliates;availabilityofenergycommodities;volatilityofandassumptionsregardingpricesofenergycommodities; competitivefactors,includingcompetitionfromthirdpartiesintheareasinwhichCWCoperatesorintendstooperate,pricing pressuresandsupplyanddemandinthedrillingandservicerigbusiness;fluctuationsincurrencyandinterestrates;inflation; risks of war (including the war in Ukraine), hostilities, civil insurrection, pandemics (including COVIDǦ19), instability and politicalandeconomicconditionsinoraffectingjurisdictionsinwhichCWCanditsaffiliatesoperate;severeweatherconditions and risks related to climate change; terrorist threats; risks associated with technology; changes in laws and regulations, includingenvironmental,regulatoryandtaxationlaws,andtheinterpretationofsuchchangestoCWC'sbusiness;therisks associatedwithexistingandpotentialorthreatenedfuturelawsuits,legalproceedingsandregulatoryactionsagainstCWCand itsaffiliates;availabilityofadequatelevelsofinsurance;difficultyinobtainingnecessaryregulatoryapprovalsorlandaccess rightsandmaintenanceofsupportofsuchapprovalsandrights;theeffectsandimpactsoftheCOVIDǦ19pandemiconCWC's businessandgeneraleconomicandbusinessconditionsandmarkets;andsuchotherrisksanduncertaintiesdescribedinthe AnnualMD&Aunderthesectionentitled"RiskFactors"andfromtimetotimeinCWC'sreportsandfilingswiththeCanadian securitiesauthorities.Theimpactofanyoneassumption,risk,uncertaintyorotherfactoronaforwardǦlookingstatementcannot be determined with certainty, as these are interdependent and CWC’s future course of action depends on management’s assessmentofallinformationavailableattherelevanttime.Youcanfindadiscussionofthoserisksanduncertaintiesinthe AnnualMD&Aunderthesectionentitled"RiskFactors"andinCWC’sothersecuritiesfilingsatwww.sedar.com. Readersarecautionedthattheforegoinglistofassumptions,risks,uncertaintiesandfactorsisnotexhaustive.Seealsothesection entitled"RisksandUncertainties"forfurtherriskfactors.TheforwardǦlookingstatementscontainedinthisMD&Aaremadeas ofthedateofthisMD&Aand,excepttotheextentexpresslyrequiredbyapplicablesecuritieslawsandregulations,CWCassumes noobligationtoupdateorreviseforwardǦlookingstatementsmadehereinorotherwise,whetherasaresultofnewinformation, future events, or otherwise. The forwardǦlooking statements contained in this MD&A and all subsequent forwardǦlooking statements,whetherwrittenororal,attributabletoCWCorpersonsactingonCWC’sbehalfareexpresslyqualifiedintheir entiretybythesecautionarystatements.AnyforwardǦlookingstatementsmadepreviouslymaybeinaccuratenow. ȁ͵Ͷ NonǦGAAPandOtherFinancialMeasures ȋͳȌ ȋ ǡ ǡ ǡǡǡ ǡ ǡ ǦǦ Ȍ Ǥ ǡ ǯ ǡ ǡ ǡ ǡ Ǥ ǡǡ ȋȌ ǯ Ǥǯ ǡ Ǥ Ǥ Ǥ ȋʹȌ ȋȌ ǯ Ǥ Ǥ ǡ Ǥ Ǧ Ǥ 2022 2021 2022 2021 2020 NONǦGAAPMEASURES ǣ ȋȌ ʹǡͲͶͲ ʹǡͺ ͶͳǡͲ Ͷǡͷ͵ ȋʹͶǡͶͻͲȌ ǣ ͵ͷ ʹ͵ ͳǡͲͶͻ ͺʹ ͳǡͲͻͶ ͺͷͷ ʹͻͶ ʹǡͷͷͺ ͳǡͲͺ ʹǡͳ͵ͷ ͵ǡͲ͵͵ ʹǡͶ ͳʹǡͳʹ ͳͲǡͷ͵ ͳͳǡͲͲͳ ȋȌ ȋʹ͵ǡʹͳȌ Ǧ ȋʹ͵ǡʹͳȌ ͳǡʹͻ ʹͷǡͶͷͳ ȋ Ȍ ȋʹȌ ȋʹͲͺȌ ͷͲ ȋʹͷͳȌ ͺͶͶ ȋ Ȍ ǡͶͲ ͳͶ ͳͳǡͳ͵ ͺʹ͵ ȋͶǡͻ͵Ȍ AdjustedEBITDAȋͳȌ ͳ͵ǡ͵ ǡͳ͵ͷ Ͷͷǡͻ͵ͳ ͳͺǡͺʹ ͳͳǡͲͻͺ AdjustedEBITDApershare–basicanddilutedȋͳȌ ̈́ͲǤͲ͵ ̈́ͲǤͲͳ ̈́ͲǤͲͻ ̈́ͲǤͲͶ ̈́ͲǤͲʹ AdjustedEBITDAmargin(AdjustedEBITDA/Revenue)ȋͳȌ ʹ͵Ψ ͳͺΨ ʹʹΨ ͳͺΨ ͳΨ Ǧ ͷͳͶǡͲͺʹǡ͵ͶͶ ͷͲǡͲͳͳǡͷͺͲ ͷͳͳǡʹͺͶǡͲͺ͵ ͷͲͷǡ͵͵ǡͻͺ ͷͲǡͳͲͶǡͲͲͶ Ǧ ͷ͵ͳǡʹͲǡʹͷͷ ͷͳ͵ǡͺǡ͵ͺͻ ͷʹͺǡͺʹͳǡͻͻͶ ͷͳ͵ǡʹͲ͵ǡͺ ͷͲǡͳͲͶǡͲͲͶ ǣ ͲǡͲ͵ͻ ͵͵ǡͻ͵ ʹͲͷǡ͵͵ʹ ͳͲʹǡ͵ͷ ǡͺͻ͵ ǣ ͵ͻǡͷͷ ʹʹǡͳͺ ͳ͵ǡͻͶ ʹǡʹͺͺ ͶͻǡͳͶͻ GrossmarginȋʹȌ ʹͲǡͶͶ ͳͳǡͷʹͷ ͺǡ͵ͺͷ ͵Ͳǡ͵Ͷ ͳͺǡͶͶ GrossmarginpercentageȋʹȌ ͵ͶΨ ͵ͶΨ ͵͵Ψ ͵ͲΨ ʹͺΨ $thousands,exceptshares,pershareamountsand margins Threemonthsended December31, Twelvemonthsended December31, $thousands December31,2022 December31,2021 December31,2020 ȋ Ȍǣ Ͷͻǡͻʹͷ ʹǡͻͳͳ ͳͺǡ͵ʹ͵ ǣ ȋͳͶǡͺͶͺȌ ȋͻǡͲͻȌ ȋǡͲͲͶȌ Workingcapital(excludingdebt)ȋ͵Ȍ ͵ͷǡͻͶʹ ͳͺǡͻ ͳʹǡͲͻ Workingcapital(excludingdebt)ratioȋ͵Ȍ ͵Ǥǣͳ ͵Ǥͳǣͳ ʹǤͻǣͳ ǣ Ǧ Ͷʹǡͳ͵ͻ ͶͷǡͲͺ͵ ʹͻǡͶͺͳ ǣ ȋͶͻǡͻʹͷȌ ȋʹǡͻͳͳȌ ȋͳͺǡ͵ʹ͵Ȍ ǣ ͳͶǡͺͶͺ ͻǡͲͻ ǡͲͲͶ Netdebt(4) ǡͲʹ ʹǡͺͺͳ ͳͺǡͳʹ ȁ͵ͷ ȋ͵Ȍ ȋ Ȍ ǦǤ ȋ ȌǯǤ ȋ Ȍ Ǥ ȋ Ȍ ǦǤ ȋͶȌ Ǧ Ǥ Ǥ ǯǤ CWCENERGYSERVICESCORP. ͵ͳǡʹͲʹʹʹͲʹͳ ȁ͵ Ernst & Young LLP Calgary City Centre 2200 215 2nd Street SW Calgary AB T2P 1M4 Tel: +1 403 290 4100 Fax: +1 403 290 4165 ey.com INDEPENDENT AUDITOR’S REPORT To the shareholders of CWC Energy Services Corp. Opinion We have audited the consolidated financial statements of CWC Energy Services Corp. (the “Company”) which comprise the consolidated statements of financial position as at December 31, 2022 and 2021, and the consolidated statements of comprehensive income, consolidated statements of changes in equity and consolidated statements of cash flows for the years then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies. In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Company as at December 31, 2022 and 2021, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with International Financial Reporting Standards (“IFRS”). Basis for opinion We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the consolidated financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the consolidated financial statements in Canada, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Key audit matters Key audit matters are those matters that, in our professional judgment, were of most significance in the audit of the consolidated financial statements of the current period. These matters were addressed in the context of the audit of the consolidated financial statements as a whole, and in forming the auditor’s opinion thereon, and we do not provide a separate opinion on these matters. For each matter below, our description of how our audit addressed the matter is provided in that context. ȁ͵ Page 2 We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the consolidated financial statements section of our report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the consolidated financial statements. The results of our audit procedures, including the procedures performed to address the matters below, provide the basis for our audit opinion on the accompanying consolidated financial statements. Key audit matter How our audit addressed the key audit matter Impairment reversal recorded pertaining to Contract Drilling cash generating unit. As of December 31, 2022, management assessed that indicators of impairment reversal existed with respect to the Company’s Contract Drilling cash generating unit (“CGU”). Refer to Note 3 Significant Accounting Policies of the consolidated financial statements for a description of the Company's accounting policy with respect to impairment of non-financial assets. The Company’s balance sheet includes $237.6 million in property, plant and equipment. Management recorded an impairment reversal on the Contract Drilling CGU of $22.9 million as of and for the year ended December 31, 2022, based on the recoverable amount of the CGU exceeding it carrying amount. The recoverable amount of a CGU is the greater of its value-in-use and its fair value less costs of disposal. The Company discloses significant judgments, estimates and assumptions and the result of their analysis in respect of impairment in Notes 2 and 5 to the consolidated financial statements. Auditing the Company’s estimated recoverable amount was complex due to the subjective nature of the various management inputs and assumptions and the significant effect changes in these would have on the recoverable amount. Additionally, the evaluation of this estimate required specialized skills and knowledge. The primary inputs noted in value in use were the discount rate and estimated cash flows arising from the Company’s future drilling activities. To test the estimated recoverable amount of the Contract Drilling CGU, we performed the following procedures, among others: x With the assistance of our valuation specialists, we evaluated the Company's model, valuation methodology, and discount rate. We assessed the selection and application of the discount rate by evaluating the inputs and mathematical accuracy of the calculation. x We assessed the accuracy of management's forecasting by comparing management's past projections to actual performance. x We assessed the cash flow projections through comparison to historical results, assessed reasonability of the cashflows (Revenue, EBITDA, corporate expenses, capital expenditure, working capital), comparing to third-party sources. x We performed sensitivity analysis on EBITDA to evaluate any resulting changes to the recoverable amount. x We assessed the adequacy of the Company’s disclosure around impairment and impairment reversal as included in Note 5 to the consolidated financial statements. ȁ͵ͺ Page 3 Other information Management is responsible for the other information. The other information comprises: x Management’s Discussion and Analysis x The information, other than the consolidated financial statements and our auditor’s report thereon, in the Annual Report Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the consolidated financial statements, our responsibility is to read the other information, and in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. We obtained Management’s Discussion & Analysis prior to the date of this auditor’s report. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact in this auditor’s report. We have nothing to report in this regard. The Annual Report is expected to be made available to us after the date of the auditor’s report. If based on the work we will perform on this other information, we conclude there is a material misstatement of other information, we are required to report that fact to those charged with governance. Responsibilities of management and those charged with governance for the consolidated financial statements Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with IFRS, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. In preparing the consolidated financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Company’s financial reporting process. Auditor’s responsibilities for the audit of the consolidated financial statements Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements. ȁ͵ͻ Page 4 As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: x Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. x Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control. x Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. x Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern. x Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. The engagement partner on the audit resulting in this independent auditor’s report is Robert Troy Jubenvill. Calgary, Canada March 1, 2023 Page | 40 ȁͶͳ CWCENERGYSERVICESCORP. CONSOLIDATEDSTATEMENTSOFFINANCIALPOSITION ͵ͳǡʹͲʹʹ ͵ͳǡʹͲʹͳ Commitmentsandcontingencies(note13) Seeaccompanyingnotestotheconsolidatedfinancialstatements ǣ (signed)“GaryBentham” (signed)“JimReid” ǡ ǡ StatedinthousandsofCanadiandollars ASSETS $ 104 $ ͻͲ ǡͳͷ 45,946 ʹǡʹʹ 3,875 ͳǡͷͻͶ 49,925 ʹǡͻͳͳ ͷǡ 237,627 ͳͻͺǡ͵Ͷ $ 287,552 $ ʹʹǡͶͷ LIABILITIES 13,983 ͺǡͻͶͷ Ǧ 865 Ͷ 14,848 ͻǡͲͻ 20,184 ͺǡͷͺͶ Ǧ 42,139 ͶͷǡͲͺ͵ 77,171 ͵ǡ͵ SHAREHOLDERS'EQUITY ͺ 256,950 ʹͷͷǡͲ 20,286 ʹͲǡʹʹ 3,614 Ͳ (70,469) ȋͳͳʹǡͳʹͻȌ 210,381 ͳ͵ǡʹͻ $ 287,552 $ ʹʹǡͶͷ December31, ͵ͳǡ 2022 ʹͲʹͳ ȁͶʹ CWCENERGYSERVICESCORP. CONSOLIDATEDSTATEMENTSOFCOMPREHENSIVEINCOME ͵ͳǡʹͲʹʹʹͲʹͳ Seeaccompanyingnotestotheconsolidatedfinancialstatements. Revenueandotherincome ͳͲ $ 205,332 $ ͳͲʹǡ͵ͷ ͳͲ Ǧ ͵ǡͺ͵ͷ 205,332 ͳͲǡͶͲ Expenses ͳͲ ͳͳ 136,947 ʹǡʹͺͺ ͳͳ 22,454 ͳͷǡ͵ͳͲ ͺȋ ȌȋȌ 1,049 ͺʹ ǡͳʹ 2,558 ͳǡͲͺ ͷ 12,162 ͳͲǡͷ͵ ȋȌ 50 ȋʹͷͳȌ ȋȌ ͷ (23,261) ͳǡʹͻ 151,959 ͳͲͳǡͲͶ Incomebeforeincometaxes 53,373 ͷǡ͵ͻ Incometaxes 114 Ǧ 11,599 ͺʹ͵ Incometaxexpense 11,713 ͺʹ͵ Netincome $ 41,660 $ Ͷǡͷ͵ Othercomprehensiveincome 3,544 ʹͶ Comprehensiveincome $ 45,204 $ Ͷǡͺ͵ Netincomepershare ͺ $ 0.08 $ ͲǤͲͳ ǣ StatedinthousandsofCanadiandollarsexceptpershare 2022 2021 ȁͶ͵ CWCENERGYSERVICESCORP. CONSOLIDATEDSTATEMENTSOFCHANGESINEQUITY ͵ͳǡʹͲʹʹʹͲʹͳ Seeaccompanyingnotestotheconsolidatedfinancialstatements. StatedinthousandsofCanadiandollars exceptshareamounts Numberof Shares Balance–January1,2021 ͷͲͷǡʹͲǡͻͳ ̈́ ʹͷͷǡͶͺ ̈́ ͳͻǡ͵ͻͷ ̈́ ȋͳͻͶȌ ̈́ ȋͳͳǡͲʹȌ ̈́ ͳͷǡͻ Ǧ Ǧ Ǧ Ǧ Ͷǡͷ͵ Ͷǡͷ͵ ͺȋ ȌȋȌ Ǧ Ǧ ͺʹ Ǧ Ǧ ͺʹ ͺȋȌ ͷǡͲͲǡͷ ʹͷ ȋʹͷȌ Ǧ Ǧ Ǧ ȋʹǡʹͶͻǡͷͲͲȌ ȋͳǡͳ͵Ȍ ͺͳͲ Ǧ Ǧ ȋ͵ʹȌ Ǧ Ǧ Ǧ ʹͶ Ǧ ʹͶ Balance–December31,2021 ͷͲͻǡͲʹǡͲͻͳ ̈́ ʹͷͷǡͲ ̈́ ʹͲǡʹʹ ̈́ Ͳ ̈́ ȋͳͳʹǡͳʹͻȌ ̈́ ͳ͵ǡʹͻ Balance–January1,2022 509,072,091 $ 255,066 $ 20,262 $ 70 $ (112,129) $ 163,269 Ǧ Ǧ Ǧ Ǧ 41,660 41,660 ͺȋ ȌȋȌ Ǧ Ǧ 1,049 Ǧ Ǧ 1,049 ͺȋ Ȍ 4,615,000 1,424 (519) Ǧ Ǧ 905 ͺȋȌ 4,607,636 565 (565) Ǧ Ǧ Ǧ ͺȋȌ (210,000) (105) 59 Ǧ Ǧ (46) Ǧ Ǧ Ǧ 3,544 Ǧ 3,544 Balance–December31,2022 518,084,727 $ 256,950 $ 20,286 $ 3,614 $ (70,469) $ 210,381 Share Capital Contributed Surplus Accumulated Other Comprehensive Income(Loss) Deficit TotalEquity ȁͶͶ CWCENERGYSERVICESCORP. CONSOLIDATEDSTATEMENTSOFCASHFLOWS ͵ͳǡʹͲʹʹʹͲʹͳ Seeaccompanyingnotestotheconsolidatedfinancialstatements. Operatingactivities: $ 41,660 $ Ͷǡͷ͵ ǣ ͺ 1,049 ͺʹ ͳʹ 2,558 ͳǡͲͺ 362 ͵ʹ ͷ 12,162 ͳͲǡͷ͵ ȋȌ ͷ (23,261) ͳǡʹͻ ȋȌ ͷ 50 ȋʹͷͳȌ 585 ͷͳͷ 11,599 ͺʹ͵ 46,764 ͳͻǡͶͻ Ǧ ͻ (16,962) ȋǡͻ͵Ȍ 29,802 ͳʹǡ Investingactivities: ͷ (25,358) ȋʹͺǡͺ͵Ȍ 1,154 ʹǡͷͳ (24,204) ȋʹǡʹͷȌ Financingactivities: ȋȌ Ǧ (3,314) ͳͷǡͷʹ͵ ͳʹ (2,663) ȋͳǡʹͳʹȌ (260) ȋ͵͵ͶȌ (206) ȋʹ͵Ȍ ͺȋ Ȍ 905 Ǧ ͺȋȌ (46) ȋ͵ʹȌ (5,584) ͳ͵ǡͶͳ͵ 14 ȋȌ ǡ 90 ͳ ǡ $ 104 $ ͻͲ StatedinthousandsofCanadiandollarsexceptpershareamounts 2022 2021 CWCENERGYSERVICESCORP. 127(6727+(&2162/,'$7('),1$1&,$/67$7(0(176 )RUWKH\HDUVHQGHG'HFHPEHUDQG Stated in thousands of Canadian dollars except share and per share amounts ȁͶͷ 1. Reportingentity ǤȋDzdzDzdzȌ ȋȌǤǯ ʹͻͳͲǡͲͷȂͷǡǡǡ Ǥ ȋDzdzȌ ǡ ǡǡǦ ȋDz dzȌǡ Ǥ ǯ Ǥ̵ Ǥǯ ǯ ǤǤ ǡ ǯǤ Ǥ ǡ Ǥ 2. Basisofpresentation ȋȌ ȋDz dzȌǤ Ǥ ͳǡʹͲʹ͵Ǥ ȋȌ Ǥ ȋ Ȍ ǡ ǯ Ǥ Ǥ ȋȌ Ǥ ǯǤ ǡ ǯ Ǥ Ǥ Ǥ Ǥ Ǥ ǡ ǡ ǣ Ǧ ǡ ȋ ǦDz dzȌǤ Ǥ ǡ ǡ Ǥ ǡ CWCENERGYSERVICESCORP. 127(6727+(&2162/,'$7('),1$1&,$/67$7(0(176 )RUWKH\HDUVHQGHG'HFHPEHUDQG Stated in thousands of Canadian dollars except share and per share amounts ȁͶ ǡǤ ȋDz dzȌȋDz dzȌǤ ǡ Ǥǡ ǯ ǡ Ǥ ǯ Ǥ ǡ Ǥ Ǥǡ ǡ Ǥ ǡ Ǥ ǡ ǡ ǯǡ ǯ ǯǤ ǡ ǡ ǯ Ǥ Ǥ Ǥǡ Ǥ Ǥ Ǥ Ǥǯ ǡ Ǥ ȋȌǤ 3. Significantaccountingpolicies Ǥ ȋȌ Ǥ Ǥ Ǧ ǣ x Ǣ x Ǥ Ǥ Ǥ Ǥ ǡ ȋ ȌǤ CWCENERGYSERVICESCORP. 127(6727+(&2162/,'$7('),1$1&,$/67$7(0(176 )RUWKH\HDUVHQGHG'HFHPEHUDQG Stated in thousands of Canadian dollars except share and per share amounts ȁͶ ȋ Ȍ Ǥ ǡ ǡ Ǥ ǯǣ ǦͳͲΨ ʹͷ ǦʹͲΨ ʹͷ Ȃ ǦͳͲΨ ʹͷ Ǧ ʹͶǡͲͲͲ ǦͳͷΨ ʹͳͲ Ǧ ͵ͷ Ǥ Ǥ Ǥ ǡ Ǥ ȋȌ Ǧ Ǧ Ǥ ǡ Ǥ Ǥ ǡ Ǥ ǡȋ Ȍ Ǥ Ǥ ǡ Ǧ Ǥ ǡ Ǥ Ǥ ǡǡ ȋ Ȍǡ ȋ ȌǦǤ ǯ ǡ ǡ Ǥ ȋ Ȍ Ǥ Ǥ Ǥ Ǥ CWCENERGYSERVICESCORP. 127(6727+(&2162/,'$7('),1$1&,$/67$7(0(176 )RUWKH\HDUVHQGHG'HFHPEHUDQG Stated in thousands of Canadian dollars except share and per share amounts ȁͶͺ Ǥǯ Ǥ ǡ Ǥ Ǥ Ǥ ǡ ǡǡ Ǥ ȋȌ Ǧ Ǥ ȋȌ Ǥ ǡ Ǥ ǡ ǡ ǡ ǡ Ǥ Ǥ ȋȌ ǡ Ǥ ǡ Ǥ ͵ͳǡ ʹͲʹʹʹͲʹͳǡ Ǥ ȋȌ ǡ ǡ Ǥ Ǥ Ǥ ǡ ȋDzdzȌ ǡ Ǥ Ǥ ȋȌ Ǥ ǡ ǡ Ǥ Ǥ Ǥ Ǥ ǡ Ǧ Ǥ ǡ CWCENERGYSERVICESCORP. 127(6727+(&2162/,'$7('),1$1&,$/67$7(0(176 )RUWKH\HDUVHQGHG'HFHPEHUDQG Stated in thousands of Canadian dollars except share and per share amounts ȁͶͻ Ǥ Ǥ Ǧ Ǧ Ǥ Ǧ Ǥ ǡ Ǥ ǡ Ǥ ǡ Ǥ Ǥ ǡ Ǥ ȋȌ Ǥ ȋȌ Ǥ ǯ ǡ Ǥ ǡ ǡ Ǥ Ǥ ǯ Ǥ ǤǦ Ǥ ȋȌ ǡ Ǥ ǡ Ǥ Ǥ Ǥ ǡ Ǥ Ǥ CWCENERGYSERVICESCORP. 127(6727+(&2162/,'$7('),1$1&,$/67$7(0(176 )RUWKH\HDUVHQGHG'HFHPEHUDQG Stated in thousands of Canadian dollars except share and per share amounts ȁͷͲ ǡ Ǥ Ǥ ȋȌ Ǧ Ǥ Ǥ ǡ Ǥ ǡ ǡ Ǥ ǡ Ǥ ǯ ͺȋ Ȍǡ ǡ Ǥ Ǧ Ǥ ǣȌǡ ǡȌ ǡ Ǥ ǯ Ǥ ǯ ͺȋȌǡ ǡ Ǥ ǤǣȌǡ ǡȌ ǡ ǡȌ ǡ Ǥ ǯ Ǥ ǯ Ǥ Ǥ ȋȌ Ǥ Ǥǯ ǡ Ǥ Ǥ CWCENERGYSERVICESCORP. 127(6727+(&2162/,'$7('),1$1&,$/67$7(0(176 )RUWKH\HDUVHQGHG'HFHPEHUDQG Stated in thousands of Canadian dollars except share and per share amounts ȁͷͳ ȋȌ ǣ Ǥ Ǥ ǯ ǯǤ Ǥ ȋȌ Ǥǡ Ǥǡ Ǥ ȋȌ ͳǦǡ ͳͶǡʹͲʹͲǡ ͳǡ ǡǡ Ǥ ǡ Ǥ ͳǡ ʹͲʹʹ Ǥ ǡ Ǥ ͳ Ǥ ȋȌ ͵Ǧǡ ͳͶǡʹͲʹͲǡ ͵ǡ Ǥ Ǥ Ǥ ͳǡʹͲʹʹǤ ͵ Ǥ ȋȌ ͻǦ ͳͶǡʹͲʹͲǡ ͻ Ǥ ǡ ǯ Ǥ ͳǡ ʹͲʹʹǤ ͻ Ǥ CWCENERGYSERVICESCORP. 127(6727+(&2162/,'$7('),1$1&,$/67$7(0(176 )RUWKH\HDUVHQGHG'HFHPEHUDQG Stated in thousands of Canadian dollars except share and per share amounts ȁͷʹ ȋȌ ǡ ǡ ͳǡʹͲʹ͵Ǥ Ǣǡ Ǥ ͳǦ ʹͲʹͳǡ ͺ ǡ ǡ Ǥ ǯ ǡ ǡǤ ͳǡʹͲʹ͵ǡ Ǥ Ǥ ʹͲʹͲ ʹͲʹʹǡ ͳ Ǥ Ǧ Ǥ ǡǡǡ Ǥ ͳǡʹͲʹͶ ǡ Ǥ Ǥ ͺǦ ǡ ʹͲʹͳǡ ͳ Ǥ ǡ Ǥ Ǥ ͳǡʹͲʹ͵ǡ Ǥ Ǥ ͳʹǦ ǡʹͲʹͳǡ ͳʹ Ǥ ͳʹ ǡ ǡ Ǥ ͳǡʹͲʹ͵ǡ Ǥ Ǥ 4. Determinationoffairvalues ǯ ǡ Ǧ Ǥ Ǧ Ǥ CWCENERGYSERVICESCORP. 127(6727+(&2162/,'$7('),1$1&,$/67$7(0(176 )RUWKH\HDUVHQGHG'HFHPEHUDQG Stated in thousands of Canadian dollars except share and per share amounts ȁͷ͵ ͳ͵ ǣ ͳȂ Ǣ ʹ Ȃ Ǣ ͵Ȃ Ǥ 5. Propertyandequipment Costs ǡ ͳǡʹͲʹʹ $ 148,692 $ 243,251 $ 827 $ 2,113 $ 394,883 21,493 3,737 683 128 26,041 (1,750) (2,991) (126) (109) (4,976) 3,554 Ǧ (3) Ǧ 3,551 ǡ ͵ͳǡʹͲʹʹ 171,989 243,997 1,381 2,132 419,499 Accumulateddepreciationand impairmentlosses ǡ ͳǡʹͲʹʹ 60,845 132,833 457 2,014 196,149 5,613 6,208 245 96 12,162 (1,269) (2,287) (126) (90) (3,772) (22,952) (309) Ǧ Ǧ (23,261) 594 Ǧ Ǧ Ǧ 594 ǡ ͵ͳǡʹͲʹʹ 42,831 136,445 576 2,020 181,872 Netbookvalue ǡ ͵ͳǡʹͲʹʹ $ 129,158 $ 107,552 $ 805 $ 112 $ 237,627 Contract Drilling equipment Production Services propertyand equipment RightǦofǦuse assets Other equipment Total CWCENERGYSERVICESCORP. 127(6727+(&2162/,'$7('),1$1&,$/67$7(0(176 )RUWKH\HDUVHQGHG'HFHPEHUDQG Stated in thousands of Canadian dollars except share and per share amounts ȁͷͶ Ǧͳͻ Ǥ ǯ Ǥ ǡ ǯ ȋDz dzȌ ͵ͳǡ ʹͲʹʹǤ ǡ ̵ ʹͲʹ͵ͷǦ ͵ͳǡʹͲʹʹǤ Ǧ ʹͲΨ Ǥ ͵ Ǥ ǯ Ǥ ͵ͳǡʹͲʹʹǡ ̈́ʹʹǡͻͷʹ ̈́͵Ͳͻ Ǥ ǯ Ǥ Costs ǡ ͳǡʹͲʹͳ $ 121,530 $ 256,123 $ 946 $ 2,098 $ 380,697 27,793 1,028 442 15 29,278 (362) (13,900) (561) Ǧ (14,823) ȋͷȌ Ǧ Ǧ Ǧ Ǧ Ǧ (269) Ǧ Ǧ Ǧ (269) ǡ ͵ͳǡʹͲʹͳ 148,692 243,251 827 2,113 394,883 Accumulateddepreciationand impairmentlosses ǡ ͳǡʹͲʹͳ 57,357 136,726 753 1,961 196,797 3,560 6,703 247 53 10,563 (54) (11,892) (543) Ǧ (12,489) Ǧ 1,296 Ǧ Ǧ 1,296 ȋͷȌ Ǧ Ǧ Ǧ Ǧ Ǧ (18) Ǧ Ǧ Ǧ (18) ǡ ͵ͳǡʹͲʹͳ 60,845 132,833 457 2,014 196,149 Netbookvalue ǡ ͵ͳǡʹͲʹͳ $ 87,847 $ 110,418 $ 370 $ 99 $ 198,734 Contract Drilling equipment Production Services propertyand equipment RightǦofǦuse assets Other equipment Total CWCENERGYSERVICESCORP. 127(6727+(&2162/,'$7('),1$1&,$/67$7(0(176 )RUWKH\HDUVHQGHG'HFHPEHUDQG Stated in thousands of Canadian dollars except share and per share amounts ȁͷͷ 6. Loansandborrowings ǣ ȋDz dzȌǤ ʹͻǡʹͲʹʹǡ ̈́ͷͲǡͳͲ ǡ̈́ͳʹǡͲͲͲǤǤ ǡ̈́ǡͷͲͲ ̈́ͷǡͲͲͲǤǤ Ǥ ͵ͳǡʹͲʹͷ ȋDz dzȌǤ ǡ Ǥǡ ǡ Ǥ ǡ Ǥ ǯ ȋʹȌ ȋͳȌǯͳǤʹͷΨ ǯͶǤʹͷΨǯ ʹǤʹͷΨǯ ͷǤʹͷΨǤ ͲǤͷΨͳǤ͵ͳΨǤ Ǥ Ǥ ͷΨ ͻͲͲΨ Ǥ ͵ͳǡʹͲʹʹǡ ̈́ͺͳǡʹ͵ͷǡ ̈́Ͷͺǡͺͻ̈́͵ʹǡ͵ͷȋ ͵ͳǡʹͲʹͳǣ ̈́͵ͷǡͲͺͺȌǤ ̈́ͳʹͷǡͲͲͲǡ Ǥ ȋȌǤ ͵ͳǡ ʹͲʹʹǡ ͳǤʹͷΨǡǯ ʹǤʹͷΨǡͲǤͷΨǤ ǡ ǣ December31,2022 ȋʹȌ ȋͳȌ ͵ǤͷͲǣͳǤͲͲ 0.74:1.00 ȋʹȌȋ͵Ȍ ͲǤͷͲǣͳǤͲͲ 0.14:1.00 ȋͶȌ ȋͷȌ ͳǤͳͷǣͳǤͲͲ 16.38:1.00 Currentliabilities $ 283 ̈́ ͳͺʹ 582 ͷͺʹ $ 865 ̈́ Ͷ NonǦcurrentliabilities $ 32,356 ̈́ ͵ͷǡͲͺͺ 9,600 ͳͲǡͳͺʹ 589 ʹͳͷ (406) ȋͶͲʹȌ $ 42,139 ͶͷǡͲͺ͵ Totalloansandborrowings $ 43,004 ̈́ ͶͷǡͺͶ December31, 2022 ͵ͳǡ ʹͲʹͳ CWCENERGYSERVICESCORP. 127(6727+(&2162/,'$7('),1$1&,$/67$7(0(176 )RUWKH\HDUVHQGHG'HFHPEHUDQG Stated in thousands of Canadian dollars except share and per share amounts ȁͷ ȋͳȌ ǡ ǡ ǡ Ǧ ǡǦ ǡ ǡǦ ǡ Ǧ ǡ Ǥ Ǧ Ǥ Ǥ ȋʹȌ ǣǡ Ǥ ȋ͵Ȍ ǯ Ǥ ȋͶȌ ǡ Ǧ Ǥ Ǥ ȋͷȌ Ǧ ȋ ȌǤ ͵ͲǡʹͲʹͺʹʹ ̈́ͺǤǡ̈́ǡͲ͵Ͳ ǤʹǡʹͲʹʹǡ ǡ ǯ Ǧ Ǥ ǡ͵Ǥ͵ͺΨ ͳǤ͵ͷΨǡ ͶǤ͵ΨǤ ʹ Ǥ ͵ͳǡʹͲʹʹǡǦǦ ̈́ͳͷʹ ȋ ͵ͳǡ ʹͲʹͳǣ̈́ʹͳͲ ȌǤ ͳ Ǥ ͷǤͲΨͺǤͷΨǤ ǦǦ ǣ Office space Motor vehicles Total ͳǡʹͲʹͳ ̈́ ̈́ ͳʹ ̈́ ͳͻ͵ Ǧ ͶͶʹ ͶͶʹ Ǧ ȋͳͺȌ ȋͳͺȌ ȋͷͲȌ ȋͳͻȌ ȋʹͶȌ BalanceatDecember31,2021 $ 17 $ 353 $ 370 Additions 262 421 683 Depreciationexpense (46) (199) (245) Effectofforeigncurrencyexchangedifferences Ǧ (3) (3) BalanceatDecember31,2022 $ 233 $ 572 $ 805 CWCENERGYSERVICESCORP. 127(6727+(&2162/,'$7('),1$1&,$/67$7(0(176 )RUWKH\HDUVHQGHG'HFHPEHUDQG Stated in thousands of Canadian dollars except share and per share amounts ȁͷ ǣ Ǥ ̈́ʹͷ ͵ͳǡʹͲʹʹ ȋ ͵ͳǡʹͲʹͳǣ̈́ʹ͵ͷȌǤ 7. IncomeTaxes Ǥ ǣ ǣ ȋͳȌ̈́͵ͲǡʹʹȋʹͲʹͳǣ̈́ͶǡͻͲȌǦ ̈́ͳ͵ǡ͵ͲͷȋʹͲʹͳǣ̈́ͺǡͶʹͶȌ Ǥ ʹͲʹͻʹͲͶ͵Ǥ ͵ͳǡʹͲʹʹʹͲʹͳǤ ͳ $ 397 ̈́ ʹͲ 683 ͶͶʹ 34 ͳͻ (239) ȋʹͷȌ Ǧ ȋͳͶȌ (3) Ǧ BalanceasatDecember31 $ 872 ̈́ ͵ͻ 2022 ʹͲʹͳ ͵ͳǡ $ 53,373 ̈́ ͷǡ͵ͻ 23.1% ʹ͵ǤͲΨ 12,329 ͳǡʹͶͳ ȋ Ȍǣ Ǧ 44 ͳͻ 145 ȋͶʹȌ 244 ͳͺʹ (1,750) ȋͺͻȌ 74 ȋͶͷͻȌ 513 ȋʹͻȌ $ 11,599 ̈́ ͺʹ͵ 2022 ʹͲʹͳ ȋͳȌ ̈́ ͳ͵ǡ ̈́ ȋʹǡͶͺͺȌ ̈́ 11,178 ͻʹ 158 ȋͳǡͷ͵ͺȌ ͳǡͷ͵ͺ Ǧ ʹͷͺ ȋͻ͵Ȍ 165 ͳʹǡͶͺ ȋͻȌ 11,501 ǣ ȋʹͳǡͲʹȌ ȋͳͲǡʹ͵Ȍ (31,685) ̈́ ȋͺǡͷͺͶȌ ̈́ ȋͳͳǡͲͲȌ ̈́ (20,184) ͵ͳǡ ʹͲʹͳ December31, 2022 CWCENERGYSERVICESCORP. 127(6727+(&2162/,'$7('),1$1&,$/67$7(0(176 )RUWKH\HDUVHQGHG'HFHPEHUDQG Stated in thousands of Canadian dollars except share and per share amounts ȁͷͺ 8. Sharecapital Ǥ Ǥ Ǥ Ǥ ͳǡʹͲʹʹǡ ȋDz dzȌ ͳͷǡʹͲʹ͵ Ǥ ǡ ǡʹͷǡʹͲǡͳ Ǥ ȋDzdzȌȋ Ȍ Ǥȋ̶ ̶ȌǤ ǡ Ǥ Ǥ ͵ͳǡ ʹͲʹʹǡ ʹͳͲǡͲͲͲ ̈́Ͷǡ ǡ ǡ ǡ ȋ ͵ͳǡ ʹͲʹͳǣ ʹǡʹͶͻǡͷͲͲ ̈́͵ʹ ǡ ǡ ȌǤ Ǥ Ǥ Ǥ ǡ Ǥ Ǥ Ǥ ǣ ͵ͳǡʹͲʹʹǣ Exerciseprice Numberofoptions outstanding Weightedaverage remaininglife(years) contractual Weighted averageexercise price Numberof options exercisable $ 0.10 89,000 1.93 $ 0.10 89,000 ͵ͳǡʹͲʹʹǡ Ǧ ̈́Ͷ ȋ ͵ͳǡʹͲʹͳǣ̈́ͷȌǤ Numberof options Weightedaverage exerciseprice ͳǡʹͲʹͳ ͳǡͲ͵ͺǡͲͲͲ ͲǤͳͻ ȋͺǡͶʹͲǡͲͲͲȌ ͲǤͳͺ ȋʹͻͷǡͲͲͲȌ ͲǤͳͻ BalanceatDecember31,2021 7,323,000 0.20 Exercised (4,615,000) 0.20 Expired (2,619,000) 0.20 BalanceatDecember31,2022 89,000 0.10 CWCENERGYSERVICESCORP. 127(6727+(&2162/,'$7('),1$1&,$/67$7(0(176 )RUWKH\HDUVHQGHG'HFHPEHUDQG Stated in thousands of Canadian dollars except share and per share amounts ȁͷͻ Ǥ ȋDzdzȌ Ǥ Ǥ ǡ ǡ Ǥ Ǥ ǡ Ǥ ȋDzdzȌǣ ͵ͳǡʹͲʹʹǣ Issuedatefair value NumberofRSUs outstanding Weightedaverage remaininglife(years) contractual Weighted averageexercise price($) NumberofRSUs exercisable $0.14Ǧ$0.25 17,448,911 2.01 n/a 3,905,913 ͵ͳǡʹͲʹʹǡ Ǧ ̈́ͳǡͲͶͷȋ ͵ͳǡʹͲʹͳǣ̈́ȌǤ Ǥ ǣ Ǥ Ǥ ǡ ǡǡ ǡ ǡ Ǥ Ǧ ǯ Ǥ NumberofRSUs Weightedaveragefair valueatissuedate ͳǡʹͲʹͳ ͳͶǡͻͷͶǡͷʹ ͲǤͳ͵ ǡʹͳͺǡͲͲͲ ͲǤͳ ȋͷǡͲͲǡͷȌ ͲǤͳ͵ Ǧ ȋ͵ͺǡͲͲͲȌ ͲǤͳ͵ BalanceatDecember31,2021 16,085,887 0.14 Granted 6,024,000 0.25 Redeemedforcommonshares (4,607,636) 0.12 ExpiredǦvested (53,340) 0.09 BalanceatDecember31,2022 17,448,911 0.18 2022 2021 Ȃ 511,284,083 ͷͲͷǡ͵͵ǡͻͺ Ǧ 17,537,911 ǡͺͷǡͺͲͻ Ȃ 528,821,994 ͷͳ͵ǡʹͲ͵ǡͺ Fortheyearended December31, CWCENERGYSERVICESCORP. 127(6727+(&2162/,'$7('),1$1&,$/67$7(0(176 )RUWKH\HDUVHQGHG'HFHPEHUDQG Stated in thousands of Canadian dollars except share and per share amounts ȁͲ 9. Supplementalcashflowinformation 10. Segmentedinformation Ǥ Ǥ Ǥ ȋDz ȋȌdzȌ Ǥ ȋȌ ǡ Ǥ ǯ ǡ Ǥ ǡ Ǥ ȋȌ ǣ $ (19,719) $ ȋͻǡͻͻͷȌ (2,281) ͵͵ͳ 5,038 ʹǡͻͳ $ (16,962) $ ȋǡͻ͵Ȍ 2022 2021 CWCENERGYSERVICESCORP. 127(6727+(&2162/,'$7('),1$1&,$/67$7(0(176 )RUWKH\HDUVHQGHG'HFHPEHUDQG Stated in thousands of Canadian dollars except share and per share amounts ȁͳ ǣ ͵ͳǡʹͲʹʹ̈́ͷǡͺͳͻȋ ͵ͳǡʹͲʹͳǣ̈́͵ǡͳͻȌ Ǥ Ǥ FortheyearendedDecember31,2022 Contract Drilling Production Services Corporate Total $ 47,279 $ 94,758 $ Ǧ $ 142,037 63,295 Ǧ Ǧ 63,295 110,574 94,758 Ǧ 205,332 $ 32,445 $ 59,900 $ Ǧ $ 92,345 44,602 Ǧ Ǧ 44,602 77,047 59,900 Ǧ 136,947 6,113 9,243 7,098 22,454 Ǧ Ǧ 1,049 1,049 Ǧ Ǧ 2,558 2,558 5,664 6,405 93 12,162 ȋȌ 476 (426) Ǧ 50 (22,952) (309) Ǧ (23,261) ȋȌ 44,226 19,945 (10,798) 53,373 Ǧ Ǧ 114 114 Ǧ Ǧ 11,599 11,599 ȋȌ $ 44,226 $ 19,945 $ (22,511) $ 41,660 $ 21,493 $ 4,420 $ 128 $ 26,041 AsatDecember31,2022 $ 72,240 $ 107,552 $ 112 $ 179,904 56,918 Ǧ Ǧ 56,918 129,158 107,552 112 236,822 ǦǦ 331 241 233 805 $ 129,489 $ 107,793 $ 345 $ 237,627 CWCENERGYSERVICESCORP. 127(6727+(&2162/,'$7('),1$1&,$/67$7(0(176 )RUWKH\HDUVHQGHG'HFHPEHUDQG Stated in thousands of Canadian dollars except share and per share amounts ȁʹ ʹͲʹͳ ȋDzdzȌ ȋDzdzȌǤ ǡ Ǧͳͻ Ǥ Ǧͳͻ Ǥ FortheyearendedDecember31,2021 Contract Drilling Production Services Corporate Total ̈́ ʹͶǡͳͲ ̈́ Ͳǡͻʹ͵ ̈́ Ǧ ̈́ ͻͷǡ͵͵ ǡͲͲʹ Ǧ Ǧ ǡͲͲʹ ͵ͳǡͳʹ Ͳǡͻʹ͵ Ǧ ͳͲʹǡ͵ͷ Ͷͷ ͶǡͲͶ ȋͳͶȌ ͵ǡͺ͵ͷ ͳͺǡͺ͵͵ Ͷͺǡͳͳ Ǧ ǡͻͻͶ ͷǡʹͻͶ Ǧ Ǧ ͷǡʹͻͶ ʹͶǡͳʹ Ͷͺǡͳͳ Ǧ ʹǡʹͺͺ ͳǡͶ ͺǡͳͶ ͷǡͶͳ ͳͷǡ͵ͳͲ Ǧ Ǧ ͺʹ ͺʹ Ǧ Ǧ ͳǡͲͺ ͳǡͲͺ ͵ǡͳʹ ǡͶͶ ͷͲͶ ͳͲǡͷ͵ ȋʹͶͳȌ ȋͳͲȌ Ǧ ȋʹͷͳȌ Ǧ ͳǡʹͻ Ǧ ͳǡʹͻ Income(loss)beforetax ʹǡͻͶʹ ͳͲǡͻͷ ȋͺǡͷͲʹȌ ͷǡ͵ͻ Ǧ Ǧ ͺʹ͵ ͺʹ͵ Netincome(loss) ̈́ ʹǡͻͶʹ ̈́ ͳͲǡͻͷ ̈́ ȋͻǡ͵ʹͷȌ ̈́ Ͷǡͷ͵ ̈́ ʹǡͻ͵ ̈́ ͳǡͶͲ ̈́ ͳͷ ̈́ ʹͻǡʹͺ AsatDecember31,2021 ̈́ ͷͳǡʹͳ ̈́ ͳͳͲǡͶͳͺ ̈́ ͻͻ ̈́ ͳͳǡ͵͵ ͵ǡ͵ͳ Ǧ Ǧ ͵ǡ͵ͳ ͺǡͺͶ ͳͳͲǡͶͳͺ ͻͻ ͳͻͺǡ͵Ͷ ǦǦ Ǧ ͵ͷ͵ ͳ ͵Ͳ ̈́ ͺǡͺͶ ̈́ ͳͳͲǡͳ ̈́ ͳͳ ̈́ ͳͻͺǡ͵Ͷ CWCENERGYSERVICESCORP. 127(6727+(&2162/,'$7('),1$1&,$/67$7(0(176 )RUWKH\HDUVHQGHG'HFHPEHUDQG Stated in thousands of Canadian dollars except share and per share amounts ȁ͵ 11. Expensesbynature ǣ 12. Financecosts 13. Commitmentsandcontingencies Ǥ ǯ ǡ Ǥ FortheyearendedDecember31,2022 $ 92,522 $ 13,263 $ 105,785 5,936 Ǧ 5,936 38,489 Ǧ 38,489 Ǧ 7,369 7,369 Ǧ 54 54 Ǧ 1,768 1,768 Total $ 136,947 $ 22,454 $ 159,401 Total Direct operating expenses Sellingand administrative expenses FortheyearendedDecember31,2021 ̈́ ͶͻǡͳͶͻ ̈́ ͻǡͳʹ ̈́ ͷͺǡ͵ʹͳ ͳͲǡ͵ͷ Ǧ ͳͲǡ͵ͷ ͳʹǡͺ͵ Ǧ ͳʹǡͺ͵ Ǧ ͶǡͲͳ ͶǡͲͳ Ǧ ʹͺ ʹͺ Ǧ ͳǡͷͲͻ ͳǡͷͲͻ Total $ 72,288 $ 15,310 $ 87,598 Direct operating expenses Total Sellingand administrative expenses $ 2,128 ̈́ Ͷͻ 34 ʹͲ 475 ͶͶͶ 26 Ǧ Totalinterestexpense $ 2,663 ̈́ ͳǡʹͳ͵ 257 ʹ͵ͷ ǦǦ (362) ȋ͵ʹȌ Totalfinancecosts $ 2,558 ̈́ ͳǡͲͺ December31, ͵ͳǡ 2022 ʹͲʹͳ CWCENERGYSERVICESCORP. 127(6727+(&2162/,'$7('),1$1&,$/67$7(0(176 )RUWKH\HDUVHQGHG'HFHPEHUDQG Stated in thousands of Canadian dollars except share and per share amounts ȁͶ 14. Relatedparties ǡͷͷǤͺΨ ǤǤȋDzdzȌǤ ǯǤ ʹͲʹʹǡ̈́ͻ͵ȋʹͲʹͳǣ̈́ͳǡʹͲͺȌ̈́ ͵ͳǡ ʹͲʹʹ ȋ ͵ͳǡ ʹͲʹͳǣ ̈́ʹʹͷȌ Ǥ ǡ ǡ Ǧ ̵Ǥ ǯ Ǥ ǣ FortheyearsendedDecember31, 2022 2021 Ǧȋ ̵Ȍ ̈́ 2,798 ̈́ ͳǡͶͺ Ǧȋ Ȍ 807 ͷ͵ ̈́ 3,605 ̈́ ʹǡ͵Ͳͳ Ǥ ǯ ǡ ͳͺ ʹͶ ǡ Ǥ Ǥ 15. Financialriskmanagement ǯ Ǥǯ ǯ Ǥ Ǥ ǯ ǡ ǡ Ǥ ǯ Ǥ ǡ ǡ Ǥ ǡǣ Ǥ ǯ Ǥ ǡ Ǧ ǡ ͵ͳǡʹͲʹʹʹͲʹͳǤ Ǣ Ǥ Ǥ Ǥ ǯ ǡ ǡ ǯ Ǥ CWCENERGYSERVICESCORP. 127(6727+(&2162/,'$7('),1$1&,$/67$7(0(176 )RUWKH\HDUVHQGHG'HFHPEHUDQG Stated in thousands of Canadian dollars except share and per share amounts ȁͷ ͵ͳǡ ʹͲʹʹǡ Ͷ͵Ψ ȋʹͲʹͳǣ ͷʹΨ Ȍ ͳͲΨȋʹͲʹͳǣ ͳʹΨ ͳ͵Ψ ȌǤ ͵ͳǡʹͲʹʹǡ ͷΨ ȋʹͲʹͳǣ ͷΨ Ȍ ͳ͵Ψ ȋʹͲʹͳǣ ͳͳΨȌǤ Ǥǯ ǡǡ Ǥ ǯ Ǥ ǡ ǯ Ǥ ǣ ͵ͳǡ 2022 ʹͲʹͳ ǣ ͳ͵ͲȂ $ 24,441 ̈́ ͳ͵ǡʹͲͶ ͵ͳͻͲ 18,550 ͳʹǡ͵ͳͷ εͻͲ 3,676 ͳǡʹ (721) ȋͷͷͻȌ $ 45,946 ̈́ 26,227 ͵ͳǣ 2022 ʹͲʹͳ ͳ $ 559 ̈́ ͻ͵Ͷ 270 ʹͺ (108) Ǧ Ǧ ȋͶͲ͵Ȍ ͵ͳ $ 721 ̈́ ͷͷͻ ǡ Ǥ ǡ ǡ Ǧ Ǥ ǡ Ǥ Ǥ Ǥ ǯ ǡǡ ǡ ǡ ǯǤ ͵ͳǡʹͲʹʹǡ ̈́ͶͺǡͺͻȋʹͲʹͳǣ̈́͵ͶǡͺͺͻȌ ̈́ͶͷǡͻͶȋʹͲʹͳǣ̈́ʹǡʹʹȌ̈́ͻͶǡͺʹͷȋʹͲʹͳǣ ̈́ͳǡͳͳȌ Ǥ ʹͲʹ͵Ǥ ǡ ̵ ǡ ǡǡ ̵ Ǥ ̵ CWCENERGYSERVICESCORP. 127(6727+(&2162/,'$7('),1$1&,$/67$7(0(176 )RUWKH\HDUVHQGHG'HFHPEHUDQG Stated in thousands of Canadian dollars except share and per share amounts ȁ ǡ̵ ǡ ǡǡ Ǥ Ǧ ǣ Ǥ ǡ ǡ ǡ Ǥ ǡǤ ǣ Ǥ Ǥ ͵ͳǡ ʹͲʹʹǡ ǯ Ǥ ǡǯ ǡ Ǥ ͵ͳǡʹͲʹʹǡ ̈́ͲǤͲͳ ǤǤ̈́ͻȋ ͵ͳǡʹͲʹͳǣ ̈́ʹͳȌǤ Ǥ Ǧ Ǥ ͵ͳǡʹͲʹʹǡ ͳǤͲΨǡ ǡ ̈́͵ȋʹͲʹͳǣ̈́ʹͻȌǤ ǡǡ̵ Ǥ ǡ ǯ Ǥ ǡ ǡ Ǥ 16. Capitalmanagement ǯ ǡ Ǥ Ǧ Ǥ ǡ Ǥ YearendedDecember31,2022 $ 13,983 $ Ǧ $ Ǧ $ Ǧ $ Ǧ Ǧ 865 811 33,098 690 7,945 $ 14,848 $ 811 $ 33,098 $ 690 $ 7,945 ͵ͳǡʹͲʹͳ ̈́ ͺǡͻͶͷ ̈́ Ǧ ̈́ Ǧ ̈́ Ǧ ̈́ Ǧ Ǧ Ͷ ͳͲǡ͵͵Ͷ ͵ͷǡͳͷͳ Ǧ Ǧ ̈́ ͻǡͲͻ ̈́ ͳͲǡ͵͵Ͷ ̈́ ͵ͷǡͳͷͳ ̈́ Ǧ ̈́ Ǧ 2023 2024 2025 2026 2027and beyond ʹͲʹʹ ʹͲʹ͵ ʹͲʹͶ ʹͲʹͷ ʹͲʹ CWCENERGYSERVICESCORP. 127(6727+(&2162/,'$7('),1$1&,$/67$7(0(176 )RUWKH\HDUVHQGHG'HFHPEHUDQG Stated in thousands of Canadian dollars except share and per share amounts ȁ ǡ Ǥ ǡ Ǥ ǡǡǡǡǡ ǡǡ Ǥ ȋȌǤ ǡǡ Ǥ ͵ͳǡ ʹͲʹʹǡ ǡ Ǥ ͵ͳǡʹͲʹʹͲǤͶǣͳǤͲͲȋ ͵ͳǡʹͲʹͳǣͳǤͻͻǣͳǤͲͲȌǤ ͵ͳǡʹͲʹʹʹͲʹͳǤ Corporate Secretary James L. Kidd Burnet, Duckworth & Palmer LLP Auditors Ernst & Young LLP Bankers ATB Financial National Bank HSBC Bank Canada & U.S. Canadian Western Bank Legal Counsel Burnet, Duckworth & Palmer LLP Transfer Agent Computershare Limited Corporate Office Suite 2910, 605 - 5th Ave SW Calgary, Alberta T2P 3H5 Phone: (403) 264-2177 Fax: (403) 264-2842 Website: www.cwcenergyservices.com Email: info@cwcenergyservices.com Stock Exchange Listing TSX Venture: CWC Directors Jim Reid, Chairman Duncan T. Au1 Daryl Austin Gary L. Bentham1 Jason Chehade2, 3 Nancy Foster2 Wade McGowan1, 2, 3 1. Audit Committee 2. Compensation and Corporate Governance Committee 3. Quality, Health, Safety and Environment Committee Officers Duncan T. Au, FCPA, FCA, CFA, ICD.D President & Chief Executive Officer Stuart King, CPA, CA Chief Financial Officer Paul Donohue Vice President Operations (Drilling) Darwin McIntyre Vice President Operations (Well Services) Bob Apps Vice President, Sales and Marketing (Drilling) Mike Dubois Vice President, Sales and Marketing (Well Services) Suite 2910, 605 - 5th Ave SW Calgary, Alberta, Canada T2P 3H5
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