Secure Energy Services Inc T.SES

RBC

[retiredcf]

June 6, 2022

Secure Energy
Chairman of the Board retires

Sentiment: Neutral

Outperform

TSX: SES; CAD 7.22

Price Target CAD 9.00

All values in CAD unless otherwise noted.
Priced as of prior trading day's market close, EST (unless otherwise noted).

Our view: Secure announced that Chairman of the Board Grant Billing has retired, effective June 6, 2022. Brad Munro has been elected as interim Chairman while the Board considers a permanent appointment. Mr. Billing has been Chairman of Secure since the 2021 merger with Tervita. At the time of the merger, Mr. Billing's appointment formally separated Secure's Chairman and CEO roles, which we view favourably. We do not believe the retirement relates to operational or strategic issues as Secure continues to gather operational momentum from improving Western Canadian oil & gas industry activity and achievement of merger synergies.

Mr. Billing retiring from Board. Mr. Billing was appointed Chairman in July 2021 following the Tervita merger. Mr. Billing was previously Chairman of Tervita from 2016. Rene Amirault, President & CEO of Secure, stated "under his Board leadership, Secure remained focused on realizing the synergies resulting from the Transaction and becoming a more resilient, profitable and efficient business".

Mr. Munro elected interim Chairman of Board. Mr. Munro has been a director with Secure Energy since 2009. Mr. Munro has 30 years of experience in investment, board and executive management in oil & gas and other industries. Prior to Secure, Mr. Munro served as a director at Tervita for eight years and was the lead director of the independent committee on the privatization of Tervita.