Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Health and Safety

Environmental Achievements

• MATRRIX is committed to managing and operating in a safe, efficient, environmentally responsible manner in association with its industry partners and is committed to continually improving its environmental, health, safety and social performance.
• The Corporation believes that it meets all existing environmental standards and regulations and includes sufficient amounts in its capital expenditure budget to continue to meet current environmental protection requirements.

Social Achievements

• MATRRIX maintains a safe and environmentally responsible work place and provides training, equipment and procedures to all individuals in adhering to its policies.
• It also solicits and takes into consideration input from neighbors, communities and other stakeholders in regard to protecting people and the environment.

Governance Achievements

• With the addition of the new contract drilling business segment in the fourth quarter of 2017, subsequent to the year ended December 31, 2017, the Corporation split out the Audit, Environmental, Health and Safety Committee into two separate Board committees: (i) the Audit Committee; and (ii) the Environmental, Health and Safety Committee.
• The Environmental, Health and Safety Committee monitors, and continuously updates, the policies and procedures implemented by management relating to environmental, health and safety matters for adherence by all directors, officers, employees and consultants of the Corporation.

Climate Goals & Targets

Environmental Challenges

• Demand for Services: The demand, price and terms of horizontal and directional drilling services and land based contract drilling rigs are dependent on the level of activity in the industry. Industry conditions are influenced by numerous factors over which MATRRIX has no control, including the level of oil and natural gas prices...
• Volatility and Weakness in the Oil and Natural Gas Industry: Recent market events and conditions, including global excess oil and natural gas supply, recent actions taken by the Organization of the Petroleum Exporting Countries, slowing growth in emerging economies, market volatility and disruptions in Asia, sovereign debt levels and political upheavals in various countries, have caused significant weakness and volatility in commodity prices.
• Seasonality/Weather: Operating activities within the Canadian oil and natural gas services industry are generally lower in April and May during spring break up...
• Government Regulation of Oil and Natural Gas Industry: The oil and natural gas industry is subject to extensive laws and regulations imposed by various levels of government where MATRRIX operates. Compliance with, breaches of, or changes to such laws and regulations could have a material adverse effect on MATRRIX's business...
• Environmental Regulation and Liability: The oil and natural gas industry is currently subject to federal, provincial and state environmental laws and regulations.
• Competition: The oil and natural gas services industry is characterized by intense competition and MATRRIX competes directly with other companies that have greater resources and access to capital.
• Service Agreements and Contracts: The business operations of MATRRIX will depend, to a certain extent, on industry standard agreements and closed bid processes with its customer base, some of which are cancellable at any time by MATRRIX or its customers upon certain conditions being met.
• Reliance on Major Customers: MATRRIX's success depends on the ability of MATRRIX's customers to select and acquire suitable producing properties or undeveloped exploration prospects.
• Equipment Construction Risks: Actual costs of construction may, however, vary significantly from those estimated as a result of numerous factors, including, without limitation: changes in input costs; variations in labor rates; and, to the extent that component parts must be sourced from other countries, fluctuations in exchange rates.
• Credit Risk: Credit risk in MATRRIX's business arises primarily from credit exposure to customers in the form of outstanding accounts.
• Equipment and Technology Risks: Complex drilling and completions programs for the exploration, development and production of conventional and unconventional oil and natural gas reserves in North America demand high performance equipment.
• Alternatives to and Changing Demand for Petroleum Products: Fuel conservation measures, alternative fuel requirements, increasing consumer demand for alternatives to oil and natural gas, and technological advances in fuel economy and energy generation devices could reduce the demand for crude oil and other liquid hydrocarbons.
• Stage of Development for the Land Based Contract Drilling Rig Segment: An investment in MATRRIX is subject to certain risks related to the nature of MATRRIX's business and its newly acquired land based contract drilling rig business segment.
• Reliance on Key Personnel: The success of the Corporation is dependent upon its key personnel.
• Dependence on Suppliers: Failure of suppliers to deliver equipment in a timely and efficient manner could be detrimental to the Corporation's ability to keep customers and to grow.
• Failure to Realize Anticipated Benefits of Acquisitions and Dispositions: Achieving the benefits of acquisitions...depends in part on successfully consolidating functions and integrating operations and procedures in a timely and efficient manner...
• Substantial Capital Requirements and Additional Funding Requirements: MATRRIX's cash flow from its operations may not be sufficient to fund its ongoing activities at all times.
• Issuance of Debt: From time to time, MATRRIX may enter into transactions to acquire assets or the shares of other entities. Those transactions may be financed partially or wholly with debt, which may increase MATRRIX's debt levels above its industry peers.
• Variations in Foreign Exchange Rates and Interest Rates: World oil and natural gas prices are quoted in United States dollars and the price received by Canadian producers is therefore affected by the Canadian/U.S. dollar exchange rate which will fluctuate over time.
• Management of Growth: MATRRIX may be subject to growth-related risks including capacity constraints and pressure on its internal systems, controls and personnel.
• Conflicts of Interest: The directors and officers of MATRRIX may also be directors or officers of other companies involved in the oil and natural gas industry and situations may arise where they are in a conflict of interest with MATRRIX.
• Unpredictability and Volatility of Share Price: The trading price of securities of oil and natural gas services issuers is subject to substantial volatility.
• Risks of Interruption and Casualty Losses: MATRRIX's operations are, or will be, subject to many hazards inherent in the oil and natural gas services industry...
• Safety Performance: The safety performance of the Corporation is an important part of the Corporation's business and its customer's businesses.
• Tax Matters: The taxation of corporations is complex.
• Asset Impairment: The Corporation is required to periodically review asset balances including goodwill and capital assets for impairment when certain factors indicate the need for analysis.
• Information Technology Security: The risk of cyber-attacks targeting the industry is increasing.
• Forward-Looking Statements May Prove Inaccurate: Shareholders and prospective investors are cautioned not to place undue reliance on the Corporation's forward-looking statements.
• Availability of Current Credit Facilities: The amounts available under the New Credit Facility are subject to periodic review by the Corporation's lenders...
• Cash Flow Risk: With expansion into the land based contract drilling rig business and the resulting expected deployment of the current cash position, the Corporation will require sufficient cash flow in the future in order to service and repay any current and future indebtedness incurred...
• Political Uncertainty: A change in federal, provincial or municipal governments in Canada may have an impact on the directions taken by such governments on matters that impact the oil and natural gas industry...
• Climate Change: The Corporation's and/or its customers' operations and activities emit GHGs and require the Corporation to comply with GHG emissions legislation at the provincial or federal level or that may be enacted in other states or areas in which the Corporation carries on operations.
• Changing Investor Sentiment: A number of factors, including the concerns of the effects of the use of fossil fuels on climate change, concerns of the impact of oil and natural gas operations on the environment, concerns of environmental damage relating to spills of petroleum products during transportation and concerns of indigenous rights, have affected certain investors' sentiments towards investing in the oil and natural gas industry.
• Litigation: In the normal course of the Corporation's operations, it may become involved in, named as a party to, or be the subject of, various legal proceedings...
• Intellectual Property Litigation: Due to the rapid development of oil and natural gas and drilling technology, in the normal course of the Corporation's operations, the Corporation may become involved in, named as a party to, or be the subject of, various legal proceedings in which it is alleged that the Corporation has infringed the intellectual property rights of others or commenced lawsuits against others who the Corporation believes are infringing upon its intellectual property rights.
• Breach of Confidentiality: In the normal course of the Corporation's business, the Corporation may discuss potential business relationships, transactions with third parties, financing solutions or other activities and at which time the Corporation may disclose confidential information relating to the business, operations or affairs of the Corporation.
• Foreign Operations: The Corporation ceased its business operations in the U.S. in the third quarter of 2015; however, the Corporation's growth plans may contemplate establishing operations again in the U.S. and in additional foreign countries...

Mitigation Strategies

• MATRRIX is committed to managing and operating in a safe, efficient, environmentally responsible manner.
• The Corporation believes that it meets all existing environmental standards and regulations and includes sufficient amounts in its capital expenditure budget to continue to meet current environmental protection requirements.
• MATRRIX maintains a safe and environmentally responsible work place and provides training, equipment and procedures to all individuals in adhering to its policies.
• The Corporation has established programs to address compliance with current environmental standards and monitors its practices concerning the handling of environmentally hazardous materials.
• MATRRIX develops, implements and monitors strategies to ensure all of the Corporation's operations are meeting regulatory and internal safety policies and procedures.
• MATRRIX regularly reviews the adequacy of its tax provisions and believes that it has adequately provided for those matters.
• The Corporation has employed security measures and procedures to mitigate the risk of cyber-attacks, and has taken precautions to protect critical infrastructure from failure.
• MATRRIX seeks to obtain indemnification from its customers by contract for certain of these risks.
• MATRRIX also seeks protection through insurance.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Safety
• Environmental Protection
• Health

Environmental Achievements

• Maintained operating practices and procedures consistent with requirements established for the oil and natural gas industry and endorsed Environmental Operating Procedures developed by the Canadian Association of Petroleum Producers; included sufficient amounts in its capital expenditure budget to continue to meet current environmental protection requirements.

Social Achievements

• Maintained a strong emphasis and focus on safety, culture and performance; proactively responded to the safety challenges associated with the COVID–19 pandemic and remained committed to ensuring the health and safety of all its personnel and the safe, efficient and reliable operations at each of its drilling sites; implemented an emergency response plan in 2019 and intends on continuing training and educational initiatives to ensure the Corporation is adhering to the highest industry standards.

Governance Achievements

• Environmental, Health and Safety Committee of the Board monitors policies and procedures; Board receives a report from the Environmental, Health and Safety Committee at each quarterly Board meeting outlining any environmental or safety incidents.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impact on industry demand and price of crude oil; demand for services subject to industry activity levels; capital overbuild in the industry; weakness and volatility in the oil and natural gas industry; seasonality and weather conditions; government regulation of the oil and natural gas industry; competition; reliance on key personnel; dependence on suppliers; credit risk; equipment and technology risks; alternatives to and changing demand for petroleum products; substantial capital requirements and additional funding requirements; issuance of debt; variations in foreign exchange rates and interest rates; management of growth; conflicts of interest; unpredictability and volatility of share price; risks of interruption and casualty losses; safety performance; tax matters; asset impairment; information technology security; climate change (chronic and acute risks); changing investor sentiment; litigation; intellectual property litigation; breach of confidentiality; foreign operations.

Mitigation Strategies

• Compliance with all applicable government public health and safety laws, regulations, orders and restrictions; allowance for doubtful accounts and past due receivables are reviewed by management on a regular basis; internal procedures designed to ensure that due diligence reviews to assess environmental liabilities and regulatory compliance are completed prior to proceeding with new acquisitions and developments; maintains an insurance program consistent with industry practice and also has operational and emergency response procedures and occupational health, safety and environmental programs in place to reduce potential loss exposure; credit management program; policies and procedures that address and implement employee protocols with respect to electronic communications and electronic devices and conducts annual cyber-security risk assessments; written incident response plan for responding to a cyber-security incident; regularly reviews the adequacy of its tax provisions.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions, wildfires, floods

Transition Risks

• Changes in government policy, reduced demand for fossil fuels

Environmental Metrics

ESG Focus Areas

• Safety
• Environmental Responsibility
• Health

Environmental Achievements

• Maintained operating practices consistent with requirements established for the oil and natural gas industry and endorsed Environmental Operating Procedures developed by the Canadian Association of Petroleum Producers; includes air quality and climate change, water conservation, spill management, waste management plans, lease and right-of-way management, natural and historic resource protection, and liability management.
• Internal procedures designed to ensure that due diligence reviews to assess environmental liabilities and regulatory compliance are completed prior to proceeding with new acquisitions and developments.

Social Achievements

• Strong emphasis and focus on safety, culture and performance; proactively responded to safety challenges associated with the COVID–19 pandemic; remained committed to ensuring the health and safety of all its personnel and the safe, efficient and reliable operations at each of its drilling sites.
• Maintained an emergency response plan prepared in accordance with applicable regulations; implemented training and educational initiatives to ensure adherence to the highest industry standards.

Governance Achievements

• Environmental, Health and Safety Committee of the Board monitors policies and procedures; Board receives a report from the committee at each quarterly meeting outlining incidents or areas of concern.

Climate Goals & Targets

Environmental Challenges

• Demand for services is dependent on industry activity levels, influenced by oil and natural gas prices, exploration and production costs, reserve discovery rates, pipeline capacity, weather, political and economic conditions, and financing availability.
• Capital overbuild in the industry could lead to decreased rates.
• Weakness and volatility in the oil and natural gas industry due to geopolitical events.
• Impacts of COVID-19 pandemic on industry demand and crude oil prices.
• Natural disasters, terrorist acts, civil unrest, pandemics, and other disruptions.
• Seasonality and weather conditions affecting activity levels.
• Government regulation of the oil and natural gas industry, including changes to laws and regulations.
• Environmental regulation and liability, including compliance costs and potential for spills and damage.
• Intense competition in the oil and natural gas services industry.
• Reliance on major customers and the impact of their success on Stampede's business.
• Equipment construction and repair risks, including cost and timeline variations.
• Credit risk from outstanding accounts receivable with customers in the oil and natural gas industry.
• Equipment and technology risks, including obsolescence and competition.
• Alternatives to and changing demand for petroleum products.
• Reliance on key personnel and potential labor shortages.
• Dependence on suppliers for equipment and components.
• Failure to realize anticipated benefits of acquisitions and dispositions.
• Substantial capital requirements and additional funding requirements.
• Issuance of debt and its impact on future financing.
• Variations in foreign exchange rates and interest rates.
• Management of growth and potential capacity constraints.
• Conflicts of interest among directors and officers.
• Unpredictability and volatility of share price.
• Risks of interruption and casualty losses from hazards in the oil and natural gas services industry.
• Safety performance and its impact on customer relationships.
• Tax matters, including audits and changes in tax laws.
• Asset impairment risks.
• Information technology security risks, including cyber-attacks and data breaches.
• Risks associated with social media use.
• Inaccuracy of forward-looking statements.
• Availability of current credit facilities and potential for reduction or default.
• Cash flow risk and the ability to service and repay indebtedness.
• Political uncertainty and its impact on the oil and natural gas industry.
• Climate change, including chronic and acute risks, and changing investor sentiment.
• Litigation risks, including intellectual property disputes.
• Breach of confidentiality risks.
• Risks associated with foreign operations.

Mitigation Strategies

• Compliance with all applicable regulations and sound practices to protect the environment and ensure employee and public health and safety.
• Continuous monitoring of safety performance at all levels.
• Internal procedures for environmental due diligence and regulatory compliance.
• Emergency response plan and training initiatives.
• Credit management program to assess and manage credit risk.
• Policies and procedures to address information technology security risks.
• Annual cyber-security risk assessments.
• Written incident response plan for cyber-security incidents.
• Periodic review of asset balances for impairment.
• Regular review of the adequacy of tax provisions.
• Procedures to ensure confidentiality agreements are signed by third parties.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions (hot and cold, heavy snowfall, heavy rainfall, wildfires)
• Flooding
• Wildfires

Transition Risks

• Changes in government policy impacting operations and financial condition
• Reductions in demand for fossil fuels
• Climate litigation

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Health, Safety

Environmental Achievements

• Not disclosed

Social Achievements

• Maintains a safe and environmentally responsible workplace and provides training, equipment and procedures to all individuals in adhering to its policies. Actively engages and consults with neighbours, communities and other stakeholders in regard to protecting people and the environment.

Governance Achievements

• Environmental, Health and Safety Committee of the Board monitors policies and procedures implemented by management relating to environmental, health and safety matters.

Climate Goals & Targets

Environmental Challenges

• Climate change, including extreme weather conditions and long-term shifts in climate patterns; Government regulations on GHG emissions; Changing investor sentiment towards fossil fuels; Competition in the oil and natural gas services industry; Credit risk from customers; Equipment construction and repair risks; Reliance on key personnel; Dependence on suppliers; Potential for capital overbuild in the industry; Seasonality and weather conditions; Government regulation of the oil and natural gas industry; Political uncertainty; Inflation; Risks of interruption and casualty losses; Tax matters; Asset impairment; Information technology security; Breach of confidentiality; Risks of foreign operations (potential future expansion).

Mitigation Strategies

• Internal procedures for environmental due diligence reviews prior to acquisitions; Insurance program; Operational and emergency response procedures; Occupational health, safety and environmental programs; Credit management program; Strategies to ensure operations meet regulatory and internal safety policies and procedures; Continuous monitoring of safety performance; Policies and procedures to address cyber security risks; Annual cyber-security risk assessments; Technical and process controls to protect information, assets and systems; Written incident response plan; Periodic review, supervision, retention and maintenance of social media content.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Extreme hot and cold weather, heavy snowfall, heavy rainfall and wildfires

Transition Risks

• Changes in government policy impacting operations and financial condition; Potential for significant reductions in demand for fossil fuels

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed