CWC: CWC ENERGY SERVICES CORP. ANNOUNCES RECORD FOURTH QUARTER AND YEAR END 2022 OPERATIONAL AND FINANCIAL RESULTS AND INCREASE TO 2023 CAPITAL EXPENDITURE BUDGET

CALGARY, AB , March 1, 2023 /CNW/ - (TSXV: CWC) CWC Energy Services Corp. ("CWC" or the "Company") announces the release of its operational and financial results for the three months and year ended December 31, 2022 . The Financial Statements and Management Discussion and Analysis ("MD&A") for the three months and year ended December 31, 2022 are filed on SEDAR at www.sedar.com . CWC Energy Services Corp. Logo (CNW Group/CWC Energy Services Corp.) Financial Highlights Working capital (excluding debt) for December 31, 2022 , has increased $17.0 million (90%) since December 31, 2021 , driven by increases in accounts receivable ( $19.7 million (75%)) and prepaid expenses and deposits ( $2.3 million (143%)) offset by increases in accounts payable ( $5.0 million (56%)). Long-term debt (including current portion) of $43.0 million has decreased $2.9 million (6%) from December 31, 2021 , primarily due to the repayment of long-term debt from operating cash flows in 2022. Highlights for the Three Months Ended December 31, 2022 Q4 2022 saw the Company achieve a new milestone for the fourth quarter with Q4 record revenue, Adjusted EBITDA and net income in CWC's eighteen (18) year history. Record Q4 2022 revenue of $60.0 million , an increase of $26.3 million (78%) compared to $33.7 million in Q4 2021. Revenue increased $22.7 million (181%) in Q4 2022 for the Contract Drilling segment and $3.6 million (17%) for the Production Services segment compared to Q4 2021. Record Q4 2022 Adjusted EBITDA (1) of $13.7 million , an increase of $7.6 million (124%) compared to $6.1 million in Q4 2021. Record Q4 2022 net income of $26.0 million , an increase of $23.2 million compared to $2.9 million in Q4 2021. The increase is primarily due to a $23.3 million reversal of an impairment charge to assets taken in 2015 and 2020. During Q4 2022, 210,000 (Q4 2021: nil) common shares were purchased under the Normal Course Issuer Bid ("NCIB") which were cancelled and returned to treasury. Highlights for the Year Ended December 31, 2022 The year ended December 31, 2022 saw the Company achieve a new milestone with record revenue, Adjusted EBITDA (1) and net income in CWC's eighteen (18) year history. Record revenue for 2022 of $205.3 million , an increase of $102.7 million (100%) compared to $102.6 million in 2021, surpassing the previous annual record revenue of $144.8 million for the year ended 2018. Revenue increased $78.9 million (249%) in the Contract Drilling segment and $23.8 million (34%) in the Production Services segment compared to 2021. Record Adjusted EBITDA (1) for 2022 of $45.9 million , an increase of $27.0 million (143%) compared to $18.9 million in 2021, surpassing the previous annual record Adjusted EBITDA of $34.1 million for the year ended 2014. Record net income for 2022 of $41.7 million , an increase of $37.1 million compared to $4.6 million in 2021, surpassing the previous annual record net income of $12.7 million for the year ended 2011. On June 24, 2022 , purchased three (3) triple drilling rigs and critical spare components for US$7.4 million ( C$9.6 million ). On July 29, 2022 , the Company exercised the accordion feature to expand the Credit Facility to an $80.3 million Bank Loan comprised of a $50.7 million Canadian syndicated facility, a US$12.0 million ( C$15.6 million ) U.S. syndicated facility, a $7.5 million Canadian operating facility and a US$5.0 million ( C$6.5 million ) U.S. operating facility. The Company further amended the Credit Facility to extend the maturity to July 31, 2025 . On November 16, 2022 , the Company reinstated its NCIB with an Automatic Securities Purchase Plan ("ASPP") with Raymond James Ltd., which expires on November 15, 2023 . For the year ended December 31, 2022 , the Company purchased 210,000 (2021: 2,249,500) common shares under the NCIB which were cancelled and returned to treasury. Drilled Alberta's first lithium brine evaluation well in June 2022 , showing the diversity and versatility of our equipment. First Canadian drilling and well servicing company to publicly report our Scope 1 and 2 emissions in our 2022 ESG Report in June 2022 . 2023 Capital Expenditure Budget On March 1, 2023 the Board of Directors approved an additional $0.3 million of maintenance capital and $3.7 million of growth capital, the bulk of which will be used to purchase real estate in the United States , bringing the total capital expenditure budget for 2023 to $30.3 million . The Company intends to finance its 2023 capital expenditure budget from operating cash flows. Industry Overview Average crude oil and natural gas prices Russia's invasion of Ukraine and the western world's response with trade sanctions against Russia , including sanctions on crude oil and natural gas by certain countries, have resulted in significant increases in crude oil and natural gas prices in 2022. In addition, the continued re-opening of the global economy after being significantly slowed down in 2020 and 2021 due to the COVID-19 health pandemic, has resulted in a steady rise in global demand without a significant corresponding increase in global supply for crude oil and natural gas, further justifying the higher prices experienced in 2022. However, significant inflationary increases and rising interest rates have sparked fears of a global recession, which has recently pulled WTI back to a range of US$70 to US$80 /bbl. Despite recessionary fears, discussion about energy security is at the top of many governmental agendas, which should bode well for North American oil and gas activity and oilfield service companies for the foreseeable future. Corporate Overview CWC Energy Services Corp. is a premier contract drilling and well servicing company operating in Canada and the United States with a complementary suite of oilfield services including drilling rigs and service rigs. The Company's corporate office is located in Calgary, Alberta , with operational locations in Nisku , Grande Prairie , Slave Lake , Sylvan Lake , Drayton Valley , Lloydminster , Provost and Brooks, Alberta and U.S. offices in Denver, Colorado and Casper, Wyoming . The Company's shares trade on the TSX Venture Exchange under the symbol "CWC". The Contract Drilling division operates under the trade name CWC Ironhand Drilling and is comprised of thirteen (13) electric triple drilling rigs with depth ratings from 3,600 to 7,600 metres and nine (9) telescopic double drilling rigs with depth ratings from 3,200 to 5,000 metres. All twenty-two (22) rigs have top drives, seventeen (17) have pad rig moving systems, nine (9) have 7,500 psi pumping systems, three (3) have carbon reduction bi-fuel capabilities, and two (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. The Production Services division operates under the trade name CWC Well Services. With a fleet of 143 service rigs, CWC is one of Canada's largest well servicing companies as measured by active fleet and operating hours. CWC's service rig fleet consists of 75 single, 54 double and 14 slant rigs providing services which include completions, maintenance, workovers and well decommissioning with depth ratings from 1,500 to 5,000 metres. In 2022, CWC chose to park 79 of its service rigs and focus its sales and operational efforts on the remaining 64 active service rigs due to the reduction in the number of service rigs currently required to service the WCSB and the tight labour market experienced in the industry for service rig crews. For the year ended December 31, 2022 , approximately 88% of revenue (2021: 71%) was from work on crude oil wells, 11% (2021: 27%) was from natural gas wells and 1% was from other wells comprised of carbon capture and lithium brine wells (2021: 2% was from other wells comprised of carbon capture, helium, and salt water disposal wells). Further, approximately 60% of revenue (2021: 36%) was related to drilling and completions work, 29% of revenue (2021: 47%) was from maintenance and workovers on producing wells and 11% of revenue (2021: 17%) was from well decommissioning. Results of Operations Contract Drilling - Canada and United States