Corporate Presentation

December 2017

Disclaimer

1

The information contained in this presentation does not purport to be all‐inclusive or to contain all information that prospective investors may require. Prospective investors are encouraged to conduct their own analysis and review of STEP Energy Services Ltd. (“STEP” or the “Company”) and of the information contained in this presentation. Without limitation, prospective investors should read the entire final prospectus, and any amendments thereto, consider the advice of their financial, legal, accounting, tax and other professional advisors and such other factors they consider appropriate in investigating and analyzing the Company. In this presentation, unless otherwise indicated, all dollar amounts are expressed in Canadian dollars. Certain capitalized terms and abbreviations not otherwise defined herein have the meaning assigned to them in the prospectus.

Certain statements contained in this presentation constitute “forward‐looking statements” or “forward‐looking information” within the meaning of applicable securities legislation (collectively, “forward‐looking statements”). These statements relate to management’s expectations about future events, results of operations and the Company’s future performance (both operational and financial) and business prospects. All statements other than statements of historical fact are forward‐looking statements. The use of any of the words “anticipate”, “plan”, “contemplate”, “continue”, “estimate”, “expect”, “intend”, “propose”, “might”, “may”, “will”, “shall”, “project”, “should”, “could”, “would”, “believe”, “predict”, “forecast”, “pursue”, “potential”, “objective” and “capable” and similar expressions are intended to identify forward‐looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward‐looking statements. No assurance can be given that these expectations will prove to be correct and such forward‐looking statements included in this presentation should not be unduly relied upon. These statements speak only as of the date of this presentation. In addition, this presentation may contain forward‐looking statements and forward‐looking information attributed to third‐party industry sources.

In particular, this presentation contains forward‐looking statements pertaining to the following: future commodity prices; anticipated market recovery; projections of market prices and costs; supply and demand for oilfield services and industry activity levels, including the Company’s integrated services offerings; benefits to the Company of increased fracturing intensity; estimates of industry experts of the daily active drilling rig count and the number of horizontal wells drilled in Canada and the U.S. in 2017 and 2018 and the effects of such trends on the Company; the Company’s objectives, strategies and competitive strengths; future development activities; the Company’s ability to refurbish and deploy its idle capacity; the Company’s ability to increase Canadian and U.S. coiled tubing units by 2018; the Company’s ability to retain existing clients and attract new business; the Company’s growth strategy; expectations with respect to future opportunities; the Company’s capital expenditure programs and future capital requirements; the Company’s current 2017/2018 capital plan; and debt and industry conditions pertaining to the oilfield services industry.

With respect to forward‐looking statements contained in this presentation, assumptions have been made regarding, among other things: future oil, natural gas and natural gas liquids prices; the Company’s ability to market successfully to current and new clients; the Company’s ability to utilize its equipment; the Company’s ability to obtain qualified staff and equipment in a timely and cost‐efficient manner; the regulatory framework governing royalties, taxes and environmental matters in the jurisdictions in which the Company conducts its business and any other jurisdictions in which the Company may conduct its business in the future; levels of deployable equipment; future capital expenditures to be made by the Company; future sources of funding for the Company’s capital program; the Company’s future debt levels; the impact of competition on the Company; and the Company’s ability to obtain financing on acceptable terms.

Actual results could differ materially from those anticipated in these forward‐looking statements as a result of the risk factors set forth in the prospectus. The forward‐looking statements included in this presentation are expressly qualified by the foregoing cautionary statements and are made as of the date of this presentation. The Company does not undertake any obligation to publicly update or revise any forward‐looking statements except as required by applicable securities laws. For additional information, including with respect to the assumptions, expectations and risks applicable to such forward‐looking information, see “Forward‐ Looking Statements” in the prospectus.

Non-IFRS Measures

In addition to using financial measures prescribed by IFRS, references are made in this presentation to “Adjusted EBITDA” which is a measure that does not have any standardized meaning as prescribed by IFRS. Accordingly, the Company’s use of such term may not be comparable to similarly defined measures presented by other entities. For further details on this non‐IFRS financial measure, see “IFRS and Non‐IFRS Measures” and “Three Year History – Recent Developments” in the prospectus.

Additionally, this presentation makes use of the following abbreviations: MM millions HP horsepower

2

Rob Sprinkhuysen, CFO • Chartered Accountant with over 20 years of oilfield and

related industry experience • Prior to STEP, was CFO at Technicoil Corp. from 2008 to 2011,

and previously held senior positions in various financial capacities at Enerflex Ltd.

Regan Davis, President & CEO, Director • Co‐founder of STEP; CEO since start up in March 2011 • P. Eng. with over 25 years of industry experience • ICD.D, Member of the Institute of Corporate Directors • Prior to STEP, held senior positions at Renaissance Energy Ltd.

and Enerline Restorations Ltd. Former President and CEO of Flexpipe Systems Ltd. and most recently was the President and CEO at Severo Energy Ltd.

Steve Glanville, VP Operations & COO • Co‐founder of STEP • Certified engineering technologist with over 20 years of

oilfield experience • Prior to STEP, held senior positions in various operational

capacities at Schlumberger, Sanjel and Calfrac • Former President of ICoTA Canada

Experienced and Proven Leadership

Douglas Freel Chairman

Michael Kelly Director

Jeremy Gackle Director

James Harbilas

Director

Jason Skehar Director

Donna Garbutt Director

Other Key Management

Rory Thompson VP, Coiled Tubing Services – Canada 20+ Years

Brock Duhon VP, Coiled Tubing Services – U.S. 16+ Years

Mike Burvill VP, Fracturing Services 20+ Years

Bailey Epp – Co‐founder of STEP VP, Engineering and Technology 20+ Years

Todd Rainville VP, Sales and Marketing 20+ Years

David Johnson VP, Human Resources 20+ Years

Lori McLeod‐Hill VP, Finance 25+ Years

Experience

Board of Directors

Leadership team in‐place to grow the Company

3

Headquartered in Calgary, STEP is a recognized, award‐winning1 oilfield service company providing specialized and fully integrated coiled tubing and fracturing solutions

Leading Specialized Coiled Tubing and Fracturing Service Provider

Company Overview

1 STEP is the 2014 and 2015 recipient of the Top Safety Culture™ Award, Large Enterprises Category, in addition to most recently being named the safety record winner by The OGM Safety Awards. 2 As measured by fracturing horsepower of publicly traded Canadian peers.

U.S. Coiled Tubing Markets

Canadian Coiled Tubing and Fracturing Markets

‐ STEP Service Centre ‐ STEP Head Office

• STEP’s comprehensive business model encompasses all required field support elements inside the Company

• High‐performance, engaged culture with experienced professionals

• One of Canada’s largest and newest fleets of deep‐capacity coil spreads

• Established and expanding fleet of deep‐capacity coil spreads in the US

• Canada’s third‐largest fracturing company2

Fit‐For‐Purpose Equipment

High Performance Culture

Comprehensive Business Model

STEP Has Built and Grown the Business Through the Downturn

3 Professionals 1 Coil Spread 115,000 HP 1 Coil Spread

1,100 Professionals

13 Coil Spreads

297,500 HP

6 Coil Spreads

4

• 2012 – 2 coil, 5 N2 from Kamber • 2015 – 115,000 HP from Gasfrac • 2016 – 165,000 HP from Sanjel • 2016 – 17,500 HP from other parties

• Committed capital in 2011, 2015 and 2016

Asset Acquisitions

ARC Energy Fund Equity Contributions

Company Milestones

• Founded in 2011 • First coiled tubing operation in 2012

Start‐Up

2011 2012 2015 2015 2017

19 Total Canadian & U.S. Coiled Tubing Spreads • Coiled tubing has a reason to be involved

with all completion methods, and has a reason to be on every well site − NCS − Plug and perf − Sliding sleeve

• 13 Fit‐for‐purpose deep‐capacity2 coil spreads in the WCSB − STEP depth record of 7,200

metres • Six fit‐for‐purpose deep‐

capacity coil spreads in Texas and Louisiana

• STEP has complete services with leading electronics and technology equipped coiled tubing equipment, that provides integrated, real‐time info

297,500 Fracturing HP • 209,000 HP currently deployed (seven

spreads)3 • Newly developed sand handling and

blender technology and equipment • Large bi‐fuel (natural gas) fracturing

fleet of 97,500 HP • Expert engineering and lab teams

design and provide customized refracturing solutions and STEP‐PLEX™ diverting agents • High‐quality equipment with

the latest electronics and technology so that all the equipment is fully integrated and talks together

• Upgrading existing equipment as required and complementing with new‐builds

Integrated Services Provider

5

Coiled Tubing Solutions

(33% of last 9 mos. Revenue)1

Fracturing Solutions

(67% of last 9 mos. Revenue)1

Multiple service lines ‐ one team

1 As of September 30, 2017. 2 Wells >5,500 metres in length. 3 As at December 7, 2017.

Expanding Client Base and Service Offering

6

Building on Existing Relationships… ...And Offering New Services

Revenue Growth of Retained Clients

94%

6%

While Attracting New Clients

Client Base Canadian Revenue Composition

100%

2013 2016

STEP’s Blue‐Chip Clients and Offered Services Have Grown With the Company

12%

88%

Single Service Multi‐Service

Canada U.S.

Representative Canadian and U.S. Client Base

Client Revenue Retention

• Clients representing 94% of STEP’s revenue in 2013 remain clients of STEP in 2016

• Revenue generated by retained clients has increased ~30% since 2013

• STEP grew its client base by ~45% since 2013

• 88% of STEP’s 2016 Canadian revenue is generated by clients utilizing its multi‐service offering

‐

$20

$40

$60

$80

$100

2013 2016

Reve

nue

($M

M)

‐

20

40

60

80

100

120

2013 2016

Num

ber o

f Clie

nts (

#)

1

9

1412 12 13

16

2 4

6

11

2012 2013 2014 2015 2016 Current 2018YE

Tota

l Coi

led T

ubin

g Fl

eet (

#)

U.S.

Canada

50100

209

305

65

198

89

115

298 298 305

2015 2016 Current 2018YE

Tota

l Can

adia

n Fr

actu

ring

Capa

city (

000s

HP)

STEP Active STEP Available Capacity

427

680

Calfrac Trican

Proven Ability to Grow

1 Based on the most recent public disclosure. All information regarding STEP’s publicly traded Canadian peers was obtained from the most recently released management’s discussion and analysis, presentation or Annual Information Form.

2 As of June 30, 2012. 3 As at December 7, 2017. 4 Forecast 2017 and 2018 based on the current capital program.

7

STEP & Publicly Traded Canadian Peers Fracturing Capacity1

Successfully Grew the Company and Gained Market Share • Canadian Coiled Tubing – one coil spread in 2012 to 13 coil spreads today; 16 coil spreads by year end 2018 • U.S. Coiled Tubing – zero coil spreads in 2014 to six coil spreads today; 11 coil spreads by year end 2018 • Canadian Fracturing – total of 297,500 HP today (209,000 HP currently operating); 305,000 active HP in 11 spreads by year end 2018

STEP’s Coiled Tubing Fleet

2 3 3 4 4

1 As measured by fracturing horsepower of publicly traded Canadian peers.

8

Investment Highlights

• Third‐largest fracturing company in Canada1

• Significant market share in the deep capacity coiled tubing market in Canada with a growing presence in the U.S. • Integrated service offering leading to expansion of existing client relationships and the acquisition of new clients

High‐Quality Asset Base Providing Combined Coiled

Tubing and Fracturing Solutions

• Established presence in some of the highest‐growth resource basins in Canada and the U.S. (Montney, Duvernay, Permian and Eagle Ford)

• Commitment to core values has earned STEP a client base of well‐capitalized, blue‐chip E&P companies • Client base has grown with STEP due to its track record of safety and execution

Established Operations with Blue‐Chip Client Base in

Canadian and U.S. Basins

• Largest bi‐fuel fracturing fleet in Canada, 3,000 HP Thunderpumps, integrated electronic platforms, proprietary STEP‐PLEX™ diverter solutions

• Fibre optics, e‐coil, engineered high grade string designs, IHX 130 injector prototypes, IDEX coil data acquisition

Technology Focused Solutions and Equipment

• Rigorous preventative maintenance program and growing headcount of experienced professionals have positioned the Company to take advantage of the oil and gas industry recovery

• STEP offers exposure to recovery in completions activity in both Canada and the U.S.

Well Positioned to Capitalize on Industry Recovery

• Debt‐free balance sheet • Positions the Company to grow through new‐build opportunities while capitalizing on opportunistic acquisitions • $122.1 MM of working capital (incl. cash of $60.2 MM) and an undrawn $100 MM credit facility as of Sept 30, 2017

Strong Financial Position

• Senior management team in place with average experience of over 20 years • Proven ability to grow both organically and through multiple acquisitions through the downturn • Did so in a financially prudent manner with support from ARC Financial

Experienced Management Team and Supportive Private

Equity Investor

Market Outlook

9

Industry Undersupplied for Active Completions Equipment

• Active fracturing equipment booked through 2017, clients currently booking into Q1 and Q2 2018. • Experiencing high demand of coiled tubing fleet.

Pricing for Fracturing Services Continues to Gain Traction, Though Partially Offset by Supply Chain Inflation

• Prevalent supply and demand dynamic has resulted in pricing gains through 2017, though partially offset by cost inflation. • Since Q1 2017, fracturing pricing up ~15‐20%; cost inflation, particularly last‐mile sand hauling and proppant costs, partially

offsetting pricing gains. • Pricing has plateaued in response to uncertainty around capital plans and volatility of commodities supporting cash flow.

Pace of Industry Equipment Reactivations Restricted Due to Labour Constraints Across the Industry

• Attracting and retaining qualified field professionals becoming increasingly difficult. • Vendors are also experiencing the same limitation, with labour being a primary bottleneck for servicing equipment.

Increasing Fracturing Intensity Thesis Continues To Be Relevant Across Deeper Basins

• Continue to see the completions intensity thematic play out in the Montney, Duvernay, Cardium and Deep Basin.

Continued Demand for Sand Resulting in Supply Tightening

• Select sand sizes are becoming more difficult to procure.

Thank You

For more information, please visit: http://www.stepenergyservices.com/

Appendix

11

Recent Developments – Q3 2017 Results

1 See "Non‐IFRS Measures". 2 An operating day is defined as any coiled tubing and fracturing work that is performed in a 24 hour period, exclusive of support equipment. 3 Represents total owned HP, of which 176,750 HP is currently operating and the remainder of which requires certain maintenance, rebranding and refurbishment.

12

High utilization, fracturing intensity growth and improved pricing have had a positive impact on Q3 2017

Quarterly Highlights

• Working capital of $122.1 million (incl. cash of $60.2 million) • Fracturing Services: Six active fracturing spreads throughout the

quarter, resulting in average active HP of 176,750 HP vs. 100,000 HP in Q3/16.

• Canadian Coil: 12 coiled tubing spreads active throughout the quarter.

• U.S. Coil: Six coiled tubing spreads active in the Permian, Eagle Ford and Haynesville throughout the quarter.

• Capital Program: $115 million approved for 2017 and $109 million approved for 2018. • Upon completion of the 2018 capital program, STEP expects to

have an operating fleet of 11 fracturing spreads, representing approximately 305,000 HP and 16 coiled tubing spreads in Canada, and 11 coiled tubing spreads in the U.S.

Actual Company Results for Q3 2017

($000's except per day, units, days and HP)Three Months

Ended Sept 30, 2017

N ine Months

Ended Sept 30, 2017

Revenue $175,537 $398,967Net Income $28,575 $40,167Adjusted EBITDA1 $50,043 $87,621Adjusted EBITDA %1 29% 22%

Total fracturing operating days2 472 1,105Fracturing revenue per operating day $252,912 $241,964Fracturing capacity (HP):

Average active HP 176,750 151,750Exit active HP 176,750 176,750Total HP3 297,500 297,500

Total coiled tubing operating days2 1,250 3,022Coiled tubing revenue per operating day $44,930 $43,546Coiled tubing capacity:

Average active coiled tubing units 17 15Exit active coiled tubing units 18 18Total coiled tubing units 18 18

Coiled Tubing At A Glance

13

STEP’s Coiled Tubing Units Are Capable of Servicing Deeper, Complex Formations • What is coiled tubing? A coiled tube is a long steel pipe that is transported on a reel and straightened when utilized. Coiled tubing services are

primarily used in the completion of new wells or enhancement of existing wells • Evolution of coiled tubing. The first coiled tubing unit was developed in 1962 for well cleanouts. In 2016, an estimated 1,951 coiled tubing units exist

worldwide, with the majority developed before 20101. The recent advancement of deep resource plays (Montney, Duvernay, Deep Basin, Permian, Eagle Ford) and horizontal pad drilling has increased the demand for deeper, dynamic coiled tubing units

• What is coiled tubing used for today? Over the last five years, coiled tubing has advanced from traditional well servicing (cleanouts, interventions) to being an integral part of the initial completions process. It is now commonly utilized for milling plugs, annular fracturing, and recompletions

Conventional Coiled Tubing Unit (<1,500m of <2” CT) STEP’s Ultra-Capacity Coiled Tubing Spread (<6,800m 2-7/8” CT)

• A conventional coiled tubing unit would be limited in servicing deeper formations. – Advancement of industry plays and increased requirements

result in these conventional units to be largely obsolete in the completions process

• STEP’s ultra‐capacity spread is designed to handle up to 7,900m of 2‐5/8” coil or 6,800m of 2‐7/8” coil. – Deeper, high pressure, complex formations require dynamic

coiled tubing units capable of servicing extended reach depths – STEP’s coiled tubing units are designed to service the deepest

wells in North America 1 ICoTA, Worldwide CT Unit Count for 2016 (March 2016).

• Nine in‐basin field service centres • Two lab facilities

14

STEP at a Glance

• Integrated provider of coiled tubing and fracturing solutions with a technical focus on deeper, more challenging plays

• Blue‐chip client base of well‐capitalized E&Ps with positions in prolific resource basins

• Two‐time recipient of the Top Safety Culture™ Award

• Diversified supply chain and established infrastructure with access to Northern White and domestic sand via multiple transload sites

• 297,500 HP (209,000 HP deployed) • 19 coil spreads (13 in Canada, six in the

U.S.)

• Motivated management team with extensive industry experience

• Over 1,100 professionals and growing

• Ensure people, equipment, chemicals and proppant are in the right place at the right time

• Interconnected equipment • Proprietary products such as STEP‐PLEX™ • Global IP suite

• Permian • Eagle Ford • Haynesville

• Cardium • Viking • Shaunavon

Services

Supply Chain

Facilities

Safety

Equipment

Professionals

Clients

Technology

Logistics

Basin Exposure

• Montney • Duvernay • Deep Basin