In its Q1 2025 earnings call, STEP Energy Services confirmed the formal termination of its U.S. fracturing division—marking a significant shift in the company’s operational focus.

This decision follows several quarters of underperformance in the U.S. market, including a CAD 32 million net loss in Q4 2024 and an additional CAD 4 million loss in Q1 2025. Despite a brief uptick in revenue to CAD 14 million last quarter, the U.S. unit failed to meet return expectations and faced increasing cost pressure from market conditions and tariffs.

By exiting this business line, STEP is streamlining into a single operating segment and reallocating select U.S. assets—such as Tier 4 frac equipment—into the Canadian market. This supports STEP’s growth strategy in gas- and liquids-rich basins like the Montney and Duvernay, where long-term contracts, LNG-driven momentum, and record sand volumes are driving strong returns.

The company is also doubling down on innovation, introducing Canada’s first 100% natural gas-powered NGx fracturing pump—positioning STEP as a leader in low-emission completions technology.

“We’re not deploying new assets until the price cycle justifies it—but we’re ready,” said CEO Steve Glanville.

With LNG Canada set to ship its first cargo in June and STEP’s Canadian operations running at high utilization, the company is making a clear bet: Canada is where the margin—and momentum—live.