SUSTAINABILITY REPORT 2020 03 CONTENTS

General Disclosures...... 04 01 Message from the President & Chief Operating Officer...... 05 Organizational Profile...... 06 Our Sustainability Strategy...... 08 Economic Impact & Stakeholder Relations...... 09 ESG Materiality Assessment, Opportunities & Risks...... 10 Reporting Practices...... 11

Governance...... 12 02 Corporate Governance...... 12 Executive Compensation & Shareholder Alignment...... 14 Diversity & Inclusion...... 16 Ethics & Integrity...... 18 Cybersecurity...... 19

Health & Safety...... 20 03 Policies, Practices & Procedures...... 21 Emergency Response...... 24

Environment...... 26 04 Air Emissions...... 28 Water, Spill Prevention & Waste Management...... 30 Land Management, Surface Impact & Wildlife Considerations...... 32 Asset Integrity & Resilience...... 34

People...... 36 05 Talent Attraction & Retention...... 37 Training & Development...... 38 Community Engagement...... 42 Community Investment Highlights...... 44

Reporting Data...... 46 06 Forward Looking Statements...... 48 05 MESSAGE FROM OUR PRESIDENT & COO

Ensign is an organization built on continuous 01 improvement - a learning organization. We believe we can always do better, be better, and know more. Sustainability, to Ensign, means practicing better ways of operating through every facet of our business—to the benefit of our employees, our customers, our communities, and our shareholders.

The past year is a testament to the importance of learning and continuously improving in the face of significant challenges that have impacted our operations, our employees, and the communities we live and work in around the world. I want to express our deep gratitude to our employees who have excelled during a very challenging year for our company and our industry, by demonstrating an unwavering commitment to safety, operational excellence, and service quality.

Early in March 2020, in response to the then-emerging COVID-19 pandemic, we quickly implemented rigorous measures across our global operations to ensure the safety of our operations, the health of our employees, and the continuity of our business. We are proud to report that Ensign has experienced zero operational or business disruptions related to a positive COVID-19 case of an Ensign employee. “Sustainability, to Ensign, In addition, our “COVID-19 Action Plan” was adopted as the means practicing better ways Canadian oilfield industry standard and best practice by the of operating through every Canadian Association of Oilfield Drilling Contractors. facet of our business—to the Over the past decade, the commitment by the oil and natural benefit of our employees, our gas services industry to innovation and development has been customers, our communities, a story that is often overlooked. Our industry has achieved improved technical and environmental performance, including and our shareholders.” a smaller environmental footprint for every well drilled today as compared to a decade ago.

Today, the advanced technology on Ensign’s drilling rigs has resulted in an ability to bring on 10x the production than the similar drilling rigs of ten years ago were capable of. Robert H. Geddes Wells that once took 60-70 days to drill now take less than — President & COO GENERAL 20 days to complete. This improvement has been achieved largely through the utilization of more advanced machinery, processes, and technology. The technical innovation required to achieve such a step-change in operational and DISCLOSURES environmental performance is a flagship example of the incredible innovation being developed and deployed by oil and natural gas service companies.

We’ve accomplished much as an industry and Ensign is proud to be a part of this legacy. Notwithstanding these achievements, Ensign continues to commit to improving and increasing the efficiency of its operations. 06 07

Today, we have active operations in eight ORGANIZATIONAL countries with 227 drilling rigs and 99 well-servicing rigs. PROFILE

We are one of the world’s leading land-based drillers and well-servicing providers for crude United States oil, natural gas, and geothermal wells.

Venezuela

Australia

Ensign Energy Services Inc. (“Ensign”) is an industry leader in the delivery of oilfield services. We are one of the world’s leading Argentina providers of land-based drilling and well-servicing services for crude oil, natural gas, and geothermal wells. The oilfield services we provide include drilling, well servicing, oil sands coring, directional drilling, underbalanced and managed pressure drilling, equipment rentals, and transportation. Ensign has grown through acquisitions, accumulating FLEET DISTRIBUTION an extensive equipment fleet characterized by Established in 1987, our operations currently extend from flexibility, fuel efficiency, and mobility for meeting International Canada the challenging demands of our customers. Today, Canada and the United States to Latin America, the Middle East, 18% 41% and Australia. Ensign’s operations are divided into three main we have active operations in eight countries with 227 geographic operating regions: drilling and coring rigs and 99 well-servicing rigs being marketed across those regions. • In Canada, we offer drilling and workover rigs, oil sands/ coring rigs, directional services, well servicing, underbalanced We have also contributed to advancements in drilling and managed pressure drilling, and equipment rental and well servicing through the innovative use of services. Our Canadian business spans the four western our Ensign EDGE® technology suite and have an USA Canadian provinces of British Columbia, Alberta, established reputation for the highest safety standards 41% Saskatchewan, and Manitoba, and includes the Northwest and environmental stewardship. Territories and the Yukon.

• In the United States, we offer drilling and workover rigs, directional services, well servicing, and equipment rental services. We operate predominantly in the Rocky Mountain region, the southern region, and the states of California, New Mexico, North Dakota, Pennsylvania, and South Dakota. 1987 1994 2002 • Internationally,we currently offer drilling and workover rigs in Ensign incorporates as a Ensign enters the U.S. oilfield Ensign enters the international arena with Argentina, Australia, Bahrain, Kuwait, Mexico, Oman, United company and is soon operating services market with the the acquisition of an Australian oil company Arab Emirates, and . four drilling rigs and two well acquisition of a 19-rig company with 23 drilling rigs and five workover rigs in service rigs in Alberta, Canada. operating in the Rocky Australia, Southeast Asia, the Middle East, Mountain region of the U.S. Africa, South America, and New Zealand. 08 09

OUR SUSTAINABILITY ECONOMIC IMPACT STRATEGY & STAKEHOLDER

What does sustainability mean to a drilling company? RELATIONS

Our sustainability practices are built on the Our role begins within the communities we operate foundation that solid governance, capital in, whether that be the cities and towns in which we stewardship, consideration for our environment, and FEEDBACK have office locations or the large number of smaller supporting our people will lead to long-term value towns and remote areas all over the world where creation for our business, for our customers, for our We believe in on-going we conduct our field operations. Our organization shareholders, and in our communities. engagement with our employees, contributes to the social and economic prosperity our shareholders, and all Ensign of the communities within our operating regions stakeholders. At face value, drilling may seem inconsistent with as a responsible employer, through community investment, and the overall economic contributions the idea of sustainable development. We drill wells www.ensignenergy.com of our business. Our goal remains to support our into the ground to extract non-renewable energy [email protected] communities through profitable and sustainable for our customers. Sustainability is important Head Office: Canada operations. to our business because it is the practices and 400 – 5th Avenue SW, Suite 1000 processes we have in place to run a safe, efficient, Calgary, Alberta T2P 0L6 Drilling is the starting point of the oil and natural gas and profitable business. Our sustainability practices 403-262-1361 value chain. Each one of our operating land drilling ensure we establish and legitimize our social license rigs supports approximately 175 direct and indirect to operate, benefiting our communities by creating jobs across industries, including manufacturing, jobs, contributing tax dollars to the economy, and transportation, hospitality, apparel, and financial supporting long-term community investment. services*. We are a vital part of the oil and natural gas energy industry that supports our global economies and quality of life in those regions and beyond.

An important part of our operating activities is stakeholder engagement. We regularly engage Global energy needs are 175 with our stakeholders, including our employees, evolving, and we need community members and organizations, government Jobs created by one drilling rig, representatives, trade organizations and associations, innovative solutions as we across multiple industries and our shareholders. transition to a net carbon- neutral economy. Effective stakeholder engagement contributes to Ensign’s social license to operate, positive relationships for our customers, and successful We need to be progressive, cost-efficient, and execution of our operations. Our stakeholder 2,985 engagement starts in many of the rural communities carbon-competitive. We work to be a part of in which we operate and continues up to dialogue that energy transition, exploring opportunities Total Ensign Employees as with our Board of Directors through regular in geothermal drilling, hybrid technologies, and of December 31, 2020 shareholder communication, advisory votes, and carbon sequestration projects. In the meantime, Ensign’s annual meetings. you will find our practices, detailed in this report, to deliver traditional oilfield services in a non-traditional way, as efficiently as possible with absolute resolve to minimize our impact $547m on the environment.

Total Employee Salaries, * Reference: Canadian Association of Oilwell Drilling Contractors, Wages & Benefits in 2020 Media Relations Webpage at caodc.ca/media 10 11

ESG MATERIALITY ABOUT THIS ASSESSMENT, REPORT OPPORTUNITIES

This report is published on June 7, 2021, with respect & RISKS to the year 2020. Unless otherwise stated, the data presented in this report is as of year-ended December 31 of the applicable year.

Our business and our industry have each evolved We approach our sustainability practices first through Within this report, the terms, the “Company”, the over the years and continue to evolve in response to identification, then prioritization, and ultimately con- “Corporation”, “our”, “we”, “us”, “Ensign”, and other the world’s global energy needs and climate change tinually improving performance. Ensign has identified similar terms refer to Ensign Energy Services Inc. impacts. As a company, we understand sustainability the following sustainability issues as material to our considerations are critical to our long-term success. business based on the likelihood of occurrence, the We’ve engaged internal and external stakeholders, risk to our business, and the opportunity for perfor- Unless otherwise stated, the data presented in this industry associations, and we continually review man- mance. The sustainability issues and practices re- report is consolidated and includes operating data datory and voluntary regulations and standards to viewed in this report are not an exhaustive or static for the entire Company including all its subsidiaries. assess the materiality of sustainability considerations list but highlight key areas of current focus for Ensign. All financial data is stated in Canadian dollars unless relevant and important to our business. otherwise stated. For more information on Ensign’s financial performance and disclosures, please refer to Ensign’s annual and interim financial statements available on our website at www.ensignenergy.com and ENVIRONMENT HEALTH & SAFETY PEOPLE SEDAR at www.sedar.com.

• Air Emissions • Water, Spill, Waste • Talent Management This report contains forward-looking statements • Health & Safety TOPIC Management • Training & Development and information in relation to Ensign’s outlook, • Emergency Response • Land Management • Community Engagement expectations, or beliefs relating to future operating • Asset Integrity activity, events, and performance. Please refer to the Forward-looking Statements in this report for more As an oilfield services information. The talent of our people company, the nature of our and the competency of our Climate change concerns and work exposes us to significant workforce is a critical factor low-carbon considerations health and safety risks. An for our business. A failure to continue to be top of mind, inability to manage these RISK attract and retain capable drive regulatory changes, risks could result in loss of leaders to effectively lead REPORTING PRACTICES and impact the value of our life, injuries, illness, significant and train our workforce services. impacts on our operations, can significantly impact the regulatory action, and Our industry continues to communicate and discuss success of our business. reputational harm. sustainability, environmental, social, and governance considerations. There are several reporting standards, including the Global Reporting Initiative (“GRI”) and Continue to be part of the Meet and exceed industry Be a competitive employer, evolving energy transition best practices that maintain invest in our workforce GRI index, Task Force on Climate-Related Financial OPPORTUNITY through technology innovation our workforce safety and development, and support Disclosures (“TCFD”), and Sustainability Accounting and exploration of low carbon/ contribute to operational leadership with competent Standards Board (“SASB”). We align our sustainability carbon offsetting alternatives. performance. teams. reporting with recommendations and elements from these three reporting standards. We will continue to Maintain a culture of safety, Alternative fuels/energy Develop and support a diverse amend and adapt to the reporting requirements of strong HSE leadership, robust sources and operational and and competent workforce safety processes, effective our industry to communicate and report effectively on emissions efficiencies driven through training and career ENSIGN training, and effective Ensign’s sustainability practices and performance. by technology initiatives. development opportunities. emergency management. Pages: 26 - 35 Pages: 36 - 45 Pages: 20 -25 13

BOARD FISCAL INTERNAL PRIORITIES RISK MANAGEMENT STRATEGY RESPONSIBILITY CONTROLS & OVERSIGHT OVERSIGHT & OVERSIGHT AUTHORITY

Independent Female Average Board Board Meeting 02 78% Members 11% Members 99% Attendance

BOARD OF DIRECTORS Responsible for stewardship of Ensign

CORPORATE HEALTH, SAFETY GOVERNANCE, COMPENSATION AUDIT COMMITTEE & ENVIRONMENT NOMINATIONS & RISK COMMITTEE COMMITTEE COMMITTEE

Responsible for the financial Composed entirely of Responsible for Ensign’s Responsible for Ensign’s oversight of Ensign, financial independent directors, human resources programs global health, safety and risk and control related the CGNR committee is and practices, talent environment strategy, activities, including our responsible for Ensign’s attraction and retention, policies, practices, and financial reporting and corporate governance succession planning, and procedures. disclosure, internal accounting practices, board and our executive compensation controls, procedures, and committee composition, and philosophy, policies, and practices. structure. programs.

NAME & MUNICIPALITY OF DIRECTOR SINCE PRINCIPAL OCCUPATION RESIDENCE N. Murray Edwards October 1989 Investor and Corporate Director St. Moritz, Switzerland Robert H. Geddes March 2007 President and Chief Operating Officer of Ensign Calgary, Alberta, Canada Gary W. Casswell December 2017 Independent Businessman Montgomery, Texas, USA James B. Howe President, Bragg Creek Financial Consultants Ltd. June 1987 Calgary, Alberta, Canada (financial consulting) Len O. Kangas June 1990 Independent Businessman CORPORATE Red Deer, Alberta, Canada Cary A. Moomjian Jr Principal of CAM OilServ Advisors LLC (consulting, November 2014 Frisco, Texas, USA expert witness, dispute resolution, training) John G. Schroeder June 1990 Independent Businessman GOVERNANCE Calgary, Alberta, Canada Gail D. Surkan March 2006 Independent Businesswoman Red Deer, Alberta, Canada President and Chief Executive Officer of Enduring Ensign’s Board of Directors is responsible for the stewardship of the Company, Barth E. Whitham March 2007 Resources, LLC (energy resource exploration and Denver, Colorado, USA including oversight over the management of the business, monitoring corporate development) objectives and opportunities, and mitigating risks to our business. Member of the Audit Committee Member of the Compensation Committee Ensign’s Board of Directors currently has four Committees and nine Directors, Member of the Corporate Governance, Nominations & Risk Committee Member of the HSE Committee seven of whom are independent. Ensign’s Information Circular, available on our website at www.ensignenergy.com and SEDAR at www.sedar.com, provides comprehensive information on Ensign’s governance philosophy, practices, and processes. 14 15

EXECUTIVE COMPENSATION & SHAREHOLDER Ensign’s executive compensation philosophy and ALIGNMENT strategy is designed to attract, retain, incentivize, and ultimately reward our leadership to deliver

In this report, we highlight a few of the key (as adjusted) and the cap on the aggregate strong performance that is aligned with our governance practices and philosophies amount of performance share unit awards at 2% corporate strategy, Ensign’s company values, and regarding our compensation. However, we of EBITDA (as adjusted). strongly believe in being transparent and delivers value to our shareholders. providing comprehensive disclosure regarding An important part of our engagement with our compensation practices and application. our Shareholders is our non-binding, advisory Therefore, we encourage a review of our latest “Say on Pay” vote. Our Board believes that Information Circular for further information on this advisory vote will continue to support Ensign’s executive compensation. Ensign in its dialogue with our Shareholders about governance and other matters relating One of the main principles of our compensation to executive compensation. In 2020, 80.3% philosophy is a robust pay-for-performance of the shares voted in favour of our executive strategy with a meaningful portion of compensation approach. our executive’s total compensation tied to corporate performance, business unit In addition to our compensation philosophy, safety, and personal performance. Corporate Ensign believes in a strong, long-term performance objectives include financial alignment with our shareholders. As a result, performance, enhanced shareholder returns, the company has a robust share ownership operating results, and non-financial metrics requirement of its executive management. including health, safety, and environmental results.

Furthermore, Ensign reinforces alignment of company performance with executive compensation, with a cap on the aggregate amount of cash bonuses at 3% of EBITDA

Executive Level Ownership Requirement

Chairman 4x annual consulting fee

President & Chief Operating Officer 4x base salary

Chief Financial Officer, Executive Vice Presidents, 2x base salary and Divisional Presidents

Senior Vice Presidents and Vice Presidents 1x base salary 16 17

Ensign is committed to advancing women and supporting diverse backgrounds DIVERSITY & INCLUSION: in leadership roles through its talent management, learning development, and BOARD DIVERSITY, MANAGEMENT DIVERSITY succession planning processes.

GENDER DIVERSITY Ensign’s Board Diversity strategy centers Women Men on merit and a qualifications-based method. In considering candidates for both Board and executive officer appointments, the Board considers primarily skill, knowledge, experience, business Management requirements, gender, age, and individual character, as it believes this approach is in the best interest of the business and SKILLS & EXPERIENCE our shareholders. These characteristics in the current Board are also considered, to ensure that a range of characteristics and SECURITIES & CAPITAL MARKETS qualities are present across the Board as a whole. RISK MANAGEMENT

Our diversity policy provides that the Board CGNR Committee, which is responsible for LEGAL recommending director nominees to the Board, will consider candidates on merit, based on a balance of skills, background, HSE experience, and knowledge. The committee will take into account diversity HUMAN RESOURCES GEOGRAPHIC DIVERSITY considerations such as gender, age, and ethnicity, to ensure the Board benefits Canada USA Other from a broader range of perspectives and COMPENSATION relevant experience.

Ensign has not adopted specific targets INTERNATIONAL EXPERIENCE regarding the representation of women on its Board of Directors. While diversity is FINANCIAL EXPERTISE Management an important consideration, Ensign cannot commit to select a Board candidate whose gender is a decisive factor above all other INDUSTRY SPECIALIST considerations. However, by continuing to foster opportunities for development and STRATEGIC PLANNING promotion at all levels of the Company, Ensign’s objectives of diversity are continually being pursued. SENIOR LEADERSHIP EXPERIENCE

Board BOARD DIRECTOR EXPERIENCE 18 19

ETHICS & INTEGRITY

Operating transparently and ethically is key to maintaining the ANTI-CORRUPTION & ANTI-BRIBERY longevity of our business and delivering consistent, long-term Ensign is committed to conducting its businesses in value to our shareholders. accordance with all applicable laws, rules and regulations, and the highest ethical standards. We have developed a comprehensive Anti‐Bribery and Anti‐Corruption Policy aimed at preventing and monitoring corruption and CODE OF CONDUCT BUSINESS ETHICS HOTLINE educating our workforce concerning our commitment to full compliance with legal and ethical standards in this regard. Ensign’s Code of Conduct reflects our global Since 2015, Ensign has had in place an independent, commitment to operating our business with integrity. third-party Business Ethics Hotline. Anyone can Our policy reiterates our commitment to full compliance by Our Code of Conduct outlines our ethical standards, confidentially, anonymously and with a strict no Ensign, and that of its directors (when they are acting on applicable laws, and the expectations of our directors, retaliation policy, report any suspected illegal, behalf of the Company), officers, employees, contractors, officers, employees, contractors, and consultants. Our unethical conduct or breach of our policies. Reports consultants, or third parties acting on behalf of the Code of Conduct includes topics such as employment can be online, by email, by mail, and by phone in over Company, with Canada’s Corruption of Foreign Public standards, conflicts of interest, and the treatment of 150 languages. Officials Act (“CFPOA”), the U.S. Foreign Corrupt Practices confidential information and trading in the Company’s Act (“FCPA”), and any applicable local anti-bribery or Ensign is committed to shares, to foster conduct of the Company’s business The Chair of our Audit Committee reviews and anti-corruption laws. This policy supplements our Code of conducting its businesses Conduct and all applicable laws and provides guidelines for in a consistently ethical and legal manner. Each oversees investigations of alleged breaches of the in accordance with all Director, all employees, contractors, and consultants Code of Conduct together with management where compliance with the CFPOA, FCPA, and applicable Ensign are required to abide by the Code of Conduct as a appropriate. Business Ethics Hotline activity is policies. applicable laws, rules and condition of their employment or engagement with reported to the Board of Directors every quarter. regulations and the highest All Ensign employees, upon onboarding, complete Ensign. ethical standards. No material reports were filed in 2018, 2019, 2020, e-learning Code of Conduct and Anti-Bribery & Anti- Ensign’s complete Code of Conduct is available on or in 2021 up to the date of this report regarding Corruption modules. Existing employees as well as all our website www.ensignenergy.com and SEDAR at any conduct of a Director or executive officer that members of the Board of Directors complete these modules www.sedar.com. constitutes a breach of our Code of Conduct. on either an annual basis (office personnel and Directors) or every three years (field personnel).

CYBER SECURITY Intrusion & WE ARE We live in a data-driven world and we harness Secure Content Detection Prevention DEFINED BY OUR our data to drive our analytics and decision- Management making. Cybersecurity is the protection of our • Antivirus UNWAVERING • Antispyware computers, data, networks, and programs. COMMITMENT • Web Filtering Ensign has implemented and standardized a • Messaging TO OPERATING unified cyber threat management program Security SAFELY, across our global operations to prevent and Cyber Threat RESPONSIBLY, respond to any risk to our everyday operations Management AND ETHICALLY. and protect our digital environment for our employees and customers.

Our program ensures the education of our global staff, prevention of data breaches, rapid Firewall & VPN response to any incidents, and protection of • Firewall our data in the office and at well-site. • Virtual Private Network (IPsec and SSL VPN) 21

The goal of our HSE program is simple: zero safety and environmental incidents and zero injuries - Drive to Zero. 4 1 Driving to Zero at Ensign means believing that every incident REVIEW is preventable and focusing on the operational discipline to PLAN achieve zero incidents and injuries.

Our Driving to Zero goal is a “decision to change” – change behaviour and the way things are done to ensure safety is always at the forefront for every action taken by every employee. We 3 are a learning organization that continues to take lessons learned EXECUTE 2 for every task, operation or plan, and learn from them so we can 03 continuously improve. The continuous improvement cycle for COMMUNICATE Ensign is broken down into four phases: Plan – Communicate – Execute – Analyze.

1 PLAN Effective planning is the key to success in all aspects of our operations. It is also how we ensure that we effectively incorporate lessons learned from previous After-Action Reviews. Through our Job Specific Analysis (“JSAs”) and Rig Specific Operating Procedures (“RSOPs”), we define and communicate expectations under normal or non-normal operating conditions. We confirm how we share tasks, clarifying roles and responsibilities. We ensure full understanding and agreement on the sequence of actions to take place. Before any work is done, we confirm and verify that all tasks are understood, and potential hazards are mitigated through assessments. At Ensign, starting work is not Step #1. We plan, communicate, and then execute.

2 COMMUNICATE ENCAAP: ENSIGN’S COACH, ASSIST & ASSURE PROCESS EnCAAP is a tool to improve communication between our leaders and their teams to better execute core tasks consistently and effectively. It requires that teams effectively engage with each other when they plan tasks and transition to work to ensure safe execution.

3 EXECUTE LIFE SAVINGS RULES (“LSRs”) HEALTH & Ensign recognizes the importance of emphasizing critical or high‐risk tasks to prevent or reduce the number of serious injuries and fatalities. Ensign’s LSRs, recommended by Energy Safety Canada, are an oil and natural gas industry standard, establishing a consistent and reliable approach for preventing serious injuries and fatalities. The use of standardized LSRs will not SAFETY only improve our operational performance through safety communication and consistent work practices but strengthen understanding and accountability in our multi-language and multicultural settings. We are committed to protecting our people, our communities, our equipment, and the environment in which we work and live. It is a commitment that is in the STOP WORK AUTHORITY best interests of our employees, our customers, and all Ensign stakeholders. At Sometimes the most important work we can do is to stop working especially when something Ensign, every employee is a leader and takes ownership when it comes to health doesn’t align with our life-saving rules. and safety. When we operationalize safety, we follow the following principles:

• We comply with all applicable laws and relevant industry standards of practice 4 REVIEW • We continuously evaluate the HSE aspects of our equipment and services AFTER ACTION REVIEW & LESSONS LEARNED AAR It is essential for our employees to learn from their mistakes, capitalize on their successes, and ENSIGN’S • We believe that effective HSE management is good business and we are AFTER share lessons learned across the organization. Our After-Action Reviews ensure we incorporate ACTION committed to the continuous improvement of HSE management practices REVIEW these lessons learned in the next plan, task, or operation. PROCESS 22 23

To ensure consistency and reliability operations overall as evidenced by in the execution of our HSE program, our continually improving safety 31% we have our robust Global Risk performance. A direct result of Management System (“GRMS”). the effectiveness of these actions Improvement in our In 2021, we work to continue Total Recordable Injury GRMS captures data from all our is measured by the improvement Rate from 2019 operations so performance metrics we see with two common lagging can be trended, shared, and analyzed statistics, our Total Recordable Injury this positive momentum. down to rig level, ensuring every Rate (“TRIR”) and Lost-Time Injury Ensign employee in every location Rate (“LTIR”). While TRIR records around the globe is actively engaged every recordable incident that occurs 67% in best in class safety accountability on-site, LTIR is a good proxy measure and practices. for the severity of incidents, with Improvement in our more severe incidents requiring Lost Time Injury Rate Our focus at Ensign has evolved and more days the worker is absent and from 2019 we are focused on leading indicators increased lost time. to drive performance. Our success is driven by mitigating the inherent Year-over-year we’ve continued Every year, we launch an annual risks associated with our tasks and to deliver new records for our Operational Excellence Focus intervening when we see unsafe organization, not only with decreases campaign designed to bring our behaviour or hazardous conditions. in the number of recordable incidents senior leaders, front-line leaders, In everything we do, we mitigate but with decreases in the severity of and our global workforce together risks through our procedures. Our incidents that occurred. to re-align on the prevention of processes and procedures have incidents and injuries. resulted in an increasingly safety- aware workplace culture and safer This year, we acknowledge the challenges the previous year had on our workforce and industry. These challenges created a lot of “background noise” and 1.6 Million Manhours 16 with such noise, it is easy to be LTIR Frequency distracted and lose the situational 1.4 14 awareness that is critical to our TRIR Frequency operations. With this in mind, our 1.2 12 Ensigns Operational Excellence Focus for 2021 is Eliminate the Noise – Focus on the Task. Our 1 10 campaign is designed to support our employees by giving them 0.8 8 the tools to heighten situational awareness and avoid distractions, 0.72 0.6 6 so Ensign can continue to deliver world-class, industry-leading MILLION MAN HOURS 0.4 4 results.

0.2 2 0.10 INJURY FREQUENCY (200,000 MAN HOURS) 0 0 2016 2017 2018 2019 2020

* TRIR is defined as all injuries or illness that requires medical *LTIR is defined as any injury/illness that requires medical attention attention, result in work restrictions or the worker being absent and results in the worker being absent from work beyond the day from work. It is expressed, in keeping with industry standards, as of the incident/illness. It is expressed, in keeping with industry the number of injuries/illnesses per 200,000 work hours. This figure standards, as the number of lost-time injuries/illnesses per 200,000 represents 100 people working 40 hours a week for 50 weeks a year; work hours. This figure represents 100 people working 40 hours for example, an incidence rate of 1 indicates that 1 out of 100 people a week for 50 weeks a year; for example, an incidence rate of 1 is likely to be injured each year. indicates that 1 out of 100 people is likely to be injured each year. 24 25

EMERGENCY ENSIGN’S COVID-19 RESPONSE RESPONSE COVID-19

Globally, we have a responsibility to do our part to help GLOBAL PANDEMIC PREVENTION & RESPONSE GUIDE: manage the impact of the novel coronavirus (“COVID-19”) pandemic, mitigate the spread of this virus and keep The COVID-19 pandemic continues to evolve. Our initial response was our employees, families, and communities safe. Ensign’s effective in mitigating COVID-19 risks to our employees. As a learning operations play a vital role in supplying global energy. organization, we have a duty to continue to adapt and update our response As such, our operations and workforce are considered to reflect COVID-19’s evolving situation. We continue to update our essential services. We have taken several measures to comprehensive pandemic guide to focus on renewed prevention efforts and ensure our essential operations and employees work in safe case management with the latest information from health authorities across environments. 1 the globe.

We have successfully partnered with our clients across the globe to support each other to ensure we effectively manage the health and safety of our workers and the entire COVID-19 ACTION PLAN (DECISION TREE): operation. The potential for positive COVID-19 cases among our workforce continues to increase. We have implemented a renewed and standardized process and action plan to effectively case manage employees that exhibit signs or symptoms of COVID-19. Our process supports the health and safety of our entire workforce and ensures we have zero impact on our operational 2 effectiveness. Today, we continue to monitor the CRISIS MANAGEMENT & EMERGENCY RESPONSE TEAMS: Our crisis management and emergency response teams stay current with any jurisdictional changes from federal, provincial, or state authorities. Our groups are focused on risk mitigation and business continuity across evolving environment to respond our operating regions, resulting in a proactive mindset that focused on delivering the tools our employees need to be successful in the office and effectively, adapt accordingly, and 3 the field continue to keep our operations HEALTH HUB:

We have developed an internal website that is a source of truth and and communities safe. resources for our employees. Health Hub includes COVID-19 training, Standards, Posters, FAQs, and much more, that not only our employees can use but extend to their families as well.

Ensign Safety Meeting, 4 February 2021, Argentina 27

ENSIGN IS AN INTEGRAL PART OF THE OIL AND NATURAL GAS SUPPLY CHAIN, DRILLING WELLS AS SAFELY, 04 EFFICIENTLY, AND CLEANLY AS POSSIBLE.

Our customers, oil and natural gas exploration and production companies, determine if and when to complete the well and extract the natural gas and oil resources. Our customers manage, measure, and report on any greenhouse gas emissions as a result of their overall operations, including drilling and completing the well for production. Many of the environmental risks associated with oil and natural gas production fall outside of our reporting scope as a service company. However, we have the ability and more importantly GEOTHERMAL the responsibility to our customers and communities to design, modify, and deliver new technologies that minimize the impact of our operations on the Ensign has been a leader in geothermal environment. drilling since the early 2000’s having drilled some of the world’s longest geothermal wells in New Zealand and Indonesia. In From when we show up on-site to when we leave, , Ensign has drilled numerous our commitment is to operate in a clean, safe, and geothermal wells in California, Nevada, environmentally responsible manner with full adherence and Utah and is an active participant in to our industry’s safety and environmental laws and geothermal policy and technical development. regulations. Furthermore, every employee who works at one of our field locations is required to complete a mandatory Wellsite Environmental Protection training course prior to showing up on-site.

Our commitment has led us to develop robust environmental practices and innovative technologies that minimize environmental impacts while improving our operational performance. Our EDGE technology, in particular, enables us to drill safer, faster, and reliably at the optimal performance that in turn utilizes resources ENVIRONMENT most efficiently, reducing waste and emissions.

Today, the majority of our fleet are electric Automated CARBON SEQUESTRATION From when we show up on-site to when we leave, our commitment is to operate Drilling Rigs (“ADR”). Our electric ADRs are smaller than in a clean, safe, and environmentally responsible manner with full adherence to other drilling rigs in the same horsepower category, and our industry’s safety and environmental laws and regulations. through efficiencies, reduce the overall time, energy, Ensign has drilled carbon sequestration wells and resources needed to drill a well. This results in less for carbon capture from large industrial plants, contributing to continued reduction in surface impact and overall lower emissions. In addition, CO2 emissions from mining operations. our ADRs require, on average 40-50% fewer loads, to move the rigs from operation to operation, resulting in fewer trips and reduced trucking emissions. 28 29 AIR EMISSIONS

The fuel we use to power our rigs is the predominant contributor HYBRID RIG INNOVATION to greenhouse gas emissions. As a result, we have focused our In 2014, we drilled the world’s first commercial land well with environmental efforts to improve our fuel efficiency and overall a hybrid rig, powered by natural gas generators and batteries/ operating efficiency resulting in less fuel consumption and supercapacitors. We’ve continued to invest in this technology reduced emissions. over the years to enhance our operational performance while reducing air emissions.

In 2019, we completed a successful test of our next-generation hybrid drilling rig technology, powered by natural gas generators While the majority of our fleet today runs on diesel fuel utilizing and a battery energy storage system. This technology was the most current, fuel efficient diesel generators, we continue applied to Ensign Rig #162 in our United States fleet, which to provide fuel alternatives, such as bi-fuel or dual-fuel (utilizes resulted in greenhouse gas emissions reductions of between 45- a combination of diesel and natural gas) and natural gas for our 55%, including an 80% reduction in NOx emissions and 90% less 25% drilling rigs. 25% particulate matter when compared to a diesel-powered rig. Reduction in greenhouse gas Reduction in greenhouse gas emissions by using bi-fuel • By switching to bi-fuel, on average, we reduce our emissions by using bi-fuel Currently, we only have one hybrid rig across our global fleet; greenhouse gas emissions by approximately 20-25% when however, any of our electric AC ADRs can be easily upgraded to compared to traditional diesel-powered rigs. Today, we run on hybrid power. have 29 bi-fuel-powered rigs across our fleet. 02 • By switching to natural gas, on average, we reduce our greenhouse gas emissions by approximately 35-45% when 45% compared to traditional diesel-powered rigs. Today, we have four natural gas-powered rigs across our fleet. Reduction in greenhouse gas emissions by using natural gas In addition, natural gas is a less refined fuel product than diesel. Cumulatively, the result of transitioning to natural gas or bi-fuel is less carbon dioxide produced as well as less organic compounds, such as nitrogen oxide, which has less impact on regional air quality. 26% Many of the areas we operate in are remote with limited fuel infrastructure, so the challenge to switching fuels is often a lack Total Ensign fleet equipped of infrastructure to support transporting the fuel to the site. with emission reducing technology or fuel alternative Where possible, we also have the ability to run our rigs on the electric grid, often referred to as “Highline” power whereby emissions decrease by almost 100%. Often the remote locations 03 we operate in do not allow us to utilize Highline power; however, all of our electric AC ADRs can be easily upgraded to be Highline capable as-needed. Today, we have 24 Highline powered rigs across our fleet.

Today, of the 227 rigs marketed globally, approximately 26% 50% of the fleet is equipped with some type of emission-reducing Reduction in greenhouse gas technology or emission-friendly fuel. To date in 2021, on emissions by using hybrid average, 22% of our active fleet operated on Highline, hybrid, technology bi-fuel, or natural gas power resulting in approximately 12,094 tons of CO2 saved. This equates to 2,630 cars being taken off the road for one year or 2,102 homes’ electricity use for one year.

01. Ensign Rig 770 in Alberta, Canada 02. Ensign Rig 143 in Alberta, Canada 03. Ensign Rig 966 in Queensland, Australia 01 30 31 WATER, SPILL

MOST PREVENTION & WASTE EFFECTIVE • Eliminate unnecessary resource consumption • Reduce waste generation and MANAGEMENT ELIMINATE / disposal REDUCE

Similar to air emissions on site, water, spills, and Our worksites have various Spill Prevention waste fall under the scope of our customers in terms Controls, Assessments, and Emergency Response of management, measurement, and reporting. It is Plans to minimize and mitigate the risk of a spill • Re-use waste resources our responsibility to deliver exceptional execution of or leak occurring. In the event of a leak, spill, or without further manufacturing our policies, standards, and procedures to eliminate release, all worksites have Spill Containment and unnecessary waste, utilize our resources effectively, a RSOP in place for the containment and recovery RE-USE and prevent spills. of spills. Specifically, spills are managed through a fluid-specific decision matrix, whereby each We manage our water, waste, and spills in product follows a specific treatment, recovery, accordance with regional regulatory requirements, disposal, and documentation and reporting industry standards, and our robust Rig Specific procedure. The procedures and controls ensure Operating Procedures (“RSOPs”). Requirements and our operations mitigate the risks of our operations processes may vary slightly from region to region on the environment, minimize the impact on the • Recycle waste resources to make the same or different however, the key principles remain the same: environment, and in the event of an environmental products incident ensure it is handled properly to prevent RECYCLE 1. Prevention, Reduction & Elimination any long-term or permanent effects. 2. Respond & Recover 3. Re-use & Recycle

• Recover waste resources We manage waste

RECOVER following the RESPOND & RECOVER principles of Ensign’s PREVENTION, Recover waste resources. Treat Waste Management REDUCTION & waste before disposal. Dispose Hierarchy of ELIMINATION of waste only if there is no viable alternative. Control, with the Protect the native flora, • Treat waste before disposal overarching goals fauna and biodiversity in all sphere of operations. TREAT of waste avoidance Avoid the pollution of and reducing land, water and air. Avoid disturbance to known sites and eliminating of archaeological, historical, unnecessary natural, and scientific significance. Reduce and resource eliminate unnecessary • Dispose of waste only if RE-USE & RECYCLE there is no viable alternative consumption. waste. Re-use waste resources DISPOSAL without further manufacturing. Recycle waste resources to make the same or different LEAST products. EFFECTIVE 32 33

CASE STUDY: Ensign Rig #550 Huntington Beach, California

In 2012, Ensign engineers designed and built Rig #550 for operations in Huntington Beach, California. Our customer wanted it to look like other concealed rigs, which typically drill in densely populated or environmentally sensitive areas, where surrounding communities may be sensitive to visual appeal, noise, light, and air pollution.

Rig #550 is completely encased in walls that reduce any noise from our operations and conserve visual appeal in the area. The Rig’s lighting also uses soft yellow lights instead of typical white lights to reduce any light pollution or sky glow. In addition, 01 #550 runs on local Highline, electric power, further reducing noise pollution LAND MANAGEMENT, and eliminating air emissions. The rig also operates with a strict no-noise policy between 7 pm and 7 am. Additional sound walls are also brought in if anything needs SURFACE IMPACT & to be repaired on the rig.

Rig #550 has drilled 31 wells since being WILDLIFE deployed in the Huntington Beach area. Wells are usually drilled in 1800 feet intervals and the rig is walked from CONSIDERATIONS wellhead to wellhead.

02 With the shift to horizontal drilling, our ADR® X-Y We continue to operate in several urban walking drilling rigs allow for efficient pad‐drilling. and suburban environments because Pad-drilling reduces the overall surface impact to drill and complete multiple wells in a single location. of the successful consideration and Pad-drilling also reduces the number of constructed mitigation of any light, noise, and odour lease roads and less truck traffic as the multiple- that may result from our operations. well locations are eliminated. Ultimately, it enables our customers to produce more energy per acre of Some of the techniques we utilize to mitigate land utilized, aiding land reclamation efforts and noise include sound management foam barriers, conserving biodiversity in the area. sound mitigate panels, sound attenuation blankets and tarping, Teflon coatings, and hospital-grade, 01. Ensign Rig 550 pictured fully encased in noise modified exhaust systems to mitigate noise and reducing walls in California, USA odours. We utilize soft yellow lights instead of 02. Ensign Rig 550, viewed just off Huntington Beach, California, USA the typical white lights to not disturb suburban 03. Interior view of Ensign Rig 550 located in communities and wildlife. California, USA 03 34 35 ASSET INTEGRITY & RESILIENCE Our asset management strategy is built upon the belief that running well-maintained equipment directly impacts our performance, our environmental impact, and the safety of our people.

When maintained properly our rigs run at peak performance, at the highest safety standards, and as cleanly as possible.

We ensure our fleet is well maintained Today, the average age of our fleet through (1) our Asset and Maintenance Management Program and (2) our Design across our global operations is 10 and Engineering Program. years. The average life span of a rig

MAINTENANCE & ASSET MANAGEMENT DESIGN & ENGINEERING PROGRAM is between 20-25 years, making ours PROGRAM The drilling industry has a long history of a relatively young fleet requiring Ensign’s Asset Management System (“EAM”) improvement, wells that once took 60-70 days to monitors equipment health and the condition of drill now take less than 20 days to complete. We’ve our global fleet through a web of drilling recorders, accomplished much as an industry and Ensign is less maintenance and utilizing newer sensors, and visual inspection data. We harness proud to be a part of this legacy. the knowledge gained in efficiency, safety, and We design our equipment to be safe, efficient, and and more efficient components, as performance by utilizing the reliability data available practical. An example that highlights our engineering from our global fleet. This information empowers strategy is how we engineer our drilling rigs to rig us to implement and adjust the preventative up and down. Our goal is to mobilize, move, and compared with older equipment. maintenance activities to operate equipment demobilize our rigs as effectively as possible, using optimally. The overall result: we use the optimal less energy and minimizing waste. In particular, we amount of resources, reducing waste without engineered a dolly system in our mast to keep the compromising asset integrity or safety. component in one piece for moves, eliminating the An example that highlights our optimized use of need for multiple trucks. resources is our Oil Analysis Program. Through As mentioned earlier in this report, one of the oil analysis, we have customized the oil life and major step changes in our industry was the shift to longevity for specific equipment resulting in cost horizontal drilling capability leading to pad drilling, savings and environmental waste savings. whereby we can drill multiple wells in one location Furthermore, through our EAM system, we able minimizing surface impact. With the shift to pad to continuously optimize and enhance our fuel drilling, came X-Y walking systems. Designing, efficiency by following best practices for equipment engineering, and upgrading our rigs with walking operation and maintenance. We can detect when systems, not only improves the efficiency of well-to- our components are utilizing more energy than they well moves but reduces the air emissions involved in should to operate efficiently. We can then respond mobilizing equipment from well-to-well. Previously, and rectify any issues before they become a wasteful multiple cranes and trucks, with additional trucking component resulting in cost and energy savings. roads to the site, were utilized to move equipment from well-to-well. 37 TALENT ATTRACTION & RETENTION We employ thousands of people around the world, actively hiring local and always 05 ensuring safety as the utmost priority.

Our best performance is delivered workforce. Similar to our board when our employees are engaged, diversity mandate, our goal is empowered, and provided on- to select the best individual for going learning opportunities. the job, considering merit, skills, 19% That is why our talent strategy background, experience, and and human resources programs knowledge. Women in Director Level are built on a foundation of Positions and Up development. At Ensign, we aim Ensign consistently supports to build leaders and provide women in strategic and senior- career paths to ensure we attract level positions. From a total and retain top talent. headcount perspective, the majority of our field employees We believe in enhancing are male. Field positions are technical competency through physically demanding and involve 10% a robust training program, as hard labour, often at remote Women in Vice President well as supporting professional and/or camp locations for the Level Positions and Up development through leadership duration of a rotation or hitch. and career opportunities. Women hold 19% of director-level We believe when technical management positions and 10% of training and competency are vice-president level management supported with behavioral and positions at Ensign. soft skill development, we build robust crews who drive peak performance.

We are an equal opportunity employer, that believes and supports a diverse and inclusive

PEOPLE

Our success as a company is driven by our employees, both in the field and in the office. Across our global regions, we employ thousands of people, actively hiring locally, and aiming to attract hardworking and high-performing talent. 38 39

TRAINING & DEVELOPMENT At Ensign, we value quality training. It is a key element of our human resources strategy and HSE program.

The majority of our global workforce operates in approximately 80 courses over one year, equating to the field, running our equipment and executing our approximately 120 training hours. Furthermore, on processes. Through digitization and our tier-one average, only 23% of these courses are regulatory Learning Management System, we know that when requirements by law, the majority of our training is our crews mobilize, our people are well-trained, Ensign-mandated. We invest in our employees to capable, experienced, and ready to excel. Ensign ensure they have the skills for the safe execution believes quality training for our people means quality of their job and the foundation for their career service for our customers. development. BEHAVIOURAL Leadership is fundamental to our success. Supporting the Our field crews go through incredibly robust training We focus our training and development across four development of leadership and soft skills, Ensign’s behavioural before showing up on site. The number of training complementary areas: Behavioural, Health, Safety and courses focus on our core leadership competencies such as hours will fluctuate depending on position and region Environment, Technical, and Systems. We deliver our accountability, communication, conflict management, adaptability, of operation where there are different regulatory training through methods that best serve the topics initiative, financial acumen, and decision quality. requirements. However, to put the depth of training and objectives, including online training, in-person into context, when looking at Driller to Rig Manager coaching, on-the-job field training, and stimulation positions, on average, our employees will complete emergency response training. HEALTH, SAFETY, ENVIRONMENT Our HSE training guarantees our workforce is Rig Pass Certified and exceeds all regulatory and Ensign mandatory requirements. Beginning with our comprehensive HSE Induction, we aim to BUILDING A SOLID FOUNDATION. develop Ensign’s positive safety culture where safe work is second nature. Our complement of courses provides training on As individuals progress, we shift focus across the four our policies, procedures, and incident management, ultimately HSE Systems Technical Behavioural training areas to build off each foundation developed: ensuring our workforce goes home safe and healthy.

INDIVIDUAL CONTRIBUTOR TECHNICAL Leading self Ensign’s Global Skills Standard (“GSS”) is our core competency development program, ensuring a minimum level of technical and practical skill at every position. Our GSS operates as a continuous FRONT LINE LEADERS improvement program whereby we train, measure, assess and Leading/guiding others. Directly manage individual contributors and take responsibility for day to day operations review at every level ensuring a competent workforce. In addition, our technical development includes EDGE rig automation and analytics training, as well as maintenance courses MIDDLE MANAGEMENT to ensure our rigs maintain quality, consistency, and service. Manage others and are responsible for determining specific tactics to reach goal

SYSTEMS SENIOR MANAGEMENT At Ensign, our systems are tools that allow us to be effective, Manage leaders and support / execute on strategies for the division/function/organization efficient, and responsive. Our host of comprehensive platforms include, among others, Microsoft Dynamics, Global Risk Management System, Pason, Learning Management System, STRATEGIC LEADERS and our Enterprise Asset Management System. Systems training Set strategies for the division/function/organization and contribute to shaping the strategic vision for the organization courses focus on system knowledge and proficiency to utilize our platforms to their full capacity. 40 41

CASE STUDY:

Performance Drillers Technical

We select drillers who are consistently in the top quartile of our common performance metrics, including connection times, tripping speed, and average footage drilled per day. These drillers are trained in physics-based drilling practices (ExDrill Program) and collaborate with our EDGE team for six months to gain a comprehensive working knowledge of our automation technology. The training enables them to fully maximize our technology to the highest capacity by recognizing and responding effectively to various downhole dysfunctions at the drill bit. They can then utilize our tools and technology effectively to address them. We further leverage our performance drillers by rotating them on other rigs to train and coach our drillers, integrate our technology on the ground level and produce great results for our customers. Since introducing our performance driller program, EDGE adoption and utilization have increased from below 25% to almost 100%. At Ensign, we value quality training. In the race to drill deeper, faster, and safer, we aim to build an adaptable, capable and safe workforce and develop strong, strategic, and accountable leaders. OUR PEOPLE:

Leadership Spotlight on Steve Harris Rig Manager - Well Service Rig 1161, Alberta, Canada

In 2020, an operator that we conduct business for experienced a very unfortunate fatality. A worker entered the dungeon area to adjust the crown saver on the draw works without isolating the energy within the area. A co-worker, not realizing that a member of the crew was performing this task, energized the equipment resulting in a fatality.

Even though this incident had not occurred on one of our rigs, our Rig Manager Steve Harris took the initiative to prevent a fatality such as this from occurring again. Steve worked with our Global Engineering Department to design, engineer, and install a crown saver adjustment tool that eliminates the requirement for personnel to enter this area for the operation. Steve’s device will forever prevent a fatality like the one described above from ever occurring on an Ensign well servicing rig. Steve showcased his style of leadership, learning from this tragic outcome, regardless of the event not having occurred on one of our rigs. 42 43 COMMUNITY ENGAGEMENT Ensign strives to be a dedicated partner within the many communities in which we live and operate.

Ensign provides support in many ways including financial assistance, in-kind contributions, product donations, volunteer hours, and event sponsorships.

Ensign’s Community Investment Program is centered on three pillars:

• Local community and industry support • Youth development • Healthy and safe living

Key factors that play a role in determining which of the many worthy organizations receive support are:

1. Alignment with Ensign’s values and culture 2. Long-term, sustainable, and positive impact 3. Geographic alignment to Ensign’s operating regions

We also support industry and professional associations and not-for-profit organizations, including the Canadian Association of Oilwell Drilling Contractors (“CAODC”), the International Association of Drilling Contractors (“IADC”), American Institute (“API”), Society of Petroleum Engineers (“SPE”), Association of Professional Engineers and Geoscientists of Alberta (“APEGA”), and American Association of Drilling Engineers (“AADE”).

Through our industry and professional association support, we have sponsored numerous events supporting post-secondary education and scholarships directed to Petroleum Engineering students and STEM (Science, Technology, Engineering & Math) scholarships. We firmly believe that contributing to local For five years and counting, one of our US Vice communities goes well beyond our day-to-day Presidents volunteers with the University of business operations. Mississippi teaching the drilling portion of a Petroleum Geology class. 44 45

COMMUNITY INVESTMENT VOLUNTEER ACTIVITIES Annual Toy Drives across our office locations, supporting: HIGHLIGHTS • DePelchin Children’s Center, a foster care and adoption agency. DePelchin serves the most vulnerable children and families throughout Texas and works to break the cycles of abuse and neglect.

MAJOR PARTNERSHIPS • Miriam Jamison Children’s Center, a 24-hour temporary shelter care facility for abused, neglected and exploited SHOCK TRAUMA AIR RESCUE SERVICE (STARS) FOUNDATION children in Kern County, California. Since 1993, Ensign has supported STARS operations. STARS air ambulatory • Seniors Secret Service provides gifts to isolated seniors, services support critical patients across Western Canada with bases in Calgary, who live alone with no close family relatives in the Calgary Edmonton, Grande Prairie, Regina, Saskatoon, and Winnipeg. community.

AMERICAN CANCER SOCIETY • Marine Toys for Tots. This Denver program collects new, 01 unwrapped toys and distributes them to less fortunate American Cancer Society is a nationwide organization dedicated to eliminating children during Christmas. cancer by funding and conducting research, sharing expert information on treatment and prevention as well as supporting cancer patients. • High Sky Children’s Ranch, a not-for-profit organization that offers therapy for children and youth as well as adoption and FAMILY PROMISE OF MIDLAND foster services. Family Promise of Midland is an organization targeting homelessness in the Texas communities through shelter support, extensive case management, transitional Annual Food Bank Drives supporting the Veterans Food Bank housing, and low-interest loans to support education and family support. and the Inn from the Cold, both organizations located in Calgary, Alberta. The Veterans Food Bank helps serve hundreds of ALBERTA CHILDREN’S HOSPITAL RESEARCH INSTITUTE veterans in the community and is a resource center for Canadian The research institute supports the Alberta Children’s Hospital, supports child and Allied veterans in Calgary. The Inn from the Cold is an health, research, specialized life-saving equipment, and advanced pediatric emergency shelter for the homeless in the Calgary community as research and education. Located in Calgary, the Alberta Children’s Hospital is the well as providing supportive housing arrangements. largest public hospital for sick children across the prairie provinces of Canada. 02

VARIETY AUSTRALIA: THE CHILDREN’S CHARITY Variety Australia is a children’s charity that supports sick and disadvantaged children through a wide range of support services, including home care support including medical and mobility equipment, education scholarships, and special needs sports programs.

UNITED WAY OF CALGARY & AREA The United Way supports community health by responding to social needs and In May 2020, Ensign donated 1,000 KN95 providing social services including homelessness, basic need support, domestic masks to the Texas Children’s Hospital in violence, mental health, education, and employment opportunities along with Houston, USA. financial stability resources.

NORTH COLORADO MEDICAL CENTER FOUNDATION North Colorado Medical Center Foundation provides support for hospital projects, including expansion, specialized medical equipment, and upgrades to patient care.

DENVER CHILDREN’S ADVOCACY CENTER 01. Ensign participating in the Kern County Energy Denver Children’s Advocacy Center works to prevent child abuse, support Festival in Bakersfield, California. families through a wide range of services including community outreach, rapid 02. Ensign Staff in Calgary, Alberta sorting response and treatment, and integrated services. through food donations at the YYC Veterans Food Bank. 47

GOVERNANCE

2018 2019 2020

Independent Directors (%) 78% 78% 78%

Average Age of Directors 67 68 69

Average Director Tenure 18 19 20

Average Board Meeting & Committee Attendance (%) 100% 99% 99% 06REPORTING DATA Annual Election of Directors Yes Yes Yes Board Diversity Policy Yes Yes Yes

Board Diversity (% Female) 11% 11% 11% Yes, Directors & Yes, Directors & Yes, Directors & Share Ownership Requirements & Policy Management Management Management Anti-Hedging Policy Yes Yes Yes

Say on Pay Yes Yes Yes ORGANIZATIONAL OPERATING & FINANCIAL PERFORMANCE* Shareholder Approval of Executive Compensation 90% 91% 80% (in thousands of Canadian dollars, except operating information) Approach Compensation Recoupment (“Clawback”) Policy Yes Yes Yes 2018 2019 2020 Number of Hotline Issues, % Resolved* - - - Revenue $1,156,283 $1,591,338 $936,818 * There has been no material issues/allegations of material breaches of our Code of Conduct, Canada $241,034 $293,333 $176,872 involving our Board of Directors or Executive Management for years 2018, 2019 and 2020.

United States $641,484 $1,004,627 $531,030

International $273,765 $293,378 $228,916 HEALTH, SAFETY & ENVIRONMENT

Adjusted EBITDA $256,828 $412,468 $241,525 2018 2019 2020 Drilling Operating Days (defined as contract drilling days, spud to rig release) Health & Safety Canada 6,002 8,949 5,599 Man Hours (million) 9.8 14.0 8.4

United States 14,173 24,802 10,899 Total Recordable Injury Rate (TRIR) 1.1 1.0 0.7

International 6,061 5,360 3,829 Lost Time Injury Rate (LTIR) 0.3 0.3 0.1

Well Servicing Operating Hours Serious Incidents & Fatalities 1 0 0

Canada 57,068 46,718 28,338 Environmental Incidents 5 23 11

United States 112,224 115,136 99,016 Environmental Incident Rate < 0.01% < 0.01% < 0.01%

Marketed Drilling Rigs at Year-End Type: Spill 100% 73% 73%

Canada 125 101 101 Damage - 27% 27%

United States 133 122 122 Impact: No Effect 20% 80% 100%

International 44 43 48 Short Term 80% 20% -

Marketed Well Servicing Rigs at Year-End Moderate Term - - -

Canada 62 52 52 Long Term - - -

United States 46 47 47 Permanent / Widespread - - -

* For more information on Ensign’s financial performance and disclosures, please refer to Ensign’s annual and interim financial statements available on our website at www.ensignenergy.com and SEDAR at www.sedar.com. 48 49

ASSET INTEGRITY & RESILIENCE reliance on forward-looking statements as there are cautioned that the lists of important factors 2018 2019 2020 can be no assurance that the plans, initiatives, contained herein are not exhaustive. Unpredictable or projections, anticipations, or expectations upon unknown factors not discussed in this Sustainability Average Age of Fleet - 8 Years 9 Years which they are based will occur, and actual results or Report could also have material adverse effects on Capital Expenditures $80,044 $136,006 $50,242 events could differ materially from those anticipated forward-looking statements. and described in the forward-looking statements. Upgrade & Growth $25,524 $95,778 $10,013 Although we believe that the expectations conveyed Maintenance $54,520 $40,228 $40,229 The forward-looking statements are based on current by the forward-looking statements are reasonable expectations, estimates, and projections about us and based on information available to us on the date such the industries in which we operate, which speak only forward-looking statements are made, no assurances as of the date such statements were made or as of can be given as to future results, levels of activity, PEOPLE the date of the report or document in which they are and achievements. Except as required by law, we contained. They are subject to known and unknown assume no obligation to update forward-looking 2018 2019 2020 risks, uncertainties, expectations, assumptions, statements should circumstances or our projections, and other factors that could cause actual results, anticipations, estimates, or opinions change. Employee Count 4,079 4,848 2,985 performance, or achievements to be materially % Office 10% 9% 11% different from any future results, performance, or achievements expressed or implied by such forward- NON-GAAP MEASURES % Field 90% 91% 89% looking statements. Such factors include, among This Sustainability Report contains references to others: general economic and business conditions % Female 3% 3% 4% Adjusted EBITDA. These measures do not have which will, among other things, impact demand any standardized meaning prescribed by IFRS and % Male 97% 97% 96% for and market prices of our services; economic accordingly, may not be comparable to similar conditions in the countries and regions in which Salaries, Wages & Benefits $588,865 $887,168 $546,723 measures used by other companies. The non-GAAP we conduct business; political uncertainty and measures referenced in this Sustainability Report % of Revenue 51% 56% 59% civil unrest; our ability to implement our business should not be considered as an alternative to, or strategy; impact of competition; availability and cost Management Diversity (% Female) more meaningful than, the IFRS measures from which of labour and other equipment, supplies and services; they are derived or to which they are compared. Director Level Positions & Up 15% 22% 19% operating hazards and other difficulties inherent The full definition and method of calculation of the in the operation of our oilfield services equipment; Vice-President Level Positions & Up 11% 9% 10% non-GAAP measures referenced in this Sustainability actions by governmental authorities; government Report are included in our full annual and interim regulations and the expenditures required to comply financial statements available on our website at www. with them (including safety and environmental laws ensignenergy.com and SEDAR at www.sedar.com. and regulations and the impact of climate change initiatives on capital and operating costs); and other circumstances affecting our business, revenues and expenses. FORWARD LOOKING STATEMENTS Our operations and levels of demand for our services Advisory Regarding Forward-Looking Statements have been, and at times in the future may be, affected by political risks and developments, and by national, regional, and local laws and regulations such as changes in taxes, royalties and other Certain statements in this Sustainability Report other things, the following: disclosure related to amounts payable to governments or governmental constitute forward-looking statements or information equipment demand, utilization or operating activity agencies and environmental protection regulations. (collectively referred to herein as “forward-looking levels, operating costs, capital expenditures, our Should one or more of these risks or uncertainties statements”) within the meaning of applicable business plans and strategy, expectations relating to materialize, or should any of our assumptions securities legislation. Forward-looking statements emissions reductions, expectations relating to safety prove incorrect, actual results may vary in material generally can be identified by the words “believe”, performance, the impacts and expected changes to respects from those expressed or implied by the “anticipate”, “expect”, “plan”, “estimate”, “target”, regulations, our expectations, beliefs, plans, goals, forward-looking statements. The impact of any one “continue”, “could”, “intend”, “may”, “potential”, objectives, assumptions, information, and statements factor on a particular forward-looking statement is “predict”, “should”, “will”, “objective”, “project”, about possible future events, conditions, operations, not determinable with certainty as such factors are “forecast”, “goal”, “guidance”, “outlook”, “effort”, results of operations or performance provided interdependent upon other factors, and our course “seeks”, “schedule” or expressions of a similar nature throughout this Sustainability Report. of action would depend upon our assessment of the suggesting future outcome or statements regarding future considering all information then available. an outlook. In particular, but without limiting the Forward-looking statements are not representations For additional information, refer to the “Risk Factors” foregoing, this Sustainability Report contains or guarantees of future performance and are subject section of our Annual Information Form for the 2020 forward-looking statements pertaining to, among to certain risks. The reader should not place undue year, available on SEDAR (www.sedar.com). Readers WE KNOW THE DRILL.

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