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