News Releases

CALGARY, ALBERTA - March 2, 2016 /CNW/ - Newalta Corporation ("Newalta") (TSX:NAL) today reported results for the three and twelve months ended December 31, 2015.

FINANCIAL HIGHLIGHTS(1)

			Three months ended December 31,						Year ended December 31,
($000s except per share data) (unaudited)			2015		2014		% Change		2015		2014		% Change
Continuing Operations(2)
Revenue			64,665		133,128		(51)		327,584		495,331		(34)
Divisional EBITDA(3)			16,834		48,793		(65)		100,078		195,545		(49)
	% of Revenue		26%		37%		(30)		31%		39%		(21)
Net loss from Continuing Operations(4)			(116,697)		(17,877)		n/m		(166,027)		(12,372)		n/m
	- per share ($) basic and diluted		(2.08)		(0.32)		n/m		(2.95)		(0.22)		n/m
Adjusted net earnings (loss)(4)			4,901		6,937		(29)		(4,463)		35,149		(113)
	- per share ($) basic adjusted(4)		0.09		0.12		(25)		(0.08)		0.63		(113)
Adjusted EBITDA(4)			6,175		30,192		(80)		54,614		128,930		(58)
	- per share(4)		0.11		0.54		(80)		0.97		2.31		(58)
Cash from Continuing Operations			15,732		32,983		(52)		45,711		85,943		(47)
	- per share ($)		0.28		0.59		(53)		0.81		1.54		(47)
Funds from operations(4)			(10,936)		12,470		(188)		11,680		88,292		(87)
	- per share ($)(4)		(0.19)		0.22		(186)		0.21		1.58		(87)
Maintenance capital expenditures(4)			1,557		9,600		(84)		11,900		25,424		(53)
Growth capital expenditures(4)			5,277		69,700		(92)		63,047		146,428		(57)
Dividends declared			3,515		7,003		(50)		24,600		27,100		(9)
	- per share ($)(4)		0.063		0.125		(50)		0.438		0.486		(10)
Dividends paid			7,029		5,530		27		26,809		20,536		31
Weighted average Shares outstanding			56,237		56,003		-		56,221		55,802		1
Shares outstanding, December 31,(5)			56,237		56,026		-		56,237		56,026		-
Combined Operations(2)
Revenue			64,665		229,088		(72)		369,692		858,413		(57)
Net loss			(126,364)		(157,563)		(20)		(183,056)		(142,673)		28
	- per share ($) basic and diluted		(2.25)		(2.81)		(20)		(3.25)		(2.56)		27
Cash from Operating Activities			3,451		59,959		(94)		7,937		124,466		(94)
	- per share ($) basic		0.06		1.07		(94)		0.14		2.23		(94)
(1) Newalta's Consolidated Financial Statements are attached. References to Generally Accepted Accounting Principles (GAAP) are synonymous with IFRS and references to Consolidated Financial Statements and notes are synonymous with Financial Statements. All quarterly financial figures are unaudited.
(2) In Q1 2015, we completed the sale of our Industrial Division to Revolution. As a result, we have defined our Industrial Division as "Discontinued Operations", the remaining operations as "Continuing Operations" and the total Discontinued Operations and Continuing Operations as "Combined Operations". In accordance with the requirements of IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, income and expenses and cash flow provided and used associated with the business to be sold have been classified as Discontinued Operations in our Financial Statements for the periods presented.
(3) As a result of the change in our financial statement presentation from functional to nature based, we have reclassified the sales expense directly attributable to the divisions from Corporate and Other to the respective division. Prior period comparative figures have been amended to conform to current period's presentation. Please refer to "Reporting Structure" for the restated the historical segmented information and key metrics.
(4) These financial measures do not have any standardized meaning prescribed by GAAP and are therefore unlikely to be comparable to similar measures presented by other issuers. Non-GAAP financial measures are identified and defined throughout the attached Management's Discussion and Analysis.
(5) Newalta has 56,236,548 Shares outstanding as at March 2, 2016.

MANAGEMENT COMMENTARY

"2015 results were significantly impacted by the downturn in our industry, and Newalta responded progressively throughout the year to protect the balance sheet through cost savings and cash management initiatives," said John Barkhouse, President and CEO. "While our proactive run rate cost saving measures in 2015 of more than $40 million annualized partially offset the rapid pace of the downturn, we continue to take actions, including those taken in February 2016, that position our business to withstand a lower for longer oil price and activity environment."

Newalta will continue to proactively manage operating cash flow as part of its plan to maximize liquidity and flexibility. To that end, as announced in February 2016, Newalta suspended its quarterly dividend, reduced its capital spending budget and implemented additional cost rationalization actions. These new measures are anticipated to have a year over year positive impact on cash flow of approximately $40 million in 2016. To provide further flexibility in this challenging environment, Newalta proactively engaged with its lending syndicate to amend its credit facility. "Our principal objective was to present a conservative WTI oil price forecast of $30 for 2016 and $37 for 2017 to incorporate staged thresholds for Senior Debt to EBITDA and Interest Coverage covenants as well as to extend the waiver of our Total Debt to EBITDA covenant through Q1 2018," said Mr. Barkhouse.

"Despite depressed market conditions, I am encouraged by our resilience built upon our exceptional people, with deep expertise and commitment, our strong culture and our established safety excellence. The fact that 2015 was Newalta's safest year on record given the challenging environment reflects our sustained commitment to safety and operational excellence.

"2016 will be another challenging year with the prolonged market downturn expected to continue to impact our results. With our people and culture, we are prepared to meet these challenges by focusing on disciplined cash management and operational excellence. By preserving cash and keeping tight control over operating and capital costs, we will protect our balance sheet, survive, and be positioned to unlock significant torque as the markets we service recover."

FOURTH QUARTER & YEAR END RESULTS

Continuing Operations reflect the ongoing pure play environmental energy services business of Newalta and exclude the Industrial Division which was sold in the first quarter. Newalta's Continuing Operations include two divisions - Heavy Oil and Oilfield - a structure adopted in Q1 2015 to more closely align operations with customer activities, facilitate a seamless service package to customers, optimize our resource allocations, and aid in the execution of our growth strategies.

Continuing Operations

Q4 revenue and Adjusted EBITDA decreased 51% and 80%, respectively, to $64.7 million and $6.2 million compared to prior year. Performance in the fourth quarter of 2015 continued to be significantly impacted by fundamental industry changes. Factors at play in the third quarter persisted and were further exacerbated by an early shut down for the holiday season. Throughout the latter half of 2015, producers shut-in wells and minimized maintenance activities while continuing to review and defer projects and capital spending. As a result, there has been a reduction in waste volumes available in the market and lower oil content in waste received. Limited volumes available for processing in the market drove increased competition and competitive pricing actions. Production-driven volumes at our Canadian Oilfield Facilities and Heavy Oil Facilities decreased by over 45% and 15%, respectively.

To view the graph entitled "TOTAL FACILITIES PRODUCTION/DRILLING VOLUMES ('000 m3)", please visit the following link:image/2016+03+02+NewaltaImages.pdf

Historically, production volumes across our Oilfield and Heavy Oil facilities have comprised approximately 80% of total waste volumes processed, which provides earnings stability against reasonable fluctuations in price and drilling activity levels. However, severe declines such as we experienced in 2015 and previously in 2009, drive fundamental behavioural shifts that significantly impact production volumes.

In 2009, production volumes at our Oilfield and Heavy Oil facilities decreased approximately 20% compared to 2008, experienced almost exclusively at our Oilfield facilities. The severity and longevity of the current downturn has driven the same level of production volume decreases at our Oilfield facilities (40% declines), but has also impacted our Heavy Oil facilities to a similar degree (a 25% decrease in production volumes from prior year versus a 5% decline in 2009). As a result, total production volumes across our Oilfield and Heavy Oil facilities decreased 30% in 2015 over 2014 as compared to the 20% decrease in 2009 over 2008.

Production waste volumes drove $14.6 million of the $24.0 million decline in Q4 Adjusted EBITDA compared to prior year. The balance of the decline was driven by lower drilling activity, reduced contributions from growth capital, including returns from mining contracts, and crude oil prices ($9.2 million, 6.3 million and $3.5 million, respectively). These factors were partially offset by cost savings of approximately $9.6 million realized in the fourth quarter. Net loss from Continuing Operations for the quarter was $116.7 million compared to $17.9 million in the prior year driven by impairment costs and lower Adjusted EBITDA.

To view the graphs entitled "Q4 ADJUSTED EBITDA CAUSE OF VARIANCE ($millions)" and "2015 ADJUSTED EBITDA CAUSE OF VARIANCE ($millions)", please visit the following link: image/2016+03+02+NewaltaImages.pdf

In response to the severe decline in activity levels and crude oil prices, the following initiatives were actioned in 2015 to protect our profitability and balance sheet:

• We delivered on our cost rationalization program to drive annualized savings in excess of $40 million. Actions included the elimination of positions, office space consolidation and the suspension of the company-matching payments in our employee savings plans. In combination, we realized $9.6 million and $29.1 million in savings in the quarter and year, respectively.
• We conducted a review of underperforming operating locations and in areas where activity has declined, locations have either been suspended or turned into a feeder station / bulking station for larger processing facilities.
• We secured a waiver of our Total Debt to EBITDA covenant under our Credit Facility, in effect to June 2017. The waiver was granted based on the strength of our balance sheet, our effective working capital management and our strong Senior Debt to EBITDA ratio.
• We reduced our quarterly dividend from $0.125 to $0.0625 effective for the dividend payable to shareholders of record as of December 31, 2015.

Our contract model has performed well during this downturn, continuing to provide steady, predictable cash flow. These contracts generally are not tied directly to commodity price changes or drilling activity and provide a solid foundation for our business, particularly in depressed markets. In 2015, contracts represented 29% of our revenue. During the year, we completed construction of the second modular processing facility (MFT) plant at Shell Canada Limited's (Shell) Jackpine Mine and began MFT processing. We extended the contract at Syncrude's full-scale facility at Mildred Lake to March 2017. Our original Syncrude contract was put into hibernation in the fourth quarter.

In 2015, Adjusted EBITDA was $54.6 million, down 58% over prior year, reflecting the same factors as the quarter. Net loss from Continuing Operations was $166.0 million compared to $12.4 million in the prior year, reflecting the same factors as the quarter.

Q4 2015 and full year G&A decreased 43% and 32% to $10.7 million and $45.5 million, respectively. The improvement reflects the cost rationalization initiatives commenced in Q1 2015. We incurred $2.2 million and $30.3 million in restructuring and other related costs during the fourth quarter and full year, respectively. Costs were comprised of employee termination and other costs, advisory fees and non-cash onerous lease costs. Of the 2015 employee termination and other costs, 70% were in corporate overhead with the balance in operations.

Divisional Results

Heavy Oil revenue and Divisional EBITDA in the quarter decreased by 48% and 54%, respectively, to $29.3 million and $10.7 million compared to prior year. Contributions from both Heavy Oil Facilities and Onsite declined due to reduced activity in the heavy oil sector and lower crude oil prices. Decreased waste and recovered crude oil volumes at our facilities combined with lower crude oil prices accounted for over 50% of the decline in Divisional EBITDA. For the quarter, production volumes in the Heavy Oil facilities declined over 15%. Onsite contributions decreased as a result of lower revenue from the original Syncrude MFT contract, which entered hibernation in the fourth quarter, as well as decreased demand for in situ project work. Despite the Syncrude hibernation, contract revenue continued to provide predictable cash flow to our business, generating just over 60% of Heavy Oil revenue for the year.

In 2015, revenue and Divisional EBITDA decreased by 29% and 39%, respectively, compared to prior year. The decrease from Heavy Oil Facilities was driven by the same factors as the quarter with a greater impact from reduced production volumes.

In 2015, we made the following progress on our growth plans:

• Completed construction of the second MFT plant at Shell's Jackpine Mine and began MFT processing in the first quarter.
• Completed construction and commissioning of the Fort McMurray full-service facility to serve the oil sands in Q2.
• Signed an extension on the contract at Syncrude's full-scale facility at Mildred Lake in the third quarter.
• Completed commissioning and began operations late in the third quarter at our new modular processing facility (MPF) near Silver Lake, Saskatchewan.

Oilfield revenue and Divisional EBITDA in the quarter decreased 54% and 76%, respectively, to $35.4 million and $6.1 million, driven by lower contributions from both Oilfield Facilities and Drilling Services. Performance was impacted by drilling and production activity declines and increased competition for waste streams driven by severely depressed crude oil prices. Contributions from Oilfield Facilities were also dampened by reduced recovered crude oil sales as a result of lower crude oil prices and volumes recovered due to lower oil content in waste received.

In 2015, Oilfield revenue and Divisional EBITDA decreased 37% and 57%, respectively. Results were impacted by the same factors as the quarter with drilling activity having a greater impact on 2015 results. Crude oil prices accounted for approximately 16% of the decline in Divisional EBITDA.

In 2015, we made the following progress on our growth capital investments:

• Entered into a joint venture agreement with a midstream provider in Q2 for one commissioned modular processing facility, which is anticipated to be expanded to include a full-service offering to customers.
• Completed commissioning of the Alexander, North Dakota MPF in the Bakken early in Q1.
• Completed construction and commissioning at two new MPFs at Fox Creek and Gold Creek, Alberta in Q1.
• Completed construction of our Gold Creek Landfill and commenced operations early in Q4. The landfill is strategically located near our Gold Creek MPF to improve operational efficiencies and provide a seamless service for our customers.

Capital expenditures for the quarter and year ended December 31, 2015 were $6.8 million and $74.9 million, respectively. Our capital deployment was focused on strategic markets, with approximately 70% of our total 2015 investment incurred in the first half of the year to complete 2014 carry-over projects and strategic projects including the Fort McMurray facility.

Impairment for the quarter and year ended December 31, 2015 was $119.6 million and $134.4 million, respectively. In Q4, as a result of the sustained low commodity price environment and our corresponding near-term outlook, we impaired the carrying value of our assets by $119.6 million. We identified specific assets with a carrying value of $62.5 million (primarily within our Oilfield division and in Corporate) for which we no longer expect to recover their value through future operations. In addition, through cash generating unit value-in-use testing required under IFRS, we impaired a further $57.1 million ($40.5 million of goodwill and $16.6 in tangible assets) within our Oilfield division. This impairment in no way impacts our ability to realize upside with recovery in oil pricing and drilling activity.

Our Total Debt was $352.3 million as at December 31, 2015, which reflected a $119.9 million decrease over December 31, 2014. The Senior Secured Debt to EBITDA ratio was 1.44 in Q4 2015.

Discontinued Operations

In Q4 2015 Discontinued Operations net earnings before loss on sale was $0.7 million compared to net loss before loss on sale $139.7 million in the prior year. Q4 2015 results reflect customary purchase price adjustments. In 2015, net loss before loss on sale was $7.0 million compared to $130.3 million in the prior year. The decrease in performance was primarily driven by the timing of the sale in February. For the quarter and year, we have recorded pre-tax loss on sale of $13.5 million and $20.6 million, respectively.

2016 Credit Facility Amendments

On March 1st, 2016, we amended the terms of our credit agreement to, among other things, decrease the borrowing amount under our Credit Facility from $175.0 million to $160.0 million. Other key changes to the Credit Facility include:

• Our Total Debt to EBITDA covenant waiver was extended to Q1 2018. 
• We have staged thresholds for our Interest Coverage and Senior Debt to EBITDA covenants as follows:

	Current	2016				2017				2018
	Threshold	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Thereafter
Senior Debt (maximum)	3.00:1	3.50:1	4.75:1	6.50:1	5.25:1	4.50:1	4.50:1	3.00:1	3.00:1	3.00:1	3.00:1
Interest Coverage (minimum)	2.00:1	1.00:1	1.00:1	1.00:1	1.00:1	1.00:1	1.00:1	1.50:1	1.50:1	1.50:1	2.25:1

• We have the ability to waive our Interest Coverage ratio at one quarter end during the period from January 1, 2016 to December 31, 2016.
• Beginning with the quarter ended September 30, 2017, EBITDA will be annualized for covenant calculation purposes; trailing six month EBITDA will be annualized for the quarter ended September 30, 2017; and trailing nine month EBITDA will be annualized for the quarters ended December 31, 2017 and March 31, 2018.

The revised terms of the Credit Facility provide increased financial flexibility to manage through a prolonged lower oil price and activity environment. We have also made additional adjustments to our covenant package to take into consideration the current economic environment in the industry, including a restriction on declaring dividends through the period ending March 31, 2018.

Dividends

In determining the dividend to be paid to our shareholders, the Board of Directors considers a number of factors, including: the forecasts for operating and financial results, maintenance and growth capital requirements, as well as market activity and conditions. After review of all factors, the Board declared $3.5 million in dividends or $0.0625 per share, paid January 15, 2015, to shareholders on record as at December 31, 2015.

In light of the current market environment and outlook, the Board of Directors suspended the quarterly cash dividend. This suspension represents $14 million in annualized cash flow savings.

The following section contains forward-looking information as it outlines our Outlook for 2016. Our Outlook is based on several key assumptions including growth capital contributions, commodity prices and activity levels of the industries we serve. Changes to these assumptions could cause our actual results to differ materially.

OUTLOOK

Our performance in 2015 was significantly impacted by the sharp drop in oil prices and activity levels in the oil and gas industry. The magnitude of this downturn is expected to continue to impact our results in 2016. In the first weeks of 2016, oil prices dropped below West Texas Intermediate (WTI) $30/bbl and drove incremental behavioural and market shifts. We anticipate that the prolonged market decline will result in a further reduction of production volumes and additional pricing pressure, with these factors being partially offset by additional savings from our rationalization initiatives.

Adjusted EBITDA in the first quarter of 2016 is expected to be lower than the fourth quarter of 2015. Low crude oil prices and activity declines will place downward pressure on our results. Contributions from our 2015 capital investment will be lower than previously expected. In Heavy Oil, Onsite contributions will be impacted by the hibernation of our original Syncrude MFT contract; if this contract remains in hibernation, our contract revenue as a percentage of total revenue will decline. We expect to realize approximately $1 million of savings in the first quarter from our cost rationalization actions taken in 2016.

The following table outlines the factors we expect to impact performance in the first quarter and full year.

Factor		Actual		Assumption		Expected impact on Adjusted EBITDA compared to prior year period(1)
		Q4 2015(1)		Q1 and Full year 2016		Q1 2016		2016
West Texas Intermediate (US$/bbl)		$42.04		Q1 2016: $30 2016: $25- $35
Canadian Light Sweet (CDN$/bbl)(2)		$52.49		Q1 2016: $40 2016: $40 - $50		$0.5M - $1M decrease		$3M - $5M decrease
Western Canadian Select (CDN$/bbl)(2)		$36.86		Q1 2016: $30 2016: $30 - $40		$0.5M - $1M decrease		$3M - $5M decrease
Drilling activity(2) decline		~50%		Q1 2016: 0% - 10% 2016: 10% - 15%		$5M - $7M decrease		$12M - $18M decrease
Step Change(3)		($20.9M)				$10M - $11M decrease		$12M - $22M decrease
Savings from cost rationalization		$9.6M		$10M 2015 carry forward		$4M - $5M increase		~ $20M increase
				$10M 2016
Adjusted EBITDA Guidance						($3M) - $2M		$25M - $45M
(1) M refers to millions.
(2) Impact derived from annual sensitivities based on 2016 forecast performance and volumes outlined in the "Sensitivities" section. The actual impact from crude oil prices may vary with fluctuations in volumes.
(3) This factor is expected to have an impact on our performance through the year, and cannot be quantified on any linear sensitivity.

The expected impact of crude oil prices on Adjusted EBITDA is derived from the change in crude oil price and annual recovered crude oil volumes. At current activity levels, we expect to recover fewer barrels of crude oil in 2016 compared to 2015. This decrease reduces our sensitivity to crude oil prices on an annual basis. For every $10 change in our Canadian benchmarks we expect a $5 million change in Adjusted EBITDA in 2016, compared to a $6 million change in 2015.

Crude oil prices

• Lower crude oil prices directly impact the value of the products we recover from waste. In 2015, crude oil prices dropped more than 40% compared to 2014. We anticipate oil prices to remain low for 2016.

Drilling Activity

• In 2015, drilling activity in areas where we operate declined over 50% from 2014. We anticipate drilling activity to remain depressed in 2016.

Step Change (production waste volumes, shifts in waste mix, customer pricing reductions, offset by returns from growth capital and operational efficiencies)

• The majority (85%) of step change is driven by the declines in production waste volumes available in the market and oil content in the waste received.
• In 2016, we expect heightened pricing pressure and lower production volumes to continue from 2015.
• We are working with our customers to bundle opportunities, partner through contractual relationships, collaborating with our suppliers and reducing our operating cost structure to mitigate the impact of pricing pressure.
• The severe decline in crude oil prices and activity has reduced contributions from growth capital. We expect this trend to continue in 2016.

Savings from Cost Rationalization

• To date, we have taken cost reduction and rationalization actions to drive in excess of $50 million annualized savings over 2014 levels.
• In 2016 we anticipate realizing $20 million in savings over 2015, $10 million realized as the full year impact of actions taken in 2015 and $10 million related to our 2016 actions.

Net Debt and Leverage

The waiver of our Total Debt to EBITDA covenant ratio, as well as the improved Senior Debt to EBITDA and Interest Coverage covenant thresholds under our Credit Facility provide us with additional flexibility to manage our balance sheet successfully during this downturn. Managing our debt leverage and use of our cash and capital are Management's highest priorities. We will remain within our debt covenants throughout the balance of the year.

Restructuring and Other Related Costs

Excluding onerous lease charges, we expect to incur approximately $5 million in restructuring charges, of which we anticipate $2 million will be paid out in 2016.

Capital Forecast

We reduced our 2016 budget on capital spending and will target capital expenditures of approximately $15 million, down from our previous guidance of $30 to $40 million. Maintenance capital will comprise approximately one third of the total capital spend.

Free Cash Flow Generation

We have proactively structured our business model for a "lower for longer" environment. Our rationalization initiatives, amended Credit Facility and suspension of dividends provide the liquidity and flexibility to operate in a sustained downturn. In 2016, we will manage cash flow to ensure our financing obligations are met and spending is minimized wherever possible. Tied to our WTI range of expectation for 2016, we anticipate being cash flow negative in the year. Beyond 2016, subject to partial recovery in oil price and activity levels, we will target positive Free Cash Flow generation after all cash financing, tax, and capital expenditures.

Customer Solutions

In addition to aggressively managing the internal business levers, we have continued to focus business development and sales on the pursuits of targeted customer opportunities. This approach is to leverage Newalta's extensive facility network, operating experience and modular assets to provide customers with a step change in cost efficiency and liability management.

Leverage on Recovery

Inherent in our business model is the capacity to leverage significant upside with recovery in oil pricing and activity levels. In a sustained $60 WTI environment with associated activity levels (using 2015 operating results as a base), we would expect Adjusted EBITDA to be in the range of $100 - $140 million, driven by the following factors:

• Commodity price impact of $6 - $8 million
• Drilling activity improvements between 10% - 40%
• A recovery of 10% - 40% of the non-linear Step Change impact
• 5% - 10% incremental return on $200 million growth capital investments from 2014 and 2015
• Benefit of our cost rationalization actions that support $20 million in Adjusted EBITDA savings, $10 million as a carryover from 2015 actions and $10 million from actions taken in 2016

To view the graph entitled "ADJUSTED EBITDA $60 WTI ($ MILLIONS)", please visit the following link:image/2016+03+02+NewaltaImages.pdf

Quarterly Conference Call

Management will hold a conference call on March 3, 2016 at 11:00 a.m. (ET) to discuss Newalta's performance for the quarter and year ended December 31, 2015. To participate in the teleconference, please call 416-340-2220 or toll free 866-225-6564. To access the simultaneous webcast, please visit www.newalta.com. For those unable to listen to the live call, a taped broadcast will be available at www.newalta.com and, until midnight on Thursday, March 10, 2016 by dialing 800-408-3053 and using pass code 4123055.

About Newalta

Newalta is a leading provider of innovative engineered environmental solutions that enable customers to reduce disposal, enhance recycling and recover valuable resources from oil and gas exploration and production waste streams. We simplify the critical challenges of sustainable environmental practices through the use of advanced processing capabilities deployed through a differentiated business model. We serve customers onsite directly at their operations and through a network of locations throughout North America. Our proven processes and excellent record of safety make us the first-choice provider of sustainability-enhancing services for oil and gas customers. With a highly skilled team of people, a two-decade track record of innovation and a commitment to commercializing new solutions, Newalta is positioned for sustained future growth and improvement. We are Sustainability Simplified™. Newalta trades on the TSX as NAL. For more information, visitwww.newalta.com.

The press release contains certain statements that constitute forward-looking information. Please refer to the section below "Forward-Looking Information", for further discussion of assumptions and risks relating to this forward looking information.

The Condensed Consolidated Financial Statements and MD&A, which contain additional notes and disclosures, are available on SEDAR atwww.sedar.com or our website at www.newalta.com under Investor Relations/Financial Reports.

SELECTED FINANCIAL INFORMATION

			Three months ended December 31,						Year ended December 31,
($000s except per share data) (unaudited)			2015		2014		% Change		2015		2014		% Change
Heavy Oil
Revenue			29,265		56,687		(48)		144,692		203,285		(29)
Divisional EBITDA(1)			10,715		23,352		(54)		55,194		90,681		(39)
- % of revenue			37%		41%		(10)		38%		45%		(16)
Revenue by Business Unit
	Facilities		37%		28%		32		28%		35%		(20)
	Onsite		63%		72%		(13)		72%		65%		11
Assets Employed(2)									275,967		261,191		6
Oilfield
Revenue			35,400		76,441		(54)		182,892		292,046		(37)
Divisional EBITDA(1)			6,119		25,441		(76)		44,884		104,864		(57)
- % of revenue			17%		33%		(48)		25%		36%		(31)
Revenue by Business Unit
	Facilities		75%		67%		12		72%		71%		1
	Drilling Services		25%		33%		(24)		28%		29%		(3)
Assets Employed(2)									466,803		513,304		(9)
Capital Expenditures
Maintenance capital expenditures			1,557		9,600		(84)		11,900		25,424		(53)
	Heavy Oil		834		2,587		(68)		7,149		8,185		(13)
	Oilfield		493		6,039		(92)		2,368		13,108		(82)
Growth capital expenditures			5,277		69,700		(92)		63,047		146,428		(57)
	Heavy Oil		798		29,846		(97)		23,652		62,578		(62)
	Oilfield		3,259		31,533		(90)		32,711		67,253		(51)
(1) Divisional EBITDA does not have any standardized meaning prescribed by GAAP.
(2) Assets employed is provided to assist management and investors in determining the effectiveness of the use of the assets at a divisional level. Assets employed is the sum of capital assets, intangible assets and goodwill allocated to each division. Assets employed as defined does not include capital assets held by corporate. Corporate assets include information technology and leasehold improvements.

CONSOLIDATED BALANCE SHEETS

(Expressed in thousands of Canadian Dollars)

			December 31, 2015		December 31, 2014
Assets
Current assets
	Cash		663		4,129
	Accounts and other receivables		49,508		104,945
	Inventories		4,202		7,681
	Prepaid expenses and other assets		4,009		9,150
	Assets held for sale		-		365,262
			58,382		491,167
Non-current assets
	Property, plant and equipment		774,284		804,024
	Permits and other intangible assets		408		498
	Other long-term assets		4,958		8,953
	Deferred tax asset		1,557		-
	Goodwill		19,894		60,443
TOTAL ASSETS			859,483		1,365,085
Liabilities
Current liabilities
	Accounts payable and accrued liabilities		80,031		170,541
	Dividends payable		3,515		7,003
	Liabilities held for sale		-		97,131
			83,546		274,675
Non-current liabilities
	Senior secured debt		57,141		183,104
	Senior unsecured debentures		271,568		270,837
	Other liabilities		1,228		1,973
	Deferred tax liability		-		43,180
	Provisions		105,899		68,410
TOTAL LIABILITIES			519,382		842,179
Shareholders' Equity
Shareholders' capital			426,061		422,991
Contributed surplus			12,454		10,916
(Deficit) retained earnings			(131,595)		76,061
Accumulated other comprehensive income			33,181		12,938
TOTAL EQUITY			340,101		522,906
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY			859,483		1,365,085

CONSOLIDATED STATEMENTS OF OPERATIONS & COMPREHENSIVE LOSS

(Expressed in thousands of Canadian Dollars except per share data)

			For the year ended December 31,
			2015		2014
Revenue			327,584		495,331
	Operating expenses		227,506		299,786
	General and administrative		45,464		66,615
	Depreciation and amortization		60,866		57,409
	Stock-based compensation (reversal of expenses) expense		(3,541)		6,453
	Restructuring and other related costs		30,316		6,975
	Impairment		134,397		19,402
	Finance charges		28,844		33,404
	Embedded derivative loss		392		14,691
Total expenses			524,244		504,735
Loss before income taxes			(196,660)		(9,404)
Income tax (recovery) expense			(30,633)		2,968
Net loss from continuing operations			(166,027)		(12,372)
Net loss from discontinued operations			(17,029)		(130,301)
Net loss for the year			(183,056)		(142,673)
Other comprehensive income:
Items that may be reclassified subsequently to consolidated statements of operations
	Exchange difference on translating foreign operations		20,243		8,755
Other comprehensive income			20,243		8,755
Total comprehensive loss			(162,813)		(133,918)
Loss per share:
	Basic and diluted from continuing operations		(2.95)		(0.22)
	Basic and diluted from discontinued operations		(0.30)		(2.34)
Loss per share for the period			(3.25)		(2.56)

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(Expressed in thousands of Canadian Dollars)

		Shareholders' capital		Contributed surplus		(Deficit) retained earnings		Accumulated other comprehensive income		Total
Balance, December 31, 2013		409,894		15,251		245,834		4,183		675,162
Changes in equity for year ended December 31, 2014
Expense related to vesting of options		-		2,643		-		-		2,643
Exercise of options		7,449		(6,978)		-		-		471
Issuance of shares		5,648		-		-		-		5,648
Dividends declared		-		-		(27,100)		-		(27,100)
Other comprehensive income		-		-		-		8,755		8,755
Net loss for the year		-		-		(142,673)		-		(142,673)
Balance, December 31, 2014		422,991		10,916		76,061		12,938		522,906
Changes in equity for year ended December 31, 2015
Expense related to vesting of options		-		2,970		-		-		2,970
Exercise of options		1,791		(1,432)		-		-		359
Issuance of shares		1,279		-		-		-		1,279
Dividends declared		-		-		(24,600)		-		(24,600)
Other comprehensive income		-		-		-		20,243		20,243
Net loss for the year		-		-		(183,057)		-		(183,057)
Balance, December 31, 2015		426,061		12,454		(131,596)		33,181		340,101

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Expressed in thousands of Canadian Dollars)

			For the year ended December 31,
			2015		2014
Cash provided by (used for):
Operating Activities
Net loss from continuing operations			(166,027)		(12,372)
Adjustments for:
	Depreciation and amortization		60,866		57,409
	Impairment		134,397		19,402
	Onerous lease		9,080		-
	Onerous lease paid		(3,036)		-
	Income tax (recovery) expense		(30,633)		2,968
	Income tax paid		(163)		(13)
	Stock-based compensation (reversal of expenses) expense		(4,728)		1,003
	Finance charges		28,844		33,404
	Finance charges paid		(20,232)		(29,820)
	Embedded derivative unrealized loss		392		14,691
	Other		2,920		1,620
Funds from Operations			11,680		88,292
Change in non-cash working capital			35,129		505
Decommissioning costs incurred			(1,098)		(2,854)
Cash from continuing operations			45,711		85,943
Cash (used in) from discontinued operations			(37,774)		38,523
Cash from Operating Activities			7,937		124,466
Investing Activities
	Additions to property, plant and equipment		(137,449)		(165,146)
	Proceeds on sale of discontinued operations		278,702		-
	Proceeds on sale of property, plant and equipment		882		1,497
	Other		6,775		(1,394)
Cash from (used in) continuing operations			148,910		(165,043)
Cash used in discontinued operations			(4,041)		(20,494)
Cash from (used in) Investing Activities			144,869		(185,537)
Financing Activities
	Issuance of shares		358		469
	Issuance of series 3 senior unsecured debentures		-		147,069
	Redemption of series 1 senior unsecured debentures		-		(125,000)
	(Decrease) increase in senior secured debt		(125,963)		65,968
	Decrease in bank indebtedness		-		(1,321)
	Dividends paid		(26,809)		(20,536)
Cash (used in) from continuing operations			(152,414)		66,649
Cash (used in) from Financing Activities			(152,414)		66,649
Effect of foreign exchange on cash			(3,858)		(1,449)
Change in cash			(3,466)		4,129
Cash, beginning of year			4,129		-
Cash, end of year			663		4,129

FORWARD-LOOKING INFORMATION

Certain statements contained in this document constitute "forward-looking information" as defined under applicable securities laws. When used in this document, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect", "potential", "strategy", "target" and similar expressions, as they relate to Newalta Corporation and the subsidiaries of Newalta Corporation, or their management, are intended to identify forward-looking information. In particular, forward-looking information included or incorporated by reference in this document includes information with respect to:

• future operating and financial results;
• business prospects and strategy including related timelines;
• capital expenditure programs and other expenditures;
• realization of anticipated benefits from the sale of the Industrial Division including the ability to reinvest the net proceeds of disposition in a timely and efficient manner;
• realization of anticipated benefits of growth capital investments, acquisitions, divestitures and our innovation and process development initiatives;
• realization of anticipated benefits from the implementation of cost rationalization initiatives including the anticipated value and sustainability of the cash savings from such initiatives;
• anticipated industry activity levels;
• anticipated commodity prices;
• expected demand for our services;
• expected expansion opportunities for our business;
• the amount of dividends declared or payable in the future;
• our projected cost structure; and
• expectations and implications of changes in legislation.

Expected future financial and operating performance and related assumptions are set out under "Outlook".

Such information reflects our current views with respect to future events and are subject to certain risks, uncertainties and assumptions, including, without limitation:

• strength of the oil and gas industry, including drilling activity;
• general market conditions;
• fluctuations in commodity prices for oil and the price we receive for our recovered oil;
• fluctuations in interest rates and exchange rates;
• financial covenants in our debt agreements that may restrict our ability to engage in transactions or to obtain additional financing;
• success of our growth, acquisition and innovation and process development strategies including integration of businesses and processes into our operations and potential liabilities from acquisitions;
• our ability to secure future capital to support and develop our business, including the issuance of additional common shares;
• the highly regulated nature of the environmental services and waste management business in which we operate;
• dependence on our senior management team and other operations management personnel with waste industry experience;
• the competitive environment of our industry in Canada and the U.S.;
• possible volatility of the price of, and the market for, our common shares, and potential dilution for shareholders in the event of a sale of additional shares;
• potential operational and safety risks and hazards, obtaining insurance for such risks and hazards on reasonable financial terms and potential failure of meeting customer safety standards;
• the seasonal nature of our operations;
• risk of pending and future legal proceedings;
• risk to our reputation;
• our ability to attract, retain and integrate skilled employees;
• open access for new industry entrants and the general unprotected nature of technology used in the waste industry;
• costs associated with operating our landfills; and
• such other risks or factors described from time to time in reports we file with securities regulatory authorities.

By its nature, forward-looking information involves numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and other forward-looking information will not occur. Many other factors could also cause actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking information and readers are cautioned that the foregoing list of factors is not exhaustive. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Furthermore, the forward-looking information contained in this document is made as of the date of this document and, in each case, is expressly qualified by this cautionary statement. Unless otherwise required by law, we do not intend, or assume any obligation, to update any such forward-looking information.

RECONCILIATION OF NON-GAAP MEASURES

This Management's Discussion and Analysis (MD&A) contains references to certain financial measures, including some that do not have any standardized meaning prescribed by International Financial Reporting Standards (IFRS or GAAP) and may not be comparable to similar measures presented by other corporations or entities. These financial measures are identified and defined below.

"EBITDA", "EBITDA per share", "Adjusted EBITDA", and "Adjusted EBITDA per share" are measures of our operating profitability. EBITDA provides an indication of the results generated by our principal business activities prior to how these activities are financed, assets are amortized or impaired, or how the results are taxed in various jurisdictions. In addition, Adjusted EBITDA provides an indication of the results generated by our principal business activities prior to recognizing stock-based compensation and restructuring and other related costs. Adjusted EBITDA provides improved continuity with respect to the comparison of our operating results over a period of time. Stock-based compensation, a component of employee remuneration, can vary significantly with changes in the price of our common shares (Shares), while restructuring and other related costs are outside of our normal course of business. Restructuring and other related costs are charges primarily attributable to cost rationalization initiatives. EBITDA and Adjusted EBITDA are derived from the consolidated statements of operations and comprehensive income. EBITDA per share and Adjusted EBITDA per share are derived by dividing EBITDA and Adjusted EBITDA by the basic weighted average number of Shares.

EBITDA and Adjusted EBITDA from Continuing Operations are calculated as follows:

			Three months ended December 31,						Year ended December 31,
($000s except per share data)			2015		2014		2015		2014
Net loss from Continuing Operations			(116,697)		(17,877)		(166,027)		(12,372)
Add back:
	Income tax (recovery) expense		(21,742)		(3,750)		(30,633)		2,968
	Embedded derivative (gain) loss		(10)		3,050		392		14,691
	Finance charges		7,953		6,753		28,844		33,404
	Impairment		119,603		19,402		134,397		19,402
	Depreciation and amortization(1)		15,063		20,252		60,866		57,409
EBITDA			4,170		27,830		27,839		115,502
Add back:
	Stock-based compensation (reversal of expense) expense(2)		(165)		(4,087)		(3,541)		6,453
	Restructuring and other related costs		2,170		6,449		30,316		6,975
Adjusted EBITDA			6,175		30,192		54,614		128,930
Weighted average number of Shares			56,237		56,003		56,221		55,802
EBITDA per share			0.07		0.50		0.50		2.07
Adjusted EBITDA per share			0.11		0.54		0.97		2.31
(1) Includes non-cash gains or losses on asset disposal and other non-cash charges.
(2) Stock-based compensation includes ($282) and ($4,728) for Q4 and 2015, respectively, and ($5,227) and $1,033 for Q4 and 2014, respectively of non-cash stock-based compensation (reversal of expense) expense.

"Divisional EBITDA" provides an indication of the results generated by the division's principal business activities prior to how activities are financed, the assets are amortized or impaired and before allocation of General and Administrative (G&A) costs, restructuring and other related costs or stock-based compensation. Divisional EBITDA is derived from Net (loss) earnings before income tax from Continuing Operations as follows:

			Three months ended December 31,						Year ended December 31,
($000s except per share data)			2015		2014		2015		2014
Net loss before Income tax from Continuing Operations			(138,439)		(21,627)		(196,660)		(9,404)
Add back:
	Embedded derivative (gain) loss		(10)		3,050		392		14,691
	Finance charges		7,953		6,753		28,844		33,404
	Restructuring and other related costs		2,170		6,449		30,316		6,975
	Impairment		119,603		19,402		134,397		19,402
	Stock-based compensation (reversal of expense) expense		(165)		(4,087)		(3,541)		6,453
	Depreciation and amortization		15,063		20,252		60,866		57,409
	G&A(1)		10,659		18,601		45,464		66,615
Divisional EBITDA			16,834		48,793		100,078		195,545
	Heavy Oil		10,715		23,352		55,194		90,681
	Oilfield		6,119		25,441		44,884		104,864
Deduct:
	G&A(1)		10,659		18,601		45,464		66,615
Adjusted EBITDA			6,175		30,192		54,614		128,930
	Stock-based compensation (reversal of expense) expense		(165)		(4,087)		(3,541)		6,453
	Restructuring and other related costs		2,170		6,449		30,316		6,975
EBITDA			4,170		27,830		27,839		115,502
(1) As a result of the change in our financial statement presentation from functional to nature based, we have reclassified the sales expense directly attributable to the divisions from Corporate and Other to the respective division. Prior period comparative figures have been amended to conform to current period's presentation. Please refer to "Reporting Structure" for the restated historical segmented information and key metrics.

"Adjusted net earnings" and "Adjusted net earnings per share" are measures of our profitability from Continuing Operations. Adjusted net earnings from Continuing Operations (Adjusted net earnings) provides an indication of the results generated by our principal business activities prior to recognizing stock-based compensation recovery or expense, the gain or loss on embedded derivatives, impairment and restructuring and other related charges. Stock-based compensation, a component of employee remuneration, can vary significantly with changes in the price of our Shares. The loss on the embedded derivative is a result of the change in the trading price of the debentures and the volatility of the applicable bond market. Impairment and restructuring and other related costs are related to initiatives outside of our normal course of business. As such, Adjusted net earnings provides improved continuity with respect to the comparison of our results over a period of time. Adjusted net earnings per share is derived by dividing Adjusted net earnings by the basic weighted average number of Shares.

			Three months ended December 31,						Year ended December 31,
($000s except per share data)			2015		2014		2015		2014
Net loss from Continuing Operations			(116,697)		(17,877)		(166,027)		(12,372)
Add back:
	Embedded derivative (gain) loss		(10)		3,050		392		14,691
	Restructuring and other related costs		2,170		6,449		30,316		6,975
	Impairment		119,603		19,402		134,397		19,402
	Stock-based compensation (reversal of expense) expense		(165)		(4,087)		(3,541)		6,453
Adjusted net earnings (loss)			4,901		6,937		(4,463)		35,149
Weighted average number of Shares			56,237		56,003		56,221		55,802
Adjusted net earnings (loss) per share			0.09		0.12		(0.08)		0.63

"Tangible book value per share" is used to assist management and investors in evaluating the book value compared to the market value.

($000s except per share data)			December 31, 2015(1)		December 31, 2014(1)
Total Shareholder's Equity			340,101		522,906
Less:
	Goodwill		19,894		60,443
	Permits and other intangible assets		408		498
Tangible book value			319,799		461,965
Weighted average number of Shares			56,221		55,802
Tangible book value per share			5.69		8.28
(1) The calculation of Tangible book value has been revised to align with a more commonly applied definition. Prior period tangible book value has been restated accordingly.

"Return on Capital Employed" (ROCE) is used to assist management and investors in measuring the returns realized at the consolidated level from capital employed. ROCE is derived from Net earnings plus tax-adjusted interest divided by the average of the beginning and ending balances of our total assets less current liabilities for the period (Net Assets).

"Cash Basis Return on Capital" (ROC - Cash) is also used to assist management and investors in measuring the returns realized at the consolidated level from capital employed. ROC - Cash is derived from Adjusted EBITDA less cash stock-based compensation, cash taxes and maintenance capital divided by Net Assets.

"Net Debt" is defined as sum of amount drawn on the Credit Facility, Letters of Credit and Senior Unsecured Debentures less Cash on hand.

"Funds from operations" is used to assist management and investors in analyzing cash flow and leverage from Continuing Operations. Funds from operations as presented is not intended to represent operating funds from operations or operating profits for the period, nor should it be viewed as an alternative to cash flow from operating activities, net earnings or other measures of financial performance calculated in accordance with IFRS. Funds from operations is derived from the consolidated statements of cash flows and is calculated as follows:

			Three months ended December 31,						Year ended December 31,
($000s except per share data)			2015		2014		2015		2014
Cash from Continuing Operations			15,732		32,983		45,711		85,943
Add back (deduct):
	Change in non-cash working capital		(26,715)		(21,154)		(35,129)		(505)
	Decommissioning costs incurred		47		641		1,098		2,854
Funds from Operations			(10,936)		12,470		11,680		88,292
Weighted average number of Shares			56,237		56,003		56,221		55,802
Funds from operations per share			(0.19)		0.22		0.21		1.58

"Free Cash Flow" is defined as Funds from Operations less dividends paid, capital expenditures and decommissioning costs incurred.

References to EBITDA, EBITDA per share, Adjusted EBITDA, Adjusted EBITDA per share, Divisional EBITDA, Adjusted net earnings, Adjusted net earnings per share, ROC - Cash, Net Debt, Funds from operations, Funds from operations per share, and Free Cash Flow throughout this document have the meanings set out above.

REPORTING STRUCTURE

In Q1 2015, we reorganized our reporting structure into two divisions - Heavy Oil and Oilfield. The new structure more closely aligns operations with customer activities, facilitates a seamless service package to customers, optimizes our resource allocations, and aids in the execution of our refreshed growth strategy.

The revised structure consists of:

Heavy Oil

• Facilities business unit
• Onsite business unit

Oilfield

• Facilities business unit (includes facilities in both Canada and the U.S.)
• Drilling Services business unit (includes drill site services in both Canada and the U.S.)

HEAVY OIL RESTATED INFORMATION BY QUARTER

				2014				2013				2012
($ millions)	Q4	Q3	Q2	Q1	Q4	Q3	Q2	Q1	Q4	Q3	Q2	Q1
Revenue	56.7	56.2	50.4	40.0	48.3	53.5	41.7	24.4	36.5	45.6	25.4	22.9
Operating expenses	33.3	28.4	27.2	23.7	26.4	25.2	21.4	13.8	19.0	24.9	12.8	11.5
Divisional EBITDA	23.4	27.8	23.2	16.3	21.9	28.3	20.3	10.6	17.5	20.7	12.6	11.4
Divisional EBITDA % of revenue	41%	49%	46%	41%	45%	53%	49%	43%	48%	45%	50%	50%
Depreciation and amortization	5.6	5.5	4.2	2.7	4.5	5.1	3.2	1.4	3.4	2.3	1.4	1.2
Operating profit	17.8	22.3	19.0	13.6	17.4	23.2	17.1	9.2	14.1	18.4	11.2	10.2
Operating profit % of revenue	31%	40%	38%	34%	36%	43%	41%	38%	39%	40%	44%	45%
Maintenance capital	2.6	1.6	3.0	1.0	7.4	1.5	0.6	0.2	2.0	2.1	2.1	0.3
Growth capital	29.8	18.6	8.4	5.8	18.0	12.4	13.4	3.8	12.3	2.9	26.7	17.0
Assets employed	261	237	223	217	210	189	178	168	165	158	155	129
Business Unit Revenue Contribution %
Facilities	28%	35%	35%	43%	32%	31%	33%	51%	35%	30%	51%	57%
Onsite	72%	65%	65%	57%	68%	69%	67%	49%	65%	70%	49%	43%
Metrics
Contracts % of Onsite revenue	80%	77%	74%	77%	75%	86%	71%	67%	74%	71%	61%	65%

HEAVY OIL RESTATED INFORMATION BY YEAR

				2014				2013				2012
($ millions)	Q4 YTD	Q3 YTD	Q2 YTD	Q1	Q4 YTD	Q3 YTD	Q2 YTD	Q1	Q4 YTD	Q3 YTD	Q2 YTD	Q1
Revenue	203.3	146.6	90.4	40.0	167.9	119.6	66.1	24.4	130.4	93.9	48.3	22.9
Operating expenses	112.6	79.3	50.9	23.7	86.8	60.4	35.2	13.8	68.2	49.2	24.3	11.5
Divisional EBITDA	90.7	67.3	39.5	16.3	81.1	59.2	30.9	10.6	62.2	44.7	24.0	11.4
Divisional EBITDA % of revenue	45%	46%	44%	41%	48%	49%	47%	43%	48%	48%	50%	50%
Depreciation and amortization	18.0	12.4	6.9	2.7	14.2	9.7	4.6	1.4	8.3	4.9	2.6	1.2
Operating profit	72.7	54.9	32.6	13.6	66.9	49.5	26.3	9.2	53.9	39.8	21.4	10.2
Operating profit % of revenue	36%	37%	36%	34%	40%	41%	40%	38%	41%	42%	44%	45%
Maintenance capital	8.2	5.6	4.0	1.0	9.6	2.3	0.7	0.2	6.5	4.5	2.5	0.3
Growth capital	62.6	32.8	14.2	5.8	47.6	29.6	17.2	3.8	58.9	46.6	43.7	17.0
Business Unit Revenue Contribution %
Facilities	35%	37%	38%	43%	35%	36%	40%	51%	40%	42%	54%	57%
Onsite	65%	63%	62%	57%	65%	64%	60%	49%	60%	58%	46%	43%
Metrics
Contracts % of Onsite revenue	77%	76%	75%	77%	77%	77%	69%	67%	69%	68%	63%	65%

OILFIELD RESTATED INFORMATION BY QUARTER

				2014				2013				2012
($ millions)	Q4	Q3	Q2	Q1	Q4	Q3	Q2	Q1	Q4	Q3	Q2	Q1
Revenue	76.4	79.1	66.0	70.5	61.7	63.6	53.9	65.1	60.5	63.2	52.2	63.7
Operating expenses	51.0	47.1	43.0	46.0	41.7	39.4	35.4	39.2	39.8	39.3	36.6	37.1
Divisional EBITDA	25.4	32.0	23.0	24.5	20.0	24.2	18.5	25.9	20.7	23.9	15.6	26.6
Divisional EBITDA % of revenue	33%	40%	35%	35%	32%	38%	34%	40%	34%	38%	30%	42%
Depreciation and amortization	8.0	5.7	4.6	4.4	4.4	3.9	4.0	4.1	4.0	4.1	3.6	4.1
Operating profit	17.4	26.3	18.4	20.1	15.6	20.3	14.5	21.8	16.7	19.8	12.0	22.5
Operating profit % of revenue	23%	33%	28%	29%	25%	32%	27%	33%	28%	31%	23%	35%
Maintenance capital	6.0	3.7	2.1	1.3	2.8	2.8	1.9	1.5	1.8	3.2	2.3	1.4
Growth capital(1)	31.5	14.2	8.8	12.7	30.5	12.6	8.9	7.2	15.6	8.8	4.5	5.7
Assets employed	513	491	475	472	451	427	421	413	407	391	385	380
Business Unit Revenue Contribution %
Facilities	67%	69%	73%	76%	73%	75%	74%	71%	70%	68%	67%	67%
Canada % of Facilities revenue	86%	89%	85%	88%	92%	93%	90%	91%	89%	91%	93%	95%
U.S. % of Facilities revenue	14%	11%	15%	12%	8%	7%	10%	9%	11%	9%	7%	5%
Drilling Services	33%	31%	27%	24%	27%	25%	26%	29%	30%	32%	33%	33%
Canada % of revenue(2)	29%	30%	24%	43%	35%	30%	26%	35%	38%	41%	36%	47%
U.S. % of revenue(2)	71%	70%	76%	57%	65%	70%	74%	65%	62%	59%	64%	53%
Metrics
U.S. Recovered Crude Oil ('000 bbl)	8.1	4.4	8.6	7.5	-	-	-	-	-	-	-	-
U.S. Netback (CDN$/bbl)	58.38	78.88	83.80	81.32	-	-	-	-	-	-	-	-
U.S. Recovered Crude Oil sales	0.5	0.3	0.7	0.6	-	-	-	-	-	-	-	-

OILFIELD RESTATED INFORMATION BY YEAR

				2014				2013				2012
($ millions)	Q4 YTD	Q3 YTD	Q2 YTD	Q1	Q4 YTD	Q3 YTD	Q2 YTD	Q1	Q4 YTD	Q3 YTD	Q2 YTD	Q1
Revenue	292.0	215.6	136.5	70.5	244.3	182.6	119.0	65.1	239.6	179.1	115.9	63.7
Operating expenses	187.1	136.1	89.0	46.0	155.7	114.0	74.6	39.2	152.8	113.0	73.7	37.1
Divisional EBITDA	104.9	79.5	47.5	24.5	88.6	68.6	44.4	25.9	86.8	66.1	42.2	26.6
Divisional EBITDA % of revenue	36%	37%	35%	35%	36%	38%	37%	40%	36%	37%	36%	42%
Depreciation and amortization	22.7	14.7	9.0	4.4	16.4	12.0	8.1	4.1	15.8	11.8	7.7	4.1
Operating profit	82.2	64.8	38.5	20.1	72.2	56.6	36.3	21.8	71.0	54.3	34.5	22.5
Operating profit % of revenue	28%	30%	28%	29%	30%	31%	31%	33%	30%	30%	30%	35%
Maintenance capital	13.1	7.1	3.4	1.3	9.0	6.2	3.4	1.5	8.7	6.8	3.7	1.4
Growth capital(1)	67.2	35.7	21.5	12.7	59.2	28.7	16.1	7.2	34.5	19.0	10.2	5.7
Business Unit Revenue Contribution %
Facilities	71%	73%	75%	76%	73%	73%	72%	71%	68%	67%	67%	67%
Canada % of Facilities revenue	87%	87%	87%	88%	91%	91%	91%	91%	92%	93%	94%	95%
U.S. % of Facilities revenue	13%	13%	13%	12%	9%	9%	9%	9%	8%	7%	6%	5%
Drilling Services	29%	27%	25%	24%	27%	27%	28%	29%	32%	33%	33%	33%
Canada % of revenue(2)	31%	32%	33%	43%	32%	31%	31%	35%	39%	41%	42%	47%
U.S. % of revenue(2)	69%	68%	67%	57%	68%	69%	69%	65%	61%	59%	58%	53%
Metrics
U.S. Recovered Crude Oil ('000 bbl)	28.6	20.5	16.1	7.5	-	-	-	-	-	-	-	-
U.S. Netback (CDN$/bbl)	75.60	81.33	82.56	81.32	-	-	-	-	-	-	-	-
U.S. Recovered Crude Oil sales	2.1	1.6	1.3	0.6	-	-	-	-	-	-	-	-
(1) Growth capital has been restated from the information reported in our Q1 2015 MD&A.
(2) Drilling Services revenue split by country has been restated from the information reported in our Q1 2015 MD&A to include Environmental Services.

G&A RESTATED INFORMATION

				2014				2013				2012
($ millions)	Q4	Q3	Q2	Q1	Q4	Q3	Q2	Q1	Q4	Q3	Q2	Q1
G&A - by quarter	18.6	16.6	15.8	15.7	20.8	17.0	15.7	16.1	15.1	13.8	14.5	13.1
G&A - YTD	66.7	48.1	31.5	15.7	69.6	48.8	31.8	16.1	56.4	41.4	27.6	13.1

SENSITIVITIES

Results from Continuing Operations are sensitive to changes in commodity prices for crude oil. The direct impact of these commodity prices is reflected in the revenue received from the sale of products such as crude oil. Approximately 15% of our revenue is sensitive to the direct impact of commodity prices. Our results are also impacted by drilling activity. Drilling sensitivities are impacted by the area in which drilling occurs, compared to areas where we operate and the drilling techniques employed. Where possible, we actively manage these impacts by strategically geographically balancing mobile assets to meet demand and shifts in activity levels where necessary.

In Q2, we revised our sensitivities for crude oil prices to better reflect the lower recovered crude oil volumes recovered at our facilities. In 2015, volumes have declined approximately 30%. As a result, the assumptions and relationships used to derive the previously disclosed sensitivities have been revised. The following table provides our estimates of fluctuations in key inputs and prices and the direct impact on revenue and Adjusted EBITDA from product sales:

			2015		Change in benchmark		Impact on Annual Revenue ($)(1)		Impact on Annual Adjusted EBITDA($)(1)
CLS ($/bbl)			57		10		2.5 to 3 million		2.5 to 3 million
WCS ($/bbl)			45		10		2 to 2.5 million		2 to 2.5 million
Drilling activity(2)(3)					5% change		5 to 8 million		2 to 3 million
	Metres drilled (million metres)		13		1		1.5 million		0.8 million
	Active rigs in WCSB		184		100 rigs		4 million		1 million
(1) Based on 2015 actuals performance and volumes. The actual impact from crude oil prices may vary with fluctuations in recovered crude oil volumes.
(2) Impact from changes in drilling activity assumes a change in the key drilling metrics including metres drilled, and active rigs in the WCSB and in the U.S.
(3) U.S. results are impacted by changes in drilling activity in the respective plays we serve, as indicated by active rigs, and to a greater extent changes in our market share and operations. A sensitivity for active rigs in the U.S. has not been provided because of the overriding impact of shifts in market share on our results.

Stock-based compensation expense is sensitive to changes in our share price. At December 31, 2015, a $1 change in our share price between $2 per share and $5 per share has approximately a $0.1 million direct impact on annual stock-based compensation reflected in G&A from Continuing Operations. Stock-based compensation is also impacted by dividend rate changes and the effects of vesting.