Industry Note

Equity Research Published and distributed by TD Securities Inc. July 5, 2023

Energy Services
Q2/23 Preview Aaron MacNeil, CA
Reducing Our U.S. Rig Count Outlook Aly Hemraj, CFA, CPA, CA (Associate)
Pricing Appears to be Resilient, Despite Reduced Activity Levels

TD Investment Conclusion
Updates to Our Industry Outlook: Although we did not make any substantive
changes to our commodity price outlook in our recent deck update (full report), we
note that the U.S. rig count has responded quickly to lower prices, declining 105
rigs year-to-date. Based on our recent conversations with our coverage universe,
we expect that drilling and completions (D&C) activity in the U.S. will reach trough
levels in the coming weeks and are likely to remain flat for the rest of 2023. In
this context, our 2023 and 2024 U.S. rig count forecasts decrease to 700 rigs
and 720 rigs from 745 rigs and 785 rigs, respectively. Conversely, we expect that
Canadian activity levels will remain resilient as public companies dominate activity in
Canada and appear less sensitive to changing commodity prices, and gas-directed
activity is largely driven by natural-gas liquids economics. This activity profile is also
supported by the recent Blueberry River First Nation/BC Government resolution, the
sanctioning of ARC's Attachie and long-term LNG Canada-related growth ambitions.
That said, Canadian Natural (CNQ-T, BUY, $95.00 TP) dropped 10 rigs recently, and
if more producers follow suit, we may need to revisit this view in future updates. In
concert with this report, we are unveiling our International rig-count forecast of 989
rigs in 2023 and 1,117 rigs in 2024.
Q2/23 Preview: Despite being affected by wildfires, Q2/23 Canadian D&C activity
was seasonally strong, in our view. However, the U.S. rig count declined meaningfully
throughout the quarter, and in many cases, we have reduced our estimates for
companies with U.S. exposure as a result. We expect outlook commentary and
conference call Q&A to focus on near-term activity and pricing.
Estimate Changes: On average, our 2023 and 2024 EBITDAS estimates decrease
by 1.8% and 1.6%, respectively, and a recurring theme from our coverage universe
was that they will prioritize pricing over activity. Additionally, some coverage universe
constituents see the possibility of an increase in U.S. D&C activity later this year,
although we do not contemplate any recovery in activity until 2024.
Our Sector Stance: OVERWEIGHT
Economists have been talking about a recession for over a year, and, in our view,
Energy Services sector valuation multiples have contracted meaningfully over this
time-period as investors increasingly price-in a reduced activity outlook. Despite
these downward revisions, we expect that financial performance will remain strong
due to a sector-wide prioritization of pricing over utilization and, as a result, valuations
remain attractive, in our view. Enerflex (EFX-T, BUY, $16.00 TP) and Precision (PD-
T, BUY, $105.00 TP), remain our top picks for sector exposure. In a concurrently
published action note, we are initiating coverage on Pason Systems (PSI-T)
with a BUY rating and $16.00 target price.

Please see the final pages of this document for important disclosure information. Page 1 of 9
Industry Note July 5, 2023
Equity Research July 5, 2023

Commodity Price Deck & Industry Forecasts

Our E&P team’s updated commodity price deck (full report) assumptions feature
unchanged crude oil estimates (2023E/2024E WTI: US$75/US$70/bbl) that are relatively
in line with 2023+ crude oil strip pricing. Natural-gas supply/demand dynamics are
becoming more balanced, but pricing has remained challenged, given the significant
storage overhang, with U.S. inventories 26% higher than the previous year and 15%
above the five-year average. In this context, our 2023 natural-gas price deck
assumptions decline (2023E NYMEX/AECO: US$2.65/C$2.70/mcf). However, our
unchanged long-term natural-gas outlook remains constructive, with new LNG export
facilities being brought online in 2024/2025. The U.S. rig count has responded quickly to
lower prices, declining 105 rigs year-to-date, and we expect further activity level
reductions in the coming weeks. As a result, our 2023 and 2024 U.S. average rig count
forecasts decrease to 700 (-6%) and 720 (-8%), respectively. Conversely, we expect that
Canadian activity levels will remain somewhat resilient to volatile commodity prices and
feature no meaningful changes. Our 2024 industry activity assumptions feature modest
growth year-over-year, consistent with our expectations that natural-gas price weakness
will be a short-term phenomenon. With this report, we are unveiling our International rig
count forecast of 989 rigs in 2023 and 1,117 rigs in 2024.

Exhibit 1. Commodity Price Deck Assumptions and Industry Forecasts

2023E 2024E Long-term 2025E
2022A New Prior Chg. 23/22 New Prior Chg. 24/23 New Prior Chg.
Commodity Price Deck Assumptions
Crude Oil
West Texas Intermediate US$/bbl $94.50 $75.00 $75.00 0% -21% $70.00 $70.00 0% -7% $65.00 $65.00 0%
Brent US$/bbl $100.00 $79.75 $80.00 0% -20% $74.50 $75.00 -1% -7% $70.00 $70.00 0%
Edmonton Par C$/bbl $119.75 $97.75 $99.50 -2% -18% $92.25 $90.50 2% -6% $85.25 $85.25 0%
Western Canadian Select C$/bbl $98.75 $77.50 $78.75 -2% -22% $76.00 $73.25 4% -2% $69.00 $67.50 2%
Natural Gas
NYMEX US$/Mcf $6.40 $2.65 $2.75 -4% -59% $3.50 $3.50 0% 32% $4.00 $4.20 -5%
AECO C$/Mcf $5.45 $2.70 $2.75 -2% -50% $3.15 $3.30 -5% 17% $3.75 $4.35 -14%
Industry Activity Assumptions
Canada
Average Active Rig Count # 174 180 182 -1% 3% 195 196 -1% 8%
HHP Demand hhp 1,320,000 1,440,000 1,450,000 -1% 9% 1,550,000 1,550,000 0% 8%
United States
Average Active Rig Count # 719 700 745 -6% -3% 720 785 -8% 3%
International
Average Active Rig Count # 851 989 n/a n/a 16% 1,117 n/a n/a 13%

Source: Baker Hughes, Bloomberg, CAODC, TD Securities Inc.

Page 2 of 9
Industry Note July 5, 2023
Equity Research July 5, 2023
Q2/23 Preview & Estimate Changes
We are updating our estimates to reflect actual Q2/23 activity levels, our updated
commodity price deck and industry forecasts, as well as other relevant modelling factors.
Our 2023 and 2024 estimates decrease modestly to reflect our reduced industry
forecasts, primarily companies with exposure to the U.S. rig count. Our 2024 estimates
have not changed by the same order of magnitude, highlighting our expectation that any
weakness in North American drilling activity will be short-lived, and we note that in
several instances, our estimates are already well below consensus.

• Pason Systems (PSI-T): In a concurrently published action note, we are

initiating coverage of Pason Systems, a capital-light technology company that is
leveraged primarily to North American drilling activity (see our concurrently
published initiating coverage report).

Exhibit 2. Estimate Change Summary

Q2/23E Estimate Changes Est. Reporting Q2/23E EBITDAS Est./Prior Est./Cons.
Name Ticker Date Estimate Prior Consensus %∆ %∆
CES Energy Solutions CEU August 10 (After) $ 68.5 $ 68.8 $ 67.5 -0.5% 1.4%
Dexterra Group DXT August 8 (After) $ 24.2 $ 22.1 $ 22.4 9.3% 7.8%
Enerflex Ltd. EFX August 9 (After) $ 123.9 $ 128.7 $ 129.6 -3.8% -4.4%
Ensign Energy Services ESI August 4 (Before) $ 113.0 $ 117.2 $ 110.3 -3.6% 2.5%
Mattr Infratech MATR August 10 (After) $ 52.5 $ 51.0 $ 52.6 2.8% -0.2%
North American Construction NOA July 26 (After) $ 52.2 $ 58.2 $ 54.3 -10.3% -3.9%
Pason Systems PSI August 10 (After) $ 36.8 n/a $ 38.5 n/a -4.4%
Precision Drilling PD July 27 (Before) $ 120.0 $ 123.4 $ 120.1 -2.7% 0.0%
Secure Energy Services SES July 27 (Before) $ 114.9 $ 122.6 $ 122.2 -6.2% -5.9%
Trican Well Service TCW August 1 (After) $ 26.3 $ 26.3 $ 25.2 0.0% 4.7%
Average -1.7% -0.2%
2023E & 2024E Estimate Changes 2023E EBITDAS Est./Prior Est./Cons. 2024E EBITDAS Est./Prior Est./Cons.
Estimate Prior Consensus %∆ %∆ Estimate Prior Consensus %∆ %∆
CES Energy Solutions $ 288.5 $ 294.7 $ 293.5 -2.1% -1.7% $ 275.8 $ 283.5 $ 298.0 -2.7% -7.4%
Dexterra Group $ 90.0 $ 90.1 $ 91.1 -0.1% -1.2% $ 97.4 $ 98.2 $ 102.5 -0.8% -5.0%
Enerflex Ltd. $ 501.5 $ 517.8 $ 529.6 -3.1% -5.3% $ 558.6 $ 584.7 $ 585.9 -4.5% -4.7%
Ensign Energy Services $ 500.3 $ 512.6 $ 499.6 -2.4% 0.1% $ 520.9 $ 534.0 $ 527.6 -2.4% -1.3%
Mattr Infratech $ 327.7 $ 330.0 $ 322.3 -0.7% 1.7% $ 294.6 $ 292.3 $ 276.1 0.8% 6.7%
North American Construction $ 272.8 $ 272.9 $ 273.0 0.0% -0.1% $ 275.1 $ 275.3 $ 279.0 -0.1% -1.4%
Pason Systems $ 175.2 n/a $ 179.7 n/a -2.5% $ 184.5 n/a $ 189.1 n/a -2.4%
Precision Drilling $ 601.0 $ 628.2 $ 646.2 -4.3% -7.0% $ 598.5 $ 618.4 $ 669.0 -3.2% -10.5%
Secure Energy Services $ 560.0 $ 577.4 $ 579.2 -3.0% -3.3% $ 576.6 $ 582.0 $ 571.2 -0.9% 1.0%
Trican Well Service $ 247.0 $ 247.6 $ 246.4 -0.2% 0.3% $ 257.1 $ 257.5 $ 265.2 -0.2% -3.0%
Average -1.8% -1.9% -1.6% -2.8%
Source: FactSet, TD Securities Inc.

Page 3 of 9
Industry Note July 5, 2023
Equity Research July 5, 2023
Ratings and Changes in Target Prices
In conjunction with our updated industry forecasts, modestly reduced 2023 and 2024
estimates and long-term NAV assumptions, we are reducing our target prices for
companies with drilling and completions exposure. We are not making any changes to
our ratings at this time. In a concurrently published action note, we are initiating coverage
of Pason Systems (PSI-T) with a BUY rating and $16.00 target price.

Exhibit 3. Ratings and Changes in Target Prices

Rating and Target Changes Prior Ratings and Targets
NAV/ Risk
Rating Share Target Return Rating Rating Target Return
CES Energy Solutions CEU BUY $ 4.68 $ 4.75 ↓ 87.3% HIGH BUY $ 5.00 96.9%
Dexterra Group DXT BUY $ 7.52 $ 7.50 33.3% HIGH BUY $ 7.50 33.3%
Enerflex EFX BUY $ 16.15 $ 16.00 76.1% HIGH BUY $ 16.00 76.1%
Ensign Energy Services ESI BUY $ 5.16 $ 5.00 ↓ 159.1% HIGH BUY $ 5.50 185.0%
Mattr Infratech MATR HOLD $ 18.80 $ 19.00 ↑ 0.4% HIGH HOLD $ 16.00 -15.5%
North American Construction NOA HOLD $ 26.89 $ 27.00 7.3% HIGH HOLD $ 27.00 7.3%
Pason Systems PSI BUY $ 15.89 $ 16.00 44.3% HIGH N/A
Precision Drilling PD BUY $ 106.81 $ 105.00 ↓ 60.4% HIGH BUY $ 130.00 98.6%
Secure Energy Services SES HOLD $ 6.99 $ 7.00 16.0% HIGH HOLD $ 7.00 16.0%
Trican Well Service TCW BUY $ 4.52 $ 4.50 30.5% HIGH BUY $ 4.50 30.5%

Denotes changes in rating, target price or risk rating

Source: TD Securities Inc.

Page 4 of 9
 Sector Stance: Overweight TD Securities Forecast

Capital Structure Revenue EBITDAS CAPEX

Closing Target Yield Total Shares Mkt Cap Net Debt EV 2022A 2023E 2024E 2022A 2023E 2024E 2023E
Name Ticker Price ($/sh.) (%) Return Rating Risk (mm) ($mm) ($mm) ($mm) ($mm) ($mm) ($mm) ($mm) ($mm) ($mm) ($mm)

CES Energy Solutions Corp. CEU-T $2.59 $4.75 3.9% 87.3% BUY HIGH 255 $661 $397 $1,057 $1,922 $2,103 $2,149 $257 $288 $276 $55
Dexterra Group Inc. DXT-T $5.89 $7.50 5.9% 33.3% BUY HIGH 65 $384 $134 $519 $972 $1,048 $1,057 $60 $90 $97 $11
Enerflex Ltd. EFX-T $9.14 $16.00 1.1% 76.1% BUY HIGH 124 $1,131 $1,319 $2,450 $1,778 $3,049 $2,952 $207 $502 $559 $135 Equity Research
Ensign Energy Services Inc. ESI-T $1.93 $5.00 0.0% 159.1% BUY HIGH 183 $354 $1,323 $1,677 $1,577 $1,895 $2,019 $374 $500 $521 $157
Mattr Infratech MATR-T $18.93 $19.00 0.0% 0.4% HOLD HIGH 70 $1,330 $190 $1,520 $1,255 $1,927 $1,802 $142 $328 $295 $170
North American Construction Group Ltd. NOA-T $25.54 $27.00 1.6% 7.3% HOLD HIGH 26 $675 $359 $1,034 $1,054 $1,118 $1,115 $244 $273 $275 $140
Pason Systems Inc. PSI-T $11.42 $16.00 4.2% 44.3% BUY HIGH 81 $923 -$181 $742 $335 $362 $379 $160 $175 $184 $45
Precision Drilling Corp. PD-T $65.45 $105.00 0.0% 60.4% BUY HIGH 14 $885 $1,066 $1,951 $1,617 $1,917 $2,016 $445 $601 $599 $195
Industry Note

Secure Energy Services Inc. SES-T $6.38 $7.00 6.3% 16.0% HOLD HIGH 301 $1,919 $1,024 $2,944 $1,534 $1,584 $1,664 $534 $560 $577 $185
Trican Well Service Ltd. TCW-T $3.57 $4.50 4.5% 30.5% BUY HIGH 220 $787 -$37 $750 $866 $984 $1,052 $197 $247 $257 $114
Average 2.7% 51.5%
Valuation Metrics Leverage Metrics
Total
Exhibit 4. Energy Services Comp. Table

EV/EBITDAS FCF Yield P/TBV ROIC ND/EBITDAS Payout

Source: Company reports, FactSet, TD Securities Inc.

2022A 2023E 2024E 2022A 2023E 2024E Current 2022A 2023E 2024E 2022A 2023E 2024E 2023E
Name (x) (x) (x) (%) (%) (%) (x) (%) (%) (%) (x) (x) (x) (%)

CES Energy Solutions Corp. 4.9x 3.5x 3.3x 17% 25% 27% 1.2x 12% 14% 13% 2.1x 1.2x 0.9x 20%
Dexterra Group Inc. 8.1x 5.4x 4.6x 9% 16% 19% 3.1x 2% 9% 10% 2.0x 1.1x 0.7x 41%
Enerflex Ltd. 11.1x 4.4x 3.3x 4% 18% 27% 1.5x -3% 7% 8% 6.0x 2.1x 1.3x 22%
Ensign Energy Services Inc. 5.5x 3.2x 2.7x 19% 24% 27% 0.3x 3% 5% 6% 3.8x 2.5x 2.0x 36%
Mattr Infratech 6.9x 4.3x 4.0x 8% 14% 21% 3.8x 2% 20% 17% 0.0x 0.3x -0.6x 45%
North American Construction Group Ltd. 3.5x 3.6x 3.2x 11% 13% 17% 2.5x 13% 14% 15% 1.9x 1.3x 0.9x 61%
Pason Systems Inc. 7.1x 3.9x 3.2x 9% 15% 19% 4.5x 63% 52% 58% -1.0x -1.4x -1.8x 56%
Precision Drilling Corp. 5.7x 2.9x 2.3x 11% 26% 38% 0.7x 2% 10% 11% 2.5x 1.4x 0.9x 29%
Secure Energy Services Inc. 6.0x 5.1x 4.6x 13% 17% 18% 2.2x 11% 10% 11% 1.9x 1.7x 1.3x 42%
Trican Well Service Ltd. 4.2x 2.9x 2.4x 11% 15% 23% 1.6x 16% 24% 25% -0.1x -0.3x -0.7x 69%
Average 6.3x 3.9x 3.4x 11% 18% 24% 2.1x 12% 17% 18% 1.9x 1.0x 0.5x 42%

Page 5 of 9
July 5, 2023
July 5, 2023
Industry Note
Equity Research
Appendix I: Justification of and Key Risks to Target Prices
Company Name and Ticker
CES Energy Solutions Corp.
(CEU-T)
Dexterra Group Inc. (DXT-T)
Enerflex Ltd. (EFX-T)
Ensign Energy Services Inc.
(ESI-T)
Mattr Infratech (MATR-T)
North American Construction
Group
(NOA-T)
Pason Systems Inc. (PSI-T)
Precision Drilling Corp.
(PD-T)
Secure Energy Services Inc.
(SES-T)
Trican Well Service Ltd.
(TCW-T)
Source: Company reports, TD Securities Inc.
Target Risk
Rec. Justification of Target Price
Price Rating
Our target price of $4.75/share is based on 1.0x our NAV
calculation. Our NAVPS assumes terminal multiples of 6.0x, a
$4.75 BUY HIGH
WACC of 18.6%, contemplates our near-term estimates, longer-
term commodity price deck assumptions and industry forecast.
Our target price of $7.50/share is based on 1.0x our NAV
calculation. Our NAVPS assumes terminal multiples ranging
between 5.0x (WAFES segment) and 6.0x (Facilities Management,
$7.50 BUY HIGH Modular Solutions segments), a WACC of 14.3%, contemplates our
near-term estimates, longer-term commodity price deck
assumptions and industry forecast for its Energy-weighted
businesses.
Our target price of $16.00/share is based on 1.0x our NAV
calculation. Our NAVPS assumes terminal multiples ranging
between 5.0x (Engineered Systems and Service segments) and
$16.00 BUY HIGH
6.0x (Rentals segment), a WACC of 13.0%, contemplates our near-
term estimates, longer-term commodity price deck assumptions
and industry forecast.
Our target price of $5.00/share is based on 1.0x our NAV
calculation. Our NAVPS breaks down asset values by rig category
$5.00 BUY HIGH with terminal multiples ranging from 0.0x to 6.0x, assumes a
WACC of 20.5%, contemplates our near-term estimates, longer-
term commodity price deck assumptions and industry forecast.
Our target price of $19.00/share is based on 1.0x our NAV
calculation. Our NAVPS assumes segment terminal multiples of
4.0x (Pipeline & Pipe Services), 8.0x (Composite Systems), and
$19.00 HOLD HIGH 10.0x (Automotive & Industrial), a WACC of 14.6%, contemplates
our near-term estimates, longer-term commodity price deck
assumptions and industry forecast for its Energy-weighted
businesses.
Our target price of $27.00/share is based on 1.0x our NAV
calculation. Our NAVPS assumes terminal multiples of 6.0x, a
$27.00 HOLD HIGH
WACC of 12.9%, contemplates our near-term estimates, longer-
term commodity price deck assumptions and industry forecast.
Our target price of $16.00/share is based on 1.0x our NAV
calculation. Our NAVPS assumes terminal multiples of 7.0x, a
$16.00 BUY HIGH
WACC of 13.5%, contemplates our near-term estimates, longer-
term commodity price deck assumptions and industry forecast.
Our target price of $105.00/share is based on 1.0x our NAV
calculation. Our NAVPS breaks down asset values by rig category
$105.00 BUY HIGH with terminal multiples ranging from 0.0x to 6.0x, assumes a
WACC of 21.1%, contemplates our near-term estimates, longer-
term commodity price deck assumptions and industry forecast.
Our target price of $7.00/share is based on 1.0x our NAV
calculation. Our NAVPS assumes terminal multiples of 6.0x, a
$7.00 HOLD HIGH
WACC of 13.9%, contemplates our near-term estimates, longer-
term commodity price deck assumptions and industry forecast.
Our target price of $4.50/share is based on 1.0x our NAV
calculation. Our NAVPS assumes terminal multiples of 5.0x, a
$4.50 BUY HIGH
WACC of 19.7%, contemplates our near-term estimates, longer-
term commodity price deck assumptions and industry forecast.
July 5, 2023
July 5, 2023
Key Risks to Target Price
Key risks associated with our target price include weakness in
commodity prices; variability of drilling activity; inflation and supply-
chain challenges; marketability and competitiveness of chemical
products (technical obsolescence); competition; foreign country
risk (U.S.); foreign exchange; and play concentration (Permian).
Key risks associated with our target price include weakness in
commodity prices; inflation and supply-chain challenges;
customer relationships; seasonality; relations with aboriginal
communities; lumpiness of infrastructure spending; cost inflation
(including labour); market share; competition; and merger
integration.
Key risks associated with our target price include weakness in
commodity prices; inflation and supply-chain challenges;
lumpiness of infrastructure spending; performance on integrated
turnkey projects; competition; foreign country risk; and foreign
exchange.
Key risks associated with our target price include weakness in
commodity prices; inflation and supply-chain challenges; market
share; dayrates/pricing; availability/cost of labour; weather;
availability/cost of equipment and parts; foreign country risk;
foreign exchange; and high financial leverage.
Key risks associated with our target include weakness in
commodity prices; inflation and supply-chain challenges; pace of
global oil and gas infrastructure buildout (including customers’
ability to fund projects); significant cost overrun on a major project;
market share; pricing; availability/cost of labour; weather;
availability/cost of equipment and parts; foreign country risk; and
foreign exchange.
Key risks associated with our target price include weakness in
commodity prices; inflation and supply-chain challenges;
marketability of assets; customer concentration; oil sands activity
levels; ESG profiles of key customers; competition/ market share;
weather; availability of equipment and parts; liquidity; and labour
relations/availability due to the fact that the majority of its
employee base operates under a CBA.
Key risks associated with our target price include commodity prices
and industry activity levels, cyber security, foreign country risk,
foreign exchange, intellectual property and qualified personnel.
Key risks associated with our target include weakness in
commodity prices; inflation and supply-chain challenges; market
share; dayrates/pricing; availability/cost of labour; weather;
availability/cost of equipment and parts; foreign country risk;
foreign exchange.
Key risks associated with our target price include weakness in
commodity prices; inflation and supply-chain challenges;
marketability of assets; competition/market share; Competition
Tribunal proceedings; WCSB production volumes; weather;
availability of equipment and parts; foreign country risk; and
foreign exchange.
Key risks associated with our target include weakness in
commodity prices; inflation and supply-chain challenges;
marketability of assets; market share; pricing; availability/cost of
labour; weather; and availability/cost of equipment and parts.
Page 6 of 9
Industry Note
Equity Research July 5, 2023

TD Securities Equity Research Disclosures

 Company Ticker Disclosures
CES Energy Solutions Corp. CEU-T 9
Dexterra Group Inc. DXT-T n/a
Enerflex Ltd. EFX-T 2, 4, 9
Ensign Energy Services Inc. ESI-T n/a
Mattr Infratech MATR-T 2, 4, 9
North American Construction Group Ltd. NOA-T | NOA-N 9
Pason Systems Inc. PSI-T 9
Precision Drilling Corp. PD-T | PDS-N 9
Secure Energy Services Inc. SES-T 9
Trican Well Service Ltd. TCW-T n/a

1. TD Securities Inc., TD Securities (USA) LLC or an affiliated company has managed or co-managed a public offering of securities within the last 12 months with respect to the subject
company.
2. TD Securities Inc., TD Securities (USA) LLC or an affiliated company has received compensation for investment banking services within the last 12 months with respect to the
subject company.
3. TD Securities Inc., TD Securities (USA) LLC or an affiliated company expects to receive compensation for investment banking services within the next three months with respect to
the subject company.
4. TD Securities Inc., TD Securities (USA) LLC or an affiliated company has provided investment banking services within the last 12 months with respect to the subject company.
5. A long position in the securities of the subject company is held by the research analyst, by a member of the research analyst’s household, or in an account over which the research
analyst has discretion or control.
6. A short position in the securities of the subject company is held by the research analyst, by a member of the research analyst’s household, or in an account over which the research
analyst has discretion or control.
7. A long position in the derivative securities of the subject company is held by the research analyst, by a member of the research analyst’s household, or in an account over which the
research analyst has discretion or control.
8. A short position in the derivative securities of the subject company is held by the research analyst, by a member of the research analyst’s household, or in an account over which
the research analyst has discretion or control.
9. TD Securities Inc. and/or an affiliated company is a market maker, or is associated with the specialist that makes a market, in the securities of the subject company.
10. TD Securities Inc. and/or affiliated companies own 1% or more of the equity securities of the subject company.
11. A partner, director or officer of TD Securities Inc., TD Securities (USA) LLC or an affiliated company, or a research analyst involved in the preparation of this report has, during the
preceding 12 months, provided services to the subject company for remuneration.
12. This security has Subordinate voting shares.
13. This security has Restricted voting shares.
14. This security has Non-voting shares.
15. This security has Variable voting shares.
16. This security has Limited voting shares.

Additional Important Disclosures

Price Graphs
Full disclosures for all companies covered by TD Securities can be viewed at https://portal.tdsecurities.com/alpha/important-disclosures by TD Securities' institutional equity clients.

Distribution of Research Ratings^ Investment Services Provided*

100%

79.7%
REDUCE - 0.9%
75%
NOT RATED - 0.6%

50%
BUY - 71.1%
HOLD - 27.3%

25% 18.8%

0.75% 0.75%
0%
BUY HOLD NOT REDUCE
RATED

Current as of: July 5, 2023

^ Percentage of subject companies under each rating category: BUY (covering ACTION LIST BUY,
BUY and SPECULATIVE BUY ratings), HOLD, and REDUCE (covering TENDER and REDUCE
ratings) and NOT RATED (covering UNDER REVIEW, SUSPENDED, and NOT RATED).
* Percentage of subject companies within each of the four categories (BUY, HOLD, REDUCE, and
NOT RATED) for which TD Securities Inc. has provided investment banking services within the last
12 months.

Definition of Research Ratings

Page 7 of 9
Industry Note
Equity Research July 5, 2023

ACTION LIST BUY: The stock's total return is expected to exceed a minimum of 15% (with higher thresholds for less liquid, more risky securities) over the next 12 months and it is a
top pick in the Analyst's sector.
BUY: The stock's total return is expected to exceed a minimum of 10% (with higher thresholds for less liquid, more risky securities) over the next 12 months.
SPECULATIVE BUY: The stock's total return is expected to exceed a minimum of 30% over the next 12 months (with higher thresholds for less liquid securities); however, there is material
event risk associated with the investment that could result in a significant loss.
HOLD: The stock's total return is expected to be between 0% and 10%, (with higher thresholds for less liquid, more risky securities) over the next 12 months.
TENDER: Investors are advised to tender their shares to a specific offer for the company's securities or to support a proposed combination reflecting our view that a superior offer
is not forthcoming.
REDUCE: The stock's total return is expected to be negative over the next 12 months.
SUSPENDED: Due to evolving circumstances, we can no longer generate what we consider a defensible target price and rating at the current time.
UNDER REVIEW: Our rating is under review pending additional information and/or analysis. The prior rating should not be relied on.
NOT RATED: We do not currently produce a recommendation and a target price on this security.
Risk ratings are relative to other companies in the TD Securities Equity Research coverage universe. In order of increasing risk, our risk ratings are LOW, MEDIUM, HIGH, and
SPECULATIVE. These risk ratings are not meant to be compared to ratings on other securities and asset classes outside our Equity Research coverage universe.
Overall Risk Rating in order of increasing risk: Low (7.2% of coverage universe), Medium (41.8%), High (42.5%), Speculative (8.5%)

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Disclaimer
THIS RESEARCH REPORT WAS PRODUCED SOLELY BY TD SECURITIES INC.
This material is for general informational purposes only and is not investment advice nor does it constitute an offer, recommendation or solicitation to buy or sell a particular financial instrument. It does
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regulated in Australia by the Australian Securities and Investments Commission.

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Industry Note
Equity Research July 5, 2023

Canada: Canadian clients wishing to effect transactions in any security discussed herein should do so through a qualified salesperson of TD Securities or TD Securities Inc. TD Securities Inc. is a
member of the Canadian Investor Protection Fund.
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