Message to Stakeholders

A Message From Our CEO

For Crew, the success of our business is more than financial performance.  In 2022, Crew not only took care of business financially, we also exceeded many of our ESG goals. This achievement not only significantly improves our financial sustainability, it sets the stage to establish new ESG objectives that enable further improvement.

Our Crew is a dynamic team of people working together towards a common goal. The name ‘Crew’ embodies both our corporate culture and the approach we take to ESG. With collaboration across internal disciplines, the Company continued to focus on meeting or exceeding our sustainability targets and goals in 2022 while advancing the execution of our broader corporate strategy. This belief in advancing ESG principles coupled with Crew’s ongoing progress, offers another example of how we continue to deliver on milestones and live up to our commitments.

People represent the heart of Crew, and one of our core values is the safety and well-being of our team. We are pleased to report six years of zero lost time injury frequency (“LTIF”) for employees and more than 1,765 days without a lost-time injury for contractors or employees. It is our duty to ensure that everyone gets home safely at the end of each day.  Crew has continued to invest in our safety culture and leadership development, and in 2022 we hosted a comprehensive three-day safety session in Fort St. John, B.C. This workshop was attended by 44 employees and key contractors and was met with very positive feedback from participants.

A critical milestone was achieved during 2022 with the successful conclusion of our Two-Year Plan, which was originally created to improve our financial leverage and profitability. From 2020 to 2022, we generated production growth of 50% and significantly enhanced our financial flexibility, while also reducing emissions intensity, minimizing our environmental footprint, and optimizing operations through fuel switching and innovative new technologies. In lockstep with this growth, we reduced Crew’s absolute energy consumption and total Scope 1 and 2 emissions relative to 2021 levels, along with declines in energy and emissions intensities. Once again, this proves that for Crew, “taking care of business” financially is coupled with improved ESG performance.  These positive impacts on our greenhouse gas (“GHG”) intensities were largely facilitated by flaring and venting reduction strategies, a continued focus on leak detection and response and waste heat recovery improvements. However, we aren’t stopping here. Our team has evaluated the prospect of reducing GHG and emissions intensities by retrofitting our West Septimus gas plant with hydroelectric power. Crew has identified the opportunity to further reduce GHG intensities by electrifying our proposed Groundbirch facility.

The success of our ongoing sustainability programs and efforts has resulted in Crew exceeding several of our previously established long-range targets, including those related to reducing idle well counts and investing in abandonment and reclamation initiatives, all of which help to mitigate risk for the Company. To the end of 2022, Crew realized an 85% reduction in idle well counts over 2020 levels, far exceeding our target of 20%, aided by the divestment of the Lloydminster heavy oil assets in late 2021. In addition, during 2022 we directed the largest investment in our history of $13.1 million for abandonment and reclamation. Since January 2020 through March 2023, we have invested a net total of $24.5 million1 on these restoration initiatives. This level of expenditure represents 123% of our 10-year target for abandonment and reclamation.

With the conclusion of our Two-Year Plan, we have implemented a new and nimble Four-Year Plan, designed to build on the existing momentum, which forecasts continued production growth, a strong balance sheet and continued performance goals for our ESG program through year end 2026. As part of our approach to responsible development programs and a reflection of our sound governance practices, before commencing a project, we invest a significant amount of time and financial resources to ensure extensive consultation with stakeholders, completion of archeological surveys around our development, planning for surface disturbances and understanding impacts on biodiversity and communities. We also incorporate robust future abandonment & reclamation aspects into all development planning to make sure we are good stewards of the land for the long-term.  Our efforts have not gone unnoticed, Crew was recognized by the Ministry of Energy, Mines, and Low Carbon Innovation for achieving certification under Equitable Origin’s EO100™ Standard for Responsible Energy Development. Crew takes our responsibilities to undertake cultural assessments on proposed activities seriously and has been commended by the BC Energy Regulator for demonstrating continuous improvement through previous archaeological assessments as well as our approach to maintaining and improving our archaeology management systems.

Building on our commitment to engage with stakeholders during both development planning and throughout our operations, we believe in doing what is right for people within Crew and in the local communities where we live and work. Where possible, the Company seeks to employ locally owned or operated businesses and have developed valuable relationships with local Indigenous partners. Our team prioritizes giving back to communities by contributing to charitable organizations both financially and by volunteering our time. Our culture of caring is evidenced internally as well, with a workplace that prioritizes a healthy, inclusive, and empowering environment that fosters our team’s entrepreneurial spirit. With more than 81% of our employees having worked with Crew for over five years and 38% for over ten years, we take pride in this strong degree of engagement, dedication, and loyalty among our ‘Crew’.

For Crew, sharing our achievements and performance on sustainability matters goes beyond just compliance. Our team is truly committed to operating at the apex of integrity and accountability, ensuring we deliver value for shareholders in conjunction with delivering on our environmental, social, and governance principles. The collaborative and passionate efforts made by numerous individuals across all disciplines internally at Crew are great examples of how we go above and beyond to drive change. We look forward to sharing our progress and success as we continue advancing our sustainability journey.

Dale O. Shwed
President and CEO

“Crew remains focused on the responsible development of cleaner energy sources such as natural gas. Our world-class Montney land base has access to three export pipelines servicing Canada and the US, along with Canadian and US LNG end markets.

This positions Crew to be part of the global solution in reducing carbon intensive energy sources while providing the world with an affordable and secure energy supply.”

From Our Corporate Governance and Environment, Health, Safety, & Sustainability Chair

“Crew has consistently demonstrated strong governance and oversight with a proven track record spanning over two decades. This commitment to prudent decision-making and the implementation of sound policies has fueled the Company’s responsible growth.”

– Gail Hannon, Director & Chair of the GEHS&S Committee

In 2022, I assumed the role of chair for Crew’s Corporate Governance and Environment, Health, Safety & Sustainability (“GEHS&S”) Committee, with a focus on providing oversight and stewardship of ESG matters while also supporting the continuous integration of ESG principles throughout the organization. In this new role, I am pleased to highlight Crew’s practice of incorporating ESG principles into our operations; a responsibility the organization takes very seriously as a duty to our stakeholders, our planet, and future generations.

Crew’s ESG initiatives have always been an extension of our governance structure, that ensures we give equal weight to environmental and social considerations alongside financial performance. In today’s evolving landscape, we remain committed to adapting and responding to the challenges and opportunities presented by climate change, the evolution of social norms, and increasing stakeholder expectations.

The Company has carefully implemented rigorous environmental management practices to minimize our footprint, while actively pursuing cleaner energy alternatives and reducing emissions wherever possible across our operations. We prioritize the safety and well-being of our team, invest in local communities, and prioritize fostering an inclusive workplace. These efforts are underpinned by a robust governance framework that ensures that transparency, accountability, and ethical decision-making prevail at all levels within Crew.

While the Company is pleased with the progress made to date, and the targets we have met or exceeded, there is always more we can do. Going forward, the GEHS&S Committee intends to continue challenging Crew to set new benchmarks and advance the boundaries of sustainable energy development.

Thank you for your continued support and trust in Crew Energy. Together, we can build a more sustainable and prosperous future.

1  Crew’s net total A&R investment since 2020 includes government funding.