Operational and Financial Highlights
Three Months Ended September 30, 2025
Financial Highlights:
Third quarter revenue of $50.0 million in 2025 was $8.3 million (or 14%) lower than the third quarter of 2024, due to lower activity in both the contract drilling and well servicing segments.
Adjusted EBITDA of $13.1 million in the third quarter of 2025 was $1.7 million (or 14%) higher compared to $11.4 million in the third quarter of 2024, despite third quarter revenue decreasing by 14% compared to the same period in the prior year. There were no one-time reorganization costs incurred in the third quarter of 2025, whereas the third quarter of 2024 had one-time reorganization costs of $0.6 million.
The Company incurred a net loss of $2.2 million in the third quarter of 2025 ($0.07 net loss per basic common share) as compared to a net loss of $1.2 million in the third quarter of 2024 ($0.04 net loss per basic common share) as a $3.0 million higher loss on the sale of fixed assets and higher depreciation expense, were offset partially by higher Adjusted EBITDA, lower finance costs and an increase in income tax recovery.
Third quarter additions to property and equipment of $5.5 million in 2025 compared to $8.2 million in the third quarter of 2024, consisting of $2.1 million of expansion capital related to rig upgrades and $3.4 million of maintenance capital.
Operational Highlights:
In Canada, Operating Days of 1,022 in the third quarter of 2025 were 93 days (or 8%) lower compared to 1,115 days in the third quarter of 2024. Drilling rig utilization in Canada was 33% in the third quarter of 2025, compared to 36% in the same period of the prior year, mainly due to continued weak commodity prices, impacting customer drilling programs.
Revenue per Operating Day in Canada averaged $30,425 in the third quarter of 2025, which was 2% lower than the same period of the prior year.
In the US, drilling rig utilization averaged 24% in the third quarter of 2025, which was lower than the third quarter of 2024, due to continued low industry activity in the US as well as a change in focus to North Dakota from Texas.
Revenue per Operating Day in the US for the third quarter of 2025 averaged US$33,669, an 18% increase compared to US$28,429 in the same period of the prior year. The improvement in pricing reflects a more favorable rig mix following the Company's strategic decision to focus its US operations more in North Dakota.
In Canada, service rig utilization was 24% in the third quarter of 2025, compared to 31% in the same period of the prior year, as Service Hours decreased by 21% to 9,838 hours from 12,525 hours in the same period of the prior year, mainly due to changes in customer programs.
Revenue per Service Hour averaged $950 in the third quarter of 2025 and was 3% lower than the third quarter of 2024.
Nine Months Ended September 30, 2025
Financial Highlights:
Revenue for the nine months ended September 30, 2025 of $159.1 million was $4.3 million (or 3%) lower than the same period in 2024, as lower production services revenue was offset by higher contract drilling revenue in Canada.
Despite revenue decreasing for the nine months ended September 30, 2025, Adjusted EBITDA of $33.0 million was $1.1 million (or 3%) higher compared to $31.9 million in the same period of 2024, due to cost synergy savings associated with a reorganization of senior management in 2025. Included in Adjusted EBITDA for the nine months ended September 30, 2025, was $3.6 million of one-time reorganization costs, compared to $2.8 million in 2024. After normalizing for one-time reorganization costs in both periods, Adjusted EBITDA for the nine months ended September 30, 2025 would have totalled $36.6 million, compared to $34.7 million in 2024, an increase of $1.9 million due to higher drilling revenue in Canada and lower administrative expenses, which were offset partially by lower production services activity in Canada and lower drilling activity in the US.
The Company incurred a net loss of $4.4 million for the nine months ended September 30, 2025 ($0.13 net loss per basic common share) as compared to a net loss of $4.9 million in the same period of 2024 ($0.14 net loss per basic common share) as higher Adjusted EBITDA, and decreases in stock based compensation expense and finance costs were offset by a $2.0 million higher loss on the sale of fixed assets and a lower income tax recovery.
For the nine months ended September 30, 2025, additions to property and equipment of $16.4 million compared to $15.8 million in the same period of the prior year, consisting of $4.1 million of expansion capital related to rig upgrades and $12.3 million of maintenance capital.
On January 27, 2025, the Company announced that it extended the maturity date of its second lien secured term loan with Alberta Investment Management Corporation (the "Second Lien Facility") from May 18, 2026 to May 18, 2027. The Company also made a voluntary principal repayment of $5.0 million on its Second Lien Facility in the second quarter of 2025.
Operational Highlights:
In Canada, Operating Days of 3,099 for the nine months ended September 30, 2025, were 375 days (or 14%) higher compared to 2,724 days in the same period of the prior year. Drilling rig utilization in Canada was 33% for the nine months ended September 30, 2025, compared to 29% in the same period of the prior year, mainly due to more upgraded rigs working through spring break up in 2025 than in 2024, as well as improved customer retention year over year due to targeted marketing efforts.
Revenue per Operating Day in Canada averaged $32,344 for the nine months ended September 30, 2025, which was consistent with the same period of the prior year.
In the US, drilling rig utilization averaged 22% for the nine months ended September 30, 2025, which was lower than 28% in the same period in the prior year, due to continued low industry activity in the US and a change in focus to North Dakota from Texas.
Revenue per Operating Day in the US for the nine months ended September 30, 2025 averaged US$31,108, a 4% increase compared to US$29,904 in the same period of the prior year, mainly due to changes in rig mix.
In Canada, service rig utilization was 26% in the nine months ended September 30, 2025 compared to 36% in the same period of the prior year, as Service Hours decreased by 28% to 31,946 hours from 44,368 hours in the same period of the prior year, mainly due to changes in customer programs.
Revenue per Service Hour averaged $1,021 for the nine months ended September 30, 2025, and was consistent with the same period in the prior year.
Selected Financial Information
(stated in thousands, except share and per share amounts)
Three months ended September 30
Nine months ended September 30
Financial Highlights
2025
2024
Change
2025
2024
Change
Revenue
50,035
58,343
(14 %)
159,050
163,358
(3 %)
Adjusted EBITDA(1)
13,062
11,433
14 %
32,991
31,911
3 %
Adjusted EBITDA as a percentage of revenue(1)
26 %
20 %
30 %
21 %
20 %
5 %
Cash flow from operating activities
8,452
5,404
56 %
30,934
32,466
(5 %)
Additions to property and equipment
5,465
8,223
(34 %)
16,398
15,760
4 %
Net loss
(2,242)
(1,190)
(88 %)
(4,441)
(4,871)
9 %
, basic and diluted net loss per share
(0.07)
(0.04)
(75 %)
(0.13)
(0.14)
7 %
Weighted average number of shares
, basic and diluted
33,843,022
33,843,022
-
33,843,022
33,843,017
-
Outstanding common shares as at period end
33,843,022
33,843,022
-
33,843,022
33,843,022
-
(1) See "Non-IFRS Measures and Ratios" included in this press release.
Three months ended September 30
Nine months ended September 30
Operating Highlights(2)
2025
2024
Change
2025
2024
Change
Contract Drilling
Canadian Operations:
Operating Days
1,022
1,115
(8 %)
3,099
2,724
