WESTERN ENERGY SERVICES CORP. RELEASES THIRD QUARTER 2025 FINANCIAL AND OPERATING RESULTS

Executive Summary

• Western Energy Services Corp. reported Q3 2025 revenue of $50.0 M (‑14% YoY) and Adjusted EBITDA of $13.1 M (+14% YoY).
• The company posted a net loss of $2.2 M for the quarter ($0.07 per share), widening from a $1.2 M loss a year earlier, driven by higher asset disposal losses despite stronger adjusted earnings.
• Operationally, Canadian drilling rig utilization fell to 33% (down from 36%) while U.S. drilling focus shifted to North Dakota, resulting in mixed changes to operating days and revenue per day across regions.

Key Details

• Financial Highlights – Q3 2025
• Revenue: $50.0 M vs. $58.3 M in Q3 2024 (‑14%).
• Adjusted EBITDA: $13.1 M vs. $11.4 M in Q3 2024 (+14%).
• Adjusted EBITDA margin: 26% vs. 20% prior year (+30%).
• Net loss: $(2.24) M ($0.07 per share) vs. $(1.19) M ($0.04) a year earlier (‑88%).
• Cash flow from operations: $8.45 M (+56%).

• Additions to property & equipment: $5.47 M (‑34% YoY).

• Financial Highlights – Nine Months Ended Sep 30 2025

• Revenue: $159.1 M vs. $163.4 M nine months prior (‑3%).
• Adjusted EBITDA: $33.0 M vs. $31.9 M (+3%); would be $36.6 M after normalizing one‑time reorg costs.
• Net loss: $(4.44) M ($0.13 per share) vs. $(4.87) M a year earlier (‑9%).

• Working capital improved to $19.4 M from $9.9 M at end‑2024.

• Debt Activity

• Extended maturity of the second‑lien secured term loan with Alberta Investment Management Corp. to May 18 2027 (originally May 18 2026).

• Voluntary principal repayment of $5.0 M made in Q2 2025.

• Operational Highlights – Canada

• Operating Days: 1,022 (‑8% YoY); drilling rig utilization 33% (‑3 pts).
• Revenue per Operating Day: C$30,425 (‑2%).

• Service rig utilization: 24% (‑7 pts); service hours down 21% to 9,838 h.

• Operational Highlights – United States

• Drilling rig utilization: 24% (down from 36% YoY).
• Revenue per Operating Day (US): US$33,669 (+18%).

• Shifted focus from Texas to North Dakota; operating days fell 36% YoY.

• Capital Expenditures

• Q3 2025 capex $5.5 M (expansion $2.1 M for rig upgrades, maintenance $3.4 M).

• Nine‑month capex $16.4 M (expansion $4.1 M, maintenance $12.3 M).

• Rig Fleet

• Total marketed drilling rigs: 40 (34 Canada, 6 US).
• Owned drilling rigs: 54 (48 Canada, 6 US).

• Well‑servicing rigs owned: 62 (down one unit YoY).

• Commodity Environment

• WTI price down 14% YoY; Western Canadian Select down 12% (Q3) and 8% (nine months).

• Natural gas spot price down 14% in Q3, up 11% over nine‑month period.

• Outlook & Strategic Initiatives

• Continued focus on cost discipline, balance‑sheet strength, and deleveraging.
• Emphasis on North Dakota operations; redeployment of Texas assets.
• Anticipates benefit from Trans Mountain pipeline expansion, Coastal GasLink LNG shipments, and LNG Canada project.

Notable Quotes

• “Despite challenging macro‑economic conditions, our upgraded rig fleet and disciplined cost management position us to capture upside as service demand improves,” – Gavin Lane, CEO.
• “We remain focused on deleveraging while maintaining flexibility to respond to market dynamics,” – Orson Ross, CFO.