STAMPEDE DRILLING INC. ANNOUNCES 2026 FIRST QUARTER RESULTS

Stampede Drilling’s Q1 2026 earnings (released May 14, 2026) show a strong year‑over‑year rebound: - Revenue up 10% to $25.8 million - Net income up 19% to $1.73 million - Adjusted EBITDA up 14% to $5.83 million - Drilling rig operating days grew 18% to 946 days; utilisation jumped to 62% (from 53% in Q1 2025) - Free cash flow rose 7% to $4.16 million - Gross margin slipped 2 pp to 32%, attributed to lower revenue per day - Capital expenditures totalled $1.9 million (growth $1.31 million, maintenance $0.6 million) - The company repurchased a nominal 28,000 shares under its NCIB in the quarter.

The release follows several months of improving fundamentals, including a five‑year strategic drilling agreement with Greenland Energy Co. (March 27, 2026) that supplied a specialised Arctic rig (#12) and the sale of legacy equipment (Nov 2025) that strengthened the balance sheet.

The Q1 results are materially positive in the context of a company that had been shrinking: full‑year 2025 revenue fell 13%, nine‑month 2025 net income was negative, and utilisation averaged only 43%. The sharp uptick to 62% utilisation - the highest in the data provided - confirms management’s earlier claim that demand was picking up, and the Greenland contract is clearly contributing. While the Q4 2025 release already telegraphed that 15 of 17 rigs were working in early 2026, the actual Q1 numbers handily beat the prior year and demonstrate that the improvement is not seasonal noise but a real inflection.

Key positives: - Operating leverage is apparent: an 18% rise in operating days drives a 19% net‑income jump with little incremental capital. - Free cash flow remains robust, allowing continued modest share buybacks and debt‑servicing capacity. - The Greenland deal de‑risks a portion of the fleet for up to five years in a frontier basin with potential for follow‑on work.

Risks to temper the enthusiasm: - Revenue per day declined (gross margin fell), suggesting pricing pressure or mix shift toward lower‑dayrate work. - The broader Canadian drilling environment remains volatile; the company acknowledges “cautiously optimistic” sentiment, not a full‑fledged recovery. - The NCIB buyback volume is trivial vs. the float, so shareholder returns through that channel are symbolic.

On balance, the quarter confirms a genuine operational turnaround, making the stock more attractive than at any time in the past year.

Stampede Drilling Inc. (TSX‑V: SDI) is a Canadian energy services company providing drilling rigs for Arctic and cold‑weather environments. It markets 17 rigs (down from 19 a year earlier) after divesting components of an A/C triple rig in 2025. The company’s flagship contracting now is Rig #12, purpose‑built for extreme Arctic conditions, under a five‑year agreement with Greenland Energy Company for onshore oil exploration in the Jameson Land Basin. This project represents a frontier, high‑impact opportunity that could materially increase rig utilisation over multiple years.