STAMPEDE DRILLING INC. ANNOUNCES 2025 SECOND QUARTER RESULTS

Executive Summary

• Stampede Drilling Inc. reported its consolidated financial and operational results for the three and six months ended June 30, 2025, showing significant declines in revenue, operating days, and profitability compared to the same period in 2024.
• The company reported a net loss of $2,996,000 for Q2 2025 and $1,559,000 for the first half of 2025, driven by reduced drilling rig utilization and increased repair and maintenance costs.
• Stampede extended its credit agreement with its banking syndicate, pushing the maturity date from September 20, 2026, to September 20, 2028, while maintaining the total facility limit at $50 million.

Key Details

• Q2 2025 Financials (Three Months Ended June 30, 2025):
  • Revenue: $6,009,000 (down 39% from $9,918,000 in Q2 2024).
  • Gross Margin: $960,000 (16% margin, down from 30% in Q2 2024).
  • Net Loss: $2,996,000 (compared to a net loss of $2,248,000 in Q2 2024).
  • Adjusted EBITDA: ($609,000) (down from $934,000 in Q2 2024).
  • Free Cash Flow: ($2,301,000) (down from ($841,000) in Q2 2024).
  • Basic and Diluted Loss Per Share: ($0.01).
• H1 2025 Financials (Six Months Ended June 30, 2025):
  • Revenue: $29,416,000 (down 21% from $37,417,000 in H1 2024).
  • Gross Margin: $8,828,000 (30% margin, down from 34% in H1 2024).
  • Net Loss: $1,559,000 (compared to net income of $2,691,000 in H1 2024).
  • Adjusted EBITDA: $4,506,000 (down 48% from $8,596,000 in H1 2024).
  • Free Cash Flow: $1,589,000 (down 63% from $4,307,000 in H1 2024).
  • General and Administrative Expenses: $5,035,000 (down 2% from $5,156,000 in H1 2024).
• Operational Metrics:
  • Operating Days: 226 days in Q2 2025 (down 34% from 343 days in Q2 2024); 1,031 days in H1 2025 (down 21% from 1,299 days in H1 2024).
  • Rig Utilization: 15% in Q2 2025 (down from 20% in Q2 2024); 34% in H1 2025 (down from 38% in H1 2024).
  • Rig Count: 17 marketable rigs operational during H1 2025 (down from 19 in H1 2024).
  • Revenue Per Day: $26.6 in Q2 2025 (down 8% from $28.9 in Q2 2024); $28.5 in H1 2025 (down 1% from $28.8 in H1 2024).
  • Capital Expenditures: $4,439,000 in Q2 2025; $9,231,000 in H1 2025.
• Capital Structure & Corporate Actions:
  • Share Repurchase: Repurchased and cancelled 3,125 common shares in Q2 2025 under the Normal Course Issuer Bid (NCIB) at a weighted average price of $0.14 per share, totaling $438,000. The NCIB expired on June 2, 2025.
  • Credit Facility Extension: On July 21, 2025, Stampede extended its Credit Agreement term from September 20, 2026, to September 20, 2028. The total facility remains $50 million, consisting of a $20 million non-revolving term loan and two $15 million revolving credit facilities.
• Outlook:
  • Management anticipates continued commodity price volatility but expects tidewater access improvements (Trans Mountain pipeline expansion, LNG Canada operations) to alleviate pressures.
  • Stampede expects to build on the momentum of having 14 out of 17 marketable rigs operational in H1 2025 into the back half of the year.

Notable Quotes

• No direct quotes from the CEO or President were included in the provided text.