Trican Reports Second Quarter Results for 2025 and Declares Quarterly Dividend

Executive Summary

• Trican Well Service Ltd. reported second quarter 2025 financial results, showing a marginal increase in revenue and profitability compared to the prior year period, driven by increased operating activity despite weak natural gas prices.
• The Company announced a strategic acquisition of Iron Horse Coiled Tubing Inc. for approximately $77.35 million in cash and 33.76 million common shares, expanding Trican’s integrated fracturing and coiled tubing capabilities in the Western Canadian Sedimentary Basin.
• Management approved a 10% increase in the quarterly base dividend to $0.055 per share, effective upon the closing of the Iron Horse acquisition, while continuing active share repurchases under the NCIB program.

Key Details

• Q2 2025 Financial Performance (Three Months Ended June 30, 2025):
  • Revenue: $213.8 million (vs. $211.8 million in Q2 2024).
  • Adjusted EBITDA: $44.9 million (vs. $40.7 million in Q2 2024).
  • Adjusted EBITDAS: $47.3 million (vs. $45.2 million in Q2 2024).
  • Net Profit: $19.5 million ($0.11 per share basic and diluted) vs. $16.2 million ($0.08 per share) in Q2 2024.
  • Free Cash Flow: $24.4 million ($0.13 per share) vs. $20.9 million ($0.10 per share) in Q2 2024.
  • Cash Balance: $36.3 million at June 30, 2025 (vs. $26.3 million at Dec 31, 2024).
• Iron Horse Acquisition:
  • Agreement signed July 3, 2025, to acquire all issued and outstanding shares of Iron Horse Coiled Tubing Inc.
  • Consideration: Approximately $77.35 million in cash (before closing adjustments) plus 33.76 million common shares of Trican.
  • Target Profile: Privately owned fracturing and coiled tubing services provider operating in the Cardium, Charlie Lake, Mannville Stack, Viking, Montney, and Shaunavon plays.
  • Status: Subject to customary closing conditions, including regulatory approvals.
• Dividend Increase:
  • Board approved a 10% increase to the quarterly base dividend to $0.055 per share (from $0.050), pending closing of the Acquisition.
  • Annualized dividend increases from $0.200 to $0.220 per share.
  • First distribution scheduled for September 30, 2025, to shareholders of record as of September 12, 2025.
• Share Repurchases (NCIB):
  • Q2 2025: Purchased and cancelled 8,061,062 shares at a weighted average price of $4.01.
  • YTD 2025: Purchased and cancelled 10,602,082 shares at a weighted average price of $4.16.
  • Total program completion: 13,187,215 shares (approx. 69% of the 19,010,793 shares eligible under the 2024-2025 program).
• Operational Metrics (Q2 2025):
  • Total Job Count: 1,536.
  • Total Proppant Pumped: 423,000 tonnes.
  • Hydraulic Pumping Capacity: 502,000 HHP.
  • Active Fracturing Crews: 7; Parked Crews: 4.
  • Sales Mix: Fracturing 71%, Cementing 20%, Coiled Tubing 9%.
• Capital Expenditures:
  • Q2 2025 CapEx: $16.2 million (Maintenance: $14.3 million; Growth: $2.0 million).
  • 2025 Approved Budget: $70.4 million for maintenance and growth initiatives.
  • Technology Modernization: $10 million budgeted for 2025 for ERP platform implementation.
• Outlook & Market Context:
  • Positive outlook driven by LNG Canada exports, Trans Mountain Pipeline expansion, and growing activity in Montney and Duvernay plays.
  • Fleet upgrades include five active Tier 4 DGB fleets (210,000 HHP capacity) and deployment of electric ancillary equipment.
  • US-Canada tariff tensions regarding frac sand have eased following reviews and removals.