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

Executive Summary

• Western Energy Services Corp. released its financial and operating results for the second quarter and first half of 2025, reporting a decline in revenue but an increase in Adjusted EBITDA for the quarter compared to the prior year.
• The company reported a net loss of $4.6 million ($0.14 per share) for Q2 2025, narrowing from a $5.1 million loss in Q2 2024, driven by higher Adjusted EBITDA and lower finance costs, partially offset by higher depreciation.
• Operational highlights include a 16% increase in Canadian drilling operating days and a strategic shift in US operations to North Dakota, while production services activity in Canada saw a significant decline in service hours.

Key Details

• Q2 2025 Financials:
  • Revenue: $40.0 million (down 7% from $43.0 million in Q2 2024).
  • Adjusted EBITDA: $5.9 million (up 11% from $5.3 million in Q2 2024).
  • Net Loss: $4.6 million ($0.14 basic loss per share) vs. $5.1 million ($0.15 basic loss per share) in Q2 2024.
  • Cash Flow from Operations: $19.8 million.
  • Additions to Property and Equipment: $6.0 million ($1.2M expansion capital for rig upgrades, $4.8M maintenance capital).
  • Debt Repayment: Voluntary principal repayment of $5.0 million on the Second Lien Facility.
• H1 2025 Financials:
  • Revenue: $109.0 million (up 4% from $105.0 million in H1 2024).
  • Adjusted EBITDA: $19.9 million (down 3% from $20.5 million in H1 2024).
  • Net Loss: $2.2 million ($0.06 basic loss per share) vs. $3.7 million ($0.11 basic loss per share) in H1 2024.
  • Additions to Property and Equipment: $10.9 million ($1.9M expansion capital, $9.0M maintenance capital).
• Operational Highlights (Q2 2025):
  • Canada Drilling: Operating Days increased 16% to 764; Rig Utilization increased to 25% (from 21%); Revenue per Operating Day averaged $32,709 (up 3%).
  • US Drilling: Operating Days decreased 28% to 110; Rig Utilization averaged 17% (down from 24%); Revenue per Operating Day averaged US$32,506 (up 8% YoY).
  • Production Services (Canada): Service Hours decreased 43% to 7,693; Service Rig Utilization dropped to 19% (from 33%); Revenue per Service Hour averaged $1,025 (up 1%).
• Balance Sheet & Capital:
  • Working Capital: $12.6 million (June 30, 2025).
  • Total Assets: $407.8 million.
  • Long-term Debt (Non-current): $89.1 million.
  • 2025 Capital Budget: $20 million total ($2M expansion, $18M maintenance).
• Rig Fleet Status (as of June 30, 2025):
  • Total Marketed Drilling Rigs: 41 (34 in Canada, 7 in US).
  • Total Owned Drilling Rigs: 55 (48 in Canada, 7 in US).
  • Total Owned Well Servicing Rigs: 62.
  • Current Activity: 11 drilling rigs and 8 well servicing rigs currently operating.
• Commodity Prices (Q2 2025):
  • WTI Crude Oil Average: US$63.74/bbl (down 21% YoY).
  • WCS Crude Oil Average: CDN$74.89/bbl (down 18% YoY).
  • AECO Natural Gas Average: CDN$1.80/mcf (up 48% YoY).
• Debt Extension:
  • On January 27, 2025, the maturity date of the Second Lien Facility with Alberta Investment Management Corporation was extended from May 18, 2026, to May 18, 2027.

Notable Quotes

• "In Canada, Operating Days of 764 in the second quarter of 2025 were 108 days (or 16%) higher compared to 656 days in the second quarter of 2024... mainly due to more upgraded rigs working through spring break up in 2025, as well as improved customer retention in 2025 resulting from targeted marketing efforts."
• "The improvement in pricing [in the US] reflects a more favorable rig mix following the Company's strategic decision to focus its US operations more in North Dakota."
• "Western is also cautiously optimistic that the current trade environment may prompt renewed focus among Canadian provinces on strengthening domestic energy independence, which may help accelerate additional project approvals."