STAMPEDE DRILLING INC. ANNOUNCES 2025 ANNUAL AND FOURTH QUARTER RESULTS

Executive Summary

• Stampede Drilling Inc. reported its Q4 2025 and full‑year 2025 financial and operational results, showing a strong quarterly net income increase (+559 %) but a year‑over‑year decline in revenue (‑13 %) and net income (‑26 %).
• The company repurchased 3,720 shares in Q4 2025 and 7,976 shares for the full year under its normal course issuer bid (NCIB) at average prices of $0.10 and $0.12 respectively.
• Management highlighted improved rig utilization in H2 2025, a robust start to Q1 2026 with 15 of 17 rigs operating, and a continued focus on free‑cash‑flow generation and shareholder returns.

Key Details

• Q4 2025 Financial Highlights
• Revenue: $21.3 M (↑ 4 % YoY)
• Gross margin: 33 % (flat YoY)
• Net income: $4.53 M (↑ 559 %) – driven by gain on sale of Rig 24 components.
• Adjusted EBITDA: $4.94 M (↑ 24 %).
• Free cash flow: $3.10 M (↑ 74 %).

• Capital expenditures: $1.46 M (growth capex $830 k, maintenance $630 k).

• 2025 Full‑Year Financial Highlights

• Revenue: $71.4 M (↓ 13 % YoY) – primarily due to a 10 % reduction in operating days.
• Gross margin: 32 % (down 1 pt).
• Net income: $3.82 M (↓ 26 %).
• Adjusted EBITDA: $13.64 M (↓ 22 %).
• Free cash flow: $6.81 M (↓ 28 %).

• Capital expenditures: $15.67 M (growth capex $12.71 M, maintenance $2.96 M).

• Share Repurchases

• Q4 2025: 3,720 shares at $0.10 average price – total $372 k.
• 2025 total: 7,976 shares at $0.12 average price – total $972 k.

• Cumulative since June 2023: 35,580 shares (15.6 % of outstanding) at $0.20 avg price – total $6.996 M.

• Operational Metrics

• Rigs marketed: 17 (down from 19 YoY).
• Rig utilization Q4 2025: 51 % (↑ 10 pp vs. 41 % prior year).
• Full‑year utilization 2025: 43 % (≈ industry average).

• Operating days 2025: 2,637 (↓ 10 %).

• Outlook & Guidance

• Management expects minimal incremental capital to achieve full rig utilization.
• Emphasis on preserving liquidity for shareholder returns via NCIB and potential growth initiatives.
• Positive macro‑environment signals (e.g., infrastructure projects) are expected to support demand in 2026.

Notable Quotes

• “Stampede exited 2025 with stronger utilization… early indications in 2026 suggest this momentum has continued, supported by improved customer sentiment and stronger year‑over‑year activity.” – Lyle Whitmarsh, President & CEO

Materiality Assessment: Material – Neutral (the release contains comprehensive financial results and operational updates that are material to investors, though the overall performance is mixed).