Ensign Energy Services (TSE:ESI) Posts Earnings Results

Ensign Energy Services (TSE:ESI) issued its quarterly earnings results on Friday. The company reported C$0.06 earnings per share for the quarter, FiscalAI reports. The business had revenue of C$481.71 million during the quarter. Ensign Energy Services had a negative return on equity of 3.11% and a negative net margin of 2.45%.

Here are the key takeaways from Ensign Energy Services’ conference call:

• Third-quarter operating days, revenue, adjusted EBITDA and funds flow from operations each increased about 17% year over year. Revenue was CAD 481.7 million and adjusted EBITDA was CAD 115 million.
• The CAD 81.9 million Citadel acquisition added six high-spec rigs in the Permian, all contracted, as well as an MPD business; 23 of the 28 MPD units were active. Management says the acquired rigs are generating strong cash flow.
• Contracted forward revenue reached CAD 1.6 billion, covering about 70% of the global fleet. Ensign also secured its first real-time operating center performance-advisory contract, supporting a rig in Australia.
• Management sees a tightening rig market and expects further rate increases: U.S. bids have been rising by about $1,000 per day per quarter, with a further roughly $4,000-per-day increase anticipated by the end of 2027. It also expects Canadian activity to peak above 60 rigs in Q1 2027.
• Ensign lowered its 2026 debt-reduction target from CAD 60 million to CAD 50 million, citing the acquisition and reinvestment in capital expenditures. The 2026 capital budget is about CAD 190 million, with approximately CAD 100 million allocated to selective upgrades.

Ensign Energy Services Stock Performance

Shares of Ensign Energy Services stock traded up C$0.26 on Friday, reaching C$3.93. 388,978 shares of the company were exchanged, compared to its average volume of 307,312. The company has a debt-to-equity ratio of 73.88, a quick ratio of 1.30 and a current ratio of 1.24. The company’s 50-day moving average is C$3.84 and its two-hundred day moving average is C$3.68. The firm has a market cap of C$724.41 million, a price-to-earnings ratio of -17.86, a P/E/G ratio of 202.94 and a beta of 1.41. Ensign Energy Services has a 1-year low of C$2.30 and a 1-year high of C$4.97.

Analyst Upgrades and Downgrades

Several research firms have weighed in on ESI. TD Securities upgraded shares of Ensign Energy Services from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, October 20th. TD raised shares of Ensign Energy Services from a “hold” rating to a “buy” rating and increased their target price for the stock from C$3.50 to C$4.75 in a report on Tuesday, October 20th. One research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and two have issued a Hold rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of C$4.31.

About Ensign Energy Services

Ensign is a global leader in oilfield services, headquartered out of Calgary, Alberta, operating in Canada, the United States and internationally. We are one of the world’s top land-based drilling and well servicing contractors serving crude oil, natural gas, and geothermal operators. Our premium services include contract drilling, directional drilling, underbalanced and managed pressure drilling, rental equipment and well servicing. Please visit our website at www.ensignenergy.com.