Ensign Energy Services (TSE:ESI) Issues Earnings Results

Ensign Energy Services (TSE:ESI) released its quarterly earnings results on Friday. The company reported C($0.07) earnings per share (EPS) for the quarter, FiscalAI reports. The firm had revenue of C$397.33 million for the quarter. Ensign Energy Services had a negative return on equity of 4.13% and a negative net margin of 3.31%.

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

• Second-quarter revenue rose 7% year over year to CAD 397.3 million, while adjusted EBITDA increased 6% to CAD 85.8 million, supported by higher operating activity across Canada, the U.S., and international markets.
• Ensign expects the Citadel Drilling acquisition to close shortly, adding six fully utilized 2,000-horsepower rigs to its Permian fleet and increasing its regional market share to approximately 11%.
• Demand for high-specification rigs is strengthening, with Ensign planning to add rigs in the U.S. and Canada, raise Canadian day rates by roughly CAD 1,000 per day per quarter, and target 5%–10% rate increases on contract rollovers.
• The company reported CAD 30 million of debt repayment in the quarter and reduced interest expense 13%, but revised its 2026 debt-reduction target from CAD 125 million to a net CAD 60 million to accommodate the Citadel acquisition and additional capital spending.
• International operations face geopolitical disruption, including shutdowns of two Kuwait and two Bahrain rigs amid Middle East conflict, while producers remain cautious on capital spending and exposed to global economic and tariff uncertainty.

Ensign Energy Services Stock Performance

TSE:ESI traded down C$0.29 during midday trading on Friday, reaching C$3.21. The stock had a trading volume of 613,932 shares, compared to its average volume of 295,489. The company has a quick ratio of 1.30, a current ratio of 1.31 and a debt-to-equity ratio of 75.31. The stock has a market cap of C$591.77 million, a P/E ratio of -11.07, a P/E/G ratio of 202.94 and a beta of 1.09. The firm has a fifty day simple moving average of C$3.61 and a two-hundred day simple moving average of C$3.63. Ensign Energy Services has a 12-month low of C$2.00 and a 12-month high of C$4.97.

Wall Street Analysts Forecast Growth

Several research analysts have issued reports on the stock. TD lowered their price objective on shares of Ensign Energy Services from C$3.75 to C$3.50 and set a “hold” rating on the stock in a research report on Monday, July 13th. Royal Bank Of Canada upped their target price on shares of Ensign Energy Services from C$3.50 to C$4.00 and gave the company a “sector perform” rating in a report on Tuesday, April 14th. Finally, ATB Cormark Capital Markets raised Ensign Energy Services from a “sector perform” rating to an “outperform” rating and raised their price target for the stock from C$4.00 to C$5.00 in a report on Tuesday, May 12th. One investment analyst has rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat, the company presently has an average rating of “Hold” and a consensus target price of C$3.75.

Ensign Energy Services Company Profile

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.