Ensign Energy Services (TSE:ESI) Issues Earnings Results

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

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 Price Performance

TSE ESI opened at C$3.93 on Friday. Ensign Energy Services has a 12-month low of C$2.30 and a 12-month high of C$4.97. The firm has a market capitalization of C$724.41 million, a P/E ratio of -17.86, a P/E/G ratio of 202.94 and a beta of 1.41. The firm’s fifty day simple moving average is C$3.85 and its two-hundred day simple moving average is C$3.68. The company has a current ratio of 1.24, a quick ratio of 1.30 and a debt-to-equity ratio of 73.88.

Analyst Upgrades and Downgrades

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

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.