Ensign Energy Services Inc. Reports 2026 Third Quarter Results

CALGARY, AB, Nov. 6, 2026 /CNW/ --

FINANCIAL HIGHLIGHTS
(Unaudited, in thousands of Canadian dollars, except per common share data)

	Three months ended September 30						Nine months ended September 30
	2026		2025		% change		2026		2025		% change
Revenue	$  481,711		$  411,157		17		$           1,297,073		$           1,220,083		6
Adjusted EBITDA ^1	114,998		98,596		17		295,673		282,333		5
Adjusted EBITDA per common share ^1
Basic	$0.62		$0.53		17		$1.60		$1.53		5
Diluted	$0.62		$0.53		17		$1.60		$1.53		5
Net income (loss) attributable to common shareholders	10,838		(3,263)		nm		(13,342)		(25,975)		(49)
Net income (loss) attributable to common shareholders per common share
Basic	$0.06		$(0.02)		nm		$(0.07)		$(0.14)		(50)
Diluted	$0.06		$(0.02)		nm		$(0.07)		$(0.14)		(50)
Cash provided by operating activities	108,874		100,605		8		257,409		262,245		(2)
Funds flow from operations	122,523		88,221		39		293,534		257,279		14
Funds flow from operations per common share
Basic	$0.66		$0.48		38		$1.59		$1.40		14
Diluted	$0.66		$0.47		40		$1.58		$1.39		14
Total debt, net of cash	970,984		925,043		5		970,984		925,043		5
Weighted average common shares - basic (000s)	184,426		183,833		--		184,337		184,062		--
Weighted average common shares - diluted (000s)	185,423		184,102		1		185,325		184,446		--

nm - calculation not meaningful

¹  Please refer to Adjusted EBITDA calculation in Non-GAAP Measures.

• Revenue for the third quarter of 2026 was $481.7 million, a 17 percent increase from the third quarter of 2025 revenue of $411.2 million.
• Revenue for the third quarter of 2026 by geographical area:
  • Canada - $136.0 million, 28 percent of total;
  • United States - $262.5 million, 55 percent of total; and
  • International - $83.2 million, 17 percent of total.
• Adjusted EBITDA for the third quarter of 2026 was $115.0 million, a 17 percent increase from Adjusted EBITDA of $98.6 million for the third quarter of 2025.
• Funds flow from operations for the third quarter of 2026 increased 39 percent to $122.5 million from $88.2 million in the third quarter of the prior year.
• Net income attributable to common shareholders for the third quarter of 2026 was $10.8 million, up from net loss attributed to common shareholders of $3.3 million for the third quarter of 2025.
• On August 13, 2026, the Company acquired all the issued and outstanding shares of Citadel Drilling Ltd. ("Citadel Drilling") for a total consideration of $81.9 million. The strategic business combination was completed to enhance the Company's presence in the United States Permian area with six high-spec drilling rigs that are fully contracted and expand the Company's product offering with Citadel Drilling's managed-pressure-drilling division.
• During the third quarter of 2026, the Company had net debt draws of $68.7 million and net debt draws of $31.7 million during the first nine months of 2026. The Company has targeted approximately $50.0 million in net debt reduction for the remainder of 2026. If industry conditions change, this target could be increased or decreased
• Interest expense decreased by four percent to $17.7 million from $18.4 million. The decrease is the result of lower debt levels (prior to the Citadel Drilling acquisition) and effective interest rates.

OPERATING HIGHLIGHTS
(Unaudited)

	Three months ended September 30						Nine months ended September 30
	2026		2025		% change		2026		2025		% change
Drilling
Number of marketed rigs
Canada	77		88		(13)		77		88		(13)
United States	75		71		6		75		71		6
International	26		27		(4)		26		27		(4)
Total	178		186		(4)		178		186		(4)
Operating days ^1
Canada	3,790		3,509		8		9,865		10,006		(1)
United States	3,721		3,194		16		10,001		8,909		12
International	1,113		935		19		3,525		3,165		11
Total	8,624		7,638		13		23,391		22,080		6
Well Servicing	2026		2025		% change		2026		2025		% change
Number of rigs
Canada	38		41		(7)		38		41		(7)
United States	47		47		--		47		47		--
Total	85		88		(3)		85		88		(3)
Operating hours
Canada	13,921		13,687		2		39,913		38,011		5
United States	25,233		27,033		(7)		72,871		76,962		(5)
Total	39,154		40,720		(4)		112,784		114,973		(2)

¹ Defined as contract drilling days, between spud to rig release.

• Canadian drilling recorded 3,790 operating days in the third quarter of 2026, an eight percent increase from 3,509 operating days in the third quarter of 2025. Canadian well servicing recorded 13,921 operating hours in the third quarter of 2026, a two percent increase from 13,687 operating hours in the third quarter of 2025.
• United States drilling recorded 3,721 operating days in the third quarter of 2026, a 16 percent increase from 3,194 operating days in the third quarter of 2025. United States well servicing recorded 25,233 operating hours in the third quarter of 2026, a seven percent decrease from 27,033 operating hours in the third quarter of 2025.
• International drilling recorded 1,113 operating days in the third quarter of 2026, a 19 percent a increase from 935 operating days recorded in the third quarter of 2025.

FINANCIAL POSITION HIGHLIGHTS

As at ($ thousands)	September 30 2026		December 31 2025		September 30 2025
Working capital^1	76,678		89,618		38,256
Cash	22,737		16,189		16,733
Total debt, net of cash	970,984		918,613		925,043
Total assets	2,881,238		2,643,027		2,750,660
Total debt to total debt plus equity ratio	0.43		0.42		0.42

¹ See non-GAAP Measures section.

CAPITAL EXPENDITURE HIGHLIGHTS

	Three months ended September 30										Nine months ended September 30
($ thousands)	2026			2025			% change				2026			2025			% change
Capital expenditures
Upgrade	26,863			13,866			94				66,645			30,112			nm
Maintenance	63,040			50,549			25				155,369			123,578			26
Proceeds from disposals of property and equipment	(4,627)			(1,966)			nm				(13,850)			(5,228)			nm
Net capital expenditures	85,276			62,449			37				208,164			148,462			40

nm - calculation not meaningful

• Net purchases of property and equipment for the third quarter of 2026 totaled $85.3 million, consisting of $26.9 million in upgrade capital and $63.0 million in maintenance capital, offset by disposition proceeds of $4.6 million. Maintenance capital expenditures for 2026 are targeted to be approximately $190.0 million, with selective upgrade capital of approximately $100.0 million. As of September 30, 2026, the Company had total customer capital commitments of $87.0 million related to various upgrade capital projects. The Company continues to consider rig relocation or upgrade projects in response to customer demand and under appropriate contract terms, which may impact capital expenditures.

This news release contains "forward-looking information and statements" within the meaning of applicable securities legislation. For a full disclosure of the forward-looking information and statements and the risks to which they are subject, see the "Advisory Regarding Forward-Looking Statements" later in this news release. This news release contains references to Adjusted EBITDA, Adjusted EBITDA per common share and working capital. These measures do not have any standardized meaning prescribed by IFRS Accounting Standards ("IFRS") and accordingly, may not be comparable to similar measures used by other companies. The non-GAAP measures included in this news release should not be considered as an alternative to, or more meaningful than, the IFRS measures from which they are derived or to which they are compared. See "Non-GAAP Measures" later in this news release.

OVERVIEW

Revenue for the third quarter of 2026 was $481.7 million, a 17 percent increase from $411.2 million in revenue for the third quarter of 2025. Revenue for the nine months ended September 30, 2026, was $1,297.1 million, an increase of six percent from revenue for the nine months ended September 30, 2025, of $1,220.1 million.

Adjusted EBITDA totaled $115.0 million ($0.62 per common share) in the third quarter of 2026, 17 percent higher than Adjusted EBITDA of $98.6 million ($0.53 per common share) in the third quarter of 2025. For the nine months ended September 30, 2026, Adjusted EBITDA totaled $295.7 million ($1.60 per common share), five percent higher than Adjusted EBITDA of $282.3 million ($1.53 per common share) in the first nine months ended September 30, 2025.

Net income attributable to common shareholders for the third quarter of 2026 was $10.8 million ($0.06 per common share) compared to a net loss attributable to common shareholders of $3.3 million ($0.02 per common share) for the third quarter of 2025. Net loss attributable to common shareholders for the nine months ended September 30, 2026, was $13.3 million ($0.07 per common share), compared to a net loss attributable to common shareholders of $26.0 million ($0.14 per common share) for the nine months ended September 30, 2025.

Funds flow from operations increased 39 percent to $122.5 million ($0.66 per common share) in the third quarter of 2026 compared to $88.2 million ($0.48 per common share) in the third quarter of the prior year. Funds flow from operations increased 14 percent to $293.5 million ($1.59 per common share) for the nine months ended September 30, 2026, compared to $257.3 million ($1.40 per common share) for the nine months ended September 30, 2025.

During the third quarter of 2026, the Company acquired all the issued and outstanding shares of Citadel Drilling Ltd. ("Citadel Drilling") for a total consideration of $81.9 million. The strategic business combination was completed to enhance the Company's presence in the United States Permian area with six high-spec drilling rigs that are fully contracted and expand the Company's product offering with Citadel Drilling's managed-pressure-drilling division.

The oilfield services sector maintains a cautiously constructive outlook as industry activity has generally improved year over year despite continued volatility in global energy markets. Geopolitical developments, including ongoing instability in the Middle East, disruptions to shipping and energy flows through the Strait of Hormuz, the continuing conflict between the Russian Federation and Ukraine, and evolving United States trade and foreign policy actions, continue to influence commodity prices, supply chains and customer spending decisions. Recent disruptions in the Strait of Hormuz have highlighted the sensitivity of global energy markets to geopolitical events and the potential impact on oil supply and pricing.

The Company's operating days were higher for the nine months ended September 30, 2026, when compared with the same periods in 2025 as operations were positively impacted by the above-mentioned uncertainty in the global economy and volatility in the crude oil and natural gas commodity pricing. Furthermore, the Company saw an increase in operating days as a result of the Citadel Drilling acquisition mentioned above.

The average United States dollar exchange rate was $1.39 for the first nine months of 2026 (2025 - $1.40), slightly lower than the first nine months of 2025. 

The Company's working capital as at September 30, 2026, was $76.7 million, compared to $89.6 million as at December 31, 2025.

The Company's available liquidity, consisting of cash and available borrowings under its $950.0 million revolving credit facility (the "Credit Facility") and its $30.0 million general corporate revolving facility ("Revolving Facility"), was $30.7 million as at September 30, 2026 (December 31, 2025: $51.8 million).

REVENUE AND OILFIELD SERVICES EXPENSE

	Three months ended September 30						Nine months ended September 30
($ thousands)	2026		2025		% change		2026		2025		% change
Revenue
Canada	136,000		129,671		5		376,413		382,504		(2)
United States	262,537		217,307		21		678,439		620,326		9
International	83,174		64,179		30		242,221		217,253		11
Total revenue	481,711		411,157		17		1,297,073		1,220,083		6
Oilfield services expense	352,055		299,394		18		958,094		896,713		7

Revenue for the three months ended September 30, 2026, totaled $481.7 million, an increase of 17 percent from the three months ended September 30, 2025 of $411.2 million. Revenue for the nine months ended September 30, 2026, totaled $1,297.1 million, a six percent increase from the nine months ended September 30, 2025 of $1,220.1 million.

The increase in total revenue during the first nine months of 2026 was primarily due to the higher operating activity and higher revenue day rates, in addition to the Citadel Drilling acquisition.

CANADIAN OILFIELD SERVICES

Revenue increased five percent to $136.0 million for the three months ended September 30, 2026, from $129.7 million for the three months ended September 30, 2025. The Company recorded revenue of $376.4 million in Canada for the nine months ended September 30, 2026, a decrease of two percent from $382.5 million recorded for the nine months ended September 30, 2025.

Canadian revenue accounted for 28 percent of the Company's total revenue in the third quarter of 2026 (2025 - 32 percent) and 29 percent (2025 - 31 percent) for the first nine months of 2026.

The Company's Canadian drilling operations recorded 3,790 operating days in the third quarter of 2026, compared to 3,509 operating days for the third quarter of 2025, an increase of eight percent. For the nine months ended September 30, 2026, the Company recorded 9,865 operating days compared to 10,006 days for the nine months ended September 30, 2025, a decrease of one percent. Canadian well servicing hours increased two percent totaling 13,921 operating hours in the third quarter of 2026 compared to 13,687 operating hours in the corresponding period of 2025. For the nine months ended September 30, 2026, Canadian well servicing hours increased by five percent totaling 39,913 compared to 38,011 in the corresponding period of 2025.

The financial results for the Company's Canadian operations for the third quarter of 2026 compared to the third quarter of 2025, were higher as a result of increased operating activity. Canadian operations continue to see growth opportunities supported by demand for reliable energy supply amid continued geopolitical uncertainty.

During the first nine months of 2026, the Company transferred 12 under-utilized Canadian drilling rigs into its reserve fleet and reactivated one reserve rig.

UNITED STATES OILFIELD SERVICES

The Company's United States operations recorded revenue of $262.5 million in the third quarter of 2026, an increase of 21 percent from the $217.3 million recorded in the corresponding period of the prior year. During the nine months ended September 30, 2026, revenue of $678.4 million was recorded, an increase of nine percent from the $620.3 million recorded in the corresponding period of the prior year.

The Company's United States operations accounted for 55 percent of the Company's revenue in the third quarter of 2026 (2025 - 53 percent) and 52 percent of the Company's revenue in the first nine months of 2026 (2025 - 51 percent).

Drilling rig operating days increased by 16 percent to 3,721 operating days in the third quarter of 2026 from 3,194 operating days in the third quarter of 2025 and increased by 12 percent to 10,001 operating days in the first nine months of 2026 from 8,909 operating days in the first nine months of 2025. United States well servicing recorded 25,233 operating hours in the third quarter of 2026 which was a seven percent decrease from 27,033 operating hours recorded in the third quarter of 2025. For the first nine months of 2026, well servicing activity decreased by five percent to 72,871 operating hours from 76,962 operating hours in the first nine months of 2025.

Operating and financial results for the Company's United States operations were positively impacted by the Citadel Drilling acquisition, in addition to the increased operating activity due to the elevated commodity pricing. Citadel Drilling contributed $20.6 million in revenue, $3.2 million of income before taxes and 276 operating days for the three and nine months ended September 30, 2026.

During the first nine months of 2026, the Company transferred one under-utilized United States drilling rig into its reserve fleet and transferred one marketed rig from its United States to its international operations.

INTERNATIONAL OILFIELD SERVICES

The Company's international operations recorded revenue of $83.2 million in the third quarter of 2026, a 30 percent increase from the $64.2 million recorded in the corresponding period of the prior year. International revenues for the nine months ended September 30, 2026, increased 11 percent to $242.2 million from $217.3 million recorded for the nine months ended September 30, 2025.

The Company's international operations contributed 17 percent of the total revenue in the third quarter of 2026 (2025 - 15 percent) and 19 percent of the Company's revenue in the first nine months of 2026 (2025 - 18 percent).

International operating days for the three months ended September 30, 2026, totaled 1,113 operating days, an increase of 19 percent from 935 operating days in the same period of 2025. For the nine months ended September 30, 2026, international operating days totaled 3,525 operating days compared to 3,165 operating days for the nine months ended September 30, 2025, an increase of 11 percent.

Operating and financial results from international operations increased as a result of higher operating days.

During the first nine months of 2026, the Company transferred two under-utilized international drilling rigs into its reserve fleet and transferred one marketed rig from the United States to its international operations.

DEPRECIATION

	Three months ended September 30						Nine months ended September 30
($ thousands)	2026		2025		% change		2026		2025		% change
Depreciation	92,827		87,356		6		265,553		252,016		5

Depreciation expense totaled $92.8 million for the third quarter of 2026 compared with $87.4 million for the third quarter of 2025, a six percent increase. Depreciation expense for the first nine months of 2026 increased by five percent, to $265.6 million compared with $252.0 million for the same period of 2025. The increase in depreciation is due to more assets entering service following additional capital spending as well as additional depreciation from the acquired Citadel Drilling assets.

GENERAL AND ADMINISTRATIVE

	Three months ended September 30						Nine months ended September 30
($ thousands)	2026		2025		% change		2026		2025		% change
General and administrative	14,658		13,167		11		43,306		41,037		6
% of revenue	3.0		3.2				3.3		3.4

General and administrative expense increased 11 percent to $14.7 million (3.0 percent of revenue) for the third quarter of 2026 compared to $13.2 million (3.2 percent of revenue) for the third quarter of 2025. For the nine months ended September 30, 2026, general and administrative expense totaled $43.3 million (3.3 percent of revenue) compared to $41.0 million (3.4 percent of revenue) for the nine months ended September 30, 2025. General and administrative expenses increased due to the annual wage increases for certain employees and the Citadel Drilling acquisition.

FOREIGN EXCHANGE AND OTHER

	Three months ended September 30						Nine months ended September 30
($ thousands)	2026		2025		% change		2026		2025		% change
Foreign exchange and other	(7,242)		(7,024)		3		(3,918)		(6,484)		(40)

Included in this amount is the impact of foreign currency fluctuations in the Company's subsidiaries that have functional currencies other than the Canadian dollar.

INTEREST EXPENSE

	Three months ended September 30						Nine months ended September 30
($ thousands)	2026		2025		% change		2026		2025		% change
Interest expense	17,719		18,371		(4)		46,813		57,436		(18)

Interest expense was incurred on the Company's Credit and Revolving Facilities, Convertible Debentures (defined below), capital lease and other obligations.

Interest expense decreased by 18 percent for the first nine months of 2026 compared to the same period of 2025, as a result of lower debt levels (prior to the Citadel Drilling acquisition), effective interest rates and one-time recoveries.

INCOME TAXES (RECOVERY)

	Three months ended September 30						Nine months ended September 30
($ thousands)	2026		2025		% change		2026		2025		% change
Current income taxes	235		454		(48)		2,889		2,511		15
Deferred income taxes (recovery)	431		(2,718)		nm		(7,047)		(10,408)		(32)
Total income taxes (recovery)	666		(2,264)		nm		(4,158)		(7,897)		(47)

nm - calculation not meaningful

FUNDS FLOW FROM OPERATIONS AND WORKING CAPITAL

($ thousands, except per common share data)	Three months ended September 30						Nine months ended September 30
	2026		2025		% change		2026		2025		% change
Cash provided by operating activities	108,874		100,605		8		257,409		262,245		(2)
Funds flow from operations	122,523		88,221		39		293,534		257,279		14
Funds flow from operations per common share	$0.66		$0.48		38		$1.59		$1.40		14
Working capital ^1	76,678		89,618		(14)		76,678		89,618		(14)

nm - calculation not meaningful

¹ Comparative figure as at December 31, 2025

During the three months ended September 30, 2026, the Company generated funds flow from operations of $122.5 million ($0.66 per common share) compared to funds flow from operations of $88.2 million ($0.48 per common share) for the three months ended September 30, 2025, an increase of 39 percent. For the nine months ended September 30, 2026, the Company generated funds flow from operations of $293.5 million ($1.59 per common share), an increase of 14 percent from $257.3 million ($1.40 per common share) for the nine months ended September 30, 2025. The increase in funds flow from operations for the nine months ended September 30, 2026, compared to the same period of 2025, is largely due to the increase in operating activity year over year and the Citadel Drilling acquisition.

At September 30, 2026, the Company's working capital was $76.7 million, compared to a working capital of $89.6 million at December 31, 2025.

The Company's existing bank facilities provide for total borrowings of $980.0 million, of which $8.0 million was undrawn and available as at September 30, 2026 (December 31, 2025: $35.6 million).

INVESTING ACTIVITIES

	Three months ended September 30						Nine months ended September 30
($ thousands)	2026		2025		% change		2026		2025		% change
Acquisition of Citadel Drilling Ltd., net of cash acquired	(71,938)		--		nm		(71,938)		--		nm
Purchase of property and equipment	(89,903)		(64,415)		40		(222,014)		(153,690)		44
Proceeds from disposals of property and equipment	4,627		1,966		nm		13,850		5,228		nm
Distribution to non-controlling interest	(500)		(750)		(33)		(500)		(750)		(33)
Net change in non-cash working capital	10,631		25,124		(58)		56,654		28,351		nm
Cash used in investing activities	(147,083)		(38,075)		nm		(223,948)		(120,861)		85

nm - calculation not meaningful

On August 13, 2026, the Company completed the acquisition of all of the issued and outstanding shares of Citadel Drilling for the net cash value of $71.9 million. Please refer to additional information on this acquisition herein.

Net purchases of property and equipment for the third quarter of 2026 totaled $85.3 million (2025 - $62.4 million). Net purchases of property and equipment during the first nine months of 2026 totaled $208.2 million (2025 - $148.5 million). The purchase of property and equipment for the first nine months of 2026 consists of $66.6 million in upgrade capital and $155.4 million in maintenance capital.

Subsequent to September 30, 2026, the Company completed the sale of certain land and buildings that were held for sale, with a net book value of $8.4 million. The net proceeds received were $13.3 million and a gain on disposal of $5.0 million was recognized subsequent to quarter end.

FINANCING ACTIVITIES

	Three months ended September 30						Nine months ended September 30
($ thousands)	2026		2025		% change		2026		2025		% change
Proceeds from long-term debt	93,203		208,024		(55)		163,273		256,242		(36)
Repayments of long-term debt	(24,457)		(248,853)		(90)		(131,545)		(340,008)		(61)
Lease obligation principal repayments	(6,119)		(5,501)		11		(13,270)		(13,790)		(4)
Interest paid	(16,474)		(13,922)		18		(45,352)		(52,892)		(14)
Issuance of common shares under share option plan	95		44		nm		923		54		nm
Purchase of common shares held in trust	(642)		(603)		6		(1,862)		(1,689)		10
Cash provided by (used in) financing activities	45,606		(60,811)		nm		(27,833)		(152,083)		(82)

nm - calculation not meaningful

As at September 30, 2026, the amount of available borrowings under the Credit Facility was $8.0 million.

On September 29, 2025, the Company amended and restated its existing credit agreement with its syndicate of lenders, which provides a revolving Credit Facility. The amendments include an extension to the maturity date of the $950.0 million Credit Facility to September 29, 2028.

The amended and restated Credit Facility provides the Company with continued access to revolver capacity in a dynamic industry environment.

The Company has a general corporate revolving facility ("Revolving Facility") with an authorized limit of $30.0 million that was obtained through the Citadel Drilling acquisition. The Revolving Facility is secured by a general security agreement granting the lender security interest over all the Citadel Drilling present after acquired personal property, and can be repaid in whole or part at any time without penalty.

The Revolving Facility bears interest based on the bank's prime lending rate plus 1.0% per annum, or at a margin over the bankers' acceptance rate in Canadian dollars: such margins will be based on the then applicable ratio of consolidated total debt to EBITDA.

The Revolving Facility matures on August 31, 2027, at which point the outstanding principal amount would be payable in twelve consecutive monthly payments commencing September 2027. The Revolving Facility requires the Company to maintain certain financial and reporting covenants.

The Company's amended and restated credit agreement includes a US $50.0 million secured Letter of Credit Facility. Furthermore, the Company has an additional US $25.0 million unsecured Letter of Credit Facility. As at September 30, 2026, the amount available was US $23.3 million on the Letter of Credit Facilities.

On December 31, 2024, the Company issued a non-brokered private placement of unsecured, subordinated convertible debentures ("Convertible Debentures") for aggregate gross proceeds of $25.0 million. The Convertible Debentures bear interest from the date of closing at 7.5% per annum, payable semi-annually in arrears, on April 1 and October 1 each year. The Convertible Debentures will mature on January 31, 2029, and have a conversion price of $3.50 per common share.

If, on and after March 31, 2028, the closing price of the Company's common shares on the Toronto Stock Exchange exceeds 125% of the Conversion Price for at least 30 consecutive trading days, the Convertible Debentures may be redeemed by the Company for cash on a pro rata basis, in whole or in part from time to time, on not more than 90 days and not less than 60 days prior notice, at a redemption price equal to the outstanding principal amount of the Convertible Debentures plus accrued and unpaid interest thereon (if any), up to, but excluding, the date of redemption.

The liability component of the Convertible Debentures was recognized initially at fair value and revalued quarterly using a similar liability that does not have an equity conversion option, which was calculated based on an estimated market interest rate of 7.6%.

There was no material difference between the principal amount of the Convertible Debentures and the fair value of the liability component.

The Convertible Debentures include $20.5 million issued to management and directors of the Company.

The current capital structure of the Company consisting of the Credit and Revolving Facilities and the Convertible Debentures. This provides greater flexibility to reduce debt in the near term than a capital structure containing a greater proportion of non-callable debt.

Covenants

The following is a list of the Company's currently applicable covenants pursuant to the Credit and Revolving Facilities and the associated calculations as at September 30, 2026:

	Covenant			September 30, 2026
The Credit Facility
Consolidated Net Debt to Consolidated EBITDA ^1	≤ 3.50			2.38
Consolidated EBITDA to Consolidated Interest Expense^1,2	≥ 3.00			6.93
Consolidated Net Senior Debt to Consolidated EBITDA^1,3	≤ 2.50			2.17
The Revolving Facility
Funded Debt to EBITDA^1	<3.00			0.64
Interest Coverage Ratio^2	>3.00			134.83

¹ Consolidated Net Debt and Funded Debt is defined as consolidated total debt, less cash and cash equivalent. Consolidated EBITDA and EBITDA, as defined in the Company's Credit and Revolving Facility agreements, is used in determining the Company's compliance with its covenants. The Consolidated EBITDA and EBITDA is substantially similar to Adjusted EBITDA.

² Consolidated Interest Expense and interest is defined as all interest expense calculated on twelve month rolling consolidated basis.

³ Consolidated Net Senior Debt is defined as Consolidated Total Debt minus subordinated debt, cash and cash equivalent.

As at September 30, 2026, the Company was in compliance with all covenants related to the Credit and Revolving Facilities.

The Credit Facility

The amended and restated credit agreement, a copy of which is available on SEDAR+, provides the Company with its Credit Facility and includes requirements that the Company comply with certain covenants including a Consolidated Net Debt to Consolidated EBITDA ratio, a Consolidated EBITDA to Consolidated Interest Expense ratio and a Consolidated Net Senior Debt to Consolidated EBITDA ratio.

OUTLOOK

Industry Overview

The outlook for oilfield services strengthened during the third quarter of 2026 as geopolitical disruptions in the Middle East tightened global crude supply, reduced inventories and drove significant oil-price volatility. These conditions improved near-term customer sentiment and supported demand for drilling services; however, the outlook remains uncertain and will depend on the duration of supply constraints, the pace at which disrupted production and export routes are restored, and continued capital discipline by producers. Industry activity is therefore expected to remain selective, with customers prioritizing efficient, high-performance equipment and projects capable of generating competitive returns across commodity-price cycles.

North American drilling activity improved year over year through the end of the third quarter, although producer spending remains disciplined and responsive to commodity prices. Canadian activity continues to be supported by improved crude-oil market access following the Trans Mountain Expansion, the ongoing ramp-up of LNG Canada and associated natural-gas development in the Western Canadian Sedimentary Basin. In the United States, activity has also increased from 2025 levels, while the mix of work continues to favour operators and service providers with exposure to efficient, high-specification rigs and natural-gas-focused basins. The Company has experienced increased customer inquiries, but the timing and conversion of these opportunities remain subject to customer budgets, commodity prices and geopolitical developments.

In the present environment, the Company remains committed to disciplined capital allocation, driving free cash flow generation, and debt repayment. The Company has targeted approximately $50.0 million in net debt reduction for the remainder of 2026. If industry conditions change, these targets may be increased or decreased.

The Company has budgeted maintenance capital expenditures for 2026 of approximately $190.0 million and $100.0 million of selective upgrade capital. As at September 30, 2026, the Company had total customer capital commitments of $87.0 million related to various upgrade capital projects, that will be recognized over their respective contractual terms. Of the $87.0 million, $32.0 million has been received and recognized to date in revenue, $32.0 million has been received and is recognized as deferred revenue and $23.0 million is yet to be received. The Company continues to consider rig relocation or upgrade projects in response to customer demand and under appropriate contract terms, which may impact capital expenditures.

Canadian Activity

Canadian activity, representing 29 percent of total revenue in the first nine months of 2026, increased in the third quarter of 2026, when compared to the second quarter of 2026, as activity picked up following seasonal spring break-up. Canadian activity is expected to improve in the fourth quarter of 2026 due to positive market conditions. However, potential future trade tariffs imposed between Canada and the United States, including tariffs on crude oil, may impact Canadian activity over the near term.

As of November 5, 2026, of our 77 marketed Canadian drilling rigs, approximately 73 percent were engaged under term contracts of various durations. Approximately 39 percent of our contracted rigs have a remaining term of six months or longer, although they may be subject to early termination.

United States Activity

United States activity represents 52 percent of total Company revenue in the first nine months of 2026. Operating activity was higher in the third quarter of 2026, when compared to the second quarter of 2026, as a result of the elevated commodity pricing, in addition to the Citadel Drilling acquisition that closed on August 13, 2026. United States activity is expected to continue to improve in the fourth quarter of 2026 with the Citadel Drilling acquisition and due to positive market conditions.

As of November 5, 2026, of our 75 marketed United States drilling rigs, approximately 68 percent were engaged under term contracts of various durations. Approximately 24 percent of our contracted rigs have a remaining term of six months or longer, although they may be subject to early termination.

International Activity

International activity, representing 19 percent of total revenue in the first nine months of 2026, decreased in the third quarter of 2026, when compared to the second quarter of 2026, as rigs came off contracts. For the fourth quarter of 2026, Latin America is expected to increase to five rigs, the Middle East is expected to remain steady with five rigs and Australia is expected to remain steady with four rigs.

As of November 5, 2026, of our 26 marketed international drilling rigs, approximately 65 percent were engaged under term contracts of various durations. Approximately 76 percent of our contracted rigs have a remaining term of six months or longer, although they may be subject to early termination.

RISK AND UNCERTAINTIES

The Company is subject to numerous risks and uncertainties. A discussion of certain risks faced by the Company may be found under the "Risk Factors" section of the Company's Annual Information Form ("AIF") and the "Risks and Uncertainties" section of the Company's Management's Discussion & Analysis ("MD&A") for the year ended December 31, 2025, which are available under the Company's SEDAR+ profile at www.sedarplus.ca.

The Company's risk factors and management of those risks have not changed substantially from those as disclosed in the AIF. Additional risks and uncertainties not presently known by the Company, or that the Company does not currently anticipate or deem material, may also impair the Company's future business operations or financial condition. If any such potential events described in the Company's AIF or otherwise actually occur, or described events intensify, overall business, operating results and the financial condition of the Company could be materially adversely affected.

CONFERENCE CALL

A conference call will be held to discuss the Company's third quarter 2026 results at 10:00 a.m. MST (11:00 a.m. EST) on Friday, November 6, 2026. The conference call number is 1-888-510-2154 and the conference call ID is: 13541. A taped recording of the conference call will be available until November 13, 2026, by dialing 1-888-660-6345 and entering the reservation number 13541#. A live broadcast may be accessed through the Company's website at www.ensignenergy.com/presentations.

Ensign Energy Services Inc. is an international oilfield services contractor and is listed on the Toronto Stock Exchange under the trading symbol ESI.

Ensign Energy Services Inc.
Consolidated Statements of Financial Position

As at		September 30 2026		December 31 2025
(Unaudited - in thousands of Canadian dollars)
Assets
Current Assets
Cash		$          22,737		$          16,189
Accounts receivable		400,589		294,466
Inventories, prepaid, investments and other		44,155		44,194
Asset held for sale		8,355		--
Income taxes receivable		1,279		--
Total current assets		477,115		354,849
Property and equipment		2,207,537		2,094,244
Deferred income taxes		196,586		193,934
Total assets		$       2,881,238		$       2,643,027
Liabilities
Current Liabilities
Accounts payable and accruals		$         374,528		$         246,116
Share-based compensation		10,366		5,711
Income taxes payable		172		452
Current portion of lease obligation		13,274		12,952
Current portion of long-term debt		2,097		--
Total current liabilities		400,437		265,231
Share-based compensation		8,363		5,572
Long-term debt		991,624		934,802
Lease obligations		26,342		19,281
Income tax payable		5,653		5,464
Deferred income taxes		142,121		128,939
Total liabilities		1,574,540		1,359,289
Shareholders' Equity
Shareholders' capital		269,858		268,175
Contributed surplus		22,294		23,302
Accumulated other comprehensive income		324,637		289,010
Retained earnings		689,909		703,251
Total shareholders' equity		1,306,698		1,283,738
Total liabilities and shareholders' equity		$       2,881,238		$       2,643,027

Ensign Energy Services Inc.
Consolidated Statements of Income (Loss)

		Three months ended				Nine months ended
		September 30 2026		September 30 2025		September 30 2026		September 30 2025
(Unaudited - in thousands of Canadian dollars, except per common share data)
Revenue		$     481,711		$      411,157		$   1,297,073		$    1,220,083
Expenses
Oilfield services		352,055		299,394		958,094		896,713
Depreciation		92,827		87,356		265,553		252,016
General and administrative		14,658		13,167		43,306		41,037
Share-based compensation		1,240		2,679		12,015		3,052
Foreign exchange and other		(7,242)		(7,024)		(3,918)		(6,484)
Total expenses		453,538		395,572		1,275,050		1,186,334
Income before interest expense, accretion of deferred financing charges and other gains and income taxes		28,173		15,585		22,023		33,749
(Gain) loss on asset sale		(1,707)		2,114		(8,984)		8,663
Interest expense		17,719		18,371		46,813		57,436
Accretion of deferred financing charges		423		417		1,271		1,251
Income (loss) before income taxes		11,738		(5,317)		(17,077)		(33,601)
Income taxes (recovery)
Current income taxes		235		454		2,889		2,511
Deferred income taxes (recovery)		431		(2,718)		(7,047)		(10,408)
Total income taxes (recovery)		666		(2,264)		(4,158)		(7,897)
Net income (loss)		$       11,072		$       (3,053)		$      (12,919)		$      (25,704)
Net income (loss) attributable to:
Common shareholders		10,838		(3,263)		(13,342)		(25,975)
Non-controlling interests		234		210		423		271
		11,072		(3,053)		(12,919)		(25,704)
Net income (loss) attributable to common shareholders per common share
Basic		$         0.06		$        (0.02)		$        (0.07)		$        (0.14)
Diluted		$         0.06		$        (0.02)		$        (0.07)		$        (0.14)

Ensign Energy Services Inc.
Consolidated Statements of Cash Flows

		Three months ended				Nine months ended
		September 30 2026		September 30 2025		September 30 2026		September 30 2025
(Unaudited - in thousands of Canadian dollars)
Cash provided by (used in)
Operating activities
Net income (loss)		$        11,072		$      (3,053)		$      (12,919)		$     (25,704)
Items not affecting cash
Depreciation		92,827		87,356		265,553		252,016
(Gain) loss on asset sale		(1,707)		2,114		(8,984)		8,663
Share-based compensation, net cash settlements		824		2,137		9,055		(3,051)
Unrealized foreign exchange and other		934		(16,403)		(208)		(22,924)
Accretion of deferred financing charges		423		417		1,271		1,251
Interest expense		17,719		18,371		46,813		57,436
Deferred income taxes (recovery)		431		(2,718)		(7,047)		(10,408)
Funds flow from operations		122,523		88,221		293,534		257,279
Net change in non-cash working capital		(13,649)		12,384		(36,125)		4,966
Cash provided by operating activities		108,874		100,605		257,409		262,245
Investing activities
Acquisition of Citadel Drilling Ltd., net of cash acquired		(71,938)		--		(71,938)		--
Purchase of property and equipment		(89,903)		(64,415)		(222,014)		(153,690)
Proceeds from disposals of property and equipment		4,627		1,966		13,850		5,228
Distribution to non-controlling interest		(500)		(750)		(500)		(750)
Net change in non-cash working capital		10,631		25,124		56,654		28,351
Cash used in investing activities		(147,083)		(38,075)		(223,948)		(120,861)
Financing activities
Proceeds from long-term debt		93,203		208,024		163,273		256,242
Repayments of long-term debt		(24,457)		(248,853)		(131,545)		(340,008)
Lease obligation principal repayments		(6,119)		(5,501)		(13,270)		(13,790)
Interest paid		(16,474)		(13,922)		(45,352)		(52,892)
Issuance of common shares under share option plan		95		44		923		54
Purchase of common shares held in trust		(642)		(603)		(1,862)		(1,689)
Cash provided by (used in) financing activities		45,606		(60,811)		(27,833)		(152,083)
Net increase (decrease) in cash		7,397		1,719		5,628		(10,699)
Effects of foreign exchange on cash		202		40		920		(681)
Cash – beginning of period		15,138		14,974		16,189		28,113
Cash – end of period		$        22,737		$      16,733		$        22,737		$      16,733

Ensign Energy Services Inc.

Non-GAAP Measures

Adjusted EBITDA, Adjusted EBITDA per common share, working capital and Consolidated EBITDA. These non-GAAP measures do not have any standardized meaning prescribed by IFRS and accordingly, may not be comparable to similar measures used by other companies. The non-GAAP measures included in this news release should not be considered as an alternative to, or more meaningful than, the IFRS measure from which they are derived or to which they are compared.

Adjusted EBITDA is used by management and investors to analyze the Company's profitability based on the Company's principal business activities prior to how these activities are financed, how assets are depreciated, amortized and how the results are taxed in various jurisdictions. Additionally, in order to focus on the core business alone, amounts are removed related to foreign exchange, share-based compensation expense, the sale of assets and fair value adjustments on financial assets and liabilities, as the Company does not deem these to relate to its core drilling and well services business. Adjusted EBITDA is not intended to represent income (loss) as calculated in accordance with IFRS.

ADJUSTED EBITDA	Three months ended September 30						Nine months ended September 30
($ thousands)	2026			2025			2026			2025
Income (loss) before income taxes	11,738			(5,317)			(17,077)			(33,601)
Add-back/(deduct):
Interest expense	17,719			18,371			46,813			57,436
Accretion of deferred financing charges	423			417			1,271			1,251
Depreciation	92,827			87,356			265,553			252,016
Share-based compensation	1,240			2,679			12,015			3,052
(Gain) loss on asset sale	(1,707)			2,114			(8,984)			8,663
Foreign exchange and other	(7,242)			(7,024)			(3,918)			(6,484)
Adjusted EBITDA	114,998			98,596			295,673			282,333

Consolidated EBITDA

Consolidated EBITDA, as defined in the Company's Credit Facility agreement, is used in determining the Company's compliance with its covenants. The Consolidated EBITDA is substantially similar to Adjusted EBITDA. Consolidated EBITDA is calculated on a rolling twelve-month basis.

Working Capital

Working capital is defined as current assets less current liabilities as reported on the consolidated statements of financial position.

ADVISORY REGARDING FORWARD-LOOKING STATEMENTS

Certain statements herein constitute forward-looking statements or information (collectively referred to herein as "forward-looking statements") within the meaning of applicable securities legislation. Forward-looking statements generally can be identified by the words "believe", "anticipate", "expect", "plan", "estimate", "target", "continue", "could", "intend", "may", "potential", "predict", "should", "will", "objective", "project", "forecast", "goal", "guidance", "outlook", "effort", "seeks", "schedule", "contemplates" or other expressions of a similar nature suggesting future outcome or statements regarding an outlook. All statements other than statements of historical fact may be forward-looking statements.

Disclosure related to expected future commodity pricing or trends, revenue rates, equipment utilization or operating activity levels, operating costs, capital expenditures and other prospective guidance provided herein including, but not limited to, information provided in the "Funds Flow from Operations and Working Capital" section regarding the Company's expectation that funds generated by operations combined with current and future credit facilities will support current operating and capital requirements, information provided in the "Financial Instruments" section regarding Venezuela and information provided in the "Outlook" section regarding the general outlook for 2026 and beyond, are examples of forward-looking statements.

Forward-looking statements are not representations or guarantees of future performance and are subject to certain risks and unforeseen results. The reader should not place undue reliance on forward-looking statements as there can be no assurance that the plans, initiatives, projections, anticipations or expectations upon which they are based will occur. The forward-looking statements are based on current assumptions, expectations, estimates and projections about the Company and the industries and environments in which the Company operates, which speak only as of the date such statements were made or as of the date of the report or document in which they are contained. These assumptions include, among other things: the fluctuation in commodity prices which may pressure customers to modify their capital programs; the status of current negotiations with the Company's customers and vendors; customer focus on safety performance; royalty regimes and effects of regulation by government agencies; existing term contracts that may not be renewed or are terminated prematurely; the Company's ability to provide services on a timely basis and successfully bid on new contracts; successful integration of acquisitions; future operating costs; the general stability of the economic and political environments in the jurisdictions where we operate; tariffs, economic sanctions, inflation, interest rate and exchange rate expectations; and impacts of geopolitical events such as the hostilities in the Middle East and between Ukraine and the Russian Federation, and the global community responses thereto; that the Company will have sufficient cash flow, debt or equity sources or other financial resources required to fund its capital and operating expenditures and requirements as needed; that the Company's conduct and results of operations will be consistent with its expectations; and other matters.

The forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Such risk factors include, among others: general economic and business conditions which will, among other things, impact demand for and market prices of the Company's services and the ability of the Company's customers to pay accounts receivable balances; volatility of and assumptions regarding commodity prices; foreign exchange exposure; fluctuations in currency and interest rates; inflation; economic conditions in the countries and regions in which the Company conducts business; political uncertainty and civil unrest; the Company's ability to implement its business strategy; impact of competition and industry conditions; risks associated with long-term contracts; force majeure events; artificial intelligence development and implementation; cyber-attacks; determinations by the Organization of Petroleum Exporting Countries ("OPEC") and other countries (OPEC and various other countries are referred to as "OPEC+") regarding production levels; loss of key customers; litigation risks, including the Company's defence of lawsuits; risks associated with contingent liabilities and potential unknown liabilities; availability and cost of labour and other equipment, supplies and services; business interruption and casualty losses; the Company's ability to complete its capital programs; operating hazards and other difficulties inherent in the operation of the Company's oilfield services equipment; availability and cost of financing and insurance; access to credit facilities and debt capital markets; availability of sufficient cash flow to service and repay its debts; impairment of capital assets; the Company's ability to amend or comply with covenants under the credit facility and other debt instruments; actions by governmental authorities; impact of and changes to laws and regulations impacting the Company and the Company's customers, and the expenditures required to comply with them (including safety and environmental laws and regulations and the impact of climate change initiatives on capital and operating costs); safety performance; environmental contamination; shifting interest to alternative energy sources; environmental activism; the adequacy of the Company's provision for taxes; tax challenges; the impact of, and the Company's response to future pandemics; workforce and reliance on key management; technology; cybersecurity risks; seasonality and weather risks; risks associated with acquisitions and ability to successfully integrate acquisitions; risks associated with internal controls over financial reporting; the impact of the ongoing hostilities in the Middle East and between Ukraine and the Russian Federation and the global community responses thereto; the economic and tariff policies pursued by the United States administration, including the impact of recent United States Government pronouncements regarding imposition of global tariffs and potential curtailment of our customer's license to operate in Venezuela, which have recently reactivated our operations in the area, along with any retaliatory policies by other governments and other risks and uncertainties affecting the Company's business, revenues and expenses.

In addition, the Company's operations and levels of demand for its services have been, and at times in the future may be, affected by political risks and developments, such as tariffs, economic sanctions, expropriation, nationalization, or regime change, and by national, regional and local laws and regulations such as changes in taxes, royalties and other amounts payable to governments or governmental agencies, environmental protection regulations, its customers and its business, ongoing hostilities in the Middle East and between Ukraine and the Russian Federation, including recent developments in discussions regarding cessation of hostilities in Ukraine and pursuit of a resolution of the dispute, related potential future impact on the supply of oil and natural gas to Europe by Russia and the impact of global community responses to the ongoing conflicts, including the impact of shipping through the Red Sea and governmental energy policies, laws, rules or regulations that limit, restrict or impede exploration, development, production, transportation or consumption of hydrocarbons and/or incentivize development, production, transportation or consumption of alternative fuel or energy sources.

Should one or more of these risks or uncertainties materialize, or should any of the Company's assumptions prove incorrect, actual results from operations may vary in material respects from those expressed or implied by the forward-looking statements. The impact of any one factor on a particular forward-looking statement is not determinable with certainty as such factors are interdependent upon other factors, and the Company's course of action would depend upon its assessment of the future considering all information then available. Unpredictable or unknown factors not discussed herein could also have material adverse effects on forward-looking statements.

Readers are cautioned that the lists of important factors contained herein are not exhaustive. For additional information on these and other factors that could affect the Company's business, operations or financial condition, refer to the "Risk Factors" section of the Company's Annual Information Form for the year ended December 31, 2025 available on SEDAR+ at www.sedarplus.ca.

The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement. The forward-looking statements contained herein are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, except as required by law.

SOURCE Ensign Energy Services Inc.

For further information: Trevor Russell, Chief Financial Officer, [phone]