STAMPEDE DRILLING INC. ANNOUNCES 2025 ANNUAL AND FOURTH QUARTER RESULTS

CALGARY, AB, March 12, 2026 /CNW/ - Stampede Drilling Inc. ("Stampede" or the "Corporation") (TSXV: SDI) announces today its consolidated financial and operational results for the three and twelve month periods ended December 31, 2025.

The following press release should be read in conjunction with the December 31, 2025 audited consolidated financial statements prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board ("IFRS Accounting Standards"), the related management's discussion and analysis ("MD&A") and the annual information form ("AIF") for the year ended December 31, 2025. Additional information regarding Stampede, including the AIF, is available on SEDAR+ at www.sedarplus.ca.

All amounts or dollar figures are denominated in thousands of Canadian dollars except for per share amounts, number of drilling rigs, and operating days, or unless otherwise noted. All share amounts are presented to the nearest thousand.

Estimates and forward-looking information are based on assumptions of future events and actual results may vary from these estimates. See "Forward-Looking Information" in this press release for additional details.

FOURTH QUARTER 2025 OPERATIONAL HIGHLIGHTS

• Revenue of $21,309 – an increase of $914 (4%) from $20,395 in the corresponding 2024 period, primarily driven by higher activity levels and improved drilling rig utilization.
• Gross Margin⁽¹⁾ of 33% – remained flat at 33% from the corresponding 2024 period, as lower revenue per day was offset by reduced operating costs per day.
• Net Income of $4,526 – an increase of $3,839 (559%) from $687 in the corresponding 2024 period. The increase was primarily due to the gain on sale from certain components of Stampede's A/C triple drilling rig ("Rig 24"), partially offset by an increase in deferred income tax expense.
• Adjusted EBITDA⁽¹⁾ of $4,937 – an increase of $961 (24%) from $3,976 in the corresponding 2024 period, driven by increased revenue and gross margin, along with a decrease in administrative expenses.
• Free Cash Flow⁽¹⁾ of $3,101 – an increase of $1,321 (74%) from $1,780 in the corresponding 2024 period, primarily related to higher funds from operating activities and lower capital expenditures compared to the corresponding period.
• Repurchase of 3,720⁽²⁾ common shares – In the fourth quarter of 2025, the Corporation repurchased 3,720⁽²⁾ common shares under its normal course issuer bid ("NCIB") at a weighted average price per common share of $0.10, for total consideration of $372. The total amount of common shares repurchased during the fourth quarter of 2025 represents 1.90% of the total issued and outstanding common shares of the Corporation.
• Capital Expenditures of $1,460 – Capital expenditures for the fourth quarter of 2025 were comprised of $830 of growth capital and $630 of maintenance and sustaining capital.

2025 ANNUAL OPERATIONAL HIGHLIGHTS

• Revenue of $71,403 – a decrease of $10,671 (13%) from $82,074 in the corresponding 2024 period. The decrease was primarily due to a 10% reduction in operating days in 2025.
• Gross Margin⁽¹⁾ of 32% – a decrease of 1% from 33% in the corresponding 2024 period. The decrease was primarily due to the reduction in revenue as a result of the decrease in operating days and revenue per day.
• Net Income of $3,816 – a decrease of $1,347 (26%) from $5,163 in the corresponding 2024 period. The decrease was primarily driven by lower Adjusted EBITDA, increased depreciation, and an increase in deferred income tax expense. This was partially offset by the gain on sale from the sale of certain components of Rig 24.
• Adjusted EBITDA⁽¹⁾ of $13,642 – a decrease of $3,833 (22%) from $17,475 in the corresponding 2024 period. The decrease was primarily due to customer drilling program deferrals and operator consolidation resulting in a reduction in operating days and operating gross margin.
• Free Cash Flow⁽¹⁾ of $6,811 – a decrease of $2,623 (28%) from $9,434 in the corresponding 2024 period. The decrease was primarily related to a reduction in funds from operating activities, partially offset by reduced maintenance and sustaining capital, and lower debt servicing costs compared to the corresponding period.
• Repurchase of 7,976⁽²⁾ common shares – In 2025, the Corporation repurchased 7,976⁽²⁾ common shares under its NCIB at a weighted average price per common share of $0.12, for total consideration of $972. The total amount of common shares repurchased during the financial year ended December 31, 2025, represents 4.1% of the total issued and outstanding common shares of the Corporation.
• Capital Expenditures of $15,672 – Capital expenditures for 2025 were comprised of $12,710 of growth capital and $2,962 of maintenance and sustaining capital.

^{(1) – Refer to "Non-GAAP and Other Financial Measures" for further information.
(2) – Share amounts reported in 000's of shares.}

OUTLOOK

Throughout 2025, global commodity markets were shaped by persistent geopolitical uncertainty, including ongoing conflicts in Eastern Europe and the Middle East, evolving international sanctions, and the impact of U.S. trade and tariff policies. While these factors continued to contribute to price volatility and cautious capital allocation across the sector, market conditions showed signs of stabilization toward the end of the year, reflecting a more positive operating environment and improved customer engagement.

In Canada, the change in federal leadership has contributed to a more constructive dialogue around the energy sector. Increased recognition of the importance of export diversification, infrastructure development, and regulatory certainty has supported a cautiously optimistic outlook for Canadian energy producers and service providers heading into 2026. This shift, combined with ongoing infrastructure developments such as the Trans Mountain expansion, LNG Canada, and Coastal GasLink, continues to enhance market access and takeaway capacity, positioning the Canadian energy industry for improved resilience and longer-term growth.

Despite improved infrastructure and gradually strengthening fundamentals, many producers remained focused in 2025 on capital discipline, prioritizing free cash flow generation, balance sheet strength, shareholder returns, and consolidation. As commodity pricing and market confidence improve, management expects that producer focus may increasingly shift from sustaining to meaningful production growth to support these returns, which could drive higher demand for drilling and related services.

Stampede exited 2025 with stronger utilization, as operating days in the second half of 2025 were 56% higher than the first half, largely reflecting the timing of customer programs following post–spring breakup delays amid weakening commodity prices and tariff uncertainty. Early indications in 2026 suggest this momentum has continued, supported by improved customer sentiment and stronger year-over-year activity.

Consistent with this, during the first quarter of 2026, 15 of Stampede's 17 rigs were operational. Management believes minimal incremental capital investment is required to achieve full utilization, as capital spending over the past three years has focused on enhancing fleet marketability and aligning equipment with customer demand, positioning the Corporation to respond efficiently if market conditions continue to improve. With reduced forecast capital expenditures, the Corporation expects to retain financial flexibility to prioritize free cash flow for shareholder returns through market-dependent repurchases of common shares under the Corporation's NCIB (renewed in December 2025), while continuing to maintain balance sheet strength and preserve capacity for potential growth initiatives.

In the fourth quarter of 2025, the Corporation repurchased 3,720 common shares under its NCIB at a weighted average price of $0.10 per share, for total consideration of $372. Since its implementation in June 2023, Stampede has repurchased 35,580 common shares (or 15.6% of its issued and outstanding common shares) under its NCIB, as renewed from time to time, at a weighted average price of $0.20 per share, for total consideration of $6,996.

FINANCIAL SUMMARY

	Three months ended, December 31			Year ended, December 31
(000's CAD $ except per share amounts)	2025	2024	% Change	2025	2024	% Change
Revenue	21,309	20,395	4 %	71,403	82,074	(13 %)
Direct operating expenses	14,200	13,627	4 %	48,763	54,948	(11 %)
Gross margin^(1)	7,109	6,768	5 %	22,640	27,126	(17 %)
Net income	4,526	687	559 %	3,816	5,163	(26 %)
Basic and diluted income per share	0.02	0.00	nm	0.02	0.02	nm
Adjusted EBITDA^(1)	4,937	3,976	24 %	13,642	17,475	(22 %)
Funds from operating activities	4,594	3,980	15 %	13,062	17,271	(24 %)
Free cash flow^(1)	3,101	1,780	74 %	6,811	9,434	(28 %)
Weighted average common shares outstanding (000's)	199,820	208,417	(4 %)	200,928	210,355	(4 %)
Weighted average diluted common shares outstanding (000's)	199,820	208,426	(4 %)	200,928	210,540	(5 %)
Capital expenditures	1,460	1,705	(14 %)	15,672	14,642	7 %
Number of marketed rigs	17	19	(11 %)	17	19	(11 %)
Drilling rig utilization^(2)	51 %	41 %	10 %	43 %	42 %	1 %
CAOEC industry average utilization^(3)	44 %	44 %	-	43 %	43 %	-
nm - not meaningful

(1) Refer to "Non-GAAP and Other Financial Measures" for further information. (2) Drilling rig utilization is calculated based on operating days (spud to rig release). (3) Source: The Canadian Association of Energy Contractors ("CAOEC") monthly Contractor Summary. The CAOEC industry average is based on operating days divided by total available drilling days.

DESCRIPTION OF STAMPEDE'S BUSINESS

Stampede is an energy services company that provides premier contract drilling services in Western Canada. Stampede operates a fleet of 17 telescopic double drilling rigs suited for most formations within the Western Canadian Sedimentary Basin ("WCSB"). The Corporation's head office is located in Calgary, Alberta with operations based out of Nisku, Alberta and Estevan, Saskatchewan. The Corporation's common shares trade on the TSX Venture Exchange (the "TSXV") under the symbol "SDI".

RESULTS FROM OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2025

	Year ended, December 31
(000's CAD $ )	2025	2024	% Change
Revenue	71,403	82,074	(13 %)
Direct operating expenses	48,763	54,948	(11 %)
Gross margin^(1)	22,640	27,126	(17 %)
Gross margin %^(1)	32 %	33 %	(1 %)
Net income	3,816	5,163	(26 %)
General and administrative expenses	10,265	11,311	(9 %)
Adjusted EBITDA^(1)	13,642	17,475	(22 %)
Drilling rig operating days^(2)	2,637	2,919	(10 %)
Drilling rig revenue per day^(3)	27.1	28.1	(4 %)
Drilling rig utilization^(4)	43 %	42 %	1 %
CAOEC industry average utilization^(5)	43 %	43 %	-

^(1) Refer to "Non-GAAP and Other Financial Measures" for further information. ^(2) Defined as contract drilling days, between spud to rig release. ^(3) Drilling rig revenue per day is calculated by revenue divided by drilling rig operating days. ^(4) Drilling rig utilization is calculated based on operating days (spud to rig release). ^(5) Source: The Canadian Association of Energy Contractors ("CAOEC") monthly Contractor Summary. The CAOEC industry average is based on Operating Days divided by total available drilling days.

• Revenue of $71,403 – a decrease of $10,671 (13%) from $82,074 in the corresponding 2024 period. The decrease was primarily due to a 10% reduction in operating days in 2025.
• Operating days of 2,637 – a decrease of 281 operating days (10%) from 2,919 operating days in the corresponding 2024 period. The decrease was primarily due to customer drilling program deferrals and operator consolidation resulting in a reduction in operating days.
• Gross Margin⁽¹⁾ of 32% – a decrease of 1% from 33% from the corresponding 2024 period. The decrease was primarily due to the reduction in revenue as a result of the decrease in operating days and revenue per day.
• Net Income of $3,816 – a decrease of $1,347 (26%) from $5,163 in the corresponding 2024 period. The decrease was primarily driven by lower Adjusted EBITDA, increased depreciation, and an increase in deferred income tax expense. This was partially offset by the gain on sale from the sale of certain components of Rig 24.
• General and administrative expenses of $10,265 – a decrease of $1,046 (9%) from $11,311 in the corresponding 2024 period. The decrease was primarily related to decreased worker compensation insurance, share-based payments, and credit loss allowance in 2025.
• Adjusted EBITDA⁽¹⁾ of $13,642 – a decrease of $3,833 (22%) from $17,475 in the corresponding 2024 period. The decrease was primarily due to customer drilling program deferrals and operator consolidation resulting in a reduction in operating days and operating gross margin.

RESULTS FROM OPERATIONS FOR THE THREE MONTH PERIOD ENDED DECEMBER 31, 2025

	Three months ended, December 31
(000's CAD $)	2025		2024	% Change
Revenue	21,309		20,395	4 %
Direct operating expenses	14,200		13,627	4 %
Gross margin^(1)	7,109		6,768	5 %
Gross margin %^(1)	33 %		33 %	0 %
Net income	4,526		687	559 %
General and administrative expenses	2,363		3,128	(24 %)
Adjusted EBITDA^(1)	4,937		3,976	24 %
Drilling rig operating days^(2)	805		722	11 %
Drilling rig revenue per day^(3)	26.5		28.3	(6 %)
Drilling rig utilization^(4)	51 %		41 %	10 %
CAOEC industry average utilization^(5)	44 %		44 %	-

^(1) Refer to "Non-GAAP and Other Financial Measures" for further information. ^(2) Defined as contract drilling days, between spud to rig release. ^(3) Drilling rig revenue per day is calculated by revenue divided by drilling rig operating days. ^(4) Drilling rig utilization is calculated based on operating days (spud to rig release). ^(5) Source: The Canadian Association of Energy Contractors ("CAOEC") monthly Contractor Summary. The CAOEC industry average is based on Operating Days divided by total available drilling days.

• Revenue of $21,309 – an increase of $914 (4%) from $20,395 in the corresponding 2024 period, primarily driven by higher activity levels and improved drilling rig utilization.
• Operating days of 805 – an increase of 83 operating days (11%) from 722 operating days in the corresponding 2024 period. The increase was driven by extended customer programs and work secured with larger, more stable customers.
• Gross Margin of 33% – remained flat at 33% from the corresponding 2024 period, as lower revenue per day was offset by reduced operating costs per day.
• Net Income of $4,526 – an increase of $3,839 (559%) from $687 in the corresponding 2024 period. The increase was primarily due to the gain on sale from certain components of Rig 24, partially offset by an increase in deferred income tax expense.
• General and administrative expenses of $2,363 – a decrease of $765 (24%) from $3,128 in the corresponding 2024 period. The decrease was primarily related to decreased worker compensation insurance, and credit loss allowance in 2025.
• Adjusted EBITDA of $4,937 – an increase of $961 (24%) from $3,976 in the corresponding 2024 period, driven by increased revenue, along with a decrease in administrative expenses.

NON-GAAP AND OTHER FINANCIAL MEASURES

This press release contains references to (i) adjusted EBITDA, (ii) Gross margin (iii) Gross margin percentage and (iv) free cash flow. These financial measures are not measures that have any standardized meaning prescribed by IFRS Accounting Standards and are therefore referred to as non-generally accepted accounting principles ("non-GAAP") measures. The non-GAAP measures used by the Corporation may not be comparable to similar measures used by other companies.

(i)

Adjusted EBITDA - is defined as income from operations before interest income, interest expense, taxes, transaction costs, depreciation and amortization, share-based compensation expense, gains on asset disposals, impairment expenses, other income, foreign exchange, non-recurring restructuring charges, finance costs, accretion of debentures and other income/expenses, foreign exchange gain and any other items that the Corporation considers appropriate to adjust given the irregular nature and relevance to comparable operations. Management believes that in addition to net income, adjusted EBITDA is a useful supplemental measure as it provides an indication of the results generated by the Corporation's principal business activities prior to consideration of how these activities are financed, how assets are depreciated, amortized and impaired, the impact of foreign exchange, or how the results are affected by the accounting standards associated with the Corporation's stock-based compensation plan. Investors should be cautioned, however, that adjusted EBITDA should not be construed as an alternative to net income determined in accordance with IFRS Accounting Standards as an indicator of the Corporation's performance. The Corporation's method of calculating adjusted EBITDA may differ from that of other organizations and, accordingly, its adjusted EBITDA may not be comparable to that of other companies.

	Three months ended, December 31				Year ended, December 31
(000's CAD $)	2025	2024	% Change		2025	2024	% Change
Net income	4,526	687	559 %		3,816	5,163	(26 %)
Depreciation	2,648	2,300	15 %		10,074	8,781	15 %
Finance costs	517	449	15 %		1,773	1,983	(11 %)
Other income	(2)	(11)	(82 %)		(58)	(50)	16 %
Deferred income tax expense	931	409	130 %		941	409	130 %
Gain on asset disposals	(4,091)	-	nm		(4,157)	(52)	nm
Share-based payments	38	192	(80 %)		679	1,199	(43 %)
Transaction costs	357	(3)	nm		534	105	409 %
Foreign exchange loss (gain)	13	(47)	nm		40	(63)	nm
Adjusted EBITDA	4,937	3,976	24 %		13,642	17,475	(22 %)
nm - not meaningful

(ii)	Gross margin - is defined as Income from operations before depreciation of property and equipment. Gross margin is a measure that provides shareholders and potential investors additional information regarding the Corporation's cash generating and operating performance. Management utilizes this measure to assess the Corporation's operating performance. Readers should be cautioned, however, that gross margin should not be construed as an alternative to net income determined in accordance with IFRS Accounting Standards as an indicator of the Corporation's performance. The Corporation's method of calculating gross margin may differ from that of other organizations and, accordingly, its gross margin may not be comparable to that of other companies.
(iii)	Gross margin percentage - is calculated as gross margin divided by revenue. The Corporation believes gross margin as a percentage of revenue is an important measure to determine how the Corporation is managing its revenues and corresponding cost of sales. The Corporation's method of calculating gross margin percentage may differ from that of other organizations and, accordingly, its gross margin percentage may not be comparable to that of other companies.
	The following table reconciles the Corporation's income from operations, being the most directly comparable financial measure disclosed in the Corporation's financial statements, to gross margin and gross margin percentage:

	Three months ended, December 31				Year ended, December 31
(000's CAD $)	2025	2024	% Change		2025	2024	% Change
Income from operations	4,614	4,612	0 %		13,154	18,806	(30 %)
Depreciation of property and equipment	2,495	2,156	16 %		9,486	8,320	14 %
Gross margin	7,109	6,768	5 %		22,640	27,126	(17 %)
Gross margin %	33 %	33 %	0 %		32 %	33 %	(1 %)

(iv)

Free cash flow - is calculated based on funds from operating activities less maintenance and sustaining capital, and interest and principal debt repayments. The Corporation uses this measure to assess the discretionary cash that management has to invest in growth capital, asset acquisitions, or return capital to shareholders. The Corporation's method of calculating free cash flow may differ from that of other organizations and, accordingly, its free cash flow may not be comparable to that of other companies. The following table reconciles the Corporation's funds from operating activities to free cash flow.

	Three months ended, December 31				Year ended, December 31
(000's CAD $)	2025	2024	% Change		2025	2024	% Change
Funds from operating activities	4,594	3,980	15 %		13,062	17,271	(24 %)
Maintenance and sustaining capital	(630)	(1,342)	(53 %)		(2,962)	(3,671)	(19 %)
Interest paid on Demand Facility	(193)	(78)	147 %		(484)	(271)	79 %
Term Loan Facility principal payments	(408)	(452)	(10 %)		(1,697)	(2,378)	(29 %)
Interest on Term Loan Facility	(262)	(328)	(20 %)		(1,108)	(1,517)	(27 %)
Total free cash flow	3,101	1,780	74 %		6,811	9,434	(28 %)

SUPPLEMENTARY FINANCIAL MEASURES

The Corporation uses supplementary financial measures that are not defined terms under IFRS Accounting Standards to provide useful supplemental financial information to investors.

(i)

Capital Expenditures – management of the Corporation uses a breakdown of capital expenditures to assess the capital invested related to capital expenditures at a more detailed level. Capital expenditures have been split into two categories, growth capital, and maintenance and sustaining capital. Growth capital are expenditures incurred for the purposes of upgrading existing equipment to improve operating efficiency and marketability of the asset. Maintenance and sustaining capital are expenditures related to maintaining the current operational efficiency of the asset. The following table shows the split of the two different types of capital expenditures. The Corporation's method of calculating capital expenditures may differ from that of other organizations and, accordingly, its capital expenditures may not be comparable to that of other companies. The following table reconciles the Corporation's total capital expenditures.

	Year ended, December 31
(000's CAD $)	2025	2024	% Change
Capital expenditures:
Growth capital	12,710	10,971	16 %
Maintenance and sustaining capital	2,962	3,671	(19 %)
Total capital expenditures	15,672	14,642	7 %

FORWARD-LOOKING INFORMATION

Certain statements contained in this press release constitute forward-looking statements or forward-looking information (collectively, "forward-looking information"). Forward-looking information relates to future events or the Corporation's future performance. All information other than statements of historical fact is forward-looking information. The use of any of the words "anticipate", "plan", "contemplate", "continue", "estimate", "expect", "intend", "propose", "might", "may", "will", "could", "should", "believe", "predict", and "forecast" are intended to identify forward-looking information.

This press release contains forward-looking information pertaining to, among other things: the Corporation's performance; expectations associated with the Corporation's outlook, including, among other things, anticipated commodity prices, the volatility thereof and potential mitigating factors and expectations about industry activities and the impacts thereof on the Corporation; the return of value to shareholders through the Corporation's NCIB program; expectations regarding the level of capital investment to achieve full utilization of the Corporation's rigs; the assessment of additional acquisition opportunities by the Corporation; and expected impacts of tariffs on the Corporation and the industry in which it operates.

Forward-looking information is based on certain assumptions that Stampede has made in respect thereof as at the date of this press release regarding, among other things: the Corporation's ability to fully crew and contract its rigs; that market conditions and growth prospects will permit the return of value to shareholders through the Corporation's NCIB program; the success of the measures implemented by the Corporation to ensure the safe, efficient and reliable operations at each of its drilling sites; the creditworthiness of the Corporation's customers and counterparties; the effectiveness of the Corporation's financial risk management policies at ensuring all payables are paid within the pre-agreed credit terms; that the Corporation's critical accounting estimates and judgments are reasonable; that the Corporation has adequate access to its credit facilities to provide the necessary liquidity needed to manage fluctuations in the timing of receipt and/or disbursement of operating cash flows; the condition of the global economy, including certain geopolitical risks; the stability of the economic and political environment in which the Corporation operates; the ability of the Corporation to retain qualified staff; management's ability to crew underutilized assets; the ability of the Corporation to maintain key customers; the ability of the Corporation to obtain financing on acceptable terms; the belief that the Corporation's principal sources of liquidity will be sufficient to service its debt and fund its operations and other strategic opportunities; the ability of the Corporation to obtain financing on acceptable terms; the ability to protect and maintain the Corporation's intellectual property; the Corporation's ability to maintain financial resiliency in light of current macroeconomic conditions; and the regulatory framework regarding taxes and environmental matters in the jurisdictions in which the Corporation operates.

Forward-looking information is presented in this press release for the purpose of assisting investors and others in understanding certain key elements of the Corporation's financial results and business plan, as well as the objectives, strategic priorities and business outlook of the Corporation, and in obtaining a better understanding of the Corporation's anticipated operating environment. Readers are cautioned that such forward-looking information may not be appropriate for other purposes.

While Stampede believes the expectations and material factors and assumptions reflected in the forward-looking information is reasonable as of the date hereof, there can be no assurance that these expectations, factors and assumptions will prove to be correct. Forward-looking information is not a guarantee of future performance and actual results or events could differ materially from the expectations of the Corporation expressed in or implied by such forward-looking information. Accordingly, readers should not place undue reliance on forward-looking information. All forward-looking information is subject to a number of known and unknown risks and uncertainties including, but not limited to: the condition of the global economy, including trade, inflation, interest rates, the ongoing conflict and political uncertainty in Ukraine, the Middle East and South America and other geopolitical risks, including the imposition of tariffs and other non-tariff trade barriers; the condition of the crude oil and natural gas industry and related commodity prices; other commodity prices and the potential impact on the Corporation and the industry in which the Corporation operates, including levels of exploration and development activities; the impact of increasing competition; fluctuations in operating results; the ongoing significant volatility in world markets and the resulting impact on drilling and completions programs; foreign currency exchange rates; interest rates; labour and material shortages; cyber security risks; natural catastrophes; and certain other risks and uncertainties detailed under the heading "Risks and Uncertainties" in the Corporation's MD&A and under the heading "Risk Factors" in the Corporation's AIF, each dated March 12, 2026 for the year ended December 31, 2025, and from time to time in Stampede's public disclosure documents available at www.sedarplus.ca.

This list of risk factors should not be construed as exhaustive. Readers are cautioned that events or circumstances could cause actual results to differ materially from those predicted, forecasted, or projected. Statements, including forward-looking information, are made as of the date of this press release and the Corporation does not undertake any obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws. The forward-looking information contained in this press release is expressly qualified by this cautionary statement.

SOURCE Stampede Drilling Inc.

For further information, please contact: Lyle Whitmarsh, President & Chief Executive Officer, Stampede Drilling Inc., Tel: [phone]