Canada's Ensign Energy Q2 revenue rises on increased drilling activity

Ensign Energy Services

07/08/2026 10:12

Overview
Canada oilfield services firm's Q2 revenue rose 7% yr/yr on higher operating activity
Q2 adjusted EBITDA increased 6% yr/yr; net loss narrowed from prior year
Company agreed to acquire Citadel Drilling for US$65 mln to expand U.S. Permian operations

Outlook
Ensign expects Canadian activity to improve in H2 2026 due to positive market conditions
Company sees U.S. activity improving in H2 2026 after CDL acquisition and favorable market conditions
Ensign targets C$60 mln in debt reduction for 2026; capital expenditures may adjust with industry conditions

Result Drivers
HIGHER OPERATING ACTIVITY - Co said increased drilling and well servicing activity in Canada, U.S., and international markets drove revenue growth
NEGATIVE FX IMPACT - Co said revenue increase was partially offset by negative foreign exchange translation on USD-denominated revenue
LOWER INTEREST EXPENSE - Co said net loss narrowed as lower debt levels and effective rates reduced interest expense

Company press release: ID:nCNWgjdQ3a

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
 
C$397.30 mln
 
Q2 Loss Per Share
 
C$0.07
 
Q2 Net Loss
 
C$13.10 mln
 
Q2 Adjusted EBITDA
 
C$85.83 mln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the oil & gas drilling peer group is "buy."
Wall Street's median 12-month price target for Ensign Energy Services Inc is C$4.00, about 14.3% above its August 6 closing price of C$3.50

Reuters Recommended Reads
Aug 4 - Canada's PHX Energy Q2 revenue rises to record high on increased drilling activity
Aug 6 - CES Energy Q2 revenue beats estimates on strong oilfield chemicals demand
Aug 6 - ProFrac Q2 revenue rises sequentially, net loss narrows

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)