Ensign Energy Raises Third-Quarter Revenue 17% to C$481.7 Million
Key Facts
Ensign Energy Services reported revenue of C$481.7 million for the third quarter on November 6, 2026, up 17% year over year, and returned to net profit. The company said net income attributable to common shareholders was C$10.8 million, or C$0.06 per share, compared with a loss of C$3.3 million, or C$0.02 per share, in the same period of 2025. Results showed concurrent growth in revenue, operating earnings and cash flow from operations. Revenue rose from C$411.2 million a year earlier, according to the company statement. The Citadel Drilling deal also contributed revenue during the quarter, alongside increased operating activity in some markets.
Adjusted earnings before interest, taxes, depreciation and amortization rose to C$115.0 million, up 17% from C$98.6 million in the third quarter of 2025. The company said cash flow from operations increased 39% to C$122.5 million, compared with C$88.2 million a year earlier. These operating indicators provide context for the return to net income, alongside annual revenue growth of 17%. Revenue for the nine months ended September 30 was C$1,297.1 million, up 6% from C$1,220.1 million in the same period of 2025. The company attributed the nine-month growth to increased activity and higher day rates, as well as the Citadel acquisition.
The United States was the largest source of quarterly revenue, at C$262.5 million, compared with C$136.0 million in Canada and C$83.2 million in international markets. U.S. revenue grew 21% from C$217.3 million in the year-earlier period, while international revenue rose 30% from C$64.2 million, and Canadian revenue increased 5% from C$129.7 million. U.S. performance coincided with an increase in rig operating days to 3,721, up 16% from 3,194 a year earlier. In Canada, drilling recorded 3,790 operating days, compared with 3,509 days, an increase of 8%. The company said the improvement in Canadian revenue was linked to increased operating activity.
Ensign acquired all issued and outstanding shares of Citadel Drilling on August 13, 2026, for total consideration of C$81.9 million. It said the deal strengthens its presence in the U.S. Permian Basin through six high-specification, fully contracted rigs. Citadel contributed revenue of C$20.6 million and pre-tax income of C$3.2 million, along with 276 operating days for the period ended September 30. The acquired company’s contribution shows one part of the increase in U.S. revenue during the quarter. For the first nine months, the company included the acquisition among the factors supporting growth in total revenue.
Ensign said the outlook for oilfield services improved during the third quarter, as geopolitical disruptions in the Middle East tightened global crude supplies, reduced inventories and increased oil price volatility. In the United States, the company expected activity to continue improving in the fourth quarter of 2026, supported by the Citadel deal and positive market conditions. It also expected Canadian activity to improve in the fourth quarter on market conditions, but warned that potential trade tariffs between Canada and the United States, including tariffs on crude oil, could affect activity in the near term. The company set a target to reduce net debt by approximately C$50.0 million during the remainder of 2026. It added that the target could rise or fall if industry conditions change.
The company held its third-quarter results call on November 6 at 10:00 a.m. Mountain Time in Alberta. It made a digital recording of the call available after it ended through November 13, 2026. The event followed the quarterly results announcement, which covered revenue, income, cash flow and operating activity indicators. The company’s near-term guidance focuses on the direction of activity in the United States and Canada during the fourth quarter. Its announced net debt reduction path also relates to the remainder of 2026 and industry conditions.