Western Energy Services Corp. Releases First Quarter 2026 Financial and Operating Results
Press Release
April 28, 2026
CALGARY, ALBERTA – Western Energy Services Corp. (“Western” or the “Company”) (TSX: WRG) announces the release of its first quarter 2026 financial and operating results. Additional information relating to the Company, including the Company’s financial statements and management’s discussion and analysis (“MD&A”) as at March 31, 2026 and for the three months ended March 31, 2026 and 2025 will be available on SEDAR+ at www.sedarplus.ca. Non-International Financial Reporting Standards (“Non-IFRS”) measures and ratios, such as Adjusted EBITDA, Adjusted EBITDA as a percentage of revenue, revenue per Operating Day, and revenue per Service Hour, as well as abbreviations and definitions for standard industry terms are defined later in this press release. All amounts are denominated in Canadian dollars (CDN$) unless otherwise identified.
Operational and Financial Highlights
Three Months Ended March 31, 2026
Financial Highlights:
⦁ First quarter revenue of $55.3 million in 2026 was $13.7 million (or 20%) lower than the first quarter of 2025, as drilling and well servicing activity decreased due to market uncertainty and continued low gas prices.
⦁ Adjusted EBITDA of $12.4 million in the first quarter of 2026 was $1.7 million (or 12%) lower compared to $14.1 million in the first quarter of 2025 due to increased competition and lower drilling and well servicing activity. The impact of reduced activity was offset by structural changes implemented throughout 2025 which led to cost savings across all divisions. After normalizing for one-time reorganization costs, Adjusted EBITDA in the first quarter of 2025 would have totaled $16.7 million.
⦁ The Company generated net income of $1.8 million in the first quarter of 2026 ($0.05 net income per basic common share) as compared to net income of $2.4 million in the first quarter of 2025 ($0.07 net income per basic common share) as lower Adjusted EBITDA and higher stock-based compensation expense was partially offset by decreases in depreciation expense, finance costs, income tax expense, and other expenses due to a gain on the sale of assets in the first quarter of 2026.
⦁ First quarter additions to property and equipment of $4.1 million in 2026 compared to $5.0 million in the first quarter of 2025, consisting of $1.7 million of expansion capital related to rig upgrades and $2.4 million of maintenance capital.
Operational Highlights:
⦁ In Canada, Operating Days of 1,193 in the first quarter of 2026 were 121 days (or 9%) lower compared to 1,314 days in the first quarter of 2025. Drilling rig utilization in Canada was 47% in the first quarter of 2026, compared to 43% in the same period of the prior year, due to Western’s decision to deregister six rigs from its drilling fleet in Canada as of December 31, 2025.
⦁ Revenue per Operating Day in Canada averaged $33,035 in the first quarter of 2026, which was 2% lower than the same period of the prior year.
⦁ In the US, drilling rig utilization averaged 30% in the first quarter of 2026, compared to 26% in the first quarter of 2025, due to Western’s decision to deregister three rigs from its US drilling fleet as of December 31, 2025. Operating days in the US of 81 in the first quarter of 2026 were 86 days (or 51%) lower compared to 167 days in the first quarter of 2025.
⦁ Revenue per Operating Day in the US for the first quarter of 2026 averaged US$34,768, a 24% increase compared to US$27,945 in the same period of the prior year, mainly due to changes in rig mix.
⦁ In Canada, service rig utilization was 37% in the first quarter of 2026, compared to 36% in the same period of the prior year, due to Western’s decision to deregister 17 service rigs from its well servicing fleet as of December 31, 2025. Service Hours decreased by 26% to 10,697 hours from 14,415 hours in the same period of the prior year.
⦁ Revenue per Service Hour averaged $904 in the first quarter of 2026 and was 15% lower than the first quarter of 2025, due to increased competition.
Selected Financial Information
IBF4
