Western Energy Services Corp. Releases Fourth Quarter and Year End 2025 Financial and Operating Results
Press Release
February 25, 2026
CALGARY, ALBERTA – Western Energy Services Corp. (“Western” or the “Company”) (TSX: WRG) announces the release of its fourth quarter and year end 2025 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 and for the year ended December 31, 2025, and 2024 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 December 31, 2025
Financial Highlights:
⦁ Fourth quarter revenue of $58.4 million in 2025 was $1.3 million (or 2%) lower than the fourth quarter of 2024, due to lower activity in the well servicing segment and in contract drilling in the United States (“US”).
⦁ Adjusted EBITDA of $15.4 million in the fourth quarter of 2025 was $5.1 million (or 50%) higher compared to $10.3 million in the fourth quarter of 2024, despite fourth quarter revenue decreasing by 2% compared to the same period in the prior year. The Company incurred $0.4 million of one-time reorganization costs in the fourth quarter of 2025, whereas the fourth quarter of 2024 had one-time reorganization costs of $2.9 million. After normalizing for the one-time reorganization costs in both 2025 and 2024, Adjusted EBITDA in the fourth quarter of 2025 would have totalled $15.8 million, compared to $13.2 million in the fourth quarter of 2024.
⦁ The Company incurred a net loss of $21.2 million in the fourth quarter of 2025 ($0.63 net loss per basic common share) as compared to a net loss of $2.0 million in the fourth quarter of 2024 ($0.06 net loss per basic common share) as the loss on asset decommissioning, as described below, and higher other expenses were partially offset by higher Adjusted EBITDA, a higher income tax recovery and lower finance costs.
⦁ Fourth quarter additions to property and equipment of $5.3 million in 2025 compared to $5.8 million in the fourth quarter of 2024, consisting of $3.4 million of expansion capital related to rig upgrades and $1.9 million of maintenance capital.
⦁ During the fourth quarter of 2025, the Company decommissioned certain underutilized assets within its contract drilling and well servicing rig fleets as part of a strategic optimization of its Canada and US operations. In connection with this decommissioning, the Company recognized a loss on asset decommissioning of $25.1 million, with $22.8 million recognized in the contract drilling segment and $2.3 million recognized in the production services segment.
Operational Highlights:
⦁ In Canada, Operating Days of 1,177 in the fourth quarter of 2025 were 191 days (or 19%) higher compared to 986 days in the fourth quarter of 2024. Drilling rig utilization in Canada was 38% in the fourth quarter of 2025, compared to 32% in the same period of the prior year, mainly due to improved customer retention year over year from targeted marketing efforts.
⦁ Revenue per Operating Day in Canada averaged $34,327 in the fourth quarter of 2025, which was 2% lower than the same period of the prior year.
⦁ In the US, drilling rig utilization averaged 22% in the fourth quarter of 2025, which was lower than the fourth quarter of 2024, due to continued low industry activity in the US as well as a change in focus to North Dakota from Texas earlier in the year.
⦁ Revenue per Operating Day in the US for the fourth quarter of 2025 averaged US$35,165, an 8% increase compared to US$32,603 in the same period of the prior year. The improvement in pricing reflects a more favorable rig mix following the Company’s strategic decision to focus its US operations more on North Dakota.
⦁ In Canada, service rig utilization was 25% in the fourth quarter of 2025, compared to 34% in the same period of the prior year, as Service Hours decreased by 27% to 10,024 hours from 13,750 hours in the same period of the prior year, mainly due to changes in customer programs.
⦁ Revenue per Service Hour averaged $989 in the fourth quarter of 2025 and was 2% lower than the fourth quarter of 2024.
Year Ended December 31, 2025
Financial Highlights:
⦁ Revenue for the year ended December 31, 2025 of $217.5 million was $5.6 million (or 2%) lower than the year ended December 31, 2024, as lower production services revenue was offset by higher contract drilling revenue in Canada.
⦁ Despite a decrease in revenue for the year ended December 31, 2025, Adjusted EBITDA of $48.4 million was $6.2 million (or 15%) higher compared to $42.2 million in the same period of 2024, due to cost synergy savings associated with a reorganization of senior management in 2025. Included in Adjusted EBITDA for the year ended December 31, 2025, was $4.0 million of one-time reorganization costs, compared to $5.7 million in 2024. After normalizing for one-time reorganization costs in both periods, Adjusted EBITDA for the year ended December 31, 2025 would have totalled $52.4 million, compared to $47.9 million in 2024, an increase of $4.5 million due to higher drilling revenue in Canada and lower administrative expenses, which were offset partially by lower production services activity in Canada and lower drilling activity in the US.
⦁ The Company incurred a net loss of $25.6 million for the year ended December 31, 2025 ($0.76 net loss per basic common share) as compared to a net loss of $6.9 million in the same period of 2024 ($0.20 net loss per basic common share) as the $25.1 million loss on asset decommissioning and a $2.7 million higher loss on the sale of fixed assets, were offset partially by higher Adjusted EBITDA, lower stock based compensation expense, lower finance costs and a higher income tax recovery.
⦁ For the year ended December 31, 2025, additions to property and equipment of $21.7 million, which were consistent with the prior year, consisted of $7.5 million of expansion capital related to rig upgrades and $14.2 million of maintenance capital.
⦁ On January 27, 2025, the Company announced that it extended the maturity date of its Second Lien Facility (as defined in this press release) from May 18, 2026 to May 18, 2027. The Company also made a voluntary principal repayment of $5.0 million on its Second Lien Facility in the second quarter of 2025.
Operational Highlights:
⦁ In Canada, Operating Days of 4,276 for the year ended December 31, 2025, were 566 days (or 15%) higher compared to 3,710 days in the same period of the prior year. Drilling rig utilization in Canada was 34% for the year ended December 31, 2025, compared to 30% in the prior year, mainly due to more upgraded rigs working through spring break up in 2025 than in 2024, as well as improved customer retention year over year due to targeted marketing efforts.
⦁ Revenue per Operating Day in Canada averaged $32,890 for the year ended December 31, 2025, which was 1% lower than the prior year.
⦁ In the US, drilling rig utilization averaged 22% for the year ended December 31, 2025, which was lower than 29% in the prior year, due to continued low industry activity in the US and a change in focus to North Dakota from Texas.
⦁ Revenue per Operating Day in the US for the year ended December 31, 2025 averaged US$31,999, a 5% increase compared to US$30,621 in the prior year, mainly due to changes in rig mix.
⦁ In Canada, service rig utilization was 26% for the year ended December 31, 2025, compared to 35% in the prior year, as Service Hours decreased by 28% to 41,970 hours from 58,117 hours in the same period of the prior year, mainly due to changes in customer programs.
⦁ Revenue per Service Hour averaged $1,013 for the year ended December 31, 2025, and was 1% lower than the prior year.
Selected Financial Information
IBF4
