WESTERN ENERGY SERVICES CORP. RELEASES THIRD QUARTER 2025 FINANCIAL AND OPERATING RESULTS

CALGARY, AB, Oct. 21, 2025 /CNW/ – Western Vitality Providers Corp. (“Western” or the “Firm”) (TSX:WRG) proclaims the discharge of its third quarter 2025 monetary and working outcomes.  Extra data regarding the Firm, together with the Firm’s monetary statements and administration’s dialogue and evaluation (“MD&A”) as at September 30, 2025 and for the three and 9 months ended September 30, 2025 and 2024 shall be accessible on SEDAR+ at www.sedarplus.ca.  Non-Worldwide Monetary Reporting Requirements (“Non-IFRS”) measures and ratios, resembling Adjusted EBITDA, Adjusted EBITDA as a share of income, income per Working Day, and income per Service Hour, in addition to abbreviations and definitions for normal trade phrases are outlined later on this press launch.  All quantities are denominated in Canadian {dollars} (CDN$) until in any other case recognized.

Operational and Monetary Highlights

Three Months Ended September 30, 2025

Monetary Highlights:

• Third quarter income of $50.0 million in 2025 was $8.3 million (or 14%) decrease than the third quarter of 2024, on account of decrease exercise in each the contract drilling and properly servicing segments.
• Adjusted EBITDA of $13.1 million within the third quarter of 2025 was $1.7 million (or 14%) increased in comparison with $11.4 million within the third quarter of 2024, regardless of third quarter income reducing by 14% in comparison with the identical interval within the prior 12 months.  There have been no one-time reorganization prices incurred within the third quarter of 2025, whereas the third quarter of 2024 had one-time reorganization prices of $0.6 million.
• The Firm incurred a internet lack of $2.2 million within the third quarter of 2025 ($0.07 internet loss per fundamental widespread share) as in comparison with a internet lack of $1.2 million within the third quarter of 2024 ($0.04 internet loss per fundamental widespread share) as a $3.0 million increased loss on the sale of mounted property and better depreciation expense, have been offset partially by increased Adjusted EBITDA, decrease finance prices and a rise in earnings tax restoration.
• Third quarter additions to property and gear of $5.5 million in 2025 in comparison with $8.2 million within the third quarter of 2024, consisting of $2.1 million of enlargement capital associated to rig upgrades and $3.4 million of upkeep capital.

Operational Highlights:

• In Canada, Working Days of 1,022 within the third quarter of 2025 have been 93 days (or 8%) decrease in comparison with 1,115 days within the third quarter of 2024.  Drilling rig utilization in Canada was 33% within the third quarter of 2025, in comparison with 36% in the identical interval of the prior 12 months, primarily on account of continued weak commodity costs, impacting buyer drilling applications.
• Income per Working Day in Canada averaged $30,425 within the third quarter of 2025, which was 2% decrease than the identical interval of the prior 12 months.
• Within the US, drilling rig utilization averaged 24% within the third quarter of 2025, which was decrease than the third quarter of 2024, on account of continued low trade exercise within the US in addition to a change in focus to North Dakota from Texas.
• Income per Working Day within the US for the third quarter of 2025 averaged US$33,669, an 18% enhance in comparison with US$28,429 in the identical interval of the prior 12 months.  The development in pricing displays a extra favorable rig combine following the Firm’s strategic choice to focus its US operations extra in North Dakota.
• In Canada, service rig utilization was 24% within the third quarter of 2025, in comparison with 31% in the identical interval of the prior 12 months, as Service Hours decreased by 21% to 9,838 hours from 12,525 hours in the identical interval of the prior 12 months, primarily on account of modifications in buyer applications.
• Income per Service Hour averaged $950 within the third quarter of 2025 and was 3% decrease than the third quarter of 2024.

9 Months Ended September 30, 2025

Monetary Highlights:

• Income for the 9 months ended September 30, 2025 of $159.1 million was $4.3 million (or 3%) decrease than the identical interval in 2024, as decrease manufacturing companies income was offset by increased contract drilling income in Canada.
• Regardless of income reducing for the 9 months ended September 30, 2025, Adjusted EBITDA of $33.0 million was $1.1 million (or 3%) increased in comparison with $31.9 million in the identical interval of 2024, on account of value synergy financial savings related to a reorganization of senior administration in 2025.  Included in Adjusted EBITDA for the 9 months ended September 30, 2025, was $3.6 million of one-time reorganization prices, in comparison with $2.8 million in 2024.  After normalizing for one-time reorganization prices in each intervals, Adjusted EBITDA for the 9 months ended September 30, 2025 would have totalled $36.6 million, in comparison with $34.7 million in 2024, a rise of $1.9 million on account of increased drilling income in Canada and decrease administrative bills, which have been offset partially by decrease manufacturing companies exercise in Canada and decrease drilling exercise within the US.
• The Firm incurred a internet lack of $4.4 million for the 9 months ended September 30, 2025 ($0.13 internet loss per fundamental widespread share) as in comparison with a internet lack of $4.9 million in the identical interval of 2024 ($0.14 internet loss per fundamental widespread share) as increased Adjusted EBITDA, and reduces in inventory primarily based compensation expense and finance prices have been offset by a $2.0 million increased loss on the sale of mounted property and a decrease earnings tax restoration.
• For the 9 months ended September 30, 2025, additions to property and gear of $16.4 million in comparison with $15.8 million in the identical interval of the prior 12 months, consisting of $4.1 million of enlargement capital associated to rig upgrades and $12.3 million of upkeep capital.
• On January 27, 2025, the Firm introduced that it prolonged the maturity date of its second lien secured time period mortgage with Alberta Funding Administration Company (the “Second Lien Facility”) from Could 18, 2026 to Could 18, 2027.  The Firm additionally made a voluntary principal reimbursement of $5.0 million on its Second Lien Facility within the second quarter of 2025.

Operational Highlights:

• In Canada, Working Days of three,099 for the 9 months ended September 30, 2025, have been 375 days (or 14%) increased in comparison with 2,724 days in the identical interval of the prior 12 months.  Drilling rig utilization in Canada was 33% for the 9 months ended September 30, 2025, in comparison with 29% in the identical interval of the prior 12 months, primarily on account of extra upgraded rigs working by means of spring break up in 2025 than in 2024, in addition to improved buyer retention 12 months over 12 months on account of focused advertising efforts.
• Income per Working Day in Canada averaged $32,344 for the 9 months ended September 30, 2025, which was in keeping with the identical interval of the prior 12 months.
• Within the US, drilling rig utilization averaged 22% for the 9 months ended September 30, 2025, which was decrease than 28% in the identical interval within the prior 12 months, on account of continued low trade exercise within the US and a change in focus to North Dakota from Texas.
• Income per Working Day within the US for the 9 months ended September 30, 2025 averaged US$31,108, a 4% enhance in comparison with US$29,904 in the identical interval of the prior 12 months, primarily on account of modifications in rig combine.
• In Canada, service rig utilization was 26% within the 9 months ended September 30, 2025 in comparison with 36% in the identical interval of the prior 12 months, as Service Hours decreased by 28% to 31,946 hours from 44,368 hours in the identical interval of the prior 12 months, primarily on account of modifications in buyer applications.
• Income per Service Hour averaged $1,021 for the 9 months ended September 30, 2025, and was in keeping with the identical interval within the prior 12 months.

Enterprise Overview

Western is an vitality companies firm that gives contract drilling companies in Canada and within the US and manufacturing companies in Canada by means of its numerous divisions, its subsidiary, and its first nations relationships.

Contract Drilling

Western markets a fleet of 40 drilling rigs particularly fitted to drilling advanced horizontal wells throughout Canada and the US.  Western is at present the fourth-largest drilling contractor in Canada, primarily based on the CAOEC registered drilling rigs¹. 

Western’s marketed and owned contract drilling rig fleets are comprised of the next:

Manufacturing Providers

Manufacturing companies supplies properly servicing and oilfield gear leases in Canada. Western operates 62 properly servicing rigs and is the second-largest properly servicing firm in Canada primarily based on CAOEC registered properly servicing rigs².

Western’s properly servicing rig fleet is comprised of the next:

Enterprise Setting

Crude oil and pure gasoline costs influence the money move of Western’s clients, which in flip impacts the demand for Western’s companies.  The next desk summarizes common crude oil and pure gasoline costs, in addition to common overseas trade charges, for the three and 9 months ended September 30, 2025 and 2024:

• West Texas Intermediate (“WTI”) on common decreased by 14% for each the three and 9 months ended September 30, 2025 respectively, in comparison with the identical intervals within the prior 12 months.  In 2025, crude oil costs have been impacted by market volatility on account of tariffs applied by the US authorities, counter-tariffs in response by a number of international locations, decrease world demand and the continued battle within the Center East and Japanese Europe.
• Pricing on Western Canadian Choose crude oil declined by 12% and eight% for the three and 9 months ended September 30, 2025 respectively, in comparison with the identical intervals of the prior 12 months.
• Pure gasoline costs in Canada have been decrease for the three months ended September 30, 2025, because the 30-day spot AECO value decreased by 14% in comparison with the identical interval of the prior 12 months; nevertheless, for the 9 months ended September 30, 2025, the 30-day spot AECO value elevated by 11%, in comparison with the identical interval within the prior 12 months. 
• The US greenback to the Canadian greenback overseas trade charge for the three and 9 months ended September 30, 2025 strengthened by 1% and three% respectively, in comparison with the identical intervals within the prior 12 months.
• Decrease WTI costs within the 9 months ended September 30, 2025, contributed to weaker trade drilling exercise within the US.  As reported by Baker Hughes Firm^[3], the variety of energetic drilling rigs within the US decreased by roughly 8% to 540 rigs as at September 30, 2025, in comparison with 587 rigs at September 30, 2024, and averaged 566 rigs throughout the 9 months ended September 30, 2025, in comparison with 604 rigs in the identical interval of the prior 12 months.
• In Canada there have been 196 energetic rigs within the Western Canadian Sedimentary Basin (“WCSB”) at September 30, 2025, in comparison with 223 energetic rigs as at September 30, 2024, representing a lower of roughly 12%. The CAOEC^[4] reported that for drilling in Canada, the overall variety of Working Days within the WCSB for the three months ended September 30, 2025 have been 13% decrease than the identical interval within the prior 12 months, whereas the overall variety of Working Days within the WSCB for the 9 months ended September 30, 2025, have been 4% decrease than the identical interval of the prior 12 months.

Outlook

In 2025, commodity costs confronted downward stress on account of commerce tensions ensuing from US tariffs on imports and retaliatory measures from a number of international locations.  These actions contributed to a broader world commerce battle, heightening uncertainty within the world financial system.  Ongoing geopolitical battle in Japanese Europe and the Center East, mixed with persistently weak world demand for crude oil, additional impacted market sentiment.  These macroeconomic components are anticipated to influence commodity costs by means of the rest of 2025.  Moreover, in Canada, modifications in authorities priorities arising from the change in management of the federal authorities that occurred in 2025 could result in persevering with shifts in vitality coverage, doubtlessly affecting the approval of future vitality infrastructure initiatives.  This contributes to extra uncertainty for the Canadian vitality companies trade.  The exact period and extent of the antagonistic impacts of the present macroeconomic atmosphere on Western’s clients and operations stays unsure presently. 

Regardless of these headwinds, current infrastructure developments current alternatives for the vitality companies trade. The Trans Mountain pipeline enlargement commenced operations on Could 1, 2024, offering important takeaway capability.  Moreover, the Coastal GasLink pipeline delivered its first cargo of liquefied pure gasoline on June 30, 2025, and the LNG Canada venture has begun operations in British Columbia.  These initiatives are anticipated to help elevated exercise in Western Canada’s vitality sector.  Western can also be cautiously optimistic that the present commerce atmosphere could immediate renewed focus amongst Canadian provinces on strengthening home vitality independence, which can assist speed up extra venture approvals.

To navigate this advanced atmosphere, Western has applied a number of strategic initiatives in 2025, together with a reorganization of senior management to reinforce operational effectivity and help long-term progress.  As a part of this course of, the choice was made to concentrate on US operations completely in North Dakota and redeploy property beforehand working in Texas.  The Firm stays targeted on managing mounted prices, preserving stability sheet power, deleveraging the enterprise, and sustaining flexibility to answer market situations.  With these initiatives in place, Western believes it’s well-positioned to learn from bettering service demand and pricing momentum.  Western’s upgraded rig fleet positions the Firm to stay aggressive in a tightening market.  The entire rig fleet within the WCSB has decreased from 385 drilling rigs at September 30, 2024 to 373 drilling rigs as of October 21, 2025, representing a lower of 12 drilling rigs, or 3%, which reduces the availability of drilling rigs for such initiatives.  At present, 19 of Western’s drilling rigs and 13 of Western’s properly servicing rigs are working.

As disclosed beforehand, Western’s board of administrators accepted a capital price range for 2025 of $20 million.  The 2025 price range included roughly $3 million of dedicated expenditures from 2024 to be carried ahead into 2025.  Western will proceed to handle its prices in a disciplined method and make required changes to its capital program as buyer demand modifications. 

Within the close to time period, the first challenges dealing with the vitality companies trade embody commodity value volatility, the influence of trade consolidation on Western’s exploration and manufacturing clients and potential clients, and constrained buyer drilling exercise, as exploration and manufacturing corporations proceed to prioritize shareholder returns by means of share repurchases, elevated dividends, and debt discount quite than manufacturing progress.  Ought to commodity costs stabilize over a sustained interval, and as clients additional strengthen their stability sheets, a rise in drilling exercise could comply with.  Over the medium time period, Western believes its rig fleet is properly positioned to learn from elevated drilling and manufacturing exercise related to the completion of the LNG Canada venture and the Trans Mountain pipeline enlargement.  As well as, elevated concentrate on home vitality safety and financial independence could help additional growth exercise throughout the sector.

Non-IFRS Measures and Ratios

Western makes use of sure monetary measures on this press launch which do not need any standardized that means as prescribed by Worldwide Monetary Reporting Requirements (“Non-IFRS”).  These measures and ratios, that are derived from data reported within the condensed consolidated monetary statements, is probably not similar to related measures offered by different reporting issuers.  These measures and ratios have been described and offered on this press launch to offer shareholders and potential traders with extra data concerning the Firm.  The Non-IFRS measures and ratios used on this press launch are recognized and outlined as follows:

Adjusted EBITDA and Adjusted EBITDA as a Proportion of Income

Adjusted earnings earlier than curiosity and finance prices, taxes, depreciation and amortization, different non-cash gadgets and one-time good points and losses (“Adjusted EBITDA”) is a helpful Non-IFRS monetary measure as it’s utilized by administration and different stakeholders, together with present and potential traders, to investigate the Firm’s principal enterprise actions previous to consideration of how Western’s actions are financed and the influence of overseas trade, earnings taxes and depreciation.  Adjusted EBITDA supplies a sign of the outcomes generated by the Firm’s principal working segments, which assists administration in monitoring present and forecasting future operations, as sure non-core gadgets resembling curiosity and finance prices, taxes, depreciation and amortization, and different non-cash gadgets and one-time good points and losses are eliminated.  The closest IFRS measure can be internet earnings (loss) for consolidated outcomes.

Adjusted EBITDA as a share of income is a Non-IFRS monetary ratio which is calculated by dividing Adjusted EBITDA by income for the related interval.  Adjusted EBITDA as a share of income is a helpful monetary measure as it’s utilized by administration and different stakeholders, together with present and potential traders, to investigate the profitability of the Firm’s principal working segments.

The next desk supplies a reconciliation of internet loss, as disclosed within the condensed consolidated statements of operations and complete loss, to Adjusted EBITDA:

Income per Working Day

This Non-IFRS measure is calculated as drilling income for each Canada and the US respectively, divided by Working Days in Canada and the US respectively. This calculation represents the typical day charge by nation, charged to Western’s clients.

Income per Service Hour

This Non-IFRS measure is calculated as properly servicing income divided by Service Hours.  This calculation represents the typical hourly charge charged to Western’s clients.

Outlined Phrases

Drilling rig utilization:  Calculated primarily based on Working Days divided by complete accessible days.

Working Days:  Outlined as contract drilling days, calculated on a spud to rig launch foundation.

Service Hours:  Outlined as properly servicing hours accomplished.

Service rig utilization:  Calculated as complete Service Hours divided by 217 hours monthly per rig multiplied by the typical rig depend for the interval as outlined by the CAOEC trade normal.

Working capital: Calculated as present property much less present liabilities as disclosed within the Firm’s consolidated monetary statements.

Contract Drilling Rig Classifications

Cardium class rig: Outlined as any contract drilling rig which has a complete hookload lower than or equal to 399,999 lbs (or 177,999 daN). 

Montney class rig: Outlined as any contract drilling rig which has a complete hookload between 400,000 lbs (or 178,000 daN) and 499,999 lbs (or 221,999 daN).

Duvernay class rig: Outlined as any contract drilling rig which has a complete hookload equal to or better than 500,000 lbs (or 222,000 daN).

Abbreviations

• Barrel (“bbl”);
• Canadian Affiliation of Vitality Contractors (“CAOEC”);
• DecaNewton (“daN”);
• Worldwide Monetary Reporting Requirements (“IFRS”);
• Kilos (“lbs”);
• Thousand cubic toes (“mcf”);
• Western Canadian Sedimentary Basin (“WCSB”); and
• West Texas Intermediate (“WTI”).

Ahead-Trying Statements and Info

This press launch comprises sure forward-looking statements and forward-looking data (collectively, “forward-looking data”) inside the that means of relevant Canadian securities legal guidelines, in addition to different data primarily based on Western’s present expectations, estimates, projections and assumptions primarily based on data accessible as of the date hereof.  All data and statements contained herein that aren’t clearly historic in nature represent forward-looking data, and phrases and phrases resembling “could”, “will”, “ought to”, “might”, “anticipate”, “intend”, “anticipate”, “consider”, “estimate”, “plan”, “predict”, “potential”, “proceed”, or the adverse of those phrases or different comparable terminology are typically meant to establish forward-looking data.  Such data represents the Firm’s inside projections, estimates or beliefs regarding, amongst different issues, an outlook on the estimated quantities and timing of additives to property and gear, anticipated future debt ranges and revenues or different expectations, beliefs, plans, aims, assumptions, intentions or statements about future occasions or efficiency.  This forward-looking data includes recognized and unknown dangers, uncertainties and different components that will trigger precise outcomes or occasions to vary materially from these anticipated in such forward-looking data.

Specifically, forward-looking data on this press launch consists of, however just isn’t restricted to, statements regarding: the enterprise of Western; trade, market and financial situations and any anticipated results on Western and its clients; commodity pricing; the longer term demand for the Firm’s companies and gear; the impact of inflation and commodity costs on vitality service exercise; expectations with respect to buyer spending; the influence of Western’s upgraded drilling rigs; the potential continued influence of the present conflicts in Japanese Europe and the Center East on and different macroeconomic components on commodity costs; the Firm’s capital price range for 2025, together with the allocation of such price range; Western’s plans for managing its capital program; the vitality service trade and world financial exercise; the anticipated influence of trade consolidation on Western’s clients and potential clients; expectations of elevated trade exercise with respect to the Trans Mountain pipeline venture, the Coastal GasLink pipeline venture and the LNG Canada venture; the influence of the US tariffs on the method of Canadian governments in direction of approval of Canadian vitality initiatives and a concentrate on home vitality independence; the impact of continued modifications in Canadian authorities insurance policies arising from current modifications in authorities management; the Firm’s capacity to learn from bettering service demand and pricing momentum; the Firm’s capacity to proceed to concentrate on deleveraging the enterprise; expectations surrounding the extent of funding in Canada and its influence on the Firm; challenges dealing with the vitality service trade; the Firm’s concentrate on debt discount; and the Firm’s capacity to keep up a aggressive benefit, together with the components and practices anticipated to provide and maintain such benefit.

The fabric assumptions that might trigger outcomes or occasions to vary from present expectations mirrored within the forward-looking data on this press launch embody, however should not restricted to: demand ranges and pricing for oilfield companies; demand for crude oil and pure gasoline and the worth and volatility of crude oil and pure gasoline; pressures on commodity pricing; the influence of inflation; the continued enterprise relationships between the Firm and its vital clients; crude oil transport, pipeline and LNG export facility approval and growth; that every one required regulatory and environmental approvals will be obtained on the required phrases and in a well timed method, as required by the Firm; liquidity and the Firm’s capacity to finance its operations; the effectiveness of the Firm’s value construction and capital price range; the results of seasonal and climate situations on operations and amenities; the aggressive atmosphere to which the Firm’s enterprise segments are, or could also be, uncovered in all elements of their enterprise and the Firm’s aggressive place therein; the flexibility of the Firm’s enterprise segments to entry gear; world financial situations and the accuracy of the Firm’s market outlook expectations for 2025 and sooner or later; the influence, direct and oblique, of epidemics, pandemics, different public well being disaster and geopolitical occasions, together with the conflicts in Japanese Europe and the Center East and the import tariffs applied by the US administration on Western’s enterprise, clients, enterprise companions, workers, provide chain, different stakeholders and the general financial system; modifications in legal guidelines, laws or insurance policies; forex trade fluctuations; the flexibility of the Firm to draw and retain expert labour and certified administration; the flexibility to retain and entice vital clients; the flexibility to keep up a passable security file; that any required industrial agreements will be reached; that there are not any unexpected occasions stopping the efficiency of contracts and common enterprise, financial and market situations.

Though Western believes that the expectations and assumptions on which such forward-looking data is predicated on are cheap, undue reliance shouldn’t be positioned on the forward-looking data as Western can not give any assurance that such will show to be appropriate.  By its nature, forward-looking data is topic to inherent dangers and uncertainties.  Precise outcomes might differ materially from these at present anticipated on account of quite a few components and dangers.  These embody, however should not restricted to, volatility in market costs for crude oil and pure gasoline and the impact of this volatility on the demand for oilfield companies typically; decreased exploration and growth actions by clients and the impact of such decreased actions on Western’s companies and merchandise; political, trade, market, financial, and environmental situations in Canada, the US and globally; provide and demand for oilfield companies regarding contract drilling, properly servicing and oilfield rental gear companies; the proximity, capability and accessibility of crude oil and pure gasoline pipelines and processing amenities; liabilities and dangers inherent in oil and pure gasoline operations, together with environmental liabilities and dangers; modifications to legal guidelines, laws and insurance policies; the continued geopolitical occasions in Japanese Europe and the Center East and the period and influence thereof; fluctuations in overseas trade, inflation or rates of interest; failure of counterparties to carry out or adjust to their obligations underneath contracts; regional competitors and the rise in new or upgraded rigs; the Firm’s capacity to draw and retain expert labour; Western’s capacity to acquire debt or fairness financing and to fund capital working and different expenditures and obligations; the potential have to subject extra debt or fairness and the potential ensuing dilution of shareholders; uncertainties in climate and temperature affecting the period of the service intervals and the actions that may be accomplished; the Firm’s capacity to adjust to the covenants underneath its debt amenities, together with the Second Lien Facility, and the restrictions on its operations and actions if it isn’t compliant with such covenants; Western’s capacity to guard itself from “cyber-attacks” which might compromise its data techniques and important infrastructure; disruptions to world provide chains; and different common trade, financial, market and enterprise situations.  Readers are cautioned that the foregoing checklist of dangers, uncertainties and assumptions should not exhaustive.  Extra data on these and different danger components that might have an effect on Western’s operations and monetary outcomes are mentioned underneath the headings “Threat Components” in Western’s annual data type for the 12 months ended December 31, 2024, which is on the market underneath the Firm’s SEDAR+ profile at www.sedarplus.ca.

The forward-looking statements and data contained on this press launch are made as of the date hereof and Western doesn’t undertake any obligation to replace publicly or revise any forward-looking statements and data, whether or not because of new data, future occasions or in any other case, until so required by relevant securities legal guidelines.  Any forward-looking statements contained herein are expressly certified by this cautionary assertion.

SOURCE Western Vitality Providers Corp.