Q4 2025 Ensign Energy Services Inc Earnings Call

March 6, 2026

Speaker #1: Good afternoon , ladies and gentlemen , and welcome to the Ensign Energy Services, Inc. incorporated . Fourth quarter , 2020 results conference call .

Speaker #1: At this time , all lines are in a listen only mode . Following the presentation , we will conduct a question and answer session .

Speaker #1: If at any time during this call , you require immediate assistance , please press star zero . For the operator . This call is being recorded today , Friday , March 6th , 2026 .

Speaker #1: I would now like to turn the conference over to Mike Gray, Chief Financial Officer. Please go ahead, sir.

Speaker #2: Thank you . Good morning , and welcome to Ensign Energy Services, Inc. fourth quarter conference call and webcast . On a call today , Bob Gaddis , president and CEO .

Michael Gray: Thank you. Good morning and welcome to Ensign Energy Services Q4 Conference Call and Webcast. On our call today, Bob Geddes, President and COO, and myself, Mike Gray, Chief Financial Officer, will review Ensign's Q4 highlights, its financial results, followed by operational update, and outlook. We'll open the call for questions after that. Our discussions today may include forward-looking statements based upon current expectations that involve several business risks and uncertainties. The factors that could cause results to differ materially include but are not limited to political, economic, and market conditions, crude oil and natural gas prices, foreign currency fluctuations, weather conditions, the company's defensive lawsuits, the ability of oil and gas companies to pay accounts receivable balances, or other unforeseen conditions which could impact the demand for services supplied by the company. Additionally, our discussion today may refer to non-GAAP financial measures such as adjusted EBITDA.

Mike Gray: Thank you. Good morning and welcome to Ensign Energy Services Q4 Conference Call and Webcast. On our call today, Bob Geddes, President and COO, and myself, Mike Gray, Chief Financial Officer, will review Ensign's Q4 highlights, its financial results, followed by operational update, and outlook. We'll open the call for questions after that. Our discussions today may include forward-looking statements based upon current expectations that involve several business risks and uncertainties. The factors that could cause results to differ materially include but are not limited to political, economic, and market conditions, crude oil and natural gas prices, foreign currency fluctuations, weather conditions, the company's defensive lawsuits, the ability of oil and gas companies to pay accounts receivable balances, or other unforeseen conditions which could impact the demand for services supplied by the company. Additionally, our discussion today may refer to non-GAAP financial measures such as adjusted EBITDA.

Speaker #2: Myself, Mike Gray, Chief Financial Officer, will review Ensign’s fourth quarter highlights and financial results, followed by an operational update and outlook.

Speaker #2: We'll open the call for questions after that . Our discussions today may include forward looking statements based upon current expectations that involve several business risks and uncertainties The factors that could cause results to differ materially include , but are not limited to , political , economic and market conditions .

Speaker #2: Crude oil and natural gas prices, foreign currency fluctuations, and weather conditions, as well as the company's defensive lawsuits, can impact our results. The ability of oil and gas companies to pay accounts receivable balances, or other unforeseen conditions, could impact the demand for services supplied by the company. Additionally, our discussion today may refer to non-GAAP financial measures, such as adjusted EBITDA.

Speaker #2: Please see our fourth quarter earnings release and filing for more information on forward-looking statements and the company's use of non-GAAP financial measures.

Michael Gray: Please see our Q4 earnings release and SEDAR+ filing for more information on forward-looking statements and the company's use of non-GAAP financial measures. On that, I will pass the call back to Bob.

Mike Gray: Please see our Q4 earnings release and SEDAR+ filing for more information on forward-looking statements and the company's use of non-GAAP financial measures. On that, I will pass the call back to Bob.

Speaker #2: On that, I will pass the call back to Bob. Thanks, Mike.

Robert Geddes: Thanks, Mike. Good morning or afternoon, everyone, wherever you're at. Some introductory comments. The Q4 2025 provides a great deal to discuss, both in terms of reflecting on the full year's performance and looking ahead to the opportunities and challenges that lie in front of us. The Ensign team completed the 2025 year with results that exceeded analyst estimates, both for the quarter and the full year. Most importantly, we're able to clip off an additional CAD 80 million of debt in 2025. The Canadian business unit led the way with year-over-year EBITDA gains while the US battled great headwinds. In 2025, the team was successful in getting operators to fund roughly half of the CAD 48 million in upgrades executed in 2025. These rigs are all tied up now in long-term contracts.

Bob Geddes: Thanks, Mike. Good morning or afternoon, everyone, wherever you're at. Some introductory comments. The Q4 2025 provides a great deal to discuss, both in terms of reflecting on the full year's performance and looking ahead to the opportunities and challenges that lie in front of us. The Ensign team completed the 2025 year with results that exceeded analyst estimates, both for the quarter and the full year. Most importantly, we're able to clip off an additional CAD 80 million of debt in 2025. The Canadian business unit led the way with year-over-year EBITDA gains while the US battled great headwinds. In 2025, the team was successful in getting operators to fund roughly half of the CAD 48 million in upgrades executed in 2025. These rigs are all tied up now in long-term contracts.

Speaker #3: Good morning or afternoon , everyone . Wherever you're at . Some introductory comments . The fourth quarter of 2025 provides a great deal to discuss , both in terms of reflecting on the full year performance and looking ahead to the opportunities and challenges that lie in front of us .

Speaker #3: The Ensign team completed the 2025 year with results that exceeded analyst estimates, both for the quarter and the full year, and most importantly, were able to clip off an additional $80 million of debt in 2025.

Speaker #3: The Canadian business unit led the way with year over year EBITDA gains , while the US battled great headwinds in 2025 . The team was successful in getting operators to fund roughly half of the $48 million in upgrades executed in 2025 .

Speaker #3: These rigs are all tied up now in long term contracts . The team ended the year expanding our forward long time contract book to $1.2 billion of forward contract coverage , with 60% of the fleet contracted forward .

Robert Geddes: The team ended the year expanding our forward long-time contract book to CAD 1.2 billion of forward contract coverage, with 60% of the fleet contracted forward. Our international business unit, which operates in Venezuela, Argentina, Australia, Oman, Bahrain, and Kuwait, had a share of ups and downs, which I will expand on later. For a deeper dive into Q4 and full year 2025, I'll turn it over back to Mike. Mike?

Bob Geddes: The team ended the year expanding our forward long-time contract book to CAD 1.2 billion of forward contract coverage, with 60% of the fleet contracted forward. Our international business unit, which operates in Venezuela, Argentina, Australia, Oman, Bahrain, and Kuwait, had a share of ups and downs, which I will expand on later. For a deeper dive into Q4 and full year 2025, I'll turn it over back to Mike. Mike?

Speaker #3: Our international business unit , which operates in Venezuela , Argentina , Australia , Oman , Bahrain and Kuwait , had a share of ups and downs , which I will expand on later .

Speaker #3: For a deeper dive into the fourth quarter and full year '25, I'll turn it over back to Mike. Mike?

Michael Gray: Thanks, Bob. Ensign's results for the Q4 and 2025 year-end reflects the benefits of our diversified operational geographic footprint. With the recent volatility in commodity prices and the outlook is constructive. The operating environment for the oil and natural gas industry continues to support relatively steady demand for oilfield services. Total operating days were up in the Q4 of 2025 by 1%. The US operations saw an increase of 14%, while the Canadian and international operations reported a decrease of 8%, each one compared to the Q4 of 2024. For the year ended 31 December 2025, total operating days were down by 3%.

Mike Gray: Thanks, Bob. Ensign's results for the Q4 and 2025 year-end reflects the benefits of our diversified operational geographic footprint. With the recent volatility in commodity prices and the outlook is constructive. The operating environment for the oil and natural gas industry continues to support relatively steady demand for oilfield services. Total operating days were up in the Q4 of 2025 by 1%. The US operations saw an increase of 14%, while the Canadian and international operations reported a decrease of 8%, each one compared to the Q4 of 2024. For the year ended 31 December 2025, total operating days were down by 3%.

Speaker #2: Thanks. Bob Benson's results for the fourth quarter in 2025: year-end reflects the benefits of our diversified operational geographic footprint. With the recent volatility in commodity prices and the outlook, the outlook is constructive, and the operating environment for the oil and natural gas industry continues to support relatively steady demand for oilfield services. Total operating days were up in the fourth quarter of 2025 by 1%.

Speaker #2: The United States operations saw an increase of 14%, while the Canadian and international operations reported a decrease of 8%, each one compared to the fourth quarter of 2024.

Speaker #2: For the year ended December 31st , 2025 , total operating days were down by 3% . The United States operations saw an increase of 2% , while the Canadian and international operations saw a decrease of 3% and 15% , respectively , compared with the year ended December 31st , 2024 .

Michael Gray: The United States operations saw an increase of 2%, while the Canadian and international operations saw a decrease of 3% and 15%, respectively, compared with the year ended 31 December 2024. The company generated revenue of CAD 418.8 million in Q4 2025, a 2% decrease compared with revenue of CAD 426.5 million generated in Q4 of the prior year. For the year ended 31 December 2025, the company generated revenue of CAD 1.64 billion, a 3% decrease compared with revenue of CAD 1.68 billion generated in the prior year.

Mike Gray: The United States operations saw an increase of 2%, while the Canadian and international operations saw a decrease of 3% and 15%, respectively, compared with the year ended 31 December 2024. The company generated revenue of CAD 418.8 million in Q4 2025, a 2% decrease compared with revenue of CAD 426.5 million generated in Q4 of the prior year. For the year ended 31 December 2025, the company generated revenue of CAD 1.64 billion, a 3% decrease compared with revenue of CAD 1.68 billion generated in the prior year.

Speaker #2: The company generated revenue of $418.8 million in the fourth quarter of 2025, a 2% decrease compared with revenue of $426.5 million generated in the fourth quarter of the prior year.

Speaker #2: For the year ended December 31, 2025, the company generated revenue of $1.64 billion, a 3% decrease compared with revenue of $1.68 billion generated in the prior year.

Michael Gray: Adjusted EBITDA for Q4 2025 was CAD 107.5 million, lower by 5% than adjusted EBITDA of CAD 113.4 million in Q4 2024. Adjusted EBITDA for the year ended 31 December 2025 was CAD 389.8 million, a 13% decrease compared to adjusted EBITDA of CAD 450.1 million generated in the year ended 31 December 2024. The 2025 decrease in adjusted EBITDA is due to the decrease year-over-year activity caused by customer consolidation, economic uncertainty, and volatile commodity prices. Depreciation expense for the year decreased by 3% to CAD 345.4 million, compared to CAD 355.8 million for the year ended 2024.

Mike Gray: Adjusted EBITDA for Q4 2025 was CAD 107.5 million, lower by 5% than adjusted EBITDA of CAD 113.4 million in Q4 2024. Adjusted EBITDA for the year ended 31 December 2025 was CAD 389.8 million, a 13% decrease compared to adjusted EBITDA of CAD 450.1 million generated in the year ended 31 December 2024. The 2025 decrease in adjusted EBITDA is due to the decrease year-over-year activity caused by customer consolidation, economic uncertainty, and volatile commodity prices. Depreciation expense for the year decreased by 3% to CAD 345.4 million, compared to CAD 355.8 million for the year ended 2024.

Speaker #2: Adjusted EBITDA for the fourth quarter of 2025 was $107.5 million, lower by 5% than adjusted EBITDA of $113.4 million in the fourth quarter of 2024.

Speaker #2: Adjusted EBITDA for the year ended December 31, 2025, was $389.8 million, a 13% decrease compared to adjusted EBITDA of $450.1 million generated in the year ended December 31, 2020.

Speaker #2: The 2025 decrease in adjusted EBITDA is due to the decrease in year-over-year activity caused by customer consolidation, economic uncertainty, and volatile commodity prices.

Speaker #2: Appreciation expense for the year decreased by 3% to 345.4 million , compared to 355.8 million for the year ended 2024 . Interest expense decreased by 23% for the year ended December 31st , 2025 , compared with the same period in 2024 .

Michael Gray: Interest expense decreased by 23% for the year ended 31 December 2025, compared with the same period in 2024. The decrease in expense compared to the prior period is the result of lower debt levels and reduced effective interest rates. Offsetting the decrease is the negative exchange translation on US denominated debt. G&A expense for Q4 of 2025 was $14.5 million, compared with $13.1 million in Q4 of 2024. G&A expense totaled $55.5 million for the year ending 31 December 2025, compared with $57.4 million for the same period in 2024. The G&A expense decreased for the year due to non-recurring expenses incurred in the prior year. Offsetting the decrease is the annual wage increases and the negative 2% translation effect on converting US denominated expenses.

Mike Gray: Interest expense decreased by 23% for the year ended 31 December 2025, compared with the same period in 2024. The decrease in expense compared to the prior period is the result of lower debt levels and reduced effective interest rates. Offsetting the decrease is the negative exchange translation on US denominated debt. G&A expense for Q4 of 2025 was $14.5 million, compared with $13.1 million in Q4 of 2024. G&A expense totaled $55.5 million for the year ending 31 December 2025, compared with $57.4 million for the same period in 2024. The G&A expense decreased for the year due to non-recurring expenses incurred in the prior year. Offsetting the decrease is the annual wage increases and the negative 2% translation effect on converting US denominated expenses.

Speaker #2: The decrease in expense compared to the prior period is the result of lower debt levels and reduced effective interest rates, offsetting the decrease of the negative exchange translation on US denominated debt. Expense for the fourth quarter of 2025 was $14.5 million, compared with $13.1 million in the fourth quarter of 2024.

Speaker #2: G&A expenses totaled $55.5 million for the year ending December 31, 2025, compared with $57.4 million for the same period in 2020.

Speaker #2: The G&A expense decrease for the year is due to non-recurring expenses incurred in the prior year. Offsetting the decrease are the annual wage increases and the negative 2% translation effect on converting U.S. denominated expenses.

Michael Gray: Net capital expenditures for Q4 2025 totaled CAD 35.3 million, compared to net capital expenditures of CAD 22.3 million in the corresponding period of 2024. Net capital expenditures for the calendar year 2025 totaled CAD 183.7 million, consisting of CAD 48.1 million in upgrade capital, CAD 146.3 million in maintenance capital, offset by proceeds of CAD 10.6 million for equipment disposals. The company has budgeted maintenance capital expenditures for 2026 of approximately CAD 161.4 million and CAD 32.8 million of selective upgrade capital, of which CAD 24 million is customer funded. Debt repayments against debt totaled CAD 80.3 million for the year, but we saw a total net decrease by CAD 105 million due to foreign exchange as well as debt repayments.

Mike Gray: Net capital expenditures for Q4 2025 totaled CAD 35.3 million, compared to net capital expenditures of CAD 22.3 million in the corresponding period of 2024. Net capital expenditures for the calendar year 2025 totaled CAD 183.7 million, consisting of CAD 48.1 million in upgrade capital, CAD 146.3 million in maintenance capital, offset by proceeds of CAD 10.6 million for equipment disposals. The company has budgeted maintenance capital expenditures for 2026 of approximately CAD 161.4 million and CAD 32.8 million of selective upgrade capital, of which CAD 24 million is customer funded. Debt repayments against debt totaled CAD 80.3 million for the year, but we saw a total net decrease by CAD 105 million due to foreign exchange as well as debt repayments.

Speaker #2: Net capital expenditures for the fourth quarter of 2025 totaled $35.3 million, compared to net capital expenditures of $22.3 million in the corresponding period of 2020.

Speaker #2: For debt capital, expenditures for the calendar year 2025 totaled $183.7 million, consisting of $48.1 million in upgrade capital and $146.3 million in maintenance capital, offset by proceeds of $10.6 million for equipment disposals.

Speaker #2: The company has budgeted maintenance capital expenditures for 2026 of approximately $161.4 million, and $32.8 million of selective upgrade capital, of which $24 million is customer funded.

Speaker #2: Debt repayments against debt totaled $80.3 million for the year. While we saw total net decrease by $105 million due to foreign exchange, as well as debt repayments.

Michael Gray: With the reductions in adjusted EBITDA, the stated debt reduction target of CAD 600 million will now likely be achieved in the first half of 2026. The revision is the result of the current industry conditions and the reinvestment of capital expenditures. If the industry conditions change, this target could be increased or decreased. On that note, I will pass the call back to Bob.

Mike Gray: With the reductions in adjusted EBITDA, the stated debt reduction target of CAD 600 million will now likely be achieved in the first half of 2026. The revision is the result of the current industry conditions and the reinvestment of capital expenditures. If the industry conditions change, this target could be increased or decreased. On that note, I will pass the call back to Bob.

Speaker #2: With the reductions in adjusted EBITDA, the stated debt reduction target of $600 million will now likely be achieved in the first half of 2026.

Speaker #2: The revision is the result of the current industry conditions and the reinvestment of capital expenditures. If the industry conditions change, this target could be increased or decreased.

Speaker #2: On that note, I will pass the call back to Bob.

Robert Geddes: Thanks, Mike. Let's start with a quick reflection by region for 2025. The Q4 was quite active for us right across all our world as we methodically grew rig count in the high-spec triples and high-spec single rig type categories in North America. Each area had differing market dynamics at play. In Canada, we were off 3% on activity year-over-year whilst being up year-over-year on EBITDA. This is a result of our Canadian business unit continuing to focus on delivering high-spec rigs with high-performance crews. In fact, one of our new ADR HSS set a record drilling 2,500 meters in a 24-hour period. In the US, market forces were much tougher, keeping rigs active meant spot pricing was falling.

Bob Geddes: Thanks, Mike. Let's start with a quick reflection by region for 2025. The Q4 was quite active for us right across all our world as we methodically grew rig count in the high-spec triples and high-spec single rig type categories in North America. Each area had differing market dynamics at play. In Canada, we were off 3% on activity year-over-year whilst being up year-over-year on EBITDA. This is a result of our Canadian business unit continuing to focus on delivering high-spec rigs with high-performance crews. In fact, one of our new ADR HSS set a record drilling 2,500 meters in a 24-hour period. In the US, market forces were much tougher, keeping rigs active meant spot pricing was falling.

Speaker #3: Thanks , Mike . Let's start with a quick reflection by region for 2025 . The fourth quarter was quite active for us right across all our world as we methodically grew rig count in the high spec triples and high spec single rig type categories in North America .

Speaker #3: Each area had differing market dynamics . Excuse me , each area had differing market dynamics at play . In Canada , we were all 3% on activity year over year whilst being up year over year on EBITDA .

Speaker #3: This is a result of our Canadian business unit continuing to focus on delivering high spec rigs with high performance crews . In fact , one of our new ADR has set a record drilling 2500m in a 24 hour period in the US .

Speaker #3: The market forces were much tougher, and keeping rigs active meant spot pricing was falling. Rigs that have consistent work remained active and with little rate degradation.

Robert Geddes: Rigs that have consistent work remained active and with little rate degradation. Once again, the US operations team outperformed our peer group and placed 10 Ensign rigs in the top 20 across the entire US for outstanding performance metrics. Our international business unit was relatively calm through 2025. Then that changed quickly at the beginning of the year. More on that in a moment. Current operational updates starting with Canada. Whilst industry was down 10% year-over-year in Q1 of 2026, we peaked at 21, peaked at 51 and enjoy 43 drilling rigs active today in Canada.

Bob Geddes: Rigs that have consistent work remained active and with little rate degradation. Once again, the US operations team outperformed our peer group and placed 10 Ensign rigs in the top 20 across the entire US for outstanding performance metrics. Our international business unit was relatively calm through 2025. Then that changed quickly at the beginning of the year. More on that in a moment. Current operational updates starting with Canada. Whilst industry was down 10% year-over-year in Q1 of 2026, we peaked at 21, peaked at 51 and enjoy 43 drilling rigs active today in Canada.

Speaker #3: Once again, the US operations team outperformed their peer group and placed ten Ensign rigs in the top 20 across the entire U.S. for outstanding performance metrics.

Speaker #3: Our international business unit was relatively calm through 2025, and then that changed quickly at the beginning of the year. More on that in a moment.

Speaker #3: Current operational updates , starting with Canada , while industry was down 10% year over year in the first quarter , 26 , we peaked at 21 , peaked at 51 , and enjoy 43 drilling rigs active today in Canada .

Robert Geddes: As we head into breakup, we expect around 20 or so rigs over breakup, similar to the prior year. We are currently upgrading one of the high-spec singles we recently brought up from California and expect to have it contracted long term for rates in the mid-20s all in. That rig should be spudding its first well by the summer. The value proposition is still valid for the client as we continue to perform by improving drilling efficiency, offsetting any rate increases. Also, because our rig equipment is being run closer to its technical limits more and more, rate increases are quite justified to offset the higher operating costs. We see strong support for the high-spec triples in Canada, and they operate in the low 30s all in. We continue to see the Canadian market adapt our Edge drilling rig automation more and more every quarter.

Bob Geddes: As we head into breakup, we expect around 20 or so rigs over breakup, similar to the prior year. We are currently upgrading one of the high-spec singles we recently brought up from California and expect to have it contracted long term for rates in the mid-20s all in. That rig should be spudding its first well by the summer. The value proposition is still valid for the client as we continue to perform by improving drilling efficiency, offsetting any rate increases. Also, because our rig equipment is being run closer to its technical limits more and more, rate increases are quite justified to offset the higher operating costs. We see strong support for the high-spec triples in Canada, and they operate in the low 30s all in. We continue to see the Canadian market adapt our Edge drilling rig automation more and more every quarter.

Speaker #3: As we head into breakup , we expect around 20 or so rigs over breakup similar to the prior year , we are currently upgrading one of the high spec singles we recently brought up from California and expect to have it contracted long term for rates in the mid 20s , all in that rig should be spending its first well by the summer .

Speaker #3: The value proposition is still valid for the client as we continue to perform by improving drilling efficiency , offsetting any rate increases . Also , because of equipment is being run closer to its technical limits , more and more rate increases are quite justified to offset the higher operating costs .

Speaker #3: We see strong support for the high spec triples in Canada , and they operate in the low 30s , all in , we continue to see the Canadian market adapt our edge drilling rig automation more and more every quarter .

Robert Geddes: This provides a high margin bolt-on incremental revenue stream of anywhere from $1,000 to $2,600 a day across the high-spec triples generally, and now we are deploying onto our high-spec singles. We continue to address any upgrades that operators request by assisting the capital upgrade be paid for by the operator with a notional rate increase, or we adjust the day rate incrementally in order to achieve a 1-year payout or less on the incremental capital with the incremental rate increase. In the US, we mentioned in our last quarterly call, our rigs continue to drill more footage per day, albeit we are finding that the double-digit rig efficiency gains of years past have slowed into the single digits as we get closer to the technical limits of the rig equipment. This is good news and an indication that we're at or near a trough.

Bob Geddes: This provides a high margin bolt-on incremental revenue stream of anywhere from $1,000 to $2,600 a day across the high-spec triples generally, and now we are deploying onto our high-spec singles. We continue to address any upgrades that operators request by assisting the capital upgrade be paid for by the operator with a notional rate increase, or we adjust the day rate incrementally in order to achieve a 1-year payout or less on the incremental capital with the incremental rate increase. In the US, we mentioned in our last quarterly call, our rigs continue to drill more footage per day, albeit we are finding that the double-digit rig efficiency gains of years past have slowed into the single digits as we get closer to the technical limits of the rig equipment. This is good news and an indication that we're at or near a trough.

Speaker #3: This provides a high margin bolt on incremental revenue stream of anywhere from 1000 to $2600 a day across the high spec triples , generally , and now we are deploying onto our high spec singles .

Speaker #3: We continue to address any upgrades that operators request by insisting the capital upgrade be paid for by the operator, with a notional rate increase, or we adjust the day rate incrementally in order to achieve a one-year payout or less on the incremental capital.

Speaker #3: With the incremental rate increase in the US, which we mentioned in our last quarterly call, our rigs continue to drill more footage per day. Albeit, we are finding that the double-digit rig efficiency gains of years past have slowed into the single digits.

Speaker #3: As we get closer to the technical limits of the rig equipment, this is good news and an indication that we're at or near a trough.

Robert Geddes: Operators now focus on continue duplication of their best wells. Again, we mentioned on our last call, our position hasn't changed. Most operators are starting to look at tier two acreage as we move along into the future. We also saw the US hit record oil production close to 14 million barrels per day. With the technical limits of rigs establishing somewhat of a ceiling and with tier one acreage diminishing, we will need to see rig count move up if we're to hang on to 14 million barrels of oil production. Current oil prices certainly help this construct. In the US today, we have 38 high-spec Ensign rigs, mostly high-spec triples, out of our fleet of 70 high-spec ADRs operating across the US, from California to the Rockies and down into the Permian.

Bob Geddes: Operators now focus on continue duplication of their best wells. Again, we mentioned on our last call, our position hasn't changed. Most operators are starting to look at tier two acreage as we move along into the future. We also saw the US hit record oil production close to 14 million barrels per day. With the technical limits of rigs establishing somewhat of a ceiling and with tier one acreage diminishing, we will need to see rig count move up if we're to hang on to 14 million barrels of oil production. Current oil prices certainly help this construct. In the US today, we have 38 high-spec Ensign rigs, mostly high-spec triples, out of our fleet of 70 high-spec ADRs operating across the US, from California to the Rockies and down into the Permian.

Speaker #3: Operators now focus on continued duplication of their best wells. Again, we mentioned in our last call our position hasn't changed. Most operators are starting to look at tier two acreage as we move along into the future.

Speaker #3: We also saw the U.S. hit record oil production, close to 14 million barrels per day. So, with the technical limits of rigs establishing somewhat of a ceiling, and with tier one acreage diminishing, we will need to see rig count move up.

Speaker #3: If we were to hang on 14 million barrels of oil production Current oil prices certainly helped us construct . So in the US today , we have 38 high spec enzyme rigs , mostly high spec triples out of our fleet of 70 high spec ADR operating across the US and California to the Rockies and down into the Permian .

Robert Geddes: Our busiest operating area is, of course, the Permian, where we run roughly 26 rigs daily and which we own 9% of that market share. We continue to increase our market share in the US as a result of our high-performance rigs and crews in concert with our Edge Drilling Solutions technology. We saw our California business unit almost double its rig count in 2025 from 5 to 8, and we expect that we will stay at that level through 2026. Our directional drilling business unit, which is essentially a mud motor rental business that utilizes proprietary technology, continues to provide some of the best motors with high-quality rebuilds and the longest runs in the Rockies. We're expecting 2026 to be very similar to 2025 there.

Bob Geddes: Our busiest operating area is, of course, the Permian, where we run roughly 26 rigs daily and which we own 9% of that market share. We continue to increase our market share in the US as a result of our high-performance rigs and crews in concert with our Edge Drilling Solutions technology. We saw our California business unit almost double its rig count in 2025 from 5 to 8, and we expect that we will stay at that level through 2026. Our directional drilling business unit, which is essentially a mud motor rental business that utilizes proprietary technology, continues to provide some of the best motors with high-quality rebuilds and the longest runs in the Rockies. We're expecting 2026 to be very similar to 2025 there.

Speaker #3: Our busiest operating area is, of course, the Permian, where we run 26 rigs daily and where we own 9% of that market share.

Speaker #3: We continue to increase our market share in the US. The result of our high-performance rigs and crews, and in concert with our Edge Drilling Solutions technology.

Speaker #3: We saw our California business unit almost double its rig count in 2025, from 5 to 8, and we expect that we will stay at that level through 2026.

Speaker #3: Our directional drilling business unit, which is essentially a mud motor rental business that utilizes proprietary technology, continues to provide some of the best motors with high-quality rebuilds and the longest runs in the Rockies.

Speaker #3: We're expecting at 26 , to be very similar to 25 . There . On the international front , we have a fleet of 25 high spec rigs that operate in six different countries around outside , I'm sorry , outside of North America , of which 13 of those 25 are active today .

Robert Geddes: On the international front, we have a fleet of 25 high-spec rigs that operate in 6 different countries around, outside of North America, of which, 13 of those 25 are active today. At this point in time, our 7 Middle East rigs are still operating under either standby with crews or at full operational rate. This is, of course, a day-to-day situation which may change at any point in time. Area is what we call on yellow alert, with safety of the personnel and security of the assets most important. In Kuwait, we have been successful in contract extensions on both 3,000 horsepower ADRs, taking us out into mid-2026. We started back in Venezuela and now have both rigs operating. The only 2 drilling rigs operating in Venezuela, I will point out.

Bob Geddes: On the international front, we have a fleet of 25 high-spec rigs that operate in 6 different countries around, outside of North America, of which, 13 of those 25 are active today. At this point in time, our 7 Middle East rigs are still operating under either standby with crews or at full operational rate. This is, of course, a day-to-day situation which may change at any point in time. Area is what we call on yellow alert, with safety of the personnel and security of the assets most important. In Kuwait, we have been successful in contract extensions on both 3,000 horsepower ADRs, taking us out into mid-2026. We started back in Venezuela and now have both rigs operating. The only 2 drilling rigs operating in Venezuela, I will point out.

Speaker #3: At this point in time, our seven Middle East rigs are still operating under either standby with crews or on full operational rate.

Speaker #3: This is , of course , a day to day situation , which may change at any point in time . The area is what we call on yellow alert with safety of the personnel and security of the assets .

Speaker #3: Most important in Kuwait , we have been successful in contract extensions on both 3000 horsepower , taking us out into mid 2026 . We started back in Venezuela and now have both rigs operating .

Speaker #3: The only two drilling rigs operating in Venezuela. I will point out, as you know, there is no lack of excitement in Venezuela these days, and we'll see how this area develops.

Robert Geddes: As you know, there is no lack of excitement in Venezuela these days. We'll see how this area develops. In any case, Ensign has a product to fill operators' demands. We have the on-the-ground experience that very few have in the area, thanks to our strong Venezuelan team. In Argentina, we have both our ADR 2,000 horsepower super-spec triples under contract with demand possible for additional rigs in the area. In Oman, the two rigs we have undergoing extensive upgrades are busting on time with the first rig now operational and the second rig planned for April commissioning. This will add to the three ADRs currently under contract in Oman and bring us to five rigs active in the country once the last rig is commissioned.

Bob Geddes: As you know, there is no lack of excitement in Venezuela these days. We'll see how this area develops. In any case, Ensign has a product to fill operators' demands. We have the on-the-ground experience that very few have in the area, thanks to our strong Venezuelan team. In Argentina, we have both our ADR 2,000 horsepower super-spec triples under contract with demand possible for additional rigs in the area. In Oman, the two rigs we have undergoing extensive upgrades are busting on time with the first rig now operational and the second rig planned for April commissioning. This will add to the three ADRs currently under contract in Oman and bring us to five rigs active in the country once the last rig is commissioned.

Speaker #3: At any case , enzyme has a product to fill operators demands , and we have the on the ground experience that very few have in the area .

Speaker #3: Thanks to our strong Venezuelan team in Argentina , we have both our ADR 2000 horsepower , super spec triples under contract with demand possible for additional rigs in the area .

Speaker #3: In Oman, the two rigs we have undergoing extensive upgrades are on budget and on time, with the first rig now operational and the second rig planned for April commissioning.

Speaker #3: This will add to the three currently under contract in Oman and bring us to five rigs active in the country. Once the last rig is commissioned, the current Middle East situation will, of course, create possible delays in the commissioning of this, notwithstanding our general concerns in the Middle East region today.

Robert Geddes: The current Middle East situation will of course create possible delays in the commissioning of this 5th rig in Oman, notwithstanding more general concerns in the Middle East region today. In Australia, we have 4 rigs active, going to 5 by the summer, and with strong bid activity, which we feel will take us to 6 rigs by year-end. Moving to well servicing. Back in North America, we have a fleet of 85 well service rigs in North America, 38 in Canada, of which we operate 15 to 20 on any given day. Plus, we have 47 well service rigs, primarily in the Rockies and California, where we operate with high utilization rates consistently. Our US well servicing business unit, which is again focused primarily on the Rockies and California, has come out of the gate stronger than last year and is expecting a stronger year than 2025.

Bob Geddes: The current Middle East situation will of course create possible delays in the commissioning of this 5th rig in Oman, notwithstanding more general concerns in the Middle East region today. In Australia, we have 4 rigs active, going to 5 by the summer, and with strong bid activity, which we feel will take us to 6 rigs by year-end. Moving to well servicing. Back in North America, we have a fleet of 85 well service rigs in North America, 38 in Canada, of which we operate 15 to 20 on any given day. Plus, we have 47 well service rigs, primarily in the Rockies and California, where we operate with high utilization rates consistently. Our US well servicing business unit, which is again focused primarily on the Rockies and California, has come out of the gate stronger than last year and is expecting a stronger year than 2025.

Speaker #3: Australia, we have four rigs active, going to five by the summer, and with strong bid activity, which we feel will take us to six rigs by year-end.

Speaker #3: Moving to well servicing back in North America, we have a fleet of 85 well service rigs in North America, 38 in Canada, of which we operate 15 to 20 on any given day.

Speaker #3: Plus we have 47 well service rigs , primarily in the Rockies and California , where we operate with high utilization rates consistently by us well servicing business unit , which is , again focused primarily on the Rockies and California , has come out of the gate stronger than last year and is expecting a stronger year than 2025 .

Robert Geddes: Our Canadian business unit focuses primarily on the heavy oil market and has been very steady, with rates increasing basically in line with cost inflation, protecting margins. Moving to the technology side, our EDGE AUTOPILOT drilling rig control system. In 2025, we increased our EDGE AUTOPILOT installs by 15% and now have our EDGE AUTOPILOT systems on 60% of our rigs globally. Our Edge drilling rig controls product line continues to expand, with increasing adoption of products like our ADS, Automated Drill System, which we doubled the number of rigs we have deployed this technology in the 2025 year. In the last call, we reported that we successfully beta tested our Ensign EDGE ATC, auto tool face control, in conjunction with the DGS.

Bob Geddes: Our Canadian business unit focuses primarily on the heavy oil market and has been very steady, with rates increasing basically in line with cost inflation, protecting margins. Moving to the technology side, our EDGE AUTOPILOT drilling rig control system. In 2025, we increased our EDGE AUTOPILOT installs by 15% and now have our EDGE AUTOPILOT systems on 60% of our rigs globally. Our Edge drilling rig controls product line continues to expand, with increasing adoption of products like our ADS, Automated Drill System, which we doubled the number of rigs we have deployed this technology in the 2025 year. In the last call, we reported that we successfully beta tested our Ensign EDGE ATC, auto tool face control, in conjunction with the DGS.

Speaker #3: Our Canadian business unit focuses primarily on the heavy oil market and has been very steady , with rates increasing basically in line with cost inflation , protecting margins , moving to the technology side , our edge autopilot drilling rig control system in 2025 , we increased our edge Autopilot installs by 15% .

Speaker #3: And now we have our Edge Autopilot systems on 60% of our rigs globally. Our edge drilling rig controls product line continues to expand with increasing adoption of products like our automated rail system, for which we doubled the number of rigs we have deployed.

Speaker #3: This technology, in the 2025 year and the last call, we reported that we successfully beta tested our Enzyme Edge ATC auto tool phase control in conjunction with the DDGS.

Robert Geddes: This paves the way for seamless control of automated directional drilling for those operators who utilize remote operating centers and utilize in-house DGS systems, directional guidance systems. I'm happy to report that we are now fully commercial with our Edge ATC and are charging that out on 5 rigs today. We have also initiated the development of an Ensign EDGE state-of-the-art DGS, directional guidance system. With the help of AI, our development team was able to develop a DGS ready for beta testing in less than 1 year and for a fraction of the cost of other DGS developments. Happy to report that we're now beta testing this on one of our super-spec 1,500s in the US. With this, we'll be able to provide a complete and comprehensive drilling control system offering all the bells and whistles.

Bob Geddes: This paves the way for seamless control of automated directional drilling for those operators who utilize remote operating centers and utilize in-house DGS systems, directional guidance systems. I'm happy to report that we are now fully commercial with our Edge ATC and are charging that out on 5 rigs today. We have also initiated the development of an Ensign EDGE state-of-the-art DGS, directional guidance system. With the help of AI, our development team was able to develop a DGS ready for beta testing in less than 1 year and for a fraction of the cost of other DGS developments. Happy to report that we're now beta testing this on one of our super-spec 1,500s in the US. With this, we'll be able to provide a complete and comprehensive drilling control system offering all the bells and whistles.

Speaker #3: This paves the way for seamless control of automated directional drilling for those operators who utilize remote operating centers and utilize in-house DGS systems.

Speaker #3: Directional guidance systems, I'm happy to report that we are now fully commercial with our Edge ATC, and we are charging that out on five rigs today.

Speaker #3: We have also initiated the development of an enzyme edge , state of the art ddgs directional guidance system with the help of AI , our development team was able to develop a Ddgs ready for beta testing in less than a year and for a fraction of the cost of other ddgs developments .

Speaker #3: Happy to report that we're now testing this on our super spec ADR. One of our super spec ADR 1500s in the US.

Speaker #3: With this , we'll be able to provide a complete and comprehensive control system , offering all the bells and whistles . With that , I'll point out .

Robert Geddes: With that, I'll point the call back to the operator for questions.

Bob Geddes: With that, I'll point the call back to the operator for questions.

Speaker #3: I'll point to the call back to the operator for questions.

Operator: Thank you. Ladies and gentlemen, we will now begin the question and answer session. Should you have a question, please press star followed by the number 1 on your touch tone phone. You will hear a prompt that your hand has been raised. Should you wish to decline from the polling process, please press star followed by the number 2. If you're using a speakerphone, please lift the handset before pressing any keys. Once again, it is star 1 if you wish to ask a question. Your first question comes from the line of Keith Mackey from RBC Capital Markets. Your line is now open.

Speaker #1: Thank you , ladies and gentlemen . We will now begin the question and answer session . Should you have a question , please press star followed by the number one on your touchtone phone .

Speaker #1: You will hear a prompt that your hand has been raised. Should you wish to decline from the polling process, please press star followed by the number two.

Speaker #1: If you are using a speakerphone , please lift the handset before pressing any keys . Once again , it is star one . If you wish to ask a question , your first question comes from the line of Keith Mackey from RBC Capital Markets .

Speaker #1: Your line is now open.

Keith Mackey: Hey, good morning. Thanks for taking my questions. Maybe just to start off, Bob, you know, if you asked me where will oil be at, you know, in one year from now, if you asked me that about a year ago, I would have said I wouldn't have said $90. At the same time, you know, we're hearing from most E&P operators in the US and Canada that it's not necessarily going to affect the activity levels, you know, with prices even being where they are. Question for you is, what's your view on that? How long do you think it takes of high prices before we start to see an activity improvement in the US based on, you know, the oil price spike that we've been seeing of late?

Keith MacKey: Hey, good morning. Thanks for taking my questions. Maybe just to start off, Bob, you know, if you asked me where will oil be at, you know, in one year from now, if you asked me that about a year ago, I would have said I wouldn't have said $90. At the same time, you know, we're hearing from most E&P operators in the US and Canada that it's not necessarily going to affect the activity levels, you know, with prices even being where they are. Question for you is, what's your view on that? How long do you think it takes of high prices before we start to see an activity improvement in the US based on, you know, the oil price spike that we've been seeing of late?

Speaker #4: Hey , good morning . Thanks for taking my questions . Maybe just to start off , Bob , you know , if you asked me , where will oil be ?

Speaker #4: You know , in one year from now , if you ask me that , about a year ago , I would have said not .

Speaker #4: I wouldn't have said 90 bucks . But at the same time , you know , we're hearing from most E&P operators in the US and Canada that it's not necessarily going to affect activity levels .

Speaker #4: You know , with with prices even being where they are . So question for you is what's your view on that ? How long do you think it takes of high prices before we start to see an activity improvement in the US based on , you know , the the oil price spike that we've been seeing of late ?

Robert Geddes: Yeah. Well, I agree with your summary there, basically that oil companies will be takers of this blip in oil pricing. I don't think it will, like, affect activity too much if it. I would suggest, though, that if it continues for six months, I think it will start to attract capital, and people will go after more drilling. That's been the plan. The question is, as you point out, I mean, last week, would I have thought oil would be $90 bucks today? No. But.

Bob Geddes: Yeah. Well, I agree with your summary there, basically that oil companies will be takers of this blip in oil pricing. I don't think it will, like, affect activity too much if it. I would suggest, though, that if it continues for six months, I think it will start to attract capital, and people will go after more drilling. That's been the plan. The question is, as you point out, I mean, last week, would I have thought oil would be $90 bucks today? No. But.

Speaker #3: Yeah . Well , I agree with your your summary there . Basically that oil companies will be takers of this blip in oil pricing .

Speaker #3: I don't think it will affect activity too much if it—but I would suggest though that if it continues for six months, I think it will start to attract capital and people will go after more and more drilling.

Speaker #3: That's been the plan . But the question is , as you point out , I mean , last week , when I thought oil would be 90 bucks , today , no , but yeah , so that's that's our sense on it short term , I see very little impact .

Keith Mackey: Yeah.

Keith MacKey: Yeah.

Robert Geddes: That's our sense on it. Short-term, I see very little impact. If it stays for 6 months, I think there's enough capital going after it that'll make a good return that people will start to drill more, for sure.

Bob Geddes: That's our sense on it. Short-term, I see very little impact. If it stays for 6 months, I think there's enough capital going after it that'll make a good return that people will start to drill more, for sure.

Speaker #3: But if it stays for six months , I think it there's enough capital going after it that'll make a good return . That people will start to drill more for sure .

Keith Mackey: Yeah. Got it. What about pricing? Like, you know, maybe activity doesn't change in the next couple of months, does it give you and your competitors a bit more of a leg to stand on when you go to renew contracts, now that, you know, customers have healthier cash flows? Like, do you think this is at least positive for pricing, or is it neutral for pricing, would you say?

Keith MacKey: Yeah. Got it. What about pricing? Like, you know, maybe activity doesn't change in the next couple of months, does it give you and your competitors a bit more of a leg to stand on when you go to renew contracts, now that, you know, customers have healthier cash flows? Like, do you think this is at least positive for pricing, or is it neutral for pricing, would you say?

Speaker #4: Yeah . Got it . And what about pricing like , you know , maybe , maybe activity doesn't change in the next couple of months , but does it give you and your competitors a bit more of a leg to stand on when you go to renew contracts ?

Speaker #4: Now that you know , customers have healthier cash flows , like do you think this is at least positive for pricing or is it or is it neutral for pricing ?

Speaker #4: Would you say ?

Robert Geddes: Well, I'd say it's our pricing is always dictated by the supply of drilling rigs. There's no question, as we're getting more calls and getting more bids, we tend to bid up.

Bob Geddes: Well, I'd say it's our pricing is always dictated by the supply of drilling rigs. There's no question, as we're getting more calls and getting more bids, we tend to bid up.

Speaker #3: Well , I'd say it's our pricing is always dictated by the supply of drilling rigs . And but there's no question as we're getting more calls and getting more bids , we tend to bid up

Keith Mackey: Yeah. Got it.

Keith MacKey: Yeah. Got it.

Robert Geddes: We'll see. We'll see. Yeah.

Bob Geddes: We'll see. We'll see. Yeah.

Speaker #4: Yeah .

Speaker #3: So, we'll see. We'll see. Yeah.

Keith Mackey: Got it. Okay. Just one more for me on Venezuela. Certainly, you know, you're the only ones kinda working there now with the two rigs running.

Keith MacKey: Got it. Okay. Just one more for me on Venezuela. Certainly, you know, you're the only ones kinda working there now with the two rigs running.

Speaker #4: Got it . Okay . And just just one more for me . On on Venezuela . Certainly . You know , you're the only ones kind of working there now with , with the two rigs running .

Robert Geddes: Mm-hmm.

Bob Geddes: Mm-hmm.

Keith Mackey: Can you just give us a bit of a summary on the state of the environment there, with respect to, you know, the rigs that you have there, how many rigs you have, how many could work, what types of bidding or at least inquiries that you're getting now? What's your sense of how many rigs competitors might have on the ground as well?

Keith MacKey: Can you just give us a bit of a summary on the state of the environment there, with respect to, you know, the rigs that you have there, how many rigs you have, how many could work, what types of bidding or at least inquiries that you're getting now? What's your sense of how many rigs competitors might have on the ground as well?

Speaker #4: Can you just give us a bit of a summary on the state of the environment ? There with respect to , you know , the rigs that you have there , how many rigs you have , how many could work , what types of what types of bidding , or at least inquiries that you're getting now and and what's your sense of how many rigs competitors might have , might have on the ground as well ?

Robert Geddes: Yeah. Well, that's a big question. Just to unpack that a little bit, we've got 2 drilling rigs that have been active. I mean, they're great rigs. I've been down there not recently. There are, of course, over the last 5 years, a lot of the US competitors have disappeared, been chased away or whatever, and there hasn't been much activity. The rigs that are on the ground are not in very good shape, if any shape at all, outside of the rigs that we have running. We've got kind of 3 rigs, 2 drilling rigs, and kind of a deeper workover rig in the country.

Bob Geddes: Yeah. Well, that's a big question. Just to unpack that a little bit, we've got 2 drilling rigs that have been active. I mean, they're great rigs. I've been down there not recently. There are, of course, over the last 5 years, a lot of the US competitors have disappeared, been chased away or whatever, and there hasn't been much activity. The rigs that are on the ground are not in very good shape, if any shape at all, outside of the rigs that we have running. We've got kind of 3 rigs, 2 drilling rigs, and kind of a deeper workover rig in the country.

Speaker #3: Yeah . Well that's a that's a big question . Just to unpack that a little bit . We've got two drilling rigs that have been active .

Speaker #3: I mean they're great rigs . I've been down there not recently . There are of course over the last five years , a lot of the US competitors have disappeared , been chased away or whatever .

Speaker #3: And there hasn't been much activity . So the rigs that are on the ground are not in very good shape . If any shape at all Outside of the rigs that we have running , we've got kind of three rigs , two , two drilling rigs in kind of a deeper workover rig in the country .

Robert Geddes: We've got assets that we can deploy from the US that can meet the needs. You know, we're under current conversation with some clients on that.

Speaker #3: But we've got we've got proper or not properly , we've got assets that we can deploy from the US that can meet the needs .

Bob Geddes: We've got assets that we can deploy from the US that can meet the needs. You know, we're under current conversation with some clients on that.

Speaker #3: And, you know, we're in current conversation with some clients on that.

Keith Mackey: Got it. Do you have an estimate of how many rigs you think could be deployable from the US to Argentina in your fleet? Or is it too early to say?

Keith MacKey: Got it. Do you have an estimate of how many rigs you think could be deployable from the US to Argentina in your fleet? Or is it too early to say?

Speaker #4: Got it. Do you have an estimate of how many rigs you think could be deployable from the US to Argentina in your fleet, or is it too early?

Robert Geddes: To Venezuela?

Bob Geddes: To Venezuela?

Keith Mackey: Yeah.

Robert Geddes: To Venezuela or Argentina? To Venezuela?

Keith MacKey: Yeah.

Bob Geddes: To Venezuela or Argentina? To Venezuela?

Speaker #3: To Venezuela, to Venezuela, Argentina, to Venezuela?

Keith Mackey: Yeah.

Keith MacKey: Yeah.

Robert Geddes: It's... Yeah. Well, let's put it this way. We've got, we've got capacity, we could send 10 if we needed to. It's, I think Venezuela develops slowly. There's a lot going on, but it's very active. A lot of OFAC licenses have been granted to various operators, and they've been in touch. I think it develops slowly. It's a tough place to do business as one can imagine. Right now, it seems to be a little bit of a tea party compared to what's going on in the Middle East.

Bob Geddes: It's... Yeah. Well, let's put it this way. We've got, we've got capacity, we could send 10 if we needed to. It's, I think Venezuela develops slowly. There's a lot going on, but it's very active. A lot of OFAC licenses have been granted to various operators, and they've been in touch. I think it develops slowly. It's a tough place to do business as one can imagine. Right now, it seems to be a little bit of a tea party compared to what's going on in the Middle East.

Speaker #4: Yeah .

Speaker #3: Or yeah , it's we well , let's put it this way . We've got we've got capacity . We could , we could send ten if we needed to , but it's I think that Ezuela develops slowly .

Speaker #3: There's a lot going on, but it's very active. A lot of OFAC licenses have been granted to various operators, and they've been in touch.

Speaker #3: But I think it develops slowly . It's it's a tough place to do business , as one can imagine . But right now it seems to be a little bit of a tea party compared to what's going on in the Middle East .

Keith Mackey: Mm-hmm. Got it. Understood. Thanks very much for the color.

Keith MacKey: Mm-hmm. Got it. Understood. Thanks very much for the color.

Speaker #4: Got it. Understood. Thanks very much for the color.

Robert Geddes: Yeah. Thanks, Keith.

Bob Geddes: Yeah. Thanks, Keith.

Speaker #3: Yeah . Thank you

Operator: Your next question comes from the line of Aaron MacNeil from TD Cowen. Your line is now open.

Speaker #1: Your next question comes from the line of Aaron McNeil from TD Cowen. Your line is now open.

Aaron MacNeil: Hey, morning all. Thanks for taking my questions. Just more of a clarification one on the Kuwait rigs that are rolling off contract mid this year.

Speaker #5: Hey. Morning. Thanks for taking my questions. This is more of a clarification, one on the Kuwait rigs that are rolling off contract mid this year.

Robert Geddes: Mm-hmm.

Bob Geddes: Mm-hmm.

Aaron MacNeil: Is this something that you reasonably expect to get renewed again, once the contracts expire? At this point, are you trying to find sort of new homes for them?

Speaker #5: Is this something that you reasonably expect to get renewed again once the contracts expire? Or, at this point, are you trying to find sort of new homes for them?

Robert Geddes: Yeah. The operator has provided some indication that they might have another well behind each one of these rigs. It's typically how they move along. They'll get close to, you know, 60 days from when the rig is gonna be complete, and they find another well. That's how we've been operating the last year or two. They've provided some indication, but we don't know. With everything happening in the Middle East, everything is up in the air.

Bob Geddes: Yeah. The operator has provided some indication that they might have another well behind each one of these rigs. It's typically how they move along. They'll get close to, you know, 60 days from when the rig is gonna be complete, and they find another well. That's how we've been operating the last year or two. They've provided some indication, but we don't know. With everything happening in the Middle East, everything is up in the air.

Speaker #3: Yeah . The the operator has provided some indication that they they might have another . Well behind each one of these rigs . And it's typically how , how they move along .

Speaker #3: They'll get close to, you know, 60 days from when the rig is going to be complete. And they find another.

Speaker #3: Well , that's that's how we've been operating the last year or two . So they've they've provided some indication . But we don't know with everything happening in the Middle East , everything is up in the air

Aaron MacNeil: Gotcha. You know, we saw Tourmaline cut capital earlier this week, not materially.

Speaker #5: Gotcha . And then , you know , we saw tourmaline cut capital earlier this week . Not materially , but Arc also recently removed a tacky phase two from their long term plans .

Robert Geddes: Mm-hmm.

Bob Geddes: Mm-hmm.

Aaron MacNeil: ARC also recently removed Attachie phase two from their long-term plans. How are you thinking about sort of that deep basin and liquids-rich Montney outlook in Canada that may be starting to see some cracks in the armor given gas prices? Any updated views there?

Speaker #5: How are you thinking about, sort of, that deep basin and liquids-rich Montney outlook in Canada that may be starting to see some cracks in the armor, given gas prices? Any updated views there?

Robert Geddes: Yeah, good question. Yeah, gas prices are not helping. I gotta think that liquids pricing has got to be helping. Yeah, I'm not too surprised. This is the dilemma Canada has, of course, is take away capacity. That's another conversation. Yeah, when we are victims of gas prices for sure. Yeah.

Bob Geddes: Yeah, good question. Yeah, gas prices are not helping. I gotta think that liquids pricing has got to be helping. Yeah, I'm not too surprised. This is the dilemma Canada has, of course, is take away capacity. That's another conversation. Yeah, when we are victims of gas prices for sure. Yeah.

Speaker #3: Yeah, good question. Yeah, gas prices are not helping. I got to think that liquids pricing has got to be helping.

Speaker #3: But yeah , I I'm not too surprised . This is the the dilemma Canada has of course is take away capacity . And that's another conversation .

Speaker #3: But yeah, yeah, we are victims of gas prices for sure. And

Aaron MacNeil: Fair enough. Maybe I'll sneak one more in to build on Keith's question. In the event that you would mobilize rigs to Venezuela, what's the rig spec that makes sense for the market, and how would you think about sort of staffing and sort of, you know, other sort of soft issues in the market?

Speaker #5: Fair enough. And then maybe I'll build on Keith's question. In the event that you would mobilize rigs to Venezuela, what's the rig spec that makes sense for the market?

Speaker #5: And how would you think about sort of staffing and, sort of, you know, other sort of soft issues in, in the...

Robert Geddes: Well, yeah, we've been in Venezuela over 25 years. Almost all of our people in Venezuela are Venezuelans. There are some people coming back. We've got a, you know, a strong franchise there. The type of rigs depends on the area where we operate. They're typically 1,000, 1,500 horsepower type rigs, mostly 1,500. That's kind of the rig for the Orinoco Belt.

Bob Geddes: Well, yeah, we've been in Venezuela over 25 years. Almost all of our people in Venezuela are Venezuelans. There are some people coming back. We've got a, you know, a strong franchise there. The type of rigs depends on the area where we operate. They're typically 1,000, 1,500 horsepower type rigs, mostly 1,500. That's kind of the rig for the Orinoco Belt.

Speaker #3: Yeah . Well , yeah , we've we've we've been going as well over 25 years . Almost all of our people in Venezuela , Venezuelans , there are some people coming back .

Speaker #3: We've got a, you know, a strong franchise there. The type of rigs depends on the area where we operate there.

Speaker #3: They're typically 1,000-1,500 horsepower type rigs, mostly 1,500. That's kind of the rig for the Orinoco Belt.

Aaron MacNeil: Gotcha. Thanks. I'll turn it back.

Speaker #5: Gotcha. Thanks. I'll turn it back.

Robert Geddes: Okay.

Bob Geddes: Okay.

Speaker #2: Okay

Operator: Your next question comes from the line of Josef Schachter from Schachter Energy Research. Your line is now open.

Speaker #1: Your next question comes from the line of Josef Schachter from Schachter Energy Research. Your line is now open.

Josef Schachter: Super. Thanks very much for taking my questions, Bob and Mike. First one on the debt side. You knocked down CAD 100 million to that CAD 918.6 million. How should we be looking at debt going forward? You mentioned that, in the commentary that, you know, the CAD 600 million target should be reached during 2026 first half. If you go back, you know, if we go back to periods when you had $80, $90 oil, let's say post-war, you know, 2028, 2029, we get there. You know, in 2012, you had EBITDA CAD 561 million. In 2014, you had CAD 537 million. If you look at and say something like you do have EBITDA 2029 or CAD 500 million, would your target be to get to 1-to-1 debt to EBITDA?

Speaker #6: Thanks very much for taking my questions . Bob and Mike . First one on the debt side , you knocked down 100 million to that nine 18.6 million .

Speaker #6: How should we be looking at debt going forward ? You mentioned that in the commentary that , you know , the 600 million target should be reached during 2026 first half , if you go back , you know , if we go back to periods when you had 80 , or $90 oil , let's say post-war , you know , 28 , 29 we get there , you know , in 2012 , you had EBITDA 561,000,020 14 you had 537 .

Speaker #6: If you look and say something like , you do have EBITDA , 2829 to 500 million , would your target be to get to 1 to 1 debt to EBITDA ?

Robert Geddes: Mike?

Bob Geddes: Mike?

Speaker #3: Right ?

Michael Gray: Yeah. I mean, ideally that 1.5 is really the target. Yeah, I think once we kind of get to that, conversations would start to change. Yeah, that would be the target that we'd be looking at.

Mike Gray: Yeah. I mean, ideally that 1.5 is really the target. Yeah, I think once we kind of get to that, conversations would start to change. Yeah, that would be the target that we'd be looking at.

Speaker #2: Yeah . I mean , ideally that one one and a half is really the target . So yeah , I think once we kind of get to that , then conversations would start to change .

Speaker #2: But yeah, that would be the target that we'd be looking at.

Josef Schachter: About CAD 100 million a year then it would, you know, for debt reduction is still something to keep in mind for models?

Speaker #6: So, about $100 million a year. Then, you know, for debt reduction, it's still something to keep in mind for models.

Michael Gray: Yeah, for sure. We're still laser focused on the debt reduction.

Mike Gray: Yeah, for sure. We're still laser focused on the debt reduction.

Speaker #2: Yeah, for sure. We're still laser-focused on the debt reduction.

Josef Schachter: Super. At what point would you be starting to look at increasing the amount of NCIB versus debt reduction? Is there a number that you need to reach, CAD 700 million? Is there some number out there that you need before you could start looking at the mix of allocation of capital, free funds flow?

Speaker #6: Over at what point would you be starting to look at increasing the amount of NCIB versus debt reduction? Is there a number that you need to reach—$700 million?

Speaker #6: Is there some number out there that you need before you could start looking at the mix of allocation of capital, free funds, flow?

Michael Gray: There's a minimum liquidity on the credit facility that we have that we'd have to meet first. We'd probably, like I said, the conversations at the board level would need to take place on what would happen. Like I said, the next year or two years are really focused on continued debt reduction.

Mike Gray: There's a minimum liquidity on the credit facility that we have that we'd have to meet first. We'd probably, like I said, the conversations at the board level would need to take place on what would happen. Like I said, the next year or two years are really focused on continued debt reduction.

Speaker #2: There's a minimum liquidity on the credit facility that we have that we'd have to meet first , and then we probably , like I said , the conversation at the board level would need to take place on on what would happen .

Speaker #2: But like I said, the next year or two years is really focused on continued debt reduction.

Josef Schachter: Okay. Last one for me. Given we're seeing insurance companies pulling insurance coverage for shipping, is there any concern about your rigs in the Middle East, given they're in the zone of drone attacks, that insurance could be an issue, or the cost could get up to the point where putting the rigs in the field it doesn't make sense?

Speaker #6: Okay , last one for me , given we're seeing insurance companies pulling insurance coverage for shipping , is there any concern about your rigs in the Middle East given there in the zone of of drone attacks that that insurance is could be an issue or the cost could get up to the point where putting the rigs in the field , doesn't make sense .

Robert Geddes: Yeah. We've got, you know, we don't talk in detail about our insurance programs. We do have insurance. We've been operating in the Middle East for long periods of time and have good protocol on keeping most importantly personnel safe and then equipment. Where we're at in Oman and Kuwait, there's been a little bit of action, but not much. We're basically both green in that area. Bahrain, we're what we call yellow alert. The rigs are in Oman and Kuwait are still drilling and in Bahrain, we're on standby with crews. It's changing every day. Tomorrow may be a different story.

Bob Geddes: Yeah. We've got, you know, we don't talk in detail about our insurance programs. We do have insurance. We've been operating in the Middle East for long periods of time and have good protocol on keeping most importantly personnel safe and then equipment. Where we're at in Oman and Kuwait, there's been a little bit of action, but not much. We're basically both green in that area. Bahrain, we're what we call yellow alert. The rigs are in Oman and Kuwait are still drilling and in Bahrain, we're on standby with crews. It's changing every day. Tomorrow may be a different story.

Speaker #3: Yeah , we've got you know , we're not going . We don't talk in detail about our insurance programs , but we do have insurance .

Speaker #3: We're we've been operating at least for a long periods of time . And , and have good protocol on on keeping most , most importantly personnel safe .

Speaker #3: And then and then equipment where we're at in in Oman and Kuwait , there's been a little bit of action , but not much .

Speaker #3: We're basically both green in that area. Bahrain, we're what we call yellow alert, but the rigs are in Oman and Kuwait are still drilling, and in Bahrain we're on basically standby with crews.

Speaker #3: So, and it's changing every day. So tomorrow may be a different story.

David Brown: Yeah. Thanks for answering my questions.

Josef Schachter: Yeah. Thanks for answering my questions.

Speaker #6: Yeah. Thanks for answering my questions.

Robert Geddes: Thanks, Joseph.

Bob Geddes: Thanks, Joseph.

Speaker #3: Thanks , Joseph .

Operator: Your next question comes from the line of Tim Monachello from ATB Cormark Capital Markets. Your line is now open.

Speaker #1: Your next question comes from the line of Tim Monticello from ATB Cormark. Your line is now open.

Tim Monachello: Hey, good morning. I just wanted to start, I guess, with margins. They came in a little bit above my model, and I was thinking perhaps this might be an impact of either, you know, rig mix and business mix, but maybe also just the impact of adding some of these Edge automation systems to the fleet over time. Do you have an expectation for what the margin lift could be in sort of an otherwise flat environment for pricing, just based on those Edge automation systems and other?

Tim Monachello (ATB Capital Markets: Hey, good morning. I just wanted to start, I guess, with margins. They came in a little bit above my model, and I was thinking perhaps this might be an impact of either, you know, rig mix and business mix, but maybe also just the impact of adding some of these Edge automation systems to the fleet over time. Do you have an expectation for what the margin lift could be in sort of an otherwise flat environment for pricing, just based on those Edge automation systems and other?

Speaker #7: Hey good morning I just wanted to start , I guess with margins that came in a little bit above my model , and I was thinking perhaps this might be an impact of either , you know , rig mix and business mix , but maybe also just the impact of adding some of these edge automation systems to to the fleet over time .

Speaker #7: Do you have an expectation for what the margin lift could be in sort of an otherwise flat environment for pricing, just based on those edge automation systems and— and?

Robert Geddes: Yeah

Bob Geddes: Yeah

Tim Monachello: technology additions?

Tim Monachello (ATB Capital Markets: technology additions?

Speaker #7: Yeah . So additions .

Robert Geddes: Yeah. We've got, I mean we're building our Edge rollout at about 15% per year. We have it on 60% of our fleet today that is active. We have 100, so 60 rigs. We're adding about 10 per year with anywhere between $1,000 to $1,500 a day on average. And it's all margin. That's all margin. You can build that into the model pretty quickly there.

Bob Geddes: Yeah. We've got, I mean we're building our Edge rollout at about 15% per year. We have it on 60% of our fleet today that is active. We have 100, so 60 rigs. We're adding about 10 per year with anywhere between $1,000 to $1,500 a day on average. And it's all margin. That's all margin. You can build that into the model pretty quickly there.

Speaker #3: Yeah , we've got I mean we're building our edge rollout at about 15% per year . And we have it on 60% of our fleet today .

Speaker #3: That that is active . We have 100 . And 60 rigs . So we're we're adding about ten per year with anywhere between 1000 to $1500 a day on average .

Speaker #3: And it's all margin. That's all margin. So you can build that into the model pretty quickly. There.

Tim Monachello: Okay. That's helpful. Most of my questions have been answered, I guess I wanna dive in a little bit into what's going on in California. It sounds like there's at least some rumblings of more oil and gas-friendly policies being pushed in California. Are you seeing any changes to, I guess, your customers' expectations or activity levels or expectations for what their activity levels will be going forward in California?

Tim Monachello (ATB Capital Markets: Okay. That's helpful. Most of my questions have been answered, I guess I wanna dive in a little bit into what's going on in California. It sounds like there's at least some rumblings of more oil and gas-friendly policies being pushed in California. Are you seeing any changes to, I guess, your customers' expectations or activity levels or expectations for what their activity levels will be going forward in California?

Speaker #8: Okay . That's helpful .

Speaker #7: And then, most of my questions had been answered. But I guess I want to dive in a little bit into what's going on in California.

Speaker #7: It sounds like there's at least some rumblings of more oil and gas friendly policies being pushed in . In California . Are you seeing any changes to , I guess , your customers expectations or activity levels or or expectations for what their activity levels will be going forward in California ?

Robert Geddes: A little bit. Yeah. I mean, we basically are running 8 rigs now. We were down to about 4 or 5 there at the beginning of 2025. It is changing. It's opening up a little bit, and I'll say that tongue in cheek for California. They're starting to realize that they do need a little bit of oil and gas. Operators that are in the area are able to get some permits that are allowing them to get after some drilling along with some P&A activity, which we benefit from on our service rigs. We also run a bunch of service rigs in California. We're the biggest, one of the biggest in California as well on the service rig side.

Bob Geddes: A little bit. Yeah. I mean, we basically are running 8 rigs now. We were down to about 4 or 5 there at the beginning of 2025. It is changing. It's opening up a little bit, and I'll say that tongue in cheek for California. They're starting to realize that they do need a little bit of oil and gas. Operators that are in the area are able to get some permits that are allowing them to get after some drilling along with some P&A activity, which we benefit from on our service rigs. We also run a bunch of service rigs in California. We're the biggest, one of the biggest in California as well on the service rig side.

Speaker #3: A little bit , yeah . I mean , we we basically are running eight rigs now . We were down to about 4 or 5 there at the beginning of 25 .

Speaker #3: So it is it is changing . It's opening up a little bit and I'll say that tongue in cheek for California , but they're starting to realize that they do need a little bit of oil and gas .

Speaker #3: So operators that are in the area are able to get some permits that are allowing them to get after some drilling, along with some PA activity, which we benefit from on our services.

Speaker #3: We also run a bunch of services in California, where we're one of the biggest in California as well. On the service side, the biggest on the drilling side.

Robert Geddes: The biggest on the drilling side. Yeah, it's California, but it is a little more happy face than sad face, I'd say.

Bob Geddes: The biggest on the drilling side. Yeah, it's California, but it is a little more happy face than sad face, I'd say.

Speaker #3: So yeah , it's it's it's California , but it is a little more happy face than sad face than sad face . I'd say .

Tim Monachello: Okay. Do you think you'll see stronger activity levels in California on average in 2026 than 2025, or at least?

Tim Monachello (ATB Capital Markets: Okay. Do you think you'll see stronger activity levels in California on average in 2026 than 2025, or at least?

Speaker #7: Okay. Do you think you'll see stronger activity in California on average in '26 and '25, or at least?

Robert Geddes: I think we stay steady. Yeah. I think we stay steady at 8 through 2026, is my thinking.

Bob Geddes: I think we stay steady. Yeah. I think we stay steady at 8 through 2026, is my thinking.

Speaker #8: I think, I think we stay steady. Yeah, I think we stay steady at eight.

Speaker #3: Through 26 is my thinking.

Tim Monachello: Okay. Ensign has historically been a little bit underrepresented in gas basins in the US. Are you know, making any progress in moving into gas basins or getting more activity levels in the Haynesville or talking to customers in that basin?

Tim Monachello (ATB Capital Markets: Okay. Ensign has historically been a little bit underrepresented in gas basins in the US. Are you know, making any progress in moving into gas basins or getting more activity levels in the Haynesville or talking to customers in that basin?

Speaker #8: Okay .

Speaker #7: And then enzyme historically been a little bit underrepresented in gas basins in the US . Are , you know , making any progress in moving into gas basins or getting more activity levels in , the Haynesville or talking to customers in that basin ?

Robert Geddes: Yeah. Yeah. We're seeing some bids coming out into the Haynesville, the Eagle Ford. We've got, you know, we've got a few idle rigs that can take those bids. Yeah, it's slowly moving for sure. I mean, gas prices down there are a little different than up here, right?

Bob Geddes: Yeah. Yeah. We're seeing some bids coming out into the Haynesville, the Eagle Ford. We've got, you know, we've got a few idle rigs that can take those bids. Yeah, it's slowly moving for sure. I mean, gas prices down there are a little different than up here, right?

Speaker #8: Yeah , yeah .

Speaker #3: We're seeing some some bids coming out into the Haynesville , the Eagle Ford . We've got , you know , we've got a few rigs that can take those bids .

Speaker #3: But yeah , it's , it's it's slowly , it's slowly moving for sure . I mean , gas prices down there a little different up here .

Speaker #3: Right

Tim Monachello: Okay. Then just in terms of Venezuela and the prospect of perhaps moving some idle equipment into the region over the next few years, I guess, what type of contract structures would you require from that, what type of assurances would you be looking for to be able to, you know, deploy incremental capital or equipment into that region?

Tim Monachello (ATB Capital Markets: Okay. Then just in terms of Venezuela and the prospect of perhaps moving some idle equipment into the region over the next few years, I guess, what type of contract structures would you require from that, what type of assurances would you be looking for to be able to, you know, deploy incremental capital or equipment into that region?

Speaker #7: Okay . And then just in terms of Venezuela and the prospect of perhaps moving some idle equipment into the region for the next few years , I guess what type of contract structures would you require for that and what type of assurances would you be looking for to be able to , you know , deploy incremental capital or equipment into that region ?

Robert Geddes: Yeah. Well, you know, Venezuela is still a risky market. It's been de-risked to some extent, but it's still a risky market. We would look for long-term contracts of at least 3 years to 5 years and with, you know, some coverage on, you know, getting us in and getting us out. We work in US dollars in Venezuela, obviously. That's about all I want to disclose, but, you know, we've been working there for 25 years, so we know how to run the business there and the commercial side of it well.

Bob Geddes: Yeah. Well, you know, Venezuela is still a risky market. It's been de-risked to some extent, but it's still a risky market. We would look for long-term contracts of at least 3 years to 5 years and with, you know, some coverage on, you know, getting us in and getting us out. We work in US dollars in Venezuela, obviously. That's about all I want to disclose, but, you know, we've been working there for 25 years, so we know how to run the business there and the commercial side of it well.

Speaker #8: Yeah .

Speaker #3: Well, you know, it's—it's

Speaker #8: Venezuela is .

Speaker #3: Still a risky market . Let's , let's it has it's been de-risked to some extent , but it's still a risky market . We would look for long term contracts of at least three years to five years .

Speaker #3: And with , you know , some some coverage on , you know , getting us in and getting us out . We , we work in US dollars in Venezuela , obviously , and that's , that's about all I want to disclose .

Speaker #3: But , you know , we've been working there for 25 years . So we know how to we know how to run the business .

Speaker #3: There. And the commercial side of it, well...

Tim Monachello: Okay. That's great. I'll turn it back. Appreciate the details.

Tim Monachello (ATB Capital Markets: Okay. That's great. I'll turn it back. Appreciate the details.

Speaker #7: Okay. That's great. I'll turn it back. Appreciate the details.

Robert Geddes: Yeah. Thanks.

Bob Geddes: Yeah. Thanks.

Speaker #3: Yeah . Thanks

Operator: As a reminder, if you have a question or any follow-up, please press star 1. Our next question comes from the line of Waqar Syed from Equinox. Your line is now open.

Speaker #1: As a reminder , if you have a question or any follow up , please press star one . Our next question comes from the line of Darvin Mamedov from Equinox .

Speaker #1: Your line is now open

Waqar Syed: Hi. Thanks for taking my question. Congrats on the release. I had two specific questions. If I look at the international rig, rigs that you have, I think it's around like low teens, and then half of it is in the Middle East. Should I think about in terms of revenue, also roughly similar breakdown, 50% of international revenues are in the Middle East and the rest is split between other markets?

[Analyst] (Equinox): Hi. Thanks for taking my question. Congrats on the release. I had two specific questions. If I look at the international rig, rigs that you have, I think it's around like low teens, and then half of it is in the Middle East. Should I think about in terms of revenue, also roughly similar breakdown, 50% of international revenues are in the Middle East and the rest is split between other markets?

Speaker #9: Hi . Thanks for taking my question . Congrats on the release . I had two specified questions , so if I look at the international rig rigs , you have , I think it's around like low teens and then half of it is in the Middle East .

Speaker #9: Should I think about it in terms of revenue also? Roughly a similar breakdown: 50% of international revenues are in the Middle East, and the rest is split between other markets.

Robert Geddes: Mike, do you wanna handle that one?

Bob Geddes: Mike, do you wanna handle that one?

Speaker #3: Like, do you want to handle that one?

David Brown: Yeah, that'd be appropriate.

Mike Gray: Yeah, that'd be appropriate.

Speaker #2: Yeah , that'd be appropriate

Robert Geddes: Hello?

Bob Geddes: Hello?

Speaker #3: Hello .

Waqar Syed: Hello?

[Analyst] (Equinox): Hello?

Speaker #10: Hello

Robert Geddes: Hello.

Bob Geddes: Hello.

David Brown: Yeah. I said that would be appropriate.

Mike Gray: Yeah. I said that would be appropriate.

Speaker #3: Hello .

Speaker #2: Yep

Speaker #10: Did

Speaker #2: I said that would be appropriate.

Waqar Syed: Okay. Sorry, I didn't hear that. In terms of the CapEx, I expected lower growth CapEx considering that it is a big chunk of it was customer paid. I don't really understand where that number shows up. How should I think about the customer paid portion of the CapEx? Is it already netted out of the growth CapEx number, or are we gonna get it this year? Like, where does it show up in financials?

[Analyst] (Equinox): Okay. Sorry, I didn't hear that. In terms of the CapEx, I expected lower growth CapEx considering that it is a big chunk of it was customer paid. I don't really understand where that number shows up. How should I think about the customer paid portion of the CapEx? Is it already netted out of the growth CapEx number, or are we gonna get it this year? Like, where does it show up in financials?

Speaker #10: Oh , okay . So

Speaker #9: Sorry , I didn't hear that . And in terms of the CapEx , I expected lower growth CapEx , considering that it is a big chunk of it was customer paid , but I don't really understand where that number shows up .

Speaker #9: How should I think about the customer paid portion of the CapEx ? Do you is it already netted out of the growth CapEx number , or are you going to get it this year ?

Speaker #9: Like, where does it show up in financials?

David Brown: It shows up through the revenue line or the courses of the contract.

Mike Gray: It shows up through the revenue line or the courses of the contract.

Speaker #2: Well , it show up through the revenue line over the course of the contract So that is the the gross number . And then the customer funded one , depending on structure of the contract , will flow through those revenue .

Waqar Syed: All right.

[Analyst] (Equinox): All right.

David Brown: That growth CapEx is the gross CapEx number, and then the customer-funded one, depending on structure of the contract, will flow through as revenue.

Mike Gray: That growth CapEx is the gross CapEx number, and then the customer-funded one, depending on structure of the contract, will flow through as revenue.

Waqar Syed: Okay. Okay, this is helpful. Thank you so much.

[Analyst] (Equinox): Okay. Okay, this is helpful. Thank you so much.

Speaker #10: Okay , okay .

Speaker #9: This is helpful. Thank you so much.

Robert Geddes: Thank you.

Bob Geddes: Thank you.

Speaker #10: Thank you

Operator: Your next question comes from the line of John Daniel from Daniel Energy Partners. Your line is now open.

Speaker #1: Your next question comes from the line of John Daniel from Daniel Energy Partners. Your line is now open.

John Daniel: Hey, guys. Thanks for including me. I just have 2 quick ones on Venezuela. Can you speak to the, just the AR collections over the last couple years? Has anything changed post Maduro leaving? That's the first question. The second would be, would you be more likely in terms of faster incremental deployments of equipment down there, would it be workover rigs or drilling rigs? Just your thoughts.

Speaker #11: Hey guys . Thanks for including me . I just have two quick ones on Venezuela . Can you speak ? Speak to the just the AR collections over the last couple of years and then has anything changed post Maduro leaving .

Speaker #11: That's the first question. And then the second would be, would you be more likely, in terms of faster incremental deployments of equipment down there?

Speaker #11: Would it be workover rigs or drilling rigs? Just your thoughts.

Robert Geddes: Yeah. Well, let's answer the last one first. Drilling rigs in our perspective, there's some local workover rigs that I suspect the local companies will jump on to because lower capital required, less complex equipment. As far as the commercial side, since Maduro's left, nothing has changed as far as our relationship with our client and how we're getting paid. We'll see how it evolves. You know, we've got a pretty good contract structure that we've been using for a period of time, you know, that lives within the OFAC restrictions. Yeah.

Bob Geddes: Yeah. Well, let's answer the last one first. Drilling rigs in our perspective, there's some local workover rigs that I suspect the local companies will jump on to because lower capital required, less complex equipment. As far as the commercial side, since Maduro's left, nothing has changed as far as our relationship with our client and how we're getting paid. We'll see how it evolves. You know, we've got a pretty good contract structure that we've been using for a period of time, you know, that lives within the OFAC restrictions. Yeah.

Speaker #3: Yeah . Well , let's answer the last one first . Drilling rigs in our in our perspective , there's there's some local workover rigs that I suspect the local companies will will jump on to because lower capital required less , less complex equipment as far as the commercial side , since materials left , nothing has changed as far as our relationship with our client and how we're getting paid and we'll see how it see how it evolves .

Speaker #3: Anyway, we've got a pretty good contract structure that we've been using for a period of time. You know, that lives within the Olfac restrictions.

Speaker #3: So yeah , I material leaving hasn't changed anything other than it appears to . Have more blue sky ahead of Venezuela on a day to day basis .

Robert Geddes: Maduro leaving hasn't changed anything other than it appears to have more blue sky ahead of Venezuela. On a day-to-day basis, there's not much change.

Bob Geddes: Maduro leaving hasn't changed anything other than it appears to have more blue sky ahead of Venezuela. On a day-to-day basis, there's not much change.

Speaker #3: There's not much change

John Daniel: Fair enough. Thank you very much.

Speaker #11: Fair enough. Thank you very much.

Robert Geddes: Okay.

Bob Geddes: Okay.

Speaker #10: Okay

Operator: There are no further questions at this time. I will now turn the call back to Mr. Bob Geddes from President and CEO. Please continue.

Speaker #1: There are no further questions at this time. I will now turn the call back to Mr. Bob Geddes, President and CEO.

Speaker #1: Please continue .

Robert Geddes: Thank you. Well, the outlook for the drilling industry remains constructive, supported by obvious stronger commodity prices and the ongoing need for reliable global energy. At the same time, the sector continues to operate within a volatile macroeconomic and geopolitical backdrop. That's obviously an understatement today. In this environment, operators will remain focused on efficiency, capital discipline, high-performance drilling contractors like Ensign, whom also have a global footprint and are capable of delivering fast, safer, and more cost-effective wells on a consistent basis, will stay active well into the future. Anyway, with that, I'll close off, and we'll look forward to our next call in 3 months. Thank you.

Bob Geddes: Thank you. Well, the outlook for the drilling industry remains constructive, supported by obvious stronger commodity prices and the ongoing need for reliable global energy. At the same time, the sector continues to operate within a volatile macroeconomic and geopolitical backdrop. That's obviously an understatement today. In this environment, operators will remain focused on efficiency, capital discipline, high-performance drilling contractors like Ensign, whom also have a global footprint and are capable of delivering fast, safer, and more cost-effective wells on a consistent basis, will stay active well into the future. Anyway, with that, I'll close off, and we'll look forward to our next call in 3 months. Thank you.

Speaker #3: Thank you . Well , the outlook for the drilling industry remains constructive , supported by obvious , stronger commodity prices and the ongoing need for reliable global energy .

Speaker #3: At the same time , the sector continues to operate within a volatile macroeconomic and geopolitical backdrop . That's obviously an understatement . Today in this environment , operators will remain focused on efficiency , capital discipline , high performance drilling contractors like enzyme , who will whom also have a global footprint and are capable of delivering fast , safer and more cost effective wells on a consistent basis .

Speaker #3: We'll stay active well into the future. Anyway, with that, I'll close off and we'll look forward to our next column in three months.

Speaker #3: Thank you

Operator: Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect.

Q4 2025 Ensign Energy Services Inc Earnings Call

Request a DemoDemo

ESI

Ensign Energy Services

Earnings