STAMPEDE DRILLING INC. ANNOUNCES 2025 SECOND QUARTER RESULTS
CALGARY, AB, July 31, 2025 /CNW/ - Stampede Drilling Inc. ("Stampede" or the "Corporation") (TSXV:SDI) announces today its consolidated financial and operational results for the three and six month periods ended June 30, 2025.
The following press release should be read in conjunction with the December 31, 2024 audited consolidated financial statements prepared in accordance with International Financial Reporting Standards (IFRS) applicable to the preparation of interim financial statements, under International Accounting Standard 34, Interim Financial Reporting (together, "IFRS Accounting Standards"), and the annual information form ("AIF") for the year ended December 31, 2024, as well as the unaudited condensed consolidated interim financial statements and notes for the three and six month periods ended June 30, 2025 and 2024 and management's discussion and analysis thereon. Additional information regarding Stampede, including the AIF, is available on SEDAR+ at www.sedarplus.ca.
All amounts or dollar figures are denominated in thousands of Canadian dollars except for number of drilling rigs, operating days, or unless otherwise noted. All share amounts are presented to the nearest thousand.
Estimates and forward-looking information are based on assumptions of future events and actual results may vary from these estimates. See "Forward-Looking Information" in this press release for additional details.
SECOND QUARTER 2025 OPERATIONAL HIGHLIGHTS
Revenue of $6,009, a decrease of $3,909 (39%) from $9,918 in the corresponding 2024 period. The decrease was primarily due to the decreased number of operating days.
Gross Margin(1) of 16%, a decrease of 14% from 30% in the corresponding 2024 period. The decrease was primarily due to the reduction in operating days and revenue, along with an increase in repair and maintenance costs per day.
Net Loss of $2,996, a decrease of $748 (33%) from $2,248 in the corresponding 2024 period. The decrease was primarily due to an increase in depreciation offset by a recovery on deferred income tax expense compared to the corresponding period of 2024.
Adjusted EBITDA(1) of ($609), a decrease of $1,543 (165%) from $934 in the corresponding 2024 period. The decrease was primarily due to customer drilling program deferrals and operator consolidation, which resulted in a reduction in operating days and operating margin.
Free Cash Flow(1) of ($2,301), a decrease of $(1,460) (174%) from ($841) in the corresponding 2024 period, primarily due to a decrease in funds from operating activities compared to the corresponding 2024 period.
Repurchase of 3,125 common shares, In the second quarter of 2025, the Corporation repurchased and cancelled 3,125 common shares under its normal course issuer bid ("NCIB"), representing 13.4% of its issued and outstanding common shares as at June 30, 2025, at a weighted average price per common share of $0.14, for total consideration of $438. The Corporation's NCIB expired on June 2, 2025.
OUTLOOK
Commodity pricing continued to be volatile throughout the second quarter of 2025. Ongoing geopolitical challenges affecting global energy supply and demand are expected to continue to impact commodity pricing, which we anticipate continuing for the back half of 2025 and into 2026. However, increased tidewater access for Canadian producers from the startup of the Trans Mountain pipeline expansion during 2024 and LNG Canada commencing operations in 2025 are anticipated to help alleviate some of these pressures.
Despite the continued pressure on our customers 2025 capital budgets due to the continued commodity pricing volatility, Stampede had 14 out of its 17 marketable rigs operational during the first half of 2025. Stampede anticipates building on this positive momentum into the back half of 2025.
On July 21, 2025, with the support of its banking syndicate, Stampede extended the term of its Credit Agreement (as defined herein) from September 20, 2026, to September 20, 2028. Under the Credit Agreement, the total $50 million facility remains unchanged consisting of a $20 million non-revolving term loan and two separate $15 million revolving credit facilities. The extension of the Credit Facilities (as defined herein) will allow Stampede to continue to pursue further growth opportunities and potential returns to our shareholders.
(1), Refer to "Non-GAAP and Other Financial Measures" for further information.
FINANCIAL SUMMARY
Three months ended, June 30
Six months ended, June 30
(000's CAD $ except per share amounts)
2025
2024
% Change
2025
2024
% Change
Revenue
6,009
9,918
(39 %)
29,416
37,417
(21 %)
Direct operating expenses
5,049
6,980
(28 %)
20,588
24,566
(16 %)
Gross margin(1)
960
2,938
(67 %)
8,828
12,851
(31 %)
Net (loss) income
(2,996)
(2,248)
33 %
(1,559)
2,691
(158 %)
Basic and diluted (loss) income per share
(0.01)
(0.01)
nm
(0.01)
0.01
nm
Adjusted EBITDA (loss)(1)
(609)
934
(165 %)
4,506
8,596
(48 %)
Funds (used in) from operating activities
(728)
905
(180 %)
4,373
8,516
(49 %)
Free cash flow(1)
(2,301)
(841)
nm
1,589
4,307
(63 %)
Weighted average common shares outstanding (000's)
199,942
213,557
(6 %)
201,992
212,417
(5 %)
Weighted average diluted common shares outstanding (000's)
199,942
213,557
(6 %)
201,992
212,728
(5 %)
Capital expenditures
4,439
3,632
22 %
9,231
9,812
(6 %)
Number of marketed rigs
17
19
(11 %)
17
19
(11 %)
Drilling rig utilization(2)
15 %
20 %
(5 %)
34 %
38 %
(4 %)
CAOEC industry average utilization(3)
30 %
30 %
nm
42 %
40 %
2 %
nm - not meaningful
(1) Refer to "Non-GAAP and Other Financial Measures" for further information.(2) Drilling rig utilization is calculated based on operating days (spud to rig release).(3) Source: The Canadian Association of Energy Contractors ("CAOEC") monthly Contractor Summary. The CAOEC industry average is based on operating days divided by total available drilling days.
DESCRIPTION OF STAMPEDE'S BUSINESS
Stampede is an energy services company that provides premier contract drilling services in Western Canada. Stampede operates a fleet of 17 marketable telescopic double drilling rigs suited for most formations within the Western Canadian Sedimentary Basin ("WCSB"). The Corporation's head office is located in Calgary, Alberta with operations based out of Nisku, Alberta and Estevan, Saskatchewan. The Corporation's common shares trade on the TSX Venture Exchange (the "TSXV") under the symbol "SDI".
RECENT DEVELOPMENTS
On July 21, 2025, the Corporation entered into an amending agreement (the "First Amending Agreement") to its amended and restated credit agreement with Royal Bank of Canada and The Toronto-Dominion Bank originally made as of September 20, 2023 and amended and restated as of August 21, 2024 (as amended by the First Amending Agreement, the "Credit Agreement"), extending ...
