Ensign Energy Services Inc
TSX:ESI
Ensign Energy Services Inc
Ensign Energy Services, Inc. engages in the provision oilfield services to the crude oil and natural gas industries. The company is headquartered in Calgary, Alberta and currently employs 1,165 full-time employees. The company offers land-based services to geothermal energy. The company provides a range of services, which includes contract drilling, directional drilling, underbalanced and managed pressure drilling, rental equipment, well servicing and production services. The company has operations in Canada and the United States to Latin America, the Middle East and Australia. The firm uses hybrid technology, which includes drilling rigs in its fleet which use natural gas and biofuel generators, as well as electric grid-tied power. The company provides automated drill rig and automated service rig technology suite. The automated drill rig is an agile rig to drill long lateral sections in horizontal wells. The automated service rig is an automated service rig for tubulars from the pipe rack to connection.
Ensign Energy Services, Inc. engages in the provision oilfield services to the crude oil and natural gas industries. The company is headquartered in Calgary, Alberta and currently employs 1,165 full-time employees. The company offers land-based services to geothermal energy. The company provides a range of services, which includes contract drilling, directional drilling, underbalanced and managed pressure drilling, rental equipment, well servicing and production services. The company has operations in Canada and the United States to Latin America, the Middle East and Australia. The firm uses hybrid technology, which includes drilling rigs in its fleet which use natural gas and biofuel generators, as well as electric grid-tied power. The company provides automated drill rig and automated service rig technology suite. The automated drill rig is an agile rig to drill long lateral sections in horizontal wells. The automated service rig is an automated service rig for tubulars from the pipe rack to connection.
Results: Ensign reported Q4 revenue of $418.8 million and full-year 2025 revenue of $1.64 billion, with adjusted EBITDA of $107.5 million in Q4 and $389.8 million for the year — management said results exceeded analyst estimates for the quarter and full year.
Debt focus: The company repaid $80.3 million of debt in 2025 (net decrease of $105 million after FX) and expects to reach its $600 million stated debt reduction target in the first half of 2026.
Activity mix: Total operating days were up 1% in Q4 (U.S. +14%, Canada and international -8% each); for the full year operating days were down 3% (U.S. +2%, Canada -3%, international -15%).
CapEx & guidance: Net capex was $35.3 million in Q4 and $183.7 million for 2025. 2026 budget: maintenance capex ~$161.4 million and selective upgrade capex ~$32.8 million (about $24 million customer funded).
Technology & margin upside: EDGE automation is now on ~60% of rigs globally; management said EDGE adds roughly $1,000–$2,600/day on high-spec triples (all incremental margin) and they expect to add ~10 EDGE-equipped rigs per year.
International & geopolitical risk: International fleet 25 rigs (13 active); Middle East operations are on a day-to-day 'yellow' alert with some rigs on standby but Kuwait and Oman rigs remain under contract; Ensign is operating two drilling rigs in Venezuela (the only ones active, per management).
Outlook: Management sees the drilling outlook as constructive given stronger commodity prices but cautioned geopolitical volatility and customer consolidation remain headwinds; capital allocation priority remains debt reduction.
