Ensign Energy Services Inc.

Ensign reported second-quarter 2026 revenue of $397.3 million, up 7% from $372.4 million a year ago. Adjusted EBITDA was $85.8 million, up 6% from $81.4 million in Q2 2025. For the first six months of 2026, revenue was $815.4 million, up 1% from $808.9 million, and adjusted EBITDA was $180.7 million, down 2% from $183.7 million. Interest expense fell 13% to $16.1 million from $18.6 million, and the company repaid $30 million of debt in the quarter and $37 million in the first half. Looking ahead, management said 2026 maintenance capital is set at approximately $162 million and selective upgrade capital at approximately $95.8 million, of which $68.6 million is customer funded. The company revised its previously announced 2026 debt-reduction target from $125 million to a net $60 million because of the Citadel acquisition and reinvestment, and said liquidity is expected to end 2026 in the low $90 million range.

Bob Geddes emphasized that Ensign is benefiting from a constructive commodity backdrop, tighter supply of high-spec rigs, and stronger customer demand, especially in the U.S. and Canada. He said the company is reactivating and upgrading rigs, expanding its contract runway, and positioning to capture more value through higher rates as market conditions tighten. His tone was confident but measured, repeatedly noting that pricing remains volatile even as the long-term setup looks favorable.

Trevor Russell focused on the financial lift from higher activity, noting that Q2 operating days were up year over year in Canada, the U.S., and internationally and that the revenue and adjusted EBITDA gains were primarily driven by higher operating activity. He also flagged cost pressures, including an 8% increase in G&A in Q2 from wage inflation, while interest expense fell 13% to $16.1 million due to lower debt and lower effective rates. On capital allocation, he said $30 million of debt was repaid in Q2, 2026 maintenance capex is approximately $162 million, selective upgrade capex is approximately $95.8 million, and $68.6 million of that upgrade spend is customer funded.

Analysts pressed management on the Citadel acquisition, asking what it adds to the fleet, how the contracts look, and what capital will be required. Management said the deal adds 6 fully utilized 2,000-horsepower rigs, strengthens its Permian presence to about 11% from roughly 7% to 8%, and is not yet something they can fully quantify financially before close. Questions also focused on pricing: management described U.S. pricing as firmer than Canada, said Canada is seeing better pricing on high-spec rigs but still flatter overall, and noted that public-company demand is improving but private companies remain the bigger source of incremental demand.