STAMPEDE DRILLING INC. ANNOUNCES 2024 ANNUAL AND FOURTH QUARTER RESULTS
Canada NewsWire
CALGARY, AB, March 13, 2025
CALGARY, AB, March 13, 2025 /CNW/ - Stampede Drilling Inc. ("Stampede" or the "Corporation") (TSXV: SDI) announces today its consolidated financial and operational results for the three and twelve month periods ended December 31, 2024.
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 as issued by the International Accounting Standards Board ("IFRS Accounting Standards"), the related management's discussion and analysis ("MD&A") and the annual information form ("AIF") for the year ended December 31, 2024. 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 per share amounts, number of drilling rigs, and operating days, or unless otherwise noted.
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.
FOURTH QUARTER 2024 OPERATIONAL HIGHLIGHTS
-- Revenue of $20,395 -- This represents a decrease of $1,099 or 5% from the
fourth quarter of 2023, primarily driven by a decrease in third party
rebills, and a decrease in revenue per day.
-- Gross Margin(1) of 33% -- This represents a decrease of 7% from 40% in
the corresponding 2023 period. The decrease was due to a reduction in
third party rebills, decrease in revenue per day, and an increase in
operating costs per day.
-- Net Income of $687 -- This represents a decrease of $2,550 or 79% from
the fourth quarter of 2023. The decrease was primarily related to the
decrease in operating margin, higher depreciation expense, and increased
income tax expense compared to the corresponding period of 2023.
-- Adjusted EBITDA(1) of $3,976 -- This represents a 37% decrease from the
fourth quarter of 2023. The decrease was a result of a reduction in third
party rebills, and a reduction in operating margin.
-- Free Cash Flow(1) of $1,780 -- This represents a decrease of $3,629 from
the fourth quarter of 2023, primarily related to a $2,307 decrease in
funds from operating activities, and an increase in maintenance and
sustaining capital compared to the corresponding 2023 period.
-- Repurchase of 4,017 common shares -- In the fourth quarter of 2024 the
Corporation repurchased and cancelled 4,017 common shares under its
normal course issuer bid ("NCIB") at a weighted average price per common
share of $0.19, for total consideration of $803. The total amount of
common shares repurchased and cancelled during the fourth quarter of 2024
represents 1.97% of the total issued and outstanding common shares of the
Corporation.
-- Capital Expenditures of $1,705 -- Capital expenditures for the fourth
quarter of 2024 were comprised of $363 of growth capital and $1,342 of
maintenance and sustaining capital.
2024 ANNUAL OPERATIONAL HIGHLIGHTS
-- Revenue of $82,074 -- This represents a 5% decrease as compared to 2023.
The decrease was primarily driven by a 7% decrease in operating days for
2024.
-- Gross Margin(1) of 33% -- This represents a decrease of 1% from 34% in
the corresponding 2023 period. The decrease was primarily due to the
reduction in operating days and revenue, resulting in an increase in
repair and maintenance costs per day.
-- Net Income of $5,163 -- This represents a 51% decrease from 2023. The
decrease was primarily related to decreased Adjusted EBITDA, along with
increased depreciation costs and income tax expense.
-- Adjusted EBITDA(1) of $17,475 -- This represents a 15% decrease as
compared to 2023. 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 $9,434 -- This represents a decrease of $1,941
primarily related to a $3,160 decrease in funds from operating activities,
along with an increase in principal and interest payments on the
Corporation's $20,000 non-revolving term loan.
-- Repurchase of 11,017 common shares -- In 2024, the Corporation
repurchased and cancelled 11,017 common shares under its NCIB at a
weighted average price per common share of $0.21, for total consideration
of $2,406. The total amount of common shares repurchased and cancelled
during the financial year ended December 31, 2024, represents 5.4% of the
total issued and outstanding common shares of the Corporation.
-- Capital Expenditures of $14,642 -- Capital expenditures for 2024 were
comprised of $10,971 of growth capital and $3,671 of maintenance and
sustaining capital.
OUTLOOK
Ongoing geopolitical challenges affecting global energy supply and demand are expected to continue to impact the volatility on commodity prices, which we anticipate continuing into 2025. However, increased tidewater access for Canadian producers from the startup of the Trans Mountain pipeline expansion during 2024 and LNG Canada planned for 2025 are anticipated to help alleviate some of these pressures.
The evolving political situations in Canada and the U.S. are causing uncertainty in the energy sector. Recently announced U.S. tariffs on steel and aluminum, as well as tariffs on Canadian energy imports, have led to Canadian retaliatory tariffs on certain U.S. imports. Despite the implementation of tariffs, price volatility, and other factors, Stampede anticipates modest growth in oilfield activity in Canada, with the potential for attractive returns for its shareholders.
Stampede had 14 out of its 19 rigs operational in the first quarter of 2025. Stampede anticipates building on this positive momentum into the back half of 2025. The Corporation ended 2024 with a debt to EBITDA ratio of 1.09x. Stampede continues to demonstrate prudent debt management, maintaining financial risk at manageable levels.
With the NCIB program renewed on June 3, 2024, the Corporation can further return value to shareholders through share repurchases, dependent on market conditions and growth prospects. Notably, since the inception of the Corporation's NCIB program in August 2023, the Corporation has repurchased 27,816 common shares, representing 12.2% of the Corporation's total issued and outstanding common shares, at an average price of $0.23 per share, returning a total of $6,426 to its shareholders.
FINANCIAL SUMMARY
Three months ended, Year ended,December 31
December 31
(000's CAD $ except per 2024 2023 % 2024 2023 %
share amounts) Change Change
Revenue 20,395 21,494 (5 %) 82,074 85,956 (5 %)
Direct operating
expenses 13,627 12,891 6 % 54,948 56,825 (3 %)
Gross margin(1) 6,768 8,603 (21 %) 27,126 29,131 (7 %)
Net income 687 3,237 (79 %) 5,163 10,504 (51 %)
Basic and diluted
income per share 0.00 0.01 0 % 0.02 0.05 (60 %)
Adjusted EBITDA(1) 3,976 6,287 (37 %) 17,475 20,479 (15 %)
Funds from operating
activities 3,980 6,287 (37 %) 17,271 20,431 (15 %)
Free cash flow(1) 1,780 5,409 (67 %) 9,434 11,375 (17 %)
Weighted average common
shares outstanding
(000's) 208,417 221,158 (6 %) 210,355 224,807 (6 %)
Weighted average
diluted common shares
outstanding
(000's) 208,426 222,453 (6 %) 210,540 227,206 (7 %)
Capital expenditures 1,705 4,818 (65 %) 14,642 14,455 1 %
Number of marketed rigs 19 19 0 % 19 19 0 %
Drilling rig
utilization(2) 46 % 46 % (0 %) 43 % 46 % (3 %)
CAOEC industry average
utilization(3) 44 % 36 % 8 % 43 % 35 % 8 %
(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 18 telescopic double drilling rigs and 1 high spec triple drilling rig 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".
RESULTS FROM OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2024
Year ended, December 31
(000's CAD $) 2024 2023 % Change
Revenue 82,074 85,956 (5 %)
Direct operating expenses 54,948 56,825 (3 %)
Gross margin(1) 27,126 29,131 (7 %)
Gross margin %(1) 33 % 34 % (1 %)
Net income 5,163 10,504 (51 %)
General and administrative expenses 11,311 10,088 12 %
Adjusted EBITDA(1) 17,475 20,479 (15 %)
Drilling rig operating days(2) 2,919 3,131 (7 %)
Drilling rig revenue per day(3) 28.1 27.5 2 %
Drilling rig utilization(4) 43 % 46 % (3 %)
CAOEC industry average utilization(5) 43 % 35 % 9 %
(1) Refer to "Non-GAAP and Other Financial Measures"
for further information.
(2) Defined as contract drilling days, between spud
to rig release.
(3) Drilling rig revenue per day is calculated by
revenue divided by drilling rig operating days.
(4) Drilling rig utilization is calculated based on
operating days (spud to rig release).
(5) 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.
-- Revenue of $82,074 -- a decrease of $3,882 (5%) from $85,956 in the
corresponding 2023 period. The decrease was primarily driven by a 7%
decrease in operating days for 2024.
-- Operating days of 2,919 -- a decrease of 212 operating days (7%) from
3,131 operating days in the corresponding 2023 period. Operating days
decreased due to customer consolidation, and drilling program deferrals
in 2024, resulting in lower drilling rig utilization compared to the
corresponding period of 2023.
-- Gross margin percentage of 33% -- a decrease of 1% from 34% in the
corresponding 2023 period. The gross margin decrease was primarily due to
the reduction in operating days and revenue, resulting in an increase in
repair and maintenance costs per day.
-- Net income of $5,163 -- a decrease of $5,341 (51%) from $10,504 in the
corresponding 2023 period. The decrease was primarily related to
decreased Adjusted EBITDA, along with increased depreciation costs and
income tax expense.
-- General and administrative expenses of $11,311 -- an increase of $1,223
(12%) from $10,088 in the corresponding 2023 period. The increase was
primarily related to increased worker compensation insurance, IT
implementation costs, and credit loss allowance in 2024.
-- Adjusted EBITDA of $17,475 -- a decrease of $3,004 (15%) from $20,479 in
the corresponding 2023 period. The decrease was primarily due to customer
drilling program deferrals and operator consolidation resulting in a
reduction in operating days, and operating margin.
RESULTS FROM OPERATIONS FOR THE THREE MONTH PERIOD ENDED DECEMBER 31, 2024
Three months ended, December 31
(000's CAD $) 2024 2023 % Change
Revenue 20,395 21,494 (5 %)
Direct operating expenses 13,627 12,891 6 %
Gross margin(1) 6,768 8,603 (21 %)
Gross margin %(1) 33 % 40 % (7 %)
Net Income 687 3,237 (79 %)
General and administrative expenses 3,128 2,514 24 %
Adjusted EBITDA(1) 3,976 6,287 (37 %)
Drilling rig operating days(2) 722 727 (1 %)
Drilling rig revenue per day(3) 28.3 29.6 (4 %)
Drilling rig utilization(4) 46 % 46 % (0 %)
CAOEC industry average utilization(5) 44 % 36 % 8 %
-- Revenue of $20,395 -- a decrease of $1,099 (5%) from $21,494 in the
corresponding 2023 period. The decrease was primarily due to a decrease
in third party rebills, and a decrease in revenue per day.
-- Operating days of 722 -- a decrease of 5 operating days (1%) from 727
operating days in the corresponding 2023 period. Operating days decreased
due to customer drilling program deferrals in the last quarter of 2024,
resulting in lower drilling rig utilization compared to the corresponding
period of 2023.
-- Gross margin percentage of 33% -- a decrease of 7% from 40% in the
corresponding 2023 period. The decrease was due to a reduction in third
party rebills, decrease in revenue per day, and an increase in operating
costs per day.
-- Net income of $687 -- a decrease of $2,550 (79%) from $3,237 in the
corresponding 2023 period. The decrease was primarily related to the
decrease in operating margin, higher deprecation expense, and increased
income tax expense compared to the corresponding period of 2023.
-- General and administrative expenses of $3,128 -- an increase of $614
(24%) from $2,514 in the corresponding 2023 period. The increase was
primarily related to increased worker compensation insurance, IT
implementation costs, and credit loss allowance in the last quarter of
2024.
-- Adjusted EBITDA of $3,976 -- a decrease of $2,311 (37%) from $6,287 in
the corresponding 2023 period. The decrease was a result of a reduction
in third party rebills, and a reduction in operating margin.
NON-GAAP AND OTHER FINANCIAL MEASURES
This press release contains references to (i) adjusted EBITDA, (ii) Gross margin (iii) Gross margin percentage and (iv) free cash flow. These financial measures are not measures that have any standardized meaning prescribed by IFRS Accounting Standards and are therefore referred to as non-generally accepted accounting principles ("non-GAAP") measures. The non-GAAP measures used by the Corporation may not be comparable to similar measures used by other companies.
(i) Adjusted EBITDA - is defined as "income from operations
before interest income, interest expense, taxes, transaction
costs, depreciation and amortization, share-based
compensation expense, gains on asset disposals, impairment
expenses, other income, foreign exchange, non-recurring
restructuring charges, finance costs, accretion of
debentures and other income/expenses, foreign exchange
gain and any other items that the Corporation considers
appropriate to adjust given the irregular nature and
relevance to comparable operations." Management believes
that in addition to net income, adjusted EBITDA is
a useful supplemental measure as it provides an indication
of the results generated by the Corporation's principal
business activities prior to consideration of how
these activities are financed, how assets are depreciated,
amortized and impaired, the impact of foreign exchange,
or how the results are affected by the accounting
standards associated with the Corporation's stock-based
compensation plan. Investors should be cautioned,
however, that adjusted EBITDA should not be construed
as an alternative to net income and comprehensive
income determined in accordance with IFRS Accounting
Standards as an indicator of the Corporation's performance.
The Corporation's method of calculating adjusted EBITDA
may differ from that of other organizations and, accordingly,
its adjusted EBITDA may not be comparable to that
of other companies.
Three months ended, December 31 Year ended, December 31
(000's CAD $) 2024 2023 % Change 2024 2023 % Change
Net income 687 3,237 (79 %) 5,163 10,504 (51 %)
Depreciation 2,300 1,898 21 % 8,781 7,076 24 %
Finance costs 449 504 (11 %) 1,983 1,974 0 %
Other income (11) (16) (31 %) (50) (31) 61 %
Income tax
expense 409 - nm 409 - nm
Loss (gain) on
asset
disposal - 555 nm (52) (91) (43 %)
Share-based
payments 192 92 109 % 1,199 1,009 19 %
Transaction
costs (3) 2 (250 %) 105 31 239 %
Foreign
exchange
(gain) loss (47) 15 (413 %) (63) 7 (1,000 %)
Adjusted
EBITDA 3,976 6,287 (37 %) 17,475 20,479 (15 %)
nm - not
meaningful
(ii) Gross margin - is defined as "Income from operations
before depreciation of property and equipment". Gross
margin is a measure that provides shareholders and
potential investors additional information regarding
the Corporation's cash generating and operating performance.
Management utilizes this measure to assess the Corporation's
operating performance. Readers should be cautioned,
however, that gross margin should not be construed
as an alternative to net income (loss) determined
in accordance with IFRS Accounting Standards as an
indicator of the Corporation's performance. The Corporation's
method of calculating gross margin may differ from
that of other organizations and, accordingly, its
gross margin may not be comparable to that of other
companies.
(iii) Gross margin percentage - is calculated as gross margin
divided by revenue. The Corporation believes gross
margin as a percentage of revenue is an important
measure to determine how the Corporation is managing
its revenues and corresponding cost of sales. The
Corporation's method of calculating gross margin percentage
may differ from that of other organizations and, accordingly,
its gross margin percentage may not be comparable
to that of other companies.
The following table reconciles the Corporation's income
from operations, being the most directly comparable
financial measure disclosed in the Corporation's financial
statements, to gross margin and gross margin percentage:
Three months ended, December 31 Year ended, December 31
(000's CAD $) 2024 2023 % Change 2024 2023 % Change
Income from
operations 4,612 6,811 (32 %) 18,806 22,482 (16 %)
Depreciation
of property
and equipment 2,156 1,792 20 % 8,320 6,649 25 %
Gross margin 6,768 8,603 (21 %) 27,126 29,131 (7 %)
Gross margin % 33 % 40 % (7 %) 33 % 34 % (1 %)
(iv) Free cash flow - is calculated based on funds from
operating activities less maintenance and sustaining
capital, and interest and principal debt repayments.
The Corporation uses this measure to assess the discretionary
cash that management has to invest in growth capital,
asset acquisitions, or return capital to shareholders.
The Corporation's method of calculating free cash
flow may differ from that of other organizations and,
accordingly, its free cash flow may not be comparable
to that of other companies. The following table reconciles
the Corporation's funds from operating activities
to free cash flow.
Three months ended, December 31 Year ended, December 31
(000's CAD $) 2024 2023 % Change 2024 2023 % Change
Funds from
operating
activities 3,980 6,287 (37 %) 17,271 20,431 (15 %)
Maintenance
and
sustaining
capital (1,342) (230) 483 % (3,671) (5,184) (29 %)
Interest paid
on Demand
Facility (78) (23) 239 % (271) $(588.SI)$ (54 %)
BDC principal - - nm - (1,500) nm
payments
Interest on - - nm - (91) nm
BDC loan
Term Loan
Facility
principal
payments (452) (199) 127 % (2,378) (699) 240 %
Interest on
Term Loan
Facility (328) (426) (23 %) (1,517) (994) 53 %
Total free
cash flow 1,780 5,409 (67 %) 9,434 11,375 (17 %)
nm - not
meaningful
SUPPLEMENTARY FINANCIAL MEASURES
The Corporation uses supplementary financial measures that are not defined terms under IFRS Accounting Standards to provide useful supplemental financial information to investors.
(i) Capital Expenditures -- management of the Corporation
uses a breakdown of capital expenditures to assess
the capital invested related to capital expenditures
at a more detailed level. Capital expenditures have
been split into two categories, growth capital, and
maintenance and sustaining capital. Growth capital
are expenditures incurred for the purposes of upgrading
existing equipment to improve operating efficiency
and marketability of the asset. Maintenance and sustaining
capital are expenditures related to maintaining the
current operational efficiency of the asset. The following
table shows the split of the two different types of
capital expenditures. The Corporation's method of
calculating capital expenditures may differ from that
of other organizations and, accordingly, its capital
expenditures may not be comparable to that of other
companies. The following table reconciles the Corporation's
total capital expenditures.
Year ended, December 31
(000's CAD $) 2024 2023 % Change
Capital expenditures:
Growth capital(1) 10,971 9,271 18 %
Maintenance and sustaining capital(1) 3,671 5,184 (29 %)
Total capital expenditures 14,642 14,455 1 %
FORWARD-LOOKING INFORMATION
Certain statements contained in this press release constitute forward-looking statements or forward-looking information (collectively, "forward-looking information"). Forward-looking information relates to future events or the Corporation's future performance. All information other than statements of historical fact is forward-looking information. The use of any of the words "anticipate", "plan", "contemplate", "continue", "estimate", "expect", "intend", "propose", "might", "may", "will", "could", "should", "believe", "predict", and "forecast" are intended to identify forward-looking information.
This press release contains forward-looking information pertaining to, among other things: the Corporation's performance; expectations associated with the Corporation's outlook, including, among other things, anticipated commodity prices, the volatility thereof and potential mitigating factors and expectations about industry activities and the impacts thereof on the Corporation; the return of value to shareholders through the Corporation's NCIB program; the assessment of additional acquisition opportunities by the Corporation; and expected impacts of tariffs on the Corporation and the industry in which it operates.
Forward-looking information is based on certain assumptions that Stampede has made in respect thereof as at the date of this press release regarding, among other things: the Corporation's ability to fully crew and contract its rigs; that market conditions and growth prospects will permit the return of value to shareholders through the Corporation's NCIB program; the success of the measures implemented by the Corporation to ensure the safe, efficient and reliable operations at each of its drilling sites; the creditworthiness of the Corporation's customers and counterparties; the effectiveness of the Corporation's financial risk management policies at ensuring all payables are paid within the pre-agreed credit terms; that the Corporation's critical accounting estimates and judgments are reasonable; that the Corporation has adequate access to its credit facilities to provide the necessary liquidity needed to manage fluctuations in the timing of receipt and/or disbursement of operating cash flows; the condition of the global economy, including certain geopolitical risks; the stability of the economic and political environment in which the Corporation operates; the ability of the Corporation to retain qualified staff; management's ability to crew underutilized assets; the ability of the Corporation to maintain key customers; the ability of the Corporation to obtain financing on acceptable terms; the belief that the Corporation's principal sources of liquidity will be sufficient to service its debt and fund its operations and other strategic opportunities; the ability of the Corporation to obtain financing on acceptable terms; the ability to protect and maintain the Corporation's intellectual property; the Corporation's ability to maintain financial resiliency in light of current macroeconomic conditions; and the regulatory framework regarding taxes and environmental matters in the jurisdictions in which the Corporation operates.
Forward-looking information is presented in this press release for the purpose of assisting investors and others in understanding certain key elements of the Corporation's financial results and business plan, as well as the objectives, strategic priorities and business outlook of the Corporation, and in obtaining a better understanding of the Corporation's anticipated operating environment. Readers are cautioned that such forward-looking information may not be appropriate for other purposes.
While Stampede believes the expectations and material factors and assumptions reflected in the forward-looking information is reasonable as of the date hereof, there can be no assurance that these expectations, factors and assumptions will prove to be correct. Forward-looking information is not a guarantee of future performance and actual results or events could differ materially from the expectations of the Corporation expressed in or implied by such forward-looking information. Accordingly, readers should not place undue reliance on forward-looking information. All forward-looking information is subject to a number of known and unknown risks and uncertainties including, but not limited to: the condition of the global economy, including trade, inflation, interest rates, the ongoing conflict in Ukraine, the Middle East and other geopolitical risks, including the imposition of tariffs and other non-trade barriers; the condition of the crude oil and natural gas industry and related commodity prices; other commodity prices and the potential impact on the Corporation and the industry in which the Corporation operates, including levels of exploration and development activities; the impact of increasing competition; fluctuations in operating results; the ongoing significant volatility in world markets and the resulting impact on drilling and completions programs; foreign currency exchange rates; interest rates; labour and material shortages; cyber security risks; natural catastrophes; and certain other risks and uncertainties detailed under the heading "Risks and Uncertainties" in the Corporation's MD&A and under the heading "Risk Factors" in the Corporation's AIF, each dated March 13, 2025 for the year ended December 31, 2024, and from time to time in Stampede's public disclosure documents available at www.sedarplus.ca.
This list of risk factors should not be construed as exhaustive. Readers are cautioned that events or circumstances could cause actual results to differ materially from those predicted, forecasted, or projected. Statements, including forward-looking information, are made as of the date of this press release and the Corporation does not undertake any obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws. The forward-looking information contained in this press release is expressly qualified by this cautionary statement.
SOURCE Stampede Drilling Inc.
View original content: http://www.newswire.ca/en/releases/archive/March2025/13/c9028.html
/CONTACT:
For further information, please contact: Lyle Whitmarsh, President & Chief Executive Officer, Stampede Drilling Inc., Tel: (403) 984-5042
Copyright CNW Group 2025
(END) Dow Jones Newswires
STAMPEDE DRILLING INC. ANNOUNCES 2024 ANNUAL AND FOURTH QUARTER RESULTS
Canada NewsWire
CALGARY, AB, March 13, 2025
CALGARY, AB, March 13, 2025 /CNW/ - Stampede Drilling Inc. ("Stampede" or the "Corporation") (TSXV: SDI) announces today its consolidated financial and operational results for the three and twelve month periods ended December 31, 2024.
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 as issued by the International Accounting Standards Board ("IFRS Accounting Standards"), the related management's discussion and analysis ("MD&A") and the annual information form ("AIF") for the year ended December 31, 2024. 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 per share amounts, number of drilling rigs, and operating days, or unless otherwise noted.
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.
FOURTH QUARTER 2024 OPERATIONAL HIGHLIGHTS
-- Revenue of $20,395 -- This represents a decrease of $1,099 or 5% from the
fourth quarter of 2023, primarily driven by a decrease in third party
rebills, and a decrease in revenue per day.
-- Gross Margin(1) of 33% -- This represents a decrease of 7% from 40% in
the corresponding 2023 period. The decrease was due to a reduction in
third party rebills, decrease in revenue per day, and an increase in
operating costs per day.
-- Net Income of $687 -- This represents a decrease of $2,550 or 79% from
the fourth quarter of 2023. The decrease was primarily related to the
decrease in operating margin, higher depreciation expense, and increased
income tax expense compared to the corresponding period of 2023.
-- Adjusted EBITDA(1) of $3,976 -- This represents a 37% decrease from the
fourth quarter of 2023. The decrease was a result of a reduction in third
party rebills, and a reduction in operating margin.
-- Free Cash Flow(1) of $1,780 -- This represents a decrease of $3,629 from
the fourth quarter of 2023, primarily related to a $2,307 decrease in
funds from operating activities, and an increase in maintenance and
sustaining capital compared to the corresponding 2023 period.
-- Repurchase of 4,017 common shares -- In the fourth quarter of 2024 the
Corporation repurchased and cancelled 4,017 common shares under its
normal course issuer bid ("NCIB") at a weighted average price per common
share of $0.19, for total consideration of $803. The total amount of
common shares repurchased and cancelled during the fourth quarter of 2024
represents 1.97% of the total issued and outstanding common shares of the
Corporation.
-- Capital Expenditures of $1,705 -- Capital expenditures for the fourth
quarter of 2024 were comprised of $363 of growth capital and $1,342 of
maintenance and sustaining capital.
2024 ANNUAL OPERATIONAL HIGHLIGHTS
-- Revenue of $82,074 -- This represents a 5% decrease as compared to 2023.
The decrease was primarily driven by a 7% decrease in operating days for
2024.
-- Gross Margin(1) of 33% -- This represents a decrease of 1% from 34% in
the corresponding 2023 period. The decrease was primarily due to the
reduction in operating days and revenue, resulting in an increase in
repair and maintenance costs per day.
-- Net Income of $5,163 -- This represents a 51% decrease from 2023. The
decrease was primarily related to decreased Adjusted EBITDA, along with
increased depreciation costs and income tax expense.
-- Adjusted EBITDA(1) of $17,475 -- This represents a 15% decrease as
compared to 2023. 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 $9,434 -- This represents a decrease of $1,941
primarily related to a $3,160 decrease in funds from operating activities,
along with an increase in principal and interest payments on the
Corporation's $20,000 non-revolving term loan.
-- Repurchase of 11,017 common shares -- In 2024, the Corporation
repurchased and cancelled 11,017 common shares under its NCIB at a
weighted average price per common share of $0.21, for total consideration
of $2,406. The total amount of common shares repurchased and cancelled
during the financial year ended December 31, 2024, represents 5.4% of the
total issued and outstanding common shares of the Corporation.
-- Capital Expenditures of $14,642 -- Capital expenditures for 2024 were
comprised of $10,971 of growth capital and $3,671 of maintenance and
sustaining capital.
OUTLOOK
Ongoing geopolitical challenges affecting global energy supply and demand are expected to continue to impact the volatility on commodity prices, which we anticipate continuing into 2025. However, increased tidewater access for Canadian producers from the startup of the Trans Mountain pipeline expansion during 2024 and LNG Canada planned for 2025 are anticipated to help alleviate some of these pressures.
The evolving political situations in Canada and the U.S. are causing uncertainty in the energy sector. Recently announced U.S. tariffs on steel and aluminum, as well as tariffs on Canadian energy imports, have led to Canadian retaliatory tariffs on certain U.S. imports. Despite the implementation of tariffs, price volatility, and other factors, Stampede anticipates modest growth in oilfield activity in Canada, with the potential for attractive returns for its shareholders.
Stampede had 14 out of its 19 rigs operational in the first quarter of 2025. Stampede anticipates building on this positive momentum into the back half of 2025. The Corporation ended 2024 with a debt to EBITDA ratio of 1.09x. Stampede continues to demonstrate prudent debt management, maintaining financial risk at manageable levels.
With the NCIB program renewed on June 3, 2024, the Corporation can further return value to shareholders through share repurchases, dependent on market conditions and growth prospects. Notably, since the inception of the Corporation's NCIB program in August 2023, the Corporation has repurchased 27,816 common shares, representing 12.2% of the Corporation's total issued and outstanding common shares, at an average price of $0.23 per share, returning a total of $6,426 to its shareholders.
FINANCIAL SUMMARY
Three months ended, Year ended,December 31
December 31
(000's CAD $ except per 2024 2023 % 2024 2023 %
share amounts) Change Change
Revenue 20,395 21,494 (5 %) 82,074 85,956 (5 %)
Direct operating
expenses 13,627 12,891 6 % 54,948 56,825 (3 %)
Gross margin(1) 6,768 8,603 (21 %) 27,126 29,131 (7 %)
Net income 687 3,237 (79 %) 5,163 10,504 (51 %)
Basic and diluted
income per share 0.00 0.01 0 % 0.02 0.05 (60 %)
Adjusted EBITDA(1) 3,976 6,287 (37 %) 17,475 20,479 (15 %)
Funds from operating
activities 3,980 6,287 (37 %) 17,271 20,431 (15 %)
Free cash flow(1) 1,780 5,409 (67 %) 9,434 11,375 (17 %)
Weighted average common
shares outstanding
(000's) 208,417 221,158 (6 %) 210,355 224,807 (6 %)
Weighted average
diluted common shares
outstanding
(000's) 208,426 222,453 (6 %) 210,540 227,206 (7 %)
Capital expenditures 1,705 4,818 (65 %) 14,642 14,455 1 %
Number of marketed rigs 19 19 0 % 19 19 0 %
Drilling rig
utilization(2) 46 % 46 % (0 %) 43 % 46 % (3 %)
CAOEC industry average
utilization(3) 44 % 36 % 8 % 43 % 35 % 8 %
(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 18 telescopic double drilling rigs and 1 high spec triple drilling rig 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".
RESULTS FROM OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2024
Year ended, December 31
(000's CAD $) 2024 2023 % Change
Revenue 82,074 85,956 (5 %)
Direct operating expenses 54,948 56,825 (3 %)
Gross margin(1) 27,126 29,131 (7 %)
Gross margin %(1) 33 % 34 % (1 %)
Net income 5,163 10,504 (51 %)
General and administrative expenses 11,311 10,088 12 %
Adjusted EBITDA(1) 17,475 20,479 (15 %)
Drilling rig operating days(2) 2,919 3,131 (7 %)
Drilling rig revenue per day(3) 28.1 27.5 2 %
Drilling rig utilization(4) 43 % 46 % (3 %)
CAOEC industry average utilization(5) 43 % 35 % 9 %
(1) Refer to "Non-GAAP and Other Financial Measures"
for further information.
(2) Defined as contract drilling days, between spud
to rig release.
(3) Drilling rig revenue per day is calculated by
revenue divided by drilling rig operating days.
(4) Drilling rig utilization is calculated based on
operating days (spud to rig release).
(5) 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.
-- Revenue of $82,074 -- a decrease of $3,882 (5%) from $85,956 in the
corresponding 2023 period. The decrease was primarily driven by a 7%
decrease in operating days for 2024.
-- Operating days of 2,919 -- a decrease of 212 operating days (7%) from
3,131 operating days in the corresponding 2023 period. Operating days
decreased due to customer consolidation, and drilling program deferrals
in 2024, resulting in lower drilling rig utilization compared to the
corresponding period of 2023.
-- Gross margin percentage of 33% -- a decrease of 1% from 34% in the
corresponding 2023 period. The gross margin decrease was primarily due to
the reduction in operating days and revenue, resulting in an increase in
repair and maintenance costs per day.
-- Net income of $5,163 -- a decrease of $5,341 (51%) from $10,504 in the
corresponding 2023 period. The decrease was primarily related to
decreased Adjusted EBITDA, along with increased depreciation costs and
income tax expense.
-- General and administrative expenses of $11,311 -- an increase of $1,223
(12%) from $10,088 in the corresponding 2023 period. The increase was
primarily related to increased worker compensation insurance, IT
implementation costs, and credit loss allowance in 2024.
-- Adjusted EBITDA of $17,475 -- a decrease of $3,004 (15%) from $20,479 in
the corresponding 2023 period. The decrease was primarily due to customer
drilling program deferrals and operator consolidation resulting in a
reduction in operating days, and operating margin.
RESULTS FROM OPERATIONS FOR THE THREE MONTH PERIOD ENDED DECEMBER 31, 2024
Three months ended, December 31
(000's CAD $) 2024 2023 % Change
Revenue 20,395 21,494 (5 %)
Direct operating expenses 13,627 12,891 6 %
Gross margin(1) 6,768 8,603 (21 %)
Gross margin %(1) 33 % 40 % (7 %)
Net Income 687 3,237 (79 %)
General and administrative expenses 3,128 2,514 24 %
Adjusted EBITDA(1) 3,976 6,287 (37 %)
Drilling rig operating days(2) 722 727 (1 %)
Drilling rig revenue per day(3) 28.3 29.6 (4 %)
Drilling rig utilization(4) 46 % 46 % (0 %)
CAOEC industry average utilization(5) 44 % 36 % 8 %
-- Revenue of $20,395 -- a decrease of $1,099 (5%) from $21,494 in the
corresponding 2023 period. The decrease was primarily due to a decrease
in third party rebills, and a decrease in revenue per day.
-- Operating days of 722 -- a decrease of 5 operating days (1%) from 727
operating days in the corresponding 2023 period. Operating days decreased
due to customer drilling program deferrals in the last quarter of 2024,
resulting in lower drilling rig utilization compared to the corresponding
period of 2023.
-- Gross margin percentage of 33% -- a decrease of 7% from 40% in the
corresponding 2023 period. The decrease was due to a reduction in third
party rebills, decrease in revenue per day, and an increase in operating
costs per day.
-- Net income of $687 -- a decrease of $2,550 (79%) from $3,237 in the
corresponding 2023 period. The decrease was primarily related to the
decrease in operating margin, higher deprecation expense, and increased
income tax expense compared to the corresponding period of 2023.
-- General and administrative expenses of $3,128 -- an increase of $614
(24%) from $2,514 in the corresponding 2023 period. The increase was
primarily related to increased worker compensation insurance, IT
implementation costs, and credit loss allowance in the last quarter of
2024.
-- Adjusted EBITDA of $3,976 -- a decrease of $2,311 (37%) from $6,287 in
the corresponding 2023 period. The decrease was a result of a reduction
in third party rebills, and a reduction in operating margin.
NON-GAAP AND OTHER FINANCIAL MEASURES
This press release contains references to (i) adjusted EBITDA, (ii) Gross margin (iii) Gross margin percentage and (iv) free cash flow. These financial measures are not measures that have any standardized meaning prescribed by IFRS Accounting Standards and are therefore referred to as non-generally accepted accounting principles ("non-GAAP") measures. The non-GAAP measures used by the Corporation may not be comparable to similar measures used by other companies.
(i) Adjusted EBITDA - is defined as "income from operations
before interest income, interest expense, taxes, transaction
costs, depreciation and amortization, share-based
compensation expense, gains on asset disposals, impairment
expenses, other income, foreign exchange, non-recurring
restructuring charges, finance costs, accretion of
debentures and other income/expenses, foreign exchange
gain and any other items that the Corporation considers
appropriate to adjust given the irregular nature and
relevance to comparable operations." Management believes
that in addition to net income, adjusted EBITDA is
a useful supplemental measure as it provides an indication
of the results generated by the Corporation's principal
business activities prior to consideration of how
these activities are financed, how assets are depreciated,
amortized and impaired, the impact of foreign exchange,
or how the results are affected by the accounting
standards associated with the Corporation's stock-based
compensation plan. Investors should be cautioned,
however, that adjusted EBITDA should not be construed
as an alternative to net income and comprehensive
income determined in accordance with IFRS Accounting
Standards as an indicator of the Corporation's performance.
The Corporation's method of calculating adjusted EBITDA
may differ from that of other organizations and, accordingly,
its adjusted EBITDA may not be comparable to that
of other companies.
Three months ended, December 31 Year ended, December 31
(000's CAD $) 2024 2023 % Change 2024 2023 % Change
Net income 687 3,237 (79 %) 5,163 10,504 (51 %)
Depreciation 2,300 1,898 21 % 8,781 7,076 24 %
Finance costs 449 504 (11 %) 1,983 1,974 0 %
Other income (11) (16) (31 %) (50) (31) 61 %
Income tax
expense 409 - nm 409 - nm
Loss (gain) on
asset
disposal - 555 nm (52) (91) (43 %)
Share-based
payments 192 92 109 % 1,199 1,009 19 %
Transaction
costs (3) 2 (250 %) 105 31 239 %
Foreign
exchange
(gain) loss (47) 15 (413 %) (63) 7 (1,000 %)
Adjusted
EBITDA 3,976 6,287 (37 %) 17,475 20,479 (15 %)
nm - not
meaningful
(ii) Gross margin - is defined as "Income from operations
before depreciation of property and equipment". Gross
margin is a measure that provides shareholders and
potential investors additional information regarding
the Corporation's cash generating and operating performance.
Management utilizes this measure to assess the Corporation's
operating performance. Readers should be cautioned,
however, that gross margin should not be construed
as an alternative to net income (loss) determined
in accordance with IFRS Accounting Standards as an
indicator of the Corporation's performance. The Corporation's
method of calculating gross margin may differ from
that of other organizations and, accordingly, its
gross margin may not be comparable to that of other
companies.
(iii) Gross margin percentage - is calculated as gross margin
divided by revenue. The Corporation believes gross
margin as a percentage of revenue is an important
measure to determine how the Corporation is managing
its revenues and corresponding cost of sales. The
Corporation's method of calculating gross margin percentage
may differ from that of other organizations and, accordingly,
its gross margin percentage may not be comparable
to that of other companies.
The following table reconciles the Corporation's income
from operations, being the most directly comparable
financial measure disclosed in the Corporation's financial
statements, to gross margin and gross margin percentage:
Three months ended, December 31 Year ended, December 31
(000's CAD $) 2024 2023 % Change 2024 2023 % Change
Income from
operations 4,612 6,811 (32 %) 18,806 22,482 (16 %)
Depreciation
of property
and equipment 2,156 1,792 20 % 8,320 6,649 25 %
Gross margin 6,768 8,603 (21 %) 27,126 29,131 (7 %)
Gross margin % 33 % 40 % (7 %) 33 % 34 % (1 %)
(iv) Free cash flow - is calculated based on funds from
operating activities less maintenance and sustaining
capital, and interest and principal debt repayments.
The Corporation uses this measure to assess the discretionary
cash that management has to invest in growth capital,
asset acquisitions, or return capital to shareholders.
The Corporation's method of calculating free cash
flow may differ from that of other organizations and,
accordingly, its free cash flow may not be comparable
to that of other companies. The following table reconciles
the Corporation's funds from operating activities
to free cash flow.
Three months ended, December 31 Year ended, December 31
(000's CAD $) 2024 2023 % Change 2024 2023 % Change
Funds from
operating
activities 3,980 6,287 (37 %) 17,271 20,431 (15 %)
Maintenance
and
sustaining
capital (1,342) (230) 483 % (3,671) (5,184) (29 %)
Interest paid
on Demand
Facility (78) (23) 239 % (271) (588) (54 %)
BDC principal - - nm - (1,500) nm
payments
Interest on - - nm - (91) nm
BDC loan
Term Loan
Facility
principal
payments (452) (199) 127 % (2,378) (699) 240 %
Interest on
Term Loan
Facility (328) (426) (23 %) (1,517) (994) 53 %
Total free
cash flow 1,780 5,409 (67 %) 9,434 11,375 (17 %)
nm - not
meaningful
SUPPLEMENTARY FINANCIAL MEASURES
The Corporation uses supplementary financial measures that are not defined terms under IFRS Accounting Standards to provide useful supplemental financial information to investors.
(i) Capital Expenditures -- management of the Corporation
uses a breakdown of capital expenditures to assess
the capital invested related to capital expenditures
at a more detailed level. Capital expenditures have
been split into two categories, growth capital, and
maintenance and sustaining capital. Growth capital
are expenditures incurred for the purposes of upgrading
existing equipment to improve operating efficiency
and marketability of the asset. Maintenance and sustaining
capital are expenditures related to maintaining the
current operational efficiency of the asset. The following
table shows the split of the two different types of
capital expenditures. The Corporation's method of
calculating capital expenditures may differ from that
of other organizations and, accordingly, its capital
expenditures may not be comparable to that of other
companies. The following table reconciles the Corporation's
total capital expenditures.
Year ended, December 31
(000's CAD $) 2024 2023 % Change
Capital expenditures:
Growth capital(1) 10,971 9,271 18 %
Maintenance and sustaining capital(1) 3,671 5,184 (29 %)
Total capital expenditures 14,642 14,455 1 %
FORWARD-LOOKING INFORMATION
Certain statements contained in this press release constitute forward-looking statements or forward-looking information (collectively, "forward-looking information"). Forward-looking information relates to future events or the Corporation's future performance. All information other than statements of historical fact is forward-looking information. The use of any of the words "anticipate", "plan", "contemplate", "continue", "estimate", "expect", "intend", "propose", "might", "may", "will", "could", "should", "believe", "predict", and "forecast" are intended to identify forward-looking information.
This press release contains forward-looking information pertaining to, among other things: the Corporation's performance; expectations associated with the Corporation's outlook, including, among other things, anticipated commodity prices, the volatility thereof and potential mitigating factors and expectations about industry activities and the impacts thereof on the Corporation; the return of value to shareholders through the Corporation's NCIB program; the assessment of additional acquisition opportunities by the Corporation; and expected impacts of tariffs on the Corporation and the industry in which it operates.
Forward-looking information is based on certain assumptions that Stampede has made in respect thereof as at the date of this press release regarding, among other things: the Corporation's ability to fully crew and contract its rigs; that market conditions and growth prospects will permit the return of value to shareholders through the Corporation's NCIB program; the success of the measures implemented by the Corporation to ensure the safe, efficient and reliable operations at each of its drilling sites; the creditworthiness of the Corporation's customers and counterparties; the effectiveness of the Corporation's financial risk management policies at ensuring all payables are paid within the pre-agreed credit terms; that the Corporation's critical accounting estimates and judgments are reasonable; that the Corporation has adequate access to its credit facilities to provide the necessary liquidity needed to manage fluctuations in the timing of receipt and/or disbursement of operating cash flows; the condition of the global economy, including certain geopolitical risks; the stability of the economic and political environment in which the Corporation operates; the ability of the Corporation to retain qualified staff; management's ability to crew underutilized assets; the ability of the Corporation to maintain key customers; the ability of the Corporation to obtain financing on acceptable terms; the belief that the Corporation's principal sources of liquidity will be sufficient to service its debt and fund its operations and other strategic opportunities; the ability of the Corporation to obtain financing on acceptable terms; the ability to protect and maintain the Corporation's intellectual property; the Corporation's ability to maintain financial resiliency in light of current macroeconomic conditions; and the regulatory framework regarding taxes and environmental matters in the jurisdictions in which the Corporation operates.
Forward-looking information is presented in this press release for the purpose of assisting investors and others in understanding certain key elements of the Corporation's financial results and business plan, as well as the objectives, strategic priorities and business outlook of the Corporation, and in obtaining a better understanding of the Corporation's anticipated operating environment. Readers are cautioned that such forward-looking information may not be appropriate for other purposes.
While Stampede believes the expectations and material factors and assumptions reflected in the forward-looking information is reasonable as of the date hereof, there can be no assurance that these expectations, factors and assumptions will prove to be correct. Forward-looking information is not a guarantee of future performance and actual results or events could differ materially from the expectations of the Corporation expressed in or implied by such forward-looking information. Accordingly, readers should not place undue reliance on forward-looking information. All forward-looking information is subject to a number of known and unknown risks and uncertainties including, but not limited to: the condition of the global economy, including trade, inflation, interest rates, the ongoing conflict in Ukraine, the Middle East and other geopolitical risks, including the imposition of tariffs and other non-trade barriers; the condition of the crude oil and natural gas industry and related commodity prices; other commodity prices and the potential impact on the Corporation and the industry in which the Corporation operates, including levels of exploration and development activities; the impact of increasing competition; fluctuations in operating results; the ongoing significant volatility in world markets and the resulting impact on drilling and completions programs; foreign currency exchange rates; interest rates; labour and material shortages; cyber security risks; natural catastrophes; and certain other risks and uncertainties detailed under the heading "Risks and Uncertainties" in the Corporation's MD&A and under the heading "Risk Factors" in the Corporation's AIF, each dated March 13, 2025 for the year ended December 31, 2024, and from time to time in Stampede's public disclosure documents available at www.sedarplus.ca.
This list of risk factors should not be construed as exhaustive. Readers are cautioned that events or circumstances could cause actual results to differ materially from those predicted, forecasted, or projected. Statements, including forward-looking information, are made as of the date of this press release and the Corporation does not undertake any obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws. The forward-looking information contained in this press release is expressly qualified by this cautionary statement.
SOURCE Stampede Drilling Inc.
View original content: http://www.newswire.ca/en/releases/archive/March2025/13/c9028.html
/CONTACT:
For further information, please contact: Lyle Whitmarsh, President & Chief Executive Officer, Stampede Drilling Inc., Tel: (403) 984-5042
Copyright CNW Group 2025
(END) Dow Jones Newswires
March 13, 2025 17:05 ET (21:05 GMT)
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