Ensign Energy Services Inc. Reports 2016 Third Quarter Results

CALGARY, Nov. 8, 2016

OVERVIEW

Revenue for the third quarter of 2016 was $191.3 million, a decrease of 41 percent from revenue for the third quarter of 2015 of $324.0 million. Revenue for the nine months ended September 30, 2016 was $625.7 million, a decrease of 43 percent from revenue for the nine months ended September 30, 2015 of $1,107.1 million. Revenue, net of third party, for the third quarter of 2016 was $168.1 million, a decrease of 42 percent from Revenue, net of third party, for the third quarter of 2015 of $289.3 million. Revenue, net of third party, for the nine months ended September 30, 2016 was $551.4 million, a decrease of 44 percent from Revenue, net of third party, for the nine months ended September 30, 2015 of $982.2 million.      

Adjusted EBITDA totaled $42.5 million ($0.28 per common share) in the third quarter of 2016, 39 percent lower than Adjusted EBITDA of $69.2 million ($0.45 per common share) in the third quarter of 2015. For the first nine months of 2016, Adjusted EBITDA totaled $133.5 million ($0.88 per common share), 47 percent lower than Adjusted EBITDA of $253.7 million ($1.66 per common share) in the first nine months of 2015.

Net loss for the third quarter of 2016 was $33.7 million ($0.22 per common share) compared to a net loss of $77.3 million ($0.51 per common share) for the third quarter of 2015. Net loss for the nine months ended September 30, 2016 was $88.6 million ($0.58 per common share), compared to net loss of $62.9 million ($0.41 per common share) for the nine months ended September 30, 2015. Adjusted net loss for the third quarter of 2016 was $36.5 million ($0.24 per common share) compared to Adjusted net loss of $31.5 million for the third quarter of 2015 ($0.22 per common share). For the nine months ended September 30, 2016, Adjusted net loss was $96.6 million ($0.63 per common share), compared to Adjusted net loss of $0.8 million ($0.01 per common share) for the nine months ended September 30, 2015.

Funds from operations decreased 56 percent to $30.3 million ($0.20 per common share) in the third quarter of 2016 compared to $68.2 million ($0.45 per common share) in the third quarter of the prior year. Funds from operations decreased 51 percent to $121.8 million ($0.80 per common share) in the first nine months of 2016 compared to $247.4 million ($1.62 per common share) in the first nine months of the prior year.

Operating days across the Company's fleet were lower in the third quarter of 2016 when compared to the third quarter of 2015 due to weaker demand for oilfield services caused by continued relatively low crude oil and natural gas commodity prices. A strengthening year-over-year of the United States dollar against the Canadian dollar positively impacted United States and international financial results on translation to Canadian dollars. The average United States exchange rate was 1.32 for the first nine months of 2016 (first nine months of 2015 - 1.26) versus the Canadian dollar, an increase of five percent, compared to the first nine months of 2015.