Ensign Energy Services (ESI) AI Stock Analysis

• Market Cap: C$600.87M
• Dividend Yield: N/A
• Average Volume (3M): 164.91K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.66
• Revenue Growth: -2.47%
• EPS Growth: -246.73%
• Country: CA
• Employees: 4,160
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Drilling
• EPS (TTM): -0.02
• Shares Outstanding: 184,884,160
• 10 Day Avg. Volume: 151,251
• 30 Day Avg. Volume: 164,913
• PEG Ratio: 0.18
• Price to Book (P/B): 0.40
• Price to Sales (P/S): 0.33
• P/FCF Ratio: 1.87
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$3.17
• Price Target Upside: 1.60% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: C$3.50 ▲(12.18% Upside)

Ensign Energy Services' overall score is driven by mixed financial performance and valuation concerns, offset by positive technical indicators and strategic initiatives highlighted in the earnings call. The company's focus on debt reduction and securing long-term contracts provides a cautiously optimistic outlook, but challenges in profitability and revenue growth remain significant.

Positive Factors

Long-term contracted revenue

A >$1.1B forward contract backlog with a $300M long-term contract margin provides durable revenue visibility and utilization support. This backlog de-risks near-term demand swings, smooths cash flows and underpins medium-term planning and capital allocation through improved predictability.

Debt reduction plan and execution

Active deleveraging materially improves financial flexibility and lowers interest burden over time. Demonstrated paydown and a clear $600M target support continued interest expense reduction, stronger covenant headroom and greater capacity to invest in high-return rigs or technology without refinancing risk.

Operational efficiency (EBITDA margin)

A ~23% EBITDA margin signals durable operational leverage in drilling services despite revenue pressure. Strong core margins indicate effective cost management and crew/asset productivity, enabling the company to convert activity into operating profit and sustain investment in technology and maintenance.

Negative Factors

Declining revenue and negative net margin

Persisting revenue declines and a negative net margin undermine free cash flow expansion and reinvestment capacity. Continued top-line weakness compresses scale benefits, limits ability to cover fixed costs, and can constrain long-term competitiveness unless revenue trends reverse.

International operating days decline

A steep drop in international operating days reduces geographic diversification and idle capacity risk. Prolonged international softness can force asset reallocation or idling, increase unit costs, and diminish revenue resilience if recovery timelines remain uncertain.

U.S. well servicing weakness

A 24% drop in U.S. well servicing activity hits a complementary, often higher-margin revenue stream. Regional weakness can erode cross-selling, lower overall utilization of well service rigs, and pressure margins and cash generation in North America where a large share of revenue is sourced.

Ensign Energy Services Business Overview & Revenue Model

Company Description

Ensign Energy Services Inc., together with its subsidiaries, provides oilfield services to the crude oil and natural gas industries in Canada, the United States, and internationally. The company offers shallow, intermediate, and deep well drilling, as well as specialized drilling services, including horizontal, underbalanced, horizontal re-entry, and slant drilling for steam assisted gravity drainage applications; and equipment and services. It also provides coring and oil sands drilling services to the mining, and oil and natural gas industries; directional drilling and related services for conventional and horizontal drilling applications; shallow to deep well services, such as completions, abandonments, production workovers, and bottom hole pump changes for oil and natural gas producers; and interactive pressure drilling services with self-contained systems comprising nitrogen generation and compression equipment, and surface control systems. In addition, the company rents drill strings, loaders, tanks, pumps, rig mattings, blow-out preventers, waste bins, and wastewater treatment equipment for the drilling and completions segments of the oilfield industry. Further, the company offers transportation services. As of December 31, 2021, it operated a fleet of 262 land drilling rigs, 21 specialty coring rigs, and 100 well servicing rigs. The company was incorporated in 1987 and is headquartered in Calgary, Canada.

How the Company Makes Money

Ensign Energy Services generates revenue primarily through its various service offerings in the oil and gas industry. The main revenue streams include contract drilling services, which involve providing drilling rigs and crews to oil and gas companies on a contractual basis, and completions services that assist in the final stages of well preparation. Additionally, the company earns income from its well servicing operations, which involve maintenance and repair of existing wells. Ensign's revenue is also bolstered by strategic partnerships with major oil and gas operators, allowing them to secure long-term contracts and increase their market presence. Factors such as global oil prices, demand for energy, and technological advancements in drilling techniques significantly influence their earnings and financial performance.

Ensign Energy Services Financial Statement Overview

Summary

Ensign Energy Services faces challenges with declining revenues and profitability, as reflected in the income statement. The balance sheet shows moderate leverage with a stable equity ratio, but negative returns on equity highlight profitability issues. Cash flow remains relatively strong, providing some stability despite negative net income. Overall, the company needs to address revenue growth and profitability to improve its financial standing.

Income Statement

Ensign Energy Services shows a declining revenue trend with a negative revenue growth rate of -1.41% in TTM. The company struggles with profitability, as indicated by a negative net profit margin of -2.25% and declining gross profit margins. However, the EBITDA margin remains relatively strong at 23.30%, suggesting operational efficiency despite the challenging market conditions.

Balance Sheet

The balance sheet reflects moderate leverage with a debt-to-equity ratio of 0.77, which is an improvement from previous years. However, the return on equity is negative at -2.80%, indicating challenges in generating returns for shareholders. The equity ratio stands at 47.68%, showing a stable capital structure.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth at -2.76% in TTM, but the company maintains a healthy operating cash flow to net income ratio of 0.91. The free cash flow to net income ratio is 0.58, indicating that the company generates sufficient cash flow relative to its net income, despite the negative net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.65B	1.68B	1.79B	1.58B	995.59M	936.82M
Gross Profit	103.80M	151.74M	240.87M	141.11M	-36.79M	-96.09M
EBITDA	366.56M	429.44M	481.91M	402.84M	202.14M	374.79M
Net Income	-46.19M	-20.75M	41.24M	8.13M	-156.01M	-66.74M
Balance Sheet
Total Assets	2.75B	2.91B	2.95B	3.18B	2.98B	3.05B
Cash, Cash Equivalents and Short-Term Investments	16.73M	28.11M	20.50M	49.88M	13.30M	44.20M
Total Debt	977.53M	1.08B	1.23B	1.46B	1.46B	1.40B
Total Liabilities	1.44B	1.54B	1.64B	1.90B	1.78B	1.69B
Stockholders Equity	1.31B	1.37B	1.31B	1.29B	1.19B	1.37B
Cash Flow
Free Cash Flow	218.77M	293.13M	184.46M	145.57M	113.39M	196.73M
Operating Cash Flow	410.56M	471.79M	360.30M	319.96M	178.64M	246.97M
Investing Cash Flow	-154.43M	-130.79M	-152.63M	-121.46M	-174.59M	-50.24M
Financing Cash Flow	-264.14M	-334.67M	-366.28M	-162.04M	-35.03M	-180.71M

Ensign Energy Services Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.12
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ESI, the sentiment is Positive. The current price of 3.12 is above the 20-day moving average (MA) of 3.05, above the 50-day MA of 2.78, and above the 200-day MA of 2.39, indicating a bullish trend. The MACD of 0.14 indicates Positive momentum. The RSI at 57.64 is Neutral, neither overbought nor oversold. The STOCH value of 51.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:ESI.

Ensign Energy Services Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AKT.A	73 Outperform	C$82.60M	3.58	12.87%	―	24.94%	956.65%
ACX	72 Outperform	C$207.48M	7.23	11.51%	―	-16.20%	-38.85%
PHX	72 Outperform	C$387.92M	7.59	23.65%	10.44%	8.98%	-27.41%
PD	71 Outperform	C$1.48B	26.48	3.43%	―	-5.55%	-74.96%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
ESI	56 Neutral	C$600.87M	-12.42	-3.50%	―	-2.47%	-246.73%
WRG	54 Neutral	C$82.92M	-12.09	-2.38%	―	-0.38%	6.98%

Ensign Energy Services Corporate Events

Ensign Energy Services Reports Decline in Q3 2025 Earnings Amid Debt Reduction Efforts

Ensign Energy Services Inc. reported a decrease in revenue and adjusted EBITDA for the third quarter of 2025 compared to the same period in 2024, with revenue dropping by 5% and adjusted EBITDA by 17%. The company also recorded a net loss attributable to common shareholders, contrasting with a net income in the previous year. Despite these declines, Ensign has made progress in reducing its debt, with a $98.5 million decrease in total debt, net of cash, during the first nine months of 2025. The company has amended its credit agreement, extending the maturity date of its $950 million credit facility to 2028, and expects to achieve its debt reduction target by the first half of 2026, subject to industry conditions.

The most recent analyst rating on (TSE:ESI) stock is a Hold with a C$2.50 price target. To see the full list of analyst forecasts on Ensign Energy Services stock, see the TSE:ESI Stock Forecast page.