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Ensign Energy Services
(TSX:ESI)
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Rating:52Neutral
Price Target:
C$3.00
▼(-24.05% Downside)
Action:Reiterated
Date:08/09/26
The score is held back primarily by weak financial quality (net losses and a sharp drop in free cash flow) and bearish technicals (below key moving averages with negative MACD). These are partially offset by a more positive earnings-call outlook, including a larger contract backlog, improving pricing momentum, and continued debt reduction, though near-term capex and geopolitical exposure remain notable risks.
Positive Factors
Contracted Revenue Backlog
A larger contracted revenue book provides multi‑period visibility into demand and cash generation, reducing cyclicality risk for drilling activity. This backlog supports utilization planning, secures future revenue streams, and underpins near‑term investment and hiring decisions.
Negative Factors
Weak Profitability
Compressed gross margins and a TTM net loss show the company struggles to convert revenue into sustainable profits. Persistent negative net margins limit retained earnings, constrain ROE recovery, and make it harder to fund growth or weather prolonged weaker commodity cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Contracted Revenue Backlog
A larger contracted revenue book provides multi‑period visibility into demand and cash generation, reducing cyclicality risk for drilling activity. This backlog supports utilization planning, secures future revenue streams, and underpins near‑term investment and hiring decisions.
Read all positive factors
Ensign Energy Services (ESI) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$628.64M
Dividend YieldN/A
Average Volume (3M)164.91K
Price to Earnings (P/E)―
Beta (1Y)0.91
Revenue Growth-1.48%
EPS Growth-6.74%
CountryCA
Employees4,160
SectorEnergy
Sector Strength52
IndustryOil & Gas Drilling
Share Statistics
EPS (TTM)-0.22
Shares Outstanding184,350,940
10 Day Avg. Volume151,251
30 Day Avg. Volume164,913
Financial Highlights & Ratios
PEG Ratio-0.13
Price to Book (P/B)0.36
Price to Sales (P/S)0.29
P/FCF Ratio8.12
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$4.13Price Target Upside4.43% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)-0.05
Revenue Forecast (FY)C$1.80B
Ensign Energy Services Business Overview & Revenue Model
Company Description
Established in 1987 and headquartered in Calgary, Canada, Ensign Energy Services Inc. provides a comprehensive array of oilfield services to the crude oil and natural gas industries across Canada, the United States, and international markets. The ...
How the Company Makes Money
ESI makes money by contracting its equipment and crews to exploration and production (E&P) companies and charging fees for providing drilling and well-servicing work.
Primary revenue streams include:
1) Contract drilling services: ESI earns reven...
Ensign Energy Services Earnings Call Summary
Earnings Call Date:Aug 07, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 30, 2026
Earnings Call Sentiment Positive
The call presented a largely constructive operational and financial picture: Q2 revenue and EBITDA improved year-over-year, operating days increased in most regions, the Citadel acquisition expands Permian presence, debt was reduced and interest expense fell, and contracted revenue and pricing momentum improved. Offsets include a modest six-month EBITDA decline, higher depreciation and G&A, significant capex needs (partially customer-funded), a reduced net 2026 debt-reduction target due to the acquisition, and geopolitical risks affecting some international rigs. On balance the company appears to be growing activity and positioning for tighter market pricing while managing near-term reinvestment and geopolitical exposures.Positive Updates
Revenue Growth
Q2 2026 revenue of $397.3M, up 7% year-over-year (Q2 2025: $372.4M). Revenue for the six months ended June 30, 2026 was $815.4M, up 1% year-over-year.
Negative Updates
Six-Month Adjusted EBITDA Decline
Adjusted EBITDA for the six months ended June 30, 2026 was $180.7M, down 2% versus $183.7M in the same period in 2025.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Growth
Q2 2026 revenue of $397.3M, up 7% year-over-year (Q2 2025: $372.4M). Revenue for the six months ended June 30, 2026 was $815.4M, up 1% year-over-year.
Read all positive updates
Company Guidance
Guidance highlights: management revised the 2026 net debt‑reduction target from $125M to $60M (having repaid $30M in Q2 and $37M YTD) and expects year‑end 2026 liquidity in the low ~$90M range; planned 2026 maintenance capex is ~ $162M and selective upgrade capex ~ $95.8M (≈$68.6M customer‑funded), with Q2 net PPE purchases of $58.1M (upgrade $25.4M, maintenance $41.4M, dispositions $8.7M). Contract/backlog and pricing guidance: forward guaranteed contract book expanded 25% to $1.4B of contracted revenue, EDGE is deployed on 65% of rigs with ~15% top‑ and bottom‑line growth potential, the US rig count is 41 today (pending Citadel adds 6 -> 47) and management expects to grow ~1 US rig/month to year‑end with 4–5 more Permian rigs likely; they are raising dayrates by about $1,000/day per quarter and expect contract rollover rate uplifts roughly 5%–10%. Operational/financial trends to watch: Q2 revenue $397.3M (+7% YoY) and adjusted EBITDA $85.8M (+6% YoY); YTD revenue $815.4M (+1%) and adjusted EBITDA $180.7M (‑2%); operating days Q2: Canada +7% (2.67k), US +5% (3.09k), International +15% (1.25k) (YTD US +10%, Intl +8%, Canada ‑6%); interest expense down 13% to $16.1M and H1 depreciation $173M (+5%).Ensign Energy Services Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
58
Neutral
Cash Flow
55
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.65B | 1.64B | 1.68B | 1.79B | 1.58B | 995.59M |
| Gross Profit | 89.59M | 99.94M | 151.74M | 240.87M | 141.11M | -36.79M |
| EBITDA | 377.69M | 385.92M | 429.44M | 481.91M | 402.84M | 202.14M |
| Net Income | -40.35M | -38.76M | -20.75M | 41.24M | 8.13M | -156.01M |
Balance Sheet | ||||||
| Total Assets | 2.69B | 2.64B | 2.91B | 2.95B | 3.18B | 2.98B |
| Cash, Cash Equivalents and Short-Term Investments | 15.14M | 16.19M | 28.11M | 20.50M | 49.88M | 13.30M |
| Total Debt | 957.85M | 967.03M | 1.08B | 1.23B | 1.46B | 1.46B |
| Total Liabilities | 1.39B | 1.36B | 1.54B | 1.64B | 1.90B | 1.78B |
| Stockholders Equity | 1.30B | 1.28B | 1.37B | 1.31B | 1.29B | 1.19B |
Cash Flow | ||||||
| Free Cash Flow | 25.69M | 57.61M | 293.13M | 184.46M | 145.57M | 113.39M |
| Operating Cash Flow | 262.89M | 251.98M | 471.79M | 360.30M | 319.96M | 178.64M |
| Investing Cash Flow | -157.70M | -162.87M | -130.79M | -152.63M | -121.46M | -174.59M |
| Financing Cash Flow | -105.73M | -100.30M | -334.67M | -366.28M | -162.04M | -35.03M |
Ensign Energy Services Technical Analysis
Positive
3.95
Price Trends
3.59
Negative
3.72
Negative
3.33
Positive
Market Momentum
-0.04
Positive
51.10
Neutral
51.08
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 3.95 is above the 20-day moving average (MA) of 3.52, above the 50-day MA of 3.59, and above the 200-day MA of 3.33, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 51.10 is Neutral, neither overbought nor oversold. The STOCH value of 51.08 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | C$551.00M | 12.00 | 20.25% | 9.10% | 1.48% | -12.96% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
57 Neutral | C$239.54M | 16.55 | 5.29% | ― | 5.08% | -31.76% | |
54 Neutral | C$1.44B | -46.47 | -2.03% | ― | 3.86% | -132.87% | |
52 Neutral | C$628.64M | -16.20 | -4.13% | ― | -1.48% | -6.74% | |
51 Neutral | C$113.07M | -4.16 | -9.63% | ― | -10.90% | -349.06% |
* Energy Sector Average
TSE:ESI
Ensign Energy Services
3.54
1.47
71.01%
TSE:PD
Precision Drilling
115.35
38.51
50.12%
TSE:ACX
ACT Energy Technologies
6.35
1.74
37.74%
TSE:PHX
PHX Energy Services
12.24
5.33
77.24%
TSE:WRG
Western Energy Services
3.20
1.11
52.74%
Ensign Energy Services Corporate Events
Business Operations and StrategyFinancial Disclosures
Ensign Energy Services Narrows Loss as Drilling Activity and Cash Flow Improve in Q2 2026
Positive
Aug 7, 2026
Ensign Energy Services posted second-quarter 2026 revenue of $397.3 million, up 7% from a year earlier, driven by higher drilling activity across Canada, the U.S. and international markets. Adjusted EBITDA rose 6% to $85.8 million and funds flow f...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.