Ensign Energy Services (ESI) AI Stock Analysis

• Market Cap: C$456.27M
• Dividend Yield: N/A
• Average Volume (3M): 164.91K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.40
• 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: 184,726,680
• 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$3.00
• Price Target Upside: 17.65% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: C$2.50 ▼(-1.96% Downside)

Ensign Energy Services' overall score is driven by mixed financial performance and valuation concerns, offset by strategic initiatives and operational efficiencies. The earnings call provided some positive insights, but challenges in profitability and regional markets remain significant.

Positive Factors

Market Share Growth

Ensign's market share growth in key regions indicates a strong competitive position, enhancing its ability to secure contracts and drive revenue.

Debt Reduction Strategy

The aggressive debt reduction strategy improves financial stability and reduces interest expenses, enhancing long-term profitability.

Long-term Contracts

Securing long-term contracts provides revenue visibility and stability, supporting sustained operational and financial performance.

Negative Factors

Revenue Decline

Declining revenue suggests challenges in demand or pricing, potentially impacting future profitability and operational scale.

International Operating Days Decline

Reduced international activity indicates regional market challenges, potentially limiting growth and diversification opportunities.

U.S. Well Servicing Challenges

Decreased activity in U.S. well servicing reflects market difficulties, impacting revenue from a key segment and necessitating strategic adjustments.

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 shows mixed financial performance. While operational efficiency and strong cash flow generation are positive, challenges remain in achieving consistent profitability and revenue growth. The balance sheet is stable, but negative return on equity indicates difficulties in delivering shareholder value.

Income Statement

Ensign Energy Services has faced challenges in maintaining profitability, as evidenced by negative net profit margins in recent periods, particularly in the TTM (Trailing-Twelve-Months) where the net profit margin was -2.26%. Revenue growth has been inconsistent, with a decline of 1.15% in the TTM. However, the company has managed to maintain positive EBITDA margins, indicating some operational efficiency.

Balance Sheet

The company's balance sheet shows a moderate debt-to-equity ratio of 0.77 in the TTM, indicating a balanced approach to leveraging. However, the return on equity is negative, reflecting challenges in generating returns for shareholders. The equity ratio suggests a stable capital structure, with equity making up a significant portion of total assets.

Cash Flow

Ensign Energy Services has demonstrated strong cash flow management, with a significant free cash flow growth of 171.3% in the TTM. The operating cash flow to net income ratio is robust, indicating efficient cash generation relative to net income. However, the free cash flow to net income ratio suggests room for improvement in converting earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.67B	1.68B	1.79B	1.58B	995.59M	936.82M
Gross Profit	121.22M	151.74M	240.87M	141.11M	-36.79M	-96.09M
EBITDA	389.10M	429.44M	481.91M	402.84M	202.14M	374.79M
Net Income	-37.66M	-20.75M	41.24M	8.13M	-156.01M	-66.74M
Balance Sheet
Total Assets	2.70B	2.91B	2.95B	3.18B	2.98B	3.05B
Cash, Cash Equivalents and Short-Term Investments	14.97M	28.11M	20.50M	49.88M	13.30M	44.20M
Total Debt	997.68M	1.08B	1.23B	1.46B	1.46B	1.40B
Total Liabilities	1.39B	1.54B	1.64B	1.90B	1.78B	1.69B
Stockholders Equity	1.30B	1.37B	1.31B	1.29B	1.19B	1.37B
Cash Flow
Free Cash Flow	224.98M	293.13M	184.46M	145.57M	113.39M	196.73M
Operating Cash Flow	389.72M	471.79M	360.30M	319.96M	178.64M	246.97M
Investing Cash Flow	-145.59M	-130.79M	-152.63M	-121.46M	-174.59M	-50.24M
Financing Cash Flow	-254.51M	-334.67M	-366.28M	-162.04M	-35.03M	-180.71M

Ensign Energy Services Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.55
• 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 2.55 is above the 20-day moving average (MA) of 2.52, above the 50-day MA of 2.44, and above the 200-day MA of 2.33, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 52.66 is Neutral, neither overbought nor oversold. The STOCH value of 58.57 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
TOT	76 Outperform	C$548.12M	8.52	11.66%	2.60%	14.74%	62.76%
ACX	68 Neutral	C$166.51M	4.53	11.51%	―	-16.20%	-38.85%
PD	67 Neutral	$1.12B	19.64	3.43%	―	-5.55%	-74.96%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
CFW	55 Neutral	C$269.69M	27.35	1.53%	―	-4.63%	-92.13%
ESI	51 Neutral	C$456.27M	-12.06	-3.50%	―	-2.47%	-246.73%
WRG	51 Neutral	C$71.75M	-10.49	-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.

Ensign Energy Services Expands Credit Facility to Bolster Financial Flexibility

Ensign Energy Services Inc. has successfully renewed and expanded its Credit Facility to $950 million, maturing in 2028, enhancing its financial flexibility and supporting its global operations. This strategic move is expected to streamline Ensign’s capital structure, providing increased liquidity and positioning the company to capitalize on emerging opportunities in its core markets.

The most recent analyst rating on (TSE:ESI) stock is a Hold with a C$2.00 price target. To see the full list of analyst forecasts on Ensign Energy Services stock, see the TSE:ESI Stock Forecast page.

Ensign Energy Services’ Mixed Earnings Call Reveals Strategic Gains and Challenges

Ensign Energy Services’ recent earnings call presented a mixed sentiment, reflecting both achievements and challenges. The company showcased significant progress in debt reduction and market share gains in Canada, alongside securing new contracts in the Middle East. However, it also faced hurdles such as declining revenue, EBITDA, and international operating days, compounded by the impact of OFAC sanctions in Latin America and high maintenance expenses in Canada. The sentiment was balanced, highlighting both positive strides and areas of concern.

Ensign Energy Services Reports Decline in Q2 2025 Financials Amid Debt Reduction Efforts

Ensign Energy Services reported a decrease in revenue and adjusted EBITDA for the second quarter of 2025 compared to the same period in 2024. The company experienced a net loss attributable to common shareholders, with significant reductions in funds flow from operations and interest expenses due to lower debt levels. Despite these challenges, Ensign is on track to meet its debt reduction target by the end of 2025, having already repaid a substantial amount of debt. The operating highlights indicate a mixed performance across different regions, with a slight increase in Canadian and U.S. drilling days but a notable decrease in international drilling and U.S. well servicing hours.

The most recent analyst rating on (TSE:ESI) stock is a Buy with a C$3.75 price target. To see the full list of analyst forecasts on Ensign Energy Services stock, see the TSE:ESI Stock Forecast page.