Ensign Energy Services (ESI) AI Stock Analysis

• Market Cap: C$408.19M
• Dividend Yield: N/A
• Average Volume (3M): 90.50K
• Price to Earnings (P/E): 14.4
• Beta (1Y): 1.21
• Revenue Growth: -2.85%
• EPS Growth: -144.20%
• Country: CA
• Employees: 4,160
• Sector: Energy
• Sector Strength: 49
• Industry: Oil & Gas Drilling
• EPS (TTM): -0.14
• Shares Outstanding: 184,700,180
• 10 Day Avg. Volume: 92,737
• 30 Day Avg. Volume: 90,502
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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$2.75
• Price Target Upside: 25.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 61 Neutral
• Price Target: C$2.50 ▲(13.64% Upside)

Ensign Energy Services faces significant challenges, including persistent net losses and declining revenue growth, which weigh heavily on its financial performance and valuation. While operational efficiencies and strong cash flow management provide some resilience, bearish technical indicators and mixed earnings call sentiment further impact the stock's outlook. The company's efforts in debt reduction and strategic direction offer some positive aspects, but overall, the risks currently outweigh the strengths.

Positive Factors

Canadian Operations

Ensign highlighted continued strength in Canada, with high-spec singles and triples largely booked through 2025 and a significant portion of its fleet contracted into 2026.

Debt Reduction

Ensign reduced debt by approximately $220 million, surpassing its target, and remains on track for another $200 million reduction.

Free Cash Flow

The company's free cash flow yield sits at a very healthy ~40% on both 2024 and 2025 numbers.

Negative Factors

Target Price

The target price was lowered to $3.50, reflecting some near-term macro uncertainty.

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 comprehensive suite of oilfield services. The company's key revenue streams include contract drilling, where it provides rigs and crews for drilling oil and gas wells, and well servicing, which involves maintenance and workover services for existing wells. Additionally, Ensign earns income from the rental of oilfield equipment. Significant factors contributing to Ensign's earnings include its extensive fleet of drilling rigs, technological innovations, and strategic partnerships with major oil and gas producers. The company also benefits from long-term contracts that provide stable cash flow and mitigate the impact of volatile oil prices.

Ensign Energy Services Financial Statement Overview

Summary

Ensign Energy Services shows operational efficiency with positive EBIT and EBITDA margins, supported by strong cash flow management. However, the company's persistent net losses and declining revenue growth remain concerns.

Income Statement

Over the TTM, Ensign Energy Services has shown a slight increase in revenue compared to the previous annual period, but revenue has not yet recovered to 2023 levels. The company has improved its gross profit margin to 8.46% in the TTM from 9.01% in 2024, although net profit remains negative. EBIT and EBITDA margins are relatively healthy at 4.69% and 24.88%, respectively, indicating some operational efficiency. However, the persistent net losses are concerning.

Balance Sheet

The company maintains a solid equity base with an equity ratio of 48.01%. The debt-to-equity ratio stands at 0.77, suggesting moderate leverage, which is common in the industry but warrants cautious monitoring. Return on Equity (ROE) is negative due to ongoing net losses, highlighting the need for improved profitability to enhance shareholder value.

Cash Flow

Ensign Energy Services has demonstrated strong operating cash flow, with a robust operating cash flow to net income ratio of -24.28, reflecting efficient cash generation even with net losses. The company also maintains a healthy free cash flow, although it has seen a decrease in free cash flow growth. The free cash flow to net income ratio is -13.99, showcasing the firm’s ability to generate cash despite profitability challenges.

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

Ensign Energy Services Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.20
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• 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 Negative. The current price of 2.2 is below the 20-day moving average (MA) of 2.26, below the 50-day MA of 2.27, and below the 200-day MA of 2.55, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 44.61 is Neutral, neither overbought nor oversold. The STOCH value of 29.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	78 Outperform	C$438.79M	6.82	11.66%	3.15%	14.74%	62.76%
CFW	71 Outperform	C$331.53M	18.14	3.00%	―	-5.50%	-88.55%
ACX	70 Outperform	C$157.44M	3.05	24.63%	―	-5.05%	147.92%
Sector *	66 Neutral	$15.10B	10.40	7.41%	5.56%	4.52%	-70.52%
ESI	61 Neutral	C$408.19M	14.37	-1.17%	―	-2.85%	-144.20%
PDS	―	$739.42M	10.03	6.23%	―	―	―
WRG	46 Neutral	C$70.73M	―	-1.99%	―	5.00%	22.76%

Ensign Energy Services Corporate Events

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.

Ensign Energy Services Announces 2025 Board Election Results

Ensign Energy Services Inc. announced the successful election of its board of directors at the annual meeting held on May 9, 2025. All nominated directors were elected, and other matters, including the advisory vote on executive compensation, were approved. This election solidifies the company’s leadership and supports its strategic direction in the competitive oilfield services industry.

The most recent analyst rating on (TSE:ESI) stock is a Buy with a C$3.50 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 Reports Q1 2025 Results: Revenue Up, Debt Reduction in Focus

Ensign Energy Services Inc. reported its first-quarter results for 2025, showing a slight increase in revenue to $436.5 million compared to the previous year. Despite this, the company experienced a decrease in adjusted EBITDA and funds flow from operations. The company saw an improvement in net income, turning a profit of $3.7 million compared to a loss in the same period last year. Operationally, Canadian drilling and well servicing saw increases, while the U.S. and international operations experienced declines. Ensign is focused on reducing its debt, with significant repayments made and a target to reduce debt by $600 million by the end of 2025. The company also amended its credit facility to adjust the schedule of borrowing reductions.

The most recent analyst rating on (TSE:ESI) stock is a Buy with a C$3.5000 price target. To see the full list of analyst forecasts on Ensign Energy Services stock, see the TSE:ESI Stock Forecast page.