CALGARY, Alberta – August 7, 2026, High Arctic Energy Services Inc. (TSX: HWO) (the “Corporation” or “High Arctic”) released its second quarter 2026 financial and operating results. The unaudited condensed interim consolidated financial statements (the “Financial Statements”) and management’s discussion and analysis (“MD&A”) for the three and six months ended June 30, 2026 will be available on SEDAR+ at www.sedarplus.ca, and on High Arctic’s website at www.haes.ca.
All amounts are denominated in thousands of Canadian dollars (“CAD”), unless otherwise indicated.
In the following disclosure, the three months ended June 30, 2026 may be referred to as the “quarter” or “Q2 2026” and the comparative three months ended June 30, 2025 may be referred to as “Q2 2025”. References to other quarters may be presented as “QX 20XX” with X/XX being the quarter/year to which the commentary relates. Additionally, the six months ended June 30, 2026 may be referred to as “YTD” or “YTD-2026”. References to other six-month periods ended June 30 may be presented as “YTD-20XX” with XX being the year to which the six-month period ended June 30 commentary relates.
Lonn Bate, Interim Chief Executive Officer commented:
“Our Delta Rental Services business continued to deliver solid financial and operational results in Q2 2026 as our customers continue to accelerate their development of the Duvernay near our Red Deer operations, a trend we see continuing into the third quarter of 2026. Our current service offerings and facility locations position us to provide our customers with the assets they need while allowing us to maintain an exceptional level of customer service.
Team Snubbing, in which High Arctic holds a 42% non-operating equity interest, continued its strong operational momentum on Alaska’s North Slope and delivered record net income during the quarter. These results significantly exceeded any prior second-quarter performance since Team Snubbing acquired the snubbing assets from High Arctic in 2022. Team continues to build relationships with existing and prospective customers across Alaska and is pursuing international opportunities that could provide meaningful growth in the second half of 2026 and beyond. These achievements validate Team Snubbing’s growth strategy and the strength of its services offerings. With increasing scale, a growing opportunity set, and a proven operating track record, they are well positioned to continue generating profitable growth and creating long-term value High Arctic.
As always, we remain committed to delivering our high standard of customer service with a relentless focus on safety, service quality, and continued cost management across the business.”
Highlights
• Revenue increased with planned customer well completions, enabled by first half weighed capital expenditure program;
• Customer relationships strengthened with Q2 2026 operational execution;
• Profit margin percentage compressed due to mix of rental services and increased Q1 2026 equipment maintenance costs;
• Significant net income turnaround from 42% equity investment in Team Snubbing, an increase of $1.15 million over YTD-2025;
• G&A expenses increased $0.15 million over YTD-2025 with appointment of full-time Interim CEO last August, and professional fees, and
• Liquidity of $4.4 million, comprised of $3.0 million cash and cash equivalents and undrawn bank facility.
Second Quarter 2026 Summary
• Revenue of $2,941 for Q2 2026 increased by $550 or 23% compared to Q2 2025. The increase in revenue is attributable to improved customer demand and stable pricing for our rental service offerings.
• High Arctic generated oilfield services operating margin of $1,302 for Q2 2026 with a corresponding operating margin percentage of 46.2% compared to $1,126 and 49.1% for the prior year comparative quarter. Operating margin was impacted by higher revenues as noted, offset by the reduction in operating margin percentage which was driven by a higher concentration of lower margin well stimulation services. Well stimulation services typically involve a higher labour component, contracted through a third-party.
• Adjusted EBITDA for Q2 2026 was $504, or 17% of revenue, compared to the prior year comparative quarter of $482 and 20% of revenue. Adjusted EBITDA was primarily impacted by the same factors impacting oilfield services operating margin as noted above.
• Operating loss was $126 in the current year quarter compared to a loss of $254 in Q2 2025. The decrease in operating loss is attributable to the same factors impacting oilfield services operating margin, partially offset by 9% higher general and administrative expenses.
• Net income was $3 in Q2 2026 compared to a net loss of $295 in Q2 2025. This increase in net income was a result of the same factors impacting operating income (loss), Team Snubbing’s $456 stronger performance in Q2 2026 versus Q2 2025 offset by the $362 fair value adjustment recorded in Q2 2025 relating to the contingent consideration payable pursuant to the 2023 Delta Services Ltd. (“Delta”) acquisition.
• The Corporation maintained operational excellence and safety throughout the quarter as evidenced by the continuation of lost time and recordable incident free work.
• High Arctic exited Q2 2026 with net working capital of $4,579, including $3,025 of cash and cash equivalents, an undrawn credit facility and $2,916 in long-term debt.
First Half 2026 Summary
• YTD revenue of $5,676 increased by $950 or 20% compared to YTD-2025. Consistent with Q2 2026 results, the increase in revenue is attributable to improved customer demand and stable pricing for our rental service offerings.
• High Arctic generated oilfield services operating margin of $2,424 for YTD-2026 with a corresponding operating margin percentage of 44.6% compared to $2,313 and 51.1% for the prior year comparative period. Operating margin was impacted by higher revenues as noted above, offset by the reduction in operating margin percentage which was driven by a higher concentration of lower margin well stimulation services combined with an increase in equipment repairs and maintenance expense.
• Adjusted EBITDA for YTD-2026 was $892, or 16% of revenue, compared to the prior year comparative period of $986 and 21% of revenue. Adjusted EBITDA was primarily impacted by the same factors impacting oilfield services operating margin and 9% higher YTD-2026 general and administrative expenses.
• Operating loss for YTD-2026 was $330 compared to a loss of $382 for YTD-2025. The decrease in operating loss is attributable to the same factors impacting oilfield services operating margin, as noted above, partially offset with modestly higher general and administrative expenses.
• Net income was $858 for YTD-2026 compared to a net loss of $415 for YTD-2025. This $1,273 differential was primarily driven by Team Snubbing’s $1,153 stronger YTD-2026 performance, $382 in gains on equipment disposals, partially offset by the $362 gain recorded in YTD-2025 on the fair value adjustment on the contingent consideration payable to pursuant to the 2023 Delta acquisition.
• During the first half of 2026, working capital increased $935 and long-term debt decreased by $87.