CALGARY, Alberta – May 13, 2025, High Arctic Energy Services Inc. (TSX: HWO) (the “Corporation” or “High Arctic”) released its first quarter 2025 financial and operating results. The unaudited condensed interim consolidated financial statements, and the management discussion & analysis (“MD&A”), for the quarter ended March 31, 2025 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.
Mike Maguire, Interim Chief Executive Officer commented:
“Our business has had a solid start to 2025, despite some pull back in well completion rates in Canada resulting from market uncertainty and customer consolidation events.
Our investment in and amalgamation of Delta Rental Services continues to deliver financial performance in line with our pre-transaction expectations and we anticipate consistent results through the coming months with significant upside potential as gas well completion rates increase in anticipation of first gas through the Coastal GasLink pipeline.
Decisive action by the management of Team Snubbing in Alaska has set a platform for improved value creation from our 42% holding of Team Snubbing.
High Arctic is well positioned to benefit from upstream energy service activity levels in the western Canadian oil and gas industry.”
In the following discussion, the three months ended March 31, 2025 may be referred to as the “quarter” or “Q1 2025” and the comparative three months ended March 31, 2024 may be referred to as “Q1 2024”. References to other quarters may be presented as “QX 20XX” with X/XX being the quarter/year to which the commentary relates.
2025 FIRST QUARTER HIGHLIGHTS
• Revenue from continuing operations of $2,335, a decrease of 22% compared to Q1 2024.
• Achieved an increase in oilfield services operating margin percentage for Q1 2025 of 53.1% compared to 49.4% in Q1 2024.
• Realized adjusted EBITDA from continuing operations of $504 in the quarter, 22% of revenue.
• Maintained operational excellence and safety, as evidenced by the continuation of recordable incident-free work.
• Achieved expected reductions in general and administrative expenses, a reduction of 59% compared to Q1 2024.
• Equity investment in Team Snubbing is essentially unchanged at $7.4 million as at March 31, 2025. Unaudited Team Snubbing financial results delivered a modest positive net income inclusion for the quarter, with key highlights being a sequential improvement in Alaskan results, and reduced debt.
• Exited Q1 with positive working capital of $3,199, including cash of $3,183.
2025 Strategic Objectives
With the corporate restructuring and spinoff of the PNG business complete, the Corporation’s 2025 strategic objectives include:
• Relentless focus on safety excellence and quality service delivery;
• Grow the core businesses through selective and opportunistic investments;
• Actively manage direct operating costs and general and administrative costs;
• Steward capital to preserve balance sheet strength and financial flexibility; and
• Execute on accretive acquisitions in Canada to drive shareholder value and optimize available tax loss carry-forwards.
2025 Strategic Objectives
With the corporate restructuring and spinoff of the PNG business complete, the Corporation’s 2025 strategic objectives include:
• Relentless focus on safety excellence and quality service delivery;
• Grow the core businesses through selective and opportunistic investments;
• Actively manage direct operating costs and general and administrative costs;
• Steward capital to preserve balance sheet strength and financial flexibility; and
• Execute on accretive acquisitions in Canada to drive shareholder value and optimize available tax loss carry-forwards.