CALGARY, Alberta – November 7, 2025, High Arctic Energy Services Inc. (TSX: HWO) (the “Corporation” or “High
Arctic”) released its third quarter 2025 financial and operating results. The unaudited condensed interim consolidated
financial statements, and the management discussion & analysis (“MD&A”), for the three and nine months ended
September 30, 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.
Lonn Bate, Interim Chief Executive Officer commented:
“High Arctic is pleased to have delivered Q3 financial and operational results, driven by strong execution across a
number of our 2025 strategic objectives. Q3 2025 results benefited from the provision of significant high-pressure
stimulation work for a new customer which contributed to top-line growth and margin expansion. Improved financial
performance was achieved as producers continued to deploy capital in developing their Duvernay assets while overall
industry activity levels have softened compared to 2024. Our current service offerings and facility locations uniquely
position us to provide our customers with the assets they need while allowing us to maintain a high-level of customer
service.
Additionally, Team Snubbing, of which High Arctic maintains a 42% equity interest, achieved a step-change in financial
performance following a key contract award in Alaska and increased activity levels in their Canadian business, resulting
in a record quarter for them in terms of revenue and net income.
With the senior management changes announced in the quarter, High Arctic has enhanced our leadership capacity
with dedicated Canadian management enabling us to further focus on the execution of the Corporation’s strategic
initiatives.”
In the following, the three months ended September 30, 2025 may be referred to as the “quarter” or “Q3 2025” and the
comparative three months ended September 30, 2024 may be referred to as “Q3 2024”. References to other quarters
may be presented as “QX 20XX” with X/XX being the quarter/year to which the commentary relates. Additionally, the
nine months ended September 30, 2025 maybe referred to as “YTD” or “YTD-2025”. References to other nine-month
periods ended September 30 may be presented as “YTD-20XX” with XX being the year to which the nine-month period
ended September 30 commentary relates.
2025 Q3 Highlights
Revenue from continuing operations of $2,930, an increase of 17% compared to Q3 2024.
Increased oilfield services operating margin percentage for Q3 2025 to 54.4% compared to 51.5% in Q3 2024.
Realized Adjusted EBITDA from continuing operations of $757 in the quarter, 26% of Q3 2025 revenue and a 98%
increase from Q3 2024 Adjusted EBITDA.
Maintained a strong track record of operational excellence and safety, as evidenced by the continuation of
recordable incident-free work.
High Arctic’s 42% equity share of Team Snubbing’s net income for Q3 2025 was $756, significantly higher than the
$105 recognized in Q3 2024. Team Snubbing continues to benefit from an increase in customer activity, particularly
in its operations in Alaska.
Maintained strong financial liquidity throughout the current year quarter, exiting Q3 2025 with positive working
capital of $4,183, inclusive of cash of $3,052. Revenue from continuing operations of $7,656, a decrease of 5% compared to YTD-2024.
Achieved an increase in oilfield services operating margin percentage for YTD-2025 of 52.4% compared to 48.8%
for YTD-2024.
Realized Adjusted EBITDA from continuing operations of $1,743 for YTD-2025, 23% of YTD-2025 revenue and a
163% increase from YTD-2024 Adjusted EBITDA.
Maintained operational excellence and safety, as evidenced by the continuation of recordable incident-free work.
Achieved expected improvements in general and administrative expenses, a reduction of 44% compared to the
YTD-2024 period.
High Arctic’s share of Team Snubbing’s net income for YTD-2025 was $420 compared to a net loss of $294 for
YTD-2024.
2025 Strategic Objectives
The Corporation’s 2025 strategic objectives, which are unchanged from Q2 2025, 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 or strategic alternatives in Canada to drive shareholder value.
Outlook
The third quarter of 2025 was a very busy and positive quarter for High Arctic. The tactical equipment additions made
in 2025 to the rentals business enabled the business to secure and provide high-pressure stimulation assets to a new
customer active in increasing their Duvernay production levels that drove higher year over year revenues and margins
for the quarter. Additionally, Team Snubbing saw activity in both Canada and the US pick up as work that was deferred
in Canada earlier in the year resumed and recent contract awards in the US saw a snubbing package go back to work
for the majority of the quarter. Although High Arctic’s revenues, Adjusted EBITDA and liquidity position are not directly
impacted by the results of Team Snubbing because of its minority equity ownership, the management of the
liquidity/capitalization of Team Snubbing, including its debt leverage levels continue to be a top priority for High Arctic.
Finally, the senior management changes that were made in the quarter resulted in the full separation from High Arctic
Overseas Holdings Corp. following the Arrangement, allowing management to focus on the execution of Corporation’s
strategic objectives.
High Arctic’s business is driven by the underlying economics associated with its customers’ cash flows. These cash
flows are driven by their oil and natural gas commodity price hedging and expectations. As customers embark on drilling
new oil and natural gas wells, High Arctic’s business outlook is reliant on decisions on the subsequent activity to
complete these wells for production. Therefore, the financial and operational performance of High Arctic’s rental assets
and investment in the snubbing industry are highly dependent on fundamentals associated with both drilling and
hydraulic fracturing completion trends in the western Canadian sedimentary basin.
As the industry enters the final quarter of 2025, activity and well licensing have softened when compared to 2024 levels.
Customer capital allocation decisions to complete wells continue to show signs of deferral. These deferrals have been
influenced by factors that include industry consolidation with successor entities revisiting previously planned projects,
OPEC’s continued increase of oil to global supply, global trade tariffs, and geopolitical risks that have collectively served
to increase investment uncertainty.
While global economic uncertainty persists, Canada’s energy industry has opportunities for future growth, due in part
to recent energy infrastructure developments. The completion of the Trans Mountain pipeline system expansion in 2024,
and the commencement, and subsequent output ramp-up of west coast LNG exports are positive developments
supporting improved long-term fundamentals for High Arctic’s business and the upstream energy services.
In summary, the Corporation expects to continue to build on the positive results achieved in the third quarter of 2025
as it executes on its strategic objectives, with progress to date being evidenced by our strong safety performance,
balance sheet preservation, general and administrative expense reductions, selective capital expenditure investments
supporting organic growth in the rentals business, and oversight of its equity investments.