CALGARY, Alberta – November 12, 2026, High Arctic Energy Services Inc. (TSX: HWO) (the “Corporation” or “High Arctic”) released its third quarter 2026 financial and operating results. The unaudited condensed interim consolidated financial statements (the “Financial Statements”) and management discussion & analysis (“MD&A”) for the three and nine months ended September 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 September 30, 2026 may be referred to as the “quarter” or “Q3 2026” and the comparative three months ended September 30, 2025 may be referred to as “Q3 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 nine months ended September 30, 2026 may be referred to as “YTD” or “YTD-2026”. 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.
Lonn Bate, Interim Chief Executive Officer commented:
“High Arctic delivered excellent financial and operational performance in the third quarter of 2026, reflecting strong customer activity and disciplined execution by our Rental Services business. Revenue increased 60% quarter over quarter to $4.7 million, Adjusted EBITDA increased to $1.4 million, representing 31% of revenue, and net income surpassed $1.0 million in the quarter. These excellent results were achieved with a significant effort from our valued staff who consistently delivered quality service while meeting our high level of safety standards for our customers.
Team Snubbing also delivered consistent operational performance during the quarter. Steady customer demand in Alaska, continued North Slope activity and developing opportunities in Canada supported a 21% increase in Team’s quarterly revenue, while Team made some meaningful investments in relation to new work awarded in the quarter that will strengthen its platform for future growth.
The strong demand for our service offerings witnessed in Q3 2026 has continued into the fourth quarter of 2026, setting High Arctic up for a strong exit to what has been a busy year”.
Outlook
High Arctic’s business is driven by its customers’ decisions to drill new oil and natural gas wells combined with subsequent activity to complete these wells for production. This drilling and completion activity is tied to expectations for commodity prices and pipeline egress to access markets. As such, the financial and operational performance of High Arctic’s business and the non-operated equity investment in Team Snubbing are highly dependent on these customer factors, in combination with fundamentals associated with both drilling and well completions in the WCSB and in the US state of Alaska.
In the WCSB, High Arctic rental equipment and service operations are currently experiencing a high level of customer demand in central Alberta as certain customers accelerate their capital spending to drill, complete and tie-in more of their Duvernay wells. This work is in close proximity to High Arctic’s primary operations centre. In terms of capital expenditure levels, High Arctic made some opportunistic expenditures in the summer of 2026 to secure needed equipment to deliver the services our customers were requesting of us. For 2027 High Arctic is planning to make additional strategic capital expenditures and headcount additions to both increase the service offerings to our customers and to ensure the quality and timeliness of service delivery we are known for is not compromised.
For High Arctic’s non-operated interest in Team Snubbing, expectations are that operational execution and the additional work has built positive momentum in the business. While the WCSB continues to be challenging in terms of delayed natural gas well completions, Team added a new application for its services in Canada, focused on oil production, and in Alaska has seen continued oil well workover opportunities trend higher. High Arctic expects Team Snubbing to continue to build its customer relationships in Alaska and end the year in a favourable position with three rig packages marketed and labour contract opportunities.
While global economic and geopolitical uncertainty persists and in many respects is escalating, Canada’s energy industry has opportunities for future growth through new pipeline egress to overseas and USA markets. Recent energy infrastructure initiatives to expand throughput of existing pipelines and build new capacity to access tidewaters are developments highlighting a mandate at the federal level for Canada to become a global energy superpower. These initiatives include the announcement of both the West Coast Oil Pipeline from Alberta to the B.C. coast and the Northern Shield Energy Corridor, the US approval of the Bridger Pipeline Expansion, completion of the TransMountain pipeline system expansion in 2024, and the output ramp-up of West coast LNG exports in 2025, all of which are positive developments supporting improved long-term fundamentals for High Arctic’s business in the upstream energy services sector.
In summary, the Corporation’s strategic objectives carry forward priorities and accomplishments from a busy 2026. They focus on safe and value based operational execution for customers, cost control, and equipment offerings to enable lasting market opportunities to drive organic growth and enhanced shareholder value.