CALGARY, AB, May 13, 2024 /CNW/ – Stampede Drilling Inc. (“Stampede” or the “Corporation”) (TSXV:SDI) announces today its consolidated financial and operational results for the three month period ended March 31, 2024.
The following press release should be read in conjunction with the December 31, 2023, audited consolidated financial statements prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS Accounting Standards”), the related management’s discussion and analysis (“MD&A”) and the annual information form (“AIF”) for the year ended December 31, 2023, as well as the condensed unaudited consolidated interim financial statements and notes for the three month periods ended March 31, 2024 and 2023. Additional information regarding Stampede, including the AIF, is available on SEDAR+ at www.sedarplus.ca.
All amounts or dollar figures are denominated in thousands of Canadian dollars except for per share amounts, number of drilling rigs, and operating days, or unless otherwise noted.
Estimates and forward-looking information are based on assumptions of future events and actual results may vary from these estimates. See “Forward-Looking Information” in this press release for additional details.
Achieved record Net Income of $4,941 – an increase of $1,176 or 31% from the first quarter of 2023. The increase was primarily related to increased operating days and revenue per day, reduction in general and administrative expenses and increase in gross margin percentage.
Achieved record Q1 Adjusted EBITDA(1) of $7,665 – an increase of $1,675 or 28% from the first quarter of 2023. The increase was primarily related to higher revenue due to increased revenue per day, and the reduction in general and administrative expenses and increase in gross margin percentage.
Achieved record Revenue of $27,499 – an increase of $1,802 or 7% from the first quarter of 2023, driven by increased number of operating days and increased day rate.
Free Cash Flow(1) of $5,151 – an increase of $1,059 or 26% primarily related to the increase from funds from operating activities.
Gross Margin(1) of 36% – an increase of 4% from 32% in the corresponding 2023 period. The increase was primarily related to an increase in revenue per day combined with the decrease in operating costs.
Repurchase of 1,255 common shares – In the first quarter of 2024 the Corporation repurchased and cancelled 1,255 common shares under its normal course issuer bid (“NCIB”) at a weighted average price per common share of $0.23, for a total consideration of $292. The total amount of common shares repurchased and cancelled during the first quarter of 2024 represents 0.59% of the total issued and outstanding common shares of the Corporation.
Posting our strongest financial quarter to date, Stampede achieved record-breaking results in revenue, adjusted EBITDA, and net income during the first quarter of 2024. With 17 out of its 19 rig fleet operational during this period, the Corporation anticipates maintaining this positive momentum post spring break-up and into the back half of the year. The optimistic outlook for Western Canada, driven by rising global demand and increased tidewater access for Canadian produces from the startup of the Trans Mountain pipeline expansion in 2024 and LNG Canada planned for 2025, thereby supporting increased forecasted drilling activity amid ongoing geopolitical challenges affecting global energy supply and commodity prices.
Benefiting from a solid industry backdrop, growth potential, and financial stability, Stampede is strategically positioned for success, focusing on executing strategic initiatives and maximizing shareholder returns. The Corporation’s emphasis on safety and strategic priorities is upheld by a dedicated team of employees committed to operational excellence and value creation for shareholders. With a strong balance sheet, Stampede stands well positioned for further expansion and sustained growth in the energy services landscape.
(1)
– Refer to “Non-GAAP and Other Financial Measures” for further information.
Three months ended, March 31
(000’s CAD $ except per share amounts)
2024
2023
% Change
Revenue
27,499
25,697
7 %
Direct operating expenses
17,586
17,383
1 %
Gross margin(1)
9,913
8,314
19 %
Net income
4,941
3,765
31 %
Basic and diluted income per share
0.02
0.02
0 %
Adjusted EBITDA(1)
7,665
5,990
28 %
Funds from operating activities
7,614
5,966
28 %
Free cash flow(1)
5,151
4,092
26 %
Weighted average common shares outstanding (000’s)
211,276
224,771
(6 %)
Weighted average diluted common shares outstanding (000’s)
212,029
230,624
(8 %)
Capital expenditures
6,180
2,241
176 %
Number of marketed rigs
19
19
0 %
Drilling rig utilization(2)
55 %
54 %
1 %
CAOEC industry average utilization(3)
50 %
45 %
5 %
(1)
Refer to “Non-GAAP and Other Financial Measures” for further information.
(2)
Drilling rig utilization is calculated based on operating days (spud to rig release).
(3)
Source: The Canadian Association of Energy Contractors (“CAOEC”) monthly Contractor Summary. The CAOEC industry average is based on operating days divided by total available drilling days.
Leave a Reply