The following press release should be read in conjunction with the December 31, 2025 audited consolidated financial statements prepared in accordance with International Financial Reporting Standards (IFRS) applicable to the preparation of interim financial statements, under International Accounting Standard 34, Interim Financial Reporting (together, "IFRS Accounting Standards"), and the annual information form ("AIF") for the year ended December 31, 2025, as well as the unaudited condensed consolidated interim financial statements and notes for the three month periods ended March 31, 2026 and 2025 and management's discussion and analysis thereon. 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 number of drilling rigs, operating days, or unless otherwise noted. All share amounts are presented to the nearest thousand.
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.
FIRST QUARTER 2026 OPERATIONAL HIGHLIGHTS
Revenue of $25,801, an increase of $2,393 (10%) from $23,408 in the corresponding 2025 period, primarily driven by higher activity levels and improved drilling rig utilization.
Gross Margin(1) of 32%, a decrease of 2% from 34% in the corresponding 2025 period, primarily driven by a reduction in revenue per day.
Net Income of $1,731, an increase of $277 (19%) from $1,454 in the corresponding 2025 period. The increase was primarily due to higher operating margin and lower administrative expenses, partially offset by higher deferred income tax expense and share-based payments compared to the corresponding period in 2025.
Adjusted EBITDA(1) of $5,830, an increase of $715 (14%) from $5,115 in the corresponding 2025 period, driven by increased revenue and gross margin, along with a decrease in administrative expenses.
Free Cash Flow(1) of $4,158, an increase of $271 (7%) from $3,887 in the corresponding 2025 period, primarily related to increased funds from operating activities driven by the increase in revenue and gross margin compared to the corresponding period.
Capital Expenditures of $1,909, Capital expenditures for the first quarter of 2026 were comprised of $1,314 of growth capital and $595 of maintenance and sustaining capital.
(1), Refer to "Non-GAAP and Other Financial Measures" for further information.
OUTLOOK
Throughout 2025 and into the first quarter of 2026, global commodity markets continued to be shaped by persistent geopolitical uncertainty, including ongoing conflicts in Eastern Europe and the Middle East, evolving international sanctions, and the impact of U.S. trade and tariff policies. These factors have contributed to price volatility and cautious capital allocation across the sector.
During the first quarter of 2026, geopolitical risk in the Middle East escalated further, as hostilities involving the United States, Israel, and Iran intensified and contributed to disruption of global supply routes and upward pressure on oil prices. Significant uncertainty remains regarding the duration, severity, and long-term impacts of the conflict. Energy and commodity markets have historically been sensitive to disruptions or perceived risks to global supply chains, transportation routes, and regional production capacity in the Middle East. While higher pricing could support producer cash flows and activity levels, sustained volatility or a prolonged conflict may also negatively impact global economic growth, capital spending decisions, and customer demand. Ongoing trade tensions resulting from U.S. tariffs and retaliatory measures continue to weigh on global economic conditions and market confidence, and are expected to contribute to commodity price volatility through 2026. The extent and duration of the impact of these conditions on Stampede's customers and operations remain uncertain.
In Canada, the change in federal leadership in 2025 has contributed to a more constructive dialogue around the energy sector, with increased recognition of the importance of export diversification, infrastructure development, and regulatory certainty. The memorandum of understanding signed on November 27, 2025, between the Governments of Alberta and Canada to advance national energy infrastructure further reinforces this trend. Combined with ongoing infrastructure developments such as the Trans Mountain expansion, LNG Canada, and Coastal GasLink, these factors continue to enhance market access and takeaway capacity, supporting a cautiously optimistic outlook for Canadian energy producers and service providers. Heightened global trade tensions may also increase focus on domestic energy security, potentially supporting accelerated infrastructure development over the medium term.
Despite improved infrastructure and gradually strengthening fundamentals, many producers remained focused throughout 2025 and into 2026 on capital discipline, prioritizing free cash flow generation, balance sheet strength, shareholder returns, and consolidation. As commodity pricing and market confidence improve, producer focus may increasingly shift from sustaining to meaningful production growth to support these returns, which could drive higher demand for drilling and related services.
Stampede entered 2026 with stronger utilization, supported by improved customer sentiment and an increase in operating activity year over year. During the first quarter of 2026, 16 of Stampede's 17 rigs were operational resulting in an 18% increase in operating days, and a 14% increase in Adjusted EBITDA. Customer drilling programs are lining up favorably for the second quarter, and the Corporation is cautiously optimistic on activity levels through the second half of the year. Minimal incremental capital investment is required to achieve full utilization, as capital spending over the past three years has focused on enhancing fleet marketability and aligning equipment with customer demand, positioning the Corporation to respond efficiently if market conditions continue to improve. With reduced forecast capital expenditures, the Corporation expects to retain financial flexibility to prioritize free cash flow for shareholder returns through market-dependent repurchases of common shares under the Corporation's normal course issuer bid ("NCIB") (renewed in December 2025), while continuing to maintain balance sheet strength and preserve capacity for potential growth initiatives.
During the first quarter of 2026, the Corporation repurchased and cancelled 28(1) common shares under its NCIB at a weighted average price of $0.18 per share, for total consideration of $5. Since its implementation in June 2023, Stampede has repurchased 35,608 common shares (or 15.6% of its issued and outstanding common shares) under its NCIB, as renewed from time to time, at a weighted average price of $0.21 per share, for total consideration of $7,369.
(1), Share amounts reported in 000's of shares.
FINANCIAL SUMMARY
Three months ended, March 31
(000's CAD $ except per share amounts)
2026
2025
% Change
Revenue
25,801
23,408
10 %
Direct operating expenses
17,430
15,539
12 %
Gross margin(1)
8,371
7,869
6 %
Net income
1,731
1,454
19 %
Basic and diluted income per share
0.01
0.01
-
Adjusted EBITDA(1)
5,830
5,115
14 %
Funds from operating activities
5,526
5,099
8 %
Free cash flow(1)
4,158
3,887
7 %
Weighted average common shares outstanding (000's)
