Q3 2024 Ensign Energy Services Inc Earnings Call Transcript
Key Points
- Ensign Energy Services Inc (ESVIF) achieved a strong quarter-over-quarter gain driven by high demand for its high-spec Canadian rigs, particularly singles, doubles, and triples.
- The company successfully reduced its debt by $45 million in the third quarter, totaling $135 million year-to-date, and is on track to meet its $600 million debt reduction target by 2025.
- Canadian operations saw an 18% increase in operating days, contributing positively to the company's performance.
- Interest expenses decreased by 24% due to lower debt levels and reduced effective interest rates, which will continue to decline as debt levels decrease.
- The EDGE AutoPilot technology is expanding, providing additional revenue streams and differentiating Ensign from competitors.
- The US business unit experienced a 14% decrease in operating days, contributing to a decline in overall revenue.
- Revenue for the third quarter of 2024 decreased by 2% compared to the same period in the previous year.
- Adjusted EBITDA for the first nine months of 2024 was 7% lower than the same period in 2023, primarily due to declines in US drilling activity.
- Depreciation expenses increased by 14% in the first nine months of 2024 compared to the previous year.
- The US market is facing challenges due to depressed natural gas prices and significant M&A activity, leading to reduced short-term work.
Good afternoon, ladies and gentlemen, and welcome to the Ensign Energy Services Inc third quarter 2024 results conference call. (Operator Instructions) This call is being recorded on Friday, November 1, 2024.
I would now like to turn the conference over to Nicole Romanow, Investor Relations. Please go ahead.
Thank you, Andrew. Good morning, and welcome to Ensign Energy Services third quarter conference call and webcast. On our call today, Bob Geddes, President and COO; and Mike Gray, Chief Financial Officer, will review Ensign's third quarter highlights and financial results followed by our operational update and outlook. We'll then open the call for questions.
Our discussion today may include forward-looking statements based upon current expectations that involve several business risks and uncertainties. The factors that could cause results to differ materially include, but are not limited to, political, economic and market conditions, crude oil and natural gas prices,
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