CALGARY,
AB, March 14, 2024 /CNW/ - Stampede Drilling
Inc. ("Stampede" or the "Corporation") (TSXV: SDI) announces today
its consolidated financial and operational results for the three-
and twelve-month periods ended December 31,
2023.
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. 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.
FOURTH QUARTER 2023 Operational Highlights
- Revenue of $21,494 – This
represents a decrease of $1,744 or 8%
from the fourth quarter of 2022 driven by lower rig utilization as
a result of commodity price volatility and unseasonably warmer
weather. This was partially offset by a 10% increase in revenue per
day.
- Achieved record Q4 Adjusted EBITDA(1) of
$6,287 – This represents a 10%
increase from the fourth quarter of 2022. The increase was due to
an increase in gross margin driven by higher day rates and
decreased operational costs.
- Net Income of $3,237 -
This represents a decrease of $246 or
7% from the fourth quarter 2022. The decrease was primarily related
to increased depreciation costs due to an increased asset base and
a one-time loss on the disposition of assets partially offset by
increased Adjusted EBITDA and a lower share-based payments
expense.
- Gross Margin(1) of 40% - This represents an
increase of 5% from 35% in the corresponding 2022 period. The
increase was primarily related to an increase in revenue per day
combined with a slight decrease in operating costs.
- Repurchase of 12,171 common shares - In the fourth
quarter of 2023 the Corporation repurchased and cancelled 12,761
common shares under its normal course issuer bid ("NCIB") at a
weighted average price per common share of $0.24 for total consideration of $3,079. The total amount of common shares
repurchased and cancelled during the fourth quarter of 2023
represents 5.58% of the total issued and outstanding shares of the
Corporation.
- Free Cash Flow(1) of $5,409 – This represents an increase of
$4,971 primarily related to a
$4,270 decrease in maintenance and
sustaining capital spending for the corresponding 2022 period.
- Decreased Total Net Funded Debt to Adjusted EBITDA covenant
ratio to 0.80x – the 0.32x decrease from 1.12x was a result of
the increased Adjusted EBITDA while keeping the Corporations total
net funded debt flat with prior year.
2023 ANNUAL OPERATIONAL HIGHLIGHTS
- Achieved record Revenue of $85,956 – This represents a 29% increase as
compared to 2022. The increase was primarily driven by a 17%
increase in operating days for 2023 as a result of the addition of
9 drilling rigs to the Corporation's fleet throughout the second
half of 2022. The Corporation also experienced a 10% increase in
revenue per day primarily related to higher field wages charged
back to our customers.
- Achieved record Net Income of $10,504 - This represents a 28% increase from
2022. The increase was primarily related to increased Adjusted
EBITDA partially offset by increased depreciation and finance
costs.
- Achieved record Adjusted EBITDA(1) of
$20,479 – This represents a 34%
increase as compared to 2022. The increase was primarily due to
increased revenue, partially offset by higher rig operating
expenses due to inflationary pressures and an increase in general
and administrative expenses.
- Repurchase of 16,585 common shares _ In 2023, the
Corporation repurchased and cancelled 16,585 common shares under
its NCIB at a weighted average price per common share of
$0.24, for total consideration of
$4,047. The total amount of common
shares repurchased and cancelled during the financial year ended
December 31, 2023, represents 7.3% of
the total issued and outstanding common shares of the
Corporation.
- Capital Expenditures of $14,455 – Capital expenditures for 2023 were
comprised of $9,271 of growth capital
and $5,184 of maintenance and
sustaining capital.
- New syndicated debt agreement _ During the year ended
December 31, 2023, the Corporation
entered into a new $50,000 credit
agreement (the "Credit Agreement"), which has an initial term of
three years. Under the Credit Agreement, Stampede has an available
limit of $20,000 under a
non-revolving term loan (the "Term Loan Facility"), $15,000 under a revolving credit facility (the
"Syndicated Facility") and $15,000
under an additional revolving credit facility (the "Operating
Facility", and collectively with the Term Loan Facility and the
Syndicated Facility, the "Credit Facilities").
OUTLOOK
Stampede is on pace for another strong start to the year, as it
has consistently run 16 out of its 19 rig fleet throughout the
first few months of 2024. Stampede believes commodity volatility
will continue throughout the remainder of 2024 due to current
macroeconomic influences, including the impact of the Russian
invasion of Ukraine, and the
Israeli/Palestine conflict. Despite the anticipated volatility,
Stampede is forecasting to continue its strong utilization and day
rates for its fleet of 19 rigs for the remainder of 2024 based on
current discussions with its customer base. Maintaining Stampede's
qualified field labour force will continue to be a top priority for
the remainder of 2024. Management has proven their ability to
attract and crew qualified field hands since Stampede's inception.
Stampede is currently running full crews with relief on all its
operating rigs.
On June 7, 2023, Stampede received
approval from the TSX Venture Exchange ("TSXV") to commence a NCIB
to repurchase up to 10% of Stampede's Public Float (as such term is
defined in TSXV Policy 1.1 – Interpretation) during a 12 month
period commencing on June 1, 2023. As
of the date hereof, Stampede has returned $4,335 back to shareholders by repurchasing and
cancelling 17,841 common shares under its NCIB at an average share
price of $0.24. The Board of
Directors and management believe there is a substantive disparity
between Stampede's share price and the fundamental value of the
business. Stampede will continue to assess capital allocations on
it's NCIB against potential acquisition opportunities and capital
expenditures to further enhance customer desirability of its
current fleet.
FINANCIAL SUMMARY
|
Three months
ended,
December 31
|
Year
ended,
December
31
|
|
|
(000's CAD $ except
per share amounts)
|
2023
|
2022
|
%
Change
|
2023
|
2022
|
%
Change
|
|
|
Revenue
|
21,494
|
23,238
|
(8 %)
|
85,956
|
66,879
|
29 %
|
|
|
Direct operating
expenses
|
12,891
|
15,068
|
(14 %)
|
56,825
|
44,564
|
28 %
|
|
|
Gross margin
(1)
|
8,603
|
8,170
|
5 %
|
29,131
|
22,315
|
31 %
|
|
|
Net income
|
3,237
|
3,483
|
(7 %)
|
10,504
|
8,210
|
28 %
|
|
|
Basic and diluted
income per share
|
0.01
|
0.02
|
(50 %)
|
0.05
|
0.05
|
0 %
|
|
|
Adjusted EBITDA
(1)
|
6,287
|
5,737
|
10 %
|
20,479
|
15,305
|
34 %
|
|
|
Funds from operating
activities
|
6,287
|
5,713
|
10 %
|
20,431
|
14,659
|
39 %
|
|
|
Free cash
flow(1)
|
5,409
|
438
|
1,135 %
|
11,375
|
10,748
|
6 %
|
|
|
Weighted average common
shares outstanding (000's)
|
221,158
|
192,297
|
15 %
|
224,807
|
162,505
|
38 %
|
|
|
Weighted average
diluted common shares outstanding (000's)
|
222,453
|
207,205
|
7 %
|
227,206
|
176,899
|
28 %
|
|
|
Capital
expenditures
|
4,818
|
4,520
|
7 %
|
14,455
|
41,122
|
(65 %)
|
|
|
Number of marketed
rigs
|
19
|
19
|
0 %
|
19
|
19
|
0 %
|
|
|
Drilling rig
utilization(2)
|
42 %
|
61 %
|
(19 %)
|
45 %
|
60 %
|
(15 %)
|
|
|
CAOEC industry average
utilization(3)
|
36 %
|
39 %
|
(3 %)
|
35 %
|
35 %
|
0 %
|
|
|
(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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DESCRIPTION OF STAMPEDE'S BUSINESS
Stampede is an energy services company that provides premier
contract drilling services in Western
Canada. Stampede operates a fleet of 18 telescopic double
drilling rigs and 1 high spec triple drilling rig suited for most
formations within the Western Canadian Sedimentary Basin ("WCSB").
The Corporation's head office is located in Calgary, Alberta with operations based out of
Nisku, Alberta and Estevan, Saskatchewan. The Corporation's
common shares trade on the TSXV under the symbol "SDI".
RESULTS FROM OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2023
|
Year ended, December
31
|
|
|
|
(000's CAD $
)
|
2023
|
2022
|
%
Change
|
|
|
|
Revenue
|
85,956
|
66,879
|
29 %
|
|
|
|
Direct operating
expenses
|
56,825
|
44,564
|
28 %
|
|
|
|
Gross
margin(1)
|
29,131
|
22,315
|
31 %
|
|
|
|
Gross margin
%(1)
|
34 %
|
33 %
|
1 %
|
|
|
|
Net income
|
10,504
|
8,210
|
28 %
|
|
|
|
General and
administrative expenses
|
10,088
|
8,302
|
22 %
|
|
|
|
Adjusted
EBITDA(1)
|
20,479
|
15,305
|
34 %
|
|
|
|
Drilling rig operating
days(2)
|
3,131
|
2,674
|
17 %
|
|
|
|
Drilling rig revenue
per day(3)
|
27.5
|
25.0
|
10 %
|
|
|
|
Drilling rig
utilization(4)
|
45 %
|
60 %
|
(15 %)
|
|
|
|
CAOEC industry average
utilization(5)
|
35 %
|
35 %
|
(0 %)
|
|
|
|
(1)
Refer to "Non-GAAP and Other Financial
Measures" for further information.
(2) Defined as contract drilling days, between spud to
rig release.
(3) Drilling rig revenue per day is calculated by
revenue divided by drilling rig operating days.
(4) Drilling rig utilization is calculated based on
operating days (spud to rig release).
(5) 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.
|
|
|
|
|
|
|
|
|
- Revenue of $85,956 – an
increase of $19,077 (29%) from
$66,879 in the corresponding 2022
period. The increase was primarily related to the addition of 9
drilling rigs to the Corporation's fleet throughout the second half
of 2022, which increased the number of operating days for 2023.
Revenue also increased due to a 10% increase in revenue per day,
which was primarily due to wage field increases charged back to our
customers.
- Operating days of 3,131 – an increase of 457 operating
days (17%) from 2,674 operating days in the corresponding 2022
period. Operating days increased primarily as a result of the
increase in rig count compared to the prior period.
- Gross margin percentage of 34% – an increase of 1% from
33% in the corresponding 2022 period. The gross margin increase was
primarily related to the increase in revenue per day, partially
offset by the higher rig operating expenses due to inflationary
pressures.
- Net income of $10,504 – an
increase of $2,294 (28%) from
$8,210 in the corresponding 2022
period. The increase was primarily related to increased operating
days and revenue per day, partially offset by higher operating
expenses, general and administrative expenses, and finance
costs.
- General and administrative expenses of $10,088 – an increase of $1,786 (22%) from $8,302 in the corresponding 2022 period. The
increase in general and administrative expense was primarily
related to the increase in headcount compensation and corresponding
administration expenses due to increased 2023 activity levels.
- Adjusted EBITDA of $20,479
– an increase of $5,174 (34%) from
$15,305 in the corresponding 2022
period. The increase was primarily related to the increase in
operating days and gross margin.
RESULTS FROM OPERATIONS FOR THE THREE MONTH PERIOD ENDED
DECEMBER 31, 2023
|
Three months ended,
December 31
|
|
|
|
(000's CAD
$)
|
2023
|
2022
|
%
Change
|
|
|
|
Revenue
|
21,494
|
23,238
|
(8 %)
|
|
|
|
Direct operating
expenses
|
12,891
|
15,068
|
(14 %)
|
|
|
|
Gross
margin(1)
|
8,603
|
8,170
|
5 %
|
|
|
|
Gross margin
%(1)
|
40 %
|
35 %
|
5 %
|
|
|
|
Net income
|
3,237
|
3,483
|
(7 %)
|
|
|
|
General and
administrative expenses
|
2,514
|
3,429
|
(27 %)
|
|
|
|
Adjusted
EBITDA(1)
|
6,287
|
5,737
|
10 %
|
|
|
|
Drilling rig operating
days(2)
|
727
|
867
|
(16 %)
|
|
|
|
Drilling rig revenue
per day(3)
|
29.6
|
26.8
|
10 %
|
|
|
|
Drilling rig
utilization(4)
|
42 %
|
61 %
|
(19 %)
|
|
|
|
CAOEC industry average
utilization(5)
|
36 %
|
39 %
|
(3 %)
|
|
|
|
(1)
Refer to "Non-GAAP and Other Financial
Measures" for further information.
(2) Defined as contract drilling days, between spud to
rig release.
(3) Drilling rig revenue per day is calculated by
revenue divided by drilling rig operating days.
(4) Drilling rig utilization is calculated based on
operating days (spud to rig release).
(5) 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.
|
|
|
|
|
|
|
|
|
- Revenue of $21,494 – a
decrease of $1,744 (8%) from
$23,238 in the corresponding 2022
period. The decrease was due to a reduction in operating days. This
was partially offset by a 10% increase in revenue per day during
the three month period ended December 31,
2023.
- Operating days of 727 – a decrease of 140 operating days
(16%) from 867 operating days in the corresponding 2022 period.
Operating days decreased due to a reduction in operating activities
as a result of customer capital discipline, commodity price
volatility and unseasonably warmer weather during the three month
period ended December 31, 2023.
Drilling rig utilization for the three month period ended
December 31, 2023 was 42%, which was
a 19% decrease from 61% in the corresponding 2022 period, but 6%
higher than the CAOEC industry average utilization rate of 36% for
the three months ended December 31,
2023.
- Gross margin percentage of 40% – an increase of 5% from
35% in the corresponding 2022 period. The change was related to an
increase in revenue per day combined with a slight decrease in
operating costs.
- Net income of $3,237 – a
decrease of $246 (7%) from
$3,483 in the corresponding 2022
period. The decrease was primarily related to increased
depreciation costs due to an increased asset base and a one-time
loss on the disposition of assets partially offset by increased
Adjusted EBITDA and a lower share based payments expense.
- General and administrative expenses of $2,514 – a decrease of $915 (27%) from $3,429 in the corresponding 2022 period. The
decrease was primarily due to a reduction in stock based
compensation in the last quarter of 2023 compared to the
corresponding 2022 period.
- Adjusted EBITDA of $6,287
– an increase of $550 (10%) from
$5,737 in the corresponding 2022
period. The increase was primarily related to the increase in gross
margin, partially offset by a reduction in administrative
expenses.
NON-GAAP AND OTHER FINANCIAL MEASURES
This MD&A contains references to (i) adjusted EBITDA, (ii)
Gross margin (iii) Gross margin percentage and (iv) free cash flow.
These financial measures are not measures that have any
standardized meaning prescribed by IFRS Accounting Standards and
are therefore referred to as non-generally accepted accounting
principles ("non-GAAP") measures. The non-GAAP measures used by the
Corporation may not be comparable to similar measures used by other
companies.
|
(i)
|
Adjusted EBITDA
- is defined as "income from operations before interest income,
interest expense, taxes, transaction costs, depreciation and
amortization, share-based compensation expense, gains on asset
disposals, impairment expenses, other income, foreign exchange,
non-recurring restructuring charges, finance costs, accretion of
debentures and other income/expenses, foreign exchange gain and any
other items that the Corporation considers appropriate to adjust
given the irregular nature and relevance to comparable operations."
Management believes that in addition to net income, adjusted EBITDA
is a useful supplemental measure as it provides an indication of
the results generated by the Corporation's principal business
activities prior to consideration of how these activities are
financed, how assets are depreciated, amortized and impaired, the
impact of foreign exchange, or how the results are affected by the
accounting standards associated with the Corporation's stock-based
compensation plan. Investors should be cautioned, however, that
adjusted EBITDA should not be construed as an alternative to net
income determined in accordance with IFRS Accounting Standards as
an indicator of the Corporation's performance. The Corporation's
method of calculating adjusted EBITDA may differ from that of other
organizations and, accordingly, its adjusted EBITDA may not be
comparable to that of other companies.
|
|
Three months ended,
December 31
|
|
Year ended, December
31
|
|
(000's CAD
$)
|
2023
|
2022
|
%
Change
|
|
2023
|
2022
|
%
Change
|
|
Net income
|
3,237
|
3,483
|
(7 %)
|
|
10,504
|
8,210
|
28 %
|
|
Depreciation
|
1,898
|
1,421
|
34 %
|
|
7,076
|
4,747
|
49 %
|
|
Finance
costs
|
504
|
450
|
12 %
|
|
1,974
|
1,246
|
58 %
|
|
Other income
|
(16)
|
-
|
nm
|
|
(31)
|
(9)
|
244 %
|
|
(Gain) loss on asset
disposal
|
555
|
(533)
|
(204 %)
|
|
(91)
|
(530)
|
(83 %)
|
|
Share-based
payments
|
92
|
886
|
(90 %)
|
|
1,009
|
1,029
|
(2 %)
|
|
Transaction
costs
|
2
|
14
|
(86 %)
|
|
31
|
609
|
(95 %)
|
|
Foreign exchange
(gain)
|
15
|
16
|
(6 %)
|
|
7
|
3
|
133 %
|
|
Adjusted
EBITDA
|
6,287
|
5,737
|
10 %
|
|
20,479
|
15,305
|
34 %
|
|
nm - not
meaningful
|
|
|
|
|
|
|
|
|
(ii)
|
Gross margin -
is defined as "Income from operations before depreciation of
property and equipment". Gross margin is a measure that provides
shareholders and potential investors additional information
regarding the Corporation's cash generating and operating
performance. Management utilizes this measure to assess the
Corporation's operating performance. Investors should be cautioned,
however, that gross margin should not be construed as an
alternative to net income (loss) determined in accordance with IFRS
Accounting Standards as an indicator of the Corporation's
performance. The Corporation's method of calculating gross margin
may differ from that of other organizations and, accordingly, its
gross margin may not be comparable to that of other
companies.
|
|
|
|
(iii)
|
Gross margin
percentage - is calculated as gross margin divided by
revenue. The Corporation believes gross margin as a percentage of
revenue is an important measure to determine how the Corporation is
managing its revenues and corresponding cost of sales. The
Corporation's method of calculating gross margin percentage may
differ from that of other organizations and, accordingly, its gross
margin percentage may not be comparable to that of other
companies.
|
The following table reconciles the Corporation's income from
operations, being the most directly comparable financial measure
disclosed in the Corporation's interim financial statements, to
gross margin and gross margin percentage:
|
Three months ended,
December 31
|
|
Year ended, December
31
|
|
(000's CAD
$)
|
2023
|
2022
|
%
Change
|
|
2023
|
2022
|
%
Change
|
|
Income from
operations
|
6,811
|
6,859
|
(1 %)
|
|
22,482
|
17,831
|
26 %
|
|
Depreciation of
property and equipment
|
1,792
|
1,311
|
37 %
|
|
6,649
|
4,484
|
48 %
|
|
Gross margin
|
8,603
|
8,170
|
5 %
|
|
29,131
|
22,315
|
31 %
|
|
Gross margin
%
|
40 %
|
35 %
|
5 %
|
|
34 %
|
33 %
|
1 %
|
|
(iv)
|
Free cash flow -
is calculated based on funds from operating activities less
maintenance and sustaining capital, and interest and principal debt
repayments. The Corporation uses this measure to assess the
discretionary cash that management has to invest in growth capital,
asset acquisitions, or return capital to shareholders. The
Corporation's method of calculating free cash flow may differ from
that of other organizations and, accordingly, its free cash flow
may not be comparable to that of other companies. The
following table reconciles the Corporation's funds from operating
activities to free cash flow.
|
|
Three months ended,
December 31
|
|
Year ended, December
31
|
|
(000's CAD
$)
|
2023
|
2022
|
%
Change
|
|
2023
|
2022
|
%
Change
|
|
Funds from operating
activities
|
6,287
|
5,706
|
10 %
|
|
20,431
|
14,659
|
39 %
|
|
Maintenance and
sustaining capital
|
(230)
|
(4,500)
|
(95 %)
|
|
(5,184)
|
(2,078)
|
149 %
|
|
Interest paid on
Demand Facility
|
(23)
|
(136)
|
(83 %)
|
|
(588)
|
(412)
|
43 %
|
|
BDC principal
payments
|
-
|
(100)
|
nm
|
|
(1,500)
|
(400)
|
275 %
|
|
Interest on BDC
loan
|
-
|
(30)
|
nm
|
|
(91)
|
(101)
|
(10 %)
|
|
Term Loan principal
payments
|
(199)
|
(333)
|
(40 %)
|
|
(699)
|
(567)
|
23 %
|
|
Interest on Term
Loan
|
(426)
|
(169)
|
152 %
|
|
(994)
|
(353)
|
182 %
|
|
Total free cash
flow
|
5,409
|
438
|
1,135 %
|
|
11,375
|
10,748
|
6 %
|
The free cash flow table above does not include the one-time
principal repayment ($9,000 for the
year ended December 31, 2023)
relating to the amendment to the $20,000 non-revolving term loan (the "Term Loan
Facility") to the Corporation under the Corporation's $50,000 credit agreement entered into in
2023.
SUPPLEMENTARY FINANCIAL MEASURES
The Corporation uses supplementary financial measures that are
not defined terms under IFRS Accounting Standards to provide useful
supplemental financial information to investors.
(i) Capital Expenditures – management of the
Corporation uses a breakdown of capital expenditures to assess the
capital invested related to capital expenditures at a more detailed
level. Capital expenditures have been split into three
categories, asset acquisition, growth capital, and maintenance and
sustaining capital. Asset acquisitions are the purchase of
complete drilling rigs and related equipment from a third
party. Growth capital are expenditures incurred for the
purposes of upgrading existing equipment to improve operating
efficiency and marketability of the asset. Maintenance and
sustaining capital are expenditures related to maintaining the
current operational efficiency of the asset. The following
table shows the split of the three different types of capital
expenditures. The Corporation's method of calculating capital
expenditures may differ from that of other organizations and,
accordingly, its capital expenditures may not be comparable to that
of other companies. The following table reconciles the
Corporation's total capital expenditures.
|
Year ended, December
31
|
|
(000's CAD
$)
|
2023
|
2022
|
%
Change
|
|
Capital
expenditures:
|
|
|
|
|
Asset
acquisitions
|
-
|
26,741
|
nm
|
|
Growth
capital(1)
|
9,271
|
12,303
|
(25 %)
|
|
Maintenance and
sustaining capital(1)
|
5,184
|
2,078
|
149 %
|
|
Total capital
expenditures
|
14,455
|
41,122
|
(65 %)
|
FORWARD-LOOKING INFORMATION
Certain statements contained in this news release constitute
forward-looking statements or forward-looking information
(collectively, "forward-looking information"). Forward-looking
information relates to future events or the Corporation's future
performance. All information other than statements of historical
fact is forward-looking information. The use of any of the words
"anticipate", "plan", "contemplate", "continue", "estimate",
"expect", "intend", "propose", "might", "may", "will", "could",
"should", "believe", "predict", and "forecast" are intended to
identify forward-looking information.
This news release contains forward-looking information
pertaining to, among other things: the Corporation's performance;
expectations associated with the Corporation's outlook, including
among other things, anticipated commodity pricing and the
volatility thereof, expectations about industry activities, market
conditions and corresponding rig utilization; forecasts regarding
utilization and day rates for the remainder of 2024; capital
allocations of the Corporation for 2024; the crewing and
contracting of the Corporation's rigs; the assessment of additional
acquisition opportunities by the Corporation; and anticipated
industry wide inflationary costs and supply chain constraints and
the resulting impact on the profitability of the Corporation.
Forward-looking information is based on certain assumptions that
Stampede has made in respect thereof as at the date of this news
release regarding, among other things: the Corporation's ability to
fully crew and contract its rigs; the success of the measures
implemented by the Corporation to ensure the safe, efficient and
reliable operations at each of its drilling sites; the
creditworthiness of the Corporation's customers and counterparties;
the effectiveness of the Corporation's financial risk management
policies at ensuring all payables are paid within the pre-agreed
credit terms; that the Corporation's critical accounting estimates
and judgments are reasonable; that the Corporation has adequate
access to its Credit Facilities to provide the necessary liquidity
needed to manage fluctuations in the timing of receipt and/or
disbursement of operating cash flows; the belief that adjusted
EBITDA, gross margin and gross margin percentage are useful
supplemental financial measures; the condition of the global
economy, including certain geopolitical risks; the stability of the
economic and political environment in which the Corporation
operates; the ability of the Corporation to retain qualified staff;
management's ability to crew underutilized assets; the ability of
the Corporation to maintain key customers; the ability of the
Corporation to obtain financing on acceptable terms; the belief
that the Corporation's principal sources of liquidity will be
sufficient to service its debt and fund its operations and other
strategic opportunities; the ability of the Corporation to obtain
financing on acceptable terms; the ability to protect and maintain
the Corporation's intellectual property; the Corporation's ability
to maintain financial resiliency in light of current macroeconomic
conditions; and the regulatory framework regarding taxes and
environmental matters in the jurisdictions in which the Corporation
operates.
Forward-looking information is presented in this news release
for the purpose of assisting investors and others in understanding
certain key elements of the Corporation's financial results and
business plan, as well as the objectives, strategic priorities and
business outlook of the Corporation, and in obtaining a better
understanding of the Corporation's anticipated operating
environment. Readers are cautioned that such forward-looking
information may not be appropriate for other purposes.
While Stampede believes the expectations and material factors
and assumptions reflected in the forward-looking information is
reasonable as of the date hereof, there can be no assurance that
these expectations, factors and assumptions will prove to be
correct. Forward-looking information is not a guarantee of future
performance and actual results or events could differ materially
from the expectations of the Corporation expressed in or implied by
such forward-looking information. Accordingly, readers should not
place undue reliance on forward-looking information. All
forward-looking information is subject to a number of known and
unknown risks and uncertainties including, but not limited to: the
condition of the global economy, including trade, inflation,
interest rates, the ongoing conflict in Ukraine, the Middle
East and other geopolitical risks; the condition of the
crude oil and natural gas industry and related commodity prices;
other commodity prices and the potential impact on the Corporation
and the industry in which the Corporation operates, including
levels of exploration and development activities; the impact of
increasing competition; fluctuations in operating results; the
ongoing significant volatility in world markets and the resulting
impact on drilling and completions programs; foreign currency
exchange rates; interest rates; labour and material shortages;
cyber security risks; natural catastrophes; and certain other risks
and uncertainties detailed under the heading "Risks and
Uncertainties" in the Corporation's MD&A and under the heading
"Risk Factors" in the Corporation's AIF, each dated March 14, 2024 for the year ended December 31, 2023, and from time to time in
Stampede's public disclosure documents available at
www.sedarplus.ca.
This list of risk factors should not be construed as exhaustive.
Readers are cautioned that events or circumstances could cause
actual results to differ materially from those predicted,
forecasted, or projected. Statements, including forward-looking
information, are made as of the date of this news release and the
Corporation does not undertake any obligation to update or revise
any forward-looking information, whether as a result of new
information, future events or otherwise, except as may be required
by applicable securities laws. The forward-looking information
contained in this news release is expressly qualified by this
cautionary statement.
SOURCE Stampede Drilling Inc.