Trican Reports Second Quarter Results for 2025 and Declares Quarterly Dividend

Core Viewpoint - Trican Well Service Ltd. reported a marginal increase in revenue and profit for Q2 2025, driven by slight operational activity despite weak natural gas prices. The company also announced a strategic acquisition of Iron Horse Coiled Tubing Inc. to enhance its service capabilities in the Western Canadian Sedimentary Basin [3][5][22]. Financial Performance - Revenue for Q2 2025 was $213.8 million, up from $211.8 million in Q2 2024, reflecting a 0.9% increase [5]. - Adjusted EBITDAS for Q2 2025 was $47.3 million, compared to $45.2 million in Q2 2024, indicating a 4.6% increase [5]. - Profit for Q2 2025 was $19.5 million, up from $16.2 million in Q2 2024, representing a 20.3% increase [5]. - Free cash flow for Q2 2025 was $24.4 million, compared to $20.9 million in Q2 2024, marking a 16.8% increase [5]. Strategic Initiatives - The company entered into an agreement to acquire Iron Horse for approximately $77.35 million in cash and 33.76 million common shares, enhancing its operational expertise in coiled tubing and fracturing services [3][22]. - Trican's NCIB program resulted in the purchase and cancellation of 8,061,062 common shares in Q2 2025, representing about 4% of outstanding shares [6]. Capital Expenditures and Technology - Capital expenditures for Q2 2025 totaled $16.2 million, primarily for maintenance and electric ancillary fracturing equipment [10]. - A significant technology modernization initiative is underway, with an investment of $10 million anticipated for 2025 to enhance operational efficiency and incorporate advanced technologies [11][24]. Market Outlook - The commencement of LNG exports from Canada is expected to increase natural gas demand and prices, benefiting the industry [18]. - The Trans Mountain Pipeline expansion is now operational, improving oil export capacity and narrowing price differentials for Canadian crude [19]. - The Montney and Duvernay resource plays are anticipated to see increased activity due to attractive well economics and demand from LNG exports [21]. Dividend and Return of Capital - The company paid a cash dividend of $0.050 per share in Q2 2025, totaling $9.0 million, and plans to increase the quarterly dividend to $0.055 per share following the acquisition [9][25].