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CALGARY, Alberta, Aug. 07, 2026 (GLOBE NEWSWIRE) -- High Arctic Energy Services Inc. (TSX: HWO) (the “Corporation” or “High Arctic”) reported its second-quarter 2026 financial and operating results. The unaudited condensed interim consolidated financial statements (the “Financial Statements”) and management’s discussion and analysis (“MD&A”) for the three and six months ended June 30, 2026 will be available on SEDAR+ at www.sedarplus.ca and on High Arctic’s website at www.haes.ca.

Unless otherwise indicated, all amounts are stated in thousands of Canadian dollars (“CAD”). In this release, the three months ended June 30, 2026 are referred to as the “quarter” or “Q2 2026,” and the comparative three months ended June 30, 2025 are referred to as “Q2 2025.” The six months ended June 30, 2026 are referred to as “YTD” or “YTD-2026,” and the comparative six-month period is referred to as “YTD-2025.”

Lonn Bate, Interim Chief Executive Officer, said High Arctic’s Delta Rental Services business delivered solid financial and operational results in Q2 2026 as customers accelerated development of the Duvernay near the company’s Red Deer operations. The Duvernay Formation is one of Canada’s most significant unconventional oil and gas resource plays, spanning central Alberta and attracting sustained producer investment in liquids-rich zones. He said that trend is expected to continue into the third quarter of 2026. Bate added that High Arctic’s current service offerings and facility locations allow the company to provide customers with needed assets while maintaining a high level of service.

Bate also said Team Snubbing, in which High Arctic holds a 42% non-operating equity interest, maintained strong operational momentum on Alaska’s North Slope and generated record net income during the quarter. Snubbing is a specialized well-intervention technique used to insert or remove tubulars in and out of wells while pressure is present, and the North Slope is Alaska’s principal oil-producing region. He said the results exceeded any prior second-quarter performance since Team Snubbing acquired the snubbing assets from High Arctic in 2022. According to Bate, Team Snubbing is continuing to build relationships with existing and prospective customers across Alaska and is pursuing international opportunities that could provide growth in the second half of 2026 and beyond.

High Arctic highlighted the following points:

• Revenue increased with planned customer well completions, supported by a first-half-weighted capital expenditure program.
• Customer relationships strengthened through Q2 2026 operational execution.
• Profit margin percentage compressed due to the mix of rental services and higher Q1 2026 equipment maintenance costs.
• The 42% equity investment in Team Snubbing contributed a significant net income turnaround, increasing by $1.15 million over YTD-2025.
• General and administrative expenses increased by $0.15 million over YTD-2025, reflecting the appointment of a full-time Interim CEO last August and professional fees.
• Liquidity was $4.4 million, consisting of $3.0 million in cash and cash equivalents and an undrawn bank facility.

Second Quarter 2026 Summary

Revenue for Q2 2026 was $2,941, an increase of $550, or 23%, from Q2 2025. High Arctic said the increase reflected improved customer demand and stable pricing for its rental service offerings.

Oilfield services operating margin was $1,302 in Q2 2026, compared with $1,126 in Q2 2025. The corresponding operating margin percentage was 46.2%, down from 49.1% a year earlier. High Arctic said the higher revenue was partly offset by a lower margin mix, as a greater concentration of well stimulation services reduced the margin percentage. The company noted that well stimulation services typically involve a higher labour component contracted through a third party.

Adjusted EBITDA was $504, or 17% of revenue, compared with $482, or 20% of revenue, in Q2 2025. The change was primarily driven by the same factors affecting oilfield services operating margin.

Operating loss improved to $126 from $254 in Q2 2025. High Arctic said the improvement reflected the same margin drivers, partly offset by 9% higher general and administrative expenses.

Net income was $3 in Q2 2026, compared with a net loss of $295 in Q2 2025. The increase reflected the same factors affecting operating income, Team Snubbing’s $456 stronger performance in the quarter, and the absence of the $362 fair value adjustment recorded in Q2 2025 related to the contingent consideration payable under the 2023 Delta Services Ltd. (“Delta”) acquisition.

High Arctic said it maintained operational excellence and safety throughout the quarter, with continued lost-time and recordable-incident-free work.

The company exited Q2 2026 with net working capital of $4,579, including $3,025 of cash and cash equivalents, an undrawn credit facility and $2,916 in long-term debt.

First Half 2026 Summary

Revenue for YTD-2026 was $5,676, up $950, or 20%, from YTD-2025. High Arctic said the increase was driven by improved customer demand and stable pricing for its rental service offerings.

Oilfield services operating margin for YTD-2026 was $2,424, with a margin percentage of 44.6%, compared with $2,313 and 51.1% in YTD-2025. The lower margin percentage reflected a higher concentration of lower-margin well stimulation services and increased equipment repairs and maintenance expense.

Adjusted EBITDA for YTD-2026 was $892, or 16% of revenue, compared with $986, or 21% of revenue, in YTD-2025. High Arctic said the decline was driven by the same factors affecting operating margin and by 9% higher general and administrative expenses.

Operating loss for YTD-2026 was $330, compared with a loss of $382 in YTD-2025. The improvement reflected the same operating-margin factors, partly offset by modestly higher general and administrative expenses.

Net income was $858 for YTD-2026, compared with a net loss of $415 for YTD-2025. The $1,273 difference was primarily driven by Team Snubbing’s $1,153 stronger YTD-2026 performance, $382 in gains on equipment disposals, and the absence of the $362 gain recorded in YTD-2025 on the fair value adjustment of the contingent consideration payable under the 2023 Delta acquisition.

During the first half of 2026, working capital increased by $935 and long-term debt decreased by $87.

Outlook

High Arctic said its business is driven by customer decisions to drill new oil and natural gas wells and by subsequent activity to complete those wells for production. Those decisions are tied to expectations for commodity prices and pipeline egress to access markets. As a result, the company said both its operating performance and its non-operated equity investment in Team Snubbing depend heavily on customer activity in Western Canada and Alaska.

In Western Canada, High Arctic said its rental equipment and service operations continue to see strong customer demand in central Alberta, where some customers are accelerating spending to drill, complete and tie in more Duvernay wells near the company’s primary operations centre. The company said capital expenditure levels in the second half of 2026 are expected to be significantly lower because equipment deliveries were weighted toward the first half of the year to match customer well-planning timelines.

For Team Snubbing, High Arctic said first-half execution has built momentum that is expected to continue through the second half of 2026. While the Western Canadian Sedimentary Basin—the vast petroleum-producing region underlying much of Western Canada—remains challenged by delayed natural gas well completions, Alaska has shown positive oil well workover production trends. High Arctic said it expects Team Snubbing to keep building customer relationships in Alaska and end the year with three rig packages marketed and labour contract opportunities.

The company also said that, despite global economic and geopolitical uncertainty, Canada’s energy industry has opportunities for long-term growth through new pipeline egress to overseas and U.S. markets. It pointed to recent infrastructure developments, including the announcement of the West Coast Oil Pipeline from Alberta to the B.C. coast and the Northern Shield Energy Corridor, U.S. approval of the Bridger Pipeline Expansion, completion of the Trans Mountain pipeline system expansion in 2024, and the launch and subsequent ramp-up of West Coast LNG exports in 2025.

High Arctic said its 2026 strategic objectives continue to focus on safe and value-based execution for customers, cost control, and equipment offerings to support organic growth and enhanced shareholder value.

2026 Strategic Objectives

High Arctic’s 2026 strategic objectives are to:

• Maintain an unwavering focus on safety excellence and quality service delivery;
• Grow core businesses organically through selective and opportunistic investments;
• Seek accretive acquisitions in Canada to drive shareholder value;
• Steward capital and liquidity to preserve balance sheet strength and financial flexibility; and
• Actively manage direct operating costs and general and administrative expenses.

Operating Results

Rental Services Segment

The rental services segment includes High Arctic’s oilfield rental equipment and labour services in Canada, centered on pressure control equipment and equipment supporting high-pressure stimulation of oil and gas wells in the Western Canadian Sedimentary Basin.

Revenue in Q2 2026 was $2,817, up $524, or 23%, from the prior-year quarter. Revenue for the six months ended June 30, 2026, was $5,430, up $900, or 20%, from YTD-2025. High Arctic said both periods benefited mainly from stronger customer activity throughout 2026.

Gross operating expenses increased in Q2 2026 and YTD-2026 because of higher revenues, customer sales mix, increased use of third-party rental services and, for YTD-2026, higher repairs and maintenance expenses incurred in Q1 2026.

Oilfield services operating margin in Q2 2026 was 46.2%, approximately three percentage points lower on a gross basis than the 49.1% in Q2 2025. The decline was driven by increased use of third-party rental services in the current-year quarter. That same factor, combined with higher repairs and maintenance expense incurred in Q1 2026, affected the YTD-2026 margin compared with YTD-2025.

Other Rental Services Items

During Q1 2026, the Corporation recognized a gain of $340 related to assets disposed of under a rent-to-own agreement. Additional details are described later in the MD&A.

Investments and Corporate Segment

The investments and corporate segment includes High Arctic’s equity investment in Team Snubbing, its equity investment in the Seh’ Chene Well Servicing Partnership (“Seh’ Chene Partnership”), industrial property in Clairmont, Alberta, head office functional support, and monetary investments and borrowings. Additional analysis is presented under the relevant headings below. Readers are directed to Note 20, Segmented Information, in the Financial Statements.

Clairmont Industrial Property

Revenue from the company’s industrial property in Clairmont, Alberta, was $124 in Q2 2026, compared with $98 in Q2 2025. YTD-2026 revenue was $246, compared with $196 in YTD-2025. The change was largely due to the reclassification, in Q4 2025, of the reimbursement of property taxes from the lessee as revenue; previously, the reimbursement reduced the underlying operating expense. Gross lease revenue also benefited from inflation escalators in the lease agreement.

Team Snubbing Equity Investment

High Arctic accounts for its 42% interest in Team Snubbing using the equity method. The company’s share of Team Snubbing’s net income was $108 in Q2 2026, compared with a loss of $348 in Q2 2025.

Team Snubbing reported revenue of $8,112 in Q2 2026, compared with $5,897 in Q2 2025, and revenue of $21,289 for YTD-2026, compared with $13,989 for YTD-2025. Those figures represent increases of 38% and 52%, respectively.

Team Snubbing’s improved results in both Q2 2026 and YTD-2026 were primarily driven by stronger customer activity in Alaska. U.S. operations benefited from steady demand, including well workovers on the Alaskan North Slope and complex workovers and plug-and-abandonment work in southern Alaska that concluded in early Q2 2026. Canadian activity remained similar to 2025 levels, reflecting persistently low AECO natural gas pricing. AECO is the principal natural gas trading hub in Alberta and serves as a benchmark price for Canadian gas.

As a result of the stronger YTD-2026 performance, Team Snubbing continued to make meaningful debt repayments to its primary lender and further reduced debt while improving its working capital position during the quarter.

Liquidity and Capital Resources

Operating Activities

Cash generated from operating activities in Q2 2026 was $205, compared with a use of $477 in Q2 2025. Funds from operating activities were $484 in Q2 2026, compared with $310 in Q2 2025.

Changes in non-cash operating working capital represented an outflow of $279 in Q2 2026, compared with an outflow of $787 in Q2 2025.

For YTD-2026, cash from operating activities from continuing operations was $1,020, compared with $407 in YTD-2025. Funds flow from operating activities from continuing operations was $310 in YTD-2026, compared with $805 in YTD-2025. Changes in non-cash operating working capital from continuing operations represented an inflow of $787 in YTD-2026, compared with $398 in YTD-2025.

High Arctic said the changes in cash from operating activities and funds flow from operating activities were largely due to improved financial results in Q2 2026 and the effect of changes in non-cash working capital.

Investing Activities

Net cash used in investing activities was $235 in Q2 2026, compared with $128 in Q2 2025. For YTD-2026, net cash used in investing activities was $1,032, compared with $817 in YTD-2025.

In both Q2 2026 and Q2 2025, most investing cash outflows related to sustaining and growth capital expenditures for the rental services segment. Those outflows were partly offset by payments received on notes and other receivables and by proceeds from asset dispositions.

The Q2 2026 change in investing cash flows versus the prior-year quarter was due to higher property and equipment expenditures, partly offset by increased payments received on notes receivable. The YTD-2026 change versus YTD-2025 was due to higher property and equipment expenditures and a larger payment on the contingent consideration obligation related to the Delta acquisition, partly offset by increased receipts on notes receivable.

Financing Activities

Net cash used in financing activities was $135 in Q2 2026, compared with $140 in Q2 2025. For YTD-2026, net cash used in financing activities was $270, compared with $275 in YTD-2025. These cash flows consisted of normal-course payments and receipts related to lease liabilities and long-term debt.

Working Capital

At June 30, 2026, working capital was $4,579, compared with $3,644 at December 31, 2025. The increase was driven by positive EBITDA in YTD-2026, together with the addition of the Team Snubbing 2026 receivable under the rent-to-own agreement and the sale of the company’s U.S. snubbing assets.

Long-term Debt

High Arctic has mortgage financing secured by lands and buildings it owns in Alberta, Canada. The mortgage has a remaining initial term of less than six months and carries a fixed interest rate of 4.30%, with monthly payments. The financing includes non-financial covenants requiring lender consent for certain actions, including changes to the underlying business. As of June 30, 2026 and December 31, 2025, High Arctic was in compliance with all covenants.

Non-IFRS Measures

This press release contains references to financial measures that do not have standardized meanings under IFRS and may not be comparable with similar measures used by other companies. High Arctic uses these measures to assess performance and believes they provide useful supplemental information to shareholders and investors. These measures include EBITDA, Adjusted EBITDA, oilfield services operating margin and margin percentage, operating income (loss), funds flow from operating activities and working capital.

These measures should not be considered an alternative to, or more meaningful than, net income (loss), cash from operating activities, current assets, current liabilities, cash or other measures of financial performance determined in accordance with IFRS.

For more information on these non-IFRS measures, including their use by management and investors and reconciliations to IFRS measures, see the company’s MD&A, available at www.sedarplus.ca and through High Arctic’s website at www.haes.ca.

Forward-Looking Statements

This press release contains forward-looking statements. Words such as “may,” “would,” “could,” “will,” “intend,” “plan,” “anticipate,” “believe,” “seek,” “propose,” “estimate,” “expect” and similar expressions are intended to identify forward-looking statements. These statements reflect the Corporation’s current views regarding future events and are subject to risks, uncertainties and assumptions. Actual results may differ materially from those described in this release.

The forward-looking statements in this release include, among others, statements regarding general economic and business conditions; the outlook for the energy industry, including commodity prices, producer activity levels and drilling, completion and tie-in activity; energy supply and demand fundamentals in Western Canada and Alaska; pipeline throughput expansion, new pipeline capacity and LNG export projects; the impact of geopolitical events, government changes, tariffs or trade policies; liquidity risk, capital raising and debt agreements; the settlement of future contingent consideration payments; market prices and costs; operational or expansion decisions; capital expenditure levels; customer relationships; accretive acquisitions; general and administrative expenses; balance sheet strength, liquidity and financial flexibility; the performance of Team Snubbing and its ability to continue as a going concern; Team Snubbing’s expansion in Alaska, including rig packages and labour contract opportunities; the company’s Canadian rental and related labour services business in 2026; customer activity in 2026; future natural gas pricing, including the potential impact of LNG Canada exports on AECO pricing; scaling the Canadian business; corporate transactions; and estimated credit risks.

High Arctic said it has made assumptions including that commodity prices will remain supportive of customer activity and that it will be able to maintain relationships with major customers, market its services successfully, achieve its objectives, source equipment from suppliers, operate in an uncertain environment, remain competitive, attract and retain skilled employees, obtain equity and debt financing on satisfactory terms, manage liquidity risk, renew or refinance its mortgage facility on expiry, and that Team Snubbing will continue as a going concern and meet its obligations.

Factors that could cause actual results and financial condition to differ materially include economic and financial conditions, commodity price volatility, volatility in interest and exchange rates and capital markets, demand and financial performance in the energy industry, changes in customer demand, and developments or changes in laws and regulations, including those affecting the energy industry.

The forward-looking statements are qualified in their entirety by this cautionary statement and are made only as of the date of this press release. High Arctic does not undertake to update them except as required by law.

About High Arctic Energy Services

High Arctic is an energy services provider. The company supplies pressure control equipment and equipment and related labour services supporting the high-pressure stimulation of oil and gas wells, and other oilfield equipment on a rental basis, to exploration and production companies from its bases in Whitecourt and Red Deer, Alberta. High Arctic also maintains a minority equity interest in Team Snubbing, a provider of well-control services to the oil and gas drilling industry with operations in Western Canada and Alaska, U.S.

For further information contact:

Lonn Bate
Interim Chief Executive Officer
P: 587-318-2218
P: +1 (800) 688 7143

High Arctic Energy Services Inc.
Suite 2350, 330 – 5th Ave SW
Calgary, Alberta, Canada T2P 0L4
website: www.haes.ca
Email: info@haes.ca