Western Energy Services (WRG) AI Stock Analysis

• Market Cap: C$69.72M
• Dividend Yield: N/A
• Average Volume (3M): 989.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.19
• Revenue Growth: -0.38%
• EPS Growth: 6.98%
• Country: CA
• Employees: 615
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Drilling
• EPS (TTM): -0.07
• Shares Outstanding: 33,843,020
• 10 Day Avg. Volume: 1,388
• 30 Day Avg. Volume: 989
• PEG Ratio: 0.00
• Price to Book (P/B): 0.30
• Price to Sales (P/S): 0.40
• P/FCF Ratio: 3.51
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 46 Neutral
• Price Target: C$2.00 ▼(-6.10% Downside)

Western Energy Services faces significant challenges with profitability and valuation, as indicated by negative net profit margins and a negative P/E ratio. The technical analysis suggests a bearish trend, with the stock trading below key moving averages. While the company demonstrates strong cost management, it needs to focus on improving profitability and revenue growth to enhance its financial standing.

Western Energy Services Business Overview & Revenue Model

Company Description

Western Energy Services Corp. operates as an oilfield service company in Canada and the United States. It operates through Contract Drilling and Production Services segments. The Contract Drilling segment provides contract drilling services using drilling rigs and auxiliary equipment. The Production Services segment offers well servicing rig and related equipment, as well as oilfield rental equipment services to other oilfield service companies. The company owns and operates 57 drilling rigs; and 63 service rigs. It serves crude oil and natural gas exploration and production companies. The company was incorporated in 2013 and is headquartered in Calgary, Canada.

How the Company Makes Money

Western Energy Services generates revenue primarily through its drilling and production services. The company earns money by charging clients for the use of its drilling rigs and the associated labor costs involved in operating those rigs. Additionally, WRG provides well servicing and production testing services, which also contribute to its revenue streams. Key factors that influence the company's earnings include oil and gas market prices, demand for drilling activities, and the level of capital spending by exploration and production companies. Strategic partnerships with oil and gas operators can also enhance revenue opportunities by securing long-term contracts and expanding service offerings.

Western Energy Services Financial Statement Overview

Summary

Western Energy Services shows resilience in cash flow and a stable balance sheet, but faces profitability challenges with persistent net losses. The company has improved its operational efficiency slightly.

Income Statement

Western Energy Services shows mixed results with a modest revenue growth rate of 3.2% and improving gross profit margin at 68.6% in TTM. However, persistent net losses and a negative net profit margin of -2.8% indicate profitability challenges. The EBIT margin improved slightly to 0.5% from the previous year's 0.2%, signifying slight operational efficiency gains, yet the company remains unprofitable.

Balance Sheet

The company exhibits a stable balance sheet with a debt-to-equity ratio of 0.37, lower than industry norms, suggesting a conservative leverage approach. The equity ratio stands at 67.3%, indicating a solid equity base. However, the return on equity is negative due to net losses, reflecting challenges in delivering shareholder value.

Cash Flow

Cash flow analysis reveals positive trends, with operating cash flow consistently exceeding net income, evidenced by a strong operating cash flow to net income ratio of -6.48. Free cash flow declined by 33.6% in TTM but remains positive, ensuring liquidity. The free cash flow to net income ratio is -2.62, indicating some resilience in cash flow generation despite net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	227.08M	223.08M	233.45M	200.34M	131.68M	103.68M
Gross Profit	217.98M	182.03M	21.82M	160.25M	89.65M	55.42M
EBITDA	43.79M	42.65M	45.34M	37.94M	22.43M	10.32M
Net Income	-5.77M	-7.16M	-7.21M	29.00M	-35.81M	-41.30M
Balance Sheet
Total Assets	407.79M	430.98M	442.93M	475.71M	456.00M	495.63M
Cash, Cash Equivalents and Short-Term Investments	5.23M	3.79M	6.25M	8.88M	7.48M	19.32M
Total Debt	94.31M	98.75M	115.22M	131.69M	240.42M	241.99M
Total Liabilities	119.46M	135.13M	147.27M	173.18M	269.50M	273.15M
Stockholders Equity	286.03M	293.62M	293.37M	300.59M	184.51M	220.80M
Cash Flow
Free Cash Flow	17.22M	25.19M	28.73M	-5.69M	9.77M	24.93M
Operating Cash Flow	42.22M	46.80M	51.35M	28.54M	16.63M	27.72M
Investing Cash Flow	-25.70M	-21.91M	-25.45M	-28.95M	-5.69M	-3.01M
Financing Cash Flow	-26.83M	-27.03M	-28.85M	1.44M	-22.79M	-9.41M

Western Energy Services Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.13
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:WRG, the sentiment is Negative. The current price of 2.13 is above the 20-day moving average (MA) of 2.07, above the 50-day MA of 2.09, and below the 200-day MA of 2.21, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 48.91 is Neutral, neither overbought nor oversold. The STOCH value of 63.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:WRG.

Western Energy Services Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AKT.A	―	C$86.55M	4.00	12.72%	―	19.58%	344.29%
PHX	―	C$337.95M	6.44	23.75%	10.94%	6.97%	-36.60%
Sector *	―	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
ESI	―	C$434.09M	14.37	-2.86%	―	-1.65%	-279.49%
SDI	―	C$26.99M	34.62	1.08%	―	-12.27%	-91.01%
WRG	―	C$69.72M	―	-2.38%	―	-0.38%	6.98%

Western Energy Services Corporate Events

Western Energy Services Reports Q3 2025 Financial Results Amid Strategic Shifts

Western Energy Services Corp. reported a decrease in third-quarter revenue for 2025 by 14% compared to the previous year, attributed to lower activity in its contract drilling and well servicing segments. Despite this, the company achieved a 14% increase in Adjusted EBITDA due to cost savings from a reorganization. The company faced a net loss of $2.2 million, impacted by higher depreciation and losses on asset sales, but mitigated by increased Adjusted EBITDA and tax recovery. Operationally, the company saw reduced utilization rates in both Canada and the US, with a strategic shift in the US market focus to North Dakota, resulting in improved revenue per operating day.

The most recent analyst rating on (TSE:WRG) stock is a Hold with a C$2.00 price target. To see the full list of analyst forecasts on Western Energy Services stock, see the TSE:WRG Stock Forecast page.

Western Energy Services Appoints New CFO to Enhance Strategic Depth

Western Energy Services Corp. has announced the appointment of Orson Ross as the new Chief Financial Officer, effective September 15, 2025. With over 25 years of experience in executive finance roles, including positions at Cleantek Industries Inc. and Dexterra Group Inc., Ross is expected to enhance the strategic depth of Western with his extensive background in finance and the oil and gas services sector. This appointment marks a strategic move for Western, potentially strengthening its market position and operational capabilities.