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Western Energy Serv (TSE:WRG)
TSX:WRG
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Western Energy Services (WRG) AI Stock Analysis

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TSE:WRG

Western Energy Services

(TSX:WRG)

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Neutral 51 (OpenAI - 5.2)
Rating:51Neutral
Price Target:
C$3.00
â–¼(-7.69% Downside)
Action:Reiterated
Date:07/30/26
The score is mainly supported by stronger cash generation and an improving balance sheet (debt reduction and moderate leverage). Offsetting this, the company’s income statement remains the biggest risk with sharply lower TTM revenue and ongoing net losses, while technicals are mixed with weaker short-term trend and valuation constrained by unprofitability.
Positive Factors
Cash generation
Consistent positive operating cash flow (~45M TTM) and free cash flow (~25.1M) create durable liquidity. This supports maintenance capex, rig upkeep, debt reduction and working capital needs, giving the firm flexibility to fund operations through industry cycles without immediate external financing.
Negative Factors
Severe top-line contraction
A roughly 70% TTM revenue decline signals pronounced loss of activity and utilization. Because drilling revenue is utilization-driven, sustained top-line weakness can leave rigs idle, spread fixed costs over fewer revenue days, and materially compress cash generation unless activity recovers meaningfully.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Consistent positive operating cash flow (~45M TTM) and free cash flow (~25.1M) create durable liquidity. This supports maintenance capex, rig upkeep, debt reduction and working capital needs, giving the firm flexibility to fund operations through industry cycles without immediate external financing.
Read all positive factors

Western Energy Services (WRG) vs. iShares MSCI Canada ETF (EWC)

Western Energy Services Business Overview & Revenue Model

Company Description
Western Energy Services Corp. operates as an oilfield services provider across Canada and the United States. The company structures its operations into two primary divisions: Contract Drilling and Production Services. Through its Contract Drilling...
How the Company Makes Money
Western Energy Services makes money primarily by contracting its drilling rigs, equipment, and crews to exploration and production (E&P) companies for well construction. The core revenue stream is contract drilling revenue, typically earned on a d...

Western Energy Services Financial Statement Overview

Summary
Cash flow is a clear strength (TTM operating cash flow ~45.0M and positive free cash flow ~25.1M) and leverage has improved materially (debt down to ~75.0M TTM; debt/equity ~0.32x). However, financial performance is held back by weak and volatile profitability: TTM revenue is down ~70% YoY and the company remains loss-making (net margin ~-13.0%) with inconsistent earnings across years.
Income Statement
34
Negative
Balance Sheet
64
Positive
Cash Flow
72
Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue202.32M217.50M223.08M233.45M200.34M131.68M
Gross Profit90.34M23.33M182.03M21.82M160.25M89.65M
EBITDA44.89M21.57M42.65M45.34M37.94M22.43M
Net Income-25.90M-26.00M-7.16M-7.21M29.00M-35.81M
Balance Sheet
Total Assets362.15M378.65M430.98M442.93M475.71M456.00M
Cash, Cash Equivalents and Short-Term Investments10.89M2.66M3.79M6.25M8.88M7.48M
Total Debt75.05M86.60M98.75M115.22M131.69M240.42M
Total Liabilities97.00M113.20M135.13M147.27M173.18M269.50M
Stockholders Equity263.04M263.19M293.62M293.37M300.59M184.51M
Cash Flow
Free Cash Flow25.13M10.32M25.19M28.73M-5.69M9.77M
Operating Cash Flow45.02M32.00M46.80M51.35M28.54M16.63M
Investing Cash Flow-17.03M-19.25M-21.91M-25.45M-28.95M-5.69M
Financing Cash Flow-22.32M-13.88M-27.03M-28.85M1.44M-22.79M

Western Energy Services Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3.25
Price Trends
50DMA
3.32
Positive
100DMA
3.23
Positive
200DMA
2.87
Positive
Market Momentum
MACD
0.04
Negative
RSI
58.96
Neutral
STOCH
97.41
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:WRG, the sentiment is Positive. The current price of 3.25 is below the 20-day moving average (MA) of 3.29, below the 50-day MA of 3.32, and above the 200-day MA of 2.87, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 58.96 is Neutral, neither overbought nor oversold. The STOCH value of 97.41 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:WRG.

Western Energy Services Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
C$712.65M11.158.75%9.98%-14.91%442.58%
70
Outperform
C$570.68M12.2920.25%7.97%1.48%-12.96%
70
Outperform
C$1.31B14.7012.81%3.48%20.43%-20.30%
65
Neutral
$15.17B7.614.09%5.20%3.87%-62.32%
58
Neutral
C$1.57B-50.23-2.03%5.07%3.86%-132.87%
51
Neutral
C$118.15M-4.54-9.61%7.03%-10.90%-349.06%
41
Neutral
C$696.76M-17.71-3.11%133.33%-1.48%-6.74%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:WRG
Western Energy Services
3.49
1.45
71.08%
TSE:PD
Precision Drilling
124.69
45.03
56.53%
TSE:CFW
Calfrac Well Services
6.86
3.78
122.94%
TSE:ESI
Ensign Energy Services
3.87
1.64
73.54%
TSE:PHX
PHX Energy Services
12.54
5.78
85.48%
TSE:TCW
Trican Well Service
6.32
0.73
13.08%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 30, 2026