AKITA announces third quarter 2026 results with increased revenue and US drilling activity.

CALGARY, AB, Nov. 5, 2026 /CNW/ — AKITA Drilling Ltd. (TSX: AKT)

AKITA Drilling Ltd. announces its results for the three and nine months ended September 30, 2026. Third quarter revenue increased 55% to $69,177,000 from $44,604,000 in the same period of 2025 (25% when including revenue from joint venture drilling rigs in the third quarter of 2025, which is included in 2026 revenue due to a change in accounting policy), supported by higher US drilling activity and strong contributions from the Fox Drilling assets that were acquired at the end of the second quarter of 2026. Higher US activity and the contribution of the Fox rigs partially offset lower Canadian operating margins, rig relocation costs, higher selling and administrative expenses and increased depreciation. The Company reported a net loss of $2,817,000, compared with net income of $1,545,000 a year earlier.

US operating days increased 54% to 896 in the third quarter of 2026, compared to 583 in the same period of 2025. Adjusted revenue per operating day also improved, increasing to $38,798 from $37,437 in the prior-year quarter and from $35,216 in the second quarter of 2026. The improvement in per operating day adjusted revenue reflects positive day-rate momentum as rigs were re-contracted at higher rates throughout the quarter. The Company had 12 active US rigs at September 30, 2026, up from five at the beginning of the year, following a peak of  14 active rigs in July.

The third quarter represented the first full quarter following the June 30, 2026 acquisition of Fox Drilling. The six acquired AC triple rigs, including five high-specification walking triples designed primarily for the Montney and Duvernay resource plays, expanded AKITA’s Canadian fleet to 23 rigs. The Fox rigs contributed 40% of the Canadian Division revenue in the third quarter, helping offset the impact of delayed reactivations within AKITA’s existing Canadian fleet.

AKITA will see its Canadian activity improve in the fourth quarter of 2026 and into the first quarter of 2027, supported by demand for high-specification triple rigs serving oil sands and deep natural gas programs. In the US, anticipated customer programs are expected to support an increase in the active rig count over the next six months, with further day-rate improvements possible, although their timing and extent remain uncertain. Priorities include increasing Canadian activity, improving US day rates, managing costs, continuing share repurchases under the renewed normal course issuer bid and completing selective rig upgrades. The timing of customer spending may be affected by weak and volatile Canadian natural gas prices and continued customer capital discipline.

The Company reported a third quarter net loss of $2,817,000 ($0.05 per Common share, basic and diluted), compared with net income of $1,545,000 ($0.04 per share) in 2025. Results included $2,022,000 of one-time costs to relocate a rig from the US to Canada, which arrived in Canada after quarter end. For the first nine months of 2026, the net loss was $11,077,000 ($0.25 per Common share, basic and diluted), compared with net income of $12,474,000 ($0.31 per share) in the corresponding period of 2025.

Net cash used in operating activities was $296,000 in the third quarter, compared with net cash from operating activities of $5,663,000 in 2025, reflecting lower earnings and an increase in working capital over the quarter. Adjusted funds flow from operations was $7,101,000, compared with $9,272,000. For the first nine months, net cash from operating activities was $13,459,000, compared with $32,881,000, and adjusted funds flow from operations was $15,885,000, compared with $36,164,000.

Capital expenditures totaled $10,444,000 in the third quarter of 2026, compared with $8,832,000 in 2025, and $23,352,000 for the first nine months of 2026, compared with $23,449,000 in 2025. Total debt was $49,245,000 at September 30, 2026, compared with $39,674,000 a year earlier, with additional borrowing used to fund working capital during the quarter.

CONSOLIDATED FINANCIAL HIGHLIGHTS

Canadian Drilling Division

At January 1, 2026, AKITA amended its joint venture agreements, resulting in the joint ventures being accounted for as joint operations. Accordingly, the Company’s proportionate share of the joint operations is now recognized within the applicable line items of the financial statements rather than being presented as a single line item. As a result, all revenue and expenses are included in their respective financial statement line items.

During the third quarter of 2026, Canadian adjusted revenue remained relatively consistent at $27,727,000, and operating days increased to 718 from 715 in the same period of 2025. Canadian adjusted operating margin decreased 22% to $6,091,000 from $7,800,000 a year earlier, as adjusted operating and maintenance expenses increased to $21,636,000 from $19,578,000. Higher costs reflected additional personnel following the Fox acquisition, operating support for the Canadian capital program and onetime expenses that are not expected to recur. Adjusted operating margin per operating day was $8,483, compared with $10,909 a year earlier.

The Canadian fleet stands at 23 rigs at September 30, 2026, up from 17 a year earlier. One rig being repatriated from the US is expected to be added to the Canadian fleet in the first half of 2027. AKITA also acquired two single rigs for $1.5 million, one of which is being upgraded for addition to the fleet to commence a winter delineation program in the fourth quarter, with the second booked for a program commencing early in the second quarter of 2027. For the first nine months of 2026, Canadian adjusted revenue decreased 9% to $73,794,000, operating days decreased 9% to 1,931 and adjusted operating margin decreased 18% to $18,966,000.

United States Drilling Division

US adjusted operating margin increased 13% to $6,441,000 in the third quarter of 2026 from $5,701,000 in 2025, as higher activity more than offset lower margin per operating day. Operating days increased 54% to 896 from 583, and adjusted revenue increased 59% to $34,763,000 from $21,826,000. Adjusted revenue per operating day increased 4% to $38,798 from $37,437. Included in revenue for the third quarter of 2026 is $372,000 in pipe replacement revenue compared to $1,338,000 in the same period of 2025.

Adjusted operating and maintenance expenses increased to $28,322,000 from $16,125,000, reflecting higher activity, $2,022,000 of one-time rig relocation costs, startup costs and higher maintenance costs. Expenses per operating day increased to $31,609 from $27,659, and adjusted operating margin per operating day decreased to $7,189 from $9,778.

For the first nine months of 2026, US adjusted operating margin decreased 43% to $15,420,000 from $27,031,000, reflecting fewer operating days, lower revenue per operating day and higher costs per day. Operating days decreased to 2,249 from 2,378, and adjusted revenue decreased 10% to $82,592,000 from $91,615,000.

 FURTHER INFORMATION

This news release shall be used as preparation for reading the full disclosure documents. AKITA’s unaudited interim condensed consolidated financial statements and management’s discussion and analysis for the quarter ended September 30, 2026 will be available on the AKITA website (www.akita-drilling.com) and via SEDAR (www.sedarplus.ca) or can be requested in print from the Company.

INVESTOR INQUIRIES:

Darcy Reynolds, CPA, CA

Vice President, Finance and Chief Financial Officer

(403) 292-7530

Non-GAAP and Supplementary Financial Measures

Non-GAAP Financial Measures

Adjusted Revenue and Adjusted Operating and Maintenance Expenses

Revenue and operating and maintenance expenses in AKITA’s Canadian operating segment include revenue and expenses from AKITA’s wholly-owned drilling rigs as well as its share of joint venture revenue and expenses. Excluded from the revenue and expenses in AKITA’s Canadian and US operating segment are flow through charges that are billed to operators and repaid to the Company. The volume and timing of the flow through charges can artificially impact the operational per day analysis and as a result management and certain investors may find the comparability between periods is improved when these flow through charges are excluded from revenue per day and operating and maintenance expense per day. The flow through charges do not have any impact on the Company’s net earnings as the amounts offset each other.

Adjusted Funds Flow from Operations and Adjusted EBITDA

Adjusted funds flow from operations is not a recognized GAAP measure under IFRS and readers should note that AKITA’s method of determining adjusted funds flow from operations may differ from methods used by other companies, and includes cash flow from operating activities before working capital changes, equity income from joint ventures, and income tax amounts paid or recovered during the period.  Nonetheless, management and certain investors may find adjusted funds flow from operations to be a useful measurement to evaluate the Company’s operating results at year-end and within each year, since the seasonal nature of the business affects the comparability of non-cash working capital changes both between and within periods. Adjusted earnings before interest and finance costs, taxes, depreciation and amortization, other non-cash items and one-time gains and losses (“Adjusted EBITDA”) is not a recognized GAAP measure under IFRS and readers should note that AKITA’s method of determining Adjusted EBITDA may differ from methods used by other companies, and removes the aspect of how the Company finances its operations from adjusted funds flow from operations.

Non-GAAP Ratios

“Adjusted funds flow from operations per share” is calculated on the same basis as net loss per class A and class B share basic and diluted, utilizing the basic and diluted weighted average number of class A and class B shares outstanding during the periods presented.

“Adjusted revenue per operating day” may be useful to analysts, investors, other interested parties and management as a measure of pricing strength and is calculated by dividing adjusted revenue by the number of operating days for the period.

“Adjusted operating and maintenance expenses per operating day” may be useful to analysts, investors, other interested parties and management as it demonstrates a degree of cost control and provides a proxy for specific inflation rates incurred by the Company

FORWARD-LOOKING INFORMATION:

Certain statements contained in this news release may constitute forward-looking information. Forward-looking information is often, but not always, identified by the use of words such as “anticipate”, “plan”, “estimate”, “expect”, “may”, “will”, “intend”, “should”, and similar expressions. In particular, forward-looking information in this news release includes references to anticipated Canadian and US drilling activity and customer programs, demand for high-specification rigs, potential day-rate improvements, the timing of rig additions and upgrades, cost management, share repurchases under the renewed normal course issuer bid and the finalization of the preliminary Fox purchase price allocation.

Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information.

Although the Company believes that the expectations reflected in the forward-looking information are reasonable based on the information available on the date such statements are made and processes used to prepare the information, such statements are not guarantees of future performance and no assurance can be given that these expectations will prove to be correct. By their nature, these forward-looking statements involve numerous assumptions, inherent risks and uncertainties, both general and specific, and therefore carry the risk that the predictions and other forward-looking statements will not be realized.  Readers of this news release are cautioned not to place undue reliance on these statements as a number of important factors could cause actual future results to differ materially from the plans, objectives, estimates and intentions expressed in such forward-looking statements.

The Company’s actual results could differ materially from those anticipated in these forward-looking statements as a result of, among other things, prevailing economic conditions; the level of exploration and development activity carried on by AKITA’s customers, world crude oil prices and North American natural gas prices; global liquefied natural gas (LNG) demand, weather, access to capital markets; and government policies.  We caution that the foregoing list of factors is not exhaustive and that while relying on forward-looking statements to make decisions with respect to AKITA, investors and others should carefully consider the foregoing factors, as well as other uncertainties and events, prior to making a decision to invest in AKITA.  Except where required by law, the Company does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by it or on its behalf.

SOURCE AKITA Drilling Ltd.