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2024 ANNUAL OPERATIONAL HIGHLIGHTS

• Revenue of $82,074 – This represents a 5% decrease as compared to 2023. The decrease was primarily driven by a 7% decrease in operating days for 2024.

• Gross Margin⁽¹⁾ of 33% – This represents a decrease of 1% from 34% in the corresponding 2023 period. The decrease was primarily due to the reduction in operating days and revenue, resulting in an increase in repair and maintenance costs per day.

• Net Income of $5,163 – This represents a 51% decrease from 2023. The decrease was primarily related to decreased Adjusted EBITDA, along with increased depreciation costs and income tax expense.

• Adjusted EBITDA⁽¹⁾ of $17,475 – This represents a 15% decrease as compared to 2023. The decrease was primarily due to customer drilling program deferrals and operator consolidation, which resulted in a reduction in operating days and operating margin.

• Free Cash Flow⁽¹⁾ of $9,434 – This represents a decrease of $1,941 primarily related to a $3,160 decrease in funds from operating activities, along with an increase in principal and interest payments on the Corporation's $20,000 non-revolving term loan.

• Repurchase of 11,017 common shares – In 2024, the Corporation repurchased and cancelled 11,017 common shares under its NCIB at a weighted average price per common share of $0.21, for total consideration of $2,406. The total amount of common shares repurchased and cancelled during the financial year ended December 31, 2024, represents 5.4% of the total issued and outstanding common shares of the Corporation.

• Capital Expenditures of $14,642 – Capital expenditures for 2024 were comprised of $10,971 of growth capital and $3,671 of maintenance and sustaining capital.

OUTLOOK

Ongoing geopolitical challenges affecting global energy supply and demand are expected to continue to impact the volatility on commodity prices, which we anticipate continuing into 2025. However, increased tidewater access for Canadian producers from the startup of the Trans Mountain pipeline expansion during 2024 and LNG Canada planned for 2025 are anticipated to help alleviate some of these pressures.

The evolving political situations in Canada and the U.S. are causing uncertainty in the energy sector. Recently announced U.S. tariffs on steel and aluminum, as well as tariffs on Canadian energy imports, have led to Canadian retaliatory tariffs on certain U.S. imports. Despite the implementation of tariffs, price volatility, and other factors, Stampede anticipates modest growth in oilfield activity in Canada, with the potential for attractive returns for its shareholders.

Stampede had 14 out of its 19 rigs operational in the first quarter of 2025. Stampede anticipates building on this positive momentum into the back half of 2025. The Corporation ended 2024 with a debt to EBITDA ratio of 1.09x. Stampede continues to demonstrate prudent debt management, maintaining financial risk at manageable levels.

With the NCIB program renewed on June 3, 2024, the Corporation can further return value to shareholders through share repurchases, dependent on market conditions and growth prospects. Notably, since the inception of the Corporation's NCIB program in August 2023, the Corporation has repurchased 27,816 common shares, representing 12.2% of the Corporation's total issued and outstanding common shares, at an average price of $0.23 per share, returning a total of $6,426 to its shareholders.

FINANCIAL SUMMARY

DESCRIPTION OF STAMPEDE'S BUSINESS

Stampede is an energy services company that provides premier contract drilling services in Western Canada. Stampede operates a fleet of 18 telescopic double drilling rigs and 1 high spec triple drilling rig suited for most formations within the Western Canadian Sedimentary Basin ("WCSB"). The Corporation's head office is located in Calgary, Alberta with operations based out of Nisku, Alberta and Estevan, Saskatchewan. The Corporation's common shares trade on the TSX Venture Exchange (the "TSXV") under the symbol "SDI".

RESULTS FROM OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2024

• Revenue of $82,074 – a decrease of $3,882 (5%) from $85,956 in the corresponding 2023 period. The decrease was primarily driven by a 7% decrease in operating days for 2024.

• Operating days of 2,919 – a decrease of 212 operating days (7%) from 3,131 operating days in the corresponding 2023 period. Operating days decreased due to customer consolidation, and drilling program deferrals in 2024, resulting in lower drilling rig utilization compared to the corresponding period of 2023.

• Gross margin percentage of 33% – a decrease of 1% from 34% in the corresponding 2023 period. The gross margin decrease was primarily due to the reduction in operating days and revenue, resulting in an increase in repair and maintenance costs per day.

• Net income of $5,163 – a decrease of $5,341 (51%) from $10,504 in the corresponding 2023 period. The decrease was primarily related to decreased Adjusted EBITDA, along with increased depreciation costs and income tax expense.

• General and administrative expenses of $11,311 – an increase of $1,223 (12%) from $10,088 in the corresponding 2023 period. The increase was primarily related to increased worker compensation insurance, IT implementation costs, and credit loss allowance in 2024.

• Adjusted EBITDA of $17,475 – a decrease of $3,004 (15%) from $20,479 in the corresponding 2023 period. The decrease was primarily due to customer drilling program deferrals and operator consolidation resulting in a reduction in operating days, and operating margin.

RESULTS FROM OPERATIONS FOR THE THREE MONTH PERIOD ENDED DECEMBER 31, 2024

• Revenue of $20,395 – a decrease of $1,099 (5%) from $21,494 in the corresponding 2023 period. The decrease was primarily due to a decrease in third party rebills, and a decrease in revenue per day.

• Operating days of 722 – a decrease of 5 operating days (1%) from 727 operating days in the corresponding 2023 period. Operating days decreased due to customer drilling program deferrals in the last quarter of 2024, resulting in lower drilling rig utilization compared to the corresponding period of 2023.

• Gross margin percentage of 33% – a decrease of 7% from 40% in the corresponding 2023 period. The decrease was due to a reduction in third party rebills, decrease in revenue per day, and an increase in operating costs per day.

• Net income of $687 – a decrease of $2,550 (79%) from $3,237 in the corresponding 2023 period. The decrease was primarily related to the decrease in operating margin, higher deprecation expense, and increased income tax expense compared to the corresponding period of 2023.

• General and administrative expenses of $3,128 – an increase of $614 (24%) from $2,514 in the corresponding 2023 period. The increase was primarily related to increased worker compensation insurance, IT implementation costs, and credit loss allowance in the last quarter of 2024.

• Adjusted EBITDA of $3,976 – a decrease of $2,311 (37%) from $6,287 in the corresponding 2023 period. The decrease was a result of a reduction in third party rebills, and a reduction in operating margin.

NON-GAAP AND OTHER FINANCIAL MEASURES

This press release contains references to (i) adjusted EBITDA, (ii) Gross margin (iii) Gross margin percentage and (iv) free cash flow. These financial measures are not measures that have any standardized meaning prescribed by IFRS Accounting Standards and are therefore referred to as non-generally accepted accounting principles ("non-GAAP") measures. The non-GAAP measures used by the Corporation may not be comparable to similar measures used by other companies.

SUPPLEMENTARY FINANCIAL MEASURES

The Corporation uses supplementary financial measures that are not defined terms under IFRS Accounting Standards to provide useful supplemental financial information to investors.

FORWARD-LOOKING INFORMATION

Certain statements contained in this press release constitute forward-looking statements or forward-looking information (collectively, "forward-looking information"). Forward-looking information relates to future events or the Corporation's future performance. All information other than statements of historical fact is forward-looking information. The use of any of the words "anticipate", "plan", "contemplate", "continue", "estimate", "expect", "intend", "propose", "might", "may", "will", "could", "should", "believe", "predict", and "forecast" are intended to identify forward-looking information.

This press release contains forward-looking information pertaining to, among other things: the Corporation's performance; expectations associated with the Corporation's outlook, including, among other things, anticipated commodity prices, the volatility thereof and potential mitigating factors and expectations about industry activities and the impacts thereof on the Corporation; the return of value to shareholders through the Corporation's NCIB program; the assessment of additional acquisition opportunities by the Corporation; and expected impacts of tariffs on the Corporation and the industry in which it operates.

Forward-looking information is based on certain assumptions that Stampede has made in respect thereof as at the date of this press release regarding, among other things: the Corporation's ability to fully crew and contract its rigs; that market conditions and growth prospects will permit the return of value to shareholders through the Corporation's NCIB program; the success of the measures implemented by the Corporation to ensure the safe, efficient and reliable operations at each of its drilling sites; the creditworthiness of the Corporation's customers and counterparties; the effectiveness of the Corporation's financial risk management policies at ensuring all payables are paid within the pre-agreed credit terms; that the Corporation's critical accounting estimates and judgments are reasonable; that the Corporation has adequate access to its credit facilities to provide the necessary liquidity needed to manage fluctuations in the timing of receipt and/or disbursement of operating cash flows; the condition of the global economy, including certain geopolitical risks; the stability of the economic and political environment in which the Corporation operates; the ability of the Corporation to retain qualified staff; management's ability to crew underutilized assets; the ability of the Corporation to maintain key customers; the ability of the Corporation to obtain financing on acceptable terms; the belief that the Corporation's principal sources of liquidity will be sufficient to service its debt and fund its operations and other strategic opportunities; the ability of the Corporation to obtain financing on acceptable terms; the ability to protect and maintain the Corporation's intellectual property; the Corporation's ability to maintain financial resiliency in light of current macroeconomic conditions; and the regulatory framework regarding taxes and environmental matters in the jurisdictions in which the Corporation operates.

Forward-looking information is presented in this press release for the purpose of assisting investors and others in understanding certain key elements of the Corporation's financial results and business plan, as well as the objectives, strategic priorities and business outlook of the Corporation, and in obtaining a better understanding of the Corporation's anticipated operating environment. Readers are cautioned that such forward-looking information may not be appropriate for other purposes.

While Stampede believes the expectations and material factors and assumptions reflected in the forward-looking information is reasonable as of the date hereof, there can be no assurance that these expectations, factors and assumptions will prove to be correct. Forward-looking information is not a guarantee of future performance and actual results or events could differ materially from the expectations of the Corporation expressed in or implied by such forward-looking information. Accordingly, readers should not place undue reliance on forward-looking information. All forward-looking information is subject to a number of known and unknown risks and uncertainties including, but not limited to: the condition of the global economy, including trade, inflation, interest rates, the ongoing conflict in Ukraine, the Middle East and other geopolitical risks, including the imposition of tariffs and other non-trade barriers; the condition of the crude oil and natural gas industry and related commodity prices; other commodity prices and the potential impact on the Corporation and the industry in which the Corporation operates, including levels of exploration and development activities; the impact of increasing competition; fluctuations in operating results; the ongoing significant volatility in world markets and the resulting impact on drilling and completions programs; foreign currency exchange rates; interest rates; labour and material shortages; cyber security risks; natural catastrophes; and certain other risks and uncertainties detailed under the heading "Risks and Uncertainties" in the Corporation's MD&A and under the heading "Risk Factors" in the Corporation's AIF, each dated March 13, 2025 for the year ended December 31, 2024, and from time to time in Stampede's public disclosure documents available at www.sedarplus.ca.

This list of risk factors should not be construed as exhaustive. Readers are cautioned that events or circumstances could cause actual results to differ materially from those predicted, forecasted, or projected. Statements, including forward-looking information, are made as of the date of this press release and the Corporation does not undertake any obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws. The forward-looking information contained in this press release is expressly qualified by this cautionary statement.

SOURCE Stampede Drilling Inc.

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