Ensign Energy Services Inc. Reports 2013 Results

CALGARY, March 17, 2014 /CNW/ - 
Overview 
Ensign Energy Services Inc. ("Ensign" or the "Company") generated the second 
highest revenue in its history of $2,098.0 million for the year ended December 
31, 2013, a decrease of five percent over revenue of $2,197.3 million recorded 
in the prior year.  Operating earnings, expressed as adjusted EBITDA (defined 
as earnings before interest, income taxes, depreciation, share-based 
compensation expense (recovery) and foreign exchange and other), for 2013 were 
$485.7 million ($3.18 per common share), a 13 percent decrease from adjusted 
EBITDA of $561.0 million ($3.67 per common share) for the year ended December 
31, 2012.  Net income for the year ended December 31, 2013 was $128.9 million 
($0.84 per common share), a 41 percent decrease from $217.5 million ($1.42 per 
common share) recorded in 2012.  Excluding the tax-effected impact of 
share-based compensation expense (recovery) and foreign exchange and other, 
adjusted net income for the year ended December 31, 2013 totaled $143.9 
million ($0.94 per common share), 34 percent lower than adjusted net income of 
$219.5 million ($1.44 per common share) recorded for the year ended December 
31, 2012.  Funds from operations for 2013 decreased 14 percent to $435.6 
million ($2.85 per common share) from $506.4 million ($3.32 per common share) 
in the prior year. 
During the fourth quarter of 2013, the Company generated revenue of $536.0 
million, an increase of one percent from revenue of $530.1 million recorded in 
the fourth quarter of 2012.  Adjusted EBITDA was $112.5 million ($0.74 per 
common share) for the fourth quarter of 2013, a decrease of nine percent from 
adjusted EBITDA of $123.9 million ($0.81 per common share) recorded in the 
fourth quarter of 2012.  Net income decreased 45 percent to $26.9 million 
($0.18 per common share) compared to $48.5 million ($0.32 per common share) 
recorded in 2012.  Adjusted net income for the fourth quarter of 2013 totaled 
$27.9 million ($0.18 per common share), 42 percent lower than adjusted net 
income of $48.4 million ($0.32 per common share) recorded for the fourth 
quarter of 2012.  Funds from operations were $101.2 million ($0.66 per common 
share) for the fourth quarter of 2013, a 13 percent decrease from $116.6 
million ($0.76 per common share) recorded in the fourth quarter of 2012. 
North American customers reduced their demand for oilfield services in late 
2012 and into the start of 2013 in reaction to unfavorable global economic 
conditions and concerns regarding the economics of oil and natural gas 
projects.  The reduced demand for North American oilfield services negatively 
impacted operating and financial results in 2013 compared to 2012.  In 
addition, Canadian oilfield services were hindered in 2013 by a particularly 
wet spring break-up that impeded the movement of the Company's equipment.  
Results from the Company's international operations were stronger in 2013 
compared to 2012, mainly due to increased demand in the eastern hemisphere and 
the strategic growth of the Company's fleet to meet rising levels of demand 
for oilfield services.  International and United States financial results were 
positively impacted by the strengthening of the average United States dollar 
foreign exchange rate on translation to Canadian dollars.  During 2013, the 
average United States dollar foreign exchange rate increased by approximately 
three percent against the Canadian dollar when compared to 2012. 
Despite a decrease in demand for oilfield services in some of the areas where 
the Company operates, growth of the Company's global equipment fleet helped to 
mitigate the overall decrease to activity levels.  In 2013 the Company added 
five new Automated Drill Rigs ("ADR(®)") to its drilling rig fleet: two in 
the Canadian market and three in the United States market through the new 
build program.  All of the newly constructed ADRs are subject to long-term 
contracts.  The new build program also added seven new well servicing rigs:  
six in Canada and one in the United States.    In addition, the Company 
expanded its existing directional drilling business in Canada through the 
acquisition of substantially all of the assets of Departure Energy Services 
Inc. ("Departure") and expanded its existing oilfield rental business in 
Canada through the acquisition of substantially all of the assets of EGOC 
Enviro Group of Companies ("EGOC"), both in the second quarter of 2013.  
During 2013, an additional drilling rig was relocated to the international 
market from the Company's United States fleet. 
Consistent with prior years, the Company increased its dividend in the fourth 
quarter of 2013 to a quarterly dividend rate of $0.1175 per common share, a 
6.8 percent increase from the previous quarterly dividend rate of $0.1100 per 
common share.  The Company first started paying a dividend in 1995 and has 
increased its annual dividend at a 17 percent compound annual growth rate from 
1995 to the current year. 
The Company exited 2013 with a working capital deficit of $71.1 million 
compared to positive working capital of $13.9 million at December 31, 2012.  
The working capital deficit position was due to existing cash resources being 
utilized in 2013 to fund the second quarter acquisitions of Departure and EGOC 
mentioned above, as well as funding the current new build program.  The 
Company's revolving credit facilities provide for available borrowings of 
$70.7 million at December 31, 2013 compared to $164.3 million at December 31, 
2012. 
FINANCIAL AND OPERATING HIGHLIGHTS 
($ thousands, except per share data and operating information) 


                              Three months ended
                                     December 31           Year ended December 31
                         2013                  %                                %
                                   2012   change        2013        2012   change
    Revenue           536,044   530,106        1   2,098,011   2,197,321      (5)
    Adjusted EBITDA
    1                 112,461   123,915      (9)     485,712     560,975     (13)
    Adjusted EBITDA          
    per share 1                                                                  
      Basic             $0.74    $0.81       (9)       $3.18       $3.67     (13)
      Diluted           $0.73    $0.81      (10)       $3.16       $3.67     (14)
                                                                            
    Adjusted net
    income 2           27,947    48,367     (42)     143,909     219,504     (34)
    Adjusted net
    income per share         
    2                                                                            
      Basic             $0.18     $0.32     (44)       $0.94       $1.44     (35)
      Diluted           $0.18     $0.32     (44)       $0.94       $1.43     (34)
                                                                            
    Net income         26,895    48,489     (45)     128,865     217,522     (41)
    Net income per           
    share                                                                        
      Basic             $0.18     $0.32     (44)       $0.84       $1.42     (41)
      Diluted           $0.18     $0.32     (44)       $0.84       $1.42     (41)
                                                                            
    Funds from
    operations 3      101,209   116,555     (13)     435,611     506,355     (14)
    Funds from
    operations per           
    share 3                                                                      
      Basic             $0.66     $0.76     (13)       $2.85       $3.32     (14)
      Diluted           $0.66     $0.76     (13)       $2.84       $3.31     (14)
                                                                            
    Weighted average
    shares - basic    152,809
    (000s)                      152,617       -      152,693     152,664        -
    Weighted average
    shares - diluted  153,613
    (000s)                      152,921       -      153,620     152,995        -
                                                                            
    Drilling                                                                     
      Number of                                                                  
      marketed rigs                                                     
        Canada4           121       124      (2)         121         124      (2)
        United States     117       121      (3)         117         121      (3)
        International                                                 54        -
        5                  54        54        -          54
      Operating days                                                             
        Canada 4        3,457     4,135     (16)      14,183      18,398     (23)
        United States   5,778     5,555        4      22,955      24,226      (5)
        International                                                         (2)
        5               2,888     3,010      (4)      11,384      11,612
                                                                            
    Well Servicing                                                               
      Number of                                                                  
      marketed rigs                                                     
        Canada             95        99      (4)          95          99      (4)
        United States      45        46      (2)          45          46      (2)
      Operating hours                                                            
        Canada         30,324    35,054     (13)     121,159     140,978     (14)
        United States  30,057    28,097        7     105,260     121,766     (14)
    1Adjusted EBITDA is defined as "income before interest expense, income
    taxes, depreciation, share-based compensation expense (recovery) and
    foreign exchange and other".  Management believes that in addition to
    net income, Adjusted EBITDA and Adjusted EBITDA per share are useful
    supplemental measures as they provide an indication of the results
    generated by the Company's principal business activities prior to
    consideration of how these activities are financed, how the results are
    taxed in various jurisdictions, how the results are impacted by foreign
    exchange or how the results are impacted by the accounting standards
    associated with the Company's share-based compensation plans.  Adjusted
    EBITDA and Adjusted EBITDA per share as defined above are not
    recognized measures under International Financial Reporting Standards
    and accordingly may not be comparable to measures used by other
    companies.
    2 Adjusted net income is defined as "net income before share-based
    compensation expense (recovery) and foreign exchange and other,
    tax-effected using an income tax rate of 35 percent".  Adjusted net
    income and Adjusted net income per share are useful supplemental
    measures as they provide an indication of the results generated by the
    Company's principal business activities prior to consideration of how
    the results are impacted by foreign exchange and how the results are
    impacted by the accounting standards associated with the Company's
    share-based compensation plans, net of income taxes.  Adjusted net
    income and Adjusted net income per share as defined above are not
    recognized measures under International Financial Reporting Standards
    and accordingly may not be comparable to measures used by other
    companies.
    3 Funds from operations is defined as "cash provided by operating
    activities before the change in non-cash working capital".  Funds from
    operations and Funds from operations per share are measures that
    provide additional information regarding the Company's liquidity and
    its ability to generate funds to finance its operations.  Management
    utilizes these measures to assess the Company's ability to finance
    operating activities and capital expenditures.  Funds from operations
    and Funds from operations per share are not measures that have any
    standardized meaning prescribed by International Financial Reporting
    Standards and accordingly may not be comparable to similar measures
    used by other companies.
    4Excludes coring rigs.
    5 Includes workover rigs.

2013 Highlights
        --  Revenue for 2013 was the second highest in the Company's
            history at $2,098.0 million, down five percent from the record
            level set in 2012.  For the fourth quarter of 2013 revenue was
            comparable to the fourth quarter of 2012, increasing one
            percent.
        --  Five new ADRs were added to the Company's drilling fleet: two
            in the Canadian market and three in the United States market. 
            The new build program also added seven new well servicing
            rigs:  six in Canada and one in the United States.  In
            addition, the Company retrofitted four drilling rigs in 2013: 
            two in Canada, one in the United States and one in the
            international market.
        --  Revenue by geographic area for the three and twelve months
            ended December 31, 2013:
      o Canada - fourth quarter: 30 percent, 2013: 32 percent;
      o United States - fourth quarter: 44 percent, 2013: 42 percent; and
      o International - fourth quarter: 26 percent, 2013: 26 percent.
        --  Adjusted EBITDA for 2013 was $485.7 million, a 13 percent
            decrease from adjusted EBITDA of $561.0 million for the year
            ended December 31, 2012.  For the fourth quarter of 2013,
            adjusted EBITDA was $112.5 million, down nine percent from
            adjusted EBITDA of $123.9 million recorded in the fourth
            quarter of 2012.  Funds from operations for 2013 decreased 14
            percent to $435.6 million from $506.4 million in the prior year
            and decreased 13 percent in the fourth quarter of 2013 to
            $101.2 million from $116.6 million recorded in the fourth
            quarter of the prior year.
        --  Canadian drilling recorded 14,183 operating days in 2013, a 23
            percent decrease from 18,398 operating days in the previous
            year.  Canadian well servicing hours decreased by 14 percent in
            the year ended December 31, 2013 from the prior year.  For the
            fourth quarter of 2013, Canadian drilling recorded 3,457
            operating days, a 16 percent decrease from 4,135 operating days
            in the fourth quarter of 2012.  Canadian well servicing hours
            decreased by 13 percent in the fourth quarter of 2013 compared
            to the fourth quarter of 2012.
        --  United States drilling recorded 22,955 operating days in 2013,
            a five percent decrease from 24,226 operating days in the
            previous year.  United States well servicing hours decreased by
            14 percent in 2013 compared to 2012.  For the fourth quarter of
            2013, United States drilling recorded 5,778 operating days, a
            four percent increase over 5,555 operating days in the fourth
            quarter of 2012.  United States well servicing hours increased
            by seven percent in the fourth quarter of 2013 compared to the
            fourth quarter of 2012.
        --  International drilling recorded 11,384 operating days in 2013,
            a two percent decrease from 11,612 operating days recorded in
            2012. For the fourth quarter of 2013, international drilling
            recorded 2,888 operating days, a four percent decrease from
            3,010 operating days in the fourth quarter of 2012.
        --  The Company declared a quarterly cash dividend on common shares
            of $0.1175 per common share payable April 4, 2014.  In 2013 the
            Company declared dividends of $0.4475 per common share, an
            increase of five percent over dividends of $0.4250 per common
            share declared in 2012.  The Company has increased its dividend
            every year since the first dividend was paid in 1995.

Revenue and Oilfield Services Expense
                       Three months ended December
                                                31           Year ended December 31
    ($ thousands)          2013                  %                                %
                                     2012   change        2013        2012   change
                                                                              
    Revenue                                                                        
      Canada            158,488   176,693     (10)     661,008     774,444     (15)
      United States     235,829   213,667       10     890,767     944,580      (6)
      International     141,727   139,746        1     546,236     478,297       14
                                                                              
                        536,044   530,106        1   2,098,011   2,197,321      (5)
    Oilfield
    services            399,856   384,553        4   1,524,173   1,555,509      (2)
    expense 
                                                                              
    Gross margin        136,188   145,553      (6)     573,838     641,812     (11)
                                                                              
    Gross margin           25.4     27.5                  27.4        29.2
    percentage % 

Revenue for the year ended December 31, 2013 was the second highest in the 
Company's history totaling $2,098.0 million, a decrease of five percent from 
the record level set for the year ended December 31, 2012 of $2,197.3 million. 
 The Company recorded revenue of $536.0 million for the three months ended 
December 31, 2013, a one percent increase from the $530.1 million recorded in 
the three months ended December 31, 2012.  Reduced demand for North American 
oilfield services that began late in 2012 continued into 2013 weakening 
financial results in the current year.  Demand in the current year was 
hampered by continuing uncertainty in oil and natural gas economics in North 
America.  However, demand for international oilfield services remained firm in 
many of the areas in which the Company operates, producing generally stronger 
results in 2013 compared to 2012. Demand for North American oilfield services 
began to show signs of recovery late in 2013, particularly in the United 
States, with revenue rates returning to levels more comparable with 2012 
however Canada still remained at slightly reduced demand levels.  United 
States results for the current year fourth quarter also reflect the additions 
to the fleet from the new build program.  Throughout 2013, three new ADRs and 
one new well servicing rig were added to the United States fleet which helped 
to bring operating and financial results up in the fourth quarter of 2013 when 
compared to the fourth quarter of 2012.

Gross margin as a percentage of revenue decreased in 2013 to 27.4 percent from 
29.2 percent in 2012.  Gross margin as a percentage of revenue for the fourth 
quarter of 2013 decreased to 25.4 percent compared to 27.5 percent for the 
fourth quarter of the prior year.  Increased costs for labor and higher major 
maintenance expenditures, which are generally expensed as incurred, negatively 
impacted margins in the current year.  In addition several international rigs, 
which are expected to begin work early in 2014, incurred start-up costs 
towards the end of 2013.  Such expenditures negatively impacted 2013 gross 
margins.

Canadian Oilfield Services
                            Three months ended                   Year ended
                                   December 31                  December 31
                                             %                            %
                        2013     2012   change      2013      2012   change
    Drilling rigs1                                                         
      Opening balance    121      133                124       131         
        Additions          -        1                  2         6         
        Transfers2         -     (10)                  -      (10)         
        Decommissions                                                      
        / Disposals        -        -                (5)       (3)
      Ending balance     121      124      (2)       121       124      (2)
    Drilling                                                        
    operating days1    3,457    4,135     (16)    14,183    18,398     (23)
    Drilling rig                                                    
    utilization %1      31.1     36.2     (14)      32.3      38.8     (17)
                                                                           
    Well servicing                                                  
    rigs                                                                   
      Opening balance     94       99                 99       103         
        Additions          1        -                  6         -         
        Decommissions                                                      
        / Disposals        -        -               (10)       (4)
      Ending balance      95       99      (4)        95        99      (4)
    Well servicing                                                  
    operating hours   30,324   35,054     (13)   121,159   140,978     (14)
    Well servicing                                                  
    utilization %       34.7     38.5     (10)      35.8      38.1      (6)
    1Excludes coring rigs.
    2Includes transfers to coring rigs.

The Company recorded revenue of $661.0 million in Canada for the year ended 
December 31, 2013, a 15 percent decrease from $774.4 million recorded in the 
year ended December 31, 2012.  Revenue generated in Canada decreased 10 
percent to $158.5 million for the three months ended December 31, 2013, from 
$176.7 million for the three months ended December 31, 2012.  In the fourth 
quarter of 2013, Canadian revenues accounted for 30 percent of total revenue 
(2012 - 33 percent), and during the year ended December 31, 2013, Canadian 
revenues were 32 percent of total revenue (2012 - 35 percent).

Unfavorable price differentials for Canadian commodities and continued 
industry uncertainty weakened demand for the Company's Canadian oilfield 
services in 2013 compared to 2012.  Additionally, the Company's Canadian 
operations were hampered in 2013 as the industry continued its transition from 
shallow to deeper and longer reach drilling.  The resulting impact to activity 
levels, combined with a particularly wet spring break-up in the current year, 
reduced operating and financial results for the year ended December 31, 2013 
compared to the year ended December 31, 2012.  These negative impacts were 
somewhat offset by the positive impact from the expansion of the Company's 
Canadian oilfield rentals and directional drilling equipment fleets in the 
second quarter of 2013.

During the year ended December 31, 2013, operating days recorded by the 
Company's Canadian operations decreased 23 percent compared to the level of 
activity in the prior year.  Operating days in the fourth quarter of 2013 
decreased 16 percent from the fourth quarter of 2012.  Similarly, Canadian 
well servicing hours decreased by 14 percent in the year ended December 31, 
2013 and by 13 percent in the fourth quarter of 2013 compared to the 
corresponding periods in the prior year.

The Company decommissioned or disposed of five inactive drilling rigs and 10 
inactive well servicing rigs during 2013 and added two new build ADRs and six 
new well servicing rigs to the Company's Canadian equipment fleet in 2013.  
The Company continues to transition its Canadian drilling fleet from shallow 
drilling rigs to deeper drilling rigs in response to changing market dynamics. 
 In January, 2013, the Company disposed of its non-rig manufacturing facility 
located in Calgary, Alberta.

United States Oilfield Services
                              Three months ended                   Year ended
                                     December 31                  December 31
                          2013     2012        %      2013      2012        %
                                          change                       change
    Drilling rigs                                                            
      Opening balance      117      116                121       117         
        Additions            -        -                  3         5         
        Transfers            -        5                (1)         5         
        Decommissions        -        -                (6)       (6)         
        / Disposals
      Ending balance       117      121      (3)       117       121      (3)
    Drilling             5,778    5,555        4    22,955    24,226      (5)
    operating days
    Drilling rig          53.7     50.2        7      54.0      57.4      (6)
    utilization %
                                                                        
    Well servicing                                                           
    rigs
      Opening balance       45       46                 46        36         
        Additions            -        1                  1        12         
        Decommissions        -      (1)                (2)       (2)         
        / Disposals
      Ending balance        45       46      (2)        45        46      (2)
    Well servicing      30,057   28,097        7   105,260   121,766     (14)
    operating hours
    Well servicing        72.6     66.4        9      64.2      78.1     (18)
    utilization %

The Company's United States operations recorded revenue of $890.8 million for 
the year ended December 31, 2013, down six percent from revenue of $944.6 
million for the year ended December 31, 2012.  Revenue recorded in the United 
States was $235.8 million in the fourth quarter of 2013, a 10 percent increase 
from the $213.7 million recorded in the corresponding period of the prior 
year.  The United States segment accounted for 44 percent of the Company's 
revenue in the fourth quarter of 2013 (2012 - 40 percent); and 42 percent of 
the Company's revenue in the current year (2012 - 43 percent), making it the 
largest contributor to consolidated revenues in 2013, consistent with the 
prior year.

The number of operating days recorded by the Company's United States 
operations for the year ended December 31, 2013 decreased by five percent to 
22,955 operating days from 24,226 operating days in 2012.  During the fourth 
quarter of 2013 the Company recorded 5,778 operating days in the United 
States, an increase of four percent over 5,555 operating days recorded during 
the fourth quarter of the prior year.  United States well servicing hours in 
the fourth quarter of 2013 were up seven percent compared to the fourth 
quarter of the prior year and well servicing hours for 2013 were down 14 
percent compared to 2012.

Activity levels were down in the United States for the majority of 2013 
compared to the prior year as the demand for oilfield services by the 
Company's customers continued to be held back in certain regions through much 
of the year and did not start to show signs of recovery until later in the 
year.  As a result, revenue rates were held down for the start of 2013 but 
gradually increased throughout the year as demand began to pick up.  Overall, 
this led to reduced operating and financial results for the year ended 
December 31, 2013 compared to the year ended December 31, 2012.  Partially 
offsetting this decrease was the strengthening of the United States dollar 
against the Canadian dollar in the current year compared to 2012 and additions 
to the United States fleet throughout 2013 as described below. The average 
United States dollar foreign exchange rate increased approximately three 
percent during 2013 compared to 2012.

During 2013, the Company added three new build ADRs and one new well servicing 
rig to its United States fleet, transferred one drilling rig to its 
international equipment fleet and decommissioned or disposed of six inactive 
drilling rigs and two inactive well servicing rigs.

International Oilfield Services
                            Three months ended                   Year ended
                                   December 31                  December 31
                         2013    2012        %     2013     2012   % change
                                        change
    Drilling and                                                           
    workover rigs
      Opening balance      54      58                54       59           
        Additions           -       -                 -        2           
        Transfers           -     (4)                 1      (4)           
        Decommissions       -       -               (1)      (3)           
        / Disposals
      Ending balance       54      54                54       54          -
    Drilling            2,888   3,010      (4)   11,384   11,612        (2)
    operating days
    Drilling rig         58.1    59.9      (3)     58.4     56.9          3
    utilization %

International revenue totaled $546.2 million for the year ended December 31, 
2013, a 14 percent increase from $478.3 million in 2012.  International 
revenue totaled $141.7 million in the fourth quarter of 2013, a one percent 
increase from $139.7 million recorded in the corresponding period of the prior 
year.  International operations contributed 26 percent of the Company's 
revenue in the fourth quarter of 2013 (2012 - 27 percent) and 26 percent in 
the year ended December 31, 2013 (2012 - 22 percent).

The Company's international operations recorded 11,384 operating days in 2013, 
a two percent decrease from 11,612 operating days recorded in 2012.  
International operating days for the three months ended December 31, 2013 
decreased four percent over the comparable prior year period to 2,888 
operating days compared to 3,010 operating days in the fourth quarter of 2012.

Strategic investments made in 2012 and 2013 in the Company's international 
operations helped to increase the average revenue rates per day for 
international operations in the current year compared to the prior year.  
Revenues for international oilfield services were mainly consistent in the 
fourth quarter of 2013 compared to the fourth quarter of 2012.  The Company 
expanded its operations late in 2013 with the start-up of one drilling rig 
deployed in Kurdistan. Two new build ADR's were added to the Australian 
equipment fleet late in 2012 and two existing drilling rigs were relocated to 
the international market from North America.  An additional drilling rig was 
relocated during the current year to Australia from the Company's United 
States fleet.  Despite strength in certain international areas, the Company 
continues to experience challenges in Latin America.

Consistent with the translation of results from the Company's United States 
operations, the operating results from the Company's international operations 
were improved on translation into Canadian dollars by the three percent 
strengthening of the United States dollar relative to the Canadian dollar in 
2013 when compared to the prior year.

As part of the Company's international operations it provides oilfield 
services in Venezuela pursuant to long-term contracts. These existing 
contracts are set to expire in the next 12 months and due to the current 
political unrest in Venezuela there is no assurance that the Company will be 
able to renew these contracts in Venezuela or on financial terms acceptable to 
the Company. In addition, as at December 31, 2013, the Company had net 
accounts receivable of approximately $38.5 million for work performed in 
Venezuela and again, due to the current political unrest in Venezuela, there 
is no assurance that the Company will be successful in collecting all or any 
of such outstanding balance.

Depreciation
                           Three months ended
                                  December 31       Year ended December 31
    ($ thousands)      2013                 %                            %
                                2012   change      2013      2012   change
    Depreciation     69,153   54,029       28   248,026   220,227       13

Depreciation expense increased 13 percent to $248.0 million for the year ended 
December 31, 2013 compared with $220.2 million for the year ended December 31, 
2012.  Depreciation expense totaled $69.2 million for the fourth quarter of 
2013 compared with $54.0 million for the fourth quarter of 2012, an increase 
of 28 percent.  Higher depreciation expense in 2013 over 2012 was attributable 
to higher-valued equipment being added to the Company's global fleet 
throughout the latter half of 2012 and 2013 in addition to the impacts of the 
second quarter acquisitions of assets from EGOC and Departure.

General and Administrative Expense
                             Three months ended     Year ended December 31
                                    December 31
    ($ thousands)        2013     2012        %     2013     2012        %
                                         change                     change
    General and        23,727   21,638       10   88,126   80,837        9
    administrative  
    % of revenue          4.4      4.1               4.2      3.7

General and administrative expense totaled $88.1 million (4.2 percent of 
revenue) for the year ended December 31, 2013 compared with $80.8 million (3.7 
percent of revenue) for the year ended December 31, 2012, an increase of nine 
percent.   General and administrative expense increased 10 percent to $23.7 
million (4.4 percent of revenue) for the fourth quarter of 2013 compared with 
$21.6 million (4.1 percent of revenue) for the fourth quarter of 2012.  The 
increase in general and administrative expense reflects the negative 
translational impact of a stronger United States dollar on United States and 
international administrative expenses in the current year and increased costs 
to support growing international operations.

Share-Based Compensation Expense (Recovery)
                             Three months ended      Year ended December 31
                                    December 31
    ($ thousands)       2013     2012         %     2013      2012        %
                                         change                      change
    Share-based      (4,045)                382    2,049              (160)
    compensation               (840)                       (3,397)

Share-based compensation expense (recovery) arises from the Black-Scholes 
valuation accounting associated with the Company's share-based compensation 
plans, whereby the liability associated with share-based compensation is 
adjusted for the effect of granting and vesting of employee stock options and 
changes in the underlying price of the Company's common shares.

For 2013, share-based compensation was an expense of $2.0 million compared 
with a recovery of $3.4 million for the year ended December 31, 2012.  For the 
three months ended December 31, 2013, share-based compensation recovery was 
$4.0 million compared with a recovery of $0.8 million recorded in the fourth 
quarter of 2012.  The change in share-based compensation expense for the three 
and twelve months ended December 31, 2013 arises from the change in the fair 
value of share-based compensation liability primarily due to changes in the 
price of the Company's common shares during the year and the expiry of options 
at the end of the year.  The closing price of the Company's common shares was 
$16.73 at December 31, 2013, compared with $15.37 at December 31, 2012 and 
$17.64 at September 30, 2013.

Interest Expense
                          Three months ended        Year ended December 31
                                 December 31
    ($              2013     2012   % change      2013     2012   % change
    thousands)  
    Interest       5,395    3,862         40    18,795   18,666          1
    expense  
    Interest       (307)    (139)        121   (1,320)    (504)        162
    income  
                   5,088    3,723         37    17,475   18,162        (4)

Interest is incurred on the Company's $10.0 million Canadian-based revolving 
credit facility (the "Canadian Facility"), the $400.0 million global revolving 
credit facility (the "Global Facility") and the USD $300.0 million Notes 
issued in February 2012.  The amortization of deferred financing costs 
associated with the issuance of the Company's long-term debt is included in 
interest expense for the years ended December 31, 2013 and 2012.

Interest expense in 2013 compared to 2012 was mainly consistent, increasing 
only one percent.  For the three months ended December 31, 2013 interest 
expense increased 40 percent to $5.4 million compared to $3.9 million for the 
three months ended December 31, 2012 due to increased draws on the Global 
Facility.  Interest income was higher in 2013 compared to 2012 as a result of 
higher average balances of interest-earning cash and cash equivalents in 2013 
compared to 2012.

Foreign Exchange and Other
                   Three months ended December      Year ended December 31
                                            31
    ($               2013   2012      % change     2013    2012   % change
    thousands) 
    Foreign
    exchange and    5,664    653           767   21,095   6,446        227
    other 

Included in this amount are foreign currency movements in the Company's 
subsidiaries which have functional currencies other than Canadian dollars and 
the impact of the conversion of the Australian operations from Australian 
dollars to United States dollars.  For the three months ended December 31, 
2013 the Australian dollar weakened by approximately five percent against the 
United States dollar causing a foreign currency loss on translation of the 
Company's USD denominated debt into Australian dollars.  During the year ended 
December 31, 2013 the Australian dollar weakened by approximately 16 percent 
against the United States dollar.  In general the United States dollar 
strengthened in 2013 compared to 2012 when compared to other world currencies.

Income Taxes
                          Three months ended        Year ended December 31
                                 December 31
    ($               2013     2012         %     2013      2012   % change
    thousands)                       change 
    Current         6,601    4,172        58   43,171    45,189        (4)
    income tax  
    Deferred        3,105   13,689      (77)   25,031    56,826       (56)
    income tax 
                    9,706   17,861      (46)   68,202   102,015       (33)
    Effective
    income tax       26.5     26.9               34.6      31.9
    rate %  

For the year ended December 31, 2013, the effective income tax rate was 34.6 
percent compared with 31.9 percent for the year ended December 31, 2012.  The 
effective income tax rate for the three months ended December 31, 2013 was 
26.5 percent compared with 26.9 percent for the three months ended December 
31, 2012.  The increase in the overall effective rate in 2013, when compared 
with 2012, is due to the tax impact of the currency devaluation that occurred 
in Venezuela in February 2013, as well as the impact of foreign exchange 
translation losses for which the effective tax rate varies from statutory 
rates.  The decrease in the effective income tax rate for the three months 
ended December 31, 2013 as compared to the three months ended December 31, 
2012 is due to a higher proportion of income earned in low rate jurisdictions.

For the three and twelve months ended December 31, 2013, the increased 
proportion of the current income tax expense when compared to the total tax 
expense is primarily attributable to the phased elimination of the deferral of 
income tax related to the Company's partnerships operating in Canada.  The 
decreased deferred income tax expense portion for the three and twelve months 
ended December 31, 2013 when compared with the comparable prior year periods 
is primarily attributable to the decrease in pre-tax profits.

Financial Position

The following chart outlines significant changes in the consolidated statement 
of financial position from December 31, 2012 to December 31, 2013:
    ($ thousands)                  Change      Explanation 
    Cash and cash                   45,650     See consolidated statements
    equivalents                                of cash flows.
    Accounts receivable             17,630     Increase reflects foreign
                                               exchange fluctuations on
                                               the consolidation of the
                                               Company's foreign
                                               subsidiaries and was offset
                                               by a decrease in Canadian
                                               operating activity in the
                                               fourth quarter of 2013
                                               compared to the fourth
                                               quarter of 2012.
    Inventories and other          (9,498)     Decrease was due to normal
                                               course use of consumables
                                               offset by additional
                                               inventory.
    Property and equipment         255,088     Increase was due to
                                               additions to fixed assets
                                               from the current new build
                                               construction program; the
                                               acquisitions of the EGOC
                                               and Departure assets during
                                               the second quarter; and a
                                               strengthening of the USD
                                               year-end foreign exchange
                                               rate on the consolidation
                                               of the Company's foreign
                                               subsidiaries, offset by
                                               depreciation.
    Note receivable                  (741)     Decrease was due to the
                                               reclassification of the
                                               current portion to accounts
                                               receivable offset by
                                               accretion of interest
                                               income during 2013.
    Accounts payable and            62,535     Increase reflects foreign
    accruals                                   exchange fluctuations on
                                               the consolidation of the
                                               Company's foreign
                                               subsidiaries and timing of
                                               payments to external
                                               vendors during the year.
    Operating lines of              94,535     Increase was due to
    credit                                     additional draws during the
                                               year on the global
                                               revolving credit facility
                                               and the impact of foreign
                                               exchange fluctuations on
                                               the consolidation of the
                                               USD denominated debt held
                                               by the Company's foreign
                                               subsidiaries, offset by
                                               repayments during the year.
    Share-based                      (804)     Decrease was due to options
    compensation                               which expired at the end of
                                               the current year, offset by
                                               an increase in the price of
                                               the Company's common shares
                                               as at December 31, 2013
                                               compared with December 31,
                                               2012.
    Income taxes payable          (19,769)     Decrease was due to tax
                                               instalments net of the
                                               current income tax
                                               provision for the year.
    Dividends payable                1,166     Increase was due to a 6.8
                                               percent increase in the
                                               quarterly dividend rate in
                                               the fourth quarter of 2013
                                               compared to the dividend
                                               rate in the fourth quarter
                                               of 2012.
    Long-term debt                  20,818     Increase was due to foreign
                                               exchange fluctuations on
                                               the USD denominated
                                               long-term debt.
    Deferred income taxes           45,037     Increase primarily due to
                                               accelerated tax
                                               depreciation of assets
                                               added during the current
                                               year.
    Shareholders' equity           104,611     Increase due to net income
                                               for the year and the impact
                                               of foreign exchange rate
                                               fluctuations on net assets
                                               of foreign subsidiaries,
                                               offset by the amount of
                                               dividends declared in the
                                               year.

Funds from Operations and Working Capital
                   Three months ended December        Year ended December 31
                                           31 
    ($                 2013      2012        %       2013      2012        %
    thousands)                          change                        change
    Funds from      101,209   116,555     (13)    435,611   506,355     (14)
    operations  
    Funds from
    operations        $0.66     $0.76     (13)      $2.85     $3.32     (14)
    per share 
    Working                    13,861    (613)               13,861    (613)
    capital        (71,146)                      (71,146)

Funds from operations totaled $435.6 million ($2.85 per common share) for 
2013, a decrease of 14 percent compared to $506.4 million ($3.32 per common 
share) generated in 2012.  During the three months ended December 31, 2013, 
the Company generated funds from operations of $101.2 million ($0.66 per 
common share) compared with $116.6 million ($0.76 per common share) for the 
three months ended December 31, 2012, a decrease of 13 percent.  The decrease 
in funds from operations in 2013 compared to 2012 is mainly due to reduced 
demand for North American oilfield services in 2013 when compared to 2012.

At December 31, 2013, the Company's working capital was a deficit of $71.1 
million compared to positive working capital of $13.9 million at December 31, 
2012.  The Company's working capital was utilized in the second quarter of the 
current year for the acquisitions of the assets of EGOC and Departure, in 
addition to funding the Company's current new build program and dividend 
payments throughout the year.  The Company expects funds generated by 
operations, combined with current and future credit facilities, to fully 
support current operating and capital requirements.  Existing revolving credit 
facilities provide for total borrowings of $410.0 million, of which $70.7 
million was available as at December 31, 2013.

Investing Activities
                    Three months ended December 31           Year ended December 31
    ($                   2013        2012        %        2013        2012        %
    thousands)                              change                           change
    Purchase of
    property and    (106,912)    (80,329)       33   (342,225)   (306,689)       12
    equipment  
    Acquisitions            -           -        -    (76,408)           -        -
    Net change in
    non-cash           20,687    (23,392)    (188)      17,845    (15,040)    (219)
    working
    capital 
    Cash used in
    investing        (86,225)   (103,721)     (17)   (400,788)   (321,729)       25
    activities 

During the second quarter of 2013 the Company acquired the rental assets of 
EGOC and the directional drilling assets of Departure with existing cash 
balances and credit facilities. These acquisitions increased the Company's 
presence in the rental and directional drilling markets in Western Canada.  
The Company did not complete any significant acquisitions in 2012.

Purchases of property and equipment for the year ended December 31, 2013 
totaled $342.2 million (2012 - $306.7 million) and for the three months ended 
December 31, 2013 totaled $106.9 million (2012 - $80.3 million).  The 
purchases of property and equipment relate primarily to expenditures made 
pursuant to the Company's ongoing new build program.  Significant additions in 
2013 as a result of the new build program include:
        --  Completion of two new ADR® drilling rigs in Canada (one in the
            first quarter and one in the third quarter);
        --  Completion of three new ADR® drilling rigs in the United States
            (one in each of the first, second and third quarters);
        --  Construction of six new well servicing rigs in Canada (two in
            each of the first and third quarters; and one in each of the
            second and fourth quarters); and
        --  Construction of one new well servicing rig in the United States
            (third quarter).

Financing Activities
                    Three months ended December           Year ended December 31
                                             31
    ($                 2013       2012        %       2013        2012         %
    thousands)                           change                           change
    Net
    (decrease)
    increase in     (1,772)   (30,586)     (94)     76,285     (1,398)   (5,557)
    operating
    lines of
    credit 
    Issue of
    senior                -          -        -          -     300,000     (100)
    unsecured
    notes 
    Repayment of          -          -        -          -   (403,279)       100
    term loan  
    Issue of
    capital               -          -        -      2,002          43     4,556
    stock  
    Purchase of
    shares held       (580)      (535)        8    (6,497)     (8,579)      (24)
    in trust 
    Deferred
    financing             -          -        -          -     (2,156)     (100)
    costs  
    Dividends                                 7   (68,614)    (65,116)         5
                   (18,019)   (16,854)
    Net change
    in non-cash       (964)      2,570    (138)      1,912       3,500      (45)
    working
    capital  
    Cash (used
    in) provided              (45,405)     (53)      5,088                 (103)
    by financing   (21,335)                                  (176,985)
    activities 

The Company's available operating lines of credit consist of a $400.0 million 
Global Facility and a $10.0 million Canadian Facility.  The Global Facility is 
available to the Company and certain of its wholly-owned subsidiaries, and may 
be drawn in Canadian, United States or Australian dollars, up to the 
equivalent value of $400.0 million Canadian dollars.  The amount available 
under the Canadian Facility is $10.0 million or the equivalent in United 
States dollars.

The change in the operating lines of credit for the year ended December 31, 
2013 reflects funding for the ongoing new build program which is anticipated 
to deliver an additional 12 new ADR(®) drilling rigs, one new well servicing 
rig and 10 major retrofits of existing drilling rigs throughout 2014 and early 
2015.  As of December 31, 2013, the operating lines of credit are primarily 
being used to fund the Company's new build program and to support growth in 
international operations.

In February 2012, the Company completed the private placement of USD $300.0 
million of senior unsecured notes, with the proceeds from the issuance being 
used to repay a portion of the USD $400.0 million unsecured term loan with the 
remaining balance repaid in full in the second quarter of 2012.

On June 21, 2013 the Company received approval from the Toronto Stock Exchange 
to acquire for cancellation up to three percent of the Company's issued and 
outstanding common shares under a Normal Course Issuer Bid (the "Bid").  The 
Company may purchase up to 4,599,367 common shares for cancellation.  The Bid 
commenced on June 25, 2013, and will terminate on June 24, 2014, or such 
earlier time as the Bid is completed or terminated at the option of the 
Company.  As at December 31, 2013, no common shares have been purchased and 
cancelled pursuant to the Bid.

The Company previously had a Bid that commenced on June 18, 2012, and 
terminated on June 17, 2013, under which no common shares were purchased and 
cancelled.

The Company increased its dividend in 2013 with a 6.8 percent fourth quarter 
increase in the quarterly dividend rate to $0.1175 per common share from the 
previous quarterly dividend rate of $0.1100 per common share.  During the year 
ended December 31, 2013, the Company declared dividends of $0.4475 per common 
share, an increase of five percent over dividends of $0.4250 per common share 
declared in 2012.  The Company received $2.0 million from the issuance of 
common shares in connection with exercises pursuant to the employee stock 
option program in 2013 compared to nominal receipts for stock option exercises 
in 2012.

Subsequent to December 31, 2013, the Company declared a dividend for the first 
quarter of 2014. A quarterly dividend of $0.1175 per common share is payable 
April 4, 2014 to all Common Shareholders of record as of March 25, 2014.  The 
dividend is pursuant to the quarterly dividend policy adopted by the Company.  
Pursuant to subsection 89(1) of the Canadian Income Tax Act ("ITA"), the 
dividend being paid is designated as an eligible dividend, as defined in 
subsection 89(1) of the ITA.

New Builds and Major Retrofits

During the year ended December 31, 2013, the Company commissioned three new 
ADR(®) drilling rigs, one new well servicing rig and retrofitted one drilling 
rig in the United States; two new ADR(®) drilling rigs, six new well 
servicing rigs and retrofitted two drilling rigs in Canada; and retrofitted 
one drilling rig transferred from the United States to Australia.

The Company continues to build new ADR(®) drilling rigs and upgrade existing 
drilling rigs to meet the increasing technical demands of its customers.  In 
Canada the Company is continuing to transition from shallow drilling to deeper 
drilling, building new ADRs and upgrading existing drilling rigs for deeper 
resource plays in the northwest part of the Western Canada Sedimentary Basin.  
In the United States the Company builds new ADRs for specific resource plays 
and has been upgrading existing drilling rigs for pad drilling operations in 
the southern United States.  Internationally, the Company has been increasing 
its capabilities, through a combination of new ADRs and major retrofits of 
existing drilling rigs, to meet the requirements of specific markets.

The estimated delivery schedule for new ADRs, major retrofits of existing 
drilling rigs and new well servicing rigs, by geographic area currently under 
construction at December 31, 2013 is as follows:
                                               Estimated Delivery Date 
                        Q1-2014   Q2-2014   Q3-2014   Q4-2014   Q1-2015   Total
    New Build ADRs:                                                            
      Canada                  -         -         2         2         -       4
      United States           1         -         -         3         2       6
      International           2         -         -         -         -       2
                                                                           
    Major Retrofits                                                            
    to Drilling Rigs:
      Canada                  1         -         2         -         -       3
      United States           -         -         -         1         1       2
      International           2         1         2         -         -       5
    Total                     6         1         6         6         3      22
                                                                           
    Well Servicing                                                             
    Rigs:
      Canada                  -         -         -         1         -       1
      United States           -         -         -         -         -       -
      International           -         -         -         -         -       -
    Total                     -         -         -         1         -       1

Outlook

Management believes that the apparent recovery in the global economy provides 
reasonable support for crude oil and natural gas prices. Additionally, recent 
global political tensions and North American winter weather conditions have 
resulted in crude oil trading above USD$100 per barrel and natural gas in the 
USD$4.50 per mcf to USD$5.00 per mcf range.  Crude oil and natural gas 
commodity prices at these levels do not appear to be stimulating a lot of 
extra demand for oilfield services as exploration and production companies 
will undoubtedly look for sustainability of commodity prices before altering 
their investment plans; however, higher commodity prices, even if temporary in 
nature, are positive for their corporate cash flows.  Improved cash flows will 
help fund current planned levels of oilfield services expenditures and will 
likely result in increases in expenditures at some point in the future.

The number of wells drilled in Canada during 2013 was essentially unchanged 
from the prior year (2013 - 11,102 wells; 2012 - 11,043 wells).  In this 
environment of flat activity levels and excess industry capacity, particularly 
in shallower depth categories, the Company's Canadian operations recorded a 
year-over-year reduction in utilization rates in 2013. To improve its 
competitiveness in the Canadian market the Company is continuing to transition 
its equipment fleet to deeper depth categories in recognition of the shift in 
the Canadian oilfield services market that has occurred in the last 12 to 15 
months.  In addition to the two new deeper ADRs and two drilling rig retrofits 
completed in 2013, the Company is currently constructing four new deeper 
capacity ADRs and three major retrofits to existing drilling rigs for its 
Canadian fleet.  While a colder winter throughout much of North America this 
year has been positive for natural gas consumption levels and related 
commodity prices, the price of natural gas does not appear to be at a level 
that will generate increased levels of demand for drilling natural gas wells 
in Canada in the near term.  Recent improvements in natural gas prices will 
have a positive effect on the cash flows of the exploration and production 
companies and is expected to help to fund continued oilfield expenditures in 
crude oil and natural gas liquids plays.  Further development of Canadian 
resources and related oilfield service activity levels, other than current 
expenditures to delineate certain resource plays, will depend on favorable 
infrastructure and regulatory developments.

The United States oilfield services activity levels started out slower in 2013 
compared to the prior year due to rationalization of operations by some of the 
Company's key customers.  However, demand for oilfield services began to 
modestly recover in the summer and industry utilization levels (as indicated 
by the onshore active drilling rig count) have been relatively stable over the 
last couple of quarters. As with Canada, current natural gas prices are not 
expected to drive a meaningful increase in natural gas drilling, but the 
improvements to the cash flows of exploration and production companies should 
benefit crude oil and natural gas liquids rich drilling activity levels. 
Initial 2014 spending guidance from United States exploration and production 
companies has been encouraging as supported by positive recent well permitting 
trends.  Accordingly, the Company is optimistic that its United States 
operations will record improvements in 2014 compared to the prior year.  In 
support of increased customer demand the Company added three new ADRs and 
completed one drilling rig retrofit to its United States drilling fleet in 
2013; and is currently constructing six new ADRs and two major retrofits to 
existing drilling rigs for delivery over the next 12 months.

The Company's international operations continued to perform well throughout 
2013, particularly in eastern hemisphere regions. Crude oil and natural gas 
prices remain attractive in foreign markets, positively impacting demand for 
oilfield services in many key regions being served by the Company.  Tempering 
this optimism in international operations are regional geopolitical concerns 
and risks in certain African and Latin American countries. The Company 
continues to focus on these areas in an attempt to manage such heightened risk 
levels.  Overall, the Company anticipates continued improvements in the 
operating and financial results from its international operations in 2014, as 
drilling rigs recently added or repositioned into international markets 
commence operations during the year. The Company completed one major drilling 
rig retrofit in 2013; and is constructing two new ADRs and five major 
retrofits to existing drilling rigs for the international market in 2014.

Risks and Uncertainties

This document contains forward-looking statements based upon current 
expectations that involve a number of business risks and uncertainties.  The 
factors that could cause results to differ materially include, but are not 
limited to, political and economic conditions, crude oil and natural gas 
prices, foreign currency fluctuations, weather conditions, the Company's 
defense of lawsuits and the ability of oil and natural gas companies to pay 
accounts receivable balances and raise capital or other unforeseen conditions 
which could impact on the use of the services supplied by the Company.

Conference Call

A conference call will be held to discuss the Company's year-end 2013 results 
at 2:00 p.m. MDT (4:00 p.m. EDT) on Monday, March 17, 2014.  The conference 
call number is (647) 427-7450 (in Toronto) or 1-888-231-8191 (outside 
Toronto).  A taped recording will be available until March 24, 2014 by dialing 
1-416-849-0833 (in Toronto) or 1-855-859-2056 (outside Toronto) and entering 
the reservation number 36547763.  A live broadcast may be accessed through the 
Company's web site at www.ensignenergy.com.

Ensign Energy Services Inc. is an international oilfield services contractor 
and is listed on the Toronto Stock Exchange under the trading symbol ESI.
    Ensign Energy Services Inc.                                           
    Consolidated Statements of Financial                                  
    Position
    As at                                    December 31       December 31
                                                    2013              2012
    (Unaudited, in thousands of Canadian                                  
    dollars)   
                                                                
    Assets                                                                
    Current Assets                                                        
      Cash and cash equivalents            $      78,858     $      33,208
      Accounts receivable                        440,790           423,160
      Income taxes receivable                      8,572                 -
      Inventories and other                       66,847            76,345
                                                                
                                                 595,067           532,713
                                                                
    Property and equipment                     2,788,331         2,533,243
    Note receivable                                4,280             5,021
                                           $   3,387,678     $   3,070,977
                                                                
    Liabilities                                                           
    Current Liabilities                                                   
      Accounts payable and accruals        $     307,147     $     244,612
      Operating lines of credit                  326,525           231,990
      Income taxes payable                             -            11,197
      Dividends payable                           18,019            16,853
      Share-based compensation                    14,522            14,200
                                                                
                                                 666,213           518,852
                                                                
    Long-term debt                               317,407           296,589
    Share-based compensation                       2,993             4,119
    Deferred income taxes                        438,496           393,459
                                                                
                                               1,425,109         1,213,019
                                                                
    Shareholders' Equity                                                  
      Share capital                              168,155           164,670
      Contributed surplus                          4,614             4,811
      Foreign currency translation                25,065          (16,007)
      reserve      
      Retained earnings                        1,764,735         1,704,484
                                                                
                                               1,962,569         1,857,958
                                                                
                                           $   3,387,678     $   3,070,977
                                                                
     
    Ensign Energy Services Inc.
    Consolidated Statements of Income
    For the three months and year ended December 31
     
    (Unaudited, in thousands of Canadian dollars, except per share data)
                               
                                   Three months ended                     Year ended
                              December      December      December       December 31
                              31            31            31
                                   2013          2012           2013            2012
                                                                            
    Revenue                 $   536,044   $   530,106   $  2,098,011   $   2,197,321
                                                                          
    Expenses                                                                        
      Oilfield                  399,856       384,553      1,524,173       1,555,509
      services    
      Depreciation               69,153        54,029        248,026         220,227
      General and                23,727        21,638         88,126          80,837
      administrative     
      Share-based               (4,045)         (840)          2,049         (3,397)
      compensation     
      Foreign exchange            5,664           653         21,095           6,446
      and other    
                                                                          
                                494,355       460,033      1,883,469       1,859,622
                                                                          
    Income before
    interest and income          41,689        70,073        214,542         337,699
    taxes  
                                                                          
    Interest income                 307           139          1,320             504
    Interest expense            (5,395)       (3,862)       (18,795)        (18,666)
                                                                          
    Income before income         36,601        66,350        197,067         319,537
    taxes  
                                                                          
    Income taxes                                                                    
      Current tax                 6,601         4,172         43,171          45,189
      Deferred tax                3,105        13,689         25,031          56,826
                                                                          
                                  9,706        17,861         68,202         102,015
                                                                          
    Net income              $    26,895   $    48,489   $    128,865   $     217,522
                                                                          
                                                                            
    Net income per share                                                            
      Basic                 $      0.18   $      0.32   $       0.84   $        1.42
      Diluted               $      0.18   $      0.32   $       0.84   $        1.42
     
    Ensign Energy Services Inc.
    Consolidated Statements of Cash Flows
    For the three months and year ended December 31
                                                                               
    (Unaudited, in thousands of Canadian dollars)
                                                                               
                                 Three months ended                  Year ended
                             December      December      December      December
                                   31            31            31            31
                                 2013          2012          2013          2012
                                                                               
    Cash provided by                                               
    (used in)                                                                  
                                                                       
    Operating                                                      
    activities                                                                 
    Net income            $    26,895   $    48,489   $   128,865   $   217,522
    Items not affecting                                            
    cash                                                                       
        Depreciation           69,153        54,029       248,026       220,227
        Share-based
        compensation,                                                
        net of cash
        paid                  (3,588)           805         6,492         4,363
        Unrealized
        foreign                                                      
        exchange and
        other                   5,560         (533)        26,869         5,838
        Accretion on
        long-term                                                    
        debt                       84            76           328         1,579
        Deferred income                                              
        tax                     3,105        13,689        25,031        56,826
    Net change in
    non-cash working           13,218        18,164        17,026  
    capital                                                              20,966
                                                                               
                              114,427       134,719       452,637       527,321
                                                                       
    Investing                                                      
    activities                                                                 
    Purchase of
    property and            (106,912)      (80,329)     (342,225)  
    equipment                                                         (306,689)
    Acquisitions                    -             -      (76,408)             -
    Net change in
    non-cash working           20,687      (23,392)        17,845  
    capital                                                            (15,040)
                                                                               
                             (86,225)     (103,721)     (400,788)              
                                                                      (321,729)
                                                                       
    Financing                                                      
    activities                                                                 
    Net (decrease)
    increase in               (1,772)      (30,586)        76,285  
    operating lines of
    credit                                                              (1,398)
    Issue of senior                 -             -             -  
    unsecured notes                                                     300,000
    Repayment of term               -             -             -              
    loan                                                              (403,279)
    Issue of capital                -             -         2,002  
    stock                                                                    43
    Purchase of shares          (580)         (535)       (6,497)  
    held in trust                                                       (8,579)
    Deferred financing              -             -             -  
    costs                                                               (2,156)
    Dividends                (18,019)      (16,854)      (68,614)      (65,116)
    Net change in
    non-cash working            (964)         2,570         1,912  
    capital                                                               3,500
                                                                               
                             (21,335)      (45,405)         5,088     (176,985)
                                                                               
    Net increase
    (decrease) in cash          6,867      (14,207)        56,937  
    and cash
    equivalents                                                          28,607
        Effects of
        foreign
        exchange on                                                  
        cash and cash
        equivalents          (8,935)        (1,724)      (11,287)         1,988
                                                                               
    Cash and cash                                                  
    equivalents                                                                
        Beginning of                                                 
        period                 80,926        49,139        33,208         2,613
        End of period     $    78,858   $    33,208   $    78,858   $    33,208
                                                                               
                                                                       
    Supplemental                                                   
    information                                                                
        Interest paid     $     8,364   $     6,840   $    17,452   $    16,162
        Income taxes      $             $             $             $
        paid                    9,618         8,572        62,940        45,486
                                                                               



SOURCE  Ensign Energy Services Inc. 
Glenn Dagenais, Executive Vice President Finance and Chief Financial  Officer, 
(403) 262-1361 
To view this news release in HTML formatting, please use the following URL: 
http://www.newswire.ca/en/releases/archive/March2014/17/c5445.html 
CO: Ensign Energy Services Inc.
ST: Alberta
NI: OIL ERN CONF  
-0- Mar/17/2014 10:00 GMT
 
 
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