Source Energy Services (TSE:SHLE) Announces Quarterly Earnings Results

Source Energy Services (TSE:SHLE) released its quarterly earnings results on Friday. The company reported C($0.29) earnings per share (EPS) for the quarter, FiscalAI reports. Source Energy Services had a negative net margin of 2.21% and a negative return on equity of 6.25%. The company had revenue of C$188.03 million for the quarter.

Here are the key takeaways from Source Energy Services’ conference call:

• Q3 sales volumes rose 55% year over year to 1 million tons, while revenue increased 50% to CAD 188 million and Adjusted EBITDA rose CAD 6.6 million to CAD 26.9 million.
• Adjusted Gross Margin excluding mine-gate sales fell to CAD 38.18 per ton from CAD 46.56 a year earlier, reflecting Peace River ramp-up challenges, higher diesel costs, and changes in customer and product mix. Management expects Peace River’s one-time ramp costs to be limited to 2026, but diesel costs remain outside its control.
• Management expects 2026 completion activity to be lower than in 2025, citing slower activity late in Q4 and pads deferred to 2027; it also expects no further wet-sand jobs in the remainder of 2026.
• Management anticipates stronger 2027 activity and sand demand in the Montney and Western Canadian Sedimentary Basin, citing customer feedback, LNG-related growth prospects, and momentum for wet sand. It also reported a long-term contract for a third Sahara unit in Alaska and expects domestic sand demand to keep growing, while noting Northern White sand will retain a place in the market.

Source Energy Services Price Performance

SHLE stock traded down C$0.26 during midday trading on Friday, hitting C$10.75. The company’s stock had a trading volume of 4,400 shares, compared to its average volume of 21,256. Source Energy Services has a 12 month low of C$8.60 and a 12 month high of C$18.74. The company has a quick ratio of 0.22, a current ratio of 1.22 and a debt-to-equity ratio of 144.16. The firm has a market capitalization of C$139.83 million, a price-to-earnings ratio of -11.32 and a beta of 2.08. The company has a 50 day moving average of C$10.39 and a two-hundred day moving average of C$13.68.

Insider Activity

In related news, insider Catherine Victoria Reynolds sold 5,000 shares of the company’s stock in a transaction on Thursday, September 17th. The shares were sold at an average price of C$11.02, for a total transaction of C$55,100.00. Following the completion of the transaction, the insider owned 23,785 shares in the company, valued at approximately C$262,110.70. This represents a 17.37% decrease in their ownership of the stock. 11.09% of the stock is currently owned by insiders.

About Source Energy Services

Source is a company that focuses on the integrated production and distribution of frac sand, as well as the distribution of other bulk completion materials not produced by Source. Source provides its customers with an end-to-end solution for frac sand supported by its Wisconsin and Peace River mines and processing facilities, its Western Canadian terminal network and its ‘last mile’ logistics capabilities, including its trucking operations, and Sahara, a proprietary well site mobile sand storage and handling system.