CALGARY, AB, April 23, 2024 /CNW/ - Western Energy Services Corp. ("Western" or the "Company") (TSX:WRG) announces the release of its first quarter 2024 financial and operating results.  Additional information relating to the Company, including the Company's financial statements and management's discussion and analysis ("MD&A") as at March 31, 2024 and for the three months ended March 31, 2024 and 2023 will be available on SEDAR+ at www.sedarplus.ca.  Non-International Financial Reporting Standards ("Non-IFRS") measures and ratios, such as Adjusted EBITDA, Adjusted EBITDA as a percentage of revenue, revenue per Operating Day, revenue per Service Hour and Working Capital, as well as abbreviations and definitions for standard industry terms are defined later in this press release.  All amounts are denominated in Canadian dollars (CDN$) unless otherwise identified. First Quarter 2024 Operating Results: First quarter revenue decreased by $17.2 million (or 22%), to $62.0 million in 2024, as compared to $79.2 million in the first quarter of 2023. Contract drilling revenue totalled $39.6 million in the first quarter of 2024, which was $18.5 million (or 32%), lower than $58.1 million in the first quarter of 2023. Production services revenue was $22.4 million for the three months ended March 31, 2024, an increase of $1.1 million (or 5%) as compared to $21.3 million in the same period of the prior year. In the first quarter of 2024, revenue was negatively impacted by lower activity in contract drilling in Canada and the US due to lower commodity prices in the first part of 2024, specifically natural gas prices, compared to the first quarter of 2023 as described below: In Canada, Operating Days of 952 days in the first quarter of 2024 were 331 days (or 26%) lower compared to 1,283 days in the first quarter of 2023. Drilling rig utilization in Canada was 31% in the first quarter of 2024, compared to 42% in the same period of the prior year mainly due to customers cancelling or deferring their programs into the second half of 2024, as a result of lower natural gas prices in 2023 that continued into 2024. The Canadian Association of Energy Contractors ("CAOEC") industry Operating Days decreased 1% in the first quarter of 2024, compared to the first quarter of 2023, while the CAOEC industry average utilization increased five percentage points to 50%1 for the first quarter of 2024, compared to the CAOEC industry average utilization of 45% in the first quarter of 2023. The increase in the CAOEC industry average utilization is attributable to a 13% decrease in the average number of drilling rigs registered with the CAOEC in the first quarter of 2024 compared to the first quarter of 2023.  If the number of registered drilling rigs with the CAOEC had not decreased, the CAOEC industry average utilization in the first quarter of 2024 would have been 45%, consistent with the first quarter of 2023.  Revenue per Operating Day averaged $34,233 in the first quarter of 2024, an increase of 3% compared to the same period of the prior year, mainly due to higher pricing; In the United States ("US"), drilling rig utilization averaged 26% in the first quarter of 2024, compared to 45% in the first quarter of 2023, with Operating Days decreasing from 327 days in the first quarter of 2023 to 164 days in the first quarter of 2024 due to lower industry activity. Average active industry rigs of 6232 in the first quarter of 2024 were 18% lower compared to the first quarter of 2023. Revenue per Operating Day for the first quarter of 2024 averaged US$31,858, a 4% decrease compared to US$33,021 in the same period of the prior year, mainly due to higher standby revenue in 2023; and In Canada, service rig utilization of 44% in the first quarter of 2024 was consistent with the same period of the prior year. Revenue per Service Hour averaged $1,058 in the first quarter of 2024 and was 3% higher than the first quarter of 2023, due to improved pricing and inflationary pressures on operating costs, including higher wages that are passed through to the customer, which were partially offset by lower fuel surcharges as more customers provided their own fuel. The Company generated net income of $1.5 million in the first quarter of 2024 ($0.04 net income per basic common share) as compared to net income of $4.4 million in the same period in 2023 ($0.13 net income per basic common share). The change can mainly be attributed to a $0.7 million decrease in income tax expense, a $0.5 million decrease in stock based compensation expense, and a $0.3 million decrease in finance costs, which were partially offset by a $4.0 million decrease in Adjusted EBITDA, $0.2 million increase in depreciation expense due to property and equipment additions and a $0.2 million increase in other items. Administrative expenses in the first quarter of 2024 were $0.6 million higher than the first quarter of 2023, due to higher employee related costs including severance. Adjusted EBITDA of $15.2 million in the first quarter of 2024 was $4.0 million (or 21%) lower compared to $19.2 million in the first quarter of 2023. Adjusted EBITDA in 2024 was lower due to lower drilling revenue in Canada and the US, as well as lower pricing in the US, and inflationary pressures on all costs. First quarter additions to property and equipment of $1.9 million in 2024 compared to $5.2 million in the first quarter of 2023, consisting of $0.6 million of expansion capital related to rig upgrades and $1.3 million of maintenance capital. On March 22, 2024, the Company extended the maturity of its $35.0 million syndicated revolving credit facility (the "Revolving Facility") and its $10.0 million committed operating facility (the "Operating Facility" and together the "Credit Facilities") from May 18, 2025 to the earlier of (i) six months prior to the maturity date of the Second Lien Facility (as defined below) which is currently November 18, 2025, or (ii) March 21, 2027 if the Second Lien Facility is extended. The total commitments under the Credit Facilities are unchanged and there were no changes to the Company's financial covenants, where are described on page 8 of the Company's first quarter 2024 MD&A under "Liquidity and Capital Resources".  1 Source: CAOEC, monthly Contractor Summary. 2 Source: Baker Hughes Company, North America Rotary Rig Count. Selected Financial Information (stated in thousands, except share and per share amounts)                    Three months ended March 31 Financial Highlights 2024 2023         Change Revenue 61,982 79,239 (22 %) Adjusted EBITDA(1) 15,219 19,196 (21 %) Adjusted EBITDA as a percentage of revenue(1) 25 % 24 % 4 % Cash flow from operating activities 7,802 6,445 21 % Additions to property and equipment 1,902 5,165 (63 %) Net income 1,455 4,421 (67 %)    – basic and diluted net income per share 0.04 0.13 (69 %) Weighted average number of shares    – basic 33,843,015 33,841,323 -    – diluted 33,843,015 33,843,048 - Outstanding common shares as at period end 33,843,015 33,841,324 - (1)      See "Non-IFRS Measures and Ratios" included in this press release.                                              Three months ended March 31 Operating Highlights(2) 2024 2023       Change Contract Drilling Canadian Operations: Contract drilling rig fleet:    – Average active rig count 10.5 14.3 (27 %) Operating Days 952 1,283 (26 %) Revenue per Operating Day(3) 34,233 33,275 3 % Drilling rig utilization 31 % 42 % (26 %) CAOEC industry average utilization – Operating Days(4) 50 %