NorAm Drilling reports Q2 2025 results, maintains strong shareholder returns

NorAm Drilling AS presented its Q2 2025 results, reporting revenue of $24.9 million, a slight decrease from $25.8 million in Q1 2025. Adjusted EBITDA for the quarter was $5.3 million, down from $6.7 million in the previous quarter, with utilization at 86.0%. Despite a challenging environment, the company achieved a profit after tax of $3.7 million and earnings per share of $0.08. The backlog stood at $12.2 million as of August 25, 2025.

The company continues its shareholder-friendly approach with 33 consecutive monthly distributions, totaling $82.2 million. The latest distribution of $0.03 per share implies a 13.5% annualized dividend yield. NorAm Drilling’s fleet status shows 9 out of 11 rigs contracted, with ongoing efforts to secure opportunities for the two idle rigs, including outside the Permian Basin.

Operational figures indicate a Q2 direct margin impacted by the stacking of a second rig and higher repair and maintenance costs due to recertifications. The Permian rig count has declined, with WTI prices suggesting flat to slightly down activity levels. However, NorAm's Super Spec rigs remain the "rig of choice," reinforcing a long-term optimistic outlook.