NorAm drilling reports Q3 results as Permian output declines

NorAm Drilling AS announced its Q3 2025 results, reporting revenue of $23.9m, a slight decrease from $24.9m in Q2 2025. Utilization was 80.2%, down from 86.0% in the previous quarter. Adjusted EBITDA for the quarter was $4.3m, down from $5.3m in Q2 2025, resulting in a profit after tax of $4.0m and earnings per share of $0.09. The company maintains a strong backlog of $25.8m as of November 19, 2025.

NorAm continues its debt-free and full payout strategy, with 36 consecutive monthly distributions totaling $86m. The latest distribution of $0.03/sh implies a 12.2% dividend yield p.a. Nine of its eleven rigs are currently contracted, with one idle rig secured for mid-December. The company anticipates stable Permian rig counts, noting that Permian tight oil production is now in decline.

Despite a decrease in direct margin due to higher repair and maintenance costs, NorAm reported exceptionally low capital expenditure in Q3. The company's focus remains on leveraging its modernized Ultra Super Spec rigs to unlock oil reserves in the Permian Basin, where it holds a strong position with top-quality customer portfolios like ConocoPhillips and Oxy.