Source Energy Services Reports Lower Q2 Revenue Amid Weak Western Canada Gas Prices

Source Energy Services Ltd (TSE:SHLE) reported lower second-quarter revenue and adjusted EBITDA due to weak Western Canadian natural gas prices, which reduced completion activity. However, a sharp increase in U.S. mine-gate sales partly offset softer Canadian demand.

The company's Chief Executive Officer Scott Melbourn said customers deferred or shifted a larger portion of their completion programs to the second half of 2026 amid low natural gas prices. He expects Canadian activity to improve from first-half levels, particularly in liquids-rich plays, but has tempered its expectations for total Canadian volumes due to canceled play-specific completions and uncertainty tied to merger-and-acquisition activity.

Source reported total sales volume of 831,000 metric tons, down 24% from the second quarter of 2025. Revenue totaled C$137.1 million, declining from a year earlier as lower customer activity outweighed growth in mine-gate and domestic sand sales. Adjusted EBITDA was C$18.5 million, down C$16.7 million from the same quarter last year.