Weak Gas Prices Weigh on Source Energy Services Q2 Results

Source Energy Services reported lower second-quarter revenue and volumes due to weak Western Canadian natural gas prices reducing completion activity. However, mine-gate sales in the US increased sharply.

The company's CEO, Scott Melbourn, stated that customers deferred or shifted a larger portion of their completion programs to the second half of 2026 amid low natural gas prices. Source 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.

The company's quarterly results showed a 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.