2019 results 2020-03-09 06:52 ET - News Release Mr. Michael Gray reports ENSIGN ENERGY SERVICES INC. REPORTS 2019 RESULTS Ensign Energy Services Inc. has released its 2019 financial results. OVERVIEW Revenue for the year ended December 31, 2019 was $1,592.2 million, an increase of 38 percent from 2018 revenue of $1,156.4 million. Adjusted EBITDA for 2019 totaled $406.8 million, ($2.55 per common share), 59 percent higher than Adjusted EBITDA of $255.7 million ($1.63 per common share) for the year ended 2018. Net loss attributed to shareholders for the year ended December 31, 2019 was $162.9 million ($1.02 per common share) compared to net income attributed to shareholders of $58.3 million ($0.37 per common share) for the year ended December 31, 2018. During the fourth quarter of 2018, the Company acquired 89.3 percent of Trinidad Drilling Ltd. ("Trinidad"), common shares. During the first quarter of 2019, the Company acquired the remaining 10.7 percent of Trinidad common shares, completing the largest acquisition in the Company's history (the "Trinidad Acquisition"). The Trinidad Acquisition increased the Company's rig fleet by 68 drilling rigs in Canada, 66 in the United States and one internationally. The Trinidad Acquisition also included a 60 percent interest in Trinidad Drilling International ("TDI"), a joint venture with a wholly-owned subsidiary of the Halliburton group of companies. TDI further expanded the Company's geographic footprint with the addition of three new countries of operation (Bahrain, Kuwait and Mexico). Results for the year ended December 31, 2019 were materially impacted by the Trinidad Acquisition, notably through increased activity levels due to the increase in rig fleet size, an expanded customer base and additional exposure internationally and in key basins in the United States market. In Canada, the Company moved five under-utilized drilling rigs into its reserve fleet, decommissioned 18 drilling rigs and 10 well servicing rigs, and transferred one ADRtrademark drilling rig to the United States. In the United States, the Company deployed one new well servicing rig and decommissioned 14 drilling rigs. The Company also deployed one new ADRtrademark drilling rig into its international operations, using various components from its spare capital inventory, and placed two international under-utilized drilling rigs into its reserve fleet. The Company declared total dividends of $0.42 per common share in 2019 (2018 - $0.48 per common share). Working capital as of December 31, 2019 was a surplus of $127.0 million, compared to a working capital deficit of $156.2 million as of December 31, 2018. The increase in working capital year-over-year was largely due to the repayment of the US $200.0 million Ensign senior unsecured notes (the "Ensign Notes") and the repayment of the Trinidad credit facility (the "Trinidad Facility") of $98.0 million which had been classified as short term debt as of December 31, 2018. The Company's available liquidity consisting of cash and available borrowings under its $900.0 million revolving credit facility (the "Credit Facility") totaled $178.4 million as of December 31, 2019, compared to $486.0 million at December 31, 2018. The available liquidity decreased by $307.6 million due to a reduction in the available credit amount under the Credit Facility in accordance with its terms and debt repayments. FINANCIAL AND OPERATING HIGHLIGHTS (in thousands of Canadian dollars, except per share data and operating information) Three months ended December 31Twelve months ended December 31 2019 2018 % change2019 2018 % change Revenue 375,767 346,136 9 1,592,247 1,156,357 38 Adjusted EBITDA 1 93,864 81,678 15 406,766 255,677 59 Adjusted EBITDA per common share 1 Basic $ 0.58 $ 0.52 12 $ 2.55 $ 1.63 56 Diluted $ 0.58 $ 0.52 12 $ 2.55 $ 1.63 56 Net (loss) income attributable to shareholders (71,615) 154,834 nm (162,905) 58,664 nm Net (loss) income per common share Basic $ (0.44) $ 0.98 nm $ (1.02) $ 0.37 nm Diluted $ (0.44) $ 0.98 nm $ (1.02) $ 0.37 nm Cash provided by operating activities 93,079 61,037 52 269,571 152,133 77 Funds flow from operations 54,795 63,834 (14) 236,989 225,939 5 Funds flow from operations per common share 3 Basic $ 0.33 $ 0.41 (20) $ 1.48 $ 1.44 3 Diluted $ 0.33 $ 0.41 (20) $ 1.48 $ 1.44 3 Total debt, net of cash 1,553,121 1,632,141 (5) 1,553,121 1,632,141 (5) Weighted average common shares - basic (000s) 165,547 156,794 6 159,599 156,863 2 Weighted average common shares - diluted (000s)165,593 156,976 5 159,686 157,042 2 Drilling 2019 2018 % change2019 2018 % change Number of marketed rigs 2 Canada 3 101 125 (19) 101 125 (19) United States 122 133 (8) 122 133 (8) International 4 43 44 (2) 43 44 (2) Operating days 5 Canada 3 2,217 1,691 31 8,949 6,002 49 United States 5,313 4,711 13 24,802 14,173 75 International 4 1,432 1,588 (10) 5,360 6,061 (12) Well Servicing 2019 2018 % change2019 2018 % change Number of rigs Canada 52 62 (16) 52 62 (16) United States 47 46 2 47 46 2 Operating hours Canada 11,646 12,377 (6) 46,718 57,068 (18) United States 28,395 30,747 (8) 115,136 112,224 3 2019 HIGHLIGHTS Revenue for 2019 was $1,592.2 million, a 38 percent increase from 2018 revenue of $1,156.4 million. Revenue amounts and percentage of total by geographic area: Canada - $293.3 million, 18 percent; United States - $1,005.5 million, 64 percent; and International - $293.4 million, 18 percent. Canadian drilling recorded 8,949 operating days in 2019, a 49 percent increase from 6,002 operating days in 2018. Canadian well servicing recorded 46,718 operating hours in 2019, an 18 percent decrease from 57,068 operating hours in 2018. United States drilling recorded 24,802 operating days in 2019, a 75 percent increase from 14,173 operating days in 2018. United States well servicing recorded 115,136 operating hours in 2019, a three percent increase from the 112,224 operating hours in 2018. International drilling recorded 5,360 operating days in 2019, a 12 percent decrease from 6,061 operating days recorded in 2018. Adjusted EBITDA for 2019 was $406.8 million a 59 percent increase from Adjusted EBITDA of $255.7 million for 2018. Funds flow from operations for 2019 increased five percent to $237.0 million from $225.9 million in the year prior. Net capital expenditures for the calendar year 2019 totaled $96.0 million. Net capital expenditures for the calendar year 2020 are targeted to be approximately $100.0 million. During 2019, the Company reduced its debt by $135.4 million through the purchase and cancellation of US $58.0 million face value of Senior Notes and Credit Facility repayments. The Company declared a first quarter cash dividend on common shares of $0.06 per common share payable April 3, 2020. The Company declared total dividends of $0.42 per common share in 2019. REVENUE AND OILFIELD SERVICES EXPENSE Revenue for the year ended December 31, 2019 totaled $1,592.2 million, a 38 percent increase from the year ended December 31, 2018 of $1,156.4 million. Despite volatile commodity pricing and oilfield activity in 2019, the Company has achieved increased activity and revenue as a result of the Trinidad Acquisition, while reducing operating costs on a per day basis. The financial results from the Company's United States and international operations were positively impacted on the currency translation, as the United States dollar strengthened relative to the Canadian dollar for year ended December 31, 2019. This positive currency translation was partially offset the impact of revenue day rate decreases experienced in 2019. The Company recorded revenue of $375.8 million for the three months ended December 31, 2019, a nine percent increase from the $346.1 million recorded in the three months ended December 31, 2018. CANADIAN OILFIELD SERVICES The Company recorded revenue of $293.3 million in Canada for the year ended December 31, 2019, an increase of 22 percent from $241.0 million recorded for the year ended December 31, 2018. Revenue generated in Canada increased by nine percent to $71.2 million for the three months ended December 31, 2019, from $65.6 million for the three months ended December 31, 2018. For the year ended December 31, 2019, total revenues generated from the Company's Canadian operations were 18 percent of the Company's total revenue compared with 21 percent in the prior year. In the fourth quarter of 2019, Canadian revenues accounted for 19 percent of the total revenue, consistent with 2018. For the year ended December 31, 2019, the Company recorded 8,949 drilling operating days in Canada, an increase of 49 percent as compared to 6,002 drilling operating days for the year ended December 31, 2018. During the fourth quarter of 2019 the Company recorded 2,217 operating days in Canada, an increase of 31 percent from 1,691 operating days recorded during the fourth quarter of the prior year. Well servicing hours decreased by 18 percent to 46,718 operating hours compared with 57,068 operating hours for the year ended December 31, 2018. Well servicing hours in the fourth quarter of 2019 were down six percent to 11,646 compared to the 12,377 hours in the fourth quarter of the prior year. The overall increase in activity levels for year ended December 31, 2019, when compared to 2018 was primarily a result of the Trinidad Acquisition. The increase in overall activity was offset by lower revenue rates realized in 2019, due to continuing challenges to commodity prices for the Canadian market, combined with rig mix in the second half of 2019. During 2019, the Company transferred one ADRtrademark drilling rig from Canada to the United States, moved five under-utilized drilling rigs into its reserve fleet and decommissioned 18 drilling and 10 well servicing rigs that were fully depreciated. UNITED STATES OILFIELD SERVICES For the year ended December 31, 2019, revenue of $1,005.5 million was recorded in the United States, an increase of 57 percent from the $641.6 million recorded in the prior year. Revenues recorded in the United States were $217.8 million in the fourth quarter of 2019, a four percent increase from the $209.9 million recorded in the corresponding period of the prior year. The Company's United States operations accounted for 64 percent of the Company's total revenue in the 2019 fiscal year (2018 - 55 percent) and was the largest contributor to the Company's total revenues in 2019, consistent with the prior year. During the fourth quarter of 2019, United States operations accounted for 58 percent of the Company's revenue (2018 - 61 percent), also the largest contributor to the Company's consolidated fourth quarter revenues and consistent with the prior year. In the United States, drilling operating days increased by 75 percent from 14,173 drilling operating days in 2018 to 24,802 operating days in 2019. For the year ended December 31, 2019, well servicing activity increased three percent to 115,136 operating hours, from 112,224 operating hours in 2018. During the fourth quarter drilling operating days increased by 13 percent from 4,711 operating days in 2018 to 5,313 operating days in 2019. For the fourth quarter ended December 31, 2019, well servicing activity decreased eight percent from 30,747 operating hours in 2018 to 28,395 operating hours. Activity levels and revenues for the Company's United States operations were positively impacted by the Trinidad Acquisition. Furthermore, revenues were positively impacted by a strengthening of the United States dollar versus the Canadian dollar year-over-year. The increases in activity and revenue were offset somewhat by a decrease in the average revenue rates realized in 2019. During 2019, the Company transferred one ADRtrademark drilling rig from Canada to the United States and deployed one new well servicing rig to the United States fleet. In addition, the Company decommissioned 14 drilling rigs that were fully depreciated. INTERNATIONAL OILFIELD SERVICES The Company's international revenues for the year ended December 31, 2019 increased seven percent to $293.4 million from $273.8 million recorded in the year ended December 31, 2018. International revenue totaled $86.9 million in the fourth quarter of 2019, a 23 percent increase from $70.7 million recorded in the corresponding period of the prior year. The Company's international operations accounted for 18 percent of the Company's total revenue in 2019 (2018 - 24 percent). The Company's international operations contributed 23 percent of the Company's fourth quarter revenue in 2019 (2018 - 20 percent). International drilling operating days totaled 5,360 in 2019 compared to 6,061 drilling operating days for the year ended December 31, 2018, a decrease of 12 percent compared to the year prior. International operating days for the three months ended December 31, 2019 decreased 10 percent to 1,432 compared to 1,588 operating days in the fourth quarter of 2018. Activity levels were lower for the year ended December 31, 2019 in the Company's international operations due to reduced activity in Latin America where the number of operating rigs dropped from six active drilling rigs to four active drilling rigs. The reduction in Latin American operations was offset somewhat by increases in the Australian and Middle East operations and the strengthening United States dollar year-over-year versus the Canadian dollar. Furthermore, the overall decrease in international activity was offset by higher revenue rates, leading to a seven percent increase in revenue for the year ended December 31, 2019 compared to the similar period of 2018. During 2019, the Company deployed one new ADRtrademark drilling rig to its international operations, using various components from its spare capital inventory. In addition, the Company moved two under-utilized drilling rigs into its reserve fleet. JOINT VENTURE Amounts below are presented at 100 percent of the value included in the statement of operations and comprehensive (loss) income for TDI. The Company owns 60 percent of the shares of TDI and each of the parties has equal voting rights. The Company considers the investment to be a financial asset and fair values the investment through profit or loss recognizing changes in fair value of the investment in consolidated statement of loss (income) as a loss/(gain) from investments in joint venture. For the year ended December 31, 2019, TDI recorded operating revenue of $60.7 million, an increase of $57.1 million from the same period in 2018. The Company acquired TDI as part of the Trinidad Acquisition during the fourth quarter of 2018 with 2019 being a full year of operations. In the fourth quarter of 2019, TDI recorded operating revenue of $19.7 million, an increase of $16.1 million from the same period in 2018. Operating days increased by 586 to 633 in 2019 from 47 days in 2018. The increase in operating days is a result of 2019 being a full year of operations and the start-up of operations in Kuwait, consisting of two drilling rigs. During fourth quarter operating days were 212 days, an increase of 165 days over the same period in 2018. During the year, TDI recorded an impairment of $48.1 million on two drilling rigs that are in Mexico. The Company's share of the impairment was $28.9 million. DEPRECIATION Depreciation expense for the year decreased by 13 percent to $363.1 million compared with $415.0 million for the year ended 2018. Depreciation expense totaled $93.5 million for the fourth quarter of 2019 compared with $113.6 million for the fourth quarter of 2018, a decrease of 18 percent. In the first quarter of 2019, the Company reviewed the makeup and the age of its drilling rig fleet and other equipment and, based on age, specification and type of recertifications underway, determined the useful life estimates previously used did not appropriately represent the useful life of the equipment. On this adjusted basis, the Company believes the new useful life estimates for its equipment accurately reflect the future economic benefits related to these assets. These adjustments were applied prospectively and, as such, have caused a decrease in depreciation expense for the year ended December 31, 2019 when compared to the year ended December 31, 2018. GENERAL AND ADMINISTRATIVE EXPENSE For the year ended December 31, 2019, general and administrative expense totaled $55.1 million (3.5 percent of revenue) compared to $44.9 million (3.9 percent of revenue) for the year ended December 31, 2018, an increase of 23 percent. General and administrative expense increased seven percent to $13.5 million (3.6 percent of revenue) for the fourth quarter of 2019. The increase was primarily due to the Trinidad Acquisition. However, synergies and cost savings realized following the Trinidad Acquisition have led to a decrease in general and administrative expense as a percentage of revenue. The Company continues to focus on initiatives to manage costs and realize further synergies and cost savings. RESTRUCTURING EXPENSE For the year ended December 31, 2019, restructuring expense totaled $12.6 million, which includes one-time severance costs of $8.4 million (2018 - $nil). These costs were largely due to the Trinidad Acquisition. For the fourth quarter of 2019, restructuring costs were $1.6 million (2018 - $1.5million), which includes one-time severance costs of $0.2 million (2018 - $nil) FOREIGN EXCHANGE AND OTHER LOSS (GAIN) Included in this amount is the impact of foreign currency fluctuations in the Company's subsidiaries that have functional currencies other than the Canadian dollar. GAIN ON ASSET SALE On April 30, 2019 the Company completed the sale of its testing and wireline assets in Canada and the United States for cash proceeds of $24.0 million. The transaction resulted in a gain of $9.8 million before taxes (2018 - $nil). INTEREST EXPENSE Interest was incurred on the Company's $900.0 million Credit Facility, US $700 million unsecured Senior Notes (the "Senior Notes"), $37.0 million subordinate convertible debentures (the "Convertible Debentures"), capital lease obligations, and on certain other prior debt instruments until they were repaid during 2019. Included in interest expense is the amortization of deferred financing costs associated with refinancing the Company's debt resulting from the Trinidad Acquisition, which totaled $13.9 million (2018 - $1.8 million). Due to payment delays for work performed in Venezuela, the Company recognized a discount on its receivable in the amount of $3.8 million within interest expense. The receivable over 90 days is discounted at 14.5 percent over a five-year period. Interest expense increased by $96.7 million for the year ended December 31, 2019 compared to the same period in 2018. The increase is the result of the overall increase to the interest rate, additional debt incurred to fund the Trinidad Acquisition and the discount applied on Venezuela receivables. The negative translation impact on US dollar-denominated debt also impacted interest expense for the year ended December 31, 2019. For the three months ended December 31, 2019, interest expense increased 68 percent to $37.3 million compared to the comparative period in 2018. INCOME TAXES The effective income tax rate for the year ended December 31, 2019 was 11.2 percent compared with 26.9 percent for the year ended December 31, 2018. The effective tax rate was significantly lower than the effective tax rate of 2018 primarily due to the reduction in the provincial Alberta tax rate on the deferred tax asset and the denial of hybrid interest deductions in the United States. FUNDS FLOW FROM OPERATIONS AND WORKING CAPITAL For the year ended December 31, 2019, the Company generated funds flow from operations of $237.0 million ($1.48 per common share) an increase of five percent from $225.9 million ($1.44 per common share) for the year ended December 31, 2018. The Company generated funds flow from operations of $54.8 million ($0.33 per common share) in the three months ended December 31, 2019, compared to $63.8 million ($0.41 per common share) for the three months ended December 31, 2018. The change in funds flow from operations in 2019 compared to 2018 is primarily due to increased activity resulting from the Trinidad Acquisition, combined with a stronger United States dollar in 2019. This was partially offset by increased interest costs when compared to 2018. As of December 31, 2019, the Company's working capital was a surplus of $127.0 million, compared to a working capital deficit of $156.2 million as of December 31, 2018. The change in working capital in 2019 was mainly related to the repayment of US $200.0 million Ensign Notes and the $98.0 million Trinidad Facility in the first quarter of 2019. The Company's Credit Facility provides for total borrowings of $900.0 million of which $150.0 million was undrawn and available at December 31, 2019. INVESTING ACTIVITIES Net purchases of property and equipment during the fiscal year ending 2019 totaled $96.0 million (2018 - $73.3 million) and $17.3 million for the fourth quarter (2018 - net purchases of $16.9 million). The purchase of property and equipment relates predominantly to maintenance capital for certain drilling rigs, rig upgrades, the deployment of one drilling rig to international operations and addition of one new well servicing rig in the United States. FINANCING ACTIVITIES The Company's available credit facilities consist of a $900.0 million secured Credit Facility, which matures November 26, 2021, of which $150.0 million was available and undrawn as of December 31, 2019. In addition, the Company has available to it a US $50.0 million secured letter of credit facility, of which US $6.9 million was available as of December 31, 2019. During the second quarter of 2019, the Company issued US $700.0 million of Senior Notes due 2024 bearing interest of 9.25% per annum. The net proceeds of the Senior Notes offering and cash on hand were used to repay all outstanding loans under the Company's US $700.0 million senior loan. The Senior Notes may be redeemed by the Company on or after April 15, 2021 at 104.625%, April 15, 2022 at 102.313% and April 15, 2023 and thereafter at 100%, plus accrued interest. The current capital structure consisting of the Credit Facility and the Senior Notes allows the Company to utilize funds flow generated to reduce debt in the near term with greater flexibility than a more non-callable weighted capital structure. The Company may at any time and from time to time acquire Senior Notes for cancellation by means of open market purchases, negotiated transactions or otherwise. During the year ended December 31, 2019, the Company purchased US $58.0 million of face value Senior Notes for cancellation, in the open market. The Company purchased a further US $4.0 million of Senior Notes for cancellation subsequent to December 31, 2019. The cumulative purchase price was US $54.6 million in addition to US $1.1 million of accrued interest. The Company recorded a gain on the purchase of US $3.5 million. NEW BUILDS AND MAJOR RETROFITS The Company continues to focus on innovative strategies and selective additions of new ADRtrademark drilling rigs and servicing rigs to meet the increasing technical demands of its customers. During year ended December 31, 2019, the Company: assembled and deployed one ADRtrademark drilling rig to the Company's international operations, using various components from its spare capital inventory, transferred one ADRtrademark drilling rig from Canada to the United States, deployed one new well servicing rig in the United States, moved seven under-utilized drilling rigs into its reserve fleet, and decommissioned 18 drilling and 10 well servicing rigs in Canada and 14 drilling rigs in United States. OUTLOOK Industry Overview The oil and natural gas industry continues to face commodity price volatility driving conservatism and caution in capital allocation and oilfield activity. The industry continues to see spending limited to generated cash flow and budgets directed towards maintaining production, resulting in a flat but steady outlook for oilfield services. The Company has responded by reinforcing commitments to debt retirement, disciplined capital expenditures and driving cost efficiencies. Canadian Activity Canadian operations improved at the end of the fourth quarter with takeaway capacity modestly increasing as a result of crude-by-rail expansion. Although, activity is expected to increase in the first quarter of 2020, we expect Canadian operations to be flat year over year for 2020 as customer budget expenditures are expected to be front-loaded to the first half of the year. Day rates continue to remain firm in the high/super-spec rig market. Of the Company's 101 marketed Canadian drilling rigs, approximately 44 percent are engaged under term contracts. Approximately 20 percent of the contracted rigs have a remaining contract term of six months or longer. United States Activity United States activity and day rates settled over the fourth quarter and are expected to remain flat into 2020. It is anticipated that day rates in the high/super-spec rig market may begin to be driven upward by high utilization and equipment shortages. Of the Company's 122 marketed United States drilling rigs, approximately 55 percent are contracted. Approximately 43 percent of the contracted rigs have a remaining contract term of six months or longer. International Activity International operations continue to be a steady operating segment for the Company, with long-term high margin contracts throughout the Middle East and Australia. Australian activity has been firm and is expected to be flat in 2020. Latin American operations remained steady through the fourth quarter and are expected to be flat to down slightly in 2020. The Company's activity in the Middle East improved in the fourth quarter as the Company's wholly owned Bahrain drilling rig commenced operations. Middle East operations are expected to remain steady for 2020. Of the Company's 48 marketed international drilling rigs (including the five joint venture drilling rigs), approximately 46 percent are contracted. Approximately 62 percent of the contracted rigs have a remaining contract term of six months or longer. 2020 Capital Expenditures and Debt Reduction The Company has budgeted net capital expenditures of approximately $100 million for 2020. The capital plan focuses on certifications and preventative maintenance for its global high/super spec drilling rig fleet, other services lines, and select equipment upgrade projects. In addition to a disciplined capital plan, the Company will continue to focus on net debt reduction throughout 2020 and beyond. The Company also expects to recognize the full year impact of $50 million of synergies, cost savings and economies of scale resulting from the Trinidad Acquisition. In addition, the proceeds of any asset dispositions, such as duplicate operating facilities, are expected to be directed to debt retirement. As a result, the Company expects to reduce net debt between $90 and $115 million in 2020. RISKS AND UNCERTAINTIES This document contains forward-looking statements based upon current expectations that involve several business risks and uncertainties. The factors that could cause results to differ materially include, but are not limited to, political, economic and market conditions, crude oil and natural gas prices, foreign currency fluctuations, weather conditions, the Company's defense of lawsuits and the ability of oil and natural gas companies to pay accounts receivable balances and raise capital or other unforeseen conditions which could impact the use of the services supplied by the Company. For a more detailed description of forward-looking statements and the risk factors and uncertainties that face the Company and the industry in which it operates, refer to the Advisory Regarding Forward-Looking Statement herein below, the "Risks and Uncertainties" section of our current Management's Discussion & Analysis and the section titled "Risk Factors" in our current Annual Information Form. CONFERENCE CALL A conference call will be held to discuss the Company's fourth quarter 2019 results at 10:00 a.m. MST (12:00 p.m. EST) on Monday, March 9, 2020. The conference call number is 1-647-427-7450 (in Toronto) or 1-888-231-8191 (outside Toronto). A taped recording will be available until March 16, 2020 by dialing 1-416-849-0833 (in Toronto) or 1-855-859-2056 (outside Toronto) and entering the reservation number 5339708. A live broadcast may be accessed through the Company's web site at www.ensignenergy.com . Ensign Energy Services Inc. is an international oilfield services contractor and is listed on the Toronto Stock Exchange under the trading symbol ESI. Consolidated Statements of (Loss) Income (in thousands of Canadian dollars, except per share data) Three months ended Twelve months ended Dec. 31, 2019 Dec. 31, 2018 Dec. 31, 2019 Dec. 31, 2018 Revenue $375,767 $346,136 $1,592,247 $1,156,357 Expenses Oilfield services 268,357 251,907 1,140,939 855,824 Depreciation 93,537 113,565 363,144 415,036 General and administrative 13,462 12,640 55,064 44,945 Restructuring 1,555 1,492 12,644 1,492 Share-based compensation 1,833 (1,729) 4,047 707 Foreign exchange and other loss (gain) 4,673 3,514 25,426 (19,001) Total expenses 383,417 381,389 1,601,264 1,299,003 Loss before interest, other (gains) losses and income taxes (7,650) (35,253) (9,017) (142,646) Loss (gain) from investment in joint ventures 37,981 (874) 39,892 (874) Gain on bargain purchase - (200,672) - (200,672) Gain on asset sale - - (9,824) - Gain on purchase of Senior Notes (3,077) - (4,647) - Interest expense 37,284 22,153 149,159 52,416 (Loss) income before income taxes (79,838) 144,140 (183,597) 6,484 Income tax (recovery) Current tax 1,965 377 3,416 1,044 Deferred tax recovery (10,834) (11,071) (23,559) (53,224) Total income tax recovery (8,869) (10,694) (20,143) (52,180) Net (loss) income (70,969) 154,834 (163,454) 58,664 Net (loss) income attributable to: Shareholders of Ensign (71,615) 154,472 (162,905) 58,302 Minority interests 646 362 (549) 362 (70,969) 154,834 (163,454) 58,664 Net (loss) income per common share Basic (0.44) 0.98 (1.02) 0.37 Diluted (0.44) 0.98 (1.02) 0.37