NorAm Drilling reported a 61.5% increase in net profit after tax to $4.2 million in the second quarter of 2026, as revenue climbed 12.3% sequentially to $29.4 million. Adjusted EBITDA rose 40% to $6.3 million, while operating profit increased 60% to $4.8 million, according to the company’s earnings call transcript published on August 26, 2026.
The Houston-based driller said all 11 of its super-spec rigs in the Permian Basin remained fully contracted and operational during the quarter, achieving a utilization rate of 98.6% compared with 90.3% in the first quarter. The company’s backlog stood at $30.3 million as of the day before the presentation, while its cash balance totaled $8.1 million at quarter-end. NorAm maintained a debt-free balance sheet with an unused revolving credit facility of up to $4.5 million.
Capital expenditures for the full year are guided at NOK 3 million to NOK 4 million, with second-half spending expected between NOK 1 million and NOK 2 million primarily allocated to spares and vehicles. The all-in fully burdened break-even cost rose to $18,700 per day in Q2, up $800 from the prior quarter, reflecting higher maintenance capital requirements and customer specifications.
Shareholder returns continued to expand, with the company distributing $4.9 million in dividends during the quarter, equivalent to NOK 1.08 per share on a monthly basis. This marked a 26% increase in payouts compared with the previous quarter, yielding an estimated dividend yield of 9.3% to 11% based on closing share prices. NorAm has returned more than $100 million to shareholders since listing, equating to roughly NOK 24 per share.
The company’s stock last traded at $45.80, down 1.83% on the day, leaving shares about 14.4% below their 52-week high of $53.50 and approximately 75.5% above the 52-week low of $26.10. Over the past year, the stock has delivered a total return of 94%.
Management highlighted tightening conditions in the super-spec rig market, noting fewer than 10 such rigs remain available in the Permian Basin. The Permian rig count increased by 17 units during Q2 to 258 and rose by an additional nine to 267 as of the prior Friday. WTI crude prices traded at $80 per barrel at the time of the call, down from a Q2 peak near $113 per barrel amid Middle East geopolitical tensions.
