Mr. Neal Coleman reports

PULSE SEISMIC INC. REPORTS THIRD QUARTER 2023 RESULTS AND DECLARES REGULAR QUARTERLY DIVIDEND

Pulse Seismic Inc. has released its financial and operating results for the three and nine months ended Sept. 30, 2023. The unaudited condensed consolidated interim financial statements, accompanying notes, and MD&A (management's discussion and analysis) are being filed on SEDAR+ and will be available on Pulse's website.

Pulse's board of directors today approved a regular quarterly dividend of 1.375 cents per share (5.5 cents per share annualized) totalling approximately $724,000 based on Pulse's 52,659,363 common shares outstanding as of Oct. 24, 2023, which will be paid on Nov. 21, 2023, to shareholders of record on Nov. 14, 2023. This dividend is designated as an eligible dividend for Canadian income tax purposes. For non-resident shareholders, Pulse's dividends are subject to Canadian withholding tax.

Pulse considers the return of cash to shareholders through dividends and share buybacks to be a prudent allocation of capital at this time. Excluding the regular dividend approved today, in 2023 the company has already distributed 19 cents per share in dividends, representing a yield of approximately 10.8 per cent at today's closing share price. Additionally, the company has purchased 945,506 shares for $1.8-million in the first three quarters of 2023. Since 2003 Pulse has distributed $78.5-million in dividends and spent $48.0-million to purchase shares of the company through its normal course issuer bid.

Highlights for the three and nine months ended Sept. 30, 2023

• Total revenue was $5.1-million for the three months ended Sept. 30, 2023, compared with $2.2-million for the three months ended Sept. 30, 2022. For the nine months ended Sept. 30, 2023, total revenue was $22.3-million compared with $7.1-million for the nine months ended Sept. 30, 2022. Data library sales revenue increased in each quarter of 2023 over the 2022 comparative periods.
• Net earnings for the three months ended Sept. 30, 2023, was $393,000 (one cent per share basic and diluted) compared with a net loss of $1.7-million (three cents per share basic and diluted) for the three months ended Sept. 30, 2022. Net earnings for the nine months ended Sept. 30, 2023, was $6.7-million (13 cents per share basic and diluted) compared with a net loss of $5.9-million (11 cents per share basic and diluted) for the nine months ended Sept. 30, 2022.
• EBITDA (earnings before interest, taxes, depreciation and amortization) was $3.3-million (six cents per share basic and diluted) for the three months ended Sept. 30, 2023, compared with $741,000 (one cent per share basic and diluted) for the three months ended Sept. 30, 2022. EBITDA was $16.8-million (32 cents per share basic and diluted) for the nine months ended Sept. 30, 2023, compared with $1.6-million (three cents per share basic and diluted) for the nine months ended Sept. 30, 2022.
• Shareholder free cash flow was $2.8-million (five cents per share basic and diluted) for the third quarter of 2023 compared with $880,000 (two cents per share basic and diluted) for the comparable period in 2022. Shareholder free cash flow was $13.9-million (26 cents per share basic and diluted) for the nine months ended Sept. 30, 2023, compared with $2.3-million (four cents per share basic and diluted) for the nine months ended Sept. 30, 2022.
• In the third quarter of 2023, Pulse paid a special dividend of 15 cents per share and a regular quarterly dividend of 1.375 cents per share for a total of $8.7-million (regular dividend of 1.25 cents per share for a total of $672,000 for the three months ended Sept. 30, 2022). For the nine months ended Sept. 30, 2023, Pulse paid a total of $10.1-million compared with $2.0-million for the same period in 2022.,
• In the nine-month period ended Sept. 30, 2023, Pulse purchased and cancelled, through its normal course issuer bid, a total of 945,506 common shares at a total cost of approximately $1.8-million (average cost of $1.94 per common share including commissions).
• At Sept. 30, 2023, Pulse was debt-free and had a cash balance of $9.8-million. The company's $25.0-million revolving credit facility is undrawn and fully available to the company.

Outlook

With seismic data library sales of $22.2-million in the first nine months of 2023, Pulse is pleased with the recovery from a slow 2022 and remains optimistic about the remainder of the year. Areas of strength continue to include buoyant global demand for fossil fuels, forecasts for relative strength in industry capital investment and field activities, continuing corporate profitability, and Alberta mineral lease auctions (land sales) through Sept. 30 showing the greatest year-to-date strength in nearly a decade. These positive factors are dampened by continued geopolitical instability and a challenging federal regulatory environment.

The company cautions, as always, that industry conditions do not provide visibility regarding Pulse's seismic data library sales levels. Pulse's key strengths include zero debt, a low-cost structure, high leverage to increased revenue in its EBITDA margin, no capital spending commitments, Canada's largest licensable seismic data library and strong customer relations.

The company remains focused on the business practices that have served it throughout the full range of conditions: maintaining a strong balance sheet with access to credit on favourable terms, careful management of cash resources including distributing cash to shareholders when prudent, a low-cost structure, a disciplined and rigorous approach to growth opportunities, an experienced and capable management team, and excellent customer care complemented by the initiative to broaden the attractiveness of the seismic data library.

About Pulse Seismic Inc.

Pulse Seismic is a market leader in the acquisition, marketing and licensing of 2-D and 3-D seismic data to the Western Canadian energy sector. Pulse Seismic owns the largest licensable seismic data library in Canada, currently consisting of approximately 65,310 square kilometres of 3-D seismic and 829,207 kilometres of 2-D seismic. The library extensively covers the Western Canada sedimentary basin, where most of Canada's oil and natural gas exploration and development occur.

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