Mr. Neal Coleman reports

PULSE SEISMIC INC. REPORTS 2023 FINANCIAL RESULTS AND DECLARES DIVIDEND

Pulse Seismic Inc. has released its financial and operating results for the year ended Dec. 31, 2023. The audited consolidated financial statements, accompanying notes, and management's discussion and analysis are being filed on SEDAR+ and will be available on Pulse Seismic's website.

Pulse Seismic's board of directors today approved a quarterly dividend of 1.375 cents per share. The total of the regular dividend will be approximately $715,000 based on Pulse Seismic's 52,003,063 common shares outstanding as of Feb. 15, 2024, to be paid on March 11, 2024, to shareholders of record on March 1, 2024. This dividend is designated as an eligible dividend for Canadian income tax purposes. For non-resident shareholders, Pulse Seismic's dividends are subject to Canadian withholding tax.

"The financial performance of the company in 2023 was exceptional, with material increases in both traditional and transaction-based sales over the prior year," stated Neal Coleman, the company's president and chief executive officer. "We returned 94 per cent of 2023 free cash flow to our shareholders. That is $23.3-million of capital allocated to dividends and share buybacks. Revenue was $39.1-million for the year, 63 per cent of which converted to shareholder free cash flow. Having zero debt and a low-cost structure allows for significant returns of capital in high sales years," Mr. Coleman continued. "I am also very pleased to report a great start to 2024 as we have earned $8.3-million of data licensing revenue so far this year," he concluded.

Highlights for the year ended Dec. 31, 2023:

• The return of capital to shareholders in 2023, including all declared dividends and normal course issuer bid share purchases, totalled $23.3-million.
• Dividends of 40.375 cents per share were declared in 2023. Regular dividends declared and paid totalled 5.375 cents per share. The annualized regular dividend of five cents per share was increased by 10 per cent to 5.5 cents per share in the first quarter of the year. The first of two special dividends declared in 2023 was for 15 cents per share and paid in the third quarter. The second, for 20 cents per share, was declared in December and paid on Jan. 8, 2024. Total dividends paid in 2023 were $10.9-million, and the January paid dividend totalled $10.5-million.
• Pulse Seismic purchased 1,005,006 shares during the year under the normal course issuer bid at an average price of $1.92 per share for total cost of approximately $1.9-million.
• Shareholder free cash flow was $24.8-million (47 cents per share, basic and diluted) compared with $3.2-million (six cents per share, basic and diluted) for the year ended Dec. 31, 2022.
• EBITDA (earnings before interest, taxes, depreciation and amortization) was $30.4-million (57 cents per share, basic and diluted) compared with $2.0-million (four cents per share, basic and diluted) for the year ended Dec. 31, 2022.
• Net earnings were $15.0-million (28 cents per share, basic and diluted) compared with a net loss of $7.9-million (15 cents per share, basic and diluted) for 2022.
• Total revenue was $39.1-million compared with $9.6-million for the year ended Dec. 31, 2022.
• At Dec. 31, 2023, the company remained debt-free and had a cash balance of $15.9-million, as well as $25.0-million of available liquidity on its credit facility. Subsequent to year-end, the company amended its credit facility to a revolving demand facility with a borrowing limit of $5.0-million.

Highlights for the three months ended Dec. 31, 2023:

• A special dividend of 20 cents per share, totalling $10.5-million, was declared in December, 2023, and paid on Jan. 8, 2024.
• The regular quarterly dividend of 1.375 cents per share was paid in the fourth quarter.
• Shareholder free cash flow was $10.9-million (21 cents per share, basic and diluted) compared with $908,000 (two cents per share, basic and diluted) in the fourth quarter of 2022.
• EBITDA was $13.6-million (26 cents per share, basic and diluted) compared with $467,000 (one cent per share, basic and diluted) in the fourth quarter of 2022.
• Net earnings were $8.3-million (16 cents per share, basic and diluted) compared with a net loss of $1.9-million (four cents per share, basic and diluted) in the fourth quarter of 2022.
• Total revenue was $16.9-million compared with $2.4-million for the three months ended Dec. 31, 2022.
• A total of 59,500 shares were purchased under the NCIB in the fourth quarter at an average price of $1.87 per share and total cost of approximately $112,000.
• The Toronto Stock Exchange accepted Pulse Seismic's notice of intention to commence an NCIB, allowing Pulse Seismic to purchase up to 2,957,406 common shares between Dec. 20, 2023, and Dec. 19, 2024. The company's purchase of shares during any trading day will not exceed 2,618 common shares, subject to Pulse Seismic's ability to make block purchases in accordance with the TSX facilities and rules. Shares purchased on behalf of Pulse Seismic will be carried out by Peters & Co. Ltd.

Outlook

Following the high level of data licensing and financial performance achieved in 2023, the company has also experienced a solid start to 2024, generating $8.3-million of revenue as of Feb. 15. While the outlook for economic and commodity markets is mixed, several factors are expected to have a positive impact on the year ahead in the energy industry. The continued strength in crude oil prices and expectations that global demand for fossil fuels will continue to trend upward are key. That said, natural gas prices have continued to decline and are currently at a 3-1/2 low. The completion of the Trans Mountain pipeline expansion project is imminent, and the progress on the LNG Canada facility is expected to be operational in early 2025. These critical energy projects will provide increased export capacity for delivering both oil and natural gas to global markets.

After two high-volume years of industry merger-and-acquisition activity, it is anticipated to decline year over year to approximately $12-billion in 2024. This forecast reflects the stronger balance sheets and profitability in the industry and, accordingly, fewer assets and companies for sale. An initial 2024 forecast by Enserva anticipates industry capital spending growth of a further 10 per cent this year, and land sales are forecast to remain robust. In November, 2023, the Canadian Association of Energy Contractors issued an initial 2024 drilling forecast of 6,229 wells, up from 5,748 in 2023.

The company cautions, as always, that industry conditions do not provide visibility regarding Pulse Seismic's seismic data library sales levels and remain focused on the business practices that have served it throughout the full range of conditions. Pulse Seismic maintains a strong balance sheet, and has zero debt, no capital spending commitments, and a disciplined and rigorous approach to evaluating growth opportunities. This 15-person company, led by an experienced and capable management team, operates with a low-cost structure and focuses on developing excellent client relations and providing exceptional customer service. Pulse Seismic's strong financial position, the high leverage to increased revenue in its EBITDA margin and careful management of its cash resources have resulted in the return of capital to shareholders through regular and special dividends and the repurchase of its shares.

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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