Mr. Neal Coleman reports

PULSE SEISMIC INC. REPORTS Q1 2024 RESULTS AND INCREASES REGULAR DIVIDEND

Pulse Seismic Inc. has released its financial and operating results for the three months ended March 31, 2024. The unaudited condensed consolidated interim financial statements, accompanying notes, and management's discussion and analysis (MD&A) are being filed on SEDAR+ and will be available on Pulse's website.

Pulse's board of directors today approved a 9-per-cent increase to the regular dividend and declared a regular quarterly dividend of 1.5 cents per share. This increase results in an annualized regular dividend of six cents per share. The total of the dividend will be approximately $780,000 based on Pulse's 51,994,563 common shares outstanding as of April 24, 2024, and will be paid on May 23, 2024, to shareholders of record on May 14, 2024. These dividends are designated as an eligible dividend for Canadian income tax purposes. For non-resident shareholders, Pulse's dividends are subject to Canadian withholding tax.

The annual general meeting of the shareholders of Pulse will be held at 11 a.m. MDT on April 25, 2024, at the offices of McCarthy Tetrault LLP, Suite 4000, 421 7th Ave. SW, Calgary, Alta.

Highlights for the three months ended March 31, 2024:

• A regular quarterly dividend of 1.375 cents per share was declared and paid in the first quarter.
• The special dividend of 20 cents per share totalling $10.5-million, declared in December, 2023, was paid in the first quarter.
• Shareholder free cash flow was $5.0-million (10 cents per share basic and diluted), compared with $5.3-million (10 cents per share basic and diluted) in the first quarter of 2023.
• EBITDA (earnings before interest, taxes, depreciation and amortization) was $6.2-million (12 cents per share basic and diluted), compared with $6.6-million (12 cents per share basic and diluted) in the first quarter of 2023.
• Net earnings were $2.7-million (five cents per share basic and diluted), compared with net earnings of $2.9-million (five cents per share basic and diluted) in the first quarter of 2023.
• Total revenue was $8.8-million, compared with $8.4-million for the three months ended March 31, 2023.
• In the three-month period ended March 31, 2024, Pulse purchased and cancelled, through its normal course issuer bid, a total of 627,300 common shares at a total cost of approximately $1.2-million (at an average cost of $1.89 per common share including commissions).
• At March 31, 2024, Pulse was debt free and held cash of $13.8-million.

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 $8.8-million of revenue in the first quarter. 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. The completion of the Trans Mountain pipeline expansion project is imminent and the LNG Canada facility is expected to be operational in 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, Sayer Energy Advisors reported that it anticipates a year-over-year reduction 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. Land sales are also 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's seismic data library sales levels and remains focused on the business practices that have served it throughout the full range of conditions. Pulse 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's strong financial position, 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.

Pulse 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 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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