This news release contains “forward-looking information and
statements” within the meaning of applicable securities laws. For a
full disclosure of the forward-looking information and statements
and the risks to which they are subject, see the “Cautionary
Statement Regarding Forward-Looking Information and Statements”
later in this news release. This news release contains references
to certain Financial Measures and Ratios, including Adjusted EBITDA
(earnings before income taxes, loss (gain) on investments and other
assets, gain on repurchase of unsecured senior notes, finance
charges, foreign exchange, gain on asset disposals and depreciation
and amortization), Funds Provided by (Used in) Operations, Net
Capital Spending and Working Capital. These terms do not have
standardized meanings prescribed under International Financial
Reporting Standards (
IFRS) and may not be
comparable to similar measures used by other companies, see
“Financial Measures and Ratios” later in this news release.
Precision Drilling announces 2023 second quarter
financial results:
- Revenue was $426 million compared
with $326 million in the second quarter of 2022 as our drilling
rigs continued to reprice at higher day rates, increasing 25% in
Canada and 39% in the U.S. year over year.
- Achieved second quarter Adjusted
EBITDA(1) of $142 million, significantly surpassing the $64 million
reported in 2022. Adjusted EBITDA included idle but contracted rig
revenue of US$5 million and share-based compensation of $3 million,
compared with US$1 million and $5 million, respectively, in
2022.
- Net earnings were $27 million or
$1.97 per share compared to a net loss of $25 million of $1.81 per
share in 2022.
- We continued to deliver High
Performance, High Value service, expanding daily operating
margins(2), maintaining strict cost control and scaling our
Alpha™ digital technologies and EverGreen™ suite of
environmental solutions across our Super Triple rig fleet, growing
revenue from these offerings by over 60% from the second quarter of
2022.
- Revenue per utilization day
increased to $33,535 in Canada and US$35,576 in the U.S., while
daily operating margins were $12,203 in Canada and US$16,613 in the
U.S.
- We strengthened our contract book,
signing take-or-pay term contracts with several new customers
including large U.S. independents and major oil and gas companies
and increasing fourth quarter rigs under take-or-pay term contracts
in the U.S. from 18 to 27 and in Canada from 15 to 25.
- Averaged 42 active rigs in Canada,
an increase of 12% over the second quarter of 2022, and 51 rigs in
the U.S., representing an 8% decline from the second quarter of
2022.
- Generated $213 million of cash from
operations, repaid $178 million of debt, including all amounts
drawn on our Senior Credit Facility and repurchased US$30 million
of 2026 unsecured senior notes. Additionally, we returned $8
million to shareholders through share repurchases under our Normal
Course Issuer Bid (NCIB).
- As at June 30, 2023, we have
reduced total debt by $100 million since the beginning of the year
and remain on track to meet our 2023 debt reduction target of at
least $150 million. We remain committed to achieving a normalized
Net Debt to Adjusted EBITDA(1) ratio of less than 1.0 times by the
end of 2025.
- Ended the quarter with $23 million
of cash and more than $575 million of available liquidity.
- Completion and Production Services
generated revenue of $46 million and Adjusted EBITDA of $8 million,
representing increases of 40% and 55%, respectively, from the
second quarter of 2022.
- Internationally, we have six rigs
currently active in the Middle East, increasing to eight in the
third quarter. These eight contracts are expected to generate
stable predictable cash flow that will stretch into 2028.(1) See
“FINANCIAL MEASURES AND RATIOS.”(2) Revenue per utilization day
less operating costs per utilization day.
Precision’s President and CEO, Kevin Neveu, stated:
“We are pleased with our second quarter
financial results, with revenue and Adjusted EBITDA of $426 million
and $142 million, respectively, and generating $1.97 of net
earnings on a per share basis. As a result of Precision’s strong
operating cash flows combined with focused spending controls and
efficient cash management, we delivered outstanding funds from
operations. We have reduced our total debt by $100 million since
the beginning of the year and are well on our way to achieving our
2023 debt reduction target while continuing to allocate capital to
shareholders through share repurchases.
“Our Canadian business continues to improve with
healthy spring break-up activity due to increasing year-round pad
drilling in the Montney and Clearwater formations. With imminent
additions to hydrocarbon pipeline takeaway capacity, the outlook is
certainly encouraging. Our Canadian fleet is in high demand with 58
rigs running, including all of our Super Triples and pad capable
Super Singles. We expect customer demand for our Super Triple and
Super Single pad capable fleets will continue to exceed supply well
into 2024.
“In the U.S. we currently have 43 active rigs
and two rigs on paid standby. Firm oil prices are supporting an
improved customer outlook as demand for our Super Triple rigs is
increasing and demonstrated by securing contracts for several rig
reactivations later this quarter and into 2024. We believe
long-term natural gas fundamentals are robust, despite short-term
uncertainty experienced this year, as several Gulf Coast LNG export
trains are due to come on stream in late 2024 and 2025.
“In the Middle East, we currently have six rigs
running and expect to have eight rigs active before the end of the
third quarter. With two new rig activations this year, our
international operations are expected to provide incremental,
stable, and predictable cash flow in 2024.
“Our High Performance, High Value services and
our Super Series fleet, coupled with our Alpha™ digital
technologies and EverGreen™ suite of environmental solutions,
continue to underpin Precision’s earnings power. While our industry
is susceptible to commodity price volatility, short-term industry
cyclicality does not distract us from our business model or annual
priorities. This includes our cash flow and debt reduction targets,
which we have consistently met or exceeded, independent of the
business cycle, and will continue to do so.
“I am confident that by remaining focused on our
strategic priorities and what we can control, Precision will
deliver increased shareholder value,” concluded Mr. Neveu.
SELECT FINANCIAL AND OPERATING
INFORMATION
Financial Highlights
|
For the three months ended June 30, |
|
|
For the six months ended June 30, |
|
(Stated
in thousands of Canadian dollars, except per share amounts) |
|
2023 |
|
|
|
2022 |
|
|
% Change |
|
|
|
2023 |
|
|
|
2022 |
|
|
% Change |
|
Revenue |
|
425,622 |
|
|
|
326,016 |
|
|
|
30.6 |
|
|
|
984,229 |
|
|
|
677,355 |
|
|
|
45.3 |
|
Adjusted EBITDA(1) |
|
142,093 |
|
|
|
64,099 |
|
|
|
121.7 |
|
|
|
345,312 |
|
|
|
100,954 |
|
|
|
242.0 |
|
Net earnings (loss) |
|
26,900 |
|
|
|
(24,611 |
) |
|
|
(209.3 |
) |
|
|
122,730 |
|
|
|
(68,455 |
) |
|
|
(279.3 |
) |
Cash provided by (used in)
operations |
|
213,460 |
|
|
|
135,174 |
|
|
|
57.9 |
|
|
|
241,816 |
|
|
|
69,880 |
|
|
|
246.0 |
|
Funds provided by
operations(1) |
|
136,959 |
|
|
|
60,373 |
|
|
|
126.9 |
|
|
|
296,612 |
|
|
|
90,328 |
|
|
|
228.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash used in investing
activities |
|
44,062 |
|
|
|
36,782 |
|
|
|
19.8 |
|
|
|
122,879 |
|
|
|
67,125 |
|
|
|
83.1 |
|
Capital spending by spend
category(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expansion and upgrade |
|
9,615 |
|
|
|
15,530 |
|
|
|
(38.1 |
) |
|
|
25,960 |
|
|
|
25,145 |
|
|
|
3.2 |
|
Maintenance and infrastructure |
|
35,099 |
|
|
|
23,906 |
|
|
|
46.8 |
|
|
|
69,549 |
|
|
|
50,693 |
|
|
|
37.2 |
|
Proceeds on sale |
|
(6,261 |
) |
|
|
(6,849 |
) |
|
|
(8.6 |
) |
|
|
(14,026 |
) |
|
|
(9,696 |
) |
|
|
44.7 |
|
Net capital spending(1) |
|
38,453 |
|
|
|
32,587 |
|
|
|
18.0 |
|
|
|
81,483 |
|
|
|
66,142 |
|
|
|
23.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) per
share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
1.97 |
|
|
|
(1.81 |
) |
|
|
(208.8 |
) |
|
|
8.98 |
|
|
|
(5.06 |
) |
|
|
(277.5 |
) |
Diluted |
|
1.63 |
|
|
|
(1.81 |
) |
|
|
(190.1 |
) |
|
|
7.22 |
|
|
|
(5.06 |
) |
|
|
(242.7 |
) |
(1) See “FINANCIAL MEASURES AND RATIOS.”
Operating Highlights
|
For the three months ended June 30, |
|
|
For the six months ended June 30, |
|
|
2023 |
|
|
2022 |
|
|
% Change |
|
|
2023 |
|
|
2022 |
|
|
% Change |
|
Contract drilling rig fleet |
|
225 |
|
|
|
226 |
|
|
|
(0.4 |
) |
|
|
225 |
|
|
|
226 |
|
|
|
(0.4 |
) |
Drilling rig utilization
days: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. |
|
4,626 |
|
|
|
5,037 |
|
|
|
(8.2 |
) |
|
|
10,008 |
|
|
|
9,627 |
|
|
|
4.0 |
|
Canada |
|
3,795 |
|
|
|
3,376 |
|
|
|
12.4 |
|
|
|
9,963 |
|
|
|
9,029 |
|
|
|
10.3 |
|
International |
|
452 |
|
|
|
546 |
|
|
|
(17.2 |
) |
|
|
885 |
|
|
|
1,086 |
|
|
|
(18.5 |
) |
Revenue per utilization
day: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. (US$) |
|
35,576 |
|
|
|
25,547 |
|
|
|
39.3 |
|
|
|
35,247 |
|
|
|
24,951 |
|
|
|
41.3 |
|
Canada (Cdn$) |
|
33,535 |
|
|
|
26,746 |
|
|
|
25.4 |
|
|
|
32,773 |
|
|
|
25,192 |
|
|
|
30.1 |
|
International (US$) |
|
50,551 |
|
|
|
54,612 |
|
|
|
(7.4 |
) |
|
|
51,139 |
|
|
|
52,436 |
|
|
|
(2.5 |
) |
Operating costs per
utilization day: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. (US$) |
|
18,963 |
|
|
|
18,864 |
|
|
|
0.5 |
|
|
|
19,667 |
|
|
|
18,628 |
|
|
|
5.6 |
|
Canada (Cdn$) |
|
21,332 |
|
|
|
19,010 |
|
|
|
12.2 |
|
|
|
19,731 |
|
|
|
16,749 |
|
|
|
17.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service rig fleet |
|
119 |
|
|
|
93 |
|
|
|
28.0 |
|
|
|
119 |
|
|
|
93 |
|
|
|
28.0 |
|
Service
rig operating hours |
|
39,709 |
|
|
|
30,389 |
|
|
|
30.7 |
|
|
|
98,050 |
|
|
|
68,654 |
|
|
|
42.8 |
|
Financial Position
(Stated in thousands of Canadian dollars, except ratios) |
June 30, 2023 |
|
|
December 31, 2022 |
|
Working capital(1) |
|
134,839 |
|
|
|
60,641 |
|
Cash |
|
22,919 |
|
|
|
21,587 |
|
Long-term debt |
|
964,103 |
|
|
|
1,085,970 |
|
Total long-term financial
liabilities |
|
1,042,188 |
|
|
|
1,206,619 |
|
Total assets |
|
2,732,694 |
|
|
|
2,876,123 |
|
Long-term debt to long-term debt plus equity ratio (1) |
|
0.42 |
|
|
|
0.47 |
|
(1) See “FINANCIAL MEASURES AND RATIOS.”
Summary for the three months ended June 30,
2023:
- Revenue of $426 million was 31%
higher than 2022 due to the further strengthening of North American
drilling and service revenue rates, partially offset by lower U.S.
and international activity. Drilling rig utilization days increased
12% in Canada, while U.S. and international activity decreased by
8% and 17%, respectively. Our service rig operating hours increased
31% to 39,709 hours as compared with 2022.
- Adjusted EBITDA was $142 million,
$78 million higher than 2022 due to increased North America revenue
rates, continued strict cost control and lower share-based
compensation. Share-based compensation was $3 million as compared
with $5 million in 2022. Please refer to “Other Items” later in
this news release for additional information on share-based
compensation charges.
- Adjusted EBITDA as a percentage of
revenue was 33% as compared with 20% in 2022.
- Our U.S. revenue per utilization
day was US$35,576 compared with US$25,547 in 2022. The increase was
primarily the result of higher fleet average day rates and higher
idle but contracted rig revenue, offset by lower turnkey activity.
We recognized revenue from idle but contracted rigs and turnkey
projects of US$5 million and nil, respectively as compared with
US$1 million and US$9 million in 2022. Revenue per utilization day,
excluding the impact of idle but contracted rigs and turnkey
projects was US$34,396, compared to US$23,590 in 2022, an increase
of US$10,806 or 46%. Revenue per utilization day, excluding idle
but contracted rigs and turnkey revenue, increased US$796 from the
first quarter of 2023.
- Our U.S. operating costs per
utilization day increased slightly to US$18,963 compared with
US$18,864 in 2022. The increase was primarily due to higher rig
operating costs offset by lower turnkey costs. Operating costs per
utilization day, excluding turnkey activity, were US$18,941
compared with US$16,517 in 2022. Sequentially, excluding the impact
of turnkey activity, operating costs per utilization day decreased
US$458.
- In Canada, revenue per utilization
day was $33,535 compared with $26,746 in 2022. The increase was a
result of higher average day rates and customer cost recoveries.
Sequentially, revenue per utilization day increased $1,231 due to
rig mix.
- Our Canadian operating costs per
utilization day increased to $21,332, compared with $19,010 in
2022, due to higher field wages and costs that were recovered from
our customers. Sequentially, our daily operating costs increased
$2,586 due to higher repairs and maintenance costs spread over
fewer activity days and rig mix.
- Completion and Production Services
revenue and Adjusted EBITDA were $46 million and $8 million,
respectively, compared with $33 million and $5 million in
2022.
- We realized US$23 million of
international contract drilling revenue compared with US$30 million
in 2022.
- General and administrative expenses
were $23 million as compared with $21 million in 2022. The increase
was primarily due to higher labour-related costs and the impact of
the weakening Canadian dollar on our translated U.S.
dollar-denominated costs.
- Net finance charges were $21
million, consistent with 2022.
- Cash provided by operations was
$213 million compared with $135 million in 2022. We generated $137
million of funds provided by operations compared with $60 million
in 2022. Our increased day rates, revenue efficiency and
operational leverage contributed to higher cash generation in the
current quarter.
- Capital expenditures were $45
million compared with $39 million in 2022. Capital spending by
spend category (see “FINANCIAL MEASURES AND RATIOS”) included $10
million for expansion and upgrades and $35 million for the
maintenance of existing assets, infrastructure, and intangible
assets.
- Repaid $178 million of debt,
including all amounts drawn on our Senior Credit Facility and
repurchased US$30 million of 2026 unsecured senior notes.
Additionally, we returned $8 million to shareholders through share
repurchases under our NCIB.
- We ended the quarter with $23
million of cash and more than $575 million of available
liquidity.
- Subsequent to June 30, 2023, we
completed our $5 million equity investment in CleanDesign Income
Corp. (CleanDesign). CleanDesign is a key supplier
of Precision’s EverGreen™ Battery Energy Storage Systems
(BESS) and this investment provides access to key
BESS and power management technologies.
Summary for the six months ended June 30,
2023:
- Revenue for the first six months of
2023 was $984 million, an increase of 45% from 2022.
- Adjusted EBITDA for the period was
$345 million as compared with $101 million in 2022. Our higher
Adjusted EBITDA was attributable to increased North American
drilling and service activity, strengthening of day rates and lower
share-based compensation charges.
- General and administrative costs
were $39 million, a decrease of $38 million from 2022 primarily due
to lower share-based compensation charges, partially offset by
higher labour related costs and the impact of the weakening
Canadian dollar on our translated U.S. dollar-denominated
costs.
- Net finance charges were $44
million, an increase of $3 million from 2022 due to the impact of
the weakening of the Canadian dollar on our U.S. dollar-denominated
interest expense.
- Cash provided by operations was
$242 million as compared with $70 million in 2022. Funds provided
by operations in 2023 were $297 million, an increase of $206
million from the comparative period.
- Capital expenditures were $96
million in 2023, an increase of $20 million from 2022. Capital
spending by spend category included $26 million for expansion and
upgrades and $70 million for the maintenance of existing assets,
infrastructure, and intangible assets.
- Year-to-date, we have reduced our
total debt by $100 million through the full repayment of our Senior
Credit Facility and the repurchase of US$30 million of our 2026
unsecured senior notes. In addition, we repurchased and canceled
193,616 common shares for $13 million under our NCIB.
STRATEGY
Precision’s vision is to be globally recognized
as the High Performance, High Value provider of land drilling
services. We work toward this vision by defining and measuring our
results against strategic priorities that we establish at the
beginning of every year.
Precision’s 2023 strategic priorities and the
progress made during the second quarter are as follows:
- Deliver High Performance, High Value service through
operational excellence.
- Grew our average active rig count
by 12% in Canada as compared with the same period last year.
- Increased service rig operating
hours 31% over the second quarter of 2022. With the successful
integration of High Arctic Inc.’s well servicing business,
Precision is now the leading provider of high-quality and reliable
services in Canada.
- Reinvested $45 million into our
equipment and infrastructure, bringing our year-to-date investment
to $96 million as we progress toward our total expected 2023
investment of $195 million.
- Maximize free cash flow by
increasing Adjusted EBITDA margins, revenue efficiency, and growing
revenue from Alpha™ technologies and EverGreen™ suite of
environmental solutions.
- Realized second quarter daily operating margins of $12,203 in
Canada and US$16,613 in the U.S., representing increases of 58% and
149%, respectively, compared with 2022.
- Grew combined Alpha™ technologies and
EverGreen™ suite of environmental solutions second quarter
revenue by over 60% compared with 2022.
- Ended the quarter with 73 of our AC Super Triple rigs equipped
with Alpha™ technologies, representing a 38% increase over the
same quarter last year.
- Continued to scale our EverGreen™ suite of environmental
solutions, adding one EverGreen™ BESS, two
EverGreen™ Integrated Power and Emissions Monitoring Systems
and 14 high mast LED lighting systems to our fleet during the
quarter.
- Reduce debt by at least
$150 million and allocate 10% to 20% of free cash flow before debt
repayments for share repurchases. Long-term debt reduction target
of $500 million between 2022 and 2025 and sustained Net Debt to
Adjusted EBITDA ratio of below 1.0 times by the end of
2025.
- Generated significant second quarter cash from operations of
$213 million which allowed us to reduce debt by $178 million during
the quarter, including the full repayment of our Senior Credit
Facility and the repurchase of US$30 million of 2026 unsecured
senior notes.
- Returned $8 million of capital to shareholders by repurchasing
and cancelling 126,543 common shares. For the first six months of
the year, we have allocated $13 million of free cash flow to share
repurchases.
- For the first six months of the year, we have reduced total
debt by $100 million. We remain committed to reducing debt by at
least $150 million in 2023 and expect to reach a Net Debt to
Adjusted EBITDA ratio of between 1.25 and 1.50 times by year
end.
OUTLOOK
Energy industry fundamentals continue to support
drilling activity for oil and natural gas despite broad economic
concerns and geopolitical instability. Oil prices are supported by
demand growth reemerging in China, while OPEC cutting production
quotas and years of under investment and capital discipline by
producers have limited supply growth. We therefore expect drilling
activity to improve in the second half of the year as customers
seek to generate appropriate investment returns, maintain
production levels and replenish inventories. Natural gas has
demonstrated short-term price weaknesses, however, this
lower-carbon energy source is becoming increasingly favorable as
countries around the world stress the importance of sustainability,
decarbonization and energy security. With demand for Liquified
Natural Gas (LNG) exports growing and the next
wave of North America LNG projects expected to begin coming online
in 2025 (including LNG Canada), we anticipate a sustained period of
elevated natural gas drilling activity in both the U.S. and
Canada.
In Canada, Precision’s activity is expected to
continue to surpass 2022 levels, supported by imminent hydrocarbon
export capacity increases with the Trans Mountain oil pipeline and
the Coastal GasLink pipeline, each expected to begin operations in
early 2024. Northwestern Alberta and northeastern British Columbia
natural gas developments are prime beneficiaries of the LNG Canada
project and the January 2023 agreement between the British Columbia
government and the Blueberry River First Nation has facilitated a
significant increase in 2023 drilling license approvals, which
should lead to more drilling activity in the region. Large pad
drilling programs are ideally suited for Super Triple drilling
rigs, resulting in strong customer interest for these rigs for the
next several years. Our Super Triple fleet is currently fully
utilized and we expect customer demand to continue to exceed
supply, driving higher daily operating margins and longer-term
take-or-pay contracts.
On the heavy oil side, we expect activity levels
to remain strong as Canadian producers are benefitting from a
favorable U.S. exchange rate and a significantly reduced heavy oil
differential. Precision’s Super Single rigs are well suited for
long-term conventional heavy oil development in the oil sands and
Clearwater formation. Looking at the second half of the year, we
expect our Super Single pad capable rigs to be fully utilized,
driving higher day rates.
In the U.S., drilling activity had been
increasing since mid-2020 but began to weaken in early 2023 due to
lower natural gas prices and uncertain oil prices. For the first
six months of the year, the Baker Hughes’ U.S. land rig count
declined 14%. If oil prices remain stable around today’s level, we
expect demand to improve in the second half of the year as
customers modestly increase rig counts to maintain production. Over
the past few months, we have signed a number of contracts for rig
reactivations later this year and into 2024.
Our Alpha™ technologies and
EverGreen™ suite of environmental solutions continue to gain
momentum and have become key competitive differentiators for our
rigs as these offerings deliver exceptional value to our customers
by reducing risks, well construction costs and carbon footprint. We
currently have 10 EverGreen™ BESS deployed in the field and
have commitments for three additional deployments in the second
half of the year. Precision’s EverGreen™ BESS has proven to be
an economically viable emissions reduction solution for our
customers and we anticipate continued demand for additional
deployments through the remainder of the year. In April, we
expanded our partnership with CleanDesign, a key supplier of
EverGreen™ BESS, through a $5 million equity investment
commitment. This partnership will ensure we can meet the expected
demand for BESS and is aligned with our overall emissions reduction
strategy.
Internationally, we currently have six rigs
working on term contracts, three in Kuwait and three in the Kingdom
of Saudi Arabia, increasing to eight before the end of the third
quarter. These eight rig contracts provide stable and predictable
cash flow and represent over $700 million in backlog revenue that
stretches into 2028. We continue to bid our remaining idle rigs
within the region and remain optimistic about our ability to
secure rig reactivations.
With the successful acquisition of High Arctic’s
well servicing business in July 2022, Precision is now the leading
provider of high-quality and reliable well services in Canada and
the outlook for this business is positive. Customer demand for
maintenance and completion activity is expected to exceed staffed
service rigs available, supporting healthy activity and strong
pricing into the foreseeable future.
Contracts
The following chart outlines the average number
of drilling rigs under term contract by quarter as at July 26,
2023. For those quarters ending after June 30, 2023, this chart
represents the minimum number of term contracts from which we will
earn revenue. We expect the actual number of contracted rigs to
vary in future periods as we sign additional term contracts.
|
|
Average for the quarter ended 2022 |
|
|
Average for the quarter ended 2023 |
|
|
|
Mar. 31 |
|
June 30 |
|
Sept. 30 |
|
Dec. 31 |
|
|
Mar. 31 |
|
June 30 |
|
Sept. 30 |
|
Dec. 31 |
|
Average rigs under term
contract as of July 26, 2023: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. |
|
|
27 |
|
|
29 |
|
|
31 |
|
|
35 |
|
|
|
40 |
|
|
37 |
|
|
31 |
|
|
27 |
|
Canada |
|
|
6 |
|
|
8 |
|
|
10 |
|
|
16 |
|
|
|
19 |
|
|
23 |
|
|
29 |
|
|
25 |
|
International |
|
|
6 |
|
|
6 |
|
|
6 |
|
|
6 |
|
|
|
4 |
|
|
5 |
|
|
7 |
|
|
8 |
|
Total |
|
|
39 |
|
|
43 |
|
|
47 |
|
|
57 |
|
|
|
63 |
|
|
65 |
|
|
67 |
|
|
60 |
|
The following chart outlines the average number
of drilling rigs that we had under term contract for 2022 and the
average number of rigs we have under term contract as at July 26,
2023.
|
|
Average for the year ended |
|
|
|
2022 |
|
2023 |
|
Average rigs under term
contract as of July 26, 2023: |
|
|
|
|
|
U.S. |
|
|
31 |
|
|
34 |
|
Canada |
|
|
10 |
|
|
24 |
|
International |
|
|
6 |
|
|
6 |
|
Total |
|
|
47 |
|
|
64 |
|
In Canada, term contracted rigs normally
generate 250 utilization days per year because of the seasonal
nature of well site access. In most regions in the U.S. and
internationally, term contracts normally generate 365 utilization
days per year. Internationally, we expect to have eight rigs under
long-term contract beginning in the second half of 2023.
Drilling Activity
The following chart outlines the average number
of drilling rigs that we had working or moving by quarter for the
periods noted.
|
Average for the quarter ended 2022 |
|
Average for the quarter ended 2023 |
|
|
Mar. 31 |
|
|
June 30 |
|
|
Sept. 30 |
|
|
Dec. 31 |
|
|
Mar. 31 |
|
|
June 30 |
|
Average Precision active rig
count: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. |
|
51 |
|
|
|
55 |
|
|
|
57 |
|
|
|
60 |
|
|
|
60 |
|
|
|
51 |
|
Canada |
|
63 |
|
|
|
37 |
|
|
|
59 |
|
|
|
66 |
|
|
|
69 |
|
|
|
42 |
|
International |
|
6 |
|
|
|
6 |
|
|
|
6 |
|
|
|
6 |
|
|
|
5 |
|
|
|
5 |
|
Total |
|
120 |
|
|
|
98 |
|
|
|
122 |
|
|
|
132 |
|
|
|
134 |
|
|
|
98 |
|
According to industry sources, as at July 26,
2023, the U.S. active land drilling rig count has decreased 12%
from the same point last year while the Canadian active land
drilling rig count has increased 4%. To date in 2023, approximately
79% of the U.S. industry’s active rigs and 59% of the Canadian
industry’s active rigs were drilling for oil targets, compared with
79% for the U.S. and 60% for Canada at the same time last year.
Capital Spending and Free Cash Flow
Allocation
We remain committed to disciplined cash flow
management, capital spending and returning capital to shareholders.
Capital spending in 2023 is expected to be $195 million and by
spend category includes $145 million for sustaining, infrastructure
and intangibles and $50 million for expansion and upgrades. We
expect that the $195 million will be split as follows: $181 million
in the Contract Drilling Services segment, $11 million in the
Completion and Production Services segment, and $3 million in the
Corporate segment. Capital spending could increase this year with
stronger demand for our services and customer contracted rig
upgrades. As at June 30, 2023, Precision had capital commitments of
approximately $201 million with payments expected through 2025.
SEGMENTED FINANCIAL RESULTS
Precision’s operations are reported in two
segments: Contract Drilling Services, which includes our drilling
rig, oilfield supply and manufacturing divisions; and Completion
and Production Services, which includes our service rig, rental and
camp and catering divisions.
|
For the three months ended June 30, |
|
|
For the six months ended June 30, |
|
(Stated
in thousands of Canadian dollars) |
|
2023 |
|
|
2022 |
|
|
% Change |
|
|
|
2023 |
|
|
2022 |
|
|
% Change |
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract Drilling Services |
|
380,958 |
|
|
|
294,299 |
|
|
|
29.4 |
|
|
|
867,034 |
|
|
|
608,444 |
|
|
|
42.5 |
|
Completion and Production Services |
|
46,161 |
|
|
|
33,041 |
|
|
|
39.7 |
|
|
|
120,684 |
|
|
|
71,279 |
|
|
|
69.3 |
|
Inter-segment eliminations |
|
(1,497 |
) |
|
|
(1,324 |
) |
|
|
13.1 |
|
|
|
(3,489 |
) |
|
|
(2,368 |
) |
|
|
47.3 |
|
|
|
425,622 |
|
|
|
326,016 |
|
|
|
30.6 |
|
|
|
984,229 |
|
|
|
677,355 |
|
|
|
45.3 |
|
Adjusted EBITDA:(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract Drilling Services |
|
147,478 |
|
|
|
70,429 |
|
|
|
109.4 |
|
|
|
336,601 |
|
|
|
141,603 |
|
|
|
137.7 |
|
Completion and Production Services |
|
7,507 |
|
|
|
4,839 |
|
|
|
55.1 |
|
|
|
24,913 |
|
|
|
11,378 |
|
|
|
119.0 |
|
Corporate and Other |
|
(12,892 |
) |
|
|
(11,169 |
) |
|
|
15.4 |
|
|
|
(16,202 |
) |
|
|
(52,027 |
) |
|
|
(68.9 |
) |
|
|
142,093 |
|
|
|
64,099 |
|
|
|
121.7 |
|
|
|
345,312 |
|
|
|
100,954 |
|
|
|
242.0 |
|
(1) See “FINANCIAL MEASURES AND RATIOS.”
SEGMENT REVIEW OF CONTRACT DRILLING
SERVICES
|
For the three months ended June 30, |
|
|
For the six months ended June 30, |
|
(Stated
in thousands of Canadian dollars, except where noted) |
|
2023 |
|
|
|
2022 |
|
|
% Change |
|
|
|
2023 |
|
|
|
2022 |
|
|
% Change |
|
Revenue |
|
380,958 |
|
|
|
294,299 |
|
|
|
29.4 |
|
|
|
867,034 |
|
|
|
608,444 |
|
|
|
42.5 |
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating |
|
224,746 |
|
|
|
215,676 |
|
|
|
4.2 |
|
|
|
511,813 |
|
|
|
445,727 |
|
|
|
14.8 |
|
General and administrative |
|
8,734 |
|
|
|
8,194 |
|
|
|
6.6 |
|
|
|
18,620 |
|
|
|
21,114 |
|
|
|
(11.8 |
) |
Adjusted EBITDA(1) |
|
147,478 |
|
|
|
70,429 |
|
|
|
109.4 |
|
|
|
336,601 |
|
|
|
141,603 |
|
|
|
137.7 |
|
Adjusted EBITDA as a percentage of revenue(1) |
|
38.7 |
% |
|
|
23.9 |
% |
|
|
|
|
|
38.8 |
% |
|
|
23.3 |
% |
|
|
|
(1) See “FINANCIAL MEASURES AND RATIOS.”
United
States onshore drilling statistics:(1) |
2023 |
|
|
2022 |
|
|
Precision |
|
|
Industry(2) |
|
|
Precision |
|
|
Industry(2) |
|
Average number of active land
rigs for quarters ended: |
|
|
|
|
|
|
|
|
|
|
|
March 31 |
|
60 |
|
|
|
744 |
|
|
|
51 |
|
|
|
603 |
|
June 30 |
|
51 |
|
|
|
700 |
|
|
|
55 |
|
|
|
687 |
|
Year to date average |
|
55 |
|
|
|
722 |
|
|
|
53 |
|
|
|
645 |
|
(1) United States lower 48 operations only.(2) Baker Hughes rig
counts.
Canadian onshore drilling statistics:(1) |
2023 |
|
|
2022 |
|
|
Precision |
|
|
Industry(2) |
|
|
Precision |
|
|
Industry(2) |
|
Average number of active land
rigs for quarters ended: |
|
|
|
|
|
|
|
|
|
|
|
March 31 |
|
69 |
|
|
|
221 |
|
|
|
63 |
|
|
|
205 |
|
June 30 |
|
42 |
|
|
|
117 |
|
|
|
37 |
|
|
|
113 |
|
Year to date average |
|
55 |
|
|
|
169 |
|
|
|
50 |
|
|
|
159 |
|
(1) Canadian operations only.(2) Baker Hughes rig counts.
SEGMENT REVIEW OF COMPLETION AND
PRODUCTION SERVICES
|
For the three months ended June 30, |
|
|
For the six months ended June 30, |
|
(Stated
in thousands of Canadian dollars, except where noted) |
|
2023 |
|
|
|
2022 |
|
|
% Change |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
Revenue |
|
46,161 |
|
|
|
33,041 |
|
|
|
39.7 |
|
|
|
120,684 |
|
|
|
71,279 |
|
|
|
69.3 |
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating |
|
36,921 |
|
|
|
26,200 |
|
|
|
40.9 |
|
|
|
91,713 |
|
|
|
56,167 |
|
|
|
63.3 |
|
General and administrative |
|
1,733 |
|
|
|
2,002 |
|
|
|
(13.4 |
) |
|
|
4,058 |
|
|
|
3,734 |
|
|
|
8.7 |
|
Adjusted EBITDA(1) |
|
7,507 |
|
|
|
4,839 |
|
|
|
55.1 |
|
|
|
24,913 |
|
|
|
11,378 |
|
|
|
119.0 |
|
Adjusted EBITDA as a percentage of revenue(1) |
|
16.3 |
% |
|
|
14.6 |
% |
|
|
|
|
|
20.6 |
% |
|
|
16.0 |
% |
|
|
|
Well servicing
statistics: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of service rigs (end of period) |
|
119 |
|
|
|
93 |
|
|
|
28.0 |
|
|
|
119 |
|
|
|
93 |
|
|
|
28.0 |
|
Service rig operating hours |
|
39,709 |
|
|
|
30,389 |
|
|
|
30.7 |
|
|
|
98,050 |
|
|
|
68,654 |
|
|
|
42.8 |
|
Service rig operating hour utilization |
|
37 |
% |
|
|
36 |
% |
|
|
|
|
|
46 |
% |
|
|
41 |
% |
|
|
|
(1) See “FINANCIAL MEASURES AND RATIOS.”
SEGMENT REVIEW OF CORPORATE AND
OTHER
Our Corporate and Other segment provides support
functions to our operating segments. The Corporate and Other
segment had negative Adjusted EBITDA of $13 million as compared
with $11 million in 2022. Our lower current quarter Adjusted EBITDA
was impacted by higher translated U.S. dollar-denominated costs,
partially offset by lower share-based compensation charges.
OTHER ITEMS
Share-based Incentive Compensation
Plans
We have several cash and equity-settled
share-based incentive plans for non-management directors, officers,
and other eligible employees. Our accounting policies for each
share-based incentive plan can be found in our 2022 Annual
Report.
A summary of expense amounts under these plans
during the reporting periods are as follows:
|
For the three months ended June 30, |
|
|
For the six months ended June 30, |
|
(Stated
in thousands of Canadian dollars) |
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Cash settled share-based incentive plans |
|
2,081 |
|
|
|
5,048 |
|
|
|
(10,014 |
) |
|
|
52,259 |
|
Equity settled share-based
incentive plans |
|
653 |
|
|
|
— |
|
|
|
1,133 |
|
|
|
427 |
|
Total share-based incentive compensation plan expense
(recovery) |
|
2,734 |
|
|
|
5,048 |
|
|
|
(8,881 |
) |
|
|
52,686 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Allocated: |
|
|
|
|
|
|
|
|
|
|
|
Operating |
|
923 |
|
|
|
1,852 |
|
|
|
(960 |
) |
|
|
12,772 |
|
General and Administrative |
|
1,811 |
|
|
|
3,196 |
|
|
|
(7,921 |
) |
|
|
39,914 |
|
|
|
2,734 |
|
|
|
5,048 |
|
|
|
(8,881 |
) |
|
|
52,686 |
|
Cash settled share-based compensation expense
for the quarter was $2 million as compared with $5 million in 2022.
The lower expense in 2023 was primarily due to the continued
vesting fewer outstanding cash-settled units, partially offset by
our better share price performance as compared with 2022.
During the first quarter of 2023, we issued
Executive Restricted Share Units (Executive RSUs)
to certain senior executives. Accordingly, our equity-settled
share-based compensation expense for the quarter was $1 million as
compared with nil in 2022.
As at June 30, 2023, the majority of our
share-based compensation plans were classified as cash-settled and
will be impacted by changes in our share price. Although accounted
for as cash-settled, Precision retains the ability to settle
certain vested units in common shares at its discretion.
Finance Charges
Finance charges were $21 million, consistent
with 2022. Despite our lower balance of long-term debt, our finance
charges were negatively impacted by the weakening of the Canadian
dollar on our U.S. dollar-denominated interest. Interest charges on
our U.S. dollar-denominated long-term debt were US$14 million ($19
million) as compared with US$15 million ($19 million) in 2022.
Income Tax
Income tax expense for the quarter was $19
million as compared with $4 million in 2022. During the second
quarter, we continued to not recognize deferred tax assets on
certain Canadian and international operating losses.
LIQUIDITY AND CAPITAL
RESOURCES
Liquidity
Amount |
|
Availability |
|
Used for |
|
Maturity |
Senior Credit Facility (secured) |
|
|
|
|
|
|
US$447 million (extendible, revolving term credit facility
with US$353 million accordion feature) |
|
Nil drawn and US$56 million in outstanding letters of credit |
|
General corporate purposes |
|
June 18, 2025 |
Real estate credit facilities (secured) |
|
|
|
|
|
|
US$9 million |
|
Fully drawn |
|
General corporate purposes |
|
November 19, 2025 |
$17 million |
|
Fully drawn |
|
General corporate purposes |
|
March 16, 2026 |
Operating facilities (secured) |
|
|
|
|
|
|
$40 million |
|
Undrawn, except $20 million in outstanding letters of
credit |
|
Letters of credit and general corporate purposes |
|
|
US$15 million |
|
Undrawn |
|
Short-term working capital requirements |
|
|
Demand letter of credit facility (secured) |
|
|
|
|
|
|
US$40 million |
|
Undrawn, except US$21 million in outstanding letters of
credit |
|
Letters of credit |
|
|
Unsecured senior notes (unsecured) |
|
|
|
|
|
|
US$318 million – 7.125% |
|
Fully drawn |
|
Debt redemption and repurchases |
|
January 15, 2026 |
US$400 million – 6.875% |
|
Fully drawn |
|
Debt redemption and repurchases |
|
January 15, 2029 |
As at June 30, 2023, we had $979 million
outstanding under our Senior Credit Facility, Real Estate Credit
Facilities and unsecured senior notes as compared with $1,103
million at December 31, 2022. The current blended cash interest
cost of our debt is approximately 7.0%.
During the quarter, we repaid all amounts
borrowed under our Senior Credit Facility and repurchased and
cancelled US$30 million principal amount of our 2026 unsecured
senior notes.
During the quarter, S&P Global Ratings
raised our issuer credit rating and rating on our Unsecured Senior
Notes to ‘B+’ from ‘B’. In addition, Moody’s Investor Service
upgraded Precision’s corporate rating to B1 from B2 and unsecured
senior notes rating to B2 from B3.
Senior Credit Facility
Our Senior Credit Facility requires that we
comply with certain covenants including a leverage ratio of
consolidated senior debt to consolidated Covenant EBITDA of less
than 2.5:1. For purposes of calculating the leverage ratio,
consolidated senior debt only includes secured indebtedness. The
Senior Credit Facility limits the redemption and repurchase of
junior debt subject to a pro forma senior net leverage covenant
test of less than or equal to 1.75:1.
During the quarter, we agreed with the lenders
of our Senior Credit Facility to remove certain non-extending
lenders from our facility, thereby reducing the total commitment
from US$500 million to US$447 million.
The Senior Credit Facility matures on June 18,
2025.
Covenants
As at June 30, 2023, we were in compliance with
the covenants of our Senior Credit Facility and Real Estate Credit
Facilities.
|
Covenant |
|
At June 30, 2023 |
|
Senior Credit
Facility |
|
|
|
|
Consolidated senior debt to consolidated covenant EBITDA(1)h |
< 2.50 |
|
|
0.05 |
|
Consolidated covenant EBITDA to consolidated interest expense |
> 2.50 |
|
|
6.30 |
|
Real Estate Credit
Facilities |
|
|
|
|
Consolidated covenant EBITDA to consolidated interest expense |
> 2.50 |
|
|
6.30 |
|
(1) For purposes of calculating the leverage ratio consolidated
senior debt only includes secured indebtedness.
Average shares outstanding
The following tables reconcile net earnings
(loss) and the weighted average shares outstanding used in
computing basic and diluted net earnings (loss) per share:
|
For the three months ended June 30, |
|
|
For the six months ended June 30, |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Net earnings (loss) - basic |
|
26,900 |
|
|
|
(24,611 |
) |
|
|
122,730 |
|
|
|
(68,455 |
) |
Effect
of share options and other equity compensation plans |
|
(2,902 |
) |
|
|
— |
|
|
|
(15,469 |
) |
|
|
— |
|
Net
earnings (loss) - diluted |
|
23,998 |
|
|
|
(24,611 |
) |
|
|
107,261 |
|
|
|
(68,455 |
) |
|
For the three months ended June 30, |
|
|
For the six months ended June 30, |
|
(Stated
in thousands) |
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Weighted average shares outstanding – basic |
|
13,672 |
|
|
|
13,588 |
|
|
|
13,661 |
|
|
|
13,533 |
|
Effect
of share options and other equity compensation plans |
|
1,075 |
|
|
|
— |
|
|
|
1,196 |
|
|
|
— |
|
Weighted average shares outstanding – diluted |
|
14,747 |
|
|
|
13,588 |
|
|
|
14,857 |
|
|
|
13,533 |
|
QUARTERLY FINANCIAL SUMMARY
(Stated in thousands of Canadian dollars, except per share
amounts) |
|
2022 |
|
|
2023 |
|
Quarters ended |
|
September 30 |
|
|
December 31 |
|
|
March 31 |
|
|
June 30 |
|
Revenue |
|
|
429,335 |
|
|
|
510,504 |
|
|
|
558,607 |
|
|
|
425,622 |
|
Adjusted EBITDA(1) |
|
|
119,561 |
|
|
|
91,090 |
|
|
|
203,219 |
|
|
|
142,093 |
|
Net earnings (loss) |
|
|
30,679 |
|
|
|
3,483 |
|
|
|
95,830 |
|
|
|
26,900 |
|
Net earnings (loss) per basic
share |
|
|
2.26 |
|
|
|
0.27 |
|
|
|
7.02 |
|
|
|
1.97 |
|
Net earnings (loss) per
diluted share |
|
|
2.03 |
|
|
|
0.27 |
|
|
|
5.57 |
|
|
|
1.63 |
|
Funds provided by
operations(1) |
|
|
81,327 |
|
|
|
111,339 |
|
|
|
159,653 |
|
|
|
136,959 |
|
Cash
provided by operations |
|
|
8,142 |
|
|
|
159,082 |
|
|
|
28,356 |
|
|
|
213,460 |
|
(Stated in thousands of Canadian dollars, except per share
amounts) |
|
2021 |
|
|
2022 |
|
Quarters ended |
|
September 30 |
|
|
December 31 |
|
|
March 31 |
|
|
June 30 |
|
Revenue |
|
|
253,813 |
|
|
|
295,202 |
|
|
|
351,339 |
|
|
|
326,016 |
|
Adjusted EBITDA(1) |
|
|
45,408 |
|
|
|
63,881 |
|
|
|
36,855 |
|
|
|
64,099 |
|
Net loss |
|
|
(38,032 |
) |
|
|
(27,336 |
) |
|
|
(43,844 |
) |
|
|
(24,611 |
) |
Net loss per basic and diluted
share |
|
|
(2.86 |
) |
|
|
(2.05 |
) |
|
|
(3.25 |
) |
|
|
(1.81 |
) |
Funds provided by
operations(1) |
|
|
33,525 |
|
|
|
62,681 |
|
|
|
29,955 |
|
|
|
60,373 |
|
Cash
provided by (used in) operations |
|
|
21,871 |
|
|
|
59,713 |
|
|
|
(65,294 |
) |
|
|
135,174 |
|
(1) See “FINANCIAL MEASURES AND RATIOS.”
FINANCIAL MEASURES AND RATIOS
Non-GAAP Financial Measures |
We reference certain additional Non-Generally Accepted Accounting
Principles (Non-GAAP) measures that are not
defined terms under IFRS to assess performance because we believe
they provide useful supplemental information to investors. |
Adjusted EBITDA |
We believe Adjusted EBITDA (earnings before income taxes, loss
(gain) on investments and other assets, gain on repurchase of
unsecured senior notes, finance charges, foreign exchange, gain on
asset disposals and depreciation and amortization), as reported in
our Condensed Interim Consolidated Statements of Net Earnings
(Loss) and our reportable operating segment disclosures, is a
useful measure because it gives an indication of the results from
our principal business activities prior to consideration of how our
activities are financed and the impact of foreign exchange,
taxation and depreciation and amortization charges. The most
directly comparable financial measure is net earnings (loss). |
|
For the three months ended June 30, |
|
|
For the six months ended June 30, |
|
(Stated in thousands of Canadian dollars) |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Adjusted EBITDA by
segment: |
|
|
|
|
|
|
|
|
|
|
|
Contract Drilling Services |
|
147,478 |
|
|
|
70,429 |
|
|
|
336,601 |
|
|
|
141,603 |
|
Completion and Production Services |
|
7,507 |
|
|
|
4,839 |
|
|
|
24,913 |
|
|
|
11,378 |
|
Corporate and Other |
|
(12,892 |
) |
|
|
(11,169 |
) |
|
|
(16,202 |
) |
|
|
(52,027 |
) |
Adjusted
EBITDA |
|
142,093 |
|
|
|
64,099 |
|
|
|
345,312 |
|
|
|
100,954 |
|
Depreciation and
amortization |
|
74,088 |
|
|
|
69,757 |
|
|
|
145,631 |
|
|
|
138,214 |
|
Gain on asset disposals |
|
(3,872 |
) |
|
|
(10,800 |
) |
|
|
(13,148 |
) |
|
|
(13,914 |
) |
Foreign exchange |
|
(774 |
) |
|
|
536 |
|
|
|
(1,257 |
) |
|
|
18 |
|
Finance charges |
|
21,408 |
|
|
|
21,043 |
|
|
|
44,328 |
|
|
|
41,773 |
|
Gain on repurchase of
unsecured notes |
|
(100 |
) |
|
|
— |
|
|
|
(100 |
) |
|
|
— |
|
Loss (gain) on investments and
other assets |
|
5,658 |
|
|
|
4,346 |
|
|
|
9,888 |
|
|
|
(1,223 |
) |
Incomes
taxes |
|
18,785 |
|
|
|
3,828 |
|
|
|
37,240 |
|
|
|
4,541 |
|
Net earnings (loss) |
|
26,900 |
|
|
|
(24,611 |
) |
|
|
122,730 |
|
|
|
(68,455 |
) |
Funds Provided by (Used in) Operations |
We believe funds provided by (used in) operations, as reported in
our Condensed Interim Consolidated Statements of Cash Flows, is a
useful measure because it provides an indication of the funds our
principal business activities generate prior to consideration of
working capital changes, which is primarily made up of highly
liquid balances. The most directly comparable financial measure is
cash provided by (used in) operations. |
Net Capital Spending |
We believe net capital spending is a useful measure as it provides
an indication of our primary investment activities. The most
directly comparable financial measure is cash provided by (used in)
investing activities. Net capital spending is calculated as
follows: |
|
|
For the three months ended June 30, |
|
|
For the six months ended June 30, |
|
(Stated in thousands of Canadian dollars) |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Capital spending by spend
category |
|
|
|
|
|
|
|
|
|
|
|
|
Expansion and upgrade |
|
|
9,615 |
|
|
|
15,530 |
|
|
|
25,960 |
|
|
|
25,145 |
|
Maintenance, infrastructure and intangibles |
|
|
35,099 |
|
|
|
23,906 |
|
|
|
69,549 |
|
|
|
50,693 |
|
|
|
|
44,714 |
|
|
|
39,436 |
|
|
|
95,509 |
|
|
|
75,838 |
|
Proceeds on sale of property, plant and equipment |
|
|
(6,261 |
) |
|
|
(6,849 |
) |
|
|
(14,026 |
) |
|
|
(9,696 |
) |
Net capital spending |
|
|
38,453 |
|
|
|
32,587 |
|
|
|
81,483 |
|
|
|
66,142 |
|
Business acquisitions |
|
|
— |
|
|
|
— |
|
|
|
28,000 |
|
|
|
— |
|
Purchase of investments and
other assets |
|
|
2,016 |
|
|
|
536 |
|
|
|
2,071 |
|
|
|
536 |
|
Changes
in non-cash working capital balances |
|
|
3,593 |
|
|
|
3,659 |
|
|
|
11,325 |
|
|
|
447 |
|
Cash
used in investing activities |
|
|
44,062 |
|
|
|
36,782 |
|
|
|
122,879 |
|
|
|
67,125 |
|
Working Capital |
We define working capital as current assets less current
liabilities, as reported in our Condensed Interim Consolidated
Statements of Financial Position. Working capital is calculated as
follows: |
|
June 30, |
|
|
December 31, |
|
(Stated in thousands of Canadian dollars) |
|
2023 |
|
|
|
2022 |
|
Current assets |
|
413,091 |
|
|
|
470,670 |
|
Current
liabilities |
|
278,252 |
|
|
|
410,029 |
|
Working
capital |
|
134,839 |
|
|
|
60,641 |
|
Non-GAAP Ratios |
We reference certain additional Non-GAAP ratios that are not
defined terms under IFRS to assess performance because we believe
they provide useful supplemental information to investors. |
Adjusted EBITDA % of Revenue |
We believe Adjusted EBITDA as a percentage of consolidated revenue,
as reported in our Condensed Interim Consolidated Statements of Net
Loss, provides an indication of our profitability from our
principal business activities prior to consideration of how our
activities are financed and the impact of foreign exchange,
taxation and depreciation and amortization charges. |
Long-term debt to long-term debt plus equity |
We believe that long-term debt (as reported in our Condensed
Interim Consolidated Statements of Financial Position) to long-term
debt plus equity (total shareholders’ equity as reported in our
Condensed Interim Consolidated Statements of Financial Position)
provides an indication of our debt leverage. |
Net Debt to Adjusted EBITDA |
We believe that the Net Debt (long-term debt less cash, as reported
in our Condensed Interim Consolidated Statements of Financial
Position) to Adjusted EBITDA ratio provides an indication of the
number of years it would take for us to repay our debt
obligations. |
Supplementary Financial Measures |
We reference certain supplementary financial measures that are not
defined terms under IFRS to assess performance because we believe
they provide useful supplemental information to investors. |
Capital Spending by Spend Category |
We provide additional disclosure to better depict the nature of our
capital spending. Our capital spending is categorized as expansion
and upgrade, maintenance and infrastructure, or intangibles. |
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING
INFORMATION AND STATEMENTS
Certain statements contained in this release,
including statements that contain words such as "could", "should",
"can", "anticipate", "estimate", "intend", "plan", "expect",
"believe", "will", "may", "continue", "project", "potential" and
similar expressions and statements relating to matters that are not
historical facts constitute "forward-looking information" within
the meaning of applicable Canadian securities legislation and
"forward-looking statements" within the meaning of the "safe
harbor" provisions of the United States Private Securities
Litigation Reform Act of 1995 (collectively, "forward-looking
information and statements").
In particular, forward looking information and
statements include, but are not limited to, the following:
- our strategic priorities for 2023;
- our capital expenditures, free cash flow allocation and debt
reduction plan for 2023;
- anticipated activity levels, demand for our drilling rigs, day
rates and daily operating margins in 2023;
- the average number of term contracts in place for 2023;
- customer adoption of Alpha™ technologies and
EverGreen™ suite of environmental solutions;
- timing and amount of costs savings from acquired well servicing
and rental assets;
- potential commercial opportunities and rig contract renewals;
and
- our future debt reduction plans.
These forward-looking information and statements
are based on certain assumptions and analysis made by Precision in
light of our experience and our perception of historical trends,
current conditions, expected future developments and other factors
we believe are appropriate under the circumstances. These include,
among other things:
- our ability to react to customer spending plans as a result of
changes in oil and natural gas prices;
- the status of current negotiations with our customers and
vendors;
- customer focus on safety performance;
- existing term contracts are neither renewed nor terminated
prematurely;
- our ability to deliver rigs to customers on a timely
basis;
- the impact of an increase/decrease in capital spending;
and
- the general stability of the economic and political
environments in the jurisdictions where we operate.
Undue reliance should not be placed on
forward-looking information and statements. Whether actual results,
performance or achievements will conform to our expectations and
predictions is subject to a number of known and unknown risks and
uncertainties which could cause actual results to differ materially
from our expectations. Such risks and uncertainties include, but
are not limited to:
- volatility in the price and demand
for oil and natural gas;
- fluctuations in the level of oil
and natural gas exploration and development activities;
- fluctuations in the demand for
contract drilling, well servicing and ancillary oilfield
services;
- our customers’ inability to obtain
adequate credit or financing to support their drilling and
production activity;
- the success of vaccinations for
COVID-19 worldwide;
- changes in drilling and well
servicing technology, which could reduce demand for certain rigs or
put us at a competitive advantage;
- shortages, delays and interruptions
in the delivery of equipment supplies and other key inputs;
- liquidity of the capital markets to
fund customer drilling programs;
- availability of cash flow, debt and
equity sources to fund our capital and operating requirements, as
needed;
- the impact of weather and seasonal
conditions on operations and facilities;
- competitive operating risks
inherent in contract drilling, well servicing and ancillary
oilfield services;
- ability to improve our rig
technology to improve drilling efficiency;
- general economic, market or
business conditions;
- the availability of qualified
personnel and management;
- a decline in our safety performance
which could result in lower demand for our services;
- changes in laws or regulations,
including changes in environmental laws and regulations such as
increased regulation of hydraulic fracturing or restrictions on the
burning of fossil fuels and greenhouse gas emissions, which could
have an adverse impact on the demand for oil and natural gas;
- terrorism, social, civil and
political unrest in the foreign jurisdictions where we
operate;
- fluctuations in foreign exchange,
interest rates and tax rates; and
- other unforeseen conditions which
could impact the use of services supplied by Precision and
Precision’s ability to respond to such conditions.
Readers are cautioned that the forgoing list of
risk factors is not exhaustive. Additional information on these and
other factors that could affect our business, operations or
financial results are included in reports on file with applicable
securities regulatory authorities, including but not limited to
Precision’s Annual Information Form for the year ended December 31,
2022, which may be accessed on Precision’s SEDAR profile at
www.sedar.com or under Precision’s EDGAR profile at www.sec.gov.
The forward-looking information and statements contained in this
release are made as of the date hereof and Precision undertakes no
obligation to update publicly or revise any forward-looking
statements or information, whether as a result of new information,
future events or otherwise, except as required by law.
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL
POSITION (UNAUDITED)
(Stated in thousands of Canadian dollars) |
|
June 30, 2023 |
|
|
December 31, 2022 |
|
ASSETS |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash |
|
$ |
22,919 |
|
|
$ |
21,587 |
|
Accounts receivable |
|
|
353,505 |
|
|
|
413,925 |
|
Inventory |
|
|
36,667 |
|
|
|
35,158 |
|
Total current assets |
|
|
413,091 |
|
|
|
470,670 |
|
Non-current assets: |
|
|
|
|
|
|
Income tax recoverable |
|
|
682 |
|
|
|
1,602 |
|
Deferred tax assets |
|
|
454 |
|
|
|
455 |
|
Property, plant and equipment |
|
|
2,224,106 |
|
|
|
2,303,338 |
|
Intangibles |
|
|
18,231 |
|
|
|
19,575 |
|
Right-of-use assets |
|
|
60,496 |
|
|
|
60,032 |
|
Investments and other assets |
|
|
15,634 |
|
|
|
20,451 |
|
Total
non-current assets |
|
|
2,319,603 |
|
|
|
2,405,453 |
|
Total
assets |
|
$ |
2,732,694 |
|
|
$ |
2,876,123 |
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY |
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
Accounts payable and accrued liabilities |
|
$ |
261,504 |
|
|
$ |
392,053 |
|
Income taxes payable |
|
|
1,623 |
|
|
|
2,991 |
|
Current portion of lease obligations |
|
|
12,859 |
|
|
|
12,698 |
|
Current portion of long-term debt |
|
|
2,266 |
|
|
|
2,287 |
|
Total current liabilities |
|
|
278,252 |
|
|
|
410,029 |
|
|
|
|
|
|
|
|
Non-current liabilities: |
|
|
|
|
|
|
Share-based compensation |
|
|
17,483 |
|
|
|
60,133 |
|
Provisions and other |
|
|
7,149 |
|
|
|
7,538 |
|
Lease obligations |
|
|
53,453 |
|
|
|
52,978 |
|
Long-term debt |
|
|
964,103 |
|
|
|
1,085,970 |
|
Deferred tax liabilities |
|
|
63,576 |
|
|
|
28,946 |
|
Total non-current
liabilities |
|
|
1,105,764 |
|
|
|
1,235,565 |
|
Shareholders’ equity: |
|
|
|
|
|
|
Shareholders’ capital |
|
|
2,306,545 |
|
|
|
2,299,533 |
|
Contributed surplus |
|
|
73,688 |
|
|
|
72,555 |
|
Deficit |
|
|
(1,178,543 |
) |
|
|
(1,301,273 |
) |
Accumulated other comprehensive income |
|
|
146,988 |
|
|
|
159,714 |
|
Total
shareholders’ equity |
|
|
1,348,678 |
|
|
|
1,230,529 |
|
Total
liabilities and shareholders’ equity |
|
$ |
2,732,694 |
|
|
$ |
2,876,123 |
|
CONDENSED INTERIM CONSOLIDATED
STATEMENTS OF NET EARNINGS (LOSS) (UNAUDITED)
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
(Stated
in thousands of Canadian dollars, except per share amounts) |
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
425,622 |
|
|
$ |
326,016 |
|
|
$ |
984,229 |
|
|
$ |
677,355 |
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Operating |
|
|
260,170 |
|
|
|
240,552 |
|
|
|
600,037 |
|
|
|
499,526 |
|
General and administrative |
|
|
23,359 |
|
|
|
21,365 |
|
|
|
38,880 |
|
|
|
76,875 |
|
Earnings before income taxes,
loss (gain) on investments and other assets, gain on
repurchase of unsecured senior notes, finance charges, foreign
exchange, gain on asset disposals, and depreciation
and amortization |
|
|
142,093 |
|
|
|
64,099 |
|
|
|
345,312 |
|
|
|
100,954 |
|
Depreciation and
amortization |
|
|
74,088 |
|
|
|
69,757 |
|
|
|
145,631 |
|
|
|
138,214 |
|
Gain on asset disposals |
|
|
(3,872 |
) |
|
|
(10,800 |
) |
|
|
(13,148 |
) |
|
|
(13,914 |
) |
Foreign exchange |
|
|
(774 |
) |
|
|
536 |
|
|
|
(1,257 |
) |
|
|
18 |
|
Finance charges |
|
|
21,408 |
|
|
|
21,043 |
|
|
|
44,328 |
|
|
|
41,773 |
|
Gain on repurchase of
unsecured senior notes |
|
|
(100 |
) |
|
|
— |
|
|
|
(100 |
) |
|
|
— |
|
Loss
(gain) on investments and other assets |
|
|
5,658 |
|
|
|
4,346 |
|
|
|
9,888 |
|
|
|
(1,223 |
) |
Earnings (loss) before income
taxes |
|
|
45,685 |
|
|
|
(20,783 |
) |
|
|
159,970 |
|
|
|
(63,914 |
) |
Income taxes: |
|
|
|
|
|
|
|
|
|
|
|
|
Current |
|
|
1,120 |
|
|
|
635 |
|
|
|
1,961 |
|
|
|
1,605 |
|
Deferred |
|
|
17,665 |
|
|
|
3,193 |
|
|
|
35,279 |
|
|
|
2,936 |
|
|
|
|
18,785 |
|
|
|
3,828 |
|
|
|
37,240 |
|
|
|
4,541 |
|
Net
earnings (loss) |
|
$ |
26,900 |
|
|
$ |
(24,611 |
) |
|
$ |
122,730 |
|
|
$ |
(68,455 |
) |
Net earnings (loss) per
share: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
1.97 |
|
|
$ |
(1.81 |
) |
|
$ |
8.98 |
|
|
$ |
(5.06 |
) |
Diluted |
|
$ |
1.63 |
|
|
$ |
(1.81 |
) |
|
$ |
7.22 |
|
|
$ |
(5.06 |
) |
CONDENSED INTERIM CONSOLIDATED
STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED)
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
(Stated
in thousands of Canadian dollars) |
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Net earnings (loss) |
|
$ |
26,900 |
|
|
$ |
(24,611 |
) |
|
$ |
122,730 |
|
|
$ |
(68,455 |
) |
Unrealized gain (loss)
on translation of assets and liabilities
of operations denominated in foreign currency |
|
|
(31,718 |
) |
|
|
44,638 |
|
|
|
(35,858 |
) |
|
|
27,667 |
|
Foreign exchange gain (loss)
on net investment hedge with U.S. denominated debt |
|
|
20,459 |
|
|
|
(33,831 |
) |
|
|
23,132 |
|
|
|
(21,063 |
) |
Comprehensive income (loss) |
|
$ |
15,641 |
|
|
$ |
(13,804 |
) |
|
$ |
110,004 |
|
|
$ |
(61,851 |
) |
CONDENSED INTERIM CONSOLIDATED
STATEMENTS OF CASH FLOWS (UNAUDITED)
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
(Stated
in thousands of Canadian dollars) |
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Cash provided by (used
in): |
|
|
|
|
|
|
|
|
|
|
|
|
Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) |
|
$ |
26,900 |
|
|
$ |
(24,611 |
) |
|
$ |
122,730 |
|
|
$ |
(68,455 |
) |
Adjustments for: |
|
|
|
|
|
|
|
|
|
|
|
|
Long-term compensation plans |
|
|
1,740 |
|
|
|
3,224 |
|
|
|
(2,377 |
) |
|
|
34,436 |
|
Depreciation and amortization |
|
|
74,088 |
|
|
|
69,757 |
|
|
|
145,631 |
|
|
|
138,214 |
|
Gain on asset disposals |
|
|
(3,872 |
) |
|
|
(10,800 |
) |
|
|
(13,148 |
) |
|
|
(13,914 |
) |
Foreign exchange |
|
|
(786 |
) |
|
|
422 |
|
|
|
(1,288 |
) |
|
|
151 |
|
Finance charges |
|
|
21,408 |
|
|
|
21,043 |
|
|
|
44,328 |
|
|
|
41,773 |
|
Income taxes |
|
|
18,785 |
|
|
|
3,828 |
|
|
|
37,240 |
|
|
|
4,541 |
|
Other |
|
|
(220 |
) |
|
|
275 |
|
|
|
(220 |
) |
|
|
275 |
|
Loss (gain) on investments and other assets |
|
|
5,658 |
|
|
|
4,346 |
|
|
|
9,888 |
|
|
|
(1,223 |
) |
Gain on repurchase of unsecured senior notes |
|
|
(100 |
) |
|
|
— |
|
|
|
(100 |
) |
|
|
— |
|
Income taxes paid |
|
|
(2,037 |
) |
|
|
(2,576 |
) |
|
|
(2,208 |
) |
|
|
(2,803 |
) |
Income taxes recovered |
|
|
3 |
|
|
|
— |
|
|
|
3 |
|
|
|
— |
|
Interest paid |
|
|
(4,827 |
) |
|
|
(4,540 |
) |
|
|
(44,202 |
) |
|
|
(42,701 |
) |
Interest received |
|
|
219 |
|
|
|
5 |
|
|
|
335 |
|
|
|
34 |
|
Funds provided by
operations |
|
|
136,959 |
|
|
|
60,373 |
|
|
|
296,612 |
|
|
|
90,328 |
|
Changes
in non-cash working capital balances |
|
|
76,501 |
|
|
|
74,801 |
|
|
|
(54,796 |
) |
|
|
(20,448 |
) |
|
|
|
213,460 |
|
|
|
135,174 |
|
|
|
241,816 |
|
|
|
69,880 |
|
Investments: |
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of property, plant
and equipment |
|
|
(44,037 |
) |
|
|
(39,436 |
) |
|
|
(94,832 |
) |
|
|
(75,838 |
) |
Purchase of intangibles |
|
|
(677 |
) |
|
|
— |
|
|
|
(677 |
) |
|
|
— |
|
Proceeds on sale of property,
plant and equipment |
|
|
6,261 |
|
|
|
6,849 |
|
|
|
14,026 |
|
|
|
9,696 |
|
Business acquisitions |
|
|
— |
|
|
|
— |
|
|
|
(28,000 |
) |
|
|
— |
|
Purchase of investments and
other assets |
|
|
(2,016 |
) |
|
|
(536 |
) |
|
|
(2,071 |
) |
|
|
(536 |
) |
Changes
in non-cash working capital balances |
|
|
(3,593 |
) |
|
|
(3,659 |
) |
|
|
(11,325 |
) |
|
|
(447 |
) |
|
|
|
(44,062 |
) |
|
|
(36,782 |
) |
|
|
(122,879 |
) |
|
|
(67,125 |
) |
Financing: |
|
|
|
|
|
|
|
|
|
|
|
|
Issuance of long-term
debt |
|
|
— |
|
|
|
6,405 |
|
|
|
139,049 |
|
|
|
94,529 |
|
Repayments of long-term
debt |
|
|
(177,677 |
) |
|
|
(75,921 |
) |
|
|
(239,021 |
) |
|
|
(84,111 |
) |
Repurchase of share
capital |
|
|
(7,958 |
) |
|
|
(5,000 |
) |
|
|
(12,951 |
) |
|
|
(5,000 |
) |
Issuance of common shares on
the exercise of options |
|
|
— |
|
|
|
4,766 |
|
|
|
— |
|
|
|
6,162 |
|
Lease payments |
|
|
(2,042 |
) |
|
|
(1,842 |
) |
|
|
(4,003 |
) |
|
|
(3,409 |
) |
|
|
|
(187,677 |
) |
|
|
(71,592 |
) |
|
|
(116,926 |
) |
|
|
8,171 |
|
Effect
of exchange rate changes on cash |
|
|
(421 |
) |
|
|
739 |
|
|
|
(679 |
) |
|
|
127 |
|
Increase (decrease) in
cash |
|
|
(18,700 |
) |
|
|
27,539 |
|
|
|
1,332 |
|
|
|
11,053 |
|
Cash,
beginning of period |
|
|
41,619 |
|
|
|
24,102 |
|
|
|
21,587 |
|
|
|
40,588 |
|
Cash,
end of period |
|
$ |
22,919 |
|
|
$ |
51,641 |
|
|
$ |
22,919 |
|
|
$ |
51,641 |
|
CONDENSED INTERIM CONSOLIDATED
STATEMENTS OF CHANGES IN EQUITY (UNAUDITED)
(Stated
in thousands of Canadian dollars) |
|
Shareholders’ Capital |
|
|
Contributed Surplus |
|
|
Accumulated Other Comprehensive Income |
|
|
Deficit |
|
|
Total Equity |
|
Balance at January 1, 2023 |
|
$ |
2,299,533 |
|
|
$ |
72,555 |
|
|
$ |
159,714 |
|
|
$ |
(1,301,273 |
) |
|
$ |
1,230,529 |
|
Net earnings for the
period |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
122,730 |
|
|
|
122,730 |
|
Other comprehensive loss for
the period |
|
|
— |
|
|
|
— |
|
|
|
(12,726 |
) |
|
|
— |
|
|
|
(12,726 |
) |
Settlement of Executive
Performance and Restricted Share Units |
|
|
19,206 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
19,206 |
|
Share repurchases |
|
|
(12,951 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(12,951 |
) |
Redemption of
non-management directors share units |
|
|
757 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
757 |
|
Share-based compensation expense |
|
|
— |
|
|
|
1,133 |
|
|
|
— |
|
|
|
— |
|
|
|
1,133 |
|
Balance at June 30, 2023 |
|
$ |
2,306,545 |
|
|
$ |
73,688 |
|
|
$ |
146,988 |
|
|
$ |
(1,178,543 |
) |
|
$ |
1,348,678 |
|
(Stated in thousands of Canadian dollars) |
|
Shareholders’ Capital |
|
|
Contributed Surplus |
|
|
Accumulated Other Comprehensive Income |
|
|
Deficit |
|
|
Total Equity |
|
Balance at January 1, 2022 |
|
$ |
2,281,444 |
|
|
$ |
76,311 |
|
|
$ |
134,780 |
|
|
$ |
(1,266,980 |
) |
|
$ |
1,225,555 |
|
Net
loss for the period |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(68,455 |
) |
|
|
(68,455 |
) |
Other comprehensive income for the period |
|
|
— |
|
|
|
— |
|
|
|
6,604 |
|
|
|
— |
|
|
|
6,604 |
|
Share options exercised |
|
|
8,843 |
|
|
|
(2,681 |
) |
|
|
— |
|
|
|
— |
|
|
|
6,162 |
|
Share repurchases |
|
|
(5,000 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(5,000 |
) |
Share-based compensation reclassification |
|
|
14,083 |
|
|
|
(219 |
) |
|
|
— |
|
|
|
— |
|
|
|
13,864 |
|
Share-based compensation expense |
|
|
— |
|
|
|
646 |
|
|
|
— |
|
|
|
— |
|
|
|
646 |
|
Balance at June 30, 2022 |
|
$ |
2,299,370 |
|
|
$ |
74,057 |
|
|
$ |
141,384 |
|
|
$ |
(1,335,435 |
) |
|
$ |
1,179,376 |
|
2023 SECOND QUARTER RESULTS CONFERENCE
CALL AND WEBCAST
Precision Drilling Corporation has scheduled a
conference call and webcast to begin promptly at 12:00 noon MT
(2:00 p.m. ET) on Thursday, July 27, 2023.
To participate in the conference call please
register at the URL link below. Once registered, you will receive a
dial-in number and a unique PIN, which will allow you to ask
questions.
https://register.vevent.com/register/BIf5c55d0560124b6695127e367e6c4f90
The call will also be webcast and can be
accessed through the link below. A replay of the webcast call will
be available on Precision’s website for 12 months.
https://edge.media-server.com/mmc/p/gpgem9pa
About Precision
Precision is a leading provider of safe and
environmentally responsible High Performance, High Value services
to the energy industry, offering customers access to an extensive
fleet of Super Series drilling rigs. Precision has commercialized
an industry-leading digital technology portfolio known as
Alpha™ that utilizes advanced automation software and
analytics to generate efficient, predictable, and repeatable
results for energy customers. Additionally, Precision offers well
service rigs, camps and rental equipment all backed by a
comprehensive mix of technical support services and skilled,
experienced personnel.
Precision is headquartered in Calgary, Alberta,
Canada and is listed on the Toronto Stock Exchange under the
trading symbol “PD” and on the New York Stock Exchange under the
trading symbol “PDS.”
For further information, please contact:
Lavonne Zdunich, CPA, CADirector, Investor
Relations403.716.4500
800, 525 - 8th Avenue S.W.Calgary, Alberta,
Canada T2P 1G1Website: www.precisiondrilling.com
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