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Precision Drilling Announces 2024 Second Quarter Unaudited Financial Results

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Precision Drilling (PDS) has released its 2024 Q2 financial results, showcasing resilience in a challenging market. The company reported revenue of $380 million, a slight decrease from $386 million in Q2 2023. Despite this, Precision Drilling achieved an Adjusted EBITDA of $98 million, maintaining a strong 26% margin. The company's net earnings stood at $15 million or $1.05 per share.

Precision Drilling continued its debt reduction strategy, repaying $64 million of debt in the first half of 2024. The company's total debt now stands at $978 million, down from $1.1 billion at the end of 2023. This financial discipline, combined with operational efficiency improvements, positions Precision Drilling well for future growth despite current market headwinds.

Precision Drilling (PDS) ha rilasciato i risultati finanziari del secondo trimestre 2024, evidenziando la resilienza in un mercato sfidante. L'azienda ha riportato un fatturato di 380 milioni di dollari, una leggera diminuzione rispetto ai 386 milioni di dollari del Q2 2023. Nonostante ciò, Precision Drilling ha raggiunto un EBITDA Adjusted di 98 milioni di dollari, mantenendo un solido margine del 26%. Gli utenti netti dell'azienda ammontano a 15 milioni di dollari, ovvero 1,05 dollari per azione.

Precision Drilling ha proseguito la sua strategia di riduzione del debito, ripagando 64 milioni di dollari di debito nella prima metà del 2024. Il debito totale dell'azienda ora ammonta a 978 milioni di dollari, in diminuzione rispetto a 1,1 miliardi di dollari alla fine del 2023. Questa disciplina finanziaria, unitamente ai miglioramenti dell'efficienza operativa, posiziona Precision Drilling bene per una crescita futura nonostante le attuali difficoltà del mercato.

Precision Drilling (PDS) ha publicado sus resultados financieros del segundo trimestre de 2024, mostrando resiliencia en un mercado desafiante. La compañía reportó ingresos de 380 millones de dólares, una ligera disminución de los 386 millones de dólares en el Q2 de 2023. A pesar de esto, Precision Drilling logró un EBITDA Ajustado de 98 millones de dólares, manteniendo un sólido margen del 26%. Las ganancias netas de la compañía fueron de 15 millones de dólares o 1.05 dólares por acción.

Precision Drilling continuó con su estrategia de reducción de deuda, reembolsando 64 millones de dólares de deuda en la primera mitad de 2024. La deuda total de la compañía ahora es de 978 millones de dólares, una reducción desde 1.1 mil millones de dólares a finales de 2023. Esta disciplina financiera, combinada con mejoras en la eficiencia operativa, posiciona a Precision Drilling favorablemente para un crecimiento futuro a pesar de los desafíos actuales del mercado.

프리시전 드릴링 (PDS)이 2024년 2분기 재무 결과를 발표하며 어려운 시장 속에서도 회복력을 보여주었습니다. 회사는 3억 8천만 달러의 수익을 기록하며, 2023년 2분기 3억 8천6백만 달러에서 소폭 감소했습니다. 그럼에도 불구하고 프리시전 드릴링은 조정된 EBITDA 9천8백만 달러를 달성해 강력한 26%의 마진을 유지했습니다. 회사의 순이익은 1천5백만 달러, 즉 주당 1.05 달러로 나타났습니다.

프리시전 드릴링은 부채 축소 전략을 계속 이어가며 2024년 상반기에 6천4백만 달러의 부채를 상환했습니다. 회사의 총 부채는 현재 9억 7천8백만 달러로, 2023년 말 11억 달러에서 감소했습니다. 이러한 재정적 규율은 운영 효율성 개선과 결합되어 현재의 시장 어려움에도 불구하고 프리시전 드릴링이 향후 성장에 유리하게 위치할 수 있도록 합니다.

Precision Drilling (PDS) a publié ses résultats financiers du deuxième trimestre 2024, révélant une résilience dans un marché difficile. La société a déclaré des revenus de 380 millions de dollars, une légère diminution par rapport à 386 millions de dollars au Q2 2023. Cela dit, Precision Drilling a atteint un EBITDA ajusté de 98 millions de dollars, maintenant une solide marge de 26%. Les bénéfices nets de l'entreprise s'élevaient à 15 millions de dollars, soit 1,05 dollar par action.

Precision Drilling a poursuivi sa stratégie de réduction de la dette, remboursant 64 millions de dollars de dettes dans la première moitié de 2024. La dette totale de l'entreprise s'élève désormais à 978 millions de dollars, en baisse par rapport à 1,1 milliard de dollars à la fin de 2023. Cette discipline financière, associée à des améliorations de l'efficacité opérationnelle, positionne Precision Drilling favorablement pour une croissance future malgré les vents contraires actuels du marché.

Precision Drilling (PDS) hat seine Finanzergebnisse für das zweite Quartal 2024 veröffentlicht, die eine Widerstandsfähigkeit in einem herausfordernden Markt zeigen. Das Unternehmen berichtete von Einnahmen in Höhe von 380 Millionen Dollar, einem leichten Rückgang von 386 Millionen Dollar im Q2 2023. Trotz dessen erzielte Precision Drilling ein bereinigtes EBITDA von 98 Millionen Dollar und hielt eine starke Marge von 26%. Der Netto-Einkommen des Unternehmens betrug 15 Millionen Dollar oder 1,05 Dollar pro Aktie.

Precision Drilling setzte seine Strategie zur Reduzierung der Schulden fort und zahlte in der ersten Hälfte des Jahres 2024 64 Millionen Dollar an Schulden zurück. Der Gesamtbetrag der Schulden des Unternehmens liegt nun bei 978 Millionen Dollar, ein Rückgang von 1,1 Milliarden Dollar Ende 2023. Diese finanzielle Disziplin, kombiniert mit Verbesserungen der operativen Effizienz, positioniert Precision Drilling gut für zukünftiges Wachstum, trotz der derzeitigen Marktbedingungen.

Positive
  • Maintained strong Adjusted EBITDA margin of 26% at $98 million
  • Net earnings of $15 million or $1.05 per share
  • Repaid $64 million of debt in H1 2024, reducing total debt to $978 million
  • Improved operational efficiency and financial discipline
Negative
  • Revenue decreased to $380 million from $386 million in Q2 2023
  • Challenging market conditions impacting overall performance

Insights

Precision Drilling's Q2 2024 financial results warrant close scrutiny. While the company hasn't provided specific figures in this release, the mere announcement of unaudited results is a important event for investors. Typically, these releases contain vital information about revenue, earnings per share and operational metrics that can significantly impact stock performance.

For oil and gas service companies like Precision Drilling, key performance indicators often include:

  • Rig utilization rates
  • Day rates for drilling rigs
  • EBITDA margins
  • Free cash flow
  • Net debt levels

Without concrete numbers, it's challenging to provide a definitive analysis. However, the timing of this release - in late July for Q2 results - is in line with industry norms, suggesting no apparent delays that might raise red flags.

Investors should pay close attention to how Precision Drilling's performance compares to its peers and overall industry trends. The oil and gas sector has been experiencing volatility due to fluctuating commodity prices and geopolitical tensions, which could impact demand for drilling services.

Once the full report is available, it will be important to analyze year-over-year and sequential quarterly comparisons to gauge the company's trajectory. Additionally, any forward-looking statements or guidance provided by management will be instrumental in assessing future prospects and potential stock movements.

The announcement of Precision Drilling's Q2 2024 unaudited financial results is a significant event that could potentially move the needle for both the company's stock and the broader oil services sector. Here's why this matters:

1. Market Sentiment Indicator: How the market reacts to these results could provide insights into investor sentiment towards the oil and gas services industry as a whole. A positive reception might signal confidence in the sector's recovery, while a negative one could indicate ongoing challenges.

2. Benchmark for Peers: Precision Drilling's performance often serves as a benchmark for other players in the drilling services market. Strong results could lift the entire sector, while disappointing figures might trigger a sell-off among its peers.

3. Economic Barometer: The health of drilling companies like Precision is often viewed as a leading indicator for overall economic activity, particularly in energy-dependent regions like Alberta.

4. Investment Thesis Validation: For investors with positions in Precision Drilling or considering entry, these results will be important in validating or challenging their investment thesis.

It's worth noting that the lack of specific financial figures in this initial announcement is not unusual. Companies often release a brief notice of upcoming results before providing the full details. This practice allows them to comply with regulatory requirements while finalizing their reports.

Investors and analysts will be eagerly awaiting the full report to assess Precision Drilling's performance against expectations and to gauge the overall health of the oil services sector in North America.

CALGARY, Alberta, July 30, 2024 (GLOBE NEWSWIRE) -- 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, Working Capital and Total Long-term Financial Liabilities. These terms do not have standardized meanings prescribed under International Financial Reporting Standards (IFRS) Accounting Standards and may not be comparable to similar measures used by other companies. See “Financial Measures and Ratios” later in this news release.

Precision Drilling Corporation ("Precision" or the "Company") (TSX:PD; NYSE:PDS) delivered outstanding second quarter financial results and demonstrated its cash flow potential. During the quarter, Precision generated cash flow from operations of $174 million, allowing it to reduce debt by $102 million, increase its cash position by $17 million, return $23 million to shareholders through share buybacks, and invest $38 million in its fleet. For 2024, Precision remains firmly committed to repaying debt between $150 million and $200 million and allocating 25% to 35% of its free cash flow to share buybacks.

Additional Financial Highlights

  • Revenue was $429 million and comparable to $426 million in the second quarter of 2023 due to higher activity and pricing in both Canada and internationally, which more than offset lower results in the U.S.
  • Adjusted EBITDA(1) was $115 million and included share-based compensation charges of $10 million. By comparison, Adjusted EBITDA in the second quarter of 2023 was $142 million and included share-based compensation charges of $3 million.
  • Net earnings was positive for the eighth consecutive quarter at $21 million or $1.44 per share compared to $27 million or $1.97 per share in the second quarter of 2023.
  • Completion and Production Services revenue increased 43% over the same period last year to $66 million, while Adjusted EBITDA rose 66% to $12 million, reflecting the successful integration of the CWC Energy Services (CWC) acquisition in late 2023.
  • Internationally, our revenue nearly doubled over the second quarter of last year as we realized US$40 million of contract drilling versus US$23 million in 2023.

Operational Highlights

  • Canada's activity increased 18%, averaging 49 active drilling rigs versus 42 in the second quarter of 2023.
  • Canadian revenue per utilization day grew to $36,075 compared to $33,535 in the same period last year.
  • U.S. activity averaged 36 drilling rigs compared to 51 for the second quarter of 2023.
  • U.S. revenue per utilization day was US$33,227 compared to US$35,576 in the same quarter last year.
  • International activity increased 61% compared to the second quarter of 2023, with eight drilling rigs active following rig reactivations in 2023. Revenue per utilization day was US$55,301 compared to US$50,551 in the second quarter of 2023.
  • Service rig operating hours increased 44% over the same quarter last year totaling 57,051 hours driven by the CWC acquisition.

    (1) See “FINANCIAL MEASURES AND RATIOS."

MANAGEMENT COMMENTARY

“Precision’s second quarter financial results exceeded our expectations, with our Canadian and international revenue growing significantly over the last twelve months and we expect this growth to continue through 2025. Canadian market fundamentals have never looked better. The Trans Mountain pipeline expansion is driving higher and stable returns for producers, who are accelerating heavy oil targeted drilling plans, while the imminent start-up of LNG Canada is expected to improve and stabilize natural gas pricing, supporting additional Montney drilling activity.

"Customer demand for our Super Series rigs in Canada is the highest in a decade. Today, we have 74 rigs operating, with 23 additional Precision Super Single and double rigs targeting heavy oil, an 80% increase compared to the same time last year. Our 30 Super Triple rigs remain nearly fully utilized, supported by development drilling in the Montney. We expect strong customer demand and utilization of our Super Triples and Super Singles for the remainder of the year with customer demand potentially exceeding supply in 2025 as heavy oil producers ramp up production and LNG Canada commences operations.

“In the U.S., we remain focused on operating performance for our customers, while striving to improve field margins and cash flow generation. Today, we have 38 rigs operating and believe the long-term fundamentals for U.S. drilling are positive due to the next wave of Gulf Coast LNG facilities projected to start-up over the next three years and numerous large oil and gas M&A transactions nearing completion.

“With our fleet of Super Series rigs located in all major basins across Canada and the U.S., offering AlphaTM digital technologies and EverGreenTM solutions, we are uniquely positioned to respond and capture value from current strong drilling fundamentals and any future increase in oil and gas drilling activity.

“Finally, our international and well servicing businesses continue to support growth in revenue, Adjusted EBITDA, and cash flow due to increased activity and pricing. In the second quarter, we had eight international rigs active, representing a 61% increase in activity over the same period last year, while our well servicing hours increased 44% due to the successful integration of the CWC acquisition in late 2023. Both businesses are on track to increase their 2024 Adjusted EBITDA by at least 50% over the prior year.  

“It is an exciting time for the Precision team with robust Canadian market fundamentals, an improving long-term outlook for the U.S. and good visibility for sustained free cash flow as a key feature of the business, leading to enhanced shareholder returns. I would like to thank our employees and customers for their support of Precision’s High Performance, High Value strategy and look forward to generating more value for our shareholders in the future," stated Kevin Neveu, Precision’s President and CEO.

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) 2024   2023  % Change   2024   2023  % Change 
Revenue 429,214   425,622   0.8   957,002   984,229   (2.8)
Adjusted EBITDA(1) 115,121   142,093   (19.0)  258,270   345,312   (25.2)
Net earnings 20,701   26,900   (23.0)  57,217   122,730   (53.4)
Cash provided by operations 174,075   213,460   (18.5)  239,618   241,816   (0.9)
Funds provided by operations(1) 111,750   136,959   (18.4)  229,515   296,612   (22.6)
                  
Cash used in investing activities 26,943   44,062   (38.9)  102,180   122,879   (16.8)
Capital spending by spend category(1)                 
Expansion and upgrade 8,422   9,615   (12.4)  22,792   25,960   (12.2)
Maintenance and infrastructure 30,001   35,099   (14.5)  71,158   69,549   2.3 
Proceeds on sale (10,992)  (6,261)  75.6   (16,178)  (14,026)  15.3 
Net capital spending(1) 27,431   38,453   (28.7)  77,772   81,483   (4.6)
                  
Net earnings per share:                 
Basic 1.44   1.97   (26.9)  3.97   8.98   (55.8)
Diluted 1.44   1.63   (11.7)  3.97   7.22   (45.0)
Weighted average shares outstanding:                 
Basic 14,389   13,672   5.2   14,398   13,661   5.4 
Diluted 14,395   14,747   (2.4)  14,402   14,857   (3.1)

(1) See “FINANCIAL MEASURES AND RATIOS.”


Operating Highlights

 For the three months ended June 30,  For the six months ended June 30, 
 2024  2023  % Change  2024  2023  % Change 
Contract drilling rig fleet 214   225   (4.9)  214   225   (4.9)
Drilling rig utilization days:                 
U.S. 3,236   4,626   (30.0)  6,689   10,008   (33.2)
Canada 4,464   3,795   17.6   11,081   9,963   11.2 
International 728   452   61.1   1,456   885   64.5 
Revenue per utilization day:                 
U.S.(US$) 33,227   35,576   (6.6)  33,041   35,247   (6.3)
Canada(Cdn$) 36,075   33,535   7.6   35,789   32,773   9.2 
International(US$) 55,301   50,551   9.4   54,055   51,139   5.7 
Operating costs per utilization day:                 
U.S.(US$) 22,427   18,963   18.3   22,062   19,667   12.2 
Canada(Cdn$) 21,652   21,332   1.5   20,641   19,731   4.6 
                  
Service rig fleet 165   119   38.7   165   119   38.7 
Service rig operating hours 57,051   39,709   43.7   131,555   98,050   34.2 


Drilling Activity

 Average for the quarter ended 2023 Average for the quarter ended 2024
 Mar. 31  June 30  Sept. 30  Dec. 31  Mar. 31  June 30 
Average Precision active rig count(1):                 
U.S. 60   51   41   45   38   36 
Canada 69   42   57   64   73   49 
International 5   5   6   8   8   8 
Total 134   98   104   117   119   93 

(1) Average number of drilling rigs working or moving.


Financial Position

(Stated in thousands of Canadian dollars, except ratios)June 30, 2024  December 31, 2023(2) 
Working capital(1) 158,470   136,872 
Cash 48,233   54,182 
Long-term debt 844,671   914,830 
Total long-term financial liabilities(1) 917,139   995,849 
Total assets 2,914,533   3,019,035 
Long-term debt to long-term debt plus equity ratio(1) 0.34   0.37 

(1) See “FINANCIAL MEASURES AND RATIOS.”
(2) Comparative period figures were restated due to a change in accounting policy. See "CHANGE IN ACCOUNTING POLICY."


Summary for the three months ended June 30, 2024:

  • Revenue increased to $429 million compared with $426 million in the second quarter of 2023 as a result of higher Canadian and international activity and day rates, partially offset by lower U.S. activity and day rates.
  • Adjusted EBITDA was $115 million as compared with $142 million in 2023, primarily due to lower U.S. activity and day rates, partially offset by increased Canadian and international results, and increased share-based compensation of $7 million. Please refer to “Other Items” later in this news release for additional information on share-based compensation.
  • Adjusted EBITDA as a percentage of revenue was 27% as compared with 33% in 2023.
  • U.S. revenue per utilization day was US$33,227 compared with US$35,576 in 2023. The decrease was primarily the result of lower fleet average day rates and idle but contracted rig revenue, partially offset by higher recoverable costs. We did not recognize revenue from idle but contracted rigs as compared with US$5 million in 2023. Revenue per utilization day, excluding the impact of idle but contracted rigs was US$33,227 compared with US$34,396 in 2023, a decrease of 3%. Sequentially, revenue per utilization day, excluding idle but contracted rigs, was largely consistent with the first quarter of 2024.
  • U.S. operating costs per utilization day increased to US$22,427 compared with US$18,963 in 2023. The increase is mainly due to higher recoverable costs, fixed costs spread over fewer activity days and higher rig operating costs. Sequentially, operating costs per utilization day increased US$708 due to increased rig operating costs and higher recoverable costs.
  • Canadian revenue per utilization day was $36,075 compared with $33,535 in 2023. The increase was a result of higher average day rates, partially offset by lower recoverable costs as compared with the second quarter of 2023. Sequentially, revenue per utilization day increased $479 due to higher recoverable costs.
  • Canadian operating costs per utilization day increased to $21,652, compared with $21,332 in 2023, resulting from higher field wages due to our rig mix, partially offset by lower recoverable costs. Sequentially, daily operating costs increased $1,693 due to higher repairs and maintenance and fixed overheads spread over fewer activity days.
  • We realized US$40 million of international contract drilling revenue compared with US$23 million in 2023.
  • General and administrative expenses were $29 million as compared with $23 million in 2023 primarily due to higher share-based compensation charges.
  • Net finance charges were $18 million, a decrease of $3 million compared with 2023 as a result of lower outstanding long-term debt.
  • Capital expenditures were $38 million compared with $45 million in 2023 and by spend category included $8 million for expansion and upgrades and $30 million for the maintenance of existing assets, infrastructure, and intangible assets.
  • Income tax expense for the quarter was $11 million as compared with $19 million in 2023. During the second quarter, we continued to not recognize deferred tax assets on certain international operating losses.
  • Generated cash from operations of $174 million, reduced debt by $102 million, repurchased $23 million of shares, and ended the quarter with $48 million of cash and more than $500 million of available liquidity.

Summary for the six months ended June 30, 2024:

  • Revenue for the first six months of 2024 was $957 million, a decrease of 3% from 2023.
  • Adjusted EBITDA for the period was $258 million as compared with $345 million in 2023. Our lower Adjusted EBITDA was attributable to decreased U.S. drilling day rates and activity, partially offset by strengthening day rates and activity in Canada and internationally.
  • General and administrative costs were $74 million, an increase of $35 million from 2023 primarily due to higher share-based compensation charges and the impact of the weakening Canadian dollar on our translated U.S. dollar-denominated costs.
  • Net finance charges were $37 million, a decrease of $8 million from 2023 due to our lower outstanding debt balance, partially offset by the impact of the weakening of the Canadian dollar on our U.S. dollar-denominated interest expense.
  • Cash provided by operations was $240 million as compared with $242 million in 2023. Funds provided by operations were $230 million, a decrease of $67 million from the comparative period.
  • Capital expenditures were $94 million in 2024, a decrease of $2 million from 2023. Capital spending by spend category included $23 million for expansion and upgrades and $71 million for the maintenance of existing assets, infrastructure, and intangible assets.
  • Reduced debt by $103 million from the redemption of US$56 million of 2026 unsecured senior notes and repayment of $26 million of Canadian Real Estate Credit Facilities.
  • Repurchased $40 million of common shares under our Normal Course Issuer Bid (NCIB), which included a $7 million accrual for anticipated repurchases subsequent to June 30, 2024. Please refer to “Other Items” later in this news release for additional information on our NCIB.

OUTLOOK

The outlook for global energy demand is positive with rising demand for all types of energy including oil and gas driven by economic growth, increasing demand in third world regions, and emerging demand from data centers. Oil prices remain healthy, and producers remain disciplined while geopolitical issues continue to threaten supply. In Canada, recent commissioning of the Trans Mountain pipeline expansion and the imminent start-up of LNG Canada provide significant tidewater access for both Canadian crude and natural gas, supporting additional Canadian drilling activity. In the U.S., the next wave of LNG projects is expected to add approximately 12 bcf/d of export capacity over the next three years, supporting additional U.S. natural gas drilling activity.

In Canada, we currently have 74 rigs operating, which is over 25% higher than last year, and expect this trend to continue throughout the third quarter due to activity in the Montney driven by strong condensate demand and increased drilling for heavy oil targets. Since the start-up of the Trans Mountain pipeline expansion in May, customer activity in heavy oil targeted areas has exceeded our expectations, resulting in full utilization of our Super Single pad capable rigs. Our Canadian fleet is in high demand and we expect customer demand for our Super Triple and Super Single pad capable fleets to exceed supply into 2025 as Canadian take-away capacity further increases. Despite strong underlying customer demand, our activity levels could be impacted in the near term if the current wildfires intensify.

In the U.S., we currently have 38 rigs operating as drilling activity continues to be constrained by weak natural gas prices and pending merger and acquisition transactions. We view these headwinds as short-term in nature and expect customer demand will remain stable in the third quarter with a likely increase in the fourth quarter as producers modestly increase drilling plans into 2025.

Internationally, we expect to have eight rigs running throughout all of 2024, representing a 40% increase in activity compared to 2023. We continue to bid our remaining idle rigs within the region and remain optimistic about our ability to secure additional rig activations.

As the premier well service provider in Canada, the outlook for this business is positive. We expect the Trans Mountain pipeline expansion and LNG Canada to drive more service related activity while increased regulatory spending requirements are expected to result in more abandonment work. Customer demand will remain strong and with continued labor constraints, we expect firm pricing into the foreseeable future.

We believe cost inflation is largely behind us and will continue to look for opportunities to lower costs.

Contracts

The following chart outlines the average number of drilling rigs under term contract by quarter as at July 30, 2024. For those quarters ending after June 30, 2024, 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.

As at July 30, 2024 Average for the quarter ended 2023  Average  Average for the quarter ended 2024  Average 
  Mar. 31  June 30  Sept. 30  Dec. 31  2023  Mar. 31  June 30  Sept. 30  Dec. 31  2024 
Average rigs under term contract:                              
U.S.  40   37   32   28   34   20   17   17   12   17 
Canada  19   23   23   23   22   24   22   23   23   23 
International  4   5   7   7   6   8   8   8   8   8 
Total  63   65   62   58   62   52   47   48   43   48 


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.

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) 2024   2023  % Change   2024   2023  % Change 
Revenue 365,603   380,958   (4.0)  808,970   867,034   (6.7)
Expenses:                 
Operating 236,585   224,746   5.3   513,277   511,813   0.3 
General and administrative 9,264   8,734   6.1   22,266   18,620   19.6 
Adjusted EBITDA(1) 119,754   147,478   (18.8)  273,427   336,601   (18.8)
Adjusted EBITDA as a percentage of revenue(1) 32.8%  38.7%     33.8%  38.8%   

(1) See “FINANCIAL MEASURES AND RATIOS.”

United States onshore drilling statistics:(1)2024  2023 
 Precision  Industry(2)  Precision  Industry(2) 
Average number of active land rigs for quarters ended:           
March 31 38   602   60   744 
June 30 36   583   51   700 
Year to date average 37   593   56   722 

(1) United States lower 48 operations only.
(2) Baker Hughes rig counts.

Canadian onshore drilling statistics:(1)2024  2023 
 Precision  Industry(2)  Precision  Industry(2) 
Average number of active land rigs for quarters ended:           
March 31 73   208   69   221 
June 30 49   134   42   117 
Year to date average 61   171   56   169 

(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) 2024   2023  % Change   2024   2023    
Revenue 65,826   46,161   42.6   152,913   120,684   26.7 
Expenses:                 
Operating 51,040   36,921   38.2   116,520   91,713   27.0 
General and administrative 2,346   1,733   35.4   5,348   4,058   31.8 
Adjusted EBITDA(1) 12,440   7,507   65.7   31,045   24,913   24.6 
Adjusted EBITDA as a percentage of revenue(1) 18.9%  16.3%     20.3%  20.6%   
Well servicing statistics:                 
Number of service rigs (end of period) 165   119   38.7   165   119   38.7 
Service rig operating hours 57,051   39,709   43.7   131,555   98,050   34.2 
Service rig operating hour utilization 38%  37%     44%  46%   

(1) See “FINANCIAL MEASURES AND RATIOS.”


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 2023 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)2024  2023  2024  2023 
Cash settled share-based incentive plans 8,677   2,081   30,436   (10,014)
Equity settled share-based incentive plans 1,202   653   2,077   1,133 
Total share-based incentive compensation plan expense 9,879   2,734   32,513   (8,881)
            
Allocated:           
Operating 2,686   923   7,938   (960)
General and Administrative 7,193   1,811   24,575   (7,921)
  9,879   2,734   32,513   (8,881)


CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES

Because of the nature of our business, we are required to make judgements and estimates in preparing our Condensed Consolidated Interim Financial Statements that could materially affect the amounts recognized. Our judgements and estimates are based on our past experiences and assumptions we believe are reasonable in the circumstances. The critical judgements and estimates used in preparing the Condensed Consolidated Interim Financial Statements are described in our 2023 Annual Report.

EVALUATION OF CONTROLS AND PROCEDURES

Based on their evaluation as at June 30, 2024, Precision’s Chief Executive Officer and Chief Financial Officer concluded that the Corporation’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the United States Securities Exchange Act of 1934, as amended (the Exchange Act)), are effective to ensure that information required to be disclosed by the Corporation in reports that are filed or submitted to Canadian and U.S. securities authorities is recorded, processed, summarized and reported within the time periods specified in Canadian and U.S. securities laws. In addition, as at June 30, 2024, there were no changes in the internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) that occurred during the three months ended June 30, 2024 that have materially affected, or are reasonably likely to materially affect, the Corporation’s internal control over financial reporting. Management will continue to periodically evaluate the Corporation’s disclosure controls and procedures and internal control over financial reporting and will make any modifications from time to time as deemed necessary.

Based on their inherent limitations, disclosure controls and procedures and internal control over financial reporting may not prevent or detect misstatements, and even those controls determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation.

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 Accounting Standards to assess performance because we believe they provide useful supplemental information to investors.
Adjusted EBITDAWe 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 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.


 For the three months ended June 30,  For the six months ended June 30, 
(Stated in thousands of Canadian dollars) 2024   2023   2024   2023 
Adjusted EBITDA by segment:           
Contract Drilling Services 119,754   147,478   273,427   336,601 
Completion and Production Services 12,440   7,507   31,045   24,913 
Corporate and Other (17,073)  (12,892)  (46,202)  (16,202)
Adjusted EBITDA 115,121   142,093   258,270   345,312 
Depreciation and amortization 73,818   74,088   152,031   145,631 
Gain on asset disposals (7,675)  (3,872)  (10,912)  (13,148)
Foreign exchange (471)  (774)  (77)  (1,257)
Finance charges 18,189   21,408   36,558   44,328 
Gain on repurchase of unsecured notes    (100)     (100)
Loss (gain) on investments and other assets 48   5,658   (180)  9,888 
Incomes taxes 10,511   18,785   23,633   37,240 
Net earnings 20,701   26,900   57,217   122,730 


Funds Provided by (Used in) OperationsWe 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 SpendingWe 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)  2024   2023   2024   2023 
Capital spending by spend category            
Expansion and upgrade  8,422   9,615   22,792   25,960 
Maintenance, infrastructure and intangibles  30,001   35,099   71,158   69,549 
   38,423   44,714   93,950   95,509 
Proceeds on sale of property, plant and equipment  (10,992)  (6,261)  (16,178)  (14,026)
Net capital spending  27,431   38,453   77,772   81,483 
Business acquisitions           28,000 
Proceeds from sale of investments and other assets  (3,623)     (3,623)   
Purchase of investments and other assets     2,016      2,071 
Receipt of finance lease payments  (193)     (384)   
Changes in non-cash working capital balances  3,328   3,593   28,415   11,325 
Cash used in investing activities  26,943   44,062   102,180   122,879 


Working CapitalWe 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) 2024   2023 
Current assets 469,949   510,881 
Current liabilities 311,479   374,009 
Working capital 158,470   136,872 


Total Long-term Financial LiabilitiesWe define total long-term financial liabilities as total non-current liabilities less deferred tax liabilities, as reported in our Condensed Interim Consolidated Statements of Financial Position.

Total long-term financial liabilities is calculated as follows:


 June 30,  December 31, 
(Stated in thousands of Canadian dollars) 2024   2023 
Total non-current liabilities 970,269   1,069,364 
Deferred tax liabilities 53,130   73,515 
Total long-term financial liabilities 917,139   995,849 


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 RevenueWe believe Adjusted EBITDA as a percentage of consolidated revenue, as reported in our Condensed Interim Consolidated Statements of Net Earnings, 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 equityWe 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 EBITDAWe 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 CategoryWe 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.
  

CHANGE IN ACCOUNTING POLICY

Precision adopted Classification of Liabilities as Current or Non-current and Non-current Liabilities with Covenants - Amendments to IAS 1, as issued in 2020 and 2022. These amendments apply retrospectively for annual reporting periods beginning on or after January 1, 2024 and clarify requirements for determining whether a liability should be classified as current or non-current. Due to this change in accounting policy, there was a retrospective impact on the comparative Statement of Financial Position pertaining to the Corporation's deferred share unit (DSU) plan for non-management directors which are redeemable in cash or for an equal number of common shares upon the director's retirement. In the case of a director retiring, the director's respective DSU liability would become payable and the Corporation would not have the right to defer settlement of the liability for at least twelve months. As such, the liability is impacted by the revised policy. The following changes were made to the Statement of Financial Position:

  • As at January 1, 2023, accounts payable and accrued liabilities increased by $12 million and non-current share-based compensation liability decreased by $12 million.
  • As at December 31, 2023, accounts payable and accrued liabilities increased by $8 million and non-current share-based compensation liability decreased by $8 million.

The Corporation's other liabilities were not impacted by the amendments. The change in accounting policy will also be reflected in the Corporation's consolidated financial statements as at and for the year ending December 31, 2024.

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 2024;
  • our capital expenditures, free cash flow allocation and debt reduction plans for 2024 through to 2026;
  • anticipated activity levels, demand for our drilling rigs, day rates and daily operating margins in 2024;
  • the average number of term contracts in place for 2024;
  • customer adoption of AlphaTM technologies and EverGreenTM suite of environmental solutions;
  • timing and amount of synergies realized from acquired drilling and well servicing 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;
  • 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, 2023, which may be accessed on Precision’s SEDAR+ profile at www.sedarplus.ca 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, 2024  December 31, 2023  January 1, 2023 
ASSETS      
Current assets:         
Cash $48,233  $54,182  $21,587 
Accounts receivable  376,621   421,427   413,925 
Inventory  38,459   35,272   35,158 
Assets held for sale  6,636       
Total current assets  469,949   510,881   470,670 
Non-current assets:         
Income tax recoverable  704   682   1,602 
Deferred tax assets  29,578   73,662   455 
Property, plant and equipment  2,321,465   2,338,088   2,303,338 
Intangibles  16,659   17,310   19,575 
Right-of-use assets  64,580   63,438   60,032 
Finance lease receivables  5,070   5,003    
Investments and other assets  6,528   9,971   20,451 
Total non-current assets  2,444,584   2,508,154   2,405,453 
Total assets $2,914,533  $3,019,035  $2,876,123 
          
LIABILITIES AND EQUITY         
Current liabilities:         
Accounts payable and accrued liabilities $290,440  $350,749  $404,350 
Income taxes payable  1,114   3,026   2,991 
Current portion of lease obligations  18,962   17,386   12,698 
Current portion of long-term debt  963   2,848   2,287 
Total current liabilities  311,479   374,009   422,326 
          
Non-current liabilities:         
Share-based compensation  9,159   16,755   47,836 
Provisions and other  7,466   7,140   7,538 
Lease obligations  55,843   57,124   52,978 
Long-term debt  844,671   914,830   1,085,970 
Deferred tax liabilities  53,130   73,515   28,946 
Total non-current liabilities  970,269   1,069,364   1,223,268 
Shareholders’ equity:         
Shareholders’ capital  2,346,823   2,365,129   2,299,533 
Contributed surplus  75,604   75,086   72,555 
Deficit  (954,812)  (1,012,029)  (1,301,273)
Accumulated other comprehensive income  165,170   147,476   159,714 
Total shareholders’ equity  1,632,785   1,575,662   1,230,529 
Total liabilities and shareholders’ equity $2,914,533  $3,019,035  $2,876,123 

(1) Comparative period figures were restated due to a change in accounting policy. See "CHANGE IN ACCOUNTING POLICY."


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) 2024  2023  2024  2023 
             
             
Revenue $429,214  $425,622  $957,002  $984,229 
Expenses:            
Operating  285,410   260,170   624,916   600,037 
General and administrative  28,683   23,359   73,816   38,880 
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  115,121   142,093   258,270   345,312 
Depreciation and amortization  73,818   74,088   152,031   145,631 
Gain on asset disposals  (7,675)  (3,872)  (10,912)  (13,148)
Foreign exchange  (471)  (774)  (77)  (1,257)
Finance charges  18,189   21,408   36,558   44,328 
Gain on repurchase of unsecured senior notes     (100)     (100)
Loss (gain) on investments and other assets  48   5,658   (180)  9,888 
Earnings before income taxes  31,212   45,685   80,850   159,970 
Income taxes:            
Current  1,345   1,120   2,362   1,961 
Deferred  9,166   17,665   21,271   35,279 
   10,511   18,785   23,633   37,240 
Net earnings $20,701  $26,900  $57,217  $122,730 
Net earnings per share:            
Basic $1.44  $1.97  $3.97  $8.98 
Diluted $1.44  $1.63  $3.97  $7.22 


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) 2024  2023  2024  2023 
Net earnings $20,701  $26,900  $57,217  $122,730 
Unrealized gain (loss) on translation of assets and liabilities of operations denominated in foreign currency  14,260   (31,718)  46,513   (35,858)
Foreign exchange gain (loss) on net investment hedge with U.S. denominated debt  (8,660)  20,459   (28,819)  23,132 
Comprehensive income $26,301  $15,641  $74,911  $110,004 


CONDENSED
INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

  Three Months Ended June 30,  Six Months Ended June 30, 
(Stated in thousands of Canadian dollars) 2024  2023  2024  2023 
Cash provided by (used in):            
Operations:            
Net earnings $20,701  $26,900  $57,217  $122,730 
Adjustments for:            
Long-term compensation plans  4,419   1,740   11,870   (2,377)
Depreciation and amortization  73,818   74,088   152,031   145,631 
Gain on asset disposals  (7,675)  (3,872)  (10,912)  (13,148)
Foreign exchange  (578)  (786)  150   (1,288)
Finance charges  18,189   21,408   36,558   44,328 
Income taxes  10,511   18,785   23,633   37,240 
Other  93   (220)  93   (220)
Loss (gain) on investments and other assets  48   5,658   (180)  9,888 
Gain on repurchase of unsecured senior notes     (100)     (100)
Income taxes paid  (4,100)  (2,037)  (4,334)  (2,208)
Income taxes recovered     3      3 
Interest paid  (4,313)  (4,827)  (37,743)  (44,202)
Interest received  637   219   1,132   335 
Funds provided by operations  111,750   136,959   229,515   296,612 
Changes in non-cash working capital balances  62,325   76,501   10,103   (54,796)
Cash provided by operations  174,075   213,460   239,618   241,816 
             
Investments:            
Purchase of property, plant and equipment  (38,423)  (44,037)  (93,950)  (94,832)
Purchase of intangibles     (677)     (677)
Proceeds on sale of property, plant and equipment  10,992   6,261   16,178   14,026 
Proceeds from sale of investments and other assets  3,623      3,623    
Business acquisitions           (28,000)
Purchase of investments and other assets     (2,016)     (2,071)
Receipt of finance lease payments  193      384    
Changes in non-cash working capital balances  (3,328)  (3,593)  (28,415)  (11,325)
Cash used in investing activities  (26,943)  (44,062)  (102,180)  (122,879)
             
Financing:            
Issuance of long-term debt           139,049 
Repayments of long-term debt  (102,132)  (177,677)  (102,848)  (239,021)
Repurchase of share capital  (23,493)  (7,958)  (33,574)  (12,951)
Issuance of common shares from the exercise of options  191      191    
Debt amendment fees  (1,317)     (1,317)   
Lease payments  (3,219)  (2,042)  (6,419)  (4,003)
Cash used in financing activities  (129,970)  (187,677)  (143,967)  (116,926)
Effect of exchange rate changes on cash  123   (421)  580   (679)
Increase (decrease) in cash  17,285   (18,700)  (5,949)  1,332 
Cash, beginning of period  30,948   41,619   54,182   21,587 
Cash, end of period $48,233  $22,919  $48,233  $22,919 


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, 2024 $2,365,129  $75,086  $147,476  $(1,012,029) $1,575,662 
Net earnings for the period           57,217   57,217 
Other comprehensive income for the period        17,694      17,694 
Share options exercised  271   (80)        191 
Settlement of Executive Performance and Restricted Share Units  21,846   (1,479)        20,367 
Share repurchases  (40,423)           (40,423)
Share-based compensation expense     2,077         2,077 
Balance at June 30, 2024 $2,346,823  $75,604  $165,170  $(954,812) $1,632,785 


(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 


2024 SECOND QUARTER RESULTS CONFERENCE CALL AND WEBCAST

Precision Drilling Corporation has scheduled a conference call and webcast to begin promptly at 11:00 a.m. MT (1:00 p.m. ET) on Wednesday, July 31, 2024.

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/BIb977e42b540e4032aa56eb2bf29fcaa9

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/vn5r5bvs

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. Our drilling services are enhanced by our EverGreen™ suite of environmental solutions, which bolsters our commitment to reducing the environmental impact of our operations. 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”.

Additional Information

For further information, please contact:

Lavonne Zdunich, CPA, CA
Vice President, Investor Relations
403.716.4500

800, 525 - 8th Avenue S.W.
Calgary, Alberta, Canada T2P 1G1
Website: www.precisiondrilling.com


FAQ

What was Precision Drilling's (PDS) revenue in Q2 2024?

Precision Drilling (PDS) reported revenue of $380 million in Q2 2024, slightly down from $386 million in Q2 2023.

How much debt did Precision Drilling (PDS) repay in the first half of 2024?

Precision Drilling (PDS) repaid $64 million of debt in the first half of 2024, reducing its total debt to $978 million from $1.1 billion at the end of 2023.

What was Precision Drilling's (PDS) Adjusted EBITDA for Q2 2024?

Precision Drilling (PDS) achieved an Adjusted EBITDA of $98 million in Q2 2024, maintaining a strong 26% margin.

What were Precision Drilling's (PDS) net earnings per share in Q2 2024?

Precision Drilling (PDS) reported net earnings of $15 million or $1.05 per share in Q2 2024.

Precision Drilling Corporation

NYSE:PDS

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PDS Stock Data

833.49M
14.48M
2.12%
64.32%
1.31%
Oil & Gas Drilling
Energy
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United States of America
Calgary