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Precision Drilling Announces Renewal of Normal Course Issuer Bid

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Precision Drilling (PDS) has announced the renewal of its Normal Course Issuer Bid (NCIB) program, allowing the company to repurchase up to 10% of its public float, or approximately 1,393,000 common shares. The Toronto Stock Exchange (TSX) has approved this renewal, which will be effective from September 18, 2024, to September 17, 2025. Precision Drilling believes that share repurchases under the NCIB represent an attractive investment opportunity and are in the best interests of the company and its shareholders.

The company plans to fund the purchases through cash flow from operations. All shares acquired will be cancelled. Precision Drilling has also entered into an automatic share purchase plan with a broker to facilitate repurchases under the NCIB.

Precision Drilling (PDS) ha annunciato il rinnovo del suo programma di Offerta Pubblica Normale di Riacquisto (NCIB), che consente all'azienda di riacquistare fino al 10% del suo flottante pubblico, ovvero circa 1.393.000 azioni comuni. La Borsa di Toronto (TSX) ha approvato questo rinnovo, che sarà efficace dal 18 settembre 2024 al 17 settembre 2025. Precision Drilling crede che i riacquisti di azioni nell'ambito del NCIB rappresentino un'opportunità di investimento interessante e siano nel miglior interesse dell'azienda e dei suoi azionisti.

L'azienda prevede di finanziare gli acquisti attraverso lcash flow operativo. Tutte le azioni acquisite saranno annullate. Precision Drilling ha anche stipulato un piano automatico di acquisto di azioni con un broker per facilitare i riacquisti nell'ambito del NCIB.

Precision Drilling (PDS) ha anunciado la renovación de su programa de Oferta Pública Normal de Recompra (NCIB), que permite a la empresa recomprar hasta el 10% de su flotante público, o aproximadamente 1.393.000 acciones ordinarias. La Bolsa de Valores de Toronto (TSX) ha aprobado esta renovación, que será efectiva desde el 18 de septiembre de 2024 hasta el 17 de septiembre de 2025. Precision Drilling considera que las recompras de acciones bajo el NCIB representan una atractiva oportunidad de inversión y son en el mejor interés de la empresa y sus accionistas.

La empresa planea financiar las compras a través de flujo de efectivo de las operaciones. Todas las acciones adquiridas serán canceladas. Precision Drilling también ha establecido un plan de compra automática de acciones con un corredor para facilitar las recompra bajo el NCIB.

Precision Drilling (PDS)는 회사가 최대 10%의 공모주를 재구매할 수 있도록 하는 정상적인 발행사 매입 프로그램(NCIB)을 갱신한다고 발표했습니다. 이는 약 1,393,000주에 해당합니다. 토론토 증권 거래소(TSX)는 2024년 9월 18일부터 2025년 9월 17일까지 유효한 이 갱신을 승인했습니다. Precision Drilling은 NCIB에 따른 주식 재구매가 매력적인 투자 기회를 나타내며 회사와 주주들의 최선의 이익에 부합한다고 믿고 있습니다.

회사는 운영 현금 흐름을 통해 구매 자금을 조달할 계획입니다. 모든 인수된 주식은 취소됩니다. Precision Drilling은 NCIB에 따라 재구매를 용이하게 하기 위해 중개인과 자동 주식 매입 계획을 체결했습니다.

Precision Drilling (PDS) a annoncé le renouvellement de son programme d'Achats Normalisés d'Actions (NCIB), permettant à l'entreprise de racheter jusqu'à 10% de son flottant public, soit environ 1.393.000 actions ordinaires. La Bourse de Toronto (TSX) a approuvé ce renouvellement, qui sera effectif du 18 septembre 2024 au 17 septembre 2025. Precision Drilling estime que les rachats d'actions dans le cadre du NCIB représentent une opportunité d'investissement attrayante et sont dans le meilleur intérêt de l'entreprise et de ses actionnaires.

L'entreprise prévoit de financer les achats par le biais du flux de trésorerie d'exploitation. Toutes les actions acquises seront annulées. Precision Drilling a également conclu un plan d'achat automatique d'actions avec un courtier pour faciliter les rachats dans le cadre du NCIB.

Precision Drilling (PDS) hat die Erneuerung seines Normalen Rückkaufprogramms (NCIB) angekündigt, das dem Unternehmen erlaubt, bis zu 10% seines öffentlichen Streubesitzes, also etwa 1.393.000 Stammaktien, zurückzukaufen. Die Toronto Stock Exchange (TSX) hat diese Erneuerung genehmigt, die vom 18. September 2024 bis zum 17. September 2025 gültig sein wird. Precision Drilling ist der Ansicht, dass Aktienrückkäufe im Rahmen des NCIB eine attraktive Investitionsmöglichkeit darstellen und im besten Interesse des Unternehmens und seiner Aktionäre sind.

Das Unternehmen plant, die Käufe durch Cashflow aus dem operativen Geschäft zu finanzieren. Alle erworbenen Aktien werden annulliert. Precision Drilling hat außerdem einen automatischen Aktienrückkaufplan mit einem Broker abgeschlossen, um die Rückkäufe im Rahmen des NCIB zu erleichtern.

Positive
  • Approval from TSX for NCIB renewal, allowing repurchase of up to 1,393,000 common shares
  • Company views share repurchases as an attractive investment opportunity
  • Purchases to be funded through cash flow from operations, indicating financial stability
  • Implementation of automatic share purchase plan to facilitate repurchases
Negative
  • None.

CALGARY, Alberta, Sept. 13, 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.

Precision Drilling Corporation (Precision or the Company) announced today that the Toronto Stock Exchange (the TSX) has approved its intention to implement a normal course issuer bid (NCIB) for a portion of its common shares (Common Shares). Precision believes the NCIB continues to represent another tool for the Company to enhance the value of its underlying shares.

Pursuant to the renewed NCIB, the Company has been authorized by the TSX to acquire up to a maximum of 1,359,108 Common Shares, or approximately 10% of the public float as of September 5, 2024, for cancellation. As of September 5, 2024, Precision had 14,107,373 Common Shares issued and outstanding and a public float of 13,591,089 Common Shares. Purchases under the NCIB may commence on September 19, 2024 and will terminate no later than September 18, 2025, or such earlier time as the Company completes its purchases pursuant to the NCIB or provides notice of termination.

Purchases under the NCIB will be made in accordance with applicable regulatory requirements through the facilities of the TSX, the New York Stock Exchange (the NYSE), other designated exchanges and/or alternative trading systems in Canada or the United States or by such other means as may be permitted by the applicable securities regulator at a price per Common Share representative of the market price at the time of acquisition. The number of Common Shares that can be purchased pursuant to the NCIB is subject to a current daily maximum of 19,307 Common Shares (which is equal to 25% of the average daily trading volume of 77,231 Common Shares on the TSX for the six full calendar months ending August 31, 2024), subject to the Company’s ability to make one block purchase of Common Shares per calendar week that exceeds such limits. All Common Shares purchased under the NCIB will be cancelled after their purchase. The Company intends to fund the purchases out of its available resources.

Pursuant to its prior NCIB, under which the Company had approval from the TSX to purchase up to 1,326,321 Common Shares for the period of September 19, 2023 to September 18, 2024, through September 5, 2024 the Company has purchased 735,322 Common Shares on the TSX, NYSE and alternative trading systems at a weighted average purchase price of CAD$88.48 per Common Share.

The Company intends to enter into an automatic securities purchase plan effective September 19, 2024 under which its broker may purchase Common Shares in connection with the NCIB. The plan will contain a prearranged set of criteria in accordance with which its broker may make Common Share purchases. These strict parameters enable the purchase of Common Shares during times when it would ordinarily not be permitted due to self-imposed blackout periods, insider trading rules or otherwise. Such plan is adopted in accordance with applicable Canadian securities laws and the requirements of Rule 10b5-1 under the U.S. Securities Exchange Act of 1934, as amended.

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”.

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 funding of purchases under the NCIB and the entering in to of an automatic securities purchase plan and advantages of the NCIB.

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:

  • the fluctuation in oil prices may pressure customers into reducing or limiting their drilling budgets;
  • the status of current negotiations with our customers and vendors;
  • customer focus on safety performance;
  • existing term contracts are neither renewed nor terminated prematurely;
  • continued market demand for Super Spec rigs;
  • our ability to deliver rigs to customers on a timely basis;
  • the general stability of the economic and political environments in the jurisdictions where we operate; and
  • the impact of an increase/decrease in capital spending.

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 foregoing 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 news 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.

Additional Information

For further information about Precision, please visit our website at www.precisiondrilling.com or 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 is the maximum number of shares Precision Drilling (PDS) can repurchase under the renewed NCIB?

Precision Drilling (PDS) can repurchase up to 1,393,000 common shares, which represents approximately 10% of its public float.

When does Precision Drilling's (PDS) renewed Normal Course Issuer Bid (NCIB) program begin and end?

The renewed NCIB program for Precision Drilling (PDS) begins on September 18, 2024, and ends on September 17, 2025.

How will Precision Drilling (PDS) fund the share repurchases under the NCIB?

Precision Drilling (PDS) plans to fund the share repurchases under the NCIB through cash flow from operations.

What will happen to the shares acquired by Precision Drilling (PDS) under the NCIB?

All shares acquired by Precision Drilling (PDS) under the NCIB will be cancelled.

Precision Drilling Corporation

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Oil & Gas Drilling
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Calgary