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 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 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) 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) | 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 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) | 2024 | 2023 | |||||
| Current assets | 469,949 | 510,881 | |||||
| Current liabilities | 311,479 | 374,009 | |||||
| Working capital | 158,470 | 136,872 | |||||
| Total Long-term Financial Liabilities | We 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 Revenue | We 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 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. |
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
