Latest news with #Precision
Toronto Star
10 hours ago
- Business
- Toronto Star
Precision Drilling boosts capital spending as outlook improves
CALGARY - Precision Drilling Corp. says the outlook for its business is improving enough for it to reverse cuts to its capital spending program it had made amid economic uncertainty earlier this year — and further increase it. 'While macro uncertainties persist, customer interest in gas-directed drilling has taken shape with several operators planning to expand drilling programs with Precision, and this is very encouraging,' said Kevin Neveu, chief executive of the Calgary-based oil and gas driller.
Winnipeg Free Press
15 hours ago
- Business
- Winnipeg Free Press
Precision Drilling reports Q2 profit down from a year earlier
CALGARY – Precision Drilling Corp. says it had a net income of $16.5 million in its second quarter, down from $20.7 million in the same quarter last year. The company says the profit amounted to $1.07 per diluted share for the quarter ended June 30, down from $1.44 per diluted share in the same quarter last year. Revenue totalled $406.6 million, down from $429.2 million in the second quarter of 2024. The drop came as it averaged 33 active drilling rigs in the U.S. for the quarter compared with 36 for the second quarter of 2024. Meanwhile, Precision averaged 50 active drilling rigs in Canada for the quarter, compared with 49 a year earlier. The company's international operations averaged seven active drilling rigs for the quarter compared with eight in the second quarter of 2024. Service rig operating hours for the quarter dropped 23 per cent compared with a year earlier on customer-driven project deferrals, weather impacts and lower U.S. activity. Monday Mornings The latest local business news and a lookahead to the coming week. This report by The Canadian Press was first published July 30, 2025. Companies in this story: (TSX:PD)
Hamilton Spectator
15 hours ago
- Business
- Hamilton Spectator
Precision Drilling reports Q2 profit down from a year earlier
CALGARY - Precision Drilling Corp. says it had a net income of $16.5 million in its second quarter, down from $20.7 million in the same quarter last year. The company says the profit amounted to $1.07 per diluted share for the quarter ended June 30, down from $1.44 per diluted share in the same quarter last year. Revenue totalled $406.6 million, down from $429.2 million in the second quarter of 2024. The drop came as it averaged 33 active drilling rigs in the U.S. for the quarter compared with 36 for the second quarter of 2024. Meanwhile, Precision averaged 50 active drilling rigs in Canada for the quarter, compared with 49 a year earlier. The company's international operations averaged seven active drilling rigs for the quarter compared with eight in the second quarter of 2024. Service rig operating hours for the quarter dropped 23 per cent compared with a year earlier on customer-driven project deferrals, weather impacts and lower U.S. activity. This report by The Canadian Press was first published July 30, 2025. Companies in this story: (TSX:PD)
Business Insider
a day ago
- Business
- Business Insider
Precision Drilling reports Q2 EPS $1.21 vs. $1.44 last year
Reports Q2 revenue $407M, consensus $397.28M. 'Precision's second quarter financial and operational results were stronger than we anticipated, with excellent free cash flow, new contracts booked in Canada and the U.S., and strong customer demand for Precision's Super Triple rigs in every natural gas basin in North America coupled with sustained strong demand for our pad-capable Super Single rigs, supporting heavy oil drilling in Canada. We generated revenue of $407M, Adjusted EBITDA of $108M, and net earnings attributable to shareholders of $16M or $1.21 per share. I am pleased how our highly experienced team, committed to serving our customers, continues to deliver positive returns for our shareholders. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Hamilton Spectator
a day ago
- Business
- Hamilton Spectator
Precision Drilling Announces 2025 Second Quarter Unaudited Financial Statements
CALGARY, Alberta, July 29, 2025 (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, 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) announces 2025 second quarter results and confirms shareholder return targets while increasing its investment in its Super Series rig fleet to meet customer demand and drive drilling revenue growth. Financial Highlights Operational Highlights (1) See 'FINANCIAL MEASURES AND RATIOS.' MANAGEMENT COMMENTARY 'Precision's second quarter financial and operational results were stronger than we anticipated, with excellent free cash flow, new contracts booked in Canada and the U.S., and strong customer demand for Precision's Super Triple rigs in every natural gas basin in North America coupled with sustained strong demand for our pad-capable Super Single rigs, supporting heavy oil drilling in Canada. We generated revenue of $407 million, Adjusted EBITDA of $108 million, and net earnings attributable to shareholders of $16 million or $1.21 per share. I am pleased how our highly experienced team, committed to serving our customers, continues to deliver positive returns for our shareholders. 'Cash provided by operations was $147 million in the second quarter, allowing us to reduce debt by $74 million, repurchase $14 million of shares, and fund capital expenditures of $53 million. Year to date, we reduced debt by $91 million and repurchased $45 million of shares. We are well above the midpoint of our annual guidance for both debt repayments and share repurchases, and confident in our ability to meet our 2025 targets. 'In Canada, we averaged 50 active rigs in the quarter compared to 49 a year ago, outpacing industry activity that declined year over year. Our outperformance was driven by strong demand for our growing fleet of pad-capable Super Series rigs that provide customers improved efficiencies and minimizing the impact of spring breakup. We deployed two pad-capable Super Single rigs earlier this year to meet customer demand for heavy oil development drilling. Undoubtedly, Canada's improved takeaway capacity from the Trans Mountain pipeline expansion has increased heavy oil activity since its start up in mid-2024 and driven our Super Single utilization to near full capacity. LNG Canada made its first shipment in early July and once this facility achieves its run rate capacity, demand for our Super Triple rigs could exceed current supply. 'In the U.S., while the industry's rig count continued to fall during the quarter, we increased our activity 13% versus the first quarter of the year and averaged 33 active rigs with an exit rate of 35 active rigs. Our growth was the result of capitalizing on emerging opportunities in U.S. natural gas plays as customers are becoming more constructive on LNG off-take and AI demand, which is driving additional drilling. With a strong reputation for drilling in natural gas basins such as the Haynesville and Marcellus, we expect our U.S. rig activity to further increase as we deploy additional natural gas drilling rigs through the remainder of the year. 'Our international drilling operations performed as expected, generating US$36 million in revenue and strong free cash flow during the quarter. We have five rigs active in Kuwait and two in Saudi Arabia, with the majority of these rigs under five-year term contracts that extend into 2027 and 2028. 'Completion and Production Services revenue was lower than expected as our service rig operating hours declined 23% year over year. This decrease was attributable to customer driven project deferrals, due to market and commodity price volatility, and the impact of weather, including wet conditions and wildfires. The business generated Adjusted EBITDA of $10 million and we expect activity to improve in the second half of the year as customers move forward with previously deferred projects. 'With strong demand for drilling in Canada and improving sentiment for natural gas drilling in the U.S., customers are requesting a higher number of rig upgrades than we expected earlier this year. As a result, we have increased our capital budget from $200 million to $240 million to support these requests and provide Precision's customers with some of the most technologically advanced Super Single and Super Triple rigs in North America. In 2025, we plan to upgrade 22 of our Super Series rigs, which is driving more customer commitments and revenue growth from our drilling operations. Our 2025 upgrade capital is supported by up-front customer payments, term contracts, and higher day rate commitments. We remain positioned to further adjust capital spending up or down in response to evolving customer demand. 'Our revised capital plan aligns with our annual strategic priorities to drive revenue growth from our existing service lines. We believe a combination of debt reduction, share buybacks, and investments in our own business will generate the greatest returns for our shareholders. I would like to thank our employees, customers, shareholders and other stakeholders for their continued support,' concluded Mr. Neveu. SELECT FINANCIAL AND OPERATING INFORMATION Financial Highlights (1) See 'FINANCIAL MEASURES AND RATIOS.' Operating Highlights Drilling Activity (1) Average number of drilling rigs working or moving. Financial Position (1) See 'FINANCIAL MEASURES AND RATIOS.' Summary for the three months ended June 30, 2025: (1) See 'FINANCIAL MEASURES AND RATIOS.' Summary for the six months ended June 30, 2025: STRATEGY Precision's vision is to be globally recognized as the High Performance, High Value provider of land drilling services. We work toward this vision by defining and measuring our results against strategic priorities that we establish at the beginning of every year. Precision's 2025 strategic priorities and the progress made during the second quarter: 1. Maximize free cash flow through disciplined capital deployment and strict cost management. 2. Enhance shareholder returns through debt reduction and share repurchases. Plan to reduce debt by at least $100 million and allocate 35% to 45% of free cash flow before debt repayments for share repurchases. 3. Grow revenue in existing service lines through contracted upgrades, optimized pricing and utilization, and opportunistic consolidating tuck-in acquisitions. OUTLOOK Near-term expectations for global energy demand growth have been tempered by several geopolitical events including OPEC+ easing of curtailments, trade and tariff uncertainty, and international conflicts. However, we believe the long-term fundamentals for energy is positive, driven by economic growth, increasing demand from emerging economies, and new demand for power. In Canada, additional takeaway capacity for both oil and natural gas continues to support Canadian activity. LNG Canada made its first shipment at the beginning of July, and we expect demand for our Super Triple drilling rigs could exceed current supply once the facility achieves its run rate capacity. The Trans Mountain pipeline expansion continues to support heavy oil production, driving our Super Single rig utilization near full capacity. While Canadian drilling fundamentals are strong, tariff and commodity price uncertainty have caused some producers to defer some work until later this year. We currently have 63 rigs operating and as these uncertainties resolve, we expect Canadian customer demand for oil targeted drilling to further strengthen. In the U.S., while the oil rig count continues to decline, we are beginning to see natural gas drilling increase as customers are becoming more constructive on LNG off-take and AI demand. We currently have 36 rigs active in the U.S. and expect to increase our activity for the remainder of the year as we capitalize on emerging opportunities in natural gas basins such as the Haynesville and Marcellus. Internationally, we have seven active rigs with five in Kuwait and two in the Kingdom of Saudi Arabia and expect this same level of activity for the remainder of the year. The majority of these rigs are under five-year term contracts that extend into 2027 and 2028. We continue to look for opportunities to leverage our international expertise. As the premier well service provider in Canada, the outlook for this business remains strong, driven by increased takeaway capacity from the Trans Mountain pipeline expansion and LNG Canada, and our High Performance, High Value service offering. We expect activity to improve in the second half of the year as customers move ahead with projects previously deferred. Contracts The following chart outlines the average number of drilling rigs under term contract by quarter as at July 29, 2025. For those quarters ending after June 30, 2025, 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. 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 (1) See 'FINANCIAL MEASURES AND RATIOS.' (1) Canadian operations only. (2) Baker Hughes rig counts. (1) United States lower 48 operations only. (2) Baker Hughes rig counts. SEGMENT REVIEW OF COMPLETION AND PRODUCTION SERVICES (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 2024 Annual Report. A summary of expense amounts under these plans during the reporting periods are as follows: FINANCIAL MEASURES AND RATIOS CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION AND STATEMENTS Certain statements contained in this news 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: 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: 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: 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, 2024, which may be accessed on Precision's SEDAR+ profile at or under Precision's EDGAR profile at . 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. CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED) CONDENSED INTERIM CONSOLIDATED STATEMENTS OF NET EARNINGS (LOSS) (UNAUDITED) CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED) 2025 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 30, 2025. 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. 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. 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:
