as of October 26, 2022:
The following chart outlines the average number of drilling rigs that we had under contract for 2021 and the average number of rigs we have under contract as of October 26, 2022.
Average for the year ended | ||||||||||||
2021 | 2022 | 2023 | ||||||||||
Average rigs under term contract as of October 26, 2022: | ||||||||||||
U.S. | 23 | 31 | 18 | |||||||||
Canada | 7 | 10 | 14 | |||||||||
International | 6 | 5 | 3 | |||||||||
Total | 36 | 46 | 35 |
(1) Does not include Kuwait contracts awarded subsequent to September 30, 2022.
In Canada, term contracted rigs normally generate 250 utilization days per year because of the seasonal nature of well site access. In most regions in the U.S. and internationally, term contracts normally generate 365 utilization days per year.
Drilling Activity
The following chart outlines the average number of drilling rigs that we had working or moving by quarter for the periods noted.
Average for the quarter ended 2021 | Average for the quarter ended 2022 | ||||||||||||||||||||||||||
Mar. 31 | June 30 | Sept. 30 | Dec. 31 | Mar. 31 | June 30 | Sept. 30 | |||||||||||||||||||||
Average Precision active rig count: | |||||||||||||||||||||||||||
U.S. | 33 | 39 | 41 | 45 | 51 | 55 | 57 | ||||||||||||||||||||
Canada | 42 | 27 | 51 | 52 | 63 | 37 | 59 | ||||||||||||||||||||
International | 6 | 6 | 6 | 6 | 6 | 6 | 6 | ||||||||||||||||||||
Total | 81 | 72 | 98 | 103 | 120 | 98 | 122 |
According to industry sources, as at October 26, 2022, the U.S. active land drilling rig count has increased 43% from the same point last year while the Canadian active land drilling rig count has increased by 28%. To date in 2022, approximately 79% of the U.S. industry’s active rigs and 63% of the Canadian industry’s active rigs were drilling for oil targets, compared with 80% for the U.S. and 54% for Canada at the same time last year.
Capital Spending and Free Cash Flow Allocation
We increased our capital spending plan to reflect higher maintenance capital from our increasing activity, strategic purchase of drill pipe and customer funded rig upgrades. Capital spending in 2022 is expected to be $165 million and by spend category includes $96 million for sustaining, infrastructure and intangibles and $69 million for expansion and upgrades. We expect the $165 million will be split $157 million in the Contract Drilling Services segment, $5 million in the Completion and Production Services segment and $3 million to the Corporate segment. At September 30, 2022, Precision had capital commitments of $163 million with payments expected through 2024.
Our debt reduction plans continue with the goal of repaying $75 million in 2022 and over $400 million of debt over the next four years and reaching a sustained Net Debt to Adjusted EBITDA ratio of below 1.5 times. At the end of 2025, we expect to have reduced debt by well over $1 billion since 2018. In addition to our debt reduction target through 2025, we plan to allocate 10% to 20% of free cash flow before debt principal repayments toward the return of capital to shareholders.
SEGMENTED FINANCIAL RESULTS
For the three months ended September 30, | For the nine months ended September 30, | ||||||||||||||||||||||
2021 | % Change | 2021 | % Change | ||||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Contract Drilling Services | 226,957 | 65.0 | 613,032 | 60.3 | |||||||||||||||||||
Completion and Production Services | 28,143 | 101.3 | 81,354 | 57.2 | |||||||||||||||||||
Inter-segment eliminations | (1,287 | ) | 37.7 | (2,741 | ) | 51.0 | |||||||||||||||||
253,813 | 69.2 | 691,645 | 60.0 | ||||||||||||||||||||
Adjusted EBITDA: | |||||||||||||||||||||||
Contract Drilling Services | 55,384 | 114.1 | 163,118 | 59.5 | |||||||||||||||||||
Completion and Production Services | 5,479 | 169.9 | 17,533 | 49.2 | |||||||||||||||||||
Corporate and Other | (15,455 | ) | (10.5 | ) | (51,760 | ) | 27.2 | ||||||||||||||||
45,408 | 163.3 | 128,891 | 71.1 |
SEGMENT REVIEW OF CONTRACT DRILLING SERVICES
For the three months ended September 30, | For the nine months ended September 30, | ||||||||||||||||||||||
2021 | % Change | 2021 | % Change | ||||||||||||||||||||
Revenue | 226,957 | 65.0 | 613,032 | 60.3 | |||||||||||||||||||
Expenses: | |||||||||||||||||||||||
Operating | 164,521 | 49.8 | 429,036 | 61.3 | |||||||||||||||||||
General and administrative | 7,052 | 33.6 | 20,878 | 46.3 | |||||||||||||||||||
Adjusted EBITDA | 55,384 | 114.1 | 163,118 | 59.5 | |||||||||||||||||||
Adjusted EBITDA as a percentage of revenue | 24.4 | % | 26.6 | % |
United States onshore drilling statistics: | 2021 | ||||||||||||||
Precision | Industry | ||||||||||||||
Average number of active land rigs for quarters ended: | |||||||||||||||
March 31 | 33 | 378 | |||||||||||||
June 30 | 39 | 437 | |||||||||||||
September 30 | 41 | 485 | |||||||||||||
Year to date average | 38 | 433 |
(1) United States lower 48 operations only. (2) Baker Hughes rig counts.
Canadian onshore drilling statistics: | 2021 | ||||||||||||||
Precision | Industry | ||||||||||||||
Average number of active land rigs for quarters ended: | |||||||||||||||
March 31 | 42 | 145 | |||||||||||||
June 30 | 27 | 72 | |||||||||||||
September 30 | 51 | 151 | |||||||||||||
Year to date average | 40 | 123 |
(1) Canadian operations only. (2) Baker Hughes rig counts.
SEGMENT REVIEW OF COMPLETION AND PRODUCTION SERVICES
For the three months ended September 30, | For the nine months ended September 30, | ||||||||||||||||||||||
2021 | % Change | 2021 | |||||||||||||||||||||
Revenue | 28,143 | 101.3 | 81,354 | 57.2 | |||||||||||||||||||
Expenses: | |||||||||||||||||||||||
Operating | 21,188 | 89.7 | 59,703 | 61.4 | |||||||||||||||||||
General and administrative | 1,476 | 12.2 | 4,118 | 30.9 | |||||||||||||||||||
Adjusted EBITDA | 5,479 | 169.9 | 17,533 | 49.2 | |||||||||||||||||||
Adjusted EBITDA as a percentage of revenue | 19.5 | % | 21.6 | % | |||||||||||||||||||
Well servicing statistics: | |||||||||||||||||||||||
Number of service rigs (end of period) | 123 | 9.8 | 123 | 9.8 | |||||||||||||||||||
Service rig operating hours | 32,244 | 62.3 | 93,777 | 29.0 | |||||||||||||||||||
Service rig operating hour utilization | 28 | % | 28 | % |
SEGMENT REVIEW OF CORPORATE AND OTHER
Our Corporate and Other segment provides support functions to our operating segments. The Corporate and Other segment had negative Adjusted EBITDA of $14 million as compared with $15 million in the third quarter of 2021. Our Adjusted EBITDA was positively impacted by decreased share-based compensation costs, partially offset by lower CEWS program assistance.
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 2021 Annual Report.
A summary of amounts expensed under these plans during the reporting periods are as follows:
For the three months ended September 30, | For the nine months ended September 30, | ||||||||||||||
2021 | 2021 | ||||||||||||||
Cash settled share-based incentive plans | 11,839 | 46,537 | |||||||||||||
Equity settled share-based incentive plans: | |||||||||||||||
Executive PSU | 1,468 | 3,639 | |||||||||||||
Share option plan | 34 | 199 | |||||||||||||
Total share-based incentive compensation plan expense | 13,341 | 50,375 | |||||||||||||
Allocated: | |||||||||||||||
Operating | 3,272 | 11,437 | |||||||||||||
General and Administrative | 10,069 | 38,938 | |||||||||||||
13,341 | 50,375 |
Cash settled share-based compensation expense for the quarter was $6 million as compared with $12 million in 2021. The decreased expense in 2022 was primarily due to our lower sequential quarter share price. Our equity settled share-based compensation expense for the third quarter of 2022 was nil as our Executive PSUs and share options fully vested in the first quarter of 2022.
As at September 30, 2022, the majority of our share-based compensation plans were classified as cash-settled and will be impacted by changes in our share price. Although accounted for as cash-settled, Precision retains the ability to settle certain vested units in common shares at its discretion.
Finance Charges
Third quarter net finance charges were $23 million as compared with $21 million in 2021. The increased finance charges were primarily due to higher variable interest rates on our Senior and Real Estate Credit Facilities and the impact of higher foreign exchange rates on our U.S. denominated long-term debt. Interest charges on our U.S. denominated long-term debt in the third quarter were US$16 million ($20 million) as compared with US$15 million ($19 million) in 2021.
Income tax expense for the quarter was $6 million as compared with a $4 million recovery in 2021. The higher income tax expense for the quarter was the result of our positive earnings. During the third quarter, we did not recognize deferred tax assets on certain Canadian and international operating losses.
LIQUIDITY AND CAPITAL RESOURCES
US$500 million (extendible, revolving term credit facility with US$300 million accordion feature) | US$141 million drawn and US$32 million in outstanding letters of credit | General corporate purposes | June 18, 2025 | |||
US$9 million | Fully drawn | General corporate purposes | November 19, 2025 | |||
$18 million | Fully drawn | General corporate purposes | March 16, 2026 | |||
$40 million | Undrawn, except $8 million in outstanding letters of credit | Letters of credit and general corporate purposes | ||||
US$15 million | Undrawn | Short-term working capital requirements | ||||
US$30 million | Undrawn, except US$18 million in outstanding letters of credit | Letters of credit | ||||
US$348 million – 7.125% | Fully drawn | Debt redemption and repurchases | January 15, 2026 | |||
US$400 million – 6.875% | Fully drawn | Debt redemption and repurchases | January 15, 2029 |
(1) US$53 million expires on November 21, 2023.
At September 30, 2022, we had $1,259 million outstanding under our Senior Credit Facility, Real Estate Credit Facilities and unsecured senior notes as compared with $1,126 million at December 31, 2021. The weakening of the Canadian dollar resulted in $106 million of additional stated debt at September 30, 2022.
The current blended cash interest cost of our debt is approximately 6.9%.
At September 30, 2022, we were in compliance with the covenants of our Senior Credit Facility and Real Estate Credit Facilities.
Covenant | At September 30, 2022 | ||||
Consolidated senior debt to consolidated covenant EBITDA | < 2.50 | 0.72 | |||
Consolidated covenant EBITDA to consolidated interest expense | > 2.25 | 3.76 | |||
Consolidated covenant EBITDA to consolidated interest expense | > 2.25 | 3.76 |
(1) For purposes of calculating the leverage ratio consolidated senior debt only includes secured indebtedness.
Average shares outstanding
The following tables reconcile the net earnings (loss) and weighted average shares outstanding used in computing basic and diluted net earnings (loss) per share:
For the three months ended September 30, | For the nine months ended September 30, | |||||||||||||||
2021 | 2021 | |||||||||||||||
Net earnings (loss) – basic | (38,032 | ) | (150,050 | ) | ||||||||||||
Expense adjustment to equity compensation plans, net of tax | – | – | ||||||||||||||
Net earnings (loss) – diluted | (38,032 | ) | (150,050 | ) |
For the three months ended September 30, | For the nine months ended September 30, | |||||||||||||||
2021 | 2021 | |||||||||||||||
Weighted average shares outstanding – basic | 13,304 | 13,319 | ||||||||||||||
Effect of stock options and other equity compensation plans | – | – | ||||||||||||||
Weighted average shares outstanding – diluted | 13,304 | 13,319 |
QUARTERLY FINANCIAL SUMMARY
2021 | ||||||||||||||||
Quarters ended | December 31 | March 31 | June 30 | |||||||||||||
Revenue | 295,202 | 351,339 | 326,016 | |||||||||||||
Adjusted EBITDA | 63,881 | 36,855 | 64,099 | |||||||||||||
Net earnings (loss) | (27,336 | ) | (43,844 | ) | (24,611 | ) | ||||||||||
Net earnings (loss) per basic share | (2.05 | ) | (3.25 | ) | (1.81 | ) | ||||||||||
Net earnings (loss) per diluted share | (2.05 | ) | (3.25 | ) | (1.81 | ) | ||||||||||
Funds provided by operations | 62,681 | 29,955 | 60,373 | |||||||||||||
Cash provided by (used in) operations | 59,713 | (65,294 | ) | 135,174 |
2020 | 2021 | |||||||||||||||
Quarters ended | December 31 | March 31 | June 30 | September 30 | ||||||||||||
Revenue | 201,688 | 236,473 | 201,359 | 253,813 | ||||||||||||
Adjusted EBITDA | 55,263 | 54,539 | 28,944 | 45,408 | ||||||||||||
Net loss | (37,518 | ) | (36,106 | ) | (75,912 | ) | (38,032 | ) | ||||||||
Net loss per basic and diluted share | (2.74 | ) | (2.70 | ) | (5.71 | ) | (2.86 | ) | ||||||||
Funds provided by operations | 35,282 | 43,430 | 12,607 | 33,525 | ||||||||||||
Cash provided by operations | 4,737 | 15,422 | 42,219 | 21,871 |
FINANCIAL MEASURES AND RATIOS
We reference certain additional Non-Generally Accepted Accounting Principles ( ) measures that are not defined terms under IFRS to assess performance because we believe they provide useful supplemental information to investors. | ||
We believe Adjusted EBITDA (earnings before income taxes, gain (loss) on investments and other assets, loss on repurchase of unsecured senior notes, finance charges, foreign exchange, gain on asset disposals and depreciation and amortization), as reported in our Condensed Interim Consolidated Statements of Net Earnings (Loss) and our reportable operating segment disclosures, is a useful measure, because it gives an indication of the results from our principal business activities prior to consideration of how our activities are financed and the impact of foreign exchange, taxation and depreciation and amortization charges. The most directly comparable financial measure is net earnings (loss). | ||
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. | ||
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 September 30, | For the nine months ended September 30, | |||||||||||||||
2021 | 2021 | |||||||||||||||
Capital spending by spend category | ||||||||||||||||
Expansion and upgrade | 5,998 | 15,881 | ||||||||||||||
Maintenance and infrastructure | 13,502 | 32,310 | ||||||||||||||
19,500 | 48,191 | |||||||||||||||
Proceeds on sale of property, plant and equipment | (4,476 | ) | (10,390 | ) | ||||||||||||
Net capital spending | 15,024 | 37,801 | ||||||||||||||
Business acquisitions | – | – | ||||||||||||||
Purchase of investments and other assets | 3,000 | 3,000 | ||||||||||||||
Changes in non-cash working capital balances | (500 | ) | (3,213 | ) | ||||||||||||
Cash used in investing activities | 17,524 | 37,588 |
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: |
At December 31, | |||||||
2021 | |||||||
Current assets | 319,757 | ||||||
Current liabilities | 238,120 | ||||||
Working capital | 81,637 |
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. | ||
We believe Adjusted EBITDA as a percentage of consolidated revenue, as reported in our Condensed Interim Consolidated Statements of Net Earnings (Loss), provides an indication of our profitability from our principal business activities prior to consideration of how our activities are financed and the impact of foreign exchange, taxation and depreciation and amortization charges. | ||
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 to our debt leverage. | ||
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 to the number of years it would take for us to repay our debt obligations. | ||
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. | ||
We provide additional disclosure to better depict the nature of our capital spending. Our capital spending is categorized as expansion and upgrade, maintenance and infrastructure, or intangibles. |
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION AND STATEMENTS
Certain statements contained in this release, including statements that contain words such as “could”, “should”, “can”, “anticipate”, “estimate”, “intend”, “plan”, “expect”, “believe”, “will”, “may”, “continue”, “project”, “potential” and similar expressions and statements relating to matters that are not historical facts constitute “forward-looking information” within the meaning of applicable Canadian securities legislation and “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995 (collectively, “forward-looking information and statements”).
In particular, forward looking information and statements include, but are not limited to, the following:
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, 2021, which may be accessed on Precision’s SEDAR profile at www.sedar.com or under Precision’s EDGAR profile at www.sec.gov. The forward-looking information and statements contained in this release are made as of the date hereof and Precision undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, except as required by law.
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED)
December 31, 2021 | ||||||||
Current assets: | ||||||||
Cash | $ | 40,588 | ||||||
Accounts receivable | 255,740 | |||||||
Inventory | 23,429 | |||||||
Total current assets | 319,757 | |||||||
Non-current assets: | ||||||||
Income tax recoverable | – | |||||||
Deferred tax assets | 867 | |||||||
Right-of-use assets | 51,440 | |||||||
Property, plant and equipment | 2,258,391 | |||||||
Intangibles | 23,915 | |||||||
Investments and other assets | 7,382 | |||||||
Total non-current assets | 2,341,995 | |||||||
Total assets | $ | 2,661,752 | ||||||
Current liabilities: | ||||||||
Accounts payable and accrued liabilities | $ | 224,123 | ||||||
Income taxes payable | 839 | |||||||
Current portion of lease obligations | 10,935 | |||||||
Current portion of long-term debt | 2,223 | |||||||
Total current liabilities | 238,120 | |||||||
Non-current liabilities: | ||||||||
Share-based compensation | 26,728 | |||||||
Provisions and other | 6,513 | |||||||
Lease obligations | 45,823 | |||||||
Long-term debt | 1,106,794 | |||||||
Deferred tax liabilities | 12,219 | |||||||
Total non-current liabilities | 1,198,077 | |||||||
Shareholders’ equity: | ||||||||
Shareholders’ capital | 2,281,444 | |||||||
Contributed surplus | 76,311 | |||||||
Deficit | (1,266,980 | ) | ||||||
Accumulated other comprehensive income | 134,780 | |||||||
Total shareholders’ equity | 1,225,555 | |||||||
Total liabilities and shareholders’ equity | $ | 2,661,752 |
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF NET LOSS (UNAUDITED)
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2021 | 2021 | |||||||||||||||
Revenue | $ | 253,813 | $ | 691,645 | ||||||||||||
Expenses: | ||||||||||||||||
Operating | 184,422 | 485,998 | ||||||||||||||
General and administrative | 23,983 | 76,756 | ||||||||||||||
Earnings before income taxes, gain on investments and other assets, loss on repurchase of unsecured senior notes, finance charges, foreign exchange, gain on asset disposals and depreciation and amortization | 45,408 | 128,891 | ||||||||||||||
Depreciation and amortization | 69,431 | 211,148 | ||||||||||||||
Gain on asset disposals | (3,261 | ) | (6,224 | ) | ||||||||||||
Foreign exchange | 464 | 104 | ||||||||||||||
Finance charges | 20,639 | 70,783 | ||||||||||||||
Loss on repurchase of unsecured senior notes | – | 9,520 | ||||||||||||||
Gain on investments and other assets | (327 | ) | (327 | ) | ||||||||||||
Earnings (loss) before income taxes | (41,538 | ) | (156,113 | ) | ||||||||||||
Income taxes: | ||||||||||||||||
Current | 890 | 2,462 | ||||||||||||||
Deferred | (4,396 | ) | (8,525 | ) | ||||||||||||
(3,506 | ) | (6,063 | ) | |||||||||||||
Net earnings (loss) | $ | (38,032 | ) | $ | (150,050 | ) | ||||||||||
Net earnings (loss) per share: | ||||||||||||||||
Basic | $ | (2.86 | ) | $ | (11.27 | ) | ||||||||||
Diluted | $ | (2.86 | ) | $ | (11.27 | ) |
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED)
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2021 | 2021 | |||||||||||||||
Net earnings (loss) | $ | (38,032 | ) | $ | (150,050 | ) | ||||||||||
Unrealized gain (loss) on translation of assets and liabilities of operations denominated in foreign currency | 33,364 | (9,182 | ) | |||||||||||||
Foreign exchange gain (loss) on net investment hedge with U.S. denominated debt | (24,544 | ) | 6,995 | |||||||||||||
Comprehensive income (loss) | $ | (29,212 | ) | $ | (152,237 | ) |
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2021 | 2021 | |||||||||||||||
Cash provided by (used in): | ||||||||||||||||
Operations: | ||||||||||||||||
Net earnings (loss) | $ | (38,032 | ) | $ | (150,050 | ) | ||||||||||
Adjustments for: | ||||||||||||||||
Long-term compensation plans | 7,887 | 28,688 | ||||||||||||||
Depreciation and amortization | 69,431 | 211,148 | ||||||||||||||
Gain on asset disposals | (3,261 | ) | (6,224 | ) | ||||||||||||
Foreign exchange | 415 | 1,437 | ||||||||||||||
Finance charges | 20,639 | 70,783 | ||||||||||||||
Income taxes | (3,506 | ) | (6,063 | ) | ||||||||||||
Other | 2 | (562 | ) | |||||||||||||
Gain on investments and other assets | (327 | ) | (327 | ) | ||||||||||||
Loss on repurchase of unsecured senior notes | – | 9,520 | ||||||||||||||
Income taxes paid | (1,134 | ) | (5,200 | ) | ||||||||||||
Income taxes recovered | 44 | 47 | ||||||||||||||
Interest paid | (18,804 | ) | (63,982 | ) | ||||||||||||
Interest received | 171 | 347 | ||||||||||||||
Funds provided by operations | 33,525 | 89,562 | ||||||||||||||
Changes in non-cash working capital balances | (11,654 | ) | (10,050 | ) | ||||||||||||
21,871 | 79,512 | |||||||||||||||
Investments: | ||||||||||||||||
Purchase of property, plant and equipment | (19,500 | ) | (48,191 | ) | ||||||||||||
Proceeds on sale of property, plant and equipment | 4,476 | 10,390 | ||||||||||||||
Business acquisitions | – | – | ||||||||||||||
Purchase of investments and other assets | (3,000 | ) | (3,000 | ) | ||||||||||||
Changes in non-cash working capital balances | 500 | 3,213 | ||||||||||||||
(17,524 | ) | (37,588 | ) | |||||||||||||
Financing: | ||||||||||||||||
Issuance of long-term debt | – | 696,341 | ||||||||||||||
Repayments of long-term debt | (8,209 | ) | (769,668 | ) | ||||||||||||
Repurchase of share capital | – | (4,294 | ) | |||||||||||||
Issuance of common shares on the exercise of options | – | – | ||||||||||||||
Debt issuance costs | 344 | (9,450 | ) | |||||||||||||
Debt amendment fees | (3 | ) | (913 | ) | ||||||||||||
Lease payments | (1,633 | ) | (4,963 | ) | ||||||||||||
Changes in non-cash working capital balances | (1,829 | ) | – | |||||||||||||
(11,330 | ) | (92,947 | ) | |||||||||||||
Effect of exchange rate changes on cash | 642 | (653 | ) | |||||||||||||
Decrease in cash | (6,341 | ) | (51,676 | ) | ||||||||||||
Cash, beginning of period | 63,437 | 108,772 | ||||||||||||||
Cash, end of period | $ | 57,096 | $ | 57,096 |
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED)
Shareholders’ Capital | Contributed Surplus | Accumulated Other Comprehensive Income | Deficit | Total Equity | ||||||||||||||||
Balance at January 1, 2022 | $ | 2,281,444 | $ | 76,311 | $ | 134,780 | $ | (1,266,980 | ) | $ | 1,225,555 | |||||||||
Net loss for the period | – | – | – | (37,776 | ) | (37,776 | ) | |||||||||||||
Other comprehensive income for the period | – | – | 34,355 | – | 34,355 | |||||||||||||||
Share options exercised | 8,843 | (2,681 | ) | – | – | 6,162 | ||||||||||||||
Share repurchases | (10,010 | ) | – | – | – | (10,010 | ) | |||||||||||||
Share-based compensation reclassification | 14,083 | (219 | ) | – | – | 13,864 | ||||||||||||||
Share-based compensation expense | – | 646 | – | – | 646 | |||||||||||||||
Shareholders’ Capital | Contributed Surplus | Accumulated Other Comprehensive Income | Deficit | Total Equity | ||||||||||||||||
Balance at January 1, 2021 | $ | 2,285,738 | $ | 72,915 | $ | 137,581 | $ | (1,089,594 | ) | $ | 1,406,640 | |||||||||
Net loss for the period | – | – | – | (150,050 | ) | (150,050 | ) | |||||||||||||
Other comprehensive loss for the period | – | – | (2,187 | ) | – | (2,187 | ) | |||||||||||||
Share repurchases | (4,294 | ) | – | – | – | (4,294 | ) | |||||||||||||
Share-based compensation reclassification | – | (2,349 | ) | – | – | (2,349 | ) | |||||||||||||
Share-based compensation expense | – | 6,187 | – | – | 6,187 | |||||||||||||||
Balance at September 30, 2021 | $ | 2,281,444 | $ | 76,753 | $ | 135,394 | $ | (1,239,644 | ) | $ | 1,253,947 |
THIRD QUARTER RESULTS CONFERENCE CALL AND WEBCAST
Precision Drilling Corporation has scheduled a conference call and webcast to begin promptly at 12:00 noon MT (2:00 p.m. ET) on Thursday, October 27, 2022. To participate in the live call please register at the URL link below:
https://register.vevent.com/register/BI5a6a8b62910a4946a1aa06b35a57db87
This link replaces the dial-in details that were included in past releases. Once registered, you will receive a dial-in number and a unique PIN, which will allow you to ask questions.
An archived version of the webcast will be available through the webcast on-demand 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. Additionally, Precision offers well service rigs, camps and rental equipment all backed by a comprehensive mix of technical support services and skilled, experienced personnel.
Precision is headquartered in Calgary, Alberta, Canada and is listed on the Toronto Stock Exchange under the trading symbol “PD” and on the New York Stock Exchange under the trading symbol “PDS.”
For further information, please contact:
Lavonne Zdunich, CPA, CA Director, Investor Relations 403.716.4500
800, 525 – 8th Avenue S.W. Calgary, Alberta, Canada T2P 1G1 Website: www.precisiondrilling.com
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COMMENTS
The deadline to submit the Election Forms to Precision Drilling Corporation is March 6, 2024. Precision Drilling Corporation ("Precision") completed its acquisition of CWC Energy Services Corp. ("CWC") on November 7, 2023 pursuant to a Plan of Arrangement (the "Arrangement"). Holders of common shares of CWC received Precision common ...
Virtual Guide. 4/25/2024 02:00 PM Eastern. Precision Drilling Corporation 2024 First Quarter Results Conference Call and Webcast. Listen to the Webcast. 2/6/2024 12:00 PM Mountain. Precision Drilling Corporation 2023 Fourth Quarter And Year-End Results Conference Call and Webcast. Listen to the Webcast. 10/26/2023 02:00 PM Eastern.
JUNE BALANCE SHEET UPDATE. Precision priced a US$400 million senior notes offering on June 2, 2021, closed on June 15, 2021. 7.5 year note with coupon of 67/8 %, maturing January 2029. Use of proceeds to refinance existing senior notes. 7.75% notes due 2023: US$286 million. 5.25% notes due 2024: US$263 million.
1. 1500 HP TDS -11 Top Drive 25,000' + ft Racking Capacity AlphaAutomation, AlphaApps & AlphaAnalytics Drilling Equipment Control System High Speed Downhole Data "Omni-pad" Walking System Transfer Tank Two Speed Drawworks Directional Guidance System (3) 1,600 HP 7,500 PSI Pumps (4) CAT 3512 Gensets Integrated Power Management System ...
CALGARY, Alberta, April 02, 2024 — Precision Drilling Corporation (Precision) intends to release its 2024 first quarter results before the market opens on Thursday, April 25, 2024, and has scheduled a conference call to begin at 12:00 noon MT (2:00 p.m. ET) on the same day.To participate in the conference call please register at the URL link below.
August 2023 Investor Presentation. 2. FORWARD-LOOKING STATEMENT. ... 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, ... reducing or limiting their drilling budgets; the impact of the COVID-19 ...
Precision Drilling Profile. Precision is a leading provider of safe and High Performance, High Value services to the oil and gas industry. Precision provides customers with access to an extensive fleet of contract drilling rigs, well service, camps, rental equipment, and water treatment units backed by a comprehensive mix of technical support services and skilled, experienced personnel.
Inclusive of 2021 repayments ($665 million debt reduction since 2018) Sustainable fixed cost reductions drive operational leverage. 2021 G&A (ex. SBC) remained near $55 million as activity increases. 2H 2021 Activity was 31% higher than 1H 2021. At year end 2021 activity levels, $100/day margin increases ≈ $4.5 million EBITDA annually.
Precision has a presence in every major unconventional oil and gas basin in the U.S. Achieved average market share of approximately 9% in 2021. Operates fleet of 104 drilling rigs, including 68 AC Triple rigs. Benefit from geographic scale and operating leverage. Precision's AC Triple utilization is expected to exceed 80% in Q2 2022.
Montney - one of the most economic and active plays in North America supporting condensate supply for oil sands production and natural gas supply for LNG Canada. West Coast LNG - up to ~7 bcf/d2 of potential new export capacity over next decade; including phase 1 LNG Canada 2.1 bcf/d with start-up operations to begin in 2024.
Precision Drilling Inc is a Canada-based drilling company. The Company is engaged in the exploration and production of oil and natural gas. Its services include North American drilling, international drilling, oilfield equipment rentals, camp & catering services. ... Precision Drilling : September 2023 Investor Presentation. Best financial ...
2022 debt reduction target of $75 million. Robust cash flow outlook for 2023-2024. Our North American drilling activity was up 27% in Q3 vs Q3/21 . U.S. has 61 rigs active, with additional activations planned before year end. In Canada, ~75 rigs active with additional activations expected in Q1/23.
Precision's President and CEO, Kevin Neveu, stated: "Precision continued to deliver strong results in the fourth quarter, generating revenue of $507 million, Adjusted EBITDA of $151 million and net earnings of $147 million. This concluded one of our most profitable years in the past decade and allowed us to exceed our cash flow expectations.
Precision's 2020 Strategic Priorities - Creating Shareholder Value. Generate strong free cash flow and utilize $100 million to $150 million to reduce debt in 2020. Demonstrate operational excellence in all aspects of our business including operational, financial and ESG (environmental, social and governance) metrics. 3.
AXIAL PRECISION MANUFACTURING, INC. is an Active company incorporated on November 7, 2023 with the registered number P23000078623. This Domestic for Profit company is located at 2300 31ST STREET NORTH, SAINT PETERSBURG, FL, 33713, UN and has been running for one year. There are currently two active principals.
BRITISH SAINT PETERSBURG. The first ship with the British arrived in Petersburg in 1704. It was Peter the First who came to Petersburg on that ship as a skipper…. THE FIRST FAMOUS. Томас Гордон - командир Кронштадтского порта Роберт Эрскин - главный лейб-медик Петра
Precision remains on track to reduce debt between $150 million and $200 million in 2024 and return between 25% and 35% of free cash flow to shareholders in 2024. Operational Highlights. Canada averaged 73 active drilling rigs, compared to 69 for the first quarter of 2023.
The manufacturing group at EDM Intelligent Solutions (EDMIS) is renowned for precision electrical discharge machining (EDM). Utilizing industry leading CNC controlled EDM machinery and technologies, we produce high-quality products with fine details and tolerances as tight as 1 micron. Our expertise in enhanced machining parameters creates ...
Annual Filings. 2023 Annual Information Form. 2023 Annual Report. 2024 Management Information Circular. Form of Proxy. Notice-and-Access Notification to Beneficial Shareholders. Notice-and-Access Notification to Registered Shareholders. Virtual AGM Guide. 2022 Annual Report.
Specialties: At Precision Health Solutions, we share a clear purpose; helping people on their path to better health. Through our clinical lab, field partners and our clinicians, we are pioneering a bold, new approach to processing lab specimens and a true focus on the patients we serve Established in 2019. We founded the company in 2019 when we realized that there was an unmet need in the ...
JUNE 2021 PRECISION MARKET UPDATE. 4. Current drilling activity includes approximately 40 active drilling rigs in the U.S., 35 in Canada and 6 internationally. Canada drilling activity outlook for second half stronger than prior guidance. Visibility for 45 to 50 active rigs in early July Customer bookings point to Q3 and Q4 active rigs double ...
"Precision's drilling activity continues to increase in North America as our customers remain committed to their drilling plans, despite volatility in oil and natural gas prices. In the U.S., we averaged 57 active drilling rigs during the third quarter and are currently operating 61 rigs, a 20% increase from the beginning of the year.