CALGARY, Alberta, July 27, 2023 (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 and Working Capital. These terms do not have standardized meanings prescribed under International Financial Reporting Standards (IFRS) and may not be comparable to similar measures used by other companies, see “Financial Measures and Ratios” later in this news release.
Precision Drilling announces 2023 second quarter financial results:
Precision’s President and CEO, Kevin Neveu, stated:
“We are pleased with our second quarter financial results, with revenue and Adjusted EBITDA of $426 million and $142 million, respectively, and generating $1.97 of net earnings on a per share basis. As a result of Precision’s strong operating cash flows combined with focused spending controls and efficient cash management, we delivered outstanding funds from operations. We have reduced our total debt by $100 million since the beginning of the year and are well on our way to achieving our 2023 debt reduction target while continuing to allocate capital to shareholders through share repurchases.
“Our Canadian business continues to improve with healthy spring break-up activity due to increasing year-round pad drilling in the Montney and Clearwater formations. With imminent additions to hydrocarbon pipeline takeaway capacity, the outlook is certainly encouraging. Our Canadian fleet is in high demand with 58 rigs running, including all of our Super Triples and pad capable Super Singles. We expect customer demand for our Super Triple and Super Single pad capable fleets will continue to exceed supply well into 2024.
“In the U.S. we currently have 43 active rigs and two rigs on paid standby. Firm oil prices are supporting an improved customer outlook as demand for our Super Triple rigs is increasing and demonstrated by securing contracts for several rig reactivations later this quarter and into 2024. We believe long-term natural gas fundamentals are robust, despite short-term uncertainty experienced this year, as several Gulf Coast LNG export trains are due to come on stream in late 2024 and 2025.
“In the Middle East, we currently have six rigs running and expect to have eight rigs active before the end of the third quarter. With two new rig activations this year, our international operations are expected to provide incremental, stable, and predictable cash flow in 2024.
“Our High Performance, High Value services and our Super Series fleet, coupled with our Alpha™ digital technologies and EverGreen™ suite of environmental solutions, continue to underpin Precision’s earnings power. While our industry is susceptible to commodity price volatility, short-term industry cyclicality does not distract us from our business model or annual priorities. This includes our cash flow and debt reduction targets, which we have consistently met or exceeded, independent of the business cycle, and will continue to do so.
“I am confident that by remaining focused on our strategic priorities and what we can control, Precision will deliver increased shareholder value,” concluded Mr. Neveu.
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) | 2023 | 2022 | % Change | 2023 | 2022 | % Change | |||||||||||||||||
Revenue | 425,622 | 326,016 | 30.6 | 984,229 | 677,355 | 45.3 | |||||||||||||||||
Adjusted EBITDA(1) | 142,093 | 64,099 | 121.7 | 345,312 | 100,954 | 242.0 | |||||||||||||||||
Net earnings (loss) | 26,900 | (24,611 | ) | (209.3 | ) | 122,730 | (68,455 | ) | (279.3 | ) | |||||||||||||
Cash provided by (used in) operations | 213,460 | 135,174 | 57.9 | 241,816 | 69,880 | 246.0 | |||||||||||||||||
Funds provided by operations(1) | 136,959 | 60,373 | 126.9 | 296,612 | 90,328 | 228.4 | |||||||||||||||||
Cash used in investing activities | 44,062 | 36,782 | 19.8 | 122,879 | 67,125 | 83.1 | |||||||||||||||||
Capital spending by spend category(1) | |||||||||||||||||||||||
Expansion and upgrade | 9,615 | 15,530 | (38.1 | ) | 25,960 | 25,145 | 3.2 | ||||||||||||||||
Maintenance and infrastructure | 35,099 | 23,906 | 46.8 | 69,549 | 50,693 | 37.2 | |||||||||||||||||
Proceeds on sale | (6,261 | ) | (6,849 | ) | (8.6 | ) | (14,026 | ) | (9,696 | ) | 44.7 | ||||||||||||
Net capital spending(1) | 38,453 | 32,587 | 18.0 | 81,483 | 66,142 | 23.2 | |||||||||||||||||
Net earnings (loss) per share: | |||||||||||||||||||||||
Basic | 1.97 | (1.81 | ) | (208.8 | ) | 8.98 | (5.06 | ) | (277.5 | ) | |||||||||||||
Diluted | 1.63 | (1.81 | ) | (190.1 | ) | 7.22 | (5.06 | ) | (242.7 | ) |
(1) See “FINANCIAL MEASURES AND RATIOS.”
Operating Highlights
For the three months ended June 30, | For the six months ended June 30, | ||||||||||||||||||||||
2023 | 2022 | % Change | 2023 | 2022 | % Change | ||||||||||||||||||
Contract drilling rig fleet | 225 | 226 | (0.4 | ) | 225 | 226 | (0.4 | ) | |||||||||||||||
Drilling rig utilization days: | |||||||||||||||||||||||
U.S. | 4,626 | 5,037 | (8.2 | ) | 10,008 | 9,627 | 4.0 | ||||||||||||||||
Canada | 3,795 | 3,376 | 12.4 | 9,963 | 9,029 | 10.3 | |||||||||||||||||
International | 452 | 546 | (17.2 | ) | 885 | 1,086 | (18.5 | ) | |||||||||||||||
Revenue per utilization day: | |||||||||||||||||||||||
U.S.(US$) | 35,576 | 25,547 | 39.3 | 35,247 | 24,951 | 41.3 | |||||||||||||||||
Canada(Cdn$) | 33,535 | 26,746 | 25.4 | 32,773 | 25,192 | 30.1 | |||||||||||||||||
International (US$) | 50,551 | 54,612 | (7.4 | ) | 51,139 | 52,436 | (2.5 | ) | |||||||||||||||
Operating costs per utilization day: | |||||||||||||||||||||||
U.S.(US$) | 18,963 | 18,864 | 0.5 | 19,667 | 18,628 | 5.6 | |||||||||||||||||
Canada(Cdn$) | 21,332 | 19,010 | 12.2 | 19,731 | 16,749 | 17.8 | |||||||||||||||||
Service rig fleet | 119 | 93 | 28.0 | 119 | 93 | 28.0 | |||||||||||||||||
Service rig operating hours | 39,709 | 30,389 | 30.7 | 98,050 | 68,654 | 42.8 |
Financial Position
(Stated in thousands of Canadian dollars, except ratios) | June 30, 2023 | December 31, 2022 | |||||
Working capital(1) | 134,839 | 60,641 | |||||
Cash | 22,919 | 21,587 | |||||
Long-term debt | 964,103 | 1,085,970 | |||||
Total long-term financial liabilities | 1,042,188 | 1,206,619 | |||||
Total assets | 2,732,694 | 2,876,123 | |||||
Long-term debt to long-term debt plus equity ratio (1) | 0.42 | 0.47 |
(1) See “FINANCIAL MEASURES AND RATIOS.”
Summary for the three months ended June 30, 2023:
Summary for the six months ended June 30, 2023:
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 2023 strategic priorities and the progress made during the second quarter are as follows:
OUTLOOK
Energy industry fundamentals continue to support drilling activity for oil and natural gas despite broad economic concerns and geopolitical instability. Oil prices are supported by demand growth reemerging in China, while OPEC cutting production quotas and years of under investment and capital discipline by producers have limited supply growth. We therefore expect drilling activity to improve in the second half of the year as customers seek to generate appropriate investment returns, maintain production levels and replenish inventories. Natural gas has demonstrated short-term price weaknesses, however, this lower-carbon energy source is becoming increasingly favorable as countries around the world stress the importance of sustainability, decarbonization and energy security. With demand for Liquified Natural Gas (LNG) exports growing and the next wave of North America LNG projects expected to begin coming online in 2025 (including LNG Canada), we anticipate a sustained period of elevated natural gas drilling activity in both the U.S. and Canada.
In Canada, Precision’s activity is expected to continue to surpass 2022 levels, supported by imminent hydrocarbon export capacity increases with the Trans Mountain oil pipeline and the Coastal GasLink pipeline, each expected to begin operations in early 2024. Northwestern Alberta and northeastern British Columbia natural gas developments are prime beneficiaries of the LNG Canada project and the January 2023 agreement between the British Columbia government and the Blueberry River First Nation has facilitated a significant increase in 2023 drilling license approvals, which should lead to more drilling activity in the region. Large pad drilling programs are ideally suited for Super Triple drilling rigs, resulting in strong customer interest for these rigs for the next several years. Our Super Triple fleet is currently fully utilized and we expect customer demand to continue to exceed supply, driving higher daily operating margins and longer-term take-or-pay contracts.
On the heavy oil side, we expect activity levels to remain strong as Canadian producers are benefitting from a favorable U.S. exchange rate and a significantly reduced heavy oil differential. Precision’s Super Single rigs are well suited for long-term conventional heavy oil development in the oil sands and Clearwater formation. Looking at the second half of the year, we expect our Super Single pad capable rigs to be fully utilized, driving higher day rates.
In the U.S., drilling activity had been increasing since mid-2020 but began to weaken in early 2023 due to lower natural gas prices and uncertain oil prices. For the first six months of the year, the Baker Hughes’ U.S. land rig count declined 14%. If oil prices remain stable around today’s level, we expect demand to improve in the second half of the year as customers modestly increase rig counts to maintain production. Over the past few months, we have signed a number of contracts for rig reactivations later this year and into 2024.
Our Alpha™ technologies and EverGreen™ suite of environmental solutions continue to gain momentum and have become key competitive differentiators for our rigs as these offerings deliver exceptional value to our customers by reducing risks, well construction costs and carbon footprint. We currently have 10 EverGreen™ BESS deployed in the field and have commitments for three additional deployments in the second half of the year. Precision’s EverGreen™ BESS has proven to be an economically viable emissions reduction solution for our customers and we anticipate continued demand for additional deployments through the remainder of the year. In April, we expanded our partnership with CleanDesign, a key supplier of EverGreen™ BESS, through a $5 million equity investment commitment. This partnership will ensure we can meet the expected demand for BESS and is aligned with our overall emissions reduction strategy.
Internationally, we currently have six rigs working on term contracts, three in Kuwait and three in the Kingdom of Saudi Arabia, increasing to eight before the end of the third quarter. These eight rig contracts provide stable and predictable cash flow and represent over $700 million in backlog revenue that stretches into 2028. We continue to bid our remaining idle rigs within the region and remain optimistic about our ability to secure rig reactivations.
With the successful acquisition of High Arctic’s well servicing business in July 2022, Precision is now the leading provider of high-quality and reliable well services in Canada and the outlook for this business is positive. Customer demand for maintenance and completion activity is expected to exceed staffed service rigs available, supporting healthy activity and strong pricing into the foreseeable future.
Contracts
The following chart outlines the average number of drilling rigs under term contract by quarter as at July 26, 2023. For those quarters ending after June 30, 2023, 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.
Average for the quarter ended 2022 | Average for the quarter ended 2023 | |||||||||||||||||||||||||
Mar. 31 | June 30 | Sept. 30 | Dec. 31 | Mar. 31 | June 30 | Sept. 30 | Dec. 31 | |||||||||||||||||||
Average rigs under term contract as of July 26, 2023: | ||||||||||||||||||||||||||
U.S. | 27 | 29 | 31 | 35 | 40 | 37 | 31 | 27 | ||||||||||||||||||
Canada | 6 | 8 | 10 | 16 | 19 | 23 | 29 | 25 | ||||||||||||||||||
International | 6 | 6 | 6 | 6 | 4 | 5 | 7 | 8 | ||||||||||||||||||
Total | 39 | 43 | 47 | 57 | 63 | 65 | 67 | 60 |
The following chart outlines the average number of drilling rigs that we had under term contract for 2022 and the average number of rigs we have under term contract as at July 26, 2023.
Average for the year ended | |||||||
2022 | 2023 | ||||||
Average rigs under term contract as of July 26, 2023: | |||||||
U.S. | 31 | 34 | |||||
Canada | 10 | 24 | |||||
International | 6 | 6 | |||||
Total | 47 | 64 |
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. Internationally, we expect to have eight rigs under long-term contract beginning in the second half of 2023.
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 2022 | Average for the quarter ended 2023 | ||||||||||||||||||||||
Mar. 31 | June 30 | Sept. 30 | Dec. 31 | Mar. 31 | June 30 | ||||||||||||||||||
Average Precision active rig count: | |||||||||||||||||||||||
U.S. | 51 | 55 | 57 | 60 | 60 | 51 | |||||||||||||||||
Canada | 63 | 37 | 59 | 66 | 69 | 42 | |||||||||||||||||
International | 6 | 6 | 6 | 6 | 5 | 5 | |||||||||||||||||
Total | 120 | 98 | 122 | 132 | 134 | 98 |
According to industry sources, as at July 26, 2023, the U.S. active land drilling rig count has decreased 12% from the same point last year while the Canadian active land drilling rig count has increased 4%. To date in 2023, approximately 79% of the U.S. industry’s active rigs and 59% of the Canadian industry’s active rigs were drilling for oil targets, compared with 79% for the U.S. and 60% for Canada at the same time last year.
Capital Spending and Free Cash Flow Allocation
We remain committed to disciplined cash flow management, capital spending and returning capital to shareholders. Capital spending in 2023 is expected to be $195 million and by spend category includes $145 million for sustaining, infrastructure and intangibles and $50 million for expansion and upgrades. We expect that the $195 million will be split as follows: $181 million in the Contract Drilling Services segment, $11 million in the Completion and Production Services segment, and $3 million in the Corporate segment. Capital spending could increase this year with stronger demand for our services and customer contracted rig upgrades. As at June 30, 2023, Precision had capital commitments of approximately $201 million with payments expected through 2025.
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.
For the three months ended June 30, | For the six months ended June 30, | ||||||||||||||||||||||
(Stated in thousands of Canadian dollars) | 2023 | 2022 | % Change | 2023 | 2022 | % Change | |||||||||||||||||
Revenue: | |||||||||||||||||||||||
Contract Drilling Services | 380,958 | 294,299 | 29.4 | 867,034 | 608,444 | 42.5 | |||||||||||||||||
Completion and Production Services | 46,161 | 33,041 | 39.7 | 120,684 | 71,279 | 69.3 | |||||||||||||||||
Inter-segment eliminations | (1,497 | ) | (1,324 | ) | 13.1 | (3,489 | ) | (2,368 | ) | 47.3 | |||||||||||||
425,622 | 326,016 | 30.6 | 984,229 | 677,355 | 45.3 | ||||||||||||||||||
Adjusted EBITDA:(1) | |||||||||||||||||||||||
Contract Drilling Services | 147,478 | 70,429 | 109.4 | 336,601 | 141,603 | 137.7 | |||||||||||||||||
Completion and Production Services | 7,507 | 4,839 | 55.1 | 24,913 | 11,378 | 119.0 | |||||||||||||||||
Corporate and Other | (12,892 | ) | (11,169 | ) | 15.4 | (16,202 | ) | (52,027 | ) | (68.9 | ) | ||||||||||||
142,093 | 64,099 | 121.7 | 345,312 | 100,954 | 242.0 |
(1) See “FINANCIAL MEASURES AND RATIOS.”
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) | 2023 | 2022 | % Change | 2023 | 2022 | % Change | |||||||||||||||||
Revenue | 380,958 | 294,299 | 29.4 | 867,034 | 608,444 | 42.5 | |||||||||||||||||
Expenses: | |||||||||||||||||||||||
Operating | 224,746 | 215,676 | 4.2 | 511,813 | 445,727 | 14.8 | |||||||||||||||||
General and administrative | 8,734 | 8,194 | 6.6 | 18,620 | 21,114 | (11.8 | ) | ||||||||||||||||
Adjusted EBITDA(1) | 147,478 | 70,429 | 109.4 | 336,601 | 141,603 | 137.7 | |||||||||||||||||
Adjusted EBITDA as a percentage of revenue(1) | 38.7 | % | 23.9 | % | 38.8 | % | 23.3 | % |
(1) See “FINANCIAL MEASURES AND RATIOS.”
United States onshore drilling statistics:(1) | 2023 | 2022 | |||||||||||||
Precision | Industry(2) | Precision | Industry(2) | ||||||||||||
Average number of active land rigs for quarters ended: | |||||||||||||||
March 31 | 60 | 744 | 51 | 603 | |||||||||||
June 30 | 51 | 700 | 55 | 687 | |||||||||||
Year to date average | 55 | 722 | 53 | 645 |
(1) United States lower 48 operations only.(2) Baker Hughes rig counts.
Canadian onshore drilling statistics:(1) | 2023 | 2022 | |||||||||||||
Precision | Industry(2) | Precision | Industry(2) | ||||||||||||
Average number of active land rigs for quarters ended: | |||||||||||||||
March 31 | 69 | 221 | 63 | 205 | |||||||||||
June 30 | 42 | 117 | 37 | 113 | |||||||||||
Year to date average | 55 | 169 | 50 | 159 |
(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) | 2023 | 2022 | % Change | 2023 | 2022 | ||||||||||||||||||
Revenue | 46,161 | 33,041 | 39.7 | 120,684 | 71,279 | 69.3 | |||||||||||||||||
Expenses: | |||||||||||||||||||||||
Operating | 36,921 | 26,200 | 40.9 | 91,713 | 56,167 | 63.3 | |||||||||||||||||
General and administrative | 1,733 | 2,002 | (13.4 | ) | 4,058 | 3,734 | 8.7 | ||||||||||||||||
Adjusted EBITDA(1) | 7,507 | 4,839 | 55.1 | 24,913 | 11,378 | 119.0 | |||||||||||||||||
Adjusted EBITDA as a percentage of revenue(1) | 16.3 | % | 14.6 | % | 20.6 | % | 16.0 | % | |||||||||||||||
Well servicing statistics: | |||||||||||||||||||||||
Number of service rigs (end of period) | 119 | 93 | 28.0 | 119 | 93 | 28.0 | |||||||||||||||||
Service rig operating hours | 39,709 | 30,389 | 30.7 | 98,050 | 68,654 | 42.8 | |||||||||||||||||
Service rig operating hour utilization | 37 | % | 36 | % | 46 | % | 41 | % |
(1) See “FINANCIAL MEASURES AND RATIOS.”
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 $13 million as compared with $11 million in 2022. Our lower current quarter Adjusted EBITDA was impacted by higher translated U.S. dollar-denominated costs, partially offset by lower share-based compensation charges.
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 2022 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) | 2023 | 2022 | 2023 | 2022 | |||||||||||
Cash settled share-based incentive plans | 2,081 | 5,048 | (10,014 | ) | 52,259 | ||||||||||
Equity settled share-based incentive plans | 653 | — | 1,133 | 427 | |||||||||||
Total share-based incentive compensation plan expense (recovery) | 2,734 | 5,048 | (8,881 | ) | 52,686 | ||||||||||
Allocated: | |||||||||||||||
Operating | 923 | 1,852 | (960 | ) | 12,772 | ||||||||||
General and Administrative | 1,811 | 3,196 | (7,921 | ) | 39,914 | ||||||||||
2,734 | 5,048 | (8,881 | ) | 52,686 |
Cash settled share-based compensation expense for the quarter was $2 million as compared with $5 million in 2022. The lower expense in 2023 was primarily due to the continued vesting fewer outstanding cash-settled units, partially offset by our better share price performance as compared with 2022.
During the first quarter of 2023, we issued Executive Restricted Share Units (Executive RSUs) to certain senior executives. Accordingly, our equity-settled share-based compensation expense for the quarter was $1 million as compared with nil in 2022.
As at June 30, 2023, 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
Finance charges were $21 million, consistent with 2022. Despite our lower balance of long-term debt, our finance charges were negatively impacted by the weakening of the Canadian dollar on our U.S. dollar-denominated interest. Interest charges on our U.S. dollar-denominated long-term debt were US$14 million ($19 million) as compared with US$15 million ($19 million) in 2022.
Income Tax
Income tax expense for the quarter was $19 million as compared with $4 million in 2022. During the second quarter, we continued to not recognize deferred tax assets on certain Canadian and international operating losses.
LIQUIDITY AND CAPITAL RESOURCES
Liquidity
Amount | Availability | Used for | Maturity | |||
Senior Credit Facility (secured) | ||||||
US$447 million (extendible, revolving term credit facility with US$353 million accordion feature) | Nil drawn and US$56 million in outstanding letters of credit | General corporate purposes | June 18, 2025 | |||
Real estate credit facilities (secured) | ||||||
US$9 million | Fully drawn | General corporate purposes | November 19, 2025 | |||
$17 million | Fully drawn | General corporate purposes | March 16, 2026 | |||
Operating facilities (secured) | ||||||
$40 million | Undrawn, except $20 million in outstanding letters of credit | Letters of credit and general corporate purposes | ||||
US$15 million | Undrawn | Short-term working capital requirements | ||||
Demand letter of credit facility (secured) | ||||||
US$40 million | Undrawn, except US$21 million in outstanding letters of credit | Letters of credit | ||||
Unsecured senior notes (unsecured) | ||||||
US$318 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 |
As at June 30, 2023, we had $979 million outstanding under our Senior Credit Facility, Real Estate Credit Facilities and unsecured senior notes as compared with $1,103 million at December 31, 2022. The current blended cash interest cost of our debt is approximately 7.0%.
During the quarter, we repaid all amounts borrowed under our Senior Credit Facility and repurchased and cancelled US$30 million principal amount of our 2026 unsecured senior notes.
During the quarter, S&P Global Ratings raised our issuer credit rating and rating on our Unsecured Senior Notes to ‘B+’ from ‘B’. In addition, Moody’s Investor Service upgraded Precision’s corporate rating to B1 from B2 and unsecured senior notes rating to B2 from B3.
Senior Credit Facility
Our Senior Credit Facility requires that we comply with certain covenants including a leverage ratio of consolidated senior debt to consolidated Covenant EBITDA of less than 2.5:1. For purposes of calculating the leverage ratio, consolidated senior debt only includes secured indebtedness. The Senior Credit Facility limits the redemption and repurchase of junior debt subject to a pro forma senior net leverage covenant test of less than or equal to 1.75:1.
During the quarter, we agreed with the lenders of our Senior Credit Facility to remove certain non-extending lenders from our facility, thereby reducing the total commitment from US$500 million to US$447 million.
The Senior Credit Facility matures on June 18, 2025.
Covenants
As at June 30, 2023, we were in compliance with the covenants of our Senior Credit Facility and Real Estate Credit Facilities.
Covenant | At June 30, 2023 | ||||
Senior Credit Facility | |||||
Consolidated senior debt to consolidated covenant EBITDA(1)h | <2.50 | 0.05 | |||
Consolidated covenant EBITDA to consolidated interest expense | > 2.50 | 6.30 | |||
Real Estate Credit Facilities | |||||
Consolidated covenant EBITDA to consolidated interest expense | > 2.50 | 6.30 |
(1) For purposes of calculating the leverage ratio consolidated senior debt only includes secured indebtedness.
Average shares outstanding
The following tables reconcile net earnings (loss) and the weighted average shares outstanding used in computing basic and diluted net earnings (loss) per share:
For the three months ended June 30, | For the six months ended June 30, | ||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
Net earnings (loss) - basic | 26,900 | (24,611 | ) | 122,730 | (68,455 | ) | |||||||||
Effect of share options and other equity compensation plans | (2,902 | ) | — | (15,469 | ) | — | |||||||||
Net earnings (loss) - diluted | 23,998 | (24,611 | ) | 107,261 | (68,455 | ) |
For the three months ended June 30, | For the six months ended June 30, | ||||||||||||||
(Stated in thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||
Weighted average shares outstanding – basic | 13,672 | 13,588 | 13,661 | 13,533 | |||||||||||
Effect of share options and other equity compensation plans | 1,075 | — | 1,196 | — | |||||||||||
Weighted average shares outstanding – diluted | 14,747 | 13,588 | 14,857 | 13,533 |
QUARTERLY FINANCIAL SUMMARY
(Stated in thousands of Canadian dollars, except per share amounts) | 2022 | 2023 | ||||||||||||||
Quarters ended | September 30 | December 31 | March 31 | June 30 | ||||||||||||
Revenue | 429,335 | 510,504 | 558,607 | 425,622 | ||||||||||||
Adjusted EBITDA(1) | 119,561 | 91,090 | 203,219 | 142,093 | ||||||||||||
Net earnings (loss) | 30,679 | 3,483 | 95,830 | 26,900 | ||||||||||||
Net earnings (loss) per basic share | 2.26 | 0.27 | 7.02 | 1.97 | ||||||||||||
Net earnings (loss) per diluted share | 2.03 | 0.27 | 5.57 | 1.63 | ||||||||||||
Funds provided by operations(1) | 81,327 | 111,339 | 159,653 | 136,959 | ||||||||||||
Cash provided by operations | 8,142 | 159,082 | 28,356 | 213,460 |
(Stated in thousands of Canadian dollars, except per share amounts) | 2021 | 2022 | ||||||||||||||
Quarters ended | September 30 | December 31 | March 31 | June 30 | ||||||||||||
Revenue | 253,813 | 295,202 | 351,339 | 326,016 | ||||||||||||
Adjusted EBITDA(1) | 45,408 | 63,881 | 36,855 | 64,099 | ||||||||||||
Net loss | (38,032 | ) | (27,336 | ) | (43,844 | ) | (24,611 | ) | ||||||||
Net loss per basic and diluted share | (2.86 | ) | (2.05 | ) | (3.25 | ) | (1.81 | ) | ||||||||
Funds provided by operations(1) | 33,525 | 62,681 | 29,955 | 60,373 | ||||||||||||
Cash provided by (used in) operations | 21,871 | 59,713 | (65,294 | ) | 135,174 |
(1) See “FINANCIAL MEASURES AND RATIOS.”
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 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 (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). |
For the three months ended June 30, | For the six months ended June 30, | ||||||||||||||
(Stated in thousands of Canadian dollars) | 2023 | 2022 | 2023 | 2022 | |||||||||||
Adjusted EBITDA by segment: | |||||||||||||||
Contract Drilling Services | 147,478 | 70,429 | 336,601 | 141,603 | |||||||||||
Completion and Production Services | 7,507 | 4,839 | 24,913 | 11,378 | |||||||||||
Corporate and Other | (12,892 | ) | (11,169 | ) | (16,202 | ) | (52,027 | ) | |||||||
Adjusted EBITDA | 142,093 | 64,099 | 345,312 | 100,954 | |||||||||||
Depreciation and amortization | 74,088 | 69,757 | 145,631 | 138,214 | |||||||||||
Gain on asset disposals | (3,872 | ) | (10,800 | ) | (13,148 | ) | (13,914 | ) | |||||||
Foreign exchange | (774 | ) | 536 | (1,257 | ) | 18 | |||||||||
Finance charges | 21,408 | 21,043 | 44,328 | 41,773 | |||||||||||
Gain on repurchase of unsecured notes | (100 | ) | — | (100 | ) | — | |||||||||
Loss (gain) on investments and other assets | 5,658 | 4,346 | 9,888 | (1,223 | ) | ||||||||||
Incomes taxes | 18,785 | 3,828 | 37,240 | 4,541 | |||||||||||
Net earnings (loss) | 26,900 | (24,611 | ) | 122,730 | (68,455 | ) |
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) | 2023 | 2022 | 2023 | 2022 | ||||||||||||
Capital spending by spend category | ||||||||||||||||
Expansion and upgrade | 9,615 | 15,530 | 25,960 | 25,145 | ||||||||||||
Maintenance, infrastructure and intangibles | 35,099 | 23,906 | 69,549 | 50,693 | ||||||||||||
44,714 | 39,436 | 95,509 | 75,838 | |||||||||||||
Proceeds on sale of property, plant and equipment | (6,261 | ) | (6,849 | ) | (14,026 | ) | (9,696 | ) | ||||||||
Net capital spending | 38,453 | 32,587 | 81,483 | 66,142 | ||||||||||||
Business acquisitions | — | — | 28,000 | — | ||||||||||||
Purchase of investments and other assets | 2,016 | 536 | 2,071 | 536 | ||||||||||||
Changes in non-cash working capital balances | 3,593 | 3,659 | 11,325 | 447 | ||||||||||||
Cash used in investing activities | 44,062 | 36,782 | 122,879 | 67,125 |
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) | 2023 | 2022 | |||||
Current assets | 413,091 | 470,670 | |||||
Current liabilities | 278,252 | 410,029 | |||||
Working capital | 134,839 | 60,641 |
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 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. |
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. |
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, 2022, 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)
(Stated in thousands of Canadian dollars) | June 30, 2023 | December 31, 2022 | ||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash | $ | 22,919 | $ | 21,587 | ||||
Accounts receivable | 353,505 | 413,925 | ||||||
Inventory | 36,667 | 35,158 | ||||||
Total current assets | 413,091 | 470,670 | ||||||
Non-current assets: | ||||||||
Income tax recoverable | 682 | 1,602 | ||||||
Deferred tax assets | 454 | 455 | ||||||
Property, plant and equipment | 2,224,106 | 2,303,338 | ||||||
Intangibles | 18,231 | 19,575 | ||||||
Right-of-use assets | 60,496 | 60,032 | ||||||
Investments and other assets | 15,634 | 20,451 | ||||||
Total non-current assets | 2,319,603 | 2,405,453 | ||||||
Total assets | $ | 2,732,694 | $ | 2,876,123 | ||||
LIABILITIES AND EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable and accrued liabilities | $ | 261,504 | $ | 392,053 | ||||
Income taxes payable | 1,623 | 2,991 | ||||||
Current portion of lease obligations | 12,859 | 12,698 | ||||||
Current portion of long-term debt | 2,266 | 2,287 | ||||||
Total current liabilities | 278,252 | 410,029 | ||||||
Non-current liabilities: | ||||||||
Share-based compensation | 17,483 | 60,133 | ||||||
Provisions and other | 7,149 | 7,538 | ||||||
Lease obligations | 53,453 | 52,978 | ||||||
Long-term debt | 964,103 | 1,085,970 | ||||||
Deferred tax liabilities | 63,576 | 28,946 | ||||||
Total non-current liabilities | 1,105,764 | 1,235,565 | ||||||
Shareholders’ equity: | ||||||||
Shareholders’ capital | 2,306,545 | 2,299,533 | ||||||
Contributed surplus | 73,688 | 72,555 | ||||||
Deficit | (1,178,543 | ) | (1,301,273 | ) | ||||
Accumulated other comprehensive income | 146,988 | 159,714 | ||||||
Total shareholders’ equity | 1,348,678 | 1,230,529 | ||||||
Total liabilities and shareholders’ equity | $ | 2,732,694 | $ | 2,876,123 |
CONDENSEDINTERIM 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) | 2023 | 2022 | 2023 | 2022 | ||||||||||||
Revenue | $ | 425,622 | $ | 326,016 | $ | 984,229 | $ | 677,355 | ||||||||
Expenses: | ||||||||||||||||
Operating | 260,170 | 240,552 | 600,037 | 499,526 | ||||||||||||
General and administrative | 23,359 | 21,365 | 38,880 | 76,875 | ||||||||||||
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 | 142,093 | 64,099 | 345,312 | 100,954 | ||||||||||||
Depreciation and amortization | 74,088 | 69,757 | 145,631 | 138,214 | ||||||||||||
Gain on asset disposals | (3,872 | ) | (10,800 | ) | (13,148 | ) | (13,914 | ) | ||||||||
Foreign exchange | (774 | ) | 536 | (1,257 | ) | 18 | ||||||||||
Finance charges | 21,408 | 21,043 | 44,328 | 41,773 | ||||||||||||
Gain on repurchase of unsecured senior notes | (100 | ) | — | (100 | ) | — | ||||||||||
Loss (gain) on investments and other assets | 5,658 | 4,346 | 9,888 | (1,223 | ) | |||||||||||
Earnings (loss) before income taxes | 45,685 | (20,783 | ) | 159,970 | (63,914 | ) | ||||||||||
Income taxes: | ||||||||||||||||
Current | 1,120 | 635 | 1,961 | 1,605 | ||||||||||||
Deferred | 17,665 | 3,193 | 35,279 | 2,936 | ||||||||||||
18,785 | 3,828 | 37,240 | 4,541 | |||||||||||||
Net earnings (loss) | $ | 26,900 | $ | (24,611 | ) | $ | 122,730 | $ | (68,455 | ) | ||||||
Net earnings (loss) per share: | ||||||||||||||||
Basic | $ | 1.97 | $ | (1.81 | ) | $ | 8.98 | $ | (5.06 | ) | ||||||
Diluted | $ | 1.63 | $ | (1.81 | ) | $ | 7.22 | $ | (5.06 | ) |
CONDENSEDINTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED)
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
(Stated in thousands of Canadian dollars) | 2023 | 2022 | 2023 | 2022 | ||||||||||||
Net earnings (loss) | $ | 26,900 | $ | (24,611 | ) | $ | 122,730 | $ | (68,455 | ) | ||||||
Unrealized gain (loss) on translation of assets and liabilities of operations denominated in foreign currency | (31,718 | ) | 44,638 | (35,858 | ) | 27,667 | ||||||||||
Foreign exchange gain (loss) on net investment hedge with U.S. denominated debt | 20,459 | (33,831 | ) | 23,132 | (21,063 | ) | ||||||||||
Comprehensive income (loss) | $ | 15,641 | $ | (13,804 | ) | $ | 110,004 | $ | (61,851 | ) |
CONDENSEDINTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
(Stated in thousands of Canadian dollars) | 2023 | 2022 | 2023 | 2022 | ||||||||||||
Cash provided by (used in): | ||||||||||||||||
Operations: | ||||||||||||||||
Net earnings (loss) | $ | 26,900 | $ | (24,611 | ) | $ | 122,730 | $ | (68,455 | ) | ||||||
Adjustments for: | ||||||||||||||||
Long-term compensation plans | 1,740 | 3,224 | (2,377 | ) | 34,436 | |||||||||||
Depreciation and amortization | 74,088 | 69,757 | 145,631 | 138,214 | ||||||||||||
Gain on asset disposals | (3,872 | ) | (10,800 | ) | (13,148 | ) | (13,914 | ) | ||||||||
Foreign exchange | (786 | ) | 422 | (1,288 | ) | 151 | ||||||||||
Finance charges | 21,408 | 21,043 | 44,328 | 41,773 | ||||||||||||
Income taxes | 18,785 | 3,828 | 37,240 | 4,541 | ||||||||||||
Other | (220 | ) | 275 | (220 | ) | 275 | ||||||||||
Loss (gain) on investments and other assets | 5,658 | 4,346 | 9,888 | (1,223 | ) | |||||||||||
Gain on repurchase of unsecured senior notes | (100 | ) | — | (100 | ) | — | ||||||||||
Income taxes paid | (2,037 | ) | (2,576 | ) | (2,208 | ) | (2,803 | ) | ||||||||
Income taxes recovered | 3 | — | 3 | — | ||||||||||||
Interest paid | (4,827 | ) | (4,540 | ) | (44,202 | ) | (42,701 | ) | ||||||||
Interest received | 219 | 5 | 335 | 34 | ||||||||||||
Funds provided by operations | 136,959 | 60,373 | 296,612 | 90,328 | ||||||||||||
Changes in non-cash working capital balances | 76,501 | 74,801 | (54,796 | ) | (20,448 | ) | ||||||||||
213,460 | 135,174 | 241,816 | 69,880 | |||||||||||||
Investments: | ||||||||||||||||
Purchase of property, plant and equipment | (44,037 | ) | (39,436 | ) | (94,832 | ) | (75,838 | ) | ||||||||
Purchase of intangibles | (677 | ) | — | (677 | ) | — | ||||||||||
Proceeds on sale of property, plant and equipment | 6,261 | 6,849 | 14,026 | 9,696 | ||||||||||||
Business acquisitions | — | — | (28,000 | ) | — | |||||||||||
Purchase of investments and other assets | (2,016 | ) | (536 | ) | (2,071 | ) | (536 | ) | ||||||||
Changes in non-cash working capital balances | (3,593 | ) | (3,659 | ) | (11,325 | ) | (447 | ) | ||||||||
(44,062 | ) | (36,782 | ) | (122,879 | ) | (67,125 | ) | |||||||||
Financing: | ||||||||||||||||
Issuance of long-term debt | — | 6,405 | 139,049 | 94,529 | ||||||||||||
Repayments of long-term debt | (177,677 | ) | (75,921 | ) | (239,021 | ) | (84,111 | ) | ||||||||
Repurchase of share capital | (7,958 | ) | (5,000 | ) | (12,951 | ) | (5,000 | ) | ||||||||
Issuance of common shares on the exercise of options | — | 4,766 | — | 6,162 | ||||||||||||
Lease payments | (2,042 | ) | (1,842 | ) | (4,003 | ) | (3,409 | ) | ||||||||
(187,677 | ) | (71,592 | ) | (116,926 | ) | 8,171 | ||||||||||
Effect of exchange rate changes on cash | (421 | ) | 739 | (679 | ) | 127 | ||||||||||
Increase (decrease) in cash | (18,700 | ) | 27,539 | 1,332 | 11,053 | |||||||||||
Cash, beginning of period | 41,619 | 24,102 | 21,587 | 40,588 | ||||||||||||
Cash, end of period | $ | 22,919 | $ | 51,641 | $ | 22,919 | $ | 51,641 |
CONDENSEDINTERIM 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, 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 |
(Stated in thousands of Canadian dollars) | 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 | — | — | — | (68,455 | ) | (68,455 | ) | |||||||||||||
Other comprehensive income for the period | — | — | 6,604 | — | 6,604 | |||||||||||||||
Share options exercised | 8,843 | (2,681 | ) | — | — | 6,162 | ||||||||||||||
Share repurchases | (5,000 | ) | — | — | — | (5,000 | ) | |||||||||||||
Share-based compensation reclassification | 14,083 | (219 | ) | — | — | 13,864 | ||||||||||||||
Share-based compensation expense | — | 646 | — | — | 646 | |||||||||||||||
Balance at June 30, 2022 | $ | 2,299,370 | $ | 74,057 | $ | 141,384 | $ | (1,335,435 | ) | $ | 1,179,376 |
2023 SECOND 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, July 27, 2023.
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/BIf5c55d0560124b6695127e367e6c4f90
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/gpgem9pa
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, CADirector, Investor Relations403.716.4500
800, 525 - 8th Avenue S.W.Calgary, Alberta, Canada T2P 1G1Website: www.precisiondrilling.com
Source: Precision Drilling Corporation