Precision Drilling Corp

PD

Equity

ISIN null / Valor 57985509

Toronto Stock Exchange (2025-11-18)

CAD 81.95+1.15%

Precision Drilling Corp
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About company

Precision Drilling Corp, established in 1951, has evolved from a modest onshore drilling enterprise with a single rig to a prominent player in the drilling industry, boasting a significant fleet expansion by the end of its first decade. Throughout the 1960s and 70s, the company embarked on an international expansion, operating in diverse locations such as Mexico, Australia, Timor, New Guinea, and Sumatra, before refocusing its efforts on Western Canada. This period marked a significant phase of fleet modernization and technological innovation for Precision Drilling, notably with the development of the Deep Freeze-Hole drilling technique. Over the years, Precision Drilling has established itself as a key entity in the drilling sector, known for its commitment to technological advancements and operational efficiency, catering to a broad spectrum of drilling needs in the industry.

Summarized from source with an LLMView SourceSector: Energy

Revenue Performance

In the fourth quarter of 2024, Precision Drilling Corp generated $468 million in revenue, marking an 8% decrease from $506.9 million in the fourth quarter of 2023. The decline was primarily due to lower activity and day rates in the U.S., despite increased drilling activity in Canada and internationally.

Adjusted EBITDA Decline

The company's Adjusted EBITDA for Q4 2024 was $121 million, down from $151 million in the same quarter of 2023. The reduction includes $15 million in share-based compensation charges, $4 million in rig reactivation costs, and $4 million in non-recurring charges.

Net Earnings Drop

Net earnings attributable to shareholders were $15 million or $1.06 per share in Q4 2024, significantly lower than $147 million or $10.42 per share in Q4 2023. The previous year's earnings benefited from an income tax recovery and a gain on acquisition.

Capital Investments and Debt Reduction

During 2024, Precision Drilling invested $217 million into its fleet and infrastructure, with plans to invest $225 million in 2025. The company achieved its debt reduction targets by lowering debt by $176 million and repurchasing $75 million of common shares. It aims to reduce debt by at least $100 million in 2025, increasing its long-term debt reduction target to $700 million by 2027.

Operational Highlights

Demand for Precision Drilling's services remained strong in 2024, with Canadian and international drilling rig utilization days increasing by 12% and 37% respectively. Well servicing rig operating hours also rose by 26% over the previous year, driven by strategic acquisitions and operational synergies.

Future Outlook

The company expects robust activity in Canada due to heavy oil projects and infrastructure developments like the Trans Mountain pipeline expansion and LNG Canada. Precision Drilling plans to continue investing in its core business lines and increasing direct shareholder returns, targeting 35% to 45% of free cash flow for 2025.

Summarized from source with an LLMView Source

Key figures

-7.22%1Y

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Performance

42.0%1Y

38.7%3Y

38.7%5Y

Volatility