Precision Drilling solid execution in a softer market; debt target achieved early, upgrades stepped up, Canada winter poised for strong run.
US Wells Drilled Last 12 Months
Includes: Account, Well Name, Locations, Contractor and Rig….
Financials
- Revenue $462M (-3% y/y); Adjusted EBITDA $118M; net loss $7M driven by higher deferred U.S. tax expense.
- Year-to-date: Revenue $1.37B, Adjusted EBITDA $363M, net earnings $44M. Long-term debt down to $688M with liquidity above $400M.
Capital & Returns
- Q3 capital spending $69M; 2025 capex raised to $260M (from $240M) — entirely customer-funded rig upgrades.
- 27 rigs to be upgraded by year-end.
- Debt reduced $101M YTD, meeting the full-year target early.
- $54M YTD share buybacks ($9M in Q3).
Operations
- Canada: Avg 63 active rigs (-13% utilization days y/y). Revenue/day C$34,193 (+6% due to Super Triple mix). Expecting near-full winter utilization for Super Triples and Singles.
- U.S.: Avg 36 rigs (up vs. 35 y/y while the industry declined). Revenue/day US$31,040; activity focused in Haynesville and Marcellus. 39 currently active.
- International: 7 active rigs; revenue/day US$53,811; one rig in Saudi Arabia temporarily suspended since May.
- Completions & Production: Revenue $75M, Adjusted EBITDA $19M (26% margin); Canadian well-service hours up 6%.
Outlook
- Macro conditions mixed (OPEC+, tariffs, geopolitics), but LNG off-take and AI-driven power demand provide long-term support.
- Canada: LNG Canada shipments and TMX pipeline expansion underpin strong winter activity; Q4 margins expected C$14k–C$15k/day.
- U.S.: Gas-weighted focus continues; Q4 margins US$8k–US$9k/day with limited visibility beyond early 2026.
- International: 8 rigs under long-term (5-year) contracts extending into 2027–2028.
CEO Commentary
New CEO Carey Ford emphasized resilient margins, contract-backed upgrades, and plans to return 35–45% of free cash flow to shareholders after achieving debt reduction goals.
Key Takeaways
- Defense with offense: Early deleveraging and disciplined, contract-backed investment.
- Gas leverage: Growing exposure in gas basins aligned with LNG and AI trends.
- Canadian strength: Full winter utilization expected; pricing and margins holding firm.
