Precision Drilling used its Q1 2026 earnings call to outline a more optimistic outlook for U.S. drilling activity while emphasizing how technology and operational performance continue to differentiate the company in a competitive market.
The company reported a 24% year-over-year increase in U.S. rig activity during the first quarter, despite the overall U.S. land rig count declining. Management said they believe the U.S. market is approaching an “inflection point,” with increased drilling demand expected in the second half of 2026.
According to CEO Carey Ford, Precision is seeing stronger customer discussions around future rig additions in key regions including the Permian Basin, Rockies, Marcellus, and Haynesville. The company also noted that tightening rig supply across the industry could support higher day rates later this year.
Precision expects much of the future demand growth to be driven by:
- Higher oil prices
- LNG export growth
- Increasing natural gas demand from AI and data center power generation
On the technology side, Precision highlighted record-low mechanical downtime levels across its fleet, reporting downtime of just 0.59% in the U.S. and 0.48% in Canada. The company attributed these results to its growing use of:
- Real-time rig data analytics
- Digital twin technology
- Predictive maintenance systems
- Automation and remote operations
The company also discussed its Alpha automation platform, which is currently being used on rigs in the Middle East. Management said the system is already helping reduce drilling times and improve operational consistency for customers.
Precision believes its technology platform is becoming a key competitive advantage, helping drive stronger customer relationships, premium pricing, and improved rig utilization as market activity strengthens heading into late 2026.
Precision Drilling – U.S. Wells Spud YTD Summary
Total Record Count
- 290 total well records
Wells Spud by Basin / Play
| Basin / Play | Record Count |
|---|---|
| Other | 135 |
| Permian | 59 |
| Marcellus / Utica | 43 |
| Haynesville | 31 |
| Powder River | 18 |
| Eagle Ford | 3 |
| Gulf Coast | 1 |
Top 3 Account Names by Basin / Play
Permian
| Account Name | Wells |
|---|---|
| VTX Energy Partners, LLC | 22 |
| Diamondback Energy | 11 |
| ExxonMobil / XTO | 6 |
Marcellus / Utica
| Account Name | Wells |
|---|---|
| EQT Corporation | 19 |
| Range Resources | 9 |
| CNX Resources | 5 |
Haynesville
| Account Name | Wells |
|---|---|
| Comstock Resources | 12 |
| Expand Energy | 7 |
| Aethon Energy | 4 |
Powder River
| Account Name | Wells |
|---|---|
| Continental Resources | 7 |
| Devon Energy | 4 |
| Anschutz Exploration | 3 |
Eagle Ford
| Account Name | Wells |
|---|---|
| EOG Resources | 2 |
| Marathon Oil | 1 |
Gulf Coast
| Account Name | Wells |
|---|---|
| Walter Oil & Gas Corporation | 1 |
Other
| Account Name | Wells |
|---|---|
| Various Smaller Operators | 135 |
Author: phinds
