Precision Drilling Corporation Provides Activity Update
01 Juin 2023 - 12:00PM
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.
Precision Drilling Corporation (TSX:PD;
NYSE:PDS) (“Precision” or the “Company”) today provides an update
on its North American drilling operations.
In Canada, we have 46 rigs active today and
expect to have over 60 rigs active by the end of the month as we
begin to emerge from the lows of spring breakup. To date, the
wildfires in Alberta and British Columbia have had a modest impact
on our operations and we expect second quarter activity to average
approximately 42 rigs, a 14% increase over last year. In the U.S.,
our active rig count is currently 50 and activity may further
soften in the coming weeks. For the second quarter, we expect our
U.S. activity to average approximately 50 rigs. We continue to sign
new customer contracts, with multiple rigs starting in the second
half of the year and anticipate a return to activity growth with
supportive commodity prices.
We remain confident in Precision’s ability to
successfully execute its 2023 strategic priorities, which include
reducing debt by at least $150 million and utilizing 10% to 20% of
free cash flow before principal payments to repurchase shares.
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. Our drilling services are enhanced by
our EverGreen™ suite of environmental solutions, which
bolsters our commitment to reducing the environmental impact of our
operations. 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”.
CAUTIONARY STATEMENT REGARDING
FORWARD-LOOKING INFORMATION AND STATEMENTS
Certain statements contained in this report,
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:
-
anticipated future activity levels;
-
anticipated free cash flow; and
-
our future debt reduction and shareholder capital return
plans.
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:
-
the fluctuation in oil prices may pressure customers into reducing
or limiting their drilling budgets;
-
the status of current negotiations with our customers and
vendors;
-
customer focus on safety performance;
-
existing term contracts are neither renewed nor terminated
prematurely;
-
continued market demand for Tier 1 rigs;
-
our ability to deliver rigs to customers on a timely basis;
-
the general stability of the economic and political environments in
the jurisdictions where we operate; and
-
the impact of an increase/decrease in capital spending.
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:
-
volatility in the price and demand for oil and natural gas;
-
fluctuations in the level of oil and natural gas exploration and
development activities;
-
fluctuations in the demand for contract drilling, well servicing
and ancillary oilfield services;
-
our customers’ inability to obtain adequate credit or financing to
support their drilling and production activity;
-
the success in vaccinations for COVID-19 worldwide;
-
changes in drilling and well servicing technology, which could
reduce demand for certain rigs or put us at a competitive
advantage;
-
shortages, delays and interruptions in the delivery of equipment
supplies and other key inputs;
-
liquidity of the capital markets to fund customer drilling
programs;
-
availability of cash flow, debt and equity sources to fund our
capital and operating requirements, as needed;
-
the impact of weather and seasonal conditions on operations and
facilities;
-
competitive operating risks inherent in contract drilling, well
servicing and ancillary oilfield services;
-
ability to improve our rig technology to improve drilling
efficiency;
-
general economic, market or business conditions;
-
the availability of qualified personnel and management;
-
a decline in our safety performance which could result in lower
demand for our services;
-
changes in laws or regulations, including changes in environmental
laws and regulations such as increased regulation of hydraulic
fracturing or restrictions on the burning of fossil fuels and GHG
emissions, which could have an adverse impact on the demand for oil
and natural gas;
-
terrorism, social, civil and political unrest in the foreign
jurisdictions where we operate;
-
fluctuations in foreign exchange, interest rates and tax rates;
and
-
other unforeseen conditions which could impact the use of services
supplied by Precision and Precision’s ability to respond to such
conditions.
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 news 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.
For further information, please contact:
Lavonne Zdunich, CPA, CADirector, Investor
Relations403.716.4500Precision Drilling Corporation800, 525 - 8th
Avenue S.W.Calgary, Alberta, Canada T2P 1G1Website:
www.precisiondrilling.com
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