Precision Drilling Corporation (“
Precision” or the
“
Company”) (TSX:PD; NYSE:PDS) announced today that
the Toronto Stock Exchange (the “
TSX”) has
approved its intention to implement a normal course issuer bid
(“
NCIB”) for a portion of its common shares
(“
Common Shares”). Precision believes the NCIB
continues to represent another tool for the Company to enhance the
value of its underlying shares.
Pursuant to the renewed NCIB, the Company has
been authorized by the TSX to acquire up to a maximum of 1,326,321
Common Shares, or approximately 10% of the public float as of
September 5, 2023 for cancellation. Purchases under the NCIB may
commence on September 19, 2023 and will terminate no later than
September 18, 2024, or such earlier time as the Company completes
its purchases pursuant to the NCIB or provides notice of
termination.
Purchases under the NCIB will be made in
accordance with applicable regulatory requirements through the
facilities of the TSX, the New York Stock Exchange (the
“NYSE”), other designated exchanges and/or
alternative trading systems in Canada or the United States or by
such other means as may be permitted by the applicable securities
regulator at a price per Common Share representative of the market
price at the time of acquisition. The number of Common Shares that
can be purchased pursuant to the NCIB is subject to a current daily
maximum of 22,573 Common Shares (which is equal to 25% of the
average daily trading volume of 90,295 on the TSX for the six full
calendar months ending August 31, 2023), subject to the Company's
ability to make one block purchase of Common Shares per calendar
week that exceeds such limits. All Common Shares purchased under
the NCIB will be cancelled after their purchase. The Company
intends to fund the purchases out of its available resources.
Pursuant to its prior NCIB, under which the
Company had approval from the TSX to purchase up to 1,148,771
Common Shares for the period of August 29, 2022 to August 28,
2023, the Company has purchased 263,215 Common Shares on the TSX,
NYSE and alternative trading systems at a weighted average purchase
price of CAD$67.49 per Common Share.
The Company intends to enter into an automatic
securities purchase plan effective September 19, 2023 under which
its broker may purchase Common Shares in connection with the NCIB.
The plan will contain a prearranged set of criteria in accordance
with which its broker may make Common Share purchases. These strict
parameters enable the purchase of Common Shares during times when
it would ordinarily not be permitted due to self-imposed blackout
periods, insider trading rules or otherwise. Such plan is adopted
in accordance with applicable Canadian securities laws and the
requirements of Rule 10b5-1 under theU.S. Securities Exchange Act
of 1934, as amended.
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 funding of purchases
under the NCIB and the entering in to of an automatic securities
purchase plan and advantages of the NCIB.
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;
- our ability to deliver rigs to
customers on a timely basis; and
- the general stability of the
economic and political environments in the jurisdictions where we
operate.
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 of 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 greenhouse gas 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 Relations403.716.4500
Precision Drilling Corporation 800, 525 - 8th Avenue S.W.
Calgary, Alberta, Canada T2P 1G1Website:
www.precisiondrilling.com
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