Q2 2024 Precision Drilling Corp Earnings Call Transcript
Key Points
- Precision Drilling Corp (PDS) reported strong Q2 financial results, exceeding expectations for revenue, adjusted EBITDA, earnings, and cash flow.
- The company achieved year-over-year growth in consolidated Q2 revenue driven by substantial growth in international drilling, Canada drilling, and completion and production services.
- Precision Drilling Corp (PDS) has demonstrated a commitment to strengthening its balance sheet with significant debt reduction and share repurchases.
- Margins in both Canada and the US were higher than guidance, resulting from stronger-than-expected pricing and cost recoveries, higher ancillary revenues, and improved cost performance.
- The company has a clear plan to reduce debt by $600 million between 2022 and 2026, with significant progress already made.
- The US drilling rig count has declined by 15% over the past year, impacting overall activity levels.
- Daily operating margins in the US decreased slightly from Q1, indicating some pressure on profitability.
- The company faces challenges in the US segment, with activity being slower than desired.
- Precision Drilling Corp (PDS) has experienced some delays and postponements in well servicing activity due to weather conditions such as rain and forest fires.
- The company has no new international contracts to report and has faced unsuccessful tenders, indicating potential challenges in expanding its international footprint.
Good day, and thank you for standing by. Welcome to the Precision Drilling Corporation 2024 second-quarter conference call.
I would like to hand the call over to Lavonne Zdunich, Vice President of Investor Relations. Please go ahead.
Thank you. Happen to Precision's second-quarter earnings conference call and webcast. Participating on today's call with me will be Kevin Neveu, our President and CEO; and Carey Ford, our CFO.
Earlier last night, we reported strong second-quarter results, which Carey will review with you, followed by an operational update and outlook commentary from Kevin. Once we have finished our prepared comments, we will open the call to questions.
Some of our comments today will refer to non-IFRS financial measures and will include forward-looking statements which are which are subject to a number of risks and uncertainties. Please see our news release and other regulatory filings for more information on financial measures, forward
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