Q3 2024 Precision Drilling Corp Earnings Call Transcript
Key Points
- Precision Drilling Corp (PDS) reported strong year-over-year growth in revenue, adjusted EBITDA, and net earnings for the third quarter.
- The company reduced its debt by $49 million during the quarter and $152 million year-to-date, reaching the low end of its target range.
- Precision Drilling Corp (PDS) plans to reduce debt by $600 million between 2022 and 2026, with approximately $190 million remaining.
- The company is increasing its 2024 capital spending plan to fund multiple contracted rig upgrades and take advantage of purchasing in-demand drill pipe.
- Precision Drilling Corp (PDS) has achieved a leverage level below one times net debt, positioning it for opportunistic high-value investments and increased shareholder returns.
- Margins for Canada were lower than guidance due to rig mix, with increased demand for super single and double rigs.
- International average day rates decreased by 8% from the prior year due to non-billable utilization days for a rig undergoing certification.
- Drilling activity in the U.S. averaged 35 rigs in Q3, a decrease of one rig from the previous quarter.
- Daily operating margins in Q3 were essentially flat from Q2, with expectations for a slight decrease in Q4.
- The U.S. market remains constrained by volatile oil prices, soft natural gas prices, customer consolidation, and annual budget exhaustion.
Good day. And thank you for standing by. Welcome to the Precision Drilling Corporation 2024 third-quarter results conference call.
I would now like to hand the conference over to Lavonne Zdunich, Vice President of Investor relations. Please go ahead.
Welcome to Precision Drilling's third-quarter earnings conference call and webcast. Today. I'm joined by Kevin Neveu, our President and CEO; and Carey Ford, the CFO yesterday precision reported strong third quarter results which Kerry will review followed by outlook commentary and an operational update 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 will and will include forward-looking statements 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-looking statements and risk factors. As a reminder, we
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