Core Viewpoint - Precision Drilling Corporation has filed its annual disclosure documents with securities commissions in Canada and the SEC, highlighting its financial performance for the year ended December 31, 2025 [1][2]. Group 1: Financial Disclosure - Precision's 2025 Annual Report includes audited consolidated financial statements and management's discussion and analysis for the year ended December 31, 2025, with results previously released on February 11, 2026 [2]. - The Annual Report and Annual Information Form have been filed on SEDAR+ and EDGAR systems, and are accessible on Precision's website [3]. Group 2: Shareholder Meeting - Precision's 2026 Annual Meeting of Shareholders is scheduled to be held in a virtual-only format on May 14, 2026, at 10:00 a.m. MDT [4]. Group 3: Company Overview - Precision is a leading provider of safe and environmentally responsible services to the energy industry, featuring an extensive fleet of Super Series drilling rigs and a digital technology portfolio known as Alpha™ [5]. - The company emphasizes its commitment to reducing environmental impact through its EverGreen™ suite of environmental solutions, alongside offering well service rigs, rental equipment, and technical support services [5]. - Precision is headquartered in Calgary, Alberta, Canada, and is publicly traded on the Toronto Stock Exchange under the symbol "PD" and on the New York Stock Exchange under "PDS" [6].

Financial Performance - Revenue for Q4 2025 was $479 million, a 2.2% increase from $468 million in Q4 2024, driven by higher U.S. drilling activity[6]. - Adjusted EBITDA for Q4 2025 was $126 million, up 4.9% from $121 million in Q4 2024, with a reduction in share-based compensation expenses from $15 million to $6 million[6][17]. - Net loss attributable to shareholders for Q4 2025 was $42 million, compared to a net earnings of $15 million in Q4 2024, impacted by a non-cash asset charge of $67 million[6][13]. - Revenue for the year was $1,844 million, representing a 3% decrease from $1,902 million in 2024, primarily due to lower U.S. drilling activity and service rig activity[19]. - Adjusted EBITDA was $490 million versus $521 million in 2024, driven by U.S. drilling declines, partially offset by lower share-based compensation expense of $24 million compared to $47 million in 2024[19]. - Net loss for Q4 2025 was CAD 41,868 thousand, compared to a net earnings of CAD 14,930 thousand in Q4 2024, representing a significant decline[63]. - Earnings before income taxes for the year ended December 31, 2025, was CAD 55,921 thousand, down 63.8% from CAD 154,559 thousand in 2024[61]. - Comprehensive loss for Q4 2025 was CAD 52,299 thousand, compared to a comprehensive income of CAD 55,348 thousand in Q4 2024[63]. Cash Flow and Capital Expenditures - Cash provided by operations in Q4 2025 was $126 million, funding capital expenditures of $81 million and share repurchases of $22 million[6]. - Cash provided by operations was $413 million, allowing the company to reduce debt by $101 million and repurchase 1,024,002 shares for $76 million[19]. - Capital expenditures were $263 million, including $157 million for maintenance and $107 million for upgrades, compared to $217 million in 2024[19]. - Cash provided by operations for Q4 2025 was CAD 126,114 thousand, a decrease from CAD 162,791 thousand in Q4 2024[64]. - Cash at the end of Q4 2025 was CAD 85,781 thousand, an increase from CAD 73,771 thousand at the end of Q4 2024[65]. - Cash used in investing activities for the year ended December 31, 2025, was CAD 208,324,000, compared to CAD 202,986,000 in 2024[45]. Debt and Equity Management - For the year 2025, the company reduced debt by $101 million and repurchased $76 million of common shares, achieving its annual debt reduction and shareholder capital return targets[6][7]. - The company ended 2025 with a Net Debt to Adjusted EBITDA ratio of approximately 1.2 times and over $445 million in available liquidity[6][16]. - The total long-term financial liabilities decreased to $746.9 million from $888.2 million in 2024, reflecting improved financial stability[16]. - The company plans to reduce debt by at least $100 million in 2026 and allocate 35% to 45% of free cash flow before debt repayments for share repurchases[24]. - As of December 31, 2025, total equity attributable to shareholders is CAD 1,588,883,000, with a decrease from CAD 1,681,999,000 at the beginning of the year[66]. - The total accumulated deficit as of December 31, 2025, stands at CAD 898,992,000, indicating a significant financial obligation[66]. Operational Metrics - The average active drilling rigs in Canada for Q4 2025 was 66, slightly up from 65 in Q4 2024, while U.S. active rigs increased by 9% to 37[6][14]. - Internationally, the average active rigs decreased to 7 from 8 in Q4 2024, with revenue per utilization day increasing to $53,505 from $49,636[6][14]. - The average number of active land rigs in Canada for Q4 2025 was 66, compared to 65 in Q4 2024, while the industry average was 185[35]. - The average number of active land rigs in the U.S. for Q4 2025 was 37, down from 34 in Q4 2024, with the industry average at 527[36]. Future Outlook - In 2026, the company plans to invest $245 million in fleet and infrastructure, reduce debt by $100 million, and allocate up to 50% of free cash flow towards share repurchases[6][7]. - Capital spending in 2026 is expected to be $245 million, with $182 million allocated for maintenance and $63 million for expansion and upgrades[30]. - The company anticipates future shareholder returns and capital expenditures for 2026 and beyond, focusing on debt reduction plans[56]. Tax and Regulatory Matters - The company recognized an income tax expense of CAD 53 million in 2025, primarily due to higher deferred income tax expenses related to U.S. operations[40]. - The company expects to not be subject to U.S. income tax for several years due to waiving certain tax deductions[40]. Shareholder Engagement - A conference call is scheduled for February 12, 2026, to discuss fourth-quarter results, indicating ongoing investor engagement[68]. - For further information, investors can contact Lavonne Zdunich, CPA, CA, Vice President of Investor Relations at 403.716.4500[73]. Environmental Initiatives - Precision Drilling Corporation has commercialized a digital technology portfolio known as Alpha™, enhancing operational efficiency[70]. - The company is committed to reducing environmental impact through its EverGreen™ suite of environmental solutions[70].

Industry Overview - Germany's domestic oil and gas output has decreased by approximately 80% since 2000, now meeting only about 5% of its demand [2] - The country has replaced lost Russian gas flows with LNG imported from Norway and the United States [2] - Domestic production is constrained by aged fields, stringent regulations, social opposition, and a ten-year fracking ban [3] Company Insights - Neptune Energy operates the Adorf gas field, with plans to supply gas to 300,000 households [2] - Harbour Energy reported €39 million in the first half of 2025, facing rising expenses and storage costs [2] - Valaris Limited reported $537 million in fourth-quarter 2025 operating revenue, with a net income of $717 million [9] - Valaris Limited's contract drilling expenses increased to $380 million due to higher maintenance and mobilization costs [9] - Valaris Limited's capital expenditures rose to $106 million, primarily for shipyard projects and fleet improvements [10] - Precision Drilling Corporation reported fourth-quarter 2025 revenue of $479 million, up from $468 million in Q4 2024 [12] - Precision Drilling Corporation concluded 2025 with a net debt to adjusted EBITDA ratio of 1.2 times and $445 million in liquidity [12] Future Outlook - Operators in Germany are focusing on efficiency and exploring alternatives like lithium resources and geothermal projects [3] - Valaris Limited's contracts are expected to account for 97% of revenue in 2026, with a total backlog of $4.7 billion [10] - Precision Drilling Corporation plans to invest $245 million in its fleet and reduce debt by $100 million in 2026 [12]

Core Viewpoint - Precision Drilling Corporation (NYSE:PDS) is a leading provider of oilfield services in Canada, offering drilling, well servicing, and equipment rentals to the energy sector [1] Stock Performance - PDS has seen a significant increase of approximately 9.03% in its stock price over the past month, reflecting strong investor confidence [2][6] - In the last 10 days, the stock experienced a slight decline of about 0.47%, which may present a buying opportunity for investors [2] Growth Potential - PDS shows a promising growth potential of 20.77%, indicating that the stock is undervalued with a target price of $105, suggesting substantial upside from current levels [3][6] Financial Health - The company's financial health is robust, evidenced by a Piotroski Score of 8, highlighting strong fundamentals including profitability, leverage, liquidity, and operating efficiency [4][6] Technical Analysis - From a technical perspective, PDS has recently touched a local minimum, suggesting a potential reversal point, making it an intriguing option for investors [5]

Core Viewpoint - Precision Drilling Corporation has received approval for dual listing on NYSE Texas, expanding its trading options while maintaining its primary listing on the New York Stock Exchange [1][2]. Company Overview - Precision is a leading provider of safe and environmentally responsible services to the energy industry, featuring an extensive fleet of Super Series drilling rigs [3]. - The company has developed an industry-leading digital technology portfolio called Alpha™, which employs advanced automation software and analytics to deliver efficient and predictable results for energy customers [3]. - Precision's services are complemented by the EverGreen™ suite of environmental solutions, emphasizing its commitment to reducing the environmental impact of operations [3]. - In addition to drilling services, Precision offers well service rigs, rental equipment, and camps, supported by a comprehensive mix of technical support services and skilled personnel [3].

Group 1 - The article expresses a beneficial long position in the shares of PTEN and NBR, indicating a positive outlook on these companies [1] - The author emphasizes that the content is based on personal opinions and does not constitute investment advice, highlighting the importance of individual due diligence [2] - It is noted that past performance is not indicative of future results, and the views expressed may not reflect those of the platform as a whole [3]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: Precision Drilling (PDS) - Precision Drilling currently holds a Momentum Style Score of B and a Zacks Rank of 2 (Buy), indicating a favorable outlook for the stock [3][4] - The stock has shown a price increase of 0.21% over the past week, while the Zacks Oil and Gas - Drilling industry has increased by 6.42% during the same period [6] - Over the last month, PDS shares have risen by 18.02%, compared to the industry's performance of 27.34% [6] - In the last three months, PDS shares have increased by 53.25%, and over the past year, they have risen by 59.92%, significantly outperforming the S&P 500, which has moved 1.74% and 13.08% respectively [7] Trading Volume - The average 20-day trading volume for PDS is 113,017 shares, which serves as a useful indicator for assessing price movements [8] Earnings Outlook - In the past two months, one earnings estimate for PDS has increased, while none have decreased, raising the consensus estimate from $5.97 to $6.12 [10] - For the next fiscal year, one estimate has also moved upwards with no downward revisions [10] Conclusion - Given the positive momentum indicators and earnings outlook, Precision Drilling is positioned as a strong buy candidate for investors seeking short-term opportunities [12]

Core Insights - Precision Drilling reported a net loss of CAD 42 million in the fourth quarter, primarily due to non-cash charges related to rig decommissioning and drill pipe adjustments, but excluding these, net income would have been CAD 42 million, a significant improvement from CAD 15 million in the same quarter of the previous year [2][7] - The company achieved adjusted EBITDA of CAD 126 million in Q4, slightly up from CAD 121 million year-over-year, indicating stable operational performance [3][7] - Precision's strategy focuses on debt reduction, share repurchases, and maintaining steady operations, with expectations for increased activity in 2026 supported by long-term contracts [4][5] Financial Performance - In Q4, Precision averaged 66 active rigs in Canada, with daily operating margins reported at CAD 14,132, down from CAD 14,559 in Q4 2024 [1] - The U.S. operations averaged 37 active rigs, with daily margins of $8,754, slightly higher than the previous quarter [7] - Internationally, the company averaged seven active rigs, with day rates increasing by 8% year-over-year to $53,505 due to fewer non-billable days [8] Guidance and Strategy - For Q1 2026, Precision anticipates a peak rig count of 87 in Canada, with operating margins expected between CAD 14,000 and CAD 15,000 per day [12] - The U.S. rig count is expected to remain steady at 37, with margins projected between $8,000 and $9,000 per day [13] - The company plans to allocate CAD 245 million for capital expenditures in 2026, focusing on sustaining and infrastructure investments [15] Debt and Shareholder Returns - Precision reduced its net debt by CAD 101 million in 2025, achieving a net debt-to-adjusted EBITDA ratio of 1.2x, and repurchased CAD 76 million of shares [6][9] - The company aims to allocate 35% to 45% of free cash flow to share buybacks, aligning with its commitment to shareholder returns [9] International Operations - Precision is pursuing international reactivations in Saudi Arabia and Kuwait, with plans to deploy additional rigs in these markets [19][20] - An MOU in Argentina aims to leverage idle rigs and digital technology, potentially leading to the deployment of 1-3 rigs over the next couple of years [20][21] Operational Insights - The company is focusing on enhancing customer relationships and exploring creative commercial arrangements to drive revenue growth [17] - Management noted that the rig decommissioning charge was a strategic decision based on industry trends, with plans to strip usable parts from decommissioned rigs [23]

Core Viewpoint - Precision Drilling is a significant player in the oil and gas drilling industry, recently receiving an "Outperform" rating from BMO Capital with an increased price target [1][6] Financial Performance - The company reported quarterly earnings of $1.37 per share, exceeding the Zacks Consensus Estimate of $1.11 per share, and showing a substantial increase from $0.76 per share in the same quarter last year, indicating a +23.42% earnings surprise [2][6] - In the previous quarter, Precision Drilling faced challenges, reporting a loss of $0.37 per share against an expected $1.20, resulting in a -130.83% surprise; however, it has exceeded consensus EPS estimates twice in the last four quarters, demonstrating resilience [3][6] Revenue Insights - Precision Drilling reported revenue of $343.25 million for the quarter ending December 2025, which was 1.02% below the Zacks Consensus Estimate but a slight increase from $334.62 million reported a year ago; the company has surpassed consensus revenue estimates twice in the last four quarters [4][6] Stock Performance - The current stock price of Precision Drilling is $81.72, reflecting a decrease of 9.14% with a change of $8.22; the stock has fluctuated between a low of $81.61 and a high of $91.99 today, with a market capitalization of approximately $1.08 billion [5]

Financial Data and Key Metrics Changes - The company recorded adjusted EBITDA of $126 million for Q4 2025, compared to $121 million in Q4 2024, reflecting a year-over-year increase [4] - A net loss of $42 million was reported, which included non-cash charges of $67 million for decommissioning drilling rigs and $17 million for drill pipe, while net income would have been positive $42 million without these charges [5] - The net debt to adjusted EBITDA ratio ended the year at 1.2 times, with a reduction in debt by CAD 101 million [2][13] Business Line Data and Key Metrics Changes - In Canada, drilling activity averaged 66 active rigs, an increase of 1 rig from Q4 2024, with daily operating margins reported at CAD 14,132, down from CAD 14,559 in Q4 2024 [5] - In the U.S., the average active rig count was 37, an increase of three rigs from the prior year, with daily operating margins of $8,754, slightly up from $8,700 in Q3 [7] - The CMP segment reported adjusted EBITDA of CAD 17 million, compared to CAD 16 million in Q4 2024, driven by increased well servicing demand in Canada [8] Market Data and Key Metrics Changes - Internationally, the company averaged seven active rigs, down from eight in the prior year, with international day rates averaging $53,505, an 8% increase from Q4 2024 [7][8] - The Canadian market outlook remains solid with supportive commodity prices and resilient demand for Super Series rigs, while the U.S. market outlook is generally flat with pockets of opportunity for performance differentiation [20] Company Strategy and Development Direction - The company aims to drive revenue growth and deepen customer relationships, focusing on performance and efficiency across various North American basins [16][18] - The strategy includes leveraging technology and digital platforms to optimize drilling and enhance customer communication, with a focus on capital-light initiatives [19] - The company plans to continue its long-term deleveraging journey while increasing free cash flow allocated to shareholders up to 50% [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the Canadian market's medium to long-term outlook, citing strong takeaway capacity and deep resource inventories [20][54] - In the U.S., while the industry outlook is flat, the company expects to capture modest growth driven by performance differentiation and customer efficiency [20] - The company is exploring international growth opportunities, including a memorandum of understanding (MOU) in Argentina to provide idle rigs and digital technology [22][45] Other Important Information - Capital expenditures for 2025 were CAD 263 million, with CAD 156 million for sustaining and infrastructure and CAD 107 million for upgrades [9] - The company expects to incur $2 million in one-time charges related to rig reactivations in Q1 2026 [10] Q&A Session Summary Question: Context around the rig demobilization in Kuwait - The company has six rigs in Kuwait, with four active and two idle, looking for opportunities to deploy the idle rigs [26][27] Question: Potential upside in the U.S. market - Management indicated that growth opportunities are being driven by performance and efficiency discussions with customers across various basins [34] Question: Guidance on U.S. margin for Q1 - The expected margin range is $8,000-$9,000 per day, with mixed pricing trends across operating segments [40][41] Question: Details on the MOU in Argentina - The MOU aims to explore opportunities in Argentina with an established partner, focusing on performance and technology while reducing market risks [45] Question: Impact of customer changes on Canadian demand - Management noted no broad change in demand despite individual customer adjustments, maintaining a peak activity of 87 rigs in the winter drilling season [54]