Financial Data and Key Metrics Changes - Adjusted EBITDA for Q3 was $118 million, down from $142 million in the prior year [4] - Daily operating margins in Canada were $13,007, compared to $12,877 in Q3 2023 [4] - U.S. daily operating margins were $8,700, down from $9,026 in the previous quarter [5] - Net debt to trailing 12-month EBITDA ratio is approximately 1.3 times, with an average cost of debt of 6.6% [10] Business Line Data and Key Metrics Changes - In Canada, drilling activity averaged 63 active rigs, a decrease of 9 rigs from Q3 2023 [4] - U.S. drilling activity averaged 36 rigs, an increase of 3 rigs from the previous quarter [4] - International drilling activity averaged 7 rigs, down from 8 rigs in the prior year [5] - CMP segment adjusted EBITDA was $19.3 million, slightly down from $19.7 million in the prior year [7] Market Data and Key Metrics Changes - International day rates averaged $53,811, an increase of 14% from the prior year [6] - U.S. gas basins saw a nearly 20% increase in rig activity year-to-date [67] Company Strategy and Development Direction - The company increased its 2025 capital budget by $20 million for additional rig upgrades, reflecting a long-term view of energy demand [3] - The strategic focus includes leveraging scale, utilizing technology for rig performance, and maintaining customer focus [15][19][20] - The company aims to allocate between 35% and 45% of free cash flow to share buybacks [8] Management's Comments on Operating Environment and Future Outlook - The management expressed optimism for the fourth quarter, expecting Canadian activity to meet or slightly exceed last year's winter drilling season [9] - U.S. rig counts are expected to remain stable in the upper 30s for Q4 [9] - The company is committed to long-term debt reduction and increasing direct returns to shareholders [12] Other Important Information - The company has repurchased $54 million worth of shares during the first nine months of the year [8] - The leadership transition included the appointment of Carey Ford as President and CEO, with a focus on maintaining operational excellence [2][11] Q&A Session Summary Question: Comments on contract duration visibility for 2026 - Management noted a trend towards longer-term contracts in the Montney and Marcellus regions, with ongoing constructive conversations for future contracts [26][28] Question: Rig upgrades and CapEx expectations for 2026 - Management indicated a commitment to maintaining capital commitments for debt pay down and share repurchases, with expectations for continued rig upgrades driven by customer demand [31][32] Question: Changes in strategy under new leadership - The new CEO emphasized continuity in successful strategies while sharpening focus on supporting field operations and customer performance [37][38] Question: Impact of mobilization costs on margins - Management clarified that mobilization costs in Canada would not be substantial, while U.S. costs have stabilized [39] Question: Performance-based contracts and M&A strategy - Management confirmed no significant changes in M&A strategy, focusing on organic growth opportunities and the potential for more performance-based contracts in the future [44][45] Question: Demand for rig upgrades next year - Management expressed optimism about ongoing demand for rig upgrades, particularly in heavy oil and gas markets [54][70]

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q3 2025 was $118 million, down from $142 million in the prior year [4] - Daily operating margins in Canada increased to $13,007 per day from $12,877 per day in Q3 2023 [4] - U.S. daily operating margins decreased to $8,700 per day from $9,026 per day in the previous quarter [5] - The company reduced its debt by $101 million, achieving its annual debt reduction target [7] Business Line Data and Key Metrics Changes - In Canada, drilling activity averaged 63 active rigs, a decrease of 9 rigs from Q3 2023 [4] - U.S. drilling activity averaged 36 rigs, an increase of 3 rigs from the previous quarter [4] - International drilling activity averaged 7 rigs, down from 8 rigs in the prior year [5] - CMP segment adjusted EBITDA was $19.3 million, slightly down from $19.7 million in the prior year [6] Market Data and Key Metrics Changes - International day rates averaged $53,811 per day, an increase of 14% from the prior year [5] - The U.S. rig count increased from a low of 27 rigs in Q1 to a high of 40 rigs [5] - The company expects Q4 rig counts in Canada to be similar to Q4 2024, averaging 65 rigs [8] Company Strategy and Development Direction - The company increased its 2025 capital budget by $20 million for additional rig upgrades, reflecting a long-term view of energy demand [3] - The strategic focus includes leveraging scale, utilizing technology for rig performance, and maintaining customer focus [14][18][19] - The company aims to achieve a net debt to adjusted EBITDA ratio of less than one times and increase free cash flow allocated to shareholders towards 50% [9] Management's Comments on Operating Environment and Future Outlook - Management expressed a positive outlook for the remainder of the year, dependent on commodity prices [7] - The company anticipates that winter drilling activity in Canada will meet or slightly exceed last year's levels [8] - Management highlighted the importance of customer focus and the successful upgrade program as key drivers for future performance [19] Other Important Information - The company completed a leadership transition with the appointment of new executives, including Carey Ford as CEO [2] - The company has a strong balance sheet with over $400 million in total liquidity [9] Q&A Session Summary Question: Visibility on contract extensions for 2026 - Management noted that longer-term contracts are being seen in the Montney and Marcellus regions, with some short-term contracts in oil basins [25][26] Question: Future rig upgrades and CapEx - Management indicated that while they hope for more upgrades, the focus will remain on debt pay down and shareholder returns [28][29] Question: Changes in strategy under new leadership - The new CEO emphasized continuity in strategy, focusing on supporting field operations and enhancing customer performance [32][34] Question: Performance-based contracts and M&A approach - Management confirmed no significant changes in M&A strategy, with a focus on organic growth through asset utilization and rig upgrades [41][42] Question: Demand for rig upgrades next year - Management is closely working with customers to understand rig requirements and expects continued demand for upgrades [50][52]

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q3 2025 was $118 million, down from CAD 142 million in the prior year [5][6] - Daily operating margins in Canada were $13,007, compared to $12,877 in Q3 2024, while in the U.S., margins were steady at $8,700, down from $9,226 in Q2 2025 [6][12] - The company reduced its debt by CAD 101 million, achieving its annual debt reduction target [11] Business Line Data and Key Metrics Changes - In Canada, drilling activity averaged 63 active rigs, a decrease of nine rigs from Q3 2024 due to deferred customer projects [5][6] - U.S. drilling activity averaged 36 rigs, an increase of three rigs from the previous quarter, reflecting strength in gas-weighted basins [6][7] - Internationally, drilling activity averaged seven rigs, down from eight rigs in the prior year, with day rates averaging $53,811, a 14% increase from the previous year [8] Market Data and Key Metrics Changes - The U.S. natural gas market has seen an increase in rig count from 27 in Q1 to 40 rigs currently, driven by strong field performance [7][8] - The company expects Q4 rig counts in Canada to be similar to Q4 2024, averaging 65 rigs, while U.S. rig counts are expected to remain in the upper 30s [12][13] Company Strategy and Development Direction - The company increased its 2025 capital budget by $20 million to fund five additional contracted rig upgrades, indicating a long-term view of energy demand [3][4] - Precision Drilling aims to leverage its scale, utilize technology for rig performance, and maintain a strong customer focus as key pillars of its strategy [22][28] - The company is committed to long-term debt reduction and increasing direct returns to shareholders, with plans to allocate 35-45% of free cash flow to share buybacks [11][18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing a strong balance sheet and a commitment to capital returns while navigating commodity market challenges [18][30] - The outlook for the remainder of the year remains positive but is dependent on commodity prices, with expectations for winter drilling activity to meet or slightly exceed last year's levels [12][13] Other Important Information - The company has completed a leadership transition, appointing Carrie Ford as CEO, Gene Stahl as COO, and Dustin Honing as CFO [2][16] - Precision Drilling has a strong presence in Canada’s heavy oil and unconventional natural gas markets, which positions it well for future growth [8][9] Q&A Session Summary Question: Visibility on contract extensions for 2026 - Management noted that longer-term contracts are being seen in the Montney and Marcellus regions, with some short-term contracts in oil basins due to volatility [35][36] Question: Future rig upgrades and CapEx - Management indicated that while they hope to see more rig upgrades, the focus will remain on maintaining commitments to debt paydown and shareholder returns [40][42] Question: Changes in strategy under new leadership - The new CEO emphasized continuity in strategy, focusing on supporting field operations and enhancing customer performance [47][49] Question: Performance-based contracts and M&A approach - Management confirmed no significant changes in M&A strategy, with a focus on organic growth through improved asset utilization and performance-based contracts [55][56] Question: Demand for rig upgrades next year - Management expressed optimism about demand for upgrades, particularly in heavy oil and unconventional plays, with ongoing discussions with customers [67][70]

Financial Performance & Strategy - Precision Drilling aims to maximize free cash flow by growing revenue, enhancing shareholder returns, and maintaining disciplined capital deployment[9] - The company estimates a 17% free cash flow yield potential, with $169 million in estimated free cash flow for 2025, based on an equity market cap of $1,014 million[11] - Precision Drilling plans to reduce debt by $100 million in 2025, with $101 million already repaid as of September 30, 2025[10] - The company is allocating 35%-45% of free cash flow for share repurchases, with $54 million repurchased as of September 30, 2025[10] - Precision Drilling increased its long-term debt reduction target to $700 million from 2022-2027, having already repaid $535 million as of September 30, 2025[70] Operational Highlights - Precision Drilling is upgrading 27 Super Series rigs in 2025 to drive revenue and margin growth, focusing on heavy oil & Montney rigs in Canada and gas-weighted plays in the U S [10,29] - The company's Canadian operations have a ~65% utilization rate across its 100 rigs, with Super Triple rigs at 85% utilization in the Montney/LNG play and Super Single rigs at 70% in the Oil Sands/Clearwater play as of Q3 2025[35,37] - U S natural gas drilling activity is improving, with the Baker Hughes L48 Land Gas Rig Count up 19% in 2025[44,45] - Precision Drilling has reduced its outstanding shares by 9% since Q1 2024[26,27] International Operations - Precision Drilling has 8 rigs contracted internationally, with 5 in Kuwait and 3 in Saudi Arabia, with the majority on 5-year contracts extending into 2027/28[54]

Core Viewpoint - Precision Drilling reported a quarterly loss of $0.37 per share, significantly missing the Zacks Consensus Estimate of $1.2, and down from earnings of $1.69 per share a year ago, indicating an earnings surprise of -130.83% [1] Financial Performance - The company posted revenues of $335.67 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.77%, but down from $349.79 million in the same quarter last year [2] - Over the last four quarters, Precision Drilling has exceeded consensus revenue estimates two times [2] Stock Performance - Precision Drilling shares have declined approximately 10.3% since the beginning of the year, contrasting with the S&P 500's gain of 14.5% [3] Future Outlook - The company's earnings outlook will be crucial for determining the stock's immediate price movement, with current consensus EPS estimates at $1.14 for the coming quarter and $6.01 for the current fiscal year [4][7] - The Zacks Rank for Precision Drilling is currently 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Oil and Gas - Drilling industry is currently ranked in the bottom 11% of over 250 Zacks industries, suggesting that the industry's outlook could materially impact the stock's performance [8]

Core Viewpoint - Precision Drilling Corporation reported its third quarter 2025 results, highlighting a resilient performance despite a challenging North American drilling market, with a focus on shareholder returns and fleet investments to meet customer demand [2][4][10]. Financial Highlights - Revenue for Q3 2025 was $462 million, a 3% decrease from $477 million in Q3 2024, outperforming industry declines of 15% in Canada and 7% in the U.S. [7][18]. - Adjusted EBITDA was $118 million, down 17.4% from $142 million in Q3 2024, impacted by higher operating costs and share-based compensation [7][18]. - Net earnings attributable to shareholders were a loss of $7 million, compared to a profit of $39 million in Q3 2024, primarily due to increased deferred income tax expenses [7][18]. - Cash provided by operations was $76 million, enabling the company to repay $10 million of debt and repurchase $9 million of common shares [7][18]. - Capital expenditures for Q3 2025 were $69 million, with a revised 2025 capital budget increased to $260 million from $240 million [7][18]. Operational Highlights - The company operated 68 drilling rigs in Canada, with strong demand for Super Triple and Super Single rig classes, expecting near full utilization during the winter season [6][10]. - U.S. activity increased by over 10% year-over-year, with 39 active rigs compared to 30 in Q1 2025, driven by strength in natural gas basins [8][26]. - International operations averaged seven active rigs, generating stable free cash flow [9][27]. Market Positioning - Precision's favorable positioning in U.S. natural gas and Canadian heavy oil markets, combined with technical expertise, has allowed the company to capture opportunities for capital deployment [4][10]. - The company plans to allocate 35% to 45% of free cash flow to share repurchases, having already repurchased $54 million in shares year-to-date [11][23]. Strategic Outlook - The company anticipates strong demand for its North American Super Series rigs, with expectations for winter drilling activity to meet or exceed last year's levels [25][29]. - In the U.S., the natural gas rig count has increased approximately 20% year-to-date, reflecting positive customer sentiment towards LNG off-take and AI demand [26][29]. - Internationally, the company maintains long-term contracts for its rigs, with expectations for stable operations through 2027 and 2028 [27][29].

Core Viewpoint - Precision Drilling Corporation reported its third quarter results for 2025, highlighting a strong operational performance despite a challenging North American drilling market, with a focus on shareholder returns and fleet enhancements to meet customer demand [2][4][10]. Financial Highlights - Revenue for Q3 2025 was $462 million, a decrease of 3.1% from $477 million in Q3 2024, outperforming industry declines of 15% in Canada and 7% in the U.S. [8][13]. - Adjusted EBITDA was $118 million, down 17.4% from $142 million in the same quarter last year, primarily due to increased operating costs and share-based compensation [8][13]. - Net earnings attributable to shareholders were a loss of $7 million, compared to a profit of $39 million in Q3 2024, reflecting higher deferred income tax expenses [8][13]. - Cash provided by operations was $76 million, enabling the company to repay $10 million of debt and repurchase $9 million of common shares [8][11]. Operational Highlights - The company operated 68 drilling rigs in Canada and 39 in the U.S., with Canadian Super Triple and Super Single rig classes showing robust demand [6][7]. - U.S. activity increased by over 10% year-over-year, particularly in natural gas basins like Haynesville and Marcellus, despite a general decline in the North American drilling market [5][26]. - Canadian revenue per utilization day rose to $34,193, up from $32,325, while U.S. revenue per utilization day decreased to US$31,040 from US$32,949 [8][14]. Capital Expenditures and Debt Management - Capital expenditures for Q3 2025 were $69 million, with an increase in the capital budget for 2025 from $240 million to $260 million, driven by customer-funded upgrades [8][10]. - The company reduced long-term debt by over $100 million as of the end of Q3 2025, achieving its annual debt reduction target [11][25]. Strategic Outlook - The company remains optimistic about the winter drilling season in Canada, expecting activity levels to meet or exceed last year's performance, contingent on supportive commodity prices [24][29]. - Precision's strategy includes maximizing free cash flow, enhancing shareholder returns through debt reduction and share repurchases, and growing revenue through contracted upgrades and optimized pricing [25][21].

Core Viewpoint - Precision Drilling Corporation has appointed Mr. Carey Ford as the new President and Chief Executive Officer, succeeding Kevin Neveu, who has retired after 18 years in the role [1][6]. Leadership Changes - Mr. Ford has been with Precision since 2011 and served as Chief Financial Officer since 2016, where he has strengthened investor confidence and guided the company's financial strategy [2]. - The Board has also appointed Gene Stahl as Chief Operating Officer, who has over 28 years of experience with the company, and Dustin Honing as Chief Financial Officer, who has nearly 15 years of experience at Precision [4]. Strategic Direction - Mr. Ford expressed enthusiasm for his new role and emphasized the company's commitment to serving customers and operating safely, while also looking forward to guiding Precision into its next growth phase [3]. - The Board expressed full confidence in Mr. Ford's leadership and highlighted the company's focus on advancing its technology-driven strategy and delivering sustainable long-term value for stakeholders [5]. Company Overview - Precision is a leading provider of safe and environmentally responsible services to the energy industry, with a focus on High Performance and High Value services [7]. - The company offers an extensive fleet of Super Series drilling rigs and has developed a digital technology portfolio known as Alpha, which utilizes advanced automation software and analytics [7]. - Precision is headquartered in Calgary, Alberta, Canada, and is publicly traded on the Toronto Stock Exchange and the New York Stock Exchange [8].

Group 1 - The Daily Drilling Report is an investment group focused on providing analysis for the oil and gas industry, featuring a model portfolio that encompasses all segments of upstream oilfield activity with weekly updates [1] - The group offers investment ideas for both U.S. and international energy companies, covering a range from shale to deepwater drillers [1] - Technical analysis is utilized to identify catalysts within the oil and gas sector [1] Group 2 - Fluidsdoc is an international oil industry veteran with 40 years of experience, having worked across six continents and over twenty countries, specializing in the upstream oilpatch [2]

Group 1 - The Daily Drilling Report is an investment group focused on providing analysis for the oil and gas industry, featuring a model portfolio that encompasses all segments of upstream oilfield activity with weekly updates [1] - The group offers investment ideas for both U.S. and international energy companies, covering a range from shale to deepwater drillers [1] - Technical analysis is utilized to identify catalysts within the oil and gas sector [1] Group 2 - Fluidsdoc is an international oil industry veteran with 40 years of experience, specializing in the upstream oilpatch and having worked in over twenty countries [2]