Industry Overview - The Zacks Oil and Gas - Drilling industry includes companies providing rigs and services for oil and natural gas exploration and development, with operations both onshore and offshore [2] - Drilling for hydrocarbons is capital-intensive and technically challenging, primarily influenced by contracting activity rather than oil or gas prices [2] - Offshore drilling companies exhibit higher volatility compared to onshore counterparts, with their share prices more closely correlated to oil and gas prices [2] Current Challenges - The industry is facing significant challenges due to contracting delays, soft gas prices, and macroeconomic uncertainty, leading to a Zacks Industry Rank of 235, placing it in the bottom 4% of 245 Zacks industries [1][7] - Earnings estimates for the industry have declined sharply, with a drop of 85.2% for 2025 and 51.7% for 2026 over the past year, indicating a negative outlook [9] - The industry has underperformed compared to the broader Zacks Oil - Energy sector and the S&P 500, with a decline of 38.6% over the past year versus a 2.1% increase in the sector and a 9.1% gain in the S&P 500 [11] Market Trends - Macroeconomic uncertainty is causing hesitation in customer decision-making, slowing the pace of tenders and contract awards, and making near-term earnings visibility difficult for drillers [3] - There are concerns about premature rig reactivation leading to oversupply, particularly in deepwater segments, which could undermine pricing power and margins [4] - Despite short-term challenges, long-term demand for deepwater drilling is expected to grow, with forecasts indicating a 40% increase in investment by 2030, supported by large undeveloped reserves and major project approvals [5] Company Highlights - **Transocean Ltd. (RIG)**: Reported contract drilling revenues of $906 million in Q1 2025, an 18.7% increase year-over-year, with a market capitalization of $2.9 billion and a projected earnings growth of 123.1% for 2025 [18] - **Patterson-UTI Energy (PTEN)**: Generated $51 million in adjusted free cash flow in Q1 2025, with a market capitalization of $2.5 billion and a dividend yield of nearly 5% [21] - **Precision Drilling Corporation (PDS)**: Canada’s largest drilling rig contractor, with a market capitalization of $687.3 million, has seen its earnings estimate for 2025 increase from $3.84 to $4.13 per share in the past 60 days [24]

Core Viewpoint - PDS Biotechnology Corporation is hosting a virtual event to discuss the evolving treatment landscape for recurrent/metastatic HPV16-positive head and neck squamous cell carcinoma (HNSCC) in light of the Merck KEYNOTE-689 study and the rising incidence of HPV16-positive HNSCC in the US and Europe [1][2]. Company Overview - PDS Biotechnology is a late-stage immunotherapy company focused on innovative treatments that enhance the immune system's ability to target and eliminate cancers [7]. - The company's lead investigational therapy, Versamune® HPV, is currently in a Phase 3 clinical trial in combination with pembrolizumab for first-line treatment of recurrent/metastatic HPV16-positive HNSCC [2][7]. Event Details - The event will feature key opinion leaders, including Kevin Harrington and Katharine A. Price, who will discuss the unmet needs in treating HPV16-positive HNSCC and the distinct characteristics of HPV-positive versus HPV-negative HNSCC [1][2][3]. - A live Q&A session will follow the formal presentations, allowing for direct engagement with the experts [3]. Clinical Trials and Research - Versamune® HPV is being evaluated in multiple clinical trials, including a Phase 3 trial in combination with pembrolizumab and Phase 2 trials for various HPV16-positive cancers [2]. - The event will also address the emerging treatment landscape for first-line recurrent/metastatic HNSCC and the differentiation between HPV-positive and HPV-negative cases [2]. Speakers' Expertise - Kevin Harrington is a leading authority on metastatic head and neck cancer and has significant experience in clinical trials related to HNSCC treatments [4]. - Katharine A. Price specializes in head and neck cancers and is involved in research aimed at improving treatment access and awareness regarding HPV vaccination [5].

Group 1 - The articles express personal opinions and do not constitute investment recommendations [2][3] - The authors have disclosed beneficial long positions in specific stocks, indicating potential bias [1] - There is an emphasis on the importance of performing due diligence before making investment decisions [2][3] Group 2 - Past performance is highlighted as not being a guarantee of future results, which is a common disclaimer in investment analysis [3] - The platform does not act as a licensed securities dealer or investment adviser, indicating that the information provided is for informational purposes only [3]

Core Points - Precision Drilling Corporation successfully elected all eight nominee directors at its 2025 Annual and Special Meeting of Shareholders, with seven being independent [1] - The voting results showed high approval rates for the nominee directors, with William T. Donovan receiving 97.27% of votes in favor and Lori A. Lancaster receiving 98.62% [2] - All other business items, including the advisory vote on executive compensation, were also approved at the meeting [2] Company Overview - Precision Drilling is a leading provider of high-performance and environmentally responsible services to the energy industry, featuring an extensive fleet of Super Series drilling rigs [4] - The company has developed a digital technology portfolio known as Alpha™, which employs advanced automation software and analytics to enhance operational efficiency [4] - Precision also offers a suite of environmental solutions called EverGreen™, aimed at minimizing the environmental impact of its operations [4] - The company is headquartered in Calgary, Alberta, Canada, and is publicly traded on the Toronto Stock Exchange and the New York Stock Exchange under the symbols "PD" and "PDS" respectively [5]

Core Insights - PDS Biotechnology Corporation has initiated the VERSATILE-003 Phase 3 clinical trial for its investigational therapy Versamune® HPV targeting recurrent/metastatic HPV16-positive head and neck squamous carcinoma [4][9] - The company reported a net loss of approximately $8.5 million for Q1 2025, a decrease from $10.6 million in Q1 2024, attributed to lower operating expenses and increased tax benefits [6][7] - PDS Biotech's cash balance as of March 31, 2025, was $40 million, down from $41.7 million at the end of 2024 [8][15] Clinical Updates - The VERSATILE-003 trial is designed to include around 350 patients and is a two-arm controlled trial with a 2:1 randomization [6][4] - The primary endpoint of the trial is median overall survival, with interim readouts included in the study design [6][4] - The FDA has granted Fast Track designation for the combination of Versamune® HPV and pembrolizumab in treating recurrent/metastatic HNSCC [6][4] Financial Performance - Research and development expenses for Q1 2025 were $5.8 million, down from $6.7 million in Q1 2024, primarily due to reduced clinical trial expenses [7][6] - General and administrative expenses were slightly lower at $3.3 million for Q1 2025 compared to $3.4 million in Q1 2024 [7][6] - Total operating expenses decreased to $9.1 million in Q1 2025 from approximately $10.1 million in Q1 2024 [8][6] Corporate Developments - Three abstracts on Versamune® HPV were selected for presentation at the 2025 ASCO Annual Meeting scheduled for May 30-June 3, 2025 [6][4] - The company has entered into securities purchase agreements for the sale of 7,330,121 shares of common stock, raising approximately $11 million upon closing [6][4]

Core Points - Precision Drilling Corporation is holding its 2025 Annual and Special Meeting of Shareholders on May 15, 2025, at 10:00 a.m. MST in a virtual-only format, allowing equal participation for all shareholders regardless of location [1] - Shareholders can access the meeting online, listen, ask questions, and vote in real time if connected to the internet, with advance proxy voting available as in previous years [2][3] - Additional information regarding participation and voting instructions is available in Precision's Management Information Circular and Virtual AGM User Guide on their website [3] Company Overview - Precision Drilling is a leading provider of safe and environmentally responsible services to the energy industry, offering access to a fleet of Super Series drilling rigs and a digital technology portfolio known as Alpha [4] - The company emphasizes its commitment to reducing environmental impact through its EverGreen suite of environmental solutions and provides well service rigs, camps, and rental equipment supported by skilled personnel [4] - Precision is headquartered in Calgary, Alberta, Canada, and is listed on the Toronto Stock Exchange under the symbol "PD" and on the New York Stock Exchange under "PDS" [5]

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q1 2025 was $137 million, a decrease from $143 million when excluding share-based compensation and restructuring charges [6][7] - Revenue for the quarter was $496 million, a decrease of 6% from Q1 2024 [7] - Net earnings were $35 million or $2.52 per share, marking the 11th consecutive quarter of positive earnings [8] - Funds from operations were $110 million, with cash provided by operations at $63 million [8] - Long-term debt position net of cash was approximately $778 million, with a net debt to trailing 12-month EBITDA ratio of approximately 1.5x [17][18] Business Line Data and Key Metrics Changes - In the U.S., drilling activity averaged 30 rigs in Q1, a decrease of 4 rigs from the previous quarter, with daily operating margins at US$8,360, down US$787 from Q4 [8][9] - Canadian drilling activity averaged 74 rigs, an increase of 1 rig from Q1 2024, with daily operating margins at $14,779, a decrease of $858 from Q1 2024 [13] - Internationally, drilling activity averaged 8 rigs, with average day rates at US$49,419, a decrease of 6% from the prior year [14] Market Data and Key Metrics Changes - U.S. daily operating costs were unusually high due to rig activations and mobilizations, with expected normalized margins between US$7,000 and US$8,000 for Q2 [9][10] - In Canada, the market remains strong with LNG Canada’s first shipments imminent, supporting long-term stability in the Montney region [27][30] Company Strategy and Development Direction - The company plans to maintain a strong presence in key regions while managing costs effectively to drive down operating costs throughout 2025 [11][12] - Capital expenditures for Q1 were $60 million, with a full-year capital plan reduced from $225 million to $200 million [15][40] - The company aims to reduce debt by $700 million between 2022 and 2027, with a target of $100 million for 2025 [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding customer sentiment in the U.S. and Canada, with ongoing interest in gas-directed drilling despite macroeconomic uncertainties [24][36] - The company is focused on free cash flow and maintaining capital discipline while being well-positioned for emerging opportunities [25][34] - Management noted that customers are managing costs tightly and are in a strong financial position, which supports ongoing drilling programs [29][30] Other Important Information - The company exited the North Dakota market due to competitive pressures and is reallocating resources back to Canada [32] - The company has recognized a $230 million balance on its 2026 note as current debt and plans to reduce this balance by at least $80 million in the last three quarters of the year [18] Q&A Session Summary Question: Thoughts on performance model versus day rate model - Management prefers the a la carte style of base rate for rigs, with about one-third of U.S. rigs under performance contracts [50][51] Question: Rationale for continuing debt reduction over stock buybacks - Management emphasizes a commitment to deleveraging and maintaining a strong capital structure, targeting a net debt to EBITDA ratio below 1x [55][56] Question: Impact of capital expenditure reduction on free cash flow - Management is confident in meeting capital allocation guidance and is focused on managing cash outflows tightly [62] Question: Changes in U.S. margins and impact of restructuring - Management expects margins to improve as fixed costs decrease with increased rig activity [66][67] Question: Rig mobilization and reactivation costs - Typical costs for rig mobilization or reactivation range from $500,000 to $1 million [75][76] Question: Impact of tariffs on capital and operating costs - Tariffs primarily affect drill pipe costs, but management believes they can manage the impact effectively [84][86] Question: Pricing pressures in Canada - Management acknowledges ongoing pricing pressures from customers but expects to manage margins effectively [93][94]

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q1 was $137 million, driven by strong drilling activity in Canada and steady cash flow from operations in the U.S. and Middle East [4][5] - Revenue for the quarter was $496 million, a decrease of 6% from Q1 2024 [5] - Net earnings were $35 million or $2.52 per share, marking the eleventh consecutive quarter of positive earnings [5] - Funds from operations were $110 million, with cash provided by operations at $63 million [5] - Long-term debt position net of cash was approximately $778 million, with total liquidity around $570 million [11][12] Business Line Data and Key Metrics Changes - In the U.S., drilling activity averaged 30 rigs in Q1, a decrease of four rigs from the previous quarter, with daily operating margins at $8,360, down $7.87 from Q4 [5][6] - In Canada, drilling activity averaged 74 rigs, an increase of one rig from Q1 2024, with daily operating margins at $14,779, a decrease of $858 from the prior year [9] - Internationally, drilling activity averaged eight rigs, with average day rates at $49,419, a decrease of 6% from the prior year [9] Market Data and Key Metrics Changes - U.S. drilling activity is expected to see normalized margins between $7,000 and $8,000 for Q2 [6] - Canadian market remains strong with LNG Canada's first shipments imminent, expected to drive stable Montney gas activity [19] - Internationally, contract awards have slowed, particularly in Saudi Arabia, with one rig suspended [28][92] Company Strategy and Development Direction - The company aims to maintain a strong presence in key regions while managing costs effectively [6][7] - A commitment to reducing debt by $700 million between 2022 and 2027, with a target debt reduction of $100 million for 2025 [12][13] - Focus on free cash flow generation while remaining poised for emerging opportunities [15][31] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding customer sentiment in both the U.S. and Canada, despite macroeconomic uncertainties [15][19] - Customers are closely monitoring oil prices, but drilling plans remain largely unaffected [15][25] - The company is focused on managing margins effectively and is not projecting a significant reduction in pricing [69][71] Other Important Information - Capital expenditures for Q1 were $60 million, with a full-year capital plan reduced from $225 million to $200 million [10] - The company exited the North Dakota market due to competitive pressures and is reallocating resources back to Canada [21] - The company is actively managing its cost structure to drive down operating costs throughout 2025 [8][30] Q&A Session Summary Question: Thoughts on performance model versus day rate model - Management prefers the a la carte style of base rate for rigs, with about a third of U.S. rigs under performance contracts [35][36] Question: Rationale for continuing debt reduction over stock buybacks - The company is committed to deleveraging and maintaining a strong capital structure, targeting a net debt to EBITDA ratio below one [38][40] Question: Impact of capital reduction on free cash flow - The capital reduction is not expected to impact cash flow guidance, as the company is focused on managing all cash outflows tightly [47] Question: Changes in U.S. margins post-restructuring - Margins are expected to improve as more rigs are added, despite some initial noise from rig mobilizations [49][50] Question: Rig mobilization and reactivation costs - Costs for rig mobilization or reactivation typically range from $500,000 to $1,000,000 [57][58] Question: Pricing pressures in Canada - There are ongoing pricing pressures from customers, but management expects to manage margins effectively [68][70] Question: Conversations with producers regarding capital spending - Conversations indicate that low oil prices in the U.S. and Canada could lead to increased uncertainty in capital spending plans [80][82]

Core Viewpoint - Precision Drilling reported quarterly earnings of $1.53 per share, missing the Zacks Consensus Estimate of $1.57 per share, and down from $1.88 per share a year ago, indicating a negative earnings surprise of -2.55% [1][2] Financial Performance - The company posted revenues of $345.72 million for the quarter, missing the Zacks Consensus Estimate by 0.85%, and down from $391.51 million year-over-year [2] - Over the last four quarters, Precision Drilling has surpassed consensus EPS estimates two times and topped revenue estimates only once [2] Stock Performance - Precision Drilling shares have declined approximately 29.6% since the beginning of the year, compared to a decline of -10.1% for the S&P 500 [3] - The stock currently holds a Zacks Rank 5 (Strong Sell), indicating expectations of underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.22 on revenues of $293.72 million, and for the current fiscal year, it is $5.13 on revenues of $1.34 billion [7] - The estimate revisions trend for Precision Drilling has been unfavorable ahead of the earnings release [6] Industry Context - The Oil and Gas - Drilling industry is currently ranked in the bottom 14% of over 250 Zacks industries, suggesting a challenging environment for stocks in this sector [8]

Core Insights - Precision Drilling Corporation reported its first quarter results for 2025, highlighting a decrease in revenue and adjusted EBITDA compared to the same period in 2024, while maintaining a commitment to shareholder returns and debt reduction [2][8][18]. Financial Highlights - Revenue for Q1 2025 was $496 million, down 6% from $528 million in Q1 2024 [8][13]. - Adjusted EBITDA decreased to $137 million from $143 million year-over-year, reflecting a 3.9% decline [8][13]. - Net earnings attributable to shareholders were $35 million, or $2.52 per share, compared to $37 million, or $2.53 per share in the previous year [8][13][18]. - Cash provided by operations was $63 million, enabling the company to repurchase $31 million in shares and reduce debt by $17 million [8][18][27]. Operational Highlights - Canadian drilling activity averaged 74 active rigs, slightly up from 73 in 2024, while U.S. activity averaged 30 rigs, down from 38 [6][14]. - Revenue per utilization day in Canada was $35,601, consistent with the previous year, while U.S. revenue per utilization day was $33,157, a 0.9% increase [8][14]. - Service rig operating hours decreased by 10% due to project deferrals and an earlier spring breakup [8][15]. Strategic Initiatives - The company has reduced its 2025 capital budget to $200 million from the previously announced $225 million, reflecting a cautious approach amid market uncertainty [9][26]. - Precision aims to allocate 35% to 45% of free cash flow before debt repayments to share buybacks, with a commitment to repaying at least $100 million of debt in 2025 [8][27]. - The company is focused on maximizing free cash flow through disciplined capital deployment and strict cost management [20][27]. Industry Outlook - Near-term expectations for global energy demand growth are tempered by geopolitical events, but long-term fundamentals remain positive due to economic growth and increasing demand from emerging economies [21][22]. - In Canada, the operationalization of the Trans Mountain pipeline and LNG Canada is expected to support drilling activity [22][23]. - The U.S. is anticipated to see increased natural gas drilling activity due to significant LNG export capacity expansion [24][25].