Precision Drilling Announces 2025 First Quarter Unaudited Financial Results

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$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$200 million from the previously announced $225 million, reflecting a cautious approach amid market uncertainty [9][26]. - Precision aims to allocate 35$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].