Globenewswire·2026-02-11 23:51Core Viewpoint - Precision Drilling Corporation reported its fourth quarter and full year 2025 results, highlighting a strategic focus on capital allocation to enhance shareholder value while navigating a challenging energy market environment [2][3]. Financial Highlights - Fourth quarter revenue was $479 million, a 2.2% increase from $468 million in the same quarter last year, driven by higher U.S. rig activity [6][17]. - Adjusted EBITDA for the fourth quarter was $126 million, up 4.9% from $121 million in the previous year [6][17]. - The net loss attributable to shareholders was $42 million, translating to a loss of $3.23 per share, compared to net earnings of $15 million or $1.06 per share in the same period last year [6][17]. - For the year ended December 31, 2025, total revenue was $1.844 billion, a 3% decrease from $1.902 billion in 2024 [20][39]. - Cash provided by operations was $413 million, allowing for a debt reduction of $101 million and share repurchases totaling $76 million [20][26]. Operational Highlights - The company averaged 66 active drilling rigs in Canada, slightly up from 65 in the same quarter last year, while U.S. rig utilization increased by 25% over the last nine months of 2025 [6][14]. - Internationally, the company operated seven active rigs, down from eight in the fourth quarter of 2024, with revenue per utilization day increasing to $53,505 from $49,636 [6][14]. - Canadian well service rig operating hours increased by 6% year-over-year, totaling 61,231 hours [6][14]. Capital Allocation Plans - For 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][20]. - The capital spending plan includes $182 million for maintenance and infrastructure and $63 million for expansion and upgrades [32]. Strategic Priorities - The company aims to maximize free cash flow through disciplined capital deployment and strict cost management, targeting a sustained Net Debt to Adjusted EBITDA ratio below 1.0 times [26][30]. - Enhancing shareholder returns through debt reduction and share repurchases is a key focus, with plans to allocate 35% to 45% of free cash flow for share repurchases [26][30]. - Revenue growth is targeted through contracted upgrades and optimized pricing, with significant investments in customer-funded rig upgrades [26][30]. Market Outlook - The near-term outlook for global energy demand growth is tempered by geopolitical uncertainties, but there are signs of stabilization, particularly in natural gas markets [24][25]. - Long-term fundamentals for energy remain favorable, driven by economic expansion and rising energy needs from emerging economies [25][30].