CALGARY, Alberta, Feb. 27, 2026 (GLOBE NEWSWIRE) -- Precision Drilling Corporation (“Precision” or the “Company”) (TSX:PD; NYSE:PDS) today announced that its common shares have been approved for dual listing on NYSE Texas, a fully electronic equities exchange headquartered in Dallas, Texas, which launched in March 2025. Precision will maintain its primary listing on the New York Stock Exchange (NYSE) and trade with the same “PDS” ticker symbol on NYSE Texas, effective March 2, 2026. The Company’s common sha ...

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 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].

Group 1 - KLX Energy Services (KLXE) is part of the Oils-Energy group, which consists of 234 companies and is currently ranked 15 in the Zacks Sector Rank [2] - KLXE has a Zacks Rank of 2 (Buy), indicating a positive outlook based on earnings estimates and revisions [3] - The Zacks Consensus Estimate for KLXE's full-year earnings has increased by 6% over the past 90 days, reflecting improved analyst sentiment [3] Group 2 - KLXE has returned approximately 24.3% year-to-date, outperforming the average gain of 16.1% for Oils-Energy stocks [4] - Another stock in the Oils-Energy sector, Precision Drilling (PDS), has also outperformed with a year-to-date return of 22.7% [4] - KLXE belongs to the Oil and Gas - Field Services industry, which is ranked 71 in the Zacks Industry Rank, with an average gain of 28.9% this year, indicating slight underperformance relative to its industry [6] Group 3 - Precision Drilling is categorized under the Oil and Gas - Drilling industry, currently ranked 88, which has seen a significant increase of 40.4% since the beginning of the year [7] - Investors in the Oils-Energy sector should monitor both KLX Energy Services and Precision Drilling for their ongoing performance [7]

Core Insights - The oil and energy sector is facing significant challenges due to volatile commodity prices and market instability, with oil prices dropping and natural gas prices increasing, leading to a mixed outlook for energy companies [1] - Analysts predict weaker-than-usual results for the fourth-quarter earnings season, but there is potential for some energy stocks to exceed expectations [1] Oil and Natural Gas Pricing Dynamics - In Q4 FY25, West Texas Intermediate crude prices averaged $59.64 per barrel, down from $70.69 in the previous year, primarily due to a global supply surplus [2] - OPEC+ countries began easing production restraints, contributing to increased supply, while non-OPEC sources also expanded production, raising global inventories by up to 2 million barrels per day [2] Demand Conditions - Demand for oil remained soft, influenced by slower economic growth in major markets like China and Europe, alongside long-term trends such as increased electric vehicle adoption and energy efficiency [3] Natural Gas Pricing - Natural gas prices rose in Q4 FY25, with the Henry Hub spot price averaging $3.75 per million British thermal units, up from $2.44 in the prior year, driven by colder winter temperatures and increased LNG exports [4] Earnings Performance - As of now, 47.2% of S&P 500 companies have reported Q4 earnings, with 37.5% of oil and energy companies showing strong growth, with earnings up 40.4% year over year despite a slight revenue decline of 1.4% [5] - The blended outlook for the sector indicates a projected earnings growth of 14% year over year, with a smaller revenue decline of 0.4% and a net margin of 1.11% [6] Company-Specific Insights - Antero Resources Corporation (AR) is expected to report a 10.34% decrease in earnings per share, with a consensus estimate of 52 cents, having missed estimates in three of the last four quarters [11][13] - Nabors Industries Ltd. (NBR) is projected to report a wider loss, with an expected adjusted loss of $2.93 per share, reflecting a 56.07% increase from the previous year [15] - TotalEnergies SE (TTE) is anticipated to earn $1.80 per share, down 5.26% year over year, having missed estimates in three of the last four quarters [17] - Precision Drilling Corporation (PDS) is expected to report earnings of $1.11 per share, indicating a 46.05% increase from the prior year, but has also missed estimates in three of the last four quarters [20]

Core Insights - Nabors Industries Ltd. (NBR) is a prominent global land-drilling contractor providing services in nearly 20 countries, including oil, gas, and geothermal drilling, along with wellsite support services [1] - The company is currently facing significant challenges, including a series of loss-making quarters that have eroded market confidence and investor sentiment [2] Financial Performance - NBR's shares have declined by 2.1% over the past year, underperforming the broader oil and energy sector, which rose by 3.3%, but outperformed the Oil & Gas Drilling sub-industry's loss of 13.2% [3] - The company reported an adjusted loss of $3.67 in Q3 2025, missing the Zacks Consensus Estimate significantly, with an average negative surprise of 132.44% over the last four quarters [6][9] Operational Challenges - Persistent losses and earnings misses have weakened investor confidence, with free cash flow remaining fragile and reliant on one-off asset sales, such as the $625 million Quail Tools sale [7][11] - High capital expenditures are expected to continue, limiting financial flexibility and raising concerns about the company's ability to fund operations and reward shareholders without further asset divestments [12] Market Conditions - In the U.S. Lower 48, Nabors faces margin pressure due to rig churn, labor inefficiencies, and rising repair costs, which have offset any modest improvements in daily revenues [13] - The company's operations in Mexico present additional risks, including delayed payments from PEMEX and potential rig suspensions, negatively impacting cash flow visibility [14] Investment Outlook - The overall investment case for Nabors appears weak, with ongoing losses, fragile free cash flow, and elevated capital commitments limiting potential shareholder returns [15] - The stock has underperformed peers like Precision Drilling, Valaris, and Transocean, and lacks clear catalysts for a turnaround, suggesting a sell or exit strategy may be prudent for investors [16]

Core Insights - Transocean Ltd.'s shares have increased by 43.4% over the past six months, significantly outperforming the Oil & Gas Drilling sub-industry and the broader energy sector [1][8] - The company has emerged as a turnaround story, enhancing investor confidence through improved financial metrics and operational performance [3][4] Financial Performance - Transocean reduced its gross debt by approximately $1.2 billion, improving its balance sheet and lowering refinancing risk [5] - The company reported a debt to capitalization ratio of 37.5%, significantly better than Nabors Industries at 71.4% [5] - The Zacks Consensus Estimate for Transocean's 2025 earnings is projected at 5 cents per share, reflecting a year-over-year growth of 119.2% [12] Revenue and Backlog - Transocean anticipates contract drilling revenues of $3.8-$3.95 billion for 2026, with about 89% already secured under firm contracts [6] - Recent contract wins, including a six-well contract in Australia and a rig contract extension, have added approximately $298 million to its backlog [6] Market Dynamics - Management expects ultra-deepwater rig utilization to exceed 90% by late 2026, driven by increased offshore investment [9] - Fleet rationalization efforts are focused on retiring older rigs, which supports healthier industry dynamics and operating margins [9] Competitive Landscape - Compared to peers, Transocean's stock performance has outpaced Precision Drilling and Patterson-UTI, although Nabors Industries has shown even stronger growth [1][13] - The Zacks Consensus Estimate for Precision Drilling and Patterson-UTI indicates significant declines in earnings, contrasting with Transocean's growth outlook [13] Challenges - Despite debt reductions, Transocean will still exit 2025 with approximately $5.9 billion in debt, which poses financial risks [10] - The company faces near-term pressure on day rates, particularly for lower-specification rigs, which could hinder margin expansion [10][16] - Ongoing capital intensity and exposure to volatile commodity cycles remain significant challenges for the company [11][16]

Core Viewpoint - Precision Drilling Corporation has reported strong financial performance and disciplined capital allocation, achieving its 2025 debt reduction target and maintaining a robust liquidity position [2][3][4]. Financial Performance - In 2025, Precision reduced its debt by $101 million, achieving its annual debt reduction goal, ending the year with a cash balance of approximately $85 million and total available liquidity of approximately $447 million [3]. - The company has reduced its debt by $535 million over the past four years and aims to reach a sustained Net Debt to Adjusted EBITDA leverage ratio of below 1.0 times [4]. - Precision returned $76 million to shareholders through share repurchases in 2025, meeting its target of allocating 35% to 45% of free cash flow before debt repayments to share buybacks [5]. Capital Allocation Strategy - Precision has allocated $1.7 billion of its free cash flow to debt repayments and share buybacks over the past decade, while investing over $1.5 billion in its fleet and completing two acquisitions [6]. - The company plans to further reduce debt and increase share buyback allocation in 2026, with specific capital allocation plans to be provided in February [7]. Operational Update - Precision's average active rig count in Canada remained robust at 66, with expectations to peak at 87 during the winter drilling season [10]. - In the U.S., the company averaged 37 rigs in the fourth quarter, with a 21% increase in the natural gas rig count in 2025 [11]. - Internationally, Precision expects to maintain seven active rigs throughout 2026, supported by long-term contracts [12]. CEO Commentary - The CEO highlighted the substantial free cash flow generated in 2025, which allowed the company to meet its debt reduction and share repurchase targets while upgrading rigs to meet customer needs [14].

Group 1 - Precision Drilling Corporation plans to release its 2025 fourth quarter and year-end results on February 11, 2026, after market close [1] - A conference call is scheduled for February 12, 2026, at 11:00 a.m. MT (1:00 p.m. ET) to discuss the results [1] - Participants can register for the conference call to receive a dial-in number and unique PIN for questions [2] Group 2 - Precision Drilling is a leading provider of safe and environmentally responsible services to the energy industry, with a fleet of Super Series drilling rigs [5] - The company has developed an industry-leading digital technology portfolio called Alpha™, which utilizes advanced automation software and analytics [5] - Precision's services are complemented by the EverGreen™ suite of environmental solutions, aimed at reducing the environmental impact of operations [5] Group 3 - Precision Drilling 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" [6] - For further information, Precision provides contact details for its Vice President of Investor Relations [7]

Core Viewpoint - U.S. stock futures are mostly lower, with Nasdaq 100 futures down approximately 0.1% [1] Group 1: Company Movements - SeaStar Medical Holding Corp (NASDAQ:ICU) shares fell 9.5% to $0.21 in pre-market trading following a 1-for-10 reverse split announcement [1] - Coincheck Group NV (NASDAQ:CNCK) decreased by 11% to $2.28 in pre-market trading [2] - Ascent Solar Technologies, Inc. (NASDAQ:ASTI) dropped 7.6% to $4.67 after a 30% increase on Tuesday [2] - Jet.AI Inc (NASDAQ:JTAI) fell 5.3% to $0.82 after a 28% decline on Tuesday, despite announcing a joint venture with Choo Choo Express for a 50-mw data center in Nevada [2] - Lifestance Health Group Inc (NASDAQ:LFST) declined 3.7% to $6.80 in pre-market trading [2] - Precision Drilling Corp (NYSE:PDS) fell 3.3% to $66.96 in pre-market trading [2] - Vasta Platform Ltd (NASDAQ:VSTA) decreased by 3.1% to $4.80 in pre-market trading [2]