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 Data and Key Metrics Changes - Adjusted EBITDA for Q2 2025 was $108 million, exceeding expectations, driven by strong drilling activity in Canada and improved activity in the U.S. [4][5] - Revenue decreased by 5% year-over-year to $407 million, while net earnings were $60 million or $1.21 per share, marking the twelfth consecutive quarter of positive earnings [5][11] - Funds from operations were $104 million, and cash provided by operations was $147 million [5][11] Business Line Data and Key Metrics Changes - In the U.S., drilling activity averaged 33 rigs in Q2, an increase of three rigs from the previous quarter, with operating days up 13% [6][7] - Daily operating margins in the U.S. were $9,026, an increase of $666 from Q1, exceeding guidance [6] - In Canada, drilling activity averaged 50 rigs, with daily operating margins of $15,306, up $883 from Q2 2024 [8] - The Completion and Production Services segment saw adjusted EBITDA of $10 million, down 18% year-over-year due to a 23% decrease in well service hours [9] Market Data and Key Metrics Changes - Internationally, drilling activity averaged seven rigs, with average day rates increasing by 4% year-over-year to $53,129 [8] - The overall market for oil and gas has seen increased prices, with rig counts stable or up in key basins like Haynesville and Marcellus [11] Company Strategy and Development Direction - The company plans to increase its capital expenditures for 2025 from $200 million to $240 million, focusing on sustaining infrastructure and upgrades [9][12] - Precision Drilling aims to reduce debt by $700 million between 2022 and 2027, having already reduced $525 million [13] - The company is focusing on maximizing free cash flow and has implemented cost reduction plans to manage expenses effectively [30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about customer demand for gas-directed drilling, with expectations of increased rig activity in the U.S. [14][15] - The outlook for the remainder of 2025 has improved significantly, with strong customer demand for rig upgrades and term contracts [14][15] - Management noted that while macro uncertainties persist, the company is well-positioned to capitalize on market opportunities [14][15] Other Important Information - The company has a strong liquidity position of approximately $530 million, with a net debt to trailing twelve-month EBITDA ratio of 1.3 times [11] - The company is committed to reducing its debt and returning capital to shareholders through share repurchases [12][13] Q&A Session Summary Question: Growth in the U.S. Market - Management noted that the growth in gas-based work is primarily driven by private companies, with expectations to increase rig counts to 40-45 over time [38][40] Question: Canadian Market Dynamics - Management discussed the oversupply in the double rig segment and the need for consolidation among service providers to improve pricing discipline [42][45] Question: Contract Durations and Upgrades - Management clarified that most rig upgrades do not require long-term contracts to recoup costs, with many upgrades expected to generate returns within six months to a year [52][54] Question: Future Rig Capabilities - Management indicated that upgraded rigs will reach peak capabilities, allowing for efficient drilling of longer laterals in key basins [70][73] Question: Customer Interest in Electrification - There is currently limited interest from Canadian operators in electrifying service rigs, although there is some interest in high-line power drilling rigs [81] Question: Breakdown of Rig Upgrades - The majority of the 22 rig upgrades are targeted in the Haynesville, Marcellus, Montney, and Canadian heavy oil basins [86]