Precision Drilling (PDS) Earnings Call Presentation

Financial Highlights - Precision Drilling anticipates a free cash flow yield potential of approximately 25% in 2025[11] - Analyst estimates for 2025 free cash flow are $226 million, against an equity market cap of $937 million, resulting in an estimated FCF yield of 24%[12] - The company aims to reduce total debt by at least $100 million in 2025[19] - A long-term debt reduction target has been increased to $700 million from 2022-2027, with $452 million already paid as of March 31, 2025[23] Operational Performance - Precision Drilling is the 1 land driller in Canada with 98 highly desirable rigs and a top land driller in the US with 104 rigs (66 Super Spec)[9] - The company is also the 1 well service provider in Canada with 153 rigs[9] - Canadian day rate margins have increased by 67% over the last 3 years[51] - US day rate margins have increased by over 60% in the last 3 years[66] Strategic Priorities - Maximize free cash flow and enhance shareholder returns are key strategic priorities for 2025[18] - The company plans to allocate 35%-45% of free cash flow to share repurchases in 2025 and is moving towards 50% of free cash flow for direct shareholder returns[19] - The company is focused on growing revenue in existing service lines through disciplined capital deployment, strict cost management, and opportunistic consolidating tuck-in acquisitions[19, 20]