Q2 2025 Precision Drilling Corp Earnings Call Transcript
Key Points
- Precision Drilling Corp (PDS) reported stronger-than-expected Q2 financial results with adjusted EBITDA of $108 million, driven by robust drilling activity in Canada and improved activity in the US.
- The company achieved its 12th consecutive quarter of positive earnings, with net earnings of $16 million or $1.21 per share.
- Precision Drilling Corp (PDS) has successfully reduced its long-term debt by $74 million in Q2, with a target to reduce debt by $700 million between 2022 and 2027.
- The company has seen increased customer demand for rig upgrades, leading to a capital plan increase from $200 million to $240 million for 2025.
- Precision Drilling Corp (PDS) has locked in additional term contracts in the US and Canada, with strong demand for its Super Triple rigs in North American gas basins.
- Revenue for Q2 was $407 million, a decrease of 5% from Q2 2024.
- The Completion and Production Services segment saw a decline in adjusted EBITDA by 18% compared to the prior year quarter, impacted by a 23% decrease in well service hours.
- Canadian activity has been slower to rebound compared to last year, with a reduction in customer demand for the telescoping doubles rig segment.
- The company faces macro uncertainties, including potential deterioration of US and Canada trade relations and tariff discussions.
- Precision Drilling Corp (PDS) has experienced contract churn in the US oil plays, particularly in West Texas, which could impact future rig activations.
Good day and thank you for standing by. Welcome to the Precision Drilling Corporation 2025 second-quarter results conference call and webcast. I would now like to hand the conference over to Lavonne Zdunich, Vice President of Investor Relations. Please go ahead.
Thank you, operator. Welcome, everyone, to Precision Drilling's second-quarter conference call and webcast. Today, I'm joined by Kevin Neveu, Precision's President and CEO; and Carey Ford, our CFO.
Yesterday, we reported our second-quarter results. To begin our call today, Carey will review these results, and then Kevin will provide an operational update and outlook commentary. Once we finished our prepared comments, we will open the call for questions.
Please note that some comments today will refer to non-IFRS financial measures and include forward-looking statements, which are subject to a number of risks and uncertainties. For more information on financial measures, forward-looking statements and risk
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