Precision Drilling Meets 2024 Debt Repayment and Share Repurchase Targets and Provides Capital Allocation, Financial and Operational Updates

Debt Repayment and Liquidity - Precision reduced debt by $176 million in 2024, achieving the mid-point of its debt reduction target range [3] - The company ended 2024 with a cash balance of approximately$74 million, compared to $54 million at year-end 2023 [3] - Total available liquidity at year-end 2024 was approximately$575 million [3] Capital Allocation and Shareholder Returns - Precision remains committed to its long-term debt reduction target of repaying $600 million between 2022 and 2026 [4] - The company returned$75 million to shareholders through share repurchases in 2024, reducing outstanding shares by 4% to 13,779,502 [5] - Since 2015, Precision has allocated $1.5 billion of free cash flow to debt repayments and share buybacks [6] - Annual interest expense decreased to approximately$40 million in 2024 from $104 million in 2016 [6] Financial and Operational Performance - Precision expects to release 2024 fourth quarter results on February 12, 2025, with drilling field margins in Canada and the U.S. aligning with previous guidance [8] - Share-based compensation expense for Q4 2024 is expected to be approximately$15 million, with full-year expense at $47 million [8] - In Canada, Precision maintained an average active rig count of 65 in Q4 2024, with current active rigs at 78 and expected to peak in the low to mid-80s during winter [9] - In the U.S., Precision averaged 34 rigs in Q4 2024, with 32 rigs currently operating and four earning standby revenue [11] - Internationally, Precision has eight active rigs under long-term contracts extending into 2028, with three in Saudi Arabia and five in Kuwait [12] Future Outlook and Strategy - Precision plans to further reduce debt and increase share buyback allocation in 2025, with specific capital allocation plans to be provided in February 2025 [7] - The company expects continued high activity levels for its Well Service business, with 85 to 100 crews projected to be operational in early January 2025 [12] - Precision's CFO highlighted the company's robust free cash flow generation in 2024, driven by increased activity in Canada, international growth, and the integration of CWC Energy Services [13] Company Overview - Precision is a leading provider of drilling services, offering an extensive fleet of Super Series drilling rigs and industry-leading digital technology portfolio known as Alpha [14] - The company's EverGreen suite of environmental solutions enhances its commitment to reducing environmental impact [14] - Precision also offers well service rigs, camps, rental equipment, and technical support services [14]