Precision Drilling Announces 2024 Fourth Quarter and Year End Unaudited Financial Results

Core Viewpoint - The company demonstrated resilience in the market despite challenges in U.S. customer demand and budget exhaustion in Canada, achieving significant debt reduction and shareholder returns while investing in core business lines [4][6][12]. Financial Highlights - Revenue for Q4 2024 was $468 million, an 8$121 million, down 20.3% from $151 million in Q4 2023 [6][19]. - Net earnings attributable to shareholders in Q4 2024 were$15 million, a significant drop of 89.8% compared to $147 million in Q4 2023 [6][19]. - For the year ended December 31, 2024, revenue was$1.902 billion, a slight decrease of 1.8% from 2023 [14][21]. Operational Highlights - Canadian drilling rig utilization days increased by 12% in 2024, while international drilling rig utilization days rose by 37% [8][9]. - The company maintained a consistent contract drilling rig fleet of 214 rigs throughout 2024 [16][34]. - Service rig operating hours increased by 26% year-over-year, reflecting successful integration of acquisitions [10][39]. Capital Allocation and Debt Management - The company reduced debt by $176 million in 2024 and plans to reduce it by at least$100 million in 2025, with a long-term target of $700 million by 2027 [12][25]. - Shareholder returns were increased to 35$217 million, with plans to invest approximately $225 million in 2025 [11][21]. Market Outlook - The outlook for Canadian drilling remains strong due to robust heavy oil activity and the startup of the Trans Mountain pipeline expansion [5][24]. - In the U.S., drilling activity is expected to improve in the second half of 2025 as new LNG export capacity is added [29][27]. - Internationally, the company has secured long-term contracts, providing predictable cash flow through 2027 and 2028 [9][30].