The following is a summary of the Precision Drilling Corporation (PDS) Q3 2024 Earnings Conference Call Transcript:

Financial Performance:

• Precision Drilling reported strong financial growth in Q3, with significant increases in revenue, adjusted EBITDA, and net earnings.

• Adjusted EBITDA stood at CAD142 million, including a CAD200,000 share-based compensation recovery. Net earnings reached CAD39 million or CAD2.77 per share.

• Debt reduction amounted to CAD49 million for the quarter, contributing to a year-to-date total of CAD152 million, aligning with their debt reduction target for 2024.

• Share repurchases during the quarter were CAD17 million, with a year-to-date total of CAD50 million, reflecting the company's commitment to returning value to shareholders.

• Capital expenditures were adjusted up to CAD210 million from CAD195 million for 2024, to fund contracted rig upgrades and pre-purchase drill pipes ahead of potential import tariffs.

Business Progress:

• Precision Drilling is enhancing its capital structure, aiming to lower its debt leverage below one times EBITDA, alongside increasing direct shareholder returns towards 50%.

• Investment in rig upgrades and procurement of in-demand drill pipe for 2025 are examples of the company's strategy to make high-value investments that provide substantial returns.

• The company has continued to upgrade its fleet with plans to install at least one low-emission solution in approximately 50% of its active rigs, as part of its Evergreen strategy to improve energy efficiency and reduce diesel consumption.

Opportunities:

• Precision Drilling is poised to benefit from increased Canadian and international rig activity, which has counterbalanced challenges in the U.S. market.

• The company sees significant potential in leveraging its high-performance, high-value rigs which provide significant operational and financial returns, particularly through opportunities presented by the demand for heavy oil and condensate drilling following improved pipeline capacity.

Risks:

• In the U.S., rig activity levels have been relatively stable but lower than desired. The company anticipates a modest increase in activity with 2025 budgets but remains susceptible to volatile oil prices and market consolidation which could impact operations.

• Internationally, revenue was temporarily impacted by rig certification delays, and broader negative impacts from global production constraints could pose ongoing risks.

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