Precision Drilling Announces 2026 First Quarter Unaudited Financial Statements
CALGARY, Alberta, April 29, 2026 (GLOBE NEWSWIRE) -- This news release contains “forward-looking information and statements” within the meaning of applicable securities laws. For a full disclosure of the forward-looking information and statements and the risks to which they are subject, see the “Cautionary Statement Regarding Forward-Looking Information and Statements” later in this news release. This news release contains references to certain Financial Measures and Ratios, including Adjusted EBITDA (earnings before income taxes, (gain) loss on investments and other assets, finance charges, foreign exchange, gain on asset disposals and depreciation and amortization), Net Capital Spending, Working Capital and Total Long-Term Financial Liabilities. These terms do not have standardized meanings prescribed under International Financial Reporting Standards (IFRS) Accounting Standards and may not be comparable to similar measures used by other companies. See “Financial Measures and Ratios” later in this news release.
Precision Drilling Corporation ("Precision" or the "Company") (TSX:PD; NYSE:PDS) announces its 2026 first quarter results, reflecting higher utilization in both Canadian and U.S. drilling and well service operations year over year.
Financial Highlights
Operational Highlights
(1) See "FINANCIAL MEASURES AND RATIOS."
(2) See "SEGMENT REVIEW OF CONTRACT DRILLING SERVICES."
MANAGEMENT COMMENTARY
Executing Safely and Delivering High Performance Amid Global Volatility
Precision’s President and CEO, Carey Ford, provided the following commentary: “In the first quarter, Precision delivered year over year revenue growth in a declining market, enhanced the capability of our drilling fleet, and continued to deliver on shareholder return commitments.
“As we entered the year, the global operating environment became increasingly complex, driven in part by escalating geopolitical conflict in the Middle East. The resulting commodity and financial market volatility, combined with heightened scrutiny of the global energy industry, has created one of the most unique operating environments we have experienced in several decades. For a company like Precision, with operations in the Middle East, effectively navigating the daily changes is critical.
“Throughout this period, our priorities have remained clear: first and foremost, ensuring the safety of our people; reliably delivering our High Performance, High Value offering to our customers; and increasing the velocity of communication with our customers, vendors, and crews. These priorities position us to respond quickly and decisively as conditions change.
“Internationally, despite minor activity disruptions and increased costs, our crews in the Middle East continue to operate safely and deliver excellent results for our customers. During the quarter, we also reactivated one rig, bringing our total active rig count in the region to seven, all supported by long-term contracts.
“In North America, Precision delivered activity growth in both Canada and the U.S., despite lower industry activity levels year over year. This performance reflects our continued success in driving revenue growth and deepening customer relationships through contracted rig upgrades, disciplined operational excellence, and the deployment of performance-driven technology. Precision remains well positioned as a trusted partner for customers seeking reliable, repeatable, and efficient drilling outcomes.
“Technology continues to be a key differentiator and central to our long-term strategy. During the quarter, we continued deploying Alpha™ digital technologies to unlock performance improvements through automation, data analytics, and real-time optimization, delivering record drilling results for our Canadian and U.S. customers. Our scalable digital portfolio has been a key contributor to our success in North America for several years.
“Looking ahead, we are encouraged by improving customer sentiment in both Canada and the U.S. In Canada, we expect our second quarter activity to be well above last year’s level, supported by demand for our pad-capable Super Triple and Super Single rigs and a robust oil price environment. In the U.S., while we experienced contract churn in March and April, we expect our active rig count to return to the high 30s in June. We are experiencing a notable increase in inquiries from both oil and natural gas customers regarding rig availability and expect further rig additions and pricing increases in the second half of the year. Precision’s scale, technology offering, and operational excellence will support growth opportunities as they emerge.
“Precision continues to maintain a disciplined approach to capital allocation, prioritizing balance sheet strength, high-return investments in our equipment and technology, and enhanced shareholder returns. We remain focused on maximizing free cash flow generation and reaffirm our published shareholder return commitments for 2026.
“I would like to thank our field leadership and crews for their continued commitment to safety, execution, and customer service. Their dedication underpins our ability to deliver consistent performance and advance our High Performance, High Value strategy while delivering long-term value for all stakeholders,” concluded Mr. Ford.
SELECT FINANCIAL AND OPERATING INFORMATION
Financial Highlights
(1) See "FINANCIAL MEASURES AND RATIOS."
Operating Highlights
(1) The service rig fleet and service rig operating hours exclude our U.S. operations that we wound down in the second quarter of 2025.
Drilling Activity
(1) Average number of drilling rigs working or moving.
Financial Position
(1) See "FINANCIAL MEASURES AND RATIOS."
Summary for the three months ended March 31, 2026:
(1) See "FINANCIAL MEASURES AND RATIOS."
(2) Defined as revenue per utilization day less operating costs per utilization day.
STRATEGY
Precision’s vision is to be globally recognized as the High Performance, High Value provider of land drilling services. We work toward this vision by defining and measuring our results against strategic priorities that we establish at the beginning of every year.
Precision’s 2026 strategic priorities and the progress made during the first quarter are summarized below.
(1) See "FINANCIAL MEASURES AND RATIOS."
OUTLOOK
Ongoing geopolitical tensions in the Middle East have increased global supply risks, contributing to higher oil prices and a renewed focus on energy supply security. This environment continues to support steady upstream investment and near-term activity in politically stable jurisdictions. Customers continue to prioritize capital discipline and returns, resulting in measured but sustained drilling rather than reacting to short-term price movements. However, if the oil price outlook remains constructive, we expect activity levels to increase over the course of the year.
In Canada, demand for our Super Series rigs remains robust, driving one of our most active winter drilling seasons. Improving commodity prices for heavy oil and condensate, plus additional takeaway capacity for both oil and natural gas continue to support Canadian activity levels. As we move into spring break up with more pad-capable Super Triple and Super Single rigs and an improved oil price environment, we expect our second quarter activity to be well above the prior year's level.
In the U.S., the natural gas rig count increased approximately 20% in 2025 as customers became more constructive on LNG off-take and rising AI-related power demand. We capitalized on this trend by increasing activity in key natural gas basins such as the Haynesville and Marcellus, resulting in a 24% increase in U.S. drilling rig utilization days in the first quarter of 2026 compared with 2025. Oil directed drilling activity remained subdued through 2025 and into 2026; however, with a more favorable pricing environment, we are experiencing a notable increase in inquiries from both oil and natural gas customers regarding rig availability and expect further rig additions and pricing increases in the second half of the year.
Internationally, despite minor disruptions and increased costs due to the tension in the Middle East, our crews are safely delivering results for our international customers. We have seven active rigs, including four in Kuwait and three in the Kingdom of Saudi Arabia. These rigs are under five-year term contracts that extend into 2027 and 2028. We currently expect seven active rigs for the remainder of the year. We continue to seek opportunities for our two idle international rigs.
As the premier well service provider in Canada, the long-term outlook for this business is positive, driven by increased takeaway capacity from the Trans Mountain pipeline expansion and LNG Canada, and our High Performance, High Value service offering. We expect customer demand and pricing to remain strong in the foreseeable future, assuming no significant change in market conditions.
Overall, our outlook for the remainder of the year is optimistic, with potential upside driven by sustained higher oil prices amid ongoing geopolitical tensions in the Middle East. In Canada, we expect second quarter operating margins to average between $12,000 and $13,000 per utilization day, driven by a higher proportion of Super Singles working through spring break up compared with the prior year. In the U.S., revenue per utilization day is expected to remain stable, while operating margins are anticipated to range between US$7,500 and US$8,500 per utilization day due to additional rig reactivation expenses.
Contracts
The following chart outlines the average number of drilling rigs under term contract by quarter as of April 29, 2026. For the quarter ending after March 31, 2026, this chart represents the minimum number of term contracts from which we will earn revenue. We expect the actual number of contracted rigs to vary in future periods as we sign additional term contracts.
SEGMENTED FINANCIAL RESULTS
Precision’s operations are reported in two segments: Contract Drilling Services, which includes our drilling rigs, procurement and distribution of oilfield supplies, and the manufacture, sale and repair of drilling equipment; and Completion and Production Services, which includes our service rigs, oilfield equipment rental, and camp services.
SEGMENT REVIEW OF CONTRACT DRILLING SERVICES
(1) See "FINANCIAL MEASURES AND RATIOS."
(1) Canadian operations only.
(2) Source: Baker Hughes rig counts.
(1) United States lower 48 operations only.
(2) Source: Baker Hughes rig counts.
SEGMENT REVIEW OF COMPLETION AND PRODUCTION SERVICES
(1) See "FINANCIAL MEASURES AND RATIOS."
(2) The service rig fleet and service rig operating hours exclude our U.S. operations that we wound down in the second quarter of 2025.
OTHER ITEMS
Share-based Incentive Compensation Plans
We have several cash and equity-settled share-based incentive plans for non-management directors, officers, and other eligible employees. Our accounting policies for each share-based incentive plan can be found in our 2025 Annual Report.
A summary of expense amounts under these plans during the reporting periods are as follows:
Depreciation
In 2025, we completed a detailed review of our drilling rig equipment and revised the estimated useful life of drill pipe as more complex drilling programs have reduced the useful life of this asset class. This revision resulted in additional depreciation expense of $11 million in the first quarter of 2026.
FINANCIAL MEASURES AND RATIOS
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION AND STATEMENTS
Certain statements contained in this news release, including statements that contain words such as "could", "should", "can", "anticipate", "estimate", "intend", "plan", "expect", "believe", "will", "may", "continue", "project", "potential" and similar expressions and statements relating to matters that are not historical facts constitute "forward-looking information" within the meaning of applicable Canadian securities legislation and "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995 (collectively, "forward-looking information and statements").
In particular, forward-looking information and statements include, but are not limited to, the following:
These forward-looking information and statements are based on certain assumptions and analysis made by Precision in light of our experience and our perception of historical trends, current conditions, expected future developments and other factors we believe are appropriate under the circumstances. These include, among other things:
Undue reliance should not be placed on forward-looking information and statements. Whether actual results, performance or achievements will conform to our expectations and predictions is subject to a number of known and unknown risks and uncertainties which could cause actual results to differ materially from our expectations. Such risks and uncertainties include, but are not limited to:
Readers are cautioned that the forgoing list of risk factors is not exhaustive. Additional information on these and other factors that could affect our business, operations or financial results are included in reports on file with applicable securities regulatory authorities, including but not limited to Precision’s Annual Information Form for the year ended December 31, 2025, which may be accessed on Precision’s SEDAR+ profile at www.sedarplus.ca or under Precision’s EDGAR profile at www.sec.gov. The forward-looking information and statements contained in this news release are made as of the date hereof and Precision undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, except as required by law.
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED)
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF NET EARNINGS (LOSS) (UNAUDITED)
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED)
2026 FIRST QUARTER RESULTS CONFERENCE CALL AND WEBCAST
Precision Drilling Corporation has scheduled a conference call and webcast to begin promptly at 11:00 a.m. MT (1:00 p.m. ET) on Thursday, April 30, 2026.
To participate in the conference call please register at the URL link below. Once registered, you will receive a dial-in number and a unique PIN, which will allow you to ask questions.
https://register-conf.media-server.com/register/BI8811660f92894f7aa14eca5d58cbc0df
The call will also be webcast and can be accessed through the link below. A replay of the webcast call will be available on Precision’s website until the following quarterly conference call is posted.
https://edge.media-server.com/mmc/p/952icqoy
About Precision
Precision is a leading provider of safe and environmentally responsible High Performance, High Value services to the energy industry, offering customers access to an extensive fleet of Super Series drilling rigs. Precision has commercialized an industry-leading digital technology portfolio known as Alpha™ that utilizes advanced automation software and analytics to generate efficient, predictable, and repeatable results for energy customers. Our drilling services are enhanced by our EverGreen™ suite of environmental solutions, which bolsters our commitment to reducing the environmental impact of our operations. Additionally, Precision offers well service rigs, camps and rental equipment all backed by a comprehensive mix of technical support services and skilled, experienced personnel.
Precision is headquartered in Calgary, Alberta, Canada and is listed on the Toronto Stock Exchange under the trading symbol “PD” and on the New York Stock Exchange and NYSE Texas, Inc., under the trading symbol “PDS”.
Additional Information
For further information, please contact:
Lavonne Zdunich, CPA, CA
Vice President, Investor Relations
403.716.4500
800, 525 - 8th Avenue S.W.
Calgary, Alberta, Canada T2P 1G1
Website: www.precisiondrilling.com