CALGARY, Alberta, Feb. 10, 2022 (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 Adjusted EBITDA (earnings before income taxes, loss (gain) on repurchase of unsecured senior notes, loss (gain) on investments and other assets, finance charges, foreign exchange, gain on asset disposals and depreciation and amortization), Covenant EBITDA, Operating Earnings (Loss), Funds Provided by (Used in) Operations and Working Capital. These terms do not have standardized meanings prescribed under International Financial Reporting Standards (IFRS) and may not be comparable to similar measures used by other companies, see “Non-GAAP Measures” later in this news release.
Precision Drilling announces 2021 fourth quarter and year-end financial results:
- Adjusted EBITDA (See “NON-GAAP MEASURES”) of $64 million. Excluding the impact of share-based compensation charges our Adjusted EBITDA was $70 million.
- Revenue of $295 million was an increase of 46% compared with the fourth quarter of 2020.
- Net loss of $27 million or $2.05 per share compared with a net loss of $38 million or $2.74 per share in the fourth quarter of 2020.
- Generated cash and funds provided by operations (see “NON-GAAP MEASURES”) of $60 million and $63 million, respectively.
- Fourth quarter ending cash balance of $41 million and more than $530 million of available liquidity.
- Fourth quarter debt reduction of $55 million, resulting in $115 million of total debt reduction for the year, exceeding the midpoint of our 2021 debt reduction target of $100 million to $125 million.
- Fourth quarter capital expenditures were $28 million.
- Achieved our 2021 strategic priorities focused on Alpha™ revenue and market share growth, free cash flow generation and debt reduction, and leading ESG (environmental, social and governance) performance.
Precision’s President and CEO Kevin Neveu stated:
“Precision’s strong fourth quarter operating performance and sequentially improved financial results demonstrate the exceptional financial operating leverage we expect to deliver as the industry continues to recover. The strategic priorities we executed upon in 2020 and 2021 to optimize our costs, improve and de-risk our capital structure, and position Alpha™ digital technologies and EverGreen™ environmental solutions for our competitive advantage, ideally position the company for the robust industry outlook we see today. I would like to extend my gratitude to the highly skilled rig crews of Precision, who have managed the health and safety challenges on our rigs through the pandemic while ensuring our new technologies deliver the value our customers expect, and to our administrative and support teams, who have developed and maintained a lean and highly efficient back office to support Precision’s field operations and our customers.”
“In the U.S., we have 52 rigs active today, a 58% increase from this time last year and up 18% from the end of the third quarter. Customer inquiries and bid activity point to increasing activity in both the U.S. and Canada, reflecting higher commodity prices. In Canada, we have 66 rigs active today and expect demand to remain at high levels through the first part of March and are already observing better than expected bookings through spring break-up and into the second half of the year. Leading edge day rates and margins have stepped upwards as the supply of super spec rigs across North America is materially tightening and reactivation investments require improved economics for industry activity to grow. Internationally, we have 6 rigs active and are participating in several rig tenders which we expect will result in awards later this year.”
“Demand for our Alpha™ suite of digital technologies continues to gain the attention of our customers, and the fourth quarter represented Precision’s strongest utilization and revenue quarter since we commercialized the offering in late 2019. We ended the year with 47 Super Triple rigs equipped with Alpha™ and increased paid AlphaApps™ days by 50% from the third quarter. Today, we have 49 Super Triple rigs equipped with Alpha™ and expect to end the year with approximately 70 Alpha™ enabled rigs in our fleet, demonstrating our ability to rapidly scale the offering in just three years since commercialization.”
“Precision’s Completion and Production Services business had its best performance in nearly five years, generating $24 million of Adjusted EBITDA in 2021. Demand was supported by higher commodity prices, the Government of Canada’s $1.7 billion well abandonment program and our customers’ desire to secure work from high-quality and reliable service providers. Today, Precision Well Servicing is operating approximately 50 rigs and we expect activity to track higher year-over-year for most of 2022.”
“Our 2022 strategic priorities, outlined later in this release, reinforce our commitment to growing our technology and ESG leadership positions, fortifying the balance sheet and improving returns to shareholders. Under our recently announced capital allocation framework, we expect to surpass $1 billion of debt reduction, achieve leverage levels below 1.5 times and increase allocations directly to shareholders by the end of 2025. Since 2018, we have reduced debt by $665 million and allocated $42 million to share repurchases. We believe the operating leverage associated with Precision’s business will deliver cash flows capable of supporting higher activity and success achieving our capital allocation targets, ultimately driving sustained shareholder value,” concluded Mr. Neveu.
www.precisiondrilling.com
https://www.globenewswire.com/news-release/2022/02/10/2382612/0/en/Precision-Drilling-Corporation-Announces-2021-Fourth-Quarter-and-Year-End-Unaudited-Financial-Results.html