CIBCUpcoming Earnings
Precision Drilling (PD-TSX | OP, $135.00) reports before market on April 26. We expect
to see that continued margin strength for Precision this quarter will drive adjusted EBITDA
higher versus Q4/22 levels. We expect stock-based compensation expense should moderate
from Q4/22 levels given the share price weakness, but we do expect net debt levels could
rise given the timing of numerous payments tabled for Q1. We believe investors will remain
focused on expectations for forward rig counts in the U.S.; however, we do not expect drillers
will look to moderate day rates, which should see margins remain strong through 2023. We
are expecting Q1/23 Adj. EBITDA of $178.7MM versus Street at $174.4MM.