Will go through the report and the MDA but at first glance, this debt repayment
exceed my expectation and by far.
Net debt at 47.6m is already below the 50m level.
The next 2 quarters and 2025 are going to be very profitable so the debt will be down again.
This will be an exciting time for the drillers.We are only in the first inning.
The best is yet to come.
Precision also reported after the close.
Here is Precision outlook remark.This is
VERY POSITIVE FOR ALL THE DRILLERS. Precision’s second quarter financial results exceeded our expectations, with our Canadian and international revenue growing significantly over the last twelve months and we expect this growth to continue through 2025. Canadian market fundamentals have never looked better. The Trans Mountain pipeline expansion is driving higher and stable returns for producers, who are accelerating heavy oil targeted drilling plans, while the imminent start-up of LNG Canada is expected to improve and stabilize natural gas pricing, supporting additional Montney drilling activity. Customer demand for our Super Series rigs in Canada is the highest in a decade. Today, we have 74 rigs operating, with 23 additional Precision Super Single and double rigs targeting heavy oil, an 80% increase compared to the same time last year. Our 30 Super Triple rigs remain nearly fully utilized, supported by development drilling in the Montney. We expect strong customer demand and utilization of our Super Triples and Super Singles for the remainder of the year with customer demand potentially exceeding supply in 2025 as heavy oil producers ramp up production and LNG Canada commences operations.
“In the U.S., we remain focused on operating performance for our customers, while striving to improve field margins and cash flow generation. Today, we have 38 rigs operating and believe the long-term fundamentals for U.S. drilling are positive due to the next wave of Gulf Coast LNG facilities projected to start-up over the next three years and numerous large oil and gas M&A transactions nearing completion.
It is an exciting time for the Precision team with robust Canadian market fundamentals, an improving long-term outlook for the U.S. and good visibility for sustained free cash flow as a key feature of the business, leading to enhanced shareholder returns.