Bullboard - Stock Discussion Forum Precision Drilling Corp T.PD

Alternate Symbol(s): PDS

Energy Oil & Gas Drilling

Precision Drilling Inc is a Canada-based drilling company. The Company is engaged in the exploration and production of oil and natural gas. Its services include North American drilling, international drilling, oilfield equipment rentals, camp & catering services. The Company technology includes AlphaAutomation, AlphaApps, AlphaAnalytics and EverGreen.

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TSX:PD - Post Discussion

Precision Drilling Corp > RBC

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Post by retiredcf on Sep 13, 2024 8:01am

RBC

September 13, 2024

Precision Drilling Corporation Renews NCIB

TSX: PD | CAD 86.18 | Outperform | Price Target CAD 125.00

Sentiment: Neutral

Our view: PD has renewed its NCIB, allowing the company to re-purchase up to 1.4 million common shares (10% of public float) over the next year. We expect a neutral reaction to the stock in today's trading as NCIB usage remains a core part of the company's FCF allocation priorities.

• Expiring plan. PD's expiring plan allowed for the re-purchase of up to 1.3MM common shares, where the company re-purchased 0.735MM shares at a VWAP of $88.48/share, mapping to ~$65MM or 23% of FCF between 4Q23-3Q24e.

• New plan. PD may repurchase up to 1.4MM common shares, or 19.3k shares per day. We forecast PD to generate $295MM of FCF over the next 12 months, with the company planning to return 25-35% of FCF to shareholders through share repurchases.

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