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- **Leadership Transition**: Carrie Ford appointed CEO, Gene Stahl COO, Dustin Honing CFO; Kevin Nevew retires after 18 years.
- **Q3 Financials**: Adjusted EBITDA $118 million, US rig count up 40% YTD, Canada margins $13,000/day.
- **Rig Upgrades**: 27 upgrades in 2025, $20 million capital increase; 100% Super Triple utilization in Canada's winter 2025.
- **US Growth**: US rig count from 27 to 40 since Q1; gas demand supported by LNG exports and electrification.
- **Customer Contracts**: 2026 discussions include Montney, heavy oil, and US gas; longer-term contracts in Montney and Marcellus.

**【Management Opening Remarks】**
- Precision Drilling announced the retirement of Kevin Nevew and the appointment of Carrie Ford as President and CEO, Gene Stahl as COO, and Dustin Honing as CFO.
- Q3 highlights include outperforming industry drilling activity, resilient operating margins within guidance, a $20 million increase in 2025 capital budget for rig upgrades, and debt reduction targets met.

**【CFO Financial Commentary】**
- Q3 adjusted EBITDA: $118 million (CAD129 million pre-SBC), down from CAD142 million in 2024.
- Canada: 63 active rigs (down 9 from Q3 2024), daily margins $13,007 (within guidance).
- US: 36 active rigs (up 3 from Q2), margins stable at $8,700/day; rig count increased from 27 to 40 since Q1.
- International: 7 rigs (down from 8 in 2024), day rates up 14% due to recertification.
- 2025 capital budget: $260 million (sustaining: $151 million, upgrades: $109 million), including 5 new contract-backed upgrades.
- Free cash flow allocation: 35-45% to debt reduction, $54 million shares repurchased YTD.
- 2025 guidance: depreciation $300 million, cash interest $65 million, tax rate 45-50% (25-30% in 2026).

**【CEO Strategic Overview】**
- **Scale Leverage**: 115 drilling rigs, 80 well service rigs; mobilized 2 Super Triple rigs from US to Canada for winter drilling.
- **Technology Integration**: 90% Super Triples with Alpha tech, 93% rigs with Evergreen solutions; robotics rig sets footage records.
- **Customer Focus**: 27 major upgrades in 2025, backed by upfront payments; Montney, heavy oil, and US gas basins driving demand.
- **Future Growth**: Expect 100% utilization of Super Triples in Canada's 2025 winter season; exploring longer-term US gas contracts.

**【Q&A Highlights】**
- **Contract Duration**: Longer-term contracts in Montney, Marcellus; shorter in oil basins; 2026 discussions ongoing.
- **Rig Upgrades**: 27 upgrades in 2025; demand driven by US gas, Canadian heavy oil; upgrade timeframes 1-4 months.
- **M&A Strategy**: No immediate plans; focus on organic growth via asset utilization and technology.
- **Market Outlook**: US gas activity supported by LNG exports; Canada's winter drilling season expected to meet/beat 2024 levels.
- **Financial Discipline**: Maintain net debt/EBITDA <1x; allocate 50%+ free cash flow to shareholders post-leverage target.


Precision Drilling Corp (PDS) Q3 2025 Earnings Call Transcript

Revenue

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Operating Expenses

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PDS

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