Precision Drilling Corporation Announces 2014 Second Quarter
Dividend and 2014 First Quarter Financial Results
CALGARY, ALBERTA--(Marketwired - Apr 28, 2014) -
(Canadian Dollars except as indicated)
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.
The Board of Directors of Precision Drilling Corporation
(TSX:PD) (NYSE:PDS) ("Precision" or the "Corporation") has declared
a second quarter dividend on its common shares of $0.06 per common
share, payable on May 26, 2014, to shareholders of record on May
14, 2014. For Canadian income tax purposes, all dividends paid by
Precision on its common shares are designated as "eligible
dividends", unless otherwise indicated by Precision.
Net earnings this quarter were $102 million, or $0.35 per
diluted share, compared to net earnings of $93 million, or $0.33
per diluted share, in the first quarter of 2013.
Revenue this quarter was $672 million, or 13% higher than the
first quarter of 2013, mainly due to higher pricing and drilling
activity in Canada, the U.S. and internationally.
Earnings before income taxes, finance charges, foreign exchange,
and depreciation and amortization ("adjusted EBITDA") this quarter
were $237 million or 10% higher than the first quarter of 2013. Our
adjusted EBITDA margin was 35% this quarter, compared to 36% in the
first quarter of 2013. The decrease in adjusted EBITDA margin was
mainly due to a decrease in the margins in our Completion and
Production Services segment and increases in share based
compensation accruals, which were $10 million this quarter. Our
activity for the quarter, as measured by drilling rig utilization
days, increased 3% in Canada, 16% in the U.S. and 38%
internationally, compared to the first quarter of 2013.
We are increasing our 2014 capital plan from $634 million to
$833 million. The capital increase is in response to strong
customer demand for Precision new-build Super Series rigs. The
additional capital expenditures consist of four additional
new-build Super Triple rigs for the U.S. to be delivered in the
second half of 2014 and five new-build Super Triple rigs to be
delivered in early 2015. Additionally, we are expanding our
long-lead program to shorten construction times for new-build rigs
and will provide capacity of two rig deliveries per month to start
2015 if U.S., Canadian and international customer demand continues
at the current pace. With today's announcement, the number of
new-build deliveries scheduled for Precision in 2014 totals 16 rigs
(seven in the U.S., six in Canada and three internationally).
Kevin Neveu, Precision's President and Chief Executive Officer,
stated: "I am pleased that the success of Precision's High
Performance strategy is demonstrated in our strong first quarter
financial results. Customer demand for our Super Series rigs is
increasing and the momentum we communicated last quarter has
continued. This is evident in our strong day rates, margins, and
contract coverage and the increased demand for additional Precision
new-build rigs."
"In 2009 we began communicating our High Performance, High Value
strategy which aligned our people, systems and technology with
emerging unconventional resource development. We introduced the
Tier system to categorize our rig fleet, where Tier 1 Super Series
rigs represent highly efficient, highly mobile rigs designed to
drill horizontal wells and being the rigs ideally suited for
developing unconventional resources. At the beginning of 2009, we
marketed 93 Super Series rigs, primarily in Canada. Over the past
five years, we have transformed our fleet and today we have Super
Series rigs operating in virtually every unconventional basin in
North America. With today's announcement of an additional nine
new-build rigs, eight of which have firm customer commitments, we
expect to have 222 Super Series rigs operating by early 2015 and an
increased capacity to deliver two new-build rigs per month to start
2015. The cornerstone to Precision's build program remains our
strict fiscal discipline insuring we achieve contracts from
customers that meet our targets before a rig is completed for
delivery."
"In Canada, our drilling activity during the first quarter was
slightly higher than last year, and was supported by growing
customer demand throughout the winter drilling season. We are
excited about our leading position in the deep basin and LNG
related drilling market with five contracted ST-1500 new-builds
planned for delivery in 2014. While challenges must still be
overcome to fully realize the Canadian LNG development potential,
we remain very encouraged by the continued support demonstrated by
the key stakeholders in this very important Canadian resource. We
believe additional new-build and upgrade opportunities will
continue to emerge as these projects gather momentum."
"Our U.S. drilling business continues its strong performance
with an average of 94 rigs running in the first quarter, an
increase from an average of 81 rigs in the third quarter of 2013.
Our success responding to the market's demand for high performance
services is particularly evident in the Permian basin, where we now
have 20 active Super Series rigs and in the Marcellus where we
enjoy a leadership position with 17 Super Series rigs running today
representing approximately 20% of the activity in the play."
"Internationally, with established operations in the Middle East
and Mexico, we are continuing to selectively strengthen our
position in these regions. In March, we announced a contract for a
new-build ST-2000 rig that will begin drilling for a customer in
the Middle East in the fourth quarter. In Mexico, we announced the
signing of long-term contracts for six rigs under an integrated
project management service agreement, five of which are already in
Mexico and one of which is currently being deployed from our U.S.
fleet. Bidding activity in our target regions remains strong and we
believe further international opportunities for Precision will
develop over the coming months."
"Our completion and production business continues to face a
challenging market characterized by throttled back customer demand.
Customer spending on well servicing, well remediation and well
repair continues to lag drilling activity as our customers appear
to be more focused on deploying capital to drilling programs.
Despite the recent weakness, we remain well positioned in Canada
and in select basins in the U.S., and believe we can demonstrate
meaningfully improved financial results when customer demand
improves. We are, as always, intensely focused on execution for our
customers and continue to deliver the high performance services
they have come to expect from Precision."
"We believe we have a competitive advantage in our ability to
recruit, develop and retain the best people in the industry and in
2014 we continue to raise the bar in this aspect of our business:
Precision safety, training and talent development systems have
become integral to our international operations; we are increasing
the skill-based and safety training courses at our Houston Tech
Center and in the field; and building on the success of our Houston
Tech Center, we are preparing for the opening of our Nisku Centre
this fall where our workers will have access to a state of the art
training facility and a fully functioning training rig. We believe
our people are the most important part of the business and we will
continue to invest in training and developing our people as we
invest in the equipment and systems to support them."
"With today's dividend announcement, Precision will have
declared $107 million in dividends to investors since December
2012."
SELECT FINANCIAL AND OPERATING INFORMATION
Adjusted EBITDA and funds provided by operations are additional
GAAP measures. See "ADDITIONAL GAAP MEASURES".
Financial Highlights
|
|
Three months ended March 31, |
|
(Stated in thousands of Canadian dollars, except
per share amounts) |
|
2014 |
|
|
2013 |
|
% Change |
|
Revenue |
|
672,249 |
|
|
595,720 |
|
12.8 |
|
Adjusted EBITDA |
|
237,274 |
|
|
215,181 |
|
10.3 |
|
Net earnings |
|
101,557 |
|
|
93,313 |
|
8.8 |
|
Cash provided by operations |
|
170,127 |
|
|
62,948 |
|
170.3 |
|
Funds provided by operations |
|
231,393 |
|
|
144,682 |
|
59.9 |
|
Capital spending: |
|
|
|
|
|
|
|
|
|
Expansion |
|
68,185 |
|
|
76,515 |
|
(10.9 |
) |
|
Upgrade |
|
19,857 |
|
|
37,541 |
|
(47.1 |
) |
|
Maintenance and infrastructure |
|
17,957 |
|
|
16,549 |
|
8.5 |
|
|
Proceeds on sale |
|
(7,257 |
) |
|
(2,538 |
) |
185.9 |
|
Net capital spending |
|
98,742 |
|
|
128,067 |
|
(22.9 |
) |
|
|
|
|
|
|
|
|
|
Earnings per share: |
|
|
|
|
|
|
|
|
|
Basic |
|
0.35 |
|
|
0.34 |
|
2.9 |
|
|
Diluted |
|
0.35 |
|
|
0.33 |
|
6.1 |
|
Dividends paid per share |
|
0.06 |
|
|
0.05 |
|
20.0 |
|
|
Three months ended March 31, |
|
|
2014 |
2013 |
% Change |
|
Contract drilling rig fleet |
330 |
322 |
2.5 |
|
Drilling rig utilization days: |
|
|
|
|
|
Canada |
11,384 |
11,101 |
2.5 |
|
|
U.S. |
8,473 |
7,278 |
16.4 |
|
|
International |
990 |
719 |
37.7 |
|
Service rig fleet |
222 |
217 |
2.3 |
|
Service rig operating hours |
82,564 |
89,392 |
(7.6 |
) |
(Stated in thousands of Canadian dollars, except
ratios) |
March 31, 2014 |
December 31, 2013 |
Working capital |
389,419 |
305,783 |
Long-term debt(1) |
1,350,992 |
1,323,268 |
Total
long-term financial liabilities |
1,383,790 |
1,355,535 |
Total
assets |
4,736,927 |
4,579,123 |
Long-term debt to long-term debt plus equity ratio(1) |
0.35 |
0.36 |
(1) |
Net
of unamortized debt issue costs. |
Revenue in the first quarter of 2014 was $77 million higher than
the prior year period. The increase was due to a year-over-year
increase in activity and rates from our contract drilling
operations. Contract Drilling Services revenue increased by 15% in
the first quarter while Completion and Production Services revenue
was relatively unchanged.
Adjusted EBITDA margin (Adjusted EBITDA as a percentage of
revenue) was 35% for the first quarter of 2014 compared to 36% for
the same period in 2013. The slight decrease in EBITDA margin was
primarily attributable to lower margins in the Completion and
Production Services segment and increases in share based
compensation.
Our portfolio of term customer contracts, a scalable operating
cost structure and economies achieved through vertical integration
of the supply chain all help us manage our adjusted EBITDA
margin.
Precision's strategic priorities are as follows:
- Execute our High Performance, High Value strategy - Invest in
Precision's physical and human capital infrastructure to advance
field level professional development, provide industry leading
service to customers and promote safe operations. Continue to
measure and benchmark performance with a view to exceeding the high
standards we set. The construction of our Nisku Centre is underway
and we expect to complete construction in the fall of this year.
Our Nisku Centre will support safety and training for our Canadian
workforce.
- Leverage our scale in operations - Utilize established systems
to promote consistent and reliable service and to improve operating
efficiencies across all geographies and service lines. We have
demonstrated our ability to increase activity levels while driving
down daily operating cost per rig in our operations. Additionally,
we have increased the utilization of our centralized U.S. repair
and maintenance facilities at our Houston Tech Center.
- Execute on existing organic growth opportunities - Deliver
new-build and upgraded rigs to customer contracts, expand
international activity in existing operating regions and grow our
Canadian LNG drilling leadership position. Be a recognized leader
in the integrated directional drilling transformation. We have
announced delivery or planned delivery for 13 new-build rigs to the
North American market in 2014, including five ST-1500 rigs for deep
basin and LNG related drilling in Canada. In addition, we have
contracted one new-build for the Middle East and six existing rigs
to long-term contracts for integrated project management projects
in Mexico and expect to begin operations with the two Kuwait
new-build rigs near the end of the second quarter.
- Increase returns for our investors. We remain well positioned
to increase returns for investors with our continued strong
activity levels and margins, favorable contracted terms on
new-build and upgraded rigs and our low cost and flexible capital
structure.
For the first quarter of 2014, natural gas prices and the West
Texas Intermediate price of oil were higher than the 2013
averages.
|
Three months ended March 31, |
Year ended December 31, |
|
2014 |
2013 |
2013 |
Average oil and natural gas prices |
|
|
|
Oil |
|
|
|
|
West Texas Intermediate (per barrel) |
US$98.65 |
US$94.35 |
US$98.02 |
Natural gas |
|
|
|
|
Canada |
|
|
|
|
|
AECO
(per MMBtu) |
$5.49 |
$3.20 |
$3.18 |
|
U.S. |
|
|
|
|
|
Henry Hub (per MMBtu) |
US$5.06 |
US$3.49 |
US$3.73 |
Summary for the three months ended March 31, 2014:
- As a result of our annual review of the estimated useful lives
and method of depreciation for our property, plant and equipment,
effective January 1, 2014 we are calculating depreciation on our
drilling rigs and service rigs based on a straight-line basis.
Existing assets were assessed for their remaining useful life and
will be depreciated prospectively on a straight-line basis. New
drilling rigs will be depreciated based on the expected life of
individual asset components with an approximate weighted average
life of 15 years and about 7% salvage value. New service rigs will
be depreciated based on the expected life of the asset component
with an approximate weighted average life of 20 years with about
10% salvage value. The move to straight-line reflects the demand
for technologically advanced assets which are expected to
depreciate over time rather than on a per unit basis. The use of
straight-line depreciation will result in idle assets being more
aggressively depreciated. In the first quarter of 2014 depreciation
expense calculated using the straight-line method with revised
asset life expectancy was $106 million. Had we continued to
depreciate assets using units of production, depreciation would
have been $101 million. The estimated additional depreciation
expense for the year ending December 31, 2014 from this change is
approximately $45 million.
- Operating earnings (see "Additional GAAP Measures" in this news
release) this quarter were $132 million, or 20% of revenue,
compared to $130 million and 22% of revenue in 2013. Operating
earnings were positively impacted by the increase in drilling
activity and rates in our contract drilling rig operations
partially offset by an increase in depreciation from moving to the
straight-line method and the depreciation on asset additions.
- General and administrative expenses this quarter were $40
million, $1 million higher than the first quarter of 2013. The
moderate increase is due to higher costs associated with incentive
compensation which are tied to the price of our common shares.
- Net finance charges were $24 million, an increase of $2 million
compared with the first quarter of 2013 due to the weakening of the
Canadian dollar and its effect on our U.S. dollar denominated
interest expense.
- Average revenue per utilization day for contract drilling rigs
increased in the first quarter of 2014 to $22,773 from the prior
year first quarter of $22,299 in Canada and increased in the U.S.
to US$24,146 from US$23,991. The increase in revenue rates for both
Canada and the U.S. is primarily due to additional Tier 1 and
upgraded rigs entering the fleet compared to the prior year
quarter. In Canada, for the first quarter of 2014, 40% of our
utilization days were achieved from drilling rigs working under
term contracts compared to 39% in the 2013 comparative period. In
the U.S., for the first quarter of 2014, 61% of our utilization
days were generated from rigs working under term contracts compared
to 59% in the 2013 comparative period. Turnkey revenue for the
first quarter of 2014 was US$17 million compared with US$12 million
in the 2013 comparative period. Within the Completion and
Production Services segment, average hourly rates for service rigs
were $895 in the first quarter of 2014 compared to $824 in the
first quarter of 2013. The increase in the average hourly rate is
the result of rig mix with the introduction of coil tubing rigs in
the U.S., which command a higher average hourly rate. Canadian well
servicing rig average hourly rate increased by $14 per hour quarter
over quarter.
- Average operating costs per utilization day for drilling rigs
increased in the first quarter of 2014 to $10,230 from the prior
year first quarter of $9,949 in Canada while in the U.S. costs
decreased to US$14,495 in 2014 from $14,813 in 2013. The cost
increase in Canada was primarily due to a labour rate increase that
became effective in the fourth quarter of 2013. The cost decrease
in the U.S. was primarily due to labour efficiencies. Within the
Completion and Production Services segment, average hourly
operating costs for service rigs increased to $649 in the first
quarter of 2014 as compared to $525 in the first quarter of 2013
primarily due to costs associated with coil tubing and higher fixed
costs spread over a lower activity base.
- Directional drilling services realized revenue of $34 million
in the first quarter of 2014 compared with $37 million in the prior
year period.
- Funds provided by operations in the first quarter of 2014 were
$231 million, an increase of $87 million from the prior year
comparative quarter of $145 million. The increase was primarily the
result of improved operations and a decrease in income tax
installments paid.
- Capital expenditures for the purchase of property, plant and
equipment were $106 million in the first quarter, a decrease of $25
million over the same period in 2013. Capital spending for the
first quarter of 2014 included $68 million for expansion capital,
$20 million for upgrade capital and $18 million for the maintenance
of existing assets and infrastructure spending.
OUTLOOK
Contracts
Our portfolio of term customer contracts provides a base level
of activity and revenue and, as of April 25, 2014, we have term
contracts in place for an average of 53 rigs in Canada, 53 in the
U.S. and 11 internationally for the second quarter of 2014 and an
average of 52 rig contracts in Canada, 45 in the U.S. and 12
internationally for the full year. In Canada, term contracted rigs
normally generate 250 utilization days per year because of the
seasonal nature of well site access. In most regions in the U.S.
and internationally, term contracts normally generate 365
utilization days per year.
Drilling Activity
In the U.S., our average active rig count in the quarter was 94
rigs, up 13 rigs over the first quarter in 2013 and up four rigs
over the fourth quarter of 2014. We currently have 95 rigs active
in the U.S.
In Canada, our average active rig count in the quarter was 126
rigs, an increase of three over the first quarter in 2013 and up 37
rigs over the fourth quarter of 2013. We currently have 44 rigs
active in Canada and expect traditional spring weather conditions
to negatively affect industry activity in the second quarter. Post
spring break-up, we expect to benefit from the fleet enhancements
over the past several years and the delivery of four contracted
new-build rigs and several contracted upgrade rigs in the second
half of this year.
Internationally, our average active rig count in the quarter was
11 rigs, up three rigs over the first quarter in 2013 and in line
with the fourth quarter of 2013. We currently have 11 rigs active
internationally and expect the two new-build rigs for the Kuwait
market to begin operations near the end of the second quarter. In
addition, the recently signed rigs for integrated project
management contracts are expected to go to work in Mexico over the
next two quarters and the new rig for the Middle East is expected
to be delivered in late 2014.
Industry Conditions
To date in 2014, drilling activity has increased relative to
this time last year for both Canada and the U.S. According to
industry sources, as of April 25, 2014, the U.S. active land
drilling rig count was up about 6% from the same point last year
and the Canadian active land drilling rig count was up about 38%.
The large percent increase in Canada is not expected to continue,
as cold weather in late March delayed spring break-up in certain
locations. The increase in the North American rig count has been
driven by demand for Tier 1 assets, which continues to be strong,
benefiting drilling contractors, like Precision, with a high
percentage of Tier 1 assets.
Canada has been experiencing an increase in natural gas and gas
liquids drilling activity related to deep basin drilling in
northwestern Alberta and northeastern British Columbia while the
trend towards oil-directed drilling in the United States has
continued in 2014. To date in 2014, approximately 62% of the
Canadian industry's active rigs and 81% of the U.S. industry's
active rigs were drilling for oil targets, compared to 73% for
Canada and 77% for the U.S. at the same time last year.
Capital Spending
Capital spending in 2014 is expected to be $833 million:
- The 2014 capital expenditure plan includes $499 million for
expansion capital, $199 million for sustaining and infrastructure
expenditures, and $135 million to upgrade existing rigs. We expect
that the $833 million will be split $796 million in the Contract
Drilling segment and $37 million in the Completion and Production
Services segment.
- Precision's expansion capital plan includes 16 new-build
drilling rigs including six for Canada, seven for the U.S., two for
Kuwait and one for the Middle East. The six rigs for Canada include
five ST-1500 rigs for northern gas and gas liquids drilling and one
Precision Super Single for heavy oil development drilling. The U.S.
new-builds consist of six ST-1500 rigs and one ST-1200 rig while in
Kuwait two ST-3000 rigs are expected begin operations near the end
of the second quarter and a ST-2000 is expected to be deployed to
the Middle East in the fourth quarter of 2014. The majority of the
remainder of the expansion capital is allocated to long-lead items
which we anticipate using for new-build drilling rigs for delivery
later this year and early into 2015.
- The 2014 capital plan includes 15 to 19 rig upgrades.
- Precision's sustaining and infrastructure capital plan is based
upon currently anticipated activity levels for 2014 and includes a
technical and operational support centre in Nisku, Alberta along
with regional support facilities and corporate systems. The Nisku
centre consolidates Precision's existing Canadian operations and
technical support centres and will contain a new employee training
centre complete with a fully functioning training rig equipped with
the latest drilling technology. The Nisku facility is expected to
support Canadian operations for several decades, provide increased
capacity and efficiency, and ensure that we continue to deliver
services with highly skilled and well trained field personnel. This
facility accounts for approximately $30 million of the 2014 capital
expenditure plan.
SEGMENTED FINANCIAL RESULTS
Precision's operations are reported in two segments: the
Contract Drilling Services segment which includes the drilling rig,
directional drilling, oilfield supply and manufacturing divisions;
and the Completion and Production Services segment which includes
the service rig, snubbing, coil tubing, rental, camp and catering
and wastewater treatment divisions.
|
|
Three months ended March 31, |
|
|
|
(Stated in thousands of Canadian dollars) |
|
2014 |
|
|
2013 |
|
% Change |
|
Revenue: |
|
|
|
|
|
|
|
|
|
Contract Drilling Services |
|
571,922 |
|
|
496,238 |
|
15.3 |
|
|
Completion and Production Services |
|
103,065 |
|
|
103,588 |
|
(0.5 |
) |
|
Inter-segment eliminations |
|
(2,738 |
) |
|
(4,106 |
) |
(33.3 |
) |
|
|
672,249 |
|
|
595,720 |
|
12.8 |
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA:(1) |
|
|
|
|
|
|
|
|
|
Contract Drilling Services |
|
239,698 |
|
|
207,205 |
|
15.7 |
|
|
Completion and Production Services |
|
19,453 |
|
|
30,115 |
|
(35.4 |
) |
|
Corporate and other |
|
(21,877 |
) |
|
(22,139 |
) |
(1.2 |
) |
|
|
237,274 |
|
|
215,181 |
|
10.3 |
|
(1) |
See
"ADDITIONAL GAAP MEASURES". |
|
SEGMENT REVIEW OF CONTRACT DRILLING
SERVICES |
|
|
|
Three months ended March 31, |
|
(Stated in thousands of Canadian dollars, except
where noted) |
|
2014 |
|
|
2013 |
% Change |
Revenue |
|
571,922 |
|
|
496,238 |
15.3 |
Expenses: |
|
|
|
|
|
|
|
Operating |
|
318,907 |
|
|
277,046 |
15.1 |
|
General and administrative |
|
13,317 |
|
|
11,987 |
11.1 |
Adjusted EBITDA (1) |
|
239,698 |
|
|
207,205 |
15.7 |
|
Depreciation |
|
92,111 |
|
|
73,711 |
25.0 |
Operating earnings (1) |
|
147,587 |
|
|
133,494 |
10.6 |
Operating earnings as a percentage of revenue |
|
25.8% |
|
|
26.9% |
|
Drilling rig revenue per utilization day in Canada |
|
22,773 |
|
|
22,299 |
2.1 |
Drilling rig revenue per utilization day in the United
States(2)(US$) |
|
24,146 |
|
|
23,991 |
0.6 |
(1) |
See
"ADDITIONAL GAAP MEASURES". |
(2) |
Includes revenue from idle but contracted rig days and lump sum
payouts in 2013. |
|
|
|
Three months ended March 31, |
|
Canadian onshore drilling statistics:(1) |
2014 |
|
2013 |
|
|
Precision |
|
Industry(2 |
) |
Precision |
|
Industry(2 |
) |
Number of drilling rigs (end of period) |
189 |
|
816 |
|
187 |
|
822 |
|
Drilling rig operating days (spud to release) |
10,054 |
|
44,777 |
|
9,789 |
|
43,298 |
|
Drilling rig operating day utilization |
59 |
% |
61 |
% |
58 |
% |
59 |
% |
Number of wells drilled |
950 |
|
3,451 |
|
1,055 |
|
3,564 |
|
Average days per well |
10.6 |
|
13.0 |
|
9.3 |
|
12.1 |
|
Number of metres drilled (000s) |
1,834 |
|
7,659 |
|
1,829 |
|
7,347 |
|
Average metres per well |
1,930 |
|
2,219 |
|
1,734 |
|
2,062 |
|
Average metres per day |
182 |
|
171 |
|
187 |
|
170 |
|
(1) |
Canadian operations only. |
(2) |
Canadian Association of Oilwell Drilling Contractors ("CAODC"), and
Precision - excludes non-CAODC rigs and non-reporting CAODC
members. |
|
|
United States onshore drilling statistics:(1) |
2014 |
2013 |
|
Precision |
Industry(2) |
Precision |
Industry(2) |
Average number of active land rigs for quarters ended March
31: |
94 |
1,724 |
81 |
1,706 |
(1) |
United States lower 48 operations only. |
(2) |
Baker
Hughes rig counts. |
Revenue from Contract Drilling Services was $572 million this
quarter, or 15% higher than the first quarter of 2013, while
adjusted EBITDA increased by 16% to $240 million. The increases
were mainly due to higher drilling rig utilization days and
dayrates in our Canadian, U.S. and international drilling
business.
Operating results for our international business improved as we
averaged 11 rigs active compared to 8 in the prior year comparative
quarter. Drilling utilization days in our international operations
for the quarter were 990 days, 38% higher than the prior year
comparative period.
Drilling rig utilization days in Canada (drilling days plus move
days) during the first quarter of 2014 were 11,384, an increase of
3% compared to 2013 while drilling rig utilization days in the U.S.
were 8,473, or 16% higher than the same quarter of 2013. The
increase in U.S. activity was primarily due to strong demand for
Tier 1 assets and resulted in market share gains during the second
half of 2013 and first part of 2014. The majority of our North
American activity came from oil and liquids-rich natural gas
related plays.
Drilling rig revenue per utilization day was up 2% in Canada and
1% in the U.S. compared to the same quarter in 2013. The increase
in average dayrates for Canada was the result of improved rig mix,
continued demand for Tier 1 assets and a pass through of a labour
cost increase that went into effect in the fourth quarter of 2013.
In the U.S., the increase in the average dayrate was driven by
improved rig mix and higher rates for spot and re-contracted
rigs.
In Canada, 40% of utilization days in the first quarter were
generated from rigs under term contract, compared to 39% in the
first quarter of 2013. In the U.S., 61% of utilization days were
generated from rigs under term contract as compared to 59% in the
first quarter of 2013. At the end of the quarter, we had 57
drilling rigs under contract in Canada, 56 in the U.S. and 11
internationally.
Operating costs were 56% of revenue for the quarter, which was
the same as the prior year period. On a per utilization day basis,
operating costs for the drilling rig division in Canada were up
over the prior year primarily because of a labour rate increase in
the fourth quarter of 2013. In the U.S., operating costs for the
quarter on a per day basis were down from the first quarter in 2013
as a result of labour efficiencies.
Depreciation expense in the quarter was 25% higher than in the
first quarter of 2013 due to changes in the estimated remaining
useful life of our capital equipment, a change to straight-line
depreciation and depreciation expense associated with new
equipment.
SEGMENT REVIEW OF COMPLETION AND PRODUCTION SERVICES
|
|
Three months ended March 31, |
|
|
|
(Stated in thousands of Canadian dollars, except
where noted) |
|
2014 |
|
|
2013 |
|
% Change |
|
Revenue |
|
103,065 |
|
|
103,588 |
|
(0.5 |
) |
Expenses: |
|
|
|
|
|
|
|
|
|
Operating |
|
78,984 |
|
|
68,898 |
|
14.6 |
|
|
General and administrative |
|
4,628 |
|
|
4,575 |
|
1.2 |
|
Adjusted EBITDA(1) |
|
19,453 |
|
|
30,115 |
|
(35.4 |
) |
|
Depreciation |
|
11,428 |
|
|
9,245 |
|
23.6 |
|
Operating earnings(1) |
|
8,025 |
|
|
20,870 |
|
(61.5 |
) |
Operating earnings as a percentage of revenue |
|
7.8 |
% |
|
20.1 |
% |
|
|
Well servicing statistics: |
|
|
|
|
|
|
|
|
|
Number of service rigs (end of period) |
|
222 |
|
|
217 |
|
2.3 |
|
|
Service rig operating hours(2) |
|
82,564 |
|
|
89,392 |
|
(7.6 |
) |
|
Service rig operating hour utilization |
|
41.1 |
% |
|
46.3 |
% |
|
|
|
Service rig revenue per operating hour(2) |
|
895 |
|
|
824 |
|
8.6 |
|
(1) |
See
"ADDITIONAL GAAP MEASURES". |
(2) |
Prior
year comparatives have changed to include U.S. based rig
activity. |
Revenue from Completion and Production Services was in line with
the first quarter of 2013, as weaker demand in the Canadian market
offset the expansion of services in the U.S. Activity in Canadian
well servicing was down 13% but was offset by a 58% increase in
U.S. well servicing activity and higher average hourly rates in
both Canada and the U.S. Adjusted EBITDA was $11 million lower than
the first quarter of 2013 due to weaker demand in Canada and higher
costs in the U.S. Additionally, winter weather impacted our
Completion and Production Services activities in the northern
regions of the U.S. for much of the first quarter of 2014.
Well servicing activity in the first quarter was 8% lower than
the first quarter of 2013, as lower customer demand in Canada
partially offset our growing U.S. presence. Approximately 90% of
the first quarter service rig activity was oil related. Our rental
division activity in the first quarter was lower than the first
quarter of 2013 mainly due to unfavourable supply and demand
dynamics in Western Canada.
Average service rig revenue per operating hour in the first
quarter was $895, or $71 higher than the first quarter of 2013. The
increase was primarily the result of increased coil tubing
operations in the current quarter, which operate at higher
rates.
Operating costs as a percentage of revenue increased to 77% in
the first quarter of 2014, from 67% in the first quarter of 2013.
Operating costs per service rig operating hour were higher than in
the first quarter of 2013 mainly because of the increase in costs
associated with the new coil tubing operations and fixed costs
spread over a lower activity base.
Depreciation in the first quarter of 2014 was 24% higher than
the first quarter of 2013 because of changes in the estimated
remaining useful life of our capital equipment, a change to
straight-line depreciation and depreciation expense associated with
new equipment.
SEGMENT REVIEW OF CORPORATE AND OTHER
Our Corporate and Other segment provides support functions to
our operating segments. The Corporate and Other segment had an
adjusted EBITDA loss of $22 million for the first quarter of 2014,
in line with the prior year comparative period.
OTHER ITEMS
Net financial charges for the quarter were $24 million, an
increase of $2 million from the first quarter of 2013, driven by
the impact of the weaker Canadian dollar on the carrying value of
our U.S. dollar denominated debt. We had a foreign exchange gain of
$4 million during the first quarter of 2014 due to the weakening of
the Canadian dollar versus the U.S. dollar, which affected the net
U.S. dollar denominated monetary position in the Canadian
dollar-based companies.
Income tax expense for the quarter was $9 million compared with
an expense of $18 million in the same quarter in 2013. The decrease
is due to income taxed at lower rates and the impact of foreign tax
rates. Our effective tax rate on earnings before income taxes for
the first quarter of 2014 was 8%.
In June 2013, a wholly owned subsidiary of Precision lost a tax
appeal in the Ontario Superior Court of Justice related to a
reassessment of Ontario income tax for the subsidiary's 2001
through 2004 taxation years. Precision has appealed the decision to
the Ontario Court of Appeal and we expect this appeal to be heard
in 2014. Despite the decision in the Superior Court, management
believes it is more likely than not that Precision will prevail on
appeal. Should Precision lose on appeal, approximately $55 million
of the long-term income tax recoverable related to this issue would
be expensed.
LIQUIDITY AND CAPITAL RESOURCES
The oilfield services business is inherently cyclical in nature.
To manage this, we focus on maintaining a strong balance sheet so
we have the financial flexibility we need to continue to manage our
growth and cash flow, no matter where we are in the business
cycle.
We apply a disciplined approach to managing and tracking results
of our operations to keep costs down. We maintain a variable cost
structure so we can be responsive to changes in demand.
Our maintenance capital expenditures are tightly governed by and
highly responsive to activity levels with additional cost savings
leverage provided through our internal manufacturing and supply
divisions. Term contracts on expansion capital for new-build rig
programs provide more certainty of future revenues and return on
our capital investments.
Liquidity
In addition to a cash balance of $106 million as at March 31,
2014, we had available capacity of $959 million under our secured
facilities.
As at March 31, 2014 we had $1,361 million outstanding under our
senior unsecured notes and had borrowed $13 million under our
senior facility.
Amount |
|
Availability |
|
Used for |
|
Maturity |
Senior facility (secured) |
|
|
|
|
|
|
US$850 million (extendible, revolving term credit facility with
US$250 million accordion feature) |
|
Drawn $13 million and US$26 million in outstanding letters of
credit |
|
General corporate purposes |
|
November 17, 2018 |
Operating facilities (secured) |
|
|
|
|
$40 million |
|
Undrawn, except $17 million in outstanding letters of credit |
|
Letters of credit and general corporate purposes |
|
|
US$15 million |
|
Undrawn |
|
Short term working capital requirements |
|
|
Demand letter of credit facility (secured) |
US$25 million |
|
Undrawn, except US$6 million in outstanding letters of credit |
|
Letters of credit |
|
|
Senior notes (unsecured) |
|
|
|
|
$200 million |
|
Fully drawn |
|
Debt repayment |
|
March 15, 2019 |
US$650 million |
|
Fully drawn |
|
Debt repayment and general corporate purposes |
|
November 15, 2020 |
US$400 million |
|
Fully drawn |
|
Capital expenditures and general corporate purposes |
|
December 15, 2021 |
Our secured facility includes financial ratio covenants that are
tested quarterly; we are compliant with these covenants and expect
to remain compliant.
The current blended cash interest cost of our debt is about
6.5%.
Hedge of investments in U.S. operations
We have designated our U.S. dollar denominated long-term debt as
a hedge of our investment in our operations in the U.S. To be
accounted for as a hedge, the foreign currency denominated
long-term debt must be designated and documented as such and must
be effective at inception and on an ongoing basis. We recognize the
effective amount of this hedge (net of tax) in other comprehensive
income. We recognize ineffective amounts (if any) in earnings.
Average shares outstanding
The following table reconciles the weighted average shares
outstanding used in computing basic and diluted earnings per
share:
|
Three months ended March 31, |
|
2014 |
2013 |
Weighted average shares outstanding - basic |
292,060 |
276,499 |
Effect of share warrants |
- |
9,553 |
Effect of share options and other equity compensation plans |
1,298 |
934 |
Weighted average shares outstanding - diluted |
293,358 |
286,986 |
|
QUARTERLY FINANCIAL SUMMARY |
|
(Stated in thousands of Canadian dollars, except
per share amounts) |
2013 |
2014 |
Quarters ended |
June 30 |
September 30 |
December 31 |
March 31 |
Revenue |
378,898 |
488,450 |
566,909 |
672,249 |
Adjusted EBITDA(1) |
88,248 |
137,660 |
197,744 |
237,274 |
Net earnings : |
473 |
29,443 |
67,921 |
101,557 |
|
Per
basic share |
0.00 |
0.11 |
0.24 |
0.35 |
|
Per
diluted share |
0.00 |
0.10 |
0.24 |
0.35 |
Funds provided by operations(1) |
33,791 |
127,684 |
155,816 |
231,393 |
Cash provided by operations |
182,345 |
88,341 |
94,452 |
170,127 |
Dividends paid per share |
0.05 |
0.05 |
0.06 |
0.06 |
(Stated in thousands of Canadian dollars, except
per share amounts) |
2012 |
|
2013 |
Quarters ended |
June 30 |
September 30 |
December 31 |
|
March 31 |
Revenue |
381,966 |
484,761 |
533,948 |
|
595,720 |
Adjusted EBITDA(1) |
97,192 |
151,000 |
177,026 |
|
215,181 |
Net earnings (loss): |
18,261 |
39,357 |
(116,339 |
) |
93,313 |
|
Per
basic share |
0.07 |
0.14 |
(0.42 |
) |
0.34 |
|
Per
diluted share |
0.06 |
0.14 |
(0.42 |
) |
0.33 |
Funds provided by operations(1) |
62,373 |
146,124 |
142,576 |
|
144,682 |
Cash provided by operations |
275,346 |
61,183 |
136,317 |
|
62,948 |
Dividends paid per share |
- |
- |
0.05 |
|
0.05 |
|
|
|
|
|
|
(1) |
See
"ADDITIONAL GAAP MEASURES". |
ADDITIONAL GAAP MEASURES
We reference Generally Accepted Accounting Principles (GAAP)
measures that are not defined terms under International Financial
Reporting Standards to assess performance because we believe they
provide useful supplemental information to investors.
Adjusted EBITDA
We believe that adjusted EBITDA (earnings before income taxes,
financing charges, foreign exchange, and depreciation and
amortization) as reported in the Consolidated Statement of Earnings
is a useful measure, because it gives an indication of the results
from our principal business activities prior to consideration of
how our activities are financed and the impact of foreign exchange,
taxation and non-cash depreciation and amortization charges.
Operating Earnings
We believe that operating earnings, as reported in the
Consolidated Statements of Earnings, is a useful measure because it
provides an indication of the results of our principal business
activities before consideration of how those activities are
financed and the impact of foreign exchange and taxation.
Funds Provided by Operations
We believe that funds provided by operations, as reported in the
Consolidated Statements of Cash Flow is a useful measure because it
provides an indication of the funds our principal business
activities generate prior to consideration of working capital,
which is primarily made up of highly liquid balances.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION AND
STATEMENTS
Certain statements contained in this report, including
statements that contain words such as "could", "should", "can",
"anticipate", "estimate", "intend", "plan", "expect", "believe",
"will", "may", "continue", "project", "potential" and similar
expressions and statements relating to matters that are not
historical facts constitute "forward‐looking information" within
the meaning of applicable Canadian securities legislation and
"forward‐looking statements" within the meaning of the "safe
harbor" provisions of the United States Private Securities
Litigation Reform Act of 1995 (collectively, "forward‐looking
information and statements").
In particular, forward looking information and statements
include, but are not limited to, the following:
- the payment of our declared first quarter dividend;
- our new-build rig program and increased rig count which
includes four additional, new-build Super Triple rigs in 2014 and
five new-build Super Triple rigs in 2015 and an increase in our
build capacity to construct two new-build rigs per month beginning
in 2015;
- our expectations regarding the growth of our international
operations including the number of rigs to be deployed to, and
timing on delivery to the Middle East and Mexico;
- the number of rigs scheduled to be delivered to Canada and the
U.S.;
- our expectations regarding additional new-build and upgrade
opportunities as Canadian LNG development gathers momentum;
- our strategic priorities;
- the expected weather impact on our Canadian drilling
operations;
- our expectations that the marked increase in Canadian drilling
activity in early 2014 will level off;
- our capital spending plans including the amounts allocated for
expansion capital, sustaining and infrastructure expenditures and
the upgrading of 15 to 19 existing rigs;
- the expected completion of our Nisku technical support centre
and its impact on our operational capabilities;
- the outcome of the tax reassessment proceedings in Ontario
involving one of our subsidiaries; and
- our expectations regarding our ability to remain compliant with
our financial ratio covenants under our secured facility.
These forward‐looking information and statements are based on
certain assumptions and analysis made by Precision in light of our
experience and our perception of historical trends, current
conditions and expected future developments as well as other
factors we believe are appropriate in the circumstances. These
include, among other things:
- drilling demand in Canada, the U.S., and our target
international markets continuing at its current pace;
- increasing market demand for our new-build Super Series
rigs;
- the status of current negotiations with our customers;
- the economic viability of unconventional North American oil and
gas plays including the growing potential of LNG export development
in Canada;
- our ability to continue operating our business in a safe,
efficient and effective manner;
- the general stability of the economic and political environment
in the jurisdictions where we operate;
- our ability to continue to recruit, develop and retain
qualified personnel; and
- our expectations regarding future and current tax rates,
foreign exchange rates and interest rates.
Whether actual results, performance or achievements will conform
to our expectations and predictions is subject to a number of known
and unknown risks and uncertainties which could cause actual
results to differ materially from our expectations. Such risks and
uncertainties include, but are not limited to:
- volatility in the price and demand for oil and natural
gas;
- fluctuations in the demand for contract drilling, well
servicing and ancillary oilfield services and its impact on
customer spending;
- capital market liquidity available to fund customer drilling
programs;
- availability of cash flow, debt and/or equity sources to fund
Precision's capital and operating requirements, as needed;
- the risks associated with our investments in capital Assets and
changing technology;
- shortages, delays and interruptions in the delivery of
equipment, supplies and other key inputs;
- the effects of seasonal and weather conditions on operations
and facilities;
- the availability of qualified personnel and management;
- the existence of competitive operating risks inherent in our
businesses;
- changes in environmental and safety rules or regulations
including increased regulatory burden on horizontal drilling and
hydraulic fracturing;
- terrorism, social, civil and political unrest in the foreign
jurisdictions where we operate;
- fluctuations in foreign exchange, interest rates and tax rates;
and
- other unforeseen conditions which could impact the use of
services supplied by Precision and Precision's ability to respond
to such conditions.
Consequently, all of the forward‐looking information and
statements made in this report are qualified by these cautionary
statements and there can be no assurance that the actual results or
developments anticipated by Precision will be realized or, even if
substantially realized, that they will have the expected
consequences to, or effects on, Precision or its business or
operations. Readers are therefore cautioned not to place undue
reliance on such forward‐looking information and statements. Except
as may be required by law, Precision assumes no obligation to
update publicly any such forward‐looking information and
statements, whether as a result of new information, future events
or otherwise.
INTERIM CONSOLIDATED STATEMENTS OF
FINANCIAL POSITION (UNAUDITED) |
|
|
|
March 31, |
|
December 31, |
|
(Stated in thousands of Canadian dollars) |
|
2014 |
|
2013 |
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash |
$ |
106,165 |
$ |
80,606 |
|
|
Accounts receivable |
|
607,900 |
|
549,697 |
|
|
Inventory |
|
13,606 |
|
12,378 |
|
|
|
|
|
|
|
Total current assets |
|
727,671 |
|
642,681 |
|
Non-current assets: |
|
|
|
|
|
|
Income tax recoverable |
|
58,435 |
|
58,435 |
|
|
Property, plant and equipment |
|
3,633,832 |
|
3,561,734 |
|
|
Intangibles |
|
3,538 |
|
3,917 |
|
|
Goodwill |
|
313,451 |
|
312,356 |
|
Total non-current assets |
|
4,009,256 |
|
3,936,442 |
|
Total assets |
$ |
4,736,927 |
$ |
4,579,123 |
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
Accounts payable and accrued liabilities |
$ |
338,095 |
$ |
332,838 |
|
|
Income tax payable |
|
157 |
|
4,060 |
|
Total current liabilities |
|
338,252 |
|
336,898 |
|
|
|
|
|
|
|
Non-current liabilities: |
|
|
|
|
|
|
Share
based compensation |
|
12,286 |
|
14,431 |
|
|
Provisions and other |
|
20,512 |
|
17,836 |
|
|
Long-term debt |
|
1,350,992 |
|
1,323,268 |
|
|
Deferred tax liabilities |
|
500,957 |
|
487,347 |
|
Total non-current liabilities |
|
1,884,747 |
|
1,842,882 |
|
|
|
|
|
|
|
Shareholders' equity: |
|
|
|
|
|
|
Shareholders' capital |
|
2,308,966 |
|
2,305,227 |
|
|
Contributed surplus |
|
29,441 |
|
29,175 |
|
|
Retained earnings |
|
172,446 |
|
88,416 |
|
|
Accumulated other comprehensive income (loss) |
|
3,075 |
|
(23,475 |
) |
|
Total shareholders' equity |
|
2,513,928 |
|
2,399,343 |
|
Total liabilities and shareholders' equity |
$ |
4,736,927 |
$ |
4,579,123 |
|
|
INTERIM CONSOLIDATED STATEMENTS OF EARNINGS
(UNAUDITED) |
|
|
|
Three months ended March 31, |
|
(Stated in thousands of Canadian dollars, except
per share amounts) |
|
2014 |
|
|
2013 |
|
|
|
|
|
|
|
|
Revenue |
$ |
672,249 |
|
$ |
595,720 |
|
|
|
|
|
|
|
|
Expenses: |
|
|
|
|
|
|
|
Operating |
|
395,153 |
|
|
341,838 |
|
|
General and administrative |
|
39,822 |
|
|
38,701 |
|
Earnings before income taxes, finance charges, foreign
exchange and depreciation and amortization |
|
237,274 |
|
|
215,181 |
|
Depreciation and amortization |
|
105,705 |
|
|
84,893 |
|
Operating earnings |
|
131,569 |
|
|
130,288 |
|
Foreign exchange |
|
(3,629 |
) |
|
(3,294 |
) |
Finance charges |
|
24,432 |
|
|
22,559 |
|
Earnings before income taxes |
|
110,766 |
|
|
111,023 |
|
Income taxes: |
|
|
|
|
|
|
|
Current |
|
5,444 |
|
|
18,095 |
|
|
Deferred |
|
3,765 |
|
|
(385 |
) |
|
|
9,209 |
|
|
17,710 |
|
|
|
|
|
|
|
|
Net earnings |
$ |
101,557 |
|
$ |
93,313 |
|
Net earnings per share: |
|
|
|
|
|
|
|
Basic |
$ |
0.35 |
|
$ |
0.34 |
|
|
Diluted |
$ |
0.35 |
|
$ |
0.33 |
|
|
INTERIM CONSOLIDATED STATEMENTS OF
COMPREHENSIVE INCOME (UNAUDITED) |
|
|
|
Three months ended March 31, |
|
(Stated in thousands of Canadian dollars) |
|
2014 |
|
|
2013 |
|
Net
earnings |
$ |
101,557 |
|
$ |
93,313 |
|
Unrealized gain on translation of assets and liabilities of
operations denominated in foreign currency |
|
70,335 |
|
|
32,120 |
|
Foreign exchange loss on net investment hedge with U.S. denominated
debt, net of tax |
|
(43,785 |
) |
|
(21,735 |
) |
Comprehensive income |
$ |
128,107 |
|
$ |
103,698 |
|
|
INTERIM CONSOLIDATED STATEMENTS OF CASH
FLOW (UNAUDITED) |
|
|
|
Three months ended March 31, |
|
(Stated in thousands of Canadian dollars) |
|
2014 |
|
|
2013 |
|
Cash provided by (used in): |
|
|
|
|
|
|
Operations: |
|
|
|
|
|
|
Net earnings |
$ |
101,557 |
|
$ |
93,313 |
|
Adjustments for: |
|
|
|
|
|
|
|
Long-term compensation plans |
|
10,311 |
|
|
6,517 |
|
|
Depreciation and amortization |
|
105,705 |
|
|
84,893 |
|
|
Foreign exchange |
|
(4,389 |
) |
|
(3,302 |
) |
|
Finance charges |
|
24,432 |
|
|
22,559 |
|
|
Income taxes |
|
9,209 |
|
|
17,710 |
|
|
Other |
|
1,499 |
|
|
938 |
|
|
Income taxes paid |
|
(9,031 |
) |
|
(70,679 |
) |
|
Income taxes recovered |
|
12 |
|
|
- |
|
|
Interest paid |
|
(8,025 |
) |
|
(7,493 |
) |
|
Interest received |
|
113 |
|
|
226 |
|
Funds provided by operations |
|
231,393 |
|
|
144,682 |
|
Changes in non-cash working capital balances |
|
(61,266 |
) |
|
(81,734 |
) |
|
|
170,127 |
|
|
62,948 |
|
Investments: |
|
|
|
|
|
|
|
Purchase of property, plant and equipment |
|
(105,999 |
) |
|
(130,605 |
) |
|
Proceeds on sale of property, plant and equipment |
|
7,257 |
|
|
2,538 |
|
|
Changes in non-cash working capital balances |
|
(16,308 |
) |
|
15,741 |
|
|
|
(115,050 |
) |
|
(112,326 |
) |
Financing: |
|
|
|
|
|
|
|
Repayment of long-term debt |
|
(16,728 |
) |
|
- |
|
|
Dividends paid |
|
(17,527 |
) |
|
(13,825 |
) |
|
Issuance of common shares on the exercise of options |
|
2,610 |
|
|
480 |
|
|
|
(31,645 |
) |
|
(13,345 |
) |
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash
equivalents |
|
2,127 |
|
|
4,792 |
|
Increase (decrease) in cash and cash equivalents |
|
25,559 |
|
|
(57,931 |
) |
Cash and cash equivalents, beginning of period |
|
80,606 |
|
|
152,768 |
|
Cash and cash equivalents, end of period |
$ |
106,165 |
|
$ |
94,837 |
|
|
INTERIM CONSOLIDATED STATEMENTS OF CHANGES
IN EQUITY (UNAUDITED) |
|
(Stated in thousands of Canadian
dollars) |
|
Shareholders' capital |
Contributed surplus |
|
Accumulated other comprehensive income (loss |
) |
Retained earnings |
|
Total equity |
|
Balance at January 1, 2014 |
$
2,305,227 |
$
29,175 |
|
$
(23,475 |
) |
$
88,416 |
|
$
2,399,343 |
|
Net
earnings for the period |
- |
- |
|
- |
|
101,557 |
|
101,557 |
|
Other
comprehensive income for the period |
- |
- |
|
26,550 |
|
- |
|
26,550 |
|
Dividends |
- |
- |
|
- |
|
(17,527 |
) |
(17,527 |
) |
Share
options exercised |
3,739 |
(1,129 |
) |
- |
|
- |
|
2,610 |
|
Share based compensation expense |
- |
1,395 |
|
- |
|
- |
|
1,395 |
|
Balance at March 31, 2014 |
$ 2,308,966 |
$ 29,441 |
|
$ 3,075 |
|
$ 172,446 |
|
$ 2,513,928 |
|
|
(Stated in thousands of Canadian
dollars) |
|
Shareholders' capital |
Contributed surplus |
|
Accumulated other comprehensive loss |
|
Retained earnings (deficit |
) |
Total equity |
|
Balance at January 1, 2013 |
$
2,251,982 |
$
24,474 |
|
$
(60,535 |
) |
$
(44,621 |
) |
$
2,171,300 |
|
Net
earnings for the period |
- |
- |
|
- |
|
93,313 |
|
93,313 |
|
Other
comprehensive income for the period |
- |
- |
|
10,385 |
|
- |
|
10,385 |
|
Dividends |
- |
- |
|
- |
|
(13,825 |
) |
(13,825 |
) |
Share
options exercised |
729 |
(249 |
) |
- |
|
- |
|
480 |
|
Share based compensation expense |
- |
1,929 |
|
- |
|
- |
|
1,929 |
|
Balance at March 31, 2013 |
$ 2,252,711 |
$ 26,154 |
|
$ (50,150 |
) |
$ 34,867 |
|
$ 2,263,582 |
|
FIRST QUARTER 2014 EARNINGS CONFERENCE CALL AND WEBCAST
Precision Drilling Corporation has scheduled a conference call
and webcast to begin promptly at 12:00 noon MT (2:00 p.m. ET) on
Monday, April 28, 2014.
The conference
call dial in numbers are 1-866-226-1793 or
416-340-2216.
A live webcast of the conference call will be accessible on
Precision's website at www.precisiondrilling.com by selecting
"Investor Centre", then "Webcasts". Shortly after the live webcast,
an archived version will be available for approximately 30
days.
An archived recording of the conference call will be available
approximately one hour after the completion of the call until May
26, 2014 by dialing 1-800-408-3053 or
905-694-9451, pass
code 4696487.
About Precision
Precision is a leading provider of safe and High Performance,
High Value services to the oil and gas industry. Precision provides
customers with access to an extensive fleet of contract drilling
rigs, directional drilling services, well service and snubbing
rigs, coil tubing services, camps, rental equipment, and wastewater
treatment units backed by a comprehensive mix of technical support
services and skilled, experienced personnel.
Precision is headquartered in Calgary, Alberta, Canada.
Precision is listed on the Toronto Stock Exchange under the trading
symbol "PD" and on the New York Stock Exchange under the trading
symbol "PDS".
Precision Drilling CorporationCarey FordVice President, Finance
and Investor Relations403.716.4575Precision Drilling
CorporationSuite 800, 525 - 8th Avenue S.W.Calgary, Alberta, Canada
T2P 1G1403.716.4755www.precisiondrilling.com
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