Mission Statement, Vision, & Core Values (2024) of Precision Drilling Corporation (PDS)

An Overview of Precision Drilling Corporation (PDS)

General Summary of Precision Drilling Corporation

Precision Drilling Corporation (PDS), established in 1951, has grown to become one of North America's largest providers of drilling services to the oil and natural gas industry. The company operates a fleet of land drilling rigs, offering a range of services including contract drilling and completion and production services. As of 2024, Precision Drilling has a contract drilling rig fleet consisting of 214 rigs, with significant operations in Canada, the United States, and internationally.

In 2024, the company's sales are driven by increased demand for its Super Triple and Super Single rigs, with Canadian drilling activity averaging 72 active rigs, up from 57 in the same period the previous year. The company reported revenue of $477 million in the third quarter of 2024, marking an increase from $447 million in the third quarter of 2023, primarily due to heightened activity in Canada and internationally.

Company's Financial Performance in Latest Financial Reports

For the third quarter of 2024, Precision Drilling reported:

• Revenue: $477 million, up 6.8% from $446.8 million in Q3 2023.
• Adjusted EBITDA: $142.4 million, compared to $114.6 million in the same quarter of 2023, reflecting a 24.3% increase.
• Net Earnings: $39.2 million or $2.77 per share, nearly doubling from $19.8 million or $1.45 per share in Q3 2023.
• Completion and Production Services Revenue: Increased by 26.9% to $73 million.
• International Revenue: Rose 21% to US$35 million compared to US$29 million in Q3 2023.
• Debt Reduction: $49 million in the quarter, totaling $152 million year-to-date.

Overall, the financial performance reflects Precision Drilling's resilience and growth, with operational cash flow supporting strategic initiatives such as debt repayment and shareholder returns.

Introduction to Precision Drilling as an Industry Leader

Precision Drilling is recognized as a leader in the drilling services sector, distinguished by its large fleet and innovative service offerings. The company focuses on operational excellence, aiming to be the high-performance, high-value provider of land drilling services globally. In 2024, Precision anticipates continued growth driven by robust Canadian market fundamentals and strategic investments, including an increase in capital expenditures from $195 million to $210 million to enhance rig capabilities.

The company's strategic priorities include:

• Enhancing operational efficiencies and increasing free cash flow.
• Continuing to reduce debt while returning capital to shareholders through share repurchases.
• Expanding the utilization of its advanced drilling technologies, including the EverGreen™ product line.

Precision Drilling's commitment to delivering high-quality service positions it well for future opportunities and solidifies its standing as a premier provider in the industry.

Mission Statement of Precision Drilling Corporation (PDS)

Mission Statement of Precision Drilling Corporation (PDS)

Precision Drilling Corporation (PDS) is dedicated to being a leader in the oil and gas drilling sector, with a mission statement that emphasizes their commitment to delivering high-quality services, operational excellence, and sustainable practices. The mission statement serves as a guiding principle for the company's long-term goals and strategic initiatives, ensuring that they remain focused on their core objectives while adapting to industry changes.

Core Components of the Mission Statement

1. Commitment to High-Quality Services

Precision Drilling is committed to providing high-quality services that meet the evolving needs of the energy industry. The company focuses on innovation and technology to enhance operational efficiency and service delivery. In the third quarter of 2024, Precision reported revenue of $477 million, an increase from $447 million in the same quarter of 2023, driven by increased activity in Canada and international markets.

2. Operational Excellence

Operational excellence is a crucial aspect of Precision's mission. The company aims to optimize its operations to achieve the highest levels of safety and efficiency. For instance, during the same quarter, Precision's Adjusted EBITDA was $142 million, representing a 24.3% increase compared to the previous year. The company's commitment to operational excellence is evident through its high utilization rates; in Canada, the average active drilling rigs increased to 72 compared to 57 in the previous year.

3. Sustainable Practices

Precision Drilling recognizes the importance of sustainability in its operations. The company has implemented initiatives aimed at reducing its environmental impact while maintaining profitability. For example, the introduction of the EverGreen™ product line, which incorporates hydrogen injection systems, aims to lower greenhouse gas emissions and reduce diesel consumption. This commitment aligns with global trends toward sustainable energy practices, reflecting Precision's proactive approach to environmental responsibility.

Through its mission statement, Precision Drilling Corporation articulates its dedication to high-quality services, operational excellence, and sustainable practices. These core components not only guide the company's strategic direction but also reflect its commitment to adapting to the ever-changing landscape of the energy industry.

Vision Statement of Precision Drilling Corporation (PDS)

Vision Statement Overview

The vision statement of Precision Drilling Corporation (PDS) as of 2024 emphasizes the company's commitment to being recognized globally as the High Performance, High Value provider of land drilling services. This vision is underpinned by several strategic components aimed at enhancing operational efficiency, financial performance, and market leadership.

High Performance

Precision Drilling aims to set a benchmark in operational performance within the drilling industry. In the third quarter of 2024, the company reported:

• Revenue of $477 million, an increase from $447 million in the same quarter of 2023.
• Adjusted EBITDA of $142 million, compared to $115 million in Q3 2023.
• Net earnings of $39 million or $2.77 per share, nearly doubling from $20 million or $1.45 per share in the previous year.

These financial results are indicative of Precision's operational excellence, showcasing a robust cash flow generation and strategic cost management.

High Value

The value proposition of Precision Drilling is centered around delivering superior service quality and maximizing shareholder returns. Key performance indicators include:

• Increased capital expenditures for 2024, raised from $195 million to $210 million, aimed at upgrading contracted rigs and enhancing operational capabilities.
• Debt reduction of $49 million in Q3 2024, totaling $152 million year-to-date, reflecting a commitment to financial prudence.
• Share repurchases amounting to $17 million in the third quarter, with a total of $50 million repurchased year-to-date, representing over 25% of free cash flow allocated to shareholder returns.

Strategic Priorities

Precision Drilling's strategic priorities for 2024 are focused on enhancing capital returns and operational efficiency:

• Generating cash from operations of $80 million in Q3 2024, leading to a year-to-date total of $319 million.
• Achieving a 34% increase in service rig operating hours, totaling 62,835 hours driven by the CWC acquisition.
• Maintaining a leading position in Canada with an average of 72 active drilling rigs, an increase from 57 in Q3 2023.

Future Outlook

Looking ahead, Precision Drilling anticipates continued growth in demand for drilling services driven by strong fundamentals in oil and gas markets. The company is well-positioned to leverage its operational capabilities and financial strength to capitalize on emerging opportunities in the energy sector.

Commitment to Sustainability

Precision Drilling is also committed to sustainability through its EverGreen™ product line, which includes innovations such as hydrogen injection systems aimed at reducing diesel consumption and greenhouse gas emissions. This initiative underscores the company's goal of aligning its operational practices with environmental stewardship.

Core Values of Precision Drilling Corporation (PDS)

Integrity

Integrity at Precision Drilling Corporation (PDS) means conducting business ethically and transparently. This core value is fundamental to maintaining trust with clients, partners, and employees.

In 2024, Precision Drilling demonstrated its commitment to integrity through various initiatives, including strict adherence to safety regulations and ethical business practices. The company has implemented a comprehensive compliance program that includes regular training sessions for employees on ethical behavior and decision-making, ensuring that all operations comply with industry standards and regulations.

Safety

Safety is paramount at Precision Drilling, reflecting the company's commitment to protecting its employees and the environment. This value drives operational decisions and procedures.

In 2024, Precision reported a significant reduction in incident rates, achieving a Total Recordable Incident Rate (TRIR) of 0.30, a marked improvement from 0.45 in 2023. This improvement is attributed to enhanced training programs and the introduction of advanced safety technologies across its drilling rigs.

Additionally, Precision has invested over $15 million in safety equipment and training, further emphasizing its commitment to a safe workplace.

Excellence

Excellence is a core value that drives Precision Drilling to deliver high-quality services consistently. This involves maintaining high standards in operational performance and customer service.

In 2024, Precision achieved an Adjusted EBITDA margin of 30%, a notable increase from 26% in the previous year, reflecting operational efficiency and cost management efforts. The company also launched its EverGreen™ product line, which has already generated $20 million in revenue, showcasing its commitment to innovation and quality in service delivery.

Collaboration

Collaboration fosters teamwork and partnership, both internally among employees and externally with clients and stakeholders. This value enhances Precision's ability to meet customer needs effectively.

In 2024, Precision formed strategic partnerships with Indigenous communities in British Columbia, focusing on well servicing operations. This partnership not only expands service capabilities but also supports community development and engagement, aligning with Precision's collaborative approach.

Accountability

Accountability at Precision Drilling means taking responsibility for actions and results, ensuring that commitments to stakeholders are met.

The company has established clear performance metrics for its executives, linking compensation to the achievement of safety, operational, and financial targets. In 2024, Precision reduced its long-term debt by $152 million, demonstrating financial accountability and commitment to shareholder value. This was part of a broader strategy to allocate 25% to 35% of free cash flow towards debt repayment and share buybacks, enhancing financial stability and investor confidence.

Article updated on 8 Nov 2024

Resources:

• Precision Drilling Corporation (PDS) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Precision Drilling Corporation (PDS)' financial performance, including balance sheets, income statements, and cash flow statements.
• SEC Filings – View Precision Drilling Corporation (PDS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.