Precision Announces Year-To-Date Debt Repayment of $125 Million to Reach the Mid-Point of Targeted 2019 Debt Reduction Range
June 04 2019 - 6:00AM
Precision Drilling Corporation (“Precision” or the “Company”)
(TSX:PD; NYSE:PDS) is pleased to announce year-to-date debt
repayment of approximately $125 million, reaching the mid-point of
its 2019 targeted debt reduction range. Earlier this year,
Precision set its 2019 debt repayment target at $100 million to
$150 million and increased its longer-term debt reduction target
range by $100 million with a new target range of $400 million to
$600 million by the end of 2021, inclusive of debt repayments in
2018.
Precision’s CFO, Carey Ford stated: “Precision
continues to utilize strong free cash flow to reduce financial
leverage and deliver on both short and long-term debt reduction
targets. We have reduced debt by approximately $300 million
since the beginning of 2018 and with our 2019 capital expenditure
plan front-end loaded, reduced interest expense and a positive free
cash flow outlook, we expect to be in a position to further reduce
debt during the second half of the year, reaching or exceeding the
high end of our 2019 debt reduction target.”
As of June 4, 2019, the company has US$1,174
million outstanding under unsecured senior notes as compared with
US$1,267 million at December 31, 2018 and US$1,399 million at
December 31, 2017. Precision maintains its strong liquidity
position with an estimated June 30, 2019 cash balance of $70
million and undrawn credit facilities, excluding letters of credit.
The company remains well positioned with a low cost of capital and
favorable debt structure with the following maturities:
- US$116 million - 6.5% Senior Notes due December 15,
2021
- US$350 million - 7.75% Senior Notes due December 15, 2023
- US$334 million - 5.25% Senior Notes due November 15,
2024
- US$374 million - 7.125% Senior Notes due January 15,
2026
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:
- our planned capital expenditures for 2019;
- our estimated cash balance as of June 30, 2019;
- anticipated activity levels in 2019; and
- anticipated positive cash flows and future debt repayments for
2019.
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, expected future developments and other factors
we believe are appropriate under the circumstances.
Undue reliance should not be placed on
forward-looking information and statements. 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;
- our customers’ inability to obtain adequate credit or financing
to support their drilling and production activity;
- changes in drilling and well servicing technology which could
reduce demand for certain rigs or put us at a competitive
disadvantage;
- 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;
- a decline in our safety performance which could result in lower
demand for our services;
- changes in environmental laws and regulations such as increased
regulation of hydraulic fracturing or restrictions on the burning
of fossil fuels and greenhouse gas emissions, which could have an
adverse impact on the demand for oil and gas;
- 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.
Readers are cautioned that the forgoing list of
risk factors is not exhaustive. Additional information on these and
other factors that could affect our business, operations or
financial results are included in reports on file with applicable
securities regulatory authorities, including but not limited to
Precision’s Annual Information Form for the year ended December 31,
2018, which may be accessed on Precision’s SEDAR profile at
www.sedar.com or under Precision’s EDGAR profile at www.sec.gov.
The forward-looking information and statements contained in this
news release are made as of the date hereof and Precision
undertakes no obligation to update publicly or revise any
forward-looking statements or information, whether as a result of
new information, future events or otherwise, except as required by
law.
About PrecisionPrecision 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 Super Series drilling rigs supported by an
industry leading technology platform that offers the most
innovative drilling solutions to deliver efficient, predictable and
repeatable results through service differentiation. Precision also
offers directional drilling services, well service rigs, camps and
rental equipment all 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”.
For further information, please contact:
Carey Ford, CFASenior Vice President and Chief
Financial Officer713.435.6136 Dustin Honing, CPAManager, Investor
Relations403.716.4515 Precision Drilling Corporation800, 525 - 8th
Avenue S.W.Calgary, Alberta, Canada T2P 1G1Website:
www.precisiondrilling.com
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