Precision Drilling’s Positive Third Quarter Results Driven by High Efficiency Rig Systems
November 17, 2017
Kevin Neveu, Precision’s President and Chief Executive Officer, stated: “I am pleased with our reported third quarter results which include solid cash flow generation driving a $37 million increase in our quarter end cash balance, and the first sequential increase in both our U.S. fleet average day rates (excluding idle but contracted revenue) and margins since early in 2015. Despite commodity price volatility and lower than anticipated WTI and Canadian AECO prices during the third quarter, demand and pricing for Precision’s Super Series rigs remained firm through the quarter. We anticipate demand to further strengthen as our customers initiate their 2018 drilling programs.”
“As our customers across the U.S. and Canada have learned to operate in a “lower for longer” commodity price environment, they have focused on drilling and completion efficiency utilizing long or extended-reach horizontal wells and adopted large-scale industrialization techniques, such as multi-well pads and high efficiency rig systems. Precision’s Super Triple rigs are configured to optimize long reach drilling performance combined with pad walking capability, and are active in virtually every resource play in North America.”
“During the third quarter we continued to demonstrate the “next tier” of drilling efficiency improvement with Process Automation Control (PAC) and other technology initiatives we are implementing in our beta testing program. Precision has drilled approximately 70 wells utilizing PAC technology, which is currently installed on 20 Super Triple rigs, and the results continue to show improved efficiency, consistency and repeatability, exactly what our customers desire. Precision along with its partner have made significant strides towards making Precision’s PAC a commercial success in 2018 as outlined as one of our three key priorities for the year. We believe these initiatives will further strengthen the competitive positioning of Precision’s Super Triple fleet while driving additional revenue streams for each of our technology offerings.”
