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- volatility in the price and demand for oil and natural gas;
- fluctuations in the level of oil and natural gas exploration and development activities;
- 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;
- liquidity of the capital markets to fund customer drilling programs;
- availability of cash flow, debt and equity sources to fund our capital and operating requirements, as needed;
- the physical, regulatory and transition impacts of climate change;
- the impact of weather and seasonal conditions on operations and facilities;
- the impact of tariffs, trade disputes, sanctions, export controls and other trade restrictions;
- competitive operating risks inherent in contract drilling, well servicing and ancillary oilfield services;
- geopolitical instability or armed conflicts, including in regions where we operate may impact operations, personnel, logistics, customer activity and commodity markets;
- ability to improve our rig technology to improve drilling efficiency;
- general economic, market or business conditions;
- the availability of qualified personnel and management;
- a decline in our safety performance which could result in lower demand for our services;
- the impact of inflation and supply chain disruptions;
- business interruptions related to cybersecurity risks;
- changes in laws or regulations, including 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 natural gas;
- terrorism, acts of war, social, civil and political unrest in the foreign jurisdictions or regions 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.
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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, 2025, which may be accessed on Precision’s SEDAR+ profile at or under Precision’s EDGAR profile. The forward-looking information and statements contained in this report 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.
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CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED)
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| (Stated in thousands of Canadian dollars) | June 30, 2026 | December 31, 2025 | ||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash | $ | 66,292 | $ | 85,781 | ||||
| Accounts receivable | 348,477 | 352,142 | ||||||
| Inventory | 54,700 | 48,992 | ||||||
| Total current assets | 469,469 | 486,915 | ||||||
| Non-current assets: | ||||||||
| Deferred tax assets | 4,170 | 2,235 | ||||||
| Property, plant and equipment | 2,170,098 | 2,159,212 | ||||||
| Intangibles | 7,691 | 9,470 | ||||||
| Right-of-use assets | 64,331 | 56,817 | ||||||
| Finance lease receivables | 4,059 | 4,474 | ||||||
| Investments and other assets | 6,871 | 7,567 | ||||||
| Total non-current assets | 2,257,220 | 2,239,775 | ||||||
| Total assets | $ | 2,726,689 | $ | 2,726,690 | ||||
| LIABILITIES AND EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable and accrued liabilities | $ | 302,571 | $ | 280,652 | ||||
| Income taxes payable | 441 | 1,670 | ||||||
| Current portion of lease obligations | 19,545 | 17,778 | ||||||
| Total current liabilities | 322,557 | 300,100 | ||||||
| Non-current liabilities: | ||||||||
| Share-based compensation | 8,568 | 13,780 | ||||||
| Provisions and other | 6,941 | 6,704 | ||||||
| Lease obligations | 51,152 | 47,169 | ||||||
| Long-term debt | 626,327 | 679,291 | ||||||
| Deferred tax liabilities | 105,567 | 90,763 | ||||||
| Total non-current liabilities | 798,555 | 837,707 | ||||||
| Total liabilities | 1,121,112 | 1,137,807 | ||||||
| Equity: | ||||||||
| Shareholders’ capital | 2,208,934 | 2,238,766 | ||||||
| Contributed surplus | 79,557 | 79,270 | ||||||
| Accumulated other comprehensive income | 187,425 | 165,020 | ||||||
| Deficit | (875,179 | ) | (898,992 | ) | ||||
| Total equity attributable to shareholders | 1,600,737 | 1,584,064 | ||||||
| Non-controlling interest | 4,840 | 4,819 | ||||||
| Total equity | 1,605,577 | 1,588,883 | ||||||
| Total liabilities and equity | $ | 2,726,689 | $ | 2,726,690 | ||||
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CONDENSED
INTERIM CONSOLIDATED STATEMENTS OF NET EARNINGS (LOSS) (UNAUDITED)
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| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| (Stated in thousands of Canadian dollars, except per share amounts) | 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Revenue | $ | 452,800 | $ | 406,615 | $ | 978,851 | $ | 902,946 | ||||||||
| Expenses: | ||||||||||||||||
| Operating | 329,293 | 273,745 | 689,652 | 602,813 | ||||||||||||
| General and administrative | 26,452 | 24,770 | 68,197 | 54,536 | ||||||||||||
| Earnings before income taxes, (gain) loss on investments and other assets, finance charges, foreign exchange, gain on asset disposals, and depreciation and amortization | 97,055 | 108,100 | 221,002 | 245,597 | ||||||||||||
| Depreciation and amortization | 82,678 | 74,858 | 167,008 | 149,894 | ||||||||||||
| Gain on asset disposals | (467 | ) | (6,425 | ) | (2,180 | ) | (9,297 | ) | ||||||||
| Foreign exchange | 337 | (1,617 | ) | 785 | (1,250 | ) | ||||||||||
| Finance charges | 12,301 | 14,857 | 24,657 | 30,617 | ||||||||||||
| (Gain) loss on investments and other assets | (937 | ) | 1,674 | 530 | 1,625 | |||||||||||
| Earnings before income taxes | 3,143 | 24,753 | 30,202 | 74,008 | ||||||||||||
| Income taxes: | ||||||||||||||||
| Current | 696 | 1,068 | 1,398 | 2,174 | ||||||||||||
| Deferred | 3,340 | 7,198 | 11,852 | 20,400 | ||||||||||||
| 4,036 | 8,266 | 13,250 | 22,574 | |||||||||||||
| Net earnings (loss) | $ | (893 | ) | $ | 16,487 | $ | 16,952 | $ | 51,434 | |||||||
| Attributable to: | ||||||||||||||||
| Shareholders of Precision Drilling Corporation | $ | (1,195 | ) | $ | 16,267 | $ | 16,181 | $ | 50,778 | |||||||
| Non-controlling interest | $ | 302 | $ | 220 | $ | 771 | $ | 656 | ||||||||
| Net earnings (loss) per share attributable to share- holders of Precision Drilling Corporation: | ||||||||||||||||
| Basic | $ | (0.09 | ) | $ | 1.21 | $ | 1.25 | $ | 3.75 | |||||||
| Diluted | $ | (0.52 | ) | $ | 1.07 | $ | 1.25 | $ | 3.28 | |||||||
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CONDENSED
INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
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| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| (Stated in thousands of Canadian dollars) | 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Net earnings (loss) | $ | (893 | ) | $ | 16,487 | $ | 16,952 | $ | 51,434 | |||||||
| Unrealized gain (loss) on translation of assets and liabilities of operations denominated in foreign currency | 24,919 | (79,446 | ) | 43,163 | (80,104 | ) | ||||||||||
| Foreign exchange gain (loss) on net investment hedge with U.S. denominated debt | (11,844 | ) | 41,008 | (20,758 | ) | 40,473 | ||||||||||
| Comprehensive income (loss) | $ | 12,182 | $ | (21,951 | ) | $ | 39,357 | $ | 11,803 | |||||||
| Attributable to: | ||||||||||||||||
| Shareholders of Precision Drilling Corporation | $ | 11,880 | $ | (22,171 | ) | $ | 38,586 | $ | 11,147 | |||||||
| Non-controlling interest | $ | 302 | $ | 220 | $ | 771 | $ | 656 | ||||||||
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CONDENSED
INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
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| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| (Stated in thousands of Canadian dollars) | 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Cash provided by (used in): | ||||||||||||||||
| Operations: | ||||||||||||||||
| Net earnings (loss) | $ | (893 | ) | $ | 16,487 | $ | 16,952 | $ | 51,434 | |||||||
| Adjustments for: | ||||||||||||||||
| Long-term compensation plans | 2,539 | 3,374 | 11,800 | 6,390 | ||||||||||||
| Depreciation and amortization | 82,678 | 74,858 | 167,008 | 149,894 | ||||||||||||
| Gain on asset disposals | (467 | ) | (6,425 | ) | (2,180 | ) | (9,297 | ) | ||||||||
| Foreign exchange | 333 | (1,631 | ) | 887 | (2,414 | ) | ||||||||||
| Finance charges | 12,301 | 14,857 | 24,657 | 30,617 | ||||||||||||
| Income taxes | 4,036 | 8,266 | 13,250 | 22,574 | ||||||||||||
| Other | 26 | (21 | ) | 13 | (21 | ) | ||||||||||
| (Gain) loss on investments and other assets | (937 | ) | 1,674 | 530 | 1,625 | |||||||||||
| Income taxes paid | (1,811 | ) | (3,846 | ) | (2,153 | ) | (4,167 | ) | ||||||||
| Interest paid | (2,636 | ) | (3,621 | ) | (24,627 | ) | (33,258 | ) | ||||||||
| Interest received | 384 | 318 | 808 | 755 | ||||||||||||
| Funds provided by operations | 95,553 | 104,290 | 206,945 | 214,132 | ||||||||||||
| Changes in non-cash working capital balances | 50,016 | 43,205 | 1,778 | (3,218 | ) | |||||||||||
| Cash provided by operations | 145,569 | 147,495 | 208,723 | 210,914 | ||||||||||||
| Investments: | ||||||||||||||||
| Purchase of property, plant and equipment | (76,364 | ) | (52,773 | ) | (141,364 | ) | (112,738 | ) | ||||||||
| Proceeds on sale of property, plant and equipment | 12,013 | 11,829 | 14,300 | 15,594 | ||||||||||||
| Proceeds from sale of investments and other assets | 400 | — | 400 | — | ||||||||||||
| Purchase of investments and other assets | — | — | (698 | ) | (11 | ) | ||||||||||
| Receipt of finance lease payments | 252 | 209 | 503 | 417 | ||||||||||||
| Changes in non-cash working capital balances | 8,938 | 4,686 | (2,604 | ) | 3,487 | |||||||||||
| Cash used in investing activities | (54,761 | ) | (36,049 | ) | (129,463 | ) | (93,251 | ) | ||||||||
| Financing: | ||||||||||||||||
| Issuance of long-term debt | — | 10,000 | 3,000 | 10,000 | ||||||||||||
| Repayment of long-term debt | (50,041 | ) | (83,854 | ) | (78,041 | ) | (100,964 | ) | ||||||||
| Repurchase of share capital | (12,010 | ) | (14,490 | ) | (16,025 | ) | (45,256 | ) | ||||||||
| Issuance of common shares from the exercise of options | — | — | 195 | — | ||||||||||||
| Distributions to non-controlling interest | — | — | (300 | ) | — | |||||||||||
| Lease payments | (4,361 | ) | (3,922 | ) | (8,454 | ) | (7,509 | ) | ||||||||
| Cash used in financing activities | (66,412 | ) | (92,266 | ) | (99,625 | ) | (143,729 | ) | ||||||||
| Effect of exchange rate changes on cash | 434 | (727 | ) | 876 | (1,007 | ) | ||||||||||
| Increase (decrease) in cash | 24,830 | 18,453 | (19,489 | ) | (27,073 | ) | ||||||||||
| Cash, beginning of period | 41,462 | 28,245 | 85,781 | 73,771 | ||||||||||||
| Cash, end of period | $ | 66,292 | $ | 46,698 | $ | 66,292 | $ | 46,698 | ||||||||
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CONDENSED
INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED)
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| Attributable to shareholders of the Corporation | ||||||||||||||||||||||||||||
| (Stated in thousands of Canadian dollars) | Shareholders’ Capital | Contributed Surplus | Accumulated Other Comprehensive Income | Deficit | Total | Non- Controlling Interest | Total Equity | |||||||||||||||||||||
| Balance at January 1, 2026 | $ | 2,238,766 | $ | 79,270 | $ | 165,020 | $ | (898,992 | ) | $ | 1,584,064 | $ | 4,819 | $ | 1,588,883 | |||||||||||||
| Net earnings for the period | — | — | — | 16,181 | 16,181 | 771 | 16,952 | |||||||||||||||||||||
| Other comprehensive income for the period | — | — | 22,405 | — | 22,405 | — | 22,405 | |||||||||||||||||||||
| Share options exercised | 279 | (84 | ) | — | — | 195 | — | 195 | ||||||||||||||||||||
| Settlement of Executive Performance and Restricted Share Units | 4,095 | (4,095 | ) | — | — | — | — | — | ||||||||||||||||||||
| Distributions to non-controlling interest | — | — | — | — | — | (750 | ) | (750 | ) | |||||||||||||||||||
| Share repurchases | (23,657 | ) | — | — | 7,632 | (16,025 | ) | — | (16,025 | ) | ||||||||||||||||||
| Liability reversal for automated share purchase plan | 10,000 | — | — | — | 10,000 | — | 10,000 | |||||||||||||||||||||
| Liability for automated share purchase plan | (21,000 | ) | — | — | — | (21,000 | ) | — | (21,000 | ) | ||||||||||||||||||
| Redemption of non-management directors share units | 451 | (451 | ) | — | — | — | — | — | ||||||||||||||||||||
| Share-based compensation expense | — | 4,917 | — | — | 4,917 | — | 4,917 | |||||||||||||||||||||
| Balance at June 30, 2026 | $ | 2,208,934 | $ | 79,557 | $ | 187,425 | $ | (875,179 | ) | $ | 1,600,737 | $ | 4,840 | $ | 1,605,577 | |||||||||||||
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| Attributable to shareholders of the Corporation | ||||||||||||||||||||||||||||
| (Stated in thousands of Canadian dollars) | Shareholders’ Capital | Contributed Surplus | Accumulated Other Comprehensive Income | Deficit | Total | Non- Controlling Interest | Total Equity | |||||||||||||||||||||
| Balance at January 1, 2025 | $ | 2,301,729 | $ | 77,557 | $ | 199,020 | $ | (900,834 | ) | $ | 1,677,472 | $ | 4,527 | $ | 1,681,999 | |||||||||||||
| Net earnings for the period | — | — | — | 50,778 | 50,778 | 656 | 51,434 | |||||||||||||||||||||
| Other comprehensive income for the period | — | — | (39,631 | ) | — | (39,631 | ) | — | (39,631 | ) | ||||||||||||||||||
| Settlement of Executive Performance and Restricted Share Units | 11,651 | (2,790 | ) | — | — | 8,861 | — | 8,861 | ||||||||||||||||||||
| Distributions to Non-Controlling Interest | — | — | — | — | — | (519 | ) | (519 | ) | |||||||||||||||||||
| Share repurchases | (45,921 | ) | — | — | — | (45,921 | ) | — | (45,921 | ) | ||||||||||||||||||
| Liability reversal for automated share purchase plan | 10,000 | — | — | — | 10,000 | — | 10,000 | |||||||||||||||||||||
| Liability for automated share purchase plan | (5,000 | ) | — | — | — | (5,000 | ) | — | (5,000 | ) | ||||||||||||||||||
| Redemption of non-management directors share units | 361 | (361 | ) | — | — | — | — | — | ||||||||||||||||||||
| Share-based compensation expense | — | 3,977 | — | — | 3,977 | — | 3,977 | |||||||||||||||||||||
| Balance at June 30, 2025 | $ | 2,272,820 | $ | 78,383 | $ | 159,389 | $ | (850,056 | ) | $ | 1,660,536 | $ | 4,664 | $ | 1,665,200 | |||||||||||||
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2026 SECOND QUARTER RESULTS CONFERENCE CALL AND WEBCAST
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Precision Drilling Corporation has scheduled a conference call and webcast to begin promptly at 11:00 a.m. MT (1:00 p.m. ET) on Wednesday, July 29, 2026.
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To participate in the conference call please register at the URL link below. Once registered, you will receive a dial-in number and a unique PIN, which will allow you to ask questions.
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The call will also be webcast and can be accessed through the link below. A replay of the webcast call will be available on Precision’s website for 12 months.
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About Precision
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Precision is a leading provider of safe and environmentally responsible High Performance, High Value services to the energy industry, offering customers access to an extensive fleet of Super Series drilling rigs. Precision has commercialized an industry-leading digital technology portfolio known as Alpha™ that utilizes advanced automation software and analytics to generate efficient, predictable, and repeatable results for energy customers. Our drilling services are enhanced by our EverGreen™ suite of environmental solutions, which bolsters our commitment to reducing the environmental impact of our operations. Additionally, Precision offers well service rigs, camps and rental equipment all backed by a comprehensive mix of technical support services and skilled, experienced personnel.
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Precision is headquartered in Calgary, Alberta, Canada and is listed on the Toronto Stock Exchange under the trading symbol “PD” and on the New York Stock Exchange and NYSE Texas, Inc., under the trading symbol “PDS”.
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Additional Information
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For further information, please contact:
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Lavonne Zdunich, CPA, CA
Vice President, Investor Relations
403.716.4500
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800, 525 – 8th Avenue S.W.
Calgary, Alberta, Canada T2P 1G1
Website: www.precisiondrilling.com
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English (US)