Precision Drilling Corporation (NYSE:PDS) Q3 2023 Earnings Conference Call October 26, 2023 2:00 PM ET

Company Participants

Lavonne Zdunich - Director of Investor Relations

Carey Ford - Senior Vice President & Chief Financial Officer

Kevin Neveu - President & Chief Executive Officer

Conference Call Participants

Aaron MacNeil - TD Cowen

Luke Lemoine - Piper Stanley

Kurt Hallead - Benchmark

Keith Mackey - RBC Capital Markets

Cole Pereira - Stifel

Waqar Syed - ATB Capital Markets

Sean Mitchell - Daniel Energy Partners

Operator

Good day, and thank you for standing by. Welcome to the Precision Drilling Corporation 2023 Third Quarter Conference Call.

I would like to hand the conference over to Lavonne Zdunich, Director of Investor Relations. Please go ahead.

Lavonne Zdunich

Welcome to Precision’s third quarter earnings conference call and webcast. Participating on today’s call with me will be Kevin Neveu, President and CEO; and Carey Ford, our CFO.

Earlier this morning, Precision reported strong third quarter results, which Carey will review with you, followed by an operational update and outlook commentary from Kevin. Once we have finished our prepared comments, we will open the call to questions.

Some of our comments today will refer to non-IFRS financial measures and will include forward-looking statements, which are subject to a number of risks and uncertainties. Please see our news release and other regulatory filings for more information on financial measures, forward-looking statements and risk factors. As a reminder, we express our financial results in Canadian dollars unless otherwise indicated.

Before I pass the call over to Kevin and Carey, I would like to remind listeners of our CWC Energy Services acquisition, which we announced in early September. This acquisition will position Precision as the premier well service provider in Canada and bolster our drilling operations in both the US and Canada. With the acquisition, Precision adds to its marketed fleet 62 service rigs and seven drilling rigs in Canada, plus 11 drilling rigs in the US, which includes seven AC Triples. We expect this acquisition to close within the next couple of weeks and generate accretive cash flow on a per share basis in 2024.

With that, I'll pass it over to Carey.

Carey Ford

Thanks, Lavonne. Precision's Q3 financial results reflect the resiliency of our high-performance, high-value business model and organizational focus on cash flow and return on capital, meeting our expectations for adjusted EBITDA and further strengthen our balance sheet.