Precision Drilling exceeds C$75 million 2022 debt reduction goal

By Marisa Wong

Los Angeles, Jan. 5 – Precision Drilling Corp. announced it reduced total debt by C$106 million in 2022, exceeding its C$75 million debt reduction goal, according to a press release.

As of Dec. 31, the company’s outstanding debt included US$44 million under a senior credit facility due June 18, 2025, US$348 million of 7 1/8% senior notes due Jan. 15, 2026 and US$400 million of 6 7/8% senior notes due June 15, 2029.

In addition, the company had about US$22 million of real estate credit facilities and ended 2022 with a cash balance of about C$22 million and total liquidity of roughly C$600 million.

The company said it is well on track to achieve its long-term goal of repaying over $400 million of debt and reaching a sustained net debt to adjusted EBITDA leverage ratio of below 1.5 times by the end of 2025.

Given its strong free cash flow outlook, the company now expects leverage between 1.25 and 1.75 times by the end of 2023 and will look to exceed its long-term debt reduction targets on both an absolute level and as a multiple of adjusted EBITDA, according to the release.

Precision is a Calgary, Alta.-based provider of services to the oil and gas industry.

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