PD:CC - Precision Drilling Corporation (PDS) Q1 2024 Earnings Call Transcript

2024-04-25 17:24:09 ET

Precision Drilling Corporation (PDS)

Q1 2024 Earnings Conference Call

April 25, 2024 14:00 ET

Company Participants

Lavonne Zdunich - Vice President, Investor Relations

Kevin Neveu - President and Chief Executive Officer

Carey Ford - Chief Financial Officer

Conference Call Participants

Aaron MacNeil - TD Cowen

Cole Pereira - Stifel

Luke Lemoine - Piper Sandler

Keith Mackey - RBC Capital Markets

Waqar Syed - ATB Capital Markets

Kurt Hallead - Benchmark

Tim Monachello - ATB Capital Markets

John Gibson - BMO Capital Markets

Presentation

Operator

Good day and thank you for standing by. Welcome to the Precision Drilling Corporation 2024 First Quarter Conference Call. I would now like to hand the conference over to Lavonne Zdunich, Vice President, Investor Relations. Please go ahead.

Lavonne Zdunich

Thank you, operator, and welcome, everyone, to our first quarter conference call. Today, I am joined by Kevin Neveu, Precision’s President and CEO; and Carey Ford, our CFO. Earlier today, we reported our first quarter results. To begin our call today, Carey will review these results and then Kevin will provide an operational update and outlook commentary. Once we have finished our prepared comments, we will open the call for questions.

Please note that some comments today will refer to non-IFRS financial measures and include forward-looking statements, which are subject to a number of risks and uncertainties. For more information on financial measures, forward-looking statements and risk factors please refer to our news release and other regulatory filings available on SEDAR and EDGAR. As a reminder, we express our financial results in Canadian dollars, unless otherwise stated.

With that, I will turn it over to Carey.

Carey Ford

Thanks, Lavonne. Precision’s Q1 financial results exceeded our expectations for adjusted EBITDA, earnings and cash flow. Adjusted EBITDA of $143 million was driven by strong drilling activity, improved pricing and strict cost control. Our Q1 adjusted EBITDA included a share-based compensation charge of $23 million. Without this charge, adjusted EBITDA would have been $166 million, which compares to $191 million in Q1 2023, a decrease of 13%....

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