Precision Drilling Corporation
TypePublic
TSX: PD NYSE: PDS
IndustryOil Well Services
GenreOilfield services company
Founded1951
HeadquartersCalgary, Alberta, Canada
Key people
CEO: Kevin A. Neveu
ProductsOil field services and rentals
Revenue$1.54 billion CAD (2019)[1]
Number of employees
4,469 (2019)[1]
Websitewww.precisiondrilling.com

Precision Drilling Corporation is the largest drilling rig contractor in Canada, also providing oil field rental and supplies.

History

Precision Drilling Ltd. was founded in 1951.[2]

In 1987, Precision Drilling was acquired by Cypress Drilling, led by president Hank Swartout, in a reverse takeover which left the company with a fleet of 19 rigs.[3] Swartout led the company through extensive growth until his retirement in 2007.[4]

In 2005, Precision sold its energy services and international contract-drilling divisions to Weatherford International for $2.28 billion[5] and reorganized as an income trust.[3][6] Precision converted from an income trust back to a corporation in 2010.[7]

In 2008, Precision acquired its US rival Grey Wolf Inc. for $2 billion,[8] a merger which expanded its rig count in the US, which it had largely left in 2005, over tenfold.[9] The acquisition led to financial difficulties which led to a $330M CAD investment by the Alberta Investment Management Corporation (AIMCo) in 2009,[10] characterized by Maclean's as a bailout.[11] AIMCo divested its stake in 2013.[12]

In 2018, Precision attempted to purchase Trinidad Drilling with over $1B CAD of shares as a white knight, opposing the cash bid of competitor Ensign Energy Services, however a drop in Precision's share price and thus bid value resulted in Ensign's bid prevailing.[13]

In September 2019, amid a difficult energy sector in Alberta, Precision Drilling Corporation's share price fell below the required minimum for the S&P/TSX Composite Index and was removed from the index.[14]

In July 2022, Precision Drilling acquired High Arctic Energy Services Inc.'s welling services and rental divisions for $29.3 million. [15]

Global fleet

In 2019, Precision had 109 land drilling rigs in Canada (21% of the industry total), 104 in the US (5% of total), and 13 among Kuwait, Saudi Arabia, Iraqi Kurdistan, and Georgia.[1]

See also

References

  1. 1 2 3 "2019 Annual Information Form" (PDF). Precision Drilling Corporation. March 9, 2020. Retrieved March 10, 2020.
  2. ↑ "Our History". Precision Drilling. Archived from the original on December 3, 2018. Retrieved March 9, 2020.
  3. 1 2 Stastny, R.P. (November 6, 2018). "Precision Founder Hank Swartout One Of The Defining Personalities In Canadian Drilling". Daily Oil Bulletin. Retrieved March 9, 2020.
  4. ↑ "Precision Drilling's Swartout to retire". Globe and Mail. Calgary. May 8, 2007. Retrieved March 9, 2020.
  5. ↑ "Weatherford to Buy Two Oil Drilling Units". New York Times. June 7, 2005. p. C8. Retrieved March 9, 2020.
  6. ↑ Precision Drilling Corporation (September 7, 2005). "Precision Drilling to Reorganize into an Income Trust". Rigzone. Retrieved March 9, 2020.
  7. ↑ "Precision Drilling to convert to corporation". Globe and Mail. Calgary. February 12, 2010. Retrieved March 9, 2020.
  8. ↑ "Canada's Largest Drilling Company to Buy a U.S. Rival". New York Times. Reuters. August 26, 2008. p. C7. Retrieved March 9, 2020.
  9. ↑ "4th time lucky as Precision Drilling acquires Grey Wolf". CBC News. Canadian Press. August 25, 2008. Retrieved March 9, 2020.
  10. ↑ Cattaneo, Claudia (April 20, 2009). "Alberta boost for Precision is investment, not aid: AIMCo". Edmonton Journal. Financial Post. Retrieved March 9, 2020.
  11. ↑ "Alberta government takes major stake in Precision Drilling". Maclean's. April 20, 2009. Retrieved March 9, 2020.
  12. ↑ Ratner, Jonathan (December 9, 2013). "Precision Drilling upgraded after AIMCo sell-off". Financial Post. Retrieved March 9, 2020.
  13. ↑ Morgan, Geoffrey (November 27, 2018). "Precision demands $20M in break fee from Trinidad Drilling as rival wins hostile bid". Financial Post. Retrieved March 9, 2020.
  14. ↑ Kury de Castillo, Carolyn (September 25, 2019). "Precision Drilling among 7 Calgary-based companies dropped from S&P/TSX composite index". Global News. Retrieved March 10, 2020.
  15. ↑ "Precision Drilling Rises on Acquisition of High Arctic's Well-Servicing, Rentals Divisions". MarketWatch. Retrieved July 20, 2022.
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