Precision Drilling Corporation (PDS) Q2 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good day, and thank you for standing by. Welcome to the Precision Drilling Corporation 2025 Second Quarter Results Conference Call-In Webcast. I would now like to hand the conference over to LaVon Zudunik, Vice President of Investor Relations. Please go ahead. Thank you, Operator. Welcome, everyone, to Precision Drilling Second Quarter Conference Call-In Webcast. Today, I'm joined by Kevin Neveu, Precision's President and CEO, and Carrie Ford, our CFO. Yesterday, we reported our second quarter results. To begin our call today, Kerry will review these results, and then Kevin will provide an operational update and outlook commentary. Once we've 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 CDAR Plus and EDGAR. As a reminder, we express our financial results in Canadian dollars unless otherwise stated. With that, I'll pass it over to you, Kerry. Thank you, Lavonne. Precision's Q2 financial results exceeded our expectations for adjusted EBITDA earnings and cash flow. Adjusted EBITDA was $108 million, was driven by strong drilling activity in Canada, improved activity in the U.S., and steady cash flow generation from our drilling operations in the Middle East, as well as our completion and production services business. Our Q2 adjusted EBITDA included a share-based compensation charge of $4 million and additional revenue of $7 million related to customer-funded upgrade projects in Canada. Without these items, adjust...