Precision Drilling Corporation (PDS) Q4 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Ladies and gentlemen, thank you for standing by, and welcome to Precision Drilling's fourth quarter and year-end conference call. I will now pass the call over to LaVon Zidonic, Vice President, Investor Relations. Please go ahead. Good day, and thank you all for joining Precision Drilling's fourth quarter and year-end conference call and webcast. Today, I'm joined by Kerry Ford, our President and CEO, and Dustin Honing, the CFO. 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 CEDAR and EDGAR. Before I pass the call over to Kerry and Dustin, I would like to recap how we delivered on our 2025 strategic priorities. First, we enhanced our shareholder returns by reducing debt $101 million, ending the year with a net debt to adjusted EBITDA ratio of 1.2 times. And we also repurchased $76 million of our shares, meeting the midpoint of our guidance of allocating between 35% and 45% of our free cash flow to share buybacks. During the year, we maximized our free cash flow by delivering resilient drilling margins in both Canada and the U.S., even though average industry activity declined. And finally, we grew revenue organically by increasing our Canadian market share and increasing our U.S. rig utilization from a low of 27 in February to a high of 40 in the fall and exit the year with 38 active rigs. Today, Precision is the second most active driller in North America. With that, I will turn it over to Dustin Honing. Great. Thank you, Lamon. Good morning. Good afternoon. Precision's 2025 fi...