Precision Drilling

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

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

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. "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. 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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