01:12 PM EST, 01/07/2025 (MT Newswires) -- Precision Drilling ( PDS ) said Tuesday it reduced its debt by $176 million in 2024, achieving the midpoint of its debt reduction target.

The drilling rig contractor said it is committed to repay $600 million by 2026 as part of a long-term debt reduction target and achieve a sustained net debt to adjusted earnings before interest, taxes, depreciation, and amortization ratio of below 1.0. Precision Drilling ( PDS ) also said that over the past three years it has cut its debt by $435 million and lowered its net debt to adjusted EBITDA ratio, which is expected to be around 1.4 times as of Dec. 31, 2024.

Precision Drilling ( PDS ) said it plans to further cut its debt while boosting its share buyback allocation, citing a "strong free cash flow outlook" for 2025.

Precision said it plans to release its Q4 results after the market closes on Feb. 12.

Shares of Precision Drilling ( PDS ) were up 5% in recent Tuesday trading.

Price: 66.49, Change: +3.16, Percent Change: +4.99