08:48 AM EDT, 07/08/2024 (MT Newswires) -- Precision Drilling ( PDS ) on Monday said it extended and increased its senior credit facility as it outlined its 2024 debt reduction targets.

The company said the facility is being extended to June 28, 2027, while the size of the facility is being cut to US$375 million from US$447 million while an accordion feature is being added to raise available credit to US$750 million.

The oilfield-services company also said it cut its debt by $103 million in the first half, putting it in position to meet its full-year debt reduction guidance of between $150-$200 million.

In addition to meeting the debt reduction guidance, the company remains committed to returning 25-35% of free cash flow before debt repayments to shareholders through buybacks, Chief Financial Officer Carey Ford said.

"Precision's longer-term balance sheet goal is to reduce debt by $600 million between 2022 and 2026 and achieve a net debt to adjusted Ebitda ratio of below 1 times by the end of 2025," Ford said in a release.

Precision also said it spent $34 million repurchasing 369,309 shares over the first half of the year under its normal-course issuer bid.

Precision shares closed down $2.66 to $93.99 Friday on the Toronto Stock Exchange.