01:15 PM EDT, 06/05/2024 (MT Newswires) -- RBC hosted Precision Drilling's ( PDS ) Gene Stahl (President, North America Drilling), and Lavonne Zdunich (VP Investor Relations) for a break-out session at the RBC Global Energy, Power and Infrastructure Conference.

"Overall, PD remains focused on reducing its debt levels by $150-200 million this year, diversifying customers for its U.S. rig fleet, and capitalizing on relative strength in the Canadian land drilling market where it has approximately 35% market share."

Precision Drilling ( PDS ) is running 35 rigs in the US (according to Enverus) and sees activity remaining stable through H2 2024. The company's targeted customer mix has shifted from private operators to larger public operators, which should provide a more stable activity for the company in the foreseeable future. Base rig pricing appears to be holding in the low-mid $30k/day range.

Q1 2024 activity in Canada was strong, and demand for the company's Super Triple rigs remains solid. The activity outlook for H2 2024 is expected to be strong.

The company's $195 million capital budget includes $153 million for maintenance/infrastructure/intangibles plus $42 million for expansion and upgrades. PD expects to reduce total debt by $150-200 million this year and allocate 25-30% of FCF to shareholder returns, and 50%, as debt targets are met.

Precision Drilling ( PDS ) is rated Outperform, with a $122 target.

Price: 91.03, Change: -0.92, Percent Change: -1.00