08:42 AM EST, 01/07/2025 (MT Newswires) -- Precision Drilling ( PDS ) moved higher in premarket New York trading after the company on Tuesday said it plans to continuing cutting debt this year while boosting share buybacks to return capital to shareholders.

The oilfield-services company said it cut its debt by $176 million in 2024 as it sticks with its plan to pay back $600 million between 2022 and 2026, with a total $435 million repaid over the past three years. It said it also expects to increase share repurchases this year after spending $75 million on buybacks in 2024 and will announce firm targets next month.

"Precision generated robust free cash flow in 2024 driven by increased activity and margin progression in Canada, integration of our CWC Energy Services acquisition, and international growth. With a strong free cash flow outlook, we plan to improve our capital returns to shareholders in 2025 by continuing to reduce our debt and increasing the percentage of free cash flow returned directly to shareholders," Carey Ford, the company's chief financial officer, said.

The company said it ended 2024 with $74 million of cash on hand and available liquidity of $575 million. It currently has 78 rigs active and expects demand for its services during the winter drilling season to peak at "between the low to mid-80s" rigs.

Precision shares were last seen up US$0.66 to $63.99 in premarket trading. They closed down $1.28 to $90.81 Monday on the Toronto Stock Exchange.