Precision Drilling Corporation Acquires High Arctic’s Well Servicing & Rentals Divisions
18 Luglio 2022 - 12:00PM
Precision Drilling Corporation (“Precision” or the “Company”)
(TSX:PD; NYSE:PDS) is pleased to announce that it has entered into
an asset purchase agreement to acquire the well servicing business
and associated rentals assets of High Arctic Energy Services Inc.
(“High Arctic”) for an aggregate purchase price of $38.2 million,
payable in cash (the “Transaction”).
Precision adds to its Canadian well servicing
operation a fleet of 80 service rigs (51 marketed and 29 inactive).
The Transaction provides Precision with rental assets, ancillary
support equipment, inventories and spares, and six additional
operating facilities in key basins, four of which are owned.
Additional Transaction highlights include:
- Acquisition of high-quality assets
with skilled and experienced field personnel and a strong customer
following;
- Combined business will have marketed
fleet of 134 service rigs and represents approximately 20% of
Canadian industry well service activity;
- Leverages Precision Well Services’
leading operational scale, generating significant synergies
including expected annual operating cost savings of $5 million
annually, realizable within one year; and
- Accretive acquisition that supports
Precision’s long-term capital allocation and de-leveraging plan
through increased cash flow generation.
Precision’s President and CEO, Kevin
Neveu, stated, “This acquisition significantly expands our
well servicing division with high quality rigs and field personnel,
strategic regional positioning, and alignment with key customers.
High Arctic’s people are well known for their focus on safety and
field execution and will complement Precision’s High Performance,
High Value operating strategy. The Transaction accomplishes needed
consolidation in the well servicing industry, providing greater
opportunities for our combined team, while bolstering service
capabilities for our customers. With the expected synergies and
further leveraging our scale, we believe this Transaction provides
accretive earnings and significant cash generation potential
supporting our debt-reduction strategy and our short-term and
long-term debt reduction targets of $75 million in 2022 and $400
million between 2022 and 2025.
I am excited to welcome High Arctic employees to
the Precision family.”
PURCHASE SUMMARY
Precision is acquiring the Well Servicing and
Rentals divisions (excluding working capital) for $38.2 million in
cash. An initial payment of $10.2 million will be made at closing,
with the remaining balance due in January 2023. The Transaction is
subject to customary commercial closing conditions and is expected
to close before the end of July 2022. CIBC Capital Markets is
acting as exclusive financial advisor and Torys LLP is acting as
legal advisor to Precision.
FORWARD-LOOKING INFORMATION
This news release contains statements and
information that, to the extent that they are not historical fact,
may constitute "forward-looking information" within the meaning of
applicable securities legislation. Forward-looking information is
typically, but not always, identified by the use of words such as
"proposed", "expected", "will" and similar words, including
negatives thereof, or other similar expressions concerning matters
that are not historical facts. Forward-looking information in this
news release includes, but is not limited to, statements regarding:
the expected benefits of the Transaction, expected market share
growth and expanded offering to Precision’s customers and other
statements relating to the expected operation and synergies and/or
benefit from the assets and/or real estate and business purchased
in the Transaction going forward. Such forward-looking information
is based on various assumptions and factors that may prove to be
incorrect, including, but not limited to, factors and assumptions
with respect to our ability to successfully implement our strategic
plans and initiatives and whether such strategic plans and
initiatives will yield the expected benefits. Undue reliance should
not be placed on the forward-looking information because Precision
can give no assurance that it will prove to be correct or that any
of the events anticipated by such forward-looking information will
transpire or occur, or if any of them do so, what benefits
Precision will derive there from. Actual results could differ
materially from those currently anticipated due to a number of
factors and risks including, but not limited to: conditions in the
oil and gas market; fluctuations in market conditions, including in
securities markets; economic factors; and the impact of general
economic conditions.
Readers are cautioned that the forgoing list of
risk factors is not exhaustive. Additional information on these and
other factors that could affect our business, operations or
financial results are included in reports on file with applicable
securities regulatory authorities, including but not limited to
Precision’s Annual Information Form for the year ended December 31,
2021, which may be accessed on Precision’s SEDAR profile at
www.sedar.com or under Precision’s EDGAR profile at www.sec.gov.
The forward-looking information and statements contained in this
news release are made as of the date hereof and Precision
undertakes no obligation to update publicly or revise any
forward-looking statements or information, whether as a result of
new information, future events or otherwise, except as required by
law.
About PrecisionPrecision is a leading provider
of safe and environmentally responsible High Performance, High
Value services to the energy industry, offering customers access to
an extensive fleet of Super Series drilling rigs. Precision has
commercialized an industry-leading digital technology portfolio
known as “Alpha™” that utilizes advanced automation software and
analytics to generate efficient, predictable, and repeatable
results for energy customers. Additionally, Precision offers well
service rigs, camps and rental equipment all backed by a
comprehensive mix of technical support services and skilled,
experienced personnel.
Precision is headquartered in Calgary, Alberta,
Canada and is listed on the Toronto Stock Exchange under the
trading symbol “PD” and on the New York Stock Exchange under the
trading symbol “PDS.”
For further information, please contact:
Carey Ford, Senior Vice President & Chief
Financial Officer713.435.6100
800, 525 - 8th Avenue S.W.Calgary, Alberta,
Canada T2P 1G1Website: www.precisiondrilling.com
Grafico Azioni Precision Drilling (NYSE:PDS)
Storico
Da Giu 2024 a Lug 2024
Grafico Azioni Precision Drilling (NYSE:PDS)
Storico
Da Lug 2023 a Lug 2024