Precision Drilling Q2: Canada Activity Jumps 22%, U.S. Rig Count at 43

Precision Drilling (TSX:PD, NYSE:PDS) reported second-quarter results that showed a sharp rebound in Canadian drilling activity and a steady climb in U.S. rig utilization. Revenue rose 11% year over year, driven by increased North American work, higher technology adoption, and better pricing. The company reduced debt by $75 million and repurchased $16 million of its own shares during the first half of the year.

Chief Executive Carey Ford said the quarter reflected “solid operational execution” and that Precision is gaining traction from its high-performance Super Triple and Super Single rigs, especially in the condensate and heavy oil basins of Canada. “We expect activity during the second half of the year to remain above prior year levels,” Ford said in a statement.

Canadian drilling activity jumped 22% from a year earlier. Ford credited improving producer economics and expanded market access for the increase. The company’s Completion and Production Services business also posted strong numbers, with operating hours up 25% as oil prices and producer demand for well servicing rose.

In the U.S., Precision’s active rig count stood at 43 at the end of the quarter, up from earlier levels. Ford said the U.S. business is reaching an inflection point. “We are encouraged by improving customer sentiment,” he said. While second-quarter margins in the U.S. were below Precision’s long-term targets, Ford said fourth-quarter margins should approach US$10,000 per utilization day.

Precision continued to invest in its Alpha digital platform and EverGreen technology suite, which the company says improve drilling performance and reduce downtime. Ford described technology as a key competitive differentiator, helping to lock in deeper customer relationships and sustainable revenue growth.

Internationally, Precision secured a five-year contract extension for an existing rig in Kuwait, reinforcing its presence in the Middle East despite geopolitical uncertainty in the region. The new contract will lift the international rig count from seven to eight by mid-2027.

Ford said the company remains optimistic about the rest of 2026, citing constructive commodity prices, strong demand for high-performance rigs and well service equipment, and improving contract coverage. “While geopolitical developments and commodity price volatility remain important considerations, we believe Precision is well positioned to generate long-term value through operational excellence, technology leadership, disciplined capital allocation, and a continued focus on shareholder returns,” he said.

Precision’s balance sheet improved during the quarter. The company also noted that it is on track to deliver upgraded rigs in the second half of the year, which should support stronger financial performance into 2027.

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