Precision Drilling Corporation (Precision) provides 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 offers an industry-leading digital technology portfolio known as Alpha technologies that utilizes advanced automation software and analytics to generate efficient, predictable, and repeatable results for energy customers. Additionally, Precision's oil field s...
Precision Drilling Corporation (Precision) provides 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 offers an industry-leading digital technology portfolio known as Alpha technologies that utilizes advanced automation software and analytics to generate efficient, predictable, and repeatable results for energy customers. Additionally, Precision's oil field services include well service rigs, camps, and rental equipment, all backed by a comprehensive mix of technical support services and skilled, experienced personnel. The company’s drilling services are enhanced by its EverGreen suite of environmental solutions, which bolsters its commitment to reducing the environmental impact on its operations.
International Drilling Contracts
Precision had eight active rigs in the Middle East, three in the Kingdom of Saudi Arabia, and five in Kuwait in 2024. The majority of these rigs are under five-year term contracts that stretch into 2027 and 2028.
Technology Initiatives
Alpha: As of December 31, 2024, Precision had 76 Alpha rigs throughout North America, representing approximately 80% of its Super Triple fleet. The company’s Alpha rigs are fully digitally-enabled, pad-walking AC Super Triples equipped with AlphaAutomation and a platform to deploy AlphaApps and AlphaAnalytics. Precision’s Alpha rigs have been fully commercialized in numerous basins since November 2019.
Robotics: In 2024, Precision deployed its first Super Triple with rig floor robotics, which incorporated a modular, fully automated pipe handling system. By collaborating with AlphaAutomation, the company’s rig floor robotics offer a comprehensive and seamless automation solution, optimizing operational efficiency and increasing safety standards.
In 2024, the company extended its EverGreen product offerings to its Super Single rigs with LED mast lighting and EverGreenHydrogen systems. It had multiple commercial agreements in place for its EverGreen products, as approximately 65% of the company’s AC Super Triple rigs were equipped with at least one EverGreen product, including 16 Battery Energy Storage Systems (BESS), and 30 fuel monitoring systems, as of December 31, 2024. Precision also has several rigs equipped with dual-fuel engines, natural gas engines, and/or grid tie-in technology.
Business Segments
The company has two business segments – Contract Drilling Services and Completion and Production Services.
Contract Drilling Services
This segment operates the company’s drilling rigs in Canada, the U.S., and internationally, and provides onshore well drilling services to exploration and production companies in the oil, natural gas, and geothermal industries.
As of December 31, 2024, the segment consisted of 214 land drilling rigs, including 97 in Canada, 104 in the U.S., 6 in Kuwait, 4 in the Kingdom of Saudi Arabia, 2 in the Kurdistan region of Iraq, and 1 in the country of Georgia; engineering, manufacturing, and repair services, primarily for Precision’s operations; centralized procurement, inventory, and distribution of consumable supplies for its global operations; diverse offerings from its Alpha technologies, including 76 Alpha rigs with commercial AlphaAutomation, 9 commercial AlphaApps, and deployed commercial AlphaAnalytics offering; and a wide array of offerings from its EverGreen suite of environmental solutions, including 16 BESS deployed in the field, and 30 fuel monitoring systems, as well as several rigs equipped with dual-fuel engines, natural gas engines, and/or power grid tie-in technology.
Canada
The company offers land drilling services, procurement and distribution of oilfield supplies, and manufacture and refurbishment of drilling and service rig equipment.
The U.S.
The company offers land drilling services, turnkey drilling services, procurement and distribution of oilfield supplies, and manufacture and refurbishment of drilling and service rig equipment.
International
The company offers land drilling services.
Completion and Production Services
This segment provides completion, workover, and ancillary services to oil and natural gas exploration and production companies in Canada and the U.S.
As of December 31, 2024, the segment consisted of 170 registered well completion and workover service rigs, including 160 in Canada, and 10 in the U.S.; more than 2,100 oilfield rental items, including surface storage, power generation, and solids control equipment, primarily in Canada; 110 wellsite accommodation units in Canada; and 483 drill camp beds, 472 base camp beds in Canada.
Canada
The company offers well completion and workover service rigs, camp and catering services, oilfield surface equipment rental, and wellsite accommodations.
The U.S.
The company offers well completion and workover service rigs.
Contract Drilling Services
At the end of 2024, Precision had a large fleet of land drilling rigs deployed in Canada, the U.S., and internationally:
Canada – The company operates the largest fleet of land drilling rigs in the country. At year-end, it was marketing 97 drilling rigs located throughout western Canada, accounting for approximately 26% of the industry’s estimated fleet of 374 land drilling rigs.
The United States – At year-end, it was marketing 104 land drilling rigs, including 66 AC Super Triple rigs. The company’s fleet is the fourth largest in the U.S. and accounts for approximately 15% of the country’s Super-Spec land drilling rigs.
Internationally – At year-end, it was marketing six land drilling rigs in Kuwait, four in the Kingdom of Saudi Arabia, two in the Kurdistan region of Iraq, and one in the country of Georgia.
Drilling Contracts
The company’s contract terms are generally based on the complexity and risk of operations, on-site drilling conditions, the type of equipment used, and anticipated duration of work to be performed.
In 2024, Precision had an average of 49 drilling rigs (18 in the U.S., 23 in Canada, and eight internationally) working under term contracts. Utilization days from term contracts were approximately 45% of its total contract drilling utilization days for the year.
The company markets its drilling rigs mainly on a regional basis through sales and marketing personnel. It secures contracts to drill wells either through competitive bidding or as a result of business development efforts and negotiations with customers.
The company’s contracts have been carried out almost exclusively on a daywork basis. Under a daywork contract, it provides a drilling rig with required personnel, and the customer supervises the drilling of the well; charges the customer a fixed rate per day regardless of the number of days needed to drill the well; charges the customer a fixed rate per day or a lump sum amount to mobilize the rig to the well site location, rig-up, rig-down, and demobilize the rig to a secure site, and generally, it does not bear any of the costs arising from downhole risks, underground pollution, or loss of reserves.
Seasonality
The company’s business activity depends, in part, on the severity and duration of the winter drilling season.
Drilling Fleet
Precision’s Super Series drilling rig fleet meets the industrial-style drilling requirements of its customers in North America, as well as deep, high-pressure/high-temperature drilling projects internationally. As of December 31, 2024, it had 214 rigs in its fleet, including 48 Super Singles and 102 AC Super Triples.
Alpha Technologies
Alpha technologies offer fully digital automation solutions for drilling operations. The integration of applications with advanced analytics enhances the drilling process, enabling operators to optimize performance and achieve efficiencies across diverse basins in North America. Today, Precision has 76 rigs available with this digital technology.
At the heart of Alpha technologies lies the commitment to harnessing automation to streamline drilling operations. The company’s fully digital automation systems utilize technologies consisting of AlphaAutomation, AlphaApps, and AlphaAnalytics, transforming traditional drilling methodologies into highly efficient, data-driven processes. These systems are designed to automate critical functions, reduce human error, and minimize downtime, leading to faster, safer, and more cost-effective drilling operations.
The incorporation of data analytics within the company’s automation framework provides drillers with critical insights derived from vast data sets generated in real-time. This data includes drilling parameters, equipment performance metrics, geological information, and environmental conditions. By analyzing this data, Alpha technologies equip operators with the tools to make informed decisions, predict potential issues before they arise, and adapt drilling strategies to optimize well times across various geographical basins.
Alpha Technologies - AlphaArms
In 2024, Precision deployed its first Super Triple rig featuring its AlphaArms technology, which uses robotics to automate more than 95% of rig floor activities. Engineered for seamless integration into existing workflows, AlphaArms enable drillers to transition to a more automated approach with minimal operational disruption. This technology is engineered to complement and enhance human operations instead of replacing human expertise.
EverGreen Suite of Environmental Solutions
In 2021, the company launched its EverGreen suite of environmental solutions, which encompasses the development and implementation of a diverse range of technologies specifically designed to quantify and reduce GHG emissions during rig operations. It aims to provide the cleanest, most efficient, and most cost-effective rig power sources for its customers through its EverGreenEnergy offerings, and its EverGreenMonitoring systems, which deliver the fuel and emissions data that allow its customers to monitor their gains in real time and track their emissions. In 2022, the company tested, field hardened, and implemented its BESS and fuel monitoring system, and in 2024, it extended its EverGreen product offerings to its Super Single rigs with LED mast lighting and EverGreenHydrogen systems. The company had multiple commercial agreements in place for its EverGreen products, including 16 BESS and 30 fuel monitoring systems deployed in the field as of December 31, 2024.
International
Grey Wolf International (Grey Wolf) is the company’s platform and market brand for its international oil and natural gas drilling market. Grey Wolf is currently active in Kuwait and the Kingdom of Saudi Arabia, and continues to explore opportunities in various additional international markets. International oilfield service operations involve relatively long sales cycles, with bidding periods, contract award periods, and rig mobilization periods measured in months. Grey Wolf has a regional office in Dubai, the United Arab Emirates.
Manufacturing
Based in Calgary, Alberta, Rostel Industries manufactures drilling rigs and equipment and refurbishes components for the company’s drilling and service rigs, as well as third-party equipment. Rostel Industries supports its vertical integration, and approximately 82% of its revenue in 2024 was related to Precision's business. Having the in-house ability to repair and provide new components for its drilling and service rigs improves the efficiency and reliability of its fleets.
Oilfield Supply
Columbia Oilfield Supply in Canada and Precision Drilling Oilfield Supply in the U.S. utilize general oilfield supply warehouses that procure, package, and distribute large volumes of consumable oilfield supplies for its rig sites. The company’s supply warehouses achieve economies of scale through bulk purchasing and standardized product selection, as well as coordinated distribution to Precision rig sites. Columbia Oilfield Supply and Precision Drilling Oilfield Supply play a key role in the company’s supply chain management. In 2024, 99% of Columbia Oilfield Supply and 100% of Precision Drilling Oilfield Supply activities supported Precision operations.
Technical Support Centres
The company operates two contract drilling technical centres, one in Nisku, Alberta, and one in Houston, Texas, as well as one completion and production technical centre in Red Deer, Alberta. These centres accommodate the company’s technical service and field training groups and consolidate field support and training for its operations. The Houston and Nisku facilities have fully-functioning training rigs with the latest drilling technologies. Additionally, the company’s Houston facility accommodates its rig manufacturing group.
The company’s Global Field Competency Program ensures that its field operations employees obtain competency levels for their current position and potential future positions. The program defines specific skills and learning pathways for certain jobs and identifies any skill gaps that an individual employee is required to remedy. The Global Field Competency Program supports the company’s broader corporate vision and strategy by ensuring its drilling personnel provide High Performance, High Value services to its customers.
Completion and Production Services
Precision Completion and Production Services
Precision offers a versatile fleet of service rigs for well completion, workover, abandonment, maintenance, and re-entry preparation services. The fleet is strategically positioned throughout western Canada and in the northern U.S.
Well Servicing Activities
Well servicing jobs are typically of short duration and generally conducted during daylight hours, so it is important for a service rig to be close to customer demand and be able to move quickly from one site to another. Well servicing requires a unique skill set, as crews must deal with the potential dangers and safety concerns of working with pressurized wellbores. Completion and workover services can take a few days to several weeks to complete depending on the depth of the well and the complexity of the completion or workover.
In 2024, the company completed the integration of its acquisition of CWC Energy Services Corp. (CWC), adding 62 marketable well service rigs to its service rig fleet. Following the successful integration of CWC, it achieved significant operating synergies.
At the end of 2024, Precision Well Servicing had an industry-leading market share in Canada. The company’s fleet of 160 service rigs is the largest in western Canada. Precision has an additional 244 well completion and workover service rigs in Canada that are not registered with the industry association.
In 2024, Precision Completion and Production Services operated 10 service rigs in the U.S.
Service Rig Activities
Well servicing operations have two distinct functions – workovers and abandonments, and completions. The demand for completion services is generally more volatile than for workover services.
Workovers and Abandonments – Workover services are generally provided according to customer preventive maintenance schedules or on a call-out basis when a well needs major repairs or modifications. Workover services generally involve remedial work, such as repairing or replacing equipment in the well, enhancing production, re-completing a new producing zone, recovering lost equipment, or abandoning the well.
Producing oil and natural gas wells generally require some type of workover or maintenance during their life cycle. The demand for production or workover services is based on the total number of existing active wells and their age and producing characteristics.
Completions – Customers often contract a specialized service rig to take over from a larger, more expensive drilling rig to prepare a newly drilled well for initial production. The service rig and crew work jointly with other services to open and stimulate the wellbore producing zones for initial production.
The demand for well completion services is generally related to the level of drilling activity in a region.
Precision Rentals
Precision Rentals provides more than 2,100 pieces of oilfield rental equipment for rental to customers from three operating centres and 12 stocking points throughout western Canada, supported by a technical service centre in central Alberta.
Precision Rentals has four distinct product categories: surface equipment (including environmental invert drilling mud storage, hydraulic fracturing fluid storage, production tanks, and other fluid handling equipment); wellsite accommodations (fully equipped units that provide on-site office and lodging for field personnel); power generation equipment; and solids control equipment.
Precision Camp Services
Precision Camp Services provides food and accommodation to personnel working at remote locations in western Canada. At the end of 2024, Precision Camp Services had 21 drill camps and base camp dormitories to accommodate 472 people in western Canada. Each drill camp includes 6 building units that typically accommodate 20 to 25 rig crew members and other personnel.
Precision Camp Services has also configured several camps and dormitories to provide housing and meals for base camps with up to 500 personnel on separate major projects in western Canada. As the oil and natural gas industry searches for new reserves in more remote locations, crews need to stay near the worksite, often in camps, throughout the duration of a drilling program. Precision Camp Services serves Precision and other companies in the oil and natural gas sector and, from time to time, other industries operating in remote locations.
Trademarks
The company owns registered trademarks, service marks, and trade names that it uses in its business, including, but not limited to, Precision Drilling Corporation, Precision Drilling, PD logo and design, Grey Wolf, Super Series, Precision Super Single, Super Triple, Alpha, AlphaAutomation, AlphaApps, AlphaAnalytics, and EverGreen.
History
Precision Drilling Corporation was founded in 1951. The company was under the Business Corporations Act (Alberta) in 1985.
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