Precision Drilling eyes C$100 million-C$150 million of debt repayment

By Angela McDaniels

Tacoma, Wash., Jan. 29 – Precision Drilling Corp. has set a debt repayment target of C$100 million to C$150 million for 2019, according to a company news release.

The company expects to fund the debt repayment from free cash flow.

Precision Drilling has increased its longer-term debt reduction target range by C$100 million with a new target range of C$400 million to C$600 million by the end of 2021, inclusive of debt repayments in 2018.

The company described deleveraging as a “top priority.”

The company repaid C$174 million principal amount of debt in 2018, C$49 higher than the top end of its target for the year.

Debt repayments in 2018 were funded from free cash flow and provide annualized interest savings of about C$10 million.

The company expects its year-end cash balance to be C$97 million, an increase of C$32 million from the end of 2017.

The company said its cash balance and undrawn credit facilities will give it roughly C$810 million of liquidity going into 2019.

As of the end of 2018, the company had $166 million of 6½% notes due 2021, $350 million of 7¾% notes due 2023, $351 million of 5¼% notes due 2024 and $400 million of 7 1/8% notes due 2026 outstanding.

Precision providers services to the oil and gas industry and is based in Calgary, Alta.

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