Cover Page
Cover Page | 12 Months Ended |
Dec. 31, 2021shares | |
Document Information [Line Items] | |
Document Type | 40-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2021 |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | FY |
Trading Symbol | PDS |
Entity Registrant Name | PRECISION DRILLING CORP |
Entity Central Index Key | 0001013605 |
Current Fiscal Year End Date | --12-31 |
Entity Current Reporting Status | Yes |
Entity Common Stock, Shares Outstanding | 13,304,425 |
Entity Emerging Growth Company | false |
Entity Interactive Data Current | Yes |
Entity Address, Address Line One | 800, 525 - 8 Avenue, S.W |
Entity Address, City or Town | Calgary |
Entity Address, Postal Zip Code | T2P 1G1 |
Entity Address, State or Province | AB |
Entity Address, Country | CA |
Local Phone Number | 716-4500 |
Security Exchange Name | NYSE |
Title of 12(b) Security | Common Shares |
ICFR Auditor Attestation Flag | true |
Document Annual Report | true |
Entity File Number | 001-14534 |
Entity Incorporation, State or Country Code | A0 |
Auditor Name | KPMG LLP |
Auditor Firm ID | 85 |
Auditor Location | Calgary, Alberta, Canada |
Document Registration Statement | false |
City Area Code | 403 |
Annual Information Form | true |
Audited Annual Financial Statements | true |
Business Contact [Member] | |
Document Information [Line Items] | |
Entity Address, Address Line One | 10350 Richmond Avenue |
Entity Address, Address Line Two | Suite 700 |
Entity Address, City or Town | Houston |
Entity Address, Postal Zip Code | 77042 |
Entity Address, State or Province | TX |
Local Phone Number | 435-6100 |
City Area Code | 713 |
Contact Personnel Name | Precision Drilling (US) Corporation |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - CAD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash | $ 40,588 | $ 108,772 |
Accounts receivable | 255,740 | 207,209 |
Inventory | 23,429 | 26,282 |
Total current assets | 319,757 | 342,263 |
Non-current assets: | ||
Deferred tax assets | 867 | 1,098 |
Property, plant and equipment | 2,258,391 | 2,472,683 |
Intangibles | 23,915 | 27,666 |
Right of use assets | 51,440 | 55,168 |
Investments and other assets | 7,382 | 0 |
Total non-current assets | 2,341,995 | 2,556,615 |
Total assets | 2,661,752 | 2,898,878 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 224,123 | 150,957 |
Current portion of lease obligation | 10,935 | 11,285 |
Income tax payable | 839 | 3,702 |
Current portion of long-term debt | 2,223 | 896 |
Total current liabilities | 238,120 | 166,840 |
Non-current liabilities: | ||
Share based compensation | 26,728 | 11,507 |
Provisions and other | 6,513 | 7,563 |
Long-term debt | 1,106,794 | 1,236,210 |
Lease obligation | 45,823 | 48,882 |
Deferred tax liabilities | 12,219 | 21,236 |
Total non-current liabilities | 1,198,077 | 1,325,398 |
Shareholders' equity: | ||
Shareholders' capital | 2,281,444 | 2,285,738 |
Contributed surplus | 76,311 | 72,915 |
Deficit | (1,266,980) | (1,089,594) |
Accumulated other comprehensive income | 134,780 | 137,581 |
Total shareholders' equity | 1,225,555 | 1,406,640 |
Total liabilities and shareholders' equity | $ 2,661,752 | $ 2,898,878 |
Consolidated Statements of Loss
Consolidated Statements of Loss $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CAD ($) | Dec. 31, 2021$ / shares | Dec. 31, 2020CAD ($) | Dec. 31, 2020$ / shares | |
Profit or loss [abstract] | ||||
Revenue | $ 986,847 | $ 935,753 | ||
Expenses: | ||||
Operating | 698,144 | 583,420 | ||
General and administrative | 95,931 | 70,869 | ||
Restructuring | 0 | 18,061 | ||
Earnings before income taxes, gain on redemption and repurchase of unsecured senior notes, finance charges, foreign exchange, impairment of goodwill, reversal of impairment of property, plant and equipment, loss on asset decommissioning, gain on asset disposals and depreciation and amortization | 192,772 | 263,403 | ||
Depreciation and amortization | 282,326 | 316,322 | ||
Gain on asset disposals | (8,516) | (11,931) | ||
Foreign exchange | 393 | 4,542 | ||
Finance charges | 91,431 | 107,468 | ||
Loss on investments and other assets | 400 | 0 | ||
Loss (gain) on redemption and repurchase of unsecured senior notes | 9,520 | (43,814) | ||
Loss before income taxes | (182,782) | (109,184) | ||
Income taxes: | ||||
Current | 3,203 | 5,290 | ||
Deferred | (8,599) | 5,664 | ||
Income taxes | (5,396) | 10,954 | ||
Net earnings (loss) | $ (177,386) | $ (120,138) | ||
Net loss per share: | ||||
Basic | $ / shares | $ (13.32) | $ (8.76) | ||
Diluted | $ / shares | $ (13.32) | $ (8.76) |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of comprehensive income [abstract] | ||
Net loss | $ (177,386) | $ (120,138) |
Unrealized loss on translation of assets and liabilities of operations denominated in foreign currency | (11,256) | (25,925) |
Foreign exchange gain on net investment hedge with U.S. denominated debt | 8,455 | 23,853 |
Tax benefit related to net investment hedge of long-term debt | 0 | 5,398 |
Comprehensive loss | $ (180,187) | $ (116,812) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flow - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Operations: | ||
Net loss | $ (177,386) | $ (120,138) |
Adjustments for: | ||
Long-term compensation plans | 31,952 | 17,769 |
Depreciation and amortization | 282,326 | 316,322 |
Gain on asset disposals | (8,516) | (11,931) |
Foreign exchange | 1,733 | 4,808 |
Finance charges | 91,431 | 107,468 |
Other | (972) | (2,392) |
Loss (gain) on redemption and repurchase of unsecured senior notes | 9,520 | (43,814) |
Income taxes paid | (5,999) | (6,468) |
Income taxes recovered | 48 | 1,385 |
Income taxes | (5,396) | 10,954 |
Loss on investments and other assets | 400 | 0 |
Interest paid | (67,258) | (103,851) |
Interest received | 360 | 615 |
Funds provided by operations | 152,243 | 170,727 |
Changes in non-cash working capital balances | (13,018) | 55,391 |
Cash provided by operations | 139,225 | 226,118 |
Investments: | ||
Purchase of property, plant and equipment | (75,941) | (61,535) |
Purchase of intangibles | 0 | (57) |
Proceeds on sale of property, plant and equipment | 13,086 | 21,094 |
Purchase of investments and other assets | (3,500) | 0 |
Changes in non-cash working capital balances | 9,742 | (19) |
Cash used in investing activities | (56,613) | (40,517) |
Financing: | ||
Issuance of long-term debt | 696,341 | 151,066 |
Repayment of long-term debt | (824,871) | (278,112) |
Repurchase of share capital | (4,294) | (11,317) |
Debt amendment fees | (913) | (690) |
Debt issue costs | (9,450) | (354) |
Lease payments | (6,726) | (6,217) |
Cash used in financing activities | (149,913) | (145,624) |
Effect of exchange rate changes on cash and cash equivalents | (883) | (5,906) |
Increase (decrease) in cash and cash equivalents | (68,184) | 34,071 |
Cash and cash equivalents, beginning of year | 108,772 | 74,701 |
Cash and cash equivalents, end of year | $ 40,588 | $ 108,772 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - CAD ($) $ in Thousands | Total | Shareholders' Capital [Member] | Contributed Surplus [Member] | Accumulated Other Comprehensive Income [Member] | Deficit [Member] |
Balance at Dec. 31, 2019 | $ 1,527,432 | $ 2,296,378 | $ 66,255 | $ 134,255 | $ (969,456) |
Net loss | (120,138) | (120,138) | |||
Other comprehensive income (loss) | 3,326 | 3,326 | |||
Share-based payment reclassification | (8,331) | (8,331) | |||
Share repurchase | (11,317) | (11,317) | |||
Redemption of non-management directors' DSUs | 175 | 677 | (502) | ||
Share based compensation expense | 15,493 | 15,493 | |||
Balance at Dec. 31, 2020 | 1,406,640 | 2,285,738 | 72,915 | 137,581 | (1,089,594) |
Net loss | (177,386) | (177,386) | |||
Other comprehensive income (loss) | (2,801) | (2,801) | |||
Share-based payment reclassification | (4,757) | (4,757) | |||
Share repurchase | (4,294) | (4,294) | |||
Share based compensation expense | 8,153 | 8,153 | |||
Balance at Dec. 31, 2021 | $ 1,225,555 | $ 2,281,444 | $ 76,311 | $ 134,780 | $ (1,266,980) |
Description of Business
Description of Business | 12 Months Ended |
Dec. 31, 2021 | |
Description Of Business [Abstract] | |
Description of Business | NOTE 1. Precision Drilling Corporation ( Precision Corporation |
Basis of Preparation
Basis of Preparation | 12 Months Ended |
Dec. 31, 2021 | |
Basis Of Preparation [Abstract] | |
Basis of Preparation | NOTE 2. (a) Statement of Compliance The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards ( IFRS IASB These consolidated financial statements were authorized for issue by the Board of Directors on March 4, 2022. (b) Basis of Measurement The consolidated financial statements have been prepared using the historical cost basis and are presented in thousands of Canadian dollars. (c) Use of Estimates and Judgements The preparation of the consolidated financial statements requires management to make estimates and judgements that affect the reported amounts of assets, liabilities, revenues and expenses, and the disclosure of contingencies. These estimates and judgements are based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. The estimation of anticipated future events involves uncertainty and, consequently, the estimates used in preparation of the consolidated financial statements may change as future events unfold, more experience is acquired, or the Corporation’s operating environment changes. The Corporation reviews its estimates and assumptions on an ongoing basis. Adjustments that result from a change in estimate are recorded in the period in which they become known. Significant estimates and judgements used in the preparation of the consolidated financial statements are described in Note 3(d), (e), (f), (h), (i), (k), (q) and (s) and Note 4. Climate-related risks and opportunities may have a future impact on the Corporation and its estimates and judgements, including but not limited to the useful life and residual value of its property, plant and equipment and the measurement of projected cash flows when identifying impairment triggers, performing tests for impairment or impairment recoveries of non-financial The Corporation evaluated the remaining useful lives and residual values of its property, plant and equipment, concluding they remain reasonable given the current estimate of the demand period for oil and natural gas extractive services well exceeds their remaining useful lives. In addition, the Corporation’s property, plant and equipment, including drill rig equipment, adapts to numerous low-carbon In future periods, if indications of impairment of non-financial |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Of Significant Accounting Policies [Abstract] | |
Significant Accounting Policies | NOTE 3. (a) Basis of Consolidation These consolidated financial statements include the accounts of the Corporation and all of its subsidiaries and partnerships, substantially all of which are wholly-owned. The consolidated financial statements of the subsidiaries are prepared for the same period as the parent entity, using consistent accounting policies. All significant intercompany balances and transactions and any unrealized gains and losses arising from intercompany transactions, have been eliminated. Subsidiaries are entities controlled by the Corporation. Control exists when Precision has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. In assessing control, potential voting rights that currently are exercisable are considered. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases. Precision does not hold investments in any companies where it exerts significant influence and does not hold interests in any special-purpose entities. The acquisition method is used to account for acquisitions of subsidiaries and assets that meet the definition of a business under IFRS. The cost of an acquisition is measured as the fair value of the assets given, equity instruments issued, and liabilities incurred or assumed at the date of exchange. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. The excess of the cost of acquisition over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recorded as goodwill. If the cost of acquisition is less than the fair value of the net assets of the subsidiary acquired, the difference is recognized immediately in the statement of earnings. Transaction costs, other than those associated with the issuance of debt or equity securities, that the Corporation incurs in connection with a business combination are expensed as incurred. (b) Cash Cash consists of cash and short-term investments with original maturities of three months or less. (c) Inventory Inventory is primarily comprised of operating supplies and carried at the lower of average cost, being the cost to acquire the inventory, and net realizable value. Inventory is charged to operating expenses as items are sold or consumed at the amount of the average cost of the item. (d) Property, Plant and Equipment Property, plant and equipment are carried at cost, less accumulated depreciation and any accumulated impairment losses. Cost includes an expenditure that is directly attributable to the acquisition of the asset. The cost of self-constructed assets includes the cost of materials and direct labour, any other costs directly attributable to bringing the assets to a working condition for their intended use, and borrowing costs on qualifying assets. The cost of replacing a part of an item of property, plant and equipment is recognized in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to the Corporation, and its cost can be measured reliably. The carrying amount of the replaced part is derecognized. The costs of the day-to-day Property, plant, and equipment are depreciated as follows: Expected Life Salvage Value Basis of Depreciation Drilling rig equipment: – Power & Tubulars 5 years – straight-line – Dynamic 10 years – straight-line – Structural 20 years 10% straight-line Service rig equipment 20 years 10% straight-line Drilling rig spare equipment up to 15 years – straight-line Service rig spare equipment up to 15 years – straight-line Rental equipment up to 15 years 0 to 25% straight-line Other equipment 3 to 10 years – straight-line Light duty vehicles 4 years – straight-line Heavy duty vehicles 7 to 10 years – straight-line Buildings 10 to 20 years – straight-line Property, plant and equipment are depreciated based on estimates of useful lives and salvage values. These estimates consider data and information from various sources including vendors, industry practice, and Precision’s own historical experience and may change as more experience is gained, market conditions shift, or technological advancements are made. Gains and losses on disposal of an item of property, plant and equipment are determined by comparing the proceeds from disposal to the carrying amount of property, plant and equipment, and are recognized in the consolidated statements of loss. Determination of which parts of the drilling rig equipment represent significant cost relative to the entire rig and identifying the consumption patterns along with the useful lives of these significant parts, are matters of judgement. This determination can be complex and subject to differing interpretations and views, particularly when rig equipment comprises individual components for which different depreciation methods or rates are appropriate. The estimated useful lives, residual values and method and components of depreciation are reviewed annually, and adjusted prospectively, if appropriate. (e) Intangibles Intangible assets that are acquired by the Corporation with finite lives are initially recorded at estimated fair value and subsequently measured at cost less accumulated amortization and any accumulated impairment losses. Subsequent expenditures are capitalized only when they increase the future economic benefits of the specific asset to which they relate. Intangible assets are amortized based on estimates of useful lives. These estimates consider data and information from various sources including vendors and Precision’s own historical experience and may change as more experience is gained or technological advancements are made. Amortization is recognized in net earnings using the straight-line method over the estimated useful lives of the respective assets. Precision’s loan commitment fees are amortized over the term of the respective facility. Software is amortized over its expected useful life of up to 10 years The estimated useful lives and methods of amortization are reviewed annually and adjusted prospectively if appropriate. (f) Impairment of Non-Financial The carrying amounts of the Corporation’s non-financial If any such indication exists, then the asset or CGU’s recoverable amount is estimated. Judgement is required when evaluating whether a CGU has indications of impairment. For CGUs that contain goodwill and other intangible assets that have indefinite lives or that are not yet available for use, an impairment test is, at a minimum, completed annually as of December 31. The recoverable amount of an asset or a CGU is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using an after-tax An impairment loss is recognized if the carrying amount of an asset or a CGU exceeds its estimated recoverable amount. Impairment losses are recognized in net earnings. Impairment losses recognized in respect of CGUs are allocated first to reduce the carrying amount of any goodwill allocated to the CGU and then to reduce the carrying amounts of the other assets in the CGU on a pro rata basis. An impairment loss in respect of goodwill is not reversed. In respect of other assets, impairment losses recognized in prior years are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized. (g) Borrowing Costs Interest and borrowing costs that are directly attributable to the acquisition, construction or production of assets that take a substantial period of time to prepare for their intended use are capitalized as part of the cost of those assets. Capitalization ceases during any extended period of suspension of construction or when substantially all activities necessary to prepare the asset for its intended use are complete. All other interest and borrowing costs are recognized in net earnings in the period in which they are incurred. (h) Income Taxes Income tax expense is recognized in net earnings except to the extent that it relates to items recognized directly in equity, in which case it is recognized in equity. Current tax is the expected tax payable or receivable on the taxable earnings or loss for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years. Deferred tax is recognized using the asset and liability method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognized on the initial recognition of assets or liabilities in a transaction that is not a business combination. In addition, deferred tax is not recognized for taxable temporary differences arising on the initial recognition of goodwill. Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, based on the laws that have been enacted or substantively enacted at the reporting date. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in net earnings in the period that includes the date of enactment or substantive enactment. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset and they relate to taxes levied by the same tax authority on the same taxable entity, or on different tax entities that are expected to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realized simultaneously. A deferred tax asset is recognized to the extent that it is probable that future taxable profits will be available against which the temporary difference can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized. The Corporation is subject to taxation in numerous jurisdictions. Uncertainties exist with respect to the interpretation of complex tax regulations and requires significant judgement. Differences arising between the actual results and the assumptions made, or future changes to such assumptions, could necessitate future adjustments to taxable income and expense already recorded. The Corporation establishes provisions, based on reasonable estimates, for possible consequences of audits by the tax authorities of the respective countries in which it operates. The amount of such provisions are based on various factors, such as experience of previous tax audits and differing interpretations of tax regulations by the taxable entity and the responsible tax authority. (i) Revenue from Contracts with Customers Precision recognizes revenue from a variety of sources. In general, customer invoices are issued upon rendering all performance obligations for an individual well-site job. Under the Corporation’s standard contract terms, customer payments are to be received within 30 days of the customer’s receipt of an invoice. Contract Drilling Services The Corporation contracts individual drilling rig packages, including crews and support equipment, to its customers. Depending on the customer’s drilling program, contracts may be for a single well, multiple wells or a fixed term. Revenue from contract drilling services is recognized over time from spud to rig release on a daily basis. Operating days are measured through industry standard tour sheets that document the daily activity of the rig. Revenue is recognized at the applicable day rate for each well, based on rates specified in the drilling contract. The Corporation provides services under turnkey contracts, whereby Precision is required to drill a well to an agreed upon depth under specified conditions for a fixed price, regardless of the time required or problems encountered in drilling the well. Revenue from turnkey drilling contracts is recognized over time using the input method based on costs incurred to date in relation to estimated total contract costs, as that most accurately depicts the Corporation’s performance. The Corporation also provided directional drilling services, which included the provision of directional drilling equipment, tools and personnel to the wellsite, and performance of daily directional drilling services. Directional drilling revenue was recognized over time, upon the daily completion of operating activities. Operating days were measured through daily tour sheets. Revenue was recognized at the applicable day rate, as stipulated in the directional drilling contract. The Corporation’s directional drilling business was sold in July 2021. Completion and Production Services The Corporation provides a variety of well completion and production services including well servicing. In general, service rigs do not involve long-term contracts or penalties for termination. Revenue is recognized daily upon completion of services. Operating days are measured through daily tour sheets and field tickets. Revenue is recognized at the applicable daily or hourly rate, as stipulated in the contract. The Corporation offers its customers a variety of oilfield equipment for rental. Rental revenue is recognized daily at the applicable rate stated in the rental contract. Rental days are measured through field tickets. The Corporation provides accommodation and catering services to customers in remote locations. Customers contract these services either as a package or individually for a fixed term. For accommodation services, the Corporation supplies camp equipment and revenue is recognized over time on a daily basis, once the equipment is on-site (j) Employee Benefit Plans Precision sponsors various defined contribution retirement plans for its employees. The Corporation’s contributions to defined contribution plans are expensed as employees earn the entitlement. (k) Provisions Provisions are recognized when the Corporation has a present obligation as a result of a past event, when it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and when a reliable estimate can be made of the amount of the obligation. The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows. (l) Share-Based Incentive Compensation Plans The Corporation has established several cash-settled share-based incentive compensation plans for non-management re-measured The Corporation has an employee share purchase plan that allows eligible employees to purchase common shares through payroll deductions. Prior to January 1, 2012, the Corporation had an equity-settled deferred share unit plan whereby non-management The Corporation has a share option plan for certain eligible employees. Under this plan, the fair value of share purchase options is calculated at the date of grant using the Black-Scholes option pricing model, and that value is recorded as compensation expense over the grant’s vesting period with an offsetting credit to contributed surplus. A forfeiture rate is estimated on the grant date and is adjusted to reflect the actual number of options that vest. Upon exercise of the equity purchase option, the associated amount is reclassified from contributed surplus to shareholders’ capital. Consideration paid by employees upon exercise of the equity purchase options is credited to shareholders’ capital. (m) Foreign Currency Translation Transactions of the Corporation’s individual entities are recorded in the currency of the primary economic environment in which it operates (its functional currency). Transactions in currencies other than the entities’ functional currency are translated at rates in effect at the time of the transaction. At each period end, monetary assets and liabilities are translated at the prevailing period-end Non-monetary For the purpose of preparing the Corporation’s consolidated financial statements, the financial statements of each foreign operation that does not have a Canadian dollar functional currency are translated into Canadian dollars. Assets and liabilities are translated at exchange rates in effect at the period end date. Revenues and expenses are translated using average exchange rates for the month of the respective transaction. Gains or losses resulting from these translation adjustments are recognized initially in other comprehensive income and reclassified from equity to net earnings on disposal or partial disposal of the foreign operation. (n) Per Share Amounts Basic per share amounts are calculated using the weighted average number of shares outstanding during the period. Diluted per share amounts are calculated by using the treasury stock method for equity-based compensation arrangements. The treasury stock method assumes that any proceeds obtained on exercise of equity-based compensation arrangements would be used to purchase common shares at the average market price during the period. The weighted average number of shares outstanding is then adjusted by the difference between the number of shares issued from the exercise of equity-based compensation arrangements and shares repurchased from the related proceeds. (o) Financial Instruments i) Non-Derivative Financial assets and liabilities are classified and measured at amortized cost, fair value through other comprehensive income or fair value through net earnings. The classification of financial assets and liabilities is generally based on the business model in which the asset or liability is managed and its contractual cash flow characteristics. Financial assets held within a business model whose objective is to collect contractual cash flows and whose contractual terms give rise to cash flows on specified dates that are solely payments of principal and interest on the principal amount outstanding are measured at amortized cost. After their initial fair value measurement, accounts receivable, accounts payable and accrued liabilities and long-term debt are classified and measured at amortized cost using the effective interest rate method. Upon initial recognition of a non-derivative ECL ii) Derivative Financial Instruments: The Corporation may enter into certain financial derivative contracts in order to manage the exposure to market risks from fluctuations in interest rates or exchange rates. These instruments are not used for trading or speculative purposes. Precision has not designated its financial derivative contracts as effective accounting hedges, and thus has not applied hedge accounting, even though it considers certain financial contracts to be economic hedges. As a result, financial derivative contracts are classified as fair value through net earnings and are recorded on the statement of financial position at estimated fair value. Transaction costs are recognized in net earnings when incurred. Derivatives embedded in financial assets are never separated. Rather, the financial instrument as a whole is assessed for classification. Derivatives embedded in financial liabilities are separated from the host contract and accounted for separately when their economic characteristics and risks are not closely related to the host contract. Embedded derivatives in financial liabilities are recorded on the statement of financial position at estimated fair value and changes in the fair value are recognized in earnings. (p) Hedge Accounting The Corporation utilizes foreign currency long-term debt to hedge its exposure to changes in the carrying values of the Corporation’s net investment in certain foreign operations from fluctuations in foreign exchange rates. To be accounted for as a hedge, the foreign currency long-term debt must be designated and documented as a hedge and must be effective at inception and on an ongoing basis. The documentation defines the relationship between the foreign currency long-term debt and the net investment in the foreign operations, as well as the Corporation’s risk management objective and strategy for undertaking the hedging transaction. The Corporation formally assesses, both at inception and on an ongoing basis, whether the changes in fair value of the foreign currency long-term debt is highly effective in offsetting changes in fair value of the net investment in the foreign operations. The portion of gains or losses on the hedging item determined to be an effective hedge is recognized in other comprehensive income, net of tax, and is limited to the translation gain or loss on the net investment, while ineffective portions are recorded through net earnings. A reduction in the fair value of the net investment in the foreign operations or increase in the foreign currency long-term debt balance may result in a portion of the hedge becoming ineffective. If the hedging relationship ceases to be effective or is terminated, hedge accounting is not applied to subsequent gains or losses. The amounts recognized in other comprehensive income are reclassified to net earnings and the corresponding exchange gains or losses arising from the translation of the foreign operation are recorded through net earnings upon dissolution or substantial dissolution of the foreign operation. (q) Leases At inception, Precision assesses whether its contracts contain a lease. A contract contains a lease if it conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The assessment of whether a contract conveys the right to control the use of an identified asset considers whether: ☐ the contract involves the use of an identified asset and the substantive substitution rights of the supplier. If the supplier has a substantive substitution right, then the asset is not identified; ☐ the lessee’s right to obtain substantially all of the economic benefits from the use of the asset; and ☐ the lessee’s right to direct the use of the asset, including decision-making to change how and for what purpose the asset is used. At inception or on reassessment of a contract that contains a lease component, Precision allocates the consideration in the contract to each lease component on the basis of their relative stand-alone prices. Leases in which Precision is a lessee Precision recognizes a right-of-use right-of-use The right-of-use right-of-use right-of-use right-of-use The lease obligation is initially measured at the present value of the minimum lease payments not paid at commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, Precision’s incremental borrowing rate. Generally, Precision uses its incremental borrowing rate as the discount rate for those leases in which it is the lessee. Lease payments included in the measurement of the lease obligation comprise the following: ☐ fixed payments, including in-substance ☐ variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date; ☐ amounts expected to be payable under a residual value guarantee; and ☐ the exercise price under a purchase option that Precision is reasonably certain to exercise, lease payments in an optional renewal period if Precision is reasonably certain to exercise an extension option, and penalties for early termination of a lease unless Precision is reasonably certain not to terminate early. The lease obligation is measured at amortized cost using the effective interest method. The measurement of lease obligations require the use of certain estimates and assumptions including discount rates, exercise of lease term extension options, and escalating lease rates. It is remeasured when there is a change in: ☐ future lease payments arising from a change in an index or rate; ☐ the estimated amount expected to be payable under a residual value guarantee; or ☐ the assessment of whether Precision will exercise a purchase, extension or termination option. When the lease obligation is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use right-of-use Leases in which Precision is a lessor When Precision acts as a lessor, at inception, Precision evaluates the classification as either a finance or operating lease. To classify each lease, Precision makes an overall assessment of whether the lease transfers substantially all of the risks and rewards incidental to ownership of the underlying asset. If this is the case, then the lease is a finance lease; if not, then it is an operating lease. When acting as a sub-lessor, sub-lease sub-lease right-of-use sub-lease If an arrangement contains lease and non-lease (r) Government Assistance and Grants Precision may receive government grants in the form of transfers of resources in return for past or future compliance with certain conditions relating to operating activities. Government grants are recognized once there is reasonable assurance that Precision will comply with the attached conditions and grants will be received. Government grants are recognized in net earnings on a systematic basis over the periods in which Precision recognizes expenses related to costs for which the grants are intended to compensate. (s) Critical Accounting Assumptions and Estimates i) Impairment of Long-Lived Assets At each reporting date, the Corporation reviews the carrying amount of assets in each CGU to determine whether an indicator of impairment exists. The Corporation’s analysis is based on relevant internal and external factors that indicate a CGU may be impaired such as the obsolescence or planned disposal of significant assets, financial performance of the CGU compared to forecasts and consideration of the Corporation’s market capitalization. When indications of impairment exist within a CGU, a recoverable amount is determined and requires assumptions to estimate future discounted cash flows. These estimates and assumptions include future drilling activity and margins and the resulting estimated adjusted earnings before interest, taxes, depreciation and amortization associated with the CGU and the discount rate used to present value the estimated cash flows. In selecting a discount rate, the Corporation uses observable market data inputs to develop a rate that the Corporation believes approximates the discount rate of market participants. Although the Corporation believes the assumptions and estimates are reasonable and consistent with current conditions, internal planning, and expected future operations, such assumptions and estimations are subject to significant uncertainty and judgement. ii) Income Taxes Significant estimation and assumptions are required in determining the provision for income taxes. The recognition of deferred tax assets in respect of deductible temporary differences and unused tax losses and credits is based on the Corporation’s estimation of future taxable profit against which these differences, losses and credits may be used. The assessment is based upon existing tax laws and estimates of the Corporation’s future taxable income. These estimates may be materially different from the actual final tax return in future periods. (t) Accounting Standards Adopted in 2021 i) Simplification of Financial Disclosures about Guarantors On January 1, 2021, the Corporation adopted the Securities and Exchange Commission’s amendments to the financial disclosure requirements for guarantors and issuers of guaranteed securities, as specified in Rule 3-10 S-X. non-financial (u) Accounting Standards and Amendments not yet Effective The IASB has issued a number of new standards and amendments to existing standards that will become effective for periods subsequent to December 31, 2021. Accordingly, these new standards and amendments were not applied when preparing these consolidated financial statements. For each standard, Precision has assessed or is in the process of assessing the impact these new standards and amendments will have on its consolidated financial statements. Standards and Amendments Effective for periods beginning on or after Impact to Precision Drilling Corporation Annual improvements to IFRS Standards 2018–2020 January 1, 2022 Not material Property, Plant and Equipment: Proceeds before Intended Use (Amendments to IAS 16) January 1, 2022 Review in-progress Onerous Contracts - Cost of Fulfilling a Contract (Amendments to IAS 37) January 1, 2022 Review in-progress IFRS 17 Insurance Contracts January 1, 2023 Not material Definition of Accounting Estimates (Amendments to IAS 8) January 1, 2023 Review in-progress Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Amendments to IAS 12) January 1, 2023 Review in-progress Disclosure of Accounting Policies (Amendments of IAS 1) January 1, 2023 Review in-progress Classification of liabilities as current or non-current January 1, 2023 Review in-progress |
Impact of COVID-19
Impact of COVID-19 | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Of Impact Of C O V I D19 [Abstract] | |
Impact of COVID-19 | NOTE 4. COVID-19 In 2021, the Novel Coronavirus (COVID-19) |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Revenue Explanatory [Abstract] | |
Revenue | NOTE 5. The following table includes a reconciliation of disaggregated revenue by reportable segment (Note 6). Revenue has been disaggregated by primary geographical market and type of service provided. Year ended December 31, 2021 Contract Drilling Services Completion and Production Services Corporate and Other Inter- Segment Eliminations Total United States $ 385,330 $ 12,700 $ — $(6) $ 398,024 Canada 347,562 100,788 — (4,578) 443,772 International 145,051 — — — 145,051 $ 877,943 $ 113,488 $ — $ (4,584) $ 986,847 Day rate/hourly services $ 845,832 $ 113,488 $ — $ (462) $ 958,858 Shortfall payments/idle but contracted 543 — — — 543 Turnkey drilling services 17,086 — — — 17,086 Directional services (1) 7,871 — — — 7,871 Other 6,611 — — (4,122) 2,489 $ 877,943 $ 113,488 $ — $ (4,584) $ 986,847 (1) Directional drilling disposed in the third quarter of 2021. Year ended December 31, 2020 Contract Drilling Services Completion and Production Services Corporate and Other Inter- Segment Eliminations Total United States $ 427,436 $ 16,630 $ — $ (14) $ 444,052 Canada 247,678 60,621 — (2,686) 305,613 International 186,088 — — — 186,088 $ 861,202 $ 77,251 $ — $ (2,700) $ 935,753 Day rate/hourly services $ 779,772 $ 77,251 $ — $ (393) $ 856,630 Shortfall payments/idle but contracted 51,028 — — — 51,028 Turnkey drilling services 14,134 — — — 14,134 Directional services 9,637 — — — 9,637 Other 6,631 — — (2,307) 4,324 $ 861,202 $ 77,251 $ — $ (2,700) $ 935,753 |
Segmented Information
Segmented Information | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of operating segments [abstract] | |
Segmented Information | NOTE 6. The Corporation operates primarily in Canada, the United States and certain international locations, in two industry segments; Contract Drilling Services and Completion and Production Services. Contract Drilling Services includes drilling rigs, directional drilling (disposed in the third quarter of 2021), procurement and distribution of oilfield supplies, and the manufacture, sale and repair of drilling equipment. Completion and Production Services includes service rigs, oilfield equipment rental, and camp and catering services. Year ended December 31, 2021 Contract Drilling Services Completion and Production Services Corporate and Other Inter- Segment Eliminations Total Revenue $ 877,943 $ 113,488 $ — $ (4,584) $ 986,847 Operating earnings (loss) (16,867) 8,927 (73,098) — (81,038) Depreciation and amortization 256,072 15,405 10,849 — 282,326 Gain on asset disposals (7,673) (525) (318) — (8,516) Total assets 2,392,382 127,233 142,137 — 2,661,752 Capital expenditures 70,998 4,452 491 — 75,941 Year ended December 31, 2020 Contract Drilling Services Completion and Production Services Corporate and Other Inter- Segment Eliminations Total Revenue $ 861,202 $ 77,251 $ — $ (2,700) $ 935,753 Operating earnings (loss) 22,207 (3,671) (59,524) — (40,988) Depreciation and amortization 288,389 16,375 11,558 — 316,322 Gain on asset disposals (10,171) (1,447) (313) — (11,931) Total assets 2,571,397 132,771 194,710 — 2,898,878 Capital expenditures 57,741 3,362 489 — 61,592 A reconciliation of operating loss to net loss is as follows: 2021 2020 Operating earnings (loss) $ (81,038) $ (40,988) Deduct: Foreign exchange 393 4,542 Finance charges 91,431 107,468 Loss on investments and other assets 400 — Loss (gain) on redemption and repurchase of unsecured senior notes 9,520 (43,814) Income taxes (5,396) 10,954 Net loss $ (177,386) $ (120,138) The Corporation’s operations are carried on in the following geographic locations: Year ended December 31, 2021 United States Canada International Total Revenue $ 398,024 $ 443,772 $ 145,051 $ 986,847 Total assets 1,247,173 959,163 455,416 2,661,752 Precision Drilling Corporation 2021 Annual Report 17 Year ended December 31, 2020 United States Canada International Total Revenue $ 444,052 $ 305,613 $ 186,088 $ 935,753 Total assets 1,339,945 1,053,921 505,012 2,898,878 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of detailed information about property, plant and equipment [abstract] | |
Property, Plant and Equipment | NOTE 7. 2021 2020 Cost $ 6,503,721 $ 6,563,206 Accumulated depreciation (4,245,330 ) (4,090,523 ) $ 2,258,391 $ 2,472,683 Rig equipment 2,074,185 2,269,794 Rental equipment 20,597 27,359 Other equipment 17,088 27,318 Vehicles 3,204 4,978 Buildings 44,009 49,451 Assets under construction 67,884 60,572 Land 31,424 33,211 $ 2,258,391 $ 2,472,683 Cost Rig Equipment Rental Equipment Other Equipment Vehicles Buildings Assets Under Construction Land Total Balance, December 31, 2019 $ 6,109,383 $ 110,307 $ 185,319 $ 38,506 $ 126,177 $ 67,740 $ 33,547 $ 6,670,979 Additions 10,375 — 350 — — 50,810 — 61,535 Disposals (78,028 ) (4,664 ) (3,990 ) (2,789 ) (3,053 ) — — (92,524 ) Reclassifications 55,322 — 521 — — (55,843 ) — — Effect of foreign currency exchange differences (71,285 ) (619 ) (1,196 ) (367 ) (846 ) (2,135 ) (336 ) (76,784 ) Balance, December 31, 2020 6,025,767 105,024 181,004 35,350 122,278 60,572 33,211 6,563,206 Additions 15,288 — 254 — — 60,399 — 75,941 Disposals (100,004 ) (1,822 ) (2,300 ) (543 ) (2,454 ) — (1,674 ) (108,797 ) Reclassifications 47,080 — 188 — — (47,268 ) — — Effect of foreign currency exchange differences (19,815 ) (21 ) (429 ) (127 ) (305 ) (5,819 ) (113 ) (26,629 ) Balance, December 31, 2021 $ 5,968,316 $ 103,181 $ 178,717 $ 34,680 $ 119,519 $ 67,884 $ 31,424 $ 6,503,721 Accumulated Depreciation Rig Equipment Rental Equipment Other Equipment Vehicles Buildings Assets Under Construction Land Total Balance, December 31, 2019 $ 3,598,878 $ 75,870 $ 146,715 $ 30,710 $ 69,343 $ — $ — $ 3,921,516 Depreciation expense 277,799 7,044 12,013 2,790 5,288 — — 304,934 Disposals (73,354 ) (4,631 ) (3,990 ) (2,782 ) (1,319 ) — — (86,076 ) Effect of foreign currency exchange differences (47,350 ) (618 ) (1,052 ) (346 ) (485 ) — — (49,851 ) Balance, December 31, 2020 3,755,973 77,665 153,686 30,372 72,827 — — 4,090,523 Depreciation expense 248,564 6,741 10,410 1,739 4,582 — — 272,036 Disposals (95,977 ) (1,804 ) (2,194 ) (543 ) (1,769 ) — — (102,287 ) Effect of foreign currency exchange differences (14,429 ) (18 ) (273 ) (92 ) (130 ) — — (14,942 ) Balance, December 31, 2021 $ 3,894,131 $ 82,584 $ 161,629 $ 31,476 $ 75,510 $ — $ — $ 4,245,330 (a) Impairment Test Precision reviews the carrying value of its long-lived assets for indications of impairment at the end of each reporting period. At December 31, 2021, Precision reviewed each of its cash-generating units and did not identify indications of impairment, or reversal of impairment and therefore, did not test its CGUs for impairment. (b) Asset Disposals Through the completion of normal course business operations, the Corporation sold used assets incurring gains or losses on disposal resulting in a net gain on asset disposal of $9 million (2020 – During 2021, Precision sold its directional drilling business to Cathedral Energy Services Ltd. ( Cathedral $3 million of cash to support Cathedral’s further growth and expansion, for a purchase price of $6 million, resulting in a gain on disposal of $1 million. The directional drilling business was previously contained within the Contract Drilling Services segment. The purchase price was satisfied through the issuance of 13,400,000 Cathedral common shares, along with warrants to purchase an additional 2,000,000 Cathedral common shares at a price of $0.60 per common share within a two-year two-year |
Intangibles
Intangibles | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of detailed information about intangible assets [abstract] | |
Intangibles | NOTE 8. INTANGIBLES 2021 2020 Cost $ 55,108 $ 54,189 Accumulated amortization (31,193 ) (26,523 ) $ 23,915 $ 27,666 Loan commitment fees related to Senior Credit Facility $ 2,067 $ 2,109 Software 21,848 25,557 $ 23,915 $ 27,666 Cost Loan Commitment Fees Software Total Balance, December 31, 2019 $ 15,478 $ 37,938 $ 53,416 Additions 690 57 747 Effect of foreign currency exchange differences — 26 26 Balance, December 31, 2020 16,168 38,021 54,189 Additions 913 — 913 Effect of foreign currency exchange differences — 6 6 Balance, December 31, 2021 $ 17,081 $ 38,027 $ 55,108 Accumulated Amortization Loan Commitment Fees Software Total Balance, December 31, 2019 $ 13,206 $ 8,464 $ 21,670 Amortization expense 853 3,971 4,824 Effect of foreign currency exchange differences — 29 29 Balance, December 31, 2020 14,059 12,464 26,523 Amortization expense 955 3,715 4,670 Balance, December 31, 2021 $ 15,014 $ 16,179 $ 31,193 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Of Long Term Debt [Abstract] | |
Long-Term Debt | NOTE 9. LONG-TERM DEBT 2021 2020 2021 2020 U.S. Denominated Facilities Canadian Facilities and Translated U.S. Facilities Current Portion of Long-Term Debt Canadian Real Estate Credit Facility US$ — US$ — $ 1,333 $ — U.S. Real Estate Credit Facility 704 704 890 896 US$ 704 US$ 704 $ 2,223 $ 896 Long-Term Debt Senior Credit Facility US$ 118,000 US$ 74,650 $ 149,206 $ 95,041 Canadian Real Estate Credit Facility — — 17,667 — U.S. Real Estate Credit Facility 9,093 9,797 11,498 12,474 Unsecured Senior Notes: 7.75% senior notes due 2023 — 285,734 — 363,782 5.25% senior notes due 2024 — 263,205 — 335,099 7.125% senior notes due 2026 347,765 347,765 439,735 442,757 6.875% senior notes due 2029 400,000 — 505,784 — US$ 874,858 US$ 981,151 1,123,890 1,249,153 Less net unamortized debt issue costs (17,096 ) (12,943 ) $ 1,106,794 $ 1,236,210 Senior Facility Unsecured Senior Canadian U.S. Real Debt Issue Total Balance December 31, 2019 $ — $ 1,445,127 $ — $ — $ (17,946 ) $ 1,427,181 Changes from financing cash flows: Redemption / repurchase of unsecured senior notes — (240,793 ) — — — (240,793 ) Repayment of long-term debt (37,243 ) — — (76 ) — (37,319 ) Proceeds from Senior Credit Facility 137,255 — — — — 137,255 Proceeds from Real Estate Credit Facility — — — 13,811 — 13,811 Payment — — — — (354 ) (354 ) Non-cash Gain on redemption / repurchase of unsecured senior notes — (43,814 ) — — — (43,814 ) Amortization of debt issue costs — — — — 5,350 5,350 Foreign exchange adjustment (4,971 ) (18,882 ) — (365 ) 7 (24,211 ) Balance December 31, 2020 $ 95,041 $ 1,141,638 $ — $ 13,370 $ (12,943 ) $ 1,237,106 Current — — — 896 — 896 Long-term 95,041 1,141,638 — 12,474 (12,943 ) 1,236,210 Balance December 31, 202 0 $ 95,041 $ 1,141,638 $ — $ 13,370 $ (12,943 ) $ 1,237,106 Changes from financing cash flows: Proceeds from unsecured senior notes — 482,064 — — — 482,064 Proceeds from Senior Credit Facility 194,277 — — — — 194,277 Proceeds from Real Estate Credit Facility — — 20,000 — — 20,000 Repayment of unsecured senior notes — (676,058 ) — — — (676,058 ) Repayment of Senior Credit Facility (146,930 ) — — — — (146,930 ) Repayment of Real Estate Credit Facility — — (1,000 ) (883 ) — (1,883 ) Payment of debt issue costs — — — — (9,450 ) (9,450 ) Non-cash Loss on redemption / repurchase of unsecured senior notes — 9,520 — — — 9,520 Amortization of debt issue costs — — — — 8,720 8,720 Original issue discount — 3,628 — — (3,427 ) 201 Foreign exchange adjustment 6,818 (15,273 ) — (99 ) 4 (8,550 ) Balance December 31, 2021 $ 149,206 $ 945,519 $ 19,000 $ 12,388 $ (17,096 ) $ 1,109,017 Current — — 1,333 890 — 2,223 Long-term 149,206 945,519 17,667 11,498 (17,096 ) 1,106,794 Balance December 31, 2021 $ 149,206 $ 945,519 $ 19,000 $ 12,388 $ (17,096 ) $ 1,109,017 Precision’s current and long-term debt obligations at December 31, 2021 will mature as follows: 2022 $ 2,223 2023 2,223 2024 2,223 2025 160,257 Thereafter 959,187 $ 1,126,113 (a) Senior Credit Facility: The senior secured revolving credit facility ( Senior Credit Facility The Senior Credit Facility requires that Precision comply with certain restrictive and financial covenants including a leverage ratio of consolidated senior debt to consolidated Covenant EBITDA (as defined in the debt agreement) of less than 2.5:1. For purposes of calculating the leverage ratio consolidated senior debt only includes secured indebtedness. It also requires the Corporation to maintain a ratio of consolidated Covenant EBITDA to consolidated interest expense for the most recent four consecutive quarters, of greater than 2.5:1, subject to the amendments noted below. Distributions under the Senior Credit Facility are subject to a pro-forma pro-forma On April 9, 2020 Precision agreed with the lenders of its Senior Credit Facility to certain covenants during the Covenant Relief Period. On June 18, 2021, Precision agreed with the lenders of its Senior Credit Facility to extend the facility’s maturity date and extend and amend certain financial covenants during the Covenant Relief Period. The maturity date of the Senior Credit Facility was extended to June 18, 2025, however, US$53 million of the US$500 million will expire on November 21, 2023 The lenders agreed to extend the Covenant Relief Period to September 30, 2022 and amended the consolidated Covenant EBITDA to consolidated interest coverage ratio for the most recent four consecutive quarters to be greater than or equal to 2.0:1, for the periods ending December 31, 2021 and March 31, 2022, 2.25:1 for the periods ending June 30, 2022 and September 30, 2022 and 2.5:1 for periods ending thereafter. During the Covenant Relief Period, Precision’s distributions in the form of dividends, distributions and share repurchases are restricted to a maximum of US$25 million in each of 2021 and 2022, subject to a pro forma senior net leverage ratio (as defined in the credit agreement) of less than or equal to 1.75:1. In addition, during 2021, the North American and acceptable secured foreign assets must directly account for at least 65% of consolidated Covenant EBITDA calculated quarterly on a rolling twelve-month basis, increasing to 70% thereafter. Precision also has the option to voluntarily terminate the covenant relief period prior to its March 31, 2022 end date. Under the Senior Credit Facility, amounts can be drawn in U.S. dollars and/or Canadian dollars. At December 31, 2021, US$118 million was drawn under this facility (2020 – US$75 million). Up to US$200 million of the Senior Credit Facility is available for letters of credit denominated in U.S and/or Canadian dollars and other currencies acceptable to the fronting lender. As at December 31, 2021 outstanding letters of credit amounted to US$33 million (2020 – US$32 million). The interest rate on loans that are denominated in U.S. dollars is, at the option of Precision, either a margin over a U.S. base rate or a margin over LIBOR. The interest rate on loans denominated in Canadian dollars is, at the option of Precision, either a margin over the Canadian prime rate or a margin over the Canadian Dollar Offered Rate ( CDOR (b) Real Estate Credit Facility In March 2021, Precision established a Canadian Real Estate Credit Facility in the amount of $20 million. The facility matures in March 2026 and is secured by real properties in Alberta, Canada. Principal plus interest payments are due quarterly, based on 15-year In November 2020, Precision established a Real Estate Term Credit Facility in the amount of US$11 million. The facility matures in November 2025 15-year margin. The Real Estate Credit Facilities contain certain affirmative and negative covenants and events of default, customary for these types of transactions. Under the terms of these facilities, Precision must maintain financial covenants in accordance with the Senior Credit Facility, described above, as of the last day of each period of four consecutive fiscal quarters. For the Canadian Real Estate Credit Facility, in the event the Senior Credit Facility expires, is cancelled or is terminated, financial covenants in effect at that time shall remain in place for the remaining duration of the facility. For the U.S. Real Estate Credit Facility, in the event the consolidated Covenant EBITDA to consolidated interest expense coverage ratio is waived or removed from the Senior Credit Facility, a minimum threshold of 1.15:1 is required. (c) Unsecured Senior Notes: Precision has outstanding the following unsecured senior notes: 7.125% US$ senior notes due 2026 These unsecured senior notes bear interest at a fixed rate of 7.125% per annum and mature on January 15, 2026. Interest is payable semi-annually on January 15 and July 15 of each year, commencing July 15, 2018. Precision may redeem these notes in whole or in part at any time before November 15, 2023, at redemption prices ranging between 105.344% and 101.781% of their principal amount plus accrued interest. Any time on or after November 15, 2022, these notes can be redeemed for their principal amount plus accrued interest. Upon specified change of control events, each holder of a note will have the right to sell to Precision all or a portion of its notes at a purchase price in cash equal to 101% of the principal amount, plus accrued interest to the date of purchase. 6.875% US$ senior notes due 2029 These unsecured senior notes bear interest at a fixed rate of 6.875% per annum and mature on January 15, 2029. Interest is payable semi-annually on January 15 and July 15 of each year, commencing January 15, 2022. Prior to June 15, 2024, Precision may redeem up to 35% of the 6.875% unsecured senior notes due 2029 with the net proceeds of certain equity offerings at a redemption price equal to 106.875% of the principal amount plus accrued interest. Prior to January 15, 2025, Precision may redeem these notes in whole or in part at 100.0% of their principal amount, plus accrued interest and the greater of 1.0% of the principal amount of the note to be redeemed and the excess, if any, of the present value of the January 15, 2025 redemption price plus required interest payments through January 15, 2025 (calculated using the U.S. Treasury rate plus 50 basis points) over the principal amount of the note. As well, Precision may redeem these notes in whole or in part at any time on or after January 15, 2025 and before January 15, 2027, at redemption prices ranging between 103.438% and 101.719% of their principal amount plus accrued interest. Any time on or after January 15, 2027, these notes can be redeemed for their principal amount plus accrued interest. Upon specified change of control events, each holder of a note will have the right to sell to Precision all or a portion of its notes at a purchase price in cash equal to 101% of the principal amount, plus accrued interest to the date of purchase. The unsecured senior notes require Precision to comply with certain restrictive and financial covenants including an incurrence based test of Consolidated Interest Coverage Ratio, as defined in the senior note agreements, of greater than or equal to 2.0:1 The unsecured senior notes also contain a restricted payments covenant that limits Precision’s ability to make payments in the nature of dividends, distributions and for repurchases from shareholders. This restricted payments basket grows by, among other things, 50% of cumulative consolidated net earnings, and decreases by 100% of cumulative consolidated net losses as defined in the note agreements, and cumulative payments made to shareholders. At December 31, 2021, the governing net restricted payments basket was negative $369 million (2020 – negative $307 million), therefore limiting us from making any further dividend payments or share repurchases until the governing restricted payments basket once again becomes positive. During 2021, pursuant to the indentures governing the unsecured senior notes, Precision used the available general restricted payments basket to facilitate the repurchase and cancellation of its common shares. On June 15, 2021, Precision issued US$400 million of 6.875% unsecured senior notes due in 2029 in a private offering. These unsecured senior notes were issued at a price equal to 99.253% of the face value, resulting in a US$3 million original issue discount. The original issue discount will be amortized over the life of the notes using the effective interest rate method. The net proceeds from the issuance along with amounts drawn on the Senior Credit Facility were used to redeem in full US$286 million aggregate principal amount of the 7.750% unsecured senior notes due 2023 and redeem in full US$263 million aggregate principal amount of the 5.250% unsecured senior notes due 2024 for US$557 million plus accrued and unpaid interest resulting in a loss on redemption of US$8 million. The redemption of the unsecured senior notes occurred on June 16, 2021 and interest ceased to accrue on the notes on that date. Precision’s unsecured senior notes are fully and unconditionally guaranteed, jointly and severally, on a senior unsecured basis by all U.S. and Canadian subsidiaries that guaranteed the Senior Credit Facility ( Guarantor Subsidiaries owned by the parent company. Separate financial statements for each of the Guarantor Subsidiaries have not been provided; instead, the Corporation has included in Note 27 summarized financial information and expanded qualitative non-financial disclosures based on Rule 3-10 of the U.S. Securities and Exchange Commission’s Regulation S-X. (d) Covenants: At December 31, 2021, Precision was in compliance with the covenants of the Senior Credit Facility, Real Estate Credit Facilities and unsecured senior notes. Covenant At December 31, 2021 Senior Credit Facility Consolidated senior debt to consolidated covenant EBITDA (1) ≤ 0.97 Consolidated covenant EBITDA to consolidated interest expense ≥ 2.83 Real Estate Credit Facility Consolidated covenant EBITDA to consolidated interest expense ≥ 2.83 Unsecured Senior Notes Consolidated interest coverage ratio ≥ 2.06 (1) For purposes of calculating the leverage ratio consolidated senior debt only includes secured indebtedness. |
Restructuring and Other
Restructuring and Other | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Of Restructuring And Other Recoveries [Abstract] | |
Restructuring and Other | NOTE 10. RESTRUCTURING AND OTHER In response to the economic slowdown caused by COVID-19, For the period ended December 31, 2020, the Corporation incurred restructuring charges of $18 million. These charges were comprised of severance, as the Corporation aligned its cost structure to reflect reduced global activity, and certain costs associated with the shutdown of its directional drilling operations in the United States. Precision did not recognize any restructuring costs in 2021. |
Finance Charges
Finance Charges | 12 Months Ended |
Dec. 31, 2021 | |
Finance Costs [Abstract] | |
Finance Charges | NOTE 11. 2021 2020 Interest: Long-term debt $ 78,921 $ 98,555 Lease obligations 2,764 3,217 Other 80 232 Income (210 ) (739 ) Amortization of debt issue costs 9,876 6,203 Finance charges $ 91,431 $ 107,468 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Of Leases [Abstract] | |
Leases | NOTE 12. (a) As a lessee Precision recognizes right-of-use Real Estate Vehicles and Total Balance, December 31, 2019 $ 54,026 $ 12,116 $ 66,142 Additions 136 3,031 3,167 Derecognition — (2,597 ) (2,597 ) Depreciation (3,900 ) (3,517 ) (7,417 ) Lease remeasurements (6,233 ) 2,602 (3,631 ) Effect of foreign currency exchange differences (340 ) (156 ) (496 ) Balance, December 31, 2020 $ 43,689 $ 11,479 $ 55,168 Additions 514 3,029 3,543 Derecognition — (480 ) (480 ) Depreciation (3,566 ) (3,009 ) (6,575 ) Effect of foreign currency exchange differences (174 ) (42 ) (216 ) Balance, December 31, 2021 $ 40,463 $ 10,977 $ 51,440 Precision’s real estate lease contracts often contain renewal options which may impact the determination of the lease term for purposes of calculating the lease obligation. If it is reasonably certain that a renewal option will be exercised, the renewal period is included in the lease term. When entering a lease, Precision assesses whether it is reasonably certain renewal options will be exercised. Reasonable certainty is established if all relevant facts and circumstances indicate an economic incentive to exercise the renewal option. For the majority of its real estate leases, Precision is reasonably certain it will exercise its renewal option. Accordingly, the renewal period has been included in the lease term used to calculate the lease obligation. For the period ended December 31, 2021, Precision had total cash outflows of $9 million (2020 – $9 million) in relation to its lease obligations. The Corporation has commitments under various lease agreements, primarily for real estate and vehicles and equipment. Terms of Precision’s real estate leases run for a period of one years while vehicle and equipment leases are typically for terms of between three non-cancellable 2021 2020 Less than one year $ 10,782 $ 10,960 One to five years 29,327 29,630 More than five years 2,391 6,590 $ 42,500 $ 47,180 (b) As a lessor Precision leases its rig equipment under long-term drilling contracts with terms ranging from one The following table sets out a maturity analysis of lease payments, showing the undiscounted lease payments to be received subsequent to December 31, 2021. Less than one year $ 198,188 One to five years 61,860 $ 260,048 |
Share Based Compensation Plans
Share Based Compensation Plans | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of terms and conditions of share-based payment arrangement [abstract] | |
Share Based Compensation Plans | NOTE 13. Precision’s omnibus equity incentive plan ( Omnibus Plan Liability Classified Plans Restricted Share Units Performance Share Units Executive Non- Management Directors’ Total Balance, December 31, 2019 $ 7,318 $ 2,858 $ — $ 3,336 $ 13,512 Expensed during the period 3,119 2,787 — (1,551 ) 4,355 Reclassification from equity-settled plans — — 6,833 — 6,833 Payments (3,813 ) (894 ) — (176 ) (4,883 ) Balance, December 31, 2020 6,624 4,751 6,833 1,609 19,817 Expensed during the period 17,168 18,634 17,646 3,065 56,513 Reclassification from equity-settled plans — — (3,164 ) — (3,164 ) Payments (5,742 ) (1,861 ) (4,808 ) — (12,411 ) Balance, December 31, 2021 $ 18,050 $ 21,524 $ 16,507 $ 4,674 $ 60,755 Current 11,338 6,182 16,507 — 34,027 Long-term 6,712 15,342 — 4,674 26,728 Balance, December 31, 2021 $ 18,050 $ 21,524 $ 16,507 $ 4,674 $ 60,755 (a) Restricted Share Units and Performance Share Units Precision has various cash-settled share-based incentive plans for officers and other eligible employees. Under the Restricted Share Unit ( RSU PSU that ranges from zero to two times. The performance factor is based on Precision’s share price performance compared to a peer group over the three-year period. A summary of the RSUs and PSUs outstanding under these share-based incentive plans is presented below: RSUs Outstanding PSUs Outstanding December 31, 2019 316,904 166,768 Granted 363,253 502,558 Redeemed (127,884 ) (39,028 ) Forfeited (67,491 ) (64,919 ) December 31, 2020 484,782 565,379 Granted 356,928 488,510 Redeemed (216,820 ) (40,515 ) Forfeited (26,734 ) (29,640 ) December 31, 2021 598,156 983,734 (b) Executive Performance Share Units Precision grants Executive PSUs to certain senior executives. Executive PSUs vest over a three-year period and incorporate performance criteria established at the date of grant that can adjust the number of performance share units available for settlement from zero to two times the amount originally granted. A summary of the activity under this share-based incentive plan is presented below: Executive Performance Share Units Outstanding December 31, 2019 368,845 Redeemed (57,442 ) Forfeited (22,696 ) December 31, 2020 288,707 Redeemed (96,355 ) Forfeited (2,388 ) December 31, 2021 189,964 Included in net loss for the year ended December 31, 2021 is an expense of $18 million (2020 – $15 million). Subsequent to December 31, 2021, Precision settled 131,950 vesting Executive PSUs in 263,900 common shares. (c) Non-Management Precision has a deferred share unit ( DSU non-management non-management Non-management non-management A summary of the DSUs outstanding under this share-based incentive plan is presented below: Deferred Share Units Outstanding Balance December 31, 2019 89,613 Redeemed (12,039 ) Balance December 31, 2020 77,574 Granted 27,017 Balance December 31, 2021 104,591 Equity Settled Plans (d) Option Plan Under this plan, the exercise price of each option equals the fair market value of the option at the date of grant determined by the weighted average trading price for the five days preceding the grant. The options are denominated in either Canadian or U.S. dollars, and vest over a period of three years from the date of grant, as employees render continuous service to the Corporation, and have a term of seven years. A summary of the status of the equity incentive plan is presented below: Canadian Share Options Options Outstanding Range of Exercise Prices Weighted Average Exercise Price Options Exercisable December 31, 2019 201,079 $ 87.00 – 286.20 145.88 178,453 Forfeited (52,414 ) 87.00 – 203.00 165.79 December 31, 2020 148,665 87.00 – 286.20 138.86 141,156 Forfeited (33,060 ) 89.20 – 286.20 193.10 December 31, 2021 115,605 $ 87.00 – 146.40 $ 123.35 115,605 U.S. Share Options Options Outstanding Range of Exercise Prices (US$) Weighted Average Exercise Price (US$) Options Exercisable December 31, 2019 318,153 $ 51.20 – 183.60 $ 93.32 217,441 Forfeited (34,360 ) 64.20 – 183.60 151.92 December 31, 2020 283,793 51.20 – 183.60 86.23 239,521 Forfeited (15,950 ) 183.60 – 183.60 183.60 December 31, 2021 267,843 $ 51.20 – 115.80 $ 80.43 257,854 Canadian Share Options Total Options Outstanding Options Exercisable Range of Exercise Prices: Number Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Number Weighted Average Exercise Price $ 87.00 – 117.59 45,590 $ 88.11 2.14 45,590 $ 88.11 117.60 – 146.19 17,035 145.97 2.13 17,035 145.97 146.20 – 146.40 52,980 146.40 0.11 52,980 146.40 $ 87.00 – 146.40 115,605 $ 123.35 1.21 115,605 $ 123.35 U.S. Share Options Total Options Outstanding Options Exercisable Range of Exercise Prices (US$): Number Weighted Average Exercise Price (US$) Weighted Remaining Contractual Life (Years) Number Weighted Average Exercise Price (US$) $ 51.20 – 66.50 103,035 $ 60.42 2.02 93,046 $ 61.41 66.51 – 105.94 78,323 70.69 3.05 78,323 70.69 105.95 – 115.80 86,485 113.08 1.38 86,485 113.08 $ 51.20 – 115.80 267,843 $ 80.43 2.11 257,854 $ 81.56 No options were granted during 2021 and 2020. Included in net loss for the year ended December 31, 2021 is an expense of $0.2 million (2020 – $1 million). (e) Non-Management Prior to January 1, 2012, Precision had a deferred share unit plan for non-management non-management A summary of this share-based incentive plan is presented below: Deferred Share Units Outstanding December 31, 2019 4,659 Redeemed (3,189 ) December 31, 2020 and 2021 1,470 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Net deferred tax assets and liabilities [abstract] | |
Income Taxes | NOTE 14. The provision for income taxes differs from that which would be expected by applying statutory Canadian income tax rates. A reconciliation of the difference for the years ended December 31, is as follows: 2021 2020 Loss before income taxes $ (182,782 ) $ (109,184 ) Federal and provincial statutory rates 24 % 25 % Tax at statutory rates $ (43,868 ) $ (27,296 ) Adjusted for the effect of: Non-deductible 1,162 628 Non-taxable (257 ) (6,184 ) Impact of foreign tax rates (1,474 ) (238 ) Withholding taxes 937 813 Taxes related to prior years (1,467 ) (1,531 ) Tax assets not recognized 37,924 44,112 Other 1,647 650 Income tax expense (recovery) $ (5,396 ) $ 10,954 The net deferred tax liability is comprised of the tax effect of the following temporary differences: 2021 2020 Deferred tax liability: Property, plant and equipment and intangibles $ 359,383 $ 393,631 Debt issue costs 1,457 2,665 Partnership deferrals 11,082 2,532 Other 6,221 6,322 378,143 405,150 Offsetting of assets and liabilities (365,924 ) (383,914 ) $ 12,219 $ 21,236 Deferred tax assets: Losses (expire from time to time up to 204 1 $ 340,406 $ 370,439 Long-term incentive plan 14,264 4,956 Other 12,121 9,617 366,791 385,012 Offsetting of assets and liabilities (365,924 ) (383,914 ) $ 867 $ 1,098 Net deferred tax liability $ 11,352 $ 20,138 Included in the deferred tax assets at December 31, 2021 was $1 million (2020 – $1 million) of tax-effected The Corporation has loss carry forwards in the U.S. and certain international locations and capital loss carry forwards in Canada and other deductible temporary differences in certain international locations for which it is unlikely that sufficient future taxable income will be available. Accordingly, the Corporation has not recognized a deferred tax asset for the following items: 2021 2020 Tax losses (Capital) $ 29,363 $ 29,809 Tax losses (Income) 96,671 72,516 Deductible temporary differences 4,153 2,020 Total $ 130,187 $ 104,345 Property, Partnership Other Losses Debt Issue Costs Long-Term Incentive Plan Other Deferred Tax Assets Net Deferred Tax Liability Balance, December 31, 2019 $ 426,934 $ 850 $ 7,926 $ (402,025 ) $ 3,280 $ (6,131 ) $ (10,169 ) $ 20,665 Recognized in net earnings (loss) (28,600 ) 1,682 (1,601 ) 33,141 (615 ) 1,120 537 5,664 Recognized in other comprehensive income — — — (5,398 ) — — — (5,398 ) Effect of foreign currency exchange (4,703 ) — (3 ) 3,843 — 55 15 (793 ) Balance, December 31, 2020 $ 393,631 $ 2,532 $ 6,322 $ (370,439 ) $ 2,665 $ (4,956 ) $ (9,617 ) $ 20,138 Recognized in net earnings (loss) (32,562 ) 8,550 (99 ) 28,528 (1,208 ) (9,291 ) (2,517 ) (8,599 ) Effect of foreign currency exchange (1,686 ) — (2 ) 1,505 — (17 ) 13 (187 ) Balance, December 31, 2021 $ 359,383 $ 11,082 $ 6,221 $ (340,406 ) $ 1,457 $ (14,264 ) $ (12,121 ) $ 11,352 |
Bank Indebtedness
Bank Indebtedness | 12 Months Ended |
Dec. 31, 2021 | |
Debt instruments held [abstract] | |
Bank Indebtedness | NOTE 15. At December 31, 2021, Precision had available $40 million (2020 – $40 million) and US$15 million (2020 – US$15 million) under secured operating facilities, and a secured US$30 million (2020 – US$30 million) facility for the issuance of letters of credit and performance and bid bonds to support international operations. As at December 31, 2021 and 2020, no amounts had been drawn on any of the facilities. Availability of the $40 million and US$30 million facility was reduced by outstanding letters of credit in the amount of $7 million (2020 – $7 million) and US$3 million (2020 – US$2 million), respectively. The facilities are primarily secured by charges on substantially all present and future property of Precision and its material subsidiaries. Advances under the $40 million facility are available at the bank’s prime lending rate, U.S. base rate, U.S. LIBOR rate plus applicable margin, or applicable margin for Banker’s Acceptances, or in combination, and under the US$15 million facility at the bank’s prime lending rate. |
Provisions and Other
Provisions and Other | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of other provisions [abstract] | |
Provisions and Other | NOTE 16. Workers’ Compensation Balance December 31, 2019 $ 11,866 Recovered during the year (750 ) Payment of deductibles and uninsured claims (2,698 ) Effects of foreign currency exchange differences (110 ) Balance December 31, 2020 8,308 Expensed during the year 3,296 Payment of deductibles and uninsured claims (2,815 ) Effects of foreign currency exchange differences (71 ) Balance December 31, 2021 $ 8,718 2021 2020 Current $ 2,205 $ 745 Long-term 6,513 7,563 $ 8,718 $ 8,308 Precision maintains a provision for the deductible and uninsured portions of workers’ compensation and general liability claims. The amount accrued for the provision for losses incurred varies depending on the number and nature of the claims outstanding at the statement of financial position dates. In addition, the accrual includes management’s estimate of the future cost to settle each claim such as future changes in the severity of the claim and increases in medical costs. Precision uses third parties to assist in developing the estimate of the ultimate costs to settle each claim, which is based on historical experience associated with the type of each claim and specific information related to each claim. The specific circumstances of each claim may change over time prior to settlement and, as a result, the estimates made as of the balance sheet dates may change. The current portion of the provision is presented within accounts payables and accrued liabilities. |
Shareholders' Capital
Shareholders' Capital | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of classes of share capital [abstract] | |
Shareholders' Capital | NOTE 17. (a) Authorized – unlimited number of voting common shares – unlimited number of preferred shares, issuable in series, limited to an amount equal to one half of the issued and outstanding common shares (b) Issued Common shares Number Amount Balance, December 31, 2019 13,864,990 $ 2,296,378 Share repurchase (420,588 ) (11,317 ) Share issuance on redemption of non-management 15,228 677 Share consolidation adjustment (37 ) — Balance, December 31, 2020 13,459,593 $ 2,285,738 Share repurchase (155,168 ) (4,294 ) Balance, December 31, 2021 13,304,425 $ 2,281,444 (c) Normal Course Issuer Bid In 2019, the Toronto Stock Exchange (TSX) approved Precision’s application to implement a Normal Course Issuer Bid (NCIB). During the third quarter of 2021, the TSX approved Precision’s application to renew the NCIB. Under the terms of the NCIB, Precision may purchase and cancel up to a maximum of 1,317,158 common shares, representing 10% of the public float of common shares as of August 13, 2021. Purchases under the NCIB were made through the facilities of the TSX, the New York Stock Exchange and various other designated exchanges in accordance with applicable regulatory requirements at a price per common share representative of the market price at the time of acquisition. The NCIB will terminate no later than August 26, 2022. For the year ended December 31, 2021, Precision repurchased and cancelled a total of 155,168 (2020 – 420,588) common shares for $4 million (2020 – $11 million). (d) Share Consolidation On November 12, 2020, Precision Drilling Corporation completed a 20:1 consolidation of its common shares. No fractional shares were issued pursuant to the share consolidation. In lieu of any such fractional shares, each registered shareholder otherwise entitled to a fractional share following the implementation of the share consolidation received the nearest whole number of post-consolidation shares, resulting in a share consolidation adjustment of 37 common shares. |
Per Share Amounts
Per Share Amounts | 12 Months Ended |
Dec. 31, 2021 | |
Earnings per share [abstract] | |
Per Share Amounts | NOTE 18. The following tables reconcile the net loss and weighted average shares outstanding used in computing basic and diluted loss per share: 2021 2020 Net loss – basic and diluted $ (177,386 ) $ (120,138 ) (Stated in thousands) 2021 2020 Weighted average shares outstanding – basic 13,315 13,722 Effect of share option and other equity compensation plans — — Weighted average shares outstanding – diluted 13,315 13,722 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2021 | |
Accumulated Other Comprehensive Income [abstract] | |
Accumulated Other Comprehensive Income | NOTE 19. Unrealized Foreign Currency Translation Gains (Losses) Foreign Exchange Gain (Loss) on Net Investment Hedge Tax Benefit Related to Net Investment Hedge of Long-Term Debt Accumulated Other Comprehensive Income December 31, 2019 $ 509,582 $ (375,327 ) $ — $ 134,255 Other comprehensive income (loss) (25,925 ) 23,853 5,398 3,326 December 31, 2020 483,657 (351,474 ) 5,398 137,581 Other comprehensive income (loss) (11,256 ) 8,455 — (2,801 ) December 31, 2021 $ 472,401 $ (343,019 ) $ 5,398 $ 134,780 |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2021 | |
Employees Benefit Plans [Abstract] | |
Employee Benefit Plans | NOTE 20. The Corporation has a defined contribution pension plan covering a significant number of its employees. Under this plan, the Corporation matched individual contributions up to 1 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2021 | |
Related party transactions [abstract] | |
Related Party Transactions | NOTE 21. Compensation of Key Management Personnel The remuneration of key management personnel is as follows: 2021 2020 Salaries and other benefits $ 6,591 $ 10,031 Equity-settled share-based compensation 5,554 9,148 Cash-settled share-based compensation 18,741 419 $ 30,886 $ 19,598 Key management personnel are comprised of the directors and executive officers of the Corporation. Certain executive officers have entered into employment agreements with Precision that provide termination benefits of up to 24 months base salary plus up to two times targeted incentive compensation upon dismissal without cause. |
Capital Commitments
Capital Commitments | 12 Months Ended |
Dec. 31, 2021 | |
Commitments [Abstract] | |
Capital Commitments | NOTE 22. At December 31, 2021, the Corporation had commitments to purchase property, plant and equipment totaling $137 million (2020 – $113 million). Payments of $42 million for these commitments are expected to be made in 2022, $60 million in 2023 and $35 million in 2024. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of detailed information about financial instruments [abstract] | |
Financial Instruments | NOTE 23. Financial Risk Management The Board of Directors is responsible for identifying the principal risks of Precision’s business and for ensuring the implementation of systems to manage these risks. With the assistance of senior management, who report to the Board of Directors on the risks of Precision’s business, the Board of Directors considers such risks and discusses the management of such risks on a regular basis. Precision has exposure to the following risks from its use of financial instruments: (a) Credit Risk Accounts receivable includes balances from a large number of customers primarily operating in the oil and natural gas industry. The Corporation manages credit risk by assessing the creditworthiness of its customers before providing services and on an ongoing basis, and by monitoring the amount and age of balances outstanding. In some instances, the Corporation will take additional measures to reduce credit risk including obtaining letters of credit and prepayments from customers. When indicators of credit problems appear, the Corporation takes appropriate steps to reduce its exposure including negotiating with the customer, filing liens and entering into litigation. For the year ended December 31, 2021, revenue from transactions with one of Precision’s contract drilling customers exceeded 10% of consolidated revenue. Revenue from this customer accounted for 10% (2020 – $12%) of consolidated revenue. No other customers exceeded 10% of consolidated revenue for the year. In addition, Precision’s most significant customer accounted for $16 The movement in the expected credit loss allowance during the year was as follows: 2021 2020 Balance, January 1, $ 862 $ 929 Impairment loss recognized 29 812 Amounts written-off (70 ) (479 ) Impairment loss reversed (231 ) (396 ) Effect of movement in exchange rates (5 ) (4 ) Balance, December 31, $ 585 $ 862 The ageing of trade receivables at December 31 was as follows: 2021 2020 Gross Provision for Impairment Gross Provision for Impairment Not past due $ 117,618 $ 1 $ 66,191 $ 1 Past due 0 – 30 days 27,235 5 35,060 8 Past due 31 – 120 days 8,524 474 11,649 26 Past due more than 120 days 105 105 1,895 827 $ 153,482 $ 585 $ 114,795 $ 862 (b) Interest Rate Risk Interest rate risk is the risk that future cash flows will fluctuate as a result of changes in market interest rates. Precision had exposure to interest rate fluctuations on amounts drawn on its Senior Credit Facility and Real Estate Credit Facility as they are subject to floating rates of interest. At December 31, 2021, Precision had drawn US$118 million on its Senior Credit Facility (2020 – US$75 million) and $31 million (2020 – $13 million) on its Real Estate Credit Facilities. As at December 31, 2021, a 1% change to the interest rate would have a $2 million impact on net loss The interest rate on Precision’s unsecured senior notes is fixed and is not subject to interest rate risk. (c) Foreign Currency Risk The Corporation is primarily exposed to foreign currency fluctuations in relation to the working capital of its foreign operations and certain long-term debt facilities of its Canadian operations. The Corporation has no significant exposures to foreign currencies other than the U.S. dollar. The Corporation monitors its foreign currency exposure and attempts to minimize the impact by aligning appropriate levels of U.S. denominated debt with cash flows from U.S. based operations. The following financial instruments were denominated in U.S. dollars: 2021 2020 Canadian Foreign Canadian Foreign Cash US $ 2,398 US $ 17,382 US $ 35,257 US $ 26,057 Accounts receivable 14 115,614 — 98,298 Accounts payable and accrued liabilities (29,427 ) (81,971 ) (18,727 ) (59,704 ) Long-term liabilities, excluding long-term incentive plans (1) — (14,781 ) — (16,197 ) Net foreign currency exposure US $ (27,015 ) US $ 36,244 US $ 16,530 US $ 48,454 Impact of $0.01 change in the U.S. dollar to Canadian dollar exchange rate on net earnings (loss) $ (270 ) $ — $ 165 $ — Impact of $0.01 change in the U.S. dollar to Canadian dollar exchange rate on comprehensive loss $ — $ 362 $ — $ 485 (1) Excludes U.S. dollar long-term debt that has been designated as a hedge of the Corporation’s net investment in certain self-sustaining foreign operations. (d) Liquidity Risk Liquidity risk is the exposure of the Corporation to the risk of not being able to meet its financial obligations as they become due. The Corporation manages liquidity risk by monitoring and reviewing actual and forecasted cash flows to ensure there are available cash resources to meet these needs. The following are the contractual maturities of the Corporation’s financial liabilities and other contractual commitments as at December 31, 2021: 2022 2023 2024 2025 2026 Thereafter Total Accounts payable and accrued liabilities $ 224,123 $ — $ — $ — $ — $ — $ 224,123 Share-based compensation 18,414 24,331 24,742 — — — 67,487 Long-term debt 2,223 2,223 2,223 160,257 453,403 505,784 1,126,113 Interest on long-term debt (1) 72,147 72,071 71,996 69,433 36,196 70,995 392,838 Commitments 53,030 69,631 44,068 5,688 4,823 2,391 179,631 Total $ 369,937 $ 168,256 $ 143,029 $ 235,378 $ 494,422 $ 579,170 $ 1,990,192 (1) Excludes amortization of long-term debt issue costs. Fair Values The carrying value of cash, accounts receivable, and accounts payable and accrued liabilities approximates their fair value due to the relatively short period to maturity of the instruments. Amounts drawn on the Senior Credit Facility and Real Estate Credit Facilities, measured at amortized cost, approximate fair value as this indebtedness is subject to floating rates of interest. The fair value of the unsecured senior notes at December 31, 2021 was approximately $969 million (2020 – $1,023 million). Financial assets and liabilities recorded or disclosed at fair value in the consolidated statements of financial position are categorized based on the level of judgement associated with the inputs used to measure their fair value. Hierarchical levels are based on the amount of subjectivity associated with the inputs in the fair determination and are as follows: Level I – Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. Level II – Inputs (other than quoted prices included in Level I) are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life. Level III – Inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. The estimated fair value of Unsecured Senior Notes is based on level II inputs. The fair value is estimated considering the risk free interest rates on government debt instruments of similar maturities, adjusted for estimated credit risk, industry risk and market risk premiums. |
Capital Management
Capital Management | 12 Months Ended |
Dec. 31, 2021 | |
Capital Management [Abstract] | |
Capital Management | NOTE 24. The Corporation’s strategy is to carry a capital base to maintain investor, creditor and market confidence and to sustain future development of the business. The Corporation seeks to maintain a balance between the level of long-term debt and shareholders’ equity to ensure access to capital markets to fund growth and working capital given the cyclical nature of the oilfield services sector. The Corporation strives to maintain a conservative ratio of long-term debt to long-term debt plus equity. As at December 31, 2021 and 2020, these ratios were as follows: 2021 2020 Long-term debt $ 1,106,794 $ 1,236,210 Shareholders’ equity 1,225,555 1,406,640 Total capitalization $ 2,332,349 $ 2,642,850 Long-term debt to long-term debt plus equity ratio 0.47 0.47 As at December 31, 2021, liquidity remained sufficient as Precision had $41 million (2020 – $109 million) in cash and access to the US$500 million Senior Credit Facility (2020 – US$500 million) and $97 million (2020 – $97 million) secured operating facilities. As at December 31, 2021, US$118 million (2020 – US$75 million) was drawn on the Senior Credit Facility with available credit further reduced by US$33 million (2020 – US$32 million) in outstanding letters of credit. Availability of the $40 million secured operating facility and US$30 million secured facility for the issuance of letters of credit and performance and bid bonds were reduced by outstanding letters of credit of $7 million (2020 – $7 million) and US$3 million (2020 – US$2 million), respectively. There were no amounts drawn on the US$15 million (2020 – nil) secured operating facility. |
Supplemental Information
Supplemental Information | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Of Supplemental Information [Abstract] | |
Supplemental Information | NOTE 25. Components of changes in non-cash 2021 2020 Accounts receivable $ (50,255 ) $ 103,857 Inventory 1,993 5,181 Accounts payable and accrued liabilities 44,986 (53,666 ) $ (3,276 ) $ 55,372 Pertaining to: Operations $ (13,018 ) $ 55,391 Investments 9,742 (19 ) The components of accounts receivable were as follows: 2021 2020 Trade $ 152,897 $ 113,933 Accrued trade 26,731 16,769 Prepaids and other 76,112 76,507 $ 255,740 $ 207,209 The components of accounts payable and accrued liabilities were as follows: 2021 2020 Accounts payable $ 90,750 $ 56,922 Accrued liabilities: Payroll 68,953 44,533 Other 64,420 49,502 $ 224,123 $ 150,957 Precision presents expenses in the consolidated statements of loss 2021 2020 Wages, salaries and benefits $ 482,695 $ 438,209 Wage subsidies (24,108 ) (26,297 ) Purchased materials, supplies and services 278,743 240,591 Share-based compensation 56,745 19,847 $ 794,075 $ 672,350 Allocated to: Operating expense $ 698,144 $ 583,420 General and administrative 95,931 70,869 Restructuring — 18,061 $ 794,075 $ 672,350 |
Contingencies and Guarantees
Contingencies and Guarantees | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of contingent liabilities [abstract] | |
Contingencies and Guarantees | NOTE 26. The business and operations of the Corporation are complex and the Corporation has executed a number of significant financings, business combinations, acquisitions and dispositions over the course of its history. The computation of income taxes payable as a result of these transactions involves many complex factors as well as the Corporation’s interpretation of relevant tax legislation and regulations. The Corporation’s management believes that the provision for income tax is adequate and in accordance with IFRS and applicable legislation and regulations. However, there are tax filing positions that have been and can still be the subject of review by taxation authorities who may successfully challenge the Corporation’s interpretation of the applicable tax legislation and regulations, with the result that additional taxes could be payable by the Corporation. The Corporation, through the performance of its services, product sales and business arrangements, is sometimes named as a defendant in litigation. The outcome of such claims against the Corporation is not determinable at this time; however, their ultimate resolution is not expected to have a material adverse effect on the Corporation. The Corporation has entered into agreements indemnifying certain parties primarily with respect to tax and specific third-party claims associated with businesses sold by the Corporation. Due to the nature of the indemnifications, the maximum exposure under these agreements cannot be estimated. No amounts have been recorded for the indemnities as the Corporation’s obligations under them are not probable or determinable. |
Long-Term Debt Guarantors
Long-Term Debt Guarantors | 12 Months Ended |
Dec. 31, 2021 | |
Long Term Debt Guarantor Disclosure [Abstract] | |
Long-Term Debt Guarantors | NOTE 27. Precision Drilling Corporation (Parent) issued registered unsecured senior notes in 2017 and 2021 which are fully and unconditionally guaranteed by certain U.S. and Canadian subsidiaries (Guarantor Subsidiaries) that also guaranteed the Senior Credit Facility. These Guarantor Subsidiaries are directly or indirectly wholly-owned by the Parent. The following is a description of the terms and conditions of the guarantees with respect to the unsecured senior notes for which Precision is the Parent issuer and Guarantor Subsidiaries (Obligor Group) provides a full and unconditional guarantee. As at December 31, 2021, Precision had $946 million principal amount of unsecured senior notes outstanding, $440 million due in 2026 and $506 million due in 2029, all of which is guaranteed by the Guarantor Subsidiaries. The Guarantor Subsidiaries jointly and severally, fully, unconditionally, and irrevocably guarantees the payment of the principal and interest on the unsecured senior notes when they become due, whether at maturity or otherwise. The guarantee is unsecured and ranks senior with all of the Guarantor Subsidiaries’ other unsecured obligations. The Guarantor Subsidiaries will be released and relieved of its obligations under the guarantees after the obligations to the holders are satisfied in accordance with the applicable indentures. Summarized Financial Information The following tables include summarized financial information for the Obligor Group on a combined basis after elimination of (i) intercompany transactions and balances within the Obligor Group; (ii) equity in earnings from investments in the non-guarantor Statements of Loss Parent and Guarantor Subsidiaries 2021 2020 Revenue $ 844,619 $ 752,794 Expenses 690,149 548,991 Earnings before income taxes, loss (gain) on redemption and repurchase of unsecured senior notes, loss on investments and other assets, finance charges, foreign exchange, gain on asset disposals, and depreciation and amortization 154,470 203,803 Net loss (171,030 ) (144,086 ) Statements of Financial Position Parent and Guarantor Subsidiaries 2021 2020 Assets Current assets $ 219,013 $ 227,265 Property, plant and equipment 1,909,951 2,085,460 Other non-current 79,033 79,104 Parent and Guarantor Subsidiaries 2021 2020 Liabilities Current liabilities $ 200,784 $ 123,472 Long-term debt 1,106,794 1,236,210 Other non-current 87,411 86,303 Excluded from the statements of loss and statements of financial position above are the following intercompany transactions and balances that the Obligor Group had with the non-guarantor Parent and Guarantor Subsidiaries 2021 2020 Assets Accounts receivable, intercompany $ 34,373 $ 35,500 Short-term advances to affiliates 11,686 13,359 Parent and Guarantor Subsidiaries 2021 2020 Liabilities Accounts payable and accrued liabilities, intercompany $ 33,820 $ 25,374 Long-term advances from affiliates 128,606 89,830 |
Subsidiaries
Subsidiaries | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of subsidiaries [abstract] | |
Subsidiaries | NOTE 28. Significant Subsidiaries Ownership Interest Country of Incorporation 2021 2020 Precision Limited Partnership Canada 100 % 100 % Precision Drilling Canada Limited Partnership Canada 100 % 100 % Precision Diversified Oilfield Services Corp. Canada 100 % 100 % Precision Drilling (US) Corporation United States 100 % 100 % Precision Drilling Holdings Company United States 100 % 100 % Precision Drilling Company LP United States 100 % 100 % Precision Completion & Production Services Ltd. United States 100 % 100 % Grey Wolf Drilling Limited Barbados 100 % 100 % Grey Wolf Drilling (Barbados) Ltd. Barbados 100 % 100 % |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Of Significant Accounting Policies [Abstract] | |
Basis of Consolidation | (a) Basis of Consolidation These consolidated financial statements include the accounts of the Corporation and all of its subsidiaries and partnerships, substantially all of which are wholly-owned. The consolidated financial statements of the subsidiaries are prepared for the same period as the parent entity, using consistent accounting policies. All significant intercompany balances and transactions and any unrealized gains and losses arising from intercompany transactions, have been eliminated. Subsidiaries are entities controlled by the Corporation. Control exists when Precision has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. In assessing control, potential voting rights that currently are exercisable are considered. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases. Precision does not hold investments in any companies where it exerts significant influence and does not hold interests in any special-purpose entities. |
Cash | (b) Cash Cash consists of cash and short-term investments with original maturities of three months or less. |
Inventory | (c) Inventory Inventory is primarily comprised of operating supplies and carried at the lower of average cost, being the cost to acquire the inventory, and net realizable value. Inventory is charged to operating expenses as items are sold or consumed at the amount of the average cost of the item. |
Property, Plant and Equipment | (d) Property, Plant and Equipment Property, plant and equipment are carried at cost, less accumulated depreciation and any accumulated impairment losses. Cost includes an expenditure that is directly attributable to the acquisition of the asset. The cost of self-constructed assets includes the cost of materials and direct labour, any other costs directly attributable to bringing the assets to a working condition for their intended use, and borrowing costs on qualifying assets. The cost of replacing a part of an item of property, plant and equipment is recognized in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to the Corporation, and its cost can be measured reliably. The carrying amount of the replaced part is derecognized. The costs of the day-to-day Property, plant, and equipment are depreciated as follows: Expected Life Salvage Value Basis of Depreciation Drilling rig equipment: – Power & Tubulars 5 years – straight-line – Dynamic 10 years – straight-line – Structural 20 years 10% straight-line Service rig equipment 20 years 10% straight-line Drilling rig spare equipment up to 15 years – straight-line Service rig spare equipment up to 15 years – straight-line Rental equipment up to 15 years 0 to 25% straight-line Other equipment 3 to 10 years – straight-line Light duty vehicles 4 years – straight-line Heavy duty vehicles 7 to 10 years – straight-line Buildings 10 to 20 years – straight-line Property, plant and equipment are depreciated based on estimates of useful lives and salvage values. These estimates consider data and information from various sources including vendors, industry practice, and Precision’s own historical experience and may change as more experience is gained, market conditions shift, or technological advancements are made. Gains and losses on disposal of an item of property, plant and equipment are determined by comparing the proceeds from disposal to the carrying amount of property, plant and equipment, and are recognized in the consolidated statements of loss. Determination of which parts of the drilling rig equipment represent significant cost relative to the entire rig and identifying the consumption patterns along with the useful lives of these significant parts, are matters of judgement. This determination can be complex and subject to differing interpretations and views, particularly when rig equipment comprises individual components for which different depreciation methods or rates are appropriate. The estimated useful lives, residual values and method and components of depreciation are reviewed annually, and adjusted prospectively, if appropriate. |
Intangibles | (e) Intangibles Intangible assets that are acquired by the Corporation with finite lives are initially recorded at estimated fair value and subsequently measured at cost less accumulated amortization and any accumulated impairment losses. Subsequent expenditures are capitalized only when they increase the future economic benefits of the specific asset to which they relate. Intangible assets are amortized based on estimates of useful lives. These estimates consider data and information from various sources including vendors and Precision’s own historical experience and may change as more experience is gained or technological advancements are made. Amortization is recognized in net earnings using the straight-line method over the estimated useful lives of the respective assets. Precision’s loan commitment fees are amortized over the term of the respective facility. Software is amortized over its expected useful life of up to 10 years The estimated useful lives and methods of amortization are reviewed annually and adjusted prospectively if appropriate. |
Impairment of Non-Financial Assets | (f) Impairment of Non-Financial The carrying amounts of the Corporation’s non-financial If any such indication exists, then the asset or CGU’s recoverable amount is estimated. Judgement is required when evaluating whether a CGU has indications of impairment. For CGUs that contain goodwill and other intangible assets that have indefinite lives or that are not yet available for use, an impairment test is, at a minimum, completed annually as of December 31. The recoverable amount of an asset or a CGU is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using an after-tax An impairment loss is recognized if the carrying amount of an asset or a CGU exceeds its estimated recoverable amount. Impairment losses are recognized in net earnings. Impairment losses recognized in respect of CGUs are allocated first to reduce the carrying amount of any goodwill allocated to the CGU and then to reduce the carrying amounts of the other assets in the CGU on a pro rata basis. An impairment loss in respect of goodwill is not reversed. In respect of other assets, impairment losses recognized in prior years are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized. |
Borrowing Costs | (g) Borrowing Costs Interest and borrowing costs that are directly attributable to the acquisition, construction or production of assets that take a substantial period of time to prepare for their intended use are capitalized as part of the cost of those assets. Capitalization ceases during any extended period of suspension of construction or when substantially all activities necessary to prepare the asset for its intended use are complete. All other interest and borrowing costs are recognized in net earnings in the period in which they are incurred. |
Income Taxes | (h) Income Taxes Income tax expense is recognized in net earnings except to the extent that it relates to items recognized directly in equity, in which case it is recognized in equity. Current tax is the expected tax payable or receivable on the taxable earnings or loss for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years. Deferred tax is recognized using the asset and liability method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognized on the initial recognition of assets or liabilities in a transaction that is not a business combination. In addition, deferred tax is not recognized for taxable temporary differences arising on the initial recognition of goodwill. Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, based on the laws that have been enacted or substantively enacted at the reporting date. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in net earnings in the period that includes the date of enactment or substantive enactment. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset and they relate to taxes levied by the same tax authority on the same taxable entity, or on different tax entities that are expected to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realized simultaneously. A deferred tax asset is recognized to the extent that it is probable that future taxable profits will be available against which the temporary difference can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized. The Corporation is subject to taxation in numerous jurisdictions. Uncertainties exist with respect to the interpretation of complex tax regulations and requires significant judgement. Differences arising between the actual results and the assumptions made, or future changes to such assumptions, could necessitate future adjustments to taxable income and expense already recorded. |
Revenue from Contracts with Customers | (i) Revenue from Contracts with Customers Precision recognizes revenue from a variety of sources. In general, customer invoices are issued upon rendering all performance obligations for an individual well-site job. Under the Corporation’s standard contract terms, customer payments are to be received within 30 days of the customer’s receipt of an invoice. Contract Drilling Services The Corporation contracts individual drilling rig packages, including crews and support equipment, to its customers. Depending on the customer’s drilling program, contracts may be for a single well, multiple wells or a fixed term. Revenue from contract drilling services is recognized over time from spud to rig release on a daily basis. Operating days are measured through industry standard tour sheets that document the daily activity of the rig. Revenue is recognized at the applicable day rate for each well, based on rates specified in the drilling contract. The Corporation provides services under turnkey contracts, whereby Precision is required to drill a well to an agreed upon depth under specified conditions for a fixed price, regardless of the time required or problems encountered in drilling the well. Revenue from turnkey drilling contracts is recognized over time using the input method based on costs incurred to date in relation to estimated total contract costs, as that most accurately depicts the Corporation’s performance. The Corporation also provided directional drilling services, which included the provision of directional drilling equipment, tools and personnel to the wellsite, and performance of daily directional drilling services. Directional drilling revenue was recognized over time, upon the daily completion of operating activities. Operating days were measured through daily tour sheets. Revenue was recognized at the applicable day rate, as stipulated in the directional drilling contract. The Corporation’s directional drilling business was sold in July 2021. Completion and Production Services The Corporation provides a variety of well completion and production services including well servicing. In general, service rigs do not involve long-term contracts or penalties for termination. Revenue is recognized daily upon completion of services. Operating days are measured through daily tour sheets and field tickets. Revenue is recognized at the applicable daily or hourly rate, as stipulated in the contract. The Corporation offers its customers a variety of oilfield equipment for rental. Rental revenue is recognized daily at the applicable rate stated in the rental contract. Rental days are measured through field tickets. The Corporation provides accommodation and catering services to customers in remote locations. Customers contract these services either as a package or individually for a fixed term. For accommodation services, the Corporation supplies camp equipment and revenue is recognized over time on a daily basis, once the equipment is on-site |
Employee Benefit Plans | (j) Employee Benefit Plans Precision sponsors various defined contribution retirement plans for its employees. The Corporation’s contributions to defined contribution plans are expensed as employees earn the entitlement. |
Provisions | (k) Provisions Provisions are recognized when the Corporation has a present obligation as a result of a past event, when it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and when a reliable estimate can be made of the amount of the obligation. The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows. |
Share Based Incentive Compensation Plans | (l) Share-Based Incentive Compensation Plans The Corporation has established several cash-settled share-based incentive compensation plans for non-management re-measured The Corporation has an employee share purchase plan that allows eligible employees to purchase common shares through payroll deductions. Prior to January 1, 2012, the Corporation had an equity-settled deferred share unit plan whereby non-management The Corporation has a share option plan for certain eligible employees. Under this plan, the fair value of share purchase options is calculated at the date of grant using the Black-Scholes option pricing model, and that value is recorded as compensation expense over the grant’s vesting period with an offsetting credit to contributed surplus. A forfeiture rate is estimated on the grant date and is adjusted to reflect the actual number of options that vest. Upon exercise of the equity purchase option, the associated amount is reclassified from contributed surplus to shareholders’ capital. Consideration paid by employees upon exercise of the equity purchase options is credited to shareholders’ capital. |
Foreign Currency Translation | (m) Foreign Currency Translation Transactions of the Corporation’s individual entities are recorded in the currency of the primary economic environment in which it operates (its functional currency). Transactions in currencies other than the entities’ functional currency are translated at rates in effect at the time of the transaction. At each period end, monetary assets and liabilities are translated at the prevailing period-end Non-monetary For the purpose of preparing the Corporation’s consolidated financial statements, the financial statements of each foreign operation that does not have a Canadian dollar functional currency are translated into Canadian dollars. Assets and liabilities are translated at exchange rates in effect at the period end date. Revenues and expenses are translated using average exchange rates for the month of the respective transaction. Gains or losses resulting from these translation adjustments are recognized initially in other comprehensive income and reclassified from equity to net earnings on disposal or partial disposal of the foreign operation. |
Per Share Amounts | (n) Per Share Amounts Basic per share amounts are calculated using the weighted average number of shares outstanding during the period. Diluted per share amounts are calculated by using the treasury stock method for equity-based compensation arrangements. The treasury stock method assumes that any proceeds obtained on exercise of equity-based compensation arrangements would be used to purchase common shares at the average market price during the period. The weighted average number of shares outstanding is then adjusted by the difference between the number of shares issued from the exercise of equity-based compensation arrangements and shares repurchased from the related proceeds. |
Financial Instruments | (o) Financial Instruments i) Non-Derivative Financial assets and liabilities are classified and measured at amortized cost, fair value through other comprehensive income or fair value through net earnings. The classification of financial assets and liabilities is generally based on the business model in which the asset or liability is managed and its contractual cash flow characteristics. Financial assets held within a business model whose objective is to collect contractual cash flows and whose contractual terms give rise to cash flows on specified dates that are solely payments of principal and interest on the principal amount outstanding are measured at amortized cost. After their initial fair value measurement, accounts receivable, accounts payable and accrued liabilities and long-term debt are classified and measured at amortized cost using the effective interest rate method. Upon initial recognition of a non-derivative ECL ii) Derivative Financial Instruments: The Corporation may enter into certain financial derivative contracts in order to manage the exposure to market risks from fluctuations in interest rates or exchange rates. These instruments are not used for trading or speculative purposes. Precision has not designated its financial derivative contracts as effective accounting hedges, and thus has not applied hedge accounting, even though it considers certain financial contracts to be economic hedges. As a result, financial derivative contracts are classified as fair value through net earnings and are recorded on the statement of financial position at estimated fair value. Transaction costs are recognized in net earnings when incurred. Derivatives embedded in financial assets are never separated. Rather, the financial instrument as a whole is assessed for classification. Derivatives embedded in financial liabilities are separated from the host contract and accounted for separately when their economic characteristics and risks are not closely related to the host contract. Embedded derivatives in financial liabilities are recorded on the statement of financial position at estimated fair value and changes in the fair value are recognized in earnings. |
Hedge Accounting | (p) Hedge Accounting The Corporation utilizes foreign currency long-term debt to hedge its exposure to changes in the carrying values of the Corporation’s net investment in certain foreign operations from fluctuations in foreign exchange rates. To be accounted for as a hedge, the foreign currency long-term debt must be designated and documented as a hedge and must be effective at inception and on an ongoing basis. The documentation defines the relationship between the foreign currency long-term debt and the net investment in the foreign operations, as well as the Corporation’s risk management objective and strategy for undertaking the hedging transaction. The Corporation formally assesses, both at inception and on an ongoing basis, whether the changes in fair value of the foreign currency long-term debt is highly effective in offsetting changes in fair value of the net investment in the foreign operations. The portion of gains or losses on the hedging item determined to be an effective hedge is recognized in other comprehensive income, net of tax, and is limited to the translation gain or loss on the net investment, while ineffective portions are recorded through net earnings. A reduction in the fair value of the net investment in the foreign operations or increase in the foreign currency long-term debt balance may result in a portion of the hedge becoming ineffective. If the hedging relationship ceases to be effective or is terminated, hedge accounting is not applied to subsequent gains or losses. The amounts recognized in other comprehensive income are reclassified to net earnings and the corresponding exchange gains or losses arising from the translation of the foreign operation are recorded through net earnings upon dissolution or substantial dissolution of the foreign operation. |
Leases | (q) Leases At inception, Precision assesses whether its contracts contain a lease. A contract contains a lease if it conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The assessment of whether a contract conveys the right to control the use of an identified asset considers whether: ☐ the contract involves the use of an identified asset and the substantive substitution rights of the supplier. If the supplier has a substantive substitution right, then the asset is not identified; ☐ the lessee’s right to obtain substantially all of the economic benefits from the use of the asset; and ☐ the lessee’s right to direct the use of the asset, including decision-making to change how and for what purpose the asset is used. At inception or on reassessment of a contract that contains a lease component, Precision allocates the consideration in the contract to each lease component on the basis of their relative stand-alone prices. Leases in which Precision is a lessee Precision recognizes a right-of-use right-of-use The right-of-use right-of-use right-of-use right-of-use The lease obligation is initially measured at the present value of the minimum lease payments not paid at commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, Precision’s incremental borrowing rate. Generally, Precision uses its incremental borrowing rate as the discount rate for those leases in which it is the lessee. Lease payments included in the measurement of the lease obligation comprise the following: ☐ fixed payments, including in-substance ☐ variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date; ☐ amounts expected to be payable under a residual value guarantee; and ☐ the exercise price under a purchase option that Precision is reasonably certain to exercise, lease payments in an optional renewal period if Precision is reasonably certain to exercise an extension option, and penalties for early termination of a lease unless Precision is reasonably certain not to terminate early. The lease obligation is measured at amortized cost using the effective interest method. The measurement of lease obligations require the use of certain estimates and assumptions including discount rates, exercise of lease term extension options, and escalating lease rates. It is remeasured when there is a change in: ☐ future lease payments arising from a change in an index or rate; ☐ the estimated amount expected to be payable under a residual value guarantee; or ☐ the assessment of whether Precision will exercise a purchase, extension or termination option. When the lease obligation is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use right-of-use Leases in which Precision is a lessor When Precision acts as a lessor, at inception, Precision evaluates the classification as either a finance or operating lease. To classify each lease, Precision makes an overall assessment of whether the lease transfers substantially all of the risks and rewards incidental to ownership of the underlying asset. If this is the case, then the lease is a finance lease; if not, then it is an operating lease. When acting as a sub-lessor, sub-lease sub-lease right-of-use sub-lease If an arrangement contains lease and non-lease |
Government Assistance and Grants | (r) Government Assistance and Grants Precision may receive government grants in the form of transfers of resources in return for past or future compliance with certain conditions relating to operating activities. Government grants are recognized once there is reasonable assurance that Precision will comply with the attached conditions and grants will be received. Government grants are recognized in net earnings on a systematic basis over the periods in which Precision recognizes expenses related to costs for which the grants are intended to compensate. |
Critical Accounting Assumptions and Estimates | (s) Critical Accounting Assumptions and Estimates i) Impairment of Long-Lived Assets At each reporting date, the Corporation reviews the carrying amount of assets in each CGU to determine whether an indicator of impairment exists. The Corporation’s analysis is based on relevant internal and external factors that indicate a CGU may be impaired such as the obsolescence or planned disposal of significant assets, financial performance of the CGU compared to forecasts and consideration of the Corporation’s market capitalization. When indications of impairment exist within a CGU, a recoverable amount is determined and requires assumptions to estimate future discounted cash flows. These estimates and assumptions include future drilling activity and margins and the resulting estimated adjusted earnings before interest, taxes, depreciation and amortization associated with the CGU and the discount rate used to present value the estimated cash flows. In selecting a discount rate, the Corporation uses observable market data inputs to develop a rate that the Corporation believes approximates the discount rate of market participants. Although the Corporation believes the assumptions and estimates are reasonable and consistent with current conditions, internal planning, and expected future operations, such assumptions and estimations are subject to significant uncertainty and judgement. ii) Income Taxes Significant estimation and assumptions are required in determining the provision for income taxes. The recognition of deferred tax assets in respect of deductible temporary differences and unused tax losses and credits is based on the Corporation’s estimation of future taxable profit against which these differences, losses and credits may be used. The assessment is based upon existing tax laws and estimates of the Corporation’s future taxable income. These estimates may be materially different from the actual final tax return in future periods. |
Accounting Standards Implemented in 2021 | (t) Accounting Standards Adopted in 2021 i) Simplification of Financial Disclosures about Guarantors On January 1, 2021, the Corporation adopted the Securities and Exchange Commission’s amendments to the financial disclosure requirements for guarantors and issuers of guaranteed securities, as specified in Rule 3-10 S-X. non-financial |
Accounting Standards, Interpretations and Amendments to Existing Standards not yet Effective | (u) Accounting Standards and Amendments not yet Effective The IASB has issued a number of new standards and amendments to existing standards that will become effective for periods subsequent to December 31, 2021. Accordingly, these new standards and amendments were not applied when preparing these consolidated financial statements. For each standard, Precision has assessed or is in the process of assessing the impact these new standards and amendments will have on its consolidated financial statements. Standards and Amendments Effective for periods beginning on or after Impact to Precision Drilling Corporation Annual improvements to IFRS Standards 2018–2020 January 1, 2022 Not material Property, Plant and Equipment: Proceeds before Intended Use (Amendments to IAS 16) January 1, 2022 Review in-progress Onerous Contracts - Cost of Fulfilling a Contract (Amendments to IAS 37) January 1, 2022 Review in-progress IFRS 17 Insurance Contracts January 1, 2023 Not material Definition of Accounting Estimates (Amendments to IAS 8) January 1, 2023 Review in-progress Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Amendments to IAS 12) January 1, 2023 Review in-progress Disclosure of Accounting Policies (Amendments of IAS 1) January 1, 2023 Review in-progress Classification of liabilities as current or non-current January 1, 2023 Review in-progress |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Of Significant Accounting Policies [Abstract] | |
Schedule of Property, Plant and Equipment Depreciation | Property, plant, and equipment are depreciated as follows: Expected Life Salvage Value Basis of Depreciation Drilling rig equipment: – Power & Tubulars 5 years – straight-line – Dynamic 10 years – straight-line – Structural 20 years 10% straight-line Service rig equipment 20 years 10% straight-line Drilling rig spare equipment up to 15 years – straight-line Service rig spare equipment up to 15 years – straight-line Rental equipment up to 15 years 0 to 25% straight-line Other equipment 3 to 10 years – straight-line Light duty vehicles 4 years – straight-line Heavy duty vehicles 7 to 10 years – straight-line Buildings 10 to 20 years – straight-line |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Of Revenue Explanatory [Abstract] | |
Summary of Reconciliation of Disaggregated Revenue by Reportable Segment | The following table includes a reconciliation of disaggregated revenue by reportable segment (Note 6). Revenue has been disaggregated by primary geographical market and type of service provided. Year ended December 31, 2021 Contract Drilling Services Completion and Production Services Corporate and Other Inter- Segment Eliminations Total United States $ 385,330 $ 12,700 $ — $(6) $ 398,024 Canada 347,562 100,788 — (4,578) 443,772 International 145,051 — — — 145,051 $ 877,943 $ 113,488 $ — $ (4,584) $ 986,847 Day rate/hourly services $ 845,832 $ 113,488 $ — $ (462) $ 958,858 Shortfall payments/idle but contracted 543 — — — 543 Turnkey drilling services 17,086 — — — 17,086 Directional services (1) 7,871 — — — 7,871 Other 6,611 — — (4,122) 2,489 $ 877,943 $ 113,488 $ — $ (4,584) $ 986,847 (1) Directional drilling disposed in the third quarter of 2021. Year ended December 31, 2020 Contract Drilling Services Completion and Production Services Corporate and Other Inter- Segment Eliminations Total United States $ 427,436 $ 16,630 $ — $ (14) $ 444,052 Canada 247,678 60,621 — (2,686) 305,613 International 186,088 — — — 186,088 $ 861,202 $ 77,251 $ — $ (2,700) $ 935,753 Day rate/hourly services $ 779,772 $ 77,251 $ — $ (393) $ 856,630 Shortfall payments/idle but contracted 51,028 — — — 51,028 Turnkey drilling services 14,134 — — — 14,134 Directional services 9,637 — — — 9,637 Other 6,631 — — (2,307) 4,324 $ 861,202 $ 77,251 $ — $ (2,700) $ 935,753 |
Segmented Information (Tables)
Segmented Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of operating segments [abstract] | |
Summary of Operating Segments | The Corporation operates primarily in Canada, the United States and certain international locations, in two industry segments; Contract Drilling Services and Completion and Production Services. Contract Drilling Services includes drilling rigs, directional drilling (disposed in the third quarter of 2021), procurement and distribution of oilfield supplies, and the manufacture, sale and repair of drilling equipment. Completion and Production Services includes service rigs, oilfield equipment rental, and camp and catering services. Year ended December 31, 2021 Contract Drilling Services Completion and Production Services Corporate and Other Inter- Segment Eliminations Total Revenue $ 877,943 $ 113,488 $ — $ (4,584) $ 986,847 Operating earnings (loss) (16,867) 8,927 (73,098) — (81,038) Depreciation and amortization 256,072 15,405 10,849 — 282,326 Gain on asset disposals (7,673) (525) (318) — (8,516) Total assets 2,392,382 127,233 142,137 — 2,661,752 Capital expenditures 70,998 4,452 491 — 75,941 Year ended December 31, 2020 Contract Drilling Services Completion and Production Services Corporate and Other Inter- Segment Eliminations Total Revenue $ 861,202 $ 77,251 $ — $ (2,700) $ 935,753 Operating earnings (loss) 22,207 (3,671) (59,524) — (40,988) Depreciation and amortization 288,389 16,375 11,558 — 316,322 Gain on asset disposals (10,171) (1,447) (313) — (11,931) Total assets 2,571,397 132,771 194,710 — 2,898,878 Capital expenditures 57,741 3,362 489 — 61,592 |
Summary of Operating Segments by Geographic Locations | The Corporation’s operations are carried on in the following geographic locations: Year ended December 31, 2021 United States Canada International Total Revenue $ 398,024 $ 443,772 $ 145,051 $ 986,847 Total assets 1,247,173 959,163 455,416 2,661,752 Precision Drilling Corporation 2021 Annual Report 17 Year ended December 31, 2020 United States Canada International Total Revenue $ 444,052 $ 305,613 $ 186,088 $ 935,753 Total assets 1,339,945 1,053,921 505,012 2,898,878 |
Summary of Detailed Information About Reconciliation of Operating Loss to Net Loss Explanatory | A reconciliation of operating loss to net loss is as follows: 2021 2020 Operating earnings (loss) $ (81,038) $ (40,988) Deduct: Foreign exchange 393 4,542 Finance charges 91,431 107,468 Loss on investments and other assets 400 — Loss (gain) on redemption and repurchase of unsecured senior notes 9,520 (43,814) Income taxes (5,396) 10,954 Net loss $ (177,386) $ (120,138) |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of detailed information about property, plant and equipment [abstract] | |
Schedule of Property, Plant and Equipment | 2021 2020 Cost $ 6,503,721 $ 6,563,206 Accumulated depreciation (4,245,330 ) (4,090,523 ) $ 2,258,391 $ 2,472,683 Rig equipment 2,074,185 2,269,794 Rental equipment 20,597 27,359 Other equipment 17,088 27,318 Vehicles 3,204 4,978 Buildings 44,009 49,451 Assets under construction 67,884 60,572 Land 31,424 33,211 $ 2,258,391 $ 2,472,683 Cost Rig Equipment Rental Equipment Other Equipment Vehicles Buildings Assets Under Construction Land Total Balance, December 31, 2019 $ 6,109,383 $ 110,307 $ 185,319 $ 38,506 $ 126,177 $ 67,740 $ 33,547 $ 6,670,979 Additions 10,375 — 350 — — 50,810 — 61,535 Disposals (78,028 ) (4,664 ) (3,990 ) (2,789 ) (3,053 ) — — (92,524 ) Reclassifications 55,322 — 521 — — (55,843 ) — — Effect of foreign currency exchange differences (71,285 ) (619 ) (1,196 ) (367 ) (846 ) (2,135 ) (336 ) (76,784 ) Balance, December 31, 2020 6,025,767 105,024 181,004 35,350 122,278 60,572 33,211 6,563,206 Additions 15,288 — 254 — — 60,399 — 75,941 Disposals (100,004 ) (1,822 ) (2,300 ) (543 ) (2,454 ) — (1,674 ) (108,797 ) Reclassifications 47,080 — 188 — — (47,268 ) — — Effect of foreign currency exchange differences (19,815 ) (21 ) (429 ) (127 ) (305 ) (5,819 ) (113 ) (26,629 ) Balance, December 31, 2021 $ 5,968,316 $ 103,181 $ 178,717 $ 34,680 $ 119,519 $ 67,884 $ 31,424 $ 6,503,721 Accumulated Depreciation Rig Equipment Rental Equipment Other Equipment Vehicles Buildings Assets Under Construction Land Total Balance, December 31, 2019 $ 3,598,878 $ 75,870 $ 146,715 $ 30,710 $ 69,343 $ — $ — $ 3,921,516 Depreciation expense 277,799 7,044 12,013 2,790 5,288 — — 304,934 Disposals (73,354 ) (4,631 ) (3,990 ) (2,782 ) (1,319 ) — — (86,076 ) Effect of foreign currency exchange differences (47,350 ) (618 ) (1,052 ) (346 ) (485 ) — — (49,851 ) Balance, December 31, 2020 3,755,973 77,665 153,686 30,372 72,827 — — 4,090,523 Depreciation expense 248,564 6,741 10,410 1,739 4,582 — — 272,036 Disposals (95,977 ) (1,804 ) (2,194 ) (543 ) (1,769 ) — — (102,287 ) Effect of foreign currency exchange differences (14,429 ) (18 ) (273 ) (92 ) (130 ) — — (14,942 ) Balance, December 31, 2021 $ 3,894,131 $ 82,584 $ 161,629 $ 31,476 $ 75,510 $ — $ — $ 4,245,330 |
Intangibles (Tables)
Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of detailed information about intangible assets [abstract] | |
Schedule of Intangibles | 2021 2020 Cost $ 55,108 $ 54,189 Accumulated amortization (31,193 ) (26,523 ) $ 23,915 $ 27,666 Loan commitment fees related to Senior Credit Facility $ 2,067 $ 2,109 Software 21,848 25,557 $ 23,915 $ 27,666 Cost Loan Commitment Fees Software Total Balance, December 31, 2019 $ 15,478 $ 37,938 $ 53,416 Additions 690 57 747 Effect of foreign currency exchange differences — 26 26 Balance, December 31, 2020 16,168 38,021 54,189 Additions 913 — 913 Effect of foreign currency exchange differences — 6 6 Balance, December 31, 2021 $ 17,081 $ 38,027 $ 55,108 Accumulated Amortization Loan Commitment Fees Software Total Balance, December 31, 2019 $ 13,206 $ 8,464 $ 21,670 Amortization expense 853 3,971 4,824 Effect of foreign currency exchange differences — 29 29 Balance, December 31, 2020 14,059 12,464 26,523 Amortization expense 955 3,715 4,670 Balance, December 31, 2021 $ 15,014 $ 16,179 $ 31,193 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Of Long Term Debt [Abstract] | |
Long-Term Debt | 2021 2020 2021 2020 U.S. Denominated Facilities Canadian Facilities and Translated U.S. Facilities Current Portion of Long-Term Debt Canadian Real Estate Credit Facility US$ — US$ — $ 1,333 $ — U.S. Real Estate Credit Facility 704 704 890 896 US$ 704 US$ 704 $ 2,223 $ 896 Long-Term Debt Senior Credit Facility US$ 118,000 US$ 74,650 $ 149,206 $ 95,041 Canadian Real Estate Credit Facility — — 17,667 — U.S. Real Estate Credit Facility 9,093 9,797 11,498 12,474 Unsecured Senior Notes: 7.75% senior notes due 2023 — 285,734 — 363,782 5.25% senior notes due 2024 — 263,205 — 335,099 7.125% senior notes due 2026 347,765 347,765 439,735 442,757 6.875% senior notes due 2029 400,000 — 505,784 — US$ 874,858 US$ 981,151 1,123,890 1,249,153 Less net unamortized debt issue costs (17,096 ) (12,943 ) $ 1,106,794 $ 1,236,210 Senior Facility Unsecured Senior Canadian U.S. Real Debt Issue Total Balance December 31, 2019 $ — $ 1,445,127 $ — $ — $ (17,946 ) $ 1,427,181 Changes from financing cash flows: Redemption / repurchase of unsecured senior notes — (240,793 ) — — — (240,793 ) Repayment of long-term debt (37,243 ) — — (76 ) — (37,319 ) Proceeds from Senior Credit Facility 137,255 — — — — 137,255 Proceeds from Real Estate Credit Facility — — — 13,811 — 13,811 Payment — — — — (354 ) (354 ) Non-cash Gain on redemption / repurchase of unsecured senior notes — (43,814 ) — — — (43,814 ) Amortization of debt issue costs — — — — 5,350 5,350 Foreign exchange adjustment (4,971 ) (18,882 ) — (365 ) 7 (24,211 ) Balance December 31, 2020 $ 95,041 $ 1,141,638 $ — $ 13,370 $ (12,943 ) $ 1,237,106 Current — — — 896 — 896 Long-term 95,041 1,141,638 — 12,474 (12,943 ) 1,236,210 Balance December 31, 202 0 $ 95,041 $ 1,141,638 $ — $ 13,370 $ (12,943 ) $ 1,237,106 Changes from financing cash flows: Proceeds from unsecured senior notes — 482,064 — — — 482,064 Proceeds from Senior Credit Facility 194,277 — — — — 194,277 Proceeds from Real Estate Credit Facility — — 20,000 — — 20,000 Repayment of unsecured senior notes — (676,058 ) — — — (676,058 ) Repayment of Senior Credit Facility (146,930 ) — — — — (146,930 ) Repayment of Real Estate Credit Facility — — (1,000 ) (883 ) — (1,883 ) Payment of debt issue costs — — — — (9,450 ) (9,450 ) Non-cash Loss on redemption / repurchase of unsecured senior notes — 9,520 — — — 9,520 Amortization of debt issue costs — — — — 8,720 8,720 Original issue discount — 3,628 — — (3,427 ) 201 Foreign exchange adjustment 6,818 (15,273 ) — (99 ) 4 (8,550 ) Balance December 31, 2021 $ 149,206 $ 945,519 $ 19,000 $ 12,388 $ (17,096 ) $ 1,109,017 Current — — 1,333 890 — 2,223 Long-term 149,206 945,519 17,667 11,498 (17,096 ) 1,106,794 Balance December 31, 2021 $ 149,206 $ 945,519 $ 19,000 $ 12,388 $ (17,096 ) $ 1,109,017 |
Long-Term Debt Obligations | Precision’s current and long-term debt obligations at December 31, 2021 will mature as follows: 2022 $ 2,223 2023 2,223 2024 2,223 2025 160,257 Thereafter 959,187 $ 1,126,113 |
Schedule of Listing of Currently Applicable Restrictive and Financial Covenants | At December 31, 2021, Precision was in compliance with the covenants of the Senior Credit Facility, Real Estate Credit Facilities and unsecured senior notes. Covenant At December 31, 2021 Senior Credit Facility Consolidated senior debt to consolidated covenant EBITDA (1) ≤ 0.97 Consolidated covenant EBITDA to consolidated interest expense ≥ 2.83 Real Estate Credit Facility Consolidated covenant EBITDA to consolidated interest expense ≥ 2.83 Unsecured Senior Notes Consolidated interest coverage ratio ≥ 2.06 (1) For purposes of calculating the leverage ratio consolidated senior debt only includes secured indebtedness. |
Finance Charges (Tables)
Finance Charges (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Finance Costs [Abstract] | |
Summary of Finance Charges | 2021 2020 Interest: Long-term debt $ 78,921 $ 98,555 Lease obligations 2,764 3,217 Other 80 232 Income (210 ) (739 ) Amortization of debt issue costs 9,876 6,203 Finance charges $ 91,431 $ 107,468 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Of Leases [Abstract] | |
Summary of Right-of-Use-Assets | Precision recognizes right-of-use Real Estate Vehicles and Total Balance, December 31, 2019 $ 54,026 $ 12,116 $ 66,142 Additions 136 3,031 3,167 Derecognition — (2,597 ) (2,597 ) Depreciation (3,900 ) (3,517 ) (7,417 ) Lease remeasurements (6,233 ) 2,602 (3,631 ) Effect of foreign currency exchange differences (340 ) (156 ) (496 ) Balance, December 31, 2020 $ 43,689 $ 11,479 $ 55,168 Additions 514 3,029 3,543 Derecognition — (480 ) (480 ) Depreciation (3,566 ) (3,009 ) (6,575 ) Effect of foreign currency exchange differences (174 ) (42 ) (216 ) Balance, December 31, 2021 $ 40,463 $ 10,977 $ 51,440 |
Expected Non-cancellable Undiscounted Operating Lease Payments | Expected non-cancellable 2021 2020 Less than one year $ 10,782 $ 10,960 One to five years 29,327 29,630 More than five years 2,391 6,590 $ 42,500 $ 47,180 |
Summary of Maturity Analysis of Lease Payments | The following table sets out a maturity analysis of lease payments, showing the undiscounted lease payments to be received subsequent to December 31, 2021. Less than one year $ 198,188 One to five years 61,860 $ 260,048 |
Share Based Compensation Plans
Share Based Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | |
Disclosure of Liability Classified Plans | Liability Classified Plans Restricted Share Units Performance Share Units Executive Non- Management Directors’ Total Balance, December 31, 2019 $ 7,318 $ 2,858 $ — $ 3,336 $ 13,512 Expensed during the period 3,119 2,787 — (1,551 ) 4,355 Reclassification from equity-settled plans — — 6,833 — 6,833 Payments (3,813 ) (894 ) — (176 ) (4,883 ) Balance, December 31, 2020 6,624 4,751 6,833 1,609 19,817 Expensed during the period 17,168 18,634 17,646 3,065 56,513 Reclassification from equity-settled plans — — (3,164 ) — (3,164 ) Payments (5,742 ) (1,861 ) (4,808 ) — (12,411 ) Balance, December 31, 2021 $ 18,050 $ 21,524 $ 16,507 $ 4,674 $ 60,755 Current 11,338 6,182 16,507 — 34,027 Long-term 6,712 15,342 — 4,674 26,728 Balance, December 31, 2021 $ 18,050 $ 21,524 $ 16,507 $ 4,674 $ 60,755 |
Summary of Shares Outstanding Under Share Based Incentive Plans | A summary of the RSUs and PSUs outstanding under these share-based incentive plans is presented below: RSUs Outstanding PSUs Outstanding December 31, 2019 316,904 166,768 Granted 363,253 502,558 Redeemed (127,884 ) (39,028 ) Forfeited (67,491 ) (64,919 ) December 31, 2020 484,782 565,379 Granted 356,928 488,510 Redeemed (216,820 ) (40,515 ) Forfeited (26,734 ) (29,640 ) December 31, 2021 598,156 983,734 |
Summary of Status of Equity Incentive Plan | A summary of the status of the equity incentive plan is presented below: Canadian Share Options Options Outstanding Range of Exercise Prices Weighted Average Exercise Price Options Exercisable December 31, 2019 201,079 $ 87.00 – 286.20 145.88 178,453 Forfeited (52,414 ) 87.00 – 203.00 165.79 December 31, 2020 148,665 87.00 – 286.20 138.86 141,156 Forfeited (33,060 ) 89.20 – 286.20 193.10 December 31, 2021 115,605 $ 87.00 – 146.40 $ 123.35 115,605 U.S. Share Options Options Outstanding Range of Exercise Prices (US$) Weighted Average Exercise Price (US$) Options Exercisable December 31, 2019 318,153 $ 51.20 – 183.60 $ 93.32 217,441 Forfeited (34,360 ) 64.20 – 183.60 151.92 December 31, 2020 283,793 51.20 – 183.60 86.23 239,521 Forfeited (15,950 ) 183.60 – 183.60 183.60 December 31, 2021 267,843 $ 51.20 – 115.80 $ 80.43 257,854 |
Range of Exercise Prices for Options Outstanding | Canadian Share Options Total Options Outstanding Options Exercisable Range of Exercise Prices: Number Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Number Weighted Average Exercise Price $ 87.00 – 117.59 45,590 $ 88.11 2.14 45,590 $ 88.11 117.60 – 146.19 17,035 145.97 2.13 17,035 145.97 146.20 – 146.40 52,980 146.40 0.11 52,980 146.40 $ 87.00 – 146.40 115,605 $ 123.35 1.21 115,605 $ 123.35 |
Deferred Share Units (DSUs) [Member] | |
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | |
Summary of Shares Outstanding Under Share Based Incentive Plans | A summary of the DSUs outstanding under this share-based incentive plan is presented below: Deferred Share Units Outstanding Balance December 31, 2019 89,613 Redeemed (12,039 ) Balance December 31, 2020 77,574 Granted 27,017 Balance December 31, 2021 104,591 |
Deferred Share Units (DSUs) [Member] | Equity-Settled Plans [Member] | |
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | |
Summary of Shares Outstanding Under Share Based Incentive Plans | A summary of this share-based incentive plan is presented below: Deferred Share Units Outstanding December 31, 2019 4,659 Redeemed (3,189 ) December 31, 2020 and 2021 1,470 |
Executive Performance Share Units [Member] | |
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | |
Summary of Shares Outstanding Under Share Based Incentive Plans | A summary of the activity under this share-based incentive plan is presented below: Executive Performance Share Units Outstanding December 31, 2019 368,845 Redeemed (57,442 ) Forfeited (22,696 ) December 31, 2020 288,707 Redeemed (96,355 ) Forfeited (2,388 ) December 31, 2021 189,964 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Net deferred tax assets and liabilities [abstract] | |
Schedule of Provision for Income Taxes | The provision for income taxes differs from that which would be expected by applying statutory Canadian income tax rates. A reconciliation of the difference for the years ended December 31, is as follows: 2021 2020 Loss before income taxes $ (182,782 ) $ (109,184 ) Federal and provincial statutory rates 24 % 25 % Tax at statutory rates $ (43,868 ) $ (27,296 ) Adjusted for the effect of: Non-deductible 1,162 628 Non-taxable (257 ) (6,184 ) Impact of foreign tax rates (1,474 ) (238 ) Withholding taxes 937 813 Taxes related to prior years (1,467 ) (1,531 ) Tax assets not recognized 37,924 44,112 Other 1,647 650 Income tax expense (recovery) $ (5,396 ) $ 10,954 |
Summary of Net Deferred Tax Liability | The net deferred tax liability is comprised of the tax effect of the following temporary differences: 2021 2020 Deferred tax liability: Property, plant and equipment and intangibles $ 359,383 $ 393,631 Debt issue costs 1,457 2,665 Partnership deferrals 11,082 2,532 Other 6,221 6,322 378,143 405,150 Offsetting of assets and liabilities (365,924 ) (383,914 ) $ 12,219 $ 21,236 Deferred tax assets: Losses (expire from time to time up to 204 1 $ 340,406 $ 370,439 Long-term incentive plan 14,264 4,956 Other 12,121 9,617 366,791 385,012 Offsetting of assets and liabilities (365,924 ) (383,914 ) $ 867 $ 1,098 Net deferred tax liability $ 11,352 $ 20,138 |
Summary of Movement in Temporary Differences of Deferred Tax Liabilities | Property, Partnership Other Losses Debt Issue Costs Long-Term Incentive Plan Other Deferred Tax Assets Net Deferred Tax Liability Balance, December 31, 2019 $ 426,934 $ 850 $ 7,926 $ (402,025 ) $ 3,280 $ (6,131 ) $ (10,169 ) $ 20,665 Recognized in net earnings (loss) (28,600 ) 1,682 (1,601 ) 33,141 (615 ) 1,120 537 5,664 Recognized in other comprehensive income — — — (5,398 ) — — — (5,398 ) Effect of foreign currency exchange (4,703 ) — (3 ) 3,843 — 55 15 (793 ) Balance, December 31, 2020 $ 393,631 $ 2,532 $ 6,322 $ (370,439 ) $ 2,665 $ (4,956 ) $ (9,617 ) $ 20,138 Recognized in net earnings (loss) (32,562 ) 8,550 (99 ) 28,528 (1,208 ) (9,291 ) (2,517 ) (8,599 ) Effect of foreign currency exchange (1,686 ) — (2 ) 1,505 — (17 ) 13 (187 ) Balance, December 31, 2021 $ 359,383 $ 11,082 $ 6,221 $ (340,406 ) $ 1,457 $ (14,264 ) $ (12,121 ) $ 11,352 |
Summary of Deferred Tax Asset Not Recognized | Accordingly, the Corporation has not recognized a deferred tax asset for the following items: 2021 2020 Tax losses (Capital) $ 29,363 $ 29,809 Tax losses (Income) 96,671 72,516 Deductible temporary differences 4,153 2,020 Total $ 130,187 $ 104,345 |
Provisions and Other (Tables)
Provisions and Other (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of other provisions [abstract] | |
Disclosure of Provisions and Other | Workers’ Compensation Balance December 31, 2019 $ 11,866 Recovered during the year (750 ) Payment of deductibles and uninsured claims (2,698 ) Effects of foreign currency exchange differences (110 ) Balance December 31, 2020 8,308 Expensed during the year 3,296 Payment of deductibles and uninsured claims (2,815 ) Effects of foreign currency exchange differences (71 ) Balance December 31, 2021 $ 8,718 2021 2020 Current $ 2,205 $ 745 Long-term 6,513 7,563 $ 8,718 $ 8,308 |
Shareholders' Capital (Tables)
Shareholders' Capital (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of classes of share capital [abstract] | |
Schedule of Issued Capital | Common shares Number Amount Balance, December 31, 2019 13,864,990 $ 2,296,378 Share repurchase (420,588 ) (11,317 ) Share issuance on redemption of non-management 15,228 677 Share consolidation adjustment (37 ) — Balance, December 31, 2020 13,459,593 $ 2,285,738 Share repurchase (155,168 ) (4,294 ) Balance, December 31, 2021 13,304,425 $ 2,281,444 |
Per Share Amounts (Tables)
Per Share Amounts (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings per share [abstract] | |
Per Share Amounts | The following tables reconcile the net loss and weighted average shares outstanding used in computing basic and diluted loss per share: 2021 2020 Net loss – basic and diluted $ (177,386 ) $ (120,138 ) (Stated in thousands) 2021 2020 Weighted average shares outstanding – basic 13,315 13,722 Effect of share option and other equity compensation plans — — Weighted average shares outstanding – diluted 13,315 13,722 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Text Block1 [Abstract] | |
Summary of Accumulated Other Comprehensive Income | Unrealized Foreign Currency Translation Gains (Losses) Foreign Exchange Gain (Loss) on Net Investment Hedge Tax Benefit Related to Net Investment Hedge of Long-Term Debt Accumulated Other Comprehensive Income December 31, 2019 $ 509,582 $ (375,327 ) $ — $ 134,255 Other comprehensive income (loss) (25,925 ) 23,853 5,398 3,326 December 31, 2020 483,657 (351,474 ) 5,398 137,581 Other comprehensive income (loss) (11,256 ) 8,455 — (2,801 ) December 31, 2021 $ 472,401 $ (343,019 ) $ 5,398 $ 134,780 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Related party transactions [abstract] | |
Compensation of Key Management Personnel | The remuneration of key management personnel is as follows: 2021 2020 Salaries and other benefits $ 6,591 $ 10,031 Equity-settled share-based compensation 5,554 9,148 Cash-settled share-based compensation 18,741 419 $ 30,886 $ 19,598 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of detailed information about financial instruments [abstract] | |
Summary of Expected Credit Loss Allowance | The movement in the expected credit loss allowance during the year was as follows: 2021 2020 Balance, January 1, $ 862 $ 929 Impairment loss recognized 29 812 Amounts written-off (70 ) (479 ) Impairment loss reversed (231 ) (396 ) Effect of movement in exchange rates (5 ) (4 ) Balance, December 31, $ 585 $ 862 |
Summary of Ageing of Trade Receivables | The ageing of trade receivables at December 31 was as follows: 2021 2020 Gross Provision for Impairment Gross Provision for Impairment Not past due $ 117,618 $ 1 $ 66,191 $ 1 Past due 0 – 30 days 27,235 5 35,060 8 Past due 31 – 120 days 8,524 474 11,649 26 Past due more than 120 days 105 105 1,895 827 $ 153,482 $ 585 $ 114,795 $ 862 |
Summary of Financial Instruments were Denominated in U S Dollars | The following financial instruments were denominated in U.S. dollars: 2021 2020 Canadian Foreign Canadian Foreign Cash US $ 2,398 US $ 17,382 US $ 35,257 US $ 26,057 Accounts receivable 14 115,614 — 98,298 Accounts payable and accrued liabilities (29,427 ) (81,971 ) (18,727 ) (59,704 ) Long-term liabilities, excluding long-term incentive plans (1) — (14,781 ) — (16,197 ) Net foreign currency exposure US $ (27,015 ) US $ 36,244 US $ 16,530 US $ 48,454 Impact of $0.01 change in the U.S. dollar to Canadian dollar exchange rate on net earnings (loss) $ (270 ) $ — $ 165 $ — Impact of $0.01 change in the U.S. dollar to Canadian dollar exchange rate on comprehensive loss $ — $ 362 $ — $ 485 (1) Excludes U.S. dollar long-term debt that has been designated as a hedge of the Corporation’s net investment in certain self-sustaining foreign operations. |
Summary of Contractual Maturities of Financial Liabilities and Other Contractual Commitments | The following are the contractual maturities of the Corporation’s financial liabilities and other contractual commitments as at December 31, 2021: 2022 2023 2024 2025 2026 Thereafter Total Accounts payable and accrued liabilities $ 224,123 $ — $ — $ — $ — $ — $ 224,123 Share-based compensation 18,414 24,331 24,742 — — — 67,487 Long-term debt 2,223 2,223 2,223 160,257 453,403 505,784 1,126,113 Interest on long-term debt (1) 72,147 72,071 71,996 69,433 36,196 70,995 392,838 Commitments 53,030 69,631 44,068 5,688 4,823 2,391 179,631 Total $ 369,937 $ 168,256 $ 143,029 $ 235,378 $ 494,422 $ 579,170 $ 1,990,192 (1) Excludes amortization of long-term debt issue costs. |
Capital Management (Tables)
Capital Management (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Capital Management [Abstract] | |
Summary of Capitalisation and Ratio | As at December 31, 2021 and 2020, these ratios were as follows: 2021 2020 Long-term debt $ 1,106,794 $ 1,236,210 Shareholders’ equity 1,225,555 1,406,640 Total capitalization $ 2,332,349 $ 2,642,850 Long-term debt to long-term debt plus equity ratio 0.47 0.47 |
Supplemental Information (Table
Supplemental Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Of Supplemental Information [Abstract] | |
Components of Changes in Non-cash Working Capital Balances | Components of changes in non-cash 2021 2020 Accounts receivable $ (50,255 ) $ 103,857 Inventory 1,993 5,181 Accounts payable and accrued liabilities 44,986 (53,666 ) $ (3,276 ) $ 55,372 Pertaining to: Operations $ (13,018 ) $ 55,391 Investments 9,742 (19 ) |
Components of Accounts Receivable | The components of accounts receivable were as follows: 2021 2020 Trade $ 152,897 $ 113,933 Accrued trade 26,731 16,769 Prepaids and other 76,112 76,507 $ 255,740 $ 207,209 |
Components of Accounts Payable and Accrued Liabilities | The components of accounts payable and accrued liabilities were as follows: 2021 2020 Accounts payable $ 90,750 $ 56,922 Accrued liabilities: Payroll 68,953 44,533 Other 64,420 49,502 $ 224,123 $ 150,957 |
Summary of Operating and General and Administrative Expenses | The following table presents operating and general and administrative expenses by nature: 2021 2020 Wages, salaries and benefits $ 482,695 $ 438,209 Wage subsidies (24,108 ) (26,297 ) Purchased materials, supplies and services 278,743 240,591 Share-based compensation 56,745 19,847 $ 794,075 $ 672,350 Allocated to: Operating expense $ 698,144 $ 583,420 General and administrative 95,931 70,869 Restructuring — 18,061 $ 794,075 $ 672,350 |
Long-Term Debt Guarantors (Tabl
Long-Term Debt Guarantors (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Long Term Debt Guarantor Disclosure [Abstract] | |
Condensed Consolidated Statement of Financial Position | Statements of Financial Position Parent and Guarantor Subsidiaries 2021 2020 Assets Current assets $ 219,013 $ 227,265 Property, plant and equipment 1,909,951 2,085,460 Other non-current 79,033 79,104 Parent and Guarantor Subsidiaries 2021 2020 Liabilities Current liabilities $ 200,784 $ 123,472 Long-term debt 1,106,794 1,236,210 Other non-current 87,411 86,303 Excluded from the statements of loss and statements of financial position above are the following intercompany transactions and balances that the Obligor Group had with the non-guarantor Parent and Guarantor Subsidiaries 2021 2020 Assets Accounts receivable, intercompany $ 34,373 $ 35,500 Short-term advances to affiliates 11,686 13,359 Parent and Guarantor Subsidiaries 2021 2020 Liabilities Accounts payable and accrued liabilities, intercompany $ 33,820 $ 25,374 Long-term advances from affiliates 128,606 89,830 |
Condensed Consolidated Statement of Net Earnings (Loss) | Statements of Loss Parent and Guarantor Subsidiaries 2021 2020 Revenue $ 844,619 $ 752,794 Expenses 690,149 548,991 Earnings before income taxes, loss (gain) on redemption and repurchase of unsecured senior notes, loss on investments and other assets, finance charges, foreign exchange, gain on asset disposals, and depreciation and amortization 154,470 203,803 Net loss (171,030 ) (144,086 ) |
Subsidiaries (Tables)
Subsidiaries (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of subsidiaries [abstract] | |
Summary of Subsidiaries | Ownership Interest Country of Incorporation 2021 2020 Precision Limited Partnership Canada 100 % 100 % Precision Drilling Canada Limited Partnership Canada 100 % 100 % Precision Diversified Oilfield Services Corp. Canada 100 % 100 % Precision Drilling (US) Corporation United States 100 % 100 % Precision Drilling Holdings Company United States 100 % 100 % Precision Drilling Company LP United States 100 % 100 % Precision Completion & Production Services Ltd. United States 100 % 100 % Grey Wolf Drilling Limited Barbados 100 % 100 % Grey Wolf Drilling (Barbados) Ltd. Barbados 100 % 100 % |
Significant Accounting Polici_4
Significant Accounting Policies - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Of Significant Accounting Policies [Line Items] | |
Cash original maturity | three months or less |
Top of Range [Member] | Software [Member] | |
Disclosure Of Significant Accounting Policies [Line Items] | |
Expected useful life of intangible asset | 10 years |
Summary of Property, Plant, and
Summary of Property, Plant, and Equipment Expected Life Salvage Value and Basis of Depreciation (Detail) | 12 Months Ended |
Dec. 31, 2021 | |
Drilling Rig Power and Tubulars Equipment [Member] | |
Disclosure of detailed information about property, plant and equipment [Line Items] | |
Expected Life | 5 years |
Basis of Depreciation | straight-line |
Drilling Rig Dynamic Equipment [Member] | |
Disclosure of detailed information about property, plant and equipment [Line Items] | |
Expected Life | 10 years |
Basis of Depreciation | straight-line |
Drilling Rig Structural Equipment [Member] | |
Disclosure of detailed information about property, plant and equipment [Line Items] | |
Expected Life | 20 years |
Salvage Value | 10.00% |
Basis of Depreciation | straight-line |
Service Rig Equipment [Member] | |
Disclosure of detailed information about property, plant and equipment [Line Items] | |
Expected Life | 20 years |
Salvage Value | 10.00% |
Basis of Depreciation | straight-line |
Drilling Rig Spare Equipment [Member] | |
Disclosure of detailed information about property, plant and equipment [Line Items] | |
Expected Life | up to 15 years |
Basis of Depreciation | straight-line |
Service Rig Spare Equipment [Member] | |
Disclosure of detailed information about property, plant and equipment [Line Items] | |
Expected Life | up to 15 years |
Basis of Depreciation | straight-line |
Rental Equipment [Member] | |
Disclosure of detailed information about property, plant and equipment [Line Items] | |
Expected Life | up to 15 years |
Basis of Depreciation | straight-line |
Rental Equipment [Member] | Top of Range [Member] | |
Disclosure of detailed information about property, plant and equipment [Line Items] | |
Salvage Value | 25.00% |
Rental Equipment [Member] | Bottom Of Range [Member] | |
Disclosure of detailed information about property, plant and equipment [Line Items] | |
Salvage Value | 0.00% |
Other Equipment [Member] | |
Disclosure of detailed information about property, plant and equipment [Line Items] | |
Expected Life | 3 to 10 years |
Basis of Depreciation | straight-line |
Light Duty Vehicles [Member] | |
Disclosure of detailed information about property, plant and equipment [Line Items] | |
Expected Life | 4 years |
Basis of Depreciation | straight-line |
Heavy Duty Vehicles [Member] | |
Disclosure of detailed information about property, plant and equipment [Line Items] | |
Expected Life | 7 to 10 years |
Basis of Depreciation | straight-line |
Buildings [Member] | |
Disclosure of detailed information about property, plant and equipment [Line Items] | |
Expected Life | 10 to 20 years |
Basis of Depreciation | straight-line |
Summary of Reconciliation of Di
Summary of Reconciliation of Disaggregated Revenue by Primary Geographical Market (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | ||
Revenue | $ 986,847 | $ 935,753 |
Contract Drilling Services [Member] | ||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | ||
Revenue | 877,943 | 861,202 |
Completion and Production Services [Member] | ||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | ||
Revenue | 113,488 | 77,251 |
Inter- Segment Eliminations [Member] | ||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | ||
Revenue | (4,584) | (2,700) |
Canada [Member] | ||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | ||
Revenue | 443,772 | 305,613 |
Canada [Member] | Contract Drilling Services [Member] | ||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | ||
Revenue | 347,562 | 247,678 |
Canada [Member] | Completion and Production Services [Member] | ||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | ||
Revenue | 100,788 | 60,621 |
Canada [Member] | Inter- Segment Eliminations [Member] | ||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | ||
Revenue | (4,578) | (2,686) |
United States [Member] | ||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | ||
Revenue | 398,024 | 444,052 |
United States [Member] | Contract Drilling Services [Member] | ||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | ||
Revenue | 385,330 | 427,436 |
United States [Member] | Completion and Production Services [Member] | ||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | ||
Revenue | 12,700 | 16,630 |
United States [Member] | Inter- Segment Eliminations [Member] | ||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | ||
Revenue | (6) | (14) |
International [Member] | ||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | ||
Revenue | 145,051 | 186,088 |
International [Member] | Contract Drilling Services [Member] | ||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | ||
Revenue | $ 145,051 | $ 186,088 |
Summary of Reconciliation of _2
Summary of Reconciliation of Disaggregated Revenue by Type of Service Provided (Detail) - CAD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | ||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | |||
Revenue | $ 986,847 | $ 935,753 | |
Contract Drilling Services [Member] | |||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | |||
Revenue | 877,943 | 861,202 | |
Completion and Production Services [Member] | |||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | |||
Revenue | 113,488 | 77,251 | |
Inter- Segment Eliminations [Member] | |||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | |||
Revenue | (4,584) | (2,700) | |
Day Rate Or Hourly Services [Member] | |||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | |||
Revenue | 958,858 | 856,630 | |
Day Rate Or Hourly Services [Member] | Contract Drilling Services [Member] | |||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | |||
Revenue | 845,832 | 779,772 | |
Day Rate Or Hourly Services [Member] | Completion and Production Services [Member] | |||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | |||
Revenue | 113,488 | 77,251 | |
Day Rate Or Hourly Services [Member] | Inter- Segment Eliminations [Member] | |||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | |||
Revenue | (462) | (393) | |
Shortfall Payments Or Idle But Contracted [Member] | |||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | |||
Revenue | 543 | 51,028 | |
Shortfall Payments Or Idle But Contracted [Member] | Contract Drilling Services [Member] | |||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | |||
Revenue | 543 | 51,028 | |
Turnkey Drilling Services [Member] | |||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | |||
Revenue | 17,086 | 14,134 | |
Turnkey Drilling Services [Member] | Contract Drilling Services [Member] | |||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | |||
Revenue | 17,086 | 14,134 | |
Directional Services [Member] | |||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | |||
Revenue | 7,871 | [1] | 9,637 |
Directional Services [Member] | Contract Drilling Services [Member] | |||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | |||
Revenue | 7,871 | [1] | 9,637 |
Other [Member] | |||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | |||
Revenue | 2,489 | 4,324 | |
Other [Member] | Contract Drilling Services [Member] | |||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | |||
Revenue | 6,611 | 6,631 | |
Other [Member] | Inter- Segment Eliminations [Member] | |||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | |||
Revenue | $ (4,122) | $ (2,307) | |
[1] | Directional drilling disposed in the third quarter of 2021. |
Segmented Information - Additio
Segmented Information - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2021Segment | |
Disclosure of operating segments [abstract] | |
Number of operating segments | 2 |
Summary of Operating Segments (
Summary of Operating Segments (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of operating segments [Line Items] | ||
Revenue | $ 986,847 | $ 935,753 |
Operating earnings (loss) | (182,782) | (109,184) |
Depreciation and amortization | 282,326 | 316,322 |
Total assets | 2,661,752 | 2,898,878 |
All Other Segments [Member] | ||
Disclosure of operating segments [Line Items] | ||
Revenue | 986,847 | 935,753 |
Operating earnings (loss) | (81,038) | (40,988) |
Depreciation and amortization | 282,326 | 316,322 |
Gain on asset disposals | (8,516) | (11,931) |
Total assets | 2,661,752 | 2,898,878 |
Capital expenditures | 75,941 | 61,592 |
Contract Drilling Services [Member] | ||
Disclosure of operating segments [Line Items] | ||
Revenue | 877,943 | 861,202 |
Contract Drilling Services [Member] | All Other Segments [Member] | ||
Disclosure of operating segments [Line Items] | ||
Revenue | 877,943 | 861,202 |
Operating earnings (loss) | (16,867) | 22,207 |
Depreciation and amortization | 256,072 | 288,389 |
Gain on asset disposals | (7,673) | (10,171) |
Total assets | 2,392,382 | 2,571,397 |
Capital expenditures | 70,998 | 57,741 |
Completion and Production Services [Member] | ||
Disclosure of operating segments [Line Items] | ||
Revenue | 113,488 | 77,251 |
Completion and Production Services [Member] | All Other Segments [Member] | ||
Disclosure of operating segments [Line Items] | ||
Revenue | 113,488 | 77,251 |
Operating earnings (loss) | 8,927 | (3,671) |
Depreciation and amortization | 15,405 | 16,375 |
Gain on asset disposals | (525) | (1,447) |
Total assets | 127,233 | 132,771 |
Capital expenditures | 4,452 | 3,362 |
Corporate and Other [Member] | All Other Segments [Member] | ||
Disclosure of operating segments [Line Items] | ||
Operating earnings (loss) | (73,098) | (59,524) |
Depreciation and amortization | 10,849 | 11,558 |
Gain on asset disposals | (318) | (313) |
Total assets | 142,137 | 194,710 |
Capital expenditures | 491 | 489 |
Inter- Segment Eliminations [Member] | ||
Disclosure of operating segments [Line Items] | ||
Revenue | (4,584) | (2,700) |
Inter- Segment Eliminations [Member] | All Other Segments [Member] | ||
Disclosure of operating segments [Line Items] | ||
Revenue | $ (4,584) | $ (2,700) |
Summary of Detailed Information
Summary of Detailed Information About Reconciliation of Operating Loss to Net Loss Explanatory (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of operating segments [abstract] | ||
Operating earnings (loss) | $ (81,038) | $ (40,988) |
Foreign exchange | 393 | 4,542 |
Finance charges | 91,431 | 107,468 |
Loss on investments and other assets | 400 | 0 |
Loss (gain) on redemption and repurchase of unsecured senior notes | 9,520 | (43,814) |
Income taxes | (5,396) | 10,954 |
Net loss | $ (177,386) | $ (120,138) |
Summary of Operating Segments b
Summary of Operating Segments by Geographic Locations (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of geographical areas [Line Items] | ||
Revenue | $ 986,847 | $ 935,753 |
Total assets | 2,661,752 | 2,898,878 |
United States [Member] | ||
Disclosure of geographical areas [Line Items] | ||
Revenue | 398,024 | 444,052 |
Total assets | 1,247,173 | 1,339,945 |
Canada [Member] | ||
Disclosure of geographical areas [Line Items] | ||
Revenue | 443,772 | 305,613 |
Total assets | 959,163 | 1,053,921 |
International [Member] | ||
Disclosure of geographical areas [Line Items] | ||
Revenue | 145,051 | 186,088 |
Total assets | $ 455,416 | $ 505,012 |
Schedule of Property, Plant and
Schedule of Property, Plant and Equipment (Detail) - CAD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Property, plant and equipment | $ 2,258,391 | $ 2,472,683 | |
Rig Equipment [Member] | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Property, plant and equipment | 2,074,185 | 2,269,794 | |
Rental Equipment [Member] | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Property, plant and equipment | 20,597 | 27,359 | |
Other Equipment [Member] | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Property, plant and equipment | 17,088 | 27,318 | |
Vehicles [member] | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Property, plant and equipment | 3,204 | 4,978 | |
Buildings [Member] | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Property, plant and equipment | 44,009 | 49,451 | |
Assets Under Construction [Member] | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Property, plant and equipment | 67,884 | 60,572 | |
Land [Member] | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Property, plant and equipment | 31,424 | 33,211 | |
Gross [Member] | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Property, plant and equipment | 6,503,721 | 6,563,206 | $ 6,670,979 |
Gross [Member] | Rig Equipment [Member] | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Property, plant and equipment | 5,968,316 | 6,025,767 | 6,109,383 |
Gross [Member] | Rental Equipment [Member] | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Property, plant and equipment | 103,181 | 105,024 | 110,307 |
Gross [Member] | Other Equipment [Member] | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Property, plant and equipment | 178,717 | 181,004 | 185,319 |
Gross [Member] | Vehicles [member] | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Property, plant and equipment | 34,680 | 35,350 | 38,506 |
Gross [Member] | Buildings [Member] | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Property, plant and equipment | 119,519 | 122,278 | 126,177 |
Gross [Member] | Assets Under Construction [Member] | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Property, plant and equipment | 67,884 | 60,572 | 67,740 |
Gross [Member] | Land [Member] | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Property, plant and equipment | 31,424 | 33,211 | 33,547 |
Accumulated Depreciation [Member] | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Property, plant and equipment | (4,245,330) | (4,090,523) | (3,921,516) |
Accumulated Depreciation [Member] | Rig Equipment [Member] | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Property, plant and equipment | (3,894,131) | (3,755,973) | (3,598,878) |
Accumulated Depreciation [Member] | Rental Equipment [Member] | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Property, plant and equipment | (82,584) | (77,665) | (75,870) |
Accumulated Depreciation [Member] | Other Equipment [Member] | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Property, plant and equipment | (161,629) | (153,686) | (146,715) |
Accumulated Depreciation [Member] | Vehicles [member] | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Property, plant and equipment | (31,476) | (30,372) | (30,710) |
Accumulated Depreciation [Member] | Buildings [Member] | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Property, plant and equipment | $ (75,510) | $ (72,827) | $ (69,343) |
Change in Property, Plant and E
Change in Property, Plant and Equipment (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of detailed information about property, plant and equipment [Line Items] | ||
Beginning Balance | $ 2,472,683 | |
Ending Balance | 2,258,391 | $ 2,472,683 |
Gross [Member] | ||
Disclosure of detailed information about property, plant and equipment [Line Items] | ||
Beginning Balance | 6,563,206 | 6,670,979 |
Additions | 75,941 | 61,535 |
Disposals | (108,797) | (92,524) |
Effect of foreign currency exchange differences | (26,629) | (76,784) |
Ending Balance | 6,503,721 | 6,563,206 |
Accumulated Depreciation [Member] | ||
Disclosure of detailed information about property, plant and equipment [Line Items] | ||
Beginning Balance | (4,090,523) | (3,921,516) |
Depreciation expense | 272,036 | 304,934 |
Disposals | 102,287 | 86,076 |
Effect of foreign currency exchange differences | 14,942 | 49,851 |
Ending Balance | (4,245,330) | (4,090,523) |
Rig Equipment [Member] | ||
Disclosure of detailed information about property, plant and equipment [Line Items] | ||
Beginning Balance | 2,269,794 | |
Ending Balance | 2,074,185 | 2,269,794 |
Rig Equipment [Member] | Gross [Member] | ||
Disclosure of detailed information about property, plant and equipment [Line Items] | ||
Beginning Balance | 6,025,767 | 6,109,383 |
Additions | 15,288 | 10,375 |
Disposals | (100,004) | (78,028) |
Reclassifications | 47,080 | 55,322 |
Effect of foreign currency exchange differences | (19,815) | (71,285) |
Ending Balance | 5,968,316 | 6,025,767 |
Rig Equipment [Member] | Accumulated Depreciation [Member] | ||
Disclosure of detailed information about property, plant and equipment [Line Items] | ||
Beginning Balance | (3,755,973) | (3,598,878) |
Depreciation expense | 248,564 | 277,799 |
Disposals | 95,977 | 73,354 |
Effect of foreign currency exchange differences | 14,429 | 47,350 |
Ending Balance | (3,894,131) | (3,755,973) |
Rental Equipment [Member] | ||
Disclosure of detailed information about property, plant and equipment [Line Items] | ||
Beginning Balance | 27,359 | |
Ending Balance | 20,597 | 27,359 |
Rental Equipment [Member] | Gross [Member] | ||
Disclosure of detailed information about property, plant and equipment [Line Items] | ||
Beginning Balance | 105,024 | 110,307 |
Disposals | (1,822) | (4,664) |
Effect of foreign currency exchange differences | (21) | (619) |
Ending Balance | 103,181 | 105,024 |
Rental Equipment [Member] | Accumulated Depreciation [Member] | ||
Disclosure of detailed information about property, plant and equipment [Line Items] | ||
Beginning Balance | (77,665) | (75,870) |
Depreciation expense | 6,741 | 7,044 |
Disposals | 1,804 | 4,631 |
Effect of foreign currency exchange differences | 18 | 618 |
Ending Balance | (82,584) | (77,665) |
Other Equipment [Member] | ||
Disclosure of detailed information about property, plant and equipment [Line Items] | ||
Beginning Balance | 27,318 | |
Ending Balance | 17,088 | 27,318 |
Other Equipment [Member] | Gross [Member] | ||
Disclosure of detailed information about property, plant and equipment [Line Items] | ||
Beginning Balance | 181,004 | 185,319 |
Additions | 254 | 350 |
Disposals | (2,300) | (3,990) |
Reclassifications | 188 | 521 |
Effect of foreign currency exchange differences | (429) | (1,196) |
Ending Balance | 178,717 | 181,004 |
Other Equipment [Member] | Accumulated Depreciation [Member] | ||
Disclosure of detailed information about property, plant and equipment [Line Items] | ||
Beginning Balance | (153,686) | (146,715) |
Depreciation expense | 10,410 | 12,013 |
Disposals | 2,194 | 3,990 |
Effect of foreign currency exchange differences | 273 | 1,052 |
Ending Balance | (161,629) | (153,686) |
Vehicles [member] | ||
Disclosure of detailed information about property, plant and equipment [Line Items] | ||
Beginning Balance | 4,978 | |
Ending Balance | 3,204 | 4,978 |
Vehicles [member] | Gross [Member] | ||
Disclosure of detailed information about property, plant and equipment [Line Items] | ||
Beginning Balance | 35,350 | 38,506 |
Disposals | (543) | (2,789) |
Effect of foreign currency exchange differences | (127) | (367) |
Ending Balance | 34,680 | 35,350 |
Vehicles [member] | Accumulated Depreciation [Member] | ||
Disclosure of detailed information about property, plant and equipment [Line Items] | ||
Beginning Balance | (30,372) | (30,710) |
Depreciation expense | 1,739 | 2,790 |
Disposals | 543 | 2,782 |
Effect of foreign currency exchange differences | 92 | 346 |
Ending Balance | (31,476) | (30,372) |
Buildings [Member] | ||
Disclosure of detailed information about property, plant and equipment [Line Items] | ||
Beginning Balance | 49,451 | |
Ending Balance | 44,009 | 49,451 |
Buildings [Member] | Gross [Member] | ||
Disclosure of detailed information about property, plant and equipment [Line Items] | ||
Beginning Balance | 122,278 | 126,177 |
Disposals | (2,454) | (3,053) |
Effect of foreign currency exchange differences | (305) | (846) |
Ending Balance | 119,519 | 122,278 |
Buildings [Member] | Accumulated Depreciation [Member] | ||
Disclosure of detailed information about property, plant and equipment [Line Items] | ||
Beginning Balance | (72,827) | (69,343) |
Depreciation expense | 4,582 | 5,288 |
Disposals | 1,769 | 1,319 |
Effect of foreign currency exchange differences | 130 | 485 |
Ending Balance | (75,510) | (72,827) |
Assets Under Construction [Member] | ||
Disclosure of detailed information about property, plant and equipment [Line Items] | ||
Beginning Balance | 60,572 | |
Ending Balance | 67,884 | 60,572 |
Assets Under Construction [Member] | Gross [Member] | ||
Disclosure of detailed information about property, plant and equipment [Line Items] | ||
Beginning Balance | 60,572 | 67,740 |
Additions | 60,399 | 50,810 |
Reclassifications | (47,268) | (55,843) |
Effect of foreign currency exchange differences | (5,819) | (2,135) |
Ending Balance | 67,884 | 60,572 |
Land [Member] | ||
Disclosure of detailed information about property, plant and equipment [Line Items] | ||
Beginning Balance | 33,211 | |
Ending Balance | 31,424 | 33,211 |
Land [Member] | Gross [Member] | ||
Disclosure of detailed information about property, plant and equipment [Line Items] | ||
Beginning Balance | 33,211 | 33,547 |
Disposals | (1,674) | |
Effect of foreign currency exchange differences | (113) | (336) |
Ending Balance | $ 31,424 | $ 33,211 |
Property, Plant and Equipment -
Property, Plant and Equipment - Additional Information (Detail) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2021CAD ($)shares$ / shares | Dec. 31, 2020CAD ($) | |
Disclosure of detailed information about property, plant and equipment [Line Items] | ||
Gains on disposals of assets | $ 9 | $ 12 |
Cathedral Energy Services Ltd [Member] | ||
Disclosure of detailed information about property, plant and equipment [Line Items] | ||
Gains on disposals of assets | 1 | |
Purchase price | 6 | |
Cash Assistance For Growth And Expansion | $ 3 | |
Issuance of common shares | shares | 13,400,000 | |
Number of share warrant issued | shares | 2,000,000 | |
Number of share warrant issued, per share | $ / shares | $ 0.60 |
Schedule of Intangibles (Detail
Schedule of Intangibles (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of detailed information about intangible assets [Line Items] | ||
Balance | $ 27,666 | |
Loan commitment fees related to Senior Credit Facility | 2,067 | $ 2,109 |
Software | 21,848 | 25,557 |
Balance | 23,915 | 27,666 |
Gross [Member] | ||
Disclosure of detailed information about intangible assets [Line Items] | ||
Balance | 54,189 | 53,416 |
Balance | 55,108 | 54,189 |
Additions | 913 | 747 |
Effect of foreign currency exchange differences | 6 | 26 |
Gross [Member] | Loan Commitment Fees [Member] | ||
Disclosure of detailed information about intangible assets [Line Items] | ||
Balance | 16,168 | 15,478 |
Balance | 17,081 | 16,168 |
Additions | 913 | 690 |
Gross [Member] | Software [Member] | ||
Disclosure of detailed information about intangible assets [Line Items] | ||
Balance | 38,021 | 37,938 |
Balance | 38,027 | 38,021 |
Additions | 57 | |
Effect of foreign currency exchange differences | 6 | 26 |
Accumulated Amortization [member] | ||
Disclosure of detailed information about intangible assets [Line Items] | ||
Balance | (26,523) | (21,670) |
Balance | (31,193) | (26,523) |
Effect of foreign currency exchange differences | (29) | |
Amortization expense | (4,670) | (4,824) |
Accumulated Amortization [member] | Loan Commitment Fees [Member] | ||
Disclosure of detailed information about intangible assets [Line Items] | ||
Balance | (14,059) | (13,206) |
Balance | (15,014) | (14,059) |
Amortization expense | (955) | (853) |
Accumulated Amortization [member] | Software [Member] | ||
Disclosure of detailed information about intangible assets [Line Items] | ||
Balance | (12,464) | (8,464) |
Balance | (16,179) | (12,464) |
Effect of foreign currency exchange differences | (29) | |
Amortization expense | $ (3,715) | $ (3,971) |
Schedule of Long Term Borrowing
Schedule of Long Term Borrowings (Detail) $ in Thousands, $ in Thousands | Dec. 31, 2021CAD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020CAD ($) | Dec. 31, 2020USD ($) |
Disclosure of long term debt [Line Items] | ||||
Current portion of long-term debt, gross | $ 2,223 | $ 704 | $ 896 | $ 704 |
Long-term debt, gross | 1,123,890 | 874,858 | 1,249,153 | 981,151 |
Less net unamortized debt issue costs | (17,096) | (12,943) | ||
Long-term debt | 1,106,794 | 1,236,210 | ||
Senior Credit Facility [Member] | ||||
Disclosure of long term debt [Line Items] | ||||
Long-term debt, gross | 149,206 | 118,000 | 95,041 | 74,650 |
Canadian Real Estate Credit Facility [Member] | ||||
Disclosure of long term debt [Line Items] | ||||
Current portion of long-term debt, gross | 1,333 | |||
Long-term debt, gross | 17,667 | |||
U.S. Real Estate Credit Facility [Member] | ||||
Disclosure of long term debt [Line Items] | ||||
Current portion of long-term debt, gross | 890 | 704 | 896 | 704 |
Long-term debt, gross | 11,498 | 9,093 | 12,474 | 9,797 |
7.75% Senior Notes Due 2023 [Member] | ||||
Disclosure of long term debt [Line Items] | ||||
Long-term debt, gross | 363,782 | 285,734 | ||
5.25% Senior Notes Due 2024 [Member] | ||||
Disclosure of long term debt [Line Items] | ||||
Long-term debt, gross | 335,099 | 263,205 | ||
7.125% Senior Notes Due 2026 [Member] | ||||
Disclosure of long term debt [Line Items] | ||||
Long-term debt, gross | 439,735 | 347,765 | $ 442,757 | $ 347,765 |
6.875% senior notes due 2029 [Member] | ||||
Disclosure of long term debt [Line Items] | ||||
Long-term debt, gross | $ 505,784 | $ 400,000 |
Schedule of Long Term Borrowi_2
Schedule of Long Term Borrowings (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2021 | |
7.75% Senior Notes Due 2023 [Member] | |
Disclosure of long term debt [Line Items] | |
Long term debt interest rate | 7.75% |
Long term debt maturity year | December 15, 2023 |
5.25% Senior Notes Due 2024 [Member] | |
Disclosure of long term debt [Line Items] | |
Long term debt interest rate | 5.25% |
Long term debt maturity year | November 15, 2024 |
7.125% Senior Notes Due 2026 [Member] | |
Disclosure of long term debt [Line Items] | |
Long term debt interest rate | 7.125% |
Long term debt maturity year | January 15, 2026 |
6.875% senior notes due 2029 [Member] | |
Disclosure of long term debt [Line Items] | |
Long term debt interest rate | 6.875% |
Long term debt maturity year | January 15, 2029 |
Summary of Changes in Long Term
Summary of Changes in Long Term Borrowings (Detail) $ in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021CAD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020CAD ($) | |
Disclosure of long term debt [Line Items] | |||
Beginning balance | $ 1,237,106 | $ 1,427,181 | |
Changes from financing cash flows: | |||
Proceeds from unsecured senior notes | 482,064 | ||
Proceeds From Senior Credit Facility | 194,277 | 137,255 | |
Proceeds from Real Estate Credit Facility | 20,000 | 13,811 | |
Redemption and repurchase of unsecured senior notes | (676,058) | (240,793) | |
Repayment Of Long Term Credit Facility | (37,319) | ||
Repayment of Senior Credit Facility | (146,930) | ||
Repayment of Real Estate Credit Facility | (1,883) | ||
Debt issue costs | (9,450) | (354) | |
Loss (gain) on redemption and repurchase of unsecured senior notes | 9,520 | (43,814) | |
Amortization of debt issue costs | 8,720 | 5,350 | |
Original issue discount | 201 | ||
Foreign exchange adjustment | (8,550) | (24,211) | |
Current | 2,223 | 896 | |
Long-term | 1,106,794 | 1,236,210 | |
Ending balance | 1,109,017 | 1,237,106 | |
Senior Credit Facility [Member] | |||
Disclosure of long term debt [Line Items] | |||
Beginning balance | 95,041 | ||
Changes from financing cash flows: | |||
Proceeds From Senior Credit Facility | 194,277 | 137,255 | |
Repayment Of Long Term Credit Facility | (37,243) | ||
Repayment of Senior Credit Facility | (146,930) | ||
Foreign exchange adjustment | 6,818 | (4,971) | |
Long-term | 149,206 | 95,041 | |
Ending balance | 149,206 | 95,041 | |
Unsecured Senior Notes [Member] | |||
Disclosure of long term debt [Line Items] | |||
Beginning balance | 1,141,638 | 1,445,127 | |
Changes from financing cash flows: | |||
Proceeds from unsecured senior notes | 482,064 | ||
Redemption and repurchase of unsecured senior notes | (676,058) | (240,793) | |
Loss (gain) on redemption and repurchase of unsecured senior notes | 9,520 | (43,814) | |
Original issue discount | 3,628 | $ 3 | |
Foreign exchange adjustment | (15,273) | (18,882) | |
Long-term | 945,519 | 1,141,638 | |
Ending balance | 945,519 | 1,141,638 | |
Canadian Real Estate Credit Facility [Member] | |||
Changes from financing cash flows: | |||
Proceeds from Real Estate Credit Facility | 20,000 | ||
Repayment of Real Estate Credit Facility | (1,000) | ||
Current | 1,333 | ||
Long-term | 17,667 | ||
Ending balance | 19,000 | ||
U.S. Real Estate Credit Facility [Member] | |||
Disclosure of long term debt [Line Items] | |||
Beginning balance | 13,370 | ||
Changes from financing cash flows: | |||
Proceeds from Real Estate Credit Facility | 13,811 | ||
Repayment Of Long Term Credit Facility | (76) | ||
Repayment of Real Estate Credit Facility | (883) | ||
Foreign exchange adjustment | (99) | (365) | |
Current | 890 | 896 | |
Long-term | 11,498 | 12,474 | |
Ending balance | 12,388 | 13,370 | |
Debt Issue Costs and Original Issue Discount [Member] | |||
Disclosure of long term debt [Line Items] | |||
Beginning balance | (12,943) | (17,946) | |
Changes from financing cash flows: | |||
Debt issue costs | (9,450) | (354) | |
Amortization of debt issue costs | 8,720 | 5,350 | |
Original issue discount | (3,427) | ||
Foreign exchange adjustment | 4 | 7 | |
Long-term | (17,096) | (12,943) | |
Ending balance | $ (17,096) | $ (12,943) |
Long-Term Debt Maturities (Deta
Long-Term Debt Maturities (Detail) $ in Thousands | Dec. 31, 2021CAD ($) |
Disclosure of maturity analysis for non-derivative financial liabilities [Line Items] | |
Long-term debt, gross | $ 1,126,113 |
2022 [Member] | |
Disclosure of maturity analysis for non-derivative financial liabilities [Line Items] | |
Long-term debt, gross | 2,223 |
2023 [Member] | |
Disclosure of maturity analysis for non-derivative financial liabilities [Line Items] | |
Long-term debt, gross | 2,223 |
2024 [Member] | |
Disclosure of maturity analysis for non-derivative financial liabilities [Line Items] | |
Long-term debt, gross | 2,223 |
2025 [Member] | |
Disclosure of maturity analysis for non-derivative financial liabilities [Line Items] | |
Long-term debt, gross | 160,257 |
Thereafter [Member] | |
Disclosure of maturity analysis for non-derivative financial liabilities [Line Items] | |
Long-term debt, gross | $ 959,187 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) $ in Thousands, $ in Millions | 1 Months Ended | 12 Months Ended | |||||||
Mar. 31, 2021 | Nov. 30, 2020USD ($) | Dec. 31, 2021CAD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2021USD ($) | Mar. 01, 2021CAD ($) | Dec. 31, 2020CAD ($) | Dec. 31, 2020USD ($) | |
Disclosure of long term debt [Line Items] | |||||||||
Borrowings | $ 1,126,113 | ||||||||
Outstanding letters of credit | $ 25 | ||||||||
Description of compliance with covenants | The unsecured senior notes require Precision to comply with certain restrictive and financial covenants including an incurrence based test of Consolidated Interest Coverage Ratio, as defined in the senior note agreements, of greater than or equal to 2.0:1 for the most recent four consecutive fiscal quarters. In the event the Consolidated Interest Coverage Ratio is less than 2.0:1 for the most recent four consecutive fiscal quarters the senior notes restrict Precision’s ability to incur additional indebtedness. | The unsecured senior notes require Precision to comply with certain restrictive and financial covenants including an incurrence based test of Consolidated Interest Coverage Ratio, as defined in the senior note agreements, of greater than or equal to 2.0:1 for the most recent four consecutive fiscal quarters. In the event the Consolidated Interest Coverage Ratio is less than 2.0:1 for the most recent four consecutive fiscal quarters the senior notes restrict Precision’s ability to incur additional indebtedness. | |||||||
Maximum Consolidated Interest Coverage Ratio to incur additional indebtedness | 2.00% | 2.00% | |||||||
Description of compliance with covenants | The unsecured senior notes also contain a restricted payments covenant that limits Precision’s ability to make payments in the nature of dividends, distributions and for repurchases from shareholders. This restricted payments basket grows by, among other things, 50% of cumulative consolidated net earnings, and decreases by 100% of cumulative consolidated net losses as defined in the note agreements, and cumulative payments made to shareholders. At December 31, 2021, the governing net restricted payments basket was negative $369 million (2020 – negative $307 million), therefore limiting us from making any further dividend payments or share repurchases until the governing restricted payments basket once again becomes positive. During 2021, pursuant to the indentures governing the unsecured senior notes, Precision used the available general restricted payments basket to facilitate the repurchase and cancellation of its common shares. | The unsecured senior notes also contain a restricted payments covenant that limits Precision’s ability to make payments in the nature of dividends, distributions and for repurchases from shareholders. This restricted payments basket grows by, among other things, 50% of cumulative consolidated net earnings, and decreases by 100% of cumulative consolidated net losses as defined in the note agreements, and cumulative payments made to shareholders. At December 31, 2021, the governing net restricted payments basket was negative $369 million (2020 – negative $307 million), therefore limiting us from making any further dividend payments or share repurchases until the governing restricted payments basket once again becomes positive. During 2021, pursuant to the indentures governing the unsecured senior notes, Precision used the available general restricted payments basket to facilitate the repurchase and cancellation of its common shares. | |||||||
Net restricted payments basket | $ 369,000 | $ 307,000 | |||||||
Proportion of ownership interest in subsidiary | 100.00% | 100.00% | |||||||
Original issue discount | $ 201 | ||||||||
Senior Credit Facility [Member] | |||||||||
Disclosure of long term debt [Line Items] | |||||||||
Borrowings maximum borrowing capacity | $ 500 | ||||||||
Borrowings | 53 | ||||||||
Credit facility amount withdrawn | 118 | $ 75 | |||||||
Borrowings maximum available letters of credit | 200 | ||||||||
Outstanding letters of credit | $ 33 | $ 32 | |||||||
Amount redeemed | 286 | ||||||||
Senior Credit Facility [Member] | Future Assets [Member] | |||||||||
Disclosure of long term debt [Line Items] | |||||||||
Borrowings additional borrowing capacity | $ 300 | ||||||||
7.75% Senior Notes Due 2023 [Member] | |||||||||
Disclosure of long term debt [Line Items] | |||||||||
Interest rate | 7.75% | 7.75% | |||||||
Maturity date | December 15, 2023 | December 15, 2023 | |||||||
Redemption price percentage | 7.75% | 7.75% | |||||||
5.25% Senior Notes Due 2024 [Member] | |||||||||
Disclosure of long term debt [Line Items] | |||||||||
Interest rate | 5.25% | 5.25% | |||||||
Maturity date | November 15, 2024 | November 15, 2024 | |||||||
Redemption price percentage | 5.25% | 5.25% | |||||||
7.125% Senior Notes Due 2026 [Member] | |||||||||
Disclosure of long term debt [Line Items] | |||||||||
Minimum threshold to consolidated interest coverage ratio | 7.125% | 7.125% | |||||||
Interest rate | 7.125% | 7.125% | |||||||
Maturity date | January 15, 2026 | January 15, 2026 | |||||||
Borrowings frequency of payments | Interest is payable semi-annually on January 15 and July 15 of each year, commencing July 15, 2018. | Interest is payable semi-annually on January 15 and July 15 of each year, commencing July 15, 2018. | |||||||
7.125% Senior Notes Due 2026 [Member] | Any time on or after December 15, 2021 [Member] | |||||||||
Disclosure of long term debt [Line Items] | |||||||||
Redemption price percentage | 101.00% | 101.00% | |||||||
7.125% Senior Notes Due 2026 [Member] | Prior to November 15, 2020, Precision may redeem these notes in whole or in part [Member] | |||||||||
Disclosure of long term debt [Line Items] | |||||||||
Redemption price percentage | 100.00% | 100.00% | |||||||
7.125% Senior Notes Due 2026 [Member] | Bottom Of Range [Member] | Precision may redeem these notes in whole or in part at any time on or after November 15, 2020 and before November 15, 2022 [Member] | |||||||||
Disclosure of long term debt [Line Items] | |||||||||
Redemption price percentage | 101.781% | 101.781% | |||||||
7.125% Senior Notes Due 2026 [Member] | Top of Range [Member] | Precision may redeem these notes in whole or in part at any time on or after November 15, 2020 and before November 15, 2022 [Member] | |||||||||
Disclosure of long term debt [Line Items] | |||||||||
Redemption price percentage | 105.344% | 105.344% | |||||||
6.875% senior notes due 2029 [Member] | |||||||||
Disclosure of long term debt [Line Items] | |||||||||
Interest rate | 6.875% | 6.875% | |||||||
Maturity date | January 15, 2029 | January 15, 2029 | |||||||
6.875% senior notes due 2029 [Member] | Prior to June 15, 2024, Precision may redeem up to 35% of the 6.875% unsecured senior notes due 2029 [Member] | |||||||||
Disclosure of long term debt [Line Items] | |||||||||
Redemption price percentage | 35.00% | 35.00% | |||||||
Borrowings maximum percentage of principal amount redeemed | 106.875% | 106.875% | |||||||
Real Estate Credit Facility [Member] | |||||||||
Disclosure of long term debt [Line Items] | |||||||||
Borrowing Capacity | $ 11 | $ 20,000 | |||||||
Facility maturity period | 2025-11 | 2025-11 | |||||||
Amortization period of principal and interest payments | 15 years | 15 years | |||||||
Minimum threshold to consolidated interest coverage ratio | 1.15% | ||||||||
Credit facility amount withdrawn | $ 31,000 | $ 11 | $ 13,000 | $ 11 | |||||
Unsecured Senior Notes [Member] | |||||||||
Disclosure of long term debt [Line Items] | |||||||||
Borrowings | $ 400 | ||||||||
Interest rate | 6.875% | 6.875% | |||||||
Amount redeemed | $ 263 | ||||||||
Percentage of face value | 99.253% | 99.253% | |||||||
Original issue discount | $ 3,628 | $ 3 | |||||||
Accrued and unpaid interest | 557 | ||||||||
Loss on redemption | $ 8 |
Schedule of Listing of Currentl
Schedule of Listing of Currently Applicable Restrictive and Financial Covenants (Detail) | 12 Months Ended | |
Dec. 31, 2021 | ||
Senior Credit Facility [Member] | ||
Disclosure of long term debt [Line Items] | ||
Consolidated senior debt to consolidated covenant EBITDA(1) | 0.97% | [1] |
Consolidated covenant EBITDA to consolidated interest expense | 2.83% | |
Senior Credit Facility [Member] | Top of Range [Member] | ||
Disclosure of long term debt [Line Items] | ||
Consolidated senior debt to consolidated covenant EBITDA(1) | 2.50% | [1] |
Senior Credit Facility [Member] | Bottom Of Range [Member] | ||
Disclosure of long term debt [Line Items] | ||
Consolidated covenant EBITDA to consolidated interest expense | 2.00% | |
Unsecured Senior Notes [Member] | ||
Disclosure of long term debt [Line Items] | ||
Consolidated interest coverage ratio | 2.06% | |
Unsecured Senior Notes [Member] | Bottom Of Range [Member] | ||
Disclosure of long term debt [Line Items] | ||
Consolidated interest coverage ratio | 2.00% | |
Real Estate Credit Facility [Member] | ||
Disclosure of long term debt [Line Items] | ||
Consolidated covenant EBITDA to consolidated interest expense | 2.83% | |
Real Estate Credit Facility [Member] | Bottom Of Range [Member] | ||
Disclosure of long term debt [Line Items] | ||
Consolidated covenant EBITDA to consolidated interest expense | 2.00% | |
[1] | For purposes of calculating the leverage ratio consolidated senior debt only includes secured indebtedness. |
Restructuring and Other - Addit
Restructuring and Other - Additional Information (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Of Restructuring And Other Recoveries [Line Items] | ||
Restructuring charge | $ 0 | $ 18,061 |
Canadian Emergency Wage Subsidy Program [Member] | ||
Disclosure Of Restructuring And Other Recoveries [Line Items] | ||
Salary And Wage Subsidies Recognized | 24,000 | 26,000 |
Operating Expense Reduction Due To Wage Subsidies | 21,000 | 21,000 |
General And Administrative Expense Reduction Due To Wage Subsidies | $ 3,000 | $ 5,000 |
Summary of Finance Charges (Det
Summary of Finance Charges (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Interest: | ||
Long-term debt | $ 78,921 | $ 98,555 |
Lease obligations | 2,764 | 3,217 |
Other | 80 | 232 |
Income | (210) | (739) |
Amortization of debt issue costs | 9,876 | 6,203 |
Finance charges | $ 91,431 | $ 107,468 |
Summary of Right-of-Use-Assets
Summary of Right-of-Use-Assets (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Of Quantitative Information About Rightofuse Assets [Line Items] | ||
Beginning Balance | $ 55,168 | $ 66,142 |
Additions | 3,543 | 3,167 |
Derecognition | (480) | (2,597) |
Depreciation | (6,575) | (7,417) |
Lease reclassification | (3,631) | |
Effect of foreign currency exchange differences | (216) | (496) |
Ending Balance | 51,440 | 55,168 |
Real Estate [member] | ||
Disclosure Of Quantitative Information About Rightofuse Assets [Line Items] | ||
Beginning Balance | 43,689 | 54,026 |
Additions | 514 | 136 |
Derecognition | 0 | 0 |
Depreciation | (3,566) | (3,900) |
Lease reclassification | (6,233) | |
Effect of foreign currency exchange differences | (174) | (340) |
Ending Balance | 40,463 | 43,689 |
Vehicles and Equipment [Member] | ||
Disclosure Of Quantitative Information About Rightofuse Assets [Line Items] | ||
Beginning Balance | 11,479 | 12,116 |
Additions | 3,029 | 3,031 |
Derecognition | (480) | (2,597) |
Depreciation | (3,009) | (3,517) |
Lease reclassification | 2,602 | |
Effect of foreign currency exchange differences | (42) | (156) |
Ending Balance | $ 10,977 | $ 11,479 |
Leases - Additional Information
Leases - Additional Information (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Leases Disclosure [Line Items] | ||
Cash outflow in relation to lease obligation | $ 9 | $ 9 |
Real Estate [member] | Bottom Of Range [Member] | ||
Leases Disclosure [Line Items] | ||
Terms of operating lease commitments | 1 year | |
Real Estate [member] | Top of Range [Member] | ||
Leases Disclosure [Line Items] | ||
Terms of operating lease commitments | 10 years | |
Vehicles [member] | Bottom Of Range [Member] | ||
Leases Disclosure [Line Items] | ||
Terms of operating lease commitments | 3 years | |
Vehicles [member] | Top of Range [Member] | ||
Leases Disclosure [Line Items] | ||
Terms of operating lease commitments | 4 years | |
Rig Equipment [Member] | ||
Leases Disclosure [Line Items] | ||
Long-term drilling contracts | $ 503 | $ 477 |
Rig Equipment [Member] | Bottom Of Range [Member] | ||
Leases Disclosure [Line Items] | ||
Term of operating leases under long term drilling contracts | 1 year | |
Rig Equipment [Member] | Top of Range [Member] | ||
Leases Disclosure [Line Items] | ||
Term of operating leases under long term drilling contracts | 5 years |
Expected Non-cancellable Undisc
Expected Non-cancellable Undiscounted Operating Lease Payments (Detail) - CAD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of finance lease and operating lease by lessee [Line Items] | ||
Non-cancellable undiscounted operating lease | $ 42,500 | $ 47,180 |
Less than one year [member] | ||
Disclosure of finance lease and operating lease by lessee [Line Items] | ||
Non-cancellable undiscounted operating lease | 10,782 | 10,960 |
One to five years [member] | ||
Disclosure of finance lease and operating lease by lessee [Line Items] | ||
Non-cancellable undiscounted operating lease | 29,327 | 29,630 |
More than five years [member] | ||
Disclosure of finance lease and operating lease by lessee [Line Items] | ||
Non-cancellable undiscounted operating lease | $ 2,391 | $ 6,590 |
Summary of Maturity Analysis of
Summary of Maturity Analysis of Lease Payments (Detail) $ in Thousands | Dec. 31, 2021CAD ($) |
Disclosure of finance lease and operating lease by lessee [Line Items] | |
Undiscounted lease payments | $ 260,048 |
Less than one year [member] | |
Disclosure of finance lease and operating lease by lessee [Line Items] | |
Undiscounted lease payments | 198,188 |
One to five years [member] | |
Disclosure of finance lease and operating lease by lessee [Line Items] | |
Undiscounted lease payments | $ 61,860 |
Disclosure of Liability Classif
Disclosure of Liability Classified Plans (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||
Beginning balance | $ 19,817 | $ 13,512 |
Expensed during the period | 56,513 | 4,355 |
ReclassificationFromEquitySettledPlans | (3,164) | 6,833 |
Payments | (12,411) | (4,883) |
Ending balance | 60,755 | 19,817 |
Current | 34,027 | |
Long-term | 26,728 | 11,507 |
Restricted Share Units (RSUs) [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||
Beginning balance | 6,624 | 7,318 |
Expensed during the period | 17,168 | 3,119 |
Payments | (5,742) | (3,813) |
Ending balance | 18,050 | 6,624 |
Current | 11,338 | |
Long-term | 6,712 | |
Performance Share Units (PSUs) [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||
Beginning balance | 4,751 | 2,858 |
Expensed during the period | 18,634 | 2,787 |
Payments | (1,861) | (894) |
Ending balance | 21,524 | 4,751 |
Current | 6,182 | |
Long-term | 15,342 | |
Deferred Share Units (DSUs) [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||
Beginning balance | 1,609 | 3,336 |
Expensed during the period | 3,065 | (1,551) |
Payments | (176) | |
Ending balance | 4,674 | 1,609 |
Long-term | 4,674 | |
Executive Performance Share Units [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||
Beginning balance | 6,833 | |
Expensed during the period | 17,646 | |
ReclassificationFromEquitySettledPlans | (3,164) | 6,833 |
Payments | (4,808) | |
Ending balance | 16,507 | $ 6,833 |
Current | $ 16,507 |
Share Based Compensation Plan_2
Share Based Compensation Plans - Additional Information (Detail) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021CAD ($)shares | Dec. 31, 2020CAD ($)shares | |
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||
Option vesting period | 3 years | |
Option expiration term | 7 years | |
Stock-based compensation expense | $ (56,513) | $ (4,355) |
Net earnings (loss) | $ (177,386) | (120,138) |
Number of other equity instruments exercised or vested in share-based payment arrangement | shares | 131,950 | |
Restricted Share Units (RSUs) [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||
Shares granted to eligible employees vest term | 3 years | |
Stock-based compensation expense | $ (17,168) | $ (3,119) |
Number of other equity instruments exercised or vested in share-based payment arrangement | shares | 216,820 | 127,884 |
Performance Share Units (PSUs) [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||
Shares granted to eligible employees vest term | 3 years | |
Stock-based compensation expense | $ (18,634) | $ (2,787) |
Number of other equity instruments exercised or vested in share-based payment arrangement | shares | 40,515 | 39,028 |
U.S. Share Options [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||
Stock-based compensation expense | $ 200 | $ 1,000 |
Executive Performance Share Units [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||
Share unit vesting period | 3 years | |
Stock-based compensation expense | $ (17,646) | |
Net earnings (loss) | $ 18,000 | $ 15,000 |
Number of other equity instruments exercised or vested in share-based payment arrangement | shares | 96,355 | 57,442 |
Share based compensation number of shares vested | shares | 263,900 |
Summary of Shares Outstanding U
Summary of Shares Outstanding Under Share Based Incentive Plans (Detail) - shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||
Redeemed | (131,950) | |
Equity-Settled Plans [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||
Beginning balance | 1,470 | 4,659 |
Redeemed | (3,189) | |
Ending balance | 1,470 | 1,470 |
Restricted Share Units (RSUs) [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||
Beginning balance | 484,782 | 316,904 |
Granted | 356,928 | 363,253 |
Redeemed | (216,820) | (127,884) |
Forfeited | (26,734) | (67,491) |
Ending balance | 598,156 | 484,782 |
Performance Share Units (PSUs) [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||
Beginning balance | 565,379 | 166,768 |
Granted | 488,510 | 502,558 |
Redeemed | (40,515) | (39,028) |
Forfeited | (29,640) | (64,919) |
Ending balance | 983,734 | 565,379 |
Deferred Share Units (DSUs) [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||
Beginning balance | 77,574 | 89,613 |
Granted | 27,017 | |
Redeemed | (12,039) | |
Ending balance | 104,591 | 77,574 |
Executive Performance Share Units [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||
Beginning balance | 288,707 | 368,845 |
Redeemed | (96,355) | (57,442) |
Forfeited | (2,388) | (22,696) |
Ending balance | 189,964 | 288,707 |
Summary of Status of Equity Inc
Summary of Status of Equity Incentive Plan (Detail) | 12 Months Ended | ||||
Dec. 31, 2021shares$ / shares | Dec. 31, 2021shares$ / shares | Dec. 31, 2020shares$ / shares | Dec. 31, 2020shares$ / shares | Dec. 31, 2019shares | |
Canadian Share Options [Member] | |||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | |||||
Options Outstanding, Beginning balance | shares | 148,665 | 148,665 | 201,079 | 201,079 | |
Options Outstanding, Forfeited | shares | (33,060) | (33,060) | (52,414) | (52,414) | |
Options Outstanding, Ending balance | shares | 115,605 | 115,605 | 148,665 | 148,665 | |
Weighted Average Exercise Price, Beginning balance | $ 138.86 | $ 145.88 | |||
Weighted Average Exercise Price, Forfeitures | 193.10 | 165.79 | |||
Weighted Average Exercise Price, Ending balance | $ 123.35 | $ 138.86 | |||
Options exercisable | shares | 115,605 | 115,605 | 141,156 | 141,156 | 178,453 |
Canadian Share Options [Member] | Top of Range [Member] | |||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | |||||
Range of Exercise Prices, Beginning balance | $ 286.20 | $ 286.20 | |||
Range of Exercise Prices, Forfeitures | 286.20 | 203 | |||
Range of Exercise Prices, Ending balance | 146.40 | 286.20 | |||
Canadian Share Options [Member] | Bottom Of Range [Member] | |||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | |||||
Range of Exercise Prices, Beginning balance | 87 | 87 | |||
Range of Exercise Prices, Forfeitures | 89.20 | 87 | |||
Range of Exercise Prices, Ending balance | $ 87 | $ 87 | |||
U.S. Share Options [Member] | |||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | |||||
Options Outstanding, Beginning balance | shares | 283,793 | 283,793 | 318,153 | 318,153 | |
Options Outstanding, Granted | shares | 0 | 0 | 0 | 0 | |
Options Outstanding, Forfeited | shares | (15,950) | (15,950) | (34,360) | (34,360) | |
Options Outstanding, Ending balance | shares | 267,843 | 267,843 | 283,793 | 283,793 | |
Weighted Average Exercise Price, Beginning balance | $ 86.23 | $ 93.32 | |||
Weighted Average Exercise Price, Forfeitures | 183.60 | 151.92 | |||
Weighted Average Exercise Price, Ending balance | $ 80.43 | $ 86.23 | |||
Options exercisable | shares | 257,854 | 257,854 | 239,521 | 239,521 | 217,441 |
U.S. Share Options [Member] | Top of Range [Member] | |||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | |||||
Range of Exercise Prices, Beginning balance | $ 183.60 | $ 183.60 | |||
Range of Exercise Prices, Forfeitures | 183.60 | 183.60 | |||
Range of Exercise Prices, Ending balance | 115.80 | 183.60 | |||
U.S. Share Options [Member] | Bottom Of Range [Member] | |||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | |||||
Range of Exercise Prices, Beginning balance | 51.20 | 51.20 | |||
Range of Exercise Prices, Forfeitures | 183.60 | 64.20 | |||
Range of Exercise Prices, Ending balance | $ 51.20 | $ 51.20 |
Range of Exercise Prices for Op
Range of Exercise Prices for Options Outstanding (Detail) | 12 Months Ended | ||||||
Dec. 31, 2021shares$ / shares | Dec. 31, 2021shares$ / shares$ / shares | Dec. 31, 2021shares$ / shares | Dec. 31, 2020shares$ / shares | Dec. 31, 2020shares$ / shares | Dec. 31, 2019shares$ / shares | Dec. 31, 2019shares$ / shares | |
Canadian Share Options [Member] | |||||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | |||||||
Total options outstanding, Number | shares | 115,605 | 115,605 | 115,605 | 148,665 | 148,665 | 201,079 | 201,079 |
Total options outstanding, Weighted average exercise price | $ 123.35 | $ 123.35 | $ 138.86 | $ 145.88 | |||
Options exercisable, Number | shares | 115,605 | 115,605 | 115,605 | 141,156 | 141,156 | 178,453 | 178,453 |
Canadian Share Options [Member] | 87.00 – 117.59 Range of Exercise Prices [Member] | |||||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | |||||||
Total options outstanding, Number | shares | 45,590 | 45,590 | 45,590 | ||||
Total options outstanding, Weighted average exercise price | $ 88.11 | $ 88.11 | |||||
Total options outstanding, Weighted average remaining contractual life (years) | 2 years 1 month 20 days | 2 years 1 month 20 days | |||||
Options exercisable, Number | shares | 45,590 | 45,590 | 45,590 | ||||
Options exercisable, Weighted average exercise price | $ 88.11 | $ 88.11 | |||||
Canadian Share Options [Member] | 87.00 – 117.59 Range of Exercise Prices [Member] | Top of Range [Member] | |||||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | |||||||
Total options outstanding, Range of exercise prices | 117.59 | ||||||
Canadian Share Options [Member] | 87.00 – 117.59 Range of Exercise Prices [Member] | Bottom Of Range [Member] | |||||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | |||||||
Total options outstanding, Range of exercise prices | $ 87 | ||||||
Canadian Share Options [Member] | 117.60 – 146.19 Range of Exercise Prices [Member] | |||||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | |||||||
Total options outstanding, Number | shares | 17,035 | 17,035 | 17,035 | ||||
Total options outstanding, Weighted average exercise price | $ 145.97 | $ 145.97 | |||||
Total options outstanding, Weighted average remaining contractual life (years) | 2 years 1 month 17 days | 2 years 1 month 17 days | |||||
Options exercisable, Number | shares | 17,035 | 17,035 | 17,035 | ||||
Options exercisable, Weighted average exercise price | $ 145.97 | $ 145.97 | |||||
Canadian Share Options [Member] | 117.60 – 146.19 Range of Exercise Prices [Member] | Top of Range [Member] | |||||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | |||||||
Total options outstanding, Range of exercise prices | 146.19 | ||||||
Canadian Share Options [Member] | 117.60 – 146.19 Range of Exercise Prices [Member] | Bottom Of Range [Member] | |||||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | |||||||
Total options outstanding, Range of exercise prices | $ 117.60 | ||||||
Canadian Share Options [Member] | 146.20 – 146.40 Range of Exercise Prices [Member] | |||||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | |||||||
Total options outstanding, Number | shares | 52,980 | 52,980 | 52,980 | ||||
Total options outstanding, Weighted average exercise price | $ 146.40 | $ 146.40 | |||||
Total options outstanding, Weighted average remaining contractual life (years) | 1 month 9 days | 1 month 9 days | |||||
Options exercisable, Number | shares | 52,980 | 52,980 | 52,980 | ||||
Options exercisable, Weighted average exercise price | $ 146.40 | $ 146.40 | |||||
Canadian Share Options [Member] | 146.20 – 146.40 Range of Exercise Prices [Member] | Top of Range [Member] | |||||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | |||||||
Total options outstanding, Range of exercise prices | 146.40 | ||||||
Canadian Share Options [Member] | 146.20 – 146.40 Range of Exercise Prices [Member] | Bottom Of Range [Member] | |||||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | |||||||
Total options outstanding, Range of exercise prices | $ 146.20 | ||||||
Canadian Share Options [Member] | 87.00 – 146.40 Range of Exercise Prices [Member] | |||||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | |||||||
Total options outstanding, Number | shares | 115,605 | 115,605 | 115,605 | ||||
Total options outstanding, Weighted average exercise price | $ 123.35 | $ 123.35 | |||||
Total options outstanding, Weighted average remaining contractual life (years) | 1 year 2 months 15 days | 1 year 2 months 15 days | |||||
Options exercisable, Number | shares | 115,605 | 115,605 | 115,605 | ||||
Options exercisable, Weighted average exercise price | $ 123.35 | $ 123.35 | |||||
Canadian Share Options [Member] | 87.00 – 146.40 Range of Exercise Prices [Member] | Top of Range [Member] | |||||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | |||||||
Total options outstanding, Range of exercise prices | 146.40 | ||||||
Canadian Share Options [Member] | 87.00 – 146.40 Range of Exercise Prices [Member] | Bottom Of Range [Member] | |||||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | |||||||
Total options outstanding, Range of exercise prices | $ 87 | ||||||
U.S. Share Options [Member] | |||||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | |||||||
Total options outstanding, Number | shares | 267,843 | 267,843 | 267,843 | 283,793 | 283,793 | 318,153 | 318,153 |
Total options outstanding, Weighted average exercise price | $ 80.43 | $ 86.23 | $ 93.32 | ||||
Options exercisable, Number | shares | 257,854 | 257,854 | 257,854 | 239,521 | 239,521 | 217,441 | 217,441 |
U.S. Share Options [Member] | 51.20 – 66.50 Range of Exercise Prices [Member] | |||||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | |||||||
Total options outstanding, Number | shares | 103,035 | 103,035 | 103,035 | ||||
Total options outstanding, Weighted average exercise price | $ 60.42 | ||||||
Total options outstanding, Weighted average remaining contractual life (years) | 2 years 7 days | 2 years 7 days | |||||
Options exercisable, Number | shares | 93,046 | 93,046 | 93,046 | ||||
Options exercisable, Weighted average exercise price | $ 61.41 | ||||||
U.S. Share Options [Member] | 51.20 – 66.50 Range of Exercise Prices [Member] | Top of Range [Member] | |||||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | |||||||
Total options outstanding, Range of exercise prices | $ 66.50 | ||||||
U.S. Share Options [Member] | 51.20 – 66.50 Range of Exercise Prices [Member] | Bottom Of Range [Member] | |||||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | |||||||
Total options outstanding, Range of exercise prices | $ 51.20 | ||||||
U.S. Share Options [Member] | 66.51 – 105.94 Range of Exercise Prices [Member] | |||||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | |||||||
Total options outstanding, Number | shares | 78,323 | 78,323 | 78,323 | ||||
Total options outstanding, Weighted average exercise price | $ 70.69 | ||||||
Total options outstanding, Weighted average remaining contractual life (years) | 3 years 18 days | 3 years 18 days | |||||
Options exercisable, Number | shares | 78,323 | 78,323 | 78,323 | ||||
Options exercisable, Weighted average exercise price | $ 70.69 | ||||||
U.S. Share Options [Member] | 66.51 – 105.94 Range of Exercise Prices [Member] | Top of Range [Member] | |||||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | |||||||
Total options outstanding, Range of exercise prices | $ 105.94 | ||||||
U.S. Share Options [Member] | 66.51 – 105.94 Range of Exercise Prices [Member] | Bottom Of Range [Member] | |||||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | |||||||
Total options outstanding, Range of exercise prices | $ 66.51 | ||||||
U.S. Share Options [Member] | 105.95 – 115.80 Range of Exercise Prices [Member] | |||||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | |||||||
Total options outstanding, Number | shares | 86,485 | 86,485 | 86,485 | ||||
Total options outstanding, Weighted average exercise price | $ 113.08 | ||||||
Total options outstanding, Weighted average remaining contractual life (years) | 1 year 4 months 17 days | 1 year 4 months 17 days | |||||
Options exercisable, Number | shares | 86,485 | 86,485 | 86,485 | ||||
Options exercisable, Weighted average exercise price | $ 113.08 | ||||||
U.S. Share Options [Member] | 105.95 – 115.80 Range of Exercise Prices [Member] | Top of Range [Member] | |||||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | |||||||
Total options outstanding, Range of exercise prices | $ 115.80 | ||||||
U.S. Share Options [Member] | 105.95 – 115.80 Range of Exercise Prices [Member] | Bottom Of Range [Member] | |||||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | |||||||
Total options outstanding, Range of exercise prices | $ 105.95 | ||||||
U.S. Share Options [Member] | 51.20 – 115.80 Range of Exercise Prices [Member] | |||||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | |||||||
Total options outstanding, Number | shares | 267,843 | 267,843 | 267,843 | ||||
Total options outstanding, Weighted average exercise price | $ 80.43 | ||||||
Total options outstanding, Weighted average remaining contractual life (years) | 2 years 1 month 9 days | 2 years 1 month 9 days | |||||
Options exercisable, Number | shares | 257,854 | 257,854 | 257,854 | ||||
Options exercisable, Weighted average exercise price | $ 81.56 | ||||||
U.S. Share Options [Member] | 51.20 – 115.80 Range of Exercise Prices [Member] | Top of Range [Member] | |||||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | |||||||
Total options outstanding, Range of exercise prices | $ 115.80 | ||||||
U.S. Share Options [Member] | 51.20 – 115.80 Range of Exercise Prices [Member] | Bottom Of Range [Member] | |||||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | |||||||
Total options outstanding, Range of exercise prices | $ 51.20 |
Schedule of Provision for Incom
Schedule of Provision for Income Taxes (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Loss before income taxes | $ (182,782) | $ (109,184) |
Federal and provincial statutory rates | 24.00% | 25.00% |
Tax at statutory rates | $ (43,868) | $ (27,296) |
Adjusted for the effect of: | ||
Non-deductible expenses | 1,162 | 628 |
Non-taxable capital gains | (257) | (6,184) |
Impact of foreign tax rates | (1,474) | (238) |
Withholding taxes | 937 | 813 |
Taxes related to prior years | (1,467) | (1,531) |
Tax assets not recognized | 37,924 | 44,112 |
Other | 1,647 | 650 |
Income taxes | $ (5,396) | $ 10,954 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Temporary differences [Member] | International operations [Member] | ||
Disclosure Of Temporary Difference Unused Tax Losses And Unused Tax Credits [Line Items] | ||
Tax effected temporary differences | $ 1 | $ 1 |
Summary of Net Deferred Tax Lia
Summary of Net Deferred Tax Liability (Detail) - CAD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax liability: | ||
Property, plant and equipment and intangibles | $ 359,383 | $ 393,631 |
Debt issue costs | 1,457 | 2,665 |
Partnership deferrals | 11,082 | 2,532 |
Other | 6,221 | 6,322 |
Deferred income tax liability | 378,143 | 405,150 |
Offsetting of assets and liabilities | (365,924) | (383,914) |
Deferred tax liabilities | 12,219 | 21,236 |
Deferred tax assets: | ||
Losses (expire from time to time up to 2041) | 340,406 | 370,439 |
Long-term incentive plan | 14,264 | 4,956 |
Other | 12,121 | 9,617 |
Deferred income tax asset | 366,791 | 385,012 |
Offsetting of assets and liabilities | (365,924) | (383,914) |
Deferred tax assets | 867 | 1,098 |
Net deferred tax liability | $ 11,352 | $ 20,138 |
Summary of Deferred Tax Asset N
Summary of Deferred Tax Asset Not Recognized (Detail) - CAD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of temporary difference, unused tax losses and unused tax credits [abstract] | ||
Tax losses (Capital) | $ 29,363 | $ 29,809 |
Tax losses (Income) | 96,671 | 72,516 |
Deductible temporary differences | 4,153 | 2,020 |
Total | $ 130,187 | $ 104,345 |
Summary of Movement in Temporar
Summary of Movement in Temporary Differences of Deferred Tax Liabilities (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Of Temporary Difference Unused Tax Losses And Unused Tax Credits [Line Items] | ||
Beginning Balance | $ 20,138 | $ 20,665 |
Recognized in net loss (earnings) | (8,599) | 5,664 |
Effect of foreign currency exchange differences | (187) | (793) |
Recognized in other comprehensive income | (5,398) | |
Ending Balance | 11,352 | 20,138 |
Property, Plant and Equipment and Intangibles [member] | ||
Disclosure Of Temporary Difference Unused Tax Losses And Unused Tax Credits [Line Items] | ||
Beginning Balance | 393,631 | 426,934 |
Recognized in net loss (earnings) | (32,562) | (28,600) |
Effect of foreign currency exchange differences | (1,686) | (4,703) |
Ending Balance | 359,383 | 393,631 |
Partnership Deferrals [member] | ||
Disclosure Of Temporary Difference Unused Tax Losses And Unused Tax Credits [Line Items] | ||
Beginning Balance | 2,532 | 850 |
Recognized in net loss (earnings) | 8,550 | 1,682 |
Ending Balance | 11,082 | 2,532 |
Other Deferred Tax Liabilities [Member] | ||
Disclosure Of Temporary Difference Unused Tax Losses And Unused Tax Credits [Line Items] | ||
Beginning Balance | 6,322 | 7,926 |
Recognized in net loss (earnings) | (99) | (1,601) |
Effect of foreign currency exchange differences | (2) | (3) |
Ending Balance | 6,221 | 6,322 |
Losses [member] | ||
Disclosure Of Temporary Difference Unused Tax Losses And Unused Tax Credits [Line Items] | ||
Beginning Balance | (370,439) | (402,025) |
Recognized in net loss (earnings) | 28,528 | 33,141 |
Effect of foreign currency exchange differences | 1,505 | 3,843 |
Recognized in other comprehensive income | (5,398) | |
Ending Balance | (340,406) | (370,439) |
Debt Issue Costs [Member] | ||
Disclosure Of Temporary Difference Unused Tax Losses And Unused Tax Credits [Line Items] | ||
Beginning Balance | 2,665 | 3,280 |
Recognized in net loss (earnings) | (1,208) | (615) |
Ending Balance | 1,457 | 2,665 |
Long-Term Incentive Plan [member] | ||
Disclosure Of Temporary Difference Unused Tax Losses And Unused Tax Credits [Line Items] | ||
Beginning Balance | (4,956) | (6,131) |
Recognized in net loss (earnings) | (9,291) | 1,120 |
Effect of foreign currency exchange differences | (17) | 55 |
Ending Balance | (14,264) | (4,956) |
Other Deferred Tax Liabilities [Member] | ||
Disclosure Of Temporary Difference Unused Tax Losses And Unused Tax Credits [Line Items] | ||
Beginning Balance | (9,617) | (10,169) |
Recognized in net loss (earnings) | (2,517) | 537 |
Effect of foreign currency exchange differences | 13 | 15 |
Ending Balance | $ (12,121) | $ (9,617) |
Bank Indebtedness - Additional
Bank Indebtedness - Additional Information (Detail) $ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CAD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020CAD ($) | Dec. 31, 2020USD ($) | |
Disclosure of detailed information about financial instruments [Line Items] | ||||
Description of interest rate | Advances under the $40 million facility are available at the bank’s prime lending rate, U.S. base rate, U.S. LIBOR rate plus applicable margin, or applicable margin for Banker’s Acceptances, or in combination, and under the US$15 million facility at the bank’s prime lending rate. | |||
40.0 Million Secured Operating Facilities [Member] | ||||
Disclosure of detailed information about financial instruments [Line Items] | ||||
Line of credit borrowing capacity | $ 40,000 | $ 40,000 | ||
Line of credit outstanding | 0 | 0 | ||
Letters of credit outstanding | 7,000 | 7,000 | ||
15.0 Million Secured Operating Facilities [Member] | ||||
Disclosure of detailed information about financial instruments [Line Items] | ||||
Line of credit borrowing capacity | $ 15,000 | $ 15,000 | ||
Line of credit outstanding | 0 | 0 | ||
30.0 Million Operating Facilities [member] | ||||
Disclosure of detailed information about financial instruments [Line Items] | ||||
Line of credit borrowing capacity | $ 30 | 30 | ||
Line of credit outstanding | 0 | $ 0 | ||
Letters of credit outstanding | $ 3 | $ 2 |
Change in Provisions and Other
Change in Provisions and Other (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of other provisions [abstract] | ||
Beginning balance | $ 8,308 | $ 11,866 |
Recovered during the year | (750) | |
Expensed during the year | 3,296 | |
Payment of deductibles and uninsured claims | (2,815) | (2,698) |
Effects of foreign currency exchange differences | (71) | (110) |
Ending balance | $ 8,718 | $ 8,308 |
Balance Sheet Classification of
Balance Sheet Classification of Provisions and Other (Detail) - CAD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of other provisions [abstract] | |||
Current | $ 2,205 | $ 745 | |
Long-term | 6,513 | 7,563 | |
Other provisions | $ 8,718 | $ 8,308 | $ 11,866 |
Schedule of Issued Capital (Det
Schedule of Issued Capital (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of classes of share capital [abstract] | ||
Beginning balance, shares | 13,459,593 | 13,864,990 |
Share repurchase | (155,168) | (420,588) |
Issued on redemption of non-management directors' DSUs, shares | 15,228 | |
Share consolidation adjustment | (37) | |
Ending balance, shares | 13,304,425 | 13,459,593 |
Beginning balance | $ 2,285,738 | $ 2,296,378 |
Share repurchase | (4,294) | (11,317) |
Share issuance on redemption of non-management DSUs | 677 | |
Ending balance | $ 2,281,444 | $ 2,285,738 |
Shareholders Capital - Addition
Shareholders Capital - Additional Information (Detail) $ in Millions | Nov. 12, 2020shares | Dec. 31, 2021CAD ($)shares | Dec. 31, 2020CAD ($)shares |
Disclosure Of Classes Of Share Capital [Line Items] | |||
Number of share purchase and cancel | 155,168 | ||
Percentage of share purchase and cancel | 10.00% | ||
Purchase and cancel of shares | $ | $ | $ 4 | ||
Share consolidation ratio | 20 | ||
Number of common share used for consolidation adjustment | 37 | ||
Events After Reporting Period [Member] | |||
Disclosure Of Classes Of Share Capital [Line Items] | |||
Number of share purchase and cancel | 420,588 | ||
Purchase and cancel of shares | $ | $ | $ 11 | ||
Top of Range [Member] | |||
Disclosure Of Classes Of Share Capital [Line Items] | |||
Number of share purchase and cancel | 1,317,158 |
Summary of Per Share Amounts (D
Summary of Per Share Amounts (Detail) - CAD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Weighted average ordinary shares used in calculating basic and diluted earnings per share [abstract] | ||
Net earnings (loss) for the period | $ (177,386) | $ (120,138) |
Weighted average shares outstanding – basic | 13,315 | 13,722 |
Effect of stock options and other equity compensation plans | 0 | |
Weighted average shares outstanding – diluted | 13,315 | 13,722 |
Summary of Accumulated Other Co
Summary of Accumulated Other Comprehensive Income (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Of Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning Balance | $ 137,581 | |
Ending Balance | 134,780 | $ 137,581 |
Unrealized Foreign Currency Translation Gains (Losses) [member] | ||
Disclosure Of Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning Balance | 483,657 | 509,582 |
Other comprehensive income (loss) | (11,256) | (25,925) |
Ending Balance | 472,401 | 483,657 |
Foreign Exchange Gain (Loss) on Net Investment Hedge [member] | ||
Disclosure Of Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning Balance | (351,474) | (375,327) |
Other comprehensive income (loss) | 8,455 | 23,853 |
Ending Balance | (343,019) | (351,474) |
Accumulated Other Comprehensive Income [Member] | ||
Disclosure Of Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning Balance | 137,581 | 134,255 |
Other comprehensive income (loss) | (2,801) | 3,326 |
Ending Balance | 134,780 | 137,581 |
Tax Benefit Related To Net Investment Hedge Of Long Term Debt [Member] | ||
Disclosure Of Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning Balance | 5,398 | 0 |
Other comprehensive income (loss) | 0 | 5,398 |
Ending Balance | $ 5,398 | $ 5,398 |
Employee Benefit Plan - Additio
Employee Benefit Plan - Additional Information (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Employees Benefit [Abstract] | ||
Individual contributions under defined contribution pension plan | 3.00% | 2.00% |
Total expense under the defined contribution plan | $ 6 | $ 6 |
Compensation of Key Management
Compensation of Key Management Personnel (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of transactions between related parties [abstract] | ||
Salaries and other benefits | $ 6,591 | $ 10,031 |
Equity settled share based compensation | 5,554 | 9,148 |
Cash settled share based compensation | 18,741 | 419 |
Key management personnel compensation | $ 30,886 | $ 19,598 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of transactions between related parties [abstract] | |
Related party transactions, description | Certain executive officers have entered into employment agreements with Precision that provide termination benefits of up to 24 months base salary plus up to two times targeted incentive compensation upon dismissal without cause. |
Capital Commitments - Additiona
Capital Commitments - Additional Information (Detail) - CAD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of capital commitments [Line Items] | ||
Commitments to purchase property, plant and equipment | $ 137 | $ 113 |
2022 [Member] | ||
Disclosure of capital commitments [Line Items] | ||
Commitments to purchase property, plant and equipment | 42 | |
2023 [Member] | ||
Disclosure of capital commitments [Line Items] | ||
Commitments to purchase property, plant and equipment | 60 | |
2024 [Member] | ||
Disclosure of capital commitments [Line Items] | ||
Commitments to purchase property, plant and equipment | $ 35 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Detail) $ in Millions, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2021CAD ($) | Dec. 31, 2020CAD ($) | Dec. 31, 2021USD ($)Customer | Dec. 31, 2021CAD ($)Customer | Dec. 31, 2020USD ($)Customer | Dec. 31, 2020CAD ($)Customer | |
Disclosure of detailed information about financial instruments [Line Items] | ||||||
Number of customers | Customer | 0 | 0 | ||||
Percentage of change in interest rates | 1.00% | |||||
Impact on net income due to changes in interest rate | $ 2 | $ 1 | ||||
Fair value of unsecured senior notes | $ 969 | $ 1,023 | ||||
One Customer [Member] | ||||||
Disclosure of detailed information about financial instruments [Line Items] | ||||||
Number of customers | Customer | 1 | 1 | 1 | 1 | ||
Percentage concentration risk rate | 10.00% | 12.00% | ||||
Senior Credit Facility [Member] | ||||||
Disclosure of detailed information about financial instruments [Line Items] | ||||||
Credit facility amount withdrawn | $ 118 | $ 75 | ||||
Real Estate Credit Facility [Member] | ||||||
Disclosure of detailed information about financial instruments [Line Items] | ||||||
Credit facility amount withdrawn | $ 11 | $ 31 | $ 11 | $ 13 | ||
Credit Risk [Member] | ||||||
Disclosure of detailed information about financial instruments [Line Items] | ||||||
Trade receivables | $ 16 | $ 11 |
Summary of Expected Credit Loss
Summary of Expected Credit Loss Allowance (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Of Allowance For Doubtful Accounts [Abstract] | ||
Beginning balance | $ 862 | $ 929 |
Impairment loss recognized | 29 | 812 |
Amounts written-off as uncollectible | (70) | (479) |
Impairment loss reversed | (231) | (396) |
Effect of movement in exchange rates | (5) | (4) |
Ending balance | $ 585 | $ 862 |
Summary of Ageing of Trade Rece
Summary of Ageing of Trade Receivables (Detail) - CAD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of provision matrix [Line Items] | ||
Total Trade Receivables | $ 152,897 | $ 113,933 |
Gross [Member] | ||
Disclosure of provision matrix [Line Items] | ||
Total Trade Receivables | 153,482 | 114,795 |
Gross [Member] | Not Past Due [Member] | ||
Disclosure of provision matrix [Line Items] | ||
Total Trade Receivables | 117,618 | 66,191 |
Gross [Member] | Past Due 0 - 30 Days [Member] | ||
Disclosure of provision matrix [Line Items] | ||
Total Trade Receivables | 27,235 | 35,060 |
Gross [Member] | Past Due 31 - 120 Days [Member] | ||
Disclosure of provision matrix [Line Items] | ||
Total Trade Receivables | 8,524 | 11,649 |
Gross [Member] | Past Due More than 120 Days [Member] | ||
Disclosure of provision matrix [Line Items] | ||
Total Trade Receivables | 105 | 1,895 |
Provision for Impairment [Member] | ||
Disclosure of provision matrix [Line Items] | ||
Total Trade Receivables | 585 | 862 |
Provision for Impairment [Member] | Not Past Due [Member] | ||
Disclosure of provision matrix [Line Items] | ||
Total Trade Receivables | 1 | 1 |
Provision for Impairment [Member] | Past Due 0 - 30 Days [Member] | ||
Disclosure of provision matrix [Line Items] | ||
Total Trade Receivables | 5 | 8 |
Provision for Impairment [Member] | Past Due 31 - 120 Days [Member] | ||
Disclosure of provision matrix [Line Items] | ||
Total Trade Receivables | 474 | 26 |
Provision for Impairment [Member] | Past Due More than 120 Days [Member] | ||
Disclosure of provision matrix [Line Items] | ||
Total Trade Receivables | $ 105 | $ 827 |
Summary of Financial Instrument
Summary of Financial Instruments were Denominated in U S Dollars (Detail) - CAD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | ||
Disclosure of detailed information about financial instruments [Line Items] | |||
Cash | $ 40,588 | $ 108,772 | |
Accounts receivable | 255,740 | 207,209 | |
Accounts payable and accrued liabilities | (224,123) | (150,957) | |
Canadian Operations [Member] | Currency Risk [Member] | |||
Disclosure of detailed information about financial instruments [Line Items] | |||
Cash | 2,398 | 35,257 | |
Accounts receivable | 14 | 0 | |
Accounts payable and accrued liabilities | (29,427) | (18,727) | |
Long-term liabilities, excluding long-term incentive plans | [1] | 0 | 0 |
Net foreign currency exposure | (27,015) | 16,530 | |
Impact of $0.01 change in the U.S. dollar to Canadian dollar exchange rate on net earnings (loss) | (270) | 165 | |
Impact of $0.01 change in the U.S. dollar to Canadian dollar exchange rate on comprehensive loss | 0 | 0 | |
Foreign Operations [Member] | Currency Risk [Member] | |||
Disclosure of detailed information about financial instruments [Line Items] | |||
Cash | 17,382 | 26,057 | |
Accounts receivable | 115,614 | 98,298 | |
Accounts payable and accrued liabilities | (81,971) | (59,704) | |
Long-term liabilities, excluding long-term incentive plans | [1] | (14,781) | (16,197) |
Net foreign currency exposure | 36,244 | 48,454 | |
Impact of $0.01 change in the U.S. dollar to Canadian dollar exchange rate on net earnings (loss) | 0 | 0 | |
Impact of $0.01 change in the U.S. dollar to Canadian dollar exchange rate on comprehensive loss | $ 362 | $ 485 | |
[1] | Excludes U.S. dollar long-term debt that has been designated as a hedge of the Corporation’s net investment in certain self-sustaining foreign operations. |
Summary of Contractual Maturiti
Summary of Contractual Maturities of Financial Liabilities and Other Contractual Commitments (Detail) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2021CAD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2021CAD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020CAD ($) | |
Disclosure of Nonderivative Financial Instruments [Line Items] | |||||
Long-term debt, gross | $ 874,858 | $ 1,123,890,000 | $ 981,151 | $ 1,249,153,000 | |
Liquidity risk [Member] | |||||
Disclosure of Nonderivative Financial Instruments [Line Items] | |||||
Accounts payable and accrued liabilities | 224,123,000 | ||||
Share based compensation | $ 67,487,000 | ||||
Long-term debt, gross | 1,126,113,000 | ||||
Interest on long-term debt | 392,838,000 | ||||
Commitments | 179,631,000 | ||||
Total | 1,990,192,000 | ||||
Liquidity risk [Member] | 2022 [Member] | |||||
Disclosure of Nonderivative Financial Instruments [Line Items] | |||||
Accounts payable and accrued liabilities | 224,123,000 | ||||
Share based compensation | 18,414,000 | ||||
Long-term debt, gross | 2,223,000 | ||||
Interest on long-term debt | 72,147,000 | ||||
Commitments | 53,030,000 | ||||
Total | 369,937,000 | ||||
Liquidity risk [Member] | 2023 [Member] | |||||
Disclosure of Nonderivative Financial Instruments [Line Items] | |||||
Accounts payable and accrued liabilities | 0 | ||||
Share based compensation | 24,331,000 | ||||
Long-term debt, gross | 2,223,000 | ||||
Interest on long-term debt | 72,071,000 | ||||
Commitments | 69,631,000 | ||||
Total | 168,256,000 | ||||
Liquidity risk [Member] | 2024 [Member] | |||||
Disclosure of Nonderivative Financial Instruments [Line Items] | |||||
Accounts payable and accrued liabilities | 0 | ||||
Share based compensation | 24,742,000 | ||||
Long-term debt, gross | 2,223,000 | ||||
Interest on long-term debt | 71,996,000 | ||||
Commitments | 44,068,000 | ||||
Total | 143,029,000 | ||||
Liquidity risk [Member] | 2025 [Member] | |||||
Disclosure of Nonderivative Financial Instruments [Line Items] | |||||
Accounts payable and accrued liabilities | 0 | ||||
Share based compensation | 0 | ||||
Long-term debt, gross | 160,257,000 | ||||
Interest on long-term debt | 69,433,000 | ||||
Commitments | 5,688,000 | ||||
Total | 235,378,000 | ||||
Liquidity risk [Member] | 2026 [Member] | |||||
Disclosure of Nonderivative Financial Instruments [Line Items] | |||||
Accounts payable and accrued liabilities | 0 | ||||
Share based compensation | 0 | ||||
Long-term debt, gross | 453,403,000 | ||||
Interest on long-term debt | 36,196,000 | ||||
Commitments | 4,823,000 | ||||
Total | 494,422,000 | ||||
Liquidity risk [Member] | Thereafter [Member] | |||||
Disclosure of Nonderivative Financial Instruments [Line Items] | |||||
Accounts payable and accrued liabilities | 0 | ||||
Share based compensation | 0 | ||||
Long-term debt, gross | 505,784,000 | ||||
Interest on long-term debt | $ 70,995,000 | ||||
Commitments | 2,391,000 | ||||
Total | $ 579,170,000 |
Capital Management - Summary of
Capital Management - Summary of Capitalization and Ratio (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Of Capitalisation [Abstract] | ||
Long-term debt | $ 1,106,794 | $ 1,236,210 |
Shareholders' equity | 1,225,555 | 1,406,640 |
Total capitalization | $ 2,332,349 | $ 2,642,850 |
Long-term debt to long-term debt plus equity ratio | 0.47% | 0.47% |
Capital Management - Additional
Capital Management - Additional Information (Detail) $ in Thousands, $ in Thousands | Dec. 31, 2021CAD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020CAD ($) | Dec. 31, 2020USD ($) |
Disclosure Of Capitalisation [Line Items] | ||||
Cash | $ 40,588 | $ 108,772 | ||
Senior Credit Facility [Member] | ||||
Disclosure Of Capitalisation [Line Items] | ||||
Line of credit borrowing capacity | $ 500,000 | $ 500,000 | ||
Line of credit outstanding | 118,000 | 75,000 | ||
Letters of credit outstanding | 33,000 | 32,000 | ||
Secured Operating Facility [Member] | ||||
Disclosure Of Capitalisation [Line Items] | ||||
Line of credit borrowing capacity | 97,000 | 97,000 | ||
40.0 Million Secured Operating Facilities [Member] | ||||
Disclosure Of Capitalisation [Line Items] | ||||
Line of credit borrowing capacity | 40,000 | 40,000 | ||
Letters of credit outstanding | $ 7,000 | $ 7,000 | ||
30.0 Million Operating Facilities [member] | ||||
Disclosure Of Capitalisation [Line Items] | ||||
Line of credit borrowing capacity | 30,000 | 30,000 | ||
Letters of credit outstanding | 3,000 | 2,000 | ||
15.0 Million Secured Operating Facilities [Member] | ||||
Disclosure Of Capitalisation [Line Items] | ||||
Line of credit borrowing capacity | 15,000 | 15,000 | ||
Line of credit outstanding | $ 0 | $ 0 |
Components of Changes in Non-ca
Components of Changes in Non-cash Working Capital Balances (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Of Change In Noncash Working Capital Balances [Abstract] | ||
Accounts receivable | $ (50,255) | $ 103,857 |
Inventory | 1,993 | 5,181 |
Accounts payable and accrued liabilities | 44,986 | (53,666) |
Non cash working capital | (3,276) | 55,372 |
Operations | (13,018) | 55,391 |
Investments | $ 9,742 | $ (19) |
Components of Accounts Receivab
Components of Accounts Receivable (Detail) - CAD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Accounts Receivable [Abstract] | ||
Trade | $ 152,897 | $ 113,933 |
Accrued trade | 26,731 | 16,769 |
Prepaids and other | 76,112 | 76,507 |
Trade and other current receivables | $ 255,740 | $ 207,209 |
Components of Accounts Payable
Components of Accounts Payable and Accrued Liabilities (Detail) - CAD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Accounts Payable And Accrued Liabilities1 [Abstract] | ||
Accounts payable | $ 90,750 | $ 56,922 |
Accrued liabilities: | ||
Payroll | 68,953 | 44,533 |
Other | 64,420 | 49,502 |
Accounts payable and accrued liabilities | $ 224,123 | $ 150,957 |
Supplemental Information - Addi
Supplemental Information - Additional Information (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Supplemental Information [Line Items] | ||
Operating expense | $ 698,144 | $ 583,420 |
General and administrative expense | 95,931 | 70,869 |
Depreciation and amortization gain on asset disposal loss on asset decommissioning and reversal of impairment of property plant and equipment [Member] | ||
Supplemental Information [Line Items] | ||
Operating expense | 263,000 | 293,000 |
General and administrative expense | $ 11,000 | $ 11,000 |
Summary of Operating and Genera
Summary of Operating and General and Administrative Expenses (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Expenses by nature [abstract] | ||
Wages, salaries and benefits | $ 482,695 | $ 438,209 |
Wage subsidies | (24,108) | (26,297) |
Purchased materials, supplies and services | 278,743 | 240,591 |
Share-based compensation | 56,745 | 19,847 |
Operating and general and administrative expenses | 794,075 | 672,350 |
Allocated to: | ||
Operating expense | 698,144 | 583,420 |
General and administrative | 95,931 | 70,869 |
Restructuring | 0 | 18,061 |
Operating and general and administrative expenses | $ 794,075 | $ 672,350 |
Contingencies and Guarantees -
Contingencies and Guarantees - Additional Information (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2021CAD ($) | |
Tax contingent liability [Member] | |
Disclosure of contingent liabilities [Line Items] | |
Disclosure of uncertainties of contingent liabilities | The business and operations of the Corporation are complex and the Corporation has executed a number of significant financings, business combinations, acquisitions and dispositions over the course of its history. The computation of income taxes payable as a result of these transactions involves many complex factors as well as the Corporation’s interpretation of relevant tax legislation and regulations. The Corporation’s management believes that the provision for income tax is adequate and in accordance with IFRS and applicable legislation and regulations. However, there are tax filing positions that have been and can still be the subject of review by taxation authorities who may successfully challenge the Corporation’s interpretation of the applicable tax legislation and regulations, with the result that additional taxes could be payable by the Corporation. |
Legal proceedings contingent liability [Member] | |
Disclosure of contingent liabilities [Line Items] | |
Disclosure of uncertainties of contingent liabilities | The Corporation, through the performance of its services, product sales and business arrangements, is sometimes named as a defendant in litigation. The outcome of such claims against the Corporation is not determinable at this time; however, their ultimate resolution is not expected to have a material adverse effect on the Corporation. |
Other contingent liabilities [Member] | |
Disclosure of contingent liabilities [Line Items] | |
Disclosure not practicable | The Corporation has entered into agreements indemnifying certain parties primarily with respect to tax and specific third-party claims associated with businesses sold by the Corporation. Due to the nature of the indemnifications, the maximum exposure under these agreements cannot be estimated. No amounts have been recorded for the indemnities as the Corporation’s obligations under them are not probable or determinable. |
Obligation amount | $ 0 |
Long-Term Debt Guarantors - Add
Long-Term Debt Guarantors - Additional Information (Details) - Dec. 31, 2021 $ in Thousands, $ in Millions | CAD ($) | USD ($) |
Disclosure of subsidiaries [line items] | ||
Borrowings | $ 1,126,113 | |
Unsecured Senior Notes [Member] | ||
Disclosure of subsidiaries [line items] | ||
Borrowings | $ 400 | |
Unsecured Senior Notes [Member] | Guarantor Subsidiaries [Member] | ||
Disclosure of subsidiaries [line items] | ||
Borrowings | 946,000 | |
Unsecured Senior Notes Outstanding Due in 2026 [Member] | Guarantor Subsidiaries [Member] | ||
Disclosure of subsidiaries [line items] | ||
Borrowings | 440,000 | |
Unsecured Senior Notes Outstanding Due in 2026 [Member] | Guarantor Subsidiaries [Member] | ||
Disclosure of subsidiaries [line items] | ||
Borrowings | $ 506,000 |
Statements of Financial Positio
Statements of Financial Position (Detail) - CAD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Assets | ||
Current assets | $ 319,757 | $ 342,263 |
Property, plant and equipment | 2,258,391 | 2,472,683 |
Accounts receivable, intercompany | 255,740 | 207,209 |
Liabilities and shareholders' equity | ||
Current liabilities | 238,120 | 166,840 |
Long-term debt | 1,106,794 | 1,236,210 |
Accounts payable and accrued liabilities, intercompany | 224,123 | 150,957 |
Parent And Guarantor Subsidiaries [Member] | ||
Assets | ||
Current assets | 219,013 | 227,265 |
Property, plant and equipment | 1,909,951 | 2,085,460 |
Other non-current assets | 79,033 | 79,104 |
Accounts receivable, intercompany | 34,373 | 35,500 |
Short-term advances to affiliates | 11,686 | 13,359 |
Liabilities and shareholders' equity | ||
Current liabilities | 200,784 | 123,472 |
Long-term debt | 1,106,794 | 1,236,210 |
Other non-current liabilities | 87,411 | 86,303 |
Accounts payable and accrued liabilities, intercompany | 33,820 | 25,374 |
Long-term advances from affiliates | $ 128,606 | $ 89,830 |
Statements of Loss (Detail)
Statements of Loss (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of subsidiaries [Line Items] | ||
Revenue | $ 986,847 | $ 935,753 |
Expenses | 698,144 | 583,420 |
Earnings before income taxes, loss (gain) on redemption and repurchase of unsecured senior notes, loss on investments and other assets, finance charges, foreign exchange, gain on asset disposals, and depreciation and amortization | 192,772 | 263,403 |
Net loss | (177,386) | (120,138) |
Parent And Guarantor Subsidiaries [Member] | ||
Disclosure of subsidiaries [Line Items] | ||
Revenue | 844,619 | 752,794 |
Expenses | 690,149 | 548,991 |
Earnings before income taxes, loss (gain) on redemption and repurchase of unsecured senior notes, loss on investments and other assets, finance charges, foreign exchange, gain on asset disposals, and depreciation and amortization | 154,470 | 203,803 |
Net loss | $ (171,030) | $ (144,086) |
Summary of Subsidiaries (Detail
Summary of Subsidiaries (Detail) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Precision Limited Partnership [Member] | ||
Disclosure of subsidiaries [Line Items] | ||
Country of incorporation | Canada | |
Ownership Interest | 100.00% | 100.00% |
Precision Drilling Canada Limited Partnership [Member] | ||
Disclosure of subsidiaries [Line Items] | ||
Country of incorporation | Canada | |
Ownership Interest | 100.00% | 100.00% |
Precision Diversified Oilfield Services Corp [Member] | ||
Disclosure of subsidiaries [Line Items] | ||
Country of incorporation | Canada | |
Ownership Interest | 100.00% | 100.00% |
Precision Drilling (US) Corporation [Member] | ||
Disclosure of subsidiaries [Line Items] | ||
Country of incorporation | United States | |
Ownership Interest | 100.00% | 100.00% |
Precision Drilling Holdings Company [Member] | ||
Disclosure of subsidiaries [Line Items] | ||
Country of incorporation | United States | |
Ownership Interest | 100.00% | 100.00% |
Precision Drilling Company LP [Member] | ||
Disclosure of subsidiaries [Line Items] | ||
Country of incorporation | United States | |
Ownership Interest | 100.00% | 100.00% |
Precision Completion and Production Services Ltd [Member] | ||
Disclosure of subsidiaries [Line Items] | ||
Country of incorporation | United States | |
Ownership Interest | 100.00% | 100.00% |
Grey Wolf Drilling Limited [Member] | ||
Disclosure of subsidiaries [Line Items] | ||
Country of incorporation | Barbados | |
Ownership Interest | 100.00% | 100.00% |
Grey Wolf Drilling Barbados Ltd [Member] | ||
Disclosure of subsidiaries [Line Items] | ||
Country of incorporation | Barbados | |
Ownership Interest | 100.00% | 100.00% |