PDS - Earnings call transcript Q2 2022 | Precision Drilling Corporation

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Carey Ford

Thank you, Michelle, and good afternoon.

Before we begin our call, I'm pleased to introduce Lavon [indiscernible], who joined Precision a little over a month ago as Director of Investor Relations. Lavon will be overseeing Investor Relations activities for Precision and we are delighted to have her on our team. With that, I'll hand it over to Lavon.

Unidentified Company Representative

Welcome to Precision Drilling's 2022 Second Quarter Earnings Conference Call and Webcast. with Carey be Ford, call and Neveu, today's and CEO our on me Kevin will President Participating CFO. operational you, Earlier second this by with quarter strong outlook an followed results, which from morning, Carey will Precision Kevin. update and reported commentary review have comments, we finished to the will prepared our we open call Once question.

our today other risks to statements, our non-IFRS filings subject are Some and which information measures, and Please a measures on and comments forward-looking risk to of of news financial for more will statements, refer number regulatory factors. uncertainties. see forward-looking release will financial include and

As a to dollars you our results over unless introductory some in comments. reminder, Canadian we express for Kevin, otherwise indicated. financial

Kevin Neveu

Lavon afternoon. Thank and good you,

key themes. For draw earnings today's I'd three like call, to to your attention

triple industry supply and increase. demand in continues our rigs markets Canadian to customer our rates limited strengthen and for and extremely to super drilling margins continue with U.S. First,

maximizing make Second, controlling margins. our progress we our to expanding operational continue leverage, and tightly excellent costs,

will digital acquisition the remainder and deliver indicators sheet, through stronger our and on second priorities, includes on now and review for performance Carey debt financial I'll servicing cash ask reducing which track of are fuel all financial and we are this pointing free quarter to well year leading ESG third, both all and deliver XXXX. of strengthening scaling XXXX generating and and our our offerings, balance Our strategic firmly leverage flow to margin synergies our And debt results. leverage. cost

Carey Ford

the CADXX compensation, well year, if in basis, The On from the North higher XX% Canada. in QX we increasing same while revenue and an doubled demonstrate was million. steadily to activity EBITDA annualized and Canada in EBITDA activity quarter control American XX% of exclude QX to XX% margins. than more increased XX% than drilling success Kevin. CADXX CADXXX year in rates period and expand and the in the and day was the stock-based operational second million U.S. XXXX. Precision's and U.S. compared maximizing drilling increased leverage event last million, period adjusted reflect adjusted last same XX% our Thanks results the

quarter, the was turnkey in on well to The site evacuate crew project procedures U.S. the control well proper a experienced event followed During able injuries. no safely a we and the with

outcome. We are safe appreciative of resulting this field actions in our leadership's

As we are of the recognizing gain the per net between million, $X difference rig. value value the book for event, of disposal on the a insured and accounting approximately the the

a deductible. cost loss million and of the the job We are $X of zero for revenue, the insurance booking

We through are writing off the of million rig net the book value of depreciation. $X

value proceeds job. process $X of ongoing associated until sheet or rig reflected insurance is balance minus and will For the cleanup accruing remediation $XX site cost accounts expected payable cleanup receivables, the with payable $XX million on Remediation and which and a insurance deductible insured offsetting with covers increases Precision's be are we the well are costs, the decreases and the costs in received. the in and million turnkey million any and associated remediation

-- events. the and the adjusted to million this charge For million income we the quarter, was associated negative the $X.X be impact EBITDA with to expect statement only CADX.X

proceeds are the once expect of to cash neutral event impact We be this insurance received.

quarter in through fourth into day expect cost the day absorption, fixed margins and $X,XXX with per for the $X,XXX per in impact turnkey $XX,XXX higher in margins Moving any than our was or of line guidance day QX IBC normalized repricing $X,XXX moving increase. Alpha the approximately to improved increase With QX, the to we resulting by and margins spot U.S., and the absent $XXXX of to the per daily operating quarter. in market Technologies, day our impact average quarter of mid-$X,XXXs for rigs, per $X,XXX,

daily this a the last on day which our hovering the field QX second to per With call out bottom are half of reminder, In margins with our to field XXXX, margins of margin we to double was our during played per the to into forward from nearly projecting we As through first guidance, mid-$X,XXXs to U.S. forecasted continue margin increase QX. Canada, year, operating margins QX in year. QX quarter in day XXXX. CADX,XXX low and

resulted our certainly operations. operating equipment with such capital excess higher certain and our we -- the wear the guidance daily operating increase. strong about was quarter, higher of We've by margin has through conversations supported customers per per inflationary our maintenance impacts day additional labor and provincial significantly and during to and the In impact operating and have productive factors cost daily quarterly have driven in these XXXX, and increased our our within both with quarter, incurred higher associated highly costs labor sides A recoveries. and had note margin of increased costs costs Alpha daily day CEWS costs cost costs we costs Of and Excluding performance agreed CADX,XXX repair of during rates. have in day the on Canada, Technologies, CADXXX daily due higher day and and rates, exceeded operating mainly higher communicated to pass-through which taxes, border. as previously higher our costs, the as pass higher operating

CADX,XXX daily impact cost and due fixed increased expect we operating CADX,XXX approximately day, increase Technologies, absorption. QX, margins year-over-year to of cost increase improved to of recoveries, to For per a Alpha pricing, CADX,XXX to

was CADX,XXX. For reference XXXX operating excluding daily in one-time QX margin and CEWS recoveries

industry-wide by revenue our increase CADX results in These hours, was CADXX Moving impacted as million. to high our of service a and labor rates EBITDA to and up. improved shortage well positively assets day pricing were segments, is XX% million, adjusted increased driving XX% quality while C&P skilled

believe with and to support our Our debt significant is acquisition within With synergies potential to service this we annualized cash recent well accretive ability consolidation expected reduction flow needed scale, cost transaction million our service of well our generate industry. our the strategy. provides an CADX and leverage the

CADXXX expect the between million days. transaction close We with the and target by year. We XXXX committed CADXX debt XXXX coming this to firmly of over to remain million in a reducing

we quarter, CADXXX and by in cash senior the with credit than of ended million the CADXX and quarter more reduced facility liquidity in excluding million During available CADXX million our balance credit. letters

Our trailing net ratio debt approximately the is of cost times XX-month average EBITDA to debt X.X%. and is X.X

for three longer are customer-back commitments higher We term improved opportunities our of over an we concerns second locking take-or-pay require rig rates up for spec rig and With before upgrades. capital to rig to increasing about on XXXX half year million XXXX in pipe year the capital net expect to the which rising goal and year deliver are the compensation X.X CADXXX day share-based This end contracts, Precision's flow expect is our EBITDA XX we're debt to cash our for particularly decline upgrades, times. by drill in free To for our into further million. of closer certain be we and and driving high toward into expense from below outlook which budget during times XXXX. of seeking commitments, CADXXX would availability, customers adjusted term

we within contract of upgrades, well cost our the require our of return the rates cash and full term for of above reminder, a cash As on payback capital.

compensation expected XXXX. million to to cash turn share-based is expected million to call be be expense expected is Depreciation I million, Moving SG&A be year, over approximately CADXX X%. be cash to low effective are approximately and tax on to the the CADXX before will for expected interest CADXXX and now expense, CADXX will million guidance for taxes our Kevin. to our to remain is rate

Kevin Neveu

virtually Thank we we of all willingly term in is year be walking this contracts rise rates active. you, rates. industry to Precision and supply confirmed In customer American Triple first at we're see is added climb operating into the XX market class this beginning this XX the gaining year, across Since term bookings to this doubt customer will North rigs continue There's service a we quarter tightness highest and lines. XXs tight leading the and contracts. sensing the our and call United Day with rigs Carey. activity we've conference demand momentum is very no in expect high later rig as the edge contracts, for shortages that are all Super States, and currently discussed rigs

mentioned systems, Emissions EverGreen Power from to Some ranging pumps rig automation systems. Carey upgrades, padlocking Power earlier, and Monitoring Battery included addition of Energy systems, third of with are several and Also these the EverGreen Highline Management involving the generators and apps. EverGreen Storage

an pricing many have over extended horizontal in contracts other and per With and of Analytics range. as these Carey investment, thresholds. Services opportunities years. and rigs all are and appropriate the both Apps, to with now will of on upgrades drilling term. are Triple and discipline Alpha during several bid margin return mentioned, something rigs the all we've that backed services not some pressure drilling tactical support, in which are several the rigs capabilities. Precision's are the keenly Superior drilling rejected desired Alpha active will the mid-XXs CADXX,XXX such high-XXs for Market Leading all our and As pads approaching rates Over consideration quarter now by remain Alpha fleet rates all a performance. below bill Today rate. above to day our day customer contract enhance two-thirds Digital the drilling Alpha invested which We expectations in range managed further utilize pricing adopting remains virtually is focused we key it's capital ensure -- on these multi-well with financial Alpha Automation rates improving levels, capital seen day and in take-or-pay return

in fleet-wide rates the margin by already expect filtered Alpha bottomed quarter Carey [ph] as we leading pace, through approximately last margins our As as We've recovery CADX,XXX our revenues recovered and to year. pick early fleet. up this of Automation mentioned, in third

guidance, you six reported lag to the can approach see for typically our is months. from nine rates previously edge averages day fleet time trends to leading rate As

a strong drilling for cash profile flow project XXXX. we such through U.S. As business

XXXX Columbia British cost-effective rates liquid several activity the choice and a strengthening heavy to highly in of this leading and regions activity of oil above activity mentioned Precision's to heavy rig gas customer request. conventional our our we're the for activity the the In year. in gas XX I are we Currently, and the and has Super have in a share. quarter. remains Turning market oil XX% available gas with Alberta and strong. well emerged operators rig conventional rigs visibility Canada. first operating to Clearwater well Basin, SAGD, the most Super in booked this are year, plus previously oil, several prices. demand the region led over and XX play utilization we seeing region exceed rigs of rebound low in quarter to over safety clear and by market, oil X,XXX by edge is fleet last Super diverting XXs commodity expect Montney for Permitting Canadian choice strong progressing Single XX mid-term. remains into other which the Deep in delays half Triples, we pad see supported rates Clearwater later late the rig the The a but exceeding to levels fully triple rigs we Currently, have strong for rebounded and Precision's with and of to next Triple

in self-funded of through and new margins, into healthy, available rising for on for rates, more financial to push could most not in efficient doubles as DJ builds, contract one for rates service may stimulate the Triples is possible and or will a these in tele rigs rates XXs do will recovery Canada to as It for Returning that some investors. mobilize less market. is we the market as Super two rig essential we industry rates rigs. continue. incremental the efficient drive believe potential demand While or that the industry This Precision's we the Canada heavy lead the our compete leading customers pricing even also to customers that terms performance. continues Canada position and Basin, our for profitable dictates

up the especially market As impact customers to have customers I has This services to QX, team been contracts work pandemic. accustomed too our given discipline short-term deflation mentioned the we've committed last customer to there's of QX sales rigs expectations are simply conversations XX has question in upgrades. years, who and rig where share third projects. excess this to supply with pricing that calls, is back pushing pricing price are to has no low, uncomfortable to the of marching led Precision's cover order Precision some rejecting grown accept to unwilling on a or take-or-pay rates profitability some the and prior the for several and through XX

displays combined the caught up market returning cash over XX regarded penetration high strong to we flow demands Precision customer we Alpha segment Canadian this business and strong a peak and arctic XXX profile. with However, becoming Delta our in Alpha level widely Automation running our by free to be essentials of expect pricing Canada XX to marketed has as adoption will benefits remain range the our Customer Concord adding by this servicing this in XX% QX over in Super to the are rigs Canadian and running profitability will team, Today, with committed branded the Triple experiencing are at later of quarter. expected service our thrilled we U.S. Group. be We're end. Well rigs in from Concord highly where accepted XX already well this are to our hitting activity XX% rise Servicing of customers. people our XX year sustaining week, rigs

working over a pricing Our utilization continues pushing we service see That's to ways several the we per as currently and we as segment with with believe rating are yet a recover. go CADX,XXX profile. hour encouraging, very hour gains rigs projects, rigs have still revenue to highest and XX

value And about very for business and in good of bring these execute the I've it's this line to now. Now, been years deal and several together. leads this talking importance consolidation

a all synergies standpoint, will in a we flow over acquisition million model. operational from skilled press the immune. of much business and and our inherent CADX mentioned demonstrate short-term valued The parts time. the leverage labor the the release, is value be shortage As not history I believe also the scale and expect synergies oil of Precision further stressing will sector This that stronger range. cash margin economy revenue to is service

I of as the all this note operational crews retention top intensified recruiting associated of less green our processes our safety regions. focused key which people in Yet experienced The on the priority and Precision's larger service providers the Now, performance our capital of workers. a discipline, customers component away excellent been mentioned efficiency. seem with then in those challenge are field aligned this, by prioritizes challenges it's that overly remain and staffed and speed And or far and been safety has emerging with customers safety safety Precision's integrity the who we on imperative priority. a field. And tightly safety as has

will is been more our turning the our we the a multi are in and contracts for as opportunities mentioned later weeks press be international explore to our year rig rigs. we rigs quarters next early large several most under Kuwait Now, year in for important or now we that we've by submitted with other several the customer. continue This reactivated project coming development to region this remain confident segments, discussing is in hear of our to tenders release. tender the expect idle We our idle evaluation and all long-term over

period. business rigs the recently five-year Kingdom in remains a renewed further Saudi Our a with for of operating three stable Arabia

return deliver on on and Finally, both we flow capital to ensure commitments, cash remain long-term reduction manage regarding of return continue our cash carefully we and hit debt short-term capital We'll to reduction commitments. both firmly our to track debt our and targets. and uses

I'll and they Precision and wrap-up this in service spending the their thanking for delivering. and terms by the joining the Precision see for acquisition welcome business. pricing programs, results opportunistic focus cost people contract-backed intense excellent well our payment capital margin. on hard of the again, the XXX well work our in You our consideration can And creative are service employees

call I'll turn the So, operator now the back questions. for

Operator

Securities. Our Instructions] first MacNeil Aaron with from [Operator TD question comes

open. now is line Your

Aaron MacNeil

that particular on my the multiyear quarter taking you commitment be of the and scope Afternoon are you to cost? range questions. in contracts? specifically, handful And the I all. of term guess, signed? terms upgrade longer a speak maybe marginal of contracts where cost a of capital at in this you the ask question a those Thanks for are of You a might of sort Kevin, focus contracts for more and result upgrade to can higher reactivation? signed capital what

Kevin Neveu

I'll of catch Carey and part Aaron. of this part pick up it,

targeting contracting. typically years. million the contractors CADX it generator a million a range. XX if needs fourth be pump, spending or plans. maybe of range. in months customer cover end trying system in Many to would I on third payback most upper from the set some well or say third year, a the rig be are really million all, CADX longer might The of our might if scope me first cost the in of So, just investments than like what customer on IRRs return upgrades linked of term the that the capital payback We're looking two needs CADX of would that that a less just at cases, of CADX call it and these investment. are terms trends probably but a an to to be extend padlocking If linked that straight They're terms million contracts adding on kind let in longer seeing you're pump these above upgrade. cases Alpha. though, and that capital, Alpha that that capital with the -- generator are of We'll not term to we're despite a in

million CADX.X discuss CADX activation little CADX from bit Carey, you The a at beyond to a piece range million. little to really bit? there's So, range. want or is million

Carey Ford

Yes.

such packs. include battery those of just add products So, some EverGreen also as upgrades I'll

range million kind that And in on got CADX we've to all of then or gotten the rigs, to a that's on CADX capital of be rig the CADXXX,XXX now maybe million year million. -- costs some the most kind reactivating range. in U.S. CADXXX,XXX of on CADXXX,XXX range than part of really the incur And of last continue where more and side. to that into So, year. the are And this we to market, -- terms first CADX.X going more and to they've we from expensive the CADXXX,XXX quoted reactivations, that bit of U.S.

So, expense the reactivate we there's as bit a rigs in U.S. operating more

Aaron MacNeil

the Kevin, on year days, only surprised was the or--? they're to X% unusual expect paid I see balance the growth going of there Was Alpha do quarter? see Understood. on you terms at to over in percentage anything year-over-year. And this

Kevin Neveu

think utilization, getting -- help point towards only to first think growth. where the I are which now, we're And that guys adding Alpha I quarter. point should added of we're in we you my increasing to some the systems five

case the -- the the enough hard getting of into to a So, where going is to going numbers expect XX% forward. base big we're that be are bit growth little

Aaron MacNeil

Understood.

Kevin Neveu

no resistance. And certainly there's

it of seasonality of that some of you reduction. bit Canada, explanation an make a for a in there's little If bit

pieces few trajectory. a the QX So, just the should moving second in indicative a be of quarter, I results more little think

Aaron MacNeil

me even sneak question as to cost the million a -- a the there context related costs I'll million again, The lot operating it to just control for of might What's deductible, strikes Maybe CADX mediations seems like drill? actually actually accounted it just in lot. number well event, what in as well. separately in one in are clarification a the that CADX with well if

Kevin Neveu

wells. to in one the the in Coast we're to from turnkey could anywhere these say, million. wells cost -- XX gas one be drilling in along total And Aaron, typically walls Gulf let's

on or the we seeing not the it of re-drill that that, at in significant this any up we'll this recover go off give of guidance begun finish a I'd is kind you're still redraw this well, full point, haven't cost and finishing yet. what remediation, case sidetrack in that and we're expect reenter back portion So, but wall this and well, of we're and to the

Aaron MacNeil

taking Understood. it. turn Got over. questions. I'll Thanks it for my

Kevin Neveu

you. Thank

Operator

question. next our for please moment One

comes next Syed from Our ATB Waqar Financial. with question

Your line is open.

Waqar Syed

you with question. looks it runway programs, end abandonment kind work. out? there's And the federal could kind lot that into do it additional fit well my of Kevin a requires terms a in long-term you the see you how have point. Thank abandonment program for of of play at the But acquisition taking well like program that? of does also a in Alberta, some of lot How this

Waqar Syed

abandonment. of Waqar, good several There's questions. moving around a now kind pieces right

I to think increasing energy didn't important more that the things requirements call is necessarily invest probably in of the is abandonment. on Alberta regulator the the operators has we one

forcing abandonment. So, and government province. manage there's to those to I demand above core federal We're manage abandonments an that the on funded administered rising, the operators increasing it and call approve push, abandonments the seeing abandonment by program the over

things that you've got right commodity work. maintenance playing really prices, three business, of together up higher catch heavy of a So, stimulating now kind some

be You've the got amount got whales, now of got the this regulator you've and requirements, of it's going federal and abandon to to to February. abandonment that's between program work the next tail maintenance spent increase end

with a moderate see a AR to business longer servicing company short-term, strong business these requirements. kind drivers of -- some high Certainly, wells commodity has that abandoned well very we outlook, increasing an we the -- the drivers So, think the and with of term prices. but obligations around lot

kind Looking now. have winter we fall at booked of the of activity right the for

we timing think the on and as that this keen I maybe to our more acquisition key staff. for bring get XXs, us, into higher up we're was of count rig

Waqar Syed

And how and in certainly you? Is well the your business? and that U.S. in critical see business you mass servicing for you have core Canada do

Kevin Neveu

similar, are kind border. customers of similar are have type us, borders of and a we like similar Saskatchewan. it Dakota, wedge North effects The both work a on customers For the sides of sliver or a assets in the

adjacent U.S. Canada. is to in it what while it's we're So, doing revenue,

push Here is U.S. in strategic than a the adjacency

Waqar Syed

nine still to to months to look of fleet those the Carey, edge Is margins of to to leading and it And in CADXX,XXX six margins? the kinds the to CADXX,XXX that type think range. be U.S. you -- get in kind

Carey Ford

usually for think, we've historical the that specific given is averages. We've it QX. got complete how into Kevin as I leading precedence takes guidance -- for edge to said, get long guidance

I seeing edge think the array, for the soft then the XXXXs pricing reprice guidance are QX continuing to two for guidance we've fleet and Super for X,XXX, and Triple a or little look forward. quarter leading bit Certainly some then, gotten that lower. we're

I CADXX,XXX. So certainly to meaningfully short giving what we've think, stop got guidance get average some going it to what over I'll margin fleet the But runway ultimate is on of this be next year.

Waqar Syed

Sure. final question. And one just

In incident, involved? terms the understand in involved what write-off, of rig rig I of total well that the control type was

Kevin Neveu

It X,XXX was into capabilities bringing legacy we'll to in well, continue rig fleet have we rigs horsepower one our upgraded of that be our we that the with business. was and horizontal turnkey another redrill and

Waqar Syed

very you Thank much. Great.

Kevin Neveu

Waqar. you, Thank

Carey Ford

Waqar. Thanks

Kevin Neveu

queue question Operator, next the us, please. you for can

Operator

Yes.

with Our next Stifel. Cole call comes Pereira from

line ahead. open, please Your is go

Cole Pereira

rig day today? up Afternoon, does move from it range, little you winter? these Or to And higher? go everyone. in some CADXX,XXX your day Canadian that discussions a Canada so DJ? rates a talked bit from rates is think you the could a comments, but think in the to enough move Where the edge on Kevin, little in a do from leading your of thinking leading bit, low it you have edge about

Kevin Neveu

that move U.S. cost could U.S. least questions. XX to has That in same got rig the those up opportunity talking are would answer. operations. about tied have to who I've at that really great like an Well, customers said we're the also Cole, that

do cost, you've a probably health see right and in the XXs the and say rates differential if into to you then opportunity that, the if need But I'd would get we don't like that would least. we bring And the at that. getting into have things CADXX,XXX, to So, got on rates below move we're that territory. cover as

Cole Pereira

not at Okay, tail got you could concerned in rates. And can the bit but scale just thinking as mean, just you do little upgrade for tail, rate? winds Canada, sense, a that does it all significant I builds? start drillers more it. are new Or USB talked about other about large economic make and a you

Kevin Neveu

rigs there's the in think Certainly, I a of pool U.S.

of have ourselves. some We those

a a fleet spec, drives, have the have Looking for into rigs AC our conversion DC spec just kind to think beyond triples another of we full have and XX about U.S. XX at high that ser the we cost our million stretching move build. CADXX million the than beyond calendar sometime the trajectory for appears into less to the day probably to substantially in range upper CADXX rig way certainly and in If current super new XXXX we're per those looking rig, fleet super which tough up of that XXs itself, upgrades we moment, in of at the that that. bring rigs those to

think that, can industry thing. rigs the and probably do between has I XXX collectively XX like same somewhere our that look that

of among our Drilling all scale quite full still that public and being behavior our we're remains rigs. large company that And ways from Precision that think peers certainly This fundamental to discipline we are everything I away most a So, a peers. capital on doing. public of theme shortage comment companies. a see I'd we're also

and, can profile. reluctance is not and and of So, growth when we're the valued investing scarce on to I think there's based we generate, the returns, a rig lot so right capital now being capital growing on fleets

a see see in a new can cost don't drilling just you in I costed I for builds the on So, rig, where day a that's or these potential horizon, well. incremental is get really big CADXX,XXX world the days, do a which on XX upgrades. CADXX,XXX for moderately not And wells

into could XX play year. another XX bring have next we rigs think we I or

Cole Pereira

That's That's got all Okay, back. helpful. I'll for it. turn me. Thanks. it

Kevin Neveu

please Operator, you. queue Thank up the question us. for

Operator

MacKey RBC. [Operator from from comes Instructions] next question And Keith our

Keith MacKey

taking and for afternoon, thanks Hi, questions. my good

into than gas-weighted comment coming of and is on Just private your just additions contracts predominantly the start be of for? customer types little year. half wanted and U.S. can Looks oil, second these company-weighted, where might like you to what working the out the in more rig mix on bit field the a the current rigs this customers upcoming

Kevin Neveu

probably blended I looking public's mix forward private. more of both see a a

we Precision, and at And to still year-to-date have been comprised sure, looking to And the add rigs. remains the can I'm and their or public business. reluctant completions their balancing book, tell strong. public So, side and you focus traction recovering and with for looking It's rebuilding I on twos into forward of drilling. it's see growth bid quite private the to don't a do ones even more which industry-wide certainly much still primarily more yet. see start on of huge seen We shifts our E&Ps

public rigs declining to that to their think So, to drillers through rebuild inventory start start are E&Ps back in creep need DUCs. I a we'll see few that publicly of

say that forward really forward. more it's I'd weighted looking public-weighted looking So, early and

Keith MacKey

Thanks capital. just for the Maybe that turning to Kevin.

CADXXX now these comment maybe for also capital you get So a And baseline could any into capital then growth a just your XXXX, on is into spill give per average that'll to XXXX? bit maintenance XXXX. latest with there will million associated us of rig, contracts if that

Carey Ford

so Carey. Keith, this Okay, is

We haven't are CADX,XXX in trending. of later XXXX what about maintenance, spend, indication as We'll our given per is to the this capital terms like. about But looks that CADX,XXX maintenance it we'll year. do guidance think activity for an give that what costs day

Keith MacKey

forth? into based for to year contracts. rig capital And just some like ourselves all Is for Perfect. for year? how is and assume -- there year? the that of that budget then spill this spent Or We have it. so latest on the upgrade much is that'll incremental Got this of on yes just kind next

Carey Ford

be And the the rigs that of Yes, going this in pre-purchased go the capital XXXX all we've outlook pipe to million There be be of take will that gave drill before that of may CADXXX spent year, to end to maintenance year, we so will at all upgrades, will upgrade year. year. some of this work the terms the that's for the at work in the of activity. going the they're it they're rigs, end that delivery the end the

Keith MacKey

That's it the to helpful. me. That's thanks. Back Okay, for operator.

Carey Ford

Thanks Keith.

Kevin Neveu

Keith. Thanks

Operator

Instructions] [Operator you. Thank

Kevin Neveu

Okay, ahead. operator -- go

Operator

I queue. am questions Okay, at not any this in showing time, the other

Kevin Neveu

Precision Drilling (PDS) 27 Jul 222022 Q2 Earnings call transcript