Precision drilling reduces its capital expenses provided for in 2025 due to the uncertainty of the market and a possible decrease in demand from the oil and gas producers who contract its platforms.
The director general Kevin Neveu says that Precision plans to spend $ 200 million this year, a reduction of 25 million dollars compared to his previous forecasts.
This includes a drop of $ 8 million in upgrade spending that acted as a “reserved space” in the precision budget for potential projects in its American or international segments.
Nephew says that if one or the other of these markets bounced this year, the precision would plan to crawl spending – but only if the financial yields and the terms of the contract pass.
The rest of the spending discounts were to be for maintenance capital, the precision of which had reserved to take advantage of the discounts of the end -of -year suppliers.
The precision has reduced certain staff members by leaving his well-being business in the North Dakota, where he had 10 platforms.
“We initially entered this market to provide services to Canadian customers operating in Northern Dakota. And for several years, this company worked well,” analysts said at a conference on Thursday.
“When our Canadian customers left the market, we competed with local mom and pop service providers for customers very sensitive to prices. And although last year was a year of positive cash flow for this segment, we did not achieve our goal of capital return. ”
Six platforms are returned to Canada from North Dakota, while others have to be sold in the United States, he added.
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Neveu said that the feeling he gets customers is that they should be able to continue working with West Texas intermediate crude prices at their current levels just above $ 60 in the barrel – but it’s more tenuous for us players than for Canadian players.
He warned that the information accuracy obtains customers is “designed to create a price voltage with us” and may not provide the complete image.
“But it seems that in American oily basins, low of US $ 60, a US $ 50 top is probably stable. Return below a little than US $ 50, and the level of uncertainty increases,” he said.
In Canada, who saw the discount on his narrow heavy brut with the opening of the expansion of the Trans Mountain pipeline to the British Columbia Coast, crude should dive around 50 American $ “before our customers become too nervous about the activity,” he said.
Neveu’s comments occur one day after the precision declared a net profit of the first quarter attributable to shareholders of $ 34.5 million, or $ 2.20 per share diluted, against $ 36.5 million or $ 2.53 per share diluted a year earlier.
The income was $ 496.3 million in the first three months of 2025, compared to $ 527.8 million.
& Copy 2025 the Canadian press