Precision Drilling Corporation (ticker: PDS) announced a 2018 CapEx of $94 million. The company said $62 million has been reserved for maintenance and infrastructure and $32 million will be used to upgrade existing rigs. The company said $94 million will be split – $88 million in the contract drilling services segment and $6 million in the completion and production services.
The capital plan includes approximately 10 to 20 upgrades to the existing rig fleet to selectively increase pumping and racking capacities, add walking systems and/or rig automation software. 2017 CapEx was approximately $104 million, consistent with previous guidance.
Source: PDS
Balance sheet update
- Senior credit facility amendments: reduction in size from $525 to $500 million, two-and-a-half-year maturity extension to November 2021
- Inclusive of the most recent refinancing transaction, Precision has reduced long-term debt by approximately $266 million over the past two years
- Closed private offering of $400 million, aggregate principal amount of 7.125% Senior Notes due 2026. Precision will use proceeds from the offering, together with approximately US$50 million of cash on hand, to fund the previously announced tender offer of any and all outstanding Senior Notes due 2020 and US$70 million aggregate principal amount of Senior Notes due in 2021, and to fund the redemption of the 2020 Senior Notes not tendered during the tender offer.
