Precision Drilling (PRE1) AI Stock Analysis

Company Guidance

For Q4, Precision expects Canadian average active rig count in the low-70s versus 66 average rigs working in prior year Q4, with daily operating margins between $13.5 thousand and $14.5 thousand; U.S. average rig count in the low- to mid-40s, with daily operating margins between U.S. $9.5 thousand and U.S. $10.5 thousand; internationally, 7 rigs with elevated operating costs; and C&P EBITDA to remain in line with prior year levels. For full year 2026, capital expenditures are expected in a range between $275 million and $285 million, depreciation at $325 million, cash interest expense from debt at $45 million, the effective tax rate at approximately 25% to 30%, SG&A at $100 million before share based compensation expense, and share based compensation at $25 million to $50 million assuming a share price between $100 and $150 and a 1x multiplier, with the multiplier able to range between 0 and 2x; Precision also expects business cash taxes to remain low in 2026 with cash taxes slightly increasing in Canada in 2027, to maintain over $460 million in total liquidity, reach its $100 million debt reduction target for 2026, and continue to repurchase shares in the fourth quarter.