Precision Drilling: Difference between revisions
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In 2008, Precision acquired its US rival Grey Wolf Inc. for $2 billion,<ref>{{Cite news |title=Canada’s Largest Drilling Company to Buy a U.S. Rival |url=https://www.nytimes.com/2008/08/26/business/worldbusiness/26mine.html |newspaper=New York Times |page=C7 |agency=Reuters |date=2008-08-26 |accessdate=2020-03-09}}</ref> a merger which expanded its US rig count over tenfold and allowed Precision to re-enter the US market which it left in 2005.<ref>{{Cite web |title=4th time lucky as Precision Drilling acquires Grey Wolf |url=https://www.cbc.ca/news/business/4th-time-lucky-as-precision-drilling-acquires-grey-wolf-1.708711 |publisher=CBC News |agency=Canadian Press |date=2008-08-25 |accessdate=2020-03-09}}</ref> The acquisition led to financial difficulties which led to a $330M CAD investment by the [[Alberta Investment Management Corporation]] (AIMCo) in 2009,<ref>{{Cite news |last=Cattaneo |first=Claudia |title=Alberta boost for Precision is investment, not aid: AIMCo |url=http://www.edmontonjournal.com/Alberta+boost+Precision+investment+AIMCo/1514986/story.html |newspaper=Edmonton Journal |agency=Financial Post |date=2009-04-20 |accessdate=2020-03-09}}</ref> characterized by ''[[Maclean's]]'' as a [[bailout]].<ref name="bailout">{{Cite news |title=Alberta government takes major stake in Precision Drilling |url=https://www.macleans.ca/general/alberta-government-takes-major-stake-in-precision-drilling/ |magazine=Maclean's |date=2009-04-20 |accessdate=2020-03-09}}</ref> AIMCo divested its stake in 2013.<ref>{{Cite news |last=Ratner |first=Jonathan |title=Precision Drilling upgraded after AIMCo sell-off |url=https://business.financialpost.com/investing/trading-desk/precision-drilling-upgraded-after-aimco-sell-off |newspaper=Financial Post |date=2013-12-09 |accessdate=2020-03-09}}</ref> |
In 2008, Precision acquired its US rival Grey Wolf Inc. for $2 billion,<ref>{{Cite news |title=Canada’s Largest Drilling Company to Buy a U.S. Rival |url=https://www.nytimes.com/2008/08/26/business/worldbusiness/26mine.html |newspaper=New York Times |page=C7 |agency=Reuters |date=2008-08-26 |accessdate=2020-03-09}}</ref> a merger which expanded its US rig count over tenfold and allowed Precision to re-enter the US market which it left in 2005.<ref>{{Cite web |title=4th time lucky as Precision Drilling acquires Grey Wolf |url=https://www.cbc.ca/news/business/4th-time-lucky-as-precision-drilling-acquires-grey-wolf-1.708711 |publisher=CBC News |agency=Canadian Press |date=2008-08-25 |accessdate=2020-03-09}}</ref> The acquisition led to financial difficulties which led to a $330M CAD investment by the [[Alberta Investment Management Corporation]] (AIMCo) in 2009,<ref>{{Cite news |last=Cattaneo |first=Claudia |title=Alberta boost for Precision is investment, not aid: AIMCo |url=http://www.edmontonjournal.com/Alberta+boost+Precision+investment+AIMCo/1514986/story.html |newspaper=Edmonton Journal |agency=Financial Post |date=2009-04-20 |accessdate=2020-03-09}}</ref> characterized by ''[[Maclean's]]'' as a [[bailout]].<ref name="bailout">{{Cite news |title=Alberta government takes major stake in Precision Drilling |url=https://www.macleans.ca/general/alberta-government-takes-major-stake-in-precision-drilling/ |magazine=Maclean's |date=2009-04-20 |accessdate=2020-03-09}}</ref> AIMCo divested its stake in 2013.<ref>{{Cite news |last=Ratner |first=Jonathan |title=Precision Drilling upgraded after AIMCo sell-off |url=https://business.financialpost.com/investing/trading-desk/precision-drilling-upgraded-after-aimco-sell-off |newspaper=Financial Post |date=2013-12-09 |accessdate=2020-03-09}}</ref> |
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In 2018, Precision |
In 2018, Precision attempted to purchase [[Trinidad Drilling]] with over $1B CAD of shares as a [[white knight]], opposing the cash bid of competitor [[Ensign Energy Services]], however a drop in Precision's share price and thus bid value resulted in Ensign's bid prevailing.<ref>{{Cite news |last=Morgan |first=Geoffrey |title=Precision demands $20M in break fee from Trinidad Drilling as rival wins hostile bid |url=https://business.financialpost.com/commodities/energy/precision-demands-20m-in-break-fee-from-trinidad-drilling-as-rival-ensigns-hostile-bid-prevails |newspaper=Financial Post |date=2018-11-27 |accessdate=2020-03-09}}</ref> |
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In September 2019, amid a difficult [[energy sector]] in Alberta, Precision Drilling Corporation's share price fell below the required minimum for the [[S&P/TSX Composite Index]] and was removed from the [[Index (economics)|index]].<ref>{{Cite news |last=Kury de Castillo |first=Carolyn |title=Precision Drilling among 7 Calgary-based companies dropped from S&P/TSX composite index |url=https://globalnews.ca/news/5950829/calgary-companies-alberta-dropped-sp-tsx-market-index/ |publisher=Global News |date=2019-09-25 |accessdate=2020-03-10}}</ref> |
In September 2019, amid a difficult [[energy sector]] in Alberta, Precision Drilling Corporation's share price fell below the required minimum for the [[S&P/TSX Composite Index]] and was removed from the [[Index (economics)|index]].<ref>{{Cite news |last=Kury de Castillo |first=Carolyn |title=Precision Drilling among 7 Calgary-based companies dropped from S&P/TSX composite index |url=https://globalnews.ca/news/5950829/calgary-companies-alberta-dropped-sp-tsx-market-index/ |publisher=Global News |date=2019-09-25 |accessdate=2020-03-10}}</ref> |
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Revision as of 12:52, 22 March 2020
.png) | |
| Company type | Public |
|---|---|
| TSX: PD NYSE: PDS | |
| Industrie | Oil Well Services |
| Genre | Oilfield services company |
| Gegründet | 1951 |
| Hauptsitz | Calgary, Alberta, Canada |
Key people | CEO: Kevin A. Neveu |
| Produkte | Oil field services and rentals |
| Revenue | $1.54 billion CAD (2009)[1] |
Number of employees | 4,469 (2019)[1] |
| Website | www |
Precision Drilling Corporation is the largest drilling rig contractor in Canada, also providing oil field rental and supplies.
History
Precision Drilling Ltd. was founded in 1951.[2]
In 1987, Precision Drilling was acquired by Cypress Drilling, led by president Hank Swartout, in a reverse takeover which left the company with a fleet of 19 rigs.[3] Swartout led the company through extensive growth until his retirement in 2007.[4]
In 2005, Precision sold its energy services and international contract-drilling divisions to Weatherford International for $2.28 billion[5] and reorganized as an income trust.[3][6] Precision converted from an income trust back to a corporation in 2010.[7]
In 2008, Precision acquired its US rival Grey Wolf Inc. for $2 billion,[8] a merger which expanded its US rig count over tenfold and allowed Precision to re-enter the US market which it left in 2005.[9] The acquisition led to financial difficulties which led to a $330M CAD investment by the Alberta Investment Management Corporation (AIMCo) in 2009,[10] characterized by Maclean's as a bailout.[11] AIMCo divested its stake in 2013.[12]
In 2018, Precision attempted to purchase Trinidad Drilling with over $1B CAD of shares as a white knight, opposing the cash bid of competitor Ensign Energy Services, however a drop in Precision's share price and thus bid value resulted in Ensign's bid prevailing.[13]
In September 2019, amid a difficult energy sector in Alberta, Precision Drilling Corporation's share price fell below the required minimum for the S&P/TSX Composite Index and was removed from the index.[14]
Global fleet
In 2019, Precision had 109 land drilling rigs in Canada (21% of the industry total), 104 in the US (5% of total), and 13 among Kuwait, Saudi Arabia, Iraqi Kurdistan, and Georgia.[1]
See also
References
- ^ a b c "2019 Annual Information Form" (PDF). Precision Drilling Corporation. March 9, 2020. Retrieved March 10, 2020.
- ^ "Our History". Precision Drilling. Archived from the original on December 3, 2018. Retrieved March 9, 2020.
- ^ a b Stastny, R.P. (November 6, 2018). "Precision Founder Hank Swartout One Of The Defining Personalities In Canadian Drilling". Daily Oil Bulletin. Retrieved March 9, 2020.
- ^ "Precision Drilling's Swartout to retire". Globe and Mail. Calgary. May 8, 2007. Retrieved March 9, 2020.
- ^ "Weatherford to Buy Two Oil Drilling Units". New York Times. June 7, 2005. p. C8. Retrieved March 9, 2020.
- ^ Precision Drilling Corporation (September 7, 2005). "Precision Drilling to Reorganize into an Income Trust". Rigzone. Retrieved March 9, 2020.
- ^ "Precision Drilling to convert to corporation". Globe and Mail. Calgary. February 12, 2010. Retrieved March 9, 2020.
- ^ "Canada's Largest Drilling Company to Buy a U.S. Rival". New York Times. Reuters. August 26, 2008. p. C7. Retrieved March 9, 2020.
- ^ "4th time lucky as Precision Drilling acquires Grey Wolf". CBC News. Canadian Press. August 25, 2008. Retrieved March 9, 2020.
- ^ Cattaneo, Claudia (April 20, 2009). "Alberta boost for Precision is investment, not aid: AIMCo". Edmonton Journal. Financial Post. Retrieved March 9, 2020.
- ^ "Alberta government takes major stake in Precision Drilling". Maclean's. April 20, 2009. Retrieved March 9, 2020.
- ^ Ratner, Jonathan (December 9, 2013). "Precision Drilling upgraded after AIMCo sell-off". Financial Post. Retrieved March 9, 2020.
- ^ Morgan, Geoffrey (November 27, 2018). "Precision demands $20M in break fee from Trinidad Drilling as rival wins hostile bid". Financial Post. Retrieved March 9, 2020.
- ^ Kury de Castillo, Carolyn (September 25, 2019). "Precision Drilling among 7 Calgary-based companies dropped from S&P/TSX composite index". Global News. Retrieved March 10, 2020.