Precision Drilling Announces Acquisition of CWC Energy Services

CALGARY, Alberta, Sept. 07, 2023 (GLOBE NEWSWIRE) -- This news release contains “forward-looking information and statements” within the meaning of applicable securities laws. For a full disclosure of the forward-looking information and statements and the risks to which they are subject, see the “Cautionary Statement Regarding Forward-Looking Information and Statements” later in this news release.        

Precision Drilling Corporation (“Precision”) (TSX:PD; NYSE:PDS) is pleased to announce that it has entered into an agreement to acquire all of the issued and outstanding common shares of CWC Energy Services Corp. ("CWC") (TSXV:CWC) for total consideration of approximately $141 million, comprised of 947,909 Precision shares, valued at approximately $88 million as of September 1, 2023 market close, $14 million in cash, plus the assumption of CWC’s outstanding debt.

With this transaction, Precision adds to its fleet: 62 marketed service rigs in Canada, seven marketed drilling rigs in Canada, and 11 marketed drilling rigs in the U.S., including seven AC triple rigs. Currently, three of the Canadian drilling rigs and seven of the U.S. drilling rigs are actively working for customers. Additional transaction highlights include:

• Well Positioned, High-Quality Assets: Well-maintained assets across Canada and the U.S. in complementary geographic regions supported by skilled and experienced personnel and strong customer relationships;
• Material Synergies: Precision expects to realize annual operating synergies of approximately $20 million once CWC is fully integrated, and Precision has identified approximately $20 million of excess CWC real estate that it expects to monetize post-transaction closing; and
• Financially Beneficial: Precision expects the transaction to be accretive on a 2024 cash flow per share basis and to support its ongoing deleveraging plan.
  

Precision’s President and CEO, Kevin Neveu, stated, “This acquisition supports our High Performance, High Value strategy as it allows us to expand our service offering in both Canada and the U.S. with high-quality rigs and field personnel. With the expected synergies and by further leveraging our scale, we believe the transaction will be accretive to earnings and provide significant cash flow to drive shareholder returns and support our debt reduction strategy. I am excited to welcome the CWC employees to the Precision team.”