Tuesday, September 1st14.1°C
27215
27284

Precision Drilling increases 2014 capital spending, lands new contracts

CALGARY - Precision Drilling Corp. (TSX:PD) said Monday it is increasing its 2014 capital spending by about 23 per cent and that it's been awarded several new international contracts.

The company, which provides drilling and other services to the oil and gas industry, says its budget for this year will be $634 million — a $119 million increase from its forecast released just last month.

The new plan includes $320 million for expansion capital, $195 million for sustaining and infrastructure spending and $119 million to upgrade existing rigs.

This year, Calgary-based Precision plans to deliver six new build rigs to Canada, two to the United States and three to international locations. Another one will only be completed once the company secures a firm customer contract.

Precision said it's signed a multi-year contract to deliver a new rig to the Middle East in the fourth quarter of 2014. It has also inked multi-year contracts for six drilling rigs in Mexico.

"These new contracts will grow our share of the technically challenging portion of the market and create scale benefits in our core geographic operating regions," CEO Kevin Neveu said.

He added that Precision is also encouraged by greater customer demand it's seeing in North American markets, such as the Permian Basin in West Texas and liquefied natural gas-related activity in Western Canada.

"Our footprint and customer base affords us excellent opportunities to invest capital and our focus remains on selecting the best projects producing returns on the capital we deploy and returning value to shareholders in the form of share price appreciation and dividends," said Neveu.

The Canadian Press


Read more Business News

27218


Recent Trending




Today's Market
S&P TSX13859.12-5.95
S&P CDNX559.48+3.49
DJIA16528.03-114.98
Nasdaq4776.51-51.82
S&P 5001972.18-16.69
CDN Dollar0.7570-0.0042
Gold1140.00+8.40
Oil48.33-0.87
Lumber233.00-1.20
Natural Gas2.701+0.012

 
Okanagan Companies
Pacific Safety0.185+0.020
Knighthawk0.010.00
QHR Technologies Inc1.23-0.06
Cantex0.04-0.01
Anavex Life Sciences1.35+0.01
Metalex Ventures0.05-0.00
Russel Metals22.11+0.70
Copper Mountain Mining0.63-0.01
Colorado Resources0.075-0.005
ReliaBrand Inc0.0045+0.0005
Sunrise Resources Ltd0.02-0.01
Mission Ready Services0.085+0.015
Decisive Dividend Corp2.75+0.14

 





FEATURED Property
2397849Over 1 Acre with Lakeview
$949,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Agree to ask questions

Photo: Thinkstock.comThe STORY: I think, said Janet to herself, that I just figured out a solution to my problem of letting the prospect run the meeting.With that thought in mind, she got out of her c...


Your business is not a bank

Photo: Thinkstock.comYour plumbing business is not a bank. But when you are giving terms to customers that exceed what you get from your suppliers, you become one. And every time that someone does not...


Begin with the end in mind

Photo: ContributedWe humans love our dates: birthdays, anniversaries, 9/11, the Ides of March - our lives are intimately woven within the tapestry of the calendar. So it should come as no surprise whe...

_








Member of BC Press Council


25143