Precision Drilling says that on Monday, it expects to finalize a partial redemption of US$50 million of is 6.5 per cent senior notes which were to come due in 2021.  Company photo.

Precision Drilling also buying back some 2021, 2024 notes

Precision Drilling Corporation announced on Monday that it expects to complete a partial redemption of US$50 million principal amount of its 6.50 per cent senior notes due 2021 by June 15.

As well, the company reports it has made open market repurchases totalling US$8 million principal amount of its 2021 and 2024 notes. Both the partial redemption and open market repurchases were funded with cash flow generated in the second quarter.

These transactions account for total debt reduction of approximately $75 million with annualized interest savings of approximately $5 million.

In a press release, the Calgary-based company said “We are pleased with the progress we have made towards our longer-term goal of reducing debt by $300 million to $500 million by the end of 2021 and we will monitor further opportunities to reduce debt throughout 2018”.

Precision currently has 76 active rigs in the US, up from the first quarter average of 64 rigs.

“We are mobilizing a ST-1500 rig from Canada to the Northeast US in the next month to begin working on a multi-year contract and expect to continue to increase our active rig count through the summer.”

In Canada, Precision has 34 active rigs as second quarter activity is recovering from spring break-up seasonal lows.  “We expect to see customer demand in line with 2017 levels for the second half of 2018”.

The company also has five active rigs in Kuwait and three active rigs in Saudi Arabia.

By 1:20 p.m. EDT, Precision Drilling stock had risen 2.39 per cent to $4.28.