Canada’s largest oil and gas driller heading into one of its busiest winters in years

Skip to Content News Archives Economy Defence Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Defence Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Defence Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomeEnergyOil & GasCanada’s largest oil and gas driller heading into one of its busiest winters in yearsPrecision Drilling swings to $21-million profit from a $7-million loss a year agoDrillers work on a Precision Drilling rig. Robust earnings and analysts' calls suggest the industry is on its best footing in years. Photo by Stuart Davis/PostmediaCanada’s oilpatch drillers and well service companies are heading into the final stretch of the year with busier rigs, firmer pricing and stronger balance sheets.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountSo far, third-quarter results and a bullish call from analysts both suggest the industry is on its best footing in years.Precision Drilling Corp. and Trican Well Service Ltd., two of the country’s largest service providers, reported higher revenue and profit on Tuesday, citing rising activity in Western Canada.This advertisement has not loaded yet, but your article continues below.Precision chief executive Carey Ford said his company is entering what could be “one of our busiest winter drilling seasons in years,” with its fleets expected to run near full capacity. Canada’s biggest oil companies, including Cenovus Energy Inc. and Tourmaline Oil Corp., are among Precision’s core customer base.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againThe company raised its 2026 capital budget to $285 million. The increase covers long-lead equipment and a pending upgrade deal that would keep several rigs under contract with a large Canadian producer through 2029.Their results came just days after ATB Cormark Capital Markets told investors the sector faces its most favourable set-up in years and recommended an overweight position in Canadian energy services.ATB Cormark analyst Tim Monachello said financial markets predict elevated oil prices into late 2029, giving producers support to drill at a steadily growing pace.The provincially owned bank’s fall energy survey found more Canadian service companies reporting more excess demand than excess capacity for the first time in four years, led by drilling contractors.This advertisement has not loaded yet, but your article continues below.Forty-three per cent of respondents said margins had risen over the previous three months, compared with 24 per cent reporting declines. Close to 60 per cent expected further gains over the next six months, according to the survey conducted in the last two weeks of September.Drilling activity backs that up. In Canada, an average of 200 rigs were actively drilling for oil and gas from July to September, among the largest fleets the industry has seen for the third quarter in years.Monachello now expects Canadian drilling to continue growing by single digits this year and in 2027.In the most recent quarter, Precision experienced a lift on both sides of the border.The Calgary-based driller’s revenue rose 15 per cent to $532 million. The company swung to a $21-million profit from a $7-million loss a year earlier.The results, however, fell slightly short of ATB Cormark’s forecasts of $537 million in revenue, as the cost of restarting idle U.S. rigs and weaker international margins weighed on the quarter.Precision averaged 73 active rigs in Canada, up 16 per cent, and 43 in the U.S., up 19 per cent, outpacing overall U.S. activity.This advertisement has not loaded yet.This advertisement has not loaded yet, but your article continues below.Trican, meanwhile, posted a sharper improvement.The pressure pumper earned $48 million, up from $28.9 million a year earlier. The company credited higher activity, more time doing active work and a full quarter’s contribution from its acquisition of Iron Horse Energy Services. Free cash flow nearly doubled to $66 million.Trican struck an optimistic tone on the oilfield service market’s outlook. It said customer activity should stay supported by strong economics in the Montney and Duvernay plays of B.C. and Alberta and by a growing demand for natural gas.The company also warned that competition could cause short-term swings in the degree to which crews are actively working and pricing, arguing that well counts understate how busy the oilfield has become. That’s because producers are drilling longer laterals and pumping more sand per well, so each well needs more fracturing, coiled tubing and cementing work than before.Ottawa may add another push.In September, the federal government released draft legislation for the Canadian Productivity Mega Deduction.This advertisement has not loaded yet, but your article continues below.It would let producers write off 100 per cent of Canadian development expenses in the first year rather than over several years. The legislation would also allow service companies to deduct spending on fleet upgrades and heavy equipment.Monachello named Trican, Precision, Total Energy Services Inc. and CES Energy Solutions Corp. as the most direct beneficiaries.Longer term, both Monachello and the companies point to export capacity as the industry’s biggest long-term driver of growth.“In Canada, the energy sector could be entering a multi-year expansion phase driven by major crude and LNG egress initiatives,” wrote Monachello. He cited confirmed and proposed projects to ship more liquefied natural gas from the B.C. coast, and new crude pipe proposals.The oilfield services sector is also in far better financial shape than in past years.Companies are returning more cash to shareholders. Trican bought back $41.8 million of its stock in the quarter and has retired roughly half of its shares since 2017.Precision repurchased $31 million and said its long-term debt target is nearly within reach, freeing more cash for shareholders next year.Crude prices are widely expected to drift lower over the medium term, and Trican noted that producers remain focused on balancing growth with debt reduction and payouts. Precision’s international business also softened during the quarter.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.