Precision Drilling Corporation Announces 2011 Capital Expenditures
06 Dezember 2010 - 11:09PM
Marketwired
(Canadian dollars, unless otherwise indicated)
Precision Drilling Corporation ("Precision" or the
"Corporation") announced today that planned capital expenditures
for 2011 are $405 million. This includes $119 million for
sustaining and infrastructure expenditures and is based upon
currently anticipated activity levels for 2011. Additionally, $171
million is slated for expansion capital and includes the cost to
complete the remaining five of the nine new rigs previously
announced and an anticipated five additional new rig builds for
2011. The total capital expenditures also include the cost to
upgrade eight to twelve rigs in 2011 and to purchase long lead time
items for the Corporation's inventory at an anticipated cost of
$115 million. These long lead time items include, for example, top
drives, masts and engines, that can be used for North American or
international new build opportunities. Precision expects that the
$405 million will be split $353 million in the Contract Drilling
segment and $52 million in the Production and Completion
segment.
Kevin Neveu, President and Chief Executive Officer, stated,
"With the completion of our recent financing, Precision is well
positioned to focus on the growth of the Corporation. The balance
sheet is strong and we have the liquidity and flexibility to seize
market opportunities. Whether these opportunities are in North
America or are international, Precision will continue to deliver to
our customers the high value, high performance services we are
known for. Precision has recently entered into a term contract for
one of the 2011 new rig builds for work in the United States and is
in negotiations for three more of the new rigs. We continue to have
customers interested in our upgraded rigs, and I anticipate term
contracts for these rigs prior to the completion of the upgrade
work. Precision will, however, continue to be disciplined in our
capital expenditures by not completing new rig builds unless they
are secured by term contracts that provide acceptable financial
returns."
Cautionary Statement Regarding Forward-Looking Information and
Statements
Certain statements contained in this report, including
statements that contain words such as "could", "should", "can,
"anticipate", "estimate", "propose", "plan", "expect", "believe",
"will", "may" and similar expressions and statements relating to
matters that are not historical facts constitute "forward-looking
information" within the meaning of applicable Canadian securities
legislation and "forward-looking statements" within the meaning of
the "safe harbor" provisions of the United States Private
Securities Litigation Reform Act of 1995 (collectively,
"forward-looking information and statements").
In particular, forward-looking information and statements
include, but are not limited to: the level of capital expenditures
and anticipated use of capital for 2011, including plans to build
new rigs; the timing and terms of contractual commitments; the
number and type of assets to be upgraded; the amount and type of
equipment to be purchased and the timing of the expenditures.
These forward-looking information and statements are based on
certain assumptions and analysis made by the Corporation in light
of its experience and its perception of historical trends, current
conditions and expected future developments as well as other
factors it believes are appropriate in the circumstances. However,
whether actual results, performance or achievements will conform to
the Corporation's expectations and predictions is subject to a
number of known and unknown risks and uncertainties which could
cause actual results to differ materially from the Corporation's
expectations. Such risks and uncertainties include, but are not
limited to: fluctuations in the price and demand for oil and
natural gas; fluctuations in the level of oil and natural gas
exploration and development activities; general economic, market or
business conditions; and other unforeseen conditions which could
impact the use of services supplied by Precision.
Consequently, all of the forward-looking information and
statements made in this report are qualified by these cautionary
statements and there can be no assurance that the actual results or
developments anticipated by the Corporation will be realized or,
even if substantially realized, that they will have the expected
consequences to, or effects on, the Corporation or its business or
operations. Readers are therefore cautioned not to place undue
reliance on such forward-looking information and statements. Except
as may be required by law, the Corporation assumes no obligation to
update publicly any such forward-looking information and
statements, whether as a result of new information, future events
or otherwise.
About Precision
Precision is a leading provider of safe, high performance energy
services to the North American oil and gas industry. Precision
provides customers with access to an extensive fleet of contract
drilling rigs, service rigs, camps, snubbing units, wastewater
treatment units and rental equipment backed by a comprehensive mix
of technical support services and skilled, experienced
personnel.
Precision is headquartered in Calgary, Alberta, Canada.
Precision is listed on the Toronto Stock Exchange under the trading
symbol "PD" and on the New York Stock Exchange under the trading
symbol "PDS".
Contacts: Precision Drilling Corporation David Wehlmann
Executive Vice President, Investor Relations 403.716.4575
403.716.4755 (FAX) Precision Drilling Corporation 4200, 150 - 6th
Avenue S.W. Calgary, Alberta, Canada T2P 3Y7
www.precisiondrilling.com
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