Precision Drilling Expects Near-Full Fleet Use Heading Into Winter
Canada’s largest driller expects its fleets to run near full capacity this winter. Precision Drilling posted a $21 million third-quarter profit, up from a $7 million loss a year earlier, Financial Post reports.
Market Impact
CEO Carey Ford said Precision is entering what could be “one of our busiest winter drilling seasons in years.” Revenue rose 15% to $532 million, slightly under ATB Cormark’s $537 million forecast. Restart costs for idle U.S. rigs and weaker international margins weighed on the quarter. Precision averaged 73 active rigs in Canada (up 16%) and 43 in the U.S. (up 19%). It raised its 2026 capital budget to $285 million, covering long-lead equipment and a pending upgrade deal that would keep several rigs under contract with a large Canadian producer through 2029.
The sector data points the same way. Canada averaged 200 active rigs from July to September. ATB’s fall energy survey, taken in the last two weeks of September, found more service companies reporting excess demand than excess capacity for the first time in four years, led by drilling contractors. Of respondents, 43% said margins rose over the prior three months, against 24% reporting declines. Trican Well Service earned $48 million, up from $28.9 million, and said longer laterals and more sand per well mean each well needs more fracturing, coiled tubing and cementing work. ATB’s Tim Monachello expects single-digit drilling growth this year and in 2027.
Risks remain. Crude is widely expected to drift lower over the medium term, producers are balancing growth against debt reduction and payouts, and Trican warned of short-term swings in crew utilization and pricing.
What It Means for Subcontractors
- Rig-move and trucking: Precision alone averaged 73 Canadian rigs, with fleets expected near full capacity through winter. Our inference: rig-move and heavy-haul calendars will fill from Q4 into Q1. Lock in driller commitments now rather than taking spot work.
- Sand and frac-support hauling: Trican says per-well sand volumes and fracturing, coiled tubing and cementing work are rising, and that well counts understate activity. Our inference: bulk haulers and frac-support trucking should expect more loads per well than rig counts suggest, especially in the Montney and Duvernay, which Trican cites as strongly supported.
- Camp and lease prep: The source gives no camp or lease figures. The drilling signal is 200 rigs in Q3 and a near-full Precision winter. Confirm Q4 and Q1 lease-construction and camp bookings with operators such as Cenovus and Tourmaline, named as core Precision customers.
- Crew availability: The source does not address labor. But ATB found excess demand over capacity for the first time in four years, led by drilling contractors, and Precision paid to restart idle U.S. rigs. Our inference: experienced operators and drivers will be contested. Settle winter retention terms before January.
- Pricing and terms: Trican warned of short-term swings in crew utilization and pricing. Favor multi-month commitments over open-ended rates, and note that some Precision rigs may be under contract through 2029 if the pending upgrade deal closes.
- Equipment spending: Ottawa’s draft Canadian Productivity Mega Deduction, released in September, would let service companies deduct fleet upgrades and heavy equipment. It is a draft, not law. Hold major purchases until the final text is published, and keep in mind the expected medium-term drift lower in crude.
