Precision Drilling Expects More Business in U.S., Canada

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Written by Will Ploch, Assistant Editor-in-Chief for IIR News Intelligence (Sugar Land, Texas)

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Summary

Strong commodity prices and increased demand for U.S. and Canadian oil and gas is bolstering demand for Precision Drilling's services, with executives pointing to a prosperous outlook that could last well into 2027.

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More Profits, More Need for Services

Precision Drilling Corporation (PDC), an oil and gas services provider focused on Canada's shale plays, reported strong second-quarter results amid favorable oil prices and increased activity in North America, including higher-than-expected rig reactivations. Executives expect many of these trends to continue at least through the end of the year. Industrial Info Resources is tracking more than 100 projects, totaling nearly US$15 billion of investment, featuring PDC's services. About 70% of the total investment is attributed to projects in Alberta.

PDC executives believe advantageous commodity prices, strong customer demand for high-performance drilling rigs and well service equipment, and growing contract opportunities will put the company in an envious position for the remainder of 2026. In a quarterly earnings-related press release, executives pointed to PDC's Completion and Production Services segment, where operating hours increased 25% from the same quarter last year as favorable oil prices and robust producer activity drove increased demand for PDC's well-servicing fleet.

Demand for oil and gas sourced from the U.S. and Canada has grown significantly since the start of the Iranian conflict earlier this year, with multiple leaders across the North American drilling sector expecting business to remain elevated well into 2027.

According to Industrial Info Resources data, Tourmaline Oil Corporation, Whitecap Resources Incorporated and Canadian Natural Resources Limited have the highest number of projects with PDC attached, collectively accounting for nearly US$2.3 billion of investment. Tourmaline alone has 15 projects totaling US$2.3 billion, all in the Montney Shale straddling Alberta and British Columbia.

The largest of these is Tourmaline's drilling program near Edson, Alberta, which involves drilling up to 100 new wells in the Deep Basin to increase and replace production of natural gas, natural gas liquids (NGLs) and condensate, which will supply about 13 gas-fired power plants in the region. Industrial Info Resources offers more information on the Edson development in its Global Market Intelligence (GMI) Oil & Gas Plant and Project databases, where readers can find details--including construction schedules, investment values and necessary equipment--in a plant profile and project report.

Whitecap has 11 projects totaling nearly US$2 billion in value, covering the Duvernay Shale in Western Canada, as well as the Exshaw Formation in Alberta and the Bakken Formation in Saskatchewan. Some of its busiest work is in the Kaybob Field in the Duvernay, where Whitecap and PDC are drilling 45 new wells in the South Field and 21 new wells in the Musreau Field. Like Tourmaline's Edson project, these programs are expected to run into December. Readers can learn more from detailed reports on the Kaybob and Musreau projects.

"In Canada, activity increased 22% year over year," said Carey Ford, the chief executive officer of PDC, in the quarterly press release. "Improving producer economics and expanded market access continue to support an attractive Canadian drilling environment, most notably in the condensate and heavy oil basins. We expect activity during the second half of the year to remain above prior year levels."

By the Numbers

• Nearly US$15 billion: Total investment in projects featuring PDC's services, most of which is in Alberta
• Up to 100: Number of new wells to be drilled with PDC's services at Tourmaline's program near Edson, Alberta
• 11.34%: Year-over-year increase in revenues for PDC, when compared with second-quarter 2025

U.S. Also to See More Wells

In its quarterly press release, PDC said capital expenditures were "C$76 million (US$53.18 million), compared to C$53 million (US$37.08 million) in the second quarter of 2025. Year-to-date, we have invested C$141 million (US$98.66 million) in our equipment and continue to expect capital expenditures of C$265 million (US$186.37 million) in [full-year] 2026."

PDC reported C$452.8 million (US$318.5 million) of revenue in second-quarter 2026, an 11.34% increase from second-quarter 2025. The company saw a net loss of C$893,000 (US$631,262), compared with net income of C$16.49 million (US$11.54 million) in the same period last year. The company attributed the net loss to an "increased depreciation expense of C$11 million (US$7.7 million) from a previously communicated change in useful life estimates."

The company also saw its active rig count climb: Canada averaged 61 active PDC rigs, compared with 50 active rigs in the second quarter of 2025, while the U.S. averaged 35, versus 33 in the same period last year. These increases outpaced the average rates for rig additions in the Canadian and the U.S. markets over the same period.

PDC's U.S.-based efforts include Aethon Energy's expansions in the Carthage Field in San Augustine, Texas, which is part of the Haynesville Shale. Aethon plans to drill up to 26 new wells to increase its production of natural gas and NGLs. Readers can learn more from a detailed project report.

"Higher day rates, increased technology adoption, and improving oil-directed activity supported year over year revenue growth" in the U.S., Ford said. "The actions we are taking position us for meaningful margin expansion."

The Industrial Info Resources GMI Project Database offers a full list of detailed reports for projects mentioned in this article, and a full list of reports for projects featuring PDC's services.

Key Takeaways

• Favorable oil prices and increased activity in North America boosted PDC's results in second-quarter 2026.
• Operating hours increased 25% from the same quarter last year in PDC's Completion and Production Services segment.
• PDC expects capital expenditures of about US$186 million for full-year 2026.

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About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news, and analysis on the industrial process, manufacturing, and energy-related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified, and verified plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).