Precision Drilling sees FY20 CapEx C$60M-C$80M
Precision's preliminary guidance for 2020 includes: projected capital expenditure range of C$60M-C$80 and targeted debt reduction range of C$100M-C$150M. The preliminary 2020 capital expenditure plan is based on current activity levels and market conditions, allowing for cash generation flexibility in what remains a volatile commodity environment. The year-over-year decrease is largely due to our 2019 Kuwait new build rig deployed on July 1. Regarding Precision's targeted debt reduction range, the company plans to utilize anticipated cash flow to fully retire its 2021 notes by the end of next year. Precision's CEO, Kevin Neveu stated: "Precision's proven free cash flow generation ability has allowed the company to accelerate debt reduction while funding the most attractive contracted investments. We believe this NCIB represents another tool for Precision to enhance the value of our underlying shares and may be particularly effective in the current depressed share price environment, while we continue to achieve our strategic priorities. We remain firmly committed to our deleveraging strategy and are reaffirming our recently increased 2019 debt reduction target of C$200 million and or our long-term targeted range of C$400 million to C$600 million by the end of 2021."