History
Precision Drilling bought Grey Wolf in 2008, funded it with heavy debt and unit sales, then refinanced, expanded into services, and shrank its share count after a 2020 consolidation.
2008-2009: The Grey Wolf deal and its funding
Precision Drilling Trust began its recorded story with a large bet. On August 25, 2008 it agreed to buy US driller Grey Wolf, Inc. Grey Wolf shareholders were to receive US$5.00 in cash plus 0.1883 of a Precision unit per share, about US$1.12 billion in cash and 42.0 million new units, leaving them with roughly 25% of the combined company. The deal closed on December 23, 2008. Because requests for cash far exceeded the cash available, many holders were expected to receive a mix of about US$5.15 and about 0.1808 units per share. Precision put in place a new US$1.6 billion credit facility, which paid the cash portion and refinanced its existing bank debt. It included a US$400 million unsecured bridge loan, of which US$138 million was drawn at closing.
The bill came quickly. Precision had taken on Grey Wolf's convertible notes and had to offer to repurchase them. In February 2009 it sold 46,000,000 trust units at US$3.75 each, raising US$172.5 million. A planned US$250 million senior notes offering was postponed because of unfavourable markets, leaving the bridge loan, at a fixed 17% interest, in place. Management said it was cutting expenses and capital spending to pay down debt.
In April 2009 Precision closed a private placement of $175 million of senior unsecured notes plus 35,000,000 units at $3.00 each, about $280 million in all, including 15,000,000 warrants to buy more units at $3.22 for five years. A rights offering followed, closing on June 4, 2009 with the maximum 34,441,950 units issued for about $103.3 million. Existing unitholders were diluted several times over in six months.
2010-2014: Refinancing, new builds and a dividend
With the emergency funding done, Precision turned to tidying its debt. In November 2010 it sold US$650 million of 6.625% senior notes due 2020, upsized from the US$550 million first planned. The money repaid two term loans of about US$263 million and US$318 million, and it entered a new US$550 million secured revolving credit facility. In February 2011 it repaid in full the 10% note held by Alberta Investment Management Corporation, about $204 million including interest and a make-whole amount.
Growth followed. In July 2011 it sold US$400 million of 6.5% notes due 2021 to fund its capital spending, including a new build program. In September 2011 it bought Axis Energy Services Holdings, a directional drilling business (steering the drill bit) with 30 job capacity, following the Drake purchase in March.
December 2012 brought a turn. Precision decommissioned 52 older rigs, exiting Tier 3 contract drilling, with a pre-tax charge of $180-200 million expected, and flagged a goodwill impairment on its Canadian directional drilling operations. It set 2013 capital spending at $485 million and started its first dividend in the record, $0.05 per share quarterly. It also won a contract for two new Kuwait rigs on a five-year firm term. In mid-2014 it sold US$400 million of 5.250% notes due 2024 and cut its revolver from US$850 million to US$650 million, extending its maturity to June 2019. It also won its ninth Middle East rig deployment since mid-2012.
2015-2020: A quiet record, then a listing warning
The record is largely quiet for these years. In November 2017 Precision amended its credit agreement, cutting the revolver from US$525 million to US$500 million, extending maturity to November 21, 2021 and extending covenant relief to March 31, 2019. It also issued 7.125% senior notes due 2026, whose size is not stated.
On March 26, 2020 Precision said it had received a continued listing standard notice from the NYSE. The shortfall and its outcome are not given. Share counts fell from 277,299,804 at the end of 2019 to 13,459,593 at the end of 2020. The record does not explain this change, so it cannot be described here.
2021-2026: Refinancing, acquisitions and buybacks
In June 2021 Precision closed US$400 million of 6.875% senior notes due 2029 and redeemed its 7.75% notes due 2023 and 5.25% notes due 2024, pushing out its debt maturities. That July it formed an alliance with Cathedral Energy Services, the terms of which are not given.
Acquisitions followed. In July 2022 it bought High Arctic's well servicing and rentals divisions. In September 2023 it agreed to buy CWC Energy Services Corp., completing the deal on November 8, 2023. Prices are not given for either.
In July 2024 Precision extended its senior credit facility and updated progress on its 2024 debt repayment and share repurchase targets. On January 7, 2025 it said it had met both targets, though the figures are not given. Shares on issue were 12,932,399 at the end of 2025. On October 24, 2025 it filed a notice of change of auditor, naming KPMG LLP and PricewaterhouseCoopers LLP. The filing was signed by Dustin D. Honing as CFO, replacing Carey Ford in that role. As of that date, no pending transactions were known.
Written from the 31 story beats below (2008 to 24 Oct 2025), which come from the company's own announcements and filings.