Precision Drilling To Cut Capital Spending By 50%, Fixed Costs By Over 30%

(RTTNews) - Precision Drilling Corp. (PD.TO, PDS) said, in response to the expected reduction in demand, the company is reducing its 2020 capital expenditure plan to $48 million, from prior plan of $95 million. Precision is also taking measures to enhance free cash flow by: CEO salary reduction of 20%; Board compensation reductions of 20%; Executive officer salary reductions of 10%; and staff headcount and salary reductions. The company expects these fixed cost reduction measures will reduce annualized fixed costs by over 30%, including up to a $30 million reduction in G&A expense.

Precision reaffirmed its strategic priorities for 2020. Also, the company reaffirmed its 2020 debt reduction targeted range.