CALGARY, AB, May 6, 2024 /CNW/ - FIRST QUARTER HIGHLIGHTS Revenue for the first quarter of 2024 was $431.3 million, an 11 percent decrease from the first quarter of 2023 revenue of $484.1 million. Revenue by geographic area: Canada - $138.5 million, 32 percent of total; United States - $208.4 million, 48 percent of total; and International - $84.4 million, 20 percent of total. Adjusted EBITDA for the first quarter of 2024 was $117.5 million, an eight percent decrease from Adjusted EBITDA of $127.3 million for the first quarter of 2023. Funds flow from operations for the first quarter of 2024 decreased eight percent to $108.4 million from $118.3 million in first quarter of the prior year. Net loss attributed to common shareholders for the first quarter of 2024 was $1.2 million, down from net income attributed to common shareholders of $4.2 million for the first quarter of 2023. FINANCIAL HIGHLIGHTS(Unaudited, in thousands of Canadian dollars, except per common share data) Three months ended March 31 2024 2023 % change Revenue 431,307 484,052 (11) Adjusted EBITDA 1 117,456 127,324 (8) Adjusted EBITDA per common share 1 Basic $         0.64 $         0.69 (7) Diluted $         0.64 $         0.69 (7) Net (loss) income attributable to common shareholders (1,217) 4,241 nm Net (loss) income attributable to common shareholders per common share Basic $       (0.01) $         0.02 nm Diluted $       (0.01) $         0.02 nm Cash provided by operating activities 93,878 104,574 (10) Funds flow from operations 108,438 118,291 (8) Funds flow from operations per common share Basic $         0.59 $         0.64 (8) Diluted $         0.59 $         0.64 (9) Total debt, net of cash 1,176,226 1,360,639 (14) Weighted average common shares - basic (000s) 183,794 183,828 — Weighted average common shares - diluted (000s) 184,510 185,476 (1) nm - calculation not meaningful 1 Please refer to Adjusted EBITDA calculation in Non-GAAP Measures. Canadian drilling recorded 3,752 operating days in the first quarter of 2024, compared to 3,800 operating days in the first quarter of 2023, a decrease of one percent. Canadian well servicing recorded 11,926 operating hours in the first quarter of 2024, a 13 percent decrease from 13,776 operating hours in the first quarter of 2023. United States drilling recorded 3,134 operating days in the first quarter of 2024, a 32 percent decrease from 4,617 operating days in the first quarter of 2023. United States well servicing recorded 26,251 operating hours in the first quarter of 2024, a six percent decrease from 27,917 operating hours in the first quarter of 2023. International drilling recorded 1,319 operating days in the first quarter of 2024, a 19 percent increase from 1,104 operating days recorded in first quarter of 2023. OPERATING HIGHLIGHTS(Unaudited) Three months ended March 31 2024 2023 % change Drilling Number of marketed rigs Canada 1 94 114 (18) United States 77 85 (9) International 2 31 32 (3) Total 202 231 (13) Operating days 3 Canada 1 3,752 3,800 (1) United States 3,134 4,617 (32) International 2 1,319 1,104 19 Total 8,205 9,521 (14) Well Servicing 2024 2023 % change Number of rigs Canada 45 47 (4) United States 47 47 — Total 92 94 (2) Operating hours Canada 11,926 13,776 (13) United States 26,251 27,917 (6) Total 38,177 41,693 (8) 1.  Excludes coring rigs. 2.  Includes workover rigs. 3.  Defined as contract drilling days, between spud to rig release. Interest expense in the first quarter of 2024 was $26.5 million, a decrease of 23 percent from the first quarter of 2023 as a result of lower debt levels and improved interest rates based on improving debt metrics. Total debt, net of cash, was reduced by $13.6 million since December 31, 2023. Our debt reduction for 2024 is targeted to be approximately $200.0 million. Our target debt reduction for the period beginning 2023 to the end of 2025 is approximately $600.0 million. If industry conditions change, this target could be increased or decreased. FINANCIAL POSITION HIGHLIGHTS As at ($ thousands) March 31 2024 March 31 2023 December 31 2023 Working capital 1, 2 39,414 (678,115) 15,780 Cash 39,108 44,850 20,501 Total debt, net of cash 1,176,226 1,360,639 1,189,848 Total assets 2,982,714 3,144,424 2,947,986 Total debt to total debt plus equity ratio 0.48 0.52 0.48 1 See Non-GAAP Measures section. 2 Change in working capital (deficit) from March 31, 2024 to March 31, 2023, was largely due to the Company's revolving credit facility being classified as current Net capital purchases for the quarter were $51.5 million, consisting of $1.8 million in upgrade capital and $53.0 million in maintenance capital, offset by sale proceeds of $3.3 million. Capital expenditures for 2024 are targeted to be approximately $147.0 million, primarily related to maintenance expenditures and selective growth projects. In addition, the Company may consider other upgrade or growth projects in response to customer demand and appropriate contract terms. General and administrative expense increased four percent and totaled $15.1 million in the first quarter of 2024, compared with $14.5 million in the first quarter of 2023. CAPITAL EXPENDITURES HIGHLIGHTS Three months ended March 31  ($ thousands) 2024 2023 % change Capital expenditures Upgrade/growth 1,770 8,256 (79) Maintenance 52,999 41,623 27 Proceeds from disposals of property and equipment (3,271) (155) nm Net capital expenditures (proceeds) 51,498 49,724 4 nm - calculation not meaningful This news release contains "forward-looking information and statements" within the meaning of applicable securities legislation. For a full disclosure of the forward-looking information and statements and the risks to which they are subject, see the "Advisory Regarding Forward-Looking Statements" later in this news release. This news release contains references to Adjusted EBITDA, Adjusted EBITDA per common share and working capital. These measures do not have any standardized meaning prescribed by IFRS and accordingly, may not be comparable to similar measures used by other companies. The non-GAAP measures included in this news release should not be considered as an alternative to, or more meaningful than, the IFRS measure from which they are derived or to which they are compared. See "Non-GAAP Measures" later in this news release. OVERVIEW Revenue for the three months ended March 31, 2024 was $431.3 million, a decrease of 11 percent from revenue for the three months ended March 31, 2023 of $484.1 million. Adjusted EBITDA totaled $117.5 million ($0.64 per common share) in the first quarter of 2024, eight percent lower than Adjusted EBITDA of $127.3 million ($0.69 per common share) in the first quarter of 2023. Net loss attributable to common shareholders for the three months ended March 31, 2024 was $1.2 million ($0.01 per common share), compared with net income attributable to common shareholders of $4.2 million ($0.02 per common share) for the three months ended March 31, 2023. Funds flow from operations decreased eight percent to $108.4 million ($0.59 per common share) in the first quarter of 2024 compared with $118.3 million ($0.64 per common share) in the first quarter of the prior year. The outlook for oilfield services continues to be constructive despite the year-over-year decline in oilfield services activity in certain operating regions. Depressed natural gas commodity prices have impacted the industry rig count in North America and reinforced customer discipline with capital programs. Furthermore, there have been several recent oil and natural gas customer mergers and acquisitions ("M&A") in both the Canadian and the US operating regions that have impacted drilling programs over the short-term. However, despite these short-term headwinds, demand for crude oil continues to improve year-over-year. Moreover, OPEC+ nations continue to exercise production and supply discipline in response to market conditions. Over the near term, geopolitical tensions, hostilities in areas of the Middle East, and the ongoing Russia-Ukraine conflict continue to impact global commodity prices and add uncertainty to the outlook for crude oil supply and commodity prices over the short-term. The Company's operating days were lower in the first quarter of 2024 when compared with the first quarter of 2023 as operations were negatively impacted by the above-mentioned customer M&A activity and customer discipline with regard to their capital programs. The average United States dollar exchange rate was $1.35 for the first three months of 2024 (2023 - $1.35), consistent with the first quarter of  2023. Working capital at March 31, 2024 was $39.4 million compared to $15.8 million at December 31, 2023. The increase to working capital is the result of higher operating activity compared to the fourth quarter of 2023. At the end of the first quarter 2024, the Company's available liquidity, consisting of cash and available borrowings under its $900.0 million revolving credit facility (the "Credit Facility"), totaled $60.9 million compared with $74.6 million at  December 31, 2023. REVENUE AND OILFIELD SERVICES EXPENSE Three months ended March 31 ($ thousands) 2024 2023 % change Revenue Canada 138,478 140,116 (1) United States 208,435 274,553 (24) International 84,394 69,383 22 Total revenue 431,307 484,052 (11) Oilfield services expense 298,790