Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2020shares | |
Cover [Abstract] | |
Document Type | 40-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2020 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | FY |
Trading Symbol | PDS |
Entity Registrant Name | PRECISION DRILLING CORP |
Entity Central Index Key | 0001013605 |
Current Fiscal Year End Date | --12-31 |
Entity Current Reporting Status | Yes |
Entity Common Stock, Shares Outstanding | 13,459,593 |
Entity Emerging Growth Company | false |
Entity Interactive Data Current | Yes |
Entity Address, Address Line One | 800, 525 - 8 Avenue, S.W |
Entity Address, City or Town | Calgary |
Entity Address, Postal Zip Code | T2P 1G1 |
Entity Address, State or Province | AB |
Entity Address, Country | CA |
Local Phone Number | (403) 716-4500 |
Security Exchange Name | NYSE |
Title of 12(b) Security | Common Shares |
ICFR Auditor Attestation Flag | true |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - CAD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash | $ 108,772 | $ 74,701 |
Accounts receivable | 207,209 | 310,204 |
Income tax recoverable | 1,142 | |
Inventory | 26,282 | 31,718 |
Total current assets | 342,263 | 417,765 |
Non-current assets: | ||
Deferred tax assets | 1,098 | 4,724 |
Property, plant and equipment | 2,472,683 | 2,749,463 |
Intangibles | 27,666 | 31,746 |
Right-of-use assets | 55,168 | 66,142 |
Total non-current assets | 2,556,615 | 2,852,075 |
Total assets | 2,898,878 | 3,269,840 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 150,957 | 199,478 |
Current portion of lease obligations | 11,285 | 12,449 |
Current portion of long-term debt | 896 | |
Income tax payable | 3,702 | 4,142 |
Total current liabilities | 166,840 | 216,069 |
Non-current liabilities: | ||
Share based compensation | 11,507 | 8,830 |
Provisions and other | 7,563 | 9,959 |
Long-term debt | 1,236,210 | 1,427,181 |
Lease obligations | 48,882 | 54,980 |
Deferred tax liabilities | 21,236 | 25,389 |
Total non-current liabilities | 1,325,398 | 1,526,339 |
Shareholders’ equity: | ||
Shareholders’ capital | 2,285,738 | 2,296,378 |
Contributed surplus | 72,915 | 66,255 |
Deficit | (1,089,594) | (969,456) |
Accumulated other comprehensive income | 137,581 | 134,255 |
Total shareholders’ equity | 1,406,640 | 1,527,432 |
Total liabilities and shareholders’ equity | $ 2,898,878 | $ 3,269,840 |
Consolidated Statements of Net
Consolidated Statements of Net Earnings (Loss) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | ||
Revenue | $ 935,753 | $ 1,541,320 |
Expenses: | ||
Operating | 583,420 | 1,038,967 |
General and administrative | 70,869 | 104,010 |
Restructuring | 18,061 | 6,438 |
Earnings before income taxes, gain on redemption and repurchase of unsecured senior notes, finance charges, foreign exchange, reversal of impairment of property, plant and equipment, loss on asset decommissioning, gain on asset disposals and depreciation and amortization | 263,403 | 391,905 |
Depreciation and amortization | 316,322 | 333,616 |
Gain on asset disposals | (11,931) | (50,741) |
Loss on asset decommissioning | 20,263 | |
Reversal of impairment of property, plant and equipment | (5,810) | |
Foreign exchange | 4,542 | (8,722) |
Finance charges | 107,468 | 118,453 |
Gain on redemption and repurchase of unsecured senior notes | (43,814) | (6,815) |
Loss before income taxes | (109,184) | (8,339) |
Income taxes: | ||
Current | 5,290 | 1,080 |
Deferred | 5,664 | (16,037) |
Income tax recovery | 10,954 | (14,957) |
Net earnings (loss) | $ (120,138) | $ 6,618 |
Net earnings (loss) per share: | ||
Basic | $ (8.76) | $ 0.46 |
Diluted | $ (8.76) | $ 0.45 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Statement Of Comprehensive Income [Abstract] | ||
Net earnings (loss) | $ (120,138) | $ 6,618 |
Unrealized loss on translation of assets and liabilities of operations denominated in foreign currency | (25,925) | (106,781) |
Foreign exchange gain on net investment hedge with U.S. denominated debt | 23,853 | 79,022 |
Tax benefit related to net investment hedge of long-term debt | 5,398 | |
Comprehensive loss | $ (116,812) | $ (21,141) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flow - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Operations: | ||
Net earnings (loss) | $ (120,138) | $ 6,618 |
Adjustments for: | ||
Long-term compensation plans | 17,769 | 19,457 |
Depreciation and amortization | 316,322 | 333,616 |
Gain on asset disposals | (11,931) | (50,741) |
Loss on asset decommissioning | 20,263 | |
Reversal of impairment of property, plant and equipment | (5,810) | |
Foreign exchange | 4,808 | (8,585) |
Finance charges | 107,468 | 118,453 |
Gain on redemption and repurchase of unsecured senior notes | (43,814) | (6,815) |
Income taxes | 10,954 | (14,957) |
Other | (2,392) | (981) |
Income taxes paid | (6,468) | (5,060) |
Income taxes recovered | 1,385 | 2,479 |
Interest paid | (103,851) | (116,655) |
Interest received | 615 | 1,370 |
Funds provided by operations | 170,727 | 292,652 |
Changes in non-cash working capital balances | 55,391 | (4,493) |
Cash provided by operations | 226,118 | 288,159 |
Investments: | ||
Purchase of property, plant and equipment | (61,535) | (159,886) |
Purchase of intangibles | (57) | (808) |
Proceeds on sale of property, plant and equipment | 21,094 | 90,768 |
Changes in non-cash working capital balances | (19) | (4,574) |
Cash used in investing activities | (40,517) | (74,500) |
Financing: | ||
Issuance of long-term debt | 151,066 | |
Repayment of long-term debt | (278,112) | (198,387) |
Repurchase of share capital | (11,317) | (25,902) |
Debt amendment fees | (690) | (702) |
Debt issue costs | (354) | |
Lease payments | (6,217) | (6,823) |
Cash used in financing activities | (145,624) | (231,814) |
Effect of exchange rate changes on cash | (5,906) | (3,770) |
Increase (decrease) in cash | 34,071 | (21,925) |
Cash, beginning of year | 74,701 | 96,626 |
Cash, end of year | $ 108,772 | $ 74,701 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - CAD ($) $ in Thousands | Total | Shareholders' Capital [Member] | Contributed Surplus [Member] | Accumulated Other Comprehensive Income [Member] | Deficit [Member] |
Balance at Dec. 31, 2018 | $ 1,557,752 | $ 2,322,280 | $ 52,332 | $ 162,014 | $ (978,874) |
Lease transition adjustment | 2,800 | 2,800 | |||
Net earnings (loss) | 6,618 | 6,618 | |||
Other comprehensive income (loss) | (27,759) | (27,759) | |||
Share repurchase | (25,902) | (25,902) | |||
Share based compensation expense | 13,923 | 13,923 | |||
Balance at Dec. 31, 2019 | 1,527,432 | 2,296,378 | 66,255 | 134,255 | (969,456) |
Net earnings (loss) | (120,138) | (120,138) | |||
Other comprehensive income (loss) | 3,326 | 3,326 | |||
Share based payment reclassification | (8,331) | (8,331) | |||
Share repurchase | (11,317) | (11,317) | |||
Share issuance on redemption of non- management DSUs | 175 | 677 | (502) | ||
Share based compensation expense | 15,493 | 15,493 | |||
Balance at Dec. 31, 2020 | $ 1,406,640 | $ 2,285,738 | $ 72,915 | $ 137,581 | $ (1,089,594) |
Description of Business
Description of Business | 12 Months Ended |
Dec. 31, 2020 | |
Description Of Business [Abstract] | |
Description of Business | NOTE 1. DESCRIPTION OF BUSINESS Precision Drilling Corporation ( Precision Corporation |
Basis of Preparation
Basis of Preparation | 12 Months Ended |
Dec. 31, 2020 | |
Basis Of Preparation [Abstract] | |
Basis of Preparation | NOTE 2. BASIS OF PREPARATION (a) Statement of Compliance The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards ( IFRS IASB These consolidated financial statements were authorized for issue by the Board of Directors on March 12, 2021. (b) Basis of Measurement The consolidated financial statements have been prepared using the historical cost basis and are presented in thousands of Canadian dollars. (c) Use of Estimates and Judgments The preparation of the consolidated financial statements requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and the disclosure of contingencies. These estimates and judgments are based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. The estimation of anticipated future events involves uncertainty and, consequently, the estimates used in preparation of the consolidated financial statements may change as future events unfold, more experience is acquired, or the Corporation’s operating environment changes. The Corporation reviews its estimates and assumptions on an ongoing basis. Adjustments that result from a change in estimate are recorded in the period in which they become known. Significant estimates and judgments used in the preparation of the financial statements are described in Note 3(d), (e), (g), (i), (j), (l), (s) and (u) and Note 4. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Significant Accounting Policies [Abstract] | |
Significant Accounting Policies | NOTE 3. SIGNIFICANT ACCOUNTING POLICIES (a) Basis of Consolidation These consolidated financial statements include the accounts of the Corporation and all of its subsidiaries and partnerships, substantially all of which are wholly-owned. The financial statements of the subsidiaries are prepared for the same period as the parent entity, using consistent accounting policies. All significant intercompany balances and transactions and any unrealized gains and losses arising from intercompany transactions, have been eliminated. Subsidiaries are entities controlled by the Corporation. Control exists when Precision has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. In assessing control, potential voting rights that currently are exercisable are considered. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases. Precision does not hold investments in any companies where it exerts significant influence and does not hold interests in any special-purpose entities. The acquisition method is used to account for acquisitions of subsidiaries and assets that meet the definition of a business under IFRS. The cost of an acquisition is measured as the fair value of the assets given, equity instruments issued, and liabilities incurred or assumed at the date of exchange. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. The excess of the cost of acquisition over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recorded as goodwill. If the cost of acquisition is less than the fair value of the net assets of the subsidiary acquired, the difference is recognized immediately in the statement of earnings. Transaction costs, other than those associated with the issuance of debt or equity securities, that the Corporation incurs in connection with a business combination are expensed as incurred. (b) Cash Cash consists of cash and short-term investments with original maturities of three months or less. (c) Inventory Inventory is primarily comprised of operating supplies and carried at the lower of average cost, being the cost to acquire the inventory, and net realizable value. Inventory is charged to operating expenses as items are sold or consumed at the amount of the average cost of the item. (d) Property, Plant and Equipment Property, plant and equipment are carried at cost, less accumulated depreciation and any accumulated impairment losses. Cost includes an expenditure that is directly attributable to the acquisition of the asset. The cost of self-constructed assets includes the cost of materials and direct labour, any other costs directly attributable to bringing the assets to a working condition for their intended use, and borrowing costs on qualifying assets. The cost of replacing a part of an item of property, plant and equipment is recognized in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to the Corporation, and its cost can be measured reliably. The carrying amount of the replaced part is derecognized. The costs of the day-to-day servicing of property, plant and equipment (repair and maintenance) are recognized in profit or loss as incurred. Property, plant, and equipment are depreciated as follows: Expected Life Salvage Value Basis of Depreciation Drilling rig equipment: – Power & Tubulars 5 years – straight-line – Dynamic 10 years – straight-line – Structural 20 years 10% straight-line Service rig equipment 20 years 10% straight-line Drilling rig spare equipment up to 15 years – straight-line Service rig spare equipment up to 15 years – straight-line Rental equipment up to 15 years 0 to 25% straight-line Other equipment 3 to 10 years – straight-line Light duty vehicles 4 years – straight-line Heavy duty vehicles 7 to 10 years – straight-line Buildings 10 to 20 years – straight-line Property, plant and equipment are depreciated based on estimates of useful lives and salvage values. These estimates consider data and information from various sources including vendors, industry practice, and Precision’s own historical experience and may change as more experience is gained, market conditions shift, or technological advancements are made. Gains and losses on disposal of an item of property, plant and equipment are determined by comparing the proceeds from disposal to the carrying amount of property, plant and equipment, and are recognized in the consolidated statements of earnings (loss). Determination of which parts of the drilling rig equipment represent significant cost relative to the entire rig and identifying the consumption patterns along with the useful lives of these significant parts, are matters of judgment. This determination can be complex and subject to differing interpretations and views, particularly when rig equipment comprises individual components for which different depreciation methods or rates are appropriate. The estimated useful lives, residual values and method and components of depreciation are reviewed annually, and adjusted prospectively if appropriate. (e) Intangibles Intangible assets that are acquired by the Corporation with finite lives are initially recorded at estimated fair value and subsequently measured at cost less accumulated amortization and any accumulated impairment losses. Subsequent expenditures are capitalized only when they increase the future economic benefits of the specific asset to which they relate. Intangible assets are amortized based on estimates of useful lives. These estimates consider data and information from various sources including vendors and Precision’s own historical experience and may change as more experience is gained or technological advancements are made. Amortization is recognized in profit and loss using the straight-line method over the estimated useful lives of the respective assets. Precision’s loan commitment fees are amortized over the term of the respective facility. Software is amortized over its expected useful life of up to 10 years. The estimated useful lives and methods of amortization are reviewed annually and adjusted prospectively if appropriate. (f) Goodwill Goodwill is the amount that results when the purchase price of an acquired business exceeds the sum of the amounts allocated to the assets acquired, less liabilities assumed, based on their fair values. After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date, attributed to the cash-generating unit ( CGU (g) Impairment of Non-Financial Assets The carrying amounts of the Corporation’s non-financial assets, other than inventories and deferred tax assets, are reviewed at each reporting date to determine whether there is any indication of impairment. For the purpose of impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets (the cash-generating unit). Judgment is required in the aggregation of assets into CGUs. If any such indication exists, then the asset or CGU’s recoverable amount is estimated. Judgement is required when evaluating whether a CGU has indications of impairment. For CGUs that contain goodwill and other intangible assets that have indefinite lives or that are not yet available for use, an impairment test is, at a minimum, completed annually as of December 31. The recoverable amount of an asset or a CGU is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using an after-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. Value in use is generally computed by reference to the present value of the future cash flows expected to be derived from the CGU. An impairment loss is recognized if the carrying amount of an asset or a CGU exceeds its estimated recoverable amount. Impairment losses are recognized in profit or loss. Impairment losses recognized in respect of CGUs are allocated first to reduce the carrying amount of any goodwill allocated to the CGU and then to reduce the carrying amounts of the other assets in the CGU on a pro rata basis. An impairment loss in respect of goodwill is not reversed. In respect of other assets, impairment losses recognized in prior years are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized. (h) Borrowing Costs Interest and borrowing costs that are directly attributable to the acquisition, construction or production of assets that take a substantial period of time to prepare for their intended use are capitalized as part of the cost of those assets. Capitalization ceases during any extended period of suspension of construction or when substantially all activities necessary to prepare the asset for its intended use are complete. All other interest and borrowing costs are recognized in earnings in the period in which they are incurred. (i) Income Taxes Income tax expense is recognized in profit or loss except to the extent that it relates to items recognized directly in equity, in which case it is recognized in equity. Current tax is the expected tax payable or receivable on the taxable earnings or loss for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years. Deferred tax is recognized using the asset and liability method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognized on the initial recognition of assets or liabilities in a transaction that is not a business combination. In addition, deferred tax is not recognized for taxable temporary differences arising on the initial recognition of goodwill. Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, based on the laws that have been enacted or substantively enacted at the reporting date. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in profit or loss in the period that includes the date of enactment or substantive enactment. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset and they relate to taxes levied by the same tax authority on the same taxable entity, or on different tax entities that are expected to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realized simultaneously. A deferred tax asset is recognized to the extent that it is probable that future taxable profits will be available against which the temporary difference can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized. The Corporation is subject to taxation in numerous jurisdictions. Uncertainties exist with respect to the interpretation of complex tax regulations and requires significant judgement. Differences arising between the actual results and the assumptions made, or future changes to such assumptions, could necessitate future adjustments to taxable income and expense already recorded. The Corporation establishes provisions, based on reasonable estimates, for possible consequences of audits by the tax authorities of the respective countries in which it operates. The amount of such provisions are based on various factors, such as experience of previous tax audits and differing interpretations of tax regulations by the taxable entity and the responsible tax authority. (j) Revenue from Contracts with Customers Precision recognizes revenue from a variety of sources. In general, customer invoices are issued upon rendering all performance obligations for an individual well-site job. Under the Corporation’s standard contract terms, customer payments are to be received within 30 days of the customer’s receipt of an invoice. Contract Drilling Services The Corporation contracts individual drilling rig packages, including crews and support equipment, to its customers. Depending on the customer’s drilling program, contracts may be for a single well, multiple wells or a fixed term. Revenue from contract drilling services is recognized over time from spud to rig release on a daily basis. Operating days are measured through industry standard tour sheets that document the daily activity of the rig. Revenue is recognized at the applicable day rate for each well, based on rates specified in the drilling contract. The Corporation provides services under turnkey contracts, whereby Precision is required to drill a well to an agreed upon depth under specified conditions for a fixed price, regardless of the time required or problems encountered in drilling the well. Revenue from turnkey drilling contracts is recognized over time using the input method based on costs incurred to date in relation to estimated total contract costs, as that most accurately depicts the Corporation’s performance. The Corporation also provides directional drilling services, which include the provision of directional drilling equipment, tools and personnel to the wellsite, and performance of daily directional drilling services. Directional drilling revenue is recognized over time, upon the daily completion of operating activities. Operating days are measured through daily tour sheets. Revenue is recognized at the applicable day rate, as stipulated in the directional drilling contract. Completion and Production Services The Corporation provides a variety of well completion and production services including well servicing. In general, service rigs do not involve long-term contracts or penalties for termination. Revenue is recognized daily upon completion of services. Operating days are measured through daily tour sheets and field tickets. Revenue is recognized at the applicable daily or hourly rate, as stipulated in the contract. The Corporation offers its customers a variety of oilfield equipment for rental. Rental revenue is recognized daily at the applicable rate stated in the rental contract. Rental days are measured through field tickets. The Corporation provides accommodation and catering services to customers in remote locations. Customers contract these services either as a package or individually for a fixed term. For accommodation services, the Corporation supplies camp equipment and revenue is recognized over time on a daily basis, once the equipment is on-site and available for use, at the applicable rate stated in the contract. For catering services, the Corporation recognizes revenue daily according to meals served. Accommodation and catering services provided are measured through field tickets. (k) Employee Benefit Plans Precision sponsors various defined contribution retirement plans for its employees. The Corporation’s contributions to defined contribution plans are expensed as employees earn the entitlement. (l) Provisions Provisions are recognized when the Corporation has a present obligation as a result of a past event, when it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and when a reliable estimate can be made of the amount of the obligation. The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows. (m) Share Based Incentive Compensation Plans The Corporation has established several cash-settled share based incentive compensation plans for non-management directors, officers, and other eligible employees. The estimated fair value of amounts payable to eligible participants under these plans are recognized as an expense with a corresponding increase in liabilities over the period that the participants become unconditionally entitled to payment. The recorded liability is re-measured at the end of each reporting period until settlement with the resultant change to the fair value of the liability recognized in profit or loss for the period. When the plans are settled, the cash paid reduces the outstanding liability. The Corporation has an employee share purchase plan that allows eligible employees to purchase common shares through payroll deductions. Under this plan, contributions made by employees are matched to a specific percentage by the Corporation. The contributions made by the Corporation are expensed as incurred. Prior to January 1, 2012, the Corporation had an equity-settled deferred share unit plan whereby non-management directors of Precision could elect to receive all or a portion of their compensation in fully-vested deferred share units. Compensation expense was recognized based on the fair value price of the Corporation’s shares at the date of grant with a corresponding increase to contributed surplus. Upon redemption of the deferred share units into common shares, the amount previously recognized in contributed surplus is recorded as an increase to shareholders’ capital. The Corporation continues to have obligations under this plan. The Corporation has a share option plan for certain eligible employees. Under this plan, the fair value of share purchase options is calculated at the date of grant using the Black-Scholes option pricing model, and that value is recorded as compensation expense over the grant’s vesting period with an offsetting credit to contributed surplus. A forfeiture rate is estimated on the grant date and is adjusted to reflect the actual number of options that vest. Upon exercise of the equity purchase option, the associated amount is reclassified from contributed surplus to shareholders’ capital. Consideration paid by employees upon exercise of the equity purchase options is credited to shareholders’ capital. (n) Foreign Currency Translation Transactions of the Corporation’s individual entities are recorded in the currency of the primary economic environment in which it operates (its functional currency). Transactions in currencies other than the entities’ functional currency are translated at rates in effect at the time of the transaction. At each period end, monetary assets and liabilities are translated at the prevailing period-end rates. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated. Gains and losses are included in profit or loss except for gains and losses on translation of long-term debt designated as a hedge of foreign operations, which are deferred and included in other comprehensive income. For the purpose of preparing the Corporation’s consolidated financial statements, the financial statements of each foreign operation that does not have a Canadian dollar functional currency are translated into Canadian dollars. Assets and liabilities are translated at exchange rates in effect at the period end date. Revenues and expenses are translated using average exchange rates for the month of the respective transaction. Gains or losses resulting from these translation adjustments are recognized initially in other comprehensive income and reclassified from equity to profit or loss on disposal or partial disposal of the foreign operation. (o) Per Share Amounts Basic per share amounts are calculated using the weighted average number of shares outstanding during the period. Diluted per share amounts are calculated by using the treasury stock method for equity-based compensation arrangements. The treasury stock method assumes that any proceeds obtained on exercise of equity-based compensation arrangements would be used to purchase common shares at the average market price during the period. The weighted average number of shares outstanding is then adjusted by the difference between the number of shares issued from the exercise of equity-based compensation arrangements and shares repurchased from the related proceeds. (p) Financial Instruments i) Non-Derivative Financial Instruments: Financial assets and liabilities are classified and measured at amortized cost, fair value through other comprehensive income or fair value through profit and loss. The classification of financial assets and liabilities is generally based on the business model in which the asset or liability is managed and its contractual cash flow characteristics. Financial assets held within a business model whose objective is to collect contractual cash flows and whose contractual terms give rise to cash flows on specified dates that are solely payments of principal and interest on the principal amount outstanding are measured at amortized cost. After their initial fair value measurement, accounts receivable, accounts payable and accrued liabilities and long-term debt are classified and measured at amortized cost using the effective interest rate method. Upon initial recognition of a non-derivative financial asset a loss allowance is recorded for expected credit losses ( ECL ii) Derivative Financial Instruments: The Corporation may enter into certain financial derivative contracts in order to manage the exposure to market risks from fluctuations in interest rates or exchange rates. These instruments are not used for trading or speculative purposes. Precision has not designated its financial derivative contracts as effective accounting hedges, and thus has not applied hedge accounting, even though it considers certain financial contracts to be economic hedges. As a result, financial derivative contracts are classified as fair value through profit or loss and are recorded on the statement of financial position at estimated fair value. Transaction costs are recognized in profit or loss when incurred. Derivatives embedded in financial assets are never separated. Rather, the financial instrument as a whole is assessed for classification. Derivatives embedded in financial liabilities are separated from the host contract and accounted for separately when their economic characteristics and risks are not closely related to the host contract. Embedded derivatives in financial liabilities are recorded on the statement of financial position at estimated fair value and changes in the fair value are recognized in earnings. (q) Hedge Accounting The Corporation utilizes foreign currency long-term debt to hedge its exposure to changes in the carrying values of the Corporation’s net investment in certain foreign operations from fluctuations in foreign exchange rates. To be accounted for as a hedge, the foreign currency long-term debt must be designated and documented as a hedge and must be effective at inception and on an ongoing basis. The documentation defines the relationship between the foreign currency long-term debt and the net investment in the foreign operations, as well as the Corporation’s risk management objective and strategy for undertaking the hedging transaction. The Corporation formally assesses, both at inception and on an ongoing basis, whether the changes in fair value of the foreign currency long-term debt is highly effective in offsetting changes in fair value of the net investment in the foreign operations. The portion of gains or losses on the hedging item determined to be an effective hedge is recognized in other comprehensive income, net of tax, and is limited to the translation gain or loss on the net investment, while ineffective portions are recorded through profit or loss. A reduction in the fair value of the net investment in the foreign operations or increase in the foreign currency long-term debt balance may result in a portion of the hedge becoming ineffective. If the hedging relationship ceases to be effective or is terminated, hedge accounting is not applied to subsequent gains or losses. The amounts recognized in other comprehensive income are reclassified to profit and loss and the corresponding exchange gains or losses arising from the translation of the foreign operation are recorded through profit and loss upon dissolution or substantial dissolution of the foreign operation. (r) Assets Held For Sale Non-current assets, or disposal groups, are classified as held-for sale if it is highly probable that their carrying amount will be recovered primarily through a sale transaction rather than through continued use. Such assets, or disposal groups, are measured at the lower of their carrying amount and fair value less costs to sell. Impairment losses on initial classification as held-for-sale and subsequent gains or losses on remeasurement are recognized in profit or loss. (s) Leases At inception, Precision assesses whether its contracts contain a lease. A contract contains a lease if it conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The assessment of whether a contract conveys the right to control the use of an identified asset considers whether: • the contract involves the use of an identified asset and the substantive substitution rights of the supplier. If the supplier has a substantive substitution right, then the asset is not identified; • the lessee’s right to obtain substantially all of the economic benefits from the use of the asset; and • the lessee’s right to direct the use of the asset, including decision-making to change how and for what purpose the asset is used. At inception or on reassessment of a contract that contains a lease component, Precision allocates the consideration in the contract to each lease component on the basis of their relative stand-alone prices. Leases in which Precision is a lessee Precision recognizes a right-of-use asset and corresponding lease obligation at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease obligation adjusted for lease payments made on or before commencement date, incurred initial direct costs, estimated site retirement costs and any lease incentives received. The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are consistent with those of property, plant and equipment. In addition, the right-of-use asset is reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease obligation. The lease obligation is initially measured at the present value of the minimum lease payments not paid at commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, Precision’s incremental borrowing rate. Generally, Precision uses its incremental borrowing rate as the discount rate for those leases in which it is the lessee. Lease payments included in the measurement of the lease obligation comprise the following: • fixed payments, including in-substance fixed payments; • variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date; • amounts expected to be payable under a residual value guarantee; and • the exercise price under a purchase option that Precision is reasonably certain to exercise, lease payments in an optional renewal period if Precision is reasonably certain to exercise an extension option, and penalties for early termination of a lease unless Precision is reasonably certain not to terminate early. The lease obligation is measured at amortized cost using the effective interest method. The measurement of lease obligations require the use of certain estimates and assumptions including discount rates, exercise of lease term extension options, and escalating lease rates. It is remeasured when there is a change in: • future lease payments arising from a change in an index or rate; • the estimated amount expected to be payable under a residual value guarantee; or • the assessment of whether Precision will exercise a purchase, extension or termination option. When the lease obligation is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero. Leases in which Precision is a lessor When Precision acts as a lessor, at inception, Precision evaluates the classification as either a finance or operating lease. To classify each lease, Precision makes an overall assessment of whether the lease transfers substantially all of the risks and rewards incidental to ownership of the underlying asset. If this is the case, then the lease is a finance lease; if not, then it is an operating lease. When acting as a sub-lessor, Precision accounts for its interests in the head lease and the sub-lease separately. It assesses the lease classification of a sub-lease with reference to the right-of-use asset arising from the head lease, not with reference to the underlying asset. If a head lease is a short-term lease then Precision classifies the sub-lease as an operating lease. If an arrangement contains lease and non-lease components, Precision applies IFRS 15 to allocate the consideration in the contract. Precision recognizes lease payments received under operating leases for drilling rigs as income on a systematic basis, drilling days, over the lease term as part of revenue. The accounting policies applicable to Precision as a lessor in the comparative period were not different from IFRS 16. However, when Precision was an intermediate lessor the sub-leases were classified with reference to the underlying asset. (t) Government Assistance and Grants Precision may receive government grants in the form of transfers of resources in return for past or future compliance with certain conditions relating to operating activities. Government grants are recognized once there is reasonable assurance that Precision will comply with the attached conditions and grants will be received. Government grants are recognized in profit or loss on a systematic basis over the periods in which Precision recognizes expenses related to costs for which the grants are intended to compensate. (u) Critical Accounting Assumptions and Estimates i) Impairment of Long-Lived Assets At each reporting date, the Corporation reviews the carrying amount of assets in each CGU to determine whether an indicator of impairment exists. The Corporation’s analysis is based on relevant internal and external factors that indicate a CGU may be impaired such as the obsolescence or planned disposal of significant assets, financial performance of the CGU compared to forecasts and consideration of the Corporation’s market capitalization. When indications of impairment exist within a CGU, a recoverable amount is determined and requires assumptions to estimate future discounted cash flows. These estimates and assumptions include future drilling activity and margins and the resulting estimated earnings before interest, taxes, depreciation and amortization associated with the CGU and the discount rate used to present value the estimated cash flows. In selecting a discount rate, the Corporation uses observable market data inputs to develop a rate that the Corporation believes approximates the discount rate of market participants. Although the Corporation believes the assumptions and estimates are reasonable and consistent with current conditions, internal planning, and expected future operations, such assumptions and estimations are subject to significant |
Impact of COVID-19
Impact of COVID-19 | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Impact Of C O V I D19 [Abstract] | |
Impact of COVID-19 | NOTE 4. IMPACT OF COVID-19 In March 2020, the COVID-19 outbreak was declared a pandemic by the World Health Organization. Governments worldwide, including those countries in which Precision operates, have enacted emergency measures to combat the spread of the virus. These measures, which include the implementation of travel bans, self-imposed quarantine periods and social distancing, have caused a material disruption to businesses globally resulting in an economic slowdown and decreased demand for oil. Governments and central banks have reacted with significant monetary and fiscal interventions designed to stabilize economic conditions; however, the long-term success of these interventions is not determinable. The current challenging economic climate has had a significant adverse impact on the Corporation including, but not limited to, substantial reductions in revenue and cash flows, increased risk of non-payment of accounts receivable and risk of future impairments of property, plant and equipment and intangible assets. As a result of the decrease in demand, worldwide inventories of oil have increased significantly. However, voluntary production restraint from national oil companies and governments of oil-producing nations along with curtailments in the U.S. and Canada have shifted global oil markets from a position of over supply to inventory draws. The situation remains dynamic and the ultimate duration and magnitude of the impact on the economy and the financial effect on the Corporation remains unknown at this time. Estimates and judgements made by management in the preparation of these financial statements are increasingly difficult and subject to a higher degree of measurement uncertainty during this volatile period. |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Revenue Explanatory [Abstract] | |
Revenue | NOTE 5. REVENUE The following table includes a reconciliation of disaggregated revenue by reportable segment (Note 6). Revenue has been disaggregated by primary geographical market and type of service provided. Twelve months ended December 31, 2020 Contract Drilling Services Completion and Production Services Corporate and Other Inter- Segment Eliminations Total Canada $ 247,678 $ 60,621 $ — $ (2,686 ) $ 305,613 United States 427,436 16,630 — (14 ) 444,052 International 186,088 — — — 186,088 $ 861,202 $ 77,251 $ — $ (2,700 ) $ 935,753 Day rate/hourly services $ 779,772 $ 77,251 $ — $ (393 ) $ 856,630 Shortfall payments/idle but contracted 51,028 — — — 51,028 Turnkey drilling services 14,134 — — — 14,134 Directional services 9,637 — — — 9,637 Other 6,631 — — (2,307 ) 4,324 $ 861,202 $ 77,251 $ — $ (2,700 ) $ 935,753 Twelve months ended December 31, 2019 Contract Drilling Services Completion and Production Services Corporate and Other Inter- Segment Eliminations Total United States 852,293 19,627 — (269 ) 871,651 Canada $ 336,483 $ 128,202 $ — $ (5,308 ) $ 459,377 International 210,292 — — — 210,292 $ 1,399,068 $ 147,829 $ — $ (5,577 ) $ 1,541,320 Day rate/hourly services $ 1,333,114 $ 147,829 $ — $ (905 ) $ 1,480,038 Shortfall payments/idle but contracted 9,789 — — — 9,789 Turnkey drilling services 3,754 — — — 3,754 Directional services 41,876 — — — 41,876 Other 10,535 — — (4,672 ) 5,863 $ 1,399,068 $ 147,829 $ — $ (5,577 ) $ 1,541,320 |
Segmented Information
Segmented Information | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Operating Segments [Abstract] | |
Segmented Information | NOTE 6. SEGMENTED INFORMATION The Corporation operates primarily in Canada, the United States and certain international locations, in two industry segments; Contract Drilling Services and Completion and Production Services. Contract Drilling Services includes drilling rigs, directional drilling, procurement and distribution of oilfield supplies, and the manufacture, sale and repair of drilling equipment. Completion and Production Services includes service rigs, oilfield equipment rental, and camp and catering services. 2020 Contract Drilling Services Completion and Production Services Corporate and Other Inter- Segment Eliminations Total Revenue $ 861,202 $ 77,251 $ — $ (2,700 ) $ 935,753 Operating earnings (loss) 22,207 (3,671 ) (59,524 ) — (40,988 ) Depreciation and amortization 288,389 16,375 11,558 — 316,322 Gain on asset disposals (10,171 ) (1,447 ) (313 ) — (11,931 ) Total assets 2,571,397 132,771 194,710 — 2,898,878 Capital expenditures 57,741 3,362 489 — 61,592 2019 Contract Drilling Services Completion and Production Services Corporate and Other Inter- Segment Eliminations Total Revenue $ 1,399,068 $ 147,829 $ — $ (5,577 ) $ 1,541,320 Operating earnings (loss) 160,997 10,041 (76,461 ) — 94,577 Depreciation and amortization 300,882 17,881 14,853 — 333,616 Gain on asset disposals (46,849 ) (3,767 ) (125 ) — (50,741 ) Loss on asset decommissioning 20,263 — — — 20,263 Reversal of impairment of property, plant and equipment (5,810 ) — — — (5,810 ) Total assets 2,963,260 152,611 153,969 — 3,269,840 Capital expenditures 154,066 5,448 1,180 — 160,694 A reconciliation of operating earnings (loss) to loss before income taxes is as follows: 2020 2019 Operating earnings (loss) $ (40,988 ) $ 94,577 Deduct: Foreign exchange 4,542 (8,722 ) Finance charges 107,468 118,453 Gain on redemption and repurchase of unsecured senior notes (43,814 ) (6,815 ) Loss before income taxes $ (109,184 ) $ (8,339 ) The Corporation’s operations are carried on in the following geographic locations: 2020 United States Canada International Total Revenue $ 444,052 $ 305,613 $ 186,088 $ 935,753 Total assets 1,339,945 1,053,921 505,012 2,898,878 2019 United States Canada International Total Revenue $ 871,651 $ 459,377 $ 210,292 $ 1,541,320 Total assets 1,560,523 1,133,591 575,726 3,269,840 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment | NOTE 7. PROPERTY, PLANT AND EQUIPMENT 2020 2019 Cost $ 6,563,206 $ 6,670,979 Accumulated depreciation (4,090,523 ) (3,921,516 ) $ 2,472,683 $ 2,749,463 Rig equipment 2,269,794 2,510,505 Rental equipment 27,359 34,437 Other equipment 27,318 38,604 Vehicles 4,978 7,796 Buildings 49,451 56,834 Assets under construction 60,572 67,740 Land 33,211 33,547 $ 2,472,683 $ 2,749,463 Cost Rig Equipment Rental Equipment Other Equipment Vehicles Buildings Assets Under Construction Land Total Balance, December 31, 2018 $ 6,322,536 $ 130,463 $ 191,290 $ 45,456 $ 128,327 $ 84,561 $ 34,429 $ 6,937,062 Additions 18,436 — 976 224 415 139,835 — 159,886 Disposals (69,945 ) (19,982 ) (4,708 ) (6,014 ) (58 ) — — (100,707 ) Reclassifications 150,674 — 1,197 — — (151,871 ) — — Asset decommissioning (4,364 ) — — — — — — (4,364 ) Effect of foreign currency exchange differences (307,954 ) (174 ) (3,436 ) (1,160 ) (2,507 ) (4,785 ) (882 ) (320,898 ) Balance, December 31, 2019 6,109,383 110,307 185,319 38,506 126,177 67,740 33,547 6,670,979 Additions 10,375 — 350 — — 50,810 — 61,535 Disposals (78,028 ) (4,664 ) (3,990 ) (2,789 ) (3,053 ) — — (92,524 ) Reclassifications 55,322 — 521 — — (55,843 ) — — Effect of foreign currency exchange differences (71,285 ) (619 ) (1,196 ) (367 ) (846 ) (2,135 ) (336 ) (76,784 ) Balance, December 31, 2020 $ 6,025,767 $ 105,024 $ 181,004 $ 35,350 $ 122,278 $ 60,572 $ 33,211 $ 6,563,206 Accumulated Depreciation Rig Equipment Rental Equipment Other Equipment Vehicles Buildings Assets Under Construction Land Total Balance, December 31, 2018 $ 3,577,364 $ 86,471 $ 139,095 $ 32,754 $ 62,766 $ — $ — $ 3,898,450 Depreciation expense 289,056 7,473 13,023 3,521 7,663 — — 320,736 Disposals (33,929 ) (17,933 ) (3,274 ) (4,768 ) (58 ) — — (59,962 ) Asset decommissioning (3,518 ) — — — — — — (3,518 ) Reversal of impairment of property, plant and equipment (5,810 ) — — — — — — (5,810 ) Effect of foreign currency exchange differences (224,285 ) (141 ) (2,129 ) (797 ) (1,028 ) — — (228,380 ) Balance, December 31, 2019 3,598,878 75,870 146,715 30,710 69,343 — — 3,921,516 Depreciation expense 277,799 7,044 12,013 2,790 5,288 — — 304,934 Disposals (73,354 ) (4,631 ) (3,990 ) (2,782 ) (1,319 ) — — (86,076 ) Effect of foreign currency exchange differences (47,350 ) (618 ) (1,052 ) (346 ) (485 ) — — (49,851 ) Balance, December 31, 2020 $ 3,755,973 $ 77,665 $ 153,686 $ 30,372 $ 72,827 $ — $ — $ 4,090,523 (a) Impairment Test Precision reviews the carrying value of its long-lived assets for indications of impairment at the end of each reporting period. Due to the global economic slowdown and significant commodity price reductions in the first quarter of 2020, the Corporation identified indications of impairment in each of its CGU at March 31, 2020. Accordingly, the Corporation tested all CGUs for impairment as at March 31, 2020. In performing its impairment tests, the Corporation used a discounted cash flow model. Projected cash flows covered a five-year period and were based on future expected outcomes taking into account existing term contracts, past experience and management’s expectation of future market conditions. The primary source of cash flow information was the Corporation’s budget and strategic plan, developed based on benchmark commodity prices and industry supply-demand fundamentals. At March 31, 2020, the Corporation completed impairment tests for each CGU and no impairment charges were identified. At December 31, 2020, Precision reviewed each of its cash-generating units and did not identify indications of impairment and therefore, did not test its CGUs for impairment. (b) Asset Disposals Through the completion of normal course business operations, the Corporation sold used assets incurring gains or losses on disposal resulting in a gain on asset disposal of $12 million. For the period ended December 31, 2019, Precision recognized a $51 million gain on asset disposal which was mainly comprised by the following transactions. Mexico In 2019, Precision sold its Mexico-based drilling rigs and ancillary equipment, contained within its Contract Drilling Services segment, for total proceeds of US$48 million. Precision recognized a gain on asset disposal of US$24 million and reversed US$4 million of previous impairment charges. Snubbing In 2019, Precision disposed of certain snubbing units and related equipment, contained within the Completion and Production Services segment, for proceeds of $8 million resulting in a gain on asset disposal of $3 million. (c) Decommissioned Drilling Rigs In 2019, Precision incurred a $20 million loss on the decommissioning of certain drilling and ancillary equipment, contained within the Contract Drilling Services segment, that no longer met the Corporation’s High Performance technology standards. (d) Change in Rig Components In the fourth quarter of 2019, Precision performed its annual review of estimated useful lives, residual values and methods and components of depreciation of property, plant and equipment. Due to changes in the timing, nature and complexity of certain rig recertifications, the Corporation determined the associated costs represent a separate component of property, plant and equipment. This change was made prospectively. |
Intangibles
Intangibles | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Intangible Assets [Abstract] | |
Intangibles | NOTE 8. INTANGIBLES 2020 2019 Cost $ 54,189 $ 53,416 Accumulated amortization (26,523 ) (21,670 ) $ 27,666 $ 31,746 Loan commitment fees related to Senior Credit Facility $ 2,109 $ 2,272 Software 25,557 29,474 $ 27,666 $ 31,746 Cost Loan Commitment Fees Software Total Balance, December 31, 2018 $ 14,776 $ 37,136 $ 51,912 Additions 702 808 1,510 Effect of foreign currency exchange differences — (6 ) (6 ) Balance, December 31, 2019 15,478 37,938 53,416 Additions 690 57 747 Effect of foreign currency exchange differences — 26 26 Balance, December 31, 2020 $ 16,168 $ 38,021 $ 54,189 Accumulated Amortization Loan Commitment Fees Software Total Balance, December 31, 2018 $ 12,469 $ 4,042 $ 16,511 Amortization expense 737 4,422 5,159 Balance, December 31, 2019 13,206 8,464 21,670 Amortization expense 853 3,971 4,824 Effect of foreign currency exchange differences — 29 29 Balance, December 31, 2020 $ 14,059 $ 12,464 $ 26,523 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Long Term Debt [Abstract] | |
Long-Term Debt | NOTE 9. LONG-TERM DEBT 2020 2019 2020 2019 Current Portion of Long-Term Debt Real Estate Credit Facility US $ 704 US $ — $ 896 $ — Long-Term Debt Senior Credit Facility US $ 74,650 US $ — $ 95,041 $ — Real Estate Credit Facility 9,797 — 12,474 — Unsecured Senior Notes: 6.5% senior notes due 2021 — 90,625 — 117,678 7.75% senior notes due 2023 285,734 344,845 363,782 447,792 5.25% senior notes due 2024 263,205 307,690 335,099 399,545 7.125% senior notes due 2026 347,765 369,735 442,757 480,112 US $ 981,151 US $ 1,112,895 1,249,153 1,445,127 Less net unamortized debt issue costs (12,943 ) (17,946 ) $ 1,236,210 $ 1,427,181 Senior Credit Facility Unsecured Senior Notes Real Estate Credit Facility Debt Issue Costs Total Balance December 31, 2018 $ — $ 1,729,351 $ — $ (23,098 ) $ 1,706,253 Changes from financing cash flows: Redemption / repurchase of unsecured senior notes — (198,387 ) — — (198,387 ) Non-cash changes: Gain on redemption / repurchase of unsecured senior notes — (6,815 ) — — (6,815 ) Amortization of debt issue costs — — — 5,152 5,152 Foreign exchange adjustment — (79,022 ) — — (79,022 ) Balance December 31, 2019 — 1,445,127 — (17,946 ) 1,427,181 Changes from financing cash flows: Redemption / repurchase of unsecured senior notes — (240,793 ) — — (240,793 ) Repayment of long-term debt (37,243 ) — (76 ) — (37,319 ) Proceeds from Senior Credit Facility 137,255 — — — 137,255 Proceeds from Real Estate Credit Facility — — 13,811 — 13,811 Addition of debt issue costs — — — (354 ) (354 ) Non-cash changes: Gain on redemption / repurchase of unsecured senior notes — (43,814 ) — — (43,814 ) Amortization of debt issue costs — — — 5,350 5,350 Reclassified to current portion of long-term debt — — (896 ) — (896 ) Foreign exchange adjustment (4,971 ) (18,882 ) (365 ) 7 (24,211 ) Balance December 31, 2020 $ 95,041 $ 1,141,638 $ 12,474 $ (12,943 ) $ 1,236,210 Precision’s current and long-term debt obligations at December 31, 2020 will mature as follows: 2021 $ 896 2022 896 2023 459,719 2024 335,995 Thereafter 452,543 $ 1,250,049 (a) Senior Credit Facility: The senior secured revolving credit facility ( Senior Credit Facility The Senior Credit Facility requires that Precision comply with certain restrictive and financial covenants including a leverage ratio of consolidated senior debt to consolidated Covenant EBITDA (as defined in the debt agreement) of less than 2.5:1. For purposes of calculating the leverage ratio consolidated senior debt only includes secured indebtedness. It also requires the Corporation to maintain a ratio of consolidated Covenant EBITDA to consolidated interest expense for the most recent four consecutive quarters, of greater than 2.5:1, subject to the amendments noted below. Distributions under the Senior Credit Facility are subject to a pro-forma senior net leverage covenant of less than or equal to 1.75:1. The Senior Credit Facility also limits the redemption and repurchase of junior debt subject to a pro-forma senior net leverage covenant test of less than or equal to 1.75:1. The Senior Credit Facility has a term of four years, with an annual option on Precision’s part to request that the lenders extend, at their discretion, the facility to a new maturity date not to exceed five years from the date of the extension request. The current maturity date of the Senior Credit Facility is November 21, 2023. On April 9, 2020 Precision agreed with the lenders of its Senior Credit Facility to reduce the consolidated Covenant EBITDA to consolidated interest expense coverage ratio for the most recent four consecutive quarters of greater than or equal to 2.5:1 to 2.0:1 for the period ending September 30, 2020, 1.75:1 for the period ending December 31, 2020, 1.25:1 for the periods ending March 31, June 30 and September 30, 2021, 1.75:1, for the period ending December 31, 2021, 2.0:1 for the period ending March 31, 2022 and 2.5:1 for periods ending thereafter. During the covenant relief period, Precision’s distributions in the form of dividends, distributions and share repurchases are restricted to a maximum of US$15 million in 2020 and US$25 million in each of 2021 and 2022, subject to a pro forma senior net leverage ratio (as defined in the credit agreement) of less than or equal to 1.75:1. In addition, during 2021, the North American and acceptable secured foreign assets must directly account for at least 65% of consolidated Covenant EBITDA calculated quarterly on a rolling twelve-month basis, increasing to 70% thereafter. Precision also has the option to voluntarily terminate the covenant relief period prior to its March 31, 2022 end date. Under the Senior Credit Facility, amounts can be drawn in U.S. dollars and/or Canadian dollars. At December 31, 2020, US$75 million was drawn under this facility (2019 – nil). Up to US$200 million of the Senior Credit Facility is available for letters of credit denominated in U.S and/or Canadian dollars and other currencies acceptable to the fronting lender. As at December 31, 2020 outstanding letters of credit amounted to US$32 million (2019 – US$25 million). The interest rate on loans that are denominated in U.S. dollars is, at the option of Precision, either a margin over a U.S. base rate or a margin over LIBOR. The interest rate on loans denominated in Canadian dollars is, at the option of Precision, either a margin over the Canadian prime rate or a margin over the Canadian Dollar Offered Rate ( CDOR (b) Real Estate Credit Facility In November 2020, Precision established a Real Estate Term Credit Facility in the amount of US$11 million. The facility matures in November 2025 and is secured by real property located in Houston, Texas. Principal plus interest payments are due monthly, based on 15-year straight-line amortization with any unpaid principal and accrued interest due at maturity. Interest is calculated using a LIBOR rate plus margin. The Real Estate Credit Facility contains certain affirmative and negative covenants and events of default, customary for this type of borrowing. Under the terms of the Real Estate Credit Facility, Precision must maintain a consolidated interest coverage ratio in accordance with the Senior Credit Facility, described above, as of the last day of each period of four consecutive fiscal quarters commencing December 31, 2020. In the event the Consolidated Interest Coverage Ratio is waived or removed from the Senior Credit Facility, a minimum threshold of 1.15:1 is required. (c) Unsecured Senior Notes: Precision has outstanding the following unsecured senior notes: 7.75% US$ senior notes due 2023 These notes bear interest at a fixed rate of 7.75% per annum and mature on December 15, 2023. Interest is payable semi-annually on June 15 and December 15 of each year. Precision may redeem these notes in whole or in part at any time on or after December 15, 2019 and before December 15, 2021, at redemption prices ranging between 103.875% and 101.938% of their principal amount plus accrued interest. Any time on or after December 15, 2021, these notes can be redeemed for their principal amount plus accrued interest. Upon specified change of control events, each holder of a note will have the right to sell to Precision all or a portion of its notes at a purchase price in cash equal to 101% of the principal amount, plus accrued interest to the date of purchase. During 2020, Precision repurchased and cancelled US$59 million (2019 – US$5 million), recognizing a gain on repurchase of $18 million (2019 – nil). 5.25% US$ senior notes due 2024 These notes bear interest at a fixed rate of 5.25% per annum and mature on November 15, 2024. Interest is payable semi-annually on May 15 and November 15 of each year. Precision may redeem these notes in whole or in part at any time on or after May 15, 2019 and before May 15, 2022, at redemption prices ranging between 102.625% and 100.875% of their principal amount plus accrued interest. Any time on or after May 15, 2022, these notes can be redeemed for their principal amount plus accrued interest. Upon specified change of control events, each holder of a note will have the right to sell to Precision all or a portion of its notes at a purchase price in cash equal to 101% of the principal amount, plus accrued interest to the date of purchase. During 2020, Precision repurchased and cancelled US$44 million (2019 – US$43 million), recognizing a gain on repurchase of $16 million (2019 – $5 million). 7.125% US$ senior notes due 2026 These notes bear interest at a fixed rate of 7.125% per annum and mature on January 15, 2026. Interest is payable semi-annually on January 15 and July 15 of each year, commencing July 15, 2018. Prior to November 15, 2020, Precision may redeem up to 35% of the 7.125% senior notes due 2026 with the net proceeds of certain equity offerings at a redemption price equal to 107.125% of the principal amount plus accrued interest. Prior to November 15, 2020, Precision may redeem these notes in whole or in part at 100.0% of their principal amount, plus accrued interest and the greater of 1.0% of the principal amount of the note to be redeemed and the excess, if any, of the present value of the November 15, 2020 redemption price plus required interest payments through November 15, 2020 (calculated using the U.S. Treasury rate plus 50 basis points) over the principal amount of the note. As well, Precision may redeem these notes in whole or in part at any time on or after November 15, 2020 and before November 15, 2022, at redemption prices ranging between 105.344% and 101.781% of their principal amount plus accrued interest. Any time on or after November 15, 2023, these notes can be redeemed for their principal amount plus accrued interest. Upon specified change of control events, each holder of a note will have the right to sell to Precision all or a portion of its notes at a purchase price in cash equal to 101% of the principal amount, plus accrued interest to the date of purchase. During 2020, Precision repurchased and cancelled US$22 million (2019 – US$30 million), recognizing a gain on repurchase of $9 million (2019 – $1 million). 6.5% US$ senior notes due 2021 During 2020, Precision retired its 6.5% unsecured seniors through redemptions of US$88 million (2019 – US$75 million) principal amount and the repurchase and cancellation of US$3 million (2019 – nil), recognizing a gain on repurchase of $1 million (2019 – $1 million). The unsecured senior notes require Precision to comply with certain restrictive and financial covenants including an incurrence based test of Consolidated Interest Coverage Ratio, as defined in the senior note agreements, of greater than or equal to 2.0:1 for the most recent four consecutive fiscal quarters. In the event the Consolidated Interest Coverage Ratio is less than 2.0:1 for the most recent four consecutive fiscal quarters the senior notes restrict Precision’s ability to incur additional indebtedness. The unsecured senior notes also contain a restricted payments covenant that limits Precision’s ability to make payments in the nature of dividends, distributions and for repurchases from shareholders. This restricted payments basket grows by, among other things, 50% of cumulative consolidated net earnings, and decreases by 100% of cumulative consolidated net losses as defined in the note agreements, and cumulative payments made to shareholders. At December 31, 2020, the governing net restricted payments basket was negative $307 million (2019 – negative $517 million), therefore limiting us from making any further dividend payments or share repurchases until the governing restricted payments basket once again becomes positive. During 2020, pursuant to the indentures governing the unsecured senior notes, Precision used the available general restricted payments basket to facilitate the repurchase and cancellation of its common shares. Precision’s unsecured senior notes are fully and unconditionally guaranteed, jointly and severally, on a senior unsecured basis by all U.S. and Canadian subsidiaries that guaranteed the Senior Credit Facility ( Guarantor Subsidiaries (c) Covenants: Following is a listing of the currently applicable restrictive and financial covenants as at December 31, 2020: Covenant At December 31, 2020 Senior Credit Facility Consolidated senior debt to consolidated covenant EBITDA (1) ≤ 2.50 0.23 Consolidated covenant EBITDA to consolidated interest expense ≥ 1.75 2.68 Real Estate Credit Facility Consolidated covenant EBITDA to consolidated interest expense ≥ 1.75 2.68 Unsecured Senior Notes Consolidated interest coverage ratio ≥ 2.00 2.57 (1) For purposes of calculating the leverage ratio consolidated senior debt only includes secured indebtedness. At December 31, 2020, Precision was in compliance with the covenants of the Senior Credit Facility, Real Estate Credit Facility and unsecured senior notes. |
Restructuring and Other
Restructuring and Other | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Restructuring And Other [Abstract] | |
Restructuring and Other | NOTE 10. RESTRUCTURING AND OTHER For the period ended December 31, 2020, the Corporation had restructuring charges of $18 million (2019 – $6 million). These charges were comprised of severance, as the Corporation aligned its cost structure to reflect reduced global activity, and certain costs associated with the shutdown of directional drilling operations in the United States in the first quarter of 2020. In response to the economic slowdown caused by COVID-19, governments enacted various employer assistance and economic stimulus programs. In the second quarter of 2020, the Government of Canada introduced the Canadian Emergency Wage Subsidy program. For the year ended December 31, 2020, Precision recognized $26 million (2019 – nil) of salary and wage subsidies. Wage subsidies were presented as reductions of operating and general and administrative expense of $21 million (2019 – nil) and $5 million (2019 – nil), respectively. |
Finance Charges
Finance Charges | 12 Months Ended |
Dec. 31, 2020 | |
Finance Costs [Abstract] | |
Finance Charges | NOTE 11. FINANCE CHARGES 2020 2019 Interest: Long-term debt $ 98,555 $ 110,730 Lease obligations 3,217 3,389 Other 232 21 Income (739 ) (1,576 ) Amortization of debt issue costs 6,203 5,889 Finance charges $ 107,468 $ 118,453 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Leases [Abstract] | |
Leases | NOTE 12. LEASES (a) As a lessee Precision recognizes right-of-use assets primarily from its leases of real estate and vehicles and equipment. Real Estate Vehicles and Equipment Total Balance, January 1, 2019 $ — $ — $ — Transition adjustments 58,635 14,829 73,464 Additions — 1,947 1,947 Derecognition (29 ) — (29 ) Depreciation (4,055 ) (4,403 ) (8,458 ) Lease remeasurements 163 — 163 Effect of foreign currency exchange differences (688 ) (257 ) (945 ) Balance, December 31, 2019 $ 54,026 $ 12,116 $ 66,142 Additions 136 3,031 3,167 Derecognition — (2,597 ) (2,597 ) Depreciation (3,900 ) (3,517 ) (7,417 ) Lease remeasurements (6,233 ) 2,602 (3,631 ) Effect of foreign currency exchange differences (340 ) (156 ) (496 ) Balance, December 31, 2020 $ 43,689 $ 11,479 $ 55,168 Precision’s real estate lease contracts often contain renewal options which may impact the determination of the lease term for purposes of calculating the lease obligation. If it is reasonably certain that a renewal option will be exercised, the renewal period is included in the lease term. When entering a lease, Precision assesses whether it is reasonably certain renewal options will be exercised. Reasonable certainty is established if all relevant facts and circumstances indicate an economic incentive to exercise the renewal option. For the majority of its real estate leases, Precision is reasonably certain it will exercise its renewal option. Accordingly, the renewal period has been included in the lease term used to calculate the lease obligation. For the period ended December 31, 2020, Precision had total cash outflows of $9 million (2019 – $10 million) in relation to its lease obligations. The Corporation has commitments under various lease agreements, primarily for real estate and vehicles and equipment. Terms of Precision’s real estate leases run for a period of one to 10 years while vehicle leases are typically for terms of between three and four years. Expected non-cancellable undiscounted operating lease payments are as follows: 2020 2019 Less than one year $ 10,960 $ 11,954 One to five years 29,630 33,566 More than five years 6,590 11,117 $ 47,180 $ 56,637 (b) As a lessor Precision leases its rig equipment under long-term drilling contracts with terms ranging from one to five years. At December 31, 2020, the net book value of the underlying rig equipment subject to long-term drilling contracts was $477 million (2019 – $1 billion). The following table sets out a maturity analysis of lease payments, showing the undiscounted lease payments to be received after December 31, 2020. Less than one year $ 182,139 One to five years 102,216 $ 284,355 (c) Adoption of IFRS 16, Leases Precision adopted IFRS 16 on January 1, 2019 using the modified retrospective method of adoption. At the date of initial application, for those leases previously classified as an operating lease under IAS 17, Management elected to recognize and measure the respective right-of-use assets at the amount equal to the lease obligation, adjusted for any prepaid or accrued lease payment immediately before the date of initial application. The opening balance sheet adjustment in relation to these leases was: January 1, 2019 Right-of-use asset $ 73,464 Accounts payable and accrued liabilities 2,800 Lease obligations (73,464 ) Deficit (2,800 ) At the date of transition, Precision derecognized $3 million of its deferred base rent balance which was established to straight-line amortize escalating corporate office rent expenses over the term of the lease. |
Share Based Compensation Plans
Share Based Compensation Plans | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Abstract] | |
Share Based Compensation Plans | NOTE 13. SHARE BASED COMPENSATION PLANS Precision’s omnibus equity incentive plan ( Omnibus Plan Award unit and share option quantities and share option exercise prices have been retrospectively adjusted to reflect the 20:1 share consolidation as described in Note 17(c). Liability Classified Plans Restricted Share Units Performance Share Units Executive Performance Share Units Non- Management Directors’ DSUs Total Balance, December 31, 2018 $ 5,409 $ 4,521 $ — $ 2,481 $ 12,411 Expensed during the period 5,755 1,583 — 855 8,193 Payments (3,846 ) (3,246 ) — — (7,092 ) Balance, December 31, 2019 7,318 2,858 — 3,336 13,512 Expensed during the period 3,119 2,787 — (1,551 ) 4,355 Reclassification from equity-settled plans — — 6,833 — 6,833 Payments (3,813 ) (894 ) — (176 ) (4,883 ) Balance, December 31, 2020 $ 6,624 $ 4,751 $ 6,833 $ 1,609 $ 19,817 Current 4,212 1,120 2,978 — 8,310 Long-term 2,412 3,631 3,855 1,609 11,507 $ 6,624 $ 4,751 $ 6,833 $ 1,609 $ 19,817 (a) Restricted Share Units and Performance Share Units Precision has various cash-settled share based incentive plans for officers and other eligible employees. Under the Restricted Share Unit ( RSU PSU A summary of the RSUs and PSUs outstanding under these share based incentive plans is presented below: RSUs Outstanding PSUs Outstanding December 31, 2018 202,796 227,150 Granted 209,368 101,945 Redeemed (75,284 ) (66,138 ) Forfeited (19,976 ) (96,189 ) December 31, 2019 316,904 166,768 Granted 363,253 502,558 Redeemed (127,884 ) (39,028 ) Forfeited (67,491 ) (64,919 ) December 31, 2020 484,782 565,379 (b) Executive Performance Share Units Precision grants Executive PSUs to certain senior executives. Prior to the fourth quarter of 2020, units were granted with the intention of settling them in voting shares of the Corporation either issued from treasury or purchased in the open market. On December 31, 2020, pursuant to the Omnibus Plan, Precision changed its intention and anticipates settling the Executive PSUs in cash. Accordingly, $7 million of previously expensed share based compensation charges have been reclassified to a financial liability at December 31, 2020. Executive PSUs vest over a three-year period and incorporate performance criteria established at the date of grant that can adjust the number of performance share units available for settlement from zero to two times the amount originally granted. A summary of the activity under this share based incentive plan is presented below: Executive Performance Share Units Outstanding December 31, 2018 159,553 Granted 210,580 Forfeited (1,288 ) December 31, 2019 368,845 Redeemed (57,442 ) Forfeited (22,696 ) December 31, 2020 288,707 During the first quarter of 2020, pursuant to the omnibus equity incentive plan, Precision elected to cash-settle vested Executive PSUs. Precision reclassified $1 million of previously expensed share-based compensation charges to establish a financial liability that was subsequently settled during the quarter. Included in net loss for the year ended December 31, 2020 is an expense of $15 million (2019 – $12 million). (c) Non-Management Directors Precision has a deferred share unit ( DSU Deferred Share Units Outstanding Balance December 31, 2018 52,682 Granted 36,931 Balance December 31, 2019 89,613 Redeemed (12,039 ) Balance December 31, 2020 77,574 During the second quarter of 2020, Precision elected to settle the redemption of DSUs in common shares. Equity Settled Plans (d) Option Plan Under this plan, the exercise price of each option equals the fair market value of the option at the date of grant determined by the weighted average trading price for the five days preceding the grant. The options are denominated in either Canadian or U.S. dollars, and vest over a period of three years from the date of grant, as employees render continuous service to the Corporation, and have a term of seven years. A summary of the status of the equity incentive plan is presented below: Canadian Share Options Options Outstanding Range of Exercise Prices Weighted Average Exercise Price Options Exercisable December 31, 2018 236,658 $ 87.00 – 286.20 $ 155.56 189,324 Forfeited (35,579 ) 143.00 – 213.40 210.29 December 31, 2019 201,079 87.00 – 286.20 145.88 178,453 Forfeited (52,414 ) 87.00 – 203.00 165.79 December 31, 2020 148,665 $ 87.00 – 286.20 $ 138.86 141,156 U.S. Share Options Options Outstanding Range of Exercise Prices (US$) Weighted Average Exercise Price (US$) Options Exercisable December 31, 2018 303,293 $ 64.20 – 214.80 $ 103.47 161,204 Granted 29,965 51.20 – 51.20 51.20 Forfeited (15,105 ) 155.80 – 214.80 213.54 December 31, 2019 318,153 51.20 – 183.60 93.32 217,441 Forfeited (34,360 ) 64.20 – 183.60 151.92 December 31, 2020 283,793 $ 51.20 – 183.60 $ 86.23 239,521 Canadian Share Options Total Options Outstanding Options Exercisable Range of Exercise Prices: Number Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Number Weighted Average Exercise Price $ 87.00 – 139.99 47,970 $ 88.17 3.09 40,461 $ 88.38 140.00 – 279.99 99,710 161.80 1.19 99,710 161.80 280.00 – 286.20 985 286.20 0.34 985 286.20 $ 87.00 – 286.20 148,665 $ 138.86 1.80 141,156 $ 141.62 U.S. Share Options Total Options Outstanding Options Exercisable Range of Exercise Prices (US$): Number Weighted Average Exercise Price (US$) Weighted Average Remaining Contractual Life (Years) Number Weighted Average Exercise Price (US$) $ 51.20 – 79.99 176,603 $ 64.01 3.49 132,331 $ 65.04 80.00 – 139.99 91,240 112.21 2.38 91,240 112.21 140.00 – 183.60 15,950 183.60 0.12 15,950 183.60 $ 51.20 – 183.60 283,793 $ 86.23 2.94 239,521 $ 90.90 No options were granted during 2020. The per option weighted average fair value of the share options granted during 2019 was $30.80 estimated on the grant date using the Black-Scholes option pricing model with the following assumptions: average risk-free interest rate of 2.5%, average expected life of four years, expected forfeiture rate of 5% and expected volatility of 57%. Included in net loss for the year ended December 31, 2020 is an expense of $1 million (2019 – $2 million). (e) Non-Management Directors Prior to January 1, 2012, Precision had a deferred share unit plan for non-management directors. Under the plan, fully vested deferred share units were granted quarterly based on an election by the non-management director to receive all or a portion of his or her compensation in deferred share units. These deferred share units are redeemable into an equal number of common shares any time after the director’s retirement. A summary of this share based incentive plan is presented below: Deferred Share Units Outstanding December 31, 2018 and 2019 4,659 Redeemed (3,189 ) December 31, 2020 1,470 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Net Deferred Tax Assets And Liabilities [Abstract] | |
Income Taxes | NOTE 14. INCOME TAXES The provision for income taxes differs from that which would be expected by applying statutory Canadian income tax rates. A reconciliation of the difference for the years ended December 31, is as follows: 2020 2019 Loss before income taxes $ (109,184 ) $ (8,339 ) Federal and provincial statutory rates 25 % 27 % Tax at statutory rates $ (27,296 ) $ (2,252 ) Adjusted for the effect of: Non-deductible expenses 628 1,597 Non-taxable capital gains (6,184 ) (1,408 ) Impact of foreign tax rates (238 ) (13,549 ) Withholding taxes 813 1,262 Taxes related to prior years (1,531 ) (1,975 ) Tax assets not recognized 44,112 — Other 650 1,368 Income tax expense (recovery) $ 10,954 $ (14,957 ) In 2020, the Province of Alberta accelerated the reductions to corporate income tax rates which were announced in 2019. The tax rate was decreased to 8% effective July 1, 2020. The impact of this rate reduction is nominal and has been reflected in the current year tax expense. The net deferred tax liability is comprised of the tax effect of the following temporary differences: 2020 2019 Deferred tax liability: Property, plant and equipment and intangibles $ 393,631 $ 426,934 Debt issue costs 2,665 3,280 Partnership deferrals 2,532 850 Other 6,322 7,926 405,150 438,990 Offsetting of assets and liabilities (383,914 ) (413,601 ) $ 21,236 $ 25,389 Deferred tax assets: Losses (expire from time to time up to 2040) $ 370,439 $ 402,025 Long-term incentive plan 4,956 6,131 Other 9,617 10,169 385,012 418,325 Offsetting of assets and liabilities (383,914 ) (413,601 ) $ 1,098 $ 4,724 Net deferred tax liability $ 20,138 $ 20,665 Included in the deferred tax assets at December 31, 2020 was $1 million (2019 – $5 million) of tax-effected temporary differences related to the Corporation’s international operations. The Corporation has loss carryforwards in the U.S. and certain international locations and capital loss carry forwards in Canada and other deductible temporary differences in certain international locations for which it is unlikely that sufficient future taxable income will be available. Accordingly, the Corporation has not recognized a deferred tax asset for the following items: 2020 2019 Tax losses (Capital) $ 29,809 $ 31,033 Tax losses (Income) 72,516 33,221 Deductible temporary differences 2,020 — Total $ 104,345 $ 64,254 The movement in temporary differences is as follows: Property, Plant and Equipment and Intangibles Partnership Deferrals Other Deferred Tax Liabilities Losses Debt Issue Costs Long-Term Incentive Plan Other Deferred Tax Assets Net Deferred Tax Liability Balance, December 31, 2018 $ 467,109 $ 1,730 $ 5,722 $ (423,595 ) $ 3,534 $ (6,849 ) $ (11,752 ) $ 35,899 Recognized in net earnings (26,825 ) (880 ) 2,216 7,874 (254 ) 572 1,260 (16,037 ) Effect of foreign currency exchange differences (13,350 ) — (12 ) 13,696 — 146 323 803 Balance, December 31, 2019 $ 426,934 $ 850 $ 7,926 $ (402,025 ) $ 3,280 $ (6,131 ) $ (10,169 ) $ 20,665 Recognized in net earnings (loss) (28,600 ) 1,682 (1,601 ) 33,141 (615 ) 1,120 537 5,664 Recognized in other comprehensive income — — — (5,398 ) — — — (5,398 ) Effect of foreign currency exchange differences (4,703 ) — (3 ) 3,843 — 55 15 (793 ) Balance, December 31, 2020 $ 393,631 $ 2,532 $ 6,322 $ (370,439 ) $ 2,665 $ (4,956 ) $ (9,617 ) $ 20,138 |
Bank Indebtedness
Bank Indebtedness | 12 Months Ended |
Dec. 31, 2020 | |
Debt Instruments Held [Abstract] | |
Bank Indebtedness | NOTE 15. BANK INDEBTEDNESS At December 31, 2020, Precision had available $40 million (2019 – $40 million) and US$15 million (2019 – US$15 million) under secured operating facilities, and a secured US$30 million (2019 – US$30 million) facility for the issuance of letters of credit and performance and bid bonds to support international operations. As at December 31, 2020 and 2019, no amounts had been drawn on any of the facilities. Availability of the $40 million and US$30 million facility was reduced by outstanding letters of credit in the amount of $7 million (2019 – $26 million) and US$2 million (2019 – US$2 million), respectively. The facilities are primarily secured by charges on substantially all present and future property of Precision and its material subsidiaries. Advances under the $40 million facility are available at the bank’s prime lending rate, U.S. base rate, U.S. LIBOR rate plus applicable margin, or applicable margin for Banker’s Acceptances, or in combination, and under the US$15 million facility at the bank’s prime lending rate. |
Provisions and Other
Provisions and Other | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Other Provisions [Abstract] | |
Provisions and Other | Workers’ Compensation Balance December 31, 2018 $ 13,373 Expensed during the year 4,047 Payment of deductibles and uninsured claims (4,915 ) Effects of foreign currency exchange differences (639 ) Balance December 31, 2019 11,866 Recovered during the year (750 ) Payment of deductibles and uninsured claims (2,698 ) Effects of foreign currency exchange differences (110 ) Balance December 31, 2020 $ 8,308 2020 2019 Current $ 745 $ 1,907 Long-term 7,563 9,959 $ 8,308 $ 11,866 Precision maintains a provision for the deductible and uninsured portions of workers’ compensation and general liability claims. The amount accrued for the provision for losses incurred varies depending on the number and nature of the claims outstanding at the balance sheet dates. In addition, the accrual includes management’s estimate of the future cost to settle each claim such as future changes in the severity of the claim and increases in medical costs. Precision uses third parties to assist in developing the estimate of the ultimate costs to settle each claim, which is based on historical experience associated with the type of each claim and specific information related to each claim. The specific circumstances of each claim may change over time prior to settlement and, as a result, the estimates made as of the balance sheet dates may change. |
Shareholders' Capital
Shareholders' Capital | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Classes Of Share Capital [Abstract] | |
Shareholders' Capital | NOTE 17. SHAREHOLDERS’ CAPITAL (a) Authorized – unlimited number of voting common shares – unlimited number of preferred shares, issuable in series, limited to an amount equal to one half of the issued and outstanding common shares (b) Issued Common shares Number Amount Balance, December 31, 2018 14,689,092 $ 2,322,280 Share repurchase (824,102 ) (25,902 ) Balance, December 31, 2019 13,864,990 $ 2,296,378 Share repurchase (420,588 ) (11,317 ) Share issuance on redemption of non-management DSUs 15,228 677 Share consolidation adjustment (37 ) — Balance, December 31, 2020 13,459,593 $ 2,285,738 (c) Share Consolidation On November 12, 2020, Precision Drilling Corporation completed a 20:1 consolidation of its common shares. No fractional shares were issued pursuant to the share consolidation. In lieu of any such fractional shares, each registered shareholder otherwise entitled to a fractional share following the implementation of the share consolidation received the nearest whole number of post-consolidation shares, resulting in a share consolidation adjustment of 37 common shares. (d) Normal Course Issuer Bid In 2019, the Toronto Stock Exchange (“TSX”) approved Precision’s application to implement a Normal Course Issuer Bid (“NCIB”). During the third quarter of 2020, the TSX approved Precision’s application to renew the Normal Course Issuer Bid. Under the terms of the NCIB, Precision may purchase and cancel up to a maximum of 1,199,883 common shares, representing 10% of the public float of common shares as of August 14, 2020. Purchases under the NCIB were made through the facilities of the TSX, the New York Stock Exchange and various other designated exchanges in accordance with applicable regulatory requirements at a price per common share representative of the market price at the time of acquisition. The NCIB will terminate no later than August 26, 2021. For the year ended December 31, 2020, Precision repurchased and cancelled a total of 420,588 (2019 – 824,102) common shares for $11 million (2019 – $26 million). Subsequent to December 31, 2020, Precision repurchased and cancelled an additional 155,168 common shares for $4 million. |
Per Share Amounts
Per Share Amounts | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Per Share Amounts | NOTE 18. PER SHARE AMOUNTS The following tables reconcile the net earnings (loss) and weighted average shares outstanding used in computing basic and diluted earnings (loss) per share: 2020 2019 Net earnings (loss) – basic and diluted $ (120,138 ) $ 6,618 (Stated in thousands) 2020 2019 Weighted average shares outstanding – basic 13,722 14,539 Effect of share options and other equity compensation plans — 320 Weighted average shares outstanding – diluted 13,722 14,859 Comparative period basic and diluted weighted average shares outstanding have been retrospectively adjusted to reflect the 20:1 share consolidation as described in Note 17(c). |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2020 | |
Text Block1 [Abstract] | |
Accumulated Other Comprehensive Income | NOTE 19. ACCUMULATED OTHER COMPREHENSIVE INCOME Unrealized Foreign Currency Translation Gains (Losses) Foreign Exchange Gain (Loss) on Net Investment Hedge Tax Benefit Related to Net Investment Hedge of Long-Term Debt Accumulated Other Comprehensive Income December 31, 2018 $ 616,363 $ (454,349 ) $ — $ 162,014 Other comprehensive income (loss) (106,781 ) 79,022 — (27,759 ) December 31, 2019 509,582 (375,327 ) — 134,255 Other comprehensive income (loss) (25,925 ) 23,853 5,398 3,326 December 31, 2020 $ 483,657 $ (351,474 ) $ 5,398 $ 137,581 |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2020 | |
Employees Benefit Plans [Abstract] | |
Employee Benefit Plans | NOTE 20. EMPLOYEE BENEFIT PLANS The Corporation has a defined contribution pension plan covering a significant number of its employees. Under this plan, the Corporation matched individual contributions up to 2% (2019 – 5%) of the employee’s eligible compensation. Total expense under the defined contribution plan in 2020 was $6 million (2019 – $13 million). |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 21. RELATED PARTY TRANSACTIONS Compensation of Key Management Personnel The remuneration of key management personnel is as follows: 2020 2019 Salaries and other benefits $ 10,031 $ 8,747 Equity-settled share based compensation 9,148 9,047 Cash-settled share based compensation 419 1,432 $ 19,598 $ 19,226 Key management personnel are comprised of the directors and executive officers of the Corporation. Certain executive officers have entered into employment agreements with Precision that provide termination benefits of up to 24 months base salary plus up to two times targeted incentive compensation upon dismissal without cause. |
Capital Commitments
Capital Commitments | 12 Months Ended |
Dec. 31, 2020 | |
Commitments [Abstract] | |
Capital Commitments | NOTE 22. CAPITAL COMMITMENTS At December 31, 2020, the Corporation had commitments to purchase property, plant and equipment totaling $113 million (2019 – $113 million). Payments of $24 million for these commitments are expected to be made in 2021, $53 million in 2022 and $36 million in 2023. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Financial Instruments [Abstract] | |
Financial Instruments | NOTE 23. FINANCIAL INSTRUMENTS Financial Risk Management The Board of Directors is responsible for identifying the principal risks of Precision’s business and for ensuring the implementation of systems to manage these risks. With the assistance of senior management, who report to the Board of Directors on the risks of Precision’s business, the Board of Directors considers such risks and discusses the management of such risks on a regular basis. Precision has exposure to the following risks from its use of financial instruments: (a) Credit Risk Accounts receivable includes balances from a large number of customers primarily operating in the oil and natural gas industry. The Corporation manages credit risk by assessing the creditworthiness of its customers before providing services and on an ongoing basis, and by monitoring the amount and age of balances outstanding. In some instances, the Corporation will take additional measures to reduce credit risk including obtaining letters of credit and prepayments from customers. When indicators of credit problems appear, the Corporation takes appropriate steps to reduce its exposure including negotiating with the customer, filing liens and entering into litigation. For the year ended December 31, 2020, revenue from transactions with one of Precision’s contract drilling customers exceeded 10% of consolidated revenue. Revenue from this customer accounted for 12% of consolidated revenue. No other customers exceeded 10% of consolidated revenue for the year. In 2019, there were no customers that exceeded 10% of consolidated revenue. In addition, Precision’s most significant customer accounted for $11 million of the trade receivables amount at December 31, 2020 (2019 – $12 million). The movement in the expected credit loss allowance during the year was as follows: 2020 2019 Balance, January 1, $ 929 $ 1,470 Impairment loss recognized 812 72 Amounts written-off as uncollectible (479 ) (537 ) Impairment loss reversed (396 ) (24 ) Effect of movement in exchange rates (4 ) (52 ) Balance, December 31, $ 862 $ 929 The ageing of trade receivables at December 31 was as follows: 2020 2019 Gross Provision for Impairment Gross Provision for Impairment Not past due $ 66,191 $ 1 $ 144,292 $ 1 Past due 0 – 30 days 35,060 8 47,965 8 Past due 31 – 120 days 11,649 26 19,166 28 Past due more than 120 days 1,895 827 1,303 892 $ 114,795 $ 862 $ 212,726 $ 929 (b) Interest Rate Risk Interest rate risk is the risk that future cash flows will fluctuate as a result of changes in market interest rates. Precision had exposure to interest rate fluctuations on amounts drawn on its Senior Credit Facility and Real Estate Credit Facility as it is subject to floating rates of interest. At December 31, 2020, Precision had drawn US$75 million on its Senior Credit Facility (2019 – nil) and US$11 million (2019 – nil) on its Real Estate Credit Facility. For the year ended December 31, 2020, a 1% change to the interest rate would have had a $1.0 million impact on net income (2019 – nil). The interest rate on Precision’s unsecured senior notes is fixed and is not subject to interest rate risk. (c) Foreign Currency Risk The Corporation is primarily exposed to foreign currency fluctuations in relation to the working capital of its foreign operations and certain long-term debt facilities of its Canadian operations. The Corporation has no significant exposures to foreign currencies other than the U.S. dollar. The Corporation monitors its foreign currency exposure and attempts to minimize the impact by aligning appropriate levels of U.S. denominated debt with cash flows from U.S. based operations. The following financial instruments were denominated in U.S. dollars: 2020 2019 Canadian Operations Foreign Operations Canadian Operations Foreign Operations Cash US $ 35,257 US $ 26,057 US $ 9,727 US $ 41,154 Accounts receivable — 98,298 242 150,873 Accounts payable and accrued liabilities (18,727 ) (59,704 ) (17,730 ) (86,324 ) Long-term liabilities, excluding long-term incentive plans (1) — (16,197 ) — (7,669 ) Net foreign currency exposure US $ 16,530 US $ 48,454 US $ (7,761 ) US $ 98,034 Impact of $0.01 change in the U.S. dollar to Canadian dollar exchange rate on net earnings (loss) $ 165 $ — $ (78 ) $ — Impact of $0.01 change in the U.S. dollar to Canadian dollar exchange rate on comprehensive loss $ — $ 485 $ — $ 980 (1) Excludes U.S. dollar long-term debt that has been designated as a hedge of the Corporation’s net investment in certain self-sustaining foreign operations. (d) Liquidity Risk Liquidity risk is the exposure of the Corporation to the risk of not being able to meet its financial obligations as they become due. The Corporation manages liquidity risk by monitoring and reviewing actual and forecasted cash flows to ensure there are available cash resources to meet these needs. The following are the contractual maturities of the Corporation’s financial liabilities and other contractual commitments as at December 31, 2020: 2021 2022 2023 2024 2025 Thereafter Total Accounts payable and accrued liabilities $ 150,957 $ — $ — $ — $ — $ — $ 150,957 Share based compensation 7,768 9,858 9,419 — — — 27,045 Long-term debt 896 896 459,719 335,995 9,786 442,757 1,250,049 Interest on long-term debt (1) 80,980 80,980 79,540 47,396 31,964 1,314 322,174 Commitments 34,877 62,589 45,401 5,963 5,229 6,590 160,649 Total $ 275,478 $ 154,323 $ 594,079 $ 389,354 $ 46,979 $ 450,661 $ 1,910,874 (1) Excludes amortization of long-term debt issue costs. Fair Values The carrying value of cash, accounts receivable, and accounts payable and accrued liabilities approximates their fair value due to the relatively short period to maturity of the instruments. Amounts drawn on the Senior Credit Facility and Real Estate Credit Facility, measured at amortized cost, approximate fair value as this indebtedness is subject to floating rates of interest. The fair value of the unsecured senior notes at December 31, 2020 was approximately $1,023 million (2019 – $1,428 million). Financial assets and liabilities recorded or disclosed at fair value in the consolidated statements of financial position are categorized based on the level of judgment associated with the inputs used to measure their fair value. Hierarchical levels are based on the amount of subjectivity associated with the inputs in the fair determination and are as follows: Level I – Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. Level II – Inputs (other than quoted prices included in Level I) are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life. Level III – Inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. The estimated fair value of Unsecured Senior Notes is based on level II inputs. The fair value is estimated considering the risk free interest rates on government debt instruments of similar maturities, adjusted for estimated credit risk, industry risk and market risk premiums. |
Capital Management
Capital Management | 12 Months Ended |
Dec. 31, 2020 | |
Capital Management [Abstract] | |
Capital Management | NOTE 24. CAPITAL MANAGEMENT The Corporation’s strategy is to carry a capital base to maintain investor, creditor and market confidence and to sustain future development of the business. The Corporation seeks to maintain a balance between the level of long-term debt and shareholders’ equity to ensure access to capital markets to fund growth and working capital given the cyclical nature of the oilfield services sector. The Corporation strives to maintain a conservative ratio of long-term debt to long-term debt plus equity. As at December 31, 2020 and 2019, these ratios were as follows: 2020 2019 Long-term debt $ 1,236,210 $ 1,427,181 Shareholders’ equity 1,406,640 1,527,432 Total capitalization $ 2,642,850 $ 2,954,613 Long-term debt to long-term debt plus equity ratio 0.47 0.48 As at December 31, 2020, liquidity remained sufficient as Precision had $109 million (2019 – $75 million) in cash and access to the US$500 million Senior Credit Facility (2019 – US$500 million) and $97 million (2019 – $98 million) secured operating facilities. As at December 31, 2020, US$75 million (2019 – nil) was drawn on the Senior Credit Facility with available credit further reduced by US$32 million (2019 – US$25 million) in outstanding letters of credit. Availability of the $40 million secured operating facility and US$30 million secured facility for the issuance of letters of credit and performance and bid bonds were reduced by outstanding letters of credit of $7 million (2019 – $26 million) and US$2 million (2019 – US$2 million), respectively. There were no amounts drawn on the US$15 million (2019 – nil) secured operating facility. |
Supplemental Information
Supplemental Information | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Supplemental Information [Abstract] | |
Supplemental Information | NOTE 25. SUPPLEMENTAL INFORMATION Components of changes in non-cash working capital balances are as follows: 2020 2019 Accounts receivable $ 103,857 $ 51,152 Inventory 5,181 1,157 Accounts payable and accrued liabilities (53,666 ) (61,376 ) $ 55,372 $ (9,067 ) Pertaining to: Operations $ 55,391 $ (4,493 ) Investments (19 ) (4,574 ) The components of accounts receivable are as follows: 2020 2019 Trade $ 113,933 $ 211,797 Accrued trade 16,769 32,167 Prepaids and other 76,507 66,240 $ 207,209 $ 310,204 The components of accounts payable and accrued liabilities are as follows: 2020 2019 Accounts payable $ 56,922 $ 91,468 Accrued liabilities: Payroll 44,533 54,334 Other 49,502 53,676 $ 150,957 $ 199,478 Precision presents expenses in the consolidated statements of earnings by function with the exception of depreciation and amortization, gain on asset disposals, loss on asset decommissioning and reversal of impairment of property, plant and equipment, which are presented by nature. Operating expense and general and administrative expense would include $293 million (2019 – $282 million) and $11 million (2019 – $15 million), respectively, of depreciation and amortization, gain on asset disposals, loss on asset decommissioning and reversal of impairment of property, plant and equipment if the statements of earnings (loss) were presented purely by function. The following table presents operating and general and administrative expenses by nature: 2020 2019 Wages, salaries and benefits $ 438,209 $ 697,935 Wage subsidies (26,297 ) — Purchased materials, supplies and services 240,591 429,365 Share based compensation 19,847 22,115 $ 672,350 $ 1,149,415 Allocated to: Operating expense $ 583,420 $ 1,038,967 General and administrative 70,869 104,010 Restructuring 18,061 6,438 $ 672,350 $ 1,149,415 |
Contingencies and Guarantees
Contingencies and Guarantees | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Contingent Liabilities [Abstract] | |
Contingencies and Guarantees | NOTE 26. CONTINGENCIES AND GUARANTEES The business and operations of the Corporation are complex and the Corporation has executed a number of significant financings, business combinations, acquisitions and dispositions over the course of its history. The computation of income taxes payable as a result of these transactions involves many complex factors as well as the Corporation’s interpretation of relevant tax legislation and regulations. The Corporation’s management believes that the provision for income tax is adequate and in accordance with IFRS and applicable legislation and regulations. However, there are tax filing positions that have been and can still be the subject of review by taxation authorities who may successfully challenge the Corporation’s interpretation of the applicable tax legislation and regulations, with the result that additional taxes could be payable by the Corporation. The Corporation, through the performance of its services, product sales and business arrangements, is sometimes named as a defendant in litigation. The outcome of such claims against the Corporation is not determinable at this time; however, their ultimate resolution is not expected to have a material adverse effect on the Corporation. The Corporation has entered into agreements indemnifying certain parties primarily with respect to tax and specific third-party claims associated with businesses sold by the Corporation. Due to the nature of the indemnifications, the maximum exposure under these agreements cannot be estimated. No amounts have been recorded for the indemnities as the Corporation’s obligations under them are not probable or determinable. |
Long-Term Debt Guarantor Disclo
Long-Term Debt Guarantor Disclosure | 12 Months Ended |
Dec. 31, 2020 | |
Long Term Debt Guarantor Disclosure [Abstract] | |
Long-Term Debt Guarantor Disclosure | NOTE 27. LONG-TERM DEBT GUARANTOR DISCLOSURE Condensed Consolidated Statement of Financial Position as at December 31, 2020 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Total Assets Cash $ 76,547 $ 15,392 $ 16,833 $ — $ 108,772 Other current assets 5,399 129,924 98,165 3 233,491 Intercompany receivables 48,595 2,358,699 115,204 (2,522,498 ) — Investments in subsidiaries 4,409,992 30 — (4,410,022 ) — Property, plant and equipment 44,114 2,041,094 387,223 252 2,472,683 Intangibles 26,907 759 — — 27,666 Right-of-use assets 20,115 31,323 3,730 — 55,168 Other long-term assets — — 1,140 (42 ) 1,098 Total assets $ 4,631,669 $ 4,577,221 $ 622,295 $ (6,932,307 ) $ 2,898,878 Liabilities and shareholders’ equity Current liabilities $ 37,251 $ 86,221 $ 43,368 $ — $ 166,840 Intercompany payables and debt 2,420,264 53,375 48,859 (2,522,498 ) — Long-term debt 1,224,048 12,162 — — 1,236,210 Lease obligations 19,326 27,072 2,484 — 48,882 Other long-term liabilities 7,505 32,400 443 (42 ) 40,306 Total liabilities 3,708,394 211,230 95,154 (2,522,540 ) 1,492,238 Shareholders’ equity 923,275 4,365,991 527,141 (4,409,767 ) 1,406,640 Total liabilities and shareholders’ equity $ 4,631,669 $ 4,577,221 $ 622,295 $ (6,932,307 ) $ 2,898,878 Condensed Consolidated Statement of Financial Position as at December 31, 2019 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Total Assets Cash $ 20,952 $ 20,651 $ 33,098 $ — $ 74,701 Other current assets 3,952 242,968 96,140 4 343,064 Intercompany receivables 82,101 2,205,834 67,377 (2,355,312 ) — Investments in subsidiaries 4,535,625 30 — (4,535,655 ) — Property, plant and equipment 48,416 2,263,355 437,413 279 2,749,463 Intangibles 30,434 1,312 — — 31,746 Right of use assets 23,070 39,267 3,805 — 66,142 Other long-term assets — — 6,595 (1,871 ) 4,724 Total assets $ 4,744,550 $ 4,773,417 $ 644,428 $ (6,892,555 ) $ 3,269,840 Liabilities and shareholders’ equity Current liabilities $ 33,862 $ 130,232 $ 51,975 $ — $ 216,069 Intercompany payables and debt 2,217,790 84,901 52,621 (2,355,312 ) — Long-term debt 1,427,181 — — — 1,427,181 Lease obligations 20,877 31,614 2,489 — 54,980 Other long-term liabilities 26,927 18,454 668 (1,871 ) 44,178 Total liabilities 3,726,637 265,201 107,753 (2,357,183 ) 1,742,408 Shareholders’ equity 1,017,913 4,508,216 536,675 (4,535,372 ) 1,527,432 Total liabilities and shareholders’ equity $ 4,744,550 $ 4,773,417 $ 644,428 $ (6,892,555 ) $ 3,269,840 Condensed Consolidated Statement of Net Earnings (Loss) for the year ended December 31, 2020 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Total Revenue $ 57 $ 752,737 $ 186,088 $ (3,129 ) $ 935,753 Operating expense 50 465,624 120,875 (3,129 ) 583,420 General and administrative expense 38,489 26,767 5,613 — 70,869 Restructuring 6,978 11,083 — — 18,061 Earnings (loss) before income taxes, equity in earnings of subsidiaries, gain on redemption and repurchase of unsecured senior notes, finance charges, foreign exchange, gain on asset disposals and depreciation and amortization (45,460 ) 249,263 59,600 — 263,403 Depreciation and amortization 9,981 255,299 50,815 227 316,322 Gain on asset disposals (141 ) (11,655 ) (135 ) — (11,931 ) Foreign exchange (6,957 ) 36,313 (24,814 ) — 4,542 Finance charges 109,578 (2,113 ) 3 — 107,468 Gain on redemption and repurchase of unsecured senior notes (43,814 ) — — — (43,814 ) Equity in earnings of subsidiaries 22,462 — — (22,462 ) — Earnings (loss) before income taxes (136,569 ) (28,581 ) 33,731 22,235 (109,184 ) Income taxes (16,658 ) 18,056 9,556 — 10,954 Net earnings (loss) $ (119,911 ) $ (46,637 ) $ 24,175 $ 22,235 $ (120,138 ) Condensed Consolidated Statement of Net Earnings (Loss) for the year ended December 31, 2019 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Total Revenue $ 92 $ 1,341,624 $ 210,292 $ (10,688 ) $ 1,541,320 Operating expense 56 909,898 139,701 (10,688 ) 1,038,967 General and administrative expense 38,418 57,119 8,473 — 104,010 Restructuring 2,822 3,616 — — 6,438 Earnings (loss) before income taxes, equity in earnings of subsidiaries, gain on redemption and repurchase of unsecured senior notes, finance charges, foreign exchange, reversal of impairment of property, plant and equipment, loss on asset decommissioning, gain on asset disposals and depreciation and amortization (41,204 ) 370,991 62,118 — 391,905 Depreciation and amortization 13,272 262,914 57,205 225 333,616 Gain on asset disposals (47 ) (50,439 ) (255 ) — (50,741 ) Loss on asset decommissioning — 20,263 — — 20,263 Reversal of impairment of property, plant and equipment — (5,810 ) — — (5,810 ) Foreign exchange (8,499 ) (758 ) 535 — (8,722 ) Finance charges 118,775 (354 ) 32 — 118,453 Gain on redemption and repurchase of unsecured senior notes (6,815 ) — — — (6,815 ) Equity in earnings of subsidiaries (102,114 ) — — 102,114 — Earnings (loss) before income taxes (55,776 ) 145,175 4,601 (102,339 ) (8,339 ) Income taxes (62,619 ) 44,809 2,853 — (14,957 ) Net earnings (loss) $ 6,843 $ 100,366 $ 1,748 $ (102,339 ) $ 6,618 Condensed Consolidated Statement of Comprehensive Income (Loss) for the year ended December 31, 2020 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Total Net earnings (loss) $ (119,911 ) $ (46,637 ) $ 24,175 $ 22,235 $ (120,138 ) Other comprehensive income (loss) 29,251 9,732 (35,857 ) 200 3,326 Comprehensive income (loss) $ (90,660 ) $ (36,905 ) $ (11,682 ) $ 22,435 $ (116,812 ) Condensed Consolidated Statement of Comprehensive Income (Loss) for the year ended December 31, 2019 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Total Net earnings (loss) $ 6,843 $ 100,366 $ 1,748 $ (102,339 ) $ 6,618 Other comprehensive income (loss) 79,022 (79,018 ) (27,655 ) (108 ) (27,759 ) Comprehensive income (loss) $ 85,865 $ 21,348 $ (25,907 ) $ (102,447 ) $ (21,141 ) Condensed Consolidated Statement of Cash Flow for the year ended December 31, 2020 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Total Cash provided by (used in): Operations $ (79,919 ) $ 263,514 $ 42,523 $ — $ 226,118 Investments 292,596 (32,668 ) (7,252 ) (293,193 ) (40,517 ) Financing (152,738 ) (234,953 ) (51,126 ) 293,193 (145,624 ) Effects of exchange rate changes on cash (4,344 ) (1,152 ) (410 ) — (5,906 ) Increase (decrease) in cash 55,595 (5,259 ) (16,265 ) — 34,071 Cash, beginning of year 20,952 20,651 33,098 — 74,701 Cash, end of year $ 76,547 $ 15,392 $ 16,833 $ — $ 108,772 Condensed Consolidated Statement of Cash Flow for the year ended December 31, 2019 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Total Cash provided by (used in): Operations $ (189,376 ) $ 480,215 $ (2,680 ) $ — $ 288,159 Investments 408,753 (56,937 ) (15,337 ) (410,979 ) (74,500 ) Financing (226,379 ) (438,350 ) 21,936 410,979 (231,814 ) Effects of exchange rate changes on cash (672 ) (1,415 ) (1,683 ) — (3,770 ) Increase (decrease) in cash (7,674 ) (16,487 ) 2,236 — (21,925 ) Cash, beginning of year 28,626 37,138 30,862 — 96,626 Cash, end of year $ 20,952 $ 20,651 $ 33,098 $ — $ 74,701 |
Subsidiaries
Subsidiaries | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Significant Investments In Subsidiaries [Abstract] | |
Subsidiaries | NOTE 28. SUBSIDIARIES Significant Subsidiaries Ownership Interest Country of Incorporation 2020 2019 Precision Limited Partnership Canada 100 100 Precision Drilling Canada Limited Partnership Canada 100 100 Precision Diversified Oilfield Services Corp. Canada 100 100 Precision Directional Services Ltd. Canada 100 100 Precision Drilling (US) Corporation United States 100 100 Precision Drilling Holdings Company United States 100 100 Precision Drilling Company LP United States 100 100 Precision Completion & Production Services Ltd. United States 100 100 Grey Wolf Drilling Limited Barbados 100 100 Grey Wolf Drilling (Barbados) Ltd. Barbados 100 100 |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Significant Accounting Policies [Abstract] | |
Basis of Consolidation | (a) Basis of Consolidation These consolidated financial statements include the accounts of the Corporation and all of its subsidiaries and partnerships, substantially all of which are wholly-owned. The financial statements of the subsidiaries are prepared for the same period as the parent entity, using consistent accounting policies. All significant intercompany balances and transactions and any unrealized gains and losses arising from intercompany transactions, have been eliminated. Subsidiaries are entities controlled by the Corporation. Control exists when Precision has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. In assessing control, potential voting rights that currently are exercisable are considered. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases. Precision does not hold investments in any companies where it exerts significant influence and does not hold interests in any special-purpose entities. The acquisition method is used to account for acquisitions of subsidiaries and assets that meet the definition of a business under IFRS. The cost of an acquisition is measured as the fair value of the assets given, equity instruments issued, and liabilities incurred or assumed at the date of exchange. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. The excess of the cost of acquisition over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recorded as goodwill. If the cost of acquisition is less than the fair value of the net assets of the subsidiary acquired, the difference is recognized immediately in the statement of earnings. Transaction costs, other than those associated with the issuance of debt or equity securities, that the Corporation incurs in connection with a business combination are expensed as incurred. |
Cash | (b) Cash Cash consists of cash and short-term investments with original maturities of three months or less. |
Inventory | (c) Inventory Inventory is primarily comprised of operating supplies and carried at the lower of average cost, being the cost to acquire the inventory, and net realizable value. Inventory is charged to operating expenses as items are sold or consumed at the amount of the average cost of the item. |
Property, Plant and Equipment | (d) Property, Plant and Equipment Property, plant and equipment are carried at cost, less accumulated depreciation and any accumulated impairment losses. Cost includes an expenditure that is directly attributable to the acquisition of the asset. The cost of self-constructed assets includes the cost of materials and direct labour, any other costs directly attributable to bringing the assets to a working condition for their intended use, and borrowing costs on qualifying assets. The cost of replacing a part of an item of property, plant and equipment is recognized in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to the Corporation, and its cost can be measured reliably. The carrying amount of the replaced part is derecognized. The costs of the day-to-day servicing of property, plant and equipment (repair and maintenance) are recognized in profit or loss as incurred. Property, plant, and equipment are depreciated as follows: Expected Life Salvage Value Basis of Depreciation Drilling rig equipment: – Power & Tubulars 5 years – straight-line – Dynamic 10 years – straight-line – Structural 20 years 10% straight-line Service rig equipment 20 years 10% straight-line Drilling rig spare equipment up to 15 years – straight-line Service rig spare equipment up to 15 years – straight-line Rental equipment up to 15 years 0 to 25% straight-line Other equipment 3 to 10 years – straight-line Light duty vehicles 4 years – straight-line Heavy duty vehicles 7 to 10 years – straight-line Buildings 10 to 20 years – straight-line Property, plant and equipment are depreciated based on estimates of useful lives and salvage values. These estimates consider data and information from various sources including vendors, industry practice, and Precision’s own historical experience and may change as more experience is gained, market conditions shift, or technological advancements are made. Gains and losses on disposal of an item of property, plant and equipment are determined by comparing the proceeds from disposal to the carrying amount of property, plant and equipment, and are recognized in the consolidated statements of earnings (loss). Determination of which parts of the drilling rig equipment represent significant cost relative to the entire rig and identifying the consumption patterns along with the useful lives of these significant parts, are matters of judgment. This determination can be complex and subject to differing interpretations and views, particularly when rig equipment comprises individual components for which different depreciation methods or rates are appropriate. The estimated useful lives, residual values and method and components of depreciation are reviewed annually, and adjusted prospectively if appropriate. |
Intangibles | (e) Intangibles Intangible assets that are acquired by the Corporation with finite lives are initially recorded at estimated fair value and subsequently measured at cost less accumulated amortization and any accumulated impairment losses. Subsequent expenditures are capitalized only when they increase the future economic benefits of the specific asset to which they relate. Intangible assets are amortized based on estimates of useful lives. These estimates consider data and information from various sources including vendors and Precision’s own historical experience and may change as more experience is gained or technological advancements are made. Amortization is recognized in profit and loss using the straight-line method over the estimated useful lives of the respective assets. Precision’s loan commitment fees are amortized over the term of the respective facility. Software is amortized over its expected useful life of up to 10 years. The estimated useful lives and methods of amortization are reviewed annually and adjusted prospectively if appropriate. |
Goodwill | (f) Goodwill Goodwill is the amount that results when the purchase price of an acquired business exceeds the sum of the amounts allocated to the assets acquired, less liabilities assumed, based on their fair values. After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date, attributed to the cash-generating unit ( CGU |
Impairment of Non-Financial Assets | (g) Impairment of Non-Financial Assets The carrying amounts of the Corporation’s non-financial assets, other than inventories and deferred tax assets, are reviewed at each reporting date to determine whether there is any indication of impairment. For the purpose of impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets (the cash-generating unit). Judgment is required in the aggregation of assets into CGUs. If any such indication exists, then the asset or CGU’s recoverable amount is estimated. Judgement is required when evaluating whether a CGU has indications of impairment. For CGUs that contain goodwill and other intangible assets that have indefinite lives or that are not yet available for use, an impairment test is, at a minimum, completed annually as of December 31. The recoverable amount of an asset or a CGU is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using an after-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. Value in use is generally computed by reference to the present value of the future cash flows expected to be derived from the CGU. An impairment loss is recognized if the carrying amount of an asset or a CGU exceeds its estimated recoverable amount. Impairment losses are recognized in profit or loss. Impairment losses recognized in respect of CGUs are allocated first to reduce the carrying amount of any goodwill allocated to the CGU and then to reduce the carrying amounts of the other assets in the CGU on a pro rata basis. An impairment loss in respect of goodwill is not reversed. In respect of other assets, impairment losses recognized in prior years are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized. |
Borrowing Costs | (h) Borrowing Costs Interest and borrowing costs that are directly attributable to the acquisition, construction or production of assets that take a substantial period of time to prepare for their intended use are capitalized as part of the cost of those assets. Capitalization ceases during any extended period of suspension of construction or when substantially all activities necessary to prepare the asset for its intended use are complete. All other interest and borrowing costs are recognized in earnings in the period in which they are incurred. |
Income Taxes | (i) Income Taxes Income tax expense is recognized in profit or loss except to the extent that it relates to items recognized directly in equity, in which case it is recognized in equity. Current tax is the expected tax payable or receivable on the taxable earnings or loss for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years. Deferred tax is recognized using the asset and liability method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognized on the initial recognition of assets or liabilities in a transaction that is not a business combination. In addition, deferred tax is not recognized for taxable temporary differences arising on the initial recognition of goodwill. Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, based on the laws that have been enacted or substantively enacted at the reporting date. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in profit or loss in the period that includes the date of enactment or substantive enactment. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset and they relate to taxes levied by the same tax authority on the same taxable entity, or on different tax entities that are expected to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realized simultaneously. A deferred tax asset is recognized to the extent that it is probable that future taxable profits will be available against which the temporary difference can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized. The Corporation is subject to taxation in numerous jurisdictions. Uncertainties exist with respect to the interpretation of complex tax regulations and requires significant judgement. Differences arising between the actual results and the assumptions made, or future changes to such assumptions, could necessitate future adjustments to taxable income and expense already recorded. The Corporation establishes provisions, based on reasonable estimates, for possible consequences of audits by the tax authorities of the respective countries in which it operates. The amount of such provisions are based on various factors, such as experience of previous tax audits and differing interpretations of tax regulations by the taxable entity and the responsible tax authority. |
Revenue from Contracts with Customers | (j) Revenue from Contracts with Customers Precision recognizes revenue from a variety of sources. In general, customer invoices are issued upon rendering all performance obligations for an individual well-site job. Under the Corporation’s standard contract terms, customer payments are to be received within 30 days of the customer’s receipt of an invoice. Contract Drilling Services The Corporation contracts individual drilling rig packages, including crews and support equipment, to its customers. Depending on the customer’s drilling program, contracts may be for a single well, multiple wells or a fixed term. Revenue from contract drilling services is recognized over time from spud to rig release on a daily basis. Operating days are measured through industry standard tour sheets that document the daily activity of the rig. Revenue is recognized at the applicable day rate for each well, based on rates specified in the drilling contract. The Corporation provides services under turnkey contracts, whereby Precision is required to drill a well to an agreed upon depth under specified conditions for a fixed price, regardless of the time required or problems encountered in drilling the well. Revenue from turnkey drilling contracts is recognized over time using the input method based on costs incurred to date in relation to estimated total contract costs, as that most accurately depicts the Corporation’s performance. The Corporation also provides directional drilling services, which include the provision of directional drilling equipment, tools and personnel to the wellsite, and performance of daily directional drilling services. Directional drilling revenue is recognized over time, upon the daily completion of operating activities. Operating days are measured through daily tour sheets. Revenue is recognized at the applicable day rate, as stipulated in the directional drilling contract. Completion and Production Services The Corporation provides a variety of well completion and production services including well servicing. In general, service rigs do not involve long-term contracts or penalties for termination. Revenue is recognized daily upon completion of services. Operating days are measured through daily tour sheets and field tickets. Revenue is recognized at the applicable daily or hourly rate, as stipulated in the contract. The Corporation offers its customers a variety of oilfield equipment for rental. Rental revenue is recognized daily at the applicable rate stated in the rental contract. Rental days are measured through field tickets. The Corporation provides accommodation and catering services to customers in remote locations. Customers contract these services either as a package or individually for a fixed term. For accommodation services, the Corporation supplies camp equipment and revenue is recognized over time on a daily basis, once the equipment is on-site and available for use, at the applicable rate stated in the contract. For catering services, the Corporation recognizes revenue daily according to meals served. Accommodation and catering services provided are measured through field tickets. |
Employee Benefit Plans | (k) Employee Benefit Plans Precision sponsors various defined contribution retirement plans for its employees. The Corporation’s contributions to defined contribution plans are expensed as employees earn the entitlement. |
Provisions | (l) Provisions Provisions are recognized when the Corporation has a present obligation as a result of a past event, when it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and when a reliable estimate can be made of the amount of the obligation. The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows. |
Share Based Incentive Compensation Plans | (m) Share Based Incentive Compensation Plans The Corporation has established several cash-settled share based incentive compensation plans for non-management directors, officers, and other eligible employees. The estimated fair value of amounts payable to eligible participants under these plans are recognized as an expense with a corresponding increase in liabilities over the period that the participants become unconditionally entitled to payment. The recorded liability is re-measured at the end of each reporting period until settlement with the resultant change to the fair value of the liability recognized in profit or loss for the period. When the plans are settled, the cash paid reduces the outstanding liability. The Corporation has an employee share purchase plan that allows eligible employees to purchase common shares through payroll deductions. Under this plan, contributions made by employees are matched to a specific percentage by the Corporation. The contributions made by the Corporation are expensed as incurred. Prior to January 1, 2012, the Corporation had an equity-settled deferred share unit plan whereby non-management directors of Precision could elect to receive all or a portion of their compensation in fully-vested deferred share units. Compensation expense was recognized based on the fair value price of the Corporation’s shares at the date of grant with a corresponding increase to contributed surplus. Upon redemption of the deferred share units into common shares, the amount previously recognized in contributed surplus is recorded as an increase to shareholders’ capital. The Corporation continues to have obligations under this plan. The Corporation has a share option plan for certain eligible employees. Under this plan, the fair value of share purchase options is calculated at the date of grant using the Black-Scholes option pricing model, and that value is recorded as compensation expense over the grant’s vesting period with an offsetting credit to contributed surplus. A forfeiture rate is estimated on the grant date and is adjusted to reflect the actual number of options that vest. Upon exercise of the equity purchase option, the associated amount is reclassified from contributed surplus to shareholders’ capital. Consideration paid by employees upon exercise of the equity purchase options is credited to shareholders’ capital. |
Foreign Currency Translation | (n) Foreign Currency Translation Transactions of the Corporation’s individual entities are recorded in the currency of the primary economic environment in which it operates (its functional currency). Transactions in currencies other than the entities’ functional currency are translated at rates in effect at the time of the transaction. At each period end, monetary assets and liabilities are translated at the prevailing period-end rates. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated. Gains and losses are included in profit or loss except for gains and losses on translation of long-term debt designated as a hedge of foreign operations, which are deferred and included in other comprehensive income. For the purpose of preparing the Corporation’s consolidated financial statements, the financial statements of each foreign operation that does not have a Canadian dollar functional currency are translated into Canadian dollars. Assets and liabilities are translated at exchange rates in effect at the period end date. Revenues and expenses are translated using average exchange rates for the month of the respective transaction. Gains or losses resulting from these translation adjustments are recognized initially in other comprehensive income and reclassified from equity to profit or loss on disposal or partial disposal of the foreign operation. |
Per Share Amounts | (o) Per Share Amounts Basic per share amounts are calculated using the weighted average number of shares outstanding during the period. Diluted per share amounts are calculated by using the treasury stock method for equity-based compensation arrangements. The treasury stock method assumes that any proceeds obtained on exercise of equity-based compensation arrangements would be used to purchase common shares at the average market price during the period. The weighted average number of shares outstanding is then adjusted by the difference between the number of shares issued from the exercise of equity-based compensation arrangements and shares repurchased from the related proceeds. |
Financial Instruments | (p) Financial Instruments i) Non-Derivative Financial Instruments: Financial assets and liabilities are classified and measured at amortized cost, fair value through other comprehensive income or fair value through profit and loss. The classification of financial assets and liabilities is generally based on the business model in which the asset or liability is managed and its contractual cash flow characteristics. Financial assets held within a business model whose objective is to collect contractual cash flows and whose contractual terms give rise to cash flows on specified dates that are solely payments of principal and interest on the principal amount outstanding are measured at amortized cost. After their initial fair value measurement, accounts receivable, accounts payable and accrued liabilities and long-term debt are classified and measured at amortized cost using the effective interest rate method. Upon initial recognition of a non-derivative financial asset a loss allowance is recorded for expected credit losses ( ECL ii) Derivative Financial Instruments: The Corporation may enter into certain financial derivative contracts in order to manage the exposure to market risks from fluctuations in interest rates or exchange rates. These instruments are not used for trading or speculative purposes. Precision has not designated its financial derivative contracts as effective accounting hedges, and thus has not applied hedge accounting, even though it considers certain financial contracts to be economic hedges. As a result, financial derivative contracts are classified as fair value through profit or loss and are recorded on the statement of financial position at estimated fair value. Transaction costs are recognized in profit or loss when incurred. Derivatives embedded in financial assets are never separated. Rather, the financial instrument as a whole is assessed for classification. Derivatives embedded in financial liabilities are separated from the host contract and accounted for separately when their economic characteristics and risks are not closely related to the host contract. Embedded derivatives in financial liabilities are recorded on the statement of financial position at estimated fair value and changes in the fair value are recognized in earnings. |
Hedge Accounting | (q) Hedge Accounting The Corporation utilizes foreign currency long-term debt to hedge its exposure to changes in the carrying values of the Corporation’s net investment in certain foreign operations from fluctuations in foreign exchange rates. To be accounted for as a hedge, the foreign currency long-term debt must be designated and documented as a hedge and must be effective at inception and on an ongoing basis. The documentation defines the relationship between the foreign currency long-term debt and the net investment in the foreign operations, as well as the Corporation’s risk management objective and strategy for undertaking the hedging transaction. The Corporation formally assesses, both at inception and on an ongoing basis, whether the changes in fair value of the foreign currency long-term debt is highly effective in offsetting changes in fair value of the net investment in the foreign operations. The portion of gains or losses on the hedging item determined to be an effective hedge is recognized in other comprehensive income, net of tax, and is limited to the translation gain or loss on the net investment, while ineffective portions are recorded through profit or loss. A reduction in the fair value of the net investment in the foreign operations or increase in the foreign currency long-term debt balance may result in a portion of the hedge becoming ineffective. If the hedging relationship ceases to be effective or is terminated, hedge accounting is not applied to subsequent gains or losses. The amounts recognized in other comprehensive income are reclassified to profit and loss and the corresponding exchange gains or losses arising from the translation of the foreign operation are recorded through profit and loss upon dissolution or substantial dissolution of the foreign operation. |
Assets Held For Sale | (r) Assets Held For Sale Non-current assets, or disposal groups, are classified as held-for sale if it is highly probable that their carrying amount will be recovered primarily through a sale transaction rather than through continued use. Such assets, or disposal groups, are measured at the lower of their carrying amount and fair value less costs to sell. Impairment losses on initial classification as held-for-sale and subsequent gains or losses on remeasurement are recognized in profit or loss. |
Leases | (s) Leases At inception, Precision assesses whether its contracts contain a lease. A contract contains a lease if it conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The assessment of whether a contract conveys the right to control the use of an identified asset considers whether: • the contract involves the use of an identified asset and the substantive substitution rights of the supplier. If the supplier has a substantive substitution right, then the asset is not identified; • the lessee’s right to obtain substantially all of the economic benefits from the use of the asset; and • the lessee’s right to direct the use of the asset, including decision-making to change how and for what purpose the asset is used. At inception or on reassessment of a contract that contains a lease component, Precision allocates the consideration in the contract to each lease component on the basis of their relative stand-alone prices. Leases in which Precision is a lessee Precision recognizes a right-of-use asset and corresponding lease obligation at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease obligation adjusted for lease payments made on or before commencement date, incurred initial direct costs, estimated site retirement costs and any lease incentives received. The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are consistent with those of property, plant and equipment. In addition, the right-of-use asset is reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease obligation. The lease obligation is initially measured at the present value of the minimum lease payments not paid at commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, Precision’s incremental borrowing rate. Generally, Precision uses its incremental borrowing rate as the discount rate for those leases in which it is the lessee. Lease payments included in the measurement of the lease obligation comprise the following: • fixed payments, including in-substance fixed payments; • variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date; • amounts expected to be payable under a residual value guarantee; and • the exercise price under a purchase option that Precision is reasonably certain to exercise, lease payments in an optional renewal period if Precision is reasonably certain to exercise an extension option, and penalties for early termination of a lease unless Precision is reasonably certain not to terminate early. The lease obligation is measured at amortized cost using the effective interest method. The measurement of lease obligations require the use of certain estimates and assumptions including discount rates, exercise of lease term extension options, and escalating lease rates. It is remeasured when there is a change in: • future lease payments arising from a change in an index or rate; • the estimated amount expected to be payable under a residual value guarantee; or • the assessment of whether Precision will exercise a purchase, extension or termination option. When the lease obligation is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero. Leases in which Precision is a lessor When Precision acts as a lessor, at inception, Precision evaluates the classification as either a finance or operating lease. To classify each lease, Precision makes an overall assessment of whether the lease transfers substantially all of the risks and rewards incidental to ownership of the underlying asset. If this is the case, then the lease is a finance lease; if not, then it is an operating lease. When acting as a sub-lessor, Precision accounts for its interests in the head lease and the sub-lease separately. It assesses the lease classification of a sub-lease with reference to the right-of-use asset arising from the head lease, not with reference to the underlying asset. If a head lease is a short-term lease then Precision classifies the sub-lease as an operating lease. If an arrangement contains lease and non-lease components, Precision applies IFRS 15 to allocate the consideration in the contract. Precision recognizes lease payments received under operating leases for drilling rigs as income on a systematic basis, drilling days, over the lease term as part of revenue. The accounting policies applicable to Precision as a lessor in the comparative period were not different from IFRS 16. However, when Precision was an intermediate lessor the sub-leases were classified with reference to the underlying asset. |
Government Assistance and Grants | (t) Government Assistance and Grants Precision may receive government grants in the form of transfers of resources in return for past or future compliance with certain conditions relating to operating activities. Government grants are recognized once there is reasonable assurance that Precision will comply with the attached conditions and grants will be received. Government grants are recognized in profit or loss on a systematic basis over the periods in which Precision recognizes expenses related to costs for which the grants are intended to compensate. |
Critical Accounting Assumptions and Estimates | (u) Critical Accounting Assumptions and Estimates i) Impairment of Long-Lived Assets At each reporting date, the Corporation reviews the carrying amount of assets in each CGU to determine whether an indicator of impairment exists. The Corporation’s analysis is based on relevant internal and external factors that indicate a CGU may be impaired such as the obsolescence or planned disposal of significant assets, financial performance of the CGU compared to forecasts and consideration of the Corporation’s market capitalization. When indications of impairment exist within a CGU, a recoverable amount is determined and requires assumptions to estimate future discounted cash flows. These estimates and assumptions include future drilling activity and margins and the resulting estimated earnings before interest, taxes, depreciation and amortization associated with the CGU and the discount rate used to present value the estimated cash flows. In selecting a discount rate, the Corporation uses observable market data inputs to develop a rate that the Corporation believes approximates the discount rate of market participants. Although the Corporation believes the assumptions and estimates are reasonable and consistent with current conditions, internal planning, and expected future operations, such assumptions and estimations are subject to significant uncertainty and judgment. ii) Income Taxes Significant estimation and assumptions are required in determining the provision for income taxes. The recognition of deferred tax assets in respect of deductible temporary differences and unused tax losses and credits is based on the Corporation’s estimation of future taxable profit against which these differences, losses and credits may be used. The assessment is based upon existing tax laws and estimates of the Corporation’s future taxable income. These estimates may be materially different from the actual final tax return in future periods. |
Accounting Standards, Interpretations and Amendments to Existing Standards not yet Effective | (v) Accounting Standards, Interpretations and Amendments to Existing Standards not yet Effective The IASB has issued a number of new standards, interpretations and amendments to existing standards that will become effective for periods subsequent to December 31, 2020. Accordingly, these new standards, interpretations and amendments were not applied when preparing these consolidated financial statements. For each standard, Precision has performed or is in the process of performing a preliminary assessment of the impact these new standards, interpretations and amendments will have on its consolidated financial statements. Standards and Amendments Effective for periods beginning on or after Impact to Precision Drilling Corporation Interest Rate Benchmark Reform—Phase 2 (Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16) January 1, 2021 Not material Annual improvements to IFRS Standards 2018–2020 January 1, 2022 Not material IFRS 17 Insurance Contracts January 1, 2023 Not material Classification of liabilities as current or non-current (Amendments to IAS 1) January 1, 2023 Review in-progress |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Significant Accounting Policies [Abstract] | |
Schedule of Property, Plant and Equipment Depreciation | Property, plant, and equipment are depreciated as follows: Expected Life Salvage Value Basis of Depreciation Drilling rig equipment: – Power & Tubulars 5 years – straight-line – Dynamic 10 years – straight-line – Structural 20 years 10% straight-line Service rig equipment 20 years 10% straight-line Drilling rig spare equipment up to 15 years – straight-line Service rig spare equipment up to 15 years – straight-line Rental equipment up to 15 years 0 to 25% straight-line Other equipment 3 to 10 years – straight-line Light duty vehicles 4 years – straight-line Heavy duty vehicles 7 to 10 years – straight-line Buildings 10 to 20 years – straight-line |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Revenue Explanatory [Abstract] | |
Summary of Reconciliation of Disaggregated Revenue by Reportable Segment | The following table includes a reconciliation of disaggregated revenue by reportable segment (Note 6). Revenue has been disaggregated by primary geographical market and type of service provided. Twelve months ended December 31, 2020 Contract Drilling Services Completion and Production Services Corporate and Other Inter- Segment Eliminations Total Canada $ 247,678 $ 60,621 $ — $ (2,686 ) $ 305,613 United States 427,436 16,630 — (14 ) 444,052 International 186,088 — — — 186,088 $ 861,202 $ 77,251 $ — $ (2,700 ) $ 935,753 Day rate/hourly services $ 779,772 $ 77,251 $ — $ (393 ) $ 856,630 Shortfall payments/idle but contracted 51,028 — — — 51,028 Turnkey drilling services 14,134 — — — 14,134 Directional services 9,637 — — — 9,637 Other 6,631 — — (2,307 ) 4,324 $ 861,202 $ 77,251 $ — $ (2,700 ) $ 935,753 Twelve months ended December 31, 2019 Contract Drilling Services Completion and Production Services Corporate and Other Inter- Segment Eliminations Total United States 852,293 19,627 — (269 ) 871,651 Canada $ 336,483 $ 128,202 $ — $ (5,308 ) $ 459,377 International 210,292 — — — 210,292 $ 1,399,068 $ 147,829 $ — $ (5,577 ) $ 1,541,320 Day rate/hourly services $ 1,333,114 $ 147,829 $ — $ (905 ) $ 1,480,038 Shortfall payments/idle but contracted 9,789 — — — 9,789 Turnkey drilling services 3,754 — — — 3,754 Directional services 41,876 — — — 41,876 Other 10,535 — — (4,672 ) 5,863 $ 1,399,068 $ 147,829 $ — $ (5,577 ) $ 1,541,320 |
Segmented Information (Tables)
Segmented Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Operating Segments [Abstract] | |
Summary of Operating Segments | The Corporation operates primarily in Canada, the United States and certain international locations, in two industry segments; Contract Drilling Services and Completion and Production Services. Contract Drilling Services includes drilling rigs, directional drilling, procurement and distribution of oilfield supplies, and the manufacture, sale and repair of drilling equipment. Completion and Production Services includes service rigs, oilfield equipment rental, and camp and catering services. 2020 Contract Drilling Services Completion and Production Services Corporate and Other Inter- Segment Eliminations Total Revenue $ 861,202 $ 77,251 $ — $ (2,700 ) $ 935,753 Operating earnings (loss) 22,207 (3,671 ) (59,524 ) — (40,988 ) Depreciation and amortization 288,389 16,375 11,558 — 316,322 Gain on asset disposals (10,171 ) (1,447 ) (313 ) — (11,931 ) Total assets 2,571,397 132,771 194,710 — 2,898,878 Capital expenditures 57,741 3,362 489 — 61,592 2019 Contract Drilling Services Completion and Production Services Corporate and Other Inter- Segment Eliminations Total Revenue $ 1,399,068 $ 147,829 $ — $ (5,577 ) $ 1,541,320 Operating earnings (loss) 160,997 10,041 (76,461 ) — 94,577 Depreciation and amortization 300,882 17,881 14,853 — 333,616 Gain on asset disposals (46,849 ) (3,767 ) (125 ) — (50,741 ) Loss on asset decommissioning 20,263 — — — 20,263 Reversal of impairment of property, plant and equipment (5,810 ) — — — (5,810 ) Total assets 2,963,260 152,611 153,969 — 3,269,840 Capital expenditures 154,066 5,448 1,180 — 160,694 |
Summary of Operating Earnings (Loss) to Loss Before Income Taxes | A reconciliation of operating earnings (loss) to loss before income taxes is as follows: 2020 2019 Operating earnings (loss) $ (40,988 ) $ 94,577 Deduct: Foreign exchange 4,542 (8,722 ) Finance charges 107,468 118,453 Gain on redemption and repurchase of unsecured senior notes (43,814 ) (6,815 ) Loss before income taxes $ (109,184 ) $ (8,339 ) |
Summary of Operating Segments by Geographic Locations | The Corporation’s operations are carried on in the following geographic locations: 2020 United States Canada International Total Revenue $ 444,052 $ 305,613 $ 186,088 $ 935,753 Total assets 1,339,945 1,053,921 505,012 2,898,878 2019 United States Canada International Total Revenue $ 871,651 $ 459,377 $ 210,292 $ 1,541,320 Total assets 1,560,523 1,133,591 575,726 3,269,840 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Property Plant And Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | 2020 2019 Cost $ 6,563,206 $ 6,670,979 Accumulated depreciation (4,090,523 ) (3,921,516 ) $ 2,472,683 $ 2,749,463 Rig equipment 2,269,794 2,510,505 Rental equipment 27,359 34,437 Other equipment 27,318 38,604 Vehicles 4,978 7,796 Buildings 49,451 56,834 Assets under construction 60,572 67,740 Land 33,211 33,547 $ 2,472,683 $ 2,749,463 Cost Rig Equipment Rental Equipment Other Equipment Vehicles Buildings Assets Under Construction Land Total Balance, December 31, 2018 $ 6,322,536 $ 130,463 $ 191,290 $ 45,456 $ 128,327 $ 84,561 $ 34,429 $ 6,937,062 Additions 18,436 — 976 224 415 139,835 — 159,886 Disposals (69,945 ) (19,982 ) (4,708 ) (6,014 ) (58 ) — — (100,707 ) Reclassifications 150,674 — 1,197 — — (151,871 ) — — Asset decommissioning (4,364 ) — — — — — — (4,364 ) Effect of foreign currency exchange differences (307,954 ) (174 ) (3,436 ) (1,160 ) (2,507 ) (4,785 ) (882 ) (320,898 ) Balance, December 31, 2019 6,109,383 110,307 185,319 38,506 126,177 67,740 33,547 6,670,979 Additions 10,375 — 350 — — 50,810 — 61,535 Disposals (78,028 ) (4,664 ) (3,990 ) (2,789 ) (3,053 ) — — (92,524 ) Reclassifications 55,322 — 521 — — (55,843 ) — — Effect of foreign currency exchange differences (71,285 ) (619 ) (1,196 ) (367 ) (846 ) (2,135 ) (336 ) (76,784 ) Balance, December 31, 2020 $ 6,025,767 $ 105,024 $ 181,004 $ 35,350 $ 122,278 $ 60,572 $ 33,211 $ 6,563,206 Accumulated Depreciation Rig Equipment Rental Equipment Other Equipment Vehicles Buildings Assets Under Construction Land Total Balance, December 31, 2018 $ 3,577,364 $ 86,471 $ 139,095 $ 32,754 $ 62,766 $ — $ — $ 3,898,450 Depreciation expense 289,056 7,473 13,023 3,521 7,663 — — 320,736 Disposals (33,929 ) (17,933 ) (3,274 ) (4,768 ) (58 ) — — (59,962 ) Asset decommissioning (3,518 ) — — — — — — (3,518 ) Reversal of impairment of property, plant and equipment (5,810 ) — — — — — — (5,810 ) Effect of foreign currency exchange differences (224,285 ) (141 ) (2,129 ) (797 ) (1,028 ) — — (228,380 ) Balance, December 31, 2019 3,598,878 75,870 146,715 30,710 69,343 — — 3,921,516 Depreciation expense 277,799 7,044 12,013 2,790 5,288 — — 304,934 Disposals (73,354 ) (4,631 ) (3,990 ) (2,782 ) (1,319 ) — — (86,076 ) Effect of foreign currency exchange differences (47,350 ) (618 ) (1,052 ) (346 ) (485 ) — — (49,851 ) Balance, December 31, 2020 $ 3,755,973 $ 77,665 $ 153,686 $ 30,372 $ 72,827 $ — $ — $ 4,090,523 |
Intangibles (Tables)
Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Intangible Assets [Abstract] | |
Schedule of Intangibles | 2020 2019 Cost $ 54,189 $ 53,416 Accumulated amortization (26,523 ) (21,670 ) $ 27,666 $ 31,746 Loan commitment fees related to Senior Credit Facility $ 2,109 $ 2,272 Software 25,557 29,474 $ 27,666 $ 31,746 Cost Loan Commitment Fees Software Total Balance, December 31, 2018 $ 14,776 $ 37,136 $ 51,912 Additions 702 808 1,510 Effect of foreign currency exchange differences — (6 ) (6 ) Balance, December 31, 2019 15,478 37,938 53,416 Additions 690 57 747 Effect of foreign currency exchange differences — 26 26 Balance, December 31, 2020 $ 16,168 $ 38,021 $ 54,189 Accumulated Amortization Loan Commitment Fees Software Total Balance, December 31, 2018 $ 12,469 $ 4,042 $ 16,511 Amortization expense 737 4,422 5,159 Balance, December 31, 2019 13,206 8,464 21,670 Amortization expense 853 3,971 4,824 Effect of foreign currency exchange differences — 29 29 Balance, December 31, 2020 $ 14,059 $ 12,464 $ 26,523 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Long Term Debt [Abstract] | |
Long-Term Debt | LONG-TERM DEBT 2020 2019 2020 2019 Current Portion of Long-Term Debt Real Estate Credit Facility US $ 704 US $ — $ 896 $ — Long-Term Debt Senior Credit Facility US $ 74,650 US $ — $ 95,041 $ — Real Estate Credit Facility 9,797 — 12,474 — Unsecured Senior Notes: 6.5% senior notes due 2021 — 90,625 — 117,678 7.75% senior notes due 2023 285,734 344,845 363,782 447,792 5.25% senior notes due 2024 263,205 307,690 335,099 399,545 7.125% senior notes due 2026 347,765 369,735 442,757 480,112 US $ 981,151 US $ 1,112,895 1,249,153 1,445,127 Less net unamortized debt issue costs (12,943 ) (17,946 ) $ 1,236,210 $ 1,427,181 Senior Credit Facility Unsecured Senior Notes Real Estate Credit Facility Debt Issue Costs Total Balance December 31, 2018 $ — $ 1,729,351 $ — $ (23,098 ) $ 1,706,253 Changes from financing cash flows: Redemption / repurchase of unsecured senior notes — (198,387 ) — — (198,387 ) Non-cash changes: Gain on redemption / repurchase of unsecured senior notes — (6,815 ) — — (6,815 ) Amortization of debt issue costs — — — 5,152 5,152 Foreign exchange adjustment — (79,022 ) — — (79,022 ) Balance December 31, 2019 — 1,445,127 — (17,946 ) 1,427,181 Changes from financing cash flows: Redemption / repurchase of unsecured senior notes — (240,793 ) — — (240,793 ) Repayment of long-term debt (37,243 ) — (76 ) — (37,319 ) Proceeds from Senior Credit Facility 137,255 — — — 137,255 Proceeds from Real Estate Credit Facility — — 13,811 — 13,811 Addition of debt issue costs — — — (354 ) (354 ) Non-cash changes: Gain on redemption / repurchase of unsecured senior notes — (43,814 ) — — (43,814 ) Amortization of debt issue costs — — — 5,350 5,350 Reclassified to current portion of long-term debt — — (896 ) — (896 ) Foreign exchange adjustment (4,971 ) (18,882 ) (365 ) 7 (24,211 ) Balance December 31, 2020 $ 95,041 $ 1,141,638 $ 12,474 $ (12,943 ) $ 1,236,210 |
Current and Long-Term Debt Obligations | Precision’s current and long-term debt obligations at December 31, 2020 will mature as follows: 2021 $ 896 2022 896 2023 459,719 2024 335,995 Thereafter 452,543 $ 1,250,049 |
Disclosure of Listing of Currently Applicable Restrictive and Financial Covenants Explanatory | Following is a listing of the currently applicable restrictive and financial covenants as at December 31, 2020: Covenant At December 31, 2020 Senior Credit Facility Consolidated senior debt to consolidated covenant EBITDA (1) ≤ 2.50 0.23 Consolidated covenant EBITDA to consolidated interest expense ≥ 1.75 2.68 Real Estate Credit Facility Consolidated covenant EBITDA to consolidated interest expense ≥ 1.75 2.68 Unsecured Senior Notes Consolidated interest coverage ratio ≥ 2.00 2.57 (1) For purposes of calculating the leverage ratio consolidated senior debt only includes secured indebtedness. |
Finance Charges (Tables)
Finance Charges (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Finance Costs [Abstract] | |
Summary of Finance Charges | 2020 2019 Interest: Long-term debt $ 98,555 $ 110,730 Lease obligations 3,217 3,389 Other 232 21 Income (739 ) (1,576 ) Amortization of debt issue costs 6,203 5,889 Finance charges $ 107,468 $ 118,453 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Leases [Abstract] | |
Summary of Right-of-Use-Assets | Precision recognizes right-of-use assets primarily from its leases of real estate and vehicles and equipment. Real Estate Vehicles and Equipment Total Balance, January 1, 2019 $ — $ — $ — Transition adjustments 58,635 14,829 73,464 Additions — 1,947 1,947 Derecognition (29 ) — (29 ) Depreciation (4,055 ) (4,403 ) (8,458 ) Lease remeasurements 163 — 163 Effect of foreign currency exchange differences (688 ) (257 ) (945 ) Balance, December 31, 2019 $ 54,026 $ 12,116 $ 66,142 Additions 136 3,031 3,167 Derecognition — (2,597 ) (2,597 ) Depreciation (3,900 ) (3,517 ) (7,417 ) Lease remeasurements (6,233 ) 2,602 (3,631 ) Effect of foreign currency exchange differences (340 ) (156 ) (496 ) Balance, December 31, 2020 $ 43,689 $ 11,479 $ 55,168 |
Expected Non-cancellable Undiscounted Operating Lease Payments | Expected non-cancellable undiscounted operating lease payments are as follows: 2020 2019 Less than one year $ 10,960 $ 11,954 One to five years 29,630 33,566 More than five years 6,590 11,117 $ 47,180 $ 56,637 |
Summary of Maturity Analysis of Lease Payments | The following table sets out a maturity analysis of lease payments, showing the undiscounted lease payments to be received after December 31, 2020. Less than one year $ 182,139 One to five years 102,216 $ 284,355 |
Disclosure of Deferred Base Rent Balance Under Straight-line Amortize Over Lease Term | Precision adopted IFRS 16 on January 1, 2019 using the modified retrospective method of adoption. At the date of initial application, for those leases previously classified as an operating lease under IAS 17, Management elected to recognize and measure the respective right-of-use assets at the amount equal to the lease obligation, adjusted for any prepaid or accrued lease payment immediately before the date of initial application. The opening balance sheet adjustment in relation to these leases was: January 1, 2019 Right-of-use asset $ 73,464 Accounts payable and accrued liabilities 2,800 Lease obligations (73,464 ) Deficit (2,800 ) |
Share Based Compensation Plans
Share Based Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | |
Disclosure of Liability Classified Plans | Liability Classified Plans Restricted Share Units Performance Share Units Executive Performance Share Units Non- Management Directors’ DSUs Total Balance, December 31, 2018 $ 5,409 $ 4,521 $ — $ 2,481 $ 12,411 Expensed during the period 5,755 1,583 — 855 8,193 Payments (3,846 ) (3,246 ) — — (7,092 ) Balance, December 31, 2019 7,318 2,858 — 3,336 13,512 Expensed during the period 3,119 2,787 — (1,551 ) 4,355 Reclassification from equity-settled plans — — 6,833 — 6,833 Payments (3,813 ) (894 ) — (176 ) (4,883 ) Balance, December 31, 2020 $ 6,624 $ 4,751 $ 6,833 $ 1,609 $ 19,817 Current 4,212 1,120 2,978 — 8,310 Long-term 2,412 3,631 3,855 1,609 11,507 $ 6,624 $ 4,751 $ 6,833 $ 1,609 $ 19,817 |
Summary of Shares Outstanding Under Share Based Incentive Plans | A summary of the RSUs and PSUs outstanding under these share based incentive plans is presented below: RSUs Outstanding PSUs Outstanding December 31, 2018 202,796 227,150 Granted 209,368 101,945 Redeemed (75,284 ) (66,138 ) Forfeited (19,976 ) (96,189 ) December 31, 2019 316,904 166,768 Granted 363,253 502,558 Redeemed (127,884 ) (39,028 ) Forfeited (67,491 ) (64,919 ) December 31, 2020 484,782 565,379 |
Summary of Status of Equity Incentive Plan | A summary of the status of the equity incentive plan is presented below: Canadian Share Options Options Outstanding Range of Exercise Prices Weighted Average Exercise Price Options Exercisable December 31, 2018 236,658 $ 87.00 – 286.20 $ 155.56 189,324 Forfeited (35,579 ) 143.00 – 213.40 210.29 December 31, 2019 201,079 87.00 – 286.20 145.88 178,453 Forfeited (52,414 ) 87.00 – 203.00 165.79 December 31, 2020 148,665 $ 87.00 – 286.20 $ 138.86 141,156 U.S. Share Options Options Outstanding Range of Exercise Prices (US$) Weighted Average Exercise Price (US$) Options Exercisable December 31, 2018 303,293 $ 64.20 – 214.80 $ 103.47 161,204 Granted 29,965 51.20 – 51.20 51.20 Forfeited (15,105 ) 155.80 – 214.80 213.54 December 31, 2019 318,153 51.20 – 183.60 93.32 217,441 Forfeited (34,360 ) 64.20 – 183.60 151.92 December 31, 2020 283,793 $ 51.20 – 183.60 $ 86.23 239,521 |
Range of Exercise Prices for Options Outstanding | Canadian Share Options Total Options Outstanding Options Exercisable Range of Exercise Prices: Number Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Number Weighted Average Exercise Price $ 87.00 – 139.99 47,970 $ 88.17 3.09 40,461 $ 88.38 140.00 – 279.99 99,710 161.80 1.19 99,710 161.80 280.00 – 286.20 985 286.20 0.34 985 286.20 $ 87.00 – 286.20 148,665 $ 138.86 1.80 141,156 $ 141.62 U.S. Share Options Total Options Outstanding Options Exercisable Range of Exercise Prices (US$): Number Weighted Average Exercise Price (US$) Weighted Average Remaining Contractual Life (Years) Number Weighted Average Exercise Price (US$) $ 51.20 – 79.99 176,603 $ 64.01 3.49 132,331 $ 65.04 80.00 – 139.99 91,240 112.21 2.38 91,240 112.21 140.00 – 183.60 15,950 183.60 0.12 15,950 183.60 $ 51.20 – 183.60 283,793 $ 86.23 2.94 239,521 $ 90.90 |
Summary of Shares Outstanding Under Share Based Incentive Plans | A summary of the RSUs and PSUs outstanding under these share based incentive plans is presented below: RSUs Outstanding PSUs Outstanding December 31, 2018 202,796 227,150 Granted 209,368 101,945 Redeemed (75,284 ) (66,138 ) Forfeited (19,976 ) (96,189 ) December 31, 2019 316,904 166,768 Granted 363,253 502,558 Redeemed (127,884 ) (39,028 ) Forfeited (67,491 ) (64,919 ) December 31, 2020 484,782 565,379 |
Executive Performance Share Units [Member] | |
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | |
Summary of Shares Outstanding Under Share Based Incentive Plans | A summary of the activity under this share based incentive plan is presented below: Executive Performance Share Units Outstanding December 31, 2018 159,553 Granted 210,580 Forfeited (1,288 ) December 31, 2019 368,845 Redeemed (57,442 ) Forfeited (22,696 ) December 31, 2020 288,707 |
Summary of Shares Outstanding Under Share Based Incentive Plans | A summary of the activity under this share based incentive plan is presented below: Executive Performance Share Units Outstanding December 31, 2018 159,553 Granted 210,580 Forfeited (1,288 ) December 31, 2019 368,845 Redeemed (57,442 ) Forfeited (22,696 ) December 31, 2020 288,707 |
Deferred Share Units (DSUs) [Member] | |
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | |
Summary of Shares Outstanding Under Share Based Incentive Plans | A summary of the DSUs outstanding under this share based incentive plan is presented below: Deferred Share Units Outstanding Balance December 31, 2018 52,682 Granted 36,931 Balance December 31, 2019 89,613 Redeemed (12,039 ) Balance December 31, 2020 77,574 |
Summary of Shares Outstanding Under Share Based Incentive Plans | A summary of the DSUs outstanding under this share based incentive plan is presented below: Deferred Share Units Outstanding Balance December 31, 2018 52,682 Granted 36,931 Balance December 31, 2019 89,613 Redeemed (12,039 ) Balance December 31, 2020 77,574 |
Deferred Share Units (DSUs) [Member] | Equity-Settled Plans [Member] | |
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | |
Summary of Shares Outstanding Under Share Based Incentive Plans | A summary of this share based incentive plan is presented below: Deferred Share Units Outstanding December 31, 2018 and 2019 4,659 Redeemed (3,189 ) December 31, 2020 1,470 |
Summary of Shares Outstanding Under Share Based Incentive Plans | A summary of this share based incentive plan is presented below: Deferred Share Units Outstanding December 31, 2018 and 2019 4,659 Redeemed (3,189 ) December 31, 2020 1,470 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Net Deferred Tax Assets And Liabilities [Abstract] | |
Schedule of Provision for Income Taxes | A reconciliation of the difference for the years ended December 31, is as follows: 2020 2019 Loss before income taxes $ (109,184 ) $ (8,339 ) Federal and provincial statutory rates 25 % 27 % Tax at statutory rates $ (27,296 ) $ (2,252 ) Adjusted for the effect of: Non-deductible expenses 628 1,597 Non-taxable capital gains (6,184 ) (1,408 ) Impact of foreign tax rates (238 ) (13,549 ) Withholding taxes 813 1,262 Taxes related to prior years (1,531 ) (1,975 ) Tax assets not recognized 44,112 — Other 650 1,368 Income tax expense (recovery) $ 10,954 $ (14,957 ) |
Summary of Net Deferred Tax Liability | The net deferred tax liability is comprised of the tax effect of the following temporary differences: 2020 2019 Deferred tax liability: Property, plant and equipment and intangibles $ 393,631 $ 426,934 Debt issue costs 2,665 3,280 Partnership deferrals 2,532 850 Other 6,322 7,926 405,150 438,990 Offsetting of assets and liabilities (383,914 ) (413,601 ) $ 21,236 $ 25,389 Deferred tax assets: Losses (expire from time to time up to 2040) $ 370,439 $ 402,025 Long-term incentive plan 4,956 6,131 Other 9,617 10,169 385,012 418,325 Offsetting of assets and liabilities (383,914 ) (413,601 ) $ 1,098 $ 4,724 Net deferred tax liability $ 20,138 $ 20,665 |
Summary of Deferred Tax Asset Not Recognized | Accordingly, the Corporation has not recognized a deferred tax asset for the following items: 2020 2019 Tax losses (Capital) $ 29,809 $ 31,033 Tax losses (Income) 72,516 33,221 Deductible temporary differences 2,020 — Total $ 104,345 $ 64,254 |
Summary of Movement in Temporary Differences of Deferred Tax Liabilities | The movement in temporary differences is as follows: Property, Plant and Equipment and Intangibles Partnership Deferrals Other Deferred Tax Liabilities Losses Debt Issue Costs Long-Term Incentive Plan Other Deferred Tax Assets Net Deferred Tax Liability Balance, December 31, 2018 $ 467,109 $ 1,730 $ 5,722 $ (423,595 ) $ 3,534 $ (6,849 ) $ (11,752 ) $ 35,899 Recognized in net earnings (26,825 ) (880 ) 2,216 7,874 (254 ) 572 1,260 (16,037 ) Effect of foreign currency exchange differences (13,350 ) — (12 ) 13,696 — 146 323 803 Balance, December 31, 2019 $ 426,934 $ 850 $ 7,926 $ (402,025 ) $ 3,280 $ (6,131 ) $ (10,169 ) $ 20,665 Recognized in net earnings (loss) (28,600 ) 1,682 (1,601 ) 33,141 (615 ) 1,120 537 5,664 Recognized in other comprehensive income — — — (5,398 ) — — — (5,398 ) Effect of foreign currency exchange differences (4,703 ) — (3 ) 3,843 — 55 15 (793 ) Balance, December 31, 2020 $ 393,631 $ 2,532 $ 6,322 $ (370,439 ) $ 2,665 $ (4,956 ) $ (9,617 ) $ 20,138 |
Provisions and Other (Tables)
Provisions and Other (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Other Provisions [Abstract] | |
Disclosure of Provisions and Other | Workers’ Compensation Balance December 31, 2018 $ 13,373 Expensed during the year 4,047 Payment of deductibles and uninsured claims (4,915 ) Effects of foreign currency exchange differences (639 ) Balance December 31, 2019 11,866 Recovered during the year (750 ) Payment of deductibles and uninsured claims (2,698 ) Effects of foreign currency exchange differences (110 ) Balance December 31, 2020 $ 8,308 2020 2019 Current $ 745 $ 1,907 Long-term 7,563 9,959 $ 8,308 $ 11,866 |
Shareholders' Capital (Tables)
Shareholders' Capital (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Classes Of Share Capital [Abstract] | |
Schedule of Issued Capital | Common shares Number Amount Balance, December 31, 2018 14,689,092 $ 2,322,280 Share repurchase (824,102 ) (25,902 ) Balance, December 31, 2019 13,864,990 $ 2,296,378 Share repurchase (420,588 ) (11,317 ) Share issuance on redemption of non-management DSUs 15,228 677 Share consolidation adjustment (37 ) — Balance, December 31, 2020 13,459,593 $ 2,285,738 |
Per Share Amounts (Tables)
Per Share Amounts (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Per Share Amounts | The following tables reconcile the net earnings (loss) and weighted average shares outstanding used in computing basic and diluted earnings (loss) per share: 2020 2019 Net earnings (loss) – basic and diluted $ (120,138 ) $ 6,618 (Stated in thousands) 2020 2019 Weighted average shares outstanding – basic 13,722 14,539 Effect of share options and other equity compensation plans — 320 Weighted average shares outstanding – diluted 13,722 14,859 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text Block1 [Abstract] | |
Summary of Accumulated Other Comprehensive Income | Unrealized Foreign Currency Translation Gains (Losses) Foreign Exchange Gain (Loss) on Net Investment Hedge Tax Benefit Related to Net Investment Hedge of Long-Term Debt Accumulated Other Comprehensive Income December 31, 2018 $ 616,363 $ (454,349 ) $ — $ 162,014 Other comprehensive income (loss) (106,781 ) 79,022 — (27,759 ) December 31, 2019 509,582 (375,327 ) — 134,255 Other comprehensive income (loss) (25,925 ) 23,853 5,398 3,326 December 31, 2020 $ 483,657 $ (351,474 ) $ 5,398 $ 137,581 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Compensation of Key Management Personnel | The remuneration of key management personnel is as follows: 2020 2019 Salaries and other benefits $ 10,031 $ 8,747 Equity-settled share based compensation 9,148 9,047 Cash-settled share based compensation 419 1,432 $ 19,598 $ 19,226 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Financial Instruments [Abstract] | |
Summary of Expected Credit Loss Allowance | The movement in the expected credit loss allowance during the year was as follows: 2020 2019 Balance, January 1, $ 929 $ 1,470 Impairment loss recognized 812 72 Amounts written-off as uncollectible (479 ) (537 ) Impairment loss reversed (396 ) (24 ) Effect of movement in exchange rates (4 ) (52 ) Balance, December 31, $ 862 $ 929 |
Summary of Ageing of Trade Receivables | The ageing of trade receivables at December 31 was as follows: 2020 2019 Gross Provision for Impairment Gross Provision for Impairment Not past due $ 66,191 $ 1 $ 144,292 $ 1 Past due 0 – 30 days 35,060 8 47,965 8 Past due 31 – 120 days 11,649 26 19,166 28 Past due more than 120 days 1,895 827 1,303 892 $ 114,795 $ 862 $ 212,726 $ 929 |
Summary of Financial Instruments were Denominated in U S Dollars | The following financial instruments were denominated in U.S. dollars: 2020 2019 Canadian Operations Foreign Operations Canadian Operations Foreign Operations Cash US $ 35,257 US $ 26,057 US $ 9,727 US $ 41,154 Accounts receivable — 98,298 242 150,873 Accounts payable and accrued liabilities (18,727 ) (59,704 ) (17,730 ) (86,324 ) Long-term liabilities, excluding long-term incentive plans (1) — (16,197 ) — (7,669 ) Net foreign currency exposure US $ 16,530 US $ 48,454 US $ (7,761 ) US $ 98,034 Impact of $0.01 change in the U.S. dollar to Canadian dollar exchange rate on net earnings (loss) $ 165 $ — $ (78 ) $ — Impact of $0.01 change in the U.S. dollar to Canadian dollar exchange rate on comprehensive loss $ — $ 485 $ — $ 980 (1) Excludes U.S. dollar long-term debt that has been designated as a hedge of the Corporation’s net investment in certain self-sustaining foreign operations. |
Summary of Contractual Maturities of Financial Liabilities and Other Contractual Commitments | The following are the contractual maturities of the Corporation’s financial liabilities and other contractual commitments as at December 31, 2020: 2021 2022 2023 2024 2025 Thereafter Total Accounts payable and accrued liabilities $ 150,957 $ — $ — $ — $ — $ — $ 150,957 Share based compensation 7,768 9,858 9,419 — — — 27,045 Long-term debt 896 896 459,719 335,995 9,786 442,757 1,250,049 Interest on long-term debt (1) 80,980 80,980 79,540 47,396 31,964 1,314 322,174 Commitments 34,877 62,589 45,401 5,963 5,229 6,590 160,649 Total $ 275,478 $ 154,323 $ 594,079 $ 389,354 $ 46,979 $ 450,661 $ 1,910,874 (1) Excludes amortization of long-term debt issue costs. |
Capital Management (Tables)
Capital Management (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Capital Management [Abstract] | |
Summary of Capitalisation and Ratio | As at December 31, 2020 and 2019, these ratios were as follows: 2020 2019 Long-term debt $ 1,236,210 $ 1,427,181 Shareholders’ equity 1,406,640 1,527,432 Total capitalization $ 2,642,850 $ 2,954,613 Long-term debt to long-term debt plus equity ratio 0.47 0.48 |
Supplemental Information (Table
Supplemental Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Supplemental Information [Abstract] | |
Components of Changes in Non-cash Working Capital Balances | Components of changes in non-cash working capital balances are as follows: 2020 2019 Accounts receivable $ 103,857 $ 51,152 Inventory 5,181 1,157 Accounts payable and accrued liabilities (53,666 ) (61,376 ) $ 55,372 $ (9,067 ) Pertaining to: Operations $ 55,391 $ (4,493 ) Investments (19 ) (4,574 ) |
Components of Accounts Receivable | The components of accounts receivable are as follows: 2020 2019 Trade $ 113,933 $ 211,797 Accrued trade 16,769 32,167 Prepaids and other 76,507 66,240 $ 207,209 $ 310,204 |
Components of Accounts Payable and Accrued Liabilities | The components of accounts payable and accrued liabilities are as follows: 2020 2019 Accounts payable $ 56,922 $ 91,468 Accrued liabilities: Payroll 44,533 54,334 Other 49,502 53,676 $ 150,957 $ 199,478 |
Summary of Operating and General and Administrative Expenses | The following table presents operating and general and administrative expenses by nature: 2020 2019 Wages, salaries and benefits $ 438,209 $ 697,935 Wage subsidies (26,297 ) — Purchased materials, supplies and services 240,591 429,365 Share based compensation 19,847 22,115 $ 672,350 $ 1,149,415 Allocated to: Operating expense $ 583,420 $ 1,038,967 General and administrative 70,869 104,010 Restructuring 18,061 6,438 $ 672,350 $ 1,149,415 |
Long-Term Debt Guarantor Disc_2
Long-Term Debt Guarantor Disclosure (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Long Term Debt Guarantor Disclosure [Abstract] | |
Condensed Consolidated Statement of Financial Position | Condensed Consolidated Statement of Financial Position as at December 31, 2020 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Total Assets Cash $ 76,547 $ 15,392 $ 16,833 $ — $ 108,772 Other current assets 5,399 129,924 98,165 3 233,491 Intercompany receivables 48,595 2,358,699 115,204 (2,522,498 ) — Investments in subsidiaries 4,409,992 30 — (4,410,022 ) — Property, plant and equipment 44,114 2,041,094 387,223 252 2,472,683 Intangibles 26,907 759 — — 27,666 Right-of-use assets 20,115 31,323 3,730 — 55,168 Other long-term assets — — 1,140 (42 ) 1,098 Total assets $ 4,631,669 $ 4,577,221 $ 622,295 $ (6,932,307 ) $ 2,898,878 Liabilities and shareholders’ equity Current liabilities $ 37,251 $ 86,221 $ 43,368 $ — $ 166,840 Intercompany payables and debt 2,420,264 53,375 48,859 (2,522,498 ) — Long-term debt 1,224,048 12,162 — — 1,236,210 Lease obligations 19,326 27,072 2,484 — 48,882 Other long-term liabilities 7,505 32,400 443 (42 ) 40,306 Total liabilities 3,708,394 211,230 95,154 (2,522,540 ) 1,492,238 Shareholders’ equity 923,275 4,365,991 527,141 (4,409,767 ) 1,406,640 Total liabilities and shareholders’ equity $ 4,631,669 $ 4,577,221 $ 622,295 $ (6,932,307 ) $ 2,898,878 Condensed Consolidated Statement of Financial Position as at December 31, 2019 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Total Assets Cash $ 20,952 $ 20,651 $ 33,098 $ — $ 74,701 Other current assets 3,952 242,968 96,140 4 343,064 Intercompany receivables 82,101 2,205,834 67,377 (2,355,312 ) — Investments in subsidiaries 4,535,625 30 — (4,535,655 ) — Property, plant and equipment 48,416 2,263,355 437,413 279 2,749,463 Intangibles 30,434 1,312 — — 31,746 Right of use assets 23,070 39,267 3,805 — 66,142 Other long-term assets — — 6,595 (1,871 ) 4,724 Total assets $ 4,744,550 $ 4,773,417 $ 644,428 $ (6,892,555 ) $ 3,269,840 Liabilities and shareholders’ equity Current liabilities $ 33,862 $ 130,232 $ 51,975 $ — $ 216,069 Intercompany payables and debt 2,217,790 84,901 52,621 (2,355,312 ) — Long-term debt 1,427,181 — — — 1,427,181 Lease obligations 20,877 31,614 2,489 — 54,980 Other long-term liabilities 26,927 18,454 668 (1,871 ) 44,178 Total liabilities 3,726,637 265,201 107,753 (2,357,183 ) 1,742,408 Shareholders’ equity 1,017,913 4,508,216 536,675 (4,535,372 ) 1,527,432 Total liabilities and shareholders’ equity $ 4,744,550 $ 4,773,417 $ 644,428 $ (6,892,555 ) $ 3,269,840 |
Condensed Consolidated Statement of Net Earnings (Loss) | Condensed Consolidated Statement of Net Earnings (Loss) for the year ended December 31, 2020 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Total Revenue $ 57 $ 752,737 $ 186,088 $ (3,129 ) $ 935,753 Operating expense 50 465,624 120,875 (3,129 ) 583,420 General and administrative expense 38,489 26,767 5,613 — 70,869 Restructuring 6,978 11,083 — — 18,061 Earnings (loss) before income taxes, equity in earnings of subsidiaries, gain on redemption and repurchase of unsecured senior notes, finance charges, foreign exchange, gain on asset disposals and depreciation and amortization (45,460 ) 249,263 59,600 — 263,403 Depreciation and amortization 9,981 255,299 50,815 227 316,322 Gain on asset disposals (141 ) (11,655 ) (135 ) — (11,931 ) Foreign exchange (6,957 ) 36,313 (24,814 ) — 4,542 Finance charges 109,578 (2,113 ) 3 — 107,468 Gain on redemption and repurchase of unsecured senior notes (43,814 ) — — — (43,814 ) Equity in earnings of subsidiaries 22,462 — — (22,462 ) — Earnings (loss) before income taxes (136,569 ) (28,581 ) 33,731 22,235 (109,184 ) Income taxes (16,658 ) 18,056 9,556 — 10,954 Net earnings (loss) $ (119,911 ) $ (46,637 ) $ 24,175 $ 22,235 $ (120,138 ) Condensed Consolidated Statement of Net Earnings (Loss) for the year ended December 31, 2019 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Total Revenue $ 92 $ 1,341,624 $ 210,292 $ (10,688 ) $ 1,541,320 Operating expense 56 909,898 139,701 (10,688 ) 1,038,967 General and administrative expense 38,418 57,119 8,473 — 104,010 Restructuring 2,822 3,616 — — 6,438 Earnings (loss) before income taxes, equity in earnings of subsidiaries, gain on redemption and repurchase of unsecured senior notes, finance charges, foreign exchange, reversal of impairment of property, plant and equipment, loss on asset decommissioning, gain on asset disposals and depreciation and amortization (41,204 ) 370,991 62,118 — 391,905 Depreciation and amortization 13,272 262,914 57,205 225 333,616 Gain on asset disposals (47 ) (50,439 ) (255 ) — (50,741 ) Loss on asset decommissioning — 20,263 — — 20,263 Reversal of impairment of property, plant and equipment — (5,810 ) — — (5,810 ) Foreign exchange (8,499 ) (758 ) 535 — (8,722 ) Finance charges 118,775 (354 ) 32 — 118,453 Gain on redemption and repurchase of unsecured senior notes (6,815 ) — — — (6,815 ) Equity in earnings of subsidiaries (102,114 ) — — 102,114 — Earnings (loss) before income taxes (55,776 ) 145,175 4,601 (102,339 ) (8,339 ) Income taxes (62,619 ) 44,809 2,853 — (14,957 ) Net earnings (loss) $ 6,843 $ 100,366 $ 1,748 $ (102,339 ) $ 6,618 |
Condensed Consolidated Statement of Comprehensive Income (Loss) | Condensed Consolidated Statement of Comprehensive Income (Loss) for the year ended December 31, 2020 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Total Net earnings (loss) $ (119,911 ) $ (46,637 ) $ 24,175 $ 22,235 $ (120,138 ) Other comprehensive income (loss) 29,251 9,732 (35,857 ) 200 3,326 Comprehensive income (loss) $ (90,660 ) $ (36,905 ) $ (11,682 ) $ 22,435 $ (116,812 ) Condensed Consolidated Statement of Comprehensive Income (Loss) for the year ended December 31, 2019 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Total Net earnings (loss) $ 6,843 $ 100,366 $ 1,748 $ (102,339 ) $ 6,618 Other comprehensive income (loss) 79,022 (79,018 ) (27,655 ) (108 ) (27,759 ) Comprehensive income (loss) $ 85,865 $ 21,348 $ (25,907 ) $ (102,447 ) $ (21,141 ) |
Condensed Consolidated Statement of Cash Flow | Condensed Consolidated Statement of Cash Flow for the year ended December 31, 2020 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Total Cash provided by (used in): Operations $ (79,919 ) $ 263,514 $ 42,523 $ — $ 226,118 Investments 292,596 (32,668 ) (7,252 ) (293,193 ) (40,517 ) Financing (152,738 ) (234,953 ) (51,126 ) 293,193 (145,624 ) Effects of exchange rate changes on cash (4,344 ) (1,152 ) (410 ) — (5,906 ) Increase (decrease) in cash 55,595 (5,259 ) (16,265 ) — 34,071 Cash, beginning of year 20,952 20,651 33,098 — 74,701 Cash, end of year $ 76,547 $ 15,392 $ 16,833 $ — $ 108,772 Condensed Consolidated Statement of Cash Flow for the year ended December 31, 2019 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Total Cash provided by (used in): Operations $ (189,376 ) $ 480,215 $ (2,680 ) $ — $ 288,159 Investments 408,753 (56,937 ) (15,337 ) (410,979 ) (74,500 ) Financing (226,379 ) (438,350 ) 21,936 410,979 (231,814 ) Effects of exchange rate changes on cash (672 ) (1,415 ) (1,683 ) — (3,770 ) Increase (decrease) in cash (7,674 ) (16,487 ) 2,236 — (21,925 ) Cash, beginning of year 28,626 37,138 30,862 — 96,626 Cash, end of year $ 20,952 $ 20,651 $ 33,098 $ — $ 74,701 |
Subsidiaries (Tables)
Subsidiaries (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Significant Investments In Subsidiaries [Abstract] | |
Summary of Subsidiaries | Ownership Interest Country of Incorporation 2020 2019 Precision Limited Partnership Canada 100 100 Precision Drilling Canada Limited Partnership Canada 100 100 Precision Diversified Oilfield Services Corp. Canada 100 100 Precision Directional Services Ltd. Canada 100 100 Precision Drilling (US) Corporation United States 100 100 Precision Drilling Holdings Company United States 100 100 Precision Drilling Company LP United States 100 100 Precision Completion & Production Services Ltd. United States 100 100 Grey Wolf Drilling Limited Barbados 100 100 Grey Wolf Drilling (Barbados) Ltd. Barbados 100 100 |
Significant Accounting Polici_4
Significant Accounting Policies - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Significant Accounting Policies [Line Items] | |
Cash original maturity | three months or less |
Top of Range [Member] | Software [Member] | |
Disclosure Of Significant Accounting Policies [Line Items] | |
Expected useful life of intangible asset | 10 years |
Summary of Property, Plant, and
Summary of Property, Plant, and Equipment Expected Life Salvage Value and Basis of Depreciation (Detail) | 12 Months Ended |
Dec. 31, 2020 | |
Drilling Rig Power and Tubulars Equipment [Member] | |
Disclosure of detailed information about property, plant and equipment [Line Items] | |
Expected Life | 5 years |
Basis of Depreciation | straight-line |
Drilling Rig Dynamic Equipment [Member] | |
Disclosure of detailed information about property, plant and equipment [Line Items] | |
Expected Life | 10 years |
Basis of Depreciation | straight-line |
Drilling Rig Structural Equipment [Member] | |
Disclosure of detailed information about property, plant and equipment [Line Items] | |
Expected Life | 20 years |
Salvage Value | 10.00% |
Basis of Depreciation | straight-line |
Service Rig Equipment [Member] | |
Disclosure of detailed information about property, plant and equipment [Line Items] | |
Expected Life | 20 years |
Salvage Value | 10.00% |
Basis of Depreciation | straight-line |
Drilling Rig Spare Equipment [Member] | |
Disclosure of detailed information about property, plant and equipment [Line Items] | |
Expected Life | up to 15 years |
Basis of Depreciation | straight-line |
Service Rig Spare Equipment [Member] | |
Disclosure of detailed information about property, plant and equipment [Line Items] | |
Expected Life | up to 15 years |
Basis of Depreciation | straight-line |
Rental Equipment [Member] | |
Disclosure of detailed information about property, plant and equipment [Line Items] | |
Expected Life | up to 15 years |
Rental Equipment [Member] | Top of Range [Member] | |
Disclosure of detailed information about property, plant and equipment [Line Items] | |
Salvage Value | 25.00% |
Basis of Depreciation | straight-line |
Rental Equipment [Member] | Bottom Of Range [Member] | |
Disclosure of detailed information about property, plant and equipment [Line Items] | |
Salvage Value | 0.00% |
Other Equipment [Member] | |
Disclosure of detailed information about property, plant and equipment [Line Items] | |
Expected Life | 3 to 10 years |
Basis of Depreciation | straight-line |
Light Duty Vehicles [Member] | |
Disclosure of detailed information about property, plant and equipment [Line Items] | |
Expected Life | 4 years |
Basis of Depreciation | straight-line |
Heavy Duty Vehicles [Member] | |
Disclosure of detailed information about property, plant and equipment [Line Items] | |
Expected Life | 7 to 10 years |
Basis of Depreciation | straight-line |
Buildings [Member] | |
Disclosure of detailed information about property, plant and equipment [Line Items] | |
Expected Life | 10 to 20 years |
Basis of Depreciation | straight-line |
Summary of Reconciliation of Di
Summary of Reconciliation of Disaggregated Revenue by Primary Geographical Market (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | ||
Revenue | $ 935,753 | $ 1,541,320 |
Contract Drilling Services [Member] | ||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | ||
Revenue | 861,202 | 1,399,068 |
Completion and Production Services [Member] | ||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | ||
Revenue | 77,251 | 147,829 |
Inter- Segment Eliminations [Member] | ||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | ||
Revenue | (2,700) | (5,577) |
Canada [Member] | ||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | ||
Revenue | 305,613 | 459,377 |
Canada [Member] | Contract Drilling Services [Member] | ||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | ||
Revenue | 247,678 | 336,483 |
Canada [Member] | Completion and Production Services [Member] | ||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | ||
Revenue | 60,621 | 128,202 |
Canada [Member] | Inter- Segment Eliminations [Member] | ||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | ||
Revenue | (2,686) | (5,308) |
United States [Member] | ||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | ||
Revenue | 444,052 | 871,651 |
United States [Member] | Contract Drilling Services [Member] | ||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | ||
Revenue | 427,436 | 852,293 |
United States [Member] | Completion and Production Services [Member] | ||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | ||
Revenue | 16,630 | 19,627 |
United States [Member] | Inter- Segment Eliminations [Member] | ||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | ||
Revenue | (14) | (269) |
International [Member] | ||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | ||
Revenue | 186,088 | 210,292 |
International [Member] | Contract Drilling Services [Member] | ||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | ||
Revenue | $ 186,088 | $ 210,292 |
Summary of Reconciliation of _2
Summary of Reconciliation of Disaggregated Revenue by Type of Service Provided (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | ||
Revenue | $ 935,753 | $ 1,541,320 |
Contract Drilling Services [Member] | ||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | ||
Revenue | 861,202 | 1,399,068 |
Completion and Production Services [Member] | ||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | ||
Revenue | 77,251 | 147,829 |
Inter- Segment Eliminations [Member] | ||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | ||
Revenue | (2,700) | (5,577) |
Day Rate Or Hourly Services [Member] | ||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | ||
Revenue | 856,630 | 1,480,038 |
Day Rate Or Hourly Services [Member] | Contract Drilling Services [Member] | ||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | ||
Revenue | 779,772 | 1,333,114 |
Day Rate Or Hourly Services [Member] | Completion and Production Services [Member] | ||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | ||
Revenue | 77,251 | 147,829 |
Day Rate Or Hourly Services [Member] | Inter- Segment Eliminations [Member] | ||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | ||
Revenue | (393) | (905) |
Shortfall Payments Or Idle But Contracted [Member] | ||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | ||
Revenue | 51,028 | 9,789 |
Shortfall Payments Or Idle But Contracted [Member] | Contract Drilling Services [Member] | ||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | ||
Revenue | 51,028 | 9,789 |
Turnkey Drilling Services [Member] | ||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | ||
Revenue | 14,134 | 3,754 |
Turnkey Drilling Services [Member] | Contract Drilling Services [Member] | ||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | ||
Revenue | 14,134 | 3,754 |
Directional Services [Member] | ||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | ||
Revenue | 9,637 | 41,876 |
Directional Services [Member] | Contract Drilling Services [Member] | ||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | ||
Revenue | 9,637 | 41,876 |
Other [Member] | ||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | ||
Revenue | 4,324 | 5,863 |
Other [Member] | Contract Drilling Services [Member] | ||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | ||
Revenue | 6,631 | 10,535 |
Other [Member] | Inter- Segment Eliminations [Member] | ||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | ||
Revenue | $ (2,307) | $ (4,672) |
Segmented Information - Additio
Segmented Information - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2020Segment | |
Disclosure Of Operating Segments [Abstract] | |
Number of operating segments | 2 |
Summary of Operating Segments (
Summary of Operating Segments (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of operating segments [Line Items] | ||
Revenue | $ 935,753 | $ 1,541,320 |
Operating earnings (loss) | (109,184) | (8,339) |
Depreciation and amortization | 316,322 | 333,616 |
Total assets | 2,898,878 | 3,269,840 |
All Other Segments [Member] | ||
Disclosure of operating segments [Line Items] | ||
Revenue | 935,753 | 1,541,320 |
Operating earnings (loss) | (40,988) | 94,577 |
Depreciation and amortization | 316,322 | 333,616 |
Loss (gain) on asset disposals | (11,931) | (50,741) |
Total assets | 2,898,878 | 3,269,840 |
Capital expenditures | 61,592 | 160,694 |
Loss on asset decommissioning | 20,263 | |
Reversal of impairment of property, plant and equipment | (5,810) | |
Contract Drilling Services [Member] | ||
Disclosure of operating segments [Line Items] | ||
Revenue | 861,202 | 1,399,068 |
Contract Drilling Services [Member] | All Other Segments [Member] | ||
Disclosure of operating segments [Line Items] | ||
Revenue | 861,202 | 1,399,068 |
Operating earnings (loss) | 22,207 | 160,997 |
Depreciation and amortization | 288,389 | 300,882 |
Loss (gain) on asset disposals | (10,171) | (46,849) |
Total assets | 2,571,397 | 2,963,260 |
Capital expenditures | 57,741 | 154,066 |
Loss on asset decommissioning | 20,263 | |
Reversal of impairment of property, plant and equipment | (5,810) | |
Completion and Production Services [Member] | ||
Disclosure of operating segments [Line Items] | ||
Revenue | 77,251 | 147,829 |
Completion and Production Services [Member] | All Other Segments [Member] | ||
Disclosure of operating segments [Line Items] | ||
Revenue | 77,251 | 147,829 |
Operating earnings (loss) | (3,671) | 10,041 |
Depreciation and amortization | 16,375 | 17,881 |
Loss (gain) on asset disposals | (1,447) | (3,767) |
Total assets | 132,771 | 152,611 |
Capital expenditures | 3,362 | 5,448 |
Corporate and Other [Member] | All Other Segments [Member] | ||
Disclosure of operating segments [Line Items] | ||
Operating earnings (loss) | (59,524) | (76,461) |
Depreciation and amortization | 11,558 | 14,853 |
Loss (gain) on asset disposals | (313) | (125) |
Total assets | 194,710 | 153,969 |
Capital expenditures | 489 | 1,180 |
Inter- Segment Eliminations [Member] | ||
Disclosure of operating segments [Line Items] | ||
Revenue | (2,700) | (5,577) |
Inter- Segment Eliminations [Member] | All Other Segments [Member] | ||
Disclosure of operating segments [Line Items] | ||
Revenue | $ (2,700) | $ (5,577) |
Summary of Operating Earnings (
Summary of Operating Earnings (Loss) to Loss Before Income Taxes (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure Of Operating Segments [Abstract] | ||
Operating earnings (loss) | $ (40,988) | $ 94,577 |
Foreign exchange | 4,542 | (8,722) |
Finance charges | 107,468 | 118,453 |
Gain on redemption and repurchase of unsecured senior notes | (43,814) | (6,815) |
Loss before income taxes | $ (109,184) | $ (8,339) |
Summary of Operating Segments b
Summary of Operating Segments by Geographic Locations (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of geographical areas [Line Items] | ||
Revenue | $ 935,753 | $ 1,541,320 |
Total assets | 2,898,878 | 3,269,840 |
United States [Member] | ||
Disclosure of geographical areas [Line Items] | ||
Revenue | 444,052 | 871,651 |
Total assets | 1,339,945 | 1,560,523 |
Canada [Member] | ||
Disclosure of geographical areas [Line Items] | ||
Revenue | 305,613 | 459,377 |
Total assets | 1,053,921 | 1,133,591 |
International [Member] | ||
Disclosure of geographical areas [Line Items] | ||
Revenue | 186,088 | 210,292 |
Total assets | $ 505,012 | $ 575,726 |
Schedule of Property, Plant and
Schedule of Property, Plant and Equipment (Detail) - CAD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Property, plant and equipment | $ 2,472,683 | $ 2,749,463 | |
Rig Equipment [Member] | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Property, plant and equipment | 2,269,794 | 2,510,505 | |
Rental Equipment [Member] | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Property, plant and equipment | 27,359 | 34,437 | |
Other Equipment [Member] | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Property, plant and equipment | 27,318 | 38,604 | |
Vehicles [member] | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Property, plant and equipment | 4,978 | 7,796 | |
Buildings [Member] | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Property, plant and equipment | 49,451 | 56,834 | |
Assets Under Construction [Member] | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Property, plant and equipment | 60,572 | 67,740 | |
Land [Member] | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Property, plant and equipment | 33,211 | 33,547 | |
Gross [Member] | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Property, plant and equipment | 6,563,206 | 6,670,979 | $ 6,937,062 |
Gross [Member] | Rig Equipment [Member] | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Property, plant and equipment | 6,025,767 | 6,109,383 | 6,322,536 |
Gross [Member] | Rental Equipment [Member] | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Property, plant and equipment | 105,024 | 110,307 | 130,463 |
Gross [Member] | Other Equipment [Member] | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Property, plant and equipment | 181,004 | 185,319 | 191,290 |
Gross [Member] | Vehicles [member] | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Property, plant and equipment | 35,350 | 38,506 | 45,456 |
Gross [Member] | Buildings [Member] | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Property, plant and equipment | 122,278 | 126,177 | 128,327 |
Gross [Member] | Assets Under Construction [Member] | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Property, plant and equipment | 60,572 | 67,740 | 84,561 |
Gross [Member] | Land [Member] | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Property, plant and equipment | 33,211 | 33,547 | 34,429 |
Accumulated Depreciation [Member] | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Property, plant and equipment | (4,090,523) | (3,921,516) | (3,898,450) |
Accumulated Depreciation [Member] | Rig Equipment [Member] | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Property, plant and equipment | (3,755,973) | (3,598,878) | (3,577,364) |
Accumulated Depreciation [Member] | Rental Equipment [Member] | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Property, plant and equipment | (77,665) | (75,870) | (86,471) |
Accumulated Depreciation [Member] | Other Equipment [Member] | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Property, plant and equipment | (153,686) | (146,715) | (139,095) |
Accumulated Depreciation [Member] | Vehicles [member] | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Property, plant and equipment | (30,372) | (30,710) | (32,754) |
Accumulated Depreciation [Member] | Buildings [Member] | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Property, plant and equipment | $ (72,827) | $ (69,343) | $ (62,766) |
Change in Property, Plant and E
Change in Property, Plant and Equipment (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Mar. 30, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about property, plant and equipment [Line Items] | ||||
Beginning Balance | $ 2,749,463 | |||
Reversal of impairment of property, plant and equipment | $ (5,810) | |||
Ending Balance | 2,472,683 | 2,749,463 | ||
Gross [Member] | ||||
Disclosure of detailed information about property, plant and equipment [Line Items] | ||||
Beginning Balance | 6,670,979 | 6,937,062 | ||
Additions | 61,535 | $ 159,886 | ||
Disposals | 92,524 | 100,707 | ||
Asset decommissioning | (4,364) | |||
Effect of foreign currency exchange differences | (76,784) | $ (320,898) | ||
Ending Balance | 6,563,206 | 6,670,979 | 6,937,062 | |
Accumulated Depreciation [Member] | ||||
Disclosure of detailed information about property, plant and equipment [Line Items] | ||||
Beginning Balance | (3,921,516) | (3,898,450) | ||
Depreciation expense | 304,934 | 320,736 | ||
Disposals | (86,076) | (59,962) | ||
Asset decommissioning | (3,518) | |||
Reversal of impairment of property, plant and equipment | (5,810) | |||
Effect of foreign currency exchange differences | (49,851) | (228,380) | ||
Ending Balance | (4,090,523) | (3,921,516) | (3,898,450) | |
Rig Equipment [Member] | ||||
Disclosure of detailed information about property, plant and equipment [Line Items] | ||||
Beginning Balance | 2,510,505 | |||
Ending Balance | 2,269,794 | 2,510,505 | ||
Rig Equipment [Member] | Gross [Member] | ||||
Disclosure of detailed information about property, plant and equipment [Line Items] | ||||
Beginning Balance | 6,109,383 | 6,322,536 | ||
Additions | 10,375 | 18,436 | ||
Disposals | 78,028 | 69,945 | ||
Reclassifications | 55,322 | 150,674 | ||
Asset decommissioning | (4,364) | |||
Effect of foreign currency exchange differences | (71,285) | (307,954) | ||
Ending Balance | 6,025,767 | 6,109,383 | 6,322,536 | |
Rig Equipment [Member] | Accumulated Depreciation [Member] | ||||
Disclosure of detailed information about property, plant and equipment [Line Items] | ||||
Beginning Balance | (3,598,878) | (3,577,364) | ||
Depreciation expense | 277,799 | 289,056 | ||
Disposals | (73,354) | (33,929) | ||
Asset decommissioning | (3,518) | |||
Reversal of impairment of property, plant and equipment | (5,810) | |||
Effect of foreign currency exchange differences | (47,350) | (224,285) | ||
Ending Balance | (3,755,973) | (3,598,878) | (3,577,364) | |
Rental Equipment [Member] | ||||
Disclosure of detailed information about property, plant and equipment [Line Items] | ||||
Beginning Balance | 34,437 | |||
Ending Balance | 27,359 | 34,437 | ||
Rental Equipment [Member] | Gross [Member] | ||||
Disclosure of detailed information about property, plant and equipment [Line Items] | ||||
Beginning Balance | 110,307 | 130,463 | ||
Disposals | 4,664 | 19,982 | ||
Effect of foreign currency exchange differences | (619) | (174) | ||
Ending Balance | 105,024 | 110,307 | 130,463 | |
Rental Equipment [Member] | Accumulated Depreciation [Member] | ||||
Disclosure of detailed information about property, plant and equipment [Line Items] | ||||
Beginning Balance | (75,870) | (86,471) | ||
Depreciation expense | 7,044 | 7,473 | ||
Disposals | (4,631) | (17,933) | ||
Effect of foreign currency exchange differences | (618) | (141) | ||
Ending Balance | (77,665) | (75,870) | (86,471) | |
Other Equipment [Member] | ||||
Disclosure of detailed information about property, plant and equipment [Line Items] | ||||
Beginning Balance | 38,604 | |||
Ending Balance | 27,318 | 38,604 | ||
Other Equipment [Member] | Gross [Member] | ||||
Disclosure of detailed information about property, plant and equipment [Line Items] | ||||
Beginning Balance | 185,319 | 191,290 | ||
Additions | 350 | 976 | ||
Disposals | 3,990 | 4,708 | ||
Reclassifications | 521 | 1,197 | ||
Effect of foreign currency exchange differences | (1,196) | (3,436) | ||
Ending Balance | 181,004 | 185,319 | 191,290 | |
Other Equipment [Member] | Accumulated Depreciation [Member] | ||||
Disclosure of detailed information about property, plant and equipment [Line Items] | ||||
Beginning Balance | (146,715) | (139,095) | ||
Depreciation expense | 12,013 | 13,023 | ||
Disposals | (3,990) | (3,274) | ||
Effect of foreign currency exchange differences | (1,052) | (2,129) | ||
Ending Balance | (153,686) | (146,715) | (139,095) | |
Vehicles [member] | ||||
Disclosure of detailed information about property, plant and equipment [Line Items] | ||||
Beginning Balance | 7,796 | |||
Ending Balance | 4,978 | 7,796 | ||
Vehicles [member] | Gross [Member] | ||||
Disclosure of detailed information about property, plant and equipment [Line Items] | ||||
Beginning Balance | 38,506 | 45,456 | ||
Additions | 224 | |||
Disposals | 2,789 | 6,014 | ||
Effect of foreign currency exchange differences | (367) | (1,160) | ||
Ending Balance | 35,350 | 38,506 | 45,456 | |
Vehicles [member] | Accumulated Depreciation [Member] | ||||
Disclosure of detailed information about property, plant and equipment [Line Items] | ||||
Beginning Balance | (30,710) | (32,754) | ||
Depreciation expense | 2,790 | 3,521 | ||
Disposals | (2,782) | (4,768) | ||
Effect of foreign currency exchange differences | (346) | (797) | ||
Ending Balance | (30,372) | (30,710) | (32,754) | |
Buildings [Member] | ||||
Disclosure of detailed information about property, plant and equipment [Line Items] | ||||
Beginning Balance | 56,834 | |||
Ending Balance | 49,451 | 56,834 | ||
Buildings [Member] | Gross [Member] | ||||
Disclosure of detailed information about property, plant and equipment [Line Items] | ||||
Beginning Balance | 126,177 | 128,327 | ||
Additions | 415 | |||
Disposals | 3,053 | 58 | ||
Effect of foreign currency exchange differences | (846) | (2,507) | ||
Ending Balance | 122,278 | 126,177 | 128,327 | |
Buildings [Member] | Accumulated Depreciation [Member] | ||||
Disclosure of detailed information about property, plant and equipment [Line Items] | ||||
Beginning Balance | (69,343) | (62,766) | ||
Depreciation expense | 5,288 | 7,663 | ||
Disposals | (1,319) | (58) | ||
Effect of foreign currency exchange differences | (485) | (1,028) | ||
Ending Balance | (72,827) | (69,343) | (62,766) | |
Assets Under Construction [Member] | ||||
Disclosure of detailed information about property, plant and equipment [Line Items] | ||||
Beginning Balance | 67,740 | |||
Ending Balance | 60,572 | 67,740 | ||
Assets Under Construction [Member] | Gross [Member] | ||||
Disclosure of detailed information about property, plant and equipment [Line Items] | ||||
Beginning Balance | 67,740 | 84,561 | ||
Additions | 50,810 | 139,835 | ||
Reclassifications | (55,843) | $ (151,871) | ||
Effect of foreign currency exchange differences | (2,135) | (4,785) | ||
Ending Balance | 60,572 | 67,740 | 84,561 | |
Land [Member] | ||||
Disclosure of detailed information about property, plant and equipment [Line Items] | ||||
Beginning Balance | 33,547 | |||
Ending Balance | 33,211 | 33,547 | ||
Land [Member] | Gross [Member] | ||||
Disclosure of detailed information about property, plant and equipment [Line Items] | ||||
Beginning Balance | 33,547 | 34,429 | ||
Effect of foreign currency exchange differences | (336) | (882) | ||
Ending Balance | $ 33,211 | $ 33,547 | $ 34,429 |
Property, Plant and Equipment -
Property, Plant and Equipment - Additional Information (Detail) $ in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020CAD ($) | Dec. 31, 2019CAD ($) | Dec. 31, 2019USD ($) | |
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Gains on disposals of assets | $ 12,000 | $ 51,000 | |
Reversal of impairment charge | 5,810 | ||
Mexico Based Drilling Rigs And Ancillary Equipment [Member] | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Gains on disposals of assets | $ 24 | ||
Proceeds from disposal | 48 | ||
Reversal of impairment charge | $ 4 | ||
Snubbing Units and Related Equipment [Member] | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Gains on disposals of assets | 3,000 | ||
Proceeds from disposal | 8,000 | ||
Drilling and Ancillary Equipment [Member] | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Loss on asset decommissioning | $ 20,000 |
Schedule of Intangibles (Detail
Schedule of Intangibles (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about intangible assets [Line Items] | ||
Balance | $ 31,746 | |
Loan commitment fees related to Senior Credit Facility | 2,109 | $ 2,272 |
Software | 25,557 | 29,474 |
Balance | 27,666 | 31,746 |
Gross [Member] | ||
Disclosure of detailed information about intangible assets [Line Items] | ||
Balance | 53,416 | 51,912 |
Additions | 747 | 1,510 |
Effect of foreign currency exchange differences | 26 | (6) |
Balance | 54,189 | 53,416 |
Gross [Member] | Loan Commitment Fees [Member] | ||
Disclosure of detailed information about intangible assets [Line Items] | ||
Balance | 15,478 | 14,776 |
Additions | 690 | 702 |
Balance | 16,168 | 15,478 |
Gross [Member] | Software [Member] | ||
Disclosure of detailed information about intangible assets [Line Items] | ||
Balance | 37,938 | 37,136 |
Additions | 57 | 808 |
Effect of foreign currency exchange differences | 26 | (6) |
Balance | 38,021 | 37,938 |
Accumulated Amortization [member] | ||
Disclosure of detailed information about intangible assets [Line Items] | ||
Balance | (21,670) | (16,511) |
Amortization expense | 4,824 | 5,159 |
Effect of foreign currency exchange differences | 29 | |
Balance | (26,523) | (21,670) |
Accumulated Amortization [member] | Loan Commitment Fees [Member] | ||
Disclosure of detailed information about intangible assets [Line Items] | ||
Balance | (13,206) | (12,469) |
Amortization expense | 853 | 737 |
Balance | (14,059) | (13,206) |
Accumulated Amortization [member] | Software [Member] | ||
Disclosure of detailed information about intangible assets [Line Items] | ||
Balance | (8,464) | (4,042) |
Amortization expense | 3,971 | 4,422 |
Effect of foreign currency exchange differences | 29 | |
Balance | $ (12,464) | $ (8,464) |
Schedule of Long Term Borrowing
Schedule of Long Term Borrowings (Detail) $ in Thousands, $ in Thousands | Dec. 31, 2020CAD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019CAD ($) | Dec. 31, 2019USD ($) |
Disclosure of long term debt [Line Items] | ||||
Long-term debt, gross | $ 1,249,153 | $ 981,151 | $ 1,445,127 | $ 1,112,895 |
Less net unamortized debt issue costs | (12,943) | (17,946) | ||
Long-term debt | 1,236,210 | 1,427,181 | ||
Senior Credit Facility [Member] | ||||
Disclosure of long term debt [Line Items] | ||||
Long-term debt, gross | 95,041 | 74,650 | ||
Real Estate Credit Facility [Member] | ||||
Disclosure of long term debt [Line Items] | ||||
Current portion of long-term debt, gross | 896 | 704 | ||
Long-term debt, gross | 12,474 | 9,797 | ||
6.5% Senior Notes Due 2021 [Member] | ||||
Disclosure of long term debt [Line Items] | ||||
Long-term debt, gross | 117,678 | 90,625 | ||
7.75% Senior Notes Due 2023 [Member] | ||||
Disclosure of long term debt [Line Items] | ||||
Long-term debt, gross | 363,782 | 285,734 | 447,792 | 344,845 |
5.25% Senior Notes Due 2024 [Member] | ||||
Disclosure of long term debt [Line Items] | ||||
Long-term debt, gross | 335,099 | 263,205 | 399,545 | 307,690 |
7.125% Senior Notes Due 2026 [Member] | ||||
Disclosure of long term debt [Line Items] | ||||
Long-term debt, gross | $ 442,757 | $ 347,765 | $ 480,112 | $ 369,735 |
Schedule of Long Term Borrowi_2
Schedule of Long Term Borrowings (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2020 | |
6.5% Senior Notes Due 2021 [Member] | |
Disclosure of long term debt [Line Items] | |
Long term debt interest rate | 6.50% |
Long term debt maturity year | December 15, 2021 |
7.75% Senior Notes Due 2023 [Member] | |
Disclosure of long term debt [Line Items] | |
Long term debt interest rate | 7.75% |
Long term debt maturity year | December 15, 2023 |
5.25% Senior Notes Due 2024 [Member] | |
Disclosure of long term debt [Line Items] | |
Long term debt interest rate | 5.25% |
Long term debt maturity year | November 15, 2024 |
7.125% Senior Notes Due 2026 [Member] | |
Disclosure of long term debt [Line Items] | |
Long term debt interest rate | 7.125% |
Long term debt maturity year | January 15, 2026 |
Summary of Changes in Long Term
Summary of Changes in Long Term Borrowings (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of long term debt [Line Items] | ||
Beginning balance | $ 1,427,181 | $ 1,706,253 |
Redemption / repurchase of unsecured senior notes | (240,793) | (198,387) |
Repayment of long-term debt | (37,319) | |
Proceeds from Senior Credit Facility | 137,255 | |
Proceeds from Real Estate Credit Facility | 13,811 | |
Addition of debt issue costs | (354) | |
Non-cash changes: | ||
Gain on redemption and repurchase of unsecured senior notes | (43,814) | (6,815) |
Amortization of debt issue costs | 5,350 | 5,152 |
Foreign exchange adjustment | (24,211) | (79,022) |
Reclassified to current portion of long-term debt | (896) | |
Ending balance | 1,236,210 | 1,427,181 |
Senior Credit Facility [Member] | ||
Disclosure of long term debt [Line Items] | ||
Repayment of long-term debt | (37,243) | |
Proceeds from Senior Credit Facility | 137,255 | |
Non-cash changes: | ||
Foreign exchange adjustment | (4,971) | |
Ending balance | 95,041 | |
Unsecured Senior Notes [Member] | ||
Disclosure of long term debt [Line Items] | ||
Beginning balance | 1,445,127 | 1,729,351 |
Redemption / repurchase of unsecured senior notes | (240,793) | (198,387) |
Non-cash changes: | ||
Gain on redemption and repurchase of unsecured senior notes | (43,814) | (6,815) |
Foreign exchange adjustment | (18,882) | (79,022) |
Ending balance | 1,141,638 | 1,445,127 |
Real Estate Credit Facility [Member] | ||
Disclosure of long term debt [Line Items] | ||
Repayment of long-term debt | (76) | |
Proceeds from Real Estate Credit Facility | 13,811 | |
Non-cash changes: | ||
Foreign exchange adjustment | (365) | |
Reclassified to current portion of long-term debt | (896) | |
Ending balance | 12,474 | |
Debt Issue Costs [Member] | ||
Disclosure of long term debt [Line Items] | ||
Beginning balance | (17,946) | (23,098) |
Addition of debt issue costs | (354) | |
Non-cash changes: | ||
Amortization of debt issue costs | 5,350 | 5,152 |
Foreign exchange adjustment | 7 | |
Ending balance | $ (12,943) | $ (17,946) |
Long-Term Debt Maturities (Deta
Long-Term Debt Maturities (Detail) $ in Thousands, $ in Thousands | Dec. 31, 2020CAD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019CAD ($) | Dec. 31, 2019USD ($) |
Disclosure of maturity analysis for non-derivative financial liabilities [Line Items] | ||||
Long-term debt, gross | $ 1,249,153 | $ 981,151 | $ 1,445,127 | $ 1,112,895 |
Long-term debt current and non-current, gross | 1,250,049 | |||
2021 [Member] | ||||
Disclosure of maturity analysis for non-derivative financial liabilities [Line Items] | ||||
Long-term debt, gross | 896 | |||
2022 [Member] | ||||
Disclosure of maturity analysis for non-derivative financial liabilities [Line Items] | ||||
Long-term debt, gross | 896 | |||
2023 [Member] | ||||
Disclosure of maturity analysis for non-derivative financial liabilities [Line Items] | ||||
Long-term debt, gross | 459,719 | |||
2024 [Member] | ||||
Disclosure of maturity analysis for non-derivative financial liabilities [Line Items] | ||||
Long-term debt, gross | 335,995 | |||
Thereafter [Member] | ||||
Disclosure of maturity analysis for non-derivative financial liabilities [Line Items] | ||||
Long-term debt, gross | $ 452,543 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
Nov. 30, 2020USD ($) | Dec. 31, 2020CAD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019CAD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Disclosure of long term debt [Line Items] | |||||||
Description of compliance with covenants | The unsecured senior notes require Precision to comply with certain restrictive and financial covenants including an incurrence based test of Consolidated Interest Coverage Ratio, as defined in the senior note agreements, of greater than or equal to 2.0:1 for the most recent four consecutive fiscal quarters. In the event the Consolidated Interest Coverage Ratio is less than 2.0:1 for the most recent four consecutive fiscal quarters the senior notes restrict Precision’s ability to incur additional indebtedness. | The unsecured senior notes require Precision to comply with certain restrictive and financial covenants including an incurrence based test of Consolidated Interest Coverage Ratio, as defined in the senior note agreements, of greater than or equal to 2.0:1 for the most recent four consecutive fiscal quarters. In the event the Consolidated Interest Coverage Ratio is less than 2.0:1 for the most recent four consecutive fiscal quarters the senior notes restrict Precision’s ability to incur additional indebtedness. | |||||
Maximum Consolidated Interest Coverage Ratio to incur additional indebtedness | 200.00% | 200.00% | |||||
Description of compliance with covenants | The unsecured senior notes also contain a restricted payments covenant that limits Precision’s ability to make payments in the nature of dividends, distributions and for repurchases from shareholders. This restricted payments basket grows by, among other things, 50% of cumulative consolidated net earnings, and decreases by 100% of cumulative consolidated net losses as defined in the note agreements, and cumulative payments made to shareholders. At December 31, 2020, the governing net restricted payments basket was negative $307 million (2019 – negative $517 million), therefore limiting us from making any further dividend payments or share repurchases until the governing restricted payments basket once again becomes positive. During 2020, pursuant to the indentures governing the unsecured senior notes, Precision used the available general restricted payments basket to facilitate the repurchase and cancellation of its common shares. | The unsecured senior notes also contain a restricted payments covenant that limits Precision’s ability to make payments in the nature of dividends, distributions and for repurchases from shareholders. This restricted payments basket grows by, among other things, 50% of cumulative consolidated net earnings, and decreases by 100% of cumulative consolidated net losses as defined in the note agreements, and cumulative payments made to shareholders. At December 31, 2020, the governing net restricted payments basket was negative $307 million (2019 – negative $517 million), therefore limiting us from making any further dividend payments or share repurchases until the governing restricted payments basket once again becomes positive. During 2020, pursuant to the indentures governing the unsecured senior notes, Precision used the available general restricted payments basket to facilitate the repurchase and cancellation of its common shares. | |||||
Net restricted payments basket | $ (307,000) | $ (517,000) | |||||
Proportion of ownership interest in subsidiary | 100.00% | 100.00% | |||||
Senior Credit Facility [Member] | |||||||
Disclosure of long term debt [Line Items] | |||||||
Borrowings maximum borrowing capacity | $ 500,000,000 | ||||||
Adjusted EBITDA to interest expense coverage ratio | 250.00% | 250.00% | |||||
Credit facility amount withdrawn | 75,000,000 | ||||||
Borrowings maximum available letters of credit | 200,000,000 | ||||||
Outstanding letters of credit | $ 32,000,000 | $ 25,000,000 | |||||
Senior Credit Facility [Member] | Periods ending December 31, 2019 [Member] | |||||||
Disclosure of long term debt [Line Items] | |||||||
Adjusted EBITDA to interest expense coverage ratio | 250.00% | 250.00% | |||||
Senior Credit Facility [Member] | Periods ending March 31, 2020 [Member] | |||||||
Disclosure of long term debt [Line Items] | |||||||
Adjusted EBITDA to interest expense coverage ratio | 250.00% | 250.00% | |||||
Senior Credit Facility [Member] | Periods ending April 1, 2019 [Member] | |||||||
Disclosure of long term debt [Line Items] | |||||||
Adjusted EBITDA to interest expense coverage ratio | 175.00% | 175.00% | |||||
Senior Credit Facility [Member] | Future Assets [Member] | |||||||
Disclosure of long term debt [Line Items] | |||||||
Borrowings additional borrowing capacity | 300,000,000 | ||||||
Real Estate Credit Facility [Member] | |||||||
Disclosure of long term debt [Line Items] | |||||||
Credit facility amount withdrawn | $ 11,000,000 | ||||||
Borrowing capacity | $ 11,000,000 | ||||||
Facility maturity period | 2025-11 | 2025-11 | |||||
Amortization period of principal and interest payments | 15 years | ||||||
Minimum threshold to consolidated interest coverage ratio | 115.00% | ||||||
7.75% Senior Notes Due 2023 [Member] | |||||||
Disclosure of long term debt [Line Items] | |||||||
Interest rate | 7.75% | 7.75% | |||||
Maturity date | December 15, 2023 | December 15, 2023 | |||||
Borrowings frequency of periodic payments | Interest is payable semi-annually on June15 and December15 of each year. | Interest is payable semi-annually on June15 and December15 of each year. | |||||
Repurchased and cancelled | $ 59,000,000 | $ 5,000,000 | |||||
Gain on repurchase | $ 18 | ||||||
7.75% Senior Notes Due 2023 [Member] | Any time on or after December 15, 2021 [Member] | |||||||
Disclosure of long term debt [Line Items] | |||||||
Redemption price percentage | 101.00% | 101.00% | |||||
7.75% Senior Notes Due 2023 [Member] | Bottom Of Range [Member] | Precision may redeem these notes in whole or in part at any time on or after December 15, 2019 and before December 15, 2021 [Member] | |||||||
Disclosure of long term debt [Line Items] | |||||||
Redemption price percentage | 101.938% | 101.938% | |||||
7.75% Senior Notes Due 2023 [Member] | Top of Range [Member] | Precision may redeem these notes in whole or in part at any time on or after December 15, 2019 and before December 15, 2021 [Member] | |||||||
Disclosure of long term debt [Line Items] | |||||||
Redemption price percentage | 103.875% | 103.875% | |||||
6.5% Senior Notes Due 2021 [Member] | |||||||
Disclosure of long term debt [Line Items] | |||||||
Interest rate | 6.50% | 6.50% | |||||
Maturity date | December 15, 2021 | December 15, 2021 | |||||
Repurchased and cancelled | $ 3,000,000 | ||||||
Gain on repurchase | $ 1,000,000 | 1,000,000 | |||||
Redemptions of unsecured seniors | $ 88,000,000 | $ 75,000,000 | |||||
6.5% Senior Notes Due 2021 [Member] | After December 15, 2019 [Member] | |||||||
Disclosure of long term debt [Line Items] | |||||||
Redemption price percentage | 101.00% | 101.00% | |||||
5.25% Senior Notes Due 2024 [Member] | |||||||
Disclosure of long term debt [Line Items] | |||||||
Interest rate | 5.25% | 5.25% | |||||
Maturity date | November 15, 2024 | November 15, 2024 | |||||
Borrowings frequency of periodic payments | Interest is payable semi-annually on May 15 and November 15 of each year. | Interest is payable semi-annually on May 15 and November 15 of each year. | |||||
Repurchased and cancelled | $ 44,000,000 | 43,000,000 | |||||
Gain on repurchase | $ 16,000 | 5,000 | |||||
5.25% Senior Notes Due 2024 [Member] | Any time on or after May 15, 2022 [Member] | |||||||
Disclosure of long term debt [Line Items] | |||||||
Redemption price percentage | 101.00% | 101.00% | |||||
5.25% Senior Notes Due 2024 [Member] | Top of Range [Member] | Precision may redeem these notes in whole or in part at any time on or after May 15, 2019 and before May 15, 2022 [Member] | |||||||
Disclosure of long term debt [Line Items] | |||||||
Redemption price percentage | 102.625% | 102.625% | |||||
5.25% Senior Notes Due 2024 [Member] | Events After Reporting Period [Member] | Bottom Of Range [Member] | Precision may redeem these notes in whole or in part at any time on or after May 15, 2019 and before May 15, 2022 [Member] | |||||||
Disclosure of long term debt [Line Items] | |||||||
Redemption price percentage | 100.875% | 100.875% | |||||
7.125% Senior Notes Due 2026 [Member] | |||||||
Disclosure of long term debt [Line Items] | |||||||
Interest rate | 7.125% | 7.125% | |||||
Maturity date | January 15, 2026 | January 15, 2026 | |||||
Borrowings frequency of periodic payments | Interest is payable semi-annually on January 15 and July 15 of each year, commencing July 15, 2018. | Interest is payable semi-annually on January 15 and July 15 of each year, commencing July 15, 2018. | |||||
Repurchased and cancelled | $ 22,000,000 | $ 30,000,000 | |||||
Gain on repurchase | $ 9,000 | $ 1,000 | |||||
7.125% Senior Notes Due 2026 [Member] | Prior to November 15, 2020, Precision may redeem up to 35% of the 7.125% senior notes due 2026 [Member] | |||||||
Disclosure of long term debt [Line Items] | |||||||
Redemption price percentage | 107.125% | 107.125% | |||||
Borrowings maximum percentage of principal amount redeemed | 35.00% | 35.00% | |||||
7.125% Senior Notes Due 2026 [Member] | Prior to November 15, 2020, Precision may redeem these notes in whole or in part [Member] | |||||||
Disclosure of long term debt [Line Items] | |||||||
Redemption price percentage | 100.00% | 100.00% | |||||
7.125% Senior Notes Due 2026 [Member] | Any time on or after November 15, 2023 [Member] | |||||||
Disclosure of long term debt [Line Items] | |||||||
Redemption price percentage | 101.00% | 101.00% | |||||
7.125% Senior Notes Due 2026 [Member] | Bottom Of Range [Member] | Precision may redeem these notes in whole or in part at any time on or after November 15, 2020 and before November 15, 2022 [Member] | |||||||
Disclosure of long term debt [Line Items] | |||||||
Redemption price percentage | 101.781% | 101.781% | |||||
7.125% Senior Notes Due 2026 [Member] | Top of Range [Member] | Precision may redeem these notes in whole or in part at any time on or after November 15, 2020 and before November 15, 2022 [Member] | |||||||
Disclosure of long term debt [Line Items] | |||||||
Redemption price percentage | 105.344% | 105.344% |
Schedule of Listing of Currentl
Schedule of Listing of Currently Applicable Restrictive and Financial Covenants (Detail) | 12 Months Ended |
Dec. 31, 2020 | |
Senior Credit Facility [Member] | |
Disclosure of long term debt [Line Items] | |
Consolidated senior debt to consolidated covenant EBITDA(1) | 0.23% |
Consolidated covenant EBITDA to consolidated interest expense | 2.68% |
Senior Credit Facility [Member] | Top of Range [Member] | |
Disclosure of long term debt [Line Items] | |
Consolidated senior debt to consolidated covenant EBITDA(1) | 2.50% |
Senior Credit Facility [Member] | Bottom Of Range [Member] | |
Disclosure of long term debt [Line Items] | |
Consolidated covenant EBITDA to consolidated interest expense | 1.75% |
Real Estate Credit Facility [Member] | |
Disclosure of long term debt [Line Items] | |
Consolidated covenant EBITDA to consolidated interest expense | 2.68% |
Real Estate Credit Facility [Member] | Bottom Of Range [Member] | |
Disclosure of long term debt [Line Items] | |
Consolidated covenant EBITDA to consolidated interest expense | 1.75% |
Unsecured Senior Notes [Member] | |
Disclosure of long term debt [Line Items] | |
Consolidated interest coverage ratio | 2.57% |
Unsecured Senior Notes [Member] | Bottom Of Range [Member] | |
Disclosure of long term debt [Line Items] | |
Consolidated interest coverage ratio | 2.00% |
Restructuring and Other - Addit
Restructuring and Other - Additional Information (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure Of Restructuring And Other [Line Items] | ||
Restructuring charge | $ 18,061 | $ 6,438 |
Canadian Emergency Wage Subsidy Program [Member] | ||
Disclosure Of Restructuring And Other [Line Items] | ||
Salary and wage subsidies | 26,000 | |
Operating expense reduction due to wage subsidies | 21,000 | |
General and administrative expense reduction due to wage subsidies | $ 5,000 |
Summary of Finance Charges (Det
Summary of Finance Charges (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Interest: | ||
Long-term debt | $ 98,555 | $ 110,730 |
Lease obligations | 3,217 | 3,389 |
Other | 232 | 21 |
Income | (739) | (1,576) |
Amortization of debt issue costs | 6,203 | 5,889 |
Finance charges | $ 107,468 | $ 118,453 |
Summary of Right-of-Use-Assets
Summary of Right-of-Use-Assets (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure Of Quantitative Information About Rightofuse Assets [Line Items] | ||
Beginning Balance | $ 66,142 | $ 0 |
Transition adjustments | 73,464 | |
Additions | 3,167 | 1,947 |
Derecognition | (2,597) | (29) |
Depreciation | (7,417) | (8,458) |
Lease remeasurements | (3,631) | 163 |
Effect of foreign currency exchange differences | (496) | (945) |
Ending Balance | 55,168 | 66,142 |
Real Estate [member] | ||
Disclosure Of Quantitative Information About Rightofuse Assets [Line Items] | ||
Beginning Balance | 54,026 | 0 |
Transition adjustments | 58,635 | |
Additions | 136 | 0 |
Derecognition | 0 | (29) |
Depreciation | (3,900) | (4,055) |
Lease remeasurements | (6,233) | 163 |
Effect of foreign currency exchange differences | (340) | (688) |
Ending Balance | 43,689 | 54,026 |
Vehicles and Equipment [Member] | ||
Disclosure Of Quantitative Information About Rightofuse Assets [Line Items] | ||
Beginning Balance | 12,116 | 0 |
Transition adjustments | 14,829 | |
Additions | 3,031 | 1,947 |
Derecognition | (2,597) | 0 |
Depreciation | (3,517) | (4,403) |
Lease remeasurements | 2,602 | 0 |
Effect of foreign currency exchange differences | (156) | (257) |
Ending Balance | $ 11,479 | $ 12,116 |
Leases - Additional Information
Leases - Additional Information (Detail) - CAD ($) $ in Millions | Jan. 01, 2019 | Dec. 31, 2020 | Dec. 31, 2019 |
Leases Disclosure [Line Items] | |||
Cash outflow in relation to lease obligation | $ 9 | $ 10 | |
Deferred base rent balance | $ 3 | ||
Real Estate [member] | Bottom Of Range [Member] | |||
Leases Disclosure [Line Items] | |||
Terms of operating lease commitments | 1 year | ||
Real Estate [member] | Top of Range [Member] | |||
Leases Disclosure [Line Items] | |||
Terms of operating lease commitments | 10 years | ||
Vehicles [member] | Bottom Of Range [Member] | |||
Leases Disclosure [Line Items] | |||
Terms of operating lease commitments | 3 years | ||
Vehicles [member] | Top of Range [Member] | |||
Leases Disclosure [Line Items] | |||
Terms of operating lease commitments | 4 years | ||
Rig Equipment [Member] | |||
Leases Disclosure [Line Items] | |||
Long-term drilling contracts | $ 477 | $ 1,000 | |
Rig Equipment [Member] | Bottom Of Range [Member] | |||
Leases Disclosure [Line Items] | |||
Term of operating leases under long term drilling contracts | 1 year | ||
Rig Equipment [Member] | Top of Range [Member] | |||
Leases Disclosure [Line Items] | |||
Term of operating leases under long term drilling contracts | 5 years |
Expected Non-cancellable Undisc
Expected Non-cancellable Undiscounted Operating Lease Payments (Detail) - CAD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of finance lease and operating lease by lessee [Line Items] | ||
Non-cancellable undiscounted operating lease | $ 47,180 | $ 56,637 |
Less than one year [member] | ||
Disclosure of finance lease and operating lease by lessee [Line Items] | ||
Non-cancellable undiscounted operating lease | 10,960 | 11,954 |
One to five years [member] | ||
Disclosure of finance lease and operating lease by lessee [Line Items] | ||
Non-cancellable undiscounted operating lease | 29,630 | 33,566 |
More than five years [member] | ||
Disclosure of finance lease and operating lease by lessee [Line Items] | ||
Non-cancellable undiscounted operating lease | $ 6,590 | $ 11,117 |
Summary of Maturity Analysis of
Summary of Maturity Analysis of Lease Payments (Detail) $ in Thousands | Dec. 31, 2020CAD ($) |
Disclosure of finance lease and operating lease by lessee [Line Items] | |
Undiscounted lease payments | $ 284,355 |
Less than one year [member] | |
Disclosure of finance lease and operating lease by lessee [Line Items] | |
Undiscounted lease payments | 182,139 |
One to five years [member] | |
Disclosure of finance lease and operating lease by lessee [Line Items] | |
Undiscounted lease payments | $ 102,216 |
Disclosure of Deferred Base Ren
Disclosure of Deferred Base Rent Balance Under Straight-line Amortize Over Lease Term (Detail) - CAD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Presentation Of Leases For Lessee [Abstract] | ||||
Right-of-use asset | $ 55,168 | $ 66,142 | $ 73,464 | $ 0 |
Accounts payable and accrued liabilities | 150,957 | 199,478 | 2,800 | |
Lease obligations | (73,464) | |||
Deficit | $ (1,089,594) | $ (969,456) | $ (2,800) |
Share Based Compensation Plan_2
Share Based Compensation Plans - Additional Information (Detail) | Nov. 12, 2020 | Mar. 31, 2020CAD ($) | Dec. 31, 2020CAD ($)shares | Dec. 31, 2019CAD ($)sharesYear | Dec. 31, 2018CAD ($) |
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | |||||
Share consolidation ratio | 20 | ||||
Share based compensation charge reclassified as financial liability | $ 19,817,000 | $ 13,512,000 | $ 12,411,000 | ||
Net earnings (loss) | $ (120,138,000) | 6,618,000 | |||
Option vesting period | 3 years | ||||
Option expiration term | 7 years | ||||
Options granted | shares | 0 | ||||
Weighted average fair value of share options granted | $ 30.80 | ||||
Average risk-free interest rate | 2.50% | ||||
Average expected life | Year | 4 | ||||
Expected forfeiture rate | 5.00% | ||||
Expected volatility | 57.00% | ||||
Stock-based compensation expense | $ (4,355,000) | $ (8,193,000) | |||
Restricted Share Units (RSUs) [Member] | |||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | |||||
Shares granted to eligible employees vest term | 3 years | ||||
Share based compensation charge reclassified as financial liability | $ 6,624,000 | 7,318,000 | 5,409,000 | ||
Stock-based compensation expense | $ (3,119,000) | (5,755,000) | |||
Performance Share Units (PSUs) [Member] | |||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | |||||
Shares granted to eligible employees vest term | 3 years | ||||
Share based compensation charge reclassified as financial liability | $ 4,751,000 | 2,858,000 | $ 4,521,000 | ||
Stock-based compensation expense | (2,787,000) | (1,583,000) | |||
Executive Performance Share Units [Member] | |||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | |||||
Share based compensation charge reclassified as financial liability | $ 6,833,000 | ||||
Share unit vesting period | 3 years | ||||
Reclassified previously expensed share-based compensation charges | $ 1,000,000 | ||||
Net earnings (loss) | $ 15,000,000 | $ 12,000,000 | |||
U.S. Share Options [Member] | |||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | |||||
Options granted | shares | 29,965 | ||||
Stock-based compensation expense | $ 1,000,000 | $ 2,000,000 |
Disclosure of Liability Classif
Disclosure of Liability Classified Plans (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||
Beginning balance | $ 13,512 | $ 12,411 |
Expensed during the period | 4,355 | 8,193 |
Reclassification from equity-settled plans | 6,833 | |
Payments | (4,883) | (7,092) |
Ending balance | 19,817 | 13,512 |
Current | 8,310 | |
Long-term | 11,507 | 8,830 |
Restricted Share Units (RSUs) [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||
Beginning balance | 7,318 | 5,409 |
Expensed during the period | 3,119 | 5,755 |
Payments | (3,813) | (3,846) |
Ending balance | 6,624 | 7,318 |
Current | 4,212 | |
Long-term | 2,412 | |
Performance Share Units (PSUs) [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||
Beginning balance | 2,858 | 4,521 |
Expensed during the period | 2,787 | 1,583 |
Payments | (894) | (3,246) |
Ending balance | 4,751 | 2,858 |
Current | 1,120 | |
Long-term | 3,631 | |
Executive Performance Share Units [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||
Reclassification from equity-settled plans | 6,833 | |
Ending balance | 6,833 | |
Current | 2,978 | |
Long-term | 3,855 | |
Deferred Share Units (DSUs) [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||
Beginning balance | 3,336 | 2,481 |
Expensed during the period | (1,551) | 855 |
Payments | (176) | |
Ending balance | 1,609 | $ 3,336 |
Long-term | $ 1,609 |
Summary of Shares Outstanding U
Summary of Shares Outstanding Under Share Based Incentive Plans (Detail) - shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Equity-Settled Plans [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||
Beginning balance | 4,659 | 4,659 |
Redeemed | (3,189) | |
Ending balance | 1,470 | 4,659 |
Restricted Share Units (RSUs) [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||
Beginning balance | 316,904 | 202,796 |
Granted | 363,253 | 209,368 |
Redeemed | (127,884) | (75,284) |
Forfeited | (67,491) | (19,976) |
Ending balance | 484,782 | 316,904 |
Performance Share Units (PSUs) [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||
Beginning balance | 166,768 | 227,150 |
Granted | 502,558 | 101,945 |
Redeemed | (39,028) | (66,138) |
Forfeited | (64,919) | (96,189) |
Ending balance | 565,379 | 166,768 |
Executive Performance Share Units [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||
Beginning balance | 368,845 | 159,553 |
Granted | 210,580 | |
Redeemed | (57,442) | |
Forfeited | (22,696) | (1,288) |
Ending balance | 288,707 | 368,845 |
Deferred Share Units (DSUs) [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||
Beginning balance | 89,613 | 52,682 |
Granted | 36,931 | |
Redeemed | (12,039) | |
Ending balance | 77,574 | 89,613 |
Summary of Status of Equity Inc
Summary of Status of Equity Incentive Plan (Detail) | 12 Months Ended | ||||
Dec. 31, 2020shares$ / shares | Dec. 31, 2020shares$ / shares | Dec. 31, 2019shares$ / shares | Dec. 31, 2019shares$ / shares | Dec. 31, 2018shares | |
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | |||||
Options Outstanding, Granted | shares | 0 | 0 | |||
Canadian Share Options [Member] | |||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | |||||
Options Outstanding, Beginning balance | shares | 201,079 | 201,079 | 236,658 | 236,658 | |
Options Outstanding, Forfeited | shares | (52,414) | (52,414) | (35,579) | (35,579) | |
Options Outstanding, Ending balance | shares | 148,665 | 148,665 | 201,079 | 201,079 | |
Weighted Average Exercise Price, Beginning balance | $ 145.88 | $ 155.56 | |||
Weighted Average Exercise Price, Forfeitures | 165.79 | 210.29 | |||
Weighted Average Exercise Price, Ending balance | $ 138.86 | $ 145.88 | |||
Options exercisable | shares | 141,156 | 141,156 | 178,453 | 178,453 | 189,324 |
Canadian Share Options [Member] | Top of Range [Member] | |||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | |||||
Range of Exercise Prices, Beginning balance | $ 286.20 | $ 286.20 | |||
Range of Exercise Prices, Forfeitures | 203 | 213.40 | |||
Range of Exercise Prices, Ending balance | 286.20 | 286.20 | |||
Canadian Share Options [Member] | Bottom Of Range [Member] | |||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | |||||
Range of Exercise Prices, Beginning balance | 87 | 87 | |||
Range of Exercise Prices, Forfeitures | 87 | 143 | |||
Range of Exercise Prices, Ending balance | $ 87 | $ 87 | |||
U.S. Share Options [Member] | |||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | |||||
Options Outstanding, Beginning balance | shares | 318,153 | 318,153 | 303,293 | 303,293 | |
Options Outstanding, Granted | shares | 29,965 | 29,965 | |||
Options Outstanding, Forfeited | shares | (34,360) | (34,360) | (15,105) | (15,105) | |
Options Outstanding, Ending balance | shares | 283,793 | 283,793 | 318,153 | 318,153 | |
Weighted Average Exercise Price, Beginning balance | $ 93.32 | $ 103.47 | |||
Weighted Average Exercise Price, Granted | 51.20 | ||||
Weighted Average Exercise Price, Forfeitures | 151.92 | 213.54 | |||
Weighted Average Exercise Price, Ending balance | $ 86.23 | $ 93.32 | |||
Options exercisable | shares | 239,521 | 239,521 | 217,441 | 217,441 | 161,204 |
U.S. Share Options [Member] | Top of Range [Member] | |||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | |||||
Range of Exercise Prices, Beginning balance | $ 183.60 | $ 214.80 | |||
Range of Exercise Prices, Granted | 51.20 | ||||
Range of Exercise Prices, Forfeitures | 183.60 | 214.80 | |||
Range of Exercise Prices, Ending balance | 183.60 | 183.60 | |||
U.S. Share Options [Member] | Bottom Of Range [Member] | |||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | |||||
Range of Exercise Prices, Beginning balance | 51.20 | 64.20 | |||
Range of Exercise Prices, Granted | 51.20 | ||||
Range of Exercise Prices, Forfeitures | 64.20 | 155.80 | |||
Range of Exercise Prices, Ending balance | $ 51.20 | $ 51.20 |
Range of Exercise Prices for Op
Range of Exercise Prices for Options Outstanding (Detail) | 12 Months Ended | |||||
Dec. 31, 2020shares$ / shares | Dec. 31, 2020shares$ / shares | Dec. 31, 2019shares$ / shares | Dec. 31, 2019shares$ / shares | Dec. 31, 2018shares$ / shares | Dec. 31, 2018shares$ / shares | |
Canadian Share Options [Member] | ||||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||||||
Total options outstanding, Number | shares | 148,665 | 148,665 | 201,079 | 201,079 | 236,658 | 236,658 |
Total options outstanding, Weighted average exercise price | $ 138.86 | $ 145.88 | $ 155.56 | |||
Options exercisable, Number | shares | 141,156 | 141,156 | 178,453 | 178,453 | 189,324 | 189,324 |
Canadian Share Options [Member] | 87.00 – 139.99 Range of Exercise Prices [Member] | ||||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||||||
Total options outstanding, Number | shares | 47,970 | 47,970 | ||||
Total options outstanding, Weighted average exercise price | $ 88.17 | |||||
Total options outstanding, Weighted average remaining contractual life (years) | 3 years 1 month 2 days | |||||
Options exercisable, Number | shares | 40,461 | 40,461 | ||||
Options exercisable, Weighted average exercise price | $ 88.38 | |||||
Canadian Share Options [Member] | 87.00 – 139.99 Range of Exercise Prices [Member] | Top of Range [Member] | ||||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||||||
Total options outstanding, Range of exercise prices | 87 | |||||
Canadian Share Options [Member] | 87.00 – 139.99 Range of Exercise Prices [Member] | Bottom Of Range [Member] | ||||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||||||
Total options outstanding, Range of exercise prices | $ 139.99 | |||||
Canadian Share Options [Member] | 140.00 – 279.99 Range of Exercise Prices [Member] | ||||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||||||
Total options outstanding, Number | shares | 99,710 | 99,710 | ||||
Total options outstanding, Weighted average exercise price | $ 161.80 | |||||
Total options outstanding, Weighted average remaining contractual life (years) | 1 year 2 months 8 days | |||||
Options exercisable, Number | shares | 99,710 | 99,710 | ||||
Options exercisable, Weighted average exercise price | $ 161.80 | |||||
Canadian Share Options [Member] | 140.00 – 279.99 Range of Exercise Prices [Member] | Top of Range [Member] | ||||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||||||
Total options outstanding, Range of exercise prices | 140 | |||||
Canadian Share Options [Member] | 140.00 – 279.99 Range of Exercise Prices [Member] | Bottom Of Range [Member] | ||||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||||||
Total options outstanding, Range of exercise prices | $ 279.99 | |||||
Canadian Share Options [Member] | 280.00 – 286.20 Range of Exercise Prices [Member] | ||||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||||||
Total options outstanding, Number | shares | 985 | 985 | ||||
Total options outstanding, Weighted average exercise price | $ 286.20 | |||||
Total options outstanding, Weighted average remaining contractual life (years) | 4 months 2 days | |||||
Options exercisable, Number | shares | 985 | 985 | ||||
Options exercisable, Weighted average exercise price | $ 286.20 | |||||
Canadian Share Options [Member] | 280.00 – 286.20 Range of Exercise Prices [Member] | Top of Range [Member] | ||||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||||||
Total options outstanding, Range of exercise prices | 280 | |||||
Canadian Share Options [Member] | 280.00 – 286.20 Range of Exercise Prices [Member] | Bottom Of Range [Member] | ||||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||||||
Total options outstanding, Range of exercise prices | $ 286.20 | |||||
Canadian Share Options [Member] | 87.00 – 286.20 Range of Exercise Prices [Member] | ||||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||||||
Total options outstanding, Number | shares | 148,665 | 148,665 | ||||
Total options outstanding, Weighted average exercise price | $ 138.86 | |||||
Total options outstanding, Weighted average remaining contractual life (years) | 1 year 9 months 18 days | |||||
Options exercisable, Number | shares | 141,156 | 141,156 | ||||
Options exercisable, Weighted average exercise price | $ 141.62 | |||||
Canadian Share Options [Member] | 87.00 – 286.20 Range of Exercise Prices [Member] | Top of Range [Member] | ||||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||||||
Total options outstanding, Range of exercise prices | 87 | |||||
Canadian Share Options [Member] | 87.00 – 286.20 Range of Exercise Prices [Member] | Bottom Of Range [Member] | ||||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||||||
Total options outstanding, Range of exercise prices | $ 286.20 | |||||
U.S. Share Options [Member] | ||||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||||||
Total options outstanding, Number | shares | 283,793 | 283,793 | 318,153 | 318,153 | 303,293 | 303,293 |
Total options outstanding, Weighted average exercise price | $ 86.23 | $ 93.32 | $ 103.47 | |||
Options exercisable, Number | shares | 239,521 | 239,521 | 217,441 | 217,441 | 161,204 | 161,204 |
U.S. Share Options [Member] | 51.20 – 79.99 Range of Exercise Prices [Member] | ||||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||||||
Total options outstanding, Number | shares | 176,603 | 176,603 | ||||
Total options outstanding, Weighted average exercise price | $ 64.01 | |||||
Total options outstanding, Weighted average remaining contractual life (years) | 3 years 5 months 26 days | |||||
Options exercisable, Number | shares | 132,331 | 132,331 | ||||
Options exercisable, Weighted average exercise price | $ 65.04 | |||||
U.S. Share Options [Member] | 51.20 – 79.99 Range of Exercise Prices [Member] | Top of Range [Member] | ||||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||||||
Total options outstanding, Range of exercise prices | 51.20 | |||||
U.S. Share Options [Member] | 51.20 – 79.99 Range of Exercise Prices [Member] | Bottom Of Range [Member] | ||||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||||||
Total options outstanding, Range of exercise prices | $ 79.99 | |||||
U.S. Share Options [Member] | 80.00 – 139.99 Range of Exercise Prices [Member] | ||||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||||||
Total options outstanding, Number | shares | 91,240 | 91,240 | ||||
Total options outstanding, Weighted average exercise price | $ 112.21 | |||||
Total options outstanding, Weighted average remaining contractual life (years) | 2 years 4 months 17 days | |||||
Options exercisable, Number | shares | 91,240 | 91,240 | ||||
Options exercisable, Weighted average exercise price | $ 112.21 | |||||
U.S. Share Options [Member] | 80.00 – 139.99 Range of Exercise Prices [Member] | Top of Range [Member] | ||||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||||||
Total options outstanding, Range of exercise prices | 80 | |||||
U.S. Share Options [Member] | 80.00 – 139.99 Range of Exercise Prices [Member] | Bottom Of Range [Member] | ||||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||||||
Total options outstanding, Range of exercise prices | $ 139.99 | |||||
U.S. Share Options [Member] | 140.00 – 183.60 Range of Exercise Prices [Member] | ||||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||||||
Total options outstanding, Number | shares | 15,950 | 15,950 | ||||
Total options outstanding, Weighted average exercise price | $ 183.60 | |||||
Total options outstanding, Weighted average remaining contractual life (years) | 1 month 13 days | |||||
Options exercisable, Number | shares | 15,950 | 15,950 | ||||
Options exercisable, Weighted average exercise price | $ 183.60 | |||||
U.S. Share Options [Member] | 140.00 – 183.60 Range of Exercise Prices [Member] | Top of Range [Member] | ||||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||||||
Total options outstanding, Range of exercise prices | 140 | |||||
U.S. Share Options [Member] | 140.00 – 183.60 Range of Exercise Prices [Member] | Bottom Of Range [Member] | ||||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||||||
Total options outstanding, Range of exercise prices | $ 183.60 | |||||
U.S. Share Options [Member] | 51.20 – 183.60 Range of Exercise Prices [Member] | ||||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||||||
Total options outstanding, Number | shares | 283,793 | 283,793 | ||||
Total options outstanding, Weighted average exercise price | $ 86.23 | |||||
Total options outstanding, Weighted average remaining contractual life (years) | 2 years 11 months 8 days | |||||
Options exercisable, Number | shares | 239,521 | 239,521 | ||||
Options exercisable, Weighted average exercise price | $ 90.90 | |||||
U.S. Share Options [Member] | 51.20 – 183.60 Range of Exercise Prices [Member] | Top of Range [Member] | ||||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||||||
Total options outstanding, Range of exercise prices | 51.20 | |||||
U.S. Share Options [Member] | 51.20 – 183.60 Range of Exercise Prices [Member] | Bottom Of Range [Member] | ||||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||||||
Total options outstanding, Range of exercise prices | $ 183.60 |
Schedule of Provision for Incom
Schedule of Provision for Income Taxes (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation Of Changes In Deferred Tax Liability Asset [Abstract] | ||
Loss before income taxes | $ (109,184) | $ (8,339) |
Federal and provincial statutory rates | 25.00% | 27.00% |
Tax at statutory rates | $ (27,296) | $ (2,252) |
Adjusted for the effect of: | ||
Non-deductible expenses | 628 | 1,597 |
Non-taxable capital gains | (6,184) | (1,408) |
Impact of foreign tax rates | (238) | (13,549) |
Withholding taxes | 813 | 1,262 |
Taxes related to prior years | (1,531) | (1,975) |
Tax assets not recognized | 44,112 | |
Other | 650 | 1,368 |
Income tax recovery | $ 10,954 | $ (14,957) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - CAD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure Of Temporary Difference Unused Tax Losses And Unused Tax Credits [Line Items] | |||
Change in provincial corporate income tax rate | 8.00% | ||
Temporary differences [Member] | International operations [Member] | |||
Disclosure Of Temporary Difference Unused Tax Losses And Unused Tax Credits [Line Items] | |||
Tax effected temporary differences | $ 1 | $ 5 |
Summary of Net Deferred Tax Lia
Summary of Net Deferred Tax Liability (Detail) - CAD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax liability: | ||
Property, plant and equipment and intangibles | $ 393,631 | $ 426,934 |
Debt issue costs | 2,665 | 3,280 |
Partnership deferrals | 2,532 | 850 |
Other | 6,322 | 7,926 |
Deferred income tax liability | 405,150 | 438,990 |
Offsetting of assets and liabilities | (383,914) | (413,601) |
Deferred tax liabilities | 21,236 | 25,389 |
Deferred tax assets: | ||
Losses (expire from time to time up to 2040) | 370,439 | 402,025 |
Long-term incentive plan | 4,956 | 6,131 |
Other | 9,617 | 10,169 |
Deferred income tax asset | 385,012 | 418,325 |
Offsetting of assets and liabilities | (383,914) | (413,601) |
Deferred tax assets | 1,098 | 4,724 |
Net deferred tax liability | $ 20,138 | $ 20,665 |
Summary of Deferred Tax Asset N
Summary of Deferred Tax Asset Not Recognized (Detail) - CAD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure Of Temporary Difference Unused Tax Losses And Unused Tax Credits [Abstract] | ||
Tax losses (Capital) | $ 29,809 | $ 31,033 |
Tax losses (Income) | 72,516 | 33,221 |
Deductible temporary differences | 2,020 | |
Total | $ 104,345 | $ 64,254 |
Summary of Movement in Temporar
Summary of Movement in Temporary Differences of Deferred Tax Liabilities (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure Of Temporary Difference Unused Tax Losses And Unused Tax Credits [Line Items] | ||
Beginning Balance | $ 20,665 | $ 35,899 |
Recognized in net earnings (loss) | 5,664 | (16,037) |
Recognized in other comprehensive income | (5,398) | |
Effect of foreign currency exchange differences | (793) | 803 |
Ending Balance | 20,138 | 20,665 |
Property, Plant and Equipment and Intangibles [member] | ||
Disclosure Of Temporary Difference Unused Tax Losses And Unused Tax Credits [Line Items] | ||
Beginning Balance | 426,934 | 467,109 |
Recognized in net earnings (loss) | (28,600) | (26,825) |
Effect of foreign currency exchange differences | (4,703) | (13,350) |
Ending Balance | 393,631 | 426,934 |
Partnership Deferrals [member] | ||
Disclosure Of Temporary Difference Unused Tax Losses And Unused Tax Credits [Line Items] | ||
Beginning Balance | 850 | 1,730 |
Recognized in net earnings (loss) | 1,682 | (880) |
Ending Balance | 2,532 | 850 |
Other Deferred Tax Liabilities [Member] | ||
Disclosure Of Temporary Difference Unused Tax Losses And Unused Tax Credits [Line Items] | ||
Beginning Balance | 7,926 | 5,722 |
Recognized in net earnings (loss) | (1,601) | 2,216 |
Effect of foreign currency exchange differences | (3) | (12) |
Ending Balance | 6,322 | 7,926 |
Losses [member] | ||
Disclosure Of Temporary Difference Unused Tax Losses And Unused Tax Credits [Line Items] | ||
Beginning Balance | (402,025) | (423,595) |
Recognized in net earnings (loss) | 33,141 | 7,874 |
Recognized in other comprehensive income | (5,398) | |
Effect of foreign currency exchange differences | 3,843 | 13,696 |
Ending Balance | (370,439) | (402,025) |
Debt Issue Costs [Member] | ||
Disclosure Of Temporary Difference Unused Tax Losses And Unused Tax Credits [Line Items] | ||
Beginning Balance | 3,280 | 3,534 |
Recognized in net earnings (loss) | (615) | (254) |
Ending Balance | 2,665 | 3,280 |
Long-Term Incentive Plan [member] | ||
Disclosure Of Temporary Difference Unused Tax Losses And Unused Tax Credits [Line Items] | ||
Beginning Balance | (6,131) | (6,849) |
Recognized in net earnings (loss) | 1,120 | 572 |
Effect of foreign currency exchange differences | 55 | 146 |
Ending Balance | (4,956) | (6,131) |
Other Deferred Tax Liabilities [Member] | ||
Disclosure Of Temporary Difference Unused Tax Losses And Unused Tax Credits [Line Items] | ||
Beginning Balance | (10,169) | (11,752) |
Recognized in net earnings (loss) | 537 | 1,260 |
Effect of foreign currency exchange differences | 15 | 323 |
Ending Balance | $ (9,617) | $ (10,169) |
Bank Indebtedness - Additional
Bank Indebtedness - Additional Information (Detail) | 12 Months Ended | |||
Dec. 31, 2020CAD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019CAD ($) | Dec. 31, 2019USD ($) | |
Disclosure of detailed information about financial instruments [Line Items] | ||||
Description of interest rate | Advances under the $40 million facility are available at the bank’s prime lending rate, U.S. base rate, U.S. LIBOR rate plus applicable margin, or applicable margin for Banker’s Acceptances, or in combination, and under the US$15 million facility at the bank’s prime lending rate | |||
40.0 Million Secured Operating Facilities [Member] | ||||
Disclosure of detailed information about financial instruments [Line Items] | ||||
Line of credit borrowing capacity | $ 40,000,000 | $ 40,000,000 | ||
Line of credit outstanding | 0 | 0 | ||
Letters of credit outstanding | $ 7,000,000 | $ 26,000,000 | ||
15.0 Million Secured Operating Facilities [Member] | ||||
Disclosure of detailed information about financial instruments [Line Items] | ||||
Line of credit borrowing capacity | $ 15,000,000 | $ 15,000,000 | ||
Line of credit outstanding | 0 | 0 | ||
30.0 Million Operating Facilities [member] | ||||
Disclosure of detailed information about financial instruments [Line Items] | ||||
Line of credit borrowing capacity | 30,000,000 | 30,000,000 | ||
Line of credit outstanding | 0 | 0 | ||
Letters of credit outstanding | $ 2,000,000 | $ 2,000,000 |
Change in Provisions and Other
Change in Provisions and Other (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure Of Other Provisions [Abstract] | ||
Beginning balance | $ 11,866 | $ 13,373 |
Recovered during the year | (750) | |
Expensed during the year | 4,047 | |
Payment of deductibles and uninsured claims | (2,698) | (4,915) |
Effects of foreign currency exchange differences | (110) | (639) |
Ending balance | $ 8,308 | $ 11,866 |
Balance Sheet Classification of
Balance Sheet Classification of Provisions and Other (Detail) - CAD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure Of Other Provisions [Abstract] | |||
Current | $ 745 | $ 1,907 | |
Long-term | 7,563 | 9,959 | |
Other provisions | $ 8,308 | $ 11,866 | $ 13,373 |
Schedule of Issued Capital (Det
Schedule of Issued Capital (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure Of Classes Of Share Capital [Abstract] | ||
Beginning balance, shares | 13,864,990 | 14,689,092 |
Share repurchase | (420,588) | (824,102) |
Ending balance, shares | 13,459,593 | 13,864,990 |
Share issuance on redemption of non-management DSUs | 15,228 | |
Share consolidation adjustment | (37) | |
Beginning balance | $ 2,296,378 | $ 2,322,280 |
Share repurchase | (11,317) | (25,902) |
Share issuance on redemption of non-management DSUs | 677 | |
Ending balance | $ 2,285,738 | $ 2,296,378 |
Shareholders Capital - Addition
Shareholders Capital - Additional Information (Detail) $ in Millions | Nov. 12, 2020shares | Dec. 31, 2020USD ($)shares | Dec. 31, 2019USD ($)shares |
Disclosure Of Classes Of Share Capital [Line Items] | |||
Share consolidation ratio | 20 | ||
Number of common share used for consolidation adjustment | 37 | ||
Number of share purchase and cancel | 420,588 | ||
Percentage of share purchase and cancel | 10.00% | ||
Purchase and cancel of shares | $ | $ 11 | ||
Number of additional share purchase and cancel | 155,168 | ||
Additional common share value purchase or cancel | $ | $ 4 | ||
Events After Reporting Period [Member] | |||
Disclosure Of Classes Of Share Capital [Line Items] | |||
Number of share purchase and cancel | 824,102 | ||
Purchase and cancel of shares | $ | $ 26 | ||
Top of Range [Member] | |||
Disclosure Of Classes Of Share Capital [Line Items] | |||
Number of share purchase and cancel | 1,199,883 |
Summary of Per Share Amounts (D
Summary of Per Share Amounts (Detail) - CAD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Weighted Average Shares And Adjusted Weighted Average Shares [Abstract] | ||
Net earnings (loss) for the period | $ (120,138) | $ 6,618 |
Weighted average shares outstanding – basic | 13,722 | 14,539 |
Effect of share options and other equity compensation plans | 320 | |
Weighted average shares outstanding – diluted | 13,722 | 14,859 |
Per Share Amounts - Additional
Per Share Amounts - Additional Information (Detail) | Nov. 12, 2020 |
Weighted Average Shares And Adjusted Weighted Average Shares [Abstract] | |
Share consolidation ratio | 20 |
Summary of Accumulated Other Co
Summary of Accumulated Other Comprehensive Income (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure Of Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning Balance | $ 134,255 | |
Other comprehensive income (loss) | 3,326 | $ (27,759) |
Ending Balance | 137,581 | 134,255 |
Unrealized Foreign Currency Translation Gains (Losses) [member] | ||
Disclosure Of Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning Balance | 509,582 | 616,363 |
Other comprehensive income (loss) | (25,925) | (106,781) |
Ending Balance | 483,657 | 509,582 |
Foreign Exchange Gain (Loss) on Net Investment Hedge [member] | ||
Disclosure Of Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning Balance | (375,327) | (454,349) |
Other comprehensive income (loss) | 23,853 | 79,022 |
Ending Balance | (351,474) | (375,327) |
Tax Benefit Related to Net Investment Hedge of Long Term Debt [member] | ||
Disclosure Of Accumulated Other Comprehensive Income Loss [Line Items] | ||
Other comprehensive income (loss) | 5,398 | |
Ending Balance | 5,398 | |
Accumulated Other Comprehensive Income [Member] | ||
Disclosure Of Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning Balance | 134,255 | 162,014 |
Other comprehensive income (loss) | 3,326 | (27,759) |
Ending Balance | $ 137,581 | $ 134,255 |
Employee Benefit Plan - Additio
Employee Benefit Plan - Additional Information (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Mar. 30, 2019 | |
Employees Benefit [Abstract] | ||
Individual contributions under defined contribution pension plan | 2.00% | 5.00% |
Total expense under the defined contribution plan | $ 6 | $ 13 |
Compensation of Key Management
Compensation of Key Management Personnel (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure Of Transactions Between Related Parties [Abstract] | ||
Salaries and other benefits | $ 10,031 | $ 8,747 |
Equity-settled share based compensation | 9,148 | 9,047 |
Cash-settled share based compensation | 419 | 1,432 |
Key management personnel compensation | $ 19,598 | $ 19,226 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Transactions Between Related Parties [Abstract] | |
Related party transactions, description | Certain executive officers have entered into employment agreements with Precision that provide termination benefits of up to 24 months base salary plus up to two times targeted incentive compensation upon dismissal without cause. |
Capital Commitments - Additiona
Capital Commitments - Additional Information (Detail) - CAD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of finance lease and operating lease by lessee [Line Items] | ||
Commitments to purchase property, plant and equipment | $ 113 | $ 113 |
2021 [Member] | ||
Disclosure of finance lease and operating lease by lessee [Line Items] | ||
Commitments to purchase property, plant and equipment | 24 | |
2022 [Member] | ||
Disclosure of finance lease and operating lease by lessee [Line Items] | ||
Commitments to purchase property, plant and equipment | 53 | |
2023 [Member] | ||
Disclosure of finance lease and operating lease by lessee [Line Items] | ||
Commitments to purchase property, plant and equipment | $ 36 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020CAD ($)Customer | Dec. 31, 2020USD ($)Customer | Dec. 31, 2019CAD ($)Customer | |
Disclosure of detailed information about financial instruments [Line Items] | |||
Number of customers | Customer | 0 | 0 | 0 |
Percentage of change in interest rates | 1.00% | ||
Impact on net income due to changes in interest rate | $ 1 | ||
Fair value of unsecured senior notes | $ 1,023 | $ 1,428 | |
Senior Credit Facility [Member] | |||
Disclosure of detailed information about financial instruments [Line Items] | |||
Credit facility amount withdrawn | $ 75,000,000 | ||
Real Estate Credit Facility [Member] | |||
Disclosure of detailed information about financial instruments [Line Items] | |||
Credit facility amount withdrawn | $ 11,000,000 | ||
One Customer [Member] | |||
Disclosure of detailed information about financial instruments [Line Items] | |||
Number of customers | Customer | 1 | 1 | |
Percentage of concentration risk rate | 12.00% | ||
Credit Risk [Member] | |||
Disclosure of detailed information about financial instruments [Line Items] | |||
Trade receivables | $ 11 | $ 12 |
Summary of Expected Credit Loss
Summary of Expected Credit Loss Allowance (Detail) - Trade receivables [Member] - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure Of Allowance For Doubtful Accounts [Line Items] | ||
Beginning balance | $ 929 | $ 1,470 |
Impairment loss recognized | 812 | 72 |
Amounts written-off as uncollectible | (479) | (537) |
Impairment loss reversed | (396) | (24) |
Effect of movement in exchange rates | (4) | (52) |
Ending balance | $ 862 | $ 929 |
Summary of Ageing of Trade Rece
Summary of Ageing of Trade Receivables (Detail) - CAD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of provision matrix [Line Items] | ||
Total Trade Receivables | $ 113,933 | $ 211,797 |
Gross [Member] | ||
Disclosure of provision matrix [Line Items] | ||
Total Trade Receivables | 114,795 | 212,726 |
Gross [Member] | Not Past Due [Member] | ||
Disclosure of provision matrix [Line Items] | ||
Total Trade Receivables | 66,191 | 144,292 |
Gross [Member] | Past Due 0 - 30 Days [Member] | ||
Disclosure of provision matrix [Line Items] | ||
Total Trade Receivables | 35,060 | 47,965 |
Gross [Member] | Past Due 31 - 120 Days [Member] | ||
Disclosure of provision matrix [Line Items] | ||
Total Trade Receivables | 11,649 | 19,166 |
Gross [Member] | Past Due More than 120 Days [Member] | ||
Disclosure of provision matrix [Line Items] | ||
Total Trade Receivables | 1,895 | 1,303 |
Provision for Impairment [Member] | ||
Disclosure of provision matrix [Line Items] | ||
Total Trade Receivables | 862 | 929 |
Provision for Impairment [Member] | Not Past Due [Member] | ||
Disclosure of provision matrix [Line Items] | ||
Total Trade Receivables | 1 | 1 |
Provision for Impairment [Member] | Past Due 0 - 30 Days [Member] | ||
Disclosure of provision matrix [Line Items] | ||
Total Trade Receivables | 8 | 8 |
Provision for Impairment [Member] | Past Due 31 - 120 Days [Member] | ||
Disclosure of provision matrix [Line Items] | ||
Total Trade Receivables | 26 | 28 |
Provision for Impairment [Member] | Past Due More than 120 Days [Member] | ||
Disclosure of provision matrix [Line Items] | ||
Total Trade Receivables | $ 827 | $ 892 |
Summary of Financial Instrument
Summary of Financial Instruments were Denominated in U S Dollars (Detail) $ in Thousands, $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2020CAD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019CAD ($) | Dec. 31, 2019USD ($) | Jan. 01, 2019CAD ($) | |
Disclosure of detailed information about financial instruments [Line Items] | |||||||
Cash | $ 108,772 | $ 74,701 | |||||
Accounts receivable | 207,209 | 310,204 | |||||
Accounts payable and accrued liabilities | $ (150,957) | $ (199,478) | $ (2,800) | ||||
Canadian Operations [Member] | Currency Risk [Member] | |||||||
Disclosure of detailed information about financial instruments [Line Items] | |||||||
Cash | $ 35,257 | $ 9,727 | |||||
Accounts receivable | 242 | ||||||
Accounts payable and accrued liabilities | (18,727) | (17,730) | |||||
Net foreign currency exposure | 16,530 | (7,761) | |||||
Impact of $0.01 change in the U.S. dollar to Canadian dollar exchange rate on net earnings (loss) | $ 165 | $ (78) | |||||
Foreign Operations [Member] | Currency Risk [Member] | |||||||
Disclosure of detailed information about financial instruments [Line Items] | |||||||
Cash | 26,057 | 41,154 | |||||
Accounts receivable | 98,298 | 150,873 | |||||
Accounts payable and accrued liabilities | (59,704) | (86,324) | |||||
Long-term liabilities, excluding long-term incentive plans | (16,197) | (7,669) | |||||
Net foreign currency exposure | $ 48,454 | $ 98,034 | |||||
Impact of $0.01 change in the U.S. dollar to Canadian dollar exchange rate on comprehensive loss | $ 485 | $ 980 |
Summary of Contractual Maturiti
Summary of Contractual Maturities of Financial Liabilities and Other Contractual Commitments (Detail) $ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CAD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019CAD ($) | Dec. 31, 2019USD ($) | |
Disclosure of Nonderivative Financial Instruments [Line Items] | ||||
Long-term debt, gross | $ 1,249,153 | $ 981,151 | $ 1,445,127 | $ 1,112,895 |
2021 [Member] | ||||
Disclosure of Nonderivative Financial Instruments [Line Items] | ||||
Long-term debt, gross | 896 | |||
2022 [Member] | ||||
Disclosure of Nonderivative Financial Instruments [Line Items] | ||||
Long-term debt, gross | 459,719 | |||
2023 [Member] | ||||
Disclosure of Nonderivative Financial Instruments [Line Items] | ||||
Long-term debt, gross | 335,995 | |||
Liquidity risk [Member] | ||||
Disclosure of Nonderivative Financial Instruments [Line Items] | ||||
Accounts payable and accrued liabilities | 150,957 | |||
Share based compensation | 27,045 | |||
Long-term debt, gross | 1,250,049 | |||
Interest on long-term debt | 322,174 | |||
Commitments | 160,649 | |||
Total | 1,910,874 | |||
Liquidity risk [Member] | 2021 [Member] | ||||
Disclosure of Nonderivative Financial Instruments [Line Items] | ||||
Accounts payable and accrued liabilities | 150,957 | |||
Share based compensation | 7,768 | |||
Long-term debt, gross | 896 | |||
Interest on long-term debt | 80,980 | |||
Commitments | 34,877 | |||
Total | 275,478 | |||
Liquidity risk [Member] | 2022 [Member] | ||||
Disclosure of Nonderivative Financial Instruments [Line Items] | ||||
Share based compensation | 9,858 | |||
Long-term debt, gross | 896 | |||
Interest on long-term debt | 80,980 | |||
Commitments | 62,589 | |||
Total | 154,323 | |||
Liquidity risk [Member] | 2023 [Member] | ||||
Disclosure of Nonderivative Financial Instruments [Line Items] | ||||
Share based compensation | 9,419 | |||
Long-term debt, gross | 459,719 | |||
Interest on long-term debt | 79,540 | |||
Commitments | 45,401 | |||
Total | 594,079 | |||
Liquidity risk [Member] | 2024 [Member] | ||||
Disclosure of Nonderivative Financial Instruments [Line Items] | ||||
Long-term debt, gross | 335,995 | |||
Interest on long-term debt | 47,396 | |||
Commitments | 5,963 | |||
Total | 389,354 | |||
Liquidity risk [Member] | 2025 [Member] | ||||
Disclosure of Nonderivative Financial Instruments [Line Items] | ||||
Long-term debt, gross | 9,786 | |||
Interest on long-term debt | 31,964 | |||
Commitments | 5,229 | |||
Total | 46,979 | |||
Liquidity risk [Member] | Thereafter [Member] | ||||
Disclosure of Nonderivative Financial Instruments [Line Items] | ||||
Long-term debt, gross | 442,757 | |||
Interest on long-term debt | 1,314 | |||
Commitments | 6,590 | |||
Total | $ 450,661 |
Capital Management - Summary of
Capital Management - Summary of Capitalization and Ratio (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure Of Capitalisation [Abstract] | ||
Long-term debt | $ 1,236,210 | $ 1,427,181 |
Shareholders’ equity | 1,406,640 | 1,527,432 |
Total capitalization | $ 2,642,850 | $ 2,954,613 |
Long-term debt to long-term debt plus equity ratio | 0.47% | 0.48% |
Capital Management - Additional
Capital Management - Additional Information (Detail) $ in Thousands | Dec. 31, 2020CAD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019CAD ($) | Dec. 31, 2019USD ($) |
Disclosure Of Capitalisation [Line Items] | ||||
Cash | $ 108,772 | $ 74,701 | ||
Senior Credit Facility [Member] | ||||
Disclosure Of Capitalisation [Line Items] | ||||
Line of credit borrowing capacity | $ 500,000,000 | $ 500,000,000 | ||
Line of credit outstanding | 75,000,000 | |||
Letters of credit outstanding | 32,000,000 | 25,000,000 | ||
Secured Operating Facility [Member] | ||||
Disclosure Of Capitalisation [Line Items] | ||||
Line of credit borrowing capacity | 97,000 | 98,000 | ||
40.0 Million Secured Operating Facilities [Member] | ||||
Disclosure Of Capitalisation [Line Items] | ||||
Line of credit borrowing capacity | 40,000 | 40,000 | ||
Letters of credit outstanding | $ 7,000 | $ 26,000 | ||
30.0 Million Operating Facilities [member] | ||||
Disclosure Of Capitalisation [Line Items] | ||||
Line of credit borrowing capacity | 30,000,000 | 30,000,000 | ||
Letters of credit outstanding | 2,000,000 | 2,000,000 | ||
15.0 Million Secured Operating Facilities [Member] | ||||
Disclosure Of Capitalisation [Line Items] | ||||
Line of credit borrowing capacity | 15,000,000 | |||
Line of credit outstanding | $ 0 | $ 0 |
Components of Changes in Non-ca
Components of Changes in Non-cash Working Capital Balances (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure Of Change In Noncash Working Capital Balances [Abstract] | ||
Accounts receivable | $ 103,857 | $ 51,152 |
Inventory | 5,181 | 1,157 |
Accounts payable and accrued liabilities | (53,666) | (61,376) |
Non cash working capital | 55,372 | (9,067) |
Operations | 55,391 | (4,493) |
Investments | $ (19) | $ (4,574) |
Components of Accounts Receivab
Components of Accounts Receivable (Detail) - CAD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts Receivable [Abstract] | ||
Trade | $ 113,933 | $ 211,797 |
Accrued trade | 16,769 | 32,167 |
Prepaids and other | 76,507 | 66,240 |
Trade and other current receivables | $ 207,209 | $ 310,204 |
Components of Accounts Payable
Components of Accounts Payable and Accrued Liabilities (Detail) - CAD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 |
Accounts Payable And Accrued Liabilities1 [Abstract] | |||
Accounts payable | $ 56,922 | $ 91,468 | |
Accrued liabilities: | |||
Payroll | 44,533 | 54,334 | |
Other | 49,502 | 53,676 | |
Accounts payable and accrued liabilities | $ 150,957 | $ 199,478 | $ 2,800 |
Supplemental Information - Addi
Supplemental Information - Additional Information (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Supplemental Information [Line Items] | ||
Operating expense | $ 583,420 | $ 1,038,967 |
General and administrative expense | 70,869 | 104,010 |
Depreciation and amortization gain on asset disposal loss on asset decommissioning and reversal of impairment of property plant and equipment [Member] | ||
Supplemental Information [Line Items] | ||
Operating expense | 293,000 | 282,000 |
General and administrative expense | $ 11,000 | $ 15,000 |
Summary of Operating and Genera
Summary of Operating and General and Administrative Expenses (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Expense By Nature [Abstract] | ||
Wages, salaries and benefits | $ 438,209 | $ 697,935 |
Wage subsidies | (26,297) | |
Purchased materials, supplies and services | 240,591 | 429,365 |
Share based compensation | 19,847 | 22,115 |
Operating and general and administrative expenses | 672,350 | 1,149,415 |
Allocated to: | ||
Operating expense | 583,420 | 1,038,967 |
General and administrative | 70,869 | 104,010 |
Restructuring | 18,061 | 6,438 |
Operating and general and administrative expenses | $ 672,350 | $ 1,149,415 |
Contingencies and Guarantees -
Contingencies and Guarantees - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2020CAD ($) | |
Tax contingent liability [Member] | |
Disclosure of contingent liabilities [Line Items] | |
Disclosure of uncertainties of contingent liabilities | The business and operations of the Corporation are complex and the Corporation has executed a number of significant financings, business combinations, acquisitions and dispositions over the course of its history. The computation of income taxes payable as a result of these transactions involves many complex factors as well as the Corporation’s interpretation of relevant tax legislation and regulations. The Corporation’s management believes that the provision for income tax is adequate and in accordance with IFRS and applicable legislation and regulations. However, there are tax filing positions that have been and can still be the subject of review by taxation authorities who may successfully challenge the Corporation’s interpretation of the applicable tax legislation and regulations, with the result that additional taxes could be payable by the Corporation. |
Legal proceedings contingent liability [Member] | |
Disclosure of contingent liabilities [Line Items] | |
Disclosure of uncertainties of contingent liabilities | The Corporation, through the performance of its services, product sales and business arrangements, is sometimes named as a defendant in litigation. The outcome of such claims against the Corporation is not determinable at this time; however, their ultimate resolution is not expected to have a material adverse effect on the Corporation. |
Other contingent liabilities [Member] | |
Disclosure of contingent liabilities [Line Items] | |
Disclosure not practicable | The Corporation has entered into agreements indemnifying certain parties primarily with respect to tax and specific third-party claims associated with businesses sold by the Corporation. Due to the nature of the indemnifications, the maximum exposure under these agreements cannot be estimated. No amounts have been recorded for the indemnities as the Corporation’s obligations under them are not probable or determinable. |
Obligation amount | $ 0 |
Condensed Consolidated Statemen
Condensed Consolidated Statement of Financial Position (Detail) - CAD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Assets | ||||
Cash | $ 108,772 | $ 74,701 | ||
Other current assets | 233,491 | 343,064 | ||
Property, plant and equipment | 2,472,683 | 2,749,463 | ||
Intangibles | 27,666 | 31,746 | ||
Right-of-use assets | 55,168 | 66,142 | $ 73,464 | $ 0 |
Other long-term assets | 1,098 | 4,724 | ||
Total assets | 2,898,878 | 3,269,840 | ||
Liabilities and shareholders’ equity | ||||
Current liabilities | 166,840 | 216,069 | ||
Long-term debt | 1,236,210 | 1,427,181 | ||
Lease obligations | 48,882 | 54,980 | ||
Other long-term liabilities | 40,306 | 44,178 | ||
Total liabilities | 1,492,238 | 1,742,408 | ||
Shareholders’ equity | 1,406,640 | 1,527,432 | $ 1,557,752 | |
Total liabilities and shareholders’ equity | 2,898,878 | 3,269,840 | ||
Guarantor Subsidiaries [Member] | ||||
Assets | ||||
Cash | 15,392 | 20,651 | ||
Other current assets | 129,924 | 242,968 | ||
Intercompany receivables | 2,358,699 | 2,205,834 | ||
Investments in subsidiaries | 30 | 30 | ||
Property, plant and equipment | 2,041,094 | 2,263,355 | ||
Intangibles | 759 | 1,312 | ||
Right-of-use assets | 31,323 | 39,267 | ||
Total assets | 4,577,221 | 4,773,417 | ||
Liabilities and shareholders’ equity | ||||
Current liabilities | 86,221 | 130,232 | ||
Intercompany payables and debt | 53,375 | 84,901 | ||
Long-term debt | 12,162 | |||
Lease obligations | 27,072 | 31,614 | ||
Other long-term liabilities | 32,400 | 18,454 | ||
Total liabilities | 211,230 | 265,201 | ||
Shareholders’ equity | 4,365,991 | 4,508,216 | ||
Total liabilities and shareholders’ equity | 4,577,221 | 4,773,417 | ||
Non-Guarantor Subsidiaries [Member] | ||||
Assets | ||||
Cash | 16,833 | 33,098 | ||
Other current assets | 98,165 | 96,140 | ||
Intercompany receivables | 115,204 | 67,377 | ||
Property, plant and equipment | 387,223 | 437,413 | ||
Right-of-use assets | 3,730 | 3,805 | ||
Other long-term assets | 1,140 | 6,595 | ||
Total assets | 622,295 | 644,428 | ||
Liabilities and shareholders’ equity | ||||
Current liabilities | 43,368 | 51,975 | ||
Intercompany payables and debt | 48,859 | 52,621 | ||
Lease obligations | 2,484 | 2,489 | ||
Other long-term liabilities | 443 | 668 | ||
Total liabilities | 95,154 | 107,753 | ||
Shareholders’ equity | 527,141 | 536,675 | ||
Total liabilities and shareholders’ equity | 622,295 | 644,428 | ||
Consolidating Adjustments [Member] | ||||
Assets | ||||
Other current assets | 3 | 4 | ||
Intercompany receivables | (2,522,498) | (2,355,312) | ||
Investments in subsidiaries | (4,410,022) | (4,535,655) | ||
Property, plant and equipment | 252 | 279 | ||
Other long-term assets | (42) | (1,871) | ||
Total assets | (6,932,307) | (6,892,555) | ||
Liabilities and shareholders’ equity | ||||
Intercompany payables and debt | (2,522,498) | (2,355,312) | ||
Other long-term liabilities | (42) | (1,871) | ||
Total liabilities | (2,522,540) | (2,357,183) | ||
Shareholders’ equity | (4,409,767) | (4,535,372) | ||
Total liabilities and shareholders’ equity | (6,932,307) | (6,892,555) | ||
Parent [member] | ||||
Assets | ||||
Cash | 76,547 | 20,952 | ||
Other current assets | 5,399 | 3,952 | ||
Intercompany receivables | 48,595 | 82,101 | ||
Investments in subsidiaries | 4,409,992 | 4,535,625 | ||
Property, plant and equipment | 44,114 | 48,416 | ||
Intangibles | 26,907 | 30,434 | ||
Right-of-use assets | 20,115 | 23,070 | ||
Total assets | 4,631,669 | 4,744,550 | ||
Liabilities and shareholders’ equity | ||||
Current liabilities | 37,251 | 33,862 | ||
Intercompany payables and debt | 2,420,264 | 2,217,790 | ||
Long-term debt | 1,224,048 | 1,427,181 | ||
Lease obligations | 19,326 | 20,877 | ||
Other long-term liabilities | 7,505 | 26,927 | ||
Total liabilities | 3,708,394 | 3,726,637 | ||
Shareholders’ equity | 923,275 | 1,017,913 | ||
Total liabilities and shareholders’ equity | $ 4,631,669 | $ 4,744,550 |
Condensed Consolidated Statem_2
Condensed Consolidated Statement of Net Earnings (Loss) (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of subsidiaries [Line Items] | ||
Revenue | $ 935,753 | $ 1,541,320 |
Operating expense | 583,420 | 1,038,967 |
General and administrative expense | 70,869 | 104,010 |
Restructuring | 18,061 | 6,438 |
Earnings before income taxes, gain on redemption and repurchase of unsecured senior notes, finance charges, foreign exchange, reversal of impairment of property, plant and equipment, loss on asset decommissioning, gain on asset disposals and depreciation and amortization | 263,403 | 391,905 |
Depreciation and amortization | 316,322 | 333,616 |
Gain on asset disposals | (11,931) | (50,741) |
Loss on asset decommissioning | 20,263 | |
Reversal of impairment of property, plant and equipment | (5,810) | |
Foreign exchange | 4,542 | (8,722) |
Finance charges | 107,468 | 118,453 |
Gain on redemption and repurchase of unsecured senior notes | (43,814) | (6,815) |
Loss before income taxes | (109,184) | (8,339) |
Income taxes | 10,954 | (14,957) |
Net earnings (loss) | (120,138) | 6,618 |
Guarantor Subsidiaries [Member] | ||
Disclosure of subsidiaries [Line Items] | ||
Revenue | 752,737 | 1,341,624 |
Operating expense | 465,624 | 909,898 |
General and administrative expense | 26,767 | 57,119 |
Restructuring | 11,083 | 3,616 |
Earnings before income taxes, gain on redemption and repurchase of unsecured senior notes, finance charges, foreign exchange, reversal of impairment of property, plant and equipment, loss on asset decommissioning, gain on asset disposals and depreciation and amortization | 249,263 | 370,991 |
Depreciation and amortization | 255,299 | 262,914 |
Gain on asset disposals | (11,655) | (50,439) |
Loss on asset decommissioning | 20,263 | |
Reversal of impairment of property, plant and equipment | (5,810) | |
Foreign exchange | 36,313 | (758) |
Finance charges | (2,113) | (354) |
Loss before income taxes | (28,581) | 145,175 |
Income taxes | 18,056 | 44,809 |
Net earnings (loss) | (46,637) | 100,366 |
Non-Guarantor Subsidiaries [Member] | ||
Disclosure of subsidiaries [Line Items] | ||
Revenue | 186,088 | 210,292 |
Operating expense | 120,875 | 139,701 |
General and administrative expense | 5,613 | 8,473 |
Earnings before income taxes, gain on redemption and repurchase of unsecured senior notes, finance charges, foreign exchange, reversal of impairment of property, plant and equipment, loss on asset decommissioning, gain on asset disposals and depreciation and amortization | 59,600 | 62,118 |
Depreciation and amortization | 50,815 | 57,205 |
Gain on asset disposals | (135) | (255) |
Foreign exchange | (24,814) | 535 |
Finance charges | 3 | 32 |
Loss before income taxes | 33,731 | 4,601 |
Income taxes | 9,556 | 2,853 |
Net earnings (loss) | 24,175 | 1,748 |
Consolidating Adjustments [Member] | ||
Disclosure of subsidiaries [Line Items] | ||
Revenue | (3,129) | (10,688) |
Operating expense | (3,129) | (10,688) |
Depreciation and amortization | 227 | 225 |
Equity in earnings of subsidiaries | (22,462) | 102,114 |
Loss before income taxes | 22,235 | (102,339) |
Net earnings (loss) | 22,235 | (102,339) |
Parent [member] | ||
Disclosure of subsidiaries [Line Items] | ||
Revenue | 57 | 92 |
Operating expense | 50 | 56 |
General and administrative expense | 38,489 | 38,418 |
Restructuring | 6,978 | 2,822 |
Earnings before income taxes, gain on redemption and repurchase of unsecured senior notes, finance charges, foreign exchange, reversal of impairment of property, plant and equipment, loss on asset decommissioning, gain on asset disposals and depreciation and amortization | (45,460) | (41,204) |
Depreciation and amortization | 9,981 | 13,272 |
Gain on asset disposals | (141) | (47) |
Foreign exchange | (6,957) | (8,499) |
Finance charges | 109,578 | 118,775 |
Gain on redemption and repurchase of unsecured senior notes | (43,814) | (6,815) |
Equity in earnings of subsidiaries | 22,462 | (102,114) |
Loss before income taxes | (136,569) | (55,776) |
Income taxes | (16,658) | (62,619) |
Net earnings (loss) | $ (119,911) | $ 6,843 |
Condensed Consolidated Statem_3
Condensed Consolidated Statement of Comprehensive Income (Loss) (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of subsidiaries [Line Items] | ||
Net earnings (loss) | $ (120,138) | $ 6,618 |
Other comprehensive income (loss) | 3,326 | (27,759) |
Comprehensive loss | (116,812) | (21,141) |
Guarantor Subsidiaries [Member] | ||
Disclosure of subsidiaries [Line Items] | ||
Net earnings (loss) | (46,637) | 100,366 |
Other comprehensive income (loss) | 9,732 | (79,018) |
Comprehensive loss | (36,905) | 21,348 |
Non-Guarantor Subsidiaries [Member] | ||
Disclosure of subsidiaries [Line Items] | ||
Net earnings (loss) | 24,175 | 1,748 |
Other comprehensive income (loss) | (35,857) | (27,655) |
Comprehensive loss | (11,682) | (25,907) |
Consolidating Adjustments [Member] | ||
Disclosure of subsidiaries [Line Items] | ||
Net earnings (loss) | 22,235 | (102,339) |
Other comprehensive income (loss) | 200 | (108) |
Comprehensive loss | 22,435 | (102,447) |
Parent [member] | ||
Disclosure of subsidiaries [Line Items] | ||
Net earnings (loss) | (119,911) | 6,843 |
Other comprehensive income (loss) | 29,251 | 79,022 |
Comprehensive loss | $ (90,660) | $ 85,865 |
Condensed Consolidated Statem_4
Condensed Consolidated Statement of Cash Flow (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of subsidiaries [Line Items] | ||
Operations | $ 226,118 | $ 288,159 |
Investments | (40,517) | (74,500) |
Financing | (145,624) | (231,814) |
Effect of exchange rate changes on cash | (5,906) | (3,770) |
Increase (decrease) in cash | 34,071 | (21,925) |
Cash, beginning of year | 74,701 | 96,626 |
Cash, end of year | 108,772 | 74,701 |
Guarantor Subsidiaries [Member] | ||
Disclosure of subsidiaries [Line Items] | ||
Operations | 263,514 | 480,215 |
Investments | (32,668) | (56,937) |
Financing | (234,953) | (438,350) |
Effect of exchange rate changes on cash | (1,152) | (1,415) |
Increase (decrease) in cash | (5,259) | (16,487) |
Cash, beginning of year | 20,651 | 37,138 |
Cash, end of year | 15,392 | 20,651 |
Non-Guarantor Subsidiaries [Member] | ||
Disclosure of subsidiaries [Line Items] | ||
Operations | 42,523 | (2,680) |
Investments | (7,252) | (15,337) |
Financing | (51,126) | 21,936 |
Effect of exchange rate changes on cash | (410) | (1,683) |
Increase (decrease) in cash | (16,265) | 2,236 |
Cash, beginning of year | 33,098 | 30,862 |
Cash, end of year | 16,833 | 33,098 |
Consolidating Adjustments [Member] | ||
Disclosure of subsidiaries [Line Items] | ||
Investments | (293,193) | (410,979) |
Financing | 293,193 | 410,979 |
Parent [member] | ||
Disclosure of subsidiaries [Line Items] | ||
Operations | (79,919) | (189,376) |
Investments | 292,596 | 408,753 |
Financing | (152,738) | (226,379) |
Effect of exchange rate changes on cash | (4,344) | (672) |
Increase (decrease) in cash | 55,595 | (7,674) |
Cash, beginning of year | 20,952 | 28,626 |
Cash, end of year | $ 76,547 | $ 20,952 |
Summary of Subsidiaries (Detail
Summary of Subsidiaries (Detail) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Precision Limited Partnership [Member] | ||
Disclosure of subsidiaries [Line Items] | ||
Country of incorporation | Canada | |
Ownership Interest | 100.00% | 100.00% |
Precision Drilling Canada Limited Partnership [Member] | ||
Disclosure of subsidiaries [Line Items] | ||
Country of incorporation | Canada | |
Ownership Interest | 100.00% | 100.00% |
Precision Diversified Oilfield Services Corp [Member] | ||
Disclosure of subsidiaries [Line Items] | ||
Country of incorporation | Canada | |
Ownership Interest | 100.00% | 100.00% |
Precision Directional Services Ltd [Member] | ||
Disclosure of subsidiaries [Line Items] | ||
Country of incorporation | Canada | |
Ownership Interest | 100.00% | 100.00% |
Precision Drilling (US) Corporation [Member] | ||
Disclosure of subsidiaries [Line Items] | ||
Country of incorporation | United States | |
Ownership Interest | 100.00% | 100.00% |
Precision Drilling Holdings Company [Member] | ||
Disclosure of subsidiaries [Line Items] | ||
Country of incorporation | United States | |
Ownership Interest | 100.00% | 100.00% |
Precision Drilling Company LP [Member] | ||
Disclosure of subsidiaries [Line Items] | ||
Country of incorporation | United States | |
Ownership Interest | 100.00% | 100.00% |
Precision Completion and Production Services Ltd [Member] | ||
Disclosure of subsidiaries [Line Items] | ||
Country of incorporation | United States | |
Ownership Interest | 100.00% | 100.00% |
Grey Wolf Drilling Limited [Member] | ||
Disclosure of subsidiaries [Line Items] | ||
Country of incorporation | Barbados | |
Ownership Interest | 100.00% | 100.00% |
Grey Wolf Drilling Barbados Ltd [Member] | ||
Disclosure of subsidiaries [Line Items] | ||
Country of incorporation | Barbados | |
Ownership Interest | 100.00% | 100.00% |