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ANNUAL MEETING UBH CALGARY – Precision Drilling Corporation

Precision Drilling Corporation · May 14, 2015 · 28 slides

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Slides

  1. ANNUAL MEETING UBH CALGARY – Precision Drilling Corporation – slide 1
    Annual Meeting of Shareholders UBH Calgary May 13th, 2015 1
  2. ANNUAL MEETING UBH CALGARY – Precision Drilling Corporation – slide 2
    WTI Crude Spot Price 160 140 120 WTI Crude Spot Price 100 80 60 40 20 0 Jan 01, 2006 Jan 01, 2008 Jan 01, 2010 Jan 01, 2012 Jan 01, 2014 May, 2016 Source: EIA. 3
  3. ANNUAL MEETING UBH CALGARY – Precision Drilling Corporation – slide 3
    Historical North American Drilling Activity U.S. Land Rig Count Canadian Land Rig Count 10 Year History 5 Year History 800 2,000 700 1,800 600 1,600 500 1,400 400 1,200 300 1,000 200 800 100 600 0 April…
  4. ANNUAL MEETING UBH CALGARY – Precision Drilling Corporation – slide 4
    Lessons from 2009 Downturn Precision Strategy Rig Capability 141 Tier 1 Rigs Added _____ + Tier 1 Crew Trained Liquidity Strong Balance Sheet _____ + 449* million Cash Revenue Security 104 Contracts for 2015 __ _…
  5. ANNUAL MEETING UBH CALGARY – Precision Drilling Corporation – slide 5
    1 High Performance Rig Fleet 234 6 International 141 Tier 1 106 U.S. Rigs Added 93 122 Canada 1 Jan, 2009 1 July, 2015 1) As of April 27th 2015 - Includes 6 newbuilds that are yet to be delivered (1 for…
  6. ANNUAL MEETING UBH CALGARY – Precision Drilling Corporation – slide 6
    6,987 employees completed training through Precision Tech Centers in 2013 & 2014 7
  7. ANNUAL MEETING UBH CALGARY – Precision Drilling Corporation – slide 7
    Balance Sheet Strength Available liquidity as of 3/31/2015 1 1 1,293 1.3 billion in available liquidity + 69 million tax receipt from Ontario Government in Q2 2015 449 Cash Staggered long-term maturities starting 2019 to…
  8. ANNUAL MEETING UBH CALGARY – Precision Drilling Corporation – slide 8
    Strong Contract Book backed by Well Capitalized Customers Average Term Contracts 2014 Top 50 Customers 1 110 104 12 5% Private Public 87% 51 8% National Oil Companies 58 47 Average market cap. of 29 billion.2…
  9. ANNUAL MEETING UBH CALGARY – Precision Drilling Corporation – slide 9
    Increasing Diversification of Revenue Contribution International revenue was 8% of total in 2014, up from 3% in 2012. 2012 2013 2014 3% 7% 8% 51% 49% 46% 44% 47% 46% Canada U.S. International 10
  10. ANNUAL MEETING UBH CALGARY – Precision Drilling Corporation – slide 10
    Focused International Footprint North America Middle East 121 Tier 1 Rigs in Canada 4 active rigs in Saudi Arabia 102 Tier 1 Rigs in U.S. 2 active rigs in Kurdistan Focused on development drilling 3 rigs in Kuwait, 2 active and 1 to…
  11. ANNUAL MEETING UBH CALGARY – Precision Drilling Corporation – slide 11
    Positioned InNorth Comprehensive Most ActiveCoverage American North American Regions Dots representative of areas where Precision has had operations within the past two years 12
  12. ANNUAL MEETING UBH CALGARY – Precision Drilling Corporation – slide 12
    Delivers Shareholder Value Key Key Financial Operational Metrics Metrics Operating Earnings Safety Performance Return on Capital Employed Mechanical Downtime Total Shareholder Return Employee Retention 13
  13. ANNUAL MEETING UBH CALGARY – Precision Drilling Corporation – slide 13
    Competitive Strategy Tailored for Development Drilling PEOPLE SYSTEMS & SCALE DRILLING TECHNOLOGY PRODUCES LOWER RISK MAXIMUM EFFICIENCY ATTRACTIVE RETURNS 14
  14. ANNUAL MEETING UBH CALGARY – Precision Drilling Corporation – slide 14
    Competitive Strategy Tailored for Development Drilling PEOPLE PEOPLE SYSTEMS & SCALE DRILLING TECHNOLOGY PRODUCES LOWER RISK MAXIMUM EFFICIENCY ATTRACTIVE RETURNS 15
  15. ANNUAL MEETING UBH CALGARY – Precision Drilling Corporation – slide 15
    Precision HR Training and Processes Career Path Management Field Training Long-term Investments Compensation Programs Structured Promotion Permanent Training Programs Facilities with Fully EXPERIENCED, Functioning Rigs HIGHLY…
  16. ANNUAL MEETING UBH CALGARY – Precision Drilling Corporation – slide 16
    Global recruitment 7 Countries 10 Provinces 50 States Toughnecks program processed 44,461 applications and hired 4,013 people in 2014 17
  17. ANNUAL MEETING UBH CALGARY – Precision Drilling Corporation – slide 17
    Competitive Strategy Tailored for Development Drilling PEOPLE SYSTEMS SYSTEMS & SCALE & SCALE DRILLING TECHNOLOGY PRODUCES LOWER RISK MAXIMUM EFFICIENCY ATTRACTIVE RETURNS 18
  18. ANNUAL MEETING UBH CALGARY – Precision Drilling Corporation – slide 18
    Technical Support Centers Supply Chain Asset Integrity Management Maintenance Standard Leverage Procurement Centralized Support Vendor Management In House Repair & Rebuild Centralized Support SYSTEMS & SCALE Manufacturing +…
  19. ANNUAL MEETING UBH CALGARY – Precision Drilling Corporation – slide 19
    Nisku Tech Center 2,995 employees completed training through Precision Tech Centers in 2014 1,726 in Houston, Texas 1,269 in Nisku & Red Deer Alberta Safety & Repair & Rig Build & Operations Maintenance Construction…
  20. ANNUAL MEETING UBH CALGARY – Precision Drilling Corporation – slide 20
    Competitive Strategy Tailored for Development Drilling PEOPLE SYSTEMS & SCALE DRILLING DRILLING TECHNOLOGY PRODUCES TECHNOLOGY LOWER RISK MAXIMUM EFFICIENCY ATTRACTIVE RETURNS 21
  21. ANNUAL MEETING UBH CALGARY – Precision Drilling Corporation – slide 21
    Unique Schlumberger Alliance Drives Efficiency Precision field execution Maximum efficiency and customer interface Reliability More productive drilling programs Better field economics Schlumberger downhole tools &…
  22. ANNUAL MEETING UBH CALGARY – Precision Drilling Corporation – slide 22
    Fully Industrialized Development Drilling Maximum Efficiency Repeatability + Predictability Risk Minimization Technology deployment Long-term economic mindset 23 Precision Super Triple rigs operating in Duvernay
  23. ANNUAL MEETING UBH CALGARY – Precision Drilling Corporation – slide 23
    Completion & Production Segment: Full Well Cycle Exposure Largest well service provider in Canada and growing presence in U.S. Over 170 Well Service, Snubbing and Coil Tubing rigs Large fleet of high value rental equipment Camps and…
  24. ANNUAL MEETING UBH CALGARY – Precision Drilling Corporation – slide 24
    Historical Annual Revenue and EBITDA Annual Revenue Annual EBITDA (millions) (millions) 2,351 800 2,041 2,030 695 1,951 671 639 1,430 435 1,197 407 2009 2010 2011 2012 2013 2014 2009 2010 2011 2012 2013 2014 Q1…
  25. ANNUAL MEETING UBH CALGARY – Precision Drilling Corporation – slide 25
    International Revenue Growth Initiated Georgia with 1 rig Deployed Late Q2 2014 - Initiated additional 1 rig Kuwait with 2 Rigs to Saudi 70 60 International Revenue (million) 50 Initiated Kurdistan with 2 Rigs +24%…
  26. ANNUAL MEETING UBH CALGARY – Precision Drilling Corporation – slide 26
    Capital Spending Highlights 1 2015 Planned Capital Spending 2015 506 million Construction and delivery of 17 newbuild Super Series rigs 187 78 13 to U.S. (9 delivered) 195 320 3 to Canada (2 delivered) 428 1 to Kuwait…
  27. ANNUAL MEETING UBH CALGARY – Precision Drilling Corporation – slide 27
    Returning Value to Shareholders Increased dividends to 0.07 per share per quarter 166 20 Dividends Paid ( in million) 20 Increased dividends to 0.06 per share per quarter 18 18 18 Initiated dividends with 0.05 17…
  28. ANNUAL MEETING UBH CALGARY – Precision Drilling Corporation – slide 28
    Precision Drilling Investment Merits Leading North American driller with global diversification High Performance Tier 1 fleet of rigs with Tier 1 crews Strong balance sheet with 449* million of cash Contract position backed…

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