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…
Lessons from 2009 Downturn Precision Strategy Rig Capability 141 Tier 1 Rigs Added _____ with Tier 1 Crews Trained Liquidity Strong Balance Sheet + _____ 449* million Cash Revenue Security 104 Contracts for 2015 __ _…
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 May 26th 2015 - Includes 4 newbuilds that are yet to be delivered (1 for Canada…
6,987 employees completed training through Precision Tech centres in 2013 & 2014 6
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…
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…
Focused International Footprint North America Middle East 121 Tier 1 Rigs in Canada 4 active rigs in Saudi Arabia 103 Tier 1 Rigs in U.S. 2 active rigs in Kurdistan Focused on development drilling 3 active rigs in Kuwait 1 active…
Positioned InNorth Comprehensive Most ActiveCoverage American North American Regions Dots representative of areas where Precision has had operations within the past two years 10
Delivers Shareholder Value Key Key Financial Operational Metrics Metrics Operating Earnings Safety Performance Return on Capital Employed Mechanical Downtime Total Shareholder Return Employee Retention 11
Competitive Strategy Tailored for Development Drilling PEOPLE SYSTEMS & SCALE DRILLING TECHNOLOGY PRODUCES LOWER RISK MAXIMUM EFFICIENCY ATTRACTIVE RETURNS 12
Precision HR Training and Processes Career Path Management Field Training Long-term Investments Compensation Programs Permanent Training Structured Promotion Facilities with Fully Programs Functioning Rigs EXPERIENCED,…
Global recruitment 7 Countries 10 Provinces 50 States Toughnecks program processed 44,461 applications and hired 4,013 people in 2014 90% retention target of key field positions 14
Technical Support centres Supply Chain Asset Integrity Management Maintenance Standard Leverage Procurement Centralized Support Vendor Management In House Repair & Rebuild Centralized Support SYSTEMS & SCALE Manufacturing +…
Nisku Drilling Support Centre Safety & Repair & Rig Build & Operations Maintenance Construction Training 16
Unique Schlumberger Alliance Drives Efficiency Precision field execution Maximum efficiency and customer interface Reliability More productive drilling programs Better field economics Schlumberger downhole tools &…
Fully Industrialized Development Drilling Maximum Efficiency Repeatability + Predictability Risk Minimization Technology deployment Long-term economic mindset 18 Precision Super Triple rigs operating in Duvernay
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…
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 20
International Revenue Growth Initiated Georgia with 1 rig Deployed additional 1 rig 70 to Saudi Late Q2 2014 - Initiated Kuwait with 2 Rigs 60 International Revenue (million) 50 Initiated Kurdistan +24% with 2 Rigs 40…
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. (10 delivered) 195 320 3 to Canada (2 delivered) 428 1 to Kuwait…
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…
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…
Appendix 26
June North American Market Update Oil-weighted regions are more than 50% below November 2014 peak activity levels. Decline in activity is increasing at a decreasing rate. Operators focusing on core areas of unconventional plays.…
Canadian Activity Update 800 700 Canadian Active Land Rig Count 2011 600 500 400 300 200 100 0 5 Year Range 2010 - 2014 2013 2014 2015 Source: BHI 28
Oil Drilling Dominates Activity Total rig count 2,000 has dropped 54% from Peak 1,800 Oil rig count has dropped 1,600 58% from Peak U.S. Active Land Rig Count 1,400 1,200 1,000 800 600 400 200 0 2000 2001…
Precision Horizontal Leadership Percentage of Horizontal/Directional Wells United States 1,2 Canada 3 86% 85% 91% 82% Precision Industry Precision Industry 1. Precision Q1 2015 Average. 2. Baker Hughes rig count average…
North American Market Has Transitioned To Industrialized Resource Drilling 1985-2005 2005-2010 2010-PRESENT Reservoir Drilling Resource Drilling Emergence Industrial Resource Drilling Commodity Vertical gas Vertical gas Horizontal…
Precision Commands Leadership In Canadian LNG 1 Approved export capacity of 26Bcf/day Opportunity for 20 to 25 rigs per Bcf of export capacity Longer-term demand source Require deeper Tier 1 rigs ST-1200 and ST-1500 rigs ideal…
Precisions Tier 1 Super Series Fleet High Performance Horizontal Drilling Machines Super Triple 1500 1 Super Triple 1200 2 Super Single Rapid mobility: Walking/skidding system Location to location Sophisticated connections…
Precisions Canadian Dayrate Strength Average Quarterly Dayrate 24,000 22,000 Q4 20,000 Q3 Q2 Q1 18,000 16,000 Year over year, quarterly average increase of 8% from 2010 to 2015 14,000 12,000 2010 2011 2012 2013 2014…
Balance Sheet Strength Available liquidity as of Attractive Capital Structure (1) 3/31/2015(2) Total debt to total capital: 45% 1,293 Net debt to total capital: 35% Interest coverage: 6.3x 449 Cash Long maturity, low cost debt…
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