UBH Peters & Co. Limited 2014 Energy Conference Toronto September 9th, 2014 1
Precisions Competitive Strategy PEOPLE DRILLING TECHNOLOGY SYSTEMS & SCALE PRODUCES LOWER RISK MAXIMUM EFFICIENCY ATTRACTIVE RETURNS 3
Recent Precision Developments v v v NEWBUILD ALLIANCE STRONG Super Series with Financial Demand Schlumberger Performance Announced newbuilds: Unique service and Four quarters of growing 18 in 2014 technology offering…
Unconventional Development Driving Horizontal Drilling Market 1,600 16% CAGR U.S. Active Horizontal Land Rig Count 1,300 1,000 Tier 1 newbuilds Integrated Directional Drilling Schlumberger alliance 700 Rig upgrade…
Oil Fundamentals Strongest in Decades 2,000 1,800 1,600 U.S. Active Land Rig Count 1,400 1,200 1,000 800 600 400 200 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Source:…
Precision Trains, Develops and Retains High Performance People Drilling Rigs (US & Canada) Superintendent Rig Manager Driller Average experience 16 yrs 14 yrs 8 yrs TTM Retention 84% 90% 88% For 2013, 255 Precision…
Precisions Established Systems Ensure Highly Skilled Personnel Precision HR Training and Processes Career Path Management Field Training Long-term Investments Compensation Programs Structured Promotion Permanent Training…
Precision High Performance Systems at Work in 2013 Toughnecks talent Precision acquisition program construction processed 44,274 of 2 ST-3000 applications and hired rigs in Dubai 2,798 people 3,992 employees completed training…
Precision High Performance ST-1500 in Bakken Support complex Drilling module Utility Corridor 10
1 Growth in Tier 1 Super Series Fleet U.S. Canada 238 International 222 200 +145 188 113 98 87 144 83 120 109 67 93 54 48 120 120 110 105 77 61 66 3 4 5 2008 2009 2010 2011 2012 2013 2014 2015 Year End…
North American Tier 1 Drilling Business Has Evolved 1985-2005 2005-2010 2010-PRESENT Reservoir Drilling Resource Drilling Emergence Industrial Resource Drilling Commodity Vertical gas Vertical gas Horizontal gas, development mode…
Unique Schlumberger Alliance Drives Integrated Drilling Growth Precision field execution Maximum efficiency and customer interface Reliability More productive drilling programs Better field economics Schlumberger…
Positioned In Most Positioned in Most ActiveActive NorthRegions North American American Regions Dots representative of areas where Precision has had operations within the past two years 14
Top U.S. Operators Recognize Precisions Value In 2013, Precision worked for 9 out of 10 of todays most active U.S. E&P companies, compared to just four of those companies in 2007. 2007 2013 4 out of 10 9 out of 10 *…
Precisions Canadian Dayrate Growth Average Quarterly Dayrate 24,000 22,000 Q4 20,000 Q3 Q2 Q1 18,000 16,000 Year over year, quarterly average increase of 11% from 2010 to 2013 14,000 12,000 2010 2011 2012 2013…
Canadian LNG Prospect Source basins include Montney, Horn River, Duvernay, and Fort Liard 26 Bcf of export capacity has been approved by the National Energy Board of Canada Source: Risky Business: This issue of timing,…
Precision Commands Leadership In Canadian LNG Proposed projects 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 for type of…
Established International Operations Middle East 4 rigs in Saudi Arabia (3 active, 1 deployment late 2014) 2 active rigs in Kurdistan 3 rigs in Kuwait (2 active, 1 deployment mid 2015) Focus on deep high pressure drilling…
International Revenue Growth Late Q2 2014 - Initiated Revenue 50 Kuwait with 2 Rigs Initiated Kurdistan with 2 Rigs International Revenue (million) 40 +29% Deployed additional 3 Rigs to Mexico 30 Initiated Saudi with…
Completion & Production Segment: Full Well Cycle Exposure Largest well service provider in Canada and growing presence in U.S. 210 Well Service and Snubbing Rigs 11 Coil Tubing units Large fleet of high value rental equipment Camps…
Canadian Well Servicing Activity Lagging Growing Inventory of Wells 230,000 1,200 Industry well service hours (000s) Operated Oil & Gas wells 220,000 1,000 210,000 800 200,000 0 600 2009 2010 2011 2012 2013…
Positioned In Most Active Completion & Production North American Regions Services Footprint Canadian Service Centers Fort St. John, BC Brooks, AB Grande Prairie, AB Drayton Valley, AB Lloydminster, AB Red Deer, AB Estevan, SK…
Increasing Diversification of Revenue Contribution Canada U.S. International 2012 2013 3% 7% 51% 49% 46% 44% 26
Capital Spending Highlights 1 2014 Planned Capital Spending Construction and delivery of 18 Expansion & Upgrades newbuild Super Series rigs in 2014 Maintenance & Infrastructure 8 to U.S. 7 to Canada 199 195 3 to Middle East…
Balance Sheet Flexibility Available liquidity as of Attractive Capital Structure (1) 6/30/2014(2) Total debt to total capital: 42% Net debt to total capital: 33% 1,294 Interest coverage: 7.3x Long maturity, low cost debt 576 Cash…
Precision Drilling Investment Merits Leading North American resource driller 238 High Performance Tier 1 rigs Schulmberger alliance 30% growth in U.S. Tier 1 Fleet Delivering high return growth investments Increasing…
Appendix
September North American Market Update Tier 1 demand strong, pricing firm and renewals moving to higher dayrates. Tier 1 utilization approximately 90%. Precision operates 211 Tier 1 rigs with 27 additional announced deliveries…
Canadian Activity Update 800 700 Canadian Active Land Rig Count 600 2011 500 400 300 200 100 2009 0 5 Year Range 2009 - Present 2012 2013 2014 Source: BHI 32
Proposed LNG Export Facilities in British Colombia Capacity NEB Export Application NEB Maximum Annual Expected Location Asset Name Ownership (Bcf) 1 Status and Length Export Allowance (Bcf) Start Date Kitimat, B.C. Douglas Channel…
Revenue and Activity Growth in Non-Canadian Drilling 300 2,200 PD U.S. and International Revenue ( millions) 252 244 247 250 224 226 217 215 2,000 U.S. Industry Avg. Rig Count * 204 205 199 200 150 1,800…
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…
Precision Horizontal Leadership Percentage of Horizontal/Directional Wells United States 1,2 Canada 3 86% 93% 79% 82% Precision Industry Precision Industry 1. Precision Q2 2014 Average. 2. Baker Hughes rig count average…
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