Skip to main content CREDIT SUISSE ENERGY CONFERENCE – Precision Drilling Corporation Investor Presentation | Shale Experts
Loading...
Pm

CREDIT SUISSE ENERGY CONFERENCE – Precision Drilling Corporation

Precision Drilling Corporation · Feb 25, 2015 · 37 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. CREDIT SUISSE ENERGY CONFERENCE – Precision Drilling Corporation – slide 1
    Credit Suisse Energy Conference UBH Vail, CO February 25th 26th, 2015 1
  2. CREDIT SUISSE ENERGY CONFERENCE – Precision Drilling Corporation – slide 2
    Update on Current Market Environment Commodity price volatility is Experienced organization and reality of our business management team Precision positioned to handle down market Fleet of in demand Tier 1 assets Strong…
  3. CREDIT SUISSE ENERGY CONFERENCE – Precision Drilling Corporation – slide 3
    Tier 1 Fleet Well Positioned 1 U.S. Canada 234 International 217 200 188 +141 106 93 87 144 83 120 109 67 93 54 48 119 122 110 105 77 61 66 3 5 6 2008 2009 2010 2011 2012 2013 2014 2015 Year End To…
  4. CREDIT SUISSE ENERGY CONFERENCE – Precision Drilling Corporation – slide 4
    Balance Sheet Strength Available liquidity as of 12/31/2014 1 1,272 1 1.3 billion in available liquidity 491 Cash Only debt obligations are long-term No principal payments due until 2019 Average interest rate of 6.2%…
  5. CREDIT SUISSE ENERGY CONFERENCE – Precision Drilling Corporation – slide 5
    Well Capitalized Customer Base Top 50 Customers 1 Average market capitalization of 27.4 billion.2 Private 5% Primarily public companies, NOC 8% National Oil Companies (NOC), and well capitalized privates. 87% Accounts for…
  6. CREDIT SUISSE ENERGY CONFERENCE – Precision Drilling Corporation – slide 6
    Contract Coverage Provides Visibility Average Term Contract by Quarter 125 125 125 120 122 117 118 113 115 11 12 13 111 12 11 11 8 9 11 100 46 51 54 43 45 63 63 54 58 75 50 59 59 59 57 57 25 52 49 50 49 0…
  7. CREDIT SUISSE ENERGY CONFERENCE – Precision Drilling Corporation – slide 7
    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 8
  8. CREDIT SUISSE ENERGY CONFERENCE – Precision Drilling Corporation – slide 8
    Competitive Strategy Suits Development Drilling PEOPLE DRILLING TECHNOLOGY SYSTEMS & SCALE PRODUCES LOWER RISK MAXIMUM EFFICIENCY ATTRACTIVE RETURNS 9
  9. CREDIT SUISSE ENERGY CONFERENCE – Precision Drilling Corporation – slide 9
    Fully Industrialized Resource Development Multi-well Pads Maximum Efficiency Repeatability + Predictability Risk Minimization Technology deployment Long-term economic mindset 10
  10. CREDIT SUISSE ENERGY CONFERENCE – Precision Drilling Corporation – slide 10
    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 11
  11. CREDIT SUISSE ENERGY CONFERENCE – Precision Drilling Corporation – slide 11
    High Performance People Precision HR Training and Processes Career Path Management Field Training Long-term Investments Compensation Programs Structured Promotion Permanent Training Programs Facilities with Fully…
  12. CREDIT SUISSE ENERGY CONFERENCE – Precision Drilling Corporation – slide 12
    High Performance Requires Robust Proven Systems And Scale Toughnecks talent acquisition program processed 44,461 applications and hired 4,013 people in 2014 Integrated Rig Supply Tech Center Repair 2,995 employees completed…
  13. CREDIT SUISSE ENERGY CONFERENCE – Precision Drilling Corporation – slide 13
    Unique Schlumberger Alliance Drives Efficiency Precision field execution Maximum efficiency and customer interface Reliability More productive drilling programs Better field economics Schlumberger downhole tools &…
  14. CREDIT SUISSE ENERGY CONFERENCE – Precision Drilling Corporation – slide 14
    Focused Geographic Markets Middle East 4 active rigs in Saudi Arabia 2 active rigs in Kurdistan 3 rigs in Kuwait (2 active, 1 deployment mid 2015) 1 active rig in Georgia Focus on deep high pressure drilling Specialized customer…
  15. CREDIT SUISSE ENERGY CONFERENCE – Precision Drilling Corporation – slide 15
    International Revenue Growth Deployed Late Q2 2014 - Initiated additional 1 rig Kuwait with 2 Rigs to Saudi Revenue 60 50 International Revenue (million) Initiated Kurdistan with 2 Rigs +24% 40 Deployed additional 3…
  16. CREDIT SUISSE ENERGY CONFERENCE – Precision Drilling Corporation – slide 16
    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…
  17. CREDIT SUISSE ENERGY CONFERENCE – Precision Drilling Corporation – slide 17
    Revenue and EBITDA Trends Positive TTM Revenue TTM EBITDA (millions) (millions) 2,400 +16% 900 2,200 +21% 800 2,000 700 1,800 1,600 600 1,400 500 1,200 400 1,000 800 300 600 200 400 100 200 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3…
  18. CREDIT SUISSE ENERGY CONFERENCE – Precision Drilling Corporation – slide 18
    Capital Spending Highlights 1 2015 Planned Capital Spending 2015 467 million Construction and delivery of 17 newbuild Super Series rigs 187 73 13 to U.S. (4 delivered) 195 320 3 to Canada (2 delivered) 394 1 to Kuwait…
  19. CREDIT SUISSE ENERGY CONFERENCE – Precision Drilling Corporation – slide 19
    Precision Drilling Investment Merits Leading North American resource driller High Performance Tier 1 fleet of rigs Strong balance sheet Excellent customer base and geographic diversity Experienced organization and…
  20. CREDIT SUISSE ENERGY CONFERENCE – Precision Drilling Corporation – slide 20
    Appendix
  21. CREDIT SUISSE ENERGY CONFERENCE – Precision Drilling Corporation – slide 21
    February North American Market Update Industry rig count declined over 30% from peak levels in Q4 2014. Further declines expected Non-contracted rigs are first to be released Precision operates 223 Tier 1 rigs (121 Canada, 97…
  22. CREDIT SUISSE ENERGY CONFERENCE – Precision Drilling Corporation – slide 22
    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 23
  23. CREDIT SUISSE ENERGY CONFERENCE – Precision Drilling Corporation – slide 23
    Oil Drilling Dominates Activity 2,000 Total rig count has dropped 30% from Peak 1,800 Oil rig count has dropped 1,600 34% from Peak U.S. Active Land Rig Count 1,400 1,200 1,000 800 600 400 200 0 2000…
  24. CREDIT SUISSE ENERGY CONFERENCE – Precision Drilling Corporation – slide 24
    Unconventional Development Driving Horizontal Drilling Market 1,600 U.S. Active Horizontal Land Rig Count 1,300 1,000 Tier 1 newbuilds Integrated Directional Drilling 700 Schlumberger alliance Rig upgrade program…
  25. CREDIT SUISSE ENERGY CONFERENCE – Precision Drilling Corporation – slide 25
    Precision Horizontal Leadership Percentage of Horizontal/Directional Wells United States 1,2 Canada 3 88% 93% 81% 82% Precision Industry Precision Industry 1. Precision Q4 2014 Average. 2. Baker Hughes rig count average…
  26. CREDIT SUISSE ENERGY CONFERENCE – Precision Drilling Corporation – slide 26
    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…
  27. CREDIT SUISSE ENERGY CONFERENCE – Precision Drilling Corporation – slide 27
    Proposed Canadian LNG Projects Source basins include Montney, Horn River, Duvernay, and Fort Liard 26 Bcf 1 of export capacity has been approved by the National Energy Board of Canada BC government revised tax structure in…
  28. CREDIT SUISSE ENERGY CONFERENCE – Precision Drilling Corporation – slide 28
    Proposed LNG Export Facilities in British Colombia Capacity NEB Export Application NEB Maximum Annual Expected Location Asset Name Ownership (Bcf/d) 1 Status and Length Export Allowance (Bcf/d) 1 Start Date Kitimat, B.C. Douglas…
  29. CREDIT SUISSE ENERGY CONFERENCE – Precision Drilling Corporation – slide 29
    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…
  30. CREDIT SUISSE ENERGY CONFERENCE – Precision Drilling Corporation – slide 30
    PD Tier 1 + Tier 2 & PSST 1 PSSt Tier 2 Tier 1 352 355 337 327 330 322 313 22 26 24 103 109 67 22 74 103 74 108 126 140 126 234 217 200 188 144 109 120 2009 2010 2011 2012 2013 2014 2015 To Date 1)…
  31. CREDIT SUISSE ENERGY CONFERENCE – Precision Drilling Corporation – slide 31
    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…
  32. CREDIT SUISSE ENERGY CONFERENCE – Precision Drilling Corporation – slide 32
    International Activity Expected to Increase 5,086 365 365 4,036 320 To be To be Deployed deployed deployed Q4 2014 1 Q1 2015 Q3 2015 2014 Saudi Georgia Kuwait Q3 2015P ST-2000 2000HP Rig ST-1500 Annualized…
  33. CREDIT SUISSE ENERGY CONFERENCE – Precision Drilling Corporation – slide 33
    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 14,000 increase of 8% from 2010 to 2014 12,000 2010 2011 2012 2013…
  34. CREDIT SUISSE ENERGY CONFERENCE – Precision Drilling Corporation – slide 34
    Balance Sheet Strength Available liquidity as of Attractive Capital Structure (1) 12/31/2014(2) Total debt to total capital: 43% 1,272 Net debt to total capital: 32% Interest coverage: 7.5x 491 Cash Long maturity, low cost debt…
  35. CREDIT SUISSE ENERGY CONFERENCE – Precision Drilling Corporation – slide 35
    Strategy Benchmarking and Measurement Delivers Shareholder Value Financial Operational Metrics Metrics Operating Earnings Safety Performance Return on Capital Employed Mechanical Downtime Total Shareholder Return Employee…
  36. CREDIT SUISSE ENERGY CONFERENCE – Precision Drilling Corporation – slide 36
    Precision Schlumberger Alliance Advantage Drilling Performance Curve 0 Competitor Rig 1 with Third Party Directional Provider Competitor Rig 2 with Third Party Directional Provider Competitor Rig 3 with Third Party Directional…
  37. CREDIT SUISSE ENERGY CONFERENCE – Precision Drilling Corporation – slide 37
    800, 525-8th Avenue S.W. Calgary, Alberta, Canada T2P 1G1 Telephone: 403.716.4500 Facsimile: 403.264.0251 www.precisiondrilling.com 38

From the store

Browse maps, data & reports in the Shale Experts store