Howard Weil 40th Annual Energy Conference March 28, 2012
Precision Drilling Corporation Overview High Performance High Value Service Provider Marketed fleet of 190 rigs in Canada, 146 rigs in the United States and 6 rigs internationally Reputation for excellent equipment and personnel…
U.S. Rig Count 2000 1800 1600 Active Oil Rig Count 1400 continues US Active Land Rig Count to rise gaining 1200 market share 1000 800 600 Active Gas 400 Rig Count has rolled over 200 0 2000 2001 2002 2003…
Decline in Nat Gas Directed Rig Activity Weeks from Peak 0 4 8 12 16 20 24 28 32 36 40 44 48 52 0% US Land Rigs Targeting Gas - Percentage Drop from Peak -10% 2008 - Drop from Pre-recession High -20% 2011 Current Drop from…
Canadian Rig Activity (Oil/Gas) 800 700 600 CANADA Active Land Rig Count 500 400 300 200 100 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Active Oil Rigs Active Gas Rigs Source: BHI…
Canada Rig Activity (5 - Year Seasonal) 800 700 600 Canadian Active Land Rig Count 500 400 300 200 100 0 January February March April May June July August September October NovemberDecember Source: BHI 5 Year…
Canada / US Active Land Rig Count Targeting Oil 1800 160 1600 140 1400 120 Land Based Rigs Targeting Oil 1200 100 WTI (US/bbl) 1000 80 800 60 600 40 400 200 20 0 0 2000 2001 2002 2003 2004 2005 2006 2007…
Superior Value for Customers Customers Need Reduced Risk Lower Well Costs Safety & Environmental Responsiveness & Flexibility Long-Term Partner People Technology Systems Precision Drilling -9-
High Performance People Superintendent Rig Manager Driller Drilling Rigs (US & Canada) Average experience 18 15 7 (years) TTM Retention 92% 91% 85% Percent Internally 100% 94% 79% Promoted For 2011, 242 Precision drilling rigs…
High Performance Rig Fleet…
Super Single Drilling Rig 1,000 hp 15,000 depth Derrick and Range III drill pipe integrated top drive Automated pipe handling system Substructure, integrated draw works, and BOPs Source: Precision Drilling - 12 -
Super Single Video - 13 -
1200 hp Super Triple Video - 14 -
ST-1200 Super Triple Drilling Rig On Location - 15 -
Positioned In Most Active North American Regions Horn River Cardium Bakken Montney Niobrara Viking Marcellus Western Canada Sedimentary Basin Uinta Basin Utica Antrim Green River Basin Fayetteville Woodford San Joaquin…
Precision North American Land Drilling Activity 300 250 Active Rig Count US & CAN 200 150 Canadian Breakup 100 Canadian Breakup 50 0 Source: Rig Data, Nickles PD Largest Competitor - 17 -
Completion and Production Service Lines Well Servicing Equipment Rentals Camps & Catering Coiled Tubing - 19 -
Vertically Integrated Operations Manufacturing & Repair Distribution & Supply Nisku, AB Red Deer, AB Picture of Rostel Houston, TX Or Tech Center Picture of Columbia Supply Grey Wolf Supply Drilling Site Margin & Quality…
Growth: Directional and International Drilling Directional Drilling International Drilling - 21 -
Capital Structure Overview (Canadian in millions) Unaudited 12/31/2011 Cash and Cash Equivalents 467 Revolving Credit Facility - Total Sr. Secured Debt - Senior Unsecured C Notes due 2019 200 Senior Unsecured US Notes due 2020…
Term Contracted Rigs 300 Forecasted Contract Actual Contract 250 Actual Avg. Active Rigs 200 150 100 50 0 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 2012 Avg. *Actual represents reported…
Key Takeaways Unconventional drilling will continue to drive growth opportunities Precision is uniquely positioned as the most active unconventional driller in North America 49 new builds announced since January 2011 Precision drives…
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