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 143 Tier 1 Rigs Added _____ with Tier 1 Crews Trained Liquidity Strong Balance Sheet + _____ 434 million Cash Revenue Security 104 Contracts for 2015 __ _…
1 High Performance Rig Fleet 236 6 International 101 U.S. 143 Tier 1 Rigs Added 93 129 Canada 1 Jan, 2009 23 July, 2015 1) As of July 23rd 2015 - Includes 1 newbuild for Canada to be delivered in Q4 2015.…
6,987 employees completed training through Precision Tech centres in 2013 & 2014 6
Balance Sheet Strength Available liquidity as of 6/30/2015 1 1,259 1.3 billion in available liquidity 434 Cash Staggered long-term maturities starting 2019 to 2024 Average interest rate of 6.2% Revolver / 825 operating…
Strong Contract Book backed by Well Capitalized Customers Average Term Contracts 2014 Top 50 Customers 1 104 97 9 5% Private Public 87% 43 63 8% National Oil Companies 45 Average market cap. of 29 billion.2 Accounts…
Focused International Footprint North America Middle East 129 Tier 1 Rigs in Canada 4 rigs in Saudi Arabia 101 Tier 1 Rigs in U.S. 2 rigs in Kurdistan Focused on development drilling 3 rigs in Kuwait 1 rig in Georgia Focus on deep…
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
Fully Industrialized Development Drilling Maximum Efficiency Repeatability + Predictability Risk Minimization Technology deployment Long-term economic mindset 17 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% 46% 46% Canada U.S. International 19
Deployed International Revenue Growth additional 1 rig to Kuwait Initiated Georgia with 1 rig 70 Deployed additional 1 rig to Saudi 60 Late Q2 2014 - Initiated International Revenue (million) Kuwait with 2 Rigs 50…
Capital Spending Highlights 1 2015 Planned Capital Spending 2015 546 million Construction and delivery of 18 newbuild Super Series rigs 187 78 13 to U.S. (all delivered) 195 320 4 to Canada (3 delivered) 468 1 to Kuwait…
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 434 million of cash Contract position backed by…
Appendix 24
Canadian Activity Update 800 700 Canadian Active Land Rig Count 600 500 400 300 200 100 0 5 Year Range 2010 - 2014 2013 2014 2015 Source: BHI 25
Oil Drilling Dominates Activity Total rig count 2,000 has dropped 55% from Peak 1,800 Oil rig count has dropped 1,600 59% from Peak U.S. Active Land Rig Count 1,400 1,200 1,000 800 600 400 200 0 2000 2001…
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…
Balance Sheet Strength Available liquidity as of Attractive Capital Structure (1) 6/30/2015 1 Total debt to total capital: 45% 1,259 Net debt to total capital: 35% Interest coverage: 5.6x 434 Cash Long maturity, low cost debt…
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