Historical North American Drilling Activity U.S. Land Rig Count Canadian Land Rig Count 10 Year History 5 Year History 2,000 800 1,800 700 1,600 600 500 1,400 400 1,200 300 1,000 200 800 100 600 0 February…
Management of Business Through Downturn Rig Capability 238 Tier 1 Rigs _ Maintain High Performance __ operations Liquidity Strong Balance Sheet with 439 million Cash Variable operating and capital Variable Cost Structure…
1 High Performance Rig Fleet 238 8 International 101 U.S. 145 Tier 1 Rigs Added 93 129 Canada 1 Jan, 2009 22 October, 2015 1) As of October 22nd 2015 - Includes 1 newbuild for Canada to be delivered in Q4…
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,…
Strong Contract Book backed by Well Capitalized Customers Average Term Contracts 2014 Top 50 Customers 1 105 12 87 9 5% Private Public 87% 47 64 8% National Oil Companies 37 46 41 Average market cap. of 21 billion…
Increasing Diversification of Revenue Contribution International revenue was 8% of total in 2014, up from 3% in 2012. 2012 2013 2014 YTD 2015 3% 7% 8% 14% 51% 49% 51% 46% 44% 46% 46% 35% Canada U.S. International…
Capital Spending Highlights 1 2016 Capital 180 million 60 120 million for Expansion capital 2 new-build rigs for Kuwait 60 million for Maintenance & Infrastructure 120 187 2015 320 Capital 531 million 721Constructed and…
Balance Sheet Strength Available liquidity as of Attractive Capital Structure (1) 9/30/2015 2 Total debt to total capital: 47% 1,166 Net debt to total capital: 37% Interest coverage: 4.6x 439 Cash Long maturity, low cost debt…
Downturn Initiatives Variable Cost Structure Reduced Maintenance Capex Limited Growth Capex Variable Field Cost Overhead Reductions of more than 40 million Annualized Operating Centre Six facilities closed and Consolidation…
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 439 million of cash Contract position backed…
Appendix 14
Positioned InNorth Comprehensive Most ActiveCoverage American North American Regions Dots representative of areas where Precision has had operations in 2015 15
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 16
Oil Drilling Dominates Activity Total rig count 2,000 has dropped 64% from Peak 1,800 Oil rig count has dropped 1,600 66% from Peak U.S. Active Land Rig Count 1,400 1,200 1,000 800 600 400 200 0 2000 2001…
Delivers Shareholder Value Key Key Financial Operational Metrics Metrics Operating Earnings Safety Performance Return on Capital Employed Mechanical Downtime Total Shareholder Return Employee Retention 18
PEOPLE SYSTEMS & SCALE DRILLING TECHNOLOGY PRODUCES LOWER RISK MAXIMUM EFFICIENCY ATTRACTIVE RETURNS 19
Balance Sheet Strength Available liquidity as of 9/30/2015 1 1,166 1.2 billion in available liquidity 439 Cash Staggered long-term maturities starting 2019 to 2024 Average interest rate of 6.2% Revolver / 727 Operating…
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 +…
6,987 employees completed training through Precision Tech centres in 2013 & 2014 22
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 23
Nisku Drilling Support Centre Safety & Repair & Rig Build & Operations Maintenance Construction Training 24
Fully Industrialized Development Drilling Maximum Efficiency Repeatability + Predictability Risk Minimization Technology Deployment Long-term Economic Mindset 25 Precision Super Triple rigs operating in Duvernay, 2015.
Completion & Production Segment: Full Well Cycle Exposure Largest well service provider in Canada and established presence in U.S. Over 170 Well Service, Snubbing and Coil Tubing rigs Large fleet of high value rental equipment…
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 5 rigs in Kuwait 3 currently 2 to be deployed in…
Deployed International Revenue Growth additional 1 rig to Kuwait Initiated Georgia with 1 rig 70 Deployed additional 1 rig to Saudi 60 International Revenue (millions) Late Q2 2014 - Initiated Kuwait with 2 Rigs 50…
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 Opportunity 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…
Precisions Tier 1 Super Series Fleet High Performance Development Drilling Technology INDUSTRY LEADING RIGS Super Single Super Triple 1200 2 Super Triple 1500 1 Delivering unrivaled economics through High Performance…
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