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 1,400 500 1,200 400 1,000 300 800 200 600 100 400 0…
Precisions 2016 Strategic Priorities 1. Maintain strong liquidity through the downturn 2. Sustain High Performance, High Value competitive positioning 3. Position for an eventual rebound a. Asset integrity maintain high quality…
Managing Through The Cycle Rig Capability 238 Tier 1 Rigs _ Maintain High Performance __ operations Liquidity Strong Balance Sheet with 445 million Cash Variable operating and capital Variable Cost Structure expenditures Reduce…
Fully Industrialized Development Drilling Maximum Efficiency Repeatability + Predictability Risk Minimization Technology Deployment Long-term Economic Mindset 6 Precision Super Triple rigs operating in Duvernay, 2015.
High Performance Super Single and Super Triples Rig Fleet 1,2 254 16 Upgrade Candidates 8 International 101 U.S. 145 Tier 1 Rigs Added 93 129 Canada 1 Jan, 2009 11 Feb, 2016 1) As of February 11th 2016 -…
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 2015 Top 50 Customers 1 70 9 60 8 Private 20% 25 Public 72% 21 8% 30 National Oil Companies 36 31 Average market cap. of 41 billion…
Positioned InNorth Comprehensive Most ActiveCoverage American North American Regions Dots representative of areas where Precision has had operations in 2014 and 2015 10
Focused International Footprint North America 135 rigs in Canada 102 rigs in U.S. Focused on development drilling Middle East 4 rigs in Saudi Arabia 2 rigs in Kurdistan 1 rig in Georgia 5 rigs in Kuwait Mexico 3 currently…
Increasing International Diversification International revenue was 14% of total in 2015, up from 3% in 2012. 2012 2013 2014 2015 3% 7% 8% 14% 51% 49% 48% 46% 44% 46% 46% 37% Two additional contracted rigs to be Canada…
Capital Spending Highlights 2016 Capital 202 million 44 158 million for Expansion & Upgrades Capital 2 new-build rigs for Kuwait 158 44 million for Maintenance, Infrastructure and Upgrades 187 Expansion & Upgrades Maintenance &…
Balance Sheet Strength Available liquidity as of Attractive Capital Structure (1) 12/31/2015 2 Net debt to total capital: 40% 1,199 Interest coverage: 3.6x 445 Cash Long maturity, low cost debt Average interest rate of 6.2%…
Cost Management In Lower Activity Environment Variable Cost Structure Reduced Maintenance Capex Limited Growth Capex Variable Field Cost Overhead Reductions Active Fixed Cost Operating center Management consolidation 2015…
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 445 million of cash Contract position…
Appendix 18
Canadian Activity Update 800 700 Canadian Active Land Rig Count 600 500 400 300 200 100 0 5 Year Range 2011 - 2015 2014 2015 2016 Source: Baker Hughes land rig count as of Feb. 12. 2016 19
Oil Drilling Dominates Activity 2,000 1,800 1,600 U.S. Active Land Rig Count 1,400 1,200 1,000 800 600 400 200 0 2000 2002 2004 2006 2008 2010 2012 2014 2016 Oil Gas Source: BHI, as of February 5th, 2016 20
PEOPLE SYSTEMS & SCALE DRILLING TECHNOLOGY PRODUCES LOWER RISK MAXIMUM EFFICIENCY ATTRACTIVE RETURNS 21
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 +…
8,680 employees completed training through Precision Tech centres in 2013 2015 23
Global recruitment 7 Countries 10 Provinces 50 States Toughnecks program processed 13,505 applications and hired 506 people in 2015 90% retention target of key field positions 24
Nisku Drilling Support Centre Safety & Repair & Rig Build & Operations Maintenance Construction Training 25
Completion & Production Segment: Full Well Cycle Exposure Largest well service provider in Canada and established presence in U.S. Over 150 Well Service, Snubbing and Coil Tubing rigs Large fleet of high value rental equipment…
International Revenue Growth Deployed 1 rig to Georgia Deployed additional 1 rig to Kuwait Signed 2 newbuild contracts for delivery to Kuwait in early 2017 Initiated Kuwait with 2 Rigs Deployed additional 240 1 rig to Saudi…
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…
Loading...
