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 1,000 300 800 200 600 400 100 200 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 b. People Retain and…
Strong Position in Challenging Environment Rig Capability 238 Tier 1 Rigs Maintain High Performance operations __ Liquidity Strong Balance Sheet with 476 million Cash Variable operating and capital Variable Cost Structure…
Positioning for the Rebound 445 476 Cash 734 Revolver Revolver/ Operating Facilities Available (Maturity June 3, 2019) 754 Broad Footprint High Performance Asset Integrity Liquidity (as of 3/31/2016) People…
Fully Industrialized Development Drilling Maximum Efficiency Repeatability + Predictability Risk Minimization Technology Deployment Long-term Economic Mindset 7 Precision Super Triple rigs operating in Duvernay, 2015.
High Performance Super Single and Super Triple 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 April 25th 2016 - Includes 2…
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 13,505 applications and hired 506 people in 2015 90% retention target of key field positions 10
Strong Contract Book backed by Well Capitalized Customers Average Term Contracts 2015 Top 50 Customers 1 59 57 7 7 Private 20% 22 Public 72% 21 31 8% National Oil Companies 30 29 Average market cap. of 41 billion…
Focused 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 Mexico 5 rigs in Kuwait 5 rigs in Mexico 3…
Increasing International Diversification International revenue was 14% of total in 2015, up from 3% in 2012. 2012 2013 2014 2015 44% 37% 46% 46% 46% 48% 51% 49% 3% 7% 14% 8% Canada U.S. International Two additional…
Capital Spending Highlights 2016 Capital 202 million 42 160 million for Expansion and Upgrade 2 new-build rigs for Kuwait 160 42 million for Maintenance and Infrastructure 2017 Capital 187 Expansion & Upgrades No anticipated…
Balance Sheet Strength Available liquidity as of Attractive Capital Structure (1) 3/31/2016 2 Net debt to total capital: 38% 1,210 Interest coverage: 3.7x Long maturity, low cost debt 476 Cash 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 24 million…
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…
Canadian Activity Update 800 700 Canadian Active Land Rig Count 600 500 400 300 200 100 0 5 Year Range 2010 - 2014 2014 2015 2016 Source: Baker Hughes land rig count as of April 22 nd. 2016 20
PEOPLE SYSTEMS & SCALE DRILLING TECHNOLOGY PRODUCES LOWER RISK MAXIMUM EFFICIENCY ATTRACTIVE RETURNS 22
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 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…
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