Annual General Meeting May 11, 2016 Precision Drilling Corporation 1
Historical North American Drilling Activity U.S. Land Rig Count Canadian Land Rig Count 10 Year History 5 Year History 1806 2,000 2014 Average 800 Active Rigs 1,800 700 1,600 600 1,400 -48% 500 1,200 400 378 2014…
Results 2015 and Q1 2016 2015 Revenue 1.56 Billion 2015 EBITDA 474 Million 2015 Revenue decreased 34% from 2014 EBITDA margins decreased to 30% from 34% in 2014 Q1 2016 Revenue decreased 41% from Q1 2015, EBITDA margins…
Cash Management Reduced Limited Growth Variable Field Overhead Maintenance Capex Cost Reductions Capex Maintain High Performance, High Value Positioned for Prolonged Downturn Operating center 24 million of Management 120…
Precisions 2016 Strategic Priorities Strong Liquidity Position Ample cash balance and revolver access Sustain High Performance, High Value competitive positioning People, assets, systems Position for an eventual rebound…
Positioning for the Rebound High Performance Liquidity Asset Integrity Broad Footprint (as of 3/31/2016) People 476 Cash 734 Revolver Revolver/ Operating Facilities Available (Maturity June 3, 2019) Proven track record…
Positioning for the Rebound High Performance Liquidity Asset Integrity Broad Footprint (as of 3/31/2016) People 476 Cash 734 Revolver Revolver/ Operating Facilities Available (Maturity June 3, 2019) Proven track record…
Recruiting in a Rebound Toughnecks Program 102,224 Applications processed 2013-2015 1,200 Screened candidates in the system ready to work 313 Drillers 85% at lower positions 320 Rig Managers 85% at lower positions…
Staffing for a Rebound Retention and Development of Key Personnel Precision HR Training and Processes Permanent Training World-Class Safety Long-term Facilities with Fully Culture and Structured Leadership Compensation Programs…
Positioning for the Rebound High Performance Liquidity Asset Integrity Broad Footprint (as of 3/31/2016) People 476 Cash 734 Revolver Revolver/ Operating Facilities Available (Maturity June 3, 2019) Proven track record…
High Performance Super Single and Super Triples Rig Fleet 1,2 254 16 Upgrade Candidates 8 International 145 101 U.S. Tier 1 Rigs Added 93 129 Canada 1 Jan, 2009 11 Feb, 2016 1) As of February 11th 2016 -…
Drilling Support Centers and Precision Supply Leverage Scale Centralized Support Vertically Integrated Centralized Procurement Repair & Maintenance Rig Build & Construction Houston Texas Nisku - Alberta 13
Positioning for the Rebound High Performance Liquidity Asset Integrity Broad Footprint (as of 3/31/2016) People 476 Cash 734 Revolver Revolver/ Operating Facilities Available (Maturity June 3, 2019) Proven track record…
Comprehensive North American Footprint / Targeted International Markets Dots representative of areas where Precision has had operations in 2014 and 2015 15
Geographical Diversification 2007 to 2015 Geographical Diversification Canadian revenue diversified from 95% to 38% U.S. revenue increased from 5% to 48% International expansion from 0% to 14% 100% International 80% 60%…
Positioning for the Rebound High Performance Liquidity Asset Integrity Broad Footprint (as of 3/31/2016) People 476 Cash 734 Revolver Revolver/ Operating Facilities Available (Maturity June 3, 2019) Proven track record…
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…
Responsive Capital Allocation 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%…
Positioning for the Rebound People Asset Integrity Ample Liquidity 21
Loading...
