Historical North American Drilling Activity U.S. Land Rig Count Canadian Land Rig Count 10 Year History 5 Year History 800 2,000 1804 2014 Average Active Rigs 1,800 700 1,600 600 1,400 500 1,200 943 400 2015 Average…
Market Share Growth 300 Precision continues to deliver High Performance, High Value services, PD operating the second most active Active North American Drilling Rigs 250 Canadian Based Peer A fleet in North America. U.S.…
Precision Responding to Improving Outlook Reactivated 25 rigs in Canada from low of 10 rigs to 35 rigs Reactivated 10 rigs in the U.S. from low of 21 rigs to 31 rigs Filled 600 positions 100 Reactivated 80 35 Rigs 60…
Financial Performance Precisions Resilient Margins Six months ended June 30 Fiscal ( in millions) 2016 2015 2015 Revenue 466 847 1,556 EBITDA 122 252 474 Margin 26% 30% 30% Drilling Utilization Days Canada 5,197 8,557…
Precisions 2016 Strategic Priorities Manage strong liquidity position Sustain High Performance, High Value competitive positioning Position for a rebound 7
Manage Strong Liquidity Position Available liquidity as of 6/30/2016 1 731 Million 456 Million 1.2 Billion Revolver/ Operating Cash Facilities Availability (Matures June 3, 2019) Attractive Capital Structure 2 Net debt…
Sustain High Performance, High Value Competitive Advantage Signed Four Term Contracts in Late Q2 2016, Improving 2017 Visibility Reactivated 35 Rigs Throughout North America, including the Permian, Niobrara, Marcellus, Viking,…
Position for the Rebound Toughnecks Recruiting Program 102,224 Applications processed 2013-2015 (10,000 Applications in 2016 1) 1,200 1,400 Screened candidates in the system ready to work 1 536 Drillers 50% at lower…
Position for the Rebound 238 High Performance Super Series Rigs 2.8 Billion in Drilling Expansion and Upgrade Capital Investment from 2011 2016E Super Series Rigs Designed for Todays Unconventional Development Drilling Programs…
High Performance Precision Super Triple Efficiency Reducing well cost while improving performance and Downtime efficiency U.S. 2.09% 1.73% 1.65% 1.58% 1.39% Average Canada downtime of 0.42% and 1.39% for U.S. 2011 2012…
Lowering Cost and Improving Performance Leverage Scale Centralized Support Vertically Integrated Centralized Procurement Repair & Maintenance Rig Build & Construction State of the Art Training Rigs Houston Texas Nisku -…
Comprehensive North American Footprint / Targeted International Markets Dots representative of areas where Precision has had operations in 2014 and 2015 14
Geographical Diversification 2007 to 2016YTD Geographical Diversification Canadian revenue diversified from 95% to 36% U.S. revenue increased from 5% to 47% International expansion from 0% to 17% 100% International 80% 60%…
Strong Contract Book backed by Well Capitalized Customers Average Term Contracts 1H 2016 Top 50 Customers1 58 7 Private 20% 21 35 Public 70% 10% National Oil Companies 30 International US Canada Average market cap.…
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…
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 * 456 million of cash Contract position…
Appendix 19
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 September 2 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 +…
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…
8,680 employees completed training through Precision Tech centres in 2013 2015 25
Nisku Drilling Support Centre Safety & Repair & Rig Build & Operations Maintenance Construction Training 26
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 late 2016 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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