Historical North American Drilling Activity U.S. Land Rig Count Canadian Land Rig Count 10 Year History 5 Year History 2,000 1804 800 2014 Average Active Rigs 1,800 700 1,600 600 1,400 500 1,200 943 2015 Average 400…
Market Share Growth 300 Precision continues to deliver High Performance, High Value services, operating the most active fleet in Active North American Drilling Rigs 250 North America. PD 200 Canadian Based Peer A U.S.…
Precision Responding to Improving Outlook Reactivated 59 rigs in Canada from low of 10 rigs to 69 rigs Reactivated 20 rigs in the U.S. from low of 21 rigs to 41 rigs Filled 1,200 positions 120 100 80 Canada - 69 Rigs…
Financial Performance Precisions Resilient Margins Despite a 50% decline in drilling days from the first 9 months of 2015 to the first nine months of 2016, EBITDA margin declined by only 20% due to aggressive cost management and rig…
Recent Financing Actions Issued US350 million Senior Notes due 2023 Retired 200 million Senior Notes due 2019 Redeemed US250 million of 2020 Senior Notes Redeemed US53 million of 2021 Senior Notes Reduced total debt by…
Precisions 2016 Strategic Priorities Manage strong liquidity position Sustain High Performance, High Value competitive positioning Position for a rebound 8
Manage Strong Liquidity Position Liquidity as of 9/30/2016 1 Pro-forma 2016 Debt Offering Reduced total debt by 2131 million YTD 736 Million 193 Million 929 Million Improved financial flexibility Revolver/ Operating Cash…
Sustain High Performance, High Value Competitive Advantage Added 14 rig years to 2017 contract book, improving visibility next year Reactivated 79 rigs throughout North America, including the Permian, Niobrara, Marcellus, Viking,…
Position for the Rebound Toughnecks Recruiting Program 102,224 Applications processed 2013-2015 (16,000 Applications in 2016 1) 1,200 1,400 Screened candidates in the system ready to work 1 517 Drillers 50% at lower…
Position for the Rebound 239 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 15
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 2016YTD Top 50 Customers1 61 7 45 Private 26% 23 8 Public 64% 18 10% National Oil 31 Companies International US 19 Canada Average…
Responsive Capital Allocation 2016 Capital 213 million 43 170 million for Expansion and Upgrade 2 new-build rigs for Kuwait 170 43 million for Maintenance and Infrastructure 2017 Capital 109 million Expansion & Upgrades 187 58…
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 * 193 million of cash Contract position…
Appendix 20
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 December 2 nd, 2016 21
PEOPLE SYSTEMS & SCALE DRILLING TECHNOLOGY PRODUCES LOWER RISK MAXIMUM EFFICIENCY ATTRACTIVE RETURNS 23
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 26
Nisku Drilling Support Centre Safety & Repair & Rig Build & Operations Maintenance Construction Training 27
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 Initiated Kuwait with delivery to Kuwait late 2016 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…
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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