Historical North American Drilling Activity U.S. Land Rig Count Canadian Land Rig Count 10 Year History 5 Year History 5 Yr. Range 2011 - 2015 2,000 1804 800 2014 2014 Average Active Rigs 2015 2016 1,800 700 1,600 600 1,400…
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.…
Precisions 2016 Strategic Priorities: Scorecard Retired 2019 Senior Notes, and partially redeemed 2020 and 2021 Senior Notes Reduced total debt by 213 million Managed strong liquidity position Extended debt maturities Access to…
Precisions 2017 Strategic Priorities Maximize Cash Flow from Operations Sustain High Performance, High Value competitive positioning Advance Rig Technology and Efficiency 6
Precisions 2017 Strategic Priorities Maximize Cash Flow from Operations Sustain High Performance, High Value competitive positioning Advance Rig Technology and Efficiency 7
Precisions 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 1,2,3 119…
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…
Precisions 2017 Strategic Priorities Maximize Cash Flow from Operations Sustain High Performance, High Value competitive positioning Advance Rig Technology and Efficiency 10
Sustain High Performance, High Value Competitive Advantage Added 14 rig years to 2017 contract book, improving visibility next year and market share Reactivated 78 rigs throughout North America, including the Permian, Niobrara,…
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 positions 1 280 Rig…
Precisions 2017 Strategic Priorities Maximize Cash Flow from Operations Sustain High Performance, High Value competitive positioning Advance Rig Technology and Efficiency 13
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% 0.84% Average Canada downtime of 0.42% and 1.39% for U.S. 2011…
High Performance Precision Super Triple (4) CAT 3512 GENSETS INTEGRATED POWER 825,000 LBS MANAGEMENT HOOKLOAD SYSTEM 25,000+FT 1,200 HPTDS-11 RACKING TOPDRIVE CAPACITY (3) 1,600HP 7,500PSI PUMPS DRILLING PROCESS…
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 17
High Performance Well Service Operations Largest service rig provider in the WCSB and an established presence in the U.S. Ideally suited to address maintenance, optimization and completion needs Over 190 Well Service rigs and…
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%…
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…
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…
Manage Strong Liquidity Position Reduced total debt by 2131 million YTD Liquidity as of 9/30/2016 1 Pro-forma 2016 Debt Offering Retired 200 million 2019 Senior Notes 736 Million 181 Million 929 Million Redeemed US250 million of…
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 * 181 million of cash Contract position…
Appendix 24
PEOPLE SYSTEMS & SCALE DRILLING TECHNOLOGY PRODUCES LOWER RISK MAXIMUM EFFICIENCY ATTRACTIVE RETURNS 25
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 28
Nisku Drilling Support Centre Safety & Repair & Rig Build & Operations Maintenance Construction Training 29
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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