PRECISION AT A GLANCE High Performance Land Driller 256 Drilling Rigs: Canada (136) U.S. (103) International (17) 210 Service Rigs: Canada (202) U.S. (8) Complementary Services: Camps & Catering, Rentals and Water…
HISTORICAL NORTH AMERICAN DRILLING ACTIVITY IMPROVING IN 2018 U.S. LAND RIG COUNT CANADIAN LAND RIG COUNT 10 YEAR HISTORY 5 YEAR HISTORY 1,804 2012-2017 Range 2,000 2014 Average 800 Active Rigs 2014 1,800 2016 700 2017 1,600…
Updated Activity and Outlook Amid Stronger Oil Prices WTI UP 20%1 FROM Q3/17 CONFERENCE CALL 65 As at 1/15/2018 YTD 2018 avg. US62.21 60 64 WTI Close Price (US/Bbl) ACTIVE RIGS IN U.S. VS 55 ACTIVE RIGS AT Q3/17…
Precisions 2017 Strategic Priorities FIXED COST LEVERAGE FINANCIAL DISCIPLINE COMMERCIALIZE RIG AUTOMATION Deliver High Performance, High Maintain strict financial Value service offerings in an discipline in pursuing growth…
FIXED COST LEVERAGE Deliver High Performance, High Value service offerings in an improving demand environment while demonstrating fixed cost leverage Reduced general and administrative costs by 12% y/y1 Stable corporate…
Precisions High Performance Foundation PRECISION SYSTEMS PRECISION CREWS SUPER SERIES RIGS 8
SYSTEMS + SCALE Driving Operational Excellence and Lower Costs Supply Chain Manufacturing + Capital Technical Support IT Infrastructure and Management Projects Centres ERP 9
Precisions Employee Recruiting and Development Program 127,224 Applications processed 2013-2016 (30,700 Applications in YTD1) 1,200 1,400 Screened candidates in the system 100+ drilling rigs reactivated from Q2/16 lows,…
Precisions High Performance Super Series Rigs 3.0 Billion in Drilling Expansion and Upgrade Capital Investment from 2011 2017E Super Series Rigs Designed for Todays Unconventional Peak 2017 U.S. Rig Count as % of 2014 Peak…
PRECISION SUPER TRIPLE Consistent, Predictable and Efficient Reducing well cost Improving performance and efficiency U.S. Super Triple Pad Rig Op. Days as % of Total +46% Providing value to customers increasing 79% 80%…
FINANCIAL DISCIPLINE Maintain strict financial discipline in pursuing growth opportunities with a focus on free cash flow and debt reduction Reinforced liquidity position through credit facility maturity extension Extended…
CANADA Focused on Cash Flow, Leading Market Share GROWTH CASH FLOW 1 (SINCE 2010) (SINCE 2010) 156 765M Invested IN GROWTH CAPITAL GENERATED 252 269 70+ Delivered NEWBUILD & UPGRADED RIGS 1.7B 321 IN CASH FLOW 96%…
UNITED STATES Focused on Market Share Growth, Cash Flow GROWTH MARKET SHARE1 MARKET SHARE GROWTH IN KEY PLAYS SINCE 2010 24% PRECISION DRILLING U.S. 22% 2010 20% 2017 Permian and Woodford (SCOOP/STACK) targeted growth in 18% 16%…
INTERNATIONAL Stable Cash Flow in Low Cost Region ESTABLISHED SCALE IN THE MIDDLE EAST REGION 8 RIGS CURRENTLY UNDER CONTRACT 6 NEWBUILD RIGS DEPLOYED SINCE 2014 INCLUDING TWO IN Q4/16 17 TOTAL RIGS DEPLOYED INTERNATIONALLY…
Revenue and Cash Flow Visibility and Stability 2017 TOP 50 CUSTOMERS1 PUBLIC CUSTOMER BASE 70% Primarily public, large private and national oil companies PRIVATE Average market capitalization of 51 billion 24% (median 16…
PRECISION WELL SERVICING High Performance Well Service Operations Focused on Cash Flow Largest service rig provider in the WCSB and established presence in the U.S. Ideally suited to address maintenance, optimization and completion…
2018 CAPITAL PLAN Strict Financial Discipline PLANNED 2018 CAPEX MAINTENANCE & EXPANSION & UPGRADES INFRASTRUCTURE TOTAL: 62M 94M 32M 32M for Upgrades Fleet well maintained throughout the Plans to upgrade 10-20 Tier 1 rigs to…
Financial Discipline and Debt Reduction Pro Forma Liquidity as of 09/30/2017 1 (in millions) 765 Cash2 69 STRONG LIQUIDITY POSITION Revolver/ Full access to revolving credit facility and Operating available cash balance 696…
COMMERCIALIZE RIG AUTOMATION Commercialize rig automation and efficiency-driven technologies across our Super Series fleet Progress as of 1/12/18 20 rigs running with NOVOS and drilled 135 wells Drilled 130 wells and 1.6 million…
PRECISION SUPER TRIPLE Advanced Rig Technology 1 25,000 + FT RACKING CAPACITY 2 PROCESS AUTOMATION CONTROL (APPS)* 3 DRILLING EQUIPMENT CONTROL SYSTEM* 6 4 HIGH SPEED DOWNHOLE DATA* 5 OMNI-PAD WALKING SYSTEM 6 825,000 LBS…
PRECISION TECHNOLOGY BUILDING BLOCKS RIG AUTOMATION TOP DRIVE MUD PUMPS DIRECTIONAL GUIDANCE SYSTEM PROCESS AUTOMATION CONTROL Steering instructions generated Automates repetitive drilling using algorithms and real-time…
PROCESS AUTOMATION CONTROL Consistent, Predictable, Repeatable Experienced Driller Minutes Process Automation Control 41% Overall Time Savings PER CONNECTION Minutes Precision data from Rig 601 field trials 25
PROCESS AUTOMATION CONTROL Consistent, Predictable, Repeatable EXPERIENCED DRILLER PROCESS AUTOMATION CONTROL NOV controlled testing Consistent results eliminates human variance Allows driller to focus on the wellbore and…
Technology Commercialization Revenue Potential REINFORCED COMPETITIVE REVENUE IMPACT FLEET PULL THROUGH ADVANTAGE New technologies will Each technology is a service strengthen competitive Pull through on existing rigs and sold to…
Investment Merits MARKET SHARE GROWTH TIER 1 FLEET North American driller with High Performance Tier 1 fleet demonstrated market share and focus on automation growth technology commercialization to reduce drilling costs…
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