*Rig 576, Loving County TX, Permian Basin TSX: PDTSX: PD NYSE: NYSE:PDS PDS PRECISION DRILLING CORPORATION Annual and Special Meeting of Shareholders May 3, 2019 1
Precisions 2019 Strategic Priorities Creating Shareholder Value REDUCE DEBT WITH FREE CASH FLOW Generate strong free cash flow and utilize 100 million to 150 million 1. to reduce debt in 2019. Increased long-term debt reduction…
Precision At A Glance HIGH PERFORMANCE LAND DRILLER 2018 REVENUE BY GEOGRAPHIC REGION STRONG GLOBAL SCALE 233 Drilling Rigs : 1 Canada (116) U.S. Drilling U.S. (104) International (13) Canada Drilling 198 Service Rigs:…
Precisions Competitive Positioning HIGHLY SKILLED RIG PRECISION SYSTEMS + SUPER SERIES RIGS CREWS SCALE 5
Recruiting, Training & Retention Competitive Advantage for Precision FIELD RECRUITING A CORE FOCUS 213,722 Applications processed 2013-2018 (35,750 Applications in 2018) 1,200 1,400 Screened candidates in the system TECH…
Systems & Scale DRIVING OPERATIONAL EXCELLENCE AND LOWER COSTS IT Infrastructure Manufacturing + and ERP Capital Projects Supports Increased Data Flows Engineering Operating Efficiencies Project Management Fixed Cost Leverage…
Advanced Rig Technology 1 25,000 + FT RACKING CAPACITY PRECISION SUPER TRIPLE 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…
Precisions Super Series Investments Driving U.S. Market Share Gains1 70 8.5% 8.0% 60 Cumulative New Builds/Major Upgrades 7.5% 50 7.0% U.S. Market Share 40 6.5% 30 6.0% 5.5% 20 5.0% 10 4.5% 0 4.0% 2012 2013…
Environmental, Social, Governance (ESG) Activities Significantly enhance ESG disclosure included in most recent Information Circular, Annual Report and Annual Information Form PEOPLE GOVERNANCE COMMUNITY ENVIRONMENT Annual Incident…
2019 STRATEGIC PRIORITY 1 REDUCE DEBT WITH FREE CASH FLOW Generate strong free cash flow and utilize 100 million to 150 million to reduce debt in 2019 Q1 2019 UPDATE Announced 2019 debt reduction (84 million year to date) Over…
Free Cash Flow Generation SUPER SERIES RIGS ADDED1 FREE CASH FLOW TRANSITION2 114 SUPER SERIES 300 228 229 231 233 RIGS ADDED 224 20112016: CRITICAL Intl 208 INVESTMENT PERIOD 189 176 U.S. FCF (MILLIONS) 119 0…
2019 Capital Plan 116M EXPANSION & UPGRADES Kuwait new build rig 68 million One ST 1500 SCR to AC conversion MAINTENANCE, New-build ST 1500 delivered in Q1 53M INFRASTRUCTURE & INTANGIBLES Further expansion of PAC platform…
2019 STRATEGIC PRIORITY 2 FINANCIAL PERFORMANCE Maximize financial results by leveraging High Performance, High Value Super Series Rig fleet and scale with disciplined cost management Q1 2019 UPDATE Record level U.S. market share at…
Revenue and Cash Flow Visibility and Stability TOP 50 CUSTOMERS1 PUBLIC CUSTOMER BASE 64% PRIVATE HIGH-EFFICIENCY DEVELPMENT DRILLING FOR PUBLIC, LARGE PRIVATE AND NATIONAL OIL COMPANIES 32% NATIONAL OIL COMPANIES 4%…
United States FREE CASH FLOW, MARKET SHARE GROWTH Diversified across Lower 48, active in all unconventional plays U.S. Market Share1 Pricing power on Super Series rigs 9% Dayrates and margins continue to improve 8% 7% Low…
Canada STRONG FREE CASH FLOW, SCALE & MARKET SHARE 156 Generated 1.8 billion in free cash flow since 20101 252 Virtually no upgrade capital spending planned in2692019 321 Scale drives operational and cost efficiencies…
International ESTABLISHED SCALE, STABLE CASH FLOW 13 TOTAL RIGS IN MIDDLE EAST (INCLUDES KUWAIT NEW BUILD) Kuwait Rig 905 7 NEWBUILD RIGS DEPLOYED SINCE 2014 9 RIGS UNDER CONTRACT Additional Kuwait newbuild award (late…
Completion & Production Largest service rig provider in the WCSB and established presence in the U.S. Well positioned for free cash flow 25% Y/Y increase in total C&P EBITDA in 2018 IMPROVING CASH FLOW Precision Well Service…
2019 STRATEGIC PRIORITY 3 COMMERCIALIZE RIG AUTOMATION Full scale commercialization and implementation of our Process Automation Control platform, PD- Apps and PD-Analytics Q1 2019 UPDATE Drilled 200 wells with PAC in Q1 (increase…
Precisions Technology Strategy 1 0 1 099 8947389 12 MARKET SHARE GAIN 01 DIGITAL 0 ENABLEMENT SAP 5647389 01 BEST IN CLASS WELLS 12 PREMIUM PRICING NOVOS OPERATIONAL KPIS COST EFFICIENCIES 23
Process Automation Control Experienced Driller CONSISTENT PREDICTABLE REPEATABLE Minutes Process Automation Control 41% Overall Time Savings PER CONNECTION Minutes Precision data from Rig 601 field trials 24
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…
Creating Shareholder Value GENERATING STRONG FREE CASH FLOW FROM LONG-LIFE ASSETS HIGHER EQUITY VALUATION THROUGH CASH FLOW DELEVERAGING DIGITAL TECHNOLOGY LEADERSHIP AS A DIFFERENTIATOR 26
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