Precision’s 2019 Strategic Priorities – Creating Shareholder Value Maximize financial results by leveraging our High Performance, High Value Super Series Rig fleet and scale with disciplined cost management Generate strong free cash…
Recent Announcements – August 2019 Press Releases ? Planned 2019 capital expenditures reduced by $25 million, down to $144 million. ? TSX approval for normal course issuer bid of up to 10% of the public float (Share buyback up to…
Precision At A Glance 233 Drilling Rigs1: Canada (116) U.S. (104) International (13) 198 Service Rigs: Canada (190)2 U.S. (8) Complementary Services: Camps & Catering Rentals U.S. Drilling Canada Drilling International C&P &…
Precision’s Competitive Positioning PRECISION SYSTEMS + SCALE HIGHLY SKILLED RIG CREWS SUPER SERIES RIGS
Systems & Scale Supply Chain Management ? Cost Savings ? Vendor Management ? Centralized Support Manufacturing + Capital Projects ? Engineering ? Project Management ? Equipment Manufacturing Technical Support Centres ? Asset…
Recruiting, Training & Retention – Competitive Advantage for Precision 1,200 – 1,400 Screened candidates in the system RETENTION FOR GLOBAL DRILLING OPERATIONS WAS 88% IN 2018 Leadership Development Programs Career Path Management…
Advanced Rig Technology 1500 HP TDS-11 TOP DRIVE 25,000’ + FT RACKING CAPACITY PROCESS AUTOMATION CONTROL (APPS)* DRILLING EQUIPMENT CONTROL SYSTEM* HIGH SPEED DOWNHOLE DATA* “OMNI-PAD” WALKING SYSTEM TRANSFER TANK TWO SPEED…
Precision’s Super Series Investments Driving U.S. Market Share Gains1 >65 NEW BUILDS/ MAJOR UPGRADES IN U.S. MARKET SINCE 2012 CURRENTLY RUNNING 72 RIGS IN THE U.S. 4.0% 4.5% 5.0% 5.5% 6.0% 6.5% 7.0% 7.5% 8.0% 8.5% 0 10 20…
Environmental, Social, Governance (ESG) Activities $661 $65 5.25% Significantly enhance ESG disclosure included in most recent Information Circular, Annual Report and Annual Information Form • Annual Incident Rate Down 29%* •…
2019 STRATEGIC PRIORITY #1 REDUCE DEBT WITH FREE CASH FLOW Generate strong free cash flow and utilize $200 million to reduce debt in 2019 (previously set at $100 million to $150 million) AUGUST 2019 UPDATE ? Announced 2019…
Precision’s Balance Sheet Management Creating Stronger Capital Structure 1. 2015 total includes the 2019 maturity C$200 million senior notes converted at the exchange rate as of Dec 31, 2014. Estimated debt reduction assumes $200 million…
Free Cash Flow Generation 1. Count excludes rigs held for sale. 2. Calculation: Cash from Operations less CapEx. 2011 to 2015 saw extensive investment in U.S. and Middle East fleet. Slight Y/Y decrease in 2019 FCF due to deployment of…
2019 Capital Plan TOTAL: $94M EXPANSION & UPGRADES ? Kuwait new build rig ~$68 million ? ST 1500 SCR to AC conversion ? New-build ST 1500 ? Further expansion of PAC platform MAINTENANCE, INFRASTRUCTURE & INTANGIBLES ?…
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 Q2 2019 UPDATE ? Record level U.S. and…
Revenue and Cash Flow Visibility and Stability TOP 50 CUSTOMERS1 PUBLIC 64% CONTRACT BOOK2 CUSTOMER BASE 1. Includes Canada, U.S. and International operations based on revenue (2018) – Top 50 rankings. 2. Contract book as of…
United States ? Diversified across Lower 48, active in all unconventional plays ? Pricing power on Super Series rigs ? Dayrates and margins improved YTD ? Low cost rig upgrades backed by contracted cash flow ? Technology (PAC, DGS,…
Canada $156 $252 $269 $321 STRONG FREE CASH FLOW, SCALE & MARKET SHARE 1) Cash flow calculated using reported daily margins multiplied by drilling utilization days plus C&P EBITDA, less Canadian maintenance capital expenditure. 2)…
International ESTABLISHED SCALE, STABLE CASH FLOW ? Additional Kuwait newbuild award (spudded first well July 1st) ? Ability to leverage fixed costs with additional deployments ? Targeting IOC’s and NOC’s that value Safety and…
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 C&P EBITDA (millions)
2019 STRATEGIC PRIORITY #3 COMMERCIALIZE RIG AUTOMATION Full scale commercialization and implementation of our Process Automation Control platform, PDApps and PD-Analytics Q2 2019 UPDATE ? Drilled 195 wells with PAC in Q2 -…
Precision’s Technology Strategy COST EFFICIENCIES OPERATIONAL KPIS DIGITAL ENABLEMENT PREMIUM PRICING BEST IN CLASS WELLS MARKET SHARE GAIN $ $ 8947389 5647389 1 0 1 099 12 01 0 01 12 SAP NOVOS INCREASED REVENUE &…
Process Automation Control – Case Study: Adding Pipe While Drilling Ahead Rig 560 - Job 124 CONSISTENT PREDICTABLE REPEATABLE Rig 560 - Job 114 ~49% TIME SAVINGS PER CONNECTION ESTIMATED TOTAL WELL SAVINGS OF APPROXIMATELY 5 TO 8%…
Precision Offering Full Suite Of Drilling Performance Apps INDEPENDENT PRECISION OEM\'s OPERATORS 7 4 1 2 1 ROP OPTIMIZATION DIRECTIONAL DRILLING MECHANICS EQUIPMENT OPTIMIZATION RISK MITIGATION OPEN-SOURCE PLATFORM CAN…
Technology Commercialization – Revenue Potential REVENUE IMPACT Each technology is a service sold to customers as bolt on to our existing rigs FLEET PULL THROUGH Pull through on existing rigs and directional drilling service…
GENERATING STRONG FREE CASH FLOW FROM LONG-LIFE ASSETS DIGITAL TECHNOLOGY LEADERSHIP AS A DIFFERENTIATOR HIGHER EQUITY VALUATION THROUGH CASH FLOW DELEVERAGING ANNOUNCED SHARE BUYBACK PROGRAM – TSX/NYSE APPROVED NCIB
Precision’s 2018 Strategic Priorities Consolidated utilization days increased 14% year-over-year. U.S. Drilling margins up 25%, Canadian Drilling margins up 4% and International Drilling margins remained stable. Achieved highest market…
Historical North American Drilling Activity graphs line graphs
Precision’s Balance Sheet Management 1. Chart includes 2019 redemptions/open market purchases from reported Q2, 2019 results totaling US$93M or C$124 million YTD. August 19, 2019 press release updated YTD reduction to US$102 million or…
U.S. Market Share Transition 1. Top 5 Drillers Includes H&P, Patterson, Nabors, Precision, & Ensign. Acquired companies only included in count post transaction. Individual peer activity provided by RigData. Industry total averages…
Current State – Wide Dispersion of Well Results ? Currently wide ranging days to drill ? Automation tightens the range and reduces overall drill times ? For PD – strong utilization, incremental revenue and competitive…
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