*Rig 576, Loving County TX, Permian Basin TSX: PDTSX: PD NYSE: NYSE:PDS PDS PRECISION DRILLING CORPORATION February 2020 1
Precision At A Glance PRECISION DRILLING HIGH PERFORMANCE +30% FCF Yield in 2019 LAND DRILLER Aggressive Debt Reduction & Share Repurchases STRONG GLOBAL SCALE Modern & Standardized Fleet 226 Drilling Rigs: Diversified Customer…
Balance Sheet Update February 2020 Debt Repayment Update 2019 total reduction of 205 million, exceeding 2019 debt target of 200 million. As of January 7, 2020, have reduced debt by additional 32 million in 2020. 2020 target of 100…
Precisions 2020 Strategic Priorities Creating Shareholder Value REDUCE DEBT WITH FREE CASH FLOW Generate strong free cash flow and utilize 100 million to 150 million 1. million to reduce debt in 2020 OPERATIONAL EXCELLENCE…
Recap of Precisions 2019 Strategic Priorities Creating Shareholder Value 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) 1.…
Precisions Competitive Positioning PRECISION SYSTEMS + HIGHLY SKILLED RIG SUPER SERIES RIGS SCALE CREWS 7
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…
Recruiting, Training & Retention Competitive Advantage for Precision FIELD RECRUITING A CORE FOCUS 238,399 Applications processed 2013-2019 (24,677 Applications in 2019) 1,200 1,400 Screened candidates in the system TECH…
Advanced Rig Technology PRECISION IS A RIG TECHNOLOGY LEADER 1 25,000 + FT RACKING CAPACITY 2 ALPHA AUTOMATION + ALPHA APPS* 3 DRILLING EQUIPMENT CONTROL SYSTEM* 6 4 HIGH SPEED DOWNHOLE DATA* 5 OMNI-PAD WALKING SYSTEM 6…
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 200 million to reduce debt in 2019 (previously set at 100 million to 150 million) Q4 2019 UPDATE Announced 2019 debt…
Precisions Balance Sheet Management Creating Stronger Capital Structure DEBT REDUCTION PROGRESS1 DECREASING ANNUAL INTEREST EXPENSE1 US504 MILLION DEBT 110 AVG COST OF DEBT 6.75% 1.6 REDUCTION PROGRESS2 Long-term Debt USBns…
Free Cash Flow Generation SUPER SERIES RIGS ADDED1 FREE CASH FLOW TRANSITION2 114 SUPER SERIES 300 RIGS ADDED 221 222 224 226 20112016: CRITICAL 217 Intl 201 INVESTMENT PERIOD 182 169 U.S. FCF (MILLIONS) 112 0 Canada…
2020 Capital Plan MAINTENANCE & EXPANSION & UPGRADES INFRASTRUCTURE 2020 PLAN: Deployment of 24 additional Maintenance spend highly 95 MILLION AlphaAutomation systems correlated to activity levels Contract-secured upgrades to…
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 Q4 2019 UPDATE Record level U.S. and…
Revenue and Cash Flow Visibility and Stability TOP 50 CUSTOMERS1 PUBLIC CUSTOMER BASE 58% PRIVATE HIGH-EFFICIENCY DEVELPMENT DRILLING FOR PUBLIC, LARGE PRIVATE AND NATIONAL OIL COMPANIES 30% NATIONAL OIL COMPANIES 17% Canada…
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, YTD dayrate & margin improvement 9% Low cost rig upgrades…
Canada STRONG FREE CASH FLOW, SCALE & MARKET SHARE Generated 1.9 billion in free cash flow since 20101 156 252 Virtually no upgrade capital spending planned in2692020 Scale drives operational and cost efficiencies 321…
International ESTABLISHED SCALE, STABLE CASH FLOW 13 TOTAL RIGS IN MIDDLE EAST (INCLUDES KUWAIT NEW BUILD) Kuwait Rig 906 7 NEWBUILD RIGS DEPLOYED SINCE 2014 Additional Kuwait newbuild award (spudded first well July 1,…
Completion & Production Largest service rig provider in the WCSB and established presence in the U.S. Well positioned for free cash flow 63% Y/Y increase in total C&P EBITDA in 2019 IMPROVING CASH FLOW Precision Well…
2019 STRATEGIC PRIORITY 3 COMMERCIALIZE RIG AUTOMATION Full scale commercialization and implementation of our AlphaAutomation, AlphaApps and AlphaAnalytics Q4 2019 UPDATE Announced commercialization of 32 AlphaAutomation…
Alpha Technologies 8947389 5647389 25
Precisions Technology Strategy INCREASED REVENUE & MARKET SHARE: FIRST-MOVER IN RIG AUTOMATION TO REDUCE CUSTOMER DRILLING COSTS 1 0 1 099 8947389 12 MARKET SHARE GAIN 01 DIGITAL 0 ENABLEMENT SAP 5647389 01 BEST IN CLASS…
AlphaAutomation Case Study: Adding Pipe While Drilling Ahead CONSISTENT Driller No AlphaAutomation PREDICTABLE REPEATABLE Time Sequence For Each Joint Hole Depth Rig 560 - Job 114 49% TIME SAVINGS PER CONNECTION…
AlphaApps - Precision Offering Full Suite Of Drilling Performance Apps 15 APPLICATIONS ROP 7 OPEN-SOURCE PLATFORM CAN HOST 3RD PARTY OPTIMIZATION DEVELOPED APPS ON-BOTTOM DIRECTIONAL 4 APPS DRILLING 1 MECHANICS EQUIPMENT 2…
Alpha 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…
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 ANNOUNCED SHARE BUYBACK PROGRAM…
Appendix 31
Historical North American Drilling Activity U.S. LAND RIG COUNT CANADIAN LAND RIG COUNT 10 YEAR HISTORY 5 YEAR HISTORY 2,000 800 2012-2017 Range 1,804 2014 2014 Average 1,800 Active Rigs 700 2016 As of 1/10/2020 rig 2017 1,600…
Precisions Balance Sheet Management SENIOR DEBT MATURITY PROFILE1 (in millions) NO MATURITIES UNTIL DECEMBER 2021 US370 US345 US308 AVERAGE COST OF DEBT OF 6.75% 7.75% 5.25% 7.125% US66 6.5% 2019 2020 2021 2022 2023…
U.S. Market Share Transition Top 5 Drillers Other Drillers 80% 62% 58% 58% 57% 60% 54% U.S. MARKET SHARE 52% 48% 46% 40% 42% 43% 42% 38% 20% 2014 2015 2016 2017 2018 2019 CUSTOMER DEMAND FOR…
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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