Precision Drilling Corporation March 2022 Investor Presentation 1
Precision Drilling CREATING SHAREHOLDER VALUE SCALING DIGITAL AND ESG OFFERINGS ACROSS SUPER SERIES FLEET MAXIMIZING OPERATIONAL LEVERAGE IN GROWTH ENVIRONMENT STRICT COST CONTROL AND FREE CASH FLOW GENERATION HIGHER EQUITY…
MARCH 2022 PRECISION MARKET UPDATE New capital allocation framework through 2025 Pay down additional 400 million of debt over 4 years (leverage below 1.5x) Allocate 10% to 20% of free cash flow for return of capital to shareholders…
2021 STRATEGIC PRIORITIES - REVIEW CREATING SHAREHOLDER VALUE Status Grow revenue and market share through Achieved 1 digital leadership position DIGITAL LEADERSHIP Expand AlphaTM digital platform through POSITION…
2021 STRATEGIC PRIORITY 1 REVIEW DIGITAL LEADERSHIP POSITION Grow revenue and market share through digital leadership position 2021 YEAR END SUMMARY Achieved avg. market share of 9% in U.S. and 33% in Canada Ended year with 47…
2021 STRATEGIC PRIORITY 2 REVIEW FREE CASH FLOW TO REDUCE DEBT Demonstrate operational leverage to reduce debt by 100 million to 125 million in 2021 2021 YEAR END SUMMARY Achieved 115 million of debt reduction as of December 31,…
2021 STRATEGIC PRIORITY 3 REVIEW LEADING ESG PERFORMANCE Deliver leading ESG performance to strengthen customer & stakeholder positioning. 2021 YEAR END SUMMARY Strong demand for EverGreenTM suite of environmental solutions…
2022 STRATEGIC PRIORITIES Precisions 2022 Strategic Priorities focus on: 1) Scaling digital and ESG offerings; 2) Maximizing operational leverage to generate free cash flow; and 3) Strengthening balance sheet and competitive…
ALPHATM PORTFOLIO IS EXPANDING & SCALABLE (1,500/day) Process Automation Control Platform Open Platform Hosts 3rd Party Apps Delivers Record Well Times with Consistency Eliminates Human Variance from Operation (250/day…
AlphaAutomationTM RECORD PERFORMANCE CASE STUDY 20-06: Delaware Basin Alpha TM Drilling Productivity Alpha TM vs Offset Drilling Productivity 1400 1400 1280 1280 1200 1200 DRILLING PRODUCTIVITY (FT/DAY) Competitor Average =…
AlphaAppsTM SUITE ESTABLISHED & GROWING FULL SUITE OF DRILLING PERFORMANCE APPS DRILLING ROP 9 OPTIMIZATION Open platform DIRECTIONAL 2 3 3rd Party collaboration Greater customer choice DRILLING 1 1 MECHANICS Broader access…
ALPHATM SETS NEW BENCHMARK CASE STUDY 20-08: MONTNEY DRILLING PROGRAM Days vs Depth Performance Curve 0 500 1000 1500 2000 2500 3000 3500 4000 4500 5000 0 2 4 6 8 10 12 Median Non-Alpha Competitor Rig Median…
PD EVERGREENTM SOLUTIONS HELP CUSTOMERS REDUCE EMISSIONS 14
FULLY-SCALED GEOGRAPHIC FOOTPRINT CREATES OPERATING LEVERAGE UNITED STATES Market share growth across Lower 48 Precision AlphaTM Technologies driving further growth 104 Drilling Rigs and 10 Well Servicing Rigs1 Current active…
PERSONNEL A COMPETITIVE ADVANTAGE IN LABOR CHALLENGED MARKET FIELD RECRUITING A CORE FOCUS TECH CENTERS TRAINED OVER 2,400 PEOPLE IN 2020 90% RETENTION FOR GLOBAL OPERATIONS IN 2020 1,200 1,400 246,133 50-200 Applications…
BALANCE SHEET & CASH FLOW PROFILE STRENGTHENING DEBT MATURITY PROFILE DEBT REDUCTION PROGRESS1 Long-term Debt US millions 500 No senior note maturities for 4 years 1.6 Long-term Debt US billions 400 400 Average cost of…
SHAREHOLDER VALUE SCALING DIGITAL AND ESG OFFERINGS ACROSS SUPER SERIES FLEET MAXIMIZING OPERATIONAL LEVERAGE IN GROWTH ENVIRONMENT STRICT COST CONTROL AND FREE CASH FLOW GENERATION CREATING SHAREHOLDER HIGHER VALUE EQUITY…
APPENDIX PRECISION DRILLING CORPORATION
DELIVERING ON STRATEGIC PRIORITIES 20
ALPHATM TRACK RECORD OF DELIVERING VALUE All case study details available on Precision Drillings website. 21
UNITED STATES MARKET SHARE GROWTH COUNTRY-WIDE SCALE DIGITAL LEADERSHIP 104 TOTAL RIGS STANDARDIZED SUPER SERIES RIGS 68 SUPER TRIPLES ALPHA-CAPABLE AC TRIPLES Diversified across Lower 48, active U.S. MARKET SHARE in…
CANADA DOMINANT POSITIONING LEADING MARKET SHARE STRONG FREE CASH FLOW 109 TOTAL RIGS STANDARDIZED SUPER SERIES RIGS 27 SUPER TRIPLES ALPHA-CAPABLE AC TRIPLES 60+ SUPER SINGLES DOMINANT POSITION IN HEAVY OIL CANADIAN…
INTERNATIONAL ESTABLISHED SCALE Kuwait Rig 905 CONTRACTED CASH FLOW ULTRA HIGH-SPEC RIGS 13 TOTAL RIGS IN MIDDLE EAST 7 NEWBUILD RIGS DEPLOYED SINCE 2014 6 RIGS UNDER LONG-TERM CONTRACT Average of six rigs…
COMPLETION & PRODUCTION DIVERSIFIED SERVICE LINES LEAN COST STRUCTURE IMPROVED CASH FLOW LARGEST SERVICE RIG PROVIDER in the WCSB and established presence in the U.S. Well positioned for free cash flow positive cash generation in…
REDUCED COST STRUCTURE LONG-LIFE ASSETS AND VARIABLE COST STRUCTURE DRIVES STRONG CASH GENERATION SUSTAINABLE COST REDUCTIONS 140 120 100 C millions 80 60 40 20 0 Capital Expenditures G&A Interest Expense…
BENEFIT OF LONG-LIFE ASSETS 98 MILLION BUDGET CapEx needs are primarily maintenance related 56 MILLION 42 MILLION MAINTENANCE DIGITALLY-ENABLED EXPANSION & INFRASTRUCTURE UPGRADES MODERN & INTANGIBLES AlphaTM Technologies…
Systems & Scale DELIVER PERFORMANCE INTEGRATED BUSINESS MODEL DRIVING EXCELLENCE & LOWERING COSTS IT Infrastructure and ERP Manufacturing + Capital Projects SAP S4 HANA Supports Increased Data Flows Engineering Operating…
ADVANCED RIG TECHNOLOGY REMOTE OPERATIONS CONTROL CENTER OPERATIONAL EFFICIENCY (OPTIMIZATION*) REDUCES EMISSIONS 1 25,000 + ft Racking Capacity 2 AlphaAutomationTM, AlphaAppsTM & AlphaAnalyticsTM PRECISION SUPER TRIPLE 3 Drilling…
HISTORICAL INDUSTRY DRILLING ACTIVITY U.S. LAND RIG COUNT CANADIAN LAND RIG COUNT 10 YEAR HISTORY 5 YEAR HISTORY 1,804 2018 2014 Avg 378 2,000 Active Rigs 400 2019 2014 Avg Active Rigs 2020 1,800 350 2021 135 1,600 2019 Avg…
TECHNOLOGY COMMERCIALIZATION GENERATING REVENUE GROWTH REVENUE IMPACT FLEET PULL THROUGH REINFORCED COMPETITIVE ADVANTAGE Digital platform sold to customers as Pull through on existing rigs and Strengthens competitive advantage bolt…
POSITIONED FOR NEW ENERGY OPPORTUNITIES GHG REDUCTIONS GEOTHERMAL DRILLING PROVIDING CUSTOMERS REAL SOLUTIONS DEMONSTRATED RESULTS Modern fleet significantly reduces environmental impact. 56 rigs with Dual-Fuel or Natural Gas…
PERFORMANCE ON ESG INITIATIVES 2021 2nd Annual Corporate Responsibility report published Summer 2021 Available on PD website Consistent with SASB and TCFD disclosure standards ESG metrics included in executive compensation PEOPLE…
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