Cowen & Company Conference UBH New York December 2nd, 2014 1
Strong demand for new build and upgraded Tier 1 rigs with 18 planned deliveries in 2014 and 16 scheduled for 2015. Alliance with Schlumberger where Precision will market and run Schlumbergers downhole technology on Precision rigs with…
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We will be recognized as the High Performance, High Value provider of services for global energy exploration and development. We deliver High Performance through passionate people supported by superior systems and equipment designed…
Financial metrics Operating earnings (EBIT) Measures out profitability and generally calculated as revenue less expenses Return on capital employed (ROCE) Measures the amount of operating earnings relative to our capital structure…
Unconventional drilling techniques applied to oil have driven significant shift in core business drivers U.S. natural gas rig count down approximately 1,200 rigs since peak in 2008…
Todays Tier 1 industrialized drilling industry focused on unconventional resource development is much more sophisticated, complex and a overall better business than the last two iterations of the drilling business Supported by demand…
Industrialized resource drilling requires high performance operations from contractors with proven systems and scale, and repeatable, predictable and reliable operations. Contractor service strategy needs to be aligned with maximum…
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Sector leading positioning in all key unconventional oil and gas plays Operating infrastructure is ideally located Established presence in oil and liquids focused plays, including: Bakken, Cardium, Duvernay, Eagle Ford, Niobrara and…
Precisions development and investment in field level retention is purposeful and consistent. High Tech training centers in U.S. and Canada Tier 1 assets (Super Series rigs and Schlumberger downhole technology) Focus on and investment…
Precisions established, proven systems ensure High Performance, High Value assets and people are predictable, repeatable and reliable Systems make growth scalable Asset additions Human capital recruitment and training Service line…
Investment in Tier 1 drilling rigs has been the major growth focus of Precision since the end of 2008. Invested 3.1 billion in contract drilling assets (from 2009 to 2014P). Tier 1 rig count growth from 93 at end of 2008 to 238,…
Alliance with Schlumberger creates maximum efficiency for customers. Pairs Precisions Tier 1 drilling technology with best in class downhole tools. Provides single point of contact for customer for drilling and directional drilling…
LNG is a transformational opportunity for Canadian oilfield Precision commands leadership position Operational scale with people, technology and systems necessary to support megaprojects Deep experience with Super Triple pad…
Precision has moved its successful High Performance, High Value strategy from North American to international markets Working for customers who place a premium on high performance High performance assets Highly skilled, well trained…
First Kurdistan rig up and running in Q2 2013 with second rig up and running in Q3 2013 Applied learning's from Saudi Arabia deployment learning from 2012 Two active rigs in Kuwait up and running in Q3 2013 Two newbuild deployments, 1…
With scheduled rig deployments from Q4 2014 to Q3 2015, Precision is on pace to reach a run rate of over 5,000 annual activity days in its international division. __________________________________________________________…
Completion and Production business is driven by horizontal completion, oil activity, new service line additions and U.S. expansion Versatile service rig fleet with capabilities for virtually all service requirements from shallow to…
Sector leading positioning in all key unconventional oil and gas plays in Canada and established presence in North Dakota and Pennsylvania in the United States. __________________________________________________________…
Well servicing activity has not kept pace with the growth in operating wells as many oil and gas companies have chosen to invest money at the drill bit. From 2011 to 2013 the number of wells operated plus new wells drilled grew by 6.2%…
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TTM revenue and EBITDA increasing since Q3 of 2013. Driven primarily by higher activity and pricing with relatively stable operational costs. Delivery of newbuild and upgraded rigs in second half of 2014 and first half of 2014 support…
Precision posted strong third quarter financial results with year over year improvement in several financial and operations metrics. Precision outperformed most of its large peers in several categories. Precisions Canadian activity…
Investments and successful expansion into U.S. and international markets has enabled Precision to diversity its revenue base from the Canadian market. The potential for further revenue diversification exists with significant…
Term contract coverage has increased since the end of 2012. Deployment of new build and upgraded rigs to long term contracts Exposure to international markets, which typically offer longer terms Recontracting of Tier 1 rigs in U.S.…
Precisions customer base primarily consists of large, well capitalized and high credit quality customers. For the 9 months ending 9/30/14, 95% of the revenue generated from the top 50 customers was attributable to public companies and…
The 2014 capital expenditure plan of 908 million is comprised of the following: 577 million for expansion capital, 144 million to upgrade existing rigs, 187 million for sustaining and infrastructure expenditures. Expansion capital…
Balance Sheet structure provides lower cost of capital and flexibility to pursue attractive investment opportunities as well as protection on downturn __________________________________________________________…
Drilling rig count driven by oil directed and horizontal activity Approximately 70% of Precisions Canadian rig count targeting oil Deeper gas drilling ramping up Industry rig count typically peaks in Q1 Precision peak of near 150…
Precisions High Performance services Canadian Tier 1 rig count increased from 66 in 2010 to 118 2014E Increased exposure to deeper drilling __________________________________________________________…
Various projects supported by approximately 15 different international or national oil and gas companies including the largest integrated oil companies in the world. Provincial royalty structure was completed in October and Final…
U.S. market share gains in second half of the 2013 and into 2014. Deployment of higher horsepower assets from U.S. markets to international locations. International newbuilds deployments support further activity and revenue growth.…
Since the beginning of 2009, added 145 Tier 1 rigs, 116 newbuild Super Series rigs and 29 Tier 1 upgrades. Decommissioned 38 drilling rigs in 2009, 36 in 2011, and 52 in 2012. Effective January 1, 2014 we adopted a straight-line…
Strong demand for Tier 1 assets in North American market Support higher dayrates and utilization Drive efficiency in drilling operation and ideal for resource exploitation Rapid mobility and lower downtime creates efficiencies…
The horizontal and directional drilling market has increased from 782 active drilling rigs at the beginning of 2010 to 1,558 today, representing a 15% annual growth rate. The horizontal drilling market is best addressed with Tier 1…
Precisions long history of drilling horizontal wells beginning with SAGD drilling High percentage of Tier 1 assets Larger cap, unconventional focused customers __________________________________________________________…
Customers have increasingly recognized the benefits of Precision services, particularly the most active customers with large-scale, multi-year drilling programs. Of the top 10 most active E&P companies in the U.S. today, Precision…
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