Simmons & Company Energy Conference UB H Las Vegas February 26th & 27th, 2014 1
Precision Drilling Overview 2013 Revenue: 2 Billion Location Leading industry position in horizontal drilling U.S Canada 43% 50% Fleet of High Performance Tier 1 assets (211 rigs) 7% International Positioned for high…
February North American Market Update North American customers continue focus on efficiency with premium on drilling speed, move time and safety. Customer demands consistent with Precisions operating strategy. Tier 1 demand remains…
Transition to Oil Drilling 2,000 1,800 1,600 U.S. Active Land Rig Count 1,400 1,200 1,000 800 600 400 200 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Source: BHI Oil Gas 5
Canadian Activity Update 800 700 Canadian Active Land Rig Count 600 2011 500 400 300 200 100 2009 0 5 Year Range 2009 - present 2012 Rig Count 2013 Rig Count 2014 Rig Count Source: BHI 6
Positioned Positioned inIn Most Most Active Active NorthNorth American American Regions Regions Representative of areas where Precision has had operations within the past two years 7
Canadian LNG Opportunity Proposed projects 14Bcf/day Longer-term demand source Require deeper, high spec rigs Opportunity for 20 to 40 rigs per Bcf of export capacity ST-1200 and ST-1500 rigs ideal for type of development…
Superior Value for Resource Customers Resource Exploitation Customer Needs Lower Well Costs/Efficiency Safety & Environmental Industrialized Predictability/Repeatability Process Long-Term Partner People Technology Systems…
High Performance People Drilling Rigs (US & Canada) Average TTM Retention Skilled experience (December 2013) Personnel within (years) Precision Superintendent 18 yrs 88% 531 Rig Manager 15 yrs 93% 5441 Driller 8 yrs 87%…
Precision Systems at Work in 2013 Talent acquisition Construction of 2 team processed ST-3000 rigs in 44,274 applications Dubai and hired 2,798 people 3,992 employees completed training through Precision Tech Centers 1,636 in…
Precisions Tier 1 Super Series Fleet High Performance Horizontal Drilling Machines Super Triple 1500 1 Super Triple 1200 2 Super Single Rapid mobility Smart design Automation & safety Walking/skidding systems Small footprint…
Growth in Tier1 Super Series Fleet Newbuilds Tier 1 Upgrades Beginning of year Tier 1 211 200 11 PSST 188 7 5 7% 24 36 144 8 Tier 2 103 19 30% 116 9 109 3 4 211 Tier 1 16 200 188 63% 144 109 116 93 Total Fleet:…
ST-1500 in Bakken Support complex Drilling / walk module Utility Corridor 14
1 Tier 1 Super Series Rigs by Region Tier 1 rigs 91 115 5 Total 211 1) As of February 24th, 2014. Includes 8 new builds that are yet to be delivered (6 North America and 2 International). Does not include…
Precision Leading Horizontal Drilling in Canada Horizontal/Directional Drilling Precision vs. Industry Precision Industry 100% 92% 80% 60% 40% 92% Horizontal/Directional by Precision in 20% December 0% Jan-09 Jan-10…
Precisions Development Drilling Performance Precisions Development Drilling Performance Marcellus Rig Count 160 18 137 135 16 140 132 123 118 14 120 112 Precision's Active Rig Count 110 Industry Active Rig Count 12…
Precision Tier 1 growth in U.S. Unconventional Development 80 Active Tier 1 Rigs 78 70 70 Permian 64 63 64 64 63 64 61 62 60 57 55 49 50 50 Marcellus 47 41 40 Eagle Ford 30 Williston Haynesville 20 Cana Woodford…
Precision Directional Services Canada and U.S. Capacity of approximately 90 concurrent jobs Integrated service 19
Mexico / Middle East Drilling Footprint Mexico 8 rigs in Mexico Focus on IPM support Opportunity to deploy more rigs in 2014 Middle East 3 active rigs in Kingdom of Saudi Arabia 2 active rigs in Kurdistan, 2 new build rigs…
International Growth Platform 50 Reveune Active Days 45 1,000 40 Initiated Kurdistan with 2 Rigs International Revenue (million) 800 35 Deployed 3 Active Days 30 additional Rigs to Mexico 600 25 Initiated Saudi…
Contract Coverage Increasing Average Term Contract by Quarter 160 International Canada US 140 120 100 80 60 40 20 0 Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q3'13 Q4'13 22
Completion & Production Largest well service provider in Canada Aligned with resource plays Regional coverage Trend to long reach hz wells High Value rentals, camps and catering Market opportunities: U.S., deep basin, BC and oil…
Precisions Canadian Dayrate Growth Average Quarterly Dayrate 24,000 Q4 Q3 22,000 Q2 Q1 20,000 18,000 16,000 Precisions High Performance services Tier 1 rig count increased from 66 in 2010 to 211 2014E 14,000…
Revenue and Activity Growth in Flat Rig Count Environment 250 244 2,200 U.S. Industry Avg. Rig Count * 224 226 217 215 199 204 205 2,100 200 PD U.S. and International 2,000 Revenue ( millions) 150 1,900 100…
Cash Flow Highlights (1) 2014 Planned Capital Spending Corporate Dividend History Expansion & Upgrade Maintenance & Infrastructure 89.4 17.5 16.6 195 13.8 320 13.8 13.8 13.8 December February May August…
Balance Sheet Flexibility Available liquidity as of 12/31/2013 Attractive Capital Structure 1 874 Debt to total capital: 36% Interest coverage: 6.9x Long maturity, low cost debt Average interest rate of 6.5% Covenant light 793…
Precision Drilling Corporation Overview Leading industry position in horizontal drilling Fleet of High Performance Tier 1 assets (211 rigs) Positioned for high return growth investments Increasing shareholder returns…
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