Update on Current Market Environment Commodity price volatility is Experienced organization and reality of our business management team Precision positioned to handle down market Fleet of in demand Tier 1 assets Strong…
Tier 1 Fleet Well Positioned 1 U.S. Canada 234 International 217 200 188 +141 106 93 87 144 83 120 109 67 93 54 48 119 122 110 105 77 61 66 3 5 6 2008 2009 2010 2011 2012 2013 2014 2015 Year End To…
Balance Sheet Strength Available liquidity as of 12/31/2014 1 1,272 1 1.3 billion in available liquidity 491 Cash Only debt obligations are long-term No principal payments due until 2019 Average interest rate of 6.2%…
Well Capitalized Customer Base Top 50 Customers 1 Average market capitalization of 27.4 billion.2 Private 5% Primarily public companies, NOC 8% National Oil Companies (NOC), and well capitalized privates. 87% Accounts for…
Increasing Diversification of Revenue Contribution International revenue was 8% of total in 2014, up from 3% in 2012. 2012 2013 2014 3% 7% 8% 51% 49% 46% 44% 47% 46% Canada U.S. International 8
Competitive Strategy Suits Development Drilling PEOPLE DRILLING TECHNOLOGY SYSTEMS & SCALE PRODUCES LOWER RISK MAXIMUM EFFICIENCY ATTRACTIVE RETURNS 9
Fully Industrialized Resource Development Multi-well Pads Maximum Efficiency Repeatability + Predictability Risk Minimization Technology deployment Long-term economic mindset 10
Positioned In Most Positioned in Most ActiveActive NorthRegions North American American Regions Dots representative of areas where Precision has had operations within the past two years 11
High Performance People Precision HR Training and Processes Career Path Management Field Training Long-term Investments Compensation Programs Structured Promotion Permanent Training Programs Facilities with Fully…
High Performance Requires Robust Proven Systems And Scale Toughnecks talent acquisition program processed 44,461 applications and hired 4,013 people in 2014 Integrated Rig Supply Tech Center Repair 2,995 employees completed…
Unique Schlumberger Alliance Drives Efficiency Precision field execution Maximum efficiency and customer interface Reliability More productive drilling programs Better field economics Schlumberger downhole tools &…
Focused Geographic Markets Middle East 4 active rigs in Saudi Arabia 2 active rigs in Kurdistan 3 rigs in Kuwait (2 active, 1 deployment mid 2015) 1 active rig in Georgia Focus on deep high pressure drilling Specialized customer…
International Revenue Growth Deployed Late Q2 2014 - Initiated additional 1 rig Kuwait with 2 Rigs to Saudi Revenue 60 50 International Revenue (million) Initiated Kurdistan with 2 Rigs +24% 40 Deployed additional 3…
Completion & Production Segment: Full Well Cycle Exposure Largest well service provider in Canada and growing presence in U.S. Over 170 Well Service, Snubbing and Coil Tubing rigs Large fleet of high value rental equipment Camps and…
Capital Spending Highlights 1 2015 Planned Capital Spending 2015 467 million Construction and delivery of 17 newbuild Super Series rigs 187 73 13 to U.S. (4 delivered) 195 320 3 to Canada (2 delivered) 394 1 to Kuwait…
Precision Drilling Investment Merits Leading North American resource driller High Performance Tier 1 fleet of rigs Strong balance sheet Excellent customer base and geographic diversity Experienced organization and…
Appendix
March North American Market Update Industry rig count has declined over 30% from peak levels in Q4 2014. Further declines expected. Non-contracted rigs are first to be released. Operators focusing on core areas of unconventional…
Canadian Activity Update 800 700 Canadian Active Land Rig Count 2011 600 500 400 300 200 100 0 5 Year Range 2010 - 2014 2013 2014 2015 Source: BHI 23
Oil Drilling Dominates Activity 2,000 Total rig count has dropped 35% from Peak 1,800 Oil rig count 1,600 has dropped 39% from Peak U.S. Active Land Rig Count 1,400 1,200 1,000 800 600 400 200 0 2000 2001 2002…
Unconventional Development Driving Horizontal Drilling Market 1,600 U.S. Active Horizontal Land Rig Count 1,300 1,000 Tier 1 newbuilds Integrated Directional Drilling 700 Schlumberger alliance Rig upgrade program…
Precision Horizontal Leadership Percentage of Horizontal/Directional Wells United States 1,2 Canada 3 88% 93% 81% 82% Precision Industry Precision Industry 1. Precision Q4 2014 Average. 2. Baker Hughes rig count average…
North American Market Has Transitioned To Industrialized Resource Drilling 1985-2005 2005-2010 2010-PRESENT Reservoir Drilling Resource Drilling Emergence Industrial Resource Drilling Commodity Vertical gas Vertical gas Horizontal…
Proposed Canadian LNG Projects Source basins include Montney, Horn River, Duvernay, and Fort Liard 26 Bcf 1 of export capacity has been approved by the National Energy Board of Canada BC government revised tax structure in…
Proposed LNG Export Facilities in British Colombia Capacity NEB Export Application NEB Maximum Annual Expected Location Asset Name Ownership (Bcf/d) 1 Status and Length Export Allowance (Bcf/d) 1 Start Date Kitimat, B.C. Douglas…
Precision Commands Leadership In Canadian LNG 1 Approved export capacity of 26Bcf/day Opportunity for 20 to 25 rigs per Bcf of export capacity Longer-term demand source Require deeper Tier 1 rigs ST-1200 and ST-1500 rigs ideal…
Precisions Tier 1 Super Series Fleet High Performance Horizontal Drilling Machines Super Triple 1500 1 Super Triple 1200 2 Super Single Rapid mobility: Walking/skidding system Location to location Sophisticated connections…
International Activity Expected to Increase 5,086 365 365 4,036 320 To be To be Deployed deployed deployed Q4 2014 1 Q1 2015 Q3 2015 2014 Saudi Georgia Kuwait Q3 2015P ST-2000 2000HP Rig ST-1500 Annualized…
Precisions Canadian Dayrate Strength Average Quarterly Dayrate 24,000 22,000 Q4 20,000 Q3 Q2 Q1 18,000 16,000 Year over year, quarterly average increase of 8% from 2010 to 2014 14,000 12,000 2010 2011 2012 2013…
Balance Sheet Strength Available liquidity as of Attractive Capital Structure (1) 12/31/2014(2) Total debt to total capital: 43% 1,272 Net debt to total capital: 32% Interest coverage: 7.5x 491 Cash Long maturity, low cost debt…
Strategy Benchmarking and Measurement Delivers Shareholder Value Financial Operational Metrics Metrics Operating Earnings Safety Performance Return on Capital Employed Mechanical Downtime Total Shareholder Return Employee…
Precision Schlumberger Alliance Advantage Drilling Performance Curve 0 Competitor Rig 1 with Third Party Directional Provider Competitor Rig 2 with Third Party Directional Provider Competitor Rig 3 with Third Party Directional…
Loading...
