September 202c - Investor Presentation
FORWARD-LOOKING STATEMENT
Certain statements contained in this report, including statements that contain words such as "could", "should", "can", "anticipate", "estimate", "intend", "plan", "expect", "believe", "will", "may", "continue", "project", "potential" and similar expressions and statements relating to matters that are not historical facts constitute "forward-looking information" within the meaning of applicable Canadian securities legislation and "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995 (collectively, "forward-looking information and statements").
In particular, forward-looking information and statements include, but are not limited to, the following: our strategic priorities for 2026; our future capital expenditure plans; anticipated activity levels and our scheduled infrastructure projects; anticipated demand for rigs; the number of term contracts in place; and our future debt reduction plans beyond 2026.
Certain of the information in this presentation is "financial outlook" within the meaning of applicable securities laws. The purpose of this financial outlook is to provide readers with disclosure regarding our reasonable expectations as to the anticipated results of its proposed business activities. Readers are cautioned that this financial outlook may not be appropriate for other purposes.
These forward-looking information and statements are based on certain assumptions and analysis made by Precision in light of our experience and our perception of historical trends, current conditions, expected future developments, and other factors we believe are appropriate under the circumstances. These include, among other things: our ability to react to customer spending plans as a result of changes in oil and natural gas prices; the status of current negotiations with our customers and vendors; customer focus on safety performance; existing term contracts are neither renewed nor terminated prematurely; our ability to deliver rigs to customers on a timely basis; the general stability of the economic and political environments in the jurisdictions where we operate; and the impact of an increase/decrease in capital spending.
Undue reliance should not be placed on forward-looking information and statements. Whether actual results, performance or achievements will conform to our expectations and predictions is subject to a number of known and unknown risks and uncertainties which could cause actual results to differ materially from our expectations. Such risks and uncertainties include, but are not limited to: volatility in the price and demand for oil and natural gas; fluctuations in the demand for contract drilling, well servicing and ancillary oilfield services; our customers' inability to obtain adequate credit or financing to support their drilling and production activity; changes in drilling and well servicing technology which could reduce demand for certain rigs or put us at a competitive disadvantage; shortages, delays and interruptions in the delivery of equipment supplies and other key inputs; the effects of seasonal and weather conditions on operations and facilities; ability to enhance our rig technology to improve drilling efficiency; the availability of qualified personnel and management; a decline in our safety performance which could result in lower demand for our services; changes in environmental laws and regulations such as increased regulation of hydraulic fracturing or restrictions on the burning of fossil fuels and greenhouse gas emissions, which could have an adverse impact on the demand for oil and gas; terrorism, social, civil and political unrest in the foreign jurisdictions where we operate; fluctuations in foreign exchange rates, interest rates and tax rates; and other unforeseen conditions which could impact the use of services supplied by Precision and Precision's ability to respond to such conditions.
Readers are cautioned that the foregoing list of risk factors is not exhaustive. Additional information on these and other factors that could affect our business, operations or financial results are included in reports on file with applicable securities regulatory authorities, including but not limited to Precision's Annual Information Form (AIF) for the year ended December 31, 2024, which may be accessed on Precision's SEDAR+ profile at https://www.sedarplus.ca or under Precision's EDGAR profile at https://www.sec.gov. Precision's AIF for the year ended December 31, 2025, was made available March 9, 2026. The forward-looking information and statements contained in this news release are made as of the date hereof and Precision undertakes no obligation to update publicly or revise any forward-looking information and statements, whether as a result of new information, future events or otherwise, except as required by law.
INVESTOR PRESENTATION
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PRECISION HIGHLIGHTS
Global Oilfield Service Company
#1 Land Driller in Canada, Super Triple C Super Single Rigs; 95 Marketed RigsA Top U.S. Land Driller, Super Triple Rigs in Key Basins; 80 Marketed Rigs
7 Active Rig in Kuwait C Saudi, 8th Rig Contracted to be Deployed Mid-2027
#1 Well Service Provider in Canada; 145 Marketed Rigs
Technology Leader - AI Data Analytics (ARO C ClarityTM), AlphaAutomationTM, AlphaArmsTM (robotics), EverGreenTM
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INVESTOR PRESENTATION
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Drive revenue growth and deepen customer relationships through upgrades, operational excellence, and by leveraging technology
2.Maximize free cash flow through disciplined capital deployment and strict cost management
3.Enhance shareholder returns by reducing debt
$100M and allocating up to 50% of FCF to share repurchases
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INVESTOR PRESENTATION
STRATEGIC PRIORITIES FOR 202C
12%
FREE CASH FLOW YIELD POTENTIAL
ROBUST FREE CASH FLOW YIELD
Future Free Cash Flow Drivers
Analyst Estimates for 2026 Free Cash Flow1
$1G3M
#1 Land Driller Canada,#2 in North America
Consistent International Operations with Additional Activity Expected 2027U.S. Upside to Oil Rebound plus Levered to Long-term Gas Growth
High-Quality, Recurring Completion C Production Cash Flows
Equity Market Cap2 $1,633M
Calculated FCF Yield 12%
Attractive Upgrade Capital Returns (~$160M growth investments last 2 years)Differentiated Digital Automation Technology Offering
202c Estimated FCF: FY Consensus EBITDA - FY Consensus Interest Expense - FY CAPEX Guidance. Calculation excludes working capital changes. Consensus numbers from FactSet.
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As of Aug 31, 202c, when PD stock closed at :127.08/share.
INVESTOR PRESENTATION