PRECISION DRILLING

CORPORATION

January 2023 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 2022; our future capital expenditure plans; anticipated activity levels and our scheduled infrastructure projects; anticipated demand for rigs; the number of term contracts in place; our future debt reduction plans beyond 2022.

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: the fluctuation in oil prices may pressure customers into reducing or limiting their drilling budgets; the impact of the COVID-19 global pandemic on our operations; 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; and the general stability of the economic and political environments in the jurisdictions where we operate.

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; the success of our response to the COVID-19 global pandemic; 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; 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, 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 forgoing 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 for the year ended December 31, 2021, which may be accessed on Precision's SEDAR profile at www.sedar.com or under Precision's EDGAR profile at www.sec.gov. 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 statements or information, whether as a result of new information, future events or otherwise, except as required by law.

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CREATING SHAREHOLDER VALUE

SCALING DIGITAL & ESG OFFERINGS ACROSS SUPER SERIES

FLEET

MAXIMIZING OPERATIONAL LEVERAGE IN GROWTH

ENVIRONMENT

STRICT COST CONTROL & FREE CASH FLOW GENERATION

HIGHER EQUITY VALUATION THROUGH DELEVERAGING &

RETURNING CAPITAL TO SHAREHOLDERS

DISCIPLINED INVESTMENTS IN OUR PEOPLE & EQUIPMENT

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2022 STRATEGIC PRIORITIES

1

SCALE DIGITAL & ESG OFFERINGS

• Grow revenue with Alpha™ digital technologies & EverGreen™

environmental solutions across Precision's Super Series rig fleet

  • Further competitive differentiation through ESG initiatives

2

MAXIMIZE OPERATIONAL LEVERAGE

• Leverage Precision's Super Series rig fleet, pricing momentum,

focus on cost control and operational scale to maximize results

STRENGTHEN BALANCE SHEET & COMPETITIVE 3 POSITION

• Target to reduce debt by at least $75 million (actual was $106 million)

  • Allocate 10% to 20% of free cash flow to share repurchases
  • Continue to invest in our people & equipment to strengthen competitive position

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JANUARY 2023 PRECISION MARKET UPDATE

FIRM COMMITMENT TO DEBT

REDUCTION TARGETS

STRENGTH IN DRILLING ACTIVITY

TIGHT RIG MARKET PUSHING DAY RATES

UP & IMPROVING CONTRACT BOOK

ALPHATM & EVERGREENTM DRIVING

REVENUE GROWTH & COMPETITIVE

ADVANTAGE

1. As of December 31, 2021

  • ​Paid down debt of $106 million in 2022, exceeding $75 milliontarget
  • Robust cash flow outlook for 2023-2024
  • Will continue to accelerate debt repayment and now expect leverage between 1.25 and 1.75 times at the end of 2023
  • Our North American drilling activity was up 29% in Q4 vs Q4/21​
  • U.S. averaged 59 active rigs in Q4, 62 currently active and expect modest additions through the next several quarters
  • Canada averaged 66 active rigs in Q4; all Super Triples currently active and expect rig count to peak at ~80 rigs in the next few weeks
  • International activity currently at 6 rigs; increasing to 8 rigs by mid-2023 following successful Kuwait tender
  • Drilling day rates continued to increase in the U.S. and Canada in Q4
  • Fourth quarter margins expected to exceed previous guidance and continue trending upward in 2023
  • U.S. leading-edge day rates upper US$30,000
  • Several contracts above US$40,000 with ancillary services
  • AlphaTM revenue increased ~50% in 2022 vs 2021
  • ~70% of North American Super Triple fleet converted to AlphaTM; expect to convert remainder by early 2024
  • Strong uptake of EverGreenTM Battery Energy Storage Systems (7 systems1) & GHG emissions monitoring systems (15 systems1)

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Precision Drilling Corporation published this content on 05 January 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 January 2023 11:07:07 UTC.