Precision Drilling Corp (NYSE:PDS) Q3 2020 Earnings Conference Call October 22, 2020 2:00 PM ET Company Participants Dustin Honing - Manager, IR Carey Ford - SVP & CFO Kevin Neveu - President, CEO & Director Conference Call Participants Taylor Zurcher - Tudor, Pickering, Holt & Co. Aaron MacNeil - TD Securities Kurt Hallead - RBC Capital Markets Cole Pereira - Stifel Blake Gendron - Wolfe Research John Gibson - BMO Capital Markets Jeffrey Fetterly - Peters & Co. Limited Operator Ladies and gentlemen, thank ...

Financial Data and Key Metrics Changes - Precision Drilling reported an adjusted EBITDA of CAD 58 million for Q2 2020, a decrease of 28% compared to Q2 2019, primarily due to a sharp decline in drilling activity [12][10]. - The company expects cash savings for the year to reach up to CAD 150 million, an increase from the previous guidance of over CAD 100 million [10][11]. - As of June 30, 2020, the long-term debt position net of cash was CAD 1.275 billion, with total liquidity of approximately CAD 900 million [20]. Business Line Data and Key Metrics Changes - In the U.S., drilling activity averaged 30 rigs, a decrease of 25 rigs from Q1 2020, with daily operating margins of USD 15,198, an increase from Q1 [14]. - In Canada, drilling activity averaged 9 rigs, down 18 rigs from Q2 2019, with daily operating margins at CAD 9,042, an increase from Q2 2019 [15]. - The Completion and Production segment reported an adjusted EBITDA of negative CAD 1.2 million, down CAD 4 million compared to the prior year, impacted by a significant decline in well service activity [17]. Market Data and Key Metrics Changes - Internationally, drilling activity averaged 8 rigs, consistent with Q2 2020, with average day rates of USD 54,779, up from Q1 and the prior year [16]. - The company has maintained a strong market share in the Montney and Duvernay plays, reaching nearly 50% of the active fleet in those areas [31]. Company Strategy and Development Direction - The company is focusing on cost reduction and cash preservation, with a target of reducing fixed costs by 35% [10]. - Precision is leveraging its Alpha Technologies suite to enhance operational efficiency and drive market share growth [33][48]. - The company aims to generate free cash flow and maintain liquidity while reducing debt, with a long-term goal of CAD 700 million in debt reduction by 2022 [22]. Management's Comments on Operating Environment and Future Outlook - Management noted that the oil service sector has faced significant challenges, with customer demand and drilling activity sharply declining [27]. - There is cautious optimism as commodity prices recover, leading to improved customer sentiment and interest in technology [38]. - The company expects a muted seasonal rebound in Canada, with rig activity potentially moving towards the upper 20s by late Q3 [35]. Other Important Information - The company has reduced its capital expenditures for 2020 to CAD 48 million, a decrease of approximately 50% from initial guidance [18]. - Precision has been participating in the Canadian Emergency Wage Subsidy Program to retain jobs during the downturn [11]. Q&A Session Summary Question: What are the prospects for the acquisition of Canadian land drilling rigs? - Management indicated that free available capital for rig acquisitions is tight, making it hard to comment on another company's process [58]. Question: How is the traction with Alpha apps and technology adoption among customers? - Management noted that customers are increasingly using technology for remote operations, which has improved performance and efficiency [60]. Question: What are the prospects for idle rigs in the U.S.? - Management expressed confidence that customers would want to reactivate rigs if they have a drilling budget in 2021 [64]. Question: What is the expected working capital inflow for the second half of the year? - Management expects to convert an additional CAD 10 million to CAD 20 million in working capital by year-end [74]. Question: What is the company's strategy regarding debt repayment? - Management confirmed the intention to retire the 2021 notes fully by the end of the year, potentially using the credit facility for this purpose [107].

Financial Data and Key Metrics Changes - Precision Drilling reported an adjusted EBITDA of CAD 102 million for Q1 2020, a decrease of 6% compared to Q1 2019, primarily due to a 30% reduction in U.S. activity, offset by a 33% increase in Canadian drilling activity [19][20] - The company's long-term debt position, net of cash, is approximately CAD 1.4 billion, with total liquidity exceeding CAD 800 million [23] - The net debt to trailing 12-month EBITDA ratio stands at approximately 3.6x, with an average cost of debt at 6.8% [23] Business Line Data and Key Metrics Changes - In the U.S., drilling activity averaged 55 rigs, a decrease of 8 rigs from Q4 2019, with daily operating margins of USD 9,344, down USD 532 from Q4 [19] - Canadian drilling activity averaged 63 rigs, an increase of 15 rigs from Q1 2019, with daily operating margins of CAD 7,205, down CAD 1,317 from Q1 2019 [20] - Internationally, drilling activity increased by 1% from Q1 2019, with average day rates rising to USD 54,294, an increase of USD 4,354 from the prior year [21] Market Data and Key Metrics Changes - Precision's U.S. market share increased to 58 rigs in late February, holding that level until late March, before declining due to oil price volatility [32] - In Canada, the company peaked at 83 rigs running in late January, maintaining a market share of approximately 32% [33] - As of the end of March, Precision had 15 rigs active in Canada, with current activity down to 11 rigs, reflecting historic lows for the Canadian segment [36] Company Strategy and Development Direction - The company is focused on preserving cash and maximizing liquidity during the downturn, with expected cash savings exceeding CAD 100 million this year [13][18] - Precision is prioritizing operational excellence and technology commercialization, with ongoing initiatives like AlphaAutomation and AlphaAnalytics to enhance efficiency [29][30] - The company plans to maintain a strong liquidity position and resume debt repayments when visibility improves [23][27] Management's Comments on Operating Environment and Future Outlook - Management expressed that the current downturn is the deepest and toughest experienced, with a focus on financial and competitive positioning [26] - The company anticipates a continued decline in industry activity, particularly in the U.S., with expectations of settling in the low 30s for rigs for the remainder of Q2 [35] - Management noted that while there is uncertainty, they are well-positioned to manage through low customer demand and are focused on cash generation [28][36] Other Important Information - The Canadian federal government announced a CAD 1.7 billion funding program for well abandonments, which is expected to significantly impact Precision's well service business [42][93] - The company has implemented cost-saving initiatives, including workforce reductions and slashing travel and entertainment budgets [17][18] Q&A Session Summary Question: Can you elaborate on the recent changes in customer discussions regarding activity levels? - Management indicated that discussions have shifted from reducing activity to implementing previously made decisions, with a focus on stability in drilling due to hedged customers and natural gas drilling [46][47] Question: Is there a possibility of the rig count bottoming in Q2? - Management refrained from calling a bottom but suggested that customer planning is complete, and they will start looking into Q3 after their disclosure period [52][54] Question: What is the company's comfort level with its financial position compared to previous downturns? - Management expressed confidence in their ability to manage costs and maintain free cash flow, emphasizing the importance of liquidity access [58][60] Question: How does the company view pricing pressures from customers? - Management acknowledged that procurement teams are applying pressure on pricing, but they remain disciplined in justifying their value [73][88] Question: What impact does the federal funding program have on the well service segment? - Management expects to garner a significant share of the funding, potentially leading to a material change in their well service business [92][93]

Precision Drilling Corp (NYSE:PDS) Q4 2019 Results Earnings Conference Call February 13, 2019 2:00 PM ET Company Participants Dustin Honing - Manager Investor Relations Kevin Neveu - President and Chief Executive Officer Carey Ford - Senior Vice President and Chief Financial Officer Conference Call Participants Kurt Hallead - RBC Capital Connor Lynagh - Morgan Stanley Waqar Syed - Autocat Capital Taylor Zurcher - Tudor, Pickering Sean Meakim - JP Morgan J.B. Lowe - Citi Ian Gillies - Stifel Blake Gendron - ...

Precision Drilling Corp (NYSE:PDS) Q3 2019 Results Earnings Conference Call October 24, 2019 2:00 PM ET Company Participants Dustin Honing - Manager Investor Relations Kevin Neveu - President and Chief Executive Officer Carey Ford - Senior Vice President and Chief Financial Officer Shuja Goraya - Chief Technology Officer Conference Call Participants Kurt Hallead - RBC James West - Evercore ISI Sean Meakim - JPMorgan Connor Lynagh - Morgan Stanley Taylor Zurcher - Tudor, Pickering, Holt J.B. Lowe - Citi John ...

Precision Drilling Corporation (NYSE:PDS) Q2 2019 Results Conference Call July 25, 2019 2:00 PM ET Company Participants Dustin Honing - Investor Relations Kevin Neveu - President and Chief Executive Officer Carey Ford - Senior Vice President and Chief Financial Officer Conference Call Participants Sean Meakim - JPMorgan Connor Lynagh - Morgan Stanley J. B. Lowe - Citigroup Taylor Zurcher - Tudor, Pickering, Holt & Co. Waqar Syed - AltaCorp Capital Kurt Hallead - RBC Capital Markets Greg Coleman - National B ...

*Rig 576, Loving County TX, Permian Basin TSX: PDTSX: PD NYSE: PDS NYSE: PDS | 1 PRECISION DRILLING CORPORATION July 2019 Forward-looking Statements 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" ...

Precision Drilling Corporation (NYSE:PDS) Q1 2019 Earnings Conference Call April 25, 2019 2:00 PM ET Company Participants Ashley Connolly - Investor Relations Kevin Neveu - President & Chief Executive Officer Carey Ford - SVP & Chief Financial Officer Conference Call Participants Sean Meakim - JP Morgan Kurt Hallead - RBC Taylor Zurcher - Tudor, Pickering, Holt J.B. Lowe - Citi Connor Lynagh - Morgan Stanley John Watson - Simmons Ian Gillies - GMP Jon Morrison - CIBC Capital Markets Operator Good day, ladie ...

*Rig 576, Loving County TX, Permian Basin TSX: PDTSX: PD NYSE: PDS NYSE: PDS | 1 PRECISION DRILLING CORPORATION February 2019 Forward-looking Statements 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 informat ...