Precision Drilling (PDS) Investor presentation summary

Strategic priorities and financial performance

• Focused on revenue growth, operational excellence, and leveraging technology to deepen customer relationships and drive upgrades.

• Maximized free cash flow through disciplined capital deployment, generating $413M in 2025 and funding rig upgrades, debt reduction, and share repurchases.

• Enhanced shareholder returns by reducing debt ($101M in 2025) and repurchasing $76M in shares, with a target to allocate up to 50% of free cash flow to direct returns in 2026.

• Achieved a net debt/adjusted EBITDA ratio of 1.2x at year-end 2025, aiming for less than 1.0x by 2027.

• On track to repay $700M in debt from 2022–2027, with $535M already repaid by end of 2025.

Market position and operational highlights

• Maintains #1 land driller position in Canada with 95 marketed rigs and 36% market share, and is a top U.S. land driller with 80 marketed rigs.

• International operations remain stable, with 7 rigs active in Kuwait and Saudi Arabia, all under contracts extending into 2027–2028.

• U.S. operations leveraged to long-term gas growth, with rig count increasing in 2025 despite industry declines, and strong presence in key basins.

• Canadian Super Triple and Super Single rigs are nearly fully utilized, supporting strong margins and premium day rates.

• Well service business in Canada expanded through acquisitions, supporting high-quality, recurring cash flows.

Technology and margin enhancement

• Invested in 27 major rig upgrades in 2025, focusing on high-impact performance gains and sustaining premium rates.

• Alpha digital automation and EverGreen hybrid power systems drive operational efficiency, reduce emissions, and support sustainability goals.

• Technology leadership with advanced rig automation, robotics, and digital analytics, providing a competitive advantage and supporting margin enhancement.

• Margin trends remain strong, with Canadian Q1 2026 margins estimated at $14,000–$15,000/day and U.S. margins at $8,000–$9,000/day.