Precision Drilling Meets 2023 Debt Repayment and Share Repurchase Targets and Provides Capital Allocation, Financial and Operational Updates - Seite 2

Drilling Activity

In Canada, Precision continues to experience strong customer demand for drilling services, particularly when Alpha^TM technologies and EverGreen^TM environmental solutions are included. In the fourth quarter, our average active rig count was 63 in Canada. We currently have 74 rigs active and expect our rig count to peak between the low to mid-80s during this winter drilling season. By mid-January, we expect to activate an additional Super Triple rig, bringing our Canadian Super Triple rig count to 30.

In the U.S., our average active rig count was 42 in the fourth quarter and we have 43 rigs operating today. Based on recent conversations with customers, we expect drilling activity to begin to rebound in the second quarter of 2024.

Internationally, Precision activated an additional rig in mid-November and currently has a total of eight active rigs, with three in the Kingdom of Saudi Arabia and five in Kuwait. Year over year, our international activity is expected to increase by approximately 40% in 2024.

CFO Quote

Carey Ford, Precision’s CFO, commented, “Precision generated strong free cash flow in 2023, which we expect to continue in 2024, driven by margin progression in Canada, integration of our CWC Energy Services acquisition, and international growth. With a robust free cash flow outlook, we plan to improve our capital returns to shareholders in 2024 by increasing our debt reduction and share buy back allocations. Since the beginning of 2018, our debt reduction and share repurchases have totaled nearly $1 billion and I am confident Precision’s High Performance, High Value strategy, exceptional field results, capital discipline, and capital allocation will continue to support increased shareholder value.”

About Precision

Precision is a leading provider of safe and environmentally responsible High Performance, High Value services to the energy industry, offering customers access to an extensive fleet of Super Series drilling rigs. Precision has commercialized an industry-leading digital technology portfolio known as Alpha^TM that utilizes advanced automation software and analytics to generate efficient, predictable, and repeatable results for energy customers. Our drilling services are enhanced by our EverGreen^TM suite of environmental solutions, which bolsters our commitment to reducing the environmental impact of our operations. Additionally, Precision offers well service rigs, camps and rental equipment all backed by a comprehensive mix of technical support services and skilled, experienced personnel.