Precision Drilling (PDS) investor relations material

Strategic priorities and financial performance

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

• Maximizing free cash flow through disciplined capital deployment and strict cost management, with a 2026 FCF yield potential of 12%.

• Enhanced shareholder returns by reducing debt and increasing share repurchases, targeting up to 50% of FCF for direct returns in 2026.

• Reduced net debt to adjusted EBITDA to 1.2x by end of 2025, aiming for less than 1.0x, with $535M repaid since 2022 and a $700M target by 2027.

• Returned $1.7B to shareholders since 2015, with an 11% share count reduction since Q1 2024 and $76M in buybacks in 2025.

Market position and operational highlights

• Holds #1 land driller position in Canada and is a top U.S. land driller, with 95 marketed rigs in Canada and 80 in the U.S.

• Active internationally with 7 rigs contracted in Kuwait and Saudi Arabia, supported by contracts into 2027 and 2028.

• Canadian market share reached 36% in 2025, with strong demand for Super Triple and Super Single rigs in high-inventory plays.

• U.S. activity grew 25% over the last 9 months of 2025, with increased rig count in natural gas basins and strong presence in major oil plays.

• Well service business in Canada expanded through acquisitions, supporting strong free cash flow and positive outlook.

Technology and margin enhancement

• Upgraded 27 Super Series rigs in 2025, funded by upfront payments and term contracts, targeting full capital recovery.

• Super Series rigs offer advanced automation, robotics, and digital twin monitoring, supporting high utilization and strong margins.

• Margin enhancement driven by digital automation (Alpha), big data analytics, and AI-powered predictive maintenance.

• EverGreen™ technology and hybrid power systems reduce emissions and fuel costs, supporting sustainability goals.

• Canadian and U.S. margins remain strong, with Q1 2026 estimates at C$14,000–15,000/day and US$8,000–9,000/day, respectively.