Precision Drilling (PDS) Investor presentation summary

2026 priorities and capital returns

• 2026 priorities: grow revenue through upgrades, operational excellence and technology; maximize free cash flow; reduce debt and allocate up to 50% of FCF to share repurchases.

• Repaid $75M of debt in H1 2026 against a $100M full-year target; $610M repaid toward the 2022–2027 $700M target as of June 30, 2026.

• Net debt / adjusted EBITDA was 1.2x at June 30, 2026, with a long-term target below 1.0x; average debt cost was 6.7%, with the next major maturity in 2029.

• Repurchased $76M of shares in 2025 and $16M YTD through June 30, 2026; outstanding shares fell 11% since Q1 2024.

• Analyst estimates put 2026 FCF at $189M and calculated FCF yield at 13%; the estimate excludes working capital changes.

Operating outlook

• Canada had 95 marketed rigs and 36% market share in 2025; Super Triple and Super Single rigs were near full utilization, with Q2 2026 activity at a record and Q3 trending above the prior year.

• Winter utilization was ~90–95% for 32 Super Triples and 48 Super Singles; total Canadian fleet utilization was ~85–90%.

• U.S. fleet included 80 marketed rigs; the rig count was expected to remain in the low 40s through Q3 2026, after 50 industry oil rigs were added since early May.

• Q3 2026 estimated dayrate margins were C$12,000–C$13,000 in Canada and US$7,000–US$8,000 in the U.S.; Q4 U.S. margins were expected to approach US$10,000/day.

• Seven international rigs were active in 2026, with an eighth contracted for deployment by mid-2027; activity included four rigs in Kuwait and three in Saudi Arabia.

Market position and growth drivers

• Canadian heavy oil drilling market share was 40–45%; thermal in-situ production was expected to grow more than 40% over 10 years, supported by proposed egress expansion.

• LNG-linked demand supports long-term gas drilling; U.S. LNG export capacity was expected to rise from ~18 Bcf/day at year-end 2025 to ~29 Bcf/day by year-end 2029.

• Canadian LNG projects listed ~6.6 Bcf/day of capacity in total, including operating LNG Canada Phase 1, Cedar LNG, LNG Canada Phase 2 and Ksi Lisims LNG.

• Canadian well services had 145 marketed rigs; the business was positioned for FCF generation with minimal capex, supported by pipeline expansion, LNG development and regulatory spending requirements.