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Corporate Presentation
February 2016
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Forward-looking statements
Statements that are not historical facts are forward-looking statements within the meaning of the PrivateSecurities Litigation Reform Act of 1995 and forward looking information within the meaning of applicableCanadian legislation. These forward-looking statements are based on current expectations, estimates andassumptions concerning future events and are subject to a number of uncertainties and factors, many of whichare outside Precision's control, which could cause actual results to differ materially from those anticipated byPrecision and described in the forward looking statements. These forward-looking statements are also affectedby the risk factors, challenges and uncertainties described in Precision's Annual Report on Form 40-F (AnnualInformation Form in Canada) for the fiscal year ended December 31, 2014, and those set forth from time to timein Precision's filings with the Securities and Exchange Commission and the securities regulatory authorities ineach of the Provinces of Canada, which are available through Precision's website at www.precisiondrilling.com.
No assurance can be given that any of the events anticipated by the forward-looking statements will transpire oroccur or, if any of them do so, what benefits will be derived therefrom. Security holders, potential investors andother readers are urged to consider these factors carefully in evaluating the forward-looking statements whichspeak only as of the date made. Except as may be required by law, Precision expressly disclaims any intentionor obligation to revise or update any forward-looking statements and information whether as a result of newinformation, future events or otherwise.
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Historical North American Drilling Activity
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
Jan, 2008
Jan, 2010
Jan, 2012
Jan, 2016
Jan, 2018
Jan, 2014
Jan, 2006
U.S. Land Rig Count10 Year History
Canadian Land Rig Count5 Year History
Source: Baker Hughes land rig count as of Feb. 12. 2016
0
100
200
300
400
500
600
700
800
January
Febru
ary
Marc
h
April
May
June
July
August
Septe
mber
Oct
ober
Novem
ber
Dece
mber
5 Year Range 2011 - 2015 2015 2016
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1. Maintain strong liquidity through the downturn
2. Sustain High Performance, High Value competitive positioning
3. Position for an eventual rebound
a. Asset integrity – maintain high quality and integrity of our Tier 1 drilling fleet
b. People – retain field leadership depth
c. Scale – to reduce costs while insuring access to materials and people in
rebound
Precision’s 2016 Strategic Priorities
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Managing Through The Cycle
___
Liquidity
Variable Cost Structure
238 Tier 1 Rigs Maintain High Performance
operations
Strong Balance Sheet with $445 million Cash
Variable operating and capital expenditures
Reduce overhead and G&A costs
60 Contracts for 2016 30 Contracts for 2017
Creates Shareholder Value
Diverse customer base Geographical diversification
Revenue Diversification
Revenue Security
Rig Capability
6Precision Super Triple rigs operating in Duvernay, 2015.
Fully Industrialized Development Drilling
Maximum Efficiency
Repeatability + Predictability
Risk Minimization
Technology Deployment
Long-term Economic Mindset
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High Performance Super Single and Super Triples Rig Fleet
101
93
16
U.S.145 Tier 1Rigs Added
Canada
International
Upgrade Candidates
11 Feb, 2016
254
129
8
1 Jan, 2009
1) As of February 11th 2016 - Includes 2 newbuild rigs for Kuwait to be delivered in early 2017. Include 16 upgrade candidates.
2) Decommissioned 79 drilling rigs on December 31, 2012.
1,2
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Career Path Management
Field Training
Investments
Structured Promotion
Programs
Long-term
Compensation
Programs
Permanent Training
Facilities with Fully
Functioning Rigs
Leadership Development Programs
World-Class
Safety Culture
and Processes
Tier 1 Assets
EXPERIENCED,
HIGHLY SKILLED
PRECISION CREWS
Precision HR Training and Processes
Structured Competency Standards
Structured Measured Retention Programs for Key Personnel
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Average market cap. of $41 billion (median $13 billion).2
Accounts for 86% of total revenue.
Credit risk for vast majority of contract book remains low.
Strong Contract Book backed by Well Capitalized Customers
National OilCompanies
8%
Private20%
Public 72%
1 Includes Canada, U.S. and International operations.2 As of February 8th 2016.
2015 Top 50 Customers 1
3631
25
21
9
8
30
2016 Average
60
70
Q1’16 2017 Average
Average Term Contracts
US CanadaInternational
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Positioned In Most Active North American RegionsComprehensive North American Coverage
Dots representative of areas where Precision has had operations in 2014 and 2015
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Focused International Footprint
Middle East 4 rigs in Saudi Arabia
2 rigs in Kurdistan
1 rig in Georgia
5 rigs in Kuwait
3 currently
2 to be deployed in early 2017
Focus on deep high pressure drilling
Specialized customer needs
Mexico 5 rigs in Mexico
Focus on IPM support
North America 135 rigs in Canada
102 rigs in U.S.
Focused on development drilling
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Increasing International Diversification
3%
46%51%
2012 2013
8%
46% 46%
2014
International revenue was 14% of total in 2015, up from 3% in 2012.
14%
48%37%
2015
Two additional contracted rigs to be
deployed in Q1 2017 to Kuwait.
7%
44%49%
InternationalU.S.Canada
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Capital Spending Highlights
$320
$187
$721
2016 Capital – $202 million
$158 million for Expansion & Upgrades Capital
2 new-build rigs for Kuwait
$44 million for Maintenance, Infrastructure and Upgrades
$44
$158
Maintenance & Infrastructure
Expansion & Upgrades
2016E
$44
$163
$423
$536
$708
$113
2013
$868
$142
2012
$726
2011
$176
2010
$605
$726
$121$158
$202
2009
$126
$50$30
$193 $410
$149
$459
2014
$857
$49
2015
Capital Expenditure Torque
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Balance Sheet Strength
1) Statistics refer to balance sheet and annual income statement as of 12/31/2015. Debt to total capital equals long-term debt to long-term debt plus equity. Interest coverage equals EBITDA divided by interest. Available liquidity, adjusted for amendment of revolver post quarter end.
2) Calculated as undrawn portion of revolver (adjusted for LCs outstanding) and cash using CAD/USD exchange rate and balance sheet numbers as at 12/31/2015.3) Current blended cash interest cost of our debt is approximately 6.2%.
Attractive Capital Structure (1)
Net debt to total capital: 40% Interest coverage: 3.6x
Long maturity, low cost debt Average interest rate of 6.2%
First Principal Payment due 2019 (3)
2019: $200 million 2020: US$650 million 2021: US$400 million 2024: US$400 million
Flexibility to react to market upturn or downturn
Announced Dividend Suspension on February 11th, 2016
Available liquidity as of12/31/2015 2
Revolver /operating facilitiesAvailability(Maturity: June 3, 2019)
Cash
$1,199
$754
$445
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Historical Annual Revenue and EBITDA
Annual Revenue (millions, YOY % change)
Annual EBITDA(millions,%)
$639(31%)
2012
$671(33%)
2011
$695(36%)
2010
$435(30%)
2009
$407(34%)
2015
$474(30%)
2014
$800(34%)
2013
+36%+5% -1%
+16%
2011
$1,951
2010
$1,430
2009
$1,197
2012
$2,041
$1,556
2015
-34%
+19%
2014
$2,351
2013
$2,030
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Cost Management In Lower Activity Environment
Variable Cost Structure Reduced Maintenance Capex
Limited Growth Capex
Variable Field Cost
Overhead Reductions
Positioned for Prolonged Downturn
Maintain High Performance, High Value
Operating center consolidation
2015 restructuring/severance costs of $21 million
Management reorganization
$100 million in annual fixed cost savings
Active Fixed Cost Management
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Precision Drilling Investment Merits
Leading North American driller with global diversification
High Performance Tier 1 fleet of rigs with Tier 1 crews
Strong balance sheet with $445*
million of cash
Contract position backed by excellent customer base
Experienced organization and management team
Delivering Shareholder Value
TSX: PDNYSE: PDS* As of December 31st 2015TSX: PD NYSE: PDS
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Appendix
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Canadian Activity Update
0
100
200
300
400
500
600
700
800
Ca
na
dia
n A
cti
ve
La
nd
Rig
Co
un
t
5 Year Range 2011 - 2015 2014 2015 2016
Source: Baker Hughes land rig count as of Feb. 12. 2016
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0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2000 2002 2004 2006 2008 2010 2012 2014 2016
U.S
. A
cti
ve
La
nd
Rig
Co
un
t
Oil Gas
Oil Drilling Dominates Activity
Source: BHI, as of February 5th, 2016
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PEOPLE
SYSTEMS & SCALE
DRILLING TECHNOLOGY
LOWER RISK
MAXIMUM EFFICIENCY
ATTRACTIVE RETURNS
PRODUCES
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SYSTEMS&
SCALE
IT Infrastructure and ERP
Supply Chain Management• Leverage Procurement• Vendor Management• Centralized Support
Technical Support centres• Asset Integrity• Maintenance Standard• Centralized Support• In House Repair & Rebuild
Manufacturing + Capital Projects• Engineering• Project Management• Equipment Manufacturing (Rostel)
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8,680 employees completed training through Precision Tech centres in 2013 – 2015
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Global recruitment
7 Countries
10 Provinces
50 States
Toughnecks program processed 13,505 applications and hired 506 people in 2015
90% retention target of key field positions
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Safety & Operations
Training
Rig Build & Construction
Repair & Maintenance
Nisku Drilling Support Centre
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Completion & Production Segment: Full Well Cycle Exposure
Largest well service provider in Canada and established presence in U.S.
Over 150 Well Service, Snubbing and Coil Tubing rigs
Large fleet of high value rental equipment
Camps and Catering
Excellent footprint in Canada and Northern U.S.
Existing asset base supports solid cash flow generation
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International Revenue Growth
Inte
rna
tio
na
l R
eve
nu
e (
mil
lio
ns)
Compounded Annual Growth Rate
$240
$160
$200
$120
$0
$40
$80
+77%
20152014201320122011
Revenue
• Initiated Saudi with 3 Rigs
• Deployed additional 3 Rigs to Mexico
• Initiated Kurdistan with 3 Rigs
• Initiated Kuwait with 2 Rigs
• Deployed additional 1 rig to Saudi
• Deployed 1 rig to Georgia• Deployed additional 1 rig to Kuwait• Signed 2 newbuild contracts for
delivery to Kuwait in early 2017
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Commodity • Vertical gas • Vertical gas• Vertical oil• Horizontal gas emerges
• Horizontal gas, development mode• Horizontal oil/liquids growth• Vertical oil• Vertical gas declining
Customers • Small independents• Highly cyclic customer
demand
• Large cap independents• Mid cap independents• Small cap independents
• Integrated oil companies• National oil companies • Large cap independents• Mid cap independents• More stable demand
UnconventionalBasins
• Oil Sands • U.S. focused• 3 to 5 basins
• U.S. and Canada • Emerging Internationally• 20+ basins
Barriers to Entry & Competitive Advantage
• Low barriers• No differentiation
• Rig ownership• Capital• Technology bifurcation
emerging• High performance contractors
emerge• Shortage of Tier 1 rigs
• Technology bifurcation complete• Rig efficiency dominates• Scale benefits apparent• Capital needs large• Established track record• Robust support systems• Tier 1 rigs in demand
North American Market Has Transitioned To Industrialized Resource Drilling
1985-2005Reservoir Drilling
2005-2010Resource Drilling Emergence
2010-PRESENTIndustrial Resource Drilling
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Precision Commands Leadership In Canadian LNG Opportunity
Approved export capacity of 26Bcf/day 1
Opportunity for 20 to 25 rigs per Bcf of export capacity
Longer-term demand source
Require deeper Tier 1 rigs
ST-1200 and ST-1500 rigs ideal for type of development Pad walking Potential year around operations
Well capitalized players funding projects Want long-term partners with proven
track record
Precision has won approximately half of the awarded LNG related new builds
ST-1500 deployed in Northwestern Alberta in February 2014
1. Source: Risky Business: This issue of timing, entry and performance in the Asia-Pacific LNG Market, The School of Public Policy SPP Research Papers, University of Calgary
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Precision’s Tier 1 Super Series Fleet
High Performance Development Drilling Technology
INDUSTRY LEADING RIGSDelivering unrivaled economics through High Performance
Rapid Mobility Walking/skidding system Location to location Sophisticated connections
Small footprint Integrated components Cold weather operations
Smart Design
Automation & Safety Features
Pipe handling Electronics and hydraulics Advanced control systems
1) ST-1500 Requires as few as 42 truck loads in addition to 12 loads of tubular and any operator rental loads2) Requires as few as 36 truck loads in addition to 10 loads of tubular and any operator rental loads
Super Triple 1500 1
Super Triple 1200 2Super Single
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800, 525-8th Avenue S.W.
Calgary, Alberta, Canada T2P 1G1
Telephone: 403.716.4500
Facsimile: 403.264.0251
www.precisiondrilling.com