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1
Investor Presentation
November, 2016
*Rig 580, Oklahoma SCOOP
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Forward-looking statements
Certain statements contained in this presentation, including statements that contain words such as "could", "should", "can", "anticipate", "estimate", "intend",
"plan", "expect", "believe", "will", "may", "continue", "project", "potential" and similar expressions and statements relating to matters that are not historical facts
constitute "forward-looking information" within the meaning of applicable Canadian securities legislation and "forward-looking statements" within the meaning of
the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995 (collectively, "forward-looking information and statement").
In particular, forward looking information and statements include, but are not limited to, the following: our contract log for 2016 and 2017; expectations on the
delivery of 2 additional rigs to Kuwait; our capital expenditure plan for 2016; and the potential amount in annual fixed cost savings due to the steps taken by
Management to position Precision for a prolonged downturn.
These forward-looking information and statements are based on certain assumptions and analysis made by Precision in light of our experience and our
perception of historical trends, current conditions, expected future developments and other factors we believe are appropriate under the circumstances. These
include, among other things: low oil and natural gas prices will continue to pressure customers into reducing or limiting their drilling budgets; the status of
current negotiations with our customers and vendors; continuing demand for Tier 1 rigs; customer focus on safety performance; existing term contracts being
neither renewed nor terminated prematurely; our ability to deliver rigs to customers on a timely basis; and the general stability of the economic and political
environments in the jurisdictions where we operate.
Undue reliance should not be placed on forward-looking information and statements. Whether actual results, performance or achievements will conform to our
expectations and predictions is subject to a number of known and unknown risks and uncertainties which could cause actual results to differ materially from our
expectations. Such risks and uncertainties include, but are not limited to: volatility in the price and demand for oil and natural gas; fluctuations in the demand for
contract drilling, well servicing and ancillary oilfield services; our customers’ inability to obtain adequate credit or financing to support their drilling and production
activity; changes in drilling and well servicing technology which could reduce demand for certain rigs or put us at a competitive disadvantage; shortages, delays
and interruptions in the delivery of equipment supplies and other key inputs; the effects of seasonal and weather conditions on operations and facilities; the
availability of qualified personnel and management; a decline in our safety performance which could result in lower demand for our services; changes in
environmental laws and regulations such as increased regulation of hydraulic fracturing or restrictions on the burning of fossil fuels and greenhouse gas
emissions, which could have an adverse impact on the demand for oil and gas; terrorism, social, civil and political unrest in the foreign jurisdictions where we
operate; fluctuations in foreign exchange, interest rates and tax rates; and other unforeseen conditions which could impact the use of services supplied by
Precision and Precision’s ability to respond to such conditions.
Readers are cautioned that the forgoing list of risk factors is not exhaustive. Additional information on these and other factors that could affect our business,
operations or financial results are included in reports on file with applicable securities regulatory authorities, including but not limited to Precision’s Annual
Report, Annual Information Form and 40-F for the year ended December 31, 2015, which may be accessed on Precision’s SEDAR profile at www.sedar.com,
under Precision’s EDGAR profile at www.sec.gov, or on our website at www.precision.com. The forward-looking information and statements contained in this
presentation are made as of the date hereof and Precision undertakes no obligation to update publicly or revise any forward-looking statements or information,
whether as a results of new information, future events or otherwise, unless so requires by applicable securities laws.
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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
Historical North American Drilling Activity
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
Jan, 2005
Jan, 2017
Jan, 2011
Jan, 2014
Jan, 2008
Jul, 2
006
Jul, 2
009
Jul, 2
012
Jul, 2
015
U.S. Land Rig Count10 Year History
Canadian Land Rig Count5 Year History
Source: Baker Hughes land rig count as of November 4th, 2016
4632016 Year to Date Average
1142016 Year to Date Average
1892015 Average
Active Rigs
9432015 Average Active Rigs
+36% increase in rig count since May lows
3782014 Average
Active Rigs
18042014 Average
Active Rigs
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Market Share Growth
0
50
100
150
200
250
300
Jul/15Jan/15 Jul/16Jan/16
Precision continues to deliver High Performance, High Value services, operating the second most active fleet in North America.
Acti
ve
No
rth
Am
eri
ca
n D
rill
ing
Rig
s
Peers A, B, and C operate in Canada and the U.S. Peer D operates only in the U.S.
U.S. Based Peer C
U.S. Based Peer D
U.S. Based Peer B
Canadian Based Peer A
PD
Oct/16
Source: Company disclosure, CAODC, and RigData as of October 31st, 2016
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Precision Responding to Improving Outlook
Reactivated 38 rigs in Canada from low of 10 rigs to 48 rigs
Reactivated 18 rigs in the U.S. from low of 21 rigs to 39 rigs
Filled ~1,000 positions
2016 Precision Average Active Rigs
0
20
40
60
80
100
120
Apr JulJunMayMarFebJan Sep
U.S.
OctAug
Canada
Reactivated
56 Rigs
Source: Company disclosure as of October 31st, 2016
6*Rig 575, Permian
Financial Performance – Precision’s Resilient Margins
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($ in millions) 2016 2015
Revenue $668 $1,211 $1,556
EBITDA $163 $363 $474
Margin 24% 30% 30%
Drilling Utilization Days
Canada 8,050 13,062 17,238
U.S. 7,773 17,063 21,172
International 2,044 3,262 4,084
Total Days 17,867 33,387 42,494
Nine months ended Sept. 30 Fiscal
2015
• Despite a ~50% decline in drilling days from the first 9 months of 2015 to the first nine months of 2016, EBITDA margin declined by only 20% due to aggressive cost management and rig contract performance
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Precision’s 2016 Strategic Priorities
Sustain High Performance, High Value competitive positioning
Position for a rebound
Manage strong liquidity position
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Manage Strong Liquidity Position
Liquidity as of 9/30/2016 1 Pro-forma 2016 Debt Offering
CashRevolver/ Operating Facilities (Matures June 3, 2019)
$736 Million $929 Million$193 Million
Attractive Capital Structure 2
Net debt to total capital: 42% Interest coverage: 2.0x
Long maturity, low cost debt Average interest rate of 6.4%
1) Calculated as undrawn portion of revolver (adjusted for LCs outstanding) and cash using CAD/USD exchange rate and balance sheet numbers as at 9/30/2016 (pro-forma October 31st 2016 high yield offering and related transaction costs.
2) Statistics refer to balance sheet and trailing twelve months income statement as of 9/30/2016. Net debt to total capital equals ratio of long-term debt less cash to long-term debt less cash plus equity. Interest coverage equals EBITDA divided by interest. Available liquidity, adjusted for amendment of revolver post quarter end.
3) Current blended cash interest cost of our debt is approximately 6.4%.
*Rig 570, Duvernay
US$400US$350US$319
US$372
20182016 2017 2023 20242021 202220202019
Senior Debt Maturity Profile
No Maturities Until November 2020
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Sustain High Performance, High Value Competitive Advantage
Added 11 rig years to 2017 contract
book, improving visibility next year
Reactivated 56 rigs throughout North
America, including the Permian,
Niobrara, Marcellus, Viking, Canadian
Bakken, Montney, Duvernay
Majority of the rigs reactivated have
been Super Triple 1500s in the U.S. and
Super Triple 1200s in Canada
Currently operating 87 rigs in North
America, 12% market share – up from
8% market share in Q3 2014*Rig 556, Louisiana, Drilling with fully integrated Directional Drilling services
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Position for the Rebound – Toughnecks Recruiting Program
102,224Applications processed
2013-2015
(16,000 Applications in 2016 1)
1,200 – 1,400 Screened candidates in the
system – ready to work
517Drillers ~50% at lower
positions
280Rig Managers ~40% at
lower positions
Brand & Advertising
Targeted Selection
Interviews
System Screening & Testing
New Hire
Rig Placement
1
1
1. As of September 30th 2016.
56 drilling rigs reactivated from Q2 lows, ~1000 positions filled
*Houston training rig10
11
119Tier 1 Rigs
Added
Position for the Rebound – 239 High Performance Super Series Rigs
75
114 119 125 128
43
7279
88101 102
2
2011
2
Canada
U.S.
International
2016E
129
8
2015
6
2014
5
2013
2
2012
1) As of October 21st 2016 - Includes 1 newbuild rigs for Kuwait to be delivered late 2016. Excludes 16 upgrade candidates. 2) Includes 97 newbuild rigs and 21 major upgrades.3) Decommissioned 36 rigs in 2011, 52 rigs in 2012, 29 rigs in 2014 and 79 rigs in 2015 – total of 196 rigs.
1,2,3
$359
$702
$180
$409
$619
$530
2014201320122011 2016E2015
$2.8 Billion in Drilling Expansion and Upgrade Capital Investment from 2011 – 2016E
Super Series Rigs Designed for Today’s Unconventional Development Drilling Programs
Expansion & Upgrade Capital
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High Performance – Precision Super Triple Efficiency
Reducing well cost while improving performance and
efficiency
Average Canada downtime of 0.42% and 1.39% for U.S.
74% improvements in recordable frequency
57% efficiency gain in average rig move days
6 days faster wells on PD integrated services with
reduced headcount on location
0
2,000
4,000
6,000
8,000
10,000
12,000
0 4 8 12 16 20 24 28 32
Ho
le D
ep
th (
Fe
et)
Drilling Days
Competitor A
Competitor B
PD Planned Well
PD Well
2-Man Directional Crew w/ Remote
MWD & DD
6 days faster
Feb/16Dec/15Oct/15Aug/15Jun/15Apr/15Feb/15
201320122011 20152014
0.59% 0.61%
0.41%0.50%
0.42%
20152014201320122011
Ca
na
dia
n
Do
wn
tim
e
Re
co
rda
ble
Fre
qu
en
cy
We
st
Te
xa
sA
vg
. M
ove
Da
ys
2.09%1.73% 1.65% 1.58% 1.39%
20152014201320122011
U.S
.D
ow
nti
me
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Lowering Cost and Improving Performance
Nisku - AlbertaHouston – Texas
Vertically Integrated
Centralized Procurement
Repair & Maintenance
• Leverage Scale• Centralized Support
Rig Build & Construction
State of the Art Training Rigs
*Houston Technical Centre 13
14
Comprehensive North American Footprint / Targeted International Markets
Dots representative of areas where Precision has had operations in 2014 and 2015
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Geographical Diversification
0%
20%
40%
60%
80%
100%
International
2016YTD2015
Canada
U.S.
20112010200920082007 201420132012
2007 to 2016YTD Geographical Diversification
Canadian revenue diversified from 95% to 36%
U.S. revenue increased from 5% to 47%
International expansion from 0% to 17%
Rig 89, Saudi Arabia
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Average market cap. of ~$40 billion (median ~$12 billion).2
Credit risk of contract book remains low.
All contracts have performed.
Strong Contract Book backed by Well Capitalized Customers
National OilCompanies
10%
Private26%
Public 64%
1 Includes Canada, U.S. and International operations and accounts for 82% of total revenue.2 As of October 27th, 2016.
2016YTD Top 50 Customers1
31
19
23
15
7
8
61
2017 Average2016 Average
42
Average Term Contracts
International
Canada
US
To date in 2016, have added 11 rig years to 2017 contract book.
17
Responsive Capital Allocation
$320
$187
$721
2016 Capital – $222 million
$179 million for Expansion and Upgrade
2 new-build rigs for Kuwait
$43 million for Maintenance and Infrastructure
2017 Capital
No anticipated growth capital
$43
$179
Maintenance & Infrastructure
Expansion & Upgrades
$1,000
$500
$020112010 2012 2016E2015201420132009
Annual Capital Spending ($ in millions) *Rig 904, Kuwait
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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 $352
*million of cash
Contract position backed by excellent customer base
Experienced organization and management team
Delivering Shareholder Value
* As of September 30th 2016TSX: PD NYSE: PDS
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Appendix
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Canadian Activity Update
Source: Baker Hughes land rig count as of November 4th, 2016
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 2010 - 2014 2014 2015 2016
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Oil Drilling Dominates Activity
Source: Baker Hughes land rig count as of November 4th, 2016
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
U.S
. A
cti
ve
La
nd
Rig
Co
un
t
Oil GasSource: BHI
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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)
24
Staffing for a Rebound – Retention and Development of Key Personnel
Leadership
Development
Programs
Career Path
Management
Structured Promotion
Programs
Long-term
Compensation Programs
Field Training
Investments
Permanent Training
Facilities with Fully
Functioning Rigs
Tier 1 Assets
World-Class Safety
Culture and
Processes
Precision HR Training and Processes
Structured Measured Retention Programs for Key Personnel
Structured
Competency
Standards
25
8,680 employees completed training through Precision Tech centres in 2013 – 2015
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Safety & Operations
Training
Rig Build & Construction
Repair & Maintenance
Nisku Drilling Support Centre
27
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
28
International Revenue Growth
Inte
rna
tio
na
l R
eve
nu
e (
mil
lio
ns)
Compounded Annual Growth Rate
$240
$200
$160
$120
$80
$40
$02016YTD20152014201320122011
Revenue
• Initiated Saudi with 3 Rigs
• Deployed additional 3 Rigs to Mexico
• Initiated Kurdistan with 2 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 late 2016
• 4th Kuwait rig started operations in October
• 5th Kuwait rig to start operations in November
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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’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