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PRECISION DRILLING CORPORATION

January 2019

*Rig 576, Loving County TX, Permian Basin TSX: PD NYSE: PDSTSX: PD NYSE: PDS

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Forward-looking Statements

Certain statements contained in this report, 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 statementsrelating to matters that are not historical facts constitute "forward-looking information" within the meaning of applicable Canadiansecurities legislation and "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States PrivateSecurities Litigation Reform Act of 1995 (collectively, "forward-looking information and statements").

In particular, forward looking information and statements include, but are not limited to, the following: our strategic priorities for 2018;our capital expenditure plans for 2018; anticipated activity levels in 2018 and our scheduled infrastructure projects; anticipated demandfor Tier 1 rigs; the average number of term contracts in place for 2018 and 2019; expectation for U.S. operating costs to be lower in thefourth quarter of 2018; our future debt reduction plans beyond 2018; and the anticipated financial, operational and strategic benefits ofthe proposed Trinidad Drilling transaction.

These forward-looking information and statements are based on certain assumptions and analysis made by Precision in light of ourexperience and our perception of historical trends, current conditions, expected future developments and other factors we believe areappropriate under the circumstances. These include, among other things: the fluctuation in oil prices may pressure customers intoreducing or limiting their drilling budgets; the status of current negotiations with our customers and vendors; customer focus on safetyperformance; existing term contracts are neither renewed nor terminated prematurely; our ability to deliver rigs to customers on a timelybasis; 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 orachievements will conform to our expectations and predictions is subject to a number of known and unknown risks and uncertaintieswhich 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 ancillaryoilfield services; our customers’ inability to obtain adequate credit or financing to support their drilling and production activity; changes indrilling 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 onoperations and facilities; the availability of qualified personnel and management; a decline in our safety performance which could resultin lower demand for our services; changes in environmental laws and regulations such as increased regulation of hydraulic fracturing orrestrictions on the burning of fossil fuels and greenhouse gas emissions, which could have an adverse impact on the demand for oil andgas; terrorism, social, civil and political unrest in the foreign jurisdictions where we operate; fluctuations in foreign exchange, interestrates and tax rates; and other unforeseen conditions which could impact the use of services supplied by Precision and Precision’s ability torespond to such conditions.

Readers are cautioned that the forgoing list of risk factors is not exhaustive. Additional information on these and other factors that couldaffect 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 Information Form for the year ended December 31, 2017, which may be accessed onPrecision’s SEDAR profile at www.sedar.com or under Precision’s EDGAR profile at www.sec.gov. The forward-looking information andstatements contained in this news release are made as of the date hereof and Precision undertakes no obligation to update publicly orrevise any forward-looking statements or information, whether as a result of new information, future events or otherwise, except asrequired by law.

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Precision’s 2018 Strategic Priorities

Enhance financial performance through higher utilization and improved margins

Reduce debt by generating free cash flow while continuing to fund only the most attractive investment opportunities(Target $300 million-$500 million debt reduction in the next 3-4 years; $75 million-$125 million in 2018)

Commercial deployment of Process Automation Controls and Directional Guidance Systems on a wide scale

FINANCIAL PERFORMANCE

REDUCE DEBT WITH FREE CASH FLOW

TECHNOLOGY AS A DIFFERENTIATOR

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Creating Shareholder Value

MARKET SHARE GAINS & PREMIUM PRICING DRIVE FINANCIAL PERFORMANCE

HIGH PERFORMANCE SUPER SERIES FLEET

CASH FLOW GENERATION FOR DEBT REPAYMENT AND ENHANCED EQUITY VALUE

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PRECISION AT A GLANCE

High Performance Land Driller

*Dots on map representative of areas where Precision has had drilling operations in 2015, 2016 & 2017 (09/2017)

257 Drilling Rigs:Canada (135)U.S. (105) International (17)

210 Service Rigs:Canada (202)U.S. (8)

Complementary Services:Camps & Catering, Rentals and Water Treatment

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0

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2012-2017 Range

2014

2016

2017

2018

2019

HISTORICAL NORTH AMERICAN DRILLING ACTIVITY

U.S. ACTIVITY IMPROVING IN 2018

U.S. LAND RIG COUNT10 YEAR HISTORY

CANADIAN LAND RIG COUNT5 YEAR HISTORY

Source: Baker Hughes land rig count as of 12/28/2018

1282016 Average

Active Rigs

3782014 Average

Active Rigs

2052017 Average

Active Rigs

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

201020082007 20142009 2011 2012 2013 20162015 2017 20192018

1,8042014 Average

Active Rigs

8562017 Average

Active Rigs

9432015 Average

Active Rigs

4862016 Average

Active Rigs

1,0132018 Average

Active Rigs

1912018 Average

Active Rigs

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Precision’s High Performance Foundation

PRECISION SYSTEMS + SCALE

PRECISION CREWS SUPER SERIES RIGS

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SYSTEMS + SCALE

Driving Operational Excellence and Lower Costs

Supply Chain Management

▪ Cost Savings▪ Vendor Management▪ Centralized Support

Manufacturing + Capital Projects

▪ Engineering▪ Project Management▪ Equipment Manufacturing

Technical Support Centres

▪ Asset Integrity▪ Maintenance Standard▪ In House Repair & Rebuild

IT Infrastructure and ERP

▪ Supports Increased Data Flows▪ Operating Efficiencies▪ Fixed Cost Leverage

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Recruiting and Development Program Successfully Eliminates Labor Constraints

1,200 – 1,400 Screened candidates in the

system

▪ 100+ drilling rigs reactivated from Q2/16 lows, 2000+ positions filled▪ 8,000 people received in-house training in 2017

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

Structured Competency

StandardsWorld-Class Safety

Culture and Processes

177,972Applications processed

2013-2017(35,800 Applications in 2017)

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Precision’s Super Series Investments Drive Market Share Gains

>$3.0 Billion in Drilling Expansion and Upgrade Capital Investment from 2011 – 2017

1) Excludes 16 upgrade candidates, 100 newbuild rigs and 21 major upgrades.2) Decommissioned 36 legacy rigs in 2011, 52 rigs in 2012, 29 rigs in 2014 and 79 rigs in 2015 – total of 196 rigs.3) Peak based on Baker Hughes U.S. Land Rig Count average of 1,872 in November, 2014.

1,2

121TIER 1 RIGS

ADDED

2014 Peak Month Avg. Rig Count

Peak 2018 U.S. Rig Count as % of 2014 Peak Month Average 3

81%

67%

56% 58%

80%

56%

44%

PD Lower 48Peer CPeer A Peer B

101

Peer D Lower 48 ex. PD &

Peers A-D

72 192 290 291 1,872 926

75

114 119 125 128 129 128

43

7279

88101 102 103 105

5

2

2013

8

2

20162011 2012

2

2014

6

2015

8 8

129

2017 2018

Int.

U.S.

Canada

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PRECISION SUPER TRIPLE

Advanced Rig Technology

1500 HP TDS-11 TOP DRIVE

25,000’ + FT RACKING CAPACITY

PROCESS AUTOMATION CONTROL (APPS)*

DRILLING EQUIPMENT CONTROL SYSTEM*

HIGH SPEED DOWNHOLE DATA*

“OMNI-PAD” WALKING SYSTEM

TRANSFER TANK

TWO SPEED DRAWWORKS

DIRECTIONAL GUIDANCE SYSTEM*

(3) 1,600HP 7,500 PSI PUMPS

(4) CAT 3512 GENSETS

INTEGRATED POWER MANAGEMENT SYSTEM

1

1

2 3

4

5

6

7 8

9 11

10

2

3

4

5

6 825,000 LBS HOOKLOAD

7

8

9

10

11 UMBILICALLY CONNECTEDBACKYARD COMPLEX

12

1213

14

13

14

REMOTE OPERATIONS CONTROL CENTER (OPTIMIZATION*)

* Precision Technology Building Blocks

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COMMERCIALIZE RIG AUTOMATION

Reinforce Precision’s High Performance competitive advantage by deploying Process Automation Controls, Directional Guidance Systems and Drilling Performance Applications on a wide scale commercial basis

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PRECISION TECHNOLOGY BUILDING BLOCKS

DRILLING EQUIPMENT CONTROL SYSTEM

Connects all rig components to electronically manage, control and

monitor rig equipment

PROCESS AUTOMATION CONTROL

Automates repetitive drilling activities using pre-programmed

automation routines

APPS

Open source software allows for expansive app development to

further automate drilling operations

HIGH SPEED DOWNHOLE DATA

Wired drill pipe enables instantaneous transmission of data,

saving time

RIG AUTOMATION

DIRECTIONAL GUIDANCE SYSTEM

Steering instructions generated using algorithms and real-time

downhole data to automate directional drilling

OPTIMIZATION

Using analytics and data to improve performance, drill faster

DRAWWORKS ENGINES

MUD PUMPSTOP DRIVE

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Technology Update

▪ NOVOS installed on 27 rigs including training rigs in Nisku and Houston

▪ 33 NOVOS systems by year end

▪ Drilled >290 wells year-to-date1 in 2018 utilizing PAC

▪ Drilled >2.5 million feet on >100 DGS wells year-to-date1

1) As at 10/24/2018

▪ Deploying revenue generating Drilling Performance Apps on several rigs –customer, third-party and Precision written• 15 Apps in varying stages of commercial development

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41% Overall Time SavingsPER CONNECTION

PROCESS AUTOMATION CONTROL

Consistent, Predictable, Repeatable

Experienced Driller

Min

ute

sProcess Automation Control

Min

ute

s

Precision data from Rig 601 field trials

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Consistent, Predictable, Repeatable Well Results

TIME (DAYS)

▪ Automation improves well times and reduces variation

▪ For PD – strong utilization, incremental revenue and competitive advantage

1713 14

4 DAYS

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Technology Commercialization – Revenue Potential

REVENUE IMPACT

Each technology is a service sold to customers as bolt on to

our existing rigs

FLEET PULL THROUGH

Pull through on existing rigs and directional drilling service

TECHNOLOGY DAILY EBITDA IMPACT ESTIMATE AVAILABLE FLEET EST. % OF ACTIVE RIGS (2019-2020)

PAC $1,500 100+ rigs 80%-100%

DGS $1,000 256 rigs 20%-50%

High Speed Downhole Data $2,500 100+ rigs 20%

Apps $250-$1,000 100+ rigs 80%-100%

FIXED DAILY CHARGE INCREASED UTILIZATION & DAYRATE

REINFORCED COMPETITIVE ADVANTAGE

New technologies will strengthen competitive

advantage and provide a platform for future technology

revenue streams

MARKET SHARE

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FINANCIAL PERFORMANCE

Enhance financial performance through higher utilization and improved operating margins

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0

300

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900

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0

20

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60

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2016 Low 2016 Avg. 2017 Avg. Q3/18 Avg. Current

PD Lower 48 (RHS)

2

UNITED STATES

Focused on Market Share Growth, Cash Flow Growth

▪ Pricing power on Super Series rigs

▪ Leading edge dayrates up as much as US$10,000+ from trough

▪ Dayrates and margins continue to improve

▪ Highest market share in company history at ~7.5%

▪ Low cost rig upgrades backed by contracted cash flow

▪ Technology (PAC, DGS, Apps) driving further growth

1) Market share based on drilling days 2) Current rig count as at 12/28/2018, Baker Hughes* Dots on map representative of areas where Precision has had operations in 2015, 2016 & 2017 (09/2017)

MARKET SHARE1ACTIVE RIG COUNT GROWTHPRECISION DRILLING U.S.

COMPLETE GEOGRAPHICAL COVERAGECASH FLOW MOMENTUMTOTAL REACH

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

22%

24%

DJ-NiobraraPermianWoodford

2017

2010PD trough to current up ~265% versus Lower 48 up ~180%

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CANADA

Focused on Cash Flow

$156

$252

$269

$321

STRONG FREE CASH FLOW GENERATION

1) Cash flow calculated using reported daily margins multiplied by drilling utilization days plus C&P EBITDA, less Canadian maintenance capital expenditure.2) Based on well count provided by industry sources and internal analysis (2017 average).* Dots on map representative of areas where Precision has had operations in 2015, 2016 & 2017 (09/2017)

128 Tier 1 RigsINDUSTRIALIZED DRILLING EFFICIENCY

70+ DeliveredNEWBUILD & UPGRADED RIGS SINCE 2010

#1 High Performance Fleet in

Canada

SUPER SERIES FLEET

MARKET POSITION

25% Market ShareTypically operate 25% of rigs in market with 135 drilling rig fleet

30% DuvernayLEADING MARKET SHARE2

33% Heavy OilLEADING MARKET SHARE2

26% MontneyLEADING MARKET SHARE2

▪ Generated $1.8 billion in free cash flow since 20101

▪ Virtually no upgrade capital spending planned in 2018

▪ Scale drives operational and cost efficiencies

▪ Activity and margins expected to be up y/y in 2H ‘18

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INTERNATIONAL

Stable Cash Flow in Low Cost Region

ESTABLISHED SCALEIN THE MIDDLE EAST REGION

▪ Additional Kuwait newbuild award (Q3/19 deployment)

▪ Ability to leverage fixed costs with additional deployments

▪ Targeting IOC’s and NOC’s that value Safety and Performance

8 RIGSCURRENTLY UNDER CONTRACT

6 NEWBUILD RIGSDEPLOYED SINCE 2014 INCLUDING TWO IN Q4/16

17 TOTAL RIGSDEPLOYED INTERNATIONALLY (12 ME REGION, 5 MEXICO)

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Revenue and Cash Flow Visibility and Stability

TOP 50 CUSTOMERS12017

PUBLIC

72%

CONTRACT BOOK3

CUSTOMER BASE

▪ Primarily public, large private, and national oil companies

▪ Average market capitalization of ~$48 billion (median ~$11 billion)2

1. Includes Canada, U.S. and International operations based on revenue (2017) , 2. As of 11/23/2018, 3. As of 11/17/2018

▪ Proactive contract management – balancing predictable cash flow with exposure to improving price environment

▪ All contracts performed through the downturn

PRIVATE

24%

NATIONALOIL COMPANIES

4%

9 7

46

23

8

5

2018 Average 2019 Average

63

35

CanadaInternational US

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PRECISION WELL SERVICING

High Performance Well Service Operations – Focused on Cash Flow

Largest service rig provider in the WCSB and

established presence in the U.S.

▪ Ideally suited to address maintenance,

optimization and completion needs

210 Well Service rigs and Snubbing units

▪ Includes 2016 acquisition of Essential’s well

service rig fleet

Restructuring complete, well positioned for free

cash flow

Centralized Facility Includes:

Localized operations & management teams

Centralized technical support services

Centralized HSE support & training center

Precision Well Service Facility, Red Deer, Alberta

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REDUCE DEBT WITH FREE CASH FLOW

Reduce debt by generating free cash flow while continuing to fund only the most attractive investment opportunities

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2018 CAPITAL PLAN

Strict Financial Discipline

TOTAL:

$94M

PLANNED 2018 CAPEX

$71M

EXPANSION & UPGRADES

▪ Plans to upgrade ~12-24 Tier 1 rigs to

industry leading rig specifications

▪ Additions of walking systems

▪ Increased pumping and racking capacities

▪ Rig automation systems

** Spending contingent on firm customer contract commitments that meet internal return thresholds

▪ Kuwait new build rig (~$10 mm spending in 2018, remainder in 2019)

▪ U.S. new build rig completed for <$10 mm

$64M

MAINTENANCE, INFRASTRUCTURE &

INTANGIBLES

▪ Fleet well maintained throughout the

downturn, minimal catch-up

maintenance required

▪ Remaining spend related to ERP

system upgrade

✓ Increase operating efficiencies, improve fixed cost leverage and position organization to better handle increased data flows

▪ Maintenance spend highly correlated

to activity levels

$135M

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Financial Performance

▪ Aggressive cost management

▪ Rig contract performance

▪ Premium day rates

▪ TTM SG&A expenses down ~20% from pre-downturn levels1

▪ Stable corporate headcount from post-restructuring levels

▪ Increased U.S. rig count by >200% from trough to Q3/18

FIXED COST LEVERAGEWITH IMPROVED ACTIVITY

RESILIENT MARGINSTHROUGH THE DOWNTURN

1) From Q1/14 to Q3/18

(in $ millions)

Revenue $1,321 $1,003

EBITDA $305 $228

Margin 23% 23%

Fiscal

2016

Fiscal

2017

0

20

40

60

80

100

120

140

0

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120

140

160

180

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. Act

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Co

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t

TTM

SG

&A

Exp

ense

($

mm

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TTM SG&A U.S. Rig Count WCSB Rig Count

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Precision’s Balance Sheet Management Through Downturn

1. The 2015 total includes the 2019 maturity C$200 million senior notes converted at the exchange rate as of Dec 31, 2014.2. Liquidity calculated as undrawn portion of revolver (adjusted for LCs outstanding) and cash using CAD/USD exchange rate and balance sheet numbers3. Reflects US$30 million redemption expected by year end 2018

US$166

US$350

US$395 US$400

2020 202620232018 2019 2021 2022 20252024

No Maturities Until December 2021

SENIOR DEBT MATURITY PROFILE3

DEBT REDUCTION PROGRESS

Liquidity as of 9/30/2018 2

(in $ millions)

$675

$110

$661

$65$785

Cash

Revolver/ Operating Facilities1

(Matures November, 2021)

STRONG LIQUIDITY POSITION

1.1

1.2

1.3

1.4

1.5

1.6

1.7

2015 2016 2017 YE2018E

Lon

g-te

rm D

ebt

US$

Bn

s

~US$280mm reduction

1

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Creating Shareholder Value

MARKET SHARE GAINS & PREMIUM PRICING DRIVE FINANCIAL PERFORMANCE

HIGH PERFORMANCE SUPER SERIES FLEET

CASH FLOW GENERATION FOR DEBT REPAYMENT AND ENHANCED EQUITY VALUE