Precision Drilling Announces 2026 Third Quarter Unaudited Financial Statements

Carey Ford, President and CEO of Precision Drilling Corporation

“Precision delivered another quarter of solid operational and financial execution, highlighted by year-over-year growth in revenue, Adjusted EBITDA, and net earnings, robust activity in Canada, and continued improvement in U.S. rig activity and day rates. We are delivering on what we set out to accomplish in 2026: growing revenue and deepening customer relationships, generating free cash flow, and returning capital to shareholders. During the third quarter, our drilling rig utilization increased 16% in Canada and 19% in the U.S. compared with the prior year, outpacing industry activity in both markets. In Canada, our unique positioning in heavy oil basins drove our outperformance, while in the U.S., we further strengthened our customer base, increased day rates, and reactivated six rigs to meet growing customer demand. We continue to invest selectively in our fleet and expect to complete upgrades to 25 rigs across Canada and the U.S. this year, enhancing our competitive position in core markets and supporting future growth. Our cash flow generation continues to support a balanced approach to capital allocation. During the quarter, we generated $71 million of cash from operations, invested $24 million into fleet upgrades, and returned $31 million to shareholders through share repurchases. Year to date, we have repurchased $47 million of shares while reducing debt by $75 million. With our long-term leverage target within reach, we expect to enter 2027 with greater flexibility to direct free cash flow toward direct shareholder returns. Looking ahead to 2027, we believe we are very well positioned to sustain momentum established this year, with our growing North American contract book further strengthening our outlook. In Canada, robust customer demand is positioning us for one of our busiest winter drilling seasons in years, with our Super Triple and Super Single rigs expected to be near full utilization. In Completion and Production Services, favorable producer economics, our differentiated service model and expanding drilling and service rentals businesses are expected to support continued growth and improved profitability. In the U.S., our strategy is delivering results. With the majority of our planned rig reactivations behind us, we expect U.S. operating margins to increase approximately 30% during the fourth quarter of 2026, establishing a stronger foundation for 2027. Our focus remains on aligning with customers who value Precision’s high-performance assets, technology, safety and operational execution. This growth is strategic, strengthening our business and creating sustainable value for shareholders. Internationally, our seven active rigs are supported by long-term contracts, providing a stable base of activity and cash flow. We expect our idle rig in Kuwait to return to work in mid-2027 under a five-year contract, following planned recertifications and upgrades. While geopolitical uncertainty and elevated regional costs remain important considerations, our teams continue to execute safely and reliably for customers. As we move through the final quarter of 2026, we are encouraged by the momentum across our business and the progress we have made toward our strategic priorities. While commodity price volatility and geopolitical uncertainty remain, we are entering 2027 with a stronger U.S. business, high utilization across our core Canadian fleet, stable international operations and continued growth in Completion and Production Services, providing a unique platform for generating free cash flow and delivering long-term value for shareholders. Finally, I want to thank our employees for their dedication and our shareholders for their continued support. I would also like to recognize Veronica Foley, our Chief Legal and Compliance Officer, for her years of dedicated service and many contributions to Precision. On behalf of everyone at Precision, I thank Veronica and wish Veronica every success in the next chapter of her career,”