Mr. Carey Ford reports

PRECISION DRILLING EXTENDS SENIOR CREDIT FACILITY AND PROVIDES PROGRESS UPDATE ON 2024 DEBT REPAYMENT AND SHARE REPURCHASE TARGETS

Precision Drilling Corp. has successfully extended its senior credit facility, and, with strong cash flow generation during the first half of the year, it is well on track to meet its 2024 debt reduction and share repurchase targets.

Senior credit facility extension

On June 28, 2024, Precision extended its senior credit facility's maturity date, revised the available borrowing capacity, and amended certain terms. The maturity date was extended to June 28, 2027, and the size was revised to $375-million (U.S.) (previously $447-million (U.S.)), which includes an accordion feature to increase the facility to $750-million (U.S.).

2024 debt repayment and share repurchase progress

Since the beginning of the year, Precision has reduced debt by $103-million, marking significant progress toward its 2024 debt reduction target of $150-million to $200-million. Second quarter debt repayments included the redemption of $56-million (U.S.) of 2026 unsecured senior notes and the repayment of $25-million of real estate credit facilities that were due in 2026 and 2028. As at June 30, 2024, Precision's outstanding debt obligations include:

• $217-million (U.S.) in 7.125 per cent unsecured senior notes due Jan. 15, 2026;
• $400-million (U.S.) in 6.875 per cent unsecured senior notes due Jan. 15, 2029;
• $8-million (U.S.) real estate credit facility due in 2025.

With strong cash flow generation during the second quarter, Precision also returned $24-million to shareholders through share repurchases under its normal course issuer bid. For the first six months of the year, Precision has repurchased 369,309 common shares for $34-million, representing 3 per cent of its outstanding common shares.

Chief financial officer quote

Carey Ford, Precision's chief financial officer, commented: "Today's announcement marks another step in strengthening our balance sheet and returning capital to shareholders. Our organization has been intensely focused on cost management, capital discipline and cash flow generation, and our results are a testament to the efforts of all Precision employees. For 2024, we are committed to repaying $150-million to $200-million in debt and returning 25 per cent to 35 per cent of free cash flow before debt repayments to shareholders through share repurchases. Precision's longer-term balance sheet goal is to reduce debt by $600-million between 2022 and 2026 and achieve a net debt to adjusted EBITDA [earnings before interest, taxes, depreciation and amortization] ratio of below 1.0 times by the end of 2025. Since the beginning of 2022, we have reduced debt by approximately $360-million and expect to be well over $400-million by the end of this year."

About Precision Drilling Corp.

Precision is a leading provider of safe and environmentally responsible high performance, high-value services to the energy industry, offering customers access to an extensive fleet of Super Series drilling rigs. Precision has commercialized an industry-leading digital technology portfolio known as Alpha that utilizes advanced automation software and analytics to generate efficient, predictable and repeatable results for energy customers. The company's drilling services are enhanced by its EverGreen suite of environmental solutions, which bolsters the company's commitment to reducing the environmental impact of its operations. Additionally, Precision offers well service rigs, camps and rental equipment -- all backed by a comprehensive mix of technical support services and skilled, experienced personnel.

Precision is headquartered in Calgary, Alta., Canada, and is listed on the Toronto Stock Exchange under the trading symbol PD and on the New York Stock Exchange under the trading symbol PDS.

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