• Like Ryder System, but for operating specialized oil and gas drilling rigs.
• A specialized general contractor for oil and gas wells.

• Contract Drilling Services: Providing land-based drilling rigs, equipment, and personnel to drill oil and natural gas wells for exploration and production companies.
• Drilling Technology & Optimization Services: Offering specialized technologies and software to improve drilling efficiency, well placement, and safety, often integrated with their drilling services.
• Rental Services: Supplying rental equipment for drilling, completion, and production operations, including power generation, solids control, and accommodation units.

Precision Drilling (PDS) primarily provides contract drilling services and drilling rigs to other companies within the oil and natural gas industry. According to the company's 2022 annual report (10-K), no single customer accounted for more than 10% of its contract drilling services revenue, and its five largest customers collectively represented approximately 35% of this revenue. Due to this diversified customer base, Precision Drilling does not publicly disclose the names of its individual major customers.

However, Precision Drilling serves a broad range of oil and natural gas exploration and production (E&P) companies. These can generally be categorized as follows:

• Major Oil & Gas Companies (Integrated Majors or Supermajors): These are large, multinational energy companies involved in all aspects of the oil and gas value chain, from exploration and production to refining and marketing. Examples of such companies include:
  • ExxonMobil (XOM)
  • Chevron (CVX)
  • Shell plc (SHEL)
  • BP p.l.c. (BP)
  • TotalEnergies SE (TTE)
  • ConocoPhillips (COP)
• Large Independent Oil & Gas Companies: These companies typically focus primarily on upstream activities (exploration and production) and can have significant operations, often specializing in particular basins or types of resources. Examples of such companies in regions where Precision Drilling operates (e.g., North America) include:
  • EOG Resources, Inc. (EOG)
  • Pioneer Natural Resources Company (PXD)
  • Occidental Petroleum Corporation (OXY)
  • Marathon Oil Corporation (MRO)
  • Cenovus Energy Inc. (CVE)
  • Canadian Natural Resources Limited (CNQ)
• Smaller Independent Oil & Gas Companies: This diverse group includes numerous smaller public and privately held companies focused on exploration and production, often with more localized operations. Given their large number and varying sizes, specific examples are not comprehensively listed here.

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Carey T. Ford was appointed President and Chief Executive Officer of Precision Drilling Corporation in October 2025 and also serves as a member of the Board of Directors. He joined Precision Drilling in 2011 and previously served as Chief Financial Officer from 2016 until his appointment as CEO. During his time as CFO, Mr. Ford guided the company's financial strategy, strengthened investor confidence, and led finance, capital markets, corporate development activities, and various operational support functions. Prior to joining Precision, he worked as an investment banker at Simmons & Company International, focusing on the oilfield service sector. He also served as a Financial Analyst at Arthur Andersen and an Associate at The Sterling Group, a private equity firm.

Dustin Honing was named Chief Financial Officer in October 2025. He has been with Precision Drilling for nearly 15 years, advancing through various roles in accounting, finance, operational support, and investor relations. Most recently, he held the position of Vice President, Operations Finance.

Gene C. Stahl was appointed Chief Operating Officer of Precision Drilling in October 2025. He brings nearly three decades of experience with the company, having held leadership roles across operations, engineering, manufacturing, marketing, and health and safety. Before becoming COO, Mr. Stahl served as President, North American Drilling from 2023 to 2025, overseeing Canadian and U.S. operations, and as Chief Marketing Officer from 2019 to 2023.

Shuja U. Goraya has served as Chief Technology Officer since joining Precision Drilling in July 2018. He possesses over 24 years of experience in the oil and gas industry, working in technology management and drilling operations roles with Schlumberger Ltd. across the United States, Canada, the Middle East, Africa, and Asia. Prior to his current role, Mr. Goraya was the Vice President of the North American Drilling Group.

Darren J. Ruhr has been the Chief Administrative Officer of Precision Drilling since 2018, having joined the company in 1997. Before his current appointment, he served as Senior Vice President, Corporate Services from 2005 to 2018. Mr. Ruhr also held the position of Corporate Secretary from 2005 to 2008.

Key Risks to Precision Drilling (PDS)

1. Volatility in Commodity Prices and Customer Demand: Precision Drilling's business performance is highly sensitive to the fluctuating prices of oil and natural gas, which directly influence the exploration and development activities of its customers. Consequently, demand for contract drilling, well servicing, and ancillary oilfield services can be highly volatile. This market uncertainty has led Precision Drilling to trim its capital spending forecasts.
2. Market Uncertainty and Customer Capital Discipline: Beyond commodity price fluctuations, the broader market uncertainty, coupled with the capital discipline exercised by oil and natural gas producers, poses a significant risk. Drilling activity has shown weakening trends due to factors like lower natural gas prices, oil price volatility, drilling and completion efficiencies, and consolidation among producers. This environment directly impacts the demand for Precision Drilling's services and its operational planning.
3. Debt Obligations and Financial Commitments: Precision Drilling maintains substantial debt obligations and has set aggressive long-term debt reduction targets. While the company has been actively reducing debt and has plans for further reductions, these financial commitments are a key risk that could affect its financial flexibility and profitability. The company aims to achieve a sustained Net Debt to Adjusted EBITDA leverage ratio of below 1.0 times by the end of 2025.

The accelerating global energy transition and decarbonization efforts pose a clear emerging threat to Precision Drilling. As nations, corporations, and consumers increasingly shift towards renewable energy sources and away from fossil fuels to combat climate change, the long-term demand for new oil and natural gas exploration and production is projected to decline. This systemic shift in energy consumption patterns directly impacts the demand for contract drilling services, threatening to shrink Precision Drilling's addressable market over time. This is analogous to how new technologies and business models, like streaming services, disrupted demand for traditional entertainment distribution (e.g., Blockbuster and cable companies), fundamentally altering the industries they served.

Precision Drilling Corporation (PDS) primarily provides contract drilling and completion and production services to oil and natural gas exploration and production companies. Their main services include land drilling rigs, procurement and distribution of oilfield supplies, manufacturing and repair of drilling equipment, service rigs for well completion, workover, abandonment, maintenance, and re-entry preparation, as well as oilfield equipment rental, and camp and catering services. Precision Drilling operates in Canada, the United States, and certain international locations, including Kuwait, Saudi Arabia, Iraqi Kurdistan, and Georgia.

The addressable markets for Precision Drilling's main products and services can be broadly categorized within the larger Oilfield Services and Contract Drilling markets, with a particular focus on the onshore segments where the company primarily operates.

Addressable Markets:

• Global Oilfield Services Market:
  • The global oilfield services market was estimated at USD 133.1 billion in 2023 and is projected to reach USD 166.4 billion by 2030, growing at a Compound Annual Growth Rate (CAGR) of 3.4% from 2024 to 2030.
  • Another estimate values the global oilfield services market at USD 191.86 billion in 2024, expected to grow to USD 204.53 billion in 2025 with a CAGR of 6.6%.
  • The onshore segment dominated the global oilfield services market in 2024, commanding approximately 60% of the total market share.
• North America Oilfield Services Market:
  • The North American oilfield services market was estimated at USD 46.27 billion in 2024 and is anticipated to reach USD 61.03 billion by 2033, from USD 47.72 billion in 2025, growing at a CAGR of 3.12%.
  • The North American market dominated the global oilfield services market with a revenue share of 31.95% in 2023.
  • The U.S. oilfield services market dominated the North American market with a 75.07% share in 2023.
  • The onshore segment dominated the North America oilfield services market share in 2024.
• Global Contract Drilling Market:
  • The global contract drilling market size was valued at USD 12.53 billion in 2023 and is expected to grow to nearly USD 22.32 billion by 2030, with a CAGR of 8.6% from 2024 to 2030.

Precision Drilling (PDS) is expected to experience future revenue growth over the next 2-3 years, driven by several key factors:

1. Increased Drilling Activity and Enhanced Rig Utilization: Precision Drilling anticipates stable to increased rig counts, particularly in the Canadian winter drilling season and U.S. gas-weighted basins. This growth is supported by strong demand for the company's high-performance Super Series rigs and favorable market conditions in natural gas. The company noted full utilization on its Canadian Super Series rigs and increased year-over-year activity in international drilling, Canadian drilling, and well servicing in 2024, with optimism for future gas drilling activities in 2025.
2. Adoption of Advanced Drilling Technologies and Customer-Funded Rig Upgrades: A significant driver is Precision Drilling's continued leadership in drilling technology and innovation, including its Alpha and Evergreen platforms and real-time monitoring systems, which enhance rig performance. The company has also strategically expanded its capital budget to support customer-funded rig upgrades, with $109 million allocated for upgrades and expansion in 2025 due to additional contract-backed upgrades. This focus on high-value technology and specialized upgrades is expected to command better day rates and service value.
3. Growth in Well Servicing and Rental Services: The differentiated size and capabilities of Precision's well service fleet, which has expanded through consolidation, along with the performance of its Precision Rentals fleet, are contributing to year-over-year revenue growth. The company expects results from its Completion and Production Services (C&P) segment to improve with increased rates, activity, and rental performance.

Share Repurchases

• Precision Drilling repurchased $54 million of common shares year-to-date as of the third quarter of 2025.
• For 2024, the company returned $75 million to shareholders through share repurchases.
• Precision has a Normal Course Issuer Bid (NCIB) authorized to repurchase up to 1,251,850 common shares, representing approximately 10% of its public float, from September 2025 through September 2026. The company targets share repurchases of 35-45% of free cash flow.

Share Issuance

• In October 2020, Precision Drilling completed a 20:1 share consolidation, which reduced the number of outstanding common shares from approximately 274.5 million to 13.7 million.
• The number of shares outstanding as of October 2025 was 13,401,000.

Outbound Investments

• As of Q3 2025, Precision Drilling noted that current market conditions and commodity price volatility have made acquisitions less attractive in the near term.

Capital Expenditures

• Precision Drilling's planned capital expenditures for 2025 were revised upwards to $260 million, from an initial $200 million and then $240 million. This budget includes $151 million for sustaining and infrastructure and $109 million for upgrades and expansion.
• Capital expenditures for the first nine months of 2025 totaled $182 million. The primary focus of these expenditures is on upgrading 27 drilling rigs, particularly Super Series rigs, backed by customer contracts to meet demand for high-spec rigs and drive revenue growth.
• In 2024, capital expenditures were $217 million, allocated with $52 million for expansion and upgrades and $165 million for the maintenance of existing assets, infrastructure, and intangible assets.