Investor Presentation January, 2017 1 *Rig 580, Oklahoma SCOOP - PowerPoint PPT Presentation

Investor Presentation January, 2017 1 *Rig 580, Oklahoma SCOOP

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 2017; 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. 2

Historical North American Drilling Activity U.S. Land Rig Count Canadian Land Rig Count 10 Year History 5 Year History 5 Yr. Range 2011 - 2015 1804 2,000 800 2014 2014 Average 2015 Active Rigs 2016 1,800 700 1,600 600 1,400 500 943 1,200 2015 Average 400 Active Rigs 378 1,000 2014 Average 189 +67% Active Rigs increase in rig 300 2015 Average count since 800 Active Rigs May lows 200 600 128 100 486 400 2016 Year to 2016 Year to Date Average Date Average 200 0 January February March April May June July August September October November December Jan, 2006 Jan, 2007 Jan, 2008 Jan, 2009 Jan, 2010 Jan, 2011 Jan, 2012 Jan, 2013 Jan, 2014 Jan, 2015 Jan, 2016 Jan, 2017 3 Source: Baker Hughes land rig count as of December 30 th , 2016

Market Share Growth 300 Precision continues to deliver High Performance, High Value services, operating the most active fleet in Active North American Drilling Rigs 250 North America. PD 200 Canadian Based Peer A U.S. Based Peer B U.S. Based Peer C U.S. Based Peer D 150 100 50 0 Jan/15 Mar/15 May/15 Jul/15 Sep/15 Nov/15 Jan/16 Mar/16 May/16 Jul/16 Sep/16 Nov/16 Jan/17 Peers A, B, and C operate in Canada and the U.S. Peer D operates only in the U.S. 4 Source: Company disclosure, CAODC, and RigData as of December 16 th , 2016

Precision’s 2016 Strategic Priorities: Scorecard Retired 2019 Senior Notes, and partially • redeemed 2020 and 2021 Senior Notes Reduced total debt by $213 million • Managed strong liquidity position Extended debt maturities • Access to undrawn revolver • Solid cash balance • Gained market share in North America • Sustained High Performance, High Continued fleet investment • Value competitive positioning Sustained rig training standards • Improved rig efficiency and safety • Reactivated 60+ rigs in Canada • Reactivated 20+ rigs in the U.S. • Positioned for a rebound No fixed cost increase • Rigs were not cannibalized, no catchup • maintenance capital is required 5

Precision’s 2017 Strategic Priorities Maximize Cash Flow from Operations Sustain High Performance, High Value competitive positioning Advance Rig Technology and Efficiency 6

Precision’s 2017 Strategic Priorities Maximize Cash Flow from Operations Sustain High Performance, High Value competitive positioning Advance Rig Technology and Efficiency 7

Precision’s 239 High Performance Super Series Rigs  $2.8 Billion in Drilling Expansion and Upgrade Capital Investment from 2011 – 2016E  Super Series Rigs Designed for Today’s Unconventional Development Drilling Programs 1,2,3 119 Tier 1 Rigs Added 8 International 6 $702 Expansion 5 & Upgrade $619 2 Capital 2 U.S. 102 101 $530 88 79 72 $409 $359 2 43 $180 Canada 128 129 125 119 114 75 $58 2011 2012 2013 2014 2015 2016E 2011 2012 2013 2014 2015 2016F 2017E As of December 31 st 2016 - Includes both newbuild rigs for Kuwait delivered in Q4 2016. Excludes 16 upgrade candidates. 1) 2) Includes 98 newbuild rigs and 21 major upgrades. 8 8 3) Decommissioned 36 rigs in 2011, 52 rigs in 2012, 29 rigs in 2014 and 79 rigs in 2015 – total of 196 rigs.

Strong Contract Book backed by Well Capitalized Customers Average Term Contracts 2016YTD Top 50 Customers 1 61 7 Private 45 26% 23 8 Public 64% 18 10% National Oil Companies 31 International 19 US Canada Average market cap. of ~$40  billion (median ~$12 billion). 2 2016 Average 2017 Average Credit risk of contract book  To date 2 in 2016, have added 14  remains low. rig years to 2017 contract book. All contracts have performed.  1. YTD is through 9/30/16. Includes Canada, U.S. and International operations and accounts for 82% of total revenue. 2. As of October 21 st , 2016 (Q3 2016 earnings call) 9

Precision’s 2017 Strategic Priorities Maximize Cash Flow from Operations Sustain High Performance, High Value competitive positioning Advance Rig Technology and Efficiency 10

Sustain High Performance, High Value Competitive Advantage  Added 14 rig years to 2017 contract book, improving visibility next year and market share  Reactivated 78 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 *Rig 576, Drilling in West Texas (Permian Basin) 11