Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16]

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

Pursuant to Section 13a-16 or 15d-16 of the

Securities Exchange Act of 1934

For the month of, October 2024

Commission File Number: 001-14534

Precision Drilling Corporation

(Exact name of registrant as specified in its charter)

800, 525 - 8 Avenue S.W.
Calgary, Alberta
Canada T2P 1G1

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F             Form 40-F   X  

SIGNATURE

Pursuant to the requirements of Section 12 of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Dated: October 30, 2024	PRECISION DRILLING CORPORATION

	By:	/s/ Carey T Ford
	Name:	Carey T Ford
	Title:	Chief Financial Officer

Exhibit	DESCRIPTION

31.1	Certification of Chief Executive Officer, Kevin Neveu, regarding the “Certification of Interim Filings” pursuant to Form 52-109F2.

31.2	Certification of Chief Financial Officer, Carey Ford, regarding the “Certification of Interim Filings” pursuant to Form 52-109F2.

99.1	Management’s Discussion and Analysis for the period ended September 30, 2024.

99.2	Consolidated Financial Statements for the period ended September 30, 2024.

Exhibit 31.1

FORM 52-109F2

CERTIFICATION OF INTERIM FILINGS

I, Kevin A. Neveu, President and Chief Executive Officer of Precision Drilling Corporation, certify the following:

1.

Review: I have reviewed the interim financial report and interim MD&A (together, the "interim filings") of Precision Drilling Corporation (the "issuer"), for the interim period ended September 30, 2024.

2.

No misrepresentations: Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings.

3.

Fair presentation: Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.

4.

Responsibility: The issuer’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 Certification of Disclosure in Issuers' Annual and Interim Filings, for the issuer.

5.

Design: Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer's other certifying officer and I have, as at the end of the period covered by the interim filings

(a)

designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that

(i)

material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and

(ii)

information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and

(b)

designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer’s GAAP.

5.1

Control framework: The control framework the issuer's other certifying officer and I used to design the issuer's ICFR is the Committee of Sponsoring Organizations of the Treadway Commission (COSO) (1992) and the Control Objectives for Information and Related Technologies (COBIT).

5.2

ICFR – material weakness relating to design: N/A.

5.3

Limitation on scope of design: N/A.

6.

Reporting changes in ICFR: The issuer has disclosed in its interim MD&A any change in the issuer’s ICFR that occurred during the period beginning on July 1, 2024 and ended on September 30, 2024 that has materially affected, or is reasonably likely to materially affect, the issuer’s ICFR.

Date: October 30, 2024

By:

/s/ Kevin A Neveu

Name: Kevin A. Neveu

Title: President and Chief Executive Officer

Exhibit 31.2

FORM 52-109F2

CERTIFICATION OF INTERIM FILINGS

I, Carey T. Ford, Chief Financial Officer of Precision Drilling Corporation, certify the following:

1.

Review: I have reviewed the interim financial report and interim MD&A (together, the "interim filings") of Precision Drilling Corporation (the "issuer"), for the interim period ended September 30, 2024.

2.

No misrepresentations: Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings.

3.

Fair presentation: Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.

4.

Responsibility: The issuer’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 Certification of Disclosure in Issuers' Annual and Interim Filings, for the issuer.

5.

Design: Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer's other certifying officer and I have, as at the end of the period covered by the interim filings

(a)

designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that

(i)

material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and

(ii)

information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and

(b)

designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer’s GAAP.

5.1

Control framework: The control framework the issuer's other certifying officer and I used to design the issuer's ICFR is the Committee of Sponsoring Organizations of the Treadway Commission (COSO) (1992) and the Control Objectives for Information and Related Technologies (COBIT).

5.2

ICFR – material weakness relating to design: N/A.

5.3

Limitation on scope of design: N/A.

6.

Reporting changes in ICFR: The issuer has disclosed in its interim MD&A any change in the issuer’s ICFR that occurred during the period beginning on July 1, 2024 and ended on September 30, 2024 that has materially affected, or is reasonably likely to materially affect, the issuer’s ICFR.

Date: October 30, 2024

By:

/s/ Carey T. Ford

Name: Carey T. Ford

Title: Chief Financial Officer

Exhibit 99.1

PRECISION DRILLING CORPORATION

Third Quarter Report for the three and nine months ended September 30, 2024 and 2023

This report contains “forward-looking information and statements” within the meaning of applicable securities laws. For a full disclosure of the forward-looking information and statements and the risks to which they are subject, see the “Cautionary Statement Regarding Forward-Looking Information and Statements” later in this report. This report contains references to certain Financial Measures and Ratios, including Adjusted EBITDA (earnings before income taxes, loss (gain) on investments and other assets, gain on repurchase of unsecured senior notes, finance charges, foreign exchange, gain on asset disposals and depreciation and amortization), Funds Provided by (Used in) Operations, Net Capital Spending, Working Capital and Total Long-term Financial Liabilities. These terms do not have standardized meanings prescribed under International Financial Reporting Standards (IFRS) Accounting Standards and may not be comparable to similar measures used by other companies. See “Financial Measures and Ratios” later in this report.

Precision Drilling Corporation ("Precision" or the "Company") delivered strong third quarter financial results, demonstrating the resilience of the business and its robust cash flow potential. Year to date, Precision has already achieved the low end of its debt reduction target range and is well on track to allocate 25% to 35% of its free cash flow to share buybacks in 2024.

Financial Highlights

·

Revenue was $477 million and exceeded the $447 million realized in the third quarter of 2023 as activity increased in Canada and internationally, which more than offset lower activity in the U.S.

·

Adjusted EBITDA⁽¹⁾ was $142 million, including a share-based compensation recovery of $0.2 million. In 2023, third quarter Adjusted EBITDA was $115 million and included share-based compensation charges of $31 million.

·

Net earnings was $39 million or $2.77 per share, nearly doubling the $20 million or $1.45 per share in 2023.

·

Completion and Production Services revenue increased 27% over the same period last year to $73 million, while Adjusted EBITDA rose 40% to $20 million, reflecting the successful integration of the CWC Energy Services (CWC) acquisition in late 2023.

·

Internationally, revenue increased 21% over the third quarter of last year as the Company realized US$35 million of contract drilling revenue versus US$29 million in 2023. Revenue for the third quarter of 2024 was negatively impacted by fewer rig moves and planned rig recertifications that accounted for 44 non-billable utilization days.

·

Debt reduction during the quarter was $49 million and total $152 million year to date. Share repurchases during the quarter were $17 million and total $50 million year to date.

·

Increased our 2024 planned capital expenditures from $195 million to $210 million to fund multiple contracted rig upgrades and the strategic purchase of drill pipe for use in 2025.

Operational Highlights

·

Canada's activity increased 25%, averaging 72 active drilling rigs versus 57 in the third quarter of 2023. Our Super Triple and Super Single rigs are in high demand and approaching full utilization.

·

Canadian revenue per utilization day was $32,325 and comparable to the $32,224 in the same period last year.

·

U.S. activity averaged 35 drilling rigs compared to 41 for the third quarter of 2023.

·

U.S. revenue per utilization day was US$32,949 versus US$35,135 in the same quarter last year.

·

International activity increased 33% compared to the third quarter of 2023, with eight drilling rigs fully contracted this year following rig reactivations in 2023. International revenue per utilization day was US$47,223 compared to US$51,570 in the third quarter of 2023 due to fewer rig moves and planned rig recertifications completed in 2024.

·

Service rig operating hours increased 34% over the same quarter last year totaling 62,835 hours driven by the CWC acquisition.

·

Formed a strategic Joint Partnership (Partnership) with Indigenous partners to provide well servicing operations in northeast British Columbia.

(1)

See “FINANCIAL MEASURES AND RATIOS."

1

SELECT FINANCIAL AND OPERATING INFORMATION

Financial Highlights

	For the three months ended September 30,									For the nine months ended September 30,
(Stated in thousands of Canadian dollars, except per share amounts)	2024			2023			% Change			2024			2023			% Change
Revenue		477,155			446,754			6.8			1,434,157			1,430,983			0.2
Adjusted EBITDA⁽¹⁾		142,425			114,575			24.3			400,695			459,887			(12.9	)
Net earnings		39,183			19,792			98.0			96,400			142,522			(32.4	)
Cash provided by operations		79,674			88,500			(10.0	)		319,292			330,316			(3.3	)
Funds provided by operations⁽¹⁾		113,322			91,608			23.7			342,837			388,220			(11.7	)

Cash used in investing activities		38,852			34,278			13.3			141,032			157,157			(10.3	)
Capital spending by spend category⁽¹⁾
Expansion and upgrade		7,709			13,479			(42.8	)		30,501			39,439			(22.7	)
Maintenance and infrastructure		56,139			38,914			44.3			127,297			108,463			17.4
Proceeds on sale		(5,647	)		(6,698	)		(15.7	)		(21,825	)		(20,724	)		5.3
Net capital spending⁽¹⁾		58,201			45,695			27.4			135,973			127,178			6.9

Net earnings per share:
Basic		2.77			1.45			91.0			6.74			10.45			(35.5	)
Diluted		2.31			1.45			59.3			6.73			9.84			(31.6	)
Weighted average shares outstanding:
Basic		14,142			13,607			3.9			14,312			13,643			4.9
Diluted		14,890			13,610			9.4			14,317			14,858			(3.6	)

(1)

See “FINANCIAL MEASURES AND RATIOS.”

Operating Highlights

	For the three months ended September 30,							For the nine months ended September 30,
	2024		2023		% Change			2024		2023		% Change
Contract drilling rig fleet		214		224		(4.5	)		214		224		(4.5	)
Drilling rig utilization days:
U.S.		3,196		3,815		(16.2	)		9,885		13,823		(28.5	)
Canada		6,586		5,284		24.6			17,667		15,247		15.9
International		736		554		32.9			2,192		1,439		52.3
Revenue per utilization day:
U.S. (US$)		32,949		35,135		(6.2	)		33,011		35,216		(6.3	)
Canada (Cdn$)		32,325		32,224		0.3			34,497		32,583		5.9
International (US$)		47,223		51,570		(8.4	)		51,761		51,306		0.9
Operating costs per utilization day:
U.S. (US$)		22,207		21,655		2.5			22,113		20,217		9.4
Canada (Cdn$)		19,448		18,311		6.2			20,196		19,239		5.0

Service rig fleet		165		121		36.4			165		121		36.4
Service rig operating hours		62,835		46,894		34.0			194,390		144,944		34.1

Drilling Activity

	Average for the quarter ended 2023								Average for the quarter ended 2024
	Mar. 31		June 30		Sept. 30		Dec. 31		Mar. 31		June 30		Sept. 30
Average Precision active rig count⁽¹⁾:
U.S.		60		51		41		45		38		36		35
Canada		69		42		57		64		73		49		72
International		5		5		6		8		8		8		8
Total		134		98		104		117		119		93		115

(1)

Average number of drilling rigs working or moving.

Financial Position

(Stated in thousands of Canadian dollars, except ratios)	September 30, 2024		December 31, 2023⁽²⁾
Working capital⁽¹⁾		166,473		136,872
Cash		24,304		54,182
Long-term debt		787,008		914,830
Total long-term financial liabilities⁽¹⁾		858,765		995,849
Total assets		2,887,996		3,019,035
Long-term debt to long-term debt plus equity ratio ⁽¹⁾		0.32		0.37

(1)

See “FINANCIAL MEASURES AND RATIOS.”

(2)

Comparative period figures were restated due to a change in accounting policy. See "CHANGE IN ACCOUNTING POLICY."

2

Summary for the three months ended September 30, 2024:

·

Revenue increased to $477 million compared with $447 million in the third quarter of 2023 as a result of higher Canadian and international activity, partially offset by lower U.S. activity, day rates and lower idle but contract rig revenue.

·

Adjusted EBITDA was $142 million as compared with $115 million in 2023, primarily due to increased Canadian and international results and lower share-based compensation. Please refer to “Other Items” later in this report for additional information on share-based compensation.

·

Adjusted EBITDA as a percentage of revenue was 30% as compared with 26% in 2023.

·

Generated cash from operations of $80 million, reduced debt by $49 million, repurchased $17 million of shares, and ended the quarter with $24 million of cash and more than $500 million of available liquidity.

·

Revenue per utilization day, excluding the impact of idle but contracted rigs was US$32,949 compared with US$33,543 in 2023, a decrease of 2%. Sequentially, revenue per utilization day, excluding idle but contracted rigs, was largely consistent with the second quarter of 2024. U.S. revenue per utilization day was US$32,949 compared with US$35,135 in 2023. The decrease was primarily the result of lower fleet average day rates and idle but contracted rig revenue, partially offset by higher recoverable costs. We did not recognize revenue from idle but contracted rigs in the quarter as compared with US$6 million in 2023.

·

U.S. operating costs per utilization day increased to US$22,207 compared with US$21,655 in 2023. The increase is mainly due to higher recoverable costs and fixed costs being spread over fewer activity days, partially offset by lower repairs and maintenance. Sequentially, operating costs per utilization day were largely consistent with the second quarter of 2024.

·

Canadian revenue per utilization day was $32,325, largely consistent with the $32,224 realized in 2023. Sequentially, revenue per utilization day decreased $3,750 due to our rig mix, partially offset by higher fleet-wide average day rates.

·

Canadian operating costs per utilization day increased to $19,448, compared with $18,311 in 2023, resulting from higher repairs and maintenance and rig reactivation costs. Sequentially, daily operating costs decreased $2,204 due to lower labour expenses due to rig mix, recoverable expenses and repairs and maintenance.

·

Internationally, third quarter revenue increased 21% over 2023 as we realized revenue of US$35 million versus US$29 million in the prior year. Our higher revenue was primarily the result of a 33% increase in activity, partially offset by lower average revenue per utilization day. International revenue per utilization day was US$47,223 compared with US$51,570 in 2023 due to fewer rig moves and planned rig recertifications that accounted for 44 non-billable utilization days.

·

Completion and Production Services revenue was $73 million, an increase of $16 million from 2023, as our third quarter service rig operating hours increased 34%.

·

General and administrative expenses were $23 million as compared with $44 million in 2023 primarily due to lower share-based compensation charges.

·

Net finance charges were $17 million, a decrease of $3 million compared with 2023 as a result of lower interest expense on our outstanding debt balance.

·

Capital expenditures were $64 million compared with $52 million in 2023 and by spend category included $8 million for expansion and upgrades and $56 million for the maintenance of existing assets, infrastructure, and intangible assets.

·

Increased expected capital spending in 2024 to $210 million, an increase of $15 million, due to the strategic purchase of drill pipe before new import tariffs take effect and additional customer-backed upgrades.

·

Income tax expense for the quarter was $14 million as compared with $8 million in 2023. During the third quarter, we continue to not recognize deferred tax assets on certain international operating losses.

3

·

Reduced debt by $49 million from the redemption of US$33 million of 2026 unsecured senior notes and US$3 million repayment of our U.S. Real Estate Credit Facility.

·

Renewed our Normal Course Issuer Bid (NCIB) and repurchased $17 million of common shares during the third quarter.

Summary for the nine months ended September 30, 2024:

·

Revenue for the first nine months of 2024 was $1,434 million, consistent 2023.

·

Adjusted EBITDA for the period was $401 million as compared with $460 million in 2023. Our lower Adjusted EBITDA was primarily attributed to decreased U.S. drilling results and higher share-based compensation, partially offset by the strengthening of Canadian and international results.

·

Cash provided by operations was $319 million as compared with $330 million in 2023. Funds provided by operations were $343 million, a decrease of $45 million from the comparative period.

·

General and administrative costs were $97 million, an increase of $14 million from 2023 primarily due to higher share-based compensation charges.

·

Net finance charges were $53 million, $10 million lower than 2023 due to our lower interest expense on our outstanding debt balance.

·

Capital expenditures were $158 million in 2024, an increase of $10 million from 2023. Capital spending by spend category included $31 million for expansion and upgrades and $127 million for the maintenance of existing assets, infrastructure, and intangible assets.

·

Reduced debt by $152 million from the redemption of US$89 million of 2026 unsecured senior notes and $31 million repayment of our Canadian and U.S. Real Estate Credit Facilities.

·

Repurchased $50 million of common shares under our NCIB.

STRATEGY

Precision’s vision is to be globally recognized as the High Performance, High Value provider of land drilling services. Our strategic priorities for 2024 are focused on increasing our capital returns to shareholders by delivering best-in-class service and generating free cash flow.

Precision’s 2024 strategic priorities and the progress made during the third quarter are as follows:

1.

Concentrate organizational efforts on leveraging our scale and generating free cash flow.

·

Generated cash from operations of $80 million, bringing our year to date total to $319 million.

·

Increased utilization of our Super Single and Double rigs in the third quarter, driving Canadian drilling activity up 25% year over year.

·

Increased our third quarter Completion and Production Services operating hours and Adjusted EBITDA 34% and 40%, respectively, year over year. Achieved our $20 million annual synergies target from the CWC acquisition, which closed in November 2023.

·

Internationally, we realized US$35 million of contract drilling revenue versus US$29 million in 2023. Revenue for the third quarter of 2024 was negatively impacted by fewer rig moves and planned rig recertifications that accounted for 44 non-billable utilization days.

2.

Reduce debt by between $150 million and $200 million and allocate 25% to 35% of free cash flow before debt repayments for share repurchases.

·

Reduced debt by redeeming US$33 million of our 2026 unsecured senior notes and repaying US$3 million of our U.S. Real Estate Credit Facility. For the first nine months of the year, we have reduced debt by $152 million and already achieved the low end of our debt repayment target range.

4

·

Returned $17 million of capital to shareholders through share repurchases. Year to date we allocated $50 million of our free cash flow to share buybacks, which represents over 25% of free cash flow for the first nine months of the year and within our annual target range of 25% to 35%.

·

Remain firmly committed to our long-term debt reduction target of $600 million between 2022 and 2026 ($410 million achieved as of September 30, 2024), while moving direct shareholder capital returns towards 50% of free cash flow.

3.

Continue to deliver operational excellence in drilling and service rig operations to strengthen our competitive position and extend market penetration of our Alpha^TM and EverGreen^TM products.

·

Increased our Canadian drilling rig utilization days and well servicing rig operating hours over the third quarter of 2023, maintaining our position as the leading provider of high-quality and reliable services in Canada.

·

Nearly doubled our EverGreen^TM revenue from the third quarter of 2023.

·

Continued to expand our EverGreen^TM product offering on our Super Single rigs with hydrogen injection systems. EverGreenHydrogen^TMreduces diesel consumption resulting in lower operating costs and greenhouse gas emissions for our customers.

OUTLOOK

The long-term outlook for global energy demand remains positive with rising demand for all types of energy including oil and natural gas driven by economic growth, increasing demand from third-world regions, and emerging energy sources of power demand. Oil prices are constructive, and producers remain disciplined with their production plans while geopolitical issues continue to threaten supply. In Canada, the recent commissioning of the Trans Mountain pipeline expansion and the startup of LNG Canada projected in 2025 are expected to provide significant tidewater access for Canadian crude oil and natural gas, supporting additional Canadian drilling activity. In the U.S., the next wave of LNG projects is expected to add approximately 11 bcf/d of export capacity from 2025 to 2028, supporting additional U.S. natural gas drilling activity. Coal retirements and a build-out of AI data centers could provide further support for natural gas drilling.

In Canada, we currently have 75 rigs operating and expect this activity level to continue until spring breakup, except for the traditional slowdown over Christmas. Our Canadian drilling activity continues to outpace 2023 due to increased heavy oil drilling activity and strong Montney activity driven by robust condensate demand and pricing. Since the startup of the Trans Mountain pipeline expansion in May, customer activity in heavy oil targeted areas has exceeded expectations, resulting in near full utilization of our Super Single fleet. Customers are benefiting from improved commodity pricing and a weak Canadian dollar. Our Super Triple fleet, the preferred rig for Montney drilling, is also nearly fully utilized and with the expected startup of LNG Canada in mid-2025, demand could exceed supply.

In recent years, the Canadian market has witnessed stronger second quarter drilling activity due to the higher percentage of wells drilled on pads in both the Montney and in heavy oil developments. Once a pad-equipped drilling rig is mobilized to site, it can walk from well to well and avoid spring break up road restrictions. We expect this higher activity trend to continue in the second quarter of 2025.

In the U.S., we currently have 35 rigs operating as drilling activity remains constrained by volatile commodity prices, customer consolidation and budget exhaustion. We view these headwinds as short-term in nature, which will continue to suppress activity for the remainder of the year and into 2025. However, looking further ahead, we expect that a new budget cycle, the next wave of Gulf Coast LNG export facilities, and new sources of domestic power demand should begin to stimulate drilling.

Internationally, we expect to have eight rigs running for the remainder of 2024, representing an approximate 40% increase in activity compared to 2023. All eight rigs are contracted through 2025 as well. We continue to bid our remaining idle rigs within the region and remain optimistic about our ability to secure additional rig activations.

As the premier well service provider in Canada, the outlook for this business remains positive. We expect the Trans Mountain pipeline expansion and LNG Canada to drive more service-related activity, while increased regulatory spending requirements are expected to result in more abandonment work. Customer demand should remain strong, and with continued labor constraints, we expect firm pricing into the foreseeable future.

We believe cost inflation is largely behind us and will continue to look for opportunities to lower costs.

5

Contracts

The following chart outlines the average number of drilling rigs under term contract by quarter as at October 29, 2024. For those quarters ending after September 30, 2024, this chart represents the minimum number of term contracts from which we will earn revenue. We expect the actual number of contracted rigs to vary in future periods as we sign additional term contracts.

As at October 29, 2024	Average for the quarter ended 2023								Average		Average for the quarter ended 2024								Average
	Mar. 31		June 30		Sept. 30		Dec. 31		2023		Mar. 31		June 30		Sept. 30		Dec. 31		2024
Average rigs under term contract:
U.S.		40		37		32		28		34		20		17		17		16		18
Canada		19		23		23		23		22		24		22		23		24		23
International		4		5		7		7		6		8		8		8		8		8
Total		63		65		62		58		62		52		47		48		48		49

Seasonality

In Canada, because of the seasonal nature of well site access, term contracted rigs normally generate 250 utilization days, with some pad drilling rigs trending toward 350 days. Accordingly, our anticipated Canadian rigs under term contract may fluctuate as customers complete their commitments earlier than projected. In most regions in the U.S. and internationally, term contracts normally generate 365 utilization days per year. In accordance with the seasonality of our business and varying levels of rig count, we generally experience builds of working capital in the first and third quarters and releases of working capital in the second and fourth quarters.

Capital Spending and Free Cash Flow Allocation

Capital spending in 2024 is expected to be $210 million, an increase of $15 million from the previous quarter. Our increased capital spending is comprised of the strategic purchase of drill pipe before new import tariffs take effect and additional customer-backed upgrades. Capital spending by spend category is expected to include $164 million for maintenance, infrastructure, and intangibles and $46 million for expansion and upgrades. We expect to spend $189 million in the Contract Drilling Services segment, $19 million in the Completion and Production Services segment and $2 million in the Corporate segment. At September 30, 2024, Precision had capital commitments of $136 million with payments expected through 2026. We remain committed to our debt reduction plans and in 2024 expect to reduce debt by $150 million to $200 million and allocate 25% to 35% of free cash flow before debt repayments for share repurchases, while remaining committed to achieving a sustained Net Debt to Adjusted EBITDA ratio⁽¹⁾ of below 1.0 times by the end of 2025.

(1)

See “FINANCIAL MEASURES AND RATIOS.”

Commodity Prices

Third quarter average West Texas Intermediate and Western Canadian Select oil prices decreased 8% and 10%, respectively, as compared with 2023 while the average Henry Hub and AECO natural gas prices declined 17% and 73%, respectively.

	For the three months ended September 30,				Year ended December 31,
	2024		2023		2023
Average oil and natural gas prices
Oil
West Texas Intermediate (per barrel) (US$)		75.20		82.18		77.62
Western Canadian Select (per barrel) (US$)		62.30		69.39		58.96
Natural gas
United States
Henry Hub (per MMBtu) (US$)		2.22		2.66		2.67
Canada
AECO (per MMBtu) (CDN$)		0.71		2.61		2.64

SEGMENTED FINANCIAL RESULTS

Precision’s operations are reported in two segments: Contract Drilling Services, which includes our drilling rig, oilfield supply and manufacturing divisions; and Completion and Production Services, which includes our service rig, rental and camp and catering divisions.

6

	For the three months ended September 30,									For the nine months ended September 30,
(Stated in thousands of Canadian dollars)	2024			2023			% Change			2024			2023			% Change
Revenue:
Contract Drilling Services		406,155			390,728			3.9			1,215,125			1,257,762			(3.4	)
Completion and Production Services		73,074			57,573			26.9			225,987			178,257			26.8
Inter-segment eliminations		(2,074	)		(1,547	)		34.1			(6,955	)		(5,036	)		38.1
		477,155			446,754			6.8			1,434,157			1,430,983			0.2
Adjusted EBITDA:⁽¹⁾
Contract Drilling Services		133,235			131,701			1.2			406,662			468,302			(13.2	)
Completion and Production Services		19,741			14,118			39.8			50,786			39,031			30.1
Corporate and Other		(10,551	)		(31,244	)		(66.2	)		(56,753	)		(47,446	)		19.6
		142,425			114,575			24.3			400,695			459,887			(12.9	)

(1)

See “FINANCIAL MEASURES AND RATIOS.”

SEGMENT REVIEW OF CONTRACT DRILLING SERVICES

	For the three months ended September 30,									For the nine months ended September 30,
(Stated in thousands of Canadian dollars, except where noted)	2024			2023			% Change			2024			2023			% Change
Revenue		406,155			390,728			3.9			1,215,125			1,257,762			(3.4	)
Expenses:
Operating		262,933			247,937			6.0			776,210			759,750			2.2
General and administrative		9,987			11,090			(9.9	)		32,253			29,710			8.6
Adjusted EBITDA⁽¹⁾		133,235			131,701			1.2			406,662			468,302			(13.2	)
Adjusted EBITDA as a percentage of revenue⁽¹⁾		32.8	%		33.7	%					33.5	%		37.2	%

(1)

See “FINANCIAL MEASURES AND RATIOS.”

United States onshore drilling statistics:⁽¹⁾	2024				2023
	Precision		Industry⁽²⁾		Precision		Industry⁽²⁾
Average number of active land rigs for quarters ended:
March 31		38		602		60		744
June 30		36		583		51		700
September 30		35		565		41		631
Year to date average		36		583		51		692

(1)

United States lower 48 operations only.

(2)

Baker Hughes rig counts.

Canadian onshore drilling statistics:⁽¹⁾	2024				2023
	Precision		Industry⁽²⁾		Precision		Industry⁽²⁾
Average number of active land rigs for quarters ended:
March 31		73		208		69		221
June 30		49		134		42		117
September 30		72		207		57		188
Year to date average		65		183		56		175

(1)

Canadian operations only.

(2)

Baker Hughes rig counts.

Revenue from Contract Drilling Services was $406 million, 4% higher than 2023, while Adjusted EBITDA increased by 1% to $133 million. The increase in revenue and Adjusted EBITDA was primarily due to higher Canadian and international activity, partially offset by lower U.S. activity and day rates.

Drilling rig utilization days (drilling days plus move days) in the U.S. were 3,196, 16% lower than 2023. Drilling rig utilization days in Canada were 6,586, 25% higher than 2023. Drilling rig utilization days in our international business were 736, 33% higher than 2023 as multiple rigs within our international rig fleet returned to work under renewed long-term contracts.

Revenue per utilization day in the U.S. decreased 6% from 2023 and was primarily the result of lower fleet average day rates and idle but contracted rig revenue, partially offset by higher recoverable costs. We did not recognize revenue from idle but contracted rigs in the quarter as compared with US$6 million in 2023. Drilling rig revenue per utilization day in Canada was largely consistent with 2023. Our international revenue per utilization day for the quarter was 8% lower than 2023 due to rig moves and planned rig recertifications completed in 2024 that accounted for 44 non-billable utilization days.

7

In the U.S., 50% of utilization days were generated from rigs under term contract as compared with 63% in 2023. In Canada, 32% of our utilization days were generated from rigs under term contract, compared with 37% in 2023.

U.S. operating costs per utilization day increased 3% from 2023 and was primarily due to higher recoverable costs and fixed costs being spread over fewer activity days, partially offset by lower repairs and maintenance. Our Canadian operating costs per utilization day increased 6% as compared with 2023 and was due to higher repairs and maintenance and rig reactivation costs.

Our general and administrative expenses decreased $1 million as compared with 2023 primarily as a result of lower share-based compensation.

SEGMENT REVIEW OF COMPLETION AND PRODUCTION SERVICES

	For the three months ended September 30,								For the nine months ended September 30,
(Stated in thousands of Canadian dollars, except where noted)	2024			2023			% Change		2024			2023
Revenue		73,074			57,573			26.9		225,987			178,257		26.8
Expenses:
Operating		50,608			41,612			21.6		167,128			133,325		25.4
General and administrative		2,725			1,843			47.9		8,073			5,901		36.8
Adjusted EBITDA⁽¹⁾		19,741			14,118			39.8		50,786			39,031		30.1
Adjusted EBITDA as a percentage of revenue⁽¹⁾		27.0	%		24.5	%				22.5	%		21.9	%
Well servicing statistics:
Number of service rigs (end of period)		165			121			36.4		165			121		36.4
Service rig operating hours		62,835			46,894			34.0		194,390			144,944		34.1
Service rig operating hour utilization		41	%		42	%				43	%		44	%

(1)

See “FINANCIAL MEASURES AND RATIOS.”

Completion and Production Services revenue increased to $73 million, an increase of $16 million from 2023. Our increased revenue was due to higher service activity as our third quarter service rig operating hours increased 34% compared with 2023. Completion and Production Services generated 4% of its revenue from U.S. operations, compared with 7% in 2023.

Operating costs as a percentage of revenue were 69% as compared with 72% in 2023. The decreased percentage in 2024 was the result of our operating efficiency. As compared to 2023, our third quarter general and administrative expenses increased 48%, primarily due to higher overhead charges associated with the CWC acquisition.

Adjusted EBITDA was $20 million as compared with $14 million in 2023. Our higher Adjusted EBITDA in 2024 was due to increased activity, partially offset by higher overhead charges.

SEGMENT REVIEW OF CORPORATE AND OTHER

Our Corporate and Other segment provides support functions to our operating segments. The Corporate and Other segment had negative Adjusted EBITDA of $11 million as compared with negative Adjusted EBITDA of $31 million in 2023. Our improved current quarter Adjusted EBITDA was impacted by lower share-based compensation.

OTHER ITEMS

Share-based Incentive Compensation Plans

We have several cash and equity-settled share-based incentive plans for non-management directors, officers, and other eligible employees. Our accounting policies for each share-based incentive plan can be found in our 2023 Annual Report.

8

A summary of expense amounts under these plans during the reporting periods are as follows:

	For the three months ended September 30,					For the nine months ended September 30,
(Stated in thousands of Canadian dollars)	2024			2023		2024		2023
Cash settled share-based incentive plans		(1,626	)		30,105		28,810		20,091
Equity settled share-based incentive plans		1,440			701		3,517		1,834
Total share-based incentive compensation plan expense		(186	)		30,806		32,327		21,925

Allocated:
Operating		221			7,692		8,159		6,732
General and Administrative		(407	)		23,114		24,168		15,193
		(186	)		30,806		32,327		21,925

Cash settled share-based compensation recovery for the quarter was $2 million as compared with an expense of $30 million in 2023. The recovery in 2024 was primarily due to our lower share price performance as compared with 2023.

During the first quarters of 2023 and 2024, we issued Executive Restricted Share Units (Executive RSUs) to certain senior executives. Accordingly, our equity-settled share-based compensation expense for the quarter was $1 million as compared with $1 million in 2023.

As at September 30, 2024, the majority of our share-based compensation plans were classified as cash-settled and will be impacted by changes in our share price. Although accounted for as cash-settled, Precision retains the ability to settle certain vested units in common shares at its discretion.

Normal Course Issuer Bid

During the third quarter of 2024, we renewed our Normal Course Issuer Bid. Pursuant to the NCIB, we are authorized to repurchase and cancel up to a maximum of 1,359,108 common shares. The NCIB will terminate no later than September 18, 2025. Prior to the renewal of the NCIB, we repurchased and cancelled 543,778 common shares for $50 million. In addition, we recorded $1 million of share buyback tax in 2024.

LIQUIDITY AND CAPITAL RESOURCES

The oilfield services business is inherently cyclical in nature. To manage this, we focus on maintaining a strong balance sheet in order to have the financial flexibility to manage our growth and cash flow regardless of where we are in the business cycle. We maintain a variable operating cost structure so we can be responsive to changes in demand.

Our maintenance capital expenditures are tightly governed and highly responsive to activity levels with additional cost savings leverage provided through our internal manufacturing and supply divisions. Term contracts on expansion capital provide more certainty of future revenues and return on our capital investments.

Liquidity

Amount	Availability	Used for	Maturity
Senior Credit Facility (secured)
US$375 million (extendible, revolving term credit facility with US$375 million accordion feature)	Nil drawn and US$55 million in outstanding letters of credit	General corporate purposes	June 28, 2027
Real estate credit facilities (secured)
US$5 million	Fully drawn	General corporate purposes	November 19, 2025
Operating facilities (secured)
$40 million	Undrawn, except $8 million in outstanding letters of credit	Letters of credit and general corporate purposes
US$15 million	Undrawn	Short-term working capital requirements
Demand letter of credit facility (secured)
US$40 million	Undrawn, except US$28 million in outstanding letters of credit	Letters of credit
Unsecured senior notes (unsecured)
US$184 million – 7.125%	Fully drawn	Debt redemption and repurchases	January 15, 2026
US$400 million – 6.875%	Fully drawn	Debt redemption and repurchases	January 15, 2029

In 2024, we reduced debt by $152 million comprised of US$89 million of 2026 unsecured senior note redemptions and the repayment of our Canadian and U.S. Real Estate Credit Facilities for $31 million. As at September 30, 2024, we had $797 million outstanding under our Senior Credit Facility, Real Estate Credit Facility and unsecured senior notes as compared with $929 million at December 31, 2023. The current blended cash interest cost of our debt is approximately 7.0%.

9

Senior Credit Facility

On June 28, 2024, we extended our Senior Credit Facility’s maturity date to June 28, 2027, revised the available borrowing capacity to US$375 million and amended certain terms of the facility. Our Senior Credit Facility requires that we comply with certain covenants including a leverage ratio of consolidated senior debt to consolidated Covenant EBITDA of less than 2.5:1. For purposes of calculating the leverage ratio, consolidated senior debt only includes secured indebtedness. The Senior Credit Facility limits the redemption and repurchase of junior debt subject to a pro forma senior net leverage covenant test of less than or equal to 1.75:1.

Unsecured Senior Notes

The unsecured senior notes require that we comply with certain restrictive and financial covenants, including an incurrence based consolidated interest coverage ratio test of consolidated cash flow, as defined in the senior note agreements, to consolidated interest expense of greater than 2.0:1 for the most recent four consecutive fiscal quarters. In the event our consolidated interest coverage ratio is less than 2.0:1 for the most recent four consecutive fiscal quarters, the unsecured senior notes restrict our ability to incur additional indebtedness.

For further information, please see the unsecured senior note indentures which are available on SEDAR+ and EDGAR.

Covenants

As at September 30, 2024, we were in compliance with the covenants of our Senior Credit Facility and Real Estate Credit Facility.

	Covenant		At September 30, 2024
Senior Credit Facility
Consolidated senior debt to consolidated covenant EBITDA⁽¹⁾		<2.50		0.02
Consolidated covenant EBITDA to consolidated interest expense		>2.50		7.66
Real Estate Credit Facilities
Consolidated covenant EBITDA to consolidated interest expense		>2.50		7.66

(1)

For purposes of calculating the leverage ratio consolidated senior debt only includes secured indebtedness.

Impact of foreign exchange rates

The following table summarizes the average and closing Canada-U.S. foreign exchanges rates.

	For the three months ended September 30,				For the nine months ended September 30,				At December 31,
	2024		2023		2024		2023		2023
Canada-U.S. foreign exchange rates
Average		1.36		1.34		1.36		1.35		—
Closing		1.35		1.36		1.35		1.36		1.32

Hedge of investments in foreign operations

We utilize foreign currency long-term debt to hedge our exposure to changes in the carrying value of our net investment in certain foreign operations as a result of changes in foreign exchange rates.

We have designated our U.S. dollar-denominated long-term debt as a net investment hedge in our U.S. operations and other foreign operations that have a U.S. dollar functional currency. To be accounted for as a hedge, the foreign currency denominated long-term debt must be designated and documented as such and must be effective at inception and on an ongoing basis. We recognize the effective amount of this hedge (net of tax) in other comprehensive income. We recognize ineffective amounts (if any) in net earnings.

10

QUARTERLY FINANCIAL SUMMARY

(Stated in thousands of Canadian dollars, except per share amounts)	2023		2024
Quarters ended	December 31		March 31		June 30		September 30
Revenue		506,871		527,788		429,214		477,155
Adjusted EBITDA⁽¹⁾		151,231		143,149		115,121		142,425
Net earnings		146,722		36,516		20,701		39,183
Net earnings per basic share		10.42		2.53		1.44		2.77
Net earnings per diluted share		9.81		2.53		1.44		2.31
Funds provided by operations⁽¹⁾		145,189		117,765		111,750		113,322
Cash provided by operations		170,255		65,543		174,075		79,674

(Stated in thousands of Canadian dollars, except per share amounts)	2022		2023
Quarters ended	December 31		March 31		June 30		September 30
Revenue		510,504		558,607		425,622		446,754
Adjusted EBITDA⁽¹⁾		91,090		203,219		142,093		114,575
Net earnings		3,483		95,830		26,900		19,792
Net earnings per basic share		0.27		7.02		1.97		1.45
Net earnings per diluted share		0.27		5.57		1.63		1.45
Funds provided by operations⁽¹⁾		111,339		159,653		136,959		91,608
Cash provided by operations		159,082		28,356		213,460		88,500

(1)

See “FINANCIAL MEASURES AND RATIOS.”

CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES

Because of the nature of our business, we are required to make judgements and estimates in preparing our Condensed Consolidated Interim Financial Statements that could materially affect the amounts recognized. Our judgements and estimates are based on our past experiences and assumptions we believe are reasonable in the circumstances. The critical judgements and estimates used in preparing the Condensed Consolidated Interim Financial Statements are described in our 2023 Annual Report.

EVALUATION OF CONTROLS AND PROCEDURES

Based on their evaluation as at September 30, 2024, Precision’s Chief Executive Officer and Chief Financial Officer concluded that the Corporation’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the United States Securities Exchange Act of 1934, as amended (the Exchange Act)), are effective to ensure that information required to be disclosed by the Corporation in reports that are filed or submitted to Canadian and U.S. securities authorities is recorded, processed, summarized and reported within the time periods specified in Canadian and U.S. securities laws. In addition, as at September 30, 2024, there were no changes in the internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) that occurred during the three months ended September 30, 2024 that have materially affected, or are reasonably likely to materially affect, the Corporation’s internal control over financial reporting. Management will continue to periodically evaluate the Corporation’s disclosure controls and procedures and internal control over financial reporting and will make any modifications from time to time as deemed necessary.

Based on their inherent limitations, disclosure controls and procedures and internal control over financial reporting may not prevent or detect misstatements, and even those controls determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation.

11

FINANCIAL MEASURES AND RATIOS

Non-GAAP Financial Measures

We reference certain additional Non-Generally Accepted Accounting Principles (Non-GAAP) measures that are not defined terms under IFRS Accounting Standards to assess performance because we believe they provide useful supplemental information to investors.

*Adjusted EBITDA*		We believe Adjusted EBITDA (earnings before income taxes, loss (gain) on investments and other assets, gain on repurchase of unsecured senior notes, finance charges, foreign exchange, gain on asset disposals and depreciation and amortization), as reported in our Condensed Interim Consolidated Statements of Net Earnings and our reportable operating segment disclosures, is a useful measure because it gives an indication of the results from our principal business activities prior to consideration of how our activities are financed and the impact of foreign exchange, taxation and depreciation and amortization charges. The most directly comparable financial measure is net earnings.

	For the three months ended September 30,						For the nine months ended September 30,
(Stated in thousands of Canadian dollars)	2024			2023			2024			2023
Adjusted EBITDA by segment:
Contract Drilling Services		133,235			131,701			406,662			468,302
Completion and Production Services		19,741			14,118			50,786			39,031
Corporate and Other		(10,551	)		(31,244	)		(56,753	)		(47,446	)
Adjusted EBITDA		142,425			114,575			400,695			459,887
Depreciation and amortization		75,073			73,192			227,104			218,823
Gain on asset disposals		(3,323	)		(2,438	)		(14,235	)		(15,586	)
Foreign exchange		849			363			772			(894	)
Finance charges		16,914			19,618			53,472			63,946
Gain on repurchase of unsecured notes		—			(37	)		—			(137	)
Loss (gain) on investments and other assets		(150	)		(3,813	)		(330	)		6,075
Incomes taxes		13,879			7,898			37,512			45,138
Net earnings		39,183			19,792			96,400			142,522

Funds Provided by (Used in) Operations

We believe funds provided by (used in) operations, as reported in our Condensed Interim Consolidated Statements of Cash Flows, is a useful measure because it provides an indication of the funds our principal business activities generate prior to consideration of working capital changes, which is primarily made up of highly liquid balances.

The most directly comparable financial measure is cash provided by (used in) operations.

Net Capital Spending

We believe net capital spending is a useful measure as it provides an indication of our primary investment activities.

The most directly comparable financial measure is cash provided by (used in) investing activities.

Net capital spending is calculated as follows:

	For the three months ended September 30,						For the nine months ended September 30,
(Stated in thousands of Canadian dollars)	2024			2023			2024			2023
Capital spending by spend category
Expansion and upgrade		7,709			13,479			30,501			39,439
Maintenance, infrastructure and intangibles		56,139			38,914			127,297			108,463
		63,848			52,393			157,798			147,902
Proceeds on sale of property, plant and equipment		(5,647	)		(6,698	)		(21,825	)		(20,724	)
Net capital spending		58,201			45,695			135,973			127,178
Business acquisitions		—			—			—			28,000
Proceeds from sale of investments and other assets		—			(10,013	)		(3,623	)		(10,013	)
Purchase of investments and other assets		7			3,211			7			5,282
Receipt of finance lease payments		(207	)		(64	)		(591	)		(64	)
Changes in non-cash working capital balances		(19,149	)		(4,551	)		9,266			6,774
Cash used in investing activities		38,852			34,278			141,032			157,157

12

Working Capital

We define working capital as current assets less current liabilities, as reported in our Condensed Interim Consolidated Statements of Financial Position.

Working capital is calculated as follows:

	September 30,		December 31,
(Stated in thousands of Canadian dollars)	2024		2023
Current assets		472,557		510,881
Current liabilities		306,084		374,009
Working capital		166,473		136,872

Total Long-term Financial Liabilities

We define total long-term financial liabilities as total non-current liabilities less deferred tax liabilities, as reported in our Condensed Interim Consolidated Statements of Financial Position.

Total long-term financial liabilities is calculated as follows:

	September 30,		December 31,
(Stated in thousands of Canadian dollars)	2024		2023
Total non-current liabilities		920,812		1,069,364
Deferred tax liabilities		62,047		73,515
Total long-term financial liabilities		858,765		995,849

Non-GAAP Ratios

We reference certain additional Non-GAAP ratios that are not defined terms under IFRS to assess performance because we believe they provide useful supplemental information to investors.

*Adjusted EBITDA % of Revenue*		We believe Adjusted EBITDA as a percentage of consolidated revenue, as reported in our Condensed Interim Consolidated Statements of Net Earnings, provides an indication of our profitability from our principal business activities prior to consideration of how our activities are financed and the impact of foreign exchange, taxation and depreciation and amortization charges.

*Long-term debt to long-term debt plus equity*		We believe that long-term debt (as reported in our Condensed Interim Consolidated Statements of Financial Position) to long-term debt plus equity (total shareholders’ equity as reported in our Condensed Interim Consolidated Statements of Financial Position) provides an indication of our debt leverage.

*Net Debt to Adjusted EBITDA*		We believe that the Net Debt (long-term debt less cash, as reported in our Condensed Interim Consolidated Statements of Financial Position) to Adjusted EBITDA ratio provides an indication of the number of years it would take for us to repay our debt obligations.
Supplementary Financial Measures

We reference certain supplementary financial measures that are not defined terms under IFRS to assess performance because we believe they provide useful supplemental information to investors.

*Capital Spending by Spend Category*		We provide additional disclosure to better depict the nature of our capital spending. Our capital spending is categorized as expansion and upgrade, maintenance and infrastructure, or intangibles.

13

CHANGE IN ACCOUNTING POLICY

Precision adopted Classification of Liabilities as Current or Non-current and Non-current Liabilities with Covenants - Amendments to IAS 1, as issued in 2020 and 2022. These amendments apply retrospectively for annual reporting periods beginning on or after January 1, 2024 and clarify requirements for determining whether a liability should be classified as current or non-current. Due to this change in accounting policy, there was a retrospective impact on the comparative Statement of Financial Position pertaining to the Corporation's Deferred Share Unit (DSU) plan for non-management directors which are redeemable in cash or for an equal number of common shares upon the director's retirement. In the case of a director retiring, the director's respective DSU liability would become payable and the Corporation would not have the right to defer settlement of the liability for at least twelve months. As such, the liability is impacted by the revised policy. The following changes were made to the Statement of Financial Position:

·

As at January 1, 2023, accounts payable and accrued liabilities increased by $12 million and non-current share-based compensation liability decreased by $12 million.

·

As at December 31, 2023, accounts payable and accrued liabilities increased by $8 million and non-current share-based compensation liability decreased by $8 million.

The Corporation's other liabilities were not impacted by the amendments. The change in accounting policy will also be reflected in the Corporation's consolidated financial statements as at and for the year ending December 31, 2024.

JOINT PARTNERSHIP

On September 26, 2024, Precision formed a strategic Partnership with two Indigenous partners to provide well servicing operations in northeast British Columbia. Precision contributed $4 million in assets to the Partnership. Precision holds a controlling interest in the Partnership and the portions of the net earnings and equity not attributable to Precision’s controlling interest are shown separately as Non-Controlling Interests (NCI) in the consolidated statements of net earnings and consolidated statements of financial position.

14

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION AND 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 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 statements").

In particular, forward-looking information and statements include, but are not limited to, the following:

·

our strategic priorities for 2024;

·

our capital expenditures, free cash flow allocation and debt reduction plans for 2024 through to 2026;

·

anticipated activity levels, demand for our drilling rigs, day rates and daily operating margins in 2024;

·

the average number of term contracts in place for 2024;

·

customer adoption of Alpha^TM technologies and EverGreen^TM suite of environmental solutions;

·

timing and amount of synergies realized from acquired drilling and well servicing assets;

·

potential commercial opportunities and rig contract renewals; and

·

our future debt reduction plans.

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:

·

our ability to react to customer spending plans as a result of changes in oil and natural gas prices;

·

the status of current negotiations with our customers and vendors;

·

customer focus on safety performance;

·

existing term contracts are neither renewed nor terminated prematurely;

·

our ability to deliver rigs to customers on a timely basis;

·

the impact of an increase/decrease in capital spending; 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 level of oil and natural gas exploration and development activities;

·

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 advantage;

·

shortages, delays and interruptions in the delivery of equipment supplies and other key inputs;

·

liquidity of the capital markets to fund customer drilling programs;

·

availability of cash flow, debt and equity sources to fund our capital and operating requirements, as needed;

·

the impact of weather and seasonal conditions on operations and facilities;

·

competitive operating risks inherent in contract drilling, well servicing and ancillary oilfield services;

·

ability to improve our rig technology to improve drilling efficiency;

·

general economic, market or business conditions;

·

the availability of qualified personnel and management;

·

a decline in our safety performance which could result in lower demand for our services;

·

changes in laws or regulations, including 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 natural 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 Information Form for the year ended December 31, 2023, which may be accessed on Precision’s SEDAR+ profile at www.sedarplus.ca or under Precision’s EDGAR profile at www.sec.gov. The forward-looking information and statements contained in this report 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 result of new information, future events or otherwise, except as required by law.

15

Exhibit 99.2

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED)

(Stated in thousands of Canadian dollars)	September 30, 2024			December 31, 2023			January 1, 2023
ASSETS				(see Note 2d)
Current assets:
Cash	$	24,304		$	54,182		$	21,587
Accounts receivable		401,652			421,427			413,925
Inventory		41,398			35,272			35,158
Assets held for sale (Note 11)		5,203			-			-
Total current assets		472,557			510,881			470,670
Non-current assets:
Income tax recoverable		696			682			1,602
Deferred tax assets		27,767			73,662			455
Property, plant and equipment		2,296,079			2,338,088			2,303,338
Intangibles		15,566			17,310			19,575
Right-of-use assets		63,708			63,438			60,032
Finance lease receivables		4,938			5,003			-
Investments and other assets		6,685			9,971			20,451
Total non-current assets		2,415,439			2,508,154			2,405,453
Total assets	$	2,887,996		$	3,019,035		$	2,876,123

LIABILITIES AND EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$	282,810		$	350,749		$	404,350
Income taxes payable		3,059			3,026			2,991
Current portion of lease obligations		19,263			17,386			12,698
Current portion of long-term debt (Note 5)		952			2,848			2,287
Total current liabilities		306,084			374,009			422,326

Non-current liabilities:
Share-based compensation (Note 7)		10,339			16,755			47,836
Provisions and other		7,408			7,140			7,538
Lease obligations		54,010			57,124			52,978
Long-term debt (Note 5)		787,008			914,830			1,085,970
Deferred tax liabilities		62,047			73,515			28,946
Total non-current liabilities		920,812			1,069,364			1,223,268
Equity:
Shareholders’ capital (Note 8)		2,337,079			2,365,129			2,299,533
Contributed surplus		76,656			75,086			72,555
Deficit		(915,629	)		(1,012,029	)		(1,301,273	)
Accumulated other comprehensive income		158,602			147,476			159,714
Total equity attributable to shareholders		1,656,708			1,575,662			1,230,529
Non-controlling interest (Note 12)		4,392			-			-
Total equity		1,661,100			1,575,662			1,230,529
Total liabilities and equity	$	2,887,996		$	3,019,035		$	2,876,123

See accompanying notes to condensed interim consolidated financial statements.

1

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF NET EARNINGS (UNAUDITED)

	Three Months Ended September 30,						Nine Months Ended September 30,
(Stated in thousands of Canadian dollars, except per share amounts)	2024			2023			2024			2023


Revenue (Note 3)	$	477,155		$	446,754		$	1,434,157		$	1,430,983
Expenses:
Operating		311,467			288,002			936,383			888,039
General and administrative		23,263			44,177			97,079			83,057
Earnings before income taxes, loss (gain) on investments and other assets, gain on repurchase of unsecured senior notes, finance charges, foreign exchange, gain on asset disposals, and depreciation and amortization		142,425			114,575			400,695			459,887
Depreciation and amortization		75,073			73,192			227,104			218,823
Gain on asset disposals		(3,323	)		(2,438	)		(14,235	)		(15,586	)
Foreign exchange		849			363			772			(894	)
Finance charges (Note 6)		16,914			19,618			53,472			63,946
Gain on repurchase of unsecured senior notes		-			(37	)		-			(137	)
Loss (gain) on investments and other assets		(150	)		(3,813	)		(330	)		6,075
Earnings before income taxes		53,062			27,690			133,912			187,660
Income taxes:
Current		2,297			2,047			4,659			4,008
Deferred		11,582			5,851			32,853			41,130
		13,879			7,898			37,512			45,138
Net earnings	$	39,183		$	19,792		$	96,400		$	142,522
Net earnings per share attributable to shareholders: (Note 9)
Basic	$	2.77		$	1.45		$	6.74		$	10.45
Diluted	$	2.31		$	1.45		$	6.73		$	9.84

See accompanying notes to condensed interim consolidated financial statements.

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

	Three Months Ended September 30,						Nine Months Ended September 30,
(Stated in thousands of Canadian dollars)	2024			2023			2024			2023
Net earnings	$	39,183		$	19,792		$	96,400		$	142,522
Unrealized gain (loss) on translation of assets and liabilities of operations denominated in foreign currency		(16,104	)		39,180			30,409			3,322
Foreign exchange gain (loss) on net investment hedge with U.S. denominated debt		9,536			(24,616	)		(19,283	)		(1,484	)
Comprehensive income	$	32,615		$	34,356		$	107,526		$	144,360

See accompanying notes to condensed interim consolidated financial statements.

2

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

	Three Months Ended September 30,						Nine Months Ended September 30,
(Stated in thousands of Canadian dollars)	2024			2023			2024			2023
Cash provided by (used in):
Operations:
Net earnings	$	39,183		$	19,792		$	96,400		$	142,522
Adjustments for:
Long-term compensation plans		2,620			11,577			14,490			9,200
Depreciation and amortization		75,073			73,192			227,104			218,823
Gain on asset disposals		(3,323	)		(2,438	)		(14,235	)		(15,586	)
Foreign exchange		815			1,275			965			(13	)
Finance charges		16,914			19,618			53,472			63,946
Income taxes		13,879			7,898			37,512			45,138
Other		27			-			120			(220	)
Loss (gain) on investments and other assets		(150	)		(3,813	)		(330	)		6,075
Gain on repurchase of unsecured senior notes		-			(37	)		-			(137	)
Income taxes paid		(508	)		(187	)		(4,842	)		(2,395	)
Income taxes recovered		58			4			58			7
Interest paid		(31,692	)		(35,500	)		(69,435	)		(79,702	)
Interest received		426			227			1,558			562
Funds provided by operations		113,322			91,608			342,837			388,220
Changes in non-cash working capital balances		(33,648	)		(3,108	)		(23,545	)		(57,904	)
Cash provided by operations		79,674			88,500			319,292			330,316

Investments:
Purchase of property, plant and equipment		(63,797	)		(51,546	)		(157,747	)		(146,378	)
Purchase of intangibles		(51	)		(847	)		(51	)		(1,524	)
Proceeds on sale of property, plant and equipment		5,647			6,698			21,825			20,724
Proceeds from sale of investments and other assets		-			10,013			3,623			10,013
Business acquisitions		-			-			-			(28,000	)
Purchase of investments and other assets		(7	)		(3,211	)		(7	)		(5,282	)
Receipt of finance lease payments		207			64			591			64
Changes in non-cash working capital balances		19,149			4,551			(9,266	)		(6,774	)
Cash used in investing activities		(38,852	)		(34,278	)		(141,032	)		(157,157	)

Financing:
Issuance of long-term debt		10,900			23,600			10,900			162,649
Repayments of long-term debt		(59,658	)		(49,517	)		(162,506	)		(288,538	)
Repurchase of share capital (Note 8)		(16,891	)		-			(50,465	)		(12,951	)
Issuance of common shares from the exercise of options		495			-			686			-
Debt amendment fees		-			-			(1,317	)		-
Lease payments		(3,586	)		(2,410	)		(10,005	)		(6,413	)
Funding from non-controlling interest (Note 12)		4,392			-			4,392			-
Cash used in financing activities		(64,348	)		(28,327	)		(208,315	)		(145,253	)
Effect of exchange rate changes on cash		(403	)		251			177			(428	)
Increase (decrease) in cash		(23,929	)		26,146			(29,878	)		27,478
Cash, beginning of period		48,233			22,919			54,182			21,587
Cash, end of period	$	24,304		$	49,065		$	24,304		$	49,065

See accompanying notes to condensed interim consolidated financial statements.

3

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED)

	Attributable to shareholders of the Corporation
(Stated in thousands of Canadian dollars)	Shareholders’ Capital			Contributed Surplus			Accumulated Other Comprehensive Income		Deficit			Total			Non- controlling interest		Total Equity
Balance at January 1, 2024	$	2,365,129		$	75,086		$	147,476	$	(1,012,029	)	$	1,575,662		$	-	$	1,575,662
Net earnings for the period		-			-			-		96,400			96,400			-		96,400
Other comprehensive income for the period		-			-			11,126		-			11,126			-		11,126
Share options exercised		978			(292	)		-		-			686			-		686
Settlement of Executive Performance and Restricted Share Units		21,846			(1,479	)		-		-			20,367			-		20,367
Share repurchases (Note 8)		(51,050	)		-			-		-			(51,050	)		-		(51,050	)
Redemption of non-management directors share units		176			(176	)		-		-			-			-		-
Share-based compensation expense		-			3,517			-		-			3,517			-		3,517
Funding from non-controlling interest (Note 12)		-			-			-		-			-			4,392		4,392
Balance at September 30, 2024	$	2,337,079		$	76,656		$	158,602	$	(915,629	)	$	1,656,708		$	4,392	$	1,661,100

	Attributable to shareholders of the Corporation
(Stated in thousands of Canadian dollars)	Shareholders’ Capital			Contributed Surplus		Accumulated Other Comprehensive Income		Deficit			Total			Non- controllng interest		Total Equity
Balance at January 1, 2023	$	2,299,533		$	72,555	$	159,714	$	(1,301,273	)	$	1,230,529		$	-	$	1,230,529
Net earnings for the period		-			-		-		142,522			142,522			-		142,522
Other comprehensive income for the period		-			-		1,838		-			1,838			-		1,838
Settlement of Executive Performance and Restricted Share Units		19,206			-		-		-			19,206			-		19,206
Share repurchases		(12,951	)		-		-		-			(12,951	)		-		(12,951	)
Redemption of non-management directors share units		757			-		-		-			757			-		757
Share-based compensation expense		-			1,834		-		-			1,834			-		1,834
Balance at September 30, 2023	$	2,306,545		$	74,389	$	161,552	$	(1,158,751	)	$	1,383,735		$	-	$	1,383,735

See accompanying notes to condensed interim consolidated financial statements.

4

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(Tabular amounts are stated in thousands of Canadian dollars except share numbers and per share amounts)

NOTE 1. DESCRIPTION OF BUSINESS

Precision Drilling Corporation (Precision or the Corporation) is incorporated under the laws of the Province of Alberta, Canada and is a provider of contract drilling and completion and production services primarily to oil and natural gas and geothermal exploration and production companies in Canada, the United States and certain international locations.

NOTE 2. BASIS OF PRESENTATION

(a) Statement of Compliance

These condensed interim consolidated financial statements have been prepared in accordance with IFRS Accounting Standards 34, Interim Financial Reporting, using accounting policies consistent with IFRS as issued by the International Accounting Standards Board (IASB).

The condensed interim consolidated financial statements do not include all of the information required for full annual financial statements and should be read in conjunction with the consolidated annual financial statements of the Corporation as at and for the year ended December 31, 2023.

These condensed interim consolidated financial statements were prepared using accounting policies and methods of their application are consistent with those used in the preparation of the Corporation’s consolidated annual financial statements for the year ended December 31, 2023, except as noted in Note 2 (d).

These condensed interim consolidated financial statements were approved by the Board of Directors on October 29, 2024.

(b) Use of Estimates and Judgements

The preparation of the condensed interim consolidated financial statements requires management to make estimates and judgements that affect the reported amounts of assets, liabilities, revenues and expenses, and the disclosure of contingencies. These estimates and judgements are based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. The estimation of anticipated future events involves uncertainty and, consequently, the estimates used in preparation of the condensed interim consolidated financial statements may change as future events unfold, more experience is acquired, or the Corporation’s operating environment changes.

Significant estimates and judgements used in the preparation of these condensed interim consolidated financial statements remained unchanged from those disclosed in the Corporation’s consolidated annual financial statements for the year ended December 31, 2023.

(c) Environmental Reporting Regulations

Environmental reporting continues to evolve and the Corporation may be subject to additional future disclosure requirements. The International Sustainability Standards Board (ISSB) has issued two IFRS Sustainability Disclosure Standards with the objective to develop a global framework for environmental sustainability disclosure. The Canadian Sustainability Standards Board (CSSB) has also released two Exposure Drafts on the Proposed Canadian Sustainability Disclosure Standards which are aligned with the ISSB, in which the comment period closed on June 10, 2024 . Final CSSB standards are anticipated to be issued later in 2024.

The Canadian Securities Administrators (CSA) have also issued a proposed National Instrument 51-107 Disclosure of Climate-related Matters which sets forth additional reporting and disclosure requirements for Canadian public companies. Until such time as the CSA and CSSB make final decisions on sustainability standards for Canada, there is no requirement for public companies in Canada to adopt sustainability standards. Precision continues to monitor the development of these reporting requirements as it progresses with its determination of the financial and disclosure-related implications of complying with these regulations.

(d) Change in Accounting Policy

The Corporation has adopted Classification of Liabilities as Current or Non-current and Non-current Liabilities with Covenants - Amendments to IAS 1, as issued in 2020 and 2022. The amendments apply retrospectively for annual reporting periods beginning on or after January 1, 2024. They clarify certain requirements for determining whether a liability should be classified as current or non-current and require new disclosures for non-current liabilities that are subject to covenants within 12 months after the reporting period.

5

Due to the change in policy, there is a retrospective impact on the comparative statement of financial position, as the Corporation has a Deferred Share Unit (DSU) plan for non-management directors which are redeemable in cash or for an equal number of common shares upon the director's retirement. In the case of a director retiring, the director's respective DSU liability would become payable and the Corporation would not have the right to defer settlement of the liability for at least 12 months. As such, the liability is impacted by the revised policy. The following presentation changes were made to the Statement of Financial Position:

·

As at January 1, 2023, accounts payable and accrued liabilities increased by $12 million and non-current share-based compensation liability decreased by $12 million.

·

As at December 31, 2023, accounts payable and accrued liabilities increased by $8 million and non-current share-based compensation liability decreased by $8 million.

The related liability is now classified as current at September 30, 2024 because the DSUs can be redeemed by the holders within 12 months after the reporting period. The Corporation's other liabilities were not impacted by the amendments.

The change in accounting policy will also be reflected in the Corporation's consolidated financial statements as at and for the year ending December 31, 2024.

NOTE 3. Revenue

(a)

Disaggregation of revenue

The following table includes a reconciliation of disaggregated revenue by reportable segment. Revenue has been disaggregated by primary geographical market and type of service provided.

Three Months Ended September 30, 2024	Contract Drilling Services		Completion and Production Services		Corporate and Other		Inter- Segment Eliminations			Total
United States	$	143,624	$	3,199	$	-	$	-		$	146,823
Canada		215,109		69,875		-		(2,074	)		282,910
International		47,422		-		-		-			47,422
	$	406,155	$	73,074	$	-	$	(2,074	)	$	477,155

Day rate/hourly services	$	403,902	$	73,074	$	-	$	(195	)	$	476,781
Shortfall payments/idle but contracted		54		-		-		-			54
Other		2,199		-		-		(1,879	)		320
	$	406,155	$	73,074	$	-	$	(2,074	)	$	477,155

Three Months Ended September 30, 2023	Contract Drilling Services		Completion and Production Services		Corporate and Other		Inter- Segment Eliminations			Total
United States	$	179,827	$	4,262	$	-	$	(6	)	$	184,083
Canada		172,546		53,311		-		(1,541	)		224,316
International		38,355		-		-		-			38,355
	$	390,728	$	57,573	$	-	$	(1,547	)	$	446,754

Day rate/hourly services	$	380,519	$	57,573	$	-	$	(146	)	$	437,946
Shortfall payments/idle but contracted		8,136		-		-		-			8,136
Other		2,073		-		-		(1,401	)		672
	$	390,728	$	57,573	$	-	$	(1,547	)	$	446,754

6

Nine Months Ended September 30, 2024	Contract Drilling Services		Completion and Production Services		Corporate and Other		Inter- Segment Eliminations			Total
United States	$	443,656	$	11,210	$	-	$	-		$	454,866
Canada		617,115		214,777		-		(6,955	)		824,937
International		154,354		-		-		-			154,354
	$	1,215,125	$	225,987	$	-	$	(6,955	)	$	1,434,157

Day rate/hourly services	$	1,207,438	$	225,987	$	-	$	(550	)	$	1,432,875
Shortfall payments/idle but contracted		54		-		-		-			54
Other		7,633		-		-		(6,405	)		1,228
	$	1,215,125	$	225,987	$	-	$	(6,955	)	$	1,434,157

Nine Months Ended September 30, 2023	Contract Drilling Services		Completion and Production Services		Corporate and Other		Inter- Segment Eliminations			Total
United States	$	655,154	$	11,946	$	-	$	(23	)	$	667,077
Canada		503,312		166,311		-		(5,013	)		664,610
International		99,296		-		-		-			99,296
	$	1,257,762	$	178,257	$	-	$	(5,036	)	$	1,430,983

Day rate/hourly services	$	1,226,836	$	178,257	$	-	$	(383	)	$	1,404,710
Shortfall payments/idle but contracted		15,377		-		-		-			15,377
Turnkey drilling services		8,988		-		-		-			8,988
Other		6,561		-		-		(4,653	)		1,908
	$	1,257,762	$	178,257	$	-	$	(5,036	)	$	1,430,983

(b)

Seasonality

Precision has operations that are carried on in Canada which represent approximately 58% (2023 – 46%) of consolidated revenue for the nine months ended September 30, 2024 and 41% (2023 – 37%) of consolidated total assets as at September 30, 2024. The ability to move heavy equipment in Canadian oil and natural gas fields is dependent on weather conditions. As warm weather returns in the spring, the winter's frost comes out of the ground rendering many secondary roads incapable of supporting the weight of heavy equipment until they have thoroughly dried out. The duration of this “spring break-up” has a direct impact on Precision’s activity levels. In addition, many exploration and production areas in northern Canada are accessible only in winter months when the ground is frozen hard enough to support equipment. The timing of freeze up and spring break-up affects the ability to move equipment in and out of these areas. As a result, late March through May is traditionally Precision’s slowest time in this region.

7

NOTE 4. SEGMENTED INFORMATION

The Corporation has two reportable operating segments; Contract Drilling Services and Completion and Production Services. Contract Drilling Services includes drilling rigs, procurement and distribution of oilfield supplies, and manufacture, sale and repair of drilling equipment. Completion and Production Services includes service rigs, oilfield equipment rental and camp and catering services. The Corporation provides services primarily in Canada, the United States and certain international locations.

Three Months Ended September 30, 2024	Contract Drilling Services			Completion and Production Services			Corporate and Other			Inter- Segment Eliminations			Total
Revenue	$	406,155		$	73,074		$	-		$	(2,074	)	$	477,155
Earnings before income taxes, loss (gain) on investments and other assets, gain on repurchase of unsecured senior notes, finance charges, foreign exchange, gain on asset disposals, and depreciation and amortization		133,235			19,741			(10,551	)		-			142,425
Depreciation and amortization		67,215			5,436			2,422			-			75,073
Gain on asset disposals		(2,331	)		(946	)		(46	)		-			(3,323	)
Total assets		2,495,082			251,955			140,959			-			2,887,996
Capital expenditures		58,000			5,648			200			-			63,848

Three Months Ended September 30, 2023	Contract Drilling Services			Completion and Production Services			Corporate and Other			Inter- Segment Eliminations			Total
Revenue	$	390,728		$	57,573		$	-		$	(1,547	)	$	446,754
Earnings before income taxes, loss (gain) on investments and other assets, gain on repurchase of unsecured senior notes, finance charges, foreign exchange, gain on asset disposals, and depreciation and amortization		131,701			14,118			(31,244	)		-			114,575
Depreciation and amortization		67,431			3,485			2,276			-			73,192
Gain on asset disposals		(2,402	)		(22	)		(14	)		-			(2,438	)
Total assets		2,494,557			172,127			141,517			-			2,808,201
Capital expenditures		48,517			2,818			1,058			-			52,393

NineMonthsEnded September 30, 2024	Contract Drilling Services			Completion and Production Services			Corporate and Other			Inter- Segment Eliminations			Total
Revenue	$	1,215,125		$	225,987		$	-		$	(6,955	)	$	1,434,157
Earnings before income taxes, loss (gain) on investments and other assets, gain on repurchase of unsecured senior notes, finance charges, foreign exchange, gain on asset disposals, and depreciation and amortization		406,662			50,786			(56,753	)		-			400,695
Depreciation and amortization		204,999			15,314			6,791			-			227,104
Gain on asset disposals		(8,885	)		(2,463	)		(2,887	)		-			(14,235	)
Total assets		2,495,082			251,955			140,959			-			2,887,996
Capital expenditures		143,253			13,495			1,050			-			157,798

8

Nine Months Ended September 30, 2023	Contract Drilling Services			Completion and Production Services			Corporate and Other			Inter- Segment Eliminations			Total
Revenue	$	1,257,762		$	178,257		$	-		$	(5,036	)	$	1,430,983
Earnings before income taxes, loss (gain) on investments and other assets, gain on repurchase of unsecured senior notes, finance charges, foreign exchange, gain on asset disposals, and depreciation and amortization		468,302			39,031			(47,446	)		-			459,887
Depreciation and amortization		201,137			10,854			6,832			-			218,823
Gain on asset disposals		(14,688	)		(736	)		(162	)		-			(15,586	)
Total assets		2,494,557			172,127			141,517			-			2,808,201
Capital expenditures		138,716			7,043			2,143			-			147,902

A reconciliation of total segment earnings before income taxes, loss (gain) on investments and other assets, gain on repurchase of unsecured senior notes, finance charges, foreign exchange, gain on asset disposals, depreciation and amortization to net earnings is as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2024			2023			2024			2023
Total segment earnings before income taxes, loss (gain) on investments and other assets, gain on repurchase of unsecured senior notes, finance charges, foreign exchange, gain on asset disposals, and depreciation and amortization	$	142,425		$	114,575		$	400,695		$	459,887
Deduct:
Depreciation and amortization		75,073			73,192			227,104			218,823
Gain on asset disposals		(3,323	)		(2,438	)		(14,235	)		(15,586	)
Foreign exchange		849			363			772			(894	)
Finance charges		16,914			19,618			53,472			63,946
Gain on repurchase of unsecured senior notes		-			(37	)		-			(137	)
Loss (gain) on investments and other assets		(150	)		(3,813	)		(330	)		6,075
Income taxes		13,879			7,898			37,512			45,138
Net earnings	$	39,183		$	19,792		$	96,400		$	142,522

9

NOTE 5. LONG-TERM DEBT

	U.S. Denominated Facilities				Canadian Facilities and Translated U.S. Facilities

	September 30,		December 31,		September 30,			December 31,
	2024		2023		2024			2023

Current Portion of Long-Term Debt
Canadian Real Estate Credit Facility	US$	-	US$	-	$	-		$	1,915
U.S. Real Estate Credit Facility		704		704		952			933
	US$	704	US$	704	$	952		$	2,848

Long-Term Debt
Canadian Real Estate Credit Facility		-		-		-			24,018
U.S. Real Estate Credit Facility		4,307		7,685		5,825			10,181
Unsecured Senior Notes:
7.125% senior notes due 2026		184,330		273,330		249,269			362,096
6.875% senior notes due 2029		400,000		400,000		540,920			529,904
	US$	588,637	US$	681,015		796,014			926,199
Less net unamortized debt issue costs and original issue discount						(9,006	)		(11,369	)
					$	787,008		$	914,830

	Senior Credit Facility			Unsecured Senior Notes			Canadian Real Estate Credit Facility			U.S. Real Estate Credit Facility			Debt Issue Costs and Original Issue Discount			Total
Current	$	-		$	-		$	1,915		$	933		$	-		$	2,848
Long-term		-			892,000			24,018			10,181			(11,369	)		914,830
December 31, 2023		-			892,000			25,933			11,114			(11,369	)		917,678
Changes from financing cash flows:
Proceeds from Senior Credit Facility		10,900			-			-			-			-			10,900
Repayment of unsecured senior notes		-			(121,012	)		-			-			-			(121,012	)
Repayment of Senior Credit Facility		(10,982	)		-			-			-			-			(10,982	)
Repayment of Real Estate Credit Facility		-			-			(25,933	)		(4,579	)		-			(30,512	)
		(82	)		770,988			-			6,535			(11,369	)		766,072
Amortization of debt issue costs		-			-			-			-			2,366			2,366
Foreign exchange adjustment		82			19,201			-			242			(3	)		19,522
September 30, 2024	$	-		$	790,189		$	-		$	6,777		$	(9,006	)	$	787,960

Current	$	-		$	-		$	-		$	952		$	-		$	952
Long-term		-			790,189			-			5,825			(9,006	)		787,008
September 30, 2024	$	-		$	790,189		$	-		$	6,777		$	(9,006	)	$	787,960

On June 28, 2024, Precision extended its Senior Credit Facility’s maturity date, revised the available borrowing capacity, and amended certain terms of the facility. The maturity date was extended to June 28, 2027, and the size was revised to US$375 million.

As at September 30, 2024, Precision was in compliance with the covenants of the Senior Credit Facility and Real Estate Credit Facility.

10

	Covenant	As of September 30, 2024
Senior Credit Facility
Consolidated senior debt to consolidated covenant EBITDA⁽¹⁾	< 2.50		0.02
Consolidated covenant EBITDA to consolidated interest expense	> 2.50		7.66
Real Estate Credit Facilities
Consolidated covenant EBITDA to consolidated interest expense	> 2.50		7.66

(1)

For purposes of calculating the leverage ratio consolidated senior debt only includes secured indebtedness.

NOTE 6. FINANCE CHARGES

	Three Months Ended September 30,						Nine Months Ended September 30,
	2024			2023			2024			2023
Interest:
Long-term debt	$	15,341		$	17,990		$	49,008		$	58,863
Lease obligations		1,122			948			3,204			2,719
Other		17			105			266			293
Income		(416	)		(342	)		(1,761	)		(702	)
Amortization of debt issue costs, loan commitment fees and original issue discount		850			917			2,755			2,773
Finance charges	$	16,914		$	19,618		$	53,472		$	63,946

NOTE 7. SHARE-BASED COMPENSATION PLANS

Liability Classified Plans

	Restricted Share Units ^(a)			Performance Share Units ^(a)			Non- Management Directors’ DSUs ^(b)		Total
December 31, 2023	$	16,114		$	64,042		$	8,367	$	88,523
Expensed during period		7,904			19,033			1,873		28,810
Settlement in shares		(2,012	)		(18,355	)		-		(20,367	)
Payments and redemptions		(13,030	)		(40,016	)		-		(53,046	)
Foreign exchange		2			5			-		7
September 30, 2024	$	8,978		$	24,709		$	10,240	$	43,927

Current	$	6,823		$	16,525		$	10,240	$	33,588
Long-term		2,155			8,184			-		10,339
	$	8,978		$	24,709		$	10,240	$	43,927

(a) Restricted Share Units and Performance Share Units

A summary of the activity under the Restricted Share Unit (RSU) and the Performance Share Unit (PSU) plans are presented below:

	RSUs Outstanding			PSUs Outstanding
December 31, 2023		276,094			794,743
Granted		91,778			158,380
Redeemed		(180,989	)		(450,726	)
Forfeited		(7,768	)		(5,404	)
September 30, 2024		179,115			496,993

11

(b) Non-Management Directors – Deferred Share Units Plan

A summary of the activity under the non-management director DSU plan is presented below:

	DSUs Outstanding
December 31, 2023		116,280
Granted		6,676
September 30, 2024		122,956

Equity Settled Plans

(c) Executive Restricted Share Units Plan

Precision granted Executive RSUs to certain senior executives with the intention of settling them in voting shares of the Corporation either issued from treasury or purchased in the open market. Granted units vest annually over a three-year term.

	Executive RSUs Outstanding			Weighted Average Fair Value
December 31, 2023		46,740		$	96.90
Granted		61,930			79.84
Redeemed		(15,570	)		96.90
Forfeited		(608	)		96.90
September 30, 2024		92,492		$	85.48

Included in net earnings for the three and nine months ended September 30, 2024 were expenses of $1 million (2023 – $1 million) and $3 million (2023 – $1 million) respectively.

(d) Option Plan

A summary of the activity under the option plan is presented below:

Canadian share options	Outstanding			Range of Exercise Price		Weighted Average Exercise Price		Exercisable
December 31, 2023		23,055		$	87.00 — 145.97	$	113.01		23,055
Exercised		(925	)		87.00 — 87.00		87.00
Forfeited		(10,170	)		145.97 — 145.97		145.97
September 30, 2024		11,960		$	87.00 — 87.00	$	87.00		11,960

U.S. share options	Outstanding			Range of Exercise Price (US$)		Weighted Average Exercise Price (US$)		Exercisable
December 31, 2023		128,398		$	51.20 — 111.47		85.80		128,398
Exercised		(6,485	)		68.80 — 68.80		68.80
Forfeited		(61,861	)		68.80 — 111.47		106.37
September 30, 2024		60,052		$	51.20 — 72.46		66.45		60,052

(e) Non-Management Directors – Deferred Share Unit Plans

Effective May 16, 2024, Precision instituted a new DSU plan for non-management directors whereby fully vested deferred share units are granted quarterly based upon an election by the non-management director to receive all or a portion of their compensation in deferred share units. The deferred share units are redeemable for an equal number of common shares on the date specified in an eligible director’s participation and election agreement, which date may be the grant date, the first, third or fifth anniversary of the grant date. The number of deferred share units granted is based upon the weighted average closing price of Precision shares on the Toronto Stock Exchange for the five trading days immediately prior to payout.

12

A summary of the activity under the non-management director DSU plans is presented below:

	DSUs Outstanding
December 31, 2023		1,470
Granted		3,296
Redeemed		(1,956	)
September 30, 2024		2,810

Included in net earnings for the three and nine months ended September 30, 2024 were expenses of $0.4 million (2023 – nil).

NOTE 8. SHAREHOLDERS’ CAPITAL

Common shares	Number			Amount
December 31, 2023		14,336,539		$	2,365,129
Settlement of PSUs and RSUs		265,143			21,846
Share options exercised		7,410			978
Share repurchases		(543,778	)		(51,050	)
Redemption of non-management directors share units		1,956			176
September 30, 2024		14,067,270		$	2,337,079

(a) Normal Course Issuer Bid

During the third quarter of 2024, the Toronto Stock Exchange (TSX) approved the renewal of Precision's Normal Course Issuer Bid (NCIB). Pursuant to the NCIB, the Corporation has been authorized by the TSX to repurchase and cancel up to a maximum of 1,359,108 common shares. The NCIB will terminate no later than September 18, 2025. Prior to the renewal of the NCIB, Precision had repurchased and cancelled 543,778 common shares for $50 million and recorded $1 million of share buy back tax in 2024.

NOTE 9. PER SHARE AMOUNTS

The following tables reconcile net earnings and weighted average shares outstanding used in computing basic and diluted net earnings per share:

	Three Months Ended September 30,					Nine Months Ended September 30,
	2024			2023		2024		2023
Net earnings attributable to shareholders – basic	$	39,183		$	19,792	$	96,400	$	142,522
Effect of share options and other equity compensation plans		(4,802	)		-		-		3,679
Net earnings attributable to shareholders – diluted	$	34,381		$	19,792	$	96,400	$	146,201

	Three Months Ended September 30,				Nine Months Ended September 30,
(Stated in thousands)	2024		2023		2024		2023
Weighted average shares outstanding – basic		14,142		13,607		14,312		13,643
Effect of share options and other equity compensation plans		748		3		5		1,215
Weighted average shares outstanding – diluted		14,890		13,610		14,317		14,858

13

NOTE 10. FAIR VALUES OF FINANCIAL INSTRUMENTS

The carrying values of cash, accounts receivable, and accounts payable and accrued liabilities approximates their fair value due to the relatively short period to maturity of the instruments. At the end of each reporting period, investments and other assets are measured at their estimated fair value, with changes in fair value recognized in profit or loss. Amounts drawn on the Senior Credit Facility and the U.S. Real Estate Credit Facility are measured at amortized cost and approximate fair value as this indebtedness is subject to floating rates of interest. The fair value of the unsecured senior notes at September 30, 2024 was approximately $790 million (December 31, 2023 – $867 million).

Financial assets and liabilities recorded or disclosed at fair value in the consolidated statement of financial position are categorized based upon the level of judgement associated with the inputs used to measure their fair value. Hierarchical levels are based on the amount of subjectivity associated with the inputs in the fair value determination and are as follows:

Level I—Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date.

Level II—Inputs (other than quoted prices included in Level I) are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life.

Level III—Inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model.

The estimated fair value of unsecured senior notes is based on level II inputs. The fair value is estimated considering the risk-free interest rates on government debt instruments of similar maturities, adjusted for estimated credit risk, industry risk and market risk premiums.

NOTE 11. ASSETS HELD FOR SALE

Precision has committed to sell certain assets contained within the Contract Drilling and Completion and Production Services segments. The identified assets were previously acquired through business acquisitions and subsequently deemed as redundant. Accordingly, these assets were presented as held for sale at September 30, 2024 as sales efforts have been initiated and expected to be completed within one year. At September 30, 2024, property, plant and equipment with a carrying amount of $5 million remained reclassified as assets held for sale.

NOTE 12. NON-CONTROLLING INTEREST

On September 26, 2024, Precision formed a Partnership with two Indigenous partners to provide well servicing operations in northeast British Columbia. Precision contributed $4 million in assets to the Partnership.

Precision holds a controlling interest in the Partnership and the portions of the net earnings and equity not attributable to Precision’s controlling interest are shown separately as Non-Controlling Interests (NCI) in the consolidated statements of net earnings and consolidated statements of financial position.

14

SHAREHOLDER INFORMATION

STOCK EXCHANGE LISTINGS

Shares of Precision Drilling Corporation are listed on the Toronto Stock Exchange under the trading symbol PD and on the New York Stock Exchange under the trading symbol PDS.

TRANSFER AGENT AND REGISTRAR

Computershare Trust Company of Canada

Calgary, Alberta

TRANSFER POINT

Computershare Trust Company NA

Canton, Massachusetts

Q3 2024 TRADING PROFILE

Toronto (TSX: PD)

High: $109.20

Low: $80.94

Close: $83.29

Volume Traded: 5,477,400

New York (NYSE: PDS)

High: US$79.07

Low: US$59.98

Close: US$61.65

Volume Traded: 3,298,504

ACCOUNT QUESTIONS

Precision’s Transfer Agent can help you with a variety of shareholder related services, including:

• change of address

• lost unit certificates

• transfer of shares to another person

• estate settlement

Computershare Trust Company of Canada

100 University Avenue

9th Floor, North Tower

Toronto, Ontario M5J 2Y1

Canada

1-800-564-6253 (toll free in Canada and the United States)

1-514-982-7555 (international direct dialing)

Email: service@computershare.com

ONLINE INFORMATION

To receive news releases by email, or to view this interim report online, please visit Precision’s website at www.precisiondrilling.com and refer to the Investor Relations section. Additional information relating to Precision, including the Annual Information Form, Annual Report and Management Information Circular has been filed with SEDAR and is available at www.sedar.com and on the EDGAR website www.sec.gov

CORPORATE INFORMATION

DIRECTORS

William T. Donovan

Steven W. Krablin

Susan M. MacKenzie

Lori A. Lancaster

Kevin O. Meyers

Kevin A. Neveu

David W. Williams

Alice L. Wong

OFFICERS

Kevin A. Neveu

President and Chief Executive Officer

Veronica H. Foley

Chief Legal & Compliance Officer

Carey T. Ford

Chief Financial Officer

Shuja U. Goraya

Chief Technology Officer

Darren J. Ruhr

Chief Administrative Officer

Gene C. Stahl

President, North American Drilling

AUDITORS

KPMG LLP

Calgary, Alberta

HEAD OFFICE

Suite 800, 525 8th Avenue SW

Calgary, Alberta, T2P 1G1

Canada

Telephone: 403-716-4500

Facsimile: 403-264-0251

Email: info@precisiondrilling.com

www.precisiondrilling.com

15

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