Original News Release

Precision Drilling Announces 2025 Third Quarter Unaudited Financial Statements

PRECISION DRILLING CORPORATION Oct 22, 2025 · 18:32 PD As distributed — unedited

CALGARY, Alberta, Oct. 22, 2025 (GLOBE NEWSWIRE) -- This news release 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 news release. This news release contains references to certain Financial Measures and Ratios, including Adjusted EBITDA (earnings before income taxes, loss (gain) on investments and other assets, 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 news release. Precision Drilling Corporation ("Precision" or the "Company") (TSX:PD; NYSE:PDS) announces its 2025 third quarter results, confirms shareholder return targets, and continues to strengthen its North American Super Series rig fleet to meet customer demand. Financial Highlights Revenue of $462 million was 3% lower than $477 million reported in the third quarter of 2024, representing a relative outperformance versus industry drilling rig activity declines of 15%(1) in Canada and 7%(1) in the U.S. over the comparable period. Adjusted EBITDA(2) was $118 million, including $11 million of share-based compensation expense. In 2024, third quarter Adjusted EBITDA was $142 million and included a share-based compensation recovery of $0.2 million. Net earnings attributable to shareholders was a loss of $7 million as we recorded a higher deferred income tax expense related to our U.S. operations. In the third quarter of 2024, net earnings attributable to shareholders was $39 million. Cash provided by operations during the quarter was $76 million, allowing the Company to repay $10 million of debt and achieve its annual guidance target three months early. Precision also repurchased $9 million of common shares, bringing year-to-date repurchases to $54 million. Capital expenditures were $69 million during the quarter and $182 million for the first nine months of the year. During the quarter, Precision upgraded and moved two Super Triple rigs from the U.S. under long-term contracts and secured additional customer-funded upgrades in Canada and the U.S. As a result, the Company revised its 2025 capital budget to $260 million from $240 million. Operational Highlights Canada averaged 63 active drilling rigs, a 13% decrease in rig utilization days from the third quarter of 2024, reflective of lower industry activity. Canadian revenue per utilization day increased to $34,193 from $32,325, primarily due to rig mix as we had more active Super Triples. U.S. averaged 36 active rigs versus 35 in the third quarter of 2024, while industry activity was down 40(1) rigs over this same period. For the past two quarters, Precision's U.S. rig utilization days increased 24% while industry activity declined 8%(1). U.S. revenue per utilization day was US$31,040 compared to US$32,949 in the same period last year, as lower industry demand placed downward pressure on rates. Internationally, we averaged seven active rigs versus eight in the third quarter of 2024, while revenue per utilization day was US$53,811 compared to US$47,223 due to planned rig recertifications in 2024. Canadian well service rig operating hours increased 6% versus the same quarter in 2024. (1) See "SEGMENT REVIEW OF CONTRACT DRILLING SERVICES". (2) See “FINANCIAL MEASURES AND RATIOS”. MANAGEMENT COMMENTARY “Precision’s third quarter not only achieved financial results that exceeded most expectations, but also demonstrated our ability to meet shareholder capital allocation commitments while continuing to strengthen our competitive position through fleet investments in key operating markets. Precision’s favorable positioning in U.S. natural gas markets and Canadian heavy oil and unconventional natural gas markets, combined with scale and technical expertise, have provided us the ability to capture numerous opportunities to deploy upgrade capital underpinned by customer commitments, drive revenue and activity growth, and deliver excellent financial returns to our shareholders,” stated Carey Ford, Precision’s President and Chief Executive Officer. "Despite a North American drilling market that is down 7% compared to a year ago, Precision’s current U.S. activity and Canadian Super Triple activity are both up more than 10% compared to this time last year. We have delivered strong activity while demonstrating resilient margins in both Canada and the U.S. "In Canada, we are currently operating 68 drilling rigs and demand for our Super Triple and Super Single rig classes remains robust and we expect near full utilization this winter season. During the quarter, we mobilized two Super Triple drilling rigs from the U.S. market to a large Canadian customer on a multi-year, multi-rig contract. Both rigs have been upgraded and will begin generating revenue in the fourth quarter. "In the U.S., we are currently operating 39 drilling rigs, an increase from an average of 30 rigs in the first quarter of 2025, and we continue to see strength in natural gas basins such as the Haynesville and Marcellus. We are encouraged by the quality and quantity of customer conversations and the increase in overall natural gas activity; however, the short-term nature of the majority of contracts, combined with overall softer commodity prices, provides us with limited visibility beyond early 2026. "Internationally, our operations continue to provide stable free cash flow with seven rigs operating in the Middle East. Further adding to our free cash flow profile is Precision’s Completion and Production Services segment, where our market-leading well servicing and rentals position supported robust results for the quarter, generating Adjusted EBITDA of $19 million. "Demand for Precision’s North American Super Series rigs remains strong. During the quarter we increased our planned 2025 capital expenditures from $240 million to $260 million, entirely the result of upgrade expenditures backed by customer contracts. We expect to upgrade 27 drilling rigs by the end of this year and effectively all upgrades are for customers operating in geographic markets where we have already experienced a year over year increase in activity or expect to this winter drilling season. "We remain committed to our capital allocation plans and have met our annual debt reduction target for 2025, reducing debt by over $100 million as of the end of the third quarter. For the remainder of the year, we plan to focus on share buybacks and expect to allocate between 35% and 45% of our free cash flow to share repurchases by year end, building on the $54 million of shares repurchased during the first nine months of the year. "As Precision’s new President & CEO, I am excited to lead our talented and dedicated employees into the next era of performance. We have the team, culture, assets, and balance sheet to continue to serve our customers and drive value for shareholders. I look forward to working with all stakeholders and firmly securing Precision’s position as the highest performing land driller and well servicing provider in the regions we operate," concluded Mr. Ford. 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) 2025 2024 % Change 2025 2024 % Change Revenue 462,250 477,155 (3.1 ) 1,365,196 1,434,157 (4.8 ) Adjusted EBITDA(1) 117,632 142,425 (17.4 ) 363,229 400,695 (9.4 ) Net earnings (loss) (6,472 ) 39,183 (116.5 ) 44,962 96,400 (53.4 ) Net earnings (loss) attributable to shareholders (6,761 ) 39,183 (117.3 ) 44,017 96,400 (54.3 ) Cash provided by operations 75,869 79,674 (4.8 ) 286,783 319,292 (10.2 ) Funds provided by operations(1) 96,541 113,322 (14.8 ) 310,673 342,837 (9.4 ) Cash used in investing activities 61,194 38,852 57.5 154,445 141,032 9.5 Capital spending by spend category(1) Expansion and upgrade 35,314 7,709 358.1 81,617 30,501 167.6 Maintenance and infrastructure 34,012 56,139 (39.4 ) 100,447 127,297 (21.1 ) Proceeds on sale (6,200 ) (5,647 ) 9.8 (21,794 ) (21,825 ) (0.1 ) Net capital spending(1) 63,126 58,201 8.5 160,270 135,973 17.9 Net earnings (loss) attributable to shareholders per share: Basic (0.51 ) 2.77 (118.4 ) 3.28 6.74 (51.4 ) Diluted (0.51 ) 2.31 (122.1 ) 3.09 6.73 (54.1 ) Weighted average shares outstanding: Basic 13,211 14,142 (6.6 ) 13,430 14,312 (6.2 ) Diluted 13,211 14,890 (11.3 ) 14,070 14,317 (1.7 ) (1) See “FINANCIAL MEASURES AND RATIOS”. Operating Highlights For the three months ended September 30, For the nine months ended September 30, 2025 2024 % Change 2025 2024 % Change Contract drilling rig fleet 215 214 0.5 215 214 0.5 Drilling rig utilization days: Canada 5,766 6,586 (12.5 ) 17,026 17,667 (3.6 ) U.S. 3,341 3,196 4.5 9,065 9,885 (8.3 ) International 644 736 (12.5 ) 2,044 2,192 (6.8 ) Revenue per utilization day: Canada(Cdn$) 34,193 32,325 5.8 35,695 34,497 3.5 U.S.(US$) 31,040 32,949 (5.8 ) 31,693 33,011 (4.0 ) International(US$) 53,811 47,223 14.0 52,037 51,761 0.5 Operating costs per utilization day: Canada(Cdn$) 21,186 19,448 8.9 21,375 20,196 5.8 U.S.(US$) 22,340 22,207 0.6 22,709 22,113 2.7 Service rig fleet 152 155 (1.9 ) 148 155 (4.5 ) Service rig operating hours 63,522 59,883 6.1 172,936 184,546 (6.3 ) Drilling Activity Average for the quarter ended 2024 Average for the quarter ended 2025 Mar. 31 June 30 Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 30 Average Precision active rig count(1): Canada 73 49 72 65 74 50 63 U.S. 38 36 35 34 30 33 36 International 8 8 8 8 8 7 7 Total 119 93 115 107 112 90 106 (1) Average number of drilling rigs working or moving. Financial Position (Stated in thousands of Canadian dollars, except ratios) September 30, 2025 December 31, 2024 Working capital(1) 164,986 162,592 Cash 38,311 73,771 Long-term debt 687,732 812,469 Total long-term financial liabilities(1) 754,334 888,173 Total assets 2,800,895 2,956,315 Long-term debt to long-term debt plus equity ratio(1) 0.29 0.33 (1) See “FINANCIAL MEASURES AND RATIOS”. Summary for the three months ended September 30, 2025: Revenue in the third quarter was $462 million, $15 million lower than the same period last year primarily due to lower Canadian drilling activity offset in part by higher average day rates. With tariff and commodity price uncertainty, some Canadian producers deferred work until this winter season. Revenue from our U.S. drilling, International drilling, and Completion and Production operations were all comparable with the third quarter of 2024. Adjusted EBITDA was $118 million compared to $142 million in the third quarter of 2024. The decrease was mainly attributable to factors impacting revenue plus higher operating costs in Canada and share-based compensation expense, which was $11 million versus a recovery of $0.2 million in the same period last year. For additional information on share-based compensation please refer to "Other Items" later in this news release. Net earnings attributable to shareholders was a loss of $7 million or a loss of $0.51 per share compared to $39 million or $2.77 per share for the same period last year. During the quarter, we recorded a higher deferred income tax expense related to our U.S. operations. For additional information on income taxes please refer to "Other Items" later in this news release. Cash provided by operations was $76 million and the Company repurchased 121,364 shares for $9 million and reduced long-term debt by $10 million. We also redeemed the remaining portion of our 2026 unsecured senior notes of $138 million (US$100 million) primarily by drawing $129 million from our Senior Credit Facility. Precision ended the quarter with $38 million of cash and more than $400 million in available liquidity. In Canada, revenue per utilization day was $34,193 compared to $32,325 in the same period last year, primarily due to rig mix as Precision had more Super Triples active in the third quarter of 2025 compared with 2024 and higher recoverable costs. Canadian operating costs per utilization day were $21,186 compared to $19,448, with the increase attributable to more labor related to rig mix, recoverable expenses, and rig move costs as we mobilized two rigs from the U.S. In the U.S., revenue per utilization day was US$31,040 compared to US$32,949 in the same period last year, as lower industry activity caused downward pressure on rates. U.S. operating costs per utilization day was US$22,340 versus US$22,207 in the third quarter of 2024. With an increasing rig count, our operating costs per utilization day included US$502 of rig reactivation charges compared to US$270 in the same period last year. Internationally, we had revenue per utilization per day of US$53,811 compared to US$47,223 in the same period last year. The lower rate in 2024 was due to planned rig recertifications that resulted in non-billable utilization days. We realized revenue of US$35 million in the third quarter of 2025 and 2024 as the higher revenue per utilization day was offset by lower activity following one Saudi Arabia rig being temporarily suspended in May. Completion and Production Services revenue was $75 million versus $73 million generated in the third quarter of 2024 as our well service hours increased 6% in Canada. Adjusted EBITDA was $19 million, representing 26% of revenue and similar to 27% in 2024. General and administrative expenses were $31 million versus $23 million in the third quarter of 2024, primarily due to higher share-based compensation expense as our share price appreciated 22% in the quarter. Capital expenditures were $69 million compared to $64 million in the third quarter of 2024 and included $34 million for the maintenance of existing assets, infrastructure, and intangible assets and $35 million for upgrades(1). (1) See “FINANCIAL MEASURES AND RATIOS.” Summary for the nine months ended September 30, 2025: Revenue for the first nine months of 2025 was $1,365 million, a decrease of 5% from 2024. The majority of this decrease related to lower activity and day rates in U.S. drilling. Adjusted EBITDA was $363 million versus $401 million in 2024. The decrease was primarily driven by U.S. results, which were in part offset by share-based compensation expense of $18 million compared to $32 million in 2024. On a year-to-date basis, share-based compensation decreased due to lower share price performance relative to 2024. Please refer to “Other Items” later in this news release for additional information on share-based compensation. Net earnings attributable to shareholders was $44 million or $3.28 per share compared to $96 million or $6.74 per share in 2024 due to lower Adjusted EBITDA and higher income taxes, partially offset by lower net finance charges. Please refer to “Other Items” later in this news release for additional information on income taxes. Net finance charges decreased $9 million to $44 million as a result of a lower outstanding debt balance, partially offset by the impact of the weakening Canadian dollar on our U.S. dollar-denominated interest expense. General and administrative costs were $85 million compared to $97 million for the first nine months of 2024, primarily the result of lower share-based compensation expense. Cash provided by operations was $287 million and the Company repurchased 767,422 shares for $54 million and reduced debt by $101 million, redeeming $222 million (US$160 million) of 2026 unsecured senior notes while utilizing $122 million on the Senior Credit Facility. Capital expenditures were $182 million for the first nine months of 2025 and included $100 million for maintenance, infrastructure, and intangible assets, and $82 million for upgrades. By comparison, for the first nine months of 2024, capital expenditures were $158 million and included $127 million for maintenance, infrastructure, and intangible assets, and $31 million for expansion and upgrades. On a year-to-date basis, lower rig utilization days has resulted in lower maintenance expenditures, while strong demand for customer-funded rig upgrades has more than offset this decrease. STRATEGY Precision’s vision is to be globally recognized as the High Performance, High Value provider of land drilling services. We work toward this vision by defining and measuring our results against strategic priorities that we establish at the beginning of every year. Precision’s 2025 strategic priorities and the progress made during the third quarter are summarized below. Maximize free cash flow through disciplined capital deployment and strict cost management. Generated cash from operations of $76 million, allowing Precision to reduce debt and buy back shares. On track to realize approximately $10 million in annual savings following fixed cost reductions in the first quarter to address market uncertainty. Recorded resilient operating margins(1) in Canada year over year and in the U.S. versus the previous quarter. Enhance shareholder returns through debt reduction and share repurchases. Plan to reduce debt by at least $100 million and allocate 35% to 45% of free cash flow before debt repayments for share repurchases. Achieved our annual debt reduction target during the third quarter, bringing our year-to-date total to $101 million. Returned $9 million of capital to shareholders by repurchasing 121,364 shares during the quarter. Year to date, we have repurchased $54 million in shares and are on track to meet our annual guidance. Well positioned to meet our long-term debt reduction target of $700 million between 2022 and 2027. As of September 30, 2025, we have reduced our debt by $535 million since the beginning of 2022. Grow revenue in existing service lines through contracted upgrades, optimized pricing and utilization, and opportunistic consolidating tuck-in acquisitions. Maintained strong pricing in Canada with revenue per utilization day improving 6% over the third quarter of 2024. Grew U.S. rig utilization averaging 36 active rigs versus 33 in the previous quarter while industry activity decreased. Increased 2025 capital budget to $260 million from $240 million to provide for five additional customer-funded rig upgrades, including two Super Triple rigs moved from the U.S. to Canada under long-term contracts. Current market conditions and commodity price volatility have made acquisitions less attractive in the near term. (1) Defined as revenue per utilization day less operating costs per utilization day. OUTLOOK Near-term expectations for global energy demand growth continue to be tempered by several geopolitical events, including OPEC+ easing of curtailments, trade and tariff uncertainty, and international conflicts. However, we believe the long-term fundamentals for energy are positive, driven by economic growth, demand from emerging economies, LNG off-take, and natural gas sourced power generation demand for AI data centers. In Canada, additional takeaway capacity for both oil and natural gas continues to support Canadian activity. LNG Canada made its first shipment at the beginning of July and as customers take a long-term view of this business, demand for our Super Triple rigs is near full capacity. The Trans Mountain pipeline expansion continues to support heavy oil production, driving our Super Single rig utilization toward full capacity. With strong Canadian drilling fundamentals, we expect our winter drilling season to meet or exceed last year's winter activity, assuming supportive commodity prices. In the U.S., while oil rig activity continues to be challenged, the year-to-date natural gas rig count has increased approximately 20% as customers are becoming more constructive on LNG off-take and AI demand. We have capitalized on these emerging opportunities in natural gas basins such as the Haynesville and Marcellus and increased our U.S. drilling rig utilization days 24% over the last two quarters. We currently have 39 rigs active and continue to have encouraging customer conversations that could result in additional activity increases. Internationally, we have eight rigs under contract with five active in Kuwait, two active in the Kingdom of Saudi Arabia and one rig temporarily suspended in Saudi Arabia. The majority of our international rigs are under five-year term contracts that extend into 2027 and 2028 and we expect seven active for the remainder of the year. We continue to look for opportunities to leverage our international footprint and expertise. As the premier well service provider in Canada, the long-term outlook for this business is positive, driven by increased takeaway capacity from the Trans Mountain pipeline expansion and LNG Canada, and our High Performance, High Value service offering. We expect customer demand and pricing to remain strong into the foreseeable future, assuming no significant change in market conditions. Overall, our outlook for the remainder of the year remains optimistic but will continue to be commodity price dependent. With the constructive commodity prices we experienced at the beginning of the fourth quarter, we expect our fourth quarter activity levels to be steady year over year with some upside potential. Our operating margins in Canada are expected to average between $14,000 and $15,000 per utilization day and remain consistent to the margins we reported in the fourth quarter of 2024. In the U.S., we expect our fourth quarter operating margins to remain stable and average between US$8,000 and US$9,000 per utilization day. Contracts The following chart outlines the average number of drilling rigs under term contract by quarter as at October 22, 2025. For the quarter ending after September 30, 2025, 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 22, 2025 Average for the quarter ended 2024 Average Average for the quarter ended 2025 Average Mar. 31 June 30 Sept. 30 Dec. 31 2024 Mar. 31 June 30 Sept. 30 Dec. 31 2025 Average rigs under term contract: Canada 24 22 23 23 23 20 18 16 20 19 U.S. 20 17 17 16 18 16 16 17 16 16 International 8 8 8 8 8 8 7 7 7 7 Total 52 47 48 47 49 44 41 40 43 42 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. 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) 2025 2024 % Change 2025 2024 % Change Revenue 390,943 406,155 (3.7 ) 1,165,752 1,215,125 (4.1 ) Expenses: Operating 264,300 262,933 0.5 771,160 776,210 (0.7 ) General and administrative 9,783 9,987 (2.0 ) 30,294 32,253 (6.1 ) Adjusted EBITDA(1) 116,860 133,235 (12.3 ) 364,298 406,662 (10.4 ) Adjusted EBITDA as a percentage of revenue(1) 29.9 % 32.8 % 31.3 % 33.5 % (1) See “FINANCIAL MEASURES AND RATIOS”. Canadian onshore drilling statistics:(1) 2025 2024 Precision Industry(2) Precision Industry(2) Average number of active land rigs for quarters ended: March 31 74 214 73 208 June 30 50 127 49 134 September 30 63 176 72 207 Year to date average 62 172 65 183 (1) Canadian operations only. (2) Baker Hughes rig counts. United States onshore drilling statistics:(1) 2025 2024 Precision Industry(2) Precision Industry(2) Average number of active land rigs for quarters ended: March 31 30 572 38 602 June 30 33 556 36 583 September 30 36 525 35 565 Year to date average 33 551 36 583 (1) United States lower 48 operations only. (2) Baker Hughes rig counts. 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) 2025 2024 % Change 2025 2024 Revenue 74,612 73,074 2.1 207,878 225,987 (8.0 ) Expenses: Operating 52,832 50,608 4.4 153,914 167,128 (7.9 ) General and administrative 2,509 2,725 (7.9 ) 7,271 8,073 (9.9 ) Adjusted EBITDA(1) 19,271 19,741 (2.4 ) 46,693 50,786 (8.1 ) Adjusted EBITDA as a percentage of revenue(1) 25.8 % 27.0 % 22.5 % 22.5 % Well servicing statistics: Number of service rigs (end of period) 152 155 (1.9 ) 148 155 (4.5 ) Service rig operating hours 63,522 59,883 6.1 172,936 184,546 (6.3 ) (1) See “FINANCIAL MEASURES AND RATIOS”. 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 2024 Annual Report. 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) 2025 2024 2025 2024 Cash settled share-based incentive plans 9,285 (1,626 ) 12,350 28,810 Equity settled share-based incentive plans 1,544 1,440 5,522 3,517 Total share-based incentive compensation plan expense 10,829 (186 ) 17,872 32,327 Allocated: Operating 2,308 221 4,690 8,159 General and Administrative 8,521 (407 ) 13,182 24,168 10,829 (186 ) 17,872 32,327 Income Taxes During the quarter, the Company recognized a deferred income tax expense of $33 million, primarily attributable to the waiving of certain U.S. tax deductions. These deductions were waived to mitigate minimum taxes that the Corporation became subject to as a result of stronger operating results. Consequently, Precision expects to not be subject to U.S. income tax for several years. The waiving of these U.S. tax deductions has been accounted for as a change in tax estimate and adjusted prospectively, resulting in an increase to deferred tax expense and corresponding increase to the deferred tax liability. 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, finance charges, foreign exchange, gain on asset disposals and depreciation and amortization), as reported in our Condensed Interim Consolidated Statements of Net Earnings (Loss) 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) 2025 2024 2025 2024 Adjusted EBITDA by segment: Contract Drilling Services 116,860 133,235 364,298 406,662 Completion and Production Services 19,271 19,741 46,693 50,786 Corporate and Other (18,499 ) (10,551 ) (47,762 ) (56,753 ) Adjusted EBITDA 117,632 142,425 363,229 400,695 Depreciation and amortization 79,487 75,073 229,381 227,104 Gain on asset disposals (3,454 ) (3,323 ) (12,751 ) (14,235 ) Foreign exchange 717 849 (533 ) 772 Finance charges 13,751 16,914 44,368 53,472 Loss (gain) on investments and other assets (94 ) (150 ) 1,531 (330 ) Income taxes 33,697 13,879 56,271 37,512 Net earnings (loss) (6,472 ) 39,183 44,962 96,400 Non-controlling interests 289 — 945 — Net earnings (loss) attributable to shareholders (6,761 ) 39,183 44,017 96,400 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) 2025 2024 2025 2024 Capital spending by spend category Expansion and upgrade 35,314 7,709 81,617 30,501 Maintenance, infrastructure and intangibles 34,012 56,139 100,447 127,297 69,326 63,848 182,064 157,798 Proceeds on sale of property, plant and equipment (6,200 ) (5,647 ) (21,794 ) (21,825 ) Net capital spending 63,126 58,201 160,270 135,973 Proceeds from sale of investments and other assets — — — (3,623 ) Purchase of investments and other assets 10 7 21 7 Receipt of finance lease payments (209 ) (207 ) (626 ) (591 ) Changes in non-cash working capital balances (1,733 ) (19,149 ) (5,220 ) 9,266 Cash used in investing activities 61,194 38,852 154,445 141,032 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) 2025 2024 Current assets 449,676 501,284 Current liabilities (284,690 ) (338,692 ) Working capital 164,986 162,592 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) 2025 2024 Total non-current liabilities 848,943 935,624 Deferred tax liabilities (94,609 ) (47,451 ) Total long-term financial liabilities 754,334 888,173 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 (Loss), 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 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 plus current portion of 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. CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION AND STATEMENTS Certain statements contained in this news release, 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 2025; our capital expenditures, free cash flow allocation and debt reduction plans for 2025 and beyond; anticipated activity levels, demand for our drilling rigs, day rates and daily operating margins in 2025; the average number of term contracts in place for 2025; customer adoption of AlphaTM technologies and EverGreenTM suite of environmental solutions; 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; the impact of tariffs and trade disputes; 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, 2024, 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 news release 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. CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED) (Stated in thousands of Canadian dollars) September 30, 2025 December 31, 2024 ASSETS Current assets: Cash $ 38,311 $ 73,771 Accounts receivable 365,110 378,712 Inventory 46,255 43,300 Assets held for sale — 5,501 Total current assets 449,676 501,284 Non-current assets: Deferred tax assets 2,228 6,559 Property, plant and equipment 2,267,036 2,356,173 Intangibles 10,353 12,997 Right-of-use assets 59,358 66,032 Finance lease receivables 4,395 4,806 Investments and other assets 7,849 8,464 Total non-current assets 2,351,219 2,455,031 Total assets $ 2,800,895 $ 2,956,315 LIABILITIES AND EQUITY Current liabilities: Accounts payable and accrued liabilities $ 264,296 $ 314,355 Income taxes payable 2,355 3,778 Current portion of lease obligations 18,039 20,559 Total current liabilities 284,690 338,692 Non-current liabilities: Share-based compensation 11,278 13,666 Provisions and other 7,213 7,472 Lease obligations 48,111 54,566 Long-term debt 687,732 812,469 Deferred tax liabilities 94,609 47,451 Total non-current liabilities 848,943 935,624 Equity: Shareholders’ capital 2,264,396 2,301,729 Contributed surplus 79,591 77,557 Accumulated other comprehensive income 175,451 199,020 Deficit (856,817 ) (900,834 ) Total equity attributable to shareholders 1,662,621 1,677,472 Non-controlling interest 4,641 4,527 Total equity 1,667,262 1,681,999 Total liabilities and equity $ 2,800,895 $ 2,956,315 CONDENSEDINTERIM CONSOLIDATED STATEMENTS OF NET EARNINGS (LOSS) (UNAUDITED) Three Months Ended September 30, Nine Months Ended September 30, (Stated in thousands of Canadian dollars, except per share amounts) 2025 2024 2025 2024 Revenue $ 462,250 $ 477,155 $ 1,365,196 $ 1,434,157 Expenses: Operating 313,827 311,467 916,640 936,383 General and administrative 30,791 23,263 85,327 97,079 Earnings before income taxes, loss (gain) on investments and other assets, finance charges, foreign exchange, gain on asset disposals, and depreciation and amortization 117,632 142,425 363,229 400,695 Depreciation and amortization 79,487 75,073 229,381 227,104 Gain on asset disposals (3,454 ) (3,323 ) (12,751 ) (14,235 ) Foreign exchange 717 849 (533 ) 772 Finance charges 13,751 16,914 44,368 53,472 Loss (gain) on investments and other assets (94 ) (150 ) 1,531 (330 ) Earnings before income taxes 27,225 53,062 101,233 133,912 Income taxes: Current 1,133 2,297 3,307 4,659 Deferred 32,564 11,582 52,964 32,853 33,697 13,879 56,271 37,512 Net earnings (loss) $ (6,472 ) $ 39,183 $ 44,962 $ 96,400 Attributable to: Shareholders of Precision Drilling Corporation $ (6,761 ) $ 39,183 $ 44,017 $ 96,400 Non-controlling interests $ 289 $ — $ 945 $ — Net earnings (loss) per share attributable to shareholders of Precision Drilling Corporation: Basic $ (0.51 ) $ 2.77 $ 3.28 $ 6.74 Diluted $ (0.51 ) $ 2.31 $ 3.09 $ 6.73 CONDENSEDINTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) Three Months Ended September 30, Nine Months Ended September 30, (Stated in thousands of Canadian dollars) 2025 2024 2025 2024 Net earnings (loss) $ (6,472 ) $ 39,183 $ 44,962 $ 96,400 Unrealized gain (loss) on translation of assets and liabilities of operations denominated in foreign currency 30,777 (16,104 ) (49,327 ) 30,409 Foreign exchange gain (loss) on net investment hedge with U.S. denominated debt (14,715 ) 9,536 25,758 (19,283 ) Comprehensive income $ 9,590 $ 32,615 $ 21,393 $ 107,526 Attributable to: Shareholders of Precision Drilling Corporation $ 9,301 $ 32,615 $ 20,448 $ 107,526 Non-controlling interests $ 289 $ — $ 945 $ — CONDENSEDINTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) Three Months Ended September 30, Nine Months Ended September 30, (Stated in thousands of Canadian dollars) 2025 2024 2025 2024 Cash provided by (used in): Operations: Net earnings (loss) $ (6,472 ) $ 39,183 $ 44,962 $ 96,400 Adjustments for: Long-term compensation plans 5,608 2,620 11,998 14,490 Depreciation and amortization 79,487 75,073 229,381 227,104 Gain on asset disposals (3,454 ) (3,323 ) (12,751 ) (14,235 ) Unrealized foreign exchange 1,380 815 (1,034 ) 965 Finance charges 13,751 16,914 44,368 53,472 Income taxes 33,697 13,879 56,271 37,512 Other 2 27 (19 ) 120 Loss (gain) on investments and other assets (94 ) (150 ) 1,531 (330 ) Income taxes paid (593 ) (508 ) (4,760 ) (4,842 ) Income taxes recovered 5 58 5 58 Interest paid (26,987 ) (31,692 ) (60,245 ) (69,435 ) Interest received 211 426 966 1,558 Funds provided by operations 96,541 113,322 310,673 342,837 Changes in non-cash working capital balances (20,672 ) (33,648 ) (23,890 ) (23,545 ) Cash provided by operations 75,869 79,674 286,783 319,292 Investments: Purchase of property, plant and equipment (69,326 ) (63,797 ) (182,064 ) (157,747 ) Purchase of intangibles — (51 ) — (51 ) Proceeds on sale of property, plant and equipment 6,200 5,647 21,794 21,825 Proceeds from sale of investments and other assets — — — 3,623 Purchase of investments and other assets (10 ) (7 ) (21 ) (7 ) Receipt of finance lease payments 209 207 626 591 Changes in non-cash working capital balances 1,733 19,149 5,220 (9,266 ) Cash used in investing activities (61,194 ) (38,852 ) (154,445 ) (141,032 ) Financing: Issuance of long-term debt 128,780 10,900 138,780 10,900 Repayment of long-term debt (138,475 ) (59,658 ) (239,439 ) (162,506 ) Repurchase of share capital (8,802 ) (16,891 ) (54,058 ) (50,465 ) Issuance of common shares from the exercise of options 208 495 208 686 Debt amendment fees (697 ) — (697 ) (1,317 ) Distributions to non-controlling interest (831 ) — (831 ) — Lease payments (3,854 ) (3,586 ) (11,363 ) (10,005 ) Funding from non-controlling interest — 4,392 — 4,392 Cash used in financing activities (23,671 ) (64,348 ) (167,400 ) (208,315 ) Effect of exchange rate changes on cash 609 (403 ) (398 ) 177 Increase (decrease) in cash (8,387 ) (23,929 ) (35,460 ) (29,878 ) Cash, beginning of period 46,698 48,233 73,771 54,182 Cash, end of period $ 38,311 $ 24,304 $ 38,311 $ 24,304 CONDENSEDINTERIM 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, 2025 $ 2,301,729 $ 77,557 $ 199,020 $ (900,834 ) $ 1,677,472 $ 4,527 $ 1,681,999 Net earnings for the period — — — 44,017 44,017 945 44,962 Other comprehensive income for the period — — (23,569 ) — (23,569 ) — (23,569 ) Share options exercised 299 (91 ) — — 208 — 208 Settlement of Executive Performance and Restricted Share Units 11,651 (2,790 ) — — 8,861 — 8,861 Distributions to non-controlling interest — — — — — (831 ) (831 ) Share repurchases (49,889 ) — — — (49,889 ) — (49,889 ) Redemption of non-management directors share units 606 (606 ) — — — — — Share-based compensation expense — 5,521 — — 5,521 — 5,521 Balance at September 30, 2025 $ 2,264,396 $ 79,591 $ 175,451 $ (856,817 ) $ 1,662,621 $ 4,641 $ 1,667,262 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 Settlement of Executive Performance and Restricted Share Units 21,846 (1,479 ) — — 20,367 — 20,367 Share options exercised 978 (292 ) — — 686 — 686 Share repurchases (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 — — — — — 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 2025 THIRD QUARTER RESULTS CONFERENCE CALL AND WEBCAST Precision Drilling Corporation has scheduled a conference call and webcast to begin promptly at 11:00 a.m. MT (1:00 p.m. ET) on Thursday, October 23, 2025. To participate in the conference call please register at the URL link below. Once registered, you will receive a dial-in number and a unique PIN, which will allow you to ask questions. https://register-conf.media-server.com/register/BI0700f4f25d0e4213b72b522814e1dd66 The call will also be webcast and can be accessed through the link below. A replay of the webcast call will be available on Precision’s website for 12 months. https://edge.media-server.com/mmc/p/3c9ztnwj About Precision Precision is a leading provider of safe and environmentally responsible High Performance, High Value services to the energy industry, offering customers access to an extensive fleet of Super Series drilling rigs. Precision has commercialized an industry-leading digital technology portfolio known as Alpha™ that utilizes advanced automation software and analytics to generate efficient, predictable, and repeatable results for energy customers. Our drilling services are enhanced by our EverGreen™ suite of environmental solutions, which bolsters our commitment to reducing the environmental impact of our operations. Additionally, Precision offers well service rigs, camps and rental equipment all backed by a comprehensive mix of technical support services and skilled, experienced personnel. Precision is headquartered in Calgary, Alberta, Canada and is listed on the Toronto Stock Exchange under the trading symbol “PD” and on the New York Stock Exchange under the trading symbol “PDS”. Additional Information For further information, please contact: Lavonne Zdunich, CPA, CA Vice President, Investor Relations 403.716.4500 800, 525 - 8th Avenue S.W. Calgary, Alberta, Canada T2P 1G1 Website: www.precisiondrilling.com

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