PDS

Helmerich & Payne Stock, A Lot More Upside Than Meets the Eye Precision Drilling (NYSE:PDS) reported higher second-quarter revenue as record Canadian drilling activity and a rebound in U.S. rig utilization offset weaker international results, while the company said it remains on track to reduce debt and repurchase shares during 2026. Second-quarter revenue increased 11% from a year earlier, with North American revenue up 14% and international revenue down 11%, President and Chief Executive Officer Carey Ford said on the company’s earnings call. Year-to-date revenue has increased 8%, according to Ford. → Refiner Stocks Are Near Record Highs—Can Iran-Driven Margins Keep Them There? Adjusted EBITDA was C$97 million for the quarter, or C$95 million before a share-based compensation recovery, compared with C$108 million, or C$112 million before share-based compensation expense, in the prior-year quarter. Precision posted a net loss of C$1 million, compared with net earnings of C$16 million in the second quarter of 2025. Cash from operations totaled C$146 million, matching the prior-year quarter. The company spent C$76 million on capital expenditures, including C$46 million for sustaining and infrastructure investments and C$30 million for rig upgrades. It reduced debt by C$50 million and used C$12 million for share repurchases during the quarter. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now Precision’s Canadian drilling business averaged a record 61 active rigs in the second quarter, up 11 rigs from a year earlier and one rig above its prior guidance. Reported daily operating margins were C$13,855, including C$3 million in customer upfront upgrade payments. Excluding those payments, normalized daily operating margins were C$13,331, above the upper end of the company’s previous guidance range but below C$13,866 a year earlier. Chief Financial Officer Dustin Honing said the year-over-year margin difference reflected rig mix, including a larger proportion of Super Singles and doubles operating during the spring season. → 3 Value ETFs to Consider as Growth Stocks Lag Behind For the third quarter, Precision expects Canadian average rig activity in the low-to-mid-70s, compared with 63 rigs in the prior-year third quarter. Daily operating margins are expected to range from C$12,000 to C$13,000 as more Super Singles work. Ford said the company expects its Super Triple and Super Single fleets to be fully utilized through year-end and expects Canadian activity to remain between 70 and 80 rigs during the third and fourth quarters. The company was operating 75 Canadian rigs at the time of the call and expected to reach 80 rigs within two weeks. Its Canadian fleet includes 32 Super Triple rigs available for Montney and related natural gas and condensate markets, as well as 48 Super Singles available for SAGD, Clearwater and other heavy-oil applications. Ford said Precision expects to deliver its 20th Super Single pad rig in September, followed by major Super Triple upgrades in October and November. While the company has increased some Canadian prices, Ford said broader pricing momentum has not yet fully emerged. New upgraded rigs entering service should support fleet pricing because they will be positioned at the top of the market, he added. In the U.S., Precision averaged 35 active rigs in the second quarter, down from 37 sequentially but up from 33 a year earlier. Daily operating margins fell to C$6,212 from C$9,291 in the first quarter, below the company’s prior guidance range. Honing attributed the decline primarily to rig reactivation costs. Precision increased its U.S. operating rig count from 32 in April to 42 at June 30, including seven major reactivations during the quarter. Revenue per utilization day increased because of stronger pricing and greater technology adoption, he said, but the costs of staffing and preparing rigs for deployment weighed on profitability. Precision expects to average a rig count in the low 40s during the third quarter, its highest level since 2023, with daily operating margins of C$7,000 to C$8,000. The company expects about five rigs to be reactivated during the quarter. Honing said reactivation costs can range from roughly C$1,500 to more than C$2,000 per day. Ford said the company expects margins to approach C$10,000 per day in the fourth quarter as reactivation activity becomes less significant. He said Precision has approximately 50 rigs that are warm, upgraded or recently active and could return to work without requiring substantial reactivation spending. The company expects U.S. rig count to reach the high 40s before year-end if current customer discussions progress. Precision said it has secured rate increases in the U.S. market, with increases varying by contract. Ford said some customers have accepted low-single-digit-thousands of Canadian dollars per day in increases, while rigs that had been priced below market have seen increases of up to C$5,000 per day. Honing said fleetwide pricing gains could average about C$500 to C$1,000 per day per quarter. Ford said customer contract preferences currently support terms generally ranging from six months to one year, although some customers are seeking two-year contracts to secure high-quality rigs. He added that the company is targeting business with existing customers and selected new customers that value its digital technology, safety and operating performance. International operations averaged seven active rigs during the quarter, while average day rates declined 5% year over year to C$50,524. Margins were affected by rig mix, with one Kuwait rig idled and an additional rig working in Saudi Arabia, as well as elevated costs related to Middle East tensions. Precision also incurred C$3 million in one-time restructuring costs from closing its Dubai office. The company expects the move, which shifts leadership closer to customers in Saudi Arabia and Kuwait, to generate annualized savings of C$3 million. The company expects to operate seven international rigs in the third quarter, with margins below prior-year levels because of elevated regional operating costs. It secured a five-year contract early in the second quarter for its idled Kuwait rig, which is expected to bring the international count to eight working rigs by mid-2027 after recertification and upgrades. Ford said the Kuwait reactivation is expected to require approximately C$12 million to C$15 million in capital, with some spending this year and more next year. Ford also highlighted Precision’s technology initiatives. Its AlphaARMS robotics rig has operated for two and a half years in the Montney, drilling 54 wells, handling more than 3 million feet of tubulars hands-free and recording 17,000 man-free hours on the rig floor. The company received a grant from Emissions Reduction Alberta to support development of a robotics solution for a Canadian Super Triple 1200 rig and plans to open a Canadian Alpha Remote Operations Center in Calgary the following month. Precision maintained its 2026 capital expenditure budget of C$265 million, including C$172 million for sustaining and infrastructure spending and C$93 million for upgrades, with spending weighted toward Canada. It expects full-year depreciation of C$320 million, cash interest expense of about C$45 million and SG&A of approximately C$95 million before share-based compensation. The company reiterated plans to reduce debt by C$100 million in 2026 and allocate up to 50% of free cash flow to share repurchases. At midyear, it had reduced debt by C$75 million and repurchased C$16 million of shares. Precision reported an average cost of debt of 6.7% and more than C$502 million of liquidity. Honing also addressed a Canada Revenue Agency notice of reassessment related to 2018. Precision plans to file a notice of objection and said it and its external tax advisers believe its filing position is appropriate. While the company considers an adverse outcome unlikely, Honing said the maximum potential liability disclosed for future reassessments could be C$155 million plus interest. Precision said any required payment could accelerate the point at which it becomes cash taxable, but management said its capital-allocation plans have not changed. Precision Drilling Corporation (NYSE: PDS) is a Calgary, Alberta–based oilfield services company that has provided drilling solutions since its founding in 1951. With more than seven decades of industry experience, the company delivers contract drilling services, directional and horizontal drilling, well servicing, and a suite of specialized equipment designed to meet the evolving needs of exploration and production companies worldwide. The company's core business activities include operating a fleet of onshore drilling rigs, offering managed pressure drilling, measurement-while-drilling (MWD) and logging-while-drilling (LWD) services, and providing completion and workover rigs. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Precision Drilling Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

CALGARY, Alberta, July 28, 2026 (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, (gain) loss on investments and other assets, finance charges, foreign exchange, gain on asset disposals and depreciation and amortization), 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 2026 second quarter results, highlighted by robust heavy oil drilling and well service activity in Canada and improving rig utilization in the U.S. Financial Highlights Revenue increased 11% to $453 million, compared with $407 million in the second quarter of 2025, supported by stronger activity in Canada and the U.S., which more than offset lower international results and reduced Canadian upfront capital payments. Adjusted EBITDA(1) was $97 million, down 10% from $108 million in 2025, primarily due to higher U.S. rig reactivation costs and lower international margins related to geopolitical tensions and a change in rig mix. Results in 2026 also included $3 million of one-time restructuring charges, plus a $2 million share-based compensation recovery. In comparison, share-based compensation was a $4 million expense in 2025. Net loss attributable to shareholders in the second quarter was $1 million compared with net earnings of $16 million in 2025. Our net loss in 2026 was primarily due to increased depreciation expense of $11 million from a previously communicated change in useful life estimates. Cash provided by operations during the quarter was $146 million, allowing the Company to reduce debt by $50 million and repurchase $12 million of common shares. Capital expenditures were $76 million compared to $53 million in the second quarter of 2025. Year-to-date, we have invested $141 million in our equipment and continue to expect capital expenditures of $265 million in 2026. Operational Highlights Canada averaged 61 active rigs, up 22% compared to 50 active rigs in the second quarter of 2025, outpacing Canadian industry activity, which increased 16%(2). Canadian revenue per utilization day decreased to $35,448 from $37,725 in 2025, primarily due to lower upfront capital payments of $3 million in 2026 compared to $7 million in same period last year and a higher Super Single rig mix, as robust heavy oil activity increased utilization of these rigs 31% year over year. U.S. averaged 35 active rigs in the second quarter of 2026 versus 33 in 2025, outperforming U.S. industry activity, which declined 3%(2). U.S. revenue per utilization day increased to US$32,802 from US$31,113 in the same period last year, driven by higher day rates on new contracts and increased technology revenue. Internationally, we had seven active rigs during the quarter, with three in Saudi Arabia and four in Kuwait, compared with two and five rigs, respectively, in the second quarter of 2025. The resulting change in rig mix lowered revenue per utilization day to US$50,524 from US$53,129 in the same period last year. Internationally, we secured an additional five-year drilling rig contract in Kuwait for an existing rig, increasing our active rig count to eight by mid-2027 following planned recertifications and upgrades. Canadian well servicing rig operating hours increased 25% compared to the same quarter in 2025, primarily due to stronger customer demand driven by higher oil prices, resulting in a 38% increase in Adjusted EBITDA. (1)  See "FINANCIAL MEASURES AND RATIOS."(2)  See "SEGMENT REVIEW OF CONTRACT DRILLING SERVICES."MANAGEMENT COMMENTARY Precision’s President and CEO, Carey Ford, provided the following commentary: "Precision delivered another quarter of solid operational execution. We continued to advance our 2026 strategic priorities, driving revenue growth through competitive differentiation and deeper customer relationships, free cash flow generation, and returning capital to shareholders. Revenue increased 11% year over year, reflecting increased North American activity levels, higher Alpha™ and EverGreen™ contributions, and improved pricing. Higher than expected rig reactivations in the quarter, scheduled upgraded rig deliveries in the second half of the year, and continued growth in our contract book position Precision to deliver stronger financial performance through the balance of 2026 and into 2027. "During the first half of the year, Precision generated consistent operating cash flow, allowing us to reduce debt by $75 million and repurchase $16 million of our shares. At the same time, we continued to invest in high-return fleet upgrades and technology initiatives that support our recent activity gains, strengthen our competitive position, and ensure long-term value creation for our shareholders. "In Canada, activity increased 22% year over year, supported by robust customer demand for our Super Triple and Super Single rigs. Improving producer economics and expanded market access continue to support an attractive Canadian drilling environment, most notably in the condensate and heavy oil basins. We expect activity during the second half of the year to remain above prior year levels. "In the U.S., our business is reaching an inflection point with our active rig count steadily increasing through the quarter and standing at 43 rigs today. Higher day rates, increased technology adoption, and improving oil-directed activity supported year over year revenue growth. We are encouraged by improving customer sentiment and continue to see opportunities to deepen relationships with new and existing customers. While second quarter margins were below our long-term expectations, the actions we are taking position us for meaningful margin expansion, with fourth quarter margins expected to approach US$10,000 per utilization day. "Technology remains a key competitive differentiator for Precision. Our Alpha™ digital platform and automation systems are improving drilling performance, minimizing downtime, and delivering measurable value for our customers. Combined with our high-performance fleet and experienced crews, these capabilities continue to strengthen customer relationships and support sustainable revenue and profitability growth. "Internationally, our teams continue to execute safely and reliably despite geopolitical uncertainty in the region. During the quarter, we secured an additional five-year contract for an existing Kuwait rig, reinforcing resiliency of our customer relationships and our operational reputation in the region. With this new contract, we expect our international rig count to increase from seven to eight during mid-2027. "Our Completion and Production Services business delivered outstanding results during the quarter. Operating hours increased 25% year over year as favorable oil prices and robust producer activity drove increased demand for our well servicing fleet. As Canada's premier well service provider, our scale, market position, and customer relationships position us to capture value from increased customer demand through the remainder of the year. "Looking ahead, we remain optimistic about the remainder of 2026. Constructive commodity prices, elevated customer demand for high-performance drilling rigs and well service equipment, improving contract coverage, and continued momentum across our businesses support a positive outlook. While geopolitical developments and commodity price volatility remain important considerations, we believe Precision is well positioned to generate long-term value through operational excellence, technology leadership, disciplined capital allocation, and a continued focus on shareholder returns,” concluded Mr. Ford. SELECT FINANCIAL AND OPERATING INFORMATION Financial Highlights (1)  See "FINANCIAL MEASURES AND RATIOS." Operating Highlights (1)  The service rig fleet and service rig operating hours exclude our U.S. operations that we wound down in the second quarter of 2025. Drilling Activity (1)  Average number of drilling rigs working or moving. Financial Position (1)  See "FINANCIAL MEASURES AND RATIOS." Summary for the three months ended June 30, 2026: Revenue in the second quarter was $453 million, up $46 million from 2025. Canadian revenue increased by $36 million, as higher oil prices supported increased demand for drilling and well servicing activity, partially offset by lower upfront capital payments of $3 million compared with $7 million in 2025. U.S. revenue increased by $15 million, driven by higher rig utilization and average day rates. Adjusted EBITDA decreased 10% to $97 million from $108 million in the second quarter of 2025, primarily due to higher U.S. rig reactivation costs and lower international margins resulting from geopolitical tensions and a change in rig mix. Adjusted EBITDA also included $3 million of international restructuring costs to better align our organizational structure, partially offset by a $2 million share-based compensation recovery. For additional information on share-based compensation, please refer to "Other Items" later in this news release. Net loss attributable to shareholders was $1 million or $0.09 per share compared to net earnings of $16 million or $1.21 per share for the same period last year. The decrease was due to increased depreciation expense of $11 million from the change in useful life estimates. For additional information on depreciation, please refer to "Other Items" later in this news release. Cash provided by operations was $146 million in the second quarter of 2026. During the quarter, the Company repurchased 99,416 shares for $12 million and reduced long-term debt by $50 million. Precision ended the quarter with $66 million of cash and more than $500 million in available liquidity. In Canada, our operating margin(1) was $13,855 compared to $15,306 in the same period last year, primarily due to lower upfront capital payments and a higher Super Single rig mix, as robust heavy oil activity increased utilization of these rigs 31% year over year. In the U.S., our operating margin was US$6,212, down from US$9,026 in 2025. Although revenue increased during the quarter, margins were impacted by higher rig reactivations. Reactivation costs averaged US$2,387 per utilization day as we reactivated seven rigs and positioned the business to support higher activity levels, compared with US$648 per utilization day in 2025 when four rigs were reactivated. Internationally, we had seven active rigs during the quarter, with three in Saudi Arabia and four in Kuwait compared with two and five rigs, respectively, in the second quarter of 2025. The resulting change in rig mix lowered revenue per utilization day to US$50,524 from US$53,129 in the same period last year. We realized revenue of US$32 million in the second quarter of 2026 compared to US$36 million in 2025 primarily due to the change in rig mix combined with a 6% decline in drilling activity. Completion and Production Services revenue was $66 million, an increase of $12 million compared with 2025, primarily due to stronger customer demand driven by higher oil prices. Adjusted EBITDA was $14 million, representing 21%(2) of revenue, compared to 18% in the second quarter of 2025. Capital expenditures were $76 million compared to $53 million in the second quarter of 2025 and included $46 million for the maintenance of existing assets and infrastructure and $30 million for upgrades(2). Subsequent to quarter end, Precision received a Notice of Reassessment (NOR) from the Canada Revenue Agency (CRA) relating to its 2018 tax year, denying certain deductions. The Company and its tax advisors believe the Company's tax filing position is appropriate and intends to vigorously contest the 2018 NOR and any additional reassessments. Please refer to "Other Items" later in this news release for more information. (1)  Defined as revenue per utilization day less operating costs per utilization day. (2)  See "FINANCIAL MEASURES AND RATIOS." Summary for the six months ended June 30, 2026: Revenue for the first six months of 2026 was $979 million, an increase of $76 million from the same period in 2025. Canadian revenue increased by $49 million due to higher North America drilling and well servicing activity, while U.S. revenue increased by $40 million due to improved drilling activity. These increases were partially offset by lower international drilling results and upfront capital payments in Canada. Adjusted EBITDA decreased 10% to $221 million from $246 million in 2025, primarily due to higher share-based compensation expense as our share price appreciated 11% during the first six months of 2026, and increased operating costs in the U.S. and internationally. For additional information on share-based compensation, please refer to "Other Items" later in this news release. Net earnings attributable to shareholders was $16 million or $1.25 per share, compared to $51 million or $3.75 per share, in the same period last year. The decrease was primarily due to increased depreciation expense of $22 million from the change in useful life estimates. For additional information on depreciation, please refer to "Other Items" later in this news release. General and administrative expenses were $68 million compared to $55 million in the first six months of 2025, with the increase primarily due to higher share-based compensation expense and international restructuring costs. Cash provided by operations was $209 million and the Company repurchased 136,290 shares for $16 million and reduced long-term debt by $75 million. Precision ended the quarter with $66 million of cash and more than $500 million in available liquidity. Capital expenditures were $141 million compared to $113 million in the first six months of 2025 and included $81 million for the maintenance of existing assets and infrastructure and $61 million for upgrades. 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 2026 strategic priorities and the progress made during the second quarter are summarized below. Drive revenue growth and deepen customer relationships through contracted upgrades, continuous operational excellence, and by leveraging our performance-driven technology as a key competitive differentiator. Maximize free cash flow through strategic capital deployment and sustained cost discipline. Enhance shareholder returns by reducing debt by $100 million in 2026 and allocating up to 50% of free cash flow, before debt repayments, directly to shareholders. (1)  See "FINANCIAL MEASURES AND RATIOS." OUTLOOK Ongoing geopolitical uncertainty and relatively tight global crude oil inventories have reinforced the importance of secure and reliable energy supply, supporting constructive oil prices and customer investment confidence. While customers remain focused on capital discipline and returns, we continue to see sustained demand for high-performance drilling rigs and well service equipment. Assuming commodity prices remain supportive and market conditions do not materially change, we expect North American drilling and completion activity to improve modestly through the remainder of the year. In Canada, demand for our Super Series rigs remains robust, supporting one of the most active drilling environments we have experienced in recent years. Improving heavy oil and condensate prices continue to enhance producer economics and support steady upstream investment in both oil and natural gas formations. Assuming a constructive commodity price environment, we expect our Super Triple and Super Single rigs to be nearly fully utilized through the fall drilling season. In the U.S., increasing oil prices, disruptions in global crude supply, and concerns over low inventory levels have contributed to a more constructive outlook for oil-directed drilling activity. As a result, U.S. land drilling activity has strengthened in recent months and we increased our oil-weighted activity while maintaining a strong position in key natural gas basins, including the Haynesville and Marcellus. We currently have 43 active rigs and expect our active rig count to remain in the low 40s with continued rig churn during the third quarter. We remain focused on deepening customer relationships and strengthening margins, which we expect to increase throughout the remainder of the year. Internationally, our crews continue to safely deliver services to our customers despite minor activity disruptions and incremental costs related to the Middle East conflict. We have seven active rigs, including four in Kuwait and three in the Kingdom of Saudi Arabia, all under five-year term contracts that extend into 2027 and 2028. Activity is expected to remain at seven rigs until mid-2027, when one of our idle Kuwait rigs is scheduled to return to work under a five-year contract following planned recertifications and upgrades. Crew-related operating costs are expected to remain elevated while regional tensions persist. We continue to seek opportunities for our one idle international rig. As Canada's premier well service provider, we remain optimistic about the long-term outlook for our Completion and Production Services business. Expanded market access, robust heavy oil drilling and production activity, favorable oil prices and our High Performance, High Value service offering continue to support customer investment and demand for our services. We believe these factors position us well to benefit from strong activity levels and pricing, assuming no significant change in market conditions. Overall, our outlook for the remainder of the year is optimistic, with potential upside supported by sustained strength in oil prices and continued customer investment. In Canada, we expect third quarter operating margins to average between $12,000 and $13,000 per utilization day, with a higher proportion of Super Singles working this fall compared with the prior year. In the U.S., revenue per utilization day is expected to remain stable, while operating margins are anticipated to range between US$7,000 and US$8,000 per utilization day with cost pressures persisting due to additional rig reactivation expenses. While U.S. margin performance in the second and third quarters remains below our long-term expectations, fourth quarter margins are expected to approach US$10,000 per utilization day. Contracts The following chart outlines the average number of drilling rigs under term contract by quarter as of July 28, 2026. For the quarter ending after June 30, 2026, 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. SEGMENTED FINANCIAL RESULTS Precision’s operations are reported in two segments: Contract Drilling Services, which includes our drilling rigs, procurement and distribution of oilfield supplies, and the manufacture, sale and repair of drilling equipment; and Completion and Production Services, which includes our service rigs, oilfield equipment rental, and camp services. SEGMENT REVIEW OF CONTRACT DRILLING SERVICES (1)  See "FINANCIAL MEASURES AND RATIOS." (1)  Canadian operations only.(2)  Source: Baker Hughes rig counts. (1)  United States lower 48 operations only.(2)  Source: Baker Hughes rig counts. SEGMENT REVIEW OF COMPLETION AND PRODUCTION SERVICES (1)  See "FINANCIAL MEASURES AND RATIOS."(2)  The service rig fleet and service rig operating hours exclude our U.S. operations that we wound down in the second quarter of 2025. 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 2025 Annual Report. A summary of expense (recovery) amounts under these plans during the reporting periods are as follows: Contingencies In the 2018 to 2023 tax years, Precision deducted certain intercompany dividends received in connection with a preferred share financing. In late July 2026, Precision received a NOR from the CRA relating to its 2018 tax year, denying the deduction of such intercompany dividends. In addition to the 2018 NOR, Precision received a proposal from the CRA for the 2019 to 2022 tax years on the same basis, but no reassessments have been received at this time. Precision will file a Notice of Objection to the 2018 NOR and intends to vigorously contest the 2018 NOR as well as any additional reassessments that may be issued by the CRA in respect of the intercompany dividends received. The Company and its tax advisors believe that the Company’s tax filing position is appropriate. As such, Precision has not recognized a liability in its unaudited interim consolidated financial statements with respect to the reassessment. Due to existing tax pools, the CRA’s reassessment of the 2018 tax year and anticipated reassessments of the 2019 to 2023 tax years are not expected to impact taxes payable until the 2024 to 2027 tax years. Additional notices of reassessment for the subsequent tax years are expected to be issued over the next 24 months. If it is ultimately determined that the Company is not entitled to deduct the intercompany dividends, we estimate a maximum tax liability of approximately $155 million, excluding interest. Once reassessments are issued, Precision will be required to pay 50% of the assessed tax liability and interest, until the issue has been resolved. If Precision is ultimately successful in defending its position, then any taxes and interest paid to the CRA will be refunded plus interest, and if the CRA is successful then any remaining taxes and interest payable will have to be remitted by Precision. Depreciation In 2025, we completed a detailed review of our drilling rig equipment and revised the estimated useful life of drill pipe as more complex drilling programs have reduced the useful life of this asset class. This revision resulted in additional depreciation expense of $11 million in the second quarter of 2026. FINANCIAL MEASURES AND RATIOS 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 2026 strategic priorities; our capital expenditures, free cash flow allocation and debt reduction plans for 2026 and beyond; anticipated activity levels, demand for our drilling rigs, day rates and daily operating margins in 2026; the average number of term contracts in place for 2026; customer adoption of Alpha™ technologies and EverGreen™ suite of environmental solutions; and potential commercial opportunities and rig contract renewals. 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; continued market demand for our drilling rigs; our ability to deliver rigs to customers on a timely basis; the impact of an increase/decrease in capital spending; the general stability of the economic and political environments in the jurisdictions where we operate in; and anticipated rig utilization, operating margins, active rig counts and customer activity levels. 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 disadvantage; 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 physical, regulatory and transition impacts of climate change; the impact of weather and seasonal conditions on operations and facilities; the impact of tariffs, trade disputes, sanctions, export controls and other trade restrictions; competitive operating risks inherent in contract drilling, well servicing and ancillary oilfield services; geopolitical instability or armed conflicts, including in regions where we operate may impact operations, personnel, logistics, customer activity and commodity markets; 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; the impact of inflation and supply chain disruptions; business interruptions related to cybersecurity risks; 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, acts of war, social, civil and political unrest in the foreign jurisdictions or regions 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, 2025, which may be accessed on Precision’s SEDAR+ profile at or under Precision’s EDGAR profile. 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. CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED) CONDENSED INTERIM CONSOLIDATED STATEMENTS OF NET EARNINGS (LOSS) (UNAUDITED) CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED) 2026 SECOND 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 Wednesday, July 29, 2026. 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/BI0caa23577c564e18afa1950d4e8a0869 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/3tuuogfm 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 and NYSE Texas, Inc., under the trading symbol “PDS”. Additional Information For further information, please contact: Lavonne Zdunich, CPA, CAVice President, Investor Relations403.716.4500 800, 525 - 8th Avenue S.W.Calgary, Alberta, Canada T2P 1G1Website: www.precisiondrilling.com

Precision reported improving utilization—+7% in Canada and +24% in the U.S.—with 123 rigs operating, generated CAD 63 million of cash from operations in Q1, spent CAD 65 million on capex (CAD 35m sustaining, CAD 30m upgrades), and posted adjusted EBITDA of CAD 124 million while net earnings fell to CAD 18 million. Management raised full‑year 2026 capex to CAD 265 million (including CAD 97 million for upgrades) to fund two contracted Canadian Super Triple upgrades and expects record Q2 Canada activity (avg. ~60 rigs, exiting in the mid‑70s) plus U.S. price increases that should lift H2 day rates and margins. International operations remain active despite Middle East logistics and a CAD 2 million Saudi reactivation charge, while the company targets net debt/adjusted EBITDA below 1x, plans to cut debt by at least CAD 100 million in 2026, and may allocate up to 50% of free cash flow to buybacks with > CAD 433 million in liquidity. Interested in Precision Drilling Corporation? Here are five stocks we like better. Helmerich & Payne Stock, A Lot More Upside Than Meets the Eye Precision Drilling (NYSE:PDS) executives highlighted improving utilization, cash generation, and a more constructive outlook for North American activity during the company’s first-quarter 2026 results conference call. Management also discussed higher planned capital spending tied to contracted rig upgrades and provided updates on international operations amid ongoing Middle East tensions. Vice President of Investor Relations Lavonne Zdunich said utilization improved versus the first quarter of 2025, rising 7% in Canada and 24% in the U.S., even as industry rig counts declined 7% in both markets. Zdunich added Precision had 123 rigs operating globally in the quarter and “remained the second most active driller in North America.” → Meta Posted Its Best Sales Growth Since 2021—So Why Did Shares Fall? CFO Dustin Honing said Precision generated CAD 63 million of cash from operations in Q1 despite what he described as a “recurring and expected heavy Q1 working capital build.” Capital expenditures totaled CAD 65 million, including CAD 35 million for sustaining and infrastructure and CAD 30 million for rig upgrades. Honing said the company reduced debt by CAD 25 million and allocated CAD 4 million to share buybacks during the quarter. Adjusted EBITDA was CAD 124 million, or CAD 143 million before share-based compensation, compared with CAD 137 million (and CAD 140 million before share-based compensation) in Q1 2025. Honing said operating results exceeded the prior year but were offset by a larger stock-based compensation accrual as Precision’s share price appreciated 39% in the quarter. Net earnings were CAD 18 million, down from CAD 35 million a year earlier. → Verizon’s Signal Strength: The Turnaround Call Is Loud and Clear In Canada, Honing said drilling activity averaged 79 active rigs, up five rigs from Q1 2025. Reported Q1 daily operating margins were CAD 14,282, compared with CAD 14,780 a year earlier, which he said was within prior guidance. He attributed the slight margin impact to rig mix, with stronger winter demand requiring a higher proportion of Super Single and doubles rigs. In the U.S., the company averaged 37 active rigs, flat sequentially and up seven rigs from Q1 2025. Daily operating margins rose to $9,291 from $8,754 in the fourth quarter, “slightly exceeding” guidance, Honing said. → 5 Stocks to Buy in May Before the Next AI Surge Hits Internationally, Precision averaged seven active rigs, down eight rigs from the prior-year quarter. International day rates averaged $51,596, up 4% year-over-year, which Honing said was “all due to rig move revenues.” He said margins were affected by one Kuwait rig coming down, partially offset by one reactivated rig in Saudi Arabia. The company incurred $2 million of one-time charges tied to the Saudi reactivation and also recognized additional logistics costs related to the Middle East conflict. In the company’s CMP segment, adjusted EBITDA was CAD 18 million, in line with Q1 2025. Honing said increased well servicing demand in Canada more than offset the impact of winding down U.S. CMP operations in Q2 2025. Looking to Q2 2026, Honing said Precision expects “record activity levels” in Canada, supported by demand and prior-year upgrades that expanded pad drilling capabilities, allowing rigs to work through spring breakup. Precision expects average Q2 Canadian active rig count of approximately 60 rigs, a 20% increase from 50 in Q2 2025, and expects to end the quarter in the “mid-70s.” Canadian operating margins are expected to range between CAD 12,000 and CAD 13,000 per day, slightly lower due to mix, with Honing noting the prior-year quarter benefited from one-time customer upfront payments for upgrades. In the U.S., Honing said early Q2 featured increased contract churn with multiple rigs idle between jobs, which he expects will “correct over the next month or so,” with the rig count rising to 35 rigs by next week and exiting the quarter in the “high 30s.” For Q2, U.S. operating margins are expected to be $7,500 to $8,500 per day due to reactivation costs tied to deployments through Q2 and into Q3. He said Precision is “in the process of implementing price increases” that should flow through the back half of 2026. CEO Carey Ford told analysts the company is having pricing increase discussions in the U.S. and expects those to have “a meaningful impact” on day rates and margins in the second half of the year, while reiterating Precision typically provides margin guidance only one quarter forward. He also argued the market may be tighter than headline rig availability suggests, citing the capital and time needed to reactivate rigs and crew them. Ford said most of the rig count changes in Q2 reflect replacing churn and are “not really reflective of a market change in demand,” adding he expects oil-driven demand to show up more in Q3 and Q4. He said Precision expects U.S. activity to hit an “inflection point this summer” and said the company is ready to meet demand, including by carrying extra crews through Q2. When asked about the broader U.S. market, Ford said an industry rig count increase of “40 or 50 rigs does not seem unreasonable,” with expected increases centered in the Permian and Rockies, while also noting minor increases in the Marcellus and Haynesville. He added private operators “got on the phone a little bit quicker” about rig availability, but public companies have also begun discussing rig additions. Honing raised full-year 2026 capital spending guidance to CAD 265 million from CAD 245 million, including CAD 168 million for sustaining and infrastructure and CAD 97 million for upgrades. The increase includes two Canadian Super Triple rig upgrades supported by multi-year contract commitments, along with other upgrade opportunities in Canada and the U.S. He said Q2 capital expenditures will be “disproportionately high” due to timing of bulk deliveries and maintenance projects, then level out later in the year. Ford said Precision is expanding growth investments to include those two contracted Canadian Super Triple upgrades. He described the work as upgrading ST-1200 rigs “from the lowest end” of Precision’s Super Triple 1200 class to the “leading edge” of the fleet by increasing capacity across the rig, including hook load and pumping capacity. Ford said the capital will be fully recouped within the term of the contract “through either the day rate or an upfront payment from customers.” Honing said one upgrade is expected to be delivered in Q3 and the other in Q4, with portions of the financial benefit flowing through in 2026. On upgrade economics more broadly, Ford said Precision generally targets recovering its upgrade capital within the contract term, noting U.S. contracts are often shorter (six months or pad-to-pad), which can create “white space” between jobs. He also said Precision’s capital plan has room to reactivate “15 or so rigs” without increasing the plan. Internationally, Ford said all seven rigs in the Middle East are delivering “excellent results” while the team remains focused on safety amid a “dynamic regional environment.” Responding to questions about Q1 disruptions, he said reactivating a rig in Saudi Arabia cost $2 million, higher than expected due to customer requirements and mobilizing crews. He cited travel disruptions and logistical challenges sourcing fuel and parts as ongoing issues and said the impact on profitability is expected to be “low single-digits,” though he did not quantify further. Ford also said Precision and its partner have engaged with major Argentine operators and have outstanding bids on multiple rigs. In Kuwait, he noted two idle rigs and said the company expects to secure a contract for one “within the next few months” if there is more clarity on the regional outlook. He added that an AlphaAutomation system deployed on one Kuwait rig is reducing drilling times for the customer, and Precision expects to broaden its technology footprint in the region during the year. On longer-term financial priorities, Honing reiterated a target of net debt to adjusted EBITDA below 1x. He said Precision plans in 2026 to reduce debt by at least CAD 100 million while allocating up to 50% of free cash flow to share repurchases, noting an average cost of debt of 6.6% and more than CAD 433 million in total liquidity. Precision Drilling Corporation (NYSE: PDS) is a Calgary, Alberta–based oilfield services company that has provided drilling solutions since its founding in 1951. With more than seven decades of industry experience, the company delivers contract drilling services, directional and horizontal drilling, well servicing, and a suite of specialized equipment designed to meet the evolving needs of exploration and production companies worldwide. The company's core business activities include operating a fleet of onshore drilling rigs, offering managed pressure drilling, measurement-while-drilling (MWD) and logging-while-drilling (LWD) services, and providing completion and workover rigs. The article "Precision Drilling Q1 Earnings Call Highlights" was originally published by MarketBeat.

CALGARY, Alberta, April 29, 2026 (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, (gain) loss on investments and other assets, finance charges, foreign exchange, gain on asset disposals and depreciation and amortization), 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 2026 first quarter results, reflecting higher utilization in both Canadian and U.S. drilling and well service operations year over year. Financial Highlights Revenue of $526 million was 6% higher than $496 million reported in the first quarter of 2025, due to higher activity in both the U.S. and Canada, which more than offset lower results internationally. Adjusted EBITDA(1) was $124 million, including $19 million of share-based compensation expense as our share price appreciated 39% in the quarter. In 2025, our Adjusted EBITDA was $137 million and included $3 million of restructuring costs and $3 million of share-based compensation expense. Net earnings attributable to shareholders in the first quarter was $17 million compared with $35 million in 2025. Our lower net earnings in 2026 was due to higher share-based compensation expense and increased depreciation expense from the change in useful life estimates. Cash provided by operations during the quarter was $63 million, allowing the Company to repurchase $4 million of common shares and reduce debt by $25 million. Capital expenditures in the first quarter of 2026 were $65 million compared to $60 million in 2025. Precision has revised its 2026 capital budget to $265 million from $245 million, driven by two contracted Canadian Super Triple drilling rig upgrades and higher expected activity in Canada and the U.S. Operational Highlights Canada averaged 79 active rigs compared to 74 active rigs in the first quarter of 2025, outpacing Canadian industry activity that declined 7%(2). Canadian revenue per utilization day decreased to $35,021 from $35,601, primarily due to rig mix, as we had proportionately fewer active Super Triples. U.S. averaged 37 active rigs in the first quarter of 2026 versus 30 in 2025. Precision's first quarter 2026 U.S. rig utilization days increased 24% while industry activity declined 7%(2). U.S. revenue per utilization day increased to US$33,715 from US$33,157 in the same period last year. Excluding revenue from turnkey projects and idle but contracted rigs, revenue per utilization day in the first quarter of 2026 of US$31,865 was comparable to US$31,894 in 2025. Continued deploying Alpha™ digital technologies to unlock performance improvements through automation, data analytics and real-time optimization, delivering record drilling results for our Canadian and U.S. customers. Internationally, we had seven rigs under contract versus eight in the first quarter of 2025. Revenue per utilization day was US$51,596 from US$49,419 in 2025, driven by higher mobilization revenue. Canadian well service rig operating hours increased 4% versus the same quarter in 2025. (1) See "FINANCIAL MEASURES AND RATIOS." (2) See "SEGMENT REVIEW OF CONTRACT DRILLING SERVICES." MANAGEMENT COMMENTARY Executing Safely and Delivering High Performance Amid Global Volatility Precision’s President and CEO, Carey Ford, provided the following commentary: “In the first quarter, Precision delivered year over year revenue growth in a declining market, enhanced the capability of our drilling fleet, and continued to deliver on shareholder return commitments. “As we entered the year, the global operating environment became increasingly complex, driven in part by escalating geopolitical conflict in the Middle East. The resulting commodity and financial market volatility, combined with heightened scrutiny of the global energy industry, has created one of the most unique operating environments we have experienced in several decades. For a company like Precision, with operations in the Middle East, effectively navigating the daily changes is critical. “Throughout this period, our priorities have remained clear: first and foremost, ensuring the safety of our people; reliably delivering our High Performance, High Value offering to our customers; and increasing the velocity of communication with our customers, vendors, and crews. These priorities position us to respond quickly and decisively as conditions change. “Internationally, despite minor activity disruptions and increased costs, our crews in the Middle East continue to operate safely and deliver excellent results for our customers. During the quarter, we also reactivated one rig, bringing our total active rig count in the region to seven, all supported by long-term contracts. “In North America, Precision delivered activity growth in both Canada and the U.S., despite lower industry activity levels year over year. This performance reflects our continued success in driving revenue growth and deepening customer relationships through contracted rig upgrades, disciplined operational excellence, and the deployment of performance-driven technology. Precision remains well positioned as a trusted partner for customers seeking reliable, repeatable, and efficient drilling outcomes. “Technology continues to be a key differentiator and central to our long-term strategy. During the quarter, we continued deploying Alpha™ digital technologies to unlock performance improvements through automation, data analytics, and real-time optimization, delivering record drilling results for our Canadian and U.S. customers. Our scalable digital portfolio has been a key contributor to our success in North America for several years. “Looking ahead, we are encouraged by improving customer sentiment in both Canada and the U.S. In Canada, we expect our second quarter activity to be well above last year’s level, supported by demand for our pad-capable Super Triple and Super Single rigs and a robust oil price environment. In the U.S., while we experienced contract churn in March and April, we expect our active rig count to return to the high 30s in June. We are experiencing a notable increase in inquiries from both oil and natural gas customers regarding rig availability and expect further rig additions and pricing increases in the second half of the year. Precision’s scale, technology offering, and operational excellence will support growth opportunities as they emerge. “Precision continues to maintain a disciplined approach to capital allocation, prioritizing balance sheet strength, high-return investments in our equipment and technology, and enhanced shareholder returns. We remain focused on maximizing free cash flow generation and reaffirm our published shareholder return commitments for 2026. “I would like to thank our field leadership and crews for their continued commitment to safety, execution, and customer service. Their dedication underpins our ability to deliver consistent performance and advance our High Performance, High Value strategy while delivering long-term value for all stakeholders,” concluded Mr. Ford. SELECT FINANCIAL AND OPERATING INFORMATION Financial Highlights (1) See "FINANCIAL MEASURES AND RATIOS." Operating Highlights (1) The service rig fleet and service rig operating hours exclude our U.S. operations that we wound down in the second quarter of 2025. Drilling Activity (1) Average number of drilling rigs working or moving. Financial Position (1) See "FINANCIAL MEASURES AND RATIOS." Summary for the three months ended March 31, 2026: Revenue in the first quarter was $526 million, $30 million higher than in 2025 as U.S. and Canadian revenue increased by $24 million and $13 million, respectively, due to higher drilling activity, while partially offset by lower international drilling activity. Adjusted EBITDA decreased 10% to $124 million from $137 million in the first quarter of 2025. The decrease was primarily due to higher share-based compensation expense of $19 million compared with $3 million in the same period last year, as well as increased rig reactivation costs. For additional information on share-based compensation, please refer to "Other Items" later in this news release. Net earnings attributable to shareholders was $17 million or $1.34 per share compared to $35 million or $2.52 per share for the same period last year. The decrease was due to higher share-based compensation expense, as our share price appreciated 39% in the quarter, and increased depreciation expense from the change in useful life estimates. Cash provided by operations was $63 million and the Company repurchased 36,874 shares for $4 million and reduced long-term debt by $25 million. Precision ended the quarter with $41 million of cash and more than $430 million in available liquidity. In Canada, our operating margin(2) was $14,282 compared to $14,780 in the same period last year. The decrease was primarily due to rig mix, as we had proportionately fewer active Super Triples. In the U.S., our operating margin was US$9,291 compared to US$9,589 in 2025. Excluding the impact of turnkey projects and idle but contracted rig revenue, our operating margin was US$9,287 in 2026 compared to US$8,360 in 2025. The increase was primarily due to fixed costs being spread over more activity days. Internationally, we had revenue per utilization per day of US$51,596 compared to US$49,419 in the same period last year. The increase of 4% was primarily due to higher mobilization revenue. We realized revenue of US$32 million in the first quarter of 2026 compared to US$36 million in 2025 as higher revenue per utilization day was more than offset by lower activity following the expiration of a drilling contract in Kuwait. Completion and Production Services revenue was $80 million, consistent with the first quarter of 2025. Adjusted EBITDA was $18 million, representing 22%(1) of revenue which is consistent with the first quarter of 2025. General and administrative expenses were $42 million versus $30 million in the first quarter of 2025, with the increase primarily due to higher share-based compensation expense. Capital expenditures were $65 million compared to $60 million in the first quarter of 2025 and included $35 million for the maintenance of existing assets, infrastructure, and intangible assets and $30 million for upgrades(1). (1) See "FINANCIAL MEASURES AND RATIOS." (2) Defined as revenue per utilization day less operating costs per utilization day. 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 2026 strategic priorities and the progress made during the first quarter are summarized below. (1) See "FINANCIAL MEASURES AND RATIOS." OUTLOOK Ongoing geopolitical tensions in the Middle East have increased global supply risks, contributing to higher oil prices and a renewed focus on energy supply security. This environment continues to support steady upstream investment and near-term activity in politically stable jurisdictions. Customers continue to prioritize capital discipline and returns, resulting in measured but sustained drilling rather than reacting to short-term price movements. However, if the oil price outlook remains constructive, we expect activity levels to increase over the course of the year. In Canada, demand for our Super Series rigs remains robust, driving one of our most active winter drilling seasons. Improving commodity prices for heavy oil and condensate, plus additional takeaway capacity for both oil and natural gas continue to support Canadian activity levels. As we move into spring break up with more pad-capable Super Triple and Super Single rigs and an improved oil price environment, we expect our second quarter activity to be well above the prior year's level. In the U.S., the natural gas rig count increased approximately 20% in 2025 as customers became more constructive on LNG off-take and rising AI-related power demand. We capitalized on this trend by increasing activity in key natural gas basins such as the Haynesville and Marcellus, resulting in a 24% increase in U.S. drilling rig utilization days in the first quarter of 2026 compared with 2025. Oil directed drilling activity remained subdued through 2025 and into 2026; however, with a more favorable pricing environment, we are experiencing a notable increase in inquiries from both oil and natural gas customers regarding rig availability and expect further rig additions and pricing increases in the second half of the year. Internationally, despite minor disruptions and increased costs due to the tension in the Middle East, our crews are safely delivering results for our international customers. We have seven active rigs, including four in Kuwait and three in the Kingdom of Saudi Arabia. These rigs are under five-year term contracts that extend into 2027 and 2028. We currently expect seven active rigs for the remainder of the year. We continue to seek opportunities for our two idle international rigs. 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 in the foreseeable future, assuming no significant change in market conditions. Overall, our outlook for the remainder of the year is optimistic, with potential upside driven by sustained higher oil prices amid ongoing geopolitical tensions in the Middle East. In Canada, we expect second quarter operating margins to average between $12,000 and $13,000 per utilization day, driven by a higher proportion of Super Singles working through spring break up compared with the prior year. In the U.S., revenue per utilization day is expected to remain stable, while operating margins are anticipated to range between US$7,500 and US$8,500 per utilization day due to additional rig reactivation expenses. Contracts The following chart outlines the average number of drilling rigs under term contract by quarter as of April 29, 2026. For the quarter ending after March 31, 2026, 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. SEGMENTED FINANCIAL RESULTS Precision’s operations are reported in two segments: Contract Drilling Services, which includes our drilling rigs, procurement and distribution of oilfield supplies, and the manufacture, sale and repair of drilling equipment; and Completion and Production Services, which includes our service rigs, oilfield equipment rental, and camp services. SEGMENT REVIEW OF CONTRACT DRILLING SERVICES (1) See "FINANCIAL MEASURES AND RATIOS." (1) Canadian operations only. (2) Source: Baker Hughes rig counts. (1) United States lower 48 operations only. (2) Source: Baker Hughes rig counts. SEGMENT REVIEW OF COMPLETION AND PRODUCTION SERVICES (1) See "FINANCIAL MEASURES AND RATIOS." (2) The service rig fleet and service rig operating hours exclude our U.S. operations that we wound down in the second quarter of 2025. 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 2025 Annual Report. A summary of expense amounts under these plans during the reporting periods are as follows: Depreciation In 2025, we completed a detailed review of our drilling rig equipment and revised the estimated useful life of drill pipe as more complex drilling programs have reduced the useful life of this asset class. This revision resulted in additional depreciation expense of $11 million in the first quarter of 2026. FINANCIAL MEASURES AND RATIOS 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 2026 strategic priorities; our capital expenditures, free cash flow allocation and debt reduction plans for 2026 and beyond; anticipated activity levels, demand for our drilling rigs, day rates and daily operating margins in 2026; the average number of term contracts in place for 2026; customer adoption of Alpha™ technologies and EverGreen™ suite of environmental solutions; and potential commercial opportunities and rig contract renewals. 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; continued market demand for our drilling rigs; 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 in. 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 physical, regulatory and transition impacts of climate change; 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; the impact of inflation and supply chain disruptions; business interruptions related to cybersecurity risks; 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, acts of war, social, civil and political unrest in the foreign jurisdictions or regions 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, 2025, 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 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. CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED) CONDENSED INTERIM CONSOLIDATED STATEMENTS OF NET EARNINGS (LOSS) (UNAUDITED) CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED) 2026 FIRST 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, April 30, 2026. 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/BI8811660f92894f7aa14eca5d58cbc0df 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 until the following quarterly conference call is posted. https://edge.media-server.com/mmc/p/952icqoy 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 and NYSE Texas, Inc., 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

Wall Street expects a year-over-year increase in earnings on higher revenues when Precision Drilling (PDS) reports results for the quarter ended March 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on April 29, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This oilfield services company is expected to post quarterly earnings of $1.85 per share in its upcoming report, which represents a year-over-year change of +20.9%. Revenues are expected to be $371.94 million, up 7.6% from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Precision Drilling, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -4.32%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination makes it difficult to conclusively predict that Precision Drilling will beat the consensus EPS estimate. Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Precision Drilling would post earnings of $1.11 per share when it actually produced earnings of $1.37, delivering a surprise of +23.42%. Over the last four quarters, the company has beaten consensus EPS estimates two times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Precision Drilling doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Among the stocks in the Zacks Oil and Gas - Drilling industry, Nabors Industries (NBR), is soon expected to post loss of $2.39 per share for the quarter ended March 2026. This estimate indicates a year-over-year change of +68.1%. This quarter's revenue is expected to be $778.87 million, up 5.8% from the year-ago quarter. The consensus EPS estimate for Nabors has been revised 5.3% lower over the last 30 days to the current level. However, an equal Most Accurate Estimate has resulted in an Earnings ESP of 0.00%. This Earnings ESP, combined with its Zacks Rank #2 (Buy), makes it difficult to conclusively predict that Nabors will beat the consensus EPS estimate. Over the last four quarters, the company surpassed EPS estimates just once. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Precision Drilling Corporation (PDS) : Free Stock Analysis Report Nabors Industries Ltd. (NBR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research