Mr. Kevin Neveu reports

PRECISION DRILLING ANNOUNCES ACQUISITION OF CWC ENERGY SERVICES

Precision Drilling Corp. has entered into an agreement to acquire all of the issued and outstanding common shares of CWC Energy Services Corp. for total consideration of approximately $141-million, comprising 947,909 Precision shares, valued at approximately $88-million as of Sept. 1, 2023, market close, $14-million in cash plus the assumption of CWC's outstanding debt.

With this transaction, Precision adds to its fleet: 62 marketed service rigs in Canada, seven marketed drilling rigs in Canada and 11 marketed drilling rigs in the United States, including seven AC triple rigs. Currently, three of the Canadian drilling rigs and seven of the U.S. drilling rigs are actively working for customers. Additional transaction highlights include:

• Well-positioned, high-quality assets -- well-maintained assets across Canada and the United States in complementary geographic regions supported by skilled and experienced personnel and strong customer relationships;
• Material synergies -- Precision expects to realize annual operating synergies of approximately $20-million once CWC is fully integrated, and Precision has identified approximately $20-million of excess CWC real estate that it expects to monetize posttransaction closing;
• Financially beneficial -- Precision expects the transaction to be accretive on a 2024 cash flow per share basis and to support its continuing deleveraging plan.

Precision's president and chief executive officer, Kevin Neveu, stated: "This acquisition supports our high performance, high-value strategy as it allows us to expand our service offering in both Canada and the U.S. with high-quality rigs and field personnel. With the expected synergies and by further leveraging our scale, we believe the transaction will be accretive to earnings and provide significant cash flow to drive shareholder returns and support our debt reduction strategy. I am excited to welcome the CWC employees to the Precision team."

Precision remains committed to reducing its debt levels by $500-million between 2022 and 2025 and achieving a sustained net debt to adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) ratio of less than 1.0 times by the end of 2025. For 2023, Precision remains on track to reduce its debt by $150-million.

Transaction details

Details of the terms of the transaction are set out in the arrangement agreement, which will be filed and available for viewing on SEDAR under each of Precision's and CWC's profiles.

The transaction is expected to be completed in the fourth quarter of 2023, subject to CWC shareholder approval; Toronto Stock Exchange, court and regulatory approvals; Competition Bureau approval; and the satisfaction of other customary closing conditions. Evercore is acting as financial adviser and Osler Hoskin & Harcourt LLP is acting as legal adviser to Precision.

About Precision Drilling Corp.

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. 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, Alta., Canada, and is listed on the TSX under the trading symbol PD and on the New York Stock Exchange under the trading symbol PDS.

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