Mr. Kevin Neveu reports

PRECISION DRILLING COMPLETES ACQUISITION OF CWC ENERGY SERVICES CORP.

Precision Drilling Corp. has completed its acquisition of CWC Energy Services Corp. The total consideration for CWC included 947,807 Precision common shares, approximately $14-million in cash, plus the assumption of CWC's net debt of approximately $38-million, excluding transaction costs. The total transaction value for CWC was approximately $127-million on Nov. 7, 2023.

With the acquisition completed, Precision will begin integrating the two companies, which includes delivering approximately $20-million in expected annual operating synergies and monetizing approximately $20-million from planned excess real estate sales. Including CWC's rigs, Precision now has 72 active service rigs in Canada, 73 active drilling rigs in Canada and 51 active drilling rigs in the United States.

Precision's president and chief executive officer, Kevin Neveu, stated: "We are pleased to have completed this strategic acquisition, which positions Precision as the premier well service provider in Canada and enhances our drilling operations in both Canada and the U.S. With the projected synergies, we expect the transaction to be accretive on a 2024 cash flow per share basis and to support our ongoing deleveraging plan. I am excited to welcome the CWC employees to the Precision team."

Transaction details

Precision has acquired all of the issued and outstanding shares of CWC, with each CWC shareholder receiving, at their election (a) 0.002124306 of a Precision share for each CWC share; (b) 19.6668 cents in cash for each CWC share; or (c) a combination of cash and Precision shares, subject to proration.

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. The company's drilling services are enhanced by its EverGreen suite of environmental solutions, which bolsters its commitment to reducing the environmental impact of its 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.

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