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

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

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

Securities Exchange Act of 1934

For the month of, August 2024

Commission File Number: 001-14534

Precision Drilling Corporation

(Exact name of registrant as specified in its charter)

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

(Address of principal executive offices)

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

Form 20-F ___ Form 40-F _X_

SIGNATURE

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

Dated: August 1, 2024	PRECISION DRILLING CORPORATION



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

Exhibit

DESCRIPTION

31.1

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

31.2

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

99.1

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

99.2

Consolidated Financial Statements for the period ended June 30, 2024.

Exhibit 31.1

FORM 52-109F2

CERTIFICATION OF INTERIM FILINGS

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

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

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

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

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

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

(a)

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

(i)

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

(ii)

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

(b)

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

5.1

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

5.2

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

5.3

Limitation on scope of design: N/A.

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

Date: August 1, 2024

By:

/s/Kevin A Neveu

Name: Kevin A. Neveu

Title: President and Chief Executive Officer

Exhibit 31.2

FORM 52-109F2

CERTIFICATION OF INTERIM FILINGS

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

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

(a)

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

(i)

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

(ii)

(b)

5.1

5.2

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

5.3

Limitation on scope of design: N/A.

Date: August 1, 2024

By:

/s/Carey T. Ford

Name: Carey T. Ford

Title: Chief Financial Officer

Exhibit 99.1

PRECISION DRILLING CORPORATION

Second Quarter Report for the three and six months ended June 30, 2024 and 2023

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

Precision Drilling Corporation ("Precision" or the "Company") delivered outstanding second quarter financial results and demonstrated its cash flow potential. During the quarter, Precision generated cash flow from operations of $174 million, allowing it to reduce debt by $102 million, increase its cash position by $17 million, return $23 million to shareholders through share buybacks, and invest $38 million in its fleet. For 2024, Precision remains firmly committed to repaying debt between $150 million and $200 million and allocating 25% to 35% of its free cash flow to share buybacks.

Additional Financial Highlights

Revenue was $429 million and comparable to $426 million in the second quarter of 2023 due to higher activity and pricing in both Canada and internationally, which more than offset lower results in the U.S.

Adjusted EBITDA⁽¹⁾ was $115 million and included share-based compensation charges of $10 million. By comparison, Adjusted EBITDA in the second quarter of 2023 was $142 million and included share-based compensation charges of $3 million.

Net earnings was positive for the eighth consecutive quarter at $21 million or $1.44 per share compared to $27 million or $1.97 per share in the second quarter of 2023.

Completion and Production Services revenue increased 43% over the same period last year to $66 million, while Adjusted EBITDA rose 66% to $12 million, reflecting the successful integration of the CWC Energy Services (CWC) acquisition in late 2023.

Internationally, our revenue nearly doubled over the second quarter of last year as we realized US$40 million of contract drilling versus US$23 million in 2023.

Operational Highlights

Canada's activity increased 18%, averaging 49 active drilling rigs versus 42 in the second quarter of 2023.

Canadian revenue per utilization day grew to $36,075 compared to $33,535 in the same period last year.

U.S. activity averaged 36 drilling rigs compared to 51 for the second quarter of 2023.

U.S. revenue per utilization day was US$33,227 compared to US$35,576 in the same quarter last year.

International activity increased 61% compared to the second quarter of 2023, with eight drilling rigs active following rig reactivations in 2023. Revenue per utilization day was US$55,301 compared to US$50,551 in the second quarter of 2023.

Service rig operating hours increased 44% over the same quarter last year totaling 57,051 hours driven by the CWC acquisition.

(1)

See “FINANCIAL MEASURES AND RATIOS."

SELECT FINANCIAL AND OPERATING INFORMATION

Financial Highlights

	For the three months ended June 30,									For the six months ended June 30,
(Stated in thousands of Canadian dollars, except per share amounts)	2024			2023			% Change			2024			2023			% Change
Revenue		429,214			425,622			0.8			957,002			984,229			(2.8	)
Adjusted EBITDA⁽¹⁾		115,121			142,093			(19.0	)		258,270			345,312			(25.2	)
Net earnings		20,701			26,900			(23.0	)		57,217			122,730			(53.4	)
Cash provided by operations		174,075			213,460			(18.5	)		239,618			241,816			(0.9	)
Funds provided by operations⁽¹⁾		111,750			136,959			(18.4	)		229,515			296,612			(22.6	)

Cash used in investing activities		26,943			44,062			(38.9	)		102,180			122,879			(16.8	)
Capital spending by spend category⁽¹⁾
Expansion and upgrade		8,422			9,615			(12.4	)		22,792			25,960			(12.2	)
Maintenance and infrastructure		30,001			35,099			(14.5	)		71,158			69,549			2.3
Proceeds on sale		(10,992	)		(6,261	)		75.6			(16,178	)		(14,026	)		15.3
Net capital spending⁽¹⁾		27,431			38,453			(28.7	)		77,772			81,483			(4.6	)

Net earnings per share:
Basic		1.44			1.97			(26.9	)		3.97			8.98			(55.8	)
Diluted		1.44			1.63			(11.7	)		3.97			7.22			(45.0	)
Weighted average shares outstanding:
Basic		14,389			13,672			5.2			14,398			13,661			5.4
Diluted		14,395			14,747			(2.4	)		14,402			14,857			(3.1	)

(1)

See “FINANCIAL MEASURES AND RATIOS.”

Operating Highlights

	For the three months ended June 30,							For the six months ended June 30,
	2024		2023		% Change			2024		2023		% Change
Contract drilling rig fleet		214		225		(4.9	)		214		225		(4.9	)
Drilling rig utilization days:
U.S.		3,236		4,626		(30.0	)		6,689		10,008		(33.2	)
Canada		4,464		3,795		17.6			11,081		9,963		11.2
International		728		452		61.1			1,456		885		64.5
Revenue per utilization day:
U.S. (US$)		33,227		35,576		(6.6	)		33,041		35,247		(6.3	)
Canada (Cdn$)		36,075		33,535		7.6			35,789		32,773		9.2
International (US$)		55,301		50,551		9.4			54,055		51,139		5.7
Operating costs per utilization day:
U.S. (US$)		22,427		18,963		18.3			22,062		19,667		12.2
Canada (Cdn$)		21,652		21,332		1.5			20,641		19,731		4.6

Service rig fleet		165		119		38.7			165		119		38.7
Service rig operating hours		57,051		39,709		43.7			131,555		98,050		34.2

Drilling Activity

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

(1)

Average number of drilling rigs working or moving.

Financial Position

(Stated in thousands of Canadian dollars, except ratios)	June 30, 2024		December 31, 2023⁽²⁾
Working capital⁽¹⁾		158,470		136,872
Cash		48,233		54,182
Long-term debt		844,671		914,830
Total long-term financial liabilities⁽¹⁾		917,139		995,849
Total assets		2,914,533		3,019,035
Long-term debt to long-term debt plus equity ratio ⁽¹⁾		0.34		0.37

(1)

See “FINANCIAL MEASURES AND RATIOS.”

(2)

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

Summary for the three months ended June 30, 2024:

Revenue increased to $429 million compared with $426 million in the second quarter of 2023 as a result of higher Canadian and international activity and day rates, partially offset by lower U.S. activity and day rates.

Adjusted EBITDA was $115 million as compared with $142 million in 2023, primarily due to lower U.S. activity and day rates, partially offset by increased Canadian and international results, and increased share-based compensation of $7 million. Please refer to “Other Items” later in this report for additional information on share-based compensation.

Adjusted EBITDA as a percentage of revenue was 27% as compared with 33% in 2023.

U.S. revenue per utilization day was US$33,227 compared with US$35,576 in 2023. The decrease was primarily the result of lower fleet average day rates and idle but contracted rig revenue, partially offset by higher recoverable costs. We did not recognize revenue from idle but contracted rigs as compared with US$5 million in 2023. Revenue per utilization day, excluding the impact of idle but contracted rigs was US$33,227 compared with US$34,396 in 2023, a decrease of 3%. Sequentially, revenue per utilization day, excluding idle but contracted rigs, was largely consistent with the first quarter of 2024.

U.S. operating costs per utilization day increased to US$22,427 compared with US$18,963 in 2023. The increase is mainly due to higher recoverable costs, fixed costs spread over fewer activity days and higher rig operating costs. Sequentially, operating costs per utilization day increased US$708 due to increased rig operating costs and higher recoverable costs.

Canadian revenue per utilization day was $36,075 compared with $33,535 in 2023. The increase was a result of higher average day rates, partially offset by lower recoverable costs as compared with the second quarter of 2023. Sequentially, revenue per utilization day increased $479 due to higher recoverable costs.

Canadian operating costs per utilization day increased to $21,652, compared with $21,332 in 2023, resulting from higher field wages due to our rig mix, partially offset by lower recoverable costs. Sequentially, daily operating costs increased $1,693 due to higher repairs and maintenance and fixed overheads spread over fewer activity days.

We realized US$40 million of international contract drilling revenue compared with US$23 million in 2023.

General and administrative expenses were $29 million as compared with $23 million in 2023 primarily due to higher share-based compensation charges.

Net finance charges were $18 million, a decrease of $3 million compared with 2023 as a result of lower outstanding long-term debt.

Capital expenditures were $38 million compared with $45 million in 2023 and by spend category included $8 million for expansion and upgrades and $30 million for the maintenance of existing assets, infrastructure, and intangible assets.

Income tax expense for the quarter was $11 million as compared with $19 million in 2023. During the second quarter, we continued to not recognize deferred tax assets on certain international operating losses.

Generated cash from operations of $174 million, reduced debt by $102 million, repurchased $23 million of shares, and ended the quarter with $48 million of cash and more than $500 million of available liquidity.

Summary for the six months ended June 30, 2024:

Revenue for the first six months of 2024 was $957 million, a decrease of 3% from 2023.

Adjusted EBITDA for the period was $258 million as compared with $345 million in 2023. Our lower Adjusted EBITDA was attributable to decreased U.S. drilling day rates and activity, partially offset by strengthening day rates and activity in Canada and internationally.

General and administrative costs were $74 million, an increase of $35 million from 2023 primarily due to higher share-based compensation charges and the impact of the weakening Canadian dollar on our translated U.S. dollar-denominated costs.

Net finance charges were $37 million, a decrease of $8 million from 2023 due to our lower outstanding debt balance, partially offset by the impact of the weakening of the Canadian dollar on our U.S. dollar-denominated interest expense.

Cash provided by operations was $240 million as compared with $242 million in 2023. Funds provided by operations were $230 million, a decrease of $67 million from the comparative period.

Capital expenditures were $94 million in 2024, a decrease of $2 million from 2023. Capital spending by spend category included $23 million for expansion and upgrades and $71 million for the maintenance of existing assets, infrastructure, and intangible assets.

Reduced debt by $103 million from the redemption of US$56 million of 2026 unsecured senior notes and repayment of $26 million of Canadian Real Estate Credit Facilities.

Repurchased $40 million of common shares under our Normal Course Issuer Bid (NCIB), which included a $7 million accrual for anticipated repurchases subsequent to June 30, 2024. Please refer to “Other Items” later in this report for additional information on our NCIB.

STRATEGY

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

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

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

Generated cash from operations of $174 million.

Increased our daily drilling operating margins⁽¹⁾ 18% in Canada year over year.

Increased our Completion and Production Services operating hours and Adjusted EBITDA 44% and 66%, respectively, year over year.

On track to realize $20 million in annual synergies from the CWC acquisition, which closed in November 2023.

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

Reduced debt by redeeming US$56 million of our 2026 unsecured senior notes and repaying $25 million of Canadian Real Estate Credit Facilities. For the first six months of the year, we have reduced debt by $103 million.

Returned $23 million of capital to shareholders through share repurchases and subsequent to June 30, 2024, have returned another $7 million to shareholders through share repurchases, bringing our total share repurchases in 2024 to $40 million.

Remain committed to our 2024 debt reduction plans and our long-term debt reduction target of $600 million between 2022 and 2026, while moving our direct shareholder capital returns towards 50% of free cash flow.

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

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

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

Expanded our EverGreen^TM product offering with commercial deployment of hydrogen injection systems on our Super Single rigs. EverGreenHydrogen^TMreduces diesel consumption, operating costs, and greenhouse gas emissions for our customers.

(1)

Revenue per utilization day less operating costs per utilization day.

(2)

See “FINANCIAL MEASURES AND RATIOS.”

OUTLOOK

The outlook for global energy demand is positive with rising demand for all types of energy including oil and gas driven by economic growth, increasing demand in third world regions, and emerging demand from data centers. Oil prices remain healthy, and producers remain disciplined while geopolitical issues continue to threaten supply. In Canada, recent commissioning of the Trans Mountain pipeline expansion and the imminent start-up of LNG Canada provide significant tidewater access for both Canadian crude and natural gas, supporting additional Canadian drilling activity. In the U.S., the next wave of LNG projects is expected to add approximately 12 bcf/d of export capacity over the next three years, supporting additional U.S. natural gas drilling activity.

In Canada, we currently have 74 rigs operating, which is over 25% higher than last year, and expect this trend to continue throughout the third quarter due to activity in the Montney driven by strong condensate demand and increased drilling for heavy oil targets. Since the start-up of the Trans Mountain pipeline expansion in May, customer activity in heavy oil targeted areas has exceeded our expectations, resulting in full utilization of our Super Single pad capable rigs. Our Canadian fleet is in high demand and we expect customer demand for our Super Triple and Super Single pad capable fleets to exceed supply into 2025 as Canadian take-away capacity further increases. Despite strong underlying customer demand, our activity levels could be impacted in the near term if the current wildfires intensify.

In the U.S., we currently have 38 rigs operating as drilling activity continues to be constrained by weak natural gas prices and pending merger and acquisition transactions. We view these headwinds as short-term in nature and expect customer demand will remain stable in the third quarter with a likely increase in the fourth quarter as producers modestly increase drilling plans into 2025.

Internationally, we expect to have eight rigs running throughout all of 2024, representing a 40% increase in activity compared to 2023. We continue to bid our remaining idle rigs within the region and remain optimistic about our ability to secure additional rig activations.

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

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

Contracts

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

As at July 30, 2024	Average for the quarter ended 2023								Average		Average for the quarter ended 2024								Average
	Mar. 31		June 30		Sept. 30		Dec. 31		2023		Mar. 31		June 30		Sept. 30		Dec. 31		2024
Average rigs under term contract:
U.S.		40		37		32		28		34		20		17		17		12		17
Canada		19		23		23		23		22		24		22		23		23		23
International		4		5		7		7		6		8		8		8		8		8
Total		63		65		62		58		62		52		47		48		43		48

Capital Spending and Free Cash Flow Allocation

Capital spending in 2024 is expected to be $195 million and by spend category includes $153 million for maintenance, infrastructure, and intangibles and $42 million for expansion and upgrades. We expect to spend $173 million in the Contract Drilling Services segment, $17 million in the Completion and Production Services segment and $5 million in the Corporate segment. At June 30, 2024, Precision had capital commitments of $152 million with payments expected through 2026. We remain committed to our debt reduction plans and in 2024 expect to reduce debt by $150 million to $200 million and allocate 25% to 35% of free cash flow before debt repayments for share repurchases, while remaining committed to achieving a sustained Net Debt to Adjusted EBITDA ratio⁽¹⁾ of below 1.0 times by the end of 2025.

(1)

See “FINANCIAL MEASURES AND RATIOS.”

Commodity Prices

Second quarter average West Texas Intermediate and Western Canadian Select oil prices increased 9% and 14%, respectively, as compared with 2023 while the average Henry Hub natural gas price remained consistent and AECO natural gas prices declined 51%.

	For the three months ended June 30,				Year ended December 31,
	2024		2023		2023
Average oil and natural gas prices
Oil
West Texas Intermediate (per barrel) (US$)		80.55		73.77		77.62
Western Canadian Select (per barrel) (US$)		66.89		58.76		58.96
Natural gas
United States
Henry Hub (per MMBtu) (US$)		2.34		2.32		2.67
Canada
AECO (per MMBtu) (CDN$)		1.18		2.43		2.64

Seasonality

In Canada, because of the seasonal nature of well site access, term contracted rigs normally generate 250 utilization days, with some pad drilling trending toward 300 days. Accordingly, our anticipated Canadian rigs under term contract may fluctuate as customers complete their commitments earlier than projected. In most regions in the U.S. and internationally, term contracts normally generate 365 utilization days per year. In accordance with the seasonality of our business and varying levels of rig count, we generally experience builds of working capital in the first and third quarters and releases of working capital in the second and fourth quarters.

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.

	For the three months ended June 30,									For the six months ended June 30,
(Stated in thousands of Canadian dollars)	2024			2023			% Change			2024			2023			% Change
Revenue:
Contract Drilling Services		365,603			380,958			(4.0	)		808,970			867,034			(6.7	)
Completion and Production Services		65,826			46,161			42.6			152,913			120,684			26.7
Inter-segment eliminations		(2,215	)		(1,497	)		48.0			(4,881	)		(3,489	)		39.9
		429,214			425,622			0.8			957,002			984,229			(2.8	)
Adjusted EBITDA:⁽¹⁾
Contract Drilling Services		119,754			147,478			(18.8	)		273,427			336,601			(18.8	)
Completion and Production Services		12,440			7,507			65.7			31,045			24,913			24.6
Corporate and Other		(17,073	)		(12,892	)		32.4			(46,202	)		(16,202	)		185.2
		115,121			142,093			(19.0	)		258,270			345,312			(25.2	)

(1)

See “FINANCIAL MEASURES AND RATIOS.”

SEGMENT REVIEW OF CONTRACT DRILLING SERVICES

	For the three months ended June 30,									For the six months ended June 30,
(Stated in thousands of Canadian dollars, except where noted)	2024			2023			% Change			2024			2023			% Change
Revenue		365,603			380,958			(4.0	)		808,970			867,034			(6.7	)
Expenses:
Operating		236,585			224,746			5.3			513,277			511,813			0.3
General and administrative		9,264			8,734			6.1			22,266			18,620			19.6
Adjusted EBITDA⁽¹⁾		119,754			147,478			(18.8	)		273,427			336,601			(18.8	)
Adjusted EBITDA as a percentage of revenue⁽¹⁾		32.8	%		38.7	%					33.8	%		38.8	%

(1)

See “FINANCIAL MEASURES AND RATIOS.”

United States onshore drilling statistics:⁽¹⁾	2024				2023
	Precision		Industry⁽²⁾		Precision		Industry⁽²⁾
Average number of active land rigs for quarters ended:
March 31		38		602		60		744
June 30		36		583		51		700
Year to date average		37		593		56		722

(1)

United States lower 48 operations only.

(2)

Baker Hughes rig counts.

Canadian onshore drilling statistics:⁽¹⁾	2024				2023
	Precision		Industry⁽²⁾		Precision		Industry⁽²⁾
Average number of active land rigs for quarters ended:
March 31		73		208		69		221
June 30		49		134		42		117
Year to date average		61		171		56		169

(1)

Canadian operations only.

(2)

Baker Hughes rig counts.

Revenue from Contract Drilling Services was $366 million, 4% lower than 2023, while Adjusted EBITDA decreased 19% to $120 million. The decrease in revenue and Adjusted EBITDA was primarily due to lower U.S. activity, partially offset by higher Canadian and international activity and day rates.

Drilling rig utilization days (drilling days plus move days) in the U.S. were 3,236, 30% lower than 2023. Drilling rig utilization days in Canada were 4,464, 18% higher than 2023. Drilling rig utilization days in our international business were 728, 61% higher than 2023 as our international rig fleet returned to work under renewed long-term contracts.

Revenue per utilization day in the U.S. decreased 7% from 2023 and was primarily the result of lower fleet average day rates and idle but contracted rig revenue, offset by higher recoverable costs. We did not recognize revenue from idle but contracted rigs as compared with US$5 million in 2023. Drilling rig revenue per utilization day in Canada increased 8% due to higher average day rates, partially offset by lower recoverable costs. Our international revenue per utilization day for the quarter was 9% higher than 2023 due to renewed long-term contracts.

In the U.S., 55% of utilization days were generated from rigs under term contract as compared with 66% in 2023. In Canada, 42% of our utilization days were generated from rigs under term contract, compared with 39% in 2023.

U.S. operating costs per utilization day increased 18% from 2023 and was primarily due to due to higher recoverable costs, fixed costs spread over fewer activity days and higher rig operating costs. Our Canadian operating costs per utilization day increased 2% as compared with 2023 and was due to higher field wages due to our rig mix, partially offset by lower recoverable costs.

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

SEGMENT REVIEW OF COMPLETION AND PRODUCTION SERVICES

	For the three months ended June 30,								For the six months ended June 30,
(Stated in thousands of Canadian dollars, except where noted)	2024			2023			% Change		2024			2023
Revenue		65,826			46,161			42.6		152,913			120,684		26.7
Expenses:
Operating		51,040			36,921			38.2		116,520			91,713		27.0
General and administrative		2,346			1,733			35.4		5,348			4,058		31.8
Adjusted EBITDA⁽¹⁾		12,440			7,507			65.7		31,045			24,913		24.6
Adjusted EBITDA as a percentage of revenue⁽¹⁾		18.9	%		16.3	%				20.3	%		20.6	%
Well servicing statistics:
Number of service rigs (end of period)		165			119			38.7		165			119		38.7
Service rig operating hours		57,051			39,709			43.7		131,555			98,050		34.2
Service rig operating hour utilization		38	%		37	%				44	%		46	%

(1)

See “FINANCIAL MEASURES AND RATIOS.”

Completion and Production Services revenue increased to $66 million, an increase of $20 million from 2023. Our increased revenue was due to higher service activity as our second quarter service rig operating hours increased 44% compared with 2023. Completion and Production Services generated 6% of its revenue from U.S. operations, compared with 8% in 2023.

Operating costs as a percentage of revenue were 78% as compared with 80% in 2023. The decreased percentage in 2024 was the result of our operating efficiency. As compared to 2023, our second quarter general and administrative expenses increased 35%, primarily due to higher share-based compensation charges and higher overhead charges associated with the CWC acquisition.

Adjusted EBITDA was $12 million as compared with $8 million in 2023. Our higher Adjusted EBITDA in 2024 was due to increased activity, partially offset by higher share-based compensation and overhead charges.

SEGMENT REVIEW OF CORPORATE AND OTHER

Our Corporate and Other segment provides support functions to our operating segments. The Corporate and Other segment had negative Adjusted EBITDA of $17 million as compared with negative Adjusted EBITDA of $13 million in 2023. Our lower current quarter Adjusted EBITDA was impacted by higher share-based compensation.

OTHER ITEMS

Share-based Incentive Compensation Plans

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

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

	For the three months ended June 30,				For the six months ended June 30,
(Stated in thousands of Canadian dollars)	2024		2023		2024		2023
Cash settled share-based incentive plans		8,677		2,081		30,436		(10,014	)
Equity settled share-based incentive plans		1,202		653		2,077		1,133
Total share-based incentive compensation plan expense		9,879		2,734		32,513		(8,881	)

Allocated:
Operating		2,686		923		7,938		(960	)
General and Administrative		7,193		1,811		24,575		(7,921	)
		9,879		2,734		32,513		(8,881	)

Cash settled share-based compensation expense for the quarter was $9 million as compared with $2 million in 2023. The higher expense in 2024 was primarily due to our improved share price performance as compared with 2023.

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

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

Normal Course Issuer Bid

Pursuant to our NCIB, we repurchased and cancelled 366,214 common shares for $23 million during the second quarter of 2024. We entered into an Automated Share Purchase Plan (ASPP) with an independent broker to permit the Corporation to repurchase common shares during our internal blackout period. The volume of purchases is determined by the broker in its sole discretion based on purchase price and maximum volume parameters established by the Corporation under the ASPP. At June 30, 2024, we recorded a $7 million liability for purchases that are estimated to occur during our blackout period based on the parameters of the ASPP with a corresponding decrease to share capital.

LIQUIDITY AND CAPITAL RESOURCES

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

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

Liquidity

Amount	Availability	Used for	Maturity
Senior Credit Facility (secured)
US$375 million (extendible, revolving term credit facility with US$375 million accordion feature)	Nil drawn and US$54 million in outstanding letters of credit	General corporate purposes	June 28, 2027
Real estate credit facilities (secured)
US$8 million	Fully drawn	General corporate purposes	November 19, 2025
Operating facilities (secured)
$40 million	Undrawn, except $7 million in outstanding letters of credit	Letters of credit and general corporate purposes
US$15 million	Undrawn	Short-term working capital requirements
Demand letter of credit facility (secured)
US$40 million	Undrawn, except US$28 million in outstanding letters of credit	Letters of credit
Unsecured senior notes (unsecured)
US$217 million – 7.125%	Fully drawn	Debt redemption and repurchases	January 15, 2026
US$400 million – 6.875%	Fully drawn	Debt redemption and repurchases	January 15, 2029

In 2024, we reduced debt by $103 million comprised of the redemption of US$56 million of 2026 unsecured senior notes and the repayment of our Canadian Real Estate Credit Facilities for $26 million. As at June 30, 2024, we had $855 million outstanding under our Senior Credit Facility, Real Estate Credit Facility and unsecured senior notes as compared with $929 million at December 31, 2023. The current blended cash interest cost of our debt is approximately 7.0%.

Senior Credit Facility

On June 28, 2024, we extended our Senior Credit Facility’s maturity date, revised the available borrowing capacity, and amended certain terms of the facility. The maturity date was extended to June 28, 2027, and the size was revised to US$375 million, down from US$447 million.

Our Senior Credit Facility requires that we comply with certain covenants including a leverage ratio of consolidated senior debt to consolidated Covenant EBITDA of less than 2.5:1. For purposes of calculating the leverage ratio, consolidated senior debt only includes secured indebtedness. The Senior Credit Facility limits the redemption and repurchase of junior debt subject to a pro forma senior net leverage covenant test of less than or equal to 1.75:1.

Unsecured Senior Notes

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

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

Covenants

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

	Covenant		At June 30, 2024
Senior Credit Facility
Consolidated senior debt to consolidated covenant EBITDA⁽¹⁾		<2.50		0.03
Consolidated covenant EBITDA to consolidated interest expense		>2.50		7.48
Real Estate Credit Facilities
Consolidated covenant EBITDA to consolidated interest expense		>2.50		7.48

(1)

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

Impact of foreign exchange rates

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

	For the three months ended June 30,				For the six months ended June 30,				At December 31,
	2024		2023		2024		2023		2023
Canada-U.S. foreign exchange rates
Average		1.37		1.35		1.36		1.35		—
Closing		1.37		1.32		1.37		1.32		1.32

Hedge of investments in foreign operations

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

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

QUARTERLY FINANCIAL SUMMARY

(Stated in thousands of Canadian dollars, except per share amounts)	2023				2024
Quarters ended	September 30		December 31		March 31		June 30
Revenue		446,754		506,871		527,788		429,214
Adjusted EBITDA⁽¹⁾		114,575		151,231		143,149		115,121
Net earnings		19,792		146,722		36,516		20,701
Net earnings per basic share		1.45		10.42		2.53		1.44
Net earnings per diluted share		1.45		9.81		2.53		1.44
Funds provided by operations⁽¹⁾		91,608		145,189		117,765		111,750
Cash provided by operations		88,500		170,255		65,543		174,075

(Stated in thousands of Canadian dollars, except per share amounts)	2022				2023
Quarters ended	September 30		December 31		March 31		June 30
Revenue		429,335		510,504		558,607		425,622
Adjusted EBITDA⁽¹⁾		119,561		91,090		203,219		142,093
Net earnings		30,679		3,483		95,830		26,900
Net earnings per basic share		2.26		0.27		7.02		1.97
Net earnings per diluted share		2.03		0.27		5.57		1.63
Funds provided by operations⁽¹⁾		81,327		111,339		159,653		136,959
Cash provided by operations		8,142		159,082		28,356		213,460

(1)

See “FINANCIAL MEASURES AND RATIOS.”

CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES

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

EVALUATION OF CONTROLS AND PROCEDURES

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

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

FINANCIAL MEASURES AND RATIOS

Non-GAAP Financial Measures

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

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

	For the three months ended June 30,						For the six months ended June 30,
(Stated in thousands of Canadian dollars)	2024			2023			2024			2023
Adjusted EBITDA by segment:
Contract Drilling Services		119,754			147,478			273,427			336,601
Completion and Production Services		12,440			7,507			31,045			24,913
Corporate and Other		(17,073	)		(12,892	)		(46,202	)		(16,202	)
Adjusted EBITDA		115,121			142,093			258,270			345,312
Depreciation and amortization		73,818			74,088			152,031			145,631
Gain on asset disposals		(7,675	)		(3,872	)		(10,912	)		(13,148	)
Foreign exchange		(471	)		(774	)		(77	)		(1,257	)
Finance charges		18,189			21,408			36,558			44,328
Gain on repurchase of unsecured notes		—			(100	)		—			(100	)
Loss (gain) on investments and other assets		48			5,658			(180	)		9,888
Incomes taxes		10,511			18,785			23,633			37,240
Net earnings		20,701			26,900			57,217			122,730

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 June 30,						For the six months ended June 30,
(Stated in thousands of Canadian dollars)	2024			2023			2024			2023
Capital spending by spend category
Expansion and upgrade		8,422			9,615			22,792			25,960
Maintenance, infrastructure and intangibles		30,001			35,099			71,158			69,549
		38,423			44,714			93,950			95,509
Proceeds on sale of property, plant and equipment		(10,992	)		(6,261	)		(16,178	)		(14,026	)
Net capital spending		27,431			38,453			77,772			81,483
Business acquisitions		—			—			—			28,000
Proceeds from sale of investments and other assets		(3,623	)		—			(3,623	)		—
Purchase of investments and other assets		—			2,016			—			2,071
Receipt of finance lease payments		(193	)		—			(384	)		—
Changes in non-cash working capital balances		3,328			3,593			28,415			11,325
Cash used in investing activities		26,943			44,062			102,180			122,879

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:

	June 30,		December 31,
(Stated in thousands of Canadian dollars)	2024		2023
Current assets		469,949		510,881
Current liabilities		311,479		374,009
Working capital		158,470		136,872

Total Long-term Financial Liabilities

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

Total long-term financial liabilities is calculated as follows:

	June 30,		December 31,
(Stated in thousands of Canadian dollars)	2024		2023
Total non-current liabilities		970,269		1,069,364
Deferred tax liabilities		53,130		73,515
Total long-term financial liabilities		917,139		995,849

Non-GAAP Ratios

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

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

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

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

Supplementary Financial Measures

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

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

CHANGE IN ACCOUNTING POLICY

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

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

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

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

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION AND STATEMENTS

Certain statements contained in this report, including statements that contain words such as "could", "should", "can", "anticipate", "estimate", "intend", "plan", "expect", "believe", "will", "may", "continue", "project", "potential" and similar expressions and statements relating to matters that are not historical facts constitute "forward-looking information" within the meaning of applicable Canadian securities legislation and "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995 (collectively, "forward-looking information and statements").

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

our strategic priorities for 2024;

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

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

the average number of term contracts in place for 2024;

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

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

potential commercial opportunities and rig contract renewals; and

our future debt reduction plans.

These forward-looking information and statements are based on certain assumptions and analysis made by Precision in light of our experience and our perception of historical trends, current conditions, expected future developments and other factors we believe are appropriate under the circumstances. These include, among other things:

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

the status of current negotiations with our customers and vendors;

customer focus on safety performance;

existing term contracts are neither renewed nor terminated prematurely;

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

the impact of an increase/decrease in capital spending; and

the general stability of the economic and political environments in the jurisdictions where we operate.

Undue reliance should not be placed on forward-looking information and statements. Whether actual results, performance or achievements will conform to our expectations and predictions is subject to a number of known and unknown risks and uncertainties which could cause actual results to differ materially from our expectations. Such risks and uncertainties include, but are not limited to:

volatility in the price and demand for oil and natural gas;

fluctuations in the level of oil and natural gas exploration and development activities;

fluctuations in the demand for contract drilling, well servicing and ancillary oilfield services;

our customers’ inability to obtain adequate credit or financing to support their drilling and production activity;

changes in drilling and well servicing technology, which could reduce demand for certain rigs or put us at a competitive advantage;

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

liquidity of the capital markets to fund customer drilling programs;

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

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

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

ability to improve our rig technology to improve drilling efficiency;

general economic, market or business conditions;

the availability of qualified personnel and management;

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

changes in laws or regulations, including changes in environmental laws and regulations such as increased regulation of hydraulic fracturing or restrictions on the burning of fossil fuels and greenhouse gas emissions, which could have an adverse impact on the demand for oil and natural gas;

terrorism, social, civil and political unrest in the foreign jurisdictions where we operate;

fluctuations in foreign exchange, interest rates and tax rates; and

other unforeseen conditions which could impact the use of services supplied by Precision and Precision’s ability to respond to such conditions.

Readers are cautioned that the forgoing list of risk factors is not exhaustive. Additional information on these and other factors that could affect our business, operations or financial results are included in reports on file with applicable securities regulatory authorities, including but not limited to Precision’s Annual Information Form for the year ended December 31, 2023, which may be accessed on Precision’s SEDAR+ profile at www.sedarplus.ca or under Precision’s EDGAR profile at www.sec.gov. The forward-looking information and statements contained in this report are made as of the date hereof and Precision undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, except as required by law.

Exhibit 99.2

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED)

(Stated in thousands of Canadian dollars)	June 30, 2024			December 31, 2023			January 1, 2023
ASSETS					(see Note 2d)
Current assets:
Cash	$	48,233		$	54,182		$	21,587
Accounts receivable		376,621			421,427			413,925
Inventory		38,459			35,272			35,158
Assets held for sale (Note 11)		6,636			-			-
Total current assets		469,949			510,881			470,670
Non-current assets:
Income tax recoverable		704			682			1,602
Deferred tax assets		29,578			73,662			455
Property, plant and equipment		2,321,465			2,338,088			2,303,338
Intangibles		16,659			17,310			19,575
Right-of-use assets		64,580			63,438			60,032
Finance lease receivables		5,070			5,003			-
Investments and other assets		6,528			9,971			20,451
Total non-current assets		2,444,584			2,508,154			2,405,453
Total assets	$	2,914,533		$	3,019,035		$	2,876,123

LIABILITIES AND EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$	290,440		$	350,749		$	404,350
Income taxes payable		1,114			3,026			2,991
Current portion of lease obligations		18,962			17,386			12,698
Current portion of long-term debt (Note 5)		963			2,848			2,287
Total current liabilities		311,479			374,009			422,326

Non-current liabilities:
Share-based compensation (Note 7)		9,159			16,755			47,836
Provisions and other		7,466			7,140			7,538
Lease obligations		55,843			57,124			52,978
Long-term debt (Note 5)		844,671			914,830			1,085,970
Deferred tax liabilities		53,130			73,515			28,946
Total non-current liabilities		970,269			1,069,364			1,223,268
Shareholders’ equity:
Shareholders’ capital (Note 8)		2,346,823			2,365,129			2,299,533
Contributed surplus		75,604			75,086			72,555
Deficit		(954,812	)		(1,012,029	)		(1,301,273	)
Accumulated other comprehensive income		165,170			147,476			159,714
Total shareholders’ equity		1,632,785			1,575,662			1,230,529
Total liabilities and shareholders’ equity	$	2,914,533		$	3,019,035		$	2,876,123

See accompanying notes to condensed interim consolidated financial statements.

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF NET EARNINGS (UNAUDITED)

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


Revenue (Note 3)	$	429,214		$	425,622		$	957,002		$	984,229
Expenses:
Operating		285,410			260,170			624,916			600,037
General and administrative		28,683			23,359			73,816			38,880
Earnings before income taxes, loss (gain) on investments and other assets, gain on repurchase of unsecured senior notes, finance charges, foreign exchange, gain on asset disposals, and depreciation and amortization		115,121			142,093			258,270			345,312
Depreciation and amortization		73,818			74,088			152,031			145,631
Gain on asset disposals		(7,675	)		(3,872	)		(10,912	)		(13,148	)
Foreign exchange		(471	)		(774	)		(77	)		(1,257	)
Finance charges (Note 6)		18,189			21,408			36,558			44,328
Gain on repurchase of unsecured senior notes		-			(100	)		-			(100	)
Loss (gain) on investments and other assets		48			5,658			(180	)		9,888
Earnings before income taxes		31,212			45,685			80,850			159,970
Income taxes:
Current		1,345			1,120			2,362			1,961
Deferred		9,166			17,665			21,271			35,279
		10,511			18,785			23,633			37,240
Net earnings	$	20,701		$	26,900		$	57,217		$	122,730
Net earnings per share: (Note 9)
Basic	$	1.44		$	1.97		$	3.97		$	8.98
Diluted	$	1.44		$	1.63		$	3.97		$	7.22

See accompanying notes to condensed interim consolidated financial statements.

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

	Three Months Ended June 30,						Six Months Ended June 30,
(Stated in thousands of Canadian dollars)	2024			2023			2024			2023
Net earnings	$	20,701		$	26,900		$	57,217		$	122,730
Unrealized gain (loss) on translation of assets and liabilities of operations denominated in foreign currency		14,260			(31,718	)		46,513			(35,858	)
Foreign exchange gain(loss) on net investment hedge with U.S. denominated debt		(8,660	)		20,459			(28,819	)		23,132
Comprehensive income	$	26,301		$	15,641		$	74,911		$	110,004

See accompanying notes to condensed interim consolidated financial statements.

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

	Three Months Ended June 30,						Six Months Ended June 30,
(Stated in thousands of Canadian dollars)	2024			2023			2024			2023
Cash provided by (used in):
Operations:
Net earnings	$	20,701		$	26,900		$	57,217		$	122,730
Adjustments for:
Long-term compensation plans		4,419			1,740			11,870			(2,377	)
Depreciation and amortization		73,818			74,088			152,031			145,631
Gain on asset disposals		(7,675	)		(3,872	)		(10,912	)		(13,148	)
Foreign exchange		(578	)		(786	)		150			(1,288	)
Finance charges		18,189			21,408			36,558			44,328
Income taxes		10,511			18,785			23,633			37,240
Other		93			(220	)		93			(220	)
Loss (gain) on investments and other assets		48			5,658			(180	)		9,888
Gain on repurchase of unsecured senior notes		-			(100	)		-			(100	)
Income taxes paid		(4,100	)		(2,037	)		(4,334	)		(2,208	)
Income taxes recovered		-			3			-			3
Interest paid		(4,313	)		(4,827	)		(37,743	)		(44,202	)
Interest received		637			219			1,132			335
Funds provided by operations		111,750			136,959			229,515			296,612
Changes in non-cash working capital balances		62,325			76,501			10,103			(54,796	)
Cash provided by operations		174,075			213,460			239,618			241,816

Investments:
Purchase of property, plant and equipment		(38,423	)		(44,037	)		(93,950	)		(94,832	)
Purchase of intangibles		-			(677	)		-			(677	)
Proceeds on sale of property, plant and equipment		10,992			6,261			16,178			14,026
Proceeds from sale of investments and other assets		3,623			-			3,623			-
Business acquisitions		-			-			-			(28,000	)
Purchase of investments and other assets		-			(2,016	)		-			(2,071	)
Receipt of finance lease payments		193			-			384			-
Changes in non-cash working capital balances		(3,328	)		(3,593	)		(28,415	)		(11,325	)
Cash used in investing activities		(26,943	)		(44,062	)		(102,180	)		(122,879	)

Financing:
Issuance of long-term debt		-			-			-			139,049
Repayments of long-term debt		(102,132	)		(177,677	)		(102,848	)		(239,021	)
Repurchase of share capital (Note 8)		(23,493	)		(7,958	)		(33,574	)		(12,951	)
Issuance of common shares from the exercise of options		191			-			191			-
Debt amendment fees		(1,317	)		-			(1,317	)		-
Lease payments		(3,219	)		(2,042	)		(6,419	)		(4,003	)
Cash used in financing activities		(129,970	)		(187,677	)		(143,967	)		(116,926	)
Effect of exchange rate changes on cash		123			(421	)		580			(679	)
Increase (decrease) in cash		17,285			(18,700	)		(5,949	)		1,332
Cash, beginning of period		30,948			41,619			54,182			21,587
Cash, end of period	$	48,233		$	22,919		$	48,233		$	22,919

See accompanying notes to condensed interim consolidated financial statements.

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED)

(Stated in thousands of Canadian dollars)	Shareholders’ Capital			Contributed Surplus			Accumulated Other Comprehensive Income		Deficit			Total Equity
Balance at January 1, 2024	$	2,365,129		$	75,086		$	147,476	$	(1,012,029	)	$	1,575,662
Net earnings for the period		-			-			-		57,217			57,217
Other comprehensive income for the period		-			-			17,694		-			17,694
Share options exercised		271			(80	)		-		-			191
Settlement of Executive Performance and Restricted Share Units		21,846			(1,479	)		-		-			20,367
Share repurchases (Note 8)		(40,423	)		-			-		-			(40,423	)
Share-based compensation expense		-			2,077			-		-			2,077
Balance at June 30, 2024	$	2,346,823		$	75,604		$	165,170	$	(954,812	)	$	1,632,785

(Stated in thousands of Canadian dollars)	Shareholders’ Capital			Contributed Surplus		Accumulated Other Comprehensive Income			Deficit			Total Equity
Balance at January 1, 2023	$	2,299,533		$	72,555	$	159,714		$	(1,301,273	)	$	1,230,529
Net earnings for the period		-			-		-			122,730			122,730
Other comprehensive loss for the period		-			-		(12,726	)		-			(12,726	)
Settlement of Executive Performance and Restricted Share Units		19,206			-		-			-			19,206
Share repurchases		(12,951	)		-		-			-			(12,951	)
Redemption of non-management directors share units		757			-		-			-			757
Share-based compensation expense		-			1,133		-			-			1,133
Balance at June 30, 2023	$	2,306,545		$	73,688	$	146,988		$	(1,178,543	)	$	1,348,678

See accompanying notes to condensed interim consolidated financial statements.

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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

NOTE 1. DESCRIPTION OF BUSINESS

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

NOTE 2. BASIS OF PRESENTATION

(a) Statement of Compliance

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

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

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

These condensed interim consolidated financial statements were approved by the Board of Directors on July 30, 2024.

(b) Use of Estimates and Judgements

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

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

(c) Environmental Reporting Regulations

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

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

(d) Change in Accounting Policy

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

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

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

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

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

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

NOTE 3. Revenue

(a)

Disaggregation of revenue

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

Three Months Ended June 30, 2024	Contract Drilling Services		Completion and Production Services		Corporate and Other		Inter- Segment Eliminations			Total
United States	$	147,089	$	3,870	$	-	$	-		$	150,959
Canada		163,429		61,956		-		(2,215	)		223,170
International		55,085		-		-		-			55,085
	$	365,603	$	65,826	$	-	$	(2,215	)	$	429,214

Day rate/hourly services	$	363,202	$	65,826	$	-	$	(178	)	$	428,850
Other		2,401		-		-		(2,037	)		364
	$	365,603	$	65,826	$	-	$	(2,215	)	$	429,214

Three Months Ended June 30, 2023	Contract Drilling Services		Completion and Production Services		Corporate and Other		Inter- Segment Eliminations			Total
United States	$	221,189	$	3,607	$	-	$	(3	)	$	224,793
Canada		129,088		42,554		-		(1,494	)		170,148
International		30,681		-		-		-			30,681
	$	380,958	$	46,161	$	-	$	(1,497	)	$	425,622

Day rate/hourly services	$	372,652	$	46,161	$	-	$	(223	)	$	418,590
Shortfall payments/idle but contracted		6,358		-		-		-			6,358
Other		1,948		-		-		(1,274	)		674
	$	380,958	$	46,161	$	-	$	(1,497	)	$	425,622

Six Months Ended June 30, 2024	Contract Drilling Services		Completion and Production Services		Corporate and Other		Inter- Segment Eliminations			Total
United States	$	300,032	$	8,011	$	-	$	-		$	308,043
Canada		402,006		144,902		-		(4,881	)		542,027
International		106,932		-		-		-			106,932
	$	808,970	$	152,913	$	-	$	(4,881	)	$	957,002

Day rate/hourly services	$	803,536	$	152,913	$	-	$	(355	)	$	956,094
Other		5,434		-		-		(4,526	)		908
	$	808,970	$	152,913	$	-	$	(4,881	)	$	957,002

Six Months Ended June 30, 2023	Contract Drilling Services		Completion and Production Services		Corporate and Other		Inter- Segment Eliminations			Total
United States	$	475,327	$	7,684	$	-	$	(17	)	$	482,994
Canada		330,766		113,000		-		(3,472	)		440,294
International		60,941		-		-		-			60,941
	$	867,034	$	120,684	$	-	$	(3,489	)	$	984,229

Day rate/hourly services	$	846,317	$	120,684	$	-	$	(237	)	$	966,764
Shortfall payments/idle but contracted		7,241		-		-		-			7,241
Turnkey drilling services		8,988		-		-		-			8,988
Other		4,488		-		-		(3,252	)		1,236
	$	867,034	$	120,684	$	-	$	(3,489	)	$	984,229

(b)

Seasonality

Precision has operations that are carried on in Canada which represent approximately 57% (2023 – 45%) of consolidated revenue for the six months ended June 30, 2024 and 39% (2023 – 37%) of consolidated total assets as at June 30, 2024. The ability to move heavy equipment in Canadian oil and natural gas fields is dependent on weather conditions. As warm weather returns in the spring, the winter's frost comes out of the ground rendering many secondary roads incapable of supporting the weight of heavy equipment until they have thoroughly dried out. The duration of this “spring break-up” has a direct impact on Precision’s activity levels. In addition, many exploration and production areas in northern Canada are accessible only in winter months when the ground is frozen hard enough to support equipment. The timing of freeze up and spring break-up affects the ability to move equipment in and out of these areas. As a result, late March through May is traditionally Precision’s slowest time in this region.

NOTE 4. SEGMENTED INFORMATION

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

Three Months Ended June 30, 2024	Contract Drilling Services			Completion and Production Services			Corporate and Other			Inter- Segment Eliminations			Total
Revenue	$	365,603		$	65,826		$	-		$	(2,215	)	$	429,214
Earnings before income taxes, loss (gain) on investments and other assets, gain on repurchase of unsecured senior notes, finance charges, foreign exchange, gain on asset disposals, and depreciation and amortization		119,754			12,440			(17,073	)		-			115,121
Depreciation and amortization		68,732			3,058			2,028			-			73,818
Gain on asset disposals		(3,887	)		(975	)		(2,813	)		-			(7,675	)
Total assets		2,479,410			244,705			190,418			-			2,914,533
Capital expenditures		32,868			4,927			628			-			38,423

Three Months Ended June 30, 2023	Contract Drilling Services			Completion and Production Services			Corporate and Other			Inter- Segment Eliminations			Total
Revenue	$	380,958		$	46,161		$	-		$	(1,497	)	$	425,622
Earnings before income taxes, loss (gain) on investments and other assets, gain on repurchase of unsecured senior notes, finance charges, foreign exchange, gain on asset disposals, and depreciation and amortization		147,478			7,507			(12,892	)		-			142,093
Depreciation and amortization		68,151			3,638			2,299			-			74,088
Gain on asset disposals		(3,706	)		(148	)		(18	)		-			(3,872	)
Total assets		2,449,323			161,403			121,968			-			2,732,694
Capital expenditures		41,375			2,442			897			-			44,714

Six Months Ended June 30, 2024	Contract Drilling Services			Completion and Production Services			Corporate and Other			Inter- Segment Eliminations			Total
Revenue	$	808,970		$	152,913		$	-		$	(4,881	)	$	957,002
Earnings before income taxes, loss (gain) on investments and other assets, gain on repurchase of unsecured senior notes, finance charges, foreign exchange, gain on asset disposals, and depreciation and amortization		273,427			31,045			(46,202	)		-			258,270
Depreciation and amortization		137,784			9,878			4,369			-			152,031
Gain on asset disposals		(6,554	)		(1,517	)		(2,841	)		-			(10,912	)
Total assets		2,479,410			244,705			190,418			-			2,914,533
Capital expenditures		85,253			7,847			850			-			93,950

Six Months Ended June 30, 2023	Contract Drilling Services			Completion and Production Services			Corporate and Other			Inter- Segment Eliminations			Total
Revenue	$	867,034		$	120,684		$	-		$	(3,489	)	$	984,229
Earnings before income taxes, loss (gain) on investments and other assets, gain on repurchase of unsecured senior notes, finance charges, foreign exchange, gain on asset disposals, and depreciation and amortization		336,601			24,913			(16,202	)		-			345,312
Depreciation and amortization		133,706			7,369			4,556			-			145,631
Gain on asset disposals		(12,286	)		(714	)		(148	)		-			(13,148	)
Total assets		2,449,323			161,403			121,968			-			2,732,694
Capital expenditures		90,199			4,225			1,085			-			95,509

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

	Three Months Ended June 30,						Six Months Ended June 30,
	2024			2023			2024			2023
Total segment earnings before income taxes, loss (gain) on investments and other assets, gain on repurchase of unsecured senior notes, finance charges, foreign exchange, gain on asset disposals, and depreciation and amortization	$	115,121		$	142,093		$	258,270		$	345,312
Deduct:
Depreciation and amortization		73,818			74,088			152,031			145,631
Gain on asset disposals		(7,675	)		(3,872	)		(10,912	)		(13,148	)
Foreign exchange		(471	)		(774	)		(77	)		(1,257	)
Finance charges		18,189			21,408			36,558			44,328
Gain on repurchase of unsecured senior notes		-			(100	)		-			(100	)
Loss (gain) on investments and other assets		48			5,658			(180	)		9,888
Income taxes		10,511			18,785			23,633			37,240
Net earnings	$	20,701		$	26,900		$	57,217		$	122,730

NOTE 5. LONG-TERM DEBT

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

	June 30,		December 31,		June 30,			December 31,
	2024		2023		2024			2023

Current Portion of Long-Term Debt
Canadian Real Estate Credit Facility	US$	-	US$	-	$	-		$	1,915
U.S. Real Estate Credit Facility		704		704		963			933
	US$	704	US$	704	$	963		$	2,848

Long-Term Debt
Canadian Real Estate Credit Facility		-		-		-			24,018
U.S. Real Estate Credit Facility		7,333		7,685		10,028			10,181
Unsecured Senior Notes:
7.125% senior notes due 2026		217,330		273,330		297,263			362,096
6.875% senior notes due 2029		400,000		400,000		547,120			529,904
	US$	624,663	US$	681,015		854,411			926,199
Less net unamortized debt issue costs and original issue discount						(9,740	)		(11,369	)
					$	844,671		$	914,830

	Unsecured Senior Notes			Canadian Real Estate Credit Facility			U.S. Real Estate Credit Facility			Debt Issue Costs and Original Issue Discount			Total
Current	$	-		$	1,915		$	933		$	-		$	2,848
Long-term		892,000			24,018			10,181			(11,369	)		914,830
December 31, 2023		892,000			25,933			11,114			(11,369	)		917,678
Changes from financing cash flows:
Repayment of unsecured senior notes		(76,436	)		-			-			-			(76,436	)
Repayment of Real Estate Credit Facility		-			(25,933	)		(479	)		-			(26,412	)
		815,564			-			10,635			(11,369	)		814,830
Amortization of debt issue costs		-			-			-			1,628			1,628
Foreign exchange adjustment		28,819			-			356			1			29,176
June 30, 2024	$	844,383		$	-		$	10,991		$	(9,740	)	$	845,634

Current	$	-		$	-		$	963		$	-		$	963
Long-term		844,383			-			10,028			(9,740	)		844,671
June 30, 2024	$	844,383		$	-		$	10,991		$	(9,740	)	$	845,634

On June 28, 2024, Precision extended its Senior Credit Facility’s maturity date, revised the available borrowing capacity, and amended certain terms of the facility. The maturity date was extended to June 28, 2027, and the size was revised to US$375 million, down from US$447 million.

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

	Covenant	At June 30, 2024
Senior Credit Facility
Consolidated senior debt to consolidated covenant EBITDA⁽¹⁾	< 2.50		0.03
Consolidated covenant EBITDA to consolidated interest expense	> 2.50		7.48
Real Estate Credit Facilities
Consolidated covenant EBITDA to consolidated interest expense	> 2.50		7.48

(1)

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

NOTE 6. FINANCE CHARGES

	Three Months Ended June 30,						Six Months Ended June 30,
	2024			2023			2024			2023
Interest:
Long-term debt	$	16,639		$	19,660		$	33,667		$	40,873
Lease obligations		1,043			909			2,082			1,771
Other		158			33			249			188
Income		(777	)		(256	)		(1,345	)		(360	)
Amortization of debt issue costs, loan commitment fees and original issue discount		1,126			1,062			1,905			1,856
Finance charges	$	18,189		$	21,408		$	36,558		$	44,328

NOTE 7. SHARE-BASED COMPENSATION PLANS

Liability Classified Plans

	Restricted Share Units ^(a)			Performance Share Units ^(a)			Non-Management Directors’ DSUs ^(b)		Total
December 31, 2023	$	16,114		$	64,042		$	8,367	$	88,523
Expensed during period		7,550			19,473			3,414		30,437
Settlement in shares		(2,012	)		(18,355	)		-		(20,367	)
Payments and redemptions		(12,977	)		(39,913	)		-		(52,890	)
Foreign exchange		(132	)		(433	)		-		(565	)
June 30, 2024	$	8,543		$	24,814		$	11,781	$	45,138

Current	$	6,698		$	17,500		$	11,781	$	35,979
Long-term		1,845			7,314			-		9,159
	$	8,543		$	24,814		$	11,781	$	45,138

(a) Restricted Share Units and Performance Share Units

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

	RSUs Outstanding			PSUs Outstanding
December 31, 2023		276,094			794,743
Granted		90,448			158,100
Redeemed		(180,300	)		(449,465	)
Forfeited		(3,769	)		(3,455	)
June 30, 2024		182,473			499,923

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

A summary of the activity under the non-management director Deferred Share Unit (DSU) plan is presented below:

	DSUs Outstanding
December 31, 2023		116,280
Granted		6,187
June 30, 2024		122,467

Equity Settled Plans

(c) Executive Restricted Share Units Plan

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

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

Included in net earnings for the three and six months ended June 30, 2024 were expenses of $1 million (2023 – $1 million) and $2 million (2023 – $1 million) respectively.

(d) Option Plan

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

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

U.S. share options	Outstanding			Range of Exercise Price (US$)				Weighted Average Exercise Price (US$)		Exercisable
December 31, 2023		128,398		$	51.20	-	111.47	$	85.80		128,398
Exercised		(1,150	)		68.80	-	68.80		68.80
Forfeited		(57,756	)		68.80	-	111.47		109.04
June 30, 2024		69,492		$	51.20	-	72.46	$	66.77		69,492

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

As at June 30, 2024, there were 1,470 (2023 – 1,470) deferred share units outstanding.

NOTE 8. SHAREHOLDERS’ CAPITAL

Common shares	Number			Amount
December 31, 2023		14,336,539		$	2,365,129
Settlement of PSUs and RSUs		265,143			21,846
Share options exercised		2,075			271
Share repurchases		(366,214	)		(33,574	)
Share repurchase accrual		-			(6,849	)
June 30, 2024		14,237,543		$	2,346,823

The Corporation entered into an Automated Share Purchase Plan (ASPP) with an independent broker to permit the Corporation to repurchase common shares during its internal blackout period. The volume of purchases is determined by the broker in its sole discretion based on purchase price and maximum volume parameters established by the Corporation under the ASPP. The Corporation recorded a liability for purchases that are estimated to occur during the blackout period based on the parameters of the Normal Course Issuer Bid (NCIB) and ASPP. As at June 30, 2024, the Corporation recorded a liability in accounts payable and corresponding decrease to share capital of $7 million.

NOTE 9. PER SHARE AMOUNTS

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

	Three Months Ended June 30,					Six Months Ended June 30,
	2024		2023			2024		2023
Net earnings – basic	$	20,701	$	26,900		$	57,217	$	122,730
Effect of share options and other equity compensation plans		-		(2,902	)		-		(15,469	)
Net earnings – diluted	$	20,701	$	23,998		$	57,217	$	107,261

	Three Months Ended June 30,				Six Months Ended June 30,
(Stated in thousands)	2024		2023		2024		2023
Weighted average shares outstanding – basic		14,389		13,672		14,398		13,661
Effect of share options and other equity compensation plans		6		1,075		4		1,196
Weighted average shares outstanding – diluted		14,395		14,747		14,402		14,857

NOTE 10. FAIR VALUES OF FINANCIAL INSTRUMENTS

The carrying values of cash, accounts receivable, and accounts payable and accrued liabilities approximates their fair value due to the relatively short period to maturity of the instruments. At the end of each reporting period, investments and other assets are measured at their estimated fair value, with changes in fair value recognized in profit or loss. Amounts drawn on the Senior Credit Facility and the Canadian and U.S. Real Estate Credit Facilities are measured at amortized cost and approximate fair value as this indebtedness is subject to floating rates of interest. The fair value of the unsecured senior notes at June 30, 2024 was approximately $839 million (December 31, 2023 – $867 million).

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

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

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

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

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

NOTE 11. ASSETS HELD FOR SALE

During the quarter, Precision committed to sell certain assets contained within the Contract Drilling and Completion and Production Services segments. The identified assets were previously acquired through business acquisitions and subsequently deemed as redundant. Accordingly, these assets were presented as held for sale at June 30, 2024 as sales efforts have been initiated and expected to be completed within one year. At June 30, 2024, property, plant and equipment with a carrying amount of $7 million was reclassified as assets held for sale.

SHAREHOLDER INFORMATION

STOCK EXCHANGE LISTINGS

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

TRANSFER AGENT AND REGISTRAR

Computershare Trust Company of Canada

Calgary, Alberta

TRANSFER POINT

Computershare Trust Company NA

Canton, Massachusetts

Q2 2024 TRADING PROFILE

Toronto (TSX: PD)

High: $104.90

Low: $88.00

Close: $96.20

Volume Traded: 5,936,839

New York (NYSE: PDS)

High: US$77.21

Low: US$64.18

Close: US$70.34

Volume Traded: 4,168,000

ACCOUNT QUESTIONS

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

• change of address

• lost unit certificates

• transfer of shares to another person

• estate settlement

Computershare Trust Company of Canada

100 University Avenue

9th Floor, North Tower

Toronto, Ontario M5J 2Y1

Canada

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

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

Email: service@computershare.com

ONLINE INFORMATION

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

CORPORATE INFORMATION

DIRECTORS

William T. Donovan

Steven W. Krablin

Susan M. MacKenzie

Lori A. Lancaster

Kevin O. Meyers

Kevin A. Neveu

David W. Williams

Alice L. Wong

OFFICERS

Kevin A. Neveu

President and Chief Executive Officer

Veronica H. Foley

Chief Legal & Compliance Officer

Carey T. Ford

Chief Financial Officer

Shuja U. Goraya

Chief Technology Officer

Darren J. Ruhr

Chief Administrative Officer

Gene C. Stahl

President, North American Drilling

AUDITORS

KPMG LLP

Calgary, Alberta

HEAD OFFICE

Suite 800, 525 8th Avenue SW

Calgary, Alberta, T2P 1G1

Canada

Telephone: 403-716-4500

Facsimile: 403-264-0251

Email: info@precisiondrilling.com

www.precisiondrilling.com

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