# EDGAR Filing Document

**Accession Number:** 0001013605
**File Stem:** 0001171843-25-004830
**Filing Date:** 2025-7
**Character Count:** 112288
**Document Hash:** dd8e0b511b294250253dcc1f2b426a72
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001171843-25-004830.hdr.sgml**: 20250730

**ACCESSION NUMBER**: 0001171843-25-004830

**CONFORMED SUBMISSION TYPE**: 6-K

**PUBLIC DOCUMENT COUNT**: 6

**CONFORMED PERIOD OF REPORT**: 20250730

**FILED AS OF DATE**: 20250730

**DATE AS OF CHANGE**: 20250730

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** PRECISION DRILLING Corp
- **CENTRAL INDEX KEY:** 0001013605
- **STANDARD INDUSTRIAL CLASSIFICATION:** DRILLING OIL & GAS WELLS [1381]
- **ORGANIZATION NAME:** 01 Energy & Transportation
- **EIN:** 000000000
- **STATE OF INCORPORATION:** A0
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 6-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-14534
- **FILM NUMBER:** 251167581

**BUSINESS ADDRESS:**
- **STREET 1:** 150 - 6TH AVENUE S.W.
- **STREET 2:** SUITE 4200
- **CITY:** CALGARY
- **STATE:** A0
- **ZIP:** T2P 3Y7
- **BUSINESS PHONE:** 403-716-4500

**MAIL ADDRESS:**
- **STREET 1:** 150 - 6TH AVENUE S.W.
- **STREET 2:** SUITE 4200
- **CITY:** CALGARY
- **STATE:** A0
- **ZIP:** T2P 3Y7

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** PRECISION DRILLING TRUST
- **DATE OF NAME CHANGE:** 20051121

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** PRECISION DRILLING CORP
- **DATE OF NAME CHANGE:** 19960506

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, July 2025**

Commission File Number: 001-14534

**Precision Drilling Corporation**

(Exact name of registrant as specified in its charter)

**800, 525 - 8 Avenue S.W.<br> Calgary, Alberta<br> 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<u> </u> Form 40-F <u>X</u> 

**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: **July 30, 2025** | **PRECISION DRILLING CORPORATION** | **PRECISION DRILLING CORPORATION** |
|  | By: | /s/ Carey T Ford |
|  | Name: | Carey T Ford |
|  | Title: | Chief Financial Officer |

---

<u>Exhibit</u> <u>DESCRIPTION</u>

[31.1](exh_311.htm) [Certification of Chief Executive Officer, Kevin Neveu, regarding the *"Certification of Interim Filings"* pursuant to Form 52-109F2.](exh_311.htm)

[31.2](exh_312.htm) [Certification of Chief Financial Officer, Carey Ford, regarding the *"Certification of Interim Filings"* pursuant to Form 52-109F2.](exh_312.htm)

[99.1](exh_991.htm) [Management's Discussion and Analysis for the period ended June 30, 2025.](exh_991.htm)

[99.2](exh_992.htm) [Consolidated Financial Statements for the period ended June 30, 2025.](exh_992.htm)

## Exhibit 31.1

**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:

1.  ***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, 2025.

2.  ***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.

3.  ***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.

4.  ***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.

5.  ***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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance
that

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.

6.  ***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, 2025** and ended on **June 30, 2025** that has materially
affected, or is reasonably likely to materially affect, the issuer's ICFR.

Date: **July 30, 2025**

---

| | |
|:---|:---|
| By: | */s/Kevin A Neveu* |
|  | Name: Kevin A. Neveu<br> Title: President and Chief Executive Officer |

---

## Exhibit 31.2

**Exhibit 31.2**

**FORM 52-109F2**

**CERTIFICATION OF INTERIM FILINGS**

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

1.  ***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, 2025.

2.  ***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.

3.  ***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.

4.  ***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.

5.  ***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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance
that

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.

6.  ***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, 2025** and ended on **June 30, 2025** that has materially
affected, or is reasonably likely to materially affect, the issuer's ICFR.

Date: **July 30, 2025**

---

| | |
|:---|:---|
| By: | */s/Carey T. Ford* |
|  | Name: Carey T. Ford<br> Title: Chief Financial Officer |

---

## Exhibit 99.1

**Exhibit 99.1**

![](image_001.jpg)

**PRECISION DRILLING CORPORATION**

Second Quarter Report for the three months ended June 30, 2025 and 2024

*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, 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") (TSX:PD; NYSE:PDS) announces 2025 second quarter results and confirms shareholder return targets while increasing its investment in its *Super Series* rig fleet to meet customer demand and drive drilling revenue growth.

**Financial Highlights**

&nbsp;&nbsp;&nbsp;&nbsp;· Revenue was $407 million, including $7 million for customer-funded rig upgrades, compared to $429 million
in the second quarter of 2024. The decrease was mainly attributable to lower U.S. and international activity and day rates, as well as
a decline in well service activity.

&nbsp;&nbsp;&nbsp;&nbsp;· Adjusted EBITDA<sup>(1)</sup> was $108 million, including $4 million
of share-based compensation expense. In 2024, second quarter Adjusted EBITDA<sup>(1)</sup> was $115 million and included share-based compensation
expense of $10 million.

&nbsp;&nbsp;&nbsp;&nbsp;· Net earnings attributable to shareholders in the second quarter
was $16 million or $1.21 per share, marking the 12<sup>th</sup> consecutive quarter of positive earnings. In the second quarter of 2024,
net earnings attributable to shareholders was $21 million or $1.44 per share.

&nbsp;&nbsp;&nbsp;&nbsp;· Cash provided by operations during the quarter was $147 million
and the Company repaid $74 million of debt and repurchased $14 million of common shares. Year to date, Precision has repaid $91 million
of debt and repurchased $45 million of shares and is well above the midpoint of its annual guidance for both these targets.

&nbsp;&nbsp;&nbsp;&nbsp;· Capital expenditures were $53 million, bringing the year-to-date
total to $113 million. Precision has revised its 2025 capital budget to $240 million from $200 million as it plans to upgrade 22 of its *Super Series* rigs to meet customer demand, secure additional customer commitments, and drive revenue growth.

**Operational Highlights**

&nbsp;&nbsp;&nbsp;&nbsp;· Canada averaged 50 active drilling rigs compared to 49 active rigs
in the second quarter of 2024, outpacing Canadian industry activity that declined 5%.

&nbsp;&nbsp;&nbsp;&nbsp;· Canadian revenue per utilization day increased to $37,725 from $36,075
in the same period last year, primarily due to customer-funded rig upgrades.

&nbsp;&nbsp;&nbsp;&nbsp;· U.S. averaged 33 active rigs versus 36 in the second quarter of
2024, reflecting a similar decline as industry activity. Compared to the first quarter, Precision's average U.S. rig count was up 3 rigs
with U.S. rig utilization days increasing 13% while industry declined 3%.

&nbsp;&nbsp;&nbsp;&nbsp;· U.S. revenue per utilization day was US$31,113 compared to US$33,227
in the same period last year, primarily due to lower industry activity that caused downward pressure on rates.

&nbsp;&nbsp;&nbsp;&nbsp;· Internationally, we averaged seven active rigs versus eight in the
second quarter of 2024 and realized revenue of US$36 million compared to US$40 million in the second quarter of 2024.

&nbsp;&nbsp;&nbsp;&nbsp;· Service rig operating hours decreased 23% compared to the same quarter
in 2024 due to customer driven project deferrals, the impact of weather, and lower U.S. activity. During the quarter we wound down
our U.S. well servicing operations, selling certain assets and mobilizing others into Canada.

&nbsp;&nbsp;&nbsp;&nbsp;(1) See "FINANCIAL
 MEASURES AND RATIOS. "

**SELECT FINANCIAL AND OPERATING INFORMATION**

**Financial Highlights**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | For the three months ended June 30, | For the three months ended June 30, | For the three months ended June 30, | For the six months ended June 30, | For the six months ended June 30, | For the six months ended June 30, |
| *(Stated in thousands of Canadian dollars, except per share amounts)* | **2025** | 2024 | % Change | **2025** | 2024 | % Change |
| Revenue | **406615** | 429214 | (5.3) | **902946** | 957002 | (5.6) |
| Adjusted EBITDA<sup>(1)</sup> | **108100** | 115121 | (6.1) | **245597** | 258270 | (4.9) |
| Net earnings | **16487** | 20701 | (20.4) | **51434** | 57217 | (10.1) |
| Net earnings attributable to shareholders | **16267** | 20701 | (21.4) | **50778** | 57217 | (11.3) |
| Cash provided by operations | **147495** | 174075 | (15.3) | **210914** | 239618 | (12.0) |
| Funds provided by operations<sup>(1)</sup> | **104290** | 111750 | (6.7) | **214132** | 229515 | (6.7) |
| Cash used in investing activities | **36049** | 26943 | 33.8 | **93251** | 102180 | (8.7) |
| Capital spending by spend category<sup>(1)</sup> |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Expansion and upgrade | **26757** | 8422 | 217.7 | **46303** | 22792 | 103.2 |
| &nbsp;&nbsp;&nbsp;Maintenance and infrastructure | **26016** | 30001 | (13.3) | **66435** | 71158 | (6.6) |
| &nbsp;&nbsp;&nbsp;Proceeds on sale | **(11829)** | (10992) | 7.6 | **(15594)** | (16178) | (3.6) |
| Net capital spending<sup>(1)</sup> | **40944** | 27431 | 49.3 | **97144** | 77772 | 24.9 |
| Net earnings attributable to shareholders per share : |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic | **1.21** | 1.44 | (16.0) | **3.75** | 3.97 | (5.5) |
| &nbsp;&nbsp;&nbsp;Diluted | **1.07** | 1.44 | (25.7) | **3.28** | 3.97 | (17.3) |
| Weighted average shares outstanding: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic | **13401** | 14389 | (6.9) | **13541** | 14398 | (6.0) |
| &nbsp;&nbsp;&nbsp;Diluted | **13987** | 14395 | (2.8) | **14158** | 14402 | (1.7) |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) See
 "FINANCIAL MEASURES AND RATIOS. "

**Operating Highlights**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | For the three months ended June 30, | For the three months ended June 30, | For the three months ended June 30, | For the six months ended June 30, | For the six months ended June 30, | For the six months ended June 30, |
| | **2025** | 2024 | % Change | **2025** | 2024 | % Change |
| Contract drilling rig fleet | **215** | 214 | 0.5 | **215** | 214 | 0.5 |
| Drilling rig utilization days: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Canada | **4580** | 4464 | 2.6 | **11260** | 11081 | 1.6 |
| &nbsp;&nbsp;&nbsp;U.S. | **3033** | 3236 | (6.3) | **5724** | 6689 | (14.4) |
| &nbsp;&nbsp;&nbsp;International | **680** | 728 | (6.6) | **1400** | 1456 | (3.8) |
| Revenue per utilization day: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Canada *(Cdn$)* | **37725** | 36075 | 4.6 | **36465** | 35789 | 1.9 |
| &nbsp;&nbsp;&nbsp;U.S. *(US$)* | **31113** | 33227 | (6.4) | **32074** | 33041 | (2.9) |
| &nbsp;&nbsp;&nbsp;International *(US$)* | **53129** | 55301 | (3.9) | **51221** | 54055 | (5.2) |
| Operating costs per utilization day: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Canada *(Cdn$)* | **22419** | 21652 | 3.5 | **21471** | 20641 | 4.0 |
| &nbsp;&nbsp;&nbsp;U.S. *(US$)* | **22087** | 22427 | (1.5) | **22784** | 22062 | 3.3 |
| Service rig fleet | **144** | 165 | (12.7) | **144** | 165 | (12.7) |
| Service rig operating hours | **43837** | 57051 | (23.2) | **110823** | 131555 | (15.8) |

---

**Drilling Activity**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | Average for the quarter ended 2024 | Average for the quarter ended 2024 | Average for the quarter ended 2024 | Average for the quarter ended 2024 | Average for the quarter ended 2025 | Average for the quarter ended 2025 |
| | Mar. 31 | June 30 | Sept. 30 | Dec. 31 | Mar. 31 | June 30 |
| Average Precision active rig count<sup>(1)</sup>: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Canada | 73 | 49 | 72 | 65 | 74 | 50 |
| &nbsp;&nbsp;&nbsp;U.S. | 38 | 36 | 35 | 34 | 30 | 33 |
| &nbsp;&nbsp;&nbsp;International | 8 | 8 | 8 | 8 | 8 | 7 |
| Total | 119 | 93 | 115 | 107 | 112 | 90 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Average number
 of drilling rigs working or moving.

**Financial Position**

---

| | | |
|:---|:---|:---|
| *(Stated in thousands of Canadian dollars, except ratios)* | **June 30, 2025** | December 31, 2024 |
| Working capital<sup>(1)</sup> | **3681** | 162592 |
| Cash | **46698** | 73771 |
| Long-term debt | **546429** | 812469 |
| Total long-term financial liabilities<sup>(1)</sup> | **609299** | 888173 |
| Total assets | **2742837** | 2956315 |
| Long-term debt to long-term debt plus equity ratio <sup>(1)</sup> | **0.25** | 0.33 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) See "FINANCIAL
 MEASURES AND RATIOS. "

***Summary for the three months ended June 30, 2025:***

 ****

&nbsp;&nbsp;&nbsp;&nbsp;· Revenue in the second quarter was $407 million and included $7 million for customer-funded upgrades. While
Canadian drilling activity and day rates increased over the same period last year, revenue decreased $23 million from the second quarter
of 2024 primarily due to U.S. and international drilling activity declining 6% and 7%, respectively, and well service activity falling
23%.

&nbsp;&nbsp;&nbsp;&nbsp;· Adjusted EBITDA was $108 million compared to $115 million in the second quarter of 2024, primarily due
to lower activity impacting revenue offset in part by lower share-based compensation expense, which was $4 million versus $10 million
in the same period last year. For additional information on share-based compensation please refer to "Other Items" later in
the this report.

&nbsp;&nbsp;&nbsp;&nbsp;· Adjusted EBITDA as a percentage of revenue<sup>(1)</sup> was 27%, consistent with the second quarter of
2024. &nbsp;&nbsp;&nbsp;&nbsp;· Net earnings attributable to shareholders was $16 million or $1.21 per share compared to $21 million or
$1.44 per share for the same period last year. On a diluted basis, net earnings attributable to shareholders was $1.07 versus $1.44 in
2024. Precision has consistently delivered positive quarterly net earnings for the past three years.

&nbsp;&nbsp;&nbsp;&nbsp;· Cash provided by operations was $147 million and the Company repurchased 237,085 shares for $14 million,
and redeemed US$60 million of its 2026 unsecured senior notes, ending the quarter with $47 million of cash and almost $530 million of
available liquidity.

&nbsp;&nbsp;&nbsp;&nbsp;· In Canada, revenue per utilization day was $37,725 compared to $36,075
in the same period last year. The increase related to $7 million of revenue earned for customer funded rig upgrades, amounting to $1,440
on a daily basis.

&nbsp;&nbsp;&nbsp;&nbsp;· Canadian operating costs per utilization day increased 4% to $22,419, mainly due to labor costs related
to rig mix and recoverable expenses offset in revenue.

&nbsp;&nbsp;&nbsp;&nbsp;· In the U.S., revenue per utilization day was US$31,113 compared
to US$33,227 in the same period last year, as lower industry activity caused downward pressure on rates. In the previous quarter, U.S.
revenue per utilization day was US$33,157 but included US$1,263 of idle but contracted rig revenue.

&nbsp;&nbsp;&nbsp;&nbsp;· U.S. operating costs per utilization day remained consistent at US$22,087 versus US$22,427 in the second
quarter of 2024. With an increasing rig count, our operating costs per utilization day included US$648 of rig reactivation charges compared
to US$242 in the same period last year. In the previous quarter, U.S. operating costs per utilization day were US$23,568 and included
charges for mobilization costs and rig reactivations.

&nbsp;&nbsp;&nbsp;&nbsp;· Internationally, we realized revenue of US$36 million compared to US$40 million primarily due to our average
active rig count, which decreased from eight to seven in the second quarter of 2025 as one rig was temporarily suspended in Saudi Arabia.
We expect to have seven rigs active for the rest of the year.

&nbsp;&nbsp;&nbsp;&nbsp;· Completion and Production Services revenue was $54 million, a decrease of $12 million from 2024, as servic e
rig operating hours declined 23%. This reduction was the result of customer driven project deferrals, the impact of weather, and lower
U.S. activity as we wound down our U.S. well servicing operations, selling certain assets and mobilizing others into Canada. Adjusted
EBITDA was $10 million, representing 18% of revenue and comparable to 19% in 2024.

&nbsp;&nbsp;&nbsp;&nbsp;· General and administrative expenses were $25 million versus $29 million in the second quarter of 2024,
primarily due to lower share-based compensation expense.

&nbsp;&nbsp;&nbsp;&nbsp;· Capital expenditures were $53 million compared to $38 million in the second quarter of 2024 and included
$26 million for the maintenance of existing assets, infrastructure, and intangible assets and $27 million for expansion and upgrades.

&nbsp;&nbsp;&nbsp;&nbsp;(1) See "FINANCIAL
 MEASURES AND RATIOS. "

 **

***Summary for the six months ended June 30, 2025:***

 **

&nbsp;&nbsp;&nbsp;&nbsp;· Revenue for the first six months of 2025 was $903 million, a decrease of 6% from 2024. The majority of
this decrease related to lower activity in U.S. drilling and our Canadian well service business.

&nbsp;&nbsp;&nbsp;&nbsp;· Adjusted EBITDA decreased 5% to $246 million from $258 million and included $7 million of share-based
compensation expense compared to $33 million in 2024. Please refer to "Other Items" later in this report for additional information
on share-based compensation.

&nbsp;&nbsp;&nbsp;&nbsp;· Adjusted EBITDA as a percentage of revenue was unchanged at 27%.

&nbsp;&nbsp;&nbsp;&nbsp;· Net earnings attributable to shareholders was $51 million or $3.75 per share and comparable with $57 million
or $3.97 per share. On a diluted basis, net earnings attributable to shareholders was $3.22 per share versus $3.97 in 2024.

&nbsp;&nbsp;&nbsp;&nbsp;· General and administrative costs were $55 million and $19 million lower than the first six months of 2024,
primarily due to lower share-based compensation expense.

&nbsp;&nbsp;&nbsp;&nbsp;· Net finance charges were $31 million, a decrease of $6 million from 2024 due to lower outstanding debt
balance, partially offset by the impact of the weakening Canadian dollar on our U.S. dollar-denominated interest expense.

&nbsp;&nbsp;&nbsp;&nbsp;· Cash provided by operations was $211 million and the Company repurchased 646,058 shares for $45 million
and reduced debt by $91 million by redeeming US$60 million of 2026 unsecured senior notes and repaying $7 million on the Senior Credit
Facility. We ended the quarter with $47 million of cash and almost $530 million of available liquidity.

&nbsp;&nbsp;&nbsp;&nbsp;· Capital expenditures were $113 million for the first six months of 2025 and included $66 million for maintenance,
infrastructure, and intangible assets, and $46 million for expansion and upgrades. By comparison, for the first six months of 2024, capital
expenditures were $94 million and included $71 million for maintenance, infrastructure, and intangible assets, and $23 million for expansion
and upgrades.

**STRATEGY**

Precision's vision is to be globally recognized as the *High Performance, High Value* provider of land drilling services. We work toward this vision by defining and measuring our results against strategic priorities that we establish at the beginning of every year.

Precision's 2025 strategic priorities and the progress made during the second quarter:

**1.** **Maximize free cash flow through disciplined capital deployment and strict cost management.** 

&nbsp;&nbsp;&nbsp;&nbsp;· Generated cash from operations of $147 million, allowing the Precision to reduce debt and buy back shares.

&nbsp;&nbsp;&nbsp;&nbsp;· On track to realize approximately $10 million in annual savings following fixed cost reductions in the
first quarter to address market uncertainty.

**2.** **Enhance shareholder returns through debt reduction and share repurchases. Plan to reduce debt by at least $100 million and allocate 35% to 45% of free cash flow before debt repayments for share repurchases.** 

&nbsp;&nbsp;&nbsp;&nbsp;· Returned $14 million of capital to shareholders by repurchasing 237,085 shares during the quarter. Year
to date, we have repurchased $45 million shares and are well on track to meet our annual guidance.

&nbsp;&nbsp;&nbsp;&nbsp;· Reduced debt by $74 million and ended the quarter with almost $530 million of available liquidity. Year
to date, we have reduced debt by $91 million, which is well beyond the mid point of our guidance.

&nbsp;&nbsp;&nbsp;&nbsp;· Well positioned to meet our long-term debt reduction target of $700 million between 2022 and 2027. As
of June 30, 2025, we have reduced our debt by $525 million since the beginning of 2022.

**3.** **Grow revenue in existing service lines through contracted upgrades, optimized pricing and utilization, and opportunistic consolidating tuck-in acquisitions.** 

&nbsp;&nbsp;&nbsp;&nbsp;· Increased Canadian drilling rig utilization, averaging 50 active rigs versus 49 in the second quarter
of 2024.

&nbsp;&nbsp;&nbsp;&nbsp;· Grew US rig utilization in a declining market, averaging 33 active rigs versus 30 in the previous quarter.

&nbsp;&nbsp;&nbsp;&nbsp;· Maintained strong pricing in Canada with revenue per utilization per day of $36,285, after excluding revenue
related to customer-funded upgrades, which was consistent with $36,075 in the second quarter of 2024.

&nbsp;&nbsp;&nbsp;&nbsp;· Increased 2025 capital budget to $240 million from $200 million to provide for 22 upgrades to our *Super Series* rigs and drive drilling revenue growth.

&nbsp;&nbsp;&nbsp;&nbsp;· Current market conditions and commodity price volatility make acquisitions less likely in the near term.

**OUTLOOK**

Near-term expectations for global energy demand growth have been tempered by several geopolitical events including OPEC+ easing of curtailments, trade and tariff uncertainty, and international conflicts. However, we believe the long-term fundamentals for energy is positive, driven by economic growth, increasing demand from emerging economies, and new demand for power.

In Canada, additional takeaway capacity for both oil and natural gas continues to support Canadian activity. LNG Canada made its first shipment at the beginning of July, and we expect demand for our *Super Triple* drilling rigs could exceed current supply once the facility achieves its run rate capacity. The Trans Mountain pipeline expansion continues to support heavy oil production, driving our *Super Single* rig utilization near full capacity. While Canadian drilling fundamentals are strong, tariff and commodity price uncertainty have caused some producers to defer some work until later this year. We currently have 63 rigs operating and as these uncertainties resolve, we expect Canadian customer demand for oil targeted drilling to further strengthen.

In the U.S., while the oil rig count continues to decline, we are beginning to see natural gas drilling increase as customers are becoming more constructive on LNG off-take and AI demand. We currently have 36 rigs active in the U.S. and expect to increase our activity for the remainder of the year as we capitalize on emerging opportunities in natural gas basins such as the Haynesville and Marcellus.

Internationally, we have seven active rigs with five in Kuwait and two in the Kingdom of Saudi Arabia and expect this same level of activity for the remainder of the year. The majority of these rigs are under five-year term contracts that extend into 2027 and 2028. We continue to look for opportunities to leverage our international expertise.

As the premier well service provider in Canada, the outlook for this business remains strong, driven by increased takeaway capacity from the Trans Mountain pipeline expansion and LNG Canada, and our *High Performance, High Value* service offering. We expect activity to improve in the second half of the year as customers move ahead with projects previously deferred.

***Contracts***

 ****

The following chart outlines the average number of drilling rigs under term contract by quarter as at July 29, 2025. For those quarters ending after June 30, 2025, this chart represents the minimum number of term contracts from which we will earn revenue. We expect the actual number of contracted rigs to vary in future periods as we sign additional term contracts.

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *As at July 29, 2025* | Average for the quarter ended 2024 | Average for the quarter ended 2024 | Average for the quarter ended 2024 | Average for the quarter ended 2024 | Average | Average for the quarter ended 2025 | Average for the quarter ended 2025 | Average for the quarter ended 2025 | Average for the quarter ended 2025 | Average |
|  | Mar. 31 | June 30 | Sept. 30 | Dec. 31 | 2024 | Mar. 31 | June 30 | Sept. 30 | Dec. 31 | 2025 |
| Average rigs under term contract: |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Canada | 24 | 22 | 23 | 23 | 23 | 20 | 18 | 17 | 16 | 18 |
| &nbsp;&nbsp;&nbsp;U.S. | 20 | 17 | 17 | 16 | 18 | 16 | 16 | 14 | 9 | 14 |
| &nbsp;&nbsp;&nbsp;International | 8 | 8 | 8 | 8 | 8 | 8 | 7 | 7 | 7 | 7 |
| Total | 52 | 47 | 48 | 47 | 49 | 44 | 41 | 38 | 32 | 39 |

---

 ****

 **

***Seasonality***

 **

In Canada, because of the seasonal nature of well site access, term contracted rigs normally generate 250 utilization days, with some pad drilling rigs trending toward 350 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.

***Capital Spending and Free Cash Flow Allocation***

 ****

Capital spending in 2025 is expected to be $240 million, an increase of $40 million from our previously announced plan as we expect to upgrade 22 of our *Super Series* rigs. Capital spending by spend category is expected to include $154 million for maintenance, infrastructure, and intangibles and $86 million for expansion and upgrades. We expect to spend $218 million in the Contract Drilling Services segment, $19 million in the Completion and Production Services segment and $3 million in the Corporate segment. At June 30, 2025, Precision had capital commitments of $131 million with payments expected through 2027. We remain committed to our debt reduction plans and in 2025 expect to reduce debt by at least $100 million and allocate 35% to 45% of free cash flow before debt repayments for share repurchases, while remaining committed to achieving a sustained Net Debt to Adjusted EBITDA ratio<sup>(1)</sup> of below 1.0 times.

&nbsp;&nbsp;&nbsp;&nbsp;(1) See "FINANCIAL
 MEASURES AND RATIOS. "

 **

***Commodity Prices***

 **

Second quarter average West Texas Intermediate and Western Canadian Select decreased 21% and 19%, respectively, compared with the same period last year, as U.S. tariffs concerns and OPEC+ production increases weighed on oil prices. The average Henry Hub natural gas price and AECO increased 50% and 47%, respectively due to optimism from LNG off-take and AI data centers.

---

| | | | |
|:---|:---|:---|:---|
|  | For the three months ended June 30, | For the three months ended June 30, | |
| | **2025** | 2024 | Year ended December 31,<br>2024 |
| **Average oil and natural gas prices** |  |  |  |
| **Oil** |  |  |  |
| &nbsp;&nbsp;&nbsp;West Texas Intermediate (per barrel) (US$) | **63.71** | 80.55 | 75.73 |
| &nbsp;&nbsp;&nbsp;Western Canadian Select (per barrel) (US$) | **54.12** | 66.89 | 61.24 |
| **Natural gas** |  |  |  |
| &nbsp;&nbsp;&nbsp;United States |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Henry Hub (per MMBtu) (US$) | **3.51** | 2.34 | 2.41 |
| &nbsp;&nbsp;&nbsp;Canada |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;AECO (per MMBtu) (CDN$) | **1.74** | 1.18 | 1.39 |

---

**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 three months ended June 30, | For the three months ended June 30, | For the six months ended June 30, | For the six months ended June 30, | For the six months ended June 30, |
| *(Stated in thousands of Canadian dollars)* | **2025** | 2024 | % Change | **2025** | 2024 | % Change |
| Revenue: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Contract Drilling Services | **355352** | 365603 | (2.8) | **774809** | 808970 | (4.2) |
| &nbsp;&nbsp;&nbsp;Completion and Production Services | **53936** | 65826 | (18.1) | **133266** | 152913 | (12.8) |
| &nbsp;&nbsp;&nbsp;Inter-segment eliminations | **(2673)** | (2215) | 20.7 | **(5129)** | (4881) | 5.1 |
|  | **406615** | 429214 | (5.3) | **902946** | 957002 | (5.6) |
| Adjusted EBITDA:<sup>(1)</sup> |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Contract Drilling Services | **111422** | 119754 | (7.0) | **247438** | 273427 | (9.5) |
| &nbsp;&nbsp;&nbsp;Completion and Production Services | **9876** | 12440 | (20.6) | **27422** | 31045 | (11.7) |
| &nbsp;&nbsp;&nbsp;Corporate and Other | **(13198)** | (17073) | (22.7) | **(29263)** | (46202) | (36.7) |
|  | **108100** | 115121 | (6.1) | **245597** | 258270 | (4.9) |
| Depreciation and amortization | **74858** | 73818 | 1.4 | **149894** | 152031 | (1.4) |
| Gain on asset disposals | **(6425)** | (7675) | (16.3) | **(9297)** | (10912) | (14.8) |
| Foreign exchange | **(1617)** | (471) | 243.3 | **(1250)** | (77) | 1523.4 |
| Finance charges | **14857** | 18189 | (18.3) | **30617** | 36558 | (16.3) |
| Loss (gain) on investments and other assets | **1674** | 48 | 3387.5 | **1625** | (180) | (1002.8) |
| Net earnings before income tax | **24753** | 31212 | (20.7) | **74008** | 80850 | (8.5) |
| Income taxes | **8266** | 10511 | (21.4) | **22574** | 23633 | (4.5) |
| Net earnings | **16487** | 20701 | (20.4) | **51434** | 57217 | (10.1) |
| Non-controlling interest | **220** |  | 100.0 | **656** |  | 100.0 |
| Net earnings attributable to shareholders | **16267** | 20701 | (21.4) | **50778** | 57217 | (11.3) |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) See "FINANCIAL
 MEASURES AND RATIOS. "

**SEGMENT REVIEW OF CONTRACT DRILLING SERVICES**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | For the three months ended June 30, | For the three months ended June 30, | For the three months ended June 30, | For the six months ended June 30, | For the six months ended June 30, | For the six months ended June 30, |
| *(Stated in thousands of Canadian dollars, except where noted)* | **2025** | 2024 | % Change | **2025** | 2024 | % Change |
| Revenue | **355352** | 365603 | (2.8) | **774809** | 808970 | (4.2) |
| Expenses: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Operating | **234448** | 236585 | (0.9) | **506860** | 513277 | (1.3) |
| &nbsp;&nbsp;&nbsp;General and administrative | **9482** | 9264 | 2.4 | **20511** | 22266 | (7.9) |
| Adjusted EBITDA<sup>(1)</sup> | **111422** | 119754 | (7.0) | **247438** | 273427 | (9.5) |
| Adjusted EBITDA as a percentage of revenue<sup>(1)</sup> | **31.4%** | 32.8% |  | **31.9%** | 33.8% |  |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) See "FINANCIAL
 MEASURES AND RATIOS. "

---

| | | | | |
|:---|:---|:---|:---|:---|
| Canadian onshore drilling statistics:<sup>(1)</sup> | **2025** | **2025** | 2024 | 2024 |
|  | **Precision** | **Industry<sup>(2)</sup>** | Precision | Industry<sup>(2)</sup> |
| Average number of active land rigs for quarters ended: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;March 31 | **74** | **214** | 73 | 208 |
| &nbsp;&nbsp;&nbsp;June 30 | **50** | **127** | 49 | 134 |
| Year to date average | **62** | **171** | 61 | 171 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Canadian operations
 only.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Baker
 Hughes rig counts.

---

| | | | | |
|:---|:---|:---|:---|:---|
| United States onshore drilling statistics:<sup>(1)</sup> | **2025** | **2025** | 2024 | 2024 |
|  | **Precision** | **Industry<sup>(2)</sup>** | Precision | Industry<sup>(2)</sup> |
| Average number of active land rigs for quarters ended: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;March 31 | **30** | **572** | 38 | 602 |
| &nbsp;&nbsp;&nbsp;June 30 | **33** | **556** | 36 | 583 |
| Year to date average | **32** | **564** | 37 | 593 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) United States
 lower 48 operations only.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Baker
 Hughes rig counts.

Revenue from Contract Drilling Services was $355 million compared to $366 million in the second quarter of 2024, primarily due to U.S. and international drilling activity declining 6% and 7%, respectively. In the U.S., the decrease in activity has been similar to the lower industry activity. Internationally, our active rig count went from eight to seven in the second quarter as one rig was temporarily suspended in Saudi Arabia by the customer. The lower activity in the U.S. and internationally was in part offset by stronger activity in Canada and $7 million in revenue from customer-funded upgrades.

Adjusted EBITDA was $111 million for the quarter and represented 31% of revenue compared to 33% realized in the second quarter of 2024. The percentage decrease was mainly driven by lower day rates in the U.S. and internationally that declined 6% and 4%, respectively, plus higher rig reactivations costs in the U.S.

In Canada, 36% of our utilization days were generated from rigs under term contract in second quarter of 2025 compared to 42% in 2024. In the U.S., 46% of utilization days were generated from rigs under term contract versus 55% in 2024.

**SEGMENT REVIEW OF COMPLETION AND PRODUCTION SERVICES**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | For the three months ended June 30, | For the three months ended June 30, | For the three months ended June 30, | For the six months ended June 30, | For the six months ended June 30, | For the six months ended June 30, |
| *(Stated in thousands of Canadian dollars, except where noted)* | **2025** | 2024 | % Change | **2025** | 2024 |  |
| Revenue | **53936** | 65826 | (18.1) | **133266** | 152913 | (12.8) |
| Expenses: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Operating | **41970** | 51040 | (17.8) | **101082** | 116520 | (13.2) |
| &nbsp;&nbsp;&nbsp;General and administrative | **2090** | 2346 | (10.9) | **4762** | 5348 | (11.0) |
| Adjusted EBITDA<sup>(1)</sup> | **9876** | 12440 | (20.6) | **27422** | 31045 | (11.7) |
| Adjusted EBITDA as a percentage of revenue<sup>(1)</sup> | **18.3%** | 18.9% |  | **20.6%** | 20.3% |  |
| Well servicing statistics: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Number of service rigs (end of period) | **144** | 165 | (12.7) | **144** | 165 | (12.7) |
| &nbsp;&nbsp;&nbsp;Service rig operating hours | **43837** | 57051 | (23.2) | **110823** | 131555 | (15.8) |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) See "FINANCIAL
 MEASURES AND RATIOS. "

Completion and Production Services revenue was $54 million, a decrease of $12 million from 2024 as well service rig operating hours decreased 23% due to customer driven project deferrals, driven by market and commodity price volatility, and the impact of weather, including wet conditions and wildfires. In addition, our U.S. activity was lower as we wound down our U.S.well servicing operations into our Canadian business, selling certain assets and mobilizing others into Canada.

Adjusted EBITDA was $10 million, representing 18% of revenue and comparable to 19% in the second quarter of 2024.

**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 $13 million for the second quarter as compared with negative Adjusted EBITDA of $17 million in the same period last year. Our improved current quarter Adjusted EBITDA was due to lower share-based compensation expense. The year-to-date improvement is also primarily due to lower share-based compensation expense.

**OTHER ITEMS**

***Share-based Incentive Compensation Plans***

We have several cash and equity-settled share-based incentive plans for non-management directors, officers, and other eligible employees. Our accounting policies for each share-based incentive plan can be found in our 2024 Annual Report.

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

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | For the three months ended June 30, | For the three months ended June 30, | For the six months ended June 30, | For the six months ended June 30, |
| *(Stated in thousands of Canadian dollars)* | **2025** | 2024 | **2025** | 2024 |
| Cash settled share-based incentive plans | **2662** | 8677 | **3065** | 30436 |
| Equity settled share-based incentive plans | **1551** | 1202 | **3978** | 2077 |
| Total share-based incentive compensation plan expense | **4213** | 9879 | **7043** | 32513 |
| Allocated: |  |  |  |  |
| Operating | **1254** | 2686 | **2382** | 7938 |
| General and Administrative | **2959** | 7193 | **4661** | 24575 |
|  | **4213** | 9879 | **7043** | 32513 |

---

Cash settled share-based compensation expense for the quarter was $3 million as compared with $9 million in 2024. The lower expense in 2025 was primarily due to our lower share price performance as compared with 2024. The year-to-date decrease is also attributable to our lower share price performance relative to 2024.

During the first quarters of 2024 and 2025, we issued Executive Restricted Share Units (**Executive RSUs**) to certain senior executives, resulting in an equity-settled share-based compensation expense of $2 million for the quarter and $4 million year to date. These issuances were aligned with our annual compensation framework.

As at June 30, 2025, 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.

**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<br> term credit facility with US$375 million accordion feature) | $10 million drawn and US$51 million in outstanding letters of credit | General corporate purposes | June 28, 2027 |
| **Operating facilities (secured)** |  |  |  |
| $40 million | Undrawn, except $8 million in<br> outstanding letters of credit | Letters of credit and general<br> corporate purposes |  |
| US$15 million | Undrawn | Short-term working capital<br> requirements |  |
| **Demand letter of credit facility (secured)** |  |  |  |
| US$40 million | Undrawn, except US$30 million in<br> outstanding letters of credit | Letters of credit |  |
| **Unsecured senior notes (unsecured)** |  |  |  |
| US$100 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 the second quarter of 2025, we reduced long-term debt by $74 million, redeeming $84 million (US$60 million) of our 2026 unsecured senior notes while drawing $10 million from our Senior Credit Facility. As at June 30, 2025, we had a total of $691 million outstanding under our Senior Credit Facility and unsecured senior notes as compared with $822 million at December 31, 2024. The current blended cash interest cost of our debt is approximately 6.9%.

<u>Senior Credit Facility</u>

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.

The Senior Credit Facility matures on June 28, 2027. The Senior Credit Facility contains a springing maturity date provision such that if any specified unsecured debt, including our 2026 unsecured senior notes, remains outstanding 90 days prior to their maturity date, then the Senior Credit Facility shall mature. We intend to use available operating cash flows and/or proceeds from the Senior Credit Facility to redeem the 2026 unsecured senior notes prior to the springing maturity date of October 14, 2025.

<u>Unsecured Senior Notes</u>

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.

On March 31, 2025, the 2026 unsecured senior notes were reclassified from long-term to current, as they are due on January 15, 2026. For further information, please see the unsecured senior note indentures which are available on SEDAR+ and EDGAR.

***Covenants***

 ****

As at June 30, 2025, we were in compliance with the covenants of our Senior Credit Facility.

---

| | | |
|:---|:---|:---|
| | Covenant | At June 30, 2025 |
| **Senior Credit Facility** |  |  |
| &nbsp;&nbsp;&nbsp;Consolidated senior debt to consolidated covenant EBITDA<sup>(1)</sup> | <2.50 | 0.03 |
| &nbsp;&nbsp;&nbsp;Consolidated covenant EBITDA to consolidated interest expense | >2.50 | 8.21 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(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 three months ended June 30, | For the six months ended June 30, | For the six months ended June 30, | |
| | **2025** | 2024 | **2025** | 2024 | At December 31,<br>2024 |
| **Canada-U.S. foreign exchange rates** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Average | **1.38** | 1.37 | **1.41** | 1.36 |  |
| &nbsp;&nbsp;&nbsp;Closing | **1.36** | 1.37 | **1.36** | 1.37 | 1.44 |

---

 **

***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)* | 2024 | 2024 | 2025 | 2025 |
| Quarters ended | September 30 | December 31 | March 31 | June 30 |
| Revenue | 477155 | 468171 | 496331 | 406615 |
| Adjusted EBITDA<sup>(1)</sup> | 142425 | 120526 | 137497 | 108100 |
| Net earnings | 39183 | 14930 | 34947 | 16487 |
| Net earnings attributable to shareholders | 39183 | 14795 | 34511 | 16267 |
| Net earnings attributable to shareholders per basic share | 2.77 | 1.06 | 2.52 | 1.21 |
| Net earnings attributable to shareholders per diluted share | 2.31 | 1.06 | 2.20 | 1.07 |
| Funds provided by operations<sup>(1)</sup> | 113322 | 120535 | 109842 | 104290 |
| Cash provided by operations | 79674 | 162791 | 63419 | 147495 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(Stated in thousands of Canadian dollars, except per share amounts)* | 2023 | 2023 | 2024 | 2024 |
| Quarters ended | September 30 | December 31 | March 31 | June 30 |
| Revenue | 446754 | 506871 | 527788 | 429214 |
| Adjusted EBITDA<sup>(1)</sup> | 114575 | 151231 | 143149 | 115121 |
| Net earnings | 19792 | 146722 | 36516 | 20701 |
| Net earnings attributable to shareholders | 19792 | 146722 | 36516 | 20701 |
| Net earnings attributable to shareholders per basic share | 1.45 | 10.42 | 2.53 | 1.44 |
| Net earnings attributable to shareholders per diluted share | 1.45 | 9.81 | 2.53 | 1.44 |
| Funds provided by operations<sup>(1)</sup> | 91608 | 145189 | 117765 | 111750 |
| Cash provided by operations | 88500 | 170255 | 65543 | 174075 |

---

(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 2024 Annual Report.

**EVALUATION OF CONTROLS AND PROCEDURES**

Based on their evaluation as at December 31, 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**)), were 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, 2025, 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, 2025 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** | **Non-GAAP Financial Measures** |
| <br> 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. | <br> 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, gain on investments and other assets, finance charges, foreign exchange, loss (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.<br> The most directly comparable financial measure is net earnings. |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | For the three months ended June 30, | For the three months ended June 30, | For the six months ended June 30, | For the six months ended June 30, |
| *(Stated in thousands of Canadian dollars)* | **2025** | 2024 | **2025** | 2024 |
| Adjusted EBITDA by segment: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Contract Drilling Services | **111422** | 119754 | **247438** | 273427 |
| &nbsp;&nbsp;&nbsp;Completion and Production Services | **9876** | 12440 | **27422** | 31045 |
| &nbsp;&nbsp;&nbsp;Corporate and Other | **(13198)** | (17073) | **(29263)** | (46202) |
| **Adjusted EBITDA** | **108100** | 115121 | **245597** | 258270 |
| Depreciation and amortization | **74858** | 73818 | **149894** | 152031 |
| Gain on asset disposals | **(6425)** | (7675) | **(9297)** | (10912) |
| Foreign exchange | **(1617)** | (471) | **(1250)** | (77) |
| Finance charges | **14857** | 18189 | **30617** | 36558 |
| Loss (gain) on investments and other assets | **1674** | 48 | **1625** | (180) |
| Income taxes | **8266** | 10511 | **22574** | 23633 |
| **Net earnings** | **16487** | 20701 | **51434** | 57217 |
| Non-controlling interests | **220** |  | **656** |  |
| **Net earnings attributable to shareholders** | **16267** | 20701 | **50778** | 57217 |

---

---

| | |
|:---|:---|
| ***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.<br>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.<br>The most directly comparable financial measure is cash provided by (used in) investing activities.<br>Net capital spending is calculated as follows:<br>|

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | For the three months ended June 30, | For the three months ended June 30, | For the six months ended June 30, | For the six months ended June 30, |
| *(Stated in thousands of Canadian dollars)* | **2025** | 2024 | **2025** | 2024 |
| Capital spending by spend category |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Expansion and upgrade | **26757** | 8422 | **46303** | 22792 |
| &nbsp;&nbsp;&nbsp;Maintenance, infrastructure and intangibles | **26016** | 30001 | **66435** | 71158 |
|  | **52773** | 38423 | **112738** | 93950 |
| Proceeds on sale of property, plant and equipment | **(11829)** | (10992) | **(15594)** | (16178) |
| Net capital spending | **40944** | 27431 | **97144** | 77772 |
| Proceeds from sale of investments and other assets | **—** | (3623) | **—** | (3623) |
| Purchase of investments and other assets | **—** |  | **11** |  |
| Receipt of finance lease payments | **(209)** | (193) | **(417)** | (384) |
| Changes in non-cash working capital balances | **(4686)** | 3328 | **(3487)** | 28415 |
| Cash used in investing activities | **36049** | 26943 | **93251** | 102180 |

---

---

| | |
|:---|:---|
| ***Working Capital*** | We define working capital as current assets less current liabilities, as reported in our Condensed Interim Consolidated Statements of Financial Position.<br>Working capital is calculated as follows: |

---

---

| | | |
|:---|:---|:---|
|  | **June 30,** | December 31, |
| *(Stated in thousands of Canadian dollars)* | **2025** | 2024 |
| Current assets | **411030** | 501284 |
| Current liabilities | **(407349)** | (338692) |
| Working capital | **3681** | 162592 |

---

---

| | |
|:---|:---|
| ***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.<br>Total long-term financial liabilities is calculated as follows: |

---

---

| | | |
|:---|:---|:---|
|  | **June 30,** | December 31, |
| *(Stated in thousands of Canadian dollars)* | **2025** | 2024 |
| Total non-current liabilities | **670288** | 935624 |
| Deferred tax liabilities | **(60989)** | (47451) |
| Total long-term financial liabilities | **609299** | 888173 |

---

---

| | |
|:---|:---|
| **Non-GAAP Ratios** | **Non-GAAP Ratios** |
| <br> 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. | <br> 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 equity as reported in our Condensed Interim Consolidated Statements of Financial Position) provides an indication of our debt leverage. For the period ended June 30, 2025 long-term debt includes long-term debt plus current portion of long-term debt as reported in our Consolidated Interim Consolidated Statements of Financial Position. |

---

---

| | |
|:---|:---|
| ***Net Debt to Adjusted EBITDA*** | We believe that the Net Debt (long-term debt plus current portion of long-term debt less cash, as reported in our Condensed Interim Consolidated Statements of Financial Position) to Adjusted EBITDA ratio provides an indication of the number of years it would take for us to repay our debt obligations. For the period ended June 30, 2025 long-term debt includes long-term debt plus current portion of long-term debt as reported in our Consolidated Interim Consolidated Statements of Financial Position. |

---

**Supplementary Financial Measures**

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

---

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

---

**CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION AND STATEMENTS**

Certain statements contained in this 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:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· our strategic priorities for 2025;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· our capital expenditures, free cash flow allocation and debt reduction plans for 2025 and beyond;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· anticipated activity levels, demand for our drilling rigs, day rates and daily operating margins in 2025;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· the average number of term contracts in place for 2025;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· customer adoption of Alpha<sup>TM</sup> technologies and EverGreen<sup>TM</sup> suite of environmental
solutions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· potential commercial opportunities and rig contract renewals; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· 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:

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· the status of current negotiations with our customers and vendors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· customer focus on safety performance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· existing term contracts are neither renewed nor terminated prematurely;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· our ability to deliver rigs to customers on a timely basis;

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· 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:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· volatility in the price and demand for oil and natural gas;

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· our customers' inability to obtain adequate credit or financing to support their drilling and production
activity;

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· liquidity of the capital markets to fund customer drilling programs;

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· the impact of weather and seasonal conditions on operations and facilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· the impact of tariffs and trade disputes;

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· ability to improve our rig technology to improve drilling efficiency;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· general economic, market or business conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· the availability of qualified personnel and management;

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· 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;

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· fluctuations in foreign exchange, interest rates and tax rates; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· other unforeseen conditions which could impact the use of services supplied by Precision and Precision's
ability to respond to such conditions.

Readers are cautioned that the forgoing list of risk factors is not exhaustive. Additional information on these and other factors that could affect our business, operations or financial results are included in reports on file with applicable securities regulatory authorities, including but not limited to Precision's Annual Information Form for the year ended December 31, 2024, which may be accessed on Precision's SEDAR+ profile at www.sedarplus.ca or under Precision's EDGAR profile at www.sec.gov. The forward-looking information and statements contained in this 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

**Exhibit 99.2**

**CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED)**

---

| | | |
|:---|:---|:---|
| *(Stated in thousands of Canadian dollars)* | **June 30, 2025** | December 31, 2024 |
| **ASSETS** |  |  |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;Cash | $**46698** | $73771 |
| &nbsp;&nbsp;&nbsp;Accounts receivable | **318610** | 378712 |
| &nbsp;&nbsp;&nbsp;Inventory | **45722** | 43300 |
| &nbsp;&nbsp;&nbsp;Assets held for sale | **—** | 5501 |
| Total current assets | **411030** | 501284 |
| Non-current assets: |  |  |
| &nbsp;&nbsp;&nbsp;Deferred tax assets | **2114** | 6559 |
| &nbsp;&nbsp;&nbsp;Property, plant and equipment | **2245696** | 2356173 |
| &nbsp;&nbsp;&nbsp;Intangibles | **11241** | 12997 |
| &nbsp;&nbsp;&nbsp;Right-of-use assets | **60006** | 66032 |
| &nbsp;&nbsp;&nbsp;Finance lease receivables | **4533** | 4806 |
| &nbsp;&nbsp;&nbsp;Investments and other assets | **8217** | 8464 |
| Total non-current assets | **2331807** | 2455031 |
| Total assets | $**2742837** | $2956315 |
| **LIABILITIES AND EQUITY** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities | $**250900** | $314355 |
| &nbsp;&nbsp;&nbsp;Income taxes payable | **1880** | 3778 |
| &nbsp;&nbsp;&nbsp;Current portion of lease obligations | **18388** | 20559 |
| &nbsp;&nbsp;&nbsp;Current portion of long-term debt (Note 5) | **136181** |  |
| Total current liabilities | **407349** | 338692 |
| Non-current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Share-based compensation (Note 7) | **7214** | 13666 |
| &nbsp;&nbsp;&nbsp;Provisions and other | **7057** | 7472 |
| &nbsp;&nbsp;&nbsp;Lease obligations | **48599** | 54566 |
| &nbsp;&nbsp;&nbsp;Long-term debt (Note 5) | **546429** | 812469 |
| &nbsp;&nbsp;&nbsp;Deferred tax liabilities | **60989** | 47451 |
| Total non-current liabilities | **670288** | 935624 |
| Equity: |  |  |
| &nbsp;&nbsp;&nbsp;Shareholders' capital (Note 8) | **2272820** | 2301729 |
| &nbsp;&nbsp;&nbsp;Contributed surplus | **78383** | 77557 |
| &nbsp;&nbsp;&nbsp;Accumulated other comprehensive income | **159389** | 199020 |
| &nbsp;&nbsp;&nbsp;Deficit | **(850056)** | (900834) |
| Total equity attributable to shareholders | **1660536** | 1677472 |
| &nbsp;&nbsp;&nbsp;Non-controlling interest | **4664** | 4527 |
| Total equity | **1665200** | 1681999 |
| Total liabilities and equity | $**2742837** | $2956315 |

---

 

*See accompanying notes to condensed interim consolidated financial statements.*

 

 

**CONDENSED INTERIM CONSOLIDATED STATEMENTS OF NET EARNINGS (UNAUDITED)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Three Months Ended June 30, | Three Months Ended June 30, | Six Months Ended June 30, | Six Months Ended June 30, |
| *(Stated in thousands of Canadian dollars, except per share amounts)* | **2025** | 2024 | **2025** | 2024 |
| Revenue (Note 3) | $**406615** | $429214 | $**902946** | $957002 |
| Expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Operating | **273745** | 285410 | **602813** | 624916 |
| &nbsp;&nbsp;&nbsp;General and administrative | **24770** | 28683 | **54536** | 73816 |
| Earnings before income taxes, loss (gain) on<br> investments and other assets, finance <br> charges, foreign exchange, gain on asset<br> disposals, and depreciation and amortization | **108100** | 115121 | **245597** | 258270 |
| Depreciation and amortization | **74858** | 73818 | **149894** | 152031 |
| Gain on asset disposals | **(6425)** | (7675) | **(9297)** | (10912) |
| Foreign exchange | **(1617)** | (471) | **(1250)** | (77) |
| Finance charges (Note 6) | **14857** | 18189 | **30617** | 36558 |
| Loss (gain) on investments and other assets | **1674** | 48 | **1625** | (180) |
| Earnings before income taxes | **24753** | 31212 | **74008** | 80850 |
| Income taxes: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Current | **1068** | 1345 | **2174** | 2362 |
| &nbsp;&nbsp;&nbsp;Deferred | **7198** | 9166 | **20400** | 21271 |
|  | **8266** | 10511 | **22574** | 23633 |
| Net earnings | $**16487** | $20701 | $**51434** | $57217 |
| Attributable to: |  |  |  |  |
| Shareholders of Precision Drilling Corporation | $**16267** | $20701 | $**50778** | $57217 |
| Non-controlling interests | $**220** | $— | $**656** | $— |
| Net earnings per share attributable to shareholders<br> of Precision Drilling Corporation: (Note 9) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic | $**1.21** | $1.44 | $**3.75** | $3.97 |
| &nbsp;&nbsp;&nbsp;Diluted | $**1.07** | $1.44 | $**3.28** | $3.97 |

---

 

*See accompanying notes to condensed interim consolidated financial statements.*

 

 

 

 

 

 

 

 

**CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Three Months Ended June 30, | Three Months Ended June 30, | Six Months Ended June 30, | Six Months Ended June 30, |
| *(Stated in thousands of Canadian dollars)* | **2025** | 2024 | **2025** | 2024 |
| Net earnings | $**16487** | $20701 | $**51434** | $57217 |
| Unrealized gain (loss) on translation of assets <br> and liabilities of operations denominated in <br> foreign currency | **(79446)** | 14260 | **(80104)** | 46513 |
| Foreign exchange gain (loss) on net investment hedge<br> with U.S. denominated debt | **41008** | (8660) | **40473** | (28819) |
| Comprehensive income (loss) | $**(21951)** | $26301 | $**11803** | $74911 |
| Attributable to: |  |  |  |  |
| Shareholders of Precision Drilling Corporation | $**(22171)** | $26301 | $**11147** | $74911 |
| Non-controlling interests | $**220** | $— | $**656** | $— |

---

 

*See accompanying notes to condensed interim consolidated financial statements.*

**CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Three Months Ended June 30, | Three Months Ended June 30, | Six Months Ended June 30, | Six Months Ended June 30, |
| *(Stated in thousands of Canadian dollars)* | **2025** | 2024 | **2025** | 2024 |
| Cash provided by (used in): |  |  |  |  |
| Operations: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net earnings | $**16487** | $20701 | $**51434** | $57217 |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjustments for: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Long-term compensation plans | **3374** | 4419 | **6390** | 11870 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | **74858** | 73818 | **149894** | 152031 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on asset disposals | **(6425)** | (7675) | **(9297)** | (10912) |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized foreign exchange | **(1631)** | (578) | **(2414)** | 150 |
| &nbsp;&nbsp;&nbsp;&nbsp;Finance charges | **14857** | 18189 | **30617** | 36558 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income taxes | **8266** | 10511 | **22574** | 23633 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | **(21)** | 93 | **(21)** | 93 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss (gain) on investments and other assets | **1674** | 48 | **1625** | (180) |
| &nbsp;&nbsp;&nbsp;&nbsp;Income taxes paid | **(3846)** | (4100) | **(4167)** | (4334) |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest paid | **(3621)** | (4313) | **(33258)** | (37743) |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest received | **318** | 637 | **755** | 1132 |
| Funds provided by operations | **104290** | 111750 | **214132** | 229515 |
| Changes in non-cash working capital balances | **43205** | 62325 | **(3218)** | 10103 |
| Cash provided by operations | **147495** | 174075 | **210914** | 239618 |
| Investments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase of property, plant and equipment | **(52773)** | (38423) | **(112738)** | (93950) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds on sale of property, plant and equipment | **11829** | 10992 | **15594** | 16178 |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sale of investments and other assets | **—** | 3623 | **—** | 3623 |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase of investments and other assets | **—** |  | **(11)** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Receipt of finance lease payments | **209** | 193 | **417** | 384 |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in non-cash working capital balances | **4686** | (3328) | **3487** | (28415) |
| Cash used in investing activities | **(36049)** | (26943) | **(93251)** | (102180) |
| Financing: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Issuance of long-term debt | **10000** |  | **10000** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Repayment of long-term debt | **(83854)** | (102132) | **(100964)** | (102848) |
| &nbsp;&nbsp;&nbsp;&nbsp;Repurchase of share capital (Note 8) | **(14490)** | (23493) | **(45256)** | (33574) |
| &nbsp;&nbsp;&nbsp;&nbsp;Issuance of common shares from the exercise<br> of options | **—** | 191 | **—** | 191 |
| &nbsp;&nbsp;&nbsp;&nbsp;Debt amendment fees | **—** | (1317) | **—** | (1317) |
| &nbsp;&nbsp;&nbsp;&nbsp;Lease payments | **(3922)** | (3219) | **(7509)** | (6419) |
| Cash used in financing activities | **(92266)** | (129970) | **(143729)** | (143967) |
| Effect of exchange rate changes on cash | **(727)** | 123 | **(1007)** | 580 |
| Increase (decrease) in cash | **18453** | 17285 | **(27073)** | (5949) |
| Cash, beginning of period | **28245** | 30948 | **73771** | 54182 |
| Cash, end of period | $**46698** | $48233 | $**46698** | $48233 |

---

 

*See accompanying notes to condensed interim consolidated financial statements.*

 

 

**CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED)**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Attributable to shareholders of the Corporation | Attributable to shareholders of the Corporation | Attributable to shareholders of the Corporation | Attributable to shareholders of the Corporation | Attributable to shareholders of the Corporation | | |
| *(Stated in thousands of <br> Canadian dollars)* | Shareholders'<br> Capital | Contributed<br> Surplus | Accumulated<br> Other<br> Comprehensive<br> Income | Deficit | Total | Non-<br> controlling interest | Total<br> Equity |
| Balance at January 1, 2025 | $2301729 | $77557 | $199020 | $(900834) | $1677472 | $4527 | $1681999 |
| Net earnings for the period |  |  |  | 50778 | 50778 | 656 | 51434 |
| Other comprehensive income <br> for the period |  |  | (39631) |  | (39631) |  | (39631) |
| Settlement of Executive <br> Performance and Restricted <br> Share Units | 11651 | (2790) |  |  | 8861 |  | 8861 |
| Distributions to non-controlling <br> interest |  |  |  |  |  | (519) | (519) |
| Share repurchases (Note 8) | (40921) |  |  |  | (40921) |  | (40921) |
| Redemption of non-management <br> directors share units | 361 | (361) |  |  |  |  |  |
| Share-based compensation <br> expense |  | 3977 |  |  | 3977 |  | 3977 |
| **Balance at June 30, 2025** | $**2272820** | $**78383** | $**159389** | $**(850056)** | $**1660536** | $**4664** | $**1665200** |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Attributable to shareholders of the Corporation | Attributable to shareholders of the Corporation | Attributable to shareholders of the Corporation | Attributable to shareholders of the Corporation | Attributable to shareholders of the Corporation | | |
| *(Stated in thousands of <br> Canadian dollars)* | Shareholders'<br> Capital | Contributed<br> Surplus | Accumulated<br> Other<br> Comprehensive<br> Income | Deficit | Total | Non-<br> controlling interest | Total<br> Equity |
| Balance at January 1, 2024 | $2365129 | $75086 | $147476 | $(1012029) | $1575662 | $— | $1575662 |
| Net earnings for the period |  |  |  | 57217 | 57217 |  | 57217 |
| Other comprehensive income<br> for the period |  |  | 17694 |  | 17694 |  | 17694 |
| Settlement of Executive <br> Performance and Restricted <br> Share Units | 21846 | (1479) |  |  | 20367 |  | 20367 |
| Share options exercised | 271 | (80) |  |  | 191 |  | 191 |
| Share repurchases | (40423) |  |  |  | (40423) |  | (40423) |
| Share-based compensation<br> expense |  | 2077 |  |  | 2077 |  | 2077 |
| Balance at June 30, 2024 | $2346823 | $75604 | $165170 | $(954812) | $1632785 | $— | $1632785 |

---

 

*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 International Financial Reporting Standards (**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, 2024.

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, 2024.

These condensed interim consolidated financial statements were approved by the Board of Directors on July 29, 2025.

**(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, 2024.

The impacts of geopolitical events, such as the imposed tariffs between Canada and the U.S., regional conflicts, especially in oil producing areas, can materially impact energy markets, interest and inflation rates, and supply chains, resulting in higher levels of volatility and uncertainty. Management has, to the extent reasonable, incorporated known facts and circumstances into the estimates made, however, actual results could differ from those estimates and those differences could be material.

**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, 2025** | **Contract<br> Drilling<br> Services** | **Completion<br> and<br> Production<br> Services** | **Corporate<br> and Other** | **Inter-<br> Segment<br> Eliminations** | **Total** |
| Canada | $**175028** | $**53863** | $**—** | $**(2673)** | $**226218** |
| United States | **130494** | **73** | **—** | **—** | **130567** |
| International | **49830** | **—** | **—** | **—** | **49830** |
|  | $**355352** | $**53936** | $**—** | $**(2673)** | $**406615** |
| Day rate/hourly services | $**353032** | $**53936** | $**—** | $**(824)** | $**406144** |
| Shortfall payments/idle but contracted | **79** | **—** | **—** | **—** | **79** |
| Other | **2241** | **—** | **—** | **(1849)** | **392** |
|  | $**355352** | $**53936** | $**—** | $**(2673)** | $**406615** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Three Months Ended June 30, 2024 | Contract<br> Drilling<br> Services | Completion<br> and<br> Production<br> Services | Corporate<br> and Other | Inter-<br> Segment<br> Eliminations | Total |
| Canada | $163429 | $61956 | $— | $(2215) | $223170 |
| United States | 147089 | 3870 |  |  | 150959 |
| International | 55085 |  |  |  | 55085 |
|  | $365603 | $65826 | $— | $(2215) | $429214 |
| Day rate/hourly services | $363202 | $65826 | $— | $(178) | $428850 |
| Other | 2401 |  |  | (2037) | 364 |
|  | $365603 | $65826 | $— | $(2215) | $429214 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Six Months Ended June 30, 2025** | **Contract<br> Drilling<br> Services** | **Completion<br> and<br> Production<br> Services** | **Corporate<br> and Other** | **Inter-<br> Segment<br> Eliminations** | **Total** |
| Canada | $**415465** | $**131544** | $**—** | $**(5129)** | $**541880** |
| United States | **258427** | **1722** | **—** | **—** | **260149** |
| International | **100917** | **—** | **—** | **—** | **100917** |
|  | $**774809** | $**133266** | $**—** | $**(5129)** | $**902946** |
| Day rate/hourly services | $**764967** | $**133266** | $**—** | $**(1452)** | $**896781** |
| Shortfall payments/idle but contracted | **4975** | **—** | **—** | **—** | **4975** |
| Other | **4867** | **—** | **—** | **(3677)** | **1190** |
|  | $**774809** | $**133266** | $**—** | $**(5129)** | $**902946** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Six Months Ended June 30, 2024 | Contract<br> Drilling<br> Services | Completion<br> and<br> Production<br> Services | Corporate<br> and Other | Inter-<br> Segment<br> Eliminations | Total |
| Canada | $402006 | $144902 | $— | $(4881) | $542027 |
| United States | 300032 | 8011 |  |  | 308043 |
| International | 106932 |  |  |  | 106932 |
|  | $808970 | $152913 | $— | $(4881) | $957002 |
| Day rate/hourly services | $803536 | $152913 | $— | $(355) | $956094 |
| Other | 5434 |  |  | (4526) | 908 |
|  | $808970 | $152913 | $— | $(4881) | $957002 |

---

**(b)** **Seasonality** 

Precision has operations that are carried on in Canada which represent approximately 60% (2024 – 57%) of consolidated revenue for the six months ended June 30, 2025 and 42% (2024 – 39%) of consolidated total assets as at June 30, 2025. 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, 2025** | **Contract<br> Drilling<br> Services** | **Completion<br> and<br> Production<br> Services** | **Corporate<br> and Other** | **Inter-<br> Segment<br> Eliminations** | **Total** |
| Revenue | $**355352** | $**53936** | $**—** | $**(2673)** | $**406615** |
| Earnings (loss) before income taxes, loss <br> (gain) on investments and other assets, <br> finance charges, foreign exchange, gain <br> on asset disposals, and depreciation <br> and amortization | **111422** | **9876** | **(13198)** | **—** | **108100** |
| Depreciation and amortization | **66733** | **5658** | **2467** | **—** | **74858** |
| Gain on asset disposals | **(4150)** | **(2230)** | **(45)** | **—** | **(6425)** |
| Foreign exchange | **(196)** | **(16)** | **(1405)** | **—** | **(1617)** |
| Finance charges | **289** | **104** | **14464** | **—** | **14857** |
| Loss on investments and other assets | **1368** | **—** | **306** | **—** | **1674** |
| Income taxes | **(2691)** | **(196)** | **11153** | **—** | **8266** |
| Net earnings (loss) for reportable segments | **50069** | **6556** | **(40138)** | **—** | **16487** |
| Total assets | **2391737** | **231625** | **119475** | **—** | **2742837** |
| Capital expenditures | **49460** | **3246** | **67** | **—** | **52773** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Three Months Ended June 30, 2024 | Contract<br> Drilling<br> Services | Completion<br> and<br> Production<br> Services | Corporate<br> and Other | Inter-<br> Segment<br> Eliminations | Total |
| Revenue | $365603 | $65826 | $— | $(2215) | $429214 |
| Earnings (loss) before income taxes, loss <br> (gain) on investments and other assets, <br> finance charges, foreign exchange, gain <br> on asset disposals, and depreciation <br> and amortization | 119754 | 12440 | (17073) |  | 115121 |
| Depreciation and amortization | 68732 | 3058 | 2028 |  | 73818 |
| Gain on asset disposals | (3887) | (975) | (2813) |  | (7675) |
| Foreign exchange | 148 |  | (619) |  | (471) |
| Finance charges | 446 | 98 | 17645 |  | 18189 |
| Loss on investments and other assets |  |  | 48 |  | 48 |
| Income taxes | (8097) | (806) | 19414 |  | 10511 |
| Net earnings (loss) for reportable segments | 62412 | 11065 | (52776) |  | 20701 |
| Total assets | 2479410 | 244705 | 190418 |  | 2914533 |
| Capital expenditures | 32868 | 4927 | 628 |  | 38423 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Six Months Ended June 30, 2025** | **Contract<br> Drilling<br> Services** | **Completion<br> and<br> Production<br> Services** | **Corporate<br> and Other** | **Inter-<br> Segment<br> Eliminations** | **Total** |
| Revenue | $**774809** | $**133266** | $**—** | $**(5129)** | $**902946** |
| Earnings (loss) before income taxes, loss <br> (gain) on investments and other assets, <br> finance charges, foreign exchange, gain <br> on asset disposals, and depreciation <br> and amortization | **247438** | **27422** | **(29263)** | **—** | **245597** |
| Depreciation and amortization | **133754** | **11223** | **4917** | **—** | **149894** |
| Gain on asset disposals | **(5439)** | **(3813)** | **(45)** | **—** | **(9297)** |
| Foreign exchange | **(41)** | **18** | **(1227)** | **—** | **(1250)** |
| Finance charges | **389** | **205** | **30023** | **—** | **30617** |
| Loss on investments and other assets | **1368** | **—** | **257** | **—** | **1625** |
| Income taxes | **(8050)** | **(355)** | **30979** | **—** | **22574** |
| Net earnings (loss) for reportable segments | **125457** | **20144** | **(94167)** | **—** | **51434** |
| Total assets | **2391737** | **231625** | **119475** | **—** | **2742837** |
| Capital expenditures | **106323** | **6232** | **183** | **—** | **112738** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Six Months Ended June 30, 2024 | Contract<br> Drilling<br> Services | Completion<br> and<br> Production<br> Services | Corporate<br> and Other | Inter-<br> Segment<br> Eliminations | Total |
| Revenue | $808970 | $152913 | $— | $(4881) | $957002 |
| Earnings (loss) before income taxes, loss <br> (gain) on investments and other assets, <br> finance charges, foreign exchange, gain <br> on asset disposals, and depreciation <br> and amortization | 273427 | 31045 | (46202) |  | 258270 |
| Depreciation and amortization | 137784 | 9878 | 4369 |  | 152031 |
| Gain on asset disposals | (6554) | (1517) | (2841) |  | (10912) |
| Foreign exchange | 246 | 3 | (326) |  | (77) |
| Finance charges | 957 | 201 | 35400 |  | 36558 |
| Gain on investments and other assets |  |  | (180) |  | (180) |
| Income taxes | (18568) | (323) | 42524 |  | 23633 |
| Net earnings for reportable segments | 159562 | 22803 | (125148) |  | 57217 |
| Total assets | 2479410 | 244705 | 190418 |  | 2914533 |
| Capital expenditures | 85253 | 7847 | 850 |  | 93950 |

---

**NOTE 5. LONG-TERM DEBT**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | U.S. Denominated Facilities | U.S. Denominated Facilities | U.S. Denominated Facilities | Translated U.S. Facilities | Translated U.S. Facilities |
| | **June 30,**<br>**2025** | | December 31,<br>2024 | **June 30,**<br>**2025** | December 31,<br>2024 |
| **Current Portion of Long-Term Debt** |  |  |  |  |  |
| &nbsp;&nbsp;Unsecured Senior Notes: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;7.125% senior notes due 2026 | **100000** | US | $— | $**136181** | $— |
|  | $**100000** | US | $— | $**136181** | $— |
| **Long-Term Debt** |  |  |  |  |  |
| &nbsp;&nbsp;Senior Credit Facility | **—** | US | $12000 | $**10000** | $17252 |
| &nbsp;&nbsp;Unsecured Senior Notes: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;7.125% senior notes due 2026 | **—** |  | 160000 | **—** | 230026 |
| &nbsp;&nbsp;&nbsp;&nbsp;6.875% senior notes due 2029 | **400000** |  | 400000 | **544724** | 575064 |
|  | **400000** | US | $572000 | **554724** | 822342 |
| Less net unamortized debt issue costs<br> and original issue discount |  |  |  | **(8295)** | (9873) |
|  |  |  |  | $**546429** | $812469 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Senior Credit Facility | Unsecured Senior Notes | Debt Issue Costs and Original Issue Discount | Total |
| Current | $— | $— | $— | $— |
| Long-term | 17252 | 805090 | (9873) | 812469 |
| December 31, 2024 | 17252 | 805090 | (9873) | 812469 |
| Changes from financing cash flows: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Proceeds from Senior Credit Facility | 10000 |  |  | 10000 |
| &nbsp;&nbsp;&nbsp;Repayment of unsecured senior notes |  | (83854) |  | (83854) |
| &nbsp;&nbsp;&nbsp;Repayment of Senior Credit Facility | (17110) |  |  | (17110) |
|  | 10142 | 721236 | (9873) | 721505 |
| Amortization of debt issue costs |  |  | 1240 | 1240 |
| Reclassification of loan commitment fees |  |  | 338 | 338 |
| Foreign exchange adjustment | (142) | (40331) |  | (40473) |
| **June 30, 2025** | $**10000** | $**680905** | $**(8295)** | $**682610** |
| Current | $— | $136181 | $— | $136181 |
| Long-term | 10000 | 544724 | (8295) | 546429 |
| **June 30, 2025** | $**10000** | $**680905** | $**(8295)** | $**682610** |

---

The 2026 Unsecured Senior Notes (**2026 Notes**) are due on January 15, 2026, and have been reclassified from long-term to current. The Senior Credit Facility matures on June 28, 2027. The Senior Credit Facility contains a springing maturity date provision such that if any specified unsecured debt, including the 2026 Notes, remains outstanding 90 days prior to their maturity date, then the Senior Credit Facility shall mature. Precision intends to use available operating cash flows and/or proceeds from the Senior Credit Facility to redeem the 2026 Notes prior to the springing maturity date of October 14, 2025.

As at June 30, 2025, Precision was in compliance with the covenants of the Senior Credit Facility.

---

| | | |
|:---|:---|:---|
| | Covenant | As of June 30, 2025 |
| **Senior Credit Facility** |  |  |
| &nbsp;&nbsp;&nbsp;Consolidated senior debt to consolidated covenant EBITDA<sup>(1)</sup> | <2.50 | 0.03 |
| &nbsp;&nbsp;&nbsp;Consolidated covenant EBITDA to consolidated interest expense | >2.50 | 8.21 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) For purposes of calculating the leverage ratio consolidated senior debt only includes secured indebtedness.

**NOTE 6. FINANCE CHARGES**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Three Months Ended June 30, | Three Months Ended June 30, | Six Months Ended June 30, | Six Months Ended June 30, |
| | **2025** | 2024 | **2025** | 2024 |
| Interest: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Long-term debt | $**13222** | $16639 | $**27712** | $33667 |
| &nbsp;&nbsp;&nbsp;Lease obligations | **1107** | 1043 | **2138** | 2082 |
| &nbsp;&nbsp;&nbsp;Other | **103** | 158 | **120** | 249 |
| &nbsp;&nbsp;&nbsp;Income | **(412)** | (777) | **(911)** | (1345) |
| Amortization of debt issue costs, loan commitment fees<br> and original issue discount | **837** | 1126 | **1558** | 1905 |
| Finance charges | $**14857** | $18189 | $**30617** | $36558 |

---

**NOTE 7. SHARE-BASED COMPENSATION PLANS**

**<u>Liability Classified Plans</u>**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Restricted<br> Share Units <sup>(a)</sup> | Performance<br> Share <br> Units <sup>(a)</sup> | Non-Management<br> Directors' DSUs <sup>(b)</sup> | Total |
| December 31, 2024 | $11560 | $35443 | $10855 | $57858 |
| &nbsp;&nbsp;Expensed during period | 1074 | 4797 | (2807) | 3064 |
| &nbsp;&nbsp;Settlement in shares | (1920) | (6941) |  | (8861) |
| &nbsp;&nbsp;Payments and redemptions | (6772) | (21582) |  | (28354) |
| &nbsp;&nbsp;Foreign exchange | 47 | (44) |  | 3 |
| **June 30, 2025** | $**3989** | $**11673** | $**8048** | $**23710** |
| Current | $2710 | $5738 | $8048 | $16496 |
| Long-term | 1279 | 5935 |  | 7214 |
|  | $**3989** | $**11673** | $**8048** | $**23710** |

---

**(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<br> Outstanding | PSUs<br> Outstanding |
| December 31, 2024 | 179760 | 497053 |
| &nbsp;&nbsp;&nbsp;Granted | 65694 | 155437 |
| &nbsp;&nbsp;&nbsp;Redeemed | (102849) | (230252) |
| &nbsp;&nbsp;&nbsp;Forfeited | (7292) | (8270) |
| **June 30, 2025** | **135313** | **413968** |

---

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

A summary of the activity under the non-management director DSU plan is presented below:

---

| | | |
|:---|:---|:---|
| | DSUs<br> Outstanding | DSUs<br> Outstanding |
| December 31, 2024 |  | 123473 |
| &nbsp;&nbsp;&nbsp;Granted | | 1,335 |
| **June 30, 2025** | | **124,808** |

---

**<u>Equity Settled Plans</u>**

**(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, 2024 | 92492 | $85.48 |
| &nbsp;&nbsp;&nbsp;Granted | 89291 | 80.35 |
| &nbsp;&nbsp;&nbsp;Redeemed | (36241) | 87.07 |
| &nbsp;&nbsp;&nbsp;Forfeited | (4152) | 82.01 |
| **June 30, 2025** | **141390** | $**81.93** |

---

Included in net earnings for the three and six months ended June 30, 2025 were expenses of $2 million (2024 – $1 million) and $3 million (2024 – $2 million) respectively.

**(d) Option Plan**

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

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| ***Canadian share options*** | Outstanding | Range of<br> Exercise Price | Range of<br> Exercise Price | Weighted<br> Average<br> Exercise Price | Exercisable |
| December 31, 2024 | 11960 | $87.00 | 87.00 | $87.00 | 11960 |
| &nbsp;&nbsp;&nbsp;Forfeited | (11960) | 87.00 | 87.00 | 87.00 |  |
| **June 30, 2025** | **—** | $**—** | **—** | $**—** | **—** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| ***U.S. share options*** | Outstanding | Range of<br> Exercise Price <br> (US$) | Range of<br> Exercise Price <br> (US$) | Weighted<br> Average<br> Exercise Price<br> (US$) | Exercisable |
| December 31, 2024 | 60052 | $51.20 | 72.46 | $66.44 | 60052 |
| &nbsp;&nbsp;&nbsp;Forfeited | (48790) | 68.80 | 68.80 | 68.80 |  |
| **June 30, 2025** | **11262** | $**51.20** | **72.46** | $**56.22** | **11262** |

---

**(e) Non-Management Directors – Deferred Share Unit Plans**

A summary of the activity under the non-management director DSU plans is presented below:

---

| | | |
|:---|:---|:---|
| ***Deferred share units*** | Outstanding- <br> 2012 Plan | Outstanding- <br> 2024 Plan |
| December 31, 2024 | 1470 | 2753 |
| &nbsp;&nbsp;&nbsp;Granted |  | 8956 |
| &nbsp;&nbsp;&nbsp;Redeemed |  | (5340) |
| **June 30, 2025** | **1470** | **6369** |

---

Included in net earnings for the three and six months ended June 30, 2025 were expenses of nil (2024 – nil) and $1 million (2024 – nil) respectively.

**NOTE 8. SHAREHOLDERS' CAPITAL**

---

| | | |
|:---|:---|:---|
| Common shares | Number | Amount |
| December 31, 2024 | 13779502 | $2301729 |
| Reversal of share repurchase accrual — December 31, 2024 |  | 10000 |
| Share repurchase accrual — June 30, 2025 |  | (5000) |
| Settlement of PSUs and RSUs | 150068 | 11651 |
| Share repurchases | (646058) | (45921) |
| Redemption of non-management directors share units | 5340 | 361 |
| **June 30, 2025** | **13288852** | $**2272820** |

---

For the period ended June 30, 2025, Precision repurchased and cancelled a total of 646,058 (2024 – 366,214) common shares for $45 million (2024 – $34 million) and recorded $0.7 million (2024 – nil) of Canadian share buy back tax.

Prior to June 30, 2025, Precision entered into an Automated Share Purchase Plan (**ASPP**) with an independent broker to permit the repurchase of 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 estimated to occur during the blackout period based on the parameters of the Normal Course Issuer Bid (**NCIB**) and the ASPP. As at June 30, 2025, Precision recorded a liability in accounts payable with a corresponding decrease to share capital of $5 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, | Three Months Ended June 30, | Six Months Ended June 30, | Six Months Ended June 30, |
| | **2025** | 2024 | **2025** | 2024 |
| Net earnings attributable to shareholders – basic | $**16267** | $20701 | $**50778** | $57217 |
| Effect of share options and other equity<br> compensation plans | **(1271)** |  | **(4309)** |  |
| Net earnings attributable to shareholders – diluted | $**14996** | $20701 | $**46469** | $57217 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Three Months Ended June 30, | Three Months Ended June 30, | Six Months Ended June 30, | Six Months Ended June 30, |
| *(Stated in thousands)* | **2025** | 2024 | **2025** | 2024 |
| Weighted average shares outstanding – basic | **13401** | 14389 | **13541** | 14398 |
| Effect of share options and other equity<br> compensation plans | **586** | 6 | **617** | 4 |
| Weighted average shares outstanding – diluted | **13987** | 14395 | **14158** | 14402 |

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**NOTE 10. FAIR VALUES OF FINANCIAL INSTRUMENTS**

The carrying value of cash, accounts receivable, accounts payable and accrued liabilities, and current portion of long-term debt 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, measured at amortized cost, approximate fair value as this indebtedness is subject to floating rates of interest. The fair value of the unsecured senior notes at June 30, 2025 was approximately $674 million (December 31, 2024 – $801 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.

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| <br> **<u>SHAREHOLDER INFORMATION</u>**<br>**STOCK EXCHANGE LISTINGS**<br> 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.<br>**TRANSFER AGENT AND REGISTRAR**<br> Computershare Trust Company of Canada<br> Calgary, Alberta<br>**TRANSFER POINT**<br> Computershare Trust Company NA<br> Canton, Massachusetts<br>**Q2 2025 TRADING PROFILE**<br> Toronto (TSX: PD)<br> High: $71.14<br> Low: $51.58<br> Close: $64.49<br> Volume Traded: 7,905,658<br>New York (NYSE: PDS)<br> High: US$52.07<br> Low: US$36.20<br> Close: US$47.24<br> Volume Traded: 8,400,055<br>**ACCOUNT QUESTIONS**<br> Precision's Transfer Agent can help you with a variety of shareholder related services, including:<br> • change of address<br> • lost unit certificates<br> • transfer of shares to another person<br> • estate settlement<br>Computershare Trust Company of Canada<br> 100 University Avenue<br> 9th Floor, North Tower<br> Toronto, Ontario M5J 2Y1<br> Canada<br>1-800-564-6253 (toll free in Canada and the United States)<br> 1-514-982-7555 (international direct dialing)<br> Email: service@computershare.com<br>**ONLINE INFORMATION**<br> 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.sedarplus.ca and on the EDGAR website www.sec.gov | **<u>CORPORATE INFORMATION</u>**<br>**DIRECTORS**<br> William T. Donovan<br> Steven W. Krablin<br> Susan M. MacKenzie<br> Lori A. Lancaster<br> Kevin O. Meyers<br> Kevin A. Neveu<br> David W. Williams<br> Alice L. Wong<br>**OFFICERS**<br> Kevin A. Neveu<br> *President and Chief Executive Officer*<br>Veronica H. Foley<br> *Chief Legal & Compliance Officer*<br>Carey T. Ford<br> *Chief Financial Officer*<br>Shuja U. Goraya<br> *Chief Technology Officer*<br>Darren J. Ruhr<br> *Chief Administrative Officer*<br>Gene C. Stahl<br> *President, North American Drilling*<br>**AUDITORS**<br> KPMG LLP<br> *Calgary, Alberta*<br>**HEAD OFFICE**<br> Suite 800, 525 8th Avenue SW<br> Calgary, Alberta, T2P 1G1<br> Canada<br> Telephone: 403-716-4500<br> Facsimile: 403-264-0251<br> Email: info@precisiondrilling.com<br> www.precisiondrilling.com<br>|

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