🧾 What This Document Is

This is the 2026 Management Information Circular for Precision Drilling. It's essentially the official guidebook for shareholders ahead of the company's 2026 Annual Meeting. Its job is to explain what will be voted on, provide a deep dive into the company's performance and governance, and give shareholders the information they need to make informed decisions.

👉 Why it matters: If you own shares in Precision, this document tells you what your vote is worth and how the company performed. It’s your chance to have a say in who runs the board and approves the auditors.

The Big Meeting Details:

• What: 2026 Annual Meeting of Shareholders
• When: Thursday, May 14, 2026, at 10:00 a.m. Mountain Daylight Time (MDT)
• Where: Virtual-only via webcast at https://meetnow.global/M9JFRVX

🏢 What The Company Does

In simple terms, Precision Drilling is a giant "trucking company" for the oil and gas industry, but instead of trucks, they operate massive, high-tech land drilling rigs. They are hired by energy companies to drill wells safely and efficiently.

• What they do: Design, build, and operate onshore drilling and well service rigs. They provide the equipment, technology, and skilled people to drill oil, natural gas, and geothermal wells.
• What they don't do: They don't operate offshore rigs, refine oil, or own the land they drill on. They are a pure-play service provider.
• Their Edge: They focus on a "High Performance, High Value" strategy, using their premium Super Series rigs, Alpha™ automation technologies, and EverGreen™ environmental solutions to stand out.

💰 Financial Highlights & 2025 Performance

Despite a tough market with falling oil prices and lower industry activity, Precision delivered a solid 2025 focused on cash flow and debt reduction.

• Cash is King: Generated $413 million in cash from operations.
• Debt Reduction: Paid down $101 million in debt, hitting their annual target. Since 2022, they've reduced debt by a massive $535 million.
• Leverage Ratio: Their key debt metric (Net Debt to Adjusted EBITDA) ended the year at approximately 1.2 times, aiming to get it below 1.0 times.
• Returning Cash to Shareholders: Repurchased $76 million of their own shares, reducing shares outstanding by 6%.
• Investing in the Fleet: Spent $107 million on upgrades, including 27 major customer-funded rig upgrades.

🚀 Key Moves & Strategic Priorities

The company made several important moves in 2025 and is focused on a clear path forward.

Key 2025 Moves:

• Leadership Transition: Seamlessly appointed new CEO (Carey T. Ford), CFO (Dustin D. Honing), and COO (Gene C. Stahl).
• Portfolio Adjustment: Wound down its U.S. well service operations to focus on core strengths.
• Fleet Modernization: Decommissioned 31 older rigs that didn't meet tech standards, taking a $67 million charge.
• Market Share Growth: Grew its leading Canadian market share and increased U.S. rig count from a low of 27 to a peak of 40.

2026 Strategic Priorities:

1. Drive Revenue through contracted upgrades and leveraging their technology.
2. Maximize Free Cash Flow with strict cost discipline.
3. Enhance Shareholder Returns by reducing debt by at least another $100 million and allocating up to 50% of free cash flow (before debt payments) back to shareholders.

📦 Financial Position & What It Signals

Precision's balance sheet is getting stronger, signaling a company moving from a recovery phase to a more stable, shareholder-focused stance.

• Debt Down, Cash Up: They ended the year with increased cash and a significantly lower debt burden. The path to a leverage ratio below 1.0x is on track.
• Disciplined Capital: They are balancing three uses for their cash: reducing debt, rewarding shareholders, and maintaining a top-tier rig fleet. This is a classic sign of a mature, financially disciplined company.
• Asset Write-Down: The $67 million charge for decommissioning old rigs is a short-term pain for long-term gain, sharpening their competitive edge with a modern fleet.

🤝 Governance & The Board

The company is governed by a board that is overwhelmingly independent and has significant experience.

• Board Nominees: Shareholders will vote to elect 8 directors. All are independent except the CEO, Carey T. Ford.
• Key Committees: The board has three main committees: Audit, Corporate Governance, Nominating and Risk (CGNRC), and Human Resources and Compensation (HRCC).
• A Big Change: After a periodic review, the board changed its auditor from KPMG LLP to PricewaterhouseCoopers LLP (PwC), effective March 7, 2026. There were no problems that caused this change.
• Say on Pay: Item 4 is the advisory vote on executive compensation. This is your chance to approve or reject the pay packages for top management.

⚖️ Big Picture: Strengths & Risks

👍 Strengths:

• Industry-Leading Fleet & Tech: Their Super Series rigs and Alpha™ tech are key differentiators.
• Financial Discipline: Clear, consistent track record of hitting debt reduction and cash return targets.
• Scale & Diversification: Large fleet across Canada, the U.S., and internationally provides stability.
• Strong Governance: High board attendance, clear independence, and robust ethical policies.

⚠️ Risks:

• Commodity Price Volatility: Their business is directly tied to oil and gas prices, which are unpredictable.
• Customer Capital Discipline: Their clients (producers) are focused on shareholder returns, not spending wildly, which can limit growth.
• Industry-Wide Activity Decline: Average drilling activity fell 5-6% in their core markets in 2025.
• Energy Transition: Long-term shift away from fossil fuels creates uncertainty for the entire drilling industry.

🔮 What's Next

Precision is heading into 2026 with a clear, consistent plan. The focus remains on executing its "High Performance, High Value" strategy, leveraging its technology and scale to win contracts, maintaining cost control, and continuing its disciplined financial framework of reducing debt and returning capital to shareholders. The successful leadership transition sets the stage for this strategy to continue uninterrupted.

🧠 The Analogy

Think of Precision Drilling as a specialized, high-end construction equipment rental company for the energy industry. They don't own the land or build the final "house" (produce oil/gas), but they own and maintain the most advanced "cranes and bulldozers" (drilling rigs), operated by the best crews, to help their clients (producers) build the project as efficiently as possible. Their current strategy is like the company paying off the loans on its equipment (debt reduction), upgrading its fleet, and sharing the profits with its owners (shareholders).

📇 Key Contacts & People

• Veronica H. Foley, Chief Legal and Compliance Officer (signed the notice)
• Steven W. Krablin, Chair of the Board of Directors
• Carey T. Ford, President and Chief Executive Officer
• Dustin D. Honing, Chief Financial Officer (mentioned in narrative)
• Gene C. Stahl, Chief Operating Officer (mentioned in narrative)
• Kevin A. Neveu, Former President & CEO (retired)

(Note: The filing includes detailed profiles and contact information for all eight director nominees.)

🧩 Final Takeaway

This circular paints a picture of a company focused on financial fortress-building. Precision Drilling used 2025 to strengthen its balance sheet, modernize its fleet, and successfully transition leadership, all while navigating a weaker market. The message to shareholders for 2026 is one of continued discipline: pay down more debt, buy back more shares, and let its high-tech rig fleet do the talking. Your vote on May 14th will endorse this steady, financially prudent strategy.