Exhibit 99.1

PRECISION DRILLING CORPORATION

Second Quarter Report for the three and six months ended June 30, 2020 and 2019

MANAGEMENT’S DISCUSSION AND ANALYSIS

Management’s Discussion and Analysis for the three and six months ended June 30, 2020 of Precision Drilling Corporation (“Precision” or the “Corporation”) prepared as of July 22, 2020 focuses on the unaudited Condensed Interim Consolidated Financial Statements and related notes and pertains to known risks and uncertainties relating to the oilfield services sector. This discussion should not be considered all-inclusive as it does not include all changes regarding general economic, political, governmental and environmental events. This discussion should be read in conjunction with the Corporation’s 2019 Annual Report, Annual Information Form, unaudited June 30, 2020 Condensed Interim Consolidated Financial Statements and related notes.

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 Adjusted EBITDA, Covenant EBITDA, Operating Earnings (Loss), Funds Provided by (Used in) Operations and Working Capital. These terms do not have standardized meanings prescribed under International Financial Reporting Standards (IFRS) and may not be comparable to similar measures used by other companies, see “Non-GAAP Measures” later in this report.

Precision Drilling announces 2020 second quarter financial results:

· Revenue of $190 million was a decrease of 47% compared with the second quarter of 2019.

· Net loss of $49 million or negative $0.18 per diluted share compared with a net loss of $14 million or negative $0.05 per diluted share in 2019.

· Earnings before income taxes, gain on repurchase of unsecured senior notes, finance charges, foreign exchange, impairment reversal, gain on asset disposals and depreciation and amortization (Adjusted EBITDA, see “NON-GAAP MEASURES”) of $58 million as compared with $81 million in the second quarter of 2019.

· Generated cash and funds provided by operations (see “NON-GAAP MEASURES”) of $104 million and $27 million, respectively.

· Second quarter ending cash balance was $175 million, an increase of $78 million from March 31, 2020.

· Second quarter capital expenditures were $24 million.

· Reduced our unsecured senior notes balance by $5 million and drew $5 million under our Senior Credit Facility.

· In U.S., recognized US$8 million of idle but contracted rig revenue and US$8 million of contract cancellation fees of which US$2 million pertained to second quarter contracted days.

· Recognized restructuring charges of $6 million and Government of Canada wage subsidies of $9 million.

· To secure our liquidity position, on April 9, 2020, we amended our Senior Credit Facility to provide temporary covenant relief through March 31, 2022.

1

IMPACT OF COVID-19

In March 2020, the novel coronavirus (“COVID-19”) outbreak was declared a pandemic by the World Health Organization. Governments worldwide, including those countries in which Precision operates, have enacted emergency measures to combat the spread of the virus. These measures, which include the implementation of travel bans, self-imposed quarantine periods and social distancing, have caused a material disruption to businesses globally resulting in an economic slowdown and decreased demand for oil. Governments and central banks have reacted with significant monetary and fiscal interventions designed to stabilize economic conditions; however, the long-term success of these interventions is not yet determinable.

As a result of the decrease in demand, worldwide inventories of oil have increased significantly. However, in the second quarter voluntary production restraint from national oil companies and governments of oil-producing nations along with curtailments in the U.S. and Canada have shifted global oil markets from a position of over supply to inventory draws. The situation remains dynamic and the ultimate duration and magnitude of the impact on the economy and the financial effect on the Corporation remains unknown at this time.

Financial impacts

The current challenging economic climate has or may have significant adverse impacts on Precision including, but not exclusively:

· Material declines in revenue and cash flows, as our customers are concentrated in the oil and natural gas industry;

· Future impairment charges to our property, plant and equipment and intangible assets as a result of material declines in revenue and cash flows;

· Increased risk of non-payment of accounts receivable and customer defaults; and

· Additional restructuring charges as we align our structure and personnel to the dynamic environment.

Our estimates and judgements made in the preparation of our financial statements are increasingly difficult and subject to a higher degree of measurement uncertainty during this volatile period.

Precision took the following measures to align our cost structure and maximize cash preservation during the current market conditions, including:

· Compensation reductions for the Board of Directors and management;

· Staff headcount reductions;

· Elimination of all non-essential travel, entertaining and other discretionary spending;

· Reductions to our 2020 capital expenditure plan;

· Materially reducing spending on our active normal course issuer bid (NCIB); and

· Discontinued our U.S. directional drilling operations.

We review the carrying value of our long-lived assets for indications of impairment at the end of each reporting period. At June 30, 2020, we reviewed each cash-generating unit (CGU) and did not identify indications of impairment. Accordingly, we did not test our CGUs for impairment. At March 31, 2020, we tested all CGUs for impairment and no impairment charges were identified.

Operational impacts

During this pandemic crisis, in regions where the local authorities have ordered non-essential business closures and implemented “stay at home” orders, the oil and natural gas extractive services industry has been classified as an “essential service”. As a result, Precision’s operations remain open. This includes all of Precision’s field operations, technical support centres and administration groups. The vertical integration of our operations has resulted in minimal supply chain constraints and disruptions during the pandemic.

To manage the additional safety risks presented by COVID-19, Precision implemented a comprehensive infectious disease plan to keep our field crews, support staff and customers safe and well-informed. Precision has implemented additional safety, sanitization and physical distancing procedures, including remote work sites where possible and ceased all non-essential business travel. Precision’s procedures are in accordance with recommendations from the World Health Organization, Center for Disease Control and various federal, state and provincial government health authorities.

2

Liquidity

Despite the enormous challenges posed by COVID-19 and the simultaneous oil price war, we improved our overall liquidity position during the second quarter. We exited the quarter with a cash balance of $175 million and $682 million of available borrowing capacity under our secured credit facilities, providing us with $857 million of total liquidity as compared with $798 million at March 31, 2020 which was comprised of cash of $97 million and available borrowing capacity of $701 million. Our liquidity position will ensure we can persevere through a prolonged market downturn and allow us to promptly react and capture a market recovery.

At June 30, 2020, our available borrowing capacity of $682 million was comprised of our Senior Credit Facility of US$500 million less drawn amounts of US$4 million and US$32 million of outstanding letters of credit, our undrawn Canadian operating facility of $40 million less $8 million of outstanding letters of credit and our undrawn U.S. operating facility of US$15 million.

We expect that cash provided by operations, cash on hand and our sources of financing, including our Senior Credit Facility, will be sufficient to meet our debt obligations and fund committed and future capital expenditures.

We began the quarter with $1,522 million of outstanding unsecured senior notes. During the second quarter, we repurchased and cancelled $5 million of unsecured senior notes using amounts drawn on our Senior Credit Facility recognizing a gain of $1 million. The strengthening of the Canadian dollar during the second quarter resulted in $54 million of lower stated debt such that at June 30, 2020, we had $1,462 million of outstanding unsecured senior notes and $16 million in unamortized debt issue costs.

The current blended cash cost of our debt is approximately 6.7%.

Amendments to Senior Credit Facility

On April 9, 2020 we agreed with the lenders of our Senior Credit Facility to amend our interest expense coverage ratio financial covenant in future periods. The amending agreement also restricts Precision’s distributions in the form of dividends, distributions and share repurchases. Despite obtaining financial covenant relief on our Senior Credit Facility through March 31, 2022, if the global economic slowdown continues for a prolonged period, there may be an increased risk to Precision’s ability to comply with these financial covenants.

Additional discussion of amendments to our Senior Credit Facility can be found in the “LIQUIDITY AND CAPITAL RESOURCES” section later in this report.

3

SELECT FINANCIAL AND OPERATING INFORMATION

Financial Highlights

(Stated in thousands of Canadian dollars,	For the three months ended June 30,							For the six months ended June 30,
except per share amounts)		2020		2019		% Change			2020		2019		% Change
Revenue		189,759		359,424		(47.2	)		569,243		793,467		(28.3	)
Adjusted EBITDA(1)		58,465		81,037		(27.9	)		160,369		189,004		(15.2	)
Operating earnings (loss)(1)		(19,189	)	5,569		(444.6	)		3,410		67,643		(95.0	)
Net earnings (loss)		(48,867	)	(13,801	)	254.1			(54,144	)	11,213		(582.9	)
Cash provided by operations		104,478		106,035		(1.5	)		179,431		146,622		22.4
Funds provided by operations(1)		26,639		40,950		(34.9	)		107,956		136,943		(21.2	)
Capital spending:
Expansion and upgrade		12,111		33,595		(63.9	)		13,764		99,712		(86.2	)
Maintenance and infrastructure		11,816		9,874		19.7			21,648		14,719		47.1
Intangibles		-		26		(100.0	)		57		464		(87.7	)
Proceeds on sale		(5,021	)	(24,575	)	(79.6	)		(10,711	)	(82,452	)	(87.0	)
Net capital spending		18,906		18,920		(0.1	)		24,758		32,443		(23.7	)
Net earnings (loss) per share:
Basic		(0.18	)	(0.05	)	256.4			(0.20	)	0.04		(600.0	)
Diluted		(0.18	)	(0.05	)	256.4			(0.20	)	0.04		(600.0	)

(1) See “NON-GAAP MEASURES”.

Operating Highlights

	For the three months ended June 30,					For the six months ended June 30,
		2020	2019	% Change			2020	2019	% Change
Contract drilling rig fleet		227	232	(2.2	)		227	232	(2.2	)
Drilling rig utilization days:
U.S.		2,743	6,994	(60.8	)		7,727	14,117	(45.3	)
Canada		834	2,413	(65.4	)		6,603	6,757	(2.3	)
International		687	728	(5.6	)		1,415	1,448	(2.3	)
Revenue per utilization day:
U.S.(1) (US$)		29,370	23,425	25.4			25,828	23,312	10.8
Canada(2) (Cdn$)		22,940	21,613	6.1			21,633	22,490	(3.8	)
International (US$)		54,779	51,542	6.3			54,529	50,746	7.5
Operating cost per utilization day:
U.S. (US$)		14,172	14,803	(4.3	)		14,406	14,584	(1.2	)
Canada (Cdn$)		13,898	17,414	(20.2	)		14,196	15,840	(10.4	)
Service rig fleet		123	123	-			123	123	-
Service rig operating hours		4,702	29,540	(84.1	)		39,067	72,438	(46.1	)

(1) Includes revenue from idle but contracted rig days and contract cancellation fees.

(2) Includes lump sum contract shortfall revenue.

Financial Position

(Stated in thousands of Canadian dollars, except ratios)	June 30, 2020	December 31, 2019
Working capital(1)	237,867	201,696
Cash	175,125	74,701
Long-term debt	1,450,900	1,427,181
Total long-term financial liabilities	1,521,067	1,500,950
Total assets	3,204,233	3,269,840
Long-term debt to long-term debt plus equity ratio	0.49	0.48

(1) See “NON-GAAP MEASURES”.

4

Summary for the three months ended June 30, 2020:

· Revenue this quarter was $190 million which is 47% lower than the second quarter of 2019. Our decreased revenue was primarily the result of lower activity across all operating segments. Industry drilling activity steeply declined in the second quarter of 2020 as customers reduced drilling programs in response to the global economic slowdown. Compared with the second quarter of 2019, our activity, as measured by drilling rig utilization days, decreased by 61% in the U.S., 65% in Canada and 6% internationally.

· Adjusted EBITDA (see “NON-GAAP MEASURES”) of $58 million for the quarter was a decrease of $23 million from the previous year and was primarily due to lower activity. As a percentage of revenue, Adjusted EBITDA was 31% compared with 23% in the comparative quarter. The improved percentage was primarily due to U.S. contract cancellation fees, increased idle but contracted rig payments and Canadian wage subsidies partially offset by higher restructuring costs and share-based compensation charges. See discussion on share-based incentive compensation under “Other Items” later in this report for additional details.

· Operating loss (see “NON-GAAP MEASURES”) this quarter was $19 million compared with operating earnings of $6 million in the second quarter of 2019. Our operating earnings in the prior year quarter were positively impacted by higher activity levels.

· General and administrative expenses this quarter were $18 million, $8 million lower than in 2019. Our lower general and administrative costs in 2020 were primarily due to lower overhead costs as we continued to align our cost structure to reflect reduced global activity and the impact of Canadian wage subsidies.

· Restructuring charges were $6 million as compared to nil in 2019.

· Net finance charges were $28 million, a decrease of $2 million compared with the second quarter of 2019 and primarily due to reduced interest expense related to retired debt, offset by the impact of the weakening of the Canadian dollar on our U.S. dollar denominated interest.

· In the second quarter of 2020, revenue per utilization day in the U.S. increased to US$29,370 from US$23,425 in 2019. The increase was primarily the result of higher revenues from contract cancellation fees, idle but contracted rigs and turnkey drilling. We had second quarter revenue from contract cancellation fees, idle but contracted rigs and turnkey projects of US$8 million, US$8 million and US$3 million, respectively, as compared with nil, US$1 million and nil, respectively in 2019. Operating costs on a per day basis decreased to US$14,172 in the second quarter of 2020 compared with US$14,803 in 2019. The decrease was mainly due to lower repairs and maintenance partially offset by increased turnkey activity. On a sequential basis, revenue per utilization day, excluding revenue from contract cancellations, idle but contracted rigs and turnkey activity were in line with the first quarter. Operating costs per day decreased by US$362 due to lower repairs and maintenance partially offset by turnkey drilling costs.

· In Canada, average revenue per utilization day for contract drilling rigs was $22,940 compared with $21,613 in the second quarter of 2019. The higher average revenue per utilization day in the second quarter of 2020 was primarily due to rig mix partially offset by lower contract shortfall revenue. During the quarter, we did not recognize any contract shortfall revenue compared with $1 million in 2019. Average operating costs per utilization day for drilling rigs in Canada decreased to $13,898 compared with the prior year quarter of $17,414. The decrease was mainly caused by the impact of the Canadian wage subsidy programs partially offset by fixed operating overheads being spread over fewer utilization days. During the quarter, we recognized Canadian wage subsidies of $4 million which lowered our operating costs per utilization day by $5,173.

· We realized revenue from international contract drilling of US$38 million in the second quarter of 2020, consistent with the prior year quarter. Average revenue per utilization day in our international contract drilling business increased 6% to US$54,779 from the comparable prior year quarter, primarily due to rate increases from the commencement, renewal and extension of drilling contracts.

· Cash and funds provided by operations (see “NON-GAAP MEASURES”) in the second quarter of 2020 were $104 million and $27 million, respectively, compared to $106 million and $41 million in the prior year comparative.

· Capital expenditures were $24 million in the second quarter, a decrease of $20 million over the same period in 2019. Capital spending for the quarter included $12 million for upgrade and expansion capital and $12 million for the maintenance of existing assets, infrastructure spending and intangibles.

5

Summary for the six months ended June 30, 2020:

· Revenue for the first half of 2020 was $569 million, a decrease of 28% from the comparative 2019 period.

· Operating earnings (see “NON-GAAP MEASURES”) were $3 million, a decrease of $64 million from the same period in 2019. As a percentage of revenue, operating earnings were 1% compared with 9% in 2019. Operating results this year were negatively impacted by lower activity.

· General and administrative costs were $38 million, a decrease of $19 million from 2019. The decrease was due to lower overhead costs as a result of our restructuring activities and lower share-based compensation.

· Net finance charges were $56 million, a decrease of $6 million from 2019 primarily due to a reduction in interest expense related to retired debt partially offset by the weakening of the Canadian dollar on our U.S. dollar denominated interest expense.

· Cash provided by operations was $179 million in 2020 as compared with $147 million in 2019. Funds provided by operations (see “NON-GAAP MEASURES”) in the first half of 2020 were $108 million, a decrease of $29 million from the prior year comparative period of $137 million.

· Capital expenditures were $35 million for the first half of 2020, a decrease of $79 million over the same period in 2019. Capital spending for the first half of 2020 included $14 million for upgrade and expansion capital and $22 million for the maintenance of existing assets, infrastructure spending and intangibles.

STRATEGY

Precision’s strategic priorities for 2020 are as follows:

1. Generate strong free cash flow and reduce debt by $100 million to $150 million in 2020 – In the second quarter of 2020, Precision generated $104 million of cash provided by operations (see “NON-GAAP MEASURES”) and $5 million of cash proceeds from the divestiture of non-core assets. We increased our cash balance by $78 million during the quarter, exiting with a cash balance of $175 million, compared to $97 million at March 31, 2020. We will place a high priority on maintaining a strong liquidity position and will continue to reduce debt levels once visibility improves.

2. Demonstrate operational excellence in all aspects of our business – In Canada, we continued at record level market share of 36% and reported operating margins (revenue less operating costs) of $9,042 per utilization day. In the U.S., we lowered field costs and leveraged our contract book to generate reported operating margins of US$15,198 per utilization day. Internationally, we maintained stable activity, averaging eight active drilling rigs, and recorded average day rates of US$54,779.

3. Leverage our Alpha Technology platform as a competitive differentiator and source of financial returns – As at June 30, 2020, we have 38 field-deployed rigs equipped with our AlphaAutomation platform which have drilled 316 wells in 2020. Since 2017, we have drilled approximately 1,500 wells with AlphaAutomation and currently have 18 AlphaApps available, of which six are commercial. In 2020, we have drilled over 110 wells with AlphaApps, generating 890 AlphaApp days, further allowing us to differentiate our High Performance, High Value offering. We are currently utilizing AlphaAnalytics for an integrated oil company in the Delaware basin and have reduced drilling time on a 28-day horizontal well by 4.1 days, setting a new drilling efficiency benchmark. With a separate customer in the Haynesville basin, we applied AlphaAnalytics to their full fleet of rigs and delivered an 8% improvement in drilling times compared to results achieved in the first quarter. AlphaAnalytics, AlphaApps and the AlphaAutomation platform are functioning on over half of our active North American fleet today.

OUTLOOK

The energy industry continues to have a challenging outlook as the COVID-19 pandemic has resulted in significant global oil supply imbalances and near-term crude oil price volatility. Our customers have responded by materially reducing capital spending leading to a rapid reduction in global oilfield service activity levels. In this reduced-activity environment, our customers remain focused on operational efficiencies. We anticipate this will accelerate the industry’s transition towards service providers with the highest performing assets and competitive digital technology offerings. Pursuit of predictable and repeatable results will further drive field application of drilling automation processes to create additional cost efficiencies and performance value for customers.

Precision continues to closely monitor announcements of available government financial support and economic stimulus programs. We are encouraged by the Government of Canada’s $1.7 billion well site abandonment and rehabilitation program, which will support industry activity levels and provide thousands of jobs throughout western Canada. The program is expected to run through to the end of 2022 with government funds being provided in stages. As the use of service rigs is an integral part of the well abandonment process, we believe our well servicing business is well positioned to capture these opportunities as a result of our scale, operational performance and strong safety record.

6

On April 1, 2020, the Government of Canada announced the Canada Emergency Wage Subsidy (CEWS) program, which would subsidize 75% of employee wages for Canadian employers whose businesses have been affected by COVID-19. The program is intended to help employers re-hire previously laid off workers, prevent further job losses and better position Canadian businesses to resume normal operations. Under this program in the second quarter of 2020, we recognized $9 million of CEWS subsidies that were presented as reductions to operating and general and administrative expense of $6 million and $3 million, respectively. The Government of Canada recently indicated its continued support of this program through to the end of the year. We expect to participate in the third and fourth quarter of 2020 and receive similar levels of wage subsidies as recognized in the second quarter.

Commodity Prices

In the second quarter of 2020, average West Texas Intermediate and Western Canadian Select oil prices were lower by 53% and 67%, respectively, from the comparative quarter. The average Henry Hub natural gas price was 33% lower than the comparative period while AECO increased by 85%.

	For the three months ended June 30,		Year ended December 31,
	2020	2019	2019
Average oil and natural gas prices
Oil
West Texas Intermediate (per barrel) (US$)	28.37	59.99	57.07
Western Canadian Select (per barrel) (US$)	16.33	49.13	44.28
Natural gas
United States
Henry Hub (per MMBtu) (US$)	1.72	2.56	2.56
Canada
AECO (per MMBtu) (CDN$)	1.96	1.06	1.77

Contracts

Year to date in 2020 we have entered into ten term contracts. The following chart outlines the average number of drilling rigs under contract by quarter as of July 22, 2020. For those quarters ending after June 30, 2020, this chart represents the minimum number of long-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 contracts and certain customers elect to pay contract cancellation fees.

	Average for the quarter ended 2019					Average for the quarter ended 2020
		Mar. 31	June 30	Sept. 30	Dec. 31		Mar. 31	June 30	Sept. 30	Dec. 31
Average rigs under term contract as of July 22, 2020:
U.S.		56	52	49	41		41	32	26	22
Canada		8	5	5	5		5	4	3	3
International		8	8	9	9		8	8	6	6
Total		72	65	63	55		54	44	35	31

The following chart outlines the average number of drilling rigs that we had under contract for 2019 and the average number of rigs we have under contract as of July 22, 2020.

	Average for the year ended
		2019	2020	2021
Average rigs under term contract as of July 22, 2020:
U.S.		49	30	6
Canada		6	4	2
International		9	7	6
Total		64	41	14

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In Canada, term contracted rigs normally generate 250 utilization days per year because of the seasonal nature of well site access. In most regions in the U.S. and internationally, term contracts normally generate 365 utilization days per year.

Drilling Activity

The following chart outlines the average number of drilling rigs that we had working or moving by quarter for the periods noted.

	Average for the quarter ended 2019					2020
		Mar. 31	June 30	Sept. 30	Dec. 31		Mar. 31	June 30
Average Precision active rig count:
U.S.		79	77	72	63		55	30
Canada		48	27	42	43		63	9
International		8	8	9	9		8	8
Total		135	112	123	115		126	47

According to industry sources, as of July 22, 2020, the U.S. active land drilling rig count is down 74% from the same point last year and the Canadian active land drilling rig count is down 73%. To date in 2020, approximately 82% of the U.S. industry’s active rigs and 58% of the Canadian industry’s active rigs were drilling for oil targets, compared with 81% for the U.S. and 58% for Canada at the same time last year.

Capital Spending

Capital spending in 2020 is expected to be $48 million and includes $34 million for sustaining, infrastructure and intangibles and $14 million for upgrade and expansion. We expect that the $48 million will be split $45 million in the Contract Drilling Services segment, $3 million in the Completion and Production Services segment and less than $1 million to the Corporate segment. At June 30, 2020, Precision had capital commitments of $113 million with payments expected through to 2022.

SEGMENTED FINANCIAL RESULTS

Precision’s operations are reported in two segments: Contract Drilling Services, which includes our drilling rig, directional drilling, oilfield supply and manufacturing divisions; and Completion and Production Services, which includes our service rig, rental and camp and catering divisions.

	For the three months ended June 30,							For the six months ended June 30,
(Stated in thousands of Canadian dollars)		2020		2019		% Change			2020		2019		% Change
Revenue:
Contract Drilling Services		184,738		334,475		(44.8	)		531,287		713,739		(25.6	)
Completion and Production Services		5,525		26,145		(78.9	)		39,188		81,964		(52.2	)
Inter-segment eliminations		(504	)	(1,196	)	(57.9	)		(1,232	)	(2,236	)	(44.9	)
		189,759		359,424		(47.2	)		569,243		793,467		(28.3	)
Adjusted EBITDA:(1)
Contract Drilling Services		74,613		93,295		(20.0	)		185,346		211,750		(12.5	)
Completion and Production Services		(1,220	)	2,781		(143.9	)		2,015		13,299		(84.8	)
Corporate and Other		(14,928	)	(15,039	)	(0.7	)		(26,992	)	(36,045	)	(25.1	)
		58,465		81,037		(27.9	)		160,369		189,004		(15.2	)

(1) See “NON-GAAP MEASURES”.

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SEGMENT REVIEW OF CONTRACT DRILLING SERVICES

(Stated in thousands of Canadian dollars,	For the three months ended June 30,							For the six months ended June 30,
except where noted)		2020		2019		% Change			2020		2019		% Change
Revenue		184,738		334,475		(44.8	)		531,287		713,739		(25.6	)
Expenses:
Operating		101,498		231,422		(56.1	)		323,827		477,937		(32.2	)
General and administrative		6,083		9,758		(37.7	)		14,853		21,006		(29.3	)
Restructuring		2,544		-		n/m			7,261		3,046		138.4
Adjusted EBITDA(1)		74,613		93,295		(20.0	)		185,346		211,750		(12.5	)
Depreciation		74,062		75,155		(1.5	)		149,786		153,154		(2.2	)
Gain on asset disposals		(3,091	)	(4,271	)	(27.6	)		(5,933	)	(39,272	)	(84.9	)
Impairment reversal		-		-		n/m			-		(5,810	)	(100.0	)
Operating earnings(1)		3,642		22,411		(83.7	)		41,493		103,678		(60.0	)
Operating earnings(1) as a percentage of revenue		2.0	%	6.7	%				7.8	%	14.5	%

(1)	See “NON-GAAP MEASURES”.
n/m	Not meaningful

United States onshore drilling statistics:(1)	2020			2019
		Precision	Industry(2)		Precision	Industry(2)
Average number of active land rigs for quarters ended:
March 31		55	764		79	1,023
June 30		30	378		77	967
Year to date average		42	571		78	995

(1) United States lower 48 operations only.

(2) Baker Hughes rig counts.

Canadian onshore drilling statistics:(1)	2020			2019
		Precision	Industry(2)		Precision	Industry(2)
Average number of active land rigs for quarters ended:
March 31		63	196		48	183
June 30		9	25		27	82
Year to date average		36	110		37	132

(1) Canadian operations only.

(2) Baker Hughes rig counts.

Revenue from Contract Drilling Services was $185 million this quarter, or 45% lower than the second quarter of 2019, while Adjusted EBITDA (see “NON-GAAP MEASURES”) decreased by 20% to $75 million. The decrease in revenue was primarily due to lower activity across all geographic operating locations.

In the U.S., we had second quarter revenue from contract cancellation fees, idle but contracted rigs and turnkey projects of US$8 million, US$8 million and US$3 million, respectively, as compared with nil, US$1 million and nil, respectively in 2019. During the quarter, we did not recognize any contract shortfall revenue in Canada compared with $1 million in 2019.

In the second quarter of 2020, industry drilling activity declined in response to the COVID-19 economic slowdown. Accordingly, our U.S. drilling rig utilization days (drilling days plus move days) were 2,743, 61% lower than 2019 while our Canadian utilization days were 834, 65% lower than 2019. Drilling rig utilization days in our international business were 687 in the second quarter of 2020, 6% lower than 2019 due to the expiration of drilling contracts late in the quarter.

Drilling rig revenue per utilization day for the quarter in the U.S. was up 25% compared with the prior year as we realized higher revenues from contract cancellation fees, idle but contracted rig revenue and turnkey projects. Compared with the same quarter in 2019, drilling rig revenue per utilization day in Canada increased 6% primarily due to our rig mix partially offset by lower contract shortfall revenue. International revenue per utilization day increased 6% from the prior year comparative period, primarily due to rate increases from the commencement, renewal and extension of drilling contracts.

In the U.S., 81% of utilization days were generated from rigs under term contract as compared with 66% in the second quarter of 2019. In Canada, 25% of our utilization days in the quarter were generated from rigs under term contract, compared with 12% in the second quarter of 2019.

Operating costs were 55% of revenue for the quarter, as compared to 69% in the prior year period. In the U.S., operating costs for the quarter on a per day basis were lower than the prior year period primarily due to lower repairs and maintenance partially offset by increased turnkey activity. On a per utilization day basis, operating costs in Canada were lower than the 2019 quarter due to the impact of the Canadian wage subsidy programs partially offset by fixed operating overheads being spread over fewer utilization days. During the quarter, we recognized Canadian wage subsidies of $5 million of which $4 million and $1 million were respectively presented as reductions to our operating and general and administrative costs.

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We incurred restructuring charges of $3 million in the second quarter of 2020 as compared to nil in 2019.

Depreciation expense in the quarter was 2% lower than the second quarter of 2019 primarily because of a lower capital asset base as assets become fully depreciated, decommissioned or disposed of.

In the second quarter of 2020, through the completion of normal course business operations, we sold used assets recognizing a gain on disposal of $3 million, compared with $4 million in 2019.

SEGMENT REVIEW OF COMPLETION AND PRODUCTION SERVICES

(Stated in thousands of Canadian dollars,	For the three months ended June 30,							For the six months ended June 30,
except where noted)		2020		2019		% Change			2020		2019
Revenue		5,525		26,145		(78.9	)		39,188		81,964		(52.2	)
Expenses:
Operating		5,558		21,823		(74.5	)		32,184		64,956		(50.5	)
General and administrative		915		1,541		(40.6	)		2,394		3,252		(26.4	)
Restructuring		272		-		n/m			2,595		457		467.8
Adjusted EBITDA(1)		(1,220	)	2,781		(143.9	)		2,015		13,299		(84.8	)
Depreciation		4,119		4,341		(5.1	)		8,402		9,290		(9.6	)
Gain on asset disposals		(262	)	(3,546	)	(92.6	)		(1,001	)	(3,602	)	(72.2	)
Operating earnings (loss)(1)		(5,077	)	1,986		(355.6	)		(5,386	)	7,611		(170.8	)
Operating earnings (loss)(1) as a percentage of revenue		(91.9	)%	7.6	%				(13.7	)%	9.3	%
Well servicing statistics:
Number of service rigs (end of period)		123		123		-			123		123		-
Service rig operating hours		4,702		29,540		(84.1	)		39,067		72,438		(46.1	)
Service rig operating hour utilization		4	%	26	%				17	%	31	%

(1)	See “NON-GAAP MEASURES”.
n/m	Not meaningful

Completion and Production Services revenue decreased 79% compared with the second quarter of 2019 due to lower activity in each of our service lines. Our service rig operating hours in the quarter were down 84% from the second quarter of 2019, consistent with lower industry activity. Approximately 86% of our second quarter Canadian service rig activity was oil related.

During the quarter, Completion and Production Services generated 26% of its revenue from U.S. operations compared with 15% in the comparative period.

In the second quarter of 2020, operating and general and administrative costs as a percentage of revenue were higher as compared with the 2019 second quarter. The higher percentages in the current year quarter were primarily due to fixed overhead costs spread over a lower revenue base.

During the quarter, we recognized Canadian wage subsidies of $2 million which were presented as reductions to our operating and general and administrative costs.

Adjusted EBITDA (see “NON-GAAP MEASURES”) was lower than the second quarter of 2019 primarily due to lower segment activity.

Depreciation expense in the quarter was 5% lower than the comparative period, primarily because of a lower capital asset base as assets become fully depreciated and disposed of.

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 (see “NON-GAAP MEASURES”) of $15 million, slightly lower than the second quarter of 2019 primarily due to Canadian wage subsidies offset by higher share-based compensation expense and increased restructuring charges. During the second quarter of 2020, we incurred $3 million of restructuring charges and recognized $2 million of Canadian wage subsidies.

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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 2019 Annual Report.

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

	For the three months ended June 30,			For the six months ended June 30,
(Stated in thousands of Canadian dollars)		2020	2019		2020		2019
Cash settled share-based incentive plans		5,372	515		(1,021	)	6,319
Equity settled share-based incentive plans:
Executive PSU		2,959	3,024		5,694		5,396
Stock option plan		168	506		554		1,237
Total share-based incentive compensation plan expense		8,499	4,045		5,227		12,952
Allocated:
Operating		1,987	798		1,014		3,227
General and Administrative		6,512	3,247		4,213		9,725
		8,499	4,045		5,227		12,952

Cash settled shared-based compensation expense increased by $5 million in the current quarter primarily due to our increasing share price. Our total equity settled share-based compensation expense for the second quarter of 2020 was $3 million, slightly lower than 2019 due to vesting of stock options granted in prior years.

Finance Charges

Net finance charges were $28 million, a decrease of $2 million compared with the second quarter of 2019, primarily due to reduced interest expense related to retired debt, offset by the impact of the weakening of the Canadian dollar on our U.S. dollar denominated interest.

Interest charges on our U.S. denominated long-term debt in the second quarter of 2020 were US$19 million ($26 million) as compared with US$21 million ($28 million) in 2019.

Income Tax

Income tax expense for the quarter was $4 million compared with a recovery of $6 million in the same quarter in 2019. The higher income tax expense in the second quarter of 2020 was the result of not recognizing the benefit of $14 million on Canadian deferred tax assets.

LIQUIDITY AND CAPITAL RESOURCES

The oilfield services business is inherently cyclical in nature. To manage this, we focus on maintaining a strong balance sheet so we have the financial flexibility we need to continue 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 by and highly responsive to activity levels with additional cost savings leverage provided through our internal manufacturing and supply divisions. Term contracts on expansion capital for new-build and upgrade rig programs provide more certainty of future revenues and return on our capital investments.

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Liquidity

Amount	Availability	Used for	Maturity
Senior credit facility (secured)
US$500 million (extendible, revolving term credit facility with US$300 million accordion feature)	US$4 million drawn and US$32 million in outstanding letters of credit	General corporate purposes	November 21, 2023
Operating facilities (secured)
$40 million	Undrawn, except $8 million in outstanding letters of credit	Letters of credit and general corporate purposes
US$15 million	Undrawn	Short term working capital requirements
Demand letter of credit facility (secured)
US$30 million	Undrawn, except US$2 million in outstanding letters of credit	Letters of credit
Unsecured senior notes (unsecured)
US$63 million – 6.5%	Fully drawn	Capital expenditures and general corporate purposes	December 15, 2021
US$344 million – 7.75%	Fully drawn	Debt redemption and repurchases	December 15, 2023
US$303 million – 5.25%	Fully drawn	Capital expenditures and general corporate purposes	November 15, 2024
US$368 million – 7.125%	Fully drawn	Debt redemption and repurchases	January 15, 2026

As at June 30, 2020, we had US$1,080 million ($1,467 million) outstanding under our Senior Credit Facility and unsecured senior notes as compared with US$1,113 million ($1,445 million) at December 31, 2019. During the first half of 2020, we redeemed US$25 million principal amount and repurchased and cancelled US$3 million of our 6.50% unsecured senior notes due 2021, repurchased and cancelled US$5 million of our 5.25% unsecured senior notes due 2024, US$2 million of our 7.125% unsecured senior notes due 2026 and US$1 million of our 7.75% unsecured senior notes due 2023 and we drew US$4 million on our Senior Credit Facility. The weakening of the Canadian dollar resulted in $64 million of additional stated debt such that at June 30, 2020, we had $1,462 million of outstanding unsecured senior notes and $16 million in unamortized debt issue costs.

The current blended cash interest cost of our debt is approximately 6.7%.

Covenants

Following is a listing of our applicable Senior Credit Facility financial covenants and the calculations as at June 30, 2020:

	Covenant		At June 30, 2020
Senior Credit Facility
Consolidated senior debt to consolidated covenant EBITDA(1)		<2.50		(0.23	)
Consolidated covenant EBITDA to consolidated interest expense(1)		>2.50		3.39

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

At June 30, 2020, we were in compliance with the covenants of our Senior Credit Facility.

Senior Credit Facility

The Senior Credit Facility requires we comply with certain covenants including a leverage ratio of consolidated senior debt to consolidated Covenant EBITDA (see “NON-GAAP MEASURES”) of less than 2.5:1. For purposes of calculating the leverage ratio consolidated senior debt only includes secured indebtedness.

On April 9, 2020 we agreed with the lenders of our Senior Credit Facility to reduce the consolidated Covenant EBITDA to consolidated interest expense coverage ratio for the most recent four consecutive quarters greater than or equal to 2.5:1 to 2.0:1 for the period ending September 30, 2020, 1.75:1 for the period ending December 31, 2020, 1.25:1 for the periods ending March 31, June 30 and September 30, 2021, 1.75:1, for the period ending December 31, 2021, 2.0:1 for the period ending March 31, 2022 and 2.5:1 for periods ending thereafter.

During the covenant relief period, Precision’s distributions in the form of dividends, distributions and share repurchases are restricted to a maximum of US$15 million in 2020 and US$25 million in each of 2021 and 2022, subject to a pro forma senior net leverage ratio (as defined in the credit agreement) of less than or equal to 1.75:1.

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In addition, during 2021, the North American and acceptable secured foreign assets must directly account for at least 65% of consolidated Covenant EBITDA calculated quarterly on a rolling twelve-month basis, increasing to 70% thereafter. Precision also has the option to voluntarily terminate the covenant relief period prior to its March 31, 2022 end date.

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.

In addition, the Senior Credit Facility contains certain covenants that place restrictions on our ability to incur or assume additional indebtedness; dispose of assets; change our primary business; incur liens on assets; engage in transactions with affiliates; enter into mergers, consolidations or amalgamations; and enter into speculative swap agreements.

Unsecured Senior Notes

The unsecured senior notes require that we comply with 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 senior notes restrict our ability to incur additional indebtedness.

The unsecured senior notes contain a restricted payment covenant that limits our ability to make payments in the nature of dividends, distributions and for share repurchases from shareholders. This restricted payment basket grows from a starting point of October 1, 2010 for the 2021 and 2024 senior notes, from October 1, 2016 for the 2023 senior notes and October 1, 2017 for the 2026 senior notes by, among other things, 50% of consolidated cumulative net earnings and decreases by 100% of consolidated cumulative net losses, as defined in the senior note agreements, and payments made to shareholders. The governing net restricted payments basket is currently negative, limiting our ability to declare and make dividend payments until such time as the restricted payments baskets become positive.

In addition, the unsecured senior notes contain certain covenants that limit our ability, and the ability of certain subsidiaries, to incur additional indebtedness and issue preferred shares; create liens; create or permit to exist restrictions on our ability or certain subsidiaries to make certain payments and distributions; engage in amalgamations, mergers or consolidations; make certain dispositions and engage in transactions with affiliates.

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

Impact of foreign exchange rates

The devaluation of the Canadian dollar during the first half of 2020 resulted in higher translated U.S. denominated revenue and costs. On average, for the three and six months ended June 30, 2020, the Canadian dollar weakened by 4% and 2%, respectively, from the comparable 2019 periods. The following table summarizes the average and closing Canada-U.S. foreign exchanges rates.

	For the three months ended June 30,			For the six months ended June 30,			At December 31,
		2020	2019		2020	2019		2019
Canada-U.S. foreign exchange rates
Average		1.39	1.34		1.36	1.33		—
Closing		1.36	1.31		1.36	1.31		1.30

Hedge of investments in foreign operations

We utilize foreign currency long-term debt to hedge our exposure to changes in the carrying values 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 (loss).

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QUARTERLY FINANCIAL SUMMARY

(Stated in thousands of Canadian dollars, except per share amounts)	2019					2020
Quarters ended		September 30		December 31			March 31		June 30
Revenue		375,552		372,301			379,484		189,759
Adjusted EBITDA(1)		97,895		105,006			101,904		58,465
Net loss		(3,534	)	(1,061	)		(5,277	)	(48,867	)
Net loss per basic share		(0.01	)	(0.00	)		(0.02	)	(0.18	)
Net loss per diluted share		(0.01	)	(0.00	)		(0.02	)	(0.18	)
Funds provided by operations(1)		79,930		75,779			81,317		26,639
Cash provided by operations		66,556		74,981			74,953		104,478

(Stated in thousands of Canadian dollars, except per share amounts)	2018					2019
Quarters ended		September 30		December 31			March 31	June 30
Revenue		382,457		427,010			434,043	359,424
Adjusted EBITDA(1)		80,988		134,492			107,967	81,037
Net earnings (loss)		(30,648	)	(198,328	)		25,014	(13,801	)
Net earnings (loss) per basic		(0.10	)	(0.68	)		0.09	(0.05	)
Net earnings (loss) per diluted share		(0.10	)	(0.68	)		0.08	(0.05	)
Funds provided by operations(1)		64,368		92,595			95,993	40,950
Cash provided by operations		31,961		93,489			40,587	106,035

(1) See “NON-GAAP MEASURES”.

CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES

Because of the nature of our business, we are required to make judgments and estimates in preparing our Condensed Consolidated Interim Financial Statements that could materially affect the amounts recognized. Our judgments and estimates are based on our past experiences and assumptions we believe are reasonable in the circumstances. The critical judgments and estimates used in preparing the Condensed Consolidated Interim Financial Statements are described in our 2019 Annual Report.

The COVID-19 global pandemic and commodity price volatility has created a challenging economic climate that may have significant adverse impacts on Precision. As the situation remains dynamic and the ultimate duration and magnitude of the impact on the economy and the financial effect on Precision is not known at this time. Our estimates and judgements made in the preparation of our Condensed Consolidated Interim Financial Statements are increasingly difficult and subject to a higher degree of measurement uncertainty during this volatile period. For additional discussion on the potential risks and impacts of the global economic downturn, see section “IMPACT OF COVID-19” earlier in this report.

EVALUATION OF CONTROLS AND PROCEDURES

Based on their evaluation as at June 30, 2020, Precision’s Chief Executive Officer and Chief Financial Officer concluded that the Corporation’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the United States Securities Exchange Act of 1934, as amended (the Exchange Act)), are effective to ensure that information required to be disclosed by the Corporation in reports that are filed or submitted to Canadian and U.S. securities authorities is recorded, processed, summarized and reported within the time periods specified in Canadian and U.S. securities laws. In addition, as at June 30, 2020, 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, 2020 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.

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NON-GAAP MEASURES

In this report we reference non-GAAP (Generally Accepted Accounting Principles) measures. These terms do not have standardized meanings prescribed under International Financial Reporting Standards (IFRS) and may not be comparable to similar measures used by other companies.

Adjusted EBITDA

We believe that Adjusted EBITDA (earnings before income taxes, gain on repurchase of unsecured senior notes, finance charges, foreign exchange, impairment reversal, gain on assets disposals and depreciation and amortization), as reported in the Interim Consolidated Statement of Net Earnings (Loss), 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.

Covenant EBITDA

Covenant EBITDA, as defined in our Senior Credit Facility agreement, is used in determining the Corporation’s compliance with its covenants. Covenant EBITDA differs from Adjusted EBITDA by the exclusion of bad debt expense, restructuring costs, certain foreign exchange amounts and the deduction of cash lease payments incurred after December 31, 2018.

Operating Earnings (Loss)

We believe that operating earnings (loss) is a useful measure because it provides an indication of the results of our principal business activities before consideration of how those activities are financed and the impact of foreign exchange and taxation. Operating earnings is calculated as follows:

	For the three months ended June 30,					For the six months ended June 30,
(Stated in thousands of Canadian dollars)		2020		2019			2020		2019
Revenue		189,759		359,424			569,243		793,467
Expenses:
Operating		106,552		252,049			354,779		540,657
General and administrative		18,449		26,338			37,984		57,368
Restructuring		6,293		—			16,111		6,438
Depreciation and amortization		81,124		83,327			164,038		170,080
Gain on asset disposals		(3,470	)	(7,859	)		(7,079	)	(42,909	)
Impairment reversal		—		—			—		(5,810	)
Operating earnings (loss)		(19,189	)	5,569			3,410		67,643
Foreign exchange		(928	)	(3,763	)		1,763		(5,886	)
Finance charges		28,083		30,385			55,663		61,688
Gain on repurchase of unsecured notes		(1,121	)	(1,085	)		(1,971	)	(1,398	)
Earnings (loss) before income taxes		(45,223	)	(19,968	)		(52,045	)	13,239

Funds Provided By (Used In) Operations

We believe that funds provided by (used in) operations, as reported in the Interim Consolidated Statements of Cash Flow, is a useful measure because it provides an indication of the funds our principal business activities generate prior to consideration of working capital, which is primarily made up of highly liquid balances.

Working Capital

We define working capital as current assets less current liabilities as reported on the Interim Consolidated Statement of Financial Position.

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CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION AND STATEMENTS

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

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

· our strategic priorities for 2020;

· our capital expenditure and future debt reduction plans for 2020;

· anticipated activity levels in 2020 and our scheduled infrastructure projects;

· anticipated demand for Tier 1 rigs;

· the average number of term contracts in place for 2020 and 2021;

· anticipated cash outflow savings and liquidity; and

· potential commercial opportunities and rig contract renewals.

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:

· the fluctuation in oil prices may pressure customers into reducing or limiting their drilling budgets;

· the success of our response to the COVID-19 global pandemic;

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

· customer focus on safety performance;

· existing term contracts are neither renewed nor terminated prematurely;

· our liquidity position will ensure we can persevere through a prolonged market downturn and allow us to promptly react and capture a market recovery;

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

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

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

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

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

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

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

· the success of our response to the COVID-19 global pandemic;

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

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

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

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

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

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

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

· general economic, market or business conditions;

· the availability of qualified personnel and management;

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

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

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

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

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

Readers are cautioned that the forgoing list of risk factors is not exhaustive. Additional information on these and other factors that could affect our business, operations or financial results are included in reports on file with applicable securities regulatory authorities, including but not limited to Precision’s Annual Information Form for the year ended December 31, 2019, which may be accessed on Precision’s SEDAR profile at www.sedar.com 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.

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SHAREHOLDER INFORMATION   STOCK EXCHANGE LISTINGS   Shares of Precision Drilling Corporation are listed on the Toronto Stock Exchange under the trading symbol PD and on the New York Stock Exchange under the trading symbol PDS.   TRANSFER AGENT AND REGISTRAR Computershare Trust Company of Canada Calgary, Alberta   TRANSFER POINT Computershare Trust Company NA Canton, Massachusetts   Q2 2020 TRADING PROFILE Toronto (TSX: PD) High: $1.33 Low: $0.40 Close: $1.03 Volume Traded: 102,451,006   New York (NYSE: PDS) High: US$1.01 Low: US$0.28 Close: US$0.74 Volume Traded: 83,883,413   ACCOUNT QUESTIONS Precision’s Transfer Agent can help you with a variety of shareholder related services, including: •  change of address •  lost share certificates •  transfer of shares to another person •  estate settlement   Computershare Trust Company of Canada 100 University Avenue 9th Floor, North Tower Toronto, Ontario M5J 2Y1 Canada   1-800-564-6253 (toll free in Canada and the United States) 1-514-982-7555 (international direct dialing) Email: service@computershare.com   ONLINE INFORMATION To receive news releases by email, or to view this interim report online, please visit Precision’s website at www.precisiondrilling.com and refer to the Investor Relations section. Additional information relating to Precision, including the Annual Information Form, Annual Report and Management Information Circular has been filed with SEDAR and is available at www.sedar.com and on the EDGAR website www.sec.gov CORPORATE INFORMATION   DIRECTORS   Michael R. Culbert William T. Donovan Brian J. Gibson Steven W. Krablin Susan M. MacKenzie Kevin O. Meyers Kevin A. Neveu David W. Williams   OFFICERS   Kevin A. Neveu President and Chief Executive Officer   Veronica H. Foley Senior Vice President, General Counsel and Chief Compliance Officer   Carey T. Ford Senior Vice President and Chief Financial Officer   Shuja U. Goraya Chief Technology Officer   Darren J. Ruhr Chief Administrative Officer   Gene C. Stahl Chief Marketing Officer   AUDITORS KPMG LLP Calgary, Alberta   HEAD OFFICE Suite 800, 525 8th Avenue SW Calgary, Alberta, Canada T2P 1G1 Telephone: 403-716-4500 Facsimile: 403-264-0251 Email: info@precisiondrilling.com www.precisiondrilling.com  

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