Page 1

F Precision DRILLING PRECISION DRILLING CORPORATION First Quarter Report for the three months ended March 31 , 2021 and 2020 MANAGEMENT'S DISCUSSION AND ANALYSIS 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 2021 first quarter financial results : • • • • Revenue of $ 236 million was a decrease of 38 % compared with the first quarter of 2020 . Net loss of $ 36 million or $ 2.70 per share compared to net loss of $ 5 million or $ 0.38 per share in 2020 . Earnings before income taxes , gain on repurchase of unsecured senior notes , finance charges , foreign exchange , gain on asset disposals and depreciation and amortization ( Adjusted EBITDA , see " NON - GAAP MEASURES " ) of $ 55 million was 47 % lower than the first quarter of 2020 . Generated cash and funds provided by operations ( see " NON - GAAP MEASURES " ) of $ 15 million and $ 43 million , respectively . • First quarter ending cash balance was $ 78 million . • Reduced our Senior Credit Facility balance by $ 49 million and established a $ 20 million Canadian Real Estate Credit Facility . • First quarter capital expenditures were $ 8 million . • • Repurchased and cancelled 155,168 common shares for $ 4 million . Recognized the Canadian government's Canada Emergency Wage Subsidy ( CEWS ) program assistance of $ 9 million . • Increased U.S. rig activation costs contributed to higher average operating costs as a result of accelerated rig deployments during the quarter . • Incurred $ 11 million of share - based compensation expense due to our increased share price and a $ 2 million charge relating to the reclassification of certain share - based compensation plans . 1