PDS 6-K 2026 - Equibles

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 2026

Commission File Number: 001-14534

Precision Drilling Corporation

(Exact name of registrant as specified in its charter)

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

(Address of principal executive offices)

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

Form 20-F Form 40-F X

SIGNATURE

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

Dated: July 28, 2026	PRECISION DRILLING CORPORATION
	By: /s/Dustin D Honing
	Name: Dustin D. Honing
	Title: Chief Financial Officer
Exhibit	DESCRIPTION
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31.1	Certification of Chief Executive Officer, Carey Ford, regarding the “Certification of InterimFilings” pursuant to Form 52-109F2.
31.2	Certification of Chief Financial Officer, Dustin Honing, regarding the “Certification of InterimFilings” pursuant to Form 52-109F2.
99.1	Management’s Discussion and Analysis for the period ended June 30, 2026.
99.2	Consolidated Financial Statements for the period ended June 30, 2026.

Exhibit 31.1

FORM 52-109F2

CERTIFICATION OF INTERIM FILINGS

I, Carey T. Ford, 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<br>"interim filings") of Precision Drilling Corporation (the "issuer"), for the interim period ended June 30, 2026.
2.	No misrepresentations: Based on my knowledge, having exercised reasonable diligence, the<br>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<br>is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered<br>by the interim filings.
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3.	Fair presentation: Based on my knowledge, having exercised reasonable diligence, the interim<br>financial report together with the other financial information included in the interim filings fairly present in all material respects<br>the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim<br>filings.
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4.	Responsibility: The issuer’s other certifying officer and I are responsible for establishing<br>and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are<br>defined in National Instrument 52-109 Certification of Disclosure in Issuers' Annual and Interim Filings, for the issuer.
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5.	Design: Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer's<br>other certifying officer and I have, as at the end of the period covered by the interim filings
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(a)	designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance<br>that
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(i)	material information relating to the issuer is made known to us by others, particularly during the period<br>in which the interim filings are being prepared; and
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(ii)	information required to be disclosed by the issuer in its annual filings, interim filings or other reports<br>filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified<br>in securities legislation; and
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(b)	designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding<br>the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer’s<br>GAAP.
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5.1	Control framework: The control framework the issuer's other certifying officer and I used<br>to design the issuer's ICFR is the Committee of Sponsoring Organizations of the Treadway Commission (COSO) (1992) and the Control Objectives<br>for Information and Related Technologies (COBIT).
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5.2	ICFR – material weakness relating to design: N/A.
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5.3	Limitation on scope of design: N/A.
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6.	Reporting changes in ICFR: The issuer has disclosed in its interim MD&A any change in<br>the issuer’s ICFR that occurred during the period beginning on March 31, 2026 and ended on June 30, 2026 that has<br>materially affected, or is reasonably likely to materially affect, the issuer’s ICFR.
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Date: July 28, 2026

By:	/s/Carey T Ford
	Name: Carey T. Ford<br><br> <br>Title: President and Chief Executive Officer

Exhibit 31.2

FORM 52-109F2

CERTIFICATION OF INTERIM FILINGS

I, Dustin D. Honing, 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<br>"interim filings") of Precision Drilling Corporation (the "issuer"), for the interim period ended June 30, 2026.
2.	No misrepresentations: Based on my knowledge, having exercised reasonable diligence, the<br>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<br>is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered<br>by the interim filings.
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3.	Fair presentation: Based on my knowledge, having exercised reasonable diligence, the interim<br>financial report together with the other financial information included in the interim filings fairly present in all material respects<br>the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim<br>filings.
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4.	Responsibility: The issuer’s other certifying officer and I are responsible for establishing<br>and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are<br>defined in National Instrument 52-109 Certification of Disclosure in Issuers' Annual and Interim Filings, for the issuer.
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5.	Design: Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer's<br>other certifying officer and I have, as at the end of the period covered by the interim filings
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(a)	designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance<br>that
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(i)	material information relating to the issuer is made known to us by others, particularly during the period<br>in which the interim filings are being prepared; and
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(ii)	information required to be disclosed by the issuer in its annual filings, interim filings or other reports<br>filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified<br>in securities legislation; and
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(b)	designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding<br>the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer’s<br>GAAP.
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5.1	Control framework: The control framework the issuer's other certifying officer and I used<br>to design the issuer's ICFR is the Committee of Sponsoring Organizations of the Treadway Commission (COSO) (1992) and the Control Objectives<br>for Information and Related Technologies (COBIT).
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5.2	ICFR – material weakness relating to design: N/A.
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5.3	Limitation on scope of design: N/A.
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6.	Reporting changes in ICFR: The issuer has disclosed in its interim MD&A any change in<br>the issuer’s ICFR that occurred during the period beginning on March 31, 2026 and ended on June 30, 2026 that has<br>materially affected, or is reasonably likely to materially affect, the issuer’s ICFR.
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Date: July 28, 2026

By:	/s/Dustin D Honing
	Name: Dustin D. Honing<br><br> <br>Title: Chief Financial Officer

Exhibit 99.1

PRECISION DRILLING CORPORATION

Second Quarter Report for the three and six months ended June 30, 2026 and 2025

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 risksto which they are subject, see the “Cautionary Statement Regarding Forward-Looking Information and Statements” later in thisreport. This report contains references to certain Financial Measures and Ratios, including Adjusted EBITDA (earnings before income taxes,(gain) loss on investments and other assets, finance charges, foreign exchange, gain on asset disposals and depreciation and amortization),Net Capital Spending, Working Capital and Total Long-Term Financial Liabilities. These terms do not have standardized meanings prescribedunder International Financial Reporting Standards (IFRS) Accounting Standards and may not be comparable to similar measures usedby other companies. See “Financial Measures and Ratios” later in this report.

Precision Drilling Corporation ("Precision" or the "Company")(TSX:PD; NYSE:PDS) announces its 2026 second quarter results, highlighted by robust heavy oil drilling and well service activity in Canadaand improving rig utilization in the U.S.

Financial Highlights

·	Revenue<br> increased 11% to $453 million, compared with $407 million in the second quarter of 2025,<br> supported by stronger activity in Canada and the U.S., which more than offset lower international<br> results and reduced Canadian upfront capital payments.
·	Adjusted<br> EBITDA^(1)^ was $97 million, down 10% from $108 million in 2025, primarily due to<br> higher U.S. rig reactivation costs and lower international margins related to geopolitical<br> tensions and a change in rig mix. Results in 2026 also included $3 million of one-time restructuring<br> charges, plus a $2 million share-based compensation recovery. In comparison, share-based<br> compensation was a $4 million expense in 2025.
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·	Net<br> loss attributable to shareholders in the second quarter was $1 million compared with net<br> earnings of $16 million in 2025. Our net loss in 2026 was primarily due to increased depreciation<br> expense of $11 million from a previously communicated change in useful life estimates.
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·	Cash<br> provided by operations during the quarter was $146 million, allowing the Company to reduce<br> debt by $50 million and repurchase $12 million of common shares.
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·	Capital<br> expenditures were $76 million compared to $53 million in the second quarter of 2025. Year-to-date,<br> we have invested $141 million in our equipment and continue to expect capital expenditures<br> of $265 million in 2026.
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Operational Highlights

·	Canada<br> averaged 61 active rigs, up 22% compared to 50 active rigs in the second quarter of 2025,<br> outpacing Canadian industry activity, which increased 16%^(2)^.
·	Canadian<br> revenue per utilization day decreased to $35,448 from $37,725 in 2025, primarily due to lower<br> upfront capital payments of $3 million in 2026 compared to $7 million in same period last<br> year and a higher Super Single rig mix, as robust heavy oil activity increased utilization<br> of these rigs 31% year over year.
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·	U.S.<br> averaged 35 active rigs in the second quarter of 2026 versus 33 in 2025, outperforming U.S.<br> industry activity, which declined 3%^(2)^.
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·	U.S.<br> revenue per utilization day increased to US$32,802 from US$31,113 in the same period last<br> year, driven by higher day rates on new contracts and increased technology revenue.
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·	Internationally,<br> we had seven active rigs during the quarter, with three in Saudi Arabia and four in Kuwait,<br> compared with two and five rigs, respectively, in the second quarter of 2025. The resulting<br> change in rig mix lowered revenue per utilization day to US$50,524 from US$53,129 in the<br> same period last year.
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·	Internationally,<br> we secured an additional five-year drilling rig contract in Kuwait for an existing rig, increasing<br> our active rig count to eight by mid-2027 following planned recertifications and upgrades.
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·	Canadian<br> well servicing rig operating hours increased 25% compared to the same quarter in 2025, primarily<br> due to stronger customer demand driven by higher oil prices, resulting in a 38% increase<br> in Adjusted EBITDA.
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(1)	See "FINANCIAL MEASURES AND RATIOS."
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(2)	See "SEGMENT REVIEW OF CONTRACT DRILLING<br> SERVICES."
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SELECT FINANCIAL AND OPERATING INFORMATION

Financial Highlights

	For the three months ended June 30,									For the six months ended June 30,
(Stated in thousands of Canadian dollars, except<br> per share amounts. Weighted average shares outstanding are stated in thousands.)	2026			2025			% Change			2026			2025			% Change
Revenue		452,800			406,615			11.4			978,851			902,946			8.4
Adjusted EBITDA^(1)^		97,055			108,100			(10.2	)		221,002			245,597			(10.0	)
Net earnings (loss)		(893	)		16,487			(105.4	)		16,952			51,434			(67.0	)
Net earnings (loss) attributable to shareholders		(1,195	)		16,267			(107.3	)		16,181			50,778			(68.1	)
Cash provided by operations		145,569			147,495			(1.3	)		208,723			210,914			(1.0	)
Cash used in investing activities		54,761			36,049			51.9			129,463			93,251			38.8
Capital spending by spend category^(1)^
Expansion and upgrade		30,267			26,757			13.1			60,541			46,303			30.7
Maintenance and infrastructure		46,097			26,016			77.2			80,823			66,435			21.7
Proceeds on sale		(12,013	)		(11,829	)		1.6			(14,300	)		(15,594	)		(8.3	)
Net capital spending^(1)^		64,351			40,944			57.2			127,064			97,144			30.8
Net earnings (loss) attributable to shareholders per share:
Basic		(0.09	)		1.21			(107.4	)		1.25			3.75			(66.7	)
Diluted		(0.52	)		1.07			(148.6	)		1.25			3.28			(61.9	)
Weighted average shares outstanding:
Basic		12,927			13,401			(3.5	)		12,929			13,541			(4.5	)
Diluted		13,413			13,987			(4.1	)		12,938			14,158			(8.6	)
(1)	See "FINANCIAL MEASURES AND RATIOS."
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Operating Highlights

	For the three months ended June 30,				For the six months ended June 30,
	2026	2025	% Change		2026	2025	% Change
Contract drilling rig fleet	184	215	(14.4	)	184	215	(14.4	)
Drilling rig utilization days:
Canada	5,510	4,580	20.3		12,626	11,260	12.1
U.S.	3,216	3,033	6.0		6,548	5,724	14.4
International	637	680	(6.3	)	1,248	1,400	(10.9	)
Revenue per utilization day:
Canada (Cdn)	35,448	37,725	(6.0	)	35,208	36,465	(3.4	)
U.S. (US)	32,802	31,113	5.4		33,267	32,074	3.7
International (US)	50,524	53,129	(4.9	)	51,048	51,221	(0.3	)
Operating costs per utilization day:
Canada (Cdn)	21,593	22,419	(3.7	)	21,112	21,471	(1.7	)
U.S. (US)	26,590	22,087	20.4		25,488	22,784	11.9
Service rig fleet(1)	146	135	8.1		145	135	7.4
Service rig operating<br> hours(1)	54,654	43,779	24.8		122,873	109,414	12.3

All values are in US Dollars.

(1)	The service rig fleet and service rig operating hours exclude our U.S.<br> operations that we wound down in the second quarter of 2025.

Drilling Activity

	Average<br> for the quarter ended 2025								Average<br> for the quarter ended 2026
	Mar. 31		June 30		Sept. 30		Dec. 31		Mar. 31		June 30
Average Precision active rig count^(1)^:
Canada		74		50		63		66		79		61
U.S.		30		33		36		37		37		35
International		8		7		7		7		7		7
Total		112		90		106		110		123		103
(1)	Average number of drilling rigs working or<br> moving.
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Financial Position

(Stated in thousands of Canadian dollars, except ratios)	June 30, 2026
Working capital^(1)^		146,912	186,815
Cash		66,292	85,781
Long-term debt		626,327	679,291
Total long-term financial liabilities^(1)^		692,988	746,944
Total assets		2,726,689	2,726,690
Long-term debt to long-term debt plus equity ratio^(1)^		0.28	0.30
(1)	See "FINANCIAL MEASURES AND RATIOS."
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Summary for the three months ended June 30, 2026:

·	Revenue<br> in the second quarter was $453 million, up $46 million from 2025. Canadian revenue increased<br> by $36 million, as higher oil prices supported increased demand for drilling and well servicing<br> activity, partially offset by lower upfront capital payments of $3 million compared with<br> $7 million in 2025. U.S. revenue increased by $15 million, driven by higher rig utilization<br> and average day rates.
·	Adjusted<br> EBITDA decreased 10% to $97 million from $108 million in the second quarter of 2025, primarily<br> due to higher U.S. rig reactivation costs and lower international margins resulting from<br> geopolitical tensions and a change in rig mix. Adjusted EBITDA also included $3 million of<br> international restructuring costs to better align our organizational structure, partially<br> offset by a $2 million share-based compensation recovery. For additional information on share-based<br> compensation, please refer to "Other Items" later in this report.
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·	Net<br> loss attributable to shareholders was $1 million or $0.09 per share compared to net earnings<br> of $16 million or $1.21 per share for the same period last year. The decrease was due to<br> increased depreciation expense of $11 million from the change in useful life estimates. For<br> additional information on depreciation, please refer to "Other Items" later in<br> this report.
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·	Cash<br> provided by operations was $146 million in the second quarter of 2026. During the quarter,<br> the Company repurchased 99,416 shares for $12 million and reduced long-term debt by $50 million.<br> Precision ended the quarter with $66 million of cash and more than $500 million in available<br> liquidity.
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·	In<br> Canada, our operating margin^(1)^ was $13,855 compared to $15,306 in the same period<br> last year, primarily due to lower upfront capital payments and a higher Super Single<br> rig mix, as robust heavy oil activity increased utilization of these rigs 31% year over year.
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·	In the U.S., our operating margin was US$6,212, down from US$9,026<br>in 2025. Although revenue increased during the quarter, margins were impacted by higher rig reactivations. Reactivation costs averaged<br>US$2,387 per utilization day as we reactivated seven rigs and positioned the business to support higher activity levels, compared with<br>US$648 per utilization day in 2025 when four rigs were reactivated.
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·	Internationally,<br> we had seven active rigs during the quarter, with three in Saudi Arabia and four in Kuwait<br> compared with two and five rigs, respectively, in the second quarter of 2025. The resulting<br> change in rig mix lowered revenue per utilization day to US$50,524 from US$53,129 in the<br> same period last year. We realized revenue of US$32 million in the second quarter of 2026<br> compared to US$36 million in 2025 primarily due to the change in rig mix combined with a<br> 6% decline in drilling activity.
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·	Completion<br> and Production Services revenue was $66 million, an increase of $12 million compared with<br> 2025, primarily due to stronger customer demand driven by higher oil prices. Adjusted EBITDA<br> was $14 million, representing 21%^(2)^ of revenue, compared to 18% in the second<br> quarter of 2025.
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·	Capital<br> expenditures were $76 million compared to $53 million in the second quarter of 2025 and included<br> $46 million for the maintenance of existing assets and infrastructure and $30 million for<br> upgrades^(2)^.
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·	Subsequent<br> to quarter end, Precision received a Notice of Reassessment (NOR) from the Canada<br> Revenue Agency (CRA) relating to its 2018 tax year, denying certain deductions. The<br> Company and its tax advisors believe the Company's tax filing position is appropriate and<br> intends to vigorously contest the 2018 NOR and any additional reassessments. Please refer<br> to "Other Items" later in this report for more information.
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(1)	Defined as revenue per utilization day less<br> operating costs per utilization day.
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(2)	See "FINANCIAL MEASURES AND RATIOS."
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Summary for the six months ended June 30, 2026:

Revenue for the first six months of 2026 was $979 million, an increase of $76 million from the same period in 2025. Canadian revenue increased by $49 million due to higher North America drilling and well servicing activity, while U.S. revenue increased by $40 million due to improved drilling activity. These increases were partially offset by lower international drilling results and upfront capital payments in Canada.

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| --- | | · | Adjusted EBITDA decreased 10% to $221 million from $246 million in 2025, primarily due to higher share-based compensation expense as our share price appreciated 11% during the first six months of 2026, and increased operating costs in the U.S. and internationally. For additional information on share-based compensation, please refer to "Other Items" later in this report. | | --- | --- | | · | Net earnings attributable to shareholders was $16 million or $1.25 per share, compared to $51 million or $3.75 per share, in the same period last year. The decrease was primarily due to increased depreciation expense of $22 million from the change in useful life estimates. For additional information on depreciation, please refer to "Other Items" later in this report. | | --- | --- | | · | General and administrative expenses were $68 million compared to $55 million in the first six months of 2025, with the increase primarily due to higher share-based compensation expense and international restructuring costs. | | --- | --- | | · | Cash provided by operations was $209 million and the Company repurchased 136,290 shares for $16 million and reduced long-term debt by $75 million. Precision ended the quarter with $66 million of cash and more than $500 million in available liquidity. | | --- | --- | | · | Capital expenditures were $141 million compared to $113 million in the first six months of 2025 and included $81 million for the maintenance of existing assets and infrastructure and $61 million for 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 2026 strategic priorities and the progress made during the second quarter are summarized below.

1.	Drive revenue growth and deepen customer relationships through contracted upgrades, continuous operational excellence, and by leveraging our performance-driven technology as a key competitive differentiator.
·	Grew<br> rig utilization 20% in Canada and 6% in the U.S. year over year, outpacing industry activity<br> in each region.
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·	Maintained<br> strong pricing in Canada for our Super Triple and Super Single rigs compared<br> to the previous quarter and the second quarter of 2025.
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·	Since<br> the end of April 2026, we have improved our 2026 contract book, increasing the average number<br> of drilling rigs under term contract for 2026 by 33% in Canada and 45% in the U.S.
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·	Secured<br> an additional five-year drilling rig contract in Kuwait for an existing rig, which is expected<br> to increase our international active rig count to eight by mid-2027 after completing required<br> rig recertifications and upgrades.
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2.	Maximize free cash flow through strategic capital deployment and sustained cost discipline.
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·	Generated<br> cash from operations of $146 million, allowing Precision to reduce debt and buy back shares.
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·	Restructured<br> our international operations to better align our organizational structure within countries<br> where we operate, strengthen execution, improve efficiency, and reduce general operating<br> costs.
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·	Reiterated<br> capital budget of $265 million, with $93 million allocated to strategic upgrades in Canada<br> and the U.S.
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3.	Enhance shareholder returns by reducing debt by $100 million in 2026 and allocating up to 50% of free cash flow, before debt repayments, directly to shareholders.
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·	Reduced<br> debt by $50 million in the quarter and $75 million year-to-date, as we continue to target<br> a sustained Net Debt to Adjusted EBITDA ratio^(1)^ of below 1.0 times.
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·	Returned<br> $12 million to shareholders by repurchasing 99,416 shares during the quarter. Year to date,<br> we have repurchased $16 million shares and remain committed to our annual guidance target.
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| --- | | · | Well positioned to meet our long-term debt reduction target of $700 million between 2022 and 2027. As of June 30, 2026, we have reduced our debt by $610 million since the beginning of 2022. | | --- | --- | | (1) | See "FINANCIAL MEASURES AND RATIOS." | | --- | --- |

OUTLOOK

Ongoing geopolitical uncertainty and relatively tight global crude oil inventories have reinforced the importance of secure and reliable energy supply, supporting constructive oil prices and customer investment confidence. While customers remain focused on capital discipline and returns, we continue to see sustained demand for high-performance drilling rigs and well service equipment. Assuming commodity prices remain supportive and market conditions do not materially change, we expect North American drilling and completion activity to improve modestly through the remainder of the year.

In Canada, demand for our Super Series rigs remains robust, supporting one of the most active drilling environments we have experienced in recent years. Improving heavy oil and condensate prices continue to enhance producer economics and support steady upstream investment in both oil and natural gas formations. Assuming a constructive commodity price environment, we expect our Super Triple and Super Single rigs to be nearly fully utilized through the fall drilling season.

In the U.S., increasing oil prices, disruptions in global crude supply, and concerns over low inventory levels have contributed to a more constructive outlook for oil-directed drilling activity. As a result, U.S. land drilling activity has strengthened in recent months and we increased our oil-weighted activity while maintaining a strong position in key natural gas basins, including the Haynesville and Marcellus. We currently have 43 active rigs and expect our active rig count to remain in the low 40s with continued rig churn during the third quarter. We remain focused on deepening customer relationships and strengthening margins, which we expect to increase throughout the remainder of the year.

Internationally, our crews continue to safely deliver services to our customers despite minor activity disruptions and incremental costs related to the Middle East conflict. We have seven active rigs, including four in Kuwait and three in the Kingdom of Saudi Arabia, all under five-year term contracts that extend into 2027 and 2028. Activity is expected to remain at seven rigs until mid-2027, when one of our idle Kuwait rigs is scheduled to return to work under a five-year contract following planned recertifications and upgrades. Crew-related operating costs are expected to remain elevated while regional tensions persist. We continue to seek opportunities for our one idle international rig.

As Canada's premier well service provider, we remain optimistic about the long-term outlook for our Completion and Production Services business. Expanded market access, robust heavy oil drilling and production activity, favorable oil prices and our High Performance, High Value service offering continue to support customer investment and demand for our services. We believe these factors position us well to benefit from strong activity levels and pricing, assuming no significant change in market conditions.

Overall, our outlook for the remainder of the year is optimistic, with potential upside supported by sustained strength in oil prices and continued customer investment. In Canada, we expect third quarter operating margins to average between $12,000 and $13,000 per utilization day, with a higher proportion of Super Singles working this fall compared with the prior year. In the U.S., revenue per utilization day is expected to remain stable, while operating margins are anticipated to range between US$7,000 and US$8,000 per utilization day with cost pressures persisting due to additional rig reactivation expenses. While U.S. margin performance in the second and third quarters remains below our long-term expectations, fourth quarter margins expected to approach US$10,000 per utilization day.

Contracts

The following chart outlines the average number of drilling rigs under term contract by quarter as of July 28, 2026. For the quarter ending after June 30, 2026, 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 28, 2026	Average<br> for the quarter ended 2025								Average		Average<br> for the quarter ended 2026								Average
	Mar. 31		June 30		Sept. 30		Dec. 31		2025		Mar. 31		June 30		Sept. 30		Dec. 31		2026
Average rigs under term contract:
Canada		20		18		16		21		19		21		19		27		28		24
U.S.		16		16		17		17		17		15		15		18		14		16
International		8		7		7		7		7		7		7		7		7		7
Total		44		41		40		45		43		43		41		52		49		47

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In Canada, because of the seasonal nature of well site access, term contracted rigs normally generate 250-300 utilization days per rig year. 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 2026 is expected to remain at $265 million, consistent with our previously announced plan. Capital spending by spend category^(1)^ is expected to include $172 million for maintenance, infrastructure, and intangibles and $93 million for expansion and upgrades, reflecting a $4 million reallocation between spend categories compared to our previously announced plan. We expect to spend $238 million in the Contract Drilling Services segment, $21 million in the Completion and Production Services segment and $6 million in the Corporate and Other segment. At June 30, 2026, Precision had capital commitments of $177 million, with payments expected through 2028.

We remain committed to our 2026 debt reduction plan, reducing debt by $100 million and positioning us near our long-term target and sustained Net Debt to Adjusted EBITDA ratio^(1)^ of below 1.0 times. In 2026, we intend to allocate up to 50% of free cash flow before debt repayments to share repurchases.

(1)	See "FINANCIAL MEASURES AND RATIOS."

Commodity Prices

Second quarter average West Texas Intermediate and Western Canadian select oil prices increased by 46% and 45%, respectively, compared with the same period last year, as ongoing geopolitical tensions in the Middle East continued to weigh on oil prices. The average Henry Hub and AECO natural gas prices decreased by 16% and 8%, respectively, from the same period last year.

	For the three months ended June 30,		Year ended December 31,
	2026	2025	2025
Average oil and natural gas prices
Oil
West Texas Intermediate (per barrel) (US)	92.99	63.74	64.81
Western Canadian Select (per barrel) (US)	78.28	54.13	53.87
Natural gas
United States
Henry Hub (per MMBtu) (US)	2.94	3.51	3.63
Canada
AECO (per MMBtu) (CDN)	1.60	1.74	1.69

All values are in US Dollars.

Source: Sproule Escalated Price Forecast as of June 30, 2026.

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SEGMENTED FINANCIAL RESULTS

Precision’s operations are reported in two segments: Contract Drilling Services, which includes our drilling rigs, procurement and distribution of oilfield supplies, and the manufacture, sale and repair of drilling equipment; and Completion and Production Services, which includes our service rigs, oilfield equipment rental, and camp services.

	For the three months ended June 30,									For the six months ended June 30,
(Stated in thousands of Canadian dollars)	2026			2025			% Change			2026			2025			% Change
Revenue
Contract Drilling Services		389,844			355,352			9.7			838,853			774,809			8.3
Completion and Production Services		65,632			53,936			21.7			145,563			133,266			9.2
Inter-segment eliminations		(2,676	)		(2,673	)		0.1			(5,565	)		(5,129	)		8.5
		452,800			406,615			11.4			978,851			902,946			8.4
Adjusted EBITDA:^(1)^
Contract Drilling Services		94,682			111,422			(15.0	)		227,677			247,438			(8.0	)
Completion and Production Services		13,643			9,876			38.1			31,255			27,422			14.0
Corporate and Other		(11,270	)		(13,198	)		(14.6	)		(37,930	)		(29,263	)		29.6
		97,055			108,100			(10.2	)		221,002			245,597			(10.0	)
Depreciation and amortization		82,678			74,858			10.4			167,008			149,894			11.4
Gain on asset disposals		(467	)		(6,425	)		(92.7	)		(2,180	)		(9,297	)		(76.6	)
Foreign exchange		337			(1,617	)		(120.8	)		785			(1,250	)		(162.8	)
Finance charges		12,301			14,857			(17.2	)		24,657			30,617			(19.5	)
(Gain) loss on investments and other assets		(937	)		1,674			(156.0	)		530			1,625			(67.4	)
Net earnings before income tax		3,143			24,753			(87.3	)		30,202			74,008			(59.2	)
Income taxes		4,036			8,266			(51.2	)		13,250			22,574			(41.3	)
Net earnings (loss)		(893	)		16,487			(105.4	)		16,952			51,434			(67.0	)
Non-controlling interest		302			220			37.3			771			656			17.5
Net earnings (loss) attributable to shareholders		(1,195	)		16,267			(107.3	)		16,181			50,778			(68.1	)
(1)	See "FINANCIAL MEASURES AND RATIOS."
---	---

SEGMENT REVIEW OF CONTRACT DRILLING SERVICES

	For the three months ended June 30,									For the six months ended June 30,
(Stated in thousands of Canadian dollars, except where noted)	2026			2025			% Change			2026			2025			% Change
Revenue		389,844			355,352			9.7			838,853			774,809			8.3
Expenses:
Operating		282,456			234,448			20.5			586,029			506,860			15.6
General and administrative		12,706			9,482			34.0			25,147			20,511			22.6
Adjusted EBITDA^(1)^		94,682			111,422			(15.0	)		227,677			247,438			(8.0	)
Adjusted EBITDA as a percentage of revenue^(1)^		24.3	%		31.4	%					27.1	%		31.9	%
(1)	See "FINANCIAL MEASURES AND RATIOS."
---	---
Canadian onshore drilling statistics:^(1)^	2026				2025
---	---	---	---	---	---	---	---	---
	Precision		Industry^(2)^		Precision		Industry^(2)^
Average number of active land rigs for quarters ended:
March 31		79		199		74		214
June 30		61		147		50		127
Year to date average		70		173		62		171
(1)	Canadian operations only.
---	---
(2)	Source: Baker Hughes rig counts.
---	---
United States onshore drilling statistics:^(1)^	2026				2025
---	---	---	---	---	---	---	---	---
	Precision		Industry^(2)^		Precision		Industry^(2)^
Average number of active land rigs for quarters ended:
March 31		37		530		30		572
June 30		35		538		33		556
Year to date average		36		534		32		564
(1)	United States lower 48 operations only.
---	---
(2)	Source: Baker Hughes rig counts.
---	---

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Revenue from Contract Drilling Services was $390 million compared to $355 million in the second quarter of 2025, due to increased drilling rig activity in Canada and the U.S., offset in part by lower international drilling activity and lower upfront capital payments in Canada of $3 million compared with $7 million in 2025. Precision's Canada and U.S. drilling rig utilization days increased by 20% and 6%, respectively. Our international revenue decreased by 11%, primarily due to our rig mix change.

Operating expenses increased 21% in 2026 compared with the second quarter of 2025, primarily related to our US and international operations. In the U.S., rig reactivation costs averaged US$2,387 per utilization day as we reactivated seven rigs and positioned the business to support higher activity levels, compared with US$648 per utilization day in 2025 when four rigs were reactivated. Internationally, operating expenses increased due to a change in rig mix and geopolitical tensions in the Middle East.

General and administrative expenses increased 34% in 2026 compared with the second quarter of 2025, primarily due to $3 million of restructuring costs related to our international operations to better align our organizational structure within countries where we operate.

Adjusted EBITDA was $95 million for the quarter and represented 24% of revenue compared to 31% in 2025.

In Canada, 32% of our utilization days were generated from rigs under term contract in the second quarter of 2026 compared to 36% in 2025. In the U.S., 32% of utilization days were generated from rigs under term contract in the second quarter of 2026 compared to 46% in 2025.

SEGMENT REVIEW OF COMPLETION AND PRODUCTION SERVICES

	For the three months ended June 30,								For the six months ended June 30,
(Stated in thousands of Canadian dollars, except where noted)	2026			2025			% Change		2026			2025			% Change
Revenue		65,632			53,936			21.7		145,563			133,266			9.2
Expenses:
Operating		49,513			41,970			18.0		109,188			101,082			8.0
General and administrative		2,476			2,090			18.5		5,120			4,762			7.5
Adjusted EBITDA^(1)^		13,643			9,876			38.1		31,255			27,422			14.0
Adjusted EBITDA as a percentage of revenue^(1)^		20.8	%		18.3	%				21.5	%		20.6	%
Well servicing statistics:
Number of service rigs (end of period)^(2)^		146			135			8.1		145			135			7.4
Service rig operating hours^(2)^		54,654			43,779			24.8		122,873			109,414			12.3
(1)	See "FINANCIAL MEASURES AND RATIOS."
---	---
(2)	The service rig fleet and service rig operating<br> hours exclude our U.S. operations that we wound down in the second quarter of 2025.
---	---

Completion and Production Services revenue was $66 million in the second quarter of 2026, compared to $54 million in the same period of 2025. The increase was primarily due to higher well servicing activity, resulting from stronger customer demand driven by higher oil prices.

Adjusted EBITDA was $14 million, representing 21% of revenue, compared to 18% in the second quarter of 2025.

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 $11 million for the second quarter versus a negative Adjusted EBITDA of $13 million in the same period last year primarily due to a share-based compensation recovery recognized in the period of $2 million compared with a share based compensation expense of $4 million in the prior year.

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 2025 Annual Report.

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

	For the three months ended<br><br> <br>June 30,					For the six months ended<br><br> <br>June 30,
(Stated in thousands of Canadian dollars)	2026			2025		2026		2025
Cash settled share-based incentive plans		(3,557	)		2,662		12,404		3,065
Equity settled share-based incentive plans		2,005			1,551		4,917		3,978
Total share-based incentive compensation plan expense (recovery)		(1,552	)		4,213		17,321		7,043
Allocated:
Operating		480			1,254		4,243		2,382
General and Administrative		(2,032	)		2,959		13,078		4,661
		(1,552	)		4,213		17,321		7,043

Our cash-settled share-based compensation was a recovery of $4 million for the quarter, compared with an expense of $3 million in 2025. The recovery in the second quarter of 2026 was primarily due to our share price declining 20% during the quarter.

During the first quarters of 2025 and 2026, we issued Executive Restricted Share Units (Executive RSUs) to certain senior executives that were aligned with our annual compensation framework. These issuances resulted in an equity-settled share-based compensation expense of $2 million in the second quarter of both 2026 and 2025. As of June 30, 2026, 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.

Contingencies

In the 2018 to 2023 tax years, Precision deducted certain intercompany dividends received in connection with a preferred share financing. In late July 2026, Precision received a NOR from the CRA relating to its 2018 tax year, denying the deduction of such intercompany dividends. In addition to the 2018 NOR, Precision received a proposal from the CRA for the 2019 to 2022 tax years on the same basis, but no reassessments have been received at this time.

Precision will file a Notice of Objection to the 2018 NOR and intends to vigorously contest the 2018 NOR as well as any additional reassessments that may be issued by the CRA in respect of the intercompany dividends received. The Company and its tax advisors believe that the Company’s tax filing position is appropriate. As such, Precision has not recognized a liability in its unaudited interim consolidated financial statements with respect to the reassessment.

Due to existing tax pools, the CRA’s reassessment of the 2018 tax year and anticipated reassessments of the 2019 to 2023 tax years are not expected to impact taxes payable until the 2024 to 2027 tax years. Additional notices of reassessment for the subsequent tax years are expected to be issued over the next 24 months. If it is ultimately determined that the Company is not entitled to deduct the intercompany dividends, we estimate a maximum tax liability of approximately $155 million, excluding interest.

Once reassessments are issued, Precision will be required to pay 50% of the assessed tax liability and interest, until the issue has been resolved. If Precision is ultimately successful in defending its position, then any taxes and interest paid to the CRA will be refunded plus interest, and if the CRA is successful then any remaining taxes and interest payable will have to be remitted by Precision.

Depreciation

In 2025, we completed a detailed review of our drilling rig equipment and revised the estimated useful life of drill pipe as more complex drilling programs have reduced the useful life of this asset class. This revision resulted in additional depreciation expense of $11 million in the second quarter of 2026.

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 upgrade or expansion capital projects 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$375 million (extendible, revolving<br><br> term credit facility with US$375 million accordion feature)	US$46 million drawn with US$60 million in outstanding letters of credit	General corporate purposes	October 31, 2028^(1)^
Operating facilities (secured)
$40 million	Undrawn, except $7 million in<br><br> outstanding letters of credit	Letters of credit and general<br><br> corporate purposes
US$15 million	Undrawn	Short-term working capital<br><br> requirements
Demand letter of credit facility (secured)
US$40 million	Undrawn, except US$24 million in<br><br> outstanding letters of credit	Letters of credit
Unsecured senior notes (unsecured)
US$400 million – 6.875%	Fully drawn	Debt redemption and repurchases	January 15, 2029
(1)	US$43 million will expire on June 28, 2027.
---	---

In the second quarter of 2026, we reduced long-term debt by $50 million, through repayments of borrowings under our Senior Credit Facility. As of June 30, 2026, we had a total of $633 million outstanding under our Senior Credit Facility and unsecured senior notes as compared with $687 million at December 31, 2025. The current blended cash interest cost of our debt is approximately 6.7%.

Senior Credit Facility

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

Unsecured Senior Notes

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

Covenants

As at June 30, 2026, we were in compliance with the covenants of our Senior Credit Facility.

	Covenant
Senior Credit Facility
Consolidated senior debt to consolidated covenant EBITDA^(1)^	< 2.50	0.14
Consolidated covenant EBITDA to consolidated<br> interest expense	> 2.50	10.03
(1)	For purposes of calculating the leverage ratio consolidated senior debt<br> 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<br><br> <br>June 30,				For the six months ended<br><br> <br>June 30,				At<br><br> <br>December 31,
	2026		2025		2026		2025		2025
Canada-U.S. foreign exchange rates
Average		1.38		1.38		1.38		1.41		—
Closing		1.42		1.36		1.42		1.36		1.37

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.

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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.

Outstanding share data

As of July 28, 2026, we had 12,746,458 common shares, 113,087 deferred share units (DSUs), and 149,589 equity-based awards outstanding.

The outstanding DSUs were granted under the old DSU Plan, the 2012 DSU Plan and the 2024 DSU Plan and assume settlement of each DSU for one common share.

The outstanding equity-based awards consist of Restricted Share Units (RSUs) and Performance Share Units (PSUs) which may be settled through the issuance of common shares from treasury. As of July 28, 2026, all 149,589 equity-based awards outstanding were Executive RSUs and assume settlement of each Executive RSU for one common share.

Our DSU, PSU and RSU Plans are governed by our Omnibus Equity Incentive Plan (the Omnibus Plan). More information about the Omnibus Plan can be found in our Management Information Circular, available on our website and on SEDAR+ (www.sedarplus.ca).

QUARTERLY FINANCIAL SUMMARY

(Stated in thousands of Canadian dollars, except per share amounts)	2025						2026
Quarters ended	September 30			December 31			March 31		June 30
Revenue		462,250			478,508			526,051		452,800
Adjusted EBITDA^(1)^		117,632			126,386			123,947		97,055
Net earnings (loss) attributable to shareholders		(6,761	)		(42,175	)		17,376		(1,195	)
Net earnings (loss) attributable to shareholders per basic share		(0.51	)		(3.23	)		1.34		(0.09	)
Net earnings (loss) attributable to shareholders per diluted share		(0.51	)		(3.23	)		1.34		(0.52	)
Cash provided by operations		75,869			126,114			63,154		145,569

(Stated in thousands of Canadian dollars, except per share amounts)	2024				2025
Quarters ended	September 30		December 31		March 31		June 30
Revenue		477,155		468,171		496,331		406,615
Adjusted EBITDA^(1)^		142,425		120,526		137,497		108,100
Net earnings attributable to shareholders		39,183		14,795		34,511		16,267
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
Cash provided by operations		79,674		162,791		63,419		147,495

(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 2025 Annual Report.

CHANGE IN ACCOUNTING POLICY

Effective January 1, 2026, Precision has prospectively adopted Amendmentsto the Classification and Measurement of Financial Instruments, as issued May 2024. The amendments relate to IFRS 7 FinancialInstruments: Disclosures and IFRS 9 Financial Instruments. The amendments clarify the timing of recognition and derecognition of financial assets and liabilities. The amendments require opening balances of financial assets, financial liabilities, and retained earnings be adjusted to recognize the effect of the initial application if retrospective application is not selected. The initial application did not result in a material impact to the financial statements.

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EVALUATION OF CONTROLS AND PROCEDURES

Based on their evaluation as at December 31, 2025, 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 of June 30, 2026, 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, 2026 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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FINANCIAL MEASURES AND RATIOS

Non-GAAP Financial Measures<br><br> <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) loss<br> on investments and other assets, finance charges, foreign exchange, gain on asset disposals and depreciation and amortization), as<br> reported in our Condensed Interim Consolidated Statements of Net Earnings (Loss) and our reportable operating segment disclosures,<br> is a useful measure because it gives an indication of the results from our principal business activities prior to consideration of<br> how our activities are financed and the impact of foreign exchange, taxation and depreciation and amortization charges.<br><br> <br><br><br> <br>The most directly comparable financial measure is net earnings.

Non-GAAP Financial Measures ****

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

Adjusted EBITDA

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

	For the three months ended<br><br> <br>June 30,						For the six months ended<br><br> <br>June 30,
(Stated in thousands of Canadian dollars)	2026			2025			2026			2025
Adjusted EBITDA by segment:
Contract Drilling Services		94,682			111,422			227,677			247,438
Completion and Production Services		13,643			9,876			31,255			27,422
Corporate and Other		(11,270	)		(13,198	)		(37,930	)		(29,263	)
Adjusted EBITDA		97,055			108,100			221,002			245,597
Depreciation and amortization		82,678			74,858			167,008			149,894
Gain on asset disposals		(467	)		(6,425	)		(2,180	)		(9,297	)
Foreign exchange		337			(1,617	)		785			(1,250	)
Finance charges		12,301			14,857			24,657			30,617
(Gain) loss on investments and other assets		(937	)		1,674			530			1,625
Income taxes		4,036			8,266			13,250			22,574
Net earnings (loss)		(893	)		16,487			16,952			51,434
Non-controlling interest		302			220			771			656
Net earnings (loss) attributable to shareholders		(1,195	)		16,267			16,181			50,778

Net Capital Spending	We believe net capital spending is a useful measure as it provides<br> an indication of our primary investment activities.<br><br> <br><br><br> <br>The most directly comparable financial measure is cash provided by<br> (used in) investing activities.<br><br> <br><br><br> <br>Net capital spending is calculated as follows:

	For the three months ended<br><br> <br>June 30,						For the six months ended<br><br> <br>June 30,
(Stated in thousands of Canadian dollars)	2026			2025			2026			2025
Capital spending by spend category
Expansion and upgrade		30,267			26,757			60,541			46,303
Maintenance and infrastructure		46,097			26,016			80,823			66,435
Capital expenditures		76,364			52,773			141,364			112,738
Proceeds on sale of property, plant and equipment		(12,013	)		(11,829	)		(14,300	)		(15,594	)
Net capital spending		64,351			40,944			127,064			97,144
Proceeds from sale of investments and other assets		(400	)		—			(400	)		—
Purchase of investments and other assets		—			—			698			11
Receipt of finance lease payments		(252	)		(209	)		(503	)		(417	)
Changes in non-cash working capital balances		(8,938	)		(4,686	)		2,604			(3,487	)
Cash used in investing activities		54,761			36,049			129,463			93,251

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

	June 30,			December 31,
(Stated in thousands of Canadian dollars)	2026			2025
Current assets		469,469			486,915
Current liabilities		(322,557	)		(300,100	)
Working capital		146,912			186,815

Total Long-term Financial Liabilities	We define total long-term financial liabilities as total non-current<br> liabilities less deferred tax liabilities, as reported in our Condensed Interim Consolidated Statements of Financial Position.<br><br> <br><br><br> <br>Total long-term financial liabilities is calculated as follows:

	June 30,			December 31,
(Stated in thousands of Canadian dollars)	2026			2025
Total non-current liabilities		798,555			837,707
Deferred tax liabilities		(105,567	)		(90,763	)
Total long-term financial liabilities		692,988			746,944

Non-GAAP Ratios
We reference certain additional Non-GAAP ratios that are not defined terms under IFRS to assess performance because we believe they provide useful supplemental information to investors.
Adjusted EBITDA % of Revenue	We believe Adjusted EBITDA as a percentage of consolidated revenue, as reported in our<br> Condensed Interim Consolidated Statements of Net Earnings (Loss), provides an indication of our profitability from our principal<br> business activities prior to consideration of how our activities are financed and the impact of foreign exchange, taxation and depreciation<br> 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<br> Position) to long-term debt plus equity (total equity as reported in our Condensed Interim Consolidated Statements of Financial Position)<br> provides an indication of our debt leverage.
Net Debt to Adjusted EBITDA	We believe that the Net Debt (long-term debt plus current portion of long-term debt less cash, as<br> reported in our Condensed Interim Consolidated Statements of Financial Position) to Adjusted EBITDA ratio provides an indication<br> of the number of years it would take for us to repay our debt obligations.
Supplementary Financial Measures
We reference certain supplementary financial measures that are not defined terms under<br> 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<br> spending is categorized as expansion and upgrade or maintenance and infrastructure.

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").

| 14 |

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

·	our<br> 2026 strategic priorities;
·	our<br> capital expenditures, free cash flow allocation and debt reduction plans for 2026 and beyond;
---	---
·	anticipated<br> activity levels, demand for our drilling rigs, day rates and daily operating margins in 2026;
---	---
·	the<br> average number of term contracts in place for 2026;
---	---
·	customer<br> adoption of Alpha^TM^ technologies and EverGreen^TM^ suite of environmental<br> solutions; and
---	---
·	potential<br> 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:

·	our<br> ability to react to customer spending plans as a result of changes in oil and natural gas<br> prices;
·	the<br> status of current negotiations with our customers and vendors;
---	---
·	customer<br> focus on safety performance;
---	---
·	existing<br> term contracts are neither renewed nor terminated prematurely;
---	---
·	continued<br> market demand for our drilling rigs;
---	---
·	our<br> ability to deliver rigs to customers on a timely basis;
---	---
·	the<br> impact of an increase/decrease in capital spending;
---	---
·	the<br> general stability of the economic and political environments in the jurisdictions where we<br> operate in; and
---	---
·	anticipated<br> rig utilization, operating margins, active rig counts and customer activity levels.
---	---

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<br> in the price and demand for oil and natural gas;
·	fluctuations<br> in the level of oil and natural gas exploration and development activities;
---	---
·	fluctuations<br> in the demand for contract drilling, well servicing and ancillary oilfield services;
---	---
·	our<br> customers’ inability to obtain adequate credit or financing to support their drilling<br> and production activity;
---	---
·	changes<br> in drilling and well servicing technology, which could reduce demand for certain rigs or<br> put us at a competitive disadvantage;
---	---
·	shortages,<br> delays and interruptions in the delivery of equipment supplies and other key inputs;
---	---
·	liquidity<br> of the capital markets to fund customer drilling programs;
---	---
·	availability<br> of cash flow, debt and equity sources to fund our capital and operating requirements, as<br> needed;
---	---
·	the<br> physical, regulatory and transition impacts of climate change;
---	---
·	the<br> impact of weather and seasonal conditions on operations and facilities;
---	---
·	the<br> impact of tariffs, trade disputes, sanctions, export controls and other trade restrictions;
---	---
·	competitive<br> operating risks inherent in contract drilling, well servicing and ancillary oilfield services;
---	---
·	geopolitical<br> instability or armed conflicts, including in regions where we operate may impact operations,<br> personnel, logistics, customer activity and commodity markets;
---	---
·	ability<br> to improve our rig technology to improve drilling efficiency;
---	---
·	general<br> economic, market or business conditions;
---	---
·	the<br> availability of qualified personnel and management;
---	---
·	a<br> decline in our safety performance which could result in lower demand for our services;
---	---
·	the<br> impact of inflation and supply chain disruptions;
---	---
·	business<br> interruptions related to cybersecurity risks;
---	---
·	changes<br> in laws or regulations, including changes in environmental laws and regulations such as increased<br> regulation of hydraulic fracturing or restrictions on the burning of fossil fuels and greenhouse<br> gas emissions, which could have an adverse impact on the demand for oil and natural gas;
---	---
·	terrorism,<br> acts of war, social, civil and political unrest in the foreign jurisdictions or regions where<br> we operate;
---	---
·	fluctuations<br> in foreign exchange, interest rates and tax rates; and
---	---
·	other<br> unforeseen conditions which could impact the use of services supplied by Precision and Precision’s<br> ability to respond to such conditions.
---	---

| 15 |

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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, 2025, which may be accessed on Precision’s SEDAR+ profile at or under Precision’s EDGAR profile. The forward-looking information and statements contained in this report are made as of the date hereof and Precision undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, except as required by law.

Exhibit 99.2

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED)

(Stated in thousands of Canadian dollars)		June 30, 2026			December 31, 2025
ASSETS
Current assets:
Cash	$	66,292		$	85,781
Accounts receivable		348,477			352,142
Inventory		54,700			48,992
Total current assets		469,469			486,915
Non-current assets:
Deferred tax assets		4,170			2,235
Property, plant and equipment		2,170,098			2,159,212
Intangibles		7,691			9,470
Right-of-use assets		64,331			56,817
Finance lease receivables		4,059			4,474
Investments and other assets		6,871			7,567
Total non-current assets		2,257,220			2,239,775
Total assets	$	2,726,689		$	2,726,690
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$	302,571		$	280,652
Income taxes payable		441			1,670
Current portion of lease obligations		19,545			17,778
Total current liabilities		322,557			300,100
Non-current liabilities:
Share-based compensation (Note 7)		8,568			13,780
Provisions and other		6,941			6,704
Lease obligations		51,152			47,169
Long-term debt (Note 5)		626,327			679,291
Deferred tax liabilities		105,567			90,763
Total non-current liabilities		798,555			837,707
Total liabilities		1,121,112			1,137,807
Equity:
Shareholders’ capital (Note 8)		2,208,934			2,238,766
Contributed surplus		79,557			79,270
Accumulated other comprehensive income		187,425			165,020
Deficit		(875,179	)		(898,992	)
Total equity attributable to shareholders		1,600,737			1,584,064
Non-controlling interest		4,840			4,819
Total equity		1,605,577			1,588,883
Total liabilities and equity	$	2,726,689		$	2,726,690

See accompanying notes to condensed interim consolidated financial statements.

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

	Three Months Ended June 30,						Six Months Ended June 30,
(Stated in thousands of Canadian dollars, except per share amounts)		2026			2025			2026			2025
Revenue (Note 3)	$	452,800		$	406,615		$	978,851		$	902,946
Expenses:
Operating		329,293			273,745			689,652			602,813
General and administrative		26,452			24,770			68,197			54,536
Earnings before income taxes, (gain) loss on investments and other assets, finance charges, foreign exchange, gain on asset disposals, and depreciation and amortization		97,055			108,100			221,002			245,597
Depreciation and amortization		82,678			74,858			167,008			149,894
Gain on asset disposals		(467	)		(6,425	)		(2,180	)		(9,297	)
Foreign exchange		337			(1,617	)		785			(1,250	)
Finance charges (Note 6)		12,301			14,857			24,657			30,617
(Gain) loss on investments and other assets		(937	)		1,674			530			1,625
Earnings before income taxes		3,143			24,753			30,202			74,008
Income taxes:
Current		696			1,068			1,398			2,174
Deferred		3,340			7,198			11,852			20,400
		4,036			8,266			13,250			22,574
Net earnings (loss)	$	(893	)	$	16,487		$	16,952		$	51,434
Attributable to:
Shareholders of Precision Drilling Corporation	$	(1,195	)	$	16,267		$	16,181		$	50,778
Non-controlling interest	$	302		$	220		$	771		$	656
Net earnings (loss) per share attributable to share- holders of Precision Drilling Corporation (Note 9):
Basic	$	(0.09	)	$	1.21		$	1.25		$	3.75
Diluted	$	(0.52	)	$	1.07		$	1.25		$	3.28

See accompanying notes to condensed interim consolidated financial statements.

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

	Three Months Ended June 30,						Six Months Ended June 30,
(Stated in thousands of Canadian dollars)		2026			2025			2026			2025
Net earnings (loss)	$	(893	)	$	16,487		$	16,952		$	51,434
Unrealized gain (loss) on translation of<br> assets and liabilities of operations denominated in foreign currency		24,919			(79,446	)		43,163			(80,104	)
Foreign exchange<br> gain (loss) on net investment hedge with U.S. denominated debt		(11,844	)		41,008			(20,758	)		40,473
Comprehensive income (loss)	$	12,182		$	(21,951	)	$	39,357		$	11,803
Attributable to:
Shareholders of Precision Drilling Corporation	$	11,880		$	(22,171	)	$	38,586		$	11,147
Non-controlling interest	$	302		$	220		$	771		$	656

See accompanying notes to condensed interim consolidated financial statements.

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

	Three<br> Months Ended June 30,						Six<br> Months Ended June 30,
(Stated in thousands of Canadian dollars)		2026			2025			2026			2025
Cash provided by (used in):
Operations:
Net earnings (loss)	$	(893	)	$	16,487		$	16,952		$	51,434
Adjustments for:
Long-term compensation plans		2,539			3,374			11,800			6,390
Depreciation and amortization		82,678			74,858			167,008			149,894
Gain on asset disposals		(467	)		(6,425	)		(2,180	)		(9,297	)
Foreign exchange		333			(1,631	)		887			(2,414	)
Finance charges		12,301			14,857			24,657			30,617
Income taxes		4,036			8,266			13,250			22,574
Other		26			(21	)		13			(21	)
(Gain) loss on investments and other assets		(937	)		1,674			530			1,625
Income taxes paid		(1,811	)		(3,846	)		(2,153	)		(4,167	)
Interest paid		(2,636	)		(3,621	)		(24,627	)		(33,258	)
Interest received		384			318			808			755
Funds provided by operations		95,553			104,290			206,945			214,132
Changes in non-cash working capital balances		50,016			43,205			1,778			(3,218	)
Cash provided by operations		145,569			147,495			208,723			210,914
Investments:
Purchase of property, plant and equipment		(76,364	)		(52,773	)		(141,364	)		(112,738	)
Proceeds on sale of property, plant and equipment		12,013			11,829			14,300			15,594
Proceeds from sale of investments and other assets		400			-			400			-
Purchase of investments and other assets		-			-			(698	)		(11	)
Receipt of finance lease payments		252			209			503			417
Changes in non-cash working capital balances		8,938			4,686			(2,604	)		3,487
Cash used in investing activities		(54,761	)		(36,049	)		(129,463	)		(93,251	)
Financing:
Issuance of long-term debt		-			10,000			3,000			10,000
Repayment of long-term debt		(50,041	)		(83,854	)		(78,041	)		(100,964	)
Repurchase of share capital (Note 8)		(12,010	)		(14,490	)		(16,025	)		(45,256	)
Issuance of common shares from the exercise of options		-			-			195			-
Distributions to non-controlling interest		-			-			(300	)		-
Lease payments		(4,361	)		(3,922	)		(8,454	)		(7,509	)
Cash used in financing activities		(66,412	)		(92,266	)		(99,625	)		(143,729	)
Effect of exchange rate changes on cash		434			(727	)		876			(1,007	)
Increase (decrease) in cash		24,830			18,453			(19,489	)		(27,073	)
Cash, beginning of period		41,462			28,245			85,781			73,771
Cash, end of period	$	66,292		$	46,698		$	66,292		$	46,698

See accompanying notes to condensed interim consolidated financial statements.

CONDENSED INTERIM CONSOLIDATED STATEMENTSOF CHANGES IN EQUITY (UNAUDITED)

	Attributable to shareholders of the Corporation
(Stated in thousands of <br> Canadian dollars)		Shareholders’<br><br> <br>Capital			Contributed<br><br> <br>Surplus			Accumulated<br><br> <br>Other<br><br> <br>Comprehensive<br><br> <br>Income		Deficit			Total			Non-<br> Controlling<br><br> <br><br><br> <br>Interest			Total<br> Equity
Balance at January 1, 2026	$	2,238,766		$	79,270		$	165,020	$	(898,992	)	$	1,584,064		$	4,819		$	1,588,883
Net earnings for the period		-			-			-		16,181			16,181			771			16,952
Other comprehensive income for the period		-			-			22,405		-			22,405			-			22,405
Share options exercised		279			(84	)		-		-			195			-			195
Settlement of Executive Performance and Restricted Share Units		4,095			(4,095	)		-		-			-			-			-
Distributions to non-controlling interest		-			-			-		-			-			(750	)		(750	)
Share repurchases (Note 8)		(23,657	)		-			-		7,632			(16,025	)		-			(16,025	)
Liability reversal for automated share purchase plan (Note 8)		10,000			-			-		-			10,000			-			10,000
Liability for automated share purchase plan (Note 8)		(21,000	)		-			-		-			(21,000	)		-			(21,000	)
Redemption of non-management directors share units		451			(451	)		-		-			-			-			-
Share-based compensation expense		-			4,917			-		-			4,917			-			4,917
Balance at June 30, 2026	$	2,208,934		$	79,557		$	187,425	$	(875,179	)	$	1,600,737		$	4,840		$	1,605,577
	Attributable to shareholders of the Corporation
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
(Stated in thousands of <br> Canadian dollars)		Shareholders’<br><br> <br>Capital			Contributed<br><br> <br>Surplus			Accumulated<br><br> <br>Other<br><br> <br>Comprehensive<br><br> <br>Income			Deficit			Total			Non-<br><br> <br>Controlling<br><br> <br>Interest			Total<br><br> <br>Equity
Balance at January 1, 2025	$	2,301,729		$	77,557		$	199,020		$	(900,834	)	$	1,677,472		$	4,527		$	1,681,999
Net earnings for the period		-			-			-			50,778			50,778			656			51,434
Other comprehensive income for the period		-			-			(39,631	)		-			(39,631	)		-			(39,631	)
Settlement of Executive Performance and Restricted Share Units		11,651			(2,790	)		-			-			8,861			-			8,861
Distributions to Non-Controlling Interest		-			-			-			-			-			(519	)		(519	)
Share repurchases		(45,921	)		-			-			-			(45,921	)		-			(45,921	)
Liability reversal for automated share purchase plan		10,000			-			-			-			10,000			-			10,000
Liability for automated share purchase plan		(5,000	)		-			-			-			(5,000	)		-			(5,000	)
Redemption of non-management directors share units		361			(361	)		-			-			-			-			-
Share-based compensation expense		-			3,977			-			-			3,977			-			3,977
Balance at June 30, 2025	$	2,272,820		$	78,383		$	159,389		$	(850,056	)	$	1,660,536		$	4,664		$	1,665,200

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 exceptshare 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 based on International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) and in accordance with International Accounting Standard (IAS) 34 Interim Financial Reporting.

These 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, 2025.

These condensed interim consolidated financial statements were prepared using accounting policies and application methods consistent with those used in the preparation of the Corporation’s consolidated annual financial statements for the year ended December 31, 2025, except as described in Note 2(c).

These condensed interim consolidated financial statements were approved by the Board of Directors on July 28, 2026.

(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, 2025.

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. Ongoing U.S. military operations involving Iran and the resulting conflict in the Middle East have impacted global oil supply and increased volatility in global oil prices. 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.

(c) Change in Accounting Policy

Effective January 1, 2026, the Corporation has prospectively adopted Amendmentsto the Classification and Measurement of Financial Instruments, as issued May 2024. The amendments relate to IFRS 7 Financial Instruments:Disclosures and IFRS 9 Financial Instruments. The amendments clarify the timing of recognition and derecognition of financial assets and liabilities. The amendments require opening balances of financial assets, financial liabilities, and retained earnings be adjusted to recognize the effect of the initial application if retrospective application is not selected. The initial application did not result in a material impact to the financial statements. The Corporation has applied the election related to electronic payment systems.

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, 2026		Contract<br> Drilling<br> Services		Completion<br> and<br> Production<br> Services		Corporate<br> and Other		Inter-<br> Segment<br> Eliminations			Total
Canada	$	199,162	$	65,632	$	-	$	(2,676	)	$	262,118
United States		146,076		-		-		-			146,076
International		44,606		-		-		-			44,606
	$	389,844	$	65,632	$	-	$	(2,676	)	$	452,800
Day rate/hourly services	$	385,794	$	65,632	$	-	$	(813	)	$	450,613
Shortfall payments/idle but contracted		219		-		-		-			219
Other		3,831		-		-		(1,863	)		1,968
	$	389,844	$	65,632	$	-	$	(2,676	)	$	452,800

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	$	175,028	$	53,863	$	-	$	(2,673	)	$	226,218
United States		130,494		73		-		-			130,567
International		49,830		-		-		-			49,830
	$	355,352	$	53,936	$	-	$	(2,673	)	$	406,615
Day rate/hourly services	$	353,032	$	53,936	$	-	$	(824	)	$	406,144
Shortfall payments/idle but contracted		79		-		-		-			79
Other		2,241		-		-		(1,849	)		392
	$	355,352	$	53,936	$	-	$	(2,673	)	$	406,615

Six Months Ended June 30, 2026		Contract<br> Drilling<br> Services		Completion<br> and<br> Production<br> Services		Corporate<br> and Other		Inter-<br> Segment<br> Eliminations			Total
Canada	$	450,995	$	145,563	$	-	$	(5,565	)	$	590,993
United States		300,012		-		-		-			300,012
International		87,846		-		-		-			87,846
	$	838,853	$	145,563	$	-	$	(5,565	)	$	978,851
Day rate/hourly services	$	823,733	$	145,563	$	-	$	(1,713	)	$	967,583
Shortfall payments/idle but contracted		219		-		-		-			219
Turnkey drilling services		8,453		-		-		-			8,453
Other		6,448		-		-		(3,852	)		2,596
	$	838,853	$	145,563	$	-	$	(5,565	)	$	978,851

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	$	415,465	$	131,544	$	-	$	(5,129	)	$	541,880
United States		258,427		1,722		-		-			260,149
International		100,917		-		-		-			100,917
	$	774,809	$	133,266	$	-	$	(5,129	)	$	902,946
Day rate/hourly services	$	764,967	$	133,266	$	-	$	(1,452	)	$	896,781
Shortfall payments/idle but contracted		4,975		-		-		-			4,975
Other		4,867		-		-		(3,677	)		1,190
	$	774,809	$	133,266	$	-	$	(5,129	)	$	902,946
(b)	Seasonality
---	---

Precision has operations that are carried on in Canada which represent approximately 61% (2025 – 60%) of consolidated revenue for the six months ended June 30, 2026 and 44% (2025 – 42%) of consolidated total assets as at June 30, 2026. 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 services. The Corporation provides services primarily in Canada, the United States and certain international locations.

Three Months Ended June 30, 2026		Contract<br> Drilling<br> Services			Completion<br> and<br> Production<br> Services			Corporate<br> and Other			Inter-<br> Segment<br> Eliminations			Total
Revenue	$	389,844		$	65,632		$	-		$	(2,676	)	$	452,800
Earnings before income taxes, (gain) loss on investments and other assets, finance charges, foreign exchange, (gain) loss on asset disposals, and depreciation and amortization		94,682			13,643			(11,270	)		-			97,055
Depreciation and amortization		74,619			5,801			2,258			-			82,678
(Gain) loss on asset disposals		(436	)		(41	)		10			-			(467	)
Foreign exchange		(1	)		5			333			-			337
Finance charges		159			105			12,037			-			12,301
(Gain) loss on investments and other assets		(1,107	)		-			170			-			(937	)
Income taxes (recovery)		(10,731	)		196			14,571			-			4,036
Net earnings (loss) for reportable segments		32,179			7,577			(40,649	)		-			(893	)
Total assets		2,353,630			237,078			135,981			-			2,726,689
Capital expenditures		68,167			6,862			1,335			-			76,364

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	$	355,352		$	53,936		$	-		$	(2,673	)	$	406,615
Earnings before income taxes, (gain) loss on investments and other assets, finance charges, foreign exchange, (gain) loss on asset disposals, and depreciation and amortization		111,422			9,876			(13,198	)		-			108,100
Depreciation and amortization		66,733			5,658			2,467			-			74,858
(Gain) loss on asset disposals		(4,150	)		(2,230	)		(45	)		-			(6,425	)
Foreign exchange		(196	)		(16	)		(1,405	)		-			(1,617	)
Finance charges		289			104			14,464			-			14,857
(Gain) loss on investments and other assets		1,368			-			306			-			1,674
Income taxes (recovery)		(2,691	)		(196	)		11,153			-			8,266
Net earnings (loss) for reportable segments		50,069			6,556			(40,138	)		-			16,487
Total assets		2,391,737			231,625			119,475			-			2,742,837
Capital expenditures		49,460			3,246			67			-			52,773
Six Months Ended June 30, 2026		Contract<br> Drilling<br> Services			Completion<br> and<br> Production<br> Services			Corporate<br> and Other			Inter-<br> Segment<br> Eliminations			Total
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
Revenue	$	838,853		$	145,563		$	-		$	(5,565	)	$	978,851
Earnings before income taxes, (gain) loss on investments and other assets, finance charges, foreign exchange, (gain) loss on asset disposals, and depreciation and amortization		227,677			31,255			(37,930	)		-			221,002
Depreciation and amortization		150,832			11,606			4,570			-			167,008
(Gain) loss on asset disposals		(1,825	)		(374	)		19			-			(2,180	)
Foreign exchange		188			1			596			-			785
Finance charges		18			219			24,420			-			24,657
(Gain) loss on investments and other assets		(463	)		-			993			-			530
Income taxes (recovery)		(19,079	)		20			32,309			-			13,250
Net earnings (loss) for reportable segments		98,006			19,783			(100,837	)		-			16,952
Total assets		2,353,630			237,078			135,981			-			2,726,689
Capital expenditures		130,005			9,237			2,122			-			141,364

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	$	774,809		$	133,266		$	-		$	(5,129	)	$	902,946
Earnings before income taxes, (gain) loss on investments and other assets, finance charges, foreign exchange, (gain) loss on asset disposals, and depreciation and amortization		247,438			27,422			(29,263	)		-			245,597
Depreciation and amortization		133,754			11,223			4,917			-			149,894
(Gain) loss on asset disposals		(5,439	)		(3,813	)		(45	)		-			(9,297	)
Foreign exchange		(41	)		18			(1,227	)		-			(1,250	)
Finance charges		389			205			30,023			-			30,617
(Gain) loss on investments and other assets		1,368			-			257			-			1,625
Income taxes (recovery)		(8,050	)		(355	)		30,979			-			22,574
Net earnings (loss) for reportable segments		125,457			20,144			(94,167	)		-			51,434
Total assets		2,391,737			231,625			119,475			-			2,742,837
Capital expenditures		106,323			6,232			183			-			112,738

NOTE 5. LONG-TERM DEBT

	U.S. Denominated Facilities				Canadian Facilities and Translated U.S. Facilities
		June 30,		December 31,		June 30,			December 31,
		2026		2025		2026			2025
Long-Term Debt
Senior Credit Facility:
U.S. Denominated Borrowings	US$	46,000	US$	80,000	$	65,242		$	109,809
Canadian Denominated Borrowings		-		-		-			28,000
Unsecured Senior Notes:
6.875% senior notes due 2029		400,000		400,000		567,328			549,044
	US$	446,000	US$	480,000		632,570			686,853
Less net unamortized debt issue costs						(6,243	)		(7,562	)
					$	626,327		$	679,291
		Senior Credit<br><br> <br>Facility			Unsecured Senior<br><br> <br>Notes			Debt Issue Costs<br><br> <br>and Original Issue<br><br> <br>Discount			Total
---	---	---	---	---	---	---	---	---	---	---	---	---
Long-term debt December 31, 2025	$	137,809		$	549,044		$	(7,562	)	$	679,291
Changes from financing cash flows:
Proceeds from Senior Credit Facility		3,000			-			-			3,000
Repayment of Senior Credit Facility		(78,041	)		-			-			(78,041	)
		62,768			549,044			(7,562	)		604,250
Amortization of debt issue costs		-			-			1,319			1,319
Foreign exchange adjustment		2,474			18,284			-			20,758
Long-term debt June 30, 2026	$	65,242		$	567,328		$	(6,243	)	$	626,327

(a) Covenants

As at June 30, 2026, Precision was in compliance with the covenants of the Senior Credit Facility.

	Covenant	As at June 30, 2026
Senior Credit Facility
Consolidated senior debt to consolidated covenant EBITDA^(1)^	<2.50	0.14
Consolidated covenant EBITDA to consolidated interest expense	>2.50	10.03
(1)	For purposes of calculating the leverage ratio consolidated senior debt only includes secured indebtedness.
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NOTE 6. FINANCE CHARGES

	Three Months Ended June 30,						Six Months Ended June 30,
		2026			2025			2026			2025
Interest:
Long-term debt	$	11,115		$	13,222		$	22,487		$	27,712
Lease obligations		986			1,107			1,959			2,138
Other		7			103			147			120
Income		(472	)		(412	)		(1,255	)		(911	)
Amortization of debt issue costs, loan commitment fees and original issue discount		665			837			1,319			1,558
Finance charges	$	12,301		$	14,857		$	24,657		$	30,617

NOTE 7. SHARE-BASED COMPENSATION PLANS

(a) Liability Classified Plans

		Restricted<br> Share Units			Performance<br> Share Units			Non-Management<br> Directors’ DSUs		Total
December 31, 2025	$	9,220		$	17,513		$	10,321	$	37,054
Expensed during period^(1)^		3,771			7,467			1,166		12,404
Payments and redemptions		(6,939	)		(7,986	)		-		(14,925	)
Foreign exchange		(8	)		(9	)		-		(17	)
June 30, 2026	$	6,044		$	16,985		$	11,487	$	34,516
Current^(2)^	$	4,507		$	9,954		$	11,487	$	25,948
Long-term		1,537			7,031			-		8,568
	$	6,044		$	16,985		$	11,487	$	34,516
(1)	Included in General and administrative expenses for the three and six months ended June 30, 2026 were<br>a recovery of $4,037 and expense of $8,161, respectively. Included in Operating expenses for the three and six months ended June 30, 2026<br>were $480 and $4,243, respectively.
---	---
(2)	The current portion of the share-based compensation liability is included in Accounts payable and accrued<br>liabilities.
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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, 2025	132,279		310,932
Granted	51,903		97,609
Redeemed	(63,546	)	(83,583	)
Forfeited	(6,087	)	(3,353	)
June 30, 2026	114,549		321,605

Non-Management Directors – Deferred Share Units Plan

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

	DSUs<br> Outstanding
December 31, 2025	104,799
Granted	666
June 30, 2026	105,465

(b) Equity Settled Plans

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<br><br> <br>Outstanding			Weighted Average<br><br> <br>Fair Value
December 31, 2025	128,430		$	81.63
Granted	71,213			122.46
Redeemed	(48,865	)		84.21
Forfeited	(693	)		80.09
June 30, 2026	150,085		$	100.17

Included in net earnings (loss) for the three months and six months ended June 30, 2026 were expenses of $2 million (2025 – $2 million) and $4 million (2025 – $3 million), respectively.

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, 2025	1,470	7,343
Granted	-	4,476
Redeemed	-	(4,945	)
June 30, 2026	1,470	6,874

Included in net earnings (loss) for the three and six months ended June 30, 2026 were expenses of nil (2025 – nil) and $1 million (2025 – $1 million), respectively.

NOTE 8. SHAREHOLDERS’ CAPITAL

Common shares	Shares			Amount
December 31, 2025	12,932,399		$	2,238,766
Reversal of share repurchase liability — December 31, 2025	-			10,000
Share repurchase liability — June 30, 2026	-			(21,000	)
Settlement of PSUs and RSUs	48,865			4,095
Share options exercised	2,725			279
Share repurchases	(136,290	)		(23,657	)
Redemption of non-management directors share units	4,945			451
June 30, 2026	12,852,644		$	2,208,934

(a) Normal Course IssuerBid

For the period ended June 30, 2026, Precision repurchased and cancelled a total of 136,290 (2025 – 646,058) common shares for cash of $16 million (2025 – $45 million) and recorded nil (2025 - $0.7 million) Canadian share buy back tax.

(b) Automated Share PurchasePlan

Prior to June 30, 2026, 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 accrues a liability for purchases estimated to occur during the blackout period based on the parameters of the NCIB and the ASPP. As at June 30, 2026, Precision accrued a liability of $21 million in accounts payable and accrued liabilities with a corresponding decrease to share capital.

NOTE 9. PER SHARE AMOUNTS

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

	Three Months Ended June 30,						Six Months Ended June 30,
		2026			2025			2026		2025
Net earnings (loss) attributable to shareholders – basic	$	(1,195	)	$	16,267		$	16,181	$	50,778
Effect of share options and other equity compensation plans		(5,717	)		(1,271	)		-		(4,309	)
Net earnings (loss) attributable to shareholders – diluted	$	(6,912	)	$	14,996		$	16,181	$	46,469

	Three Months Ended June 30,
(Stated in thousands)		2026	2025	2026	2025
Weighted average shares outstanding – basic		12,927	13,401	12,929	13,541
Effect of share options and other equity compensation<br> plans^(1)^		486	586	9	617
Weighted average shares outstanding – diluted		13,413	13,987	12,938	14,158
(1)	For the three months ended June 30, 2026, 8,590 DSUs (2025 - nil) were excluded from the calculation as their effect was anti-dilutive.<br>For the six months ended June 30, 2026, 105,020 DSUs (2025 - nil) and all outstanding PSUs (2025 - nil) and RSUs (2025 - nil) were excluded<br>from the calculation as their effect was anti-dilutive.
---	---

NOTE 10. CAPITAL COMMITMENTS

At June 30, 2026, Precision had commitments to purchase property, plant and equipment totaling $177 million (2025 - $131 million) with payments expected through 2028.

NOTE 11. FAIR VALUES OF FINANCIAL INSTRUMENTS

The carrying value of cash, accounts receivable, accounts payable and accrued liabilities approximates their fair value due to the relatively short period to maturity of the instruments. At the end of each reporting period, investments and other assets are measured at their estimated fair value, with changes in fair value recognized in profit or loss. Amounts drawn on the Senior Credit Facility, measured at amortized cost, approximate fair value as this indebtedness is subject to floating rates of interest and the interest rate swap is classified as a derivative fair valued through profit or loss. The fair value of the unsecured senior notes at June 30, 2026 was approximately $572 million (December 31, 2025 – $555 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 and interest rate swap is based on level II inputs. The fair value is estimated considering the risk-free interest rates on government debt instruments of similar maturities, adjusted for estimated credit risk, industry risk and market risk premiums.

NOTE 12. CONTINGENCIES

The business and operations of the Corporation are complex and the Corporation has executed a number of significant financings, business combinations, acquisitions and dispositions over the course of its history. The computation of income taxes payable as a result of these transactions involves many complex factors as well as the Corporation's interpretation of relevant tax legislation and regulations. The Corporation's management believes that the provision for income tax is adequate and in accordance with IFRS and applicable legislation and regulations. However, there are tax filing positions that have been and can still be the subject of review by taxation authorities who may successfully challenge the Corporation's interpretation of the applicable tax legislation and regulations, with the result that additional taxes could be payable by the Corporation.

In the 2018 to 2023 tax years, Precision deducted certain intercompany dividends received in connection with a preferred share financing. In late July 2026, Precision received a Notice of Reassessment (NOR) from the Canada Revenue Agency (CRA) relating to its 2018 tax year, denying the deduction of such intercompany dividends. In addition to the 2018 NOR, Precision received a proposal from the CRA for the 2019 to 2022 tax years on the same basis, but no reassessments have been received at this time.

Precision will file a Notice of Objection to the 2018 NOR and intends to vigorously contest the 2018 NOR as well as any additional reassessments that may be issued by the CRA in respect of the intercompany dividends received. The Company and its tax advisors believe that the Company's tax filing position is appropriate. As such, Precision has not recognized a liability in its unaudited interim consolidated financial statements with respect to the reassessment.

Due to existing tax pools, the CRA's reassessment of the 2018 tax year and anticipated reassessments of the 2019 to 2023 tax years are not expected to impact taxes payable until the 2024 to 2027 tax years. Additional notices of reassessment for subsequent tax years are expected to be issued over the next 24 months. If it is ultimately determined that the Company is not entitled to deduct the intercompany dividends we estimate a maximum tax liability of approximately $155 million, excluding interest.

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 and NYSE Texas, Inc., 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 2026 TRADING PROFILE Toronto (TSX: PD) High: $140.36 Low: $108.50 Close: $108.92 Volume Traded: 5,879,255 New York (NYSE: PDS) High: US$102.45 Low: US$76.45 Close: US$76.66 Volume Traded: 7,132,000 ACCOUNT QUESTIONS Precision’s Transfer Agent can help you with a variety of shareholder related services, including: • change of address • lost unit certificates • transfer of shares to another person • estate settlement Computershare Trust Company of Canada 100 University Avenue 9th Floor, North Tower Toronto, Ontario M5J 2Y1 Canada 1-800-564-6253 (toll free in Canada and the United States) 1-514-982-7555 (international direct dialing) Email: [email protected] 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.sedarplus.ca and on the EDGAR website www.sec.gov

CORPORATE INFORMATION **** DIRECTORS William T. Donovan Carey T. Ford Steven W. Krablin Lori A. Lancaster Susan M. MacKenzie Kevin O. Meyers David W. Williams OFFICERS Carey T. Ford President and Chief Executive Officer Dustin D. Honing Chief Financial Officer Thomas M. Alford President, Well Servicing Veronica H. Foley Chief Legal & Compliance Officer Shuja U. Goraya Chief Technology Officer & President, International Darren J. Ruhr Chief Administrative Officer Gene C. Stahl Chief Operating Officer AUDITORS PricewaterhouseCoopers LLP Calgary, Alberta HEAD OFFICE Suite 800, 525 8th Avenue SW Calgary, Alberta, T2P 1G1 Canada Telephone: 403-716-4500 Facsimile: 403-264-0251 Email: [email protected] www.precisiondrilling.com