 CALGARY, Alberta, July 23, 2020 GLOBE NEWSWIRE -- This news release contains forward-looking information and statements within the meaning of applicable securities laws. For a full disclosure of the forward-looking information and statements and the risks to which they are subject, see the Cautionary Statement Regarding Forward-Looking Information and Statements later in this news release. This news release contains references to Adjusted EBITDA, Covenant EBITDA, Operating Earnings Loss, Funds Provided by Used in Operations and Working Capital. These terms do not have standardized meanings prescribed under International Financial Reporting Standards IFRS and may not be comparable to similar measures used by other companies, see Non-GAAP Measures later in this news release. Precision Drilling announces 2020 second quarter financial results: Revenue of 190 million was a decrease of 47 compared with the second quarter of 2019. Net loss of 49 million or negative 0.18 per diluted share compared with a net loss of 14 million or negative 0.05 per diluted share in 2019. Earnings before income taxes, gain on repurchase of unsecured senior notes, finance charges, foreign exchange, impairment reversal, gain on asset disposals and depreciation and amortization Adjusted EBITDA, see NON-GAAP MEASURES of 58 million as compared with 81 million in the second quarter of 2019. Generated cash and funds provided by operations see NON-GAAP MEASURES of 104 million and 27 million, respectively. Second quarter ending cash balance was 175 million, an increase of 78 million from March 31, 2020. Second quarter capital expenditures were 24 million. Reduced our unsecured senior notes balance by 5 million and drew 5 million under our Senior Credit Facility. In U.S., recognized US8 million of idle but contracted rig revenue and US8 million of contract cancellation fees of which US2 million pertained to second quarter contracted days. Recognized restructuring charges of 6 million and Government of Canada wage subsidies of 9 million. To secure our liquidity position, on April 9, 2020, we amended our Senior Credit Facility to provide temporary covenant relief through March 31, 2022.Precisions President and CEO Kevin Neveu stated:The immediate and decisive steps the Precision team has executed during this pandemic and economic crisis have delivered very strong financial and operational results. Our actions have further strengthened and positioned the company both financially and competitively for an eventual industry recovery. During the second quarter we generated 58 million in Adjusted EBITDA and cash from operations of 104 million with our results further supported by field performance and operational excellence in all parts of our business. Also during the quarter, we improved our liquidity position by increasing our cash balance to 175 million bringing our total liquidity available to nearly 900 million, which supports our ability to persevere through a prolonged market downturn and capture value in a market recovery.During the quarter, we executed structural cost reductions beyond those previously announced, which we expect will lead to an additional 14 million in annualized savings. We now expect our total annualized fixed cost reductions to be 35, an increase from our previous target of 30 and our normalized general and administrative expense savings to exceed 30 million. We expect these cash preservation measures, combined with capital expenditure reductions and Canadian wage subsidy program, will reduce total 2020 cash outflows by up to 150 million, an increase from our previously communicated target of over 100 million. We will continue to explore every avenue to reduce our costs and spending and conserve cash to keep Precision on track to meet long-term debt reduction goals and support our High Performance, High Value competitive strategy.Second quarter U.S. operating results reflected improved field margins delivered with tightly managed expenses and strong contract book performance, both critical in this challenged environment. While industry activity appears to be flattening, visibility remains limited for the second half of the year. In Canada, Precision achieved 36 market share during the second quarter driven by our Super Triple rig fleet, which is well-positioned for pad style development drilling activity in the Montney and Duvernay. We expect the third quarter seasonal rebound in Canada to remain muted with limited visibility into long-term customer demand. While global international rig activity is contracting sharply, we expect Precisions six rigs under long-term contract in Kuwait and the Kingdom of Saudi Arabia to remain stable sources of revenue. Additional rig deployment and re-contracting opportunities will be delayed until the customers in these regions fully return to work.Precisions Alpha technologies continue to demonstrate exceptional field results, driving strong customer interest and field adoption of our broad portfolio of digital solutions. During the second quarter, we commercialized two additional drilling apps for a total of six commercial apps this year and we have 12 more under development. This year we have utilized AlphaApps on over 110 wells throughout North America, generating 890 AlphaApp days. Additionally, we are utilizing AlphaAnalytics for an integrated oil company in the Delaware basin and reduced drilling time on a 28-day horizontal well by 4.1 days, setting a new efficiency benchmark. In the Haynesville basin, we applied AlphaAnalytics to a separate customers full fleet of rigs and delivered an 8 improvement in drilling times compared to results achieved in the first quarter. AlphaAnalytics, AlphaApps and the AlphaAutomation platform are functioning on over half of our active North American fleet today and the drilling performance enhancements are inarguable. We believe the Alpha digital enablement of the drilling rig process to be the single most important technology transformation our customers can leverage to reduce their well construction costs and we believe this may be the ideal market to capitalize on these initiatives.We will remain focused on the continued execution of our strategic priorities, including our 2020 deleveraging targets while preserving our strong liquidity position. We will concentrate on maximizing cash flow, stringently managing costs, leveraging our high-quality fleet and collaborating with our customers to utilize our Alpha portfolio to maximize efficiencies and deliver predictable, repeatable results concluded Mr. Neveu.IMPACT OF COVID-19In March 2020, the novel coronavirus COVID-19 outbreak was declared a pandemic by the World Health Organization. Governments worldwide, including those countries in which Precision operates, have enacted emergency measures to combat the spread of the virus. These measures, which include the implementation of travel bans, self-imposed quarantine periods and social distancing, have caused a material disruption to businesses globally resulting in an economic slowdown and decreased demand for oil. Governments and central banks have reacted with significant monetary and fiscal interventions designed to stabilize economic conditions; however, the long-term success of these interventions is not yet determinable.As a result of the decrease in demand, worldwide inventories of oil have increased significantly. However, in the second quarter voluntary production restraint from national oil companies and governments of oil-producing nations along with curtailments in the U.S. and Canada have shifted global oil markets from a position of over supply to inventory draws. The situation remains dynamic and the ultimate duration and magnitude of the impact on the economy and the financial effect on the Corporation remains unknown at this time.SELECT FINANCIAL AND OPERATING INFORMATIONFinancial Highlights For the three months ended June 30, For the six months ended June 30, Stated in thousands of Canadian dollars, except per share amounts2020 2019 Change 2020 2019 Change Revenue189,759 359,424 47.2569,243 793,467 28.3 Adjusted EBITDA158,465 81,037 27.9160,369 189,004 15.2 Operating earnings loss119,1895,569 444.63,410 67,643 95.0 Net earnings loss48,86713,801254.1 54,14411,213 582.9 Cash provided by operations104,478 106,035 1.5179,431 146,622 22.4 Funds provided by operations126,639 40,950 34.9107,956 136,943 21.2 Capital spending: Expansion and upgrade12,111 33,595 63.913,764 99,712 86.2 Maintenance and infrastructure11,816 9,874 19.7 21,648 14,719 47.1 Intangibles- 26 100.057 464 87.7 Proceeds on sale5,02124,57579.610,71182,45287.0 Net capital spending18,906 18,920 0.124,758 32,443 23.7 Net earnings loss per share: Basic0.180.05256.4 0.200.04 600.0 Diluted0.180.05256.4 0.200.04 600.0 1See NON-GAAP MEASURES. Operating Highlights For the three months ended June 30, For the six months ended June 30, 20202019 Change 20202019 Change Contract drilling rig fleet2272322.22272322.2 Drilling rig utilization days: U.S.2,7436,99460.87,72714,11745.3 Canada8342,41365.46,6036,7572.3 International6877285.61,4151,4482.3 Revenue per utilization day: U.S.1 US29,37023,42525.4 25,82823,31210.8 Canada2 Cdn22,94021,6136.1 21,63322,4903.8 International US54,77951,5426.3 54,52950,7467.5 Operating cost per utilization day: U.S. US14,17214,8034.314,40614,5841.2 Canada Cdn13,89817,41420.214,19615,84010.4 Service rig fleet123123- 123123- Service rig operating hours4,70229,54084.139,06772,43846. 