2018 Strategic Achievements

How do we measure our progress? The truth is in the numbers. We designed the transformation from the bottom up, with clearly defined action plans and measurable metrics. Our 2018 results are driven by data rather than based on hunches. They clearly validate the headway we made in 2018 and reinforce our commitment to our strategic objectives.

We had a solid year as we took deliberate action to advance our transformation plan. The strategies and processes that we’re putting in place are driving our results. As we’ve said before, we have a commitment to our plan and to sharing evidence of our progress with you.

The continued implementation of our strategy positively affected our bottom line:

  • For the full year, we grew adjusted EBITDA by more than $330 million, or 80% compared to 2017 levels, well outpacing the growth rates of our significant peers and the worldwide rig count
  • Approximately 75% of our year-over-year adjusted EBITDA growth was attributable to our transformation efforts

Workstream initiatives helped us to meet our goals as intended:

  • Realized $400 million in annualized recurring transformation benefits
  • Reached 40% of the total $1 billion transformation goal

Cash flow boosted through a series of transactions:

  • Kuwait land drilling rig operations sold to ADES for $123 million in cash, plus $12 million pending the delivery of two idle rigs in South Iraq
  • Precision Drilling Services Saudi Arabia land drilling operations, including 11 drilling rigs and 923 employees, sold to ADES for $92.5 million
  • Algeria land drilling rigs sold to ADES, including six drilling rigs, 350 employees and contractors for $60 million

Operating activity increased as we enhanced service quality:

  • Decreased nonproductive time (NPT) by 22% compared to 2017 results
  • Exceeded the annual reduced NPT target
  • Improved this metric for the fourth consecutive year

Differentiated solutions continue to support our growth in the market:

  • Calabar COROD® continuous rod
  • ForeSite® production platform and CygNet® SCADA platform on the Google Cloud
  • Magnus® rotary steerable system
  • Rotaflex® long-stroke pumping unit
  • Vero® automated connection integrity
  • Weatherford ESP, powered by Valiant