================================================================================
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
February 15, 2006
Commission File Number: 001-14534
PRECISION DRILLING TRUST
(Exact name of registrant as specified in its charter)
4200, 150 - 6TH AVENUE S.W.
CALGARY, ALBERTA
CANADA T2P 3Y7
(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]
Indicate by check mark if the registrant is submitting the Form 6-K in
paper as permitted by Regulation S-T Rule 101(b)(1). _______
Note: Regulation S-T Rule 101(b)(1) only permits the submission in
paper of a Form 6-K if submitted solely to provide an attached annual report to
security holders.
Indicate by check mark if the registrant is submitting the Form 6-K in
paper as permitted by Regulation S-T Rule 101(b)(7): _______
Note: Regulation S-T Rule 101(b)(7) only permits the submission in
paper of a Form 6-K if submitted to furnish a report or other document that the
registrant foreign private issuer must furnish and make public under the laws of
the jurisdiction in which the registrant is incorporated, domiciled or legally
organized (the registrant's "home country"), or under the rules of the home
country exchange on which the registrant's securities are traded, as long as the
report or other document is not a press release, is not required to be and has
not been distributed to the registrant's security holders, and, if discussing a
material event, has already been the subject of a Form 6-K submission or other
Commission filing on EDGAR.
Indicate by check mark whether the registrant by furnishing the
information contained in this Form is also thereby furnishing the information to
the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934.
Yes [_] No [X]
If "Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g3-2(b): 82- N/A
-------
================================================================================
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: February 15, 2006
PRECISION DRILLING TRUST
By its Administrator PRECISION DRILLING
CORPORATION
By: /s/ Darren Ruhr
----------------------------------
Name: Darren Ruhr
Title: Vice President, Corporate Services
and Corporate Secretary
EXHIBIT TITLE
------- -----
1 PRESS RELEASE - PRECISION DRILLING TRUST REPORTS RECORD
EARNINGS FROM CONTINUING OPERATIONS FOR YEAR AND FOURTH
QUARTER, EXCLUDING ONE TIME ITEMS
EXHIBIT 1
---------
N E W S R E L E A S E
--------------------------------------------------------------------------------
[GRAPHIC OMITTED]
[LOGO - PRECISION DRILLING CORPORATION]
NEWS RELEASE
Calgary, Alberta, Canada - February 15, 2006
PRECISION DRILLING TRUST REPORTS RECORD EARNINGS
FROM CONTINUING OPERATIONS FOR YEAR AND FOURTH QUARTER,
EXCLUDING ONE TIME ITEMS
--------------------------------------------------------------------------------
Precision Drilling Trust ("Precision" or the "Trust") today reports results for
the year and quarter ended December 31, 2005. Diluted earnings per unit from
continuing operations were $0.96 in the fourth quarter of 2005 compared to $0.49
in 2004. Diluted earnings per unit from continuing operations benefited from a
lower effective tax rate and were reduced by $0.53 in the fourth quarter of 2005
as a result of a number of one time items. The first item is an incremental $6.4
million in expenses regarding the repayment of outstanding debentures, the
second is the $50.7 million market value adjustment to the shares of Weatherford
International Ltd. ("Weatherford") received on the sale of the Energy Services
and International Contract Drilling divisions and the third is the $17.5 million
in reorganization costs to effect the conversion to an income trust pursuant to
a plan of arrangement. For the full year ended December 31, 2005, diluted
earnings per unit from continuing operations were $1.76 compared to $1.61 in
2004. Diluted earnings per unit from continuing operations was reduced by $1.04
for the full year in 2005 as a result of expenses related to the premium on
repayment of the debentures, the loss on disposition of Weatherford shares and
the reorganization costs.
Excluding one time items related to the recent business divestitures and
reorganization activities, diluted earnings per unit from continuing operations
in the fourth quarter of 2005 was $1.49 compared to $0.49 in 2004. This $1.00
per unit increase represents a 204% improvement due to the increase in demand
and underlying profit margins for all of Precision's Canadian oilfield service
offerings, lower interest expense with repayment of outstanding debentures and
lower income tax expense with the conversion to an income trust during the
fourth quarter. For the full year ended December 31, 2005 diluted earnings per
unit from continuing operations, excluding one time items, was $2.80 compared to
$1.61 in 2004. This $1.19 per unit increase represents a 74% improvement due to
factors previously discussed, most of which was realized in the second half of
2005. These full year results were generated from an underlying asset base for
continuing operations that was only marginally larger in size on a year over
year basis.
Precision is pleased to acknowledge the successful conversion of the continuing
assets and businesses of Precision Drilling Corporation ("PDC") to an income
trust on November 7, 2005 pursuant to a plan of arrangement. The purpose of the
arrangement was to convert continuing operations from a corporate structure to
an income trust structure and to facilitate the receipt of Weatherford shares
and the special cash payment by shareholders. Noteworthy developments resulting
from the arrangement include the following:
2
1) Holders of common shares of PDC, excluding dissenting shareholders,
received in exchange for each common share of PDC held (i) one unit of the
Trust, (ii) 0.2089 common shares of Weatherford International Ltd., and
(iii) $6.83 of cash. As a result, the Trust issued 122,512,799 trust units,
distributed Weatherford shares valued at $2.007 billion in the aggregate
and made a special cash payment totaling $0.844 billion. The Trust
cancelled 817,005 common shares of PDC owned by dissenting shareholders
through repurchase consideration paid in the amount of $43.3 million.
2) The Trust, as the successor in interest to PDC, has been accounted for as a
continuity of interest. Commencing with the fourth quarter the consolidated
financial statements of the Trust for the year ended December 31, 2005 and
comparables for the three and twelve month periods ended December 31, 2004
reflect the financial position, results of operations and cash flows as if
the Trust had always carried on the business formerly carried on by PDC.
3) Shareholders were also given the opportunity to receive limited partnership
units ("Exchangeable LP Units") of Precision Drilling Limited Partnership
exchangeable without further consideration into trust units on a
one-for-one basis. An aggregate of 1,108,382 Exchangeable LP Units were
issued in lieu of trust units. The Exchangeable LP Units have been
accounted for as equity and included with outstanding unitholders' capital
of the Trust in reporting fully diluted earnings.
RESULTS OF CONTINUING CANADIAN OPERATIONS
Revenue of $427.9 million and operating earnings of $175.9 million increased by
36% and 54% respectively in the fourth quarter of 2005 compared to the same
period of 2004. For the full year of 2005, revenue of $1,269.2 million and
operating earnings of $465.4 million increased by 23% and 40% respectively over
2004. All business units performed exceptionally well and contributed higher
operating earnings leading to a record quarter for Precision. The increase in
operating earnings is attributable to higher equipment utilization and strong,
year over year, customer pricing. Consistent with the third quarter results, the
pace of operating cost escalation was well contained.
Gene Stahl, President and Chief Operating Officer, noted that "To start the
first quarter of 2006, Precision will continue to benefit from the pricing
leverage and demand established in the fourth quarter of 2005. While demand for
our services is remaining very strong, the additional supply of industry
equipment and recent softening of natural gas commodity pricing in North America
may serve to weaken the favourable equipment demand versus supply imbalance that
currently exists. Nonetheless, our people, our passion, our performance is
showing through as we work to improve and deliver value to our customers."
Precision's continuing operations are reported in two segments. The Contract
Drilling Services segment contains our contract drilling rig, camp and catering,
oilfield supply, and manufacturing divisions. The Completion and Production
Services segment contains our service rig, snubbing and rental divisions.
3
THREE MONTHS ENDED DECEMBER 31
2005 2004 % Change
-----------------------------------------------------------------------------------------
Contract Drilling Services:
Number of drilling rigs (end of period) 230 229 0.4
Drilling operating days 14,350 12,099 18.6
Drilling revenue per operating day $ 19,700 $ 17,624 11.8
Completion and Production Services:
Number of service rigs (end of period) 237 239 (0.8)
Service rig operating hours $ 142,122 $ 127,693 11.3
Service revenue per operating hour $ 679 $ 553 22.8
=========================================================================================
YEAR ENDED DECEMBER 31
2005 2004 % Change
-----------------------------------------------------------------------------------------
Contract Drilling Services:
Number of drilling rigs (end of period) 230 229 0.4
Drilling operating days 46,937 41,625 12.8
Drilling revenue per operating day $ 18,034 $ 16,494 9.3
Completion and Production Services:
Number of service rigs (end of period) 237 239 (0.8)
Service rig operating hours $ 477,232 $ 472,008 1.1
Service revenue per operating hour $ 600 $ 513 17.0
=========================================================================================
Contract drilling rig demand during the fourth quarter of 2005 reached
unprecedented levels with 229 out of 230 drilling rigs active. The 14,350
operating days for the quarter establishes a new high for a fourth quarter
surpassing the previous high in 1997 when 13,983 days were achieved. At that
time, Precision had 206 drilling rigs out of an industry total of 487, whereas
today Precision has 230 out of approximately 767. Generally, weather conditions
were favourable despite temperatures that were warmer than normal. The
unseasonably warm weather temperatures and dry conditions were ideal after
coming out of an extremely wet spring and early summer. Certain customers were
able to extend their summer drilling programs and mitigate land expiry issues.
It also served certain customers who did not have rigs reserved for the winter
and required windows to complete projects as some rigs were delayed moving
farther north in the Western Canada Sedimentary Basin (WCSB).
Precision's service rig fleet achieved 142,122 operating hours for 65%
utilization in the fourth quarter, an 11% increase compared to the fourth
quarter of 2004. The improvement is a result of strong demand as customers
attempt to keep their production maintenance on schedule. In addition,
completion work was strong due to record drilling activity in combination with
pent up demand from weather delays in the first half of the year. The southern
and eastern areas of the WCSB experienced Precision's largest increase in
operating hours over the prior year.
4
Both operating segments reported significant fourth quarter revenue increases
year over year. Completion and Production's 35% increase was essentially a match
with Contract Drilling's 36% increase. Higher pricing for Completion and
Production Services made up for the smaller increase in equipment utilization,
relative to Contract Drilling Services.
Operating costs were lower as a percentage of revenue despite crew wage rate
increases of approximately 7% effective October 1, 2005. Operating expenses
declined from 51% of revenue in the fourth quarter of 2004 to 45% in 2005.
Consistent with third quarter 2005 results, equipment repair and maintenance
expenses were lower on a per day basis as scheduled costs were spread over a
higher activity level relative to last year. In addition, operating expenses
have not increased to the same magnitude as customer pricing.
General and administrative costs for the fourth quarter were slightly higher
than the same period in 2004. As a percentage of revenue, general and
administrative costs fell to 4.7% from 6.1%.
Depreciation expense in the fourth quarter of 2005 remained relatively
consistent as the impact of increased activity was offset by the change in the
estimated useful life of drilling rigs from 4,150 to 5,000 utilization days
effective January 1, 2005. Depreciation expense was offset by higher gains on
the disposal of certain assets in the amount of $1.3 million relative to 2004.
On a full year over year basis, both 2005 and 2004 recorded a gain of $3.6
million on the disposal of property, plant and equipment assets.
Discontinued operations, net of tax, amounted to a loss of $37.3 million in the
fourth quarter of 2005 and a gain of $1.410 billion for the year. The current
quarter loss related to purchase consideration and income tax adjustments.
DISTRIBUTION POLICY OF THE TRUST
With PDC's conversion to an income trust effective November 7, 2005, the Trust
has adopted a policy of making regular monthly cash distributions to
unitholders. As previously disclosed in the Information Circular, distributions
may be reduced, increased or suspended entirely depending on the operations of
Precision and the performance of its assets. The actual cash flow available for
distribution to trust unitholders and holders of Exchangeable LP Units is a
function of numerous factors, including the Trust's:
o financial performance;
o debt covenants and obligations;
o working capital requirements;
o maintenance and expansion capital expenditure requirements for
the purchase of property, plant and equipment; and
o number of units outstanding.
The Trust considers these factors on a monthly basis and made its first payment
in the month of December in the amount of $33.9 million at the rate of $0.27 for
each of the units outstanding, including Exchangeable LP Units. At December 31,
2005 there were 125,461,303 Trust and Exchangeable LP Units outstanding.
5
Key factors for consideration in determining actual cash flow available for
distribution, in a historical context, are disclosed within the financial
statements and on the Consolidated Statement of Cash Flow. The increase or
decrease in cash is shown for each of the operating, investing and financing
activities undertaken by the Trust.
o Within operating activities, fourth quarter 2005 cash provided by
continuing operations amounted to a use of $48.7 million. In terms of
financial performance based upon cash provided by continuing operations
before changes in non-cash working capital balances, a use of $163.4
million, and the premium on redemption of debentures, a use of $65.5
million, cash in the amount of $180.2 million was provided by operations.
o Within investing activities, the purchase of property, plant and equipment
(PPE) during the fourth quarter of 2005 for continuing operations amounted
to $44.8 million. Included in this amount is $17.2 million for the
construction of new drilling rigs. For the full year of 2005, PPE purchases
amounted to $155.2 million and included $63.0 million for expansion capital
expenditures to grow and expand Precision's underlying asset base and $92.2
for maintenance capital expenditures to sustain and upgrade existing PPE.
The energy services industry in Canada can be extremely cyclical as commodity
price fluctuations can be compounded by seasonal trends. Accordingly, there
could be a wide fluctuation in financial performance from quarter to quarter,
year over year.
CERTAIN STATEMENTS CONTAINED IN THIS PRESS RELEASE, INCLUDING STATEMENTS THAT
CONTAIN WORDS SUCH AS "ANTICIPATE", "COULD", "SHOULD", "MAY", "EXPECT",
"BELIEVE", "WILL" AND SIMILAR TERMS ARE NOT HISTORICAL FACTS AND ARE
"FORWARD-LOOKING STATEMENTS" WITHIN THE MEANING OF SECTION 27A OF THE SECURITIES
ACT OF 1933 AND SECTION 21E OF THE SECURITIES EXCHANGE ACT OF 1934. SUCH
FORWARD-LOOKING STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS AND UNCERTAINTIES
WHICH MAY CAUSE THE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS OF PRECISION TO
BE MATERIALLY DIFFERENT FROM ANY FUTURE RESULTS, PERFORMANCES OR ACHIEVEMENTS
EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS. SUCH FACTORS INCLUDE
FLUCTUATIONS IN THE MARKET FOR OIL AND NATURAL GAS AND RELATED PRODUCTS AND
SERVICES; COMPETITION; POLITICAL AND ECONOMIC CONDITIONS IN COUNTRIES IN WHICH
PRECISION DOES BUSINESS; THE DEMAND FOR SERVICES PROVIDED BY PRECISION; CHANGES
IN LAWS AND REGULATIONS, INCLUDING ENVIRONMENTAL REGULATIONS, TO WHICH PRECISION
IS SUBJECT AND OTHER FACTORS, WHICH ARE DESCRIBED IN FURTHER DETAIL IN
PRECISION'S FILINGS WITH CANADIAN SECURITIES REGULATORS AND THE US SECURITIES
AND EXCHANGE COMMISSION.
6
CONSOLIDATED STATEMENTS OF EARNINGS AND RETAINED EARNINGS (DEFICIT)
------------------------------------------------------------------------------------------------------------------------------
THREE MONTHS ENDED YEARS ENDED
DECEMBER 31 DECEMBER 31
CDN $000'S, EXCEPT PER UNIT AMOUNTS 2005 2004 2005 2004
------------------------------------------------------------------------------------------------------------------------------
(UNAUDITED) (unaudited) (UNAUDITED) (unaudited)
Revenue $ 427,861 $ 313,978 $ 1,269,179 $ 1,028,488
Expenses:
Operating 192,111 160,055 641,805 566,297
General and administrative 19,902 19,198 76,397 64,149
Depreciation and amortization 19,465 21,620 71,561 74,829
Foreign exchange 2,974 (774) (3,474) (8,100)
Reorganization costs 17,512 - 17,512 -
------------------------------------------------------------------------------------------------------------------------------
251,964 200,099 803,801 697,175
------------------------------------------------------------------------------------------------------------------------------
Operating earnings 175,897 113,879 465,378 331,313
Interest (297) 15,127 29,270 46,280
Premium on redemption of bonds 6,402 - 71,885 -
Loss on disposal of short-term investments 50,730 - 70,992 -
Gain on disposal of investments - (2,325) - (4,899)
------------------------------------------------------------------------------------------------------------------------------
Earnings from continuing operations before income
taxes 119,062 101,077 293,231 289,932
Income taxes:
Current 25,103 8,706 241,402 53,698
Future (26,918) 31,789 (169,019) 48,103
------------------------------------------------------------------------------------------------------------------------------
(1,815) 40,495 72,383 101,801
------------------------------------------------------------------------------------------------------------------------------
Earnings from continuing operations 120,877 60,582 220,848 188,131
Discontinued operations, net of tax (37,331) 27,601 1,409,715 59,273
------------------------------------------------------------------------------------------------------------------------------
Net earnings 83,546 88,183 1,630,563 247,404
Retained earnings, beginning of period 2,569,959 953,500 1,041,683 794,279
Adjustment on cash purchase of employee stock
options, net of tax (23,346) - (42,087) -
Reclassification from contributed surplus on
purchase of employee stock options 23,215 - 23,215 -
Distribution of disposal consideration (2,851,784) - (2,851,784) -
Repurchase of common shares of dissenting
shareholders (34,364) - (34,364) -
Distributions (70,510) - (70,510) -
------------------------------------------------------------------------------------------------------------------------------
Retained earnings (deficit), end of period $ (303,284) $ 1,041,683 $ (303,284) $ 1,041,683
------------------------------------------------------------------------------------------------------------------------------
Earnings per unit from continuing operations:
Basic $ 0.97 $ 0.50 $ 1.79 $ 1.63
Diluted $ 0.96 $ 0.49 $ 1.76 $ 1.61
------------------------------------------------------------------------------------------------------------------------------
Earnings per unit:
Basic $ 0.67 $ 0.73 $ 13.22 $ 2.14
Diluted $ 0.66 $ 0.71 $ 13.00 $ 2.11
------------------------------------------------------------------------------------------------------------------------------
Trust units outstanding (000's) 125,461 121,580 125,461 121,580
Weighted average units outstanding (000's) 124,862 121,516 123,304 115,654
Diluted units outstanding (000's) 126,047 123,352 125,412 117,210
7
CONSOLIDATED BALANCE SHEETS
-------------------------------------------------------------------------------------------------
DECEMBER 31 December 31
CDN $ 000'S 2005 2004
-------------------------------------------------------------------------------------------------
(UNAUDITED) (unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ - $ 122,012
Accounts receivable 500,655 309,292
Inventory 7,035 7,734
Assets of discontinued operations - 497,036
--------------------------------------------------------------------------------------------
507,690 936,074
Property, plant and equipment, net of accumulated depreciation 943,900 897,584
Intangibles, net of accumulated amortization 465 498
Goodwill 266,827 266,827
Other assets - 9,116
Assets of discontinued operations - 1,741,950
------------------------------------------------------------------------------------------------
$ 1,718,882 $ 3,852,049
------------------------------------------------------------------------------------------------
LIABILITIES AND UNITHOLDERS' EQUITY
Current liabilities:
Bank indebtedness $ 20,468 $ -
Accounts payable and accrued liabilities 134,303 120,432
Income taxes payable 163,530 13,624
Distributions payable 36,635 -
Liabilities of discontinued operations - 244,707
--------------------------------------------------------------------------------------------
354,936 378,763
Long-term debt 96,838 718,850
Future income tax liability 192,517 354,268
Liabilities of discontinued operations - 78,427
Unitholders' equity:
Unitholders' capital 1,377,875 1,274,967
Contributed surplus - 26,024
Cumulative translation adjustment - (20,933)
Retained earnings (deficit) (303,284) 1,041,683
--------------------------------------------------------------------------------------------
1,074,591 2,321,741
------------------------------------------------------------------------------------------------
$ 1,718,882 $ 3,852,049
------------------------------------------------------------------------------------------------
Trust units outstanding (000's) 125,461 121,580
Common share purchase options outstanding (000's) - 6,695
8
CONSOLIDATED STATEMENTS OF CASH FLOW
THREE MONTHS ENDED YEARS ENDED
DECEMBER 31 DECEMBER 31
----------------------------------------------------------------------------------------------------------------------------
CDN $000's 2005 2004 2005 2004
(UNAUDITED) (unaudited) (UNAUDITED) (unaudited)
Cash provided by (used in):
Continuing operations:
Earnings from continuing operations $ 120,877 $ 60,582 $ 220,848 188,131
Items not affecting cash:
Depreciation and amortization 19,465 21,620 71,561 74,829
Stock-based compensation 3,953 2,628 11,229 8,190
Gain on disposal of investments - (2,325) - (4,899)
Future income taxes (26,918) 31,789 (169,019) 48,103
Premium on redemption of bonds (65,483) - -
Loss on disposal of short- term investments 50,730 - 70,992 -
Write off of deferred financing costs 7,664 - 7,664 -
Amortization of deferred financing costs 79 434 1,453 1,579
Unrealized foreign exchange gain(loss) on
long-term monetary items 4,320 (100) (4,740) (4,284)
Changes in non-cash working capital
balances (163,429) (83,709) (6,887) (23,828)
----------------------------------------------------------------------------------------------------------------------------
(48,742) 30,919 203,101 287,821
Discontinued operations:
Funds provided by (used in) discontinued
operations $ (12,547) $ 63,701 $ 183,330 187,018
Changes in non-cash working capital balances
of discontinued operations (16,760) 44,405 (86,310) (26,797)
----------------------------------------------------------------------------------------------------------------------------
(29,307) 108,106 97,020 160,221
Investments:
Business acquisitions - (19,812) (30,421) (679,814)
Purchase of property, plant and equipment (44,840) (40,462) (155,231) (122,692)
Purchase of intangibles - - (20) -
Proceeds on sale of property, plant and 6,897 1,593 15,174 8,795
equipment
Purchase of property, plant and equipment of
discontinued operations - (49,152) (128,214) (159,532)
Purchase of intangibles of discontinued - (6) - (320)
operations
Proceeds on sale of property, plant and
equipment of discontinued operations - 3,730 17,785 21,145
Proceeds on disposal of short-term investments 14,569 2,788 14,569 8,665
Proceeds on disposal of discontinued operations 519 - 1,306,799 49,299
Investments - (90) - (90)
----------------------------------------------------------------------------------------------------------------------------
(22,855) (101,411) 1,040,441 (874,544)
Financing:
Increase in long-term debt 96,826 - 96,826 522,136
Repayment of long-term debt (703,958) (3) (703,970) (173,260)
Deferred financing costs on long-term debt - - - (5,612)
Distribution of disposal proceeds (844,334) - (844,334) -
Distributions (33,875) - (33,875) -
Repurchase of common shares of dissenting
shareholders (43,299) - (43,299) -
Cash buy-out of employee stock options (35,583) - (64,147) -
Issuance of trust units on exercise of options 8,263 - 8,263 -
Issuance of trust units on purchase of options 5,504 - 5,504 -
Issuance of common shares on exercise of 33,408 5,006 73,930 55,361
options
Issuance of common shares, net of cash - (27) - 276,428
Changes in non-cash working capital balances 12,237 - 22,060 -
Change in bank indebtedness 20,468 - 20,468 (147,909)
----------------------------------------------------------------------------------------------------------------------------
(1,484,343) 4,976 (1,462,574) 527,144
Increase (decrease) in cash and cash equivalents (1,585,247) 42,590 (122,012) 100,642
Cash and cash equivalents, beginning of period 1,585,247 79,422 122,012 21,370
----------------------------------------------------------------------------------------------------------------------------
Cash and cash equivalents, end of period $ - $ 122,012 $ - 122,012
============================================================================================================================
9
SEGMENT INFORMATION
THREE MONTHS ENDED DECEMBER 31, 2005 Contract Completion Corporate Inter-segment
CDN $000's (unaudited) Drilling & Production and Other Eliminations Total
-------------------------------------------------------------------------------------------------------------------------------
Revenue $ 307,941 $ 123,896 $ - $ (3,976) $ 427,861
Operating earnings 155,477 50,833 (30,413) - 175,897
Depreciation and amortization 11,386 7,275 804 - 19,465
Total assets 1,159,687 486,701 72,494 - 1,718,882
Goodwill 172,440 94,387 - - 266,827
Capital expenditures* 35,668 7,047 2,125 - 44,840
-------------------------------------------------------------------------------------------------------------------------------
THREE MONTHS ENDED DECEMBER 31, 2004 Contract Completion Corporate Inter-segment
CDN $000's (unaudited) Drilling & Production and Other Eliminations Total
-------------------------------------------------------------------------------------------------------------------------------
Revenue $ 225,865 $ 91,680 $ - $ (3,567) $ 313,978
Operating earnings 98,935 27,145 (12,201) - 113,879
Depreciation and amortization 12,696 7,528 1,396 - 21,620
Total assets (1) 971,863 461,191 180,009 - 1,613,063
Goodwill 172,440 94,387 - - 266,827
Capital expenditures* 24,638 12,377 3,447 - 40,462
-------------------------------------------------------------------------------------------------------------------------------
YEAR ENDED DECEMBER 31, 2005 Contract Completion Corporate Inter-segment
CDN $000's (unaudited) Drilling & Production and Other Eliminations Total
-------------------------------------------------------------------------------------------------------------------------------
Revenue $ 916,221 $ 369,667 $ - $ (16,709) $ 1,269,179
Operating earnings 404,385 121,643 (60,650) - 465,378
Depreciation and amortization 39,233 27,402 4,926 - 71,561
Total assets 1,159,687 486,701 72,494 - 1,718,882
Goodwill 172,440 94,387 - - 266,827
Capital expenditures* 106,986 34,576 13,689 - 155,251
-------------------------------------------------------------------------------------------------------------------------------
YEAR ENDED DECEMBER 31, 2004 Contract Completion Corporate Inter-segment
CDN $000's (unaudited) Drilling & Production and Other Eliminations Total
-------------------------------------------------------------------------------------------------------------------------------
Revenue $ 727,710 $ 313,386 $ - $ (12,608) $ 1,028,488
Operating earnings 282,315 77,074 (28,076) - 331,313
Depreciation and amortization 42,245 27,508 5,076 - 74,829
Total assets(1) 971,863 461,191 180,009 - 1,613,063
Goodwill 172,440 94,387 - - 266,827
Capital expenditures* 74,975 31,759 15,958 - 122,692
-------------------------------------------------------------------------------------------------------------------------------
(1) excludes assets of discontinued operations
* excludes business acquisitions and capital expenditures of discontinued
operations
10
CANADIAN DRILLING OPERATING STATISTICS
FOR THE YEARS ENDED DECEMBER 31,
2005 2004
--------------------------------------------------------------------------------
Market Market
Precision Industry* Share % Precision Industry* Share %
--------------------------------------------------------------------------------
Number of drilling rigs 230 752 30.6 229 700 32.7
Number of operating days (spud to release) 46,937 158,286 29.7 41,625 132,374 31.4
Wells drilled 7,766 24,351 31.9 7,525 21,793 34.5
Average days per well 6.0 6.5 5.5 6.1
Metres drilled (000's) 8,901 28,143 31.6 8,021 23,526 34.1
Average metres per day 190 178 193 178
Average metres per well 1,146 1,158 1,066 1,080
Rig utilization rate (%) 56.1 59.6 50.3 52.9
* Excludes non-CAODC rigs.
A conference call to review the year-end results has been scheduled for 12:00
noon MST on Wednesday, February 15, 2006. The conference call dial-in number is
1-800-814-4861 or 416-644-3414.
A live webcast will be accessible at www.precisiondrilling.com by selecting
Investor Relations, then Webcast. An archived recording of the conference call
will be available approximately one hour after the completion of the call until
February 22, 2006 by dialing 1-877-289-8525 or 416-640-1917, passcode 21172565#.
Precision Drilling Trust is Canada's largest energy services trust.
Headquartered in Calgary, Alberta, it is the leading provider energy services to
the Canadian oil and gas industry. Precision provides customers with access to
an extensive fleet of contract drilling rigs, service rigs, camps, snubbing
units and rental equipment backed by a comprehensive mix of technical support
services and skilled, experienced personnel.
PRECISION IS LISTED ON THE TORONTO STOCK EXCHANGE UNDER THE TRADING SYMBOL
"PD.UN" AND IN U.S. DOLLARS "PD.U" AND ON THE NEW YORK STOCK EXCHANGE UNDER THE
TRADING SYMBOL "PDS".
FOR FURTHER INFORMATION PLEASE CONTACT DOUG STRONG, CHIEF FINANCIAL OFFICER OF
PRECISION DRILLING CORPORATION, ADMINISTRATOR OF THE TRUST, 4200, 150 - 6TH
AVENUE S.W., CALGARY, ALBERTA T2P 3Y7, TELEPHONE (403) 716-4500, FAX (403)
264-0251; WEBSITE: WWW.PRECISIONDRILLING.COM.
4200, 150 - 6th Avenue S.W.
Calgary, Alberta, Canada T2P 3Y7
Telephone: 403.716.4500
Facsimile: 403.264.0251
www.precisiondrilling.com