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Precision Drilling Trust Q2 2010 Earnings Call Transcript

Please see our press release for additional disclosure on these non-GAAP measures. Our comments today will also include statements reflecting Precision’s views about events and their potential impact on the corporation’s business, operations, structure and financial results which are forward-looking statements.

There are risks and uncertainties that could cause actual results to differ materially from those indicated by such forward-looking information and statements. Please see our press release and other regulatory filings for more information on forward-looking statements and these risk factors.

After I give a brief review of the second quarter operating results, Doug Strong will review the changes to Precision’s debt during the quarter and summarize our capital expenditure plans for 2010 as he transitions out of his role as CFO.

Kevin Neveu will then provide an operations update on our outlook and after that, we will open up the call for questions. On June 1, 2010, as a result of a plan of arrangement approved by the holders of trust units of Precision Drilling Trust on May 11, the trust converted into Precision Drilling Corporation.

More information is available in our press release and in our website at precisiondrilling.com under the investor center tab about this conversion.

Precision reported the net loss of CAD67 million or CAD0.24 per share for the second quarter. These results include a CAD26 million foreign exchange loss related to our debt being U.S. dollar denominated. Also, with the financing amendment that Doug will detail in a minute, Precision had non-cash charges of CAD24 million during the quarter related to this amendment. For more on the quarter, please see the details in our press release.

Also, during the quarter, Precision strengthened its term contract position. We now expect to average 78 rigs on term in 2010, up from 75 average rigs when we reported last quarter. For 2011, Precision increased four average rig years to 45, from 41 at our last report. Two of these are related to the new bill contracts and others are for the rigs that had been upgraded for the US Bakken.

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